(1)

Article 38(1) of the said Protocol provides for derogations from the rules of origin to be granted whenever the development of an existing industry or the establishment of a new one warrants it.

(2)

On 30 September 2004 the ACP States submitted a request, on behalf of the Government of Cape Verde, for a derogation from the rule of origin in the Protocol, in respect of men’s shirts produced by this country for 140 000 pieces in 2004 and gradually increasing to 180 000 pieces in 2008.

(3)

The requested derogation is justified under the relevant provisions of Article 38(1) to (5); Cape Verde cannot use in its production of men’s shirts, under the provisions for cumulation, a sufficient quantity of suitable materials originating in the Community, the Overseas Countries and Territories (OCT) or other ACP States. Cape Verde is a least-developed and an island ACP State and the derogation is expected to have a positive economic and social impact especially in respect of employment in Cape Verde.

(4)

The derogation would not cause serious injury to an established Community industry taking into account the quantities of the imports envisaged, provided that certain conditions relating to quantities, surveillance and duration are respected.

(5)

However, the derogation cannot be granted for the periods requested. The date of introduction of the request by the ACP States does not allow the adoption of a Decision of the ACP-EC Customs Cooperation Committee before 1 January 2005. Furthermore new trading arrangements for the ACP States have to enter into force no later than 1 January 2008. Consequently a derogation granted under the current regime will no longer be pertinent after 31 December 2007 where the legal framework for the derogation will no longer exist. For these reasons the validity of the derogation should be limited to a period of three years running from the beginning of January 2005 until the end of 2007.

(6)

Therefore, pursuant to Article 38, a derogation can be granted to Cape Verde in respect of men’s shirts for 160 000 pieces in 2005, 170 000 pieces in 2006 and 180 000 pieces in 2007,

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‘Derogation — Decision No 1/2005’;

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‘Derrogação — Decisão n.o 1/2005’;