WORLD TRADE G/TMB/N/269/Add.1
22July1997
ORGANIZATION(97-3034)
Original: English Textiles Monitoring Body
AGREEMENT ONTEXTILES AND CLOTHING
Notification under Article 2.17
UNITED STATES
Administrative Arrangements withEgypt
Addendum
TheTextilesMonitoringBodyhasreceivedafurthernotificationfromtheUnitedStatespursuant
toparagraph 17ofArticle 2.
TheTMB, inaccordance withparagraph 17ofArticle 2,iscirculating thisnotification toWTO
Members.G/TMB/N/269/Add.1
Page2
Executive Office ofthePresident
Office oftheUnited States Trade Representative
Geneva
18April 1997
Dear Ambassador Szepesi,
Irefertoyourletter of4April 1997 concerning United States Administrative Arrangements
withEgypt. Withrespect tothequestion posed inparagraph 21,paragraphs 3and4oftheUnited States
Article 2.17notification areincluded inthese arrangements bymutual agreement ofEgypt andthe
United States. Theexchange ofletters affecting thisinclusion areattached.
Withrespecttothequestionposedinparagraph32,onlyproductssubjecttoArticle2.1restraints
aresubject tothese administrative arrangements.
./.
TheHonourable
Ambassador András Szepesi
Chairman
Textiles Monitoring Body
World Trade Organization
154RuedeLausanne
1211 Geneva
1Paragraph 2ofthatletter reads: "The TMB would appreciate receiving information onthebilateral agreements referred tointhe
firstparagraph oftheadministrative arrangements, since thedates mentioned therein donotcoincide withthedatetheMemorandum of
Understanding, joined tothenotification, wassigned. TheTMB hasalsonoted thatparagraphs 3and4oftheadministrative arrangements
arenotamongtheprovisionsmentionedinparagraph4oftheMOUof12September1993;itwould,therefore,appreciatereceivingclarification
inthisregard."
2Paragraph 3ofthatletter reads: "The TMB would alsoappreciate receiving clarification regarding theproduct coverage ofthe
administrative arrangements withEgypt. Annex A,referred toinparagraph 3(A)ofthetextnotified, covers abroad range products. Is
thisAnnex limited toproducts falling within thecoverage oftheATC? Ontheother hand, certain other provisions oftheadministrative
arrangements, e.g.paragraph 5,refer toanAnnex B’which isnotincluded intheadministrative arrangements andis,presumably, the
listofproducts whose imports fromEgypt aresubject tothequantitative restrictions notified bytheUnited States under paragraph 1ofArticle 2
oftheATC. Therefore, theTMB would appreciate receiving indications astothecorrect understanding oftheproducts covered bythe
administrative arrangements, and,ifapplicable, which product coverage applies towhich provisions ofthearrangements. Equally, ifapplicable,
anyclarification astothelegalgrounds forthebroader coverage adopted inthese administrative arrangements, which aredeemed necessary
inrelation totheimplementation ofanyprovision of[…]Article [2]’,would bealsoappreciated."G/TMB/N/269/Add.1
Page3
Withrespect tothequestion posed inparagraph 43,thisprovision authorizes theUnited States
toapply flexibility adjustments incases where acategory isabout tofill.Itdoesnotimpede Egypt 's
righttoadminister itsquantitative restraints.
With respect tothequestion posed inparagraph 54,circumvention often damages acountry 's
legitimate trade bymaking itimpossible toadminister effectively itsArticle 2.1quotas. Ourtwo
countries deem these circumvention provisions tobenecessary totheimplementation ofthese quotas.
Subparagraph 13(e) hasalsobeendeemed byourtwoGovernments tobeanecessary deterrent to
circumvention. Since itsapplication would affect therestraint levels contained intheUnited States
Article 2.1notification, itisappropriately included here.
Withrespect tothequestion posed inparagraph 65,thetextofthevisaarrangement associated
withthisagreement willbenotified totheTMB inthenearfuture.
Sincerely,
(Signed for)Ambassador RitaHayes
Chief Textile Negotiator
3Paragraph 4ofthatletter reads: "Explanation would alsobeappreciated astothejustification under theATC andthereasons why,
thatalthoughthequantitativerestrictionsareadministeredbyEgyptinaccordancewithArticle4oftheATC,paragraph5(E)oftheadministrative
arrangements states, interalia,theGovernment oftheUnited States maysupply adjustments under thisSection toanySpecific Limit whenever
thatadjustment appears appropriate tofacilitate theflowoftrade andthesound administration oftheAgreement ’."
4Paragraph 5ofthatletter reads: "With respect toparagraph 13,relating tocooperation intheprevention ofcircumvention, theTMB
would appreciate receiving information astohow, intheview oftheUnited States, suchprovisions aredeemed necessary inrelation to
theimplementation ofanyprovision ofArticle 2oftheATC. Moreover, itwould appreciate receiving explanation astohowsuchprovisions,
inparticular sub-paragraph 13(E), fitwithin theprovisions oftheATC."
5Paragraph 6ofthatletter reads: "Finally, paragraph 4oftheMOU refers alsotothevisaarrangement asaprovision which will
bedirectly relevant totheability oftheUnited States andEgypt toimplement theATC. While observing that,contrary tothelastsentence
ofthesame paragraph, thevisaarrangement hasnotbeennotified asyettotheTMB, theBody would appreciate yourviews astowhether
thevisaarrangement ispartoftheadministrative arrangements concluded under paragraph 17ofArticle 2oftheATC."G/TMB/N/269/Add.1
Page4
Executive Office ofthePresident
Office oftheUnited States Trade Representative
Geneva
17March 1997
Dear Ms.Shahin,
Ihave attached tothisletter acopy oftheUnited States notification totheTMB ofthe
administrative arrangements wenotified on21March 1996. Asyouwillnoteonpage14,paragraph 4
indicates those paragraphs fromthebilateral agreement thatweretobenotified totheTMB. Ibelieve
thatparagraphs 3and4(seepages 2and3oftheUnited States notification) fromthebilateral agreement
wereinadvertently leftoutofthatlist.Bothofthese paragraphs should bepartoftheUnited States
notification. IfyourGovernment agrees, please confirm thisfactwithaletter tothiseffect. Iwill
thensubmit acorrected notification totheTMB.
Sincerely,
(signed) William Tagliani
Attache
Dr.Magda Shahin
Mission ofEgypt
Avenue Blanc 49
1202 GenevaG/TMB/N/269/Add.1
Page5
Permanent Mission oftheArab Republic ofEgypt
Geneva, 4April 1997
Dear Mr.Tagliani,
With reference toyourletter dated 17March 1997, regarding theinadvertent omission of
paragraphs 3and4fromtheUnited States notification totheTMB oftheAdministrative Arrangements
forEgypt, Iwould liketoinform youthattheGovernment ofEgypt doesnothaveanyobjections to
theirinclusion inacorrected notification totheTMB.
Yours sincerely,
Magda Shahin
Minister Plenipotentiary
Mr.William Tagliani
Attache
Executive Office oftheUSTR
1-3,avenue delaPaix
1202 Geneva