WORLD TRADE G/TMB/R/30
11June1997
ORGANIZATION(97-2409)
Textiles Monitoring Body
REPORT OFTHE THIRTY-FIRST MEETING
1. TheTextiles Monitoring Body helditsthirty-first meeting on21to23May1997.
2. Present atthismeeting were thefollowing members and/or alternates: Mrs. Berrig/
Messrs. Tadpitakkul; Kim; Malik; Mukerji/Ms. Shahin; Miss Orozco Jaramillo; Messrs. Richards;
Saeki; Saint-Jacques/Wentzel; Tagliani.
3. TheTMB adopted thereport ofitsthirtieth meeting (G/TMB/R/29).
Notification under Article 2.1oftheAgreement onTextiles andClothing (ATC)
4. TheTMBtooknoteofanadditionmadebytheUnitedStatestoitsnotificationunderparagraph1
ofArticle 2,following theconsent bytheUnited States totheapplication between theUnited States
andRomania oftheWTO Agreement andtheMultilateral Trade Agreements inAnnexes 1and2.
Thenotification listed allquantitative restrictions maintained bytheUnited States onimports from
Romania inforce onthedaybefore theimplementation ofthedecision bytheUnited States toapply
theWTO Agreement andtheMultilateral Trade Agreements inAnnexes 1and2toRomania. The
TMB understood thatthegrowth ratesinthisnotification would beincreased annually, inaccordance
withparagraphs 13and14ofArticle 2oftheATC, asfrom thedateofentry intoforce oftheWTO
Agreement between theUnited States andRomania (G/TMB/N/63/Add.10).
Notifications under Articles 2.8(a) and2.11oftheATC
5. TheTMB reviewed under paragraph 21ofArticle 2thenotification made, pursuant to
paragraphs 8(a)and11ofArticle 2,bytheEuropean Community (G/TMB/N/207 andAdd.1). Itnoted
that,inaccordancewithparagraph8(a)ofArticle2thevolumeofimportsoftheproductstobeintegrated
amounted to17.99 percent1ofthetotalvolume ofimports intotheEuropean Community in1990
oftheproducts falling under thecoverage oftheAgreement. Products from eachofthefourgroups
referred toinparagraph 8(a)ofArticle 2would beintegrated, which would represent thefollowing
percentages ofthevolume ofimports in1990 intheEuropean Community: topsandyarns
(11.63 percent), fabrics (2.22 percent), made-up textile products (2.06 percent) andclothing
(2.09percent).TheTMBnotedthattheEuropeanCommunitywouldintegrate23ECproductcategories,
ofwhich fouroftopsandyarns, fouroffabrics, sixofmade-up textile products andofnineofclothing.
TheTMBfurthernotedthat12ECcategorieswithrespecttowhichtheEuropeanCommunitymaintained
restrictions under theATC hadbeenincluded intheintegration programme andthat,therefore, such
1Asaconsequence ofthereview oftheissues raised byColombia withrespect toparticular elements of
theintegration programme notified bytheEuropean Community pursuant toparagraphs 6and7(a)ofArticle 2
(seeG/TMB/R/29, paragraphs 5to42and45),theshares indicated mayhave toberevised upwards.G/TMB/R/30
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restrictionswouldbeeliminatedon1January1998.Restraintsonthese12ECcategoriesaffectedoverall
fiveWTO Members.
6. TheTMB reviewed under paragraph 21ofArticle 2thenotification made, pursuant to
paragraphs 8(a)and11ofArticle 2,bytheUnited States (G/TMB/N/213, Corr.1 andAdd.1). Itnoted
that,inaccordancewithparagraph8(a)ofArticle2thevolumeofimportsoftheproductstobeintegrated
amounted to17.03 percentofthetotalvolume ofimports intotheUnited States in1990oftheproducts
falling under thecoverage oftheAgreement. Products from eachofthefourgroups referred toin
paragraph 8(a)ofArticle 2would beintegrated, which would represent thefollowing percentages of
thevolumeofimportsin1990intheUnitedStates:topsandyarns(8.0percent),fabrics(2.51percent),
made-up textile products (4.54 percent) andclothing (1.98 percent). TheTMB noted thatthe
United States would integrate 38USproduct categories intheirentirety (oneoffabric, threeofmade-ups
and34ofclothing), and12USproduct categories partially (oneofyarns, sixofmade-ups andfive
ofclothing). TheTMB further noted that24UScategories orpartsofcategories withrespect towhich
theUnited States maintained restrictions under theATChadbeenincluded intheintegration programme
andthat,therefore, suchrestrictions would beeliminated on1January 1998. Restraints onthese
24UScategories orpartofcategories affected overall 14WTO Members. Some oftherestraints which
would beeliminated were intheform ofspecific limits (i.e.thecategories themselves were under
quantitative limit), while, insome other cases, thecategory integrated was,prior toitsintegration,
subject toaquantitative restriction because, although thecategory itself wasnotunder specific limit,
itfellunder anaggregate orgroup limit.
7. Onthebasisofadditional information received inresponse torequests bytheTMB, theBody
reverted toitsreview under paragraph 21ofArticle 2ofthenotifications made, pursuant to
paragraphs 8(a)and11ofArticle 2,byCanada andNorway and,seeking further information and
clarification from them, decided torevert toitsreview atasubsequent meeting.
8. TheTMB reviewed under paragraph 21ofArticle 2thenotifications made, pursuant to
paragraphs8(a)and11ofArticle2,byBolivia(G/TMB/N/230),CostaRica(G/TMB/N/220andCorr.1),
theCzech Republic (G/TMB/N/208 andCorr.1), Egypt (G/TMB/N/221), India (G/TMB/N/224),
Japan(G/TMB/N/215),Malaysia(G/TMB/N/237),Malta(G/TMB/N/229),Mauritius(G/TMB/N/242),
Peru(G/TMB/N/226andAdd.1),thePhilippines(G/TMB/N/205),Romania(G/TMB/N/222andAdd.1),
SriLanka (G/TMB/N/239) andVenezuela (G/TMB/N/233/Rev.1). During thisreview theTMB noted
that,inaccordance withparagraph 8(a)ofArticle 2,thevolume ofproducts integrated amounted to
thefollowing percentage2of1990imports oftheproducts falling under thecoverage oftheAgreement
(unless otherwise specified): Bolivia (17.63 percentofimports oftextiles andclothing), Costa Rica
(17.00 percent), Czech Republic (17.02 percentof1993 imports), Egypt (17.04 percent), India
(17.08 percentofimports from April 1990 toMarch 1991), Japan (17.00 percent), Malaysia
(17.13 percentofthevalue ofimports), Malta (17.13 percent), Mauritius (17.25 percentofthevalue
ofimports), Peru(17.04 percent), thePhilippines (17.22 percent), SriLanka (17.01 percentof
thevalue ofimports), andVenezuela (17.11 percent). With respect toRomania, while noting that
Romania hadnotified forthesecond stage ofintegration products which accounted for6.40percent
ofthevalue of1990imports oftextiles andclothing, theTMB tooknoteofthestatement byRomania
that“forthepurposeofArticle6application,Romanianotifiedon1March1995,undertheparagraphs6
and7(b)ofArticle 2,thefirststage ofintegration which covered more than40percentofthevalue
oftextile imports in1990; thevalue oftheimports exceeding theminimum required forthefirststage
ofintegration wastoberegarded asanadvanced implementation ofthenextstages provided inthe
2Theshares indicated forsome Members mayhavetoberevised upwards (seeG/TMB/R/29, paragraphs 43
to45).G/TMB/R/30
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ATC. Romania ’snotification onthesecond stage ofintegration [...]should beconsidered inthat
context ”.TheTMB alsonoted thatineachnotification, inaccordance withparagraph 8(a)ofArticle 2,
theproducts integrated included products fromeachofthefourgroups: topsandyarns, fabrics, made-up
textileproductsandclothing.Withregardtothosenotificationsmentionedaboveforwhichthecalculation
oftheshare oftheproducts integrated hadbeenmade onthebasis ofvalue, orofvolume ofimports
ofadifferent baseyearother than1990, theTMB ensured thatnobetter datawereavailable andthat
theMembers concerned hadfollowed thesameapproach asforthenotification theyhadmade pursuant
toparagraphs 6and7(b)ofArticle 2.
9. TheTMB reverted to,orbegan, itsreview under paragraph 21ofArticle 2,ofthenotifications
made, pursuant toparagraphs 8(a)and11ofArticle 2,byArgentina, Brazil, Colombia, theDominican
Republic, ElSalvador, Hungary, Indonesia, Korea, Liechtenstein, Mexico, Morocco, Nicaragua,
Pakistan, Poland, SaintKittsandNevis, theSlovak Republic, Slovenia, Switzerland, Thailand, Tunisia,
Turkey andUruguay and,seeking further information andclarification fromthem, decided torevert
toitsreview atasubsequent meeting.
Notification under Articles 2.8(b), 2.10and2.11oftheATC
10. TheTMB started itsreview under paragraph 21ofArticle 2oftheprogramme ofintegration
notified pursuant toparagraphs 8(b),10and11ofArticle 2byTurkey and,seeking further information
andclarification, decided torevert toitsreview atasubsequent meeting.
Notifications under Article 2.17oftheATC
11. TheTMB resumed andconcluded thereview, pursuant toparagraph 21ofArticle 2,ofthe
administrative arrangements concluded between theEuropean Community andArgentina, Hong Kong,
India, Indonesia, Korea, Macau, Malaysia, Pakistan, Peru, thePhilippines, Singapore, SriLanka and
Thailand, respectively (G/TMB/N/251 to263). Recalling thataccording toparagraph 17ofArticle 2
"administrative arrangements deemed necessary inrelation totheimplementation ofanyprovision of
[Article 2],shallbeamatter foragreement between theMembers concerned", theTMB noted that
theadministrative arrangements notified hadbeen, asrequired, bilaterally agreed between theEuropean
Community andtheother Members concerned.
12. TheTMB observed thatrespectively India, Indonesia, Korea, Macau, Malaysia, Pakistan, Peru,
thePhilippines, Singapore, SriLanka, Thailand, andtheEuropean Community, hadnegotiated
administrative arrangements under paragraph 17ofArticle 2which reproduced certain provisions of
previous bilateral agreements covering tradeintextile products between theEuropean Community and
those Members. InthecaseofArgentina, theEuropean Community hadnotified theprovisions ofthe
previous agreement between theEuropean Community andArgentina which, asagreed between those
Members, would benotified asadministrative arrangements under paragraph 17ofArticle 2ofthe
ATC. TheTMB alsoobserved thattheEuropean Community andHong Kong had,ontheother hand,
negotiated thetextofaself-contained administrative arrangement.
13. Though thelanguage oftheadministrative arrangements notified differed from eachother,
insubstance theyalladdressed thesame issues andincluded verysimilar provisions withrespect to
them. Thearrangements encompassed issues suchas:product classification, determination oforigin,
treatment ofre-imports afterprocessing andimports forre-export afterthesame, exchange ofstatistical
information,co-operationinpreventingcircumvention,"regionalconcentration",consultationprocedures,
double-checking systems forproducts subject torestraints andadministrative co-operation and,inthe
majority ofcases, exemption ofhand-made cottage industry products andtraditional folklore handicraft
products fromquantitative restrictions provided thattheymetthecriteria laiddown intherespective
arrangements.G/TMB/R/30
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14. TheTMB recalled that, pursuant toparagraph 17ofArticle 2,Members canagree on
administrative arrangements asdeemed necessary inrelation totheimplementation oftheprovisions
ofthisArticle. Itrecognized thatanumber ofprovisions intheadministrative arrangements notified,
designed toensure theproper administration oftherestrictions notified under paragraph 1ofArticle 2,
fellwithin theparameters defined inparagraph 17ofArticle 2.Itobserved, however, thatnotallthe
provisions inthesearrangements werefullyrelated totheimplementation oftheprovisions ofArticle 2
oftheATC, butcould havebeenaddressed insome ofitsother Articles. Itnoted thattheEuropean
Community andtheMembers concerned haddeemed itnecessary toinclude intheadministrative
arrangements provisions oftheprevious bilateral agreements which could haveapotential effect on
theimplementation andadministration ofquantitative restrictions notified bytheEuropean Community
pursuant toparagraph 1ofArticle 2.Inaddition, theattention oftheTMB wasdrawn totheprovisions
oftheEuropean Community ’simplementing legislation onthecommon import regime fortextile and
clothing products, which clarified thattheimplementation ofprovisions suchastheonesincluded in
theadministrative arrangements wasnotintended toconstitute aderogation from theprovisions of
theATC. Inlightoftheabove, theTMB expected thatthese administrative arrangements would be
implemented bytherespective Members inconformity withtherelevant provisions oftheATC.
15. TheTMB tooknoteofthenotifications oftheadministrative arrangements agreed between
theEuropean Community andArgentina, Hong Kong, India, Indonesia, Korea, Macau, Malaysia,
Pakistan, Peru, thePhilippines, Singapore, SriLanka andThailand. Thiswaswithout prejudice to
therights andobligations ofWTO Members arising from theATC.
16. TheTMB decided tocirculate these administrative arrangements toWTO Members fortheir
information.
17. TheTMB resumed itsreview ofadministrative arrangements notified bytheUnited States
pursuant toparagraph 17ofArticle 2,including additional notifications received fromtheUnited States.
TheTMB decided torevert toitsreview atitsnextmeeting.
Notifications under Article 3.1oftheATC
18. TheTMB reverted toitsconsideration ofthenotifications made pursuant toparagraph 1of
Article 3byMexico andThailand, withrespect towhich theBody haddecided inOctober 1995 to
seekclarification. According toitsnotification, Mexico maintained abanonimports ofusedclothing,
which found its“basisandjustification intheProtocol ofAccession ofMexico toGATT 1947, which
forms anintegral partofGATT 1994 inaccordance withAnnex 1A,paragraph 1(b)(ii) oftheFinal
ActoftheUruguay Round ”.TheTMB sought additional information from Mexico withrespect to
theparticular provision oftheProtocol ofAccession under which thisimport prohibition fell.Inthe
absence ofadditional information fromMexico despite further reminders, theTMB decided toconclude
theconsideration ofthisnotification, noting thatMexico hadnotprovided theadditional information
which hadbeenrequested bytheTMB (G/TMB/N/70).
19. According tothenotification provided byThailand, imports ofsilkyarnandjutebagsinto
Thailand were subject tonon-automatic import licensing “under toArticle XVIII:C oftheGeneral
Agreement onTariffs andTrade ”.TheTMB sought more detailed information fromThailand onthis
non-automatic import licensing system, including whether ithadbeennotified totheGATT ortothe
WTO, forexample pursuant toSection CofArticle XVIII. Intheabsence ofadditional information
from Thailand despite further reminders, theTMB decided toconclude theconsideration ofthis
notification, noting thatThailand hadnotprovided theadditional information which hadbeenrequested
bytheTMB (G/TMB/N/71).G/TMB/R/30
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Communication Received from Ecuador
20. TheTMB tooknoteofacommunication byEcuador thatthemeasure affecting textile imports
thathadbeenestablished byaMinisterial Decision on9August 1996, andsubject ofareview bythe
TMB (G/TMB/R/23, paragraphs 9to18),hadexpired on9February 1997.
Preparation forthe1997 Comprehensive Report under Article 8.11oftheATC
21. TheTMB started itsconsideration ofapossible structure forthecomprehensive report onthe
implementation oftheATC during itsfirststage, tobetransmitted totheCouncil forTrade inGoods
inthecontext ofthemajor review envisaged inparagraph 11ofArticle 8oftheATC.
Observations withRespect toLateNotifications
22. With respect tonotifications addressed totheTMB aftertherespective deadlines foreseen in
theATC, theTMB reiterated thatitstaking noteoflatenotifications waswithout prejudice tothelegal
status ofsuchnotifications.