Bonn, 18 June 1968The Government of the Federal Republic of Germany and the Government of the Republic of India,
DESIRING to ensure an orderly development of trade in cotton textiles in accordance with the provisions of the long-term Arrangements
regarding International Trade in Cotton Textiles dated October 1, 1962, (hereinafter called the Geneva Arrangement) extended to September
30, 1970 and in particular with Article 4 thereof, which provides for the conclusion of mutually acceptable arrangements,
HAVE agreed to co-operate and to apply the following provisions :
Article 1
This Agreement shall apply to cotton textiles originating in, and dispatched from, the Republic of India and listed in the Annex to
this Agreement. Transactions concerning handloom cotton fabrics shall not, however, be subject to any limitations provided that
the said products are accompanied by a certificate issued by the competent authorities of the Republic of India and recognised by
the competent authorities of the Federal Republic of Germany.
Article 2
(1) For the duration of this Agreement and by virtue of the provisions contained therein or annexed thereto, the Government of the
Federal Republic of Germany shall undertake not to introduce new quantitative restrictions and suspend the application of those in
force and agrees not to invoke the provisions of Article 3 of the Geneva Agreement as long as imports into the Federal Republic of
Germany of cotton textiles originating in, and despatched from the Republic of India do not exceed the quantities agreed upon.
(2) The Government of the Republic of India undertakes especially when so requested by the Government of the Republic of Germany,
to ensure that the ceilings agreed upon are respected and to co-operate with the Government of the Federal Republic of Germany in
implementing the measures recognised as necessary for this purpose.
(3) This provisions of the Geneva Agreement shall remain to be in force between the two Governments.
Article 3
(1) Global ceilings. The total quantity agreed upon for each twelve months period shall be 2725 metric tons.
(2) Ceilings by groups of categories. The aforementioned total quantity shall be apportioned as follows between the two main groups
of categories of products
Metric tons
Group I Cotton fabrics, grey or bleached
whether or not mercerized 1925
Group II Other cotton fabrics made up articles
and miscellaneous articles of cotton
800
(3) Specific ceilings. Upto each of the ceilings by groups of categories established under (2) above, specific ceilings will be agreed
upon in order to prevent excessive concentration of trade on certain products; these ceilings will be fixed on the basis of the list
annexed to this Agreement. If in the course of one of the twelve months period, the Government of the Federal Republic of Germany
notes a rapid and substantial growth in import of certain products which are not covered by specific ceilings, it may request that
a specific ceiling be fixed. Where such a request is made, consultations shall be held forthwith to agree upon the level of a specific
ceiling for the product in question.
Article 4
(1) No transfer may be made between the quantity fixed for Group I and that fixed for Group II.
(2) The specific ceilings must not be exceeded; within the framework of the ceilings by groups, the unused portions of the specific
ceilings may be used for the other categories of the group which are not covered by specific ceilings.
(3) Portions of one of the ceilings for the two groups of categories not used during any twelve months period can be carried over
and added to the ceiling for the same group in the following twelve months period upto a maximum of 10 per cent of the ceiling in
question.
(4) The unused portions of the specific ceilings by category must be carried over and added to the same specific ceilings for the
following year upto a maximum of 10 per cent of the said ceilings if the specific ceilings have not been the subject of a transfer
or a carry over for some other purpose.
(5) Within the list of 5 per cent of each of the ceilings agreed upon advance deliveries shall be authorized from the ceiling established
for the following twelve months period, if the Government of the Republic of India so requests in writing in due time. The Government
of the Republic of India, however, shall endeavour to ensure that exports of cotton textiles of all categories are spaced out as
regularly as possible over each of the twelve months period, taking seasonal factors in particular into account. Amounts delivered
in advance shall be deducted from the ceilings for the following twelve months period.
Article 5
The Governments agree to exchange all information relating to cotton from the Republic of India to the Federal Republic of Germany
and to the corresponding imports into the Federal Republic of Germany. Each Government shall, for the purpose of this Agreement,
apply whatever classification it has available and shall co-operate in facilitating comparison of information this supplied.
Article 6
Should the Government of the Federal Republic of Germany inform the Government of the Republic of India that difficulties have arisen,
the virtue of this Agreement, regarding the maintenance of existing commercial relation between the importers in the Federal Republic
of Germany and their suppliers in the Republic of India the two Governments shall take all the necessary measures to ensure that
these commercial relations are maintained.
Article 7
(1) The two Governments undertake to consult each other at the request of either, on all problems arising from the implementation
of this Agreement.
(2) Furthermore, the signatory Governments agree to take part each year and whenever it may appear to be necessary to the request
of one of the parties, in consultations between Representatives of the Republic of India and Representatives of the Member States
of the European Economic Community and the Commission of the European Communities regarding the overall aspects of trade in cotton
textile.
Article 8
This Agreement shall also apply to Land Berlin, provided that the Government of the Federal Republic of Germany has not made a contrary
declaration to the Government of the Republic of India within three months from the date of signing of this Agreement.
Article 9
(1) This Agreement shall be concluded for a period of three years beginning January 1, 1968. It shall remain in force until December
31, 1970.
(2) The provisions of Paragraph 4 of the Protocol extending the Geneva Arrangement shall be applicable to this Agreement. In case
of application, the undertakings contained in this Agreement shall be set out in an appropriate form.
(3) Either Government shall be entitled to propose a revision of this Agreement or to denounce it by giving notice thereof not later
than 120 days before the beginning of each twelve months period.
(4) The annex to this Agreement and the exchange of letters shall form an integral part thereof.
DONE at BONN this 18th June 1968 in four originals, two each in the Germany and English languages, all four texts being equally authentic.
Sd/-
Sd/-
For the Government
For the Government
of the Federal Republic of Germany
of the Republic of India
ANNEX
List of Cotton Textiles Products and Ceilings referred to in Article 1 and 3 of the Agreement concluded between Government of India
and Republic of Germany pursuant to Article 4 of Geneva Agreement.
----------------------------------------------------------------------------------------
Group of Categories
Description of Product
Ceiling
Categories
in metric tons
----------------------------------------------------------------------------------------
GROUP I
Cotton fabrics,
Grey or blended, merceerised or not
1925
B Cotton Fabrics, grey
B1
Terry traveling and similar terry fabrics
B2
Terry traveling and similar terry fabrics
B3
Woven fabrics other than gauze or terry towelling and
similar terry fabrics, containing at least 85% by weight
of cotton, plain weave, weighing more than 70 but not
more than 130 gr per square meter, of a width more
than 115 cm but not more than 165 cm, only with a yarn
numbered less than 55,000 m/kg (English number 32).
B4
Woven fabrics other than gauze or terry towelling and
similar terry fabrics containing at least 85% by weight
of cotton, plain weave, weighing not more than 130 gr
per square meter, other than those under B3.
B5
Woven fabrics other than gauze or terry towelling and
similar terry fabrics, containing at least 85% by weight
of cotton, plain weave, weighing more than 130 but not
more than 200 gr per square meter, of a width of at least
85 cm but none more than 115 cm.
B6
Woven fabrics other than gauze or terry towelling and
similar terry fabrics, containing at least 85% by weight
of cotton, plain weave, weighing per square meter more
than 130 gr but not more than 200 gr, of a width of more
than 115 cm
B7
Woven fabrics other than gauze or terry towelling and
similar terry fabrics, containing at least 85% by weight
of cotton, of a width atleast of 85 cm, other than plain
weave.
B8
Other woven fabrics
C
Cotton fabrics other than Grey
C1
Bleached, mercerized or not
GROUP II
Other cotton fabrics, made up articles and
800
miscellaneous articles of cotton
C2
Gauze other than grey or bleached
C3
Terry towelling and similar terry fabrics, other than
grey or bleached
C4
Woven pile fabrics and chenille fabrics (other than terry
towelling or similar terry fabrics of cotton falling within
Heading No. 55.08 and fabrics falling within Heading
No. 58.05.
C5
Woven fabrics other than gauze or terry towelling and
similar terry fabrics, dyed
C6
Woven fabrics other than gauze or terry towelling and
similar terry fabrics, printed
C5
Woven fabrics other than gauze or terry towelling and
similar terry fabrics, made with yarns of various colours.
D
Household make up articles of cotton
D1
Bad linen
D2
Table linen
D3
Terry toilet linen and terry kitchen linen
D4
Other household articles
E
Cotton Clothing
E1
Gloves, mittens and mitts, knitted or crocheted, not
elastic or rubberised.
E2
Undergarments, knitted or crockted not elastic or
rubberised
E3
Outer garments and other articles, knitted or crocheted
not elastic nor rubberised. Articles other than knitted or
crocheted fabrics and articles thereof, elastic or rubberised
E4
Woven trousers and breeches, for men and boys
E5
Other woven outer garments for men and boys
E6
Woven outer garments for women, girls and infants
