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6.1.2011 Official
Journal
of
the
European
Union
L
3/7
DECISIONS
COMMISSION DECISION
of 5 January 2011
terminating the examination procedure concerning the measures imposed by Brazil affecting the
import of textile products
(2011/2/EU)
THE EUROPEAN COMMISSION,
(5)
The report concluded that the Brazilian non-automatic
import licensing system, as applied with a minimum
price requirement, appeared to be in breach of:
Having regard to the Treaty on the Functioning of the European
Union,
(a) Articles 1, 3 and 5 of the WTO Agreement on
Having regard to Council Regulation (EC) No 3286/94 of
Import Licensing Procedures, as: (a) it was not
22 December 1994 laying down Community procedures in
neutral in application; (b) it was not administered
the field of the common commercial policy in order to
in a fair and equitable manner; (c) it did not
ensure the exercise of the Community’s rights under inter
implement any WTO compatible restrictions and
national trade rules, in particular those established under the
therefore was not limited in scope and duration to
auspices of the World Trade Organisation ( 1 ) and in particular
a measure it implemented; and (d) it had additional
Article 11(1) thereof,
trade-restrictive and distortive effects on imports. In
addition, the list of products submitted to non-
automatic licensing was not published and the appli
Whereas:
cations for licenses for imports under the minimum
price were left without official reply for several
months;
A. PROCEDURAL BACKGROUND
(1) On
12
January
1998
Febeltex,
(Fédération
Belge
du
Textile) lodged a complaint pursuant to Article 4 of
(b) Articles X.1 and X.3 of the General Agreement on
Regulation (EC) No 3286/94.
Tariffs and Trade (GATT) 1994, as the non-automatic
import licensing system was not published and was
not administered in a uniform, impartial and
(2) The
complainant
alleged
that
European
Community
sales
reasonable manner;
of textile products in Brazil were hindered by a number
of obstacles to trade within the meaning of Article 2(1)
of Regulation (EC) No 3286/94, including a non-
automatic import licensing system and the way this
system is developed through, notably, compulsory
(c) Article XI.1 of GATT (1994) as the minimum price
import payment terms and minimum import prices.
system was a restriction other than duties, taxes or
other charges made effective through import licenses
on the importation of any product of the territory of
any other contracting party, without any WTO
(3) The
Commission
decided,
after
consultation
of
the
Advisory Committee established by Regulation (EC)
compatible justification.
No 3286/94, that there was sufficient evidence to
justify initiating an examination procedure for the
purpose of considering the legal and factual issues
involved. Consequently, an examination procedure was
C. DEVELOPMENTS AFTER THE INVESTIGATION
initiated on 27 February 1998 ( 2 ).
(6) On
17
March
1999
( 3 ), the Commission decided to
initiate a WTO Dispute Settlement procedure. WTO
B. THE FINDINGS OF THE EXAMINATION PROCEDURE
consultations were held on 19 November 1999. On
this occasion, while denying all allegations relative to
(4) The
final
report
on
the
investigation
procedure
was
minimum pricing practices both at import licensing or
circulated to EU Member States at the 9 November
customs valuation levels, Brazil admitted that it did not
1998 meeting of the Advisory Committee.
comply with several of its WTO obligations concerning
notification in relation with its import licensing system.
( 1 ) OJ L 349, 31.12.1994, p. 71.
( 2 ) OJ C 63, 27.2.1998, p. 2.
( 3 ) OJ L 86, 30.3.1999, p. 22.

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L 3/8
EN
Official Journal of the European Union
6.1.2011
(7) Following
these
consultations,
the
Brazilian
import
D. CONCLUSION AND RECOMMENDATIONS
licensing and customs valuation systems underwent
significant changes and the Community industry’s
(11) In view of the above analysis, it is considered that the
access to the Brazilian market for textile products
examination procedure has led to a satisfactory situation
improved. However there were still several aspects of
with regard to the obstacles identified in the complaint
the Brazilian import licensing and customs valuation
lodged by Febeltex. The examination procedure should
systems that needed to be modified in order to ensure
therefore be terminated in accordance with Article
Brazil’s full compliance with its obligations under the
11(1) of Regulation (EC) No 3286/94.
relevant WTO Agreements.
(12) The
Advisory
Committee
has
been
consulted
on
the
measures provided for in this Decision,
(8) The
Commission
therefore
decided,
by
Decision
2001/429/EC ( 1 ), to suspend the abovementioned exam
ination procedure for a period of 6 months, while moni
HAS ADOPTED THIS DECISION:
toring the effect of the changes in the Brazilian system.
Article 1
(9) During
the
first
quarter
of
2002,
several
contacts
with The examination procedure concerning the measures imposed
the Brazilian authorities took place with the aim of
by Brazil affecting the import of textile products is hereby
finding a mutually acceptable solution. The European
terminated.
Community and Brazil signed a Memorandum of Under
standing on arrangements in the area of market access
for textiles and clothing products on 6 November 2002,
Article 2
under which both parties agreed to refrain from applying
This Decision shall enter into force on the 20th day following
non-tariff barriers. In addition the Memorandum of
its publication in the Official Journal of the European Union.
Understanding addressed also the problem concerning
customs valuation.
Done at Brussels, 5 January 2011.
(10) In the more than 7 years since the signature of the
Memorandum of Understanding, the Commission has
For the Commission
not been notified of any particular problems or new
obstacles related to market access in Brazil for textile
The President
products.
José Manuel BARROSO
( 1 ) OJ L 153, 8.6.2001, p. 30.

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