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AGREEMENT

in the form of an exchange of letters between the European Economic Community and the Government of Canada relating to the claim by the European Economic Community for compensation arising from the extension of quotas on imports into Canada of women's and girls' footwear for the period 1 December 1985 to 30 November 1988

Letter from Canada

Sir,

I refer to consultations under GATT Article XIX between officials of the Government of Canada and the Commission of the European Communities regarding Canada's safeguard action on imports of certain types of women's and girls' footwear for the period of three years commencing 1 December 1985.

I have the honour to inform you that Canada will implement the tariff concessions set out in the attached Annex on the following basis:

- tariff item number 56825-1 will be implemented for a period of two years commencing on 1 June 1986,

- tariff item numbers 55301-1 and ex 55303-1 will be implemented for a period of two years commencing on 1 January 1987,

- tariff item number 55302-1 will be implemented for a period of two years commencing on 1 February 1987,

- tariff item numbers ex 53305-1 and ex 56805-1 will be implemented for a period of two years commencing on 1 June 1987,

- tariff item numbers ex 92935-1 and ex 92935-1 will be implemented for a period of one year commencing on 1 June 1988.

Canadian authorities recognize that the European Communities have initial negotiating rights for the concessions in the attached schedule and should, for any reason unforeseen, it prove necessary to increase the rates for any of these concessions, Canadian authorities will proceed in accordance with the provisions of GATT Article XXVIII.

Accept, Sir, the assurances of my highest consideration.

For the Government

of Canada

ANNEX

to agreed Minutes of 5 February 1986 between the delegations of the Government of Canada and the Commission of the European Communities

1.2.3 // // // // Tariff Item // Description // Concession Rate // // // // 56825-1 // Gloves of Kid // free // 55301-1 // Silk Handkerchiefs // 10 % // ex 55303-1 // Silk Ties // 10 % // 55302-1 // Silk Scarves // free // ex 53305-1 // Neckties of Wool, Woven // 10 % // ex 56805-1 // Neckties of Knitted Fabric // 10 % // ex 92935-1 // Oxazepam // free // ex 92935-1 // Flurazepam // free // // //

Letter from Canada on exemptions from footwear quota

Sir,

I have the honour to refer to the consultations under GATT Article XIX between officials of the Government of Canada and of the Commission of the European Communities regarding the imposition of Canada's quotas on imports of women's and girls' footwear from 1 December 1985 to 30 November 1988.

I have been asked to inform you that the following will be exempt, effective as of 1 April 1986, from Canada's quota on imports of women's and girls' leather footwear:

- all shoes and sandals valued for duty at 28 Canadian dollars or more per pair (values for duty include any valuation uplifts),

- all boots valued for duty at 55 Canadian dollars or more per pair (values for duty include any valuation uplifts).

The overall level of the quota will remain unchanged.

Accept, Sir, the assurances of my highest consideration.

For the Government

of Canada

Letter from the Community

Sir,

I have the honour to acknowledge receipt of your letters of

The Commission of the European Communities accepts the concessions referred to in these letters, in settlement of the claims arising from the imposition of Canadian import quotas on women's and girls' footwear for the period 1 December 1985 to 30 November 1988.

Please accept, Sir, the assurance of my highest consideration.

On behalf of the

Council of the European Communities