RESTRICTEDWORLD TRADE
ORGANIZATIONG/TMB/R/88
17 June 2002
(02-3327)
Textiles Monitoring Body
REPORT OF THE EIGHTY-NINTH MEETING
1. The Textiles Monitoring Body held its eighty-ninth meeting on 14 May 2002.
2. Present at this meeting were the following members and/or alternates: Messrs. Alvarado;
Dalela; Karapinar; Moroz;  Shin; Ms. Simopoulos; Messrs. Tagliani; Yamagami; Ms. Zhang/Ms. Lu.
3. The TMB adopted the report of its eighty-eighth meeting (G/TMB/R/87).
Notifications under Article 2.1 of the Agreement on Textiles and Clothing (ATC)
4. The TMB reverted to its examination of a notification received pursuant to Article 2.1 from
Turkey following the accession of China to the WTO, also on the basis of additional information
provided by Turkey in response to clarifications sought by the TMB1  (G/TMB/N/422 and Add.1) and
of observations made by China pursuant to Article 2.2 (G/TMB/N/447). The TMB decided to bringthe additional information provided by Turkey to the attention of China, in particular those related to
the reasons why Turkey considered it appropriate to notify most of its quantitative restrictions
maintained on imports from China of the products falling under the coverage of the ATC under
Article 2.1, and the manner in which Turkey had impl emented the growth-on-growth provisions of the
ATC.  The TMB further decided to bring the observations made by China to the attention of Turkey.
5. The TMB reverted to its examination of a notification received pursuant to Article 2.1 from
the United States following the accession of China to the WTO, also on the basis of additional
information provided by the United States (G /TMB/N/63/Add.12 and Add.12/Suppl.1) in response to
clarifications sought by the TMB
2, of observations made by China pursuant to Article 2.2
(G/TMB/N/445), as well as observations made by the United States in response to China's
observations (G/TMB/N/63/Add.12/Suppl.2).  The TM B decided to bring the additional information
and observations provided by the United States to the attention of China, in particular the informationrelated to the manner in which the United States had implemented the growth-on-growth provisions of
the ATC, and those related to the TMB's question seeking confirmation that, in accordance with
Article 2.16, no quantitative limits were placed or maintained on the combined use of swing,
carryover and carry forward.
6. The TMB reverted to its examination of a notification received pursuant to Article 2.1 from
the United States following the accession of Chinese Taipei to the WTO, also on the basis of
additional information provided by the United States (G/TMB/N/63/Add.13  and Add.13/Suppl.1) in
response to clarifications sought by the TMB.
3  The TMB decided to seek further clarifications from
the United States, inter alia , on the manner in which the growth-on-growth provisions had been
implemented.  The TMB also decided to bring the additional information provided by theUnited States to the attention of Chinese Taipei.
                                                     
1 See G/TMB/R/86, paragraph 4.
2 See G/TMB/R/86, paragraph 5.
3 See G/TMB/R/87, paragraph 6.G/TMB/R/88
Page 2
7. The TMB reverted to its consideration of the notification received pursuant to Articles 2 and 3
from Canada following the accession of Chinese Taipei to the WTO, also on the basis of the
additional information provided by Canada in response to clarifications sought by the TMB
(G/TMB/N/62/Add.4, Add.4/Corr.1 and Add.4/Corr.1 /Suppl.1), of observations made by Chinese
Taipei pursuant to Article 2.2 (G/TMB/N/438), and of comments made by Canada on theseobservations (G/TMB/N/62/Add.4/Corr. 1/Suppl.2).  The TMB took note of the fact that according to
Canada, inter alia,  the minor differences in corresponding quota levels for 2001 between the
information supplied by Canada and Chinese Taipei, respectively, stemmed from the accumulated
impact of rounding differences over time.  Accordingly, the TMB also took note of the statement by
Canada that the volumes referred to in the submission by Chinese Taipei were correct and were those
which Canada had implemented for 2001.
Notification under Article 2.2 of the ATC
8. The TMB began its consideration of a notification received from China pursuant to
Article 2.2 (G/TMB/N/447), regarding the notificati on of the restrictions maintained on imports from
China of the products falling under the coverage of the ATC, received from Turkey pursuant to
Article 2.1.  The TMB decided to bring this notification to the attention of Turkey and requested it to
provide comments, observations or possible additional information with respect to the observationsmade by China.
4
Notifications under Article 2.17 of the ATC
9. The TMB reverted to its review, pursuant to Article 2.21, of the notification made by Canada
of administrative arrangements agreed between Canada and China, also on the basis of the
information provided by Canada in response to the clarifications sought by the TMB.5  Mindful of the
fact that it had sought similar clarifications from China which had not as yet been provided, the TMB
started to examine the additional information provided by Canada.
Notifications under Articles 3.1 and 3.2(b) of the ATC
10. The TMB continued its examination of the notification received pursuant to Article 3.1 from
Turkey, following the accession of China to the WTO, also on the basis of additional informationprovided by Turkey in response to clarifications sought by the TMB
6 (G/TMB/N/423 and Add.1).  In
its response, Turkey confirmed, inter alia , that it had notified to the TMB the quantitative restrictions
taken over from its previous bilateral agreement with China "maintained under the non-MFA
Agreement" at the levels specified for the year in which China acceded to the WTO.  In light of this
statement, the TMB understood that, pursuant to Article 3.1, Turkey had notified the restrictions
maintained on products that had not been covered by the former MFA.  As regards the details
regarding a phase-out programme in the sense of Article 3.2(b) of the restrictions notified pursuant toArticle 3.1, Turkey provided a list of the restrictions that had been eliminated on the day of accession
of China to the WTO, as well as a list of the restrictions eliminated as of 1 January 2002.
Furthermore, Turkey stated that it "intends to 'phase-out' the restrictions on all remaining products no
later than 1.1.2005".  Also, Turkey confirmed that the growth rates noted in Annex to the notification
applied to the remaining quantitative restrictions in the years 2002-2004.  On that basis, the TMB tooknote of the notification.
                                                     
4 See also paragraph 4 above.
5 See G/TMB/R/87, paragraph 15.
6 See G/TMB/R/86, paragraph 8.G/TMB/R/88
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Notifications under Articles 2.6 and 2.7(b), 2.8(a), 2.8(b) and 2.11 of the ATC
11. The TMB reverted to its review, under Article 2.21, of the notifications made, pursuant to
Articles 2.6 and 2.7(b), 2.8(a), 2.8(b) and 2.11 by China, also on the basis of additional information
provided by China in response to questions put by the TMB (G/TMB/N/441 and Add.1; 442 and
Add.1; 443 and Add.1).7  Having examined the response provided, the TMB decided to seek further
clarifications from China regarding its notifications.
Communication received by the TMB
12. The TMB took note of a communication by H ungary, for the Body's information, of the
notification made pursuant to the Decision on Notification Procedures for Quantitative Restrictions
adopted by the Council for Trade in Goods on 1 December 1995 (G/L/59), containing the quantitative
restrictions in force in 2002 maintained on imports of certain textile products from China.  The
notification stated, inter alia , that these restrictions were justified  by Annex 7 of the Protocol of
Accession of China to the WTO and that "the proposed removal of the restrictions maintained by
Hungary according to Annex 7 of the Protocol of Accession of China is 2005"  (G/TMB/N/448).
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7 See G/TMB/R/87, paragraph 20.