RESTRICTED
WORLD TRADE G/TMB/N/154
16July1996
ORGANIZATION(96-2749)
Original: English Textiles Monitoring Body
AGREEMENT ONTEXTILES AND CLOTHING
Notification under Article 2.17
Canada
Administrative Arrangements withBrazil
TheTextiles Monitoring Bodyhasreceived anotification fromCanada pursuant toparagraph 17
ofArticle 2.TheTMB iscirculating thisnotification toWTO Members fortheirinformation.G/TMB/N/154
Page2
ThePermanent Mission ofCanada
totheUnited Nations
1rueduPré-de-la-Bichette
1202 Geneva
13March 1996
Dear Ambassador Szepesi,
Pursuant toArticle 2.17oftheAgreement onTextiles andClothing, Ihavethehonour tonotify
theAdministrative Arrangements thathave been concluded withthefollowing WTO Members:
Bangladesh,Brazil1,CostaRica,Cuba,HongKong,Hungary,India,Indonesia,Korea,Lesotho,Macau,
Malaysia, Mauritius, Pakistan, Philippines, Romania, Slovak Republic, SriLanka, Swaziland, Thailand
andUruguay.
Yours sincerely,
(Signed) JeanSaint-Jacques
Counsellor
Ambassador András Szepesi
Chairman
Textiles Monitoring Body
World Trade Organization
Centre William Rappard
154ruedeLausanne
1211 Geneva
1Thisdocument contains theAdministrative Arrangements withBrazil. Arrangements concluded withthe
other WTO Members mentioned above willbecirculated asseparate documents.G/TMB/N/154
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Memorandum ofUnderstanding Between theGovernment ofCanada andthe
Government oftheFederative Republic ofBrazil Relating tothe
Export from Brazil ofCertain Textile Products toCanada
Introduction
1. ThisMemorandum ofUnderstanding (MOU) setsouttheadministrative arrangements thathave
beenagreed upon between theGovernments ofCanada andBrazil, pursuant toArticle 2.17ofthe
MTN Agreement onTextiles andClothing (ATC) inorder toimplement thetextiles andclothing
restraints between Canada andBrazil tobenotified pursuant toArticle 2.1oftheATC. These provisions
willalsoapply withrespect toanyrestraint introduced byCanada onimports oftextiles andclothing
from Brazil pursuant totheprovisions ofArticle 6oftheATC.
Implementation
2. Inaccordance withtheprovisions ofArticle 4.1oftheATC, these arrangements shall be
implemented onthebasis oftheexport control system operated bytheGovernment oftheFederative
Republic ofBrazil. Exports ofthetextile products included intherestraints notified under Article 2.1
oftheATC shallbecovered byanoriginal "Export Licence" endorsed andissued bythecompetent
authorities ofBrazil totheeffect thatthegoods covered bytheexport licence havebeendebited from
theapplicable quantitative limit.
3. Forthepurpose ofimplementing these arrangements, thedateofexport from Brazil shallbe
usedtodetermine therestraint period inwhich anyshipments oftextile products shallbecounted.
4. TheGovernment oftheFederative Republic ofBrazil shallendeavour toensure thatexports
toCanada ofallrestrained textile products arespaced outasevenly aspossible during eachrestraint
period, dueaccount being taken ofseasonal factors andofnormal channels oftrade.
5. Export licences issued bytheGovernment oftheFederative Republic ofBrazil inrespect of
restrained textile products shallcontain thefollowing information:
(a) Country ofdestination;
(b) Country oforigin;
(c) Licence number andquota year;
(d) Importer 'sname andaddress;
(e) Exporter 'sname andaddress;
(f) ItemnumberanddescriptionofproductascontainedinthenotificationunderArticle2.1
oftheATC;
(g) Quantity expressed intheunitsdesignated foreachproduct inthenotification under
Article 2.1oftheATC. Ifmore thanonesetofmeasures isestablished, allshould
beindicated; where thequantity isexpressed other thanasdesignated, theequivalent
weight, unitsorm2should becalculated inaccordance withtheconversion factors set
outintherestraint notified under Article 2.1oftheATC;G/TMB/N/154
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(h) F.o.b. orc.i.f. value except fornon-commercial consignments;
(i) Certification bythecompetent authorities ofBrazil thatthequantity hasbeendebited
from theagreed restraint limitforexports toCanada.
6. Intheevent thatanyquantity covered byanexport licence isnotshipped, oranypartofit
isreturned, regardless ofthereason, theGovernment oftheFederative Republic ofBrazil shallnotify
theGovernment ofCanada ofsuchquantity which maybecredited bytheGovernment oftheFederative
Republic ofBrazil totheappropriate restraint limit.
7. Except asprovided forinparagraphs 8to11below (swing andcarryover/carry forward), the
Government oftheFederative Republic ofBrazil shallrestrain itsexports toCanada ofthetextile
products notified pursuant toArticle 2.1oftheATCtothelimits notified under Article 2.1oftheATC,
asmodified bytheprovisions ofArticles 2.7,2.8,2.13and2.14oftheATC. Pursuant toArticle 4.1
oftheATC, itisunderstood thattheGovernment ofCanada shallnotbeobliged toaccept shipments
inexcess oftherestraint levels notified under Article 2.1oftheATC, asmodified bytheprovisions
ofArticles 2.7,2.8,2.13and2.14oftheATC.
Swing
8. Subject tothespecific limitations contained intherestraint notification under Article 2.1of
theATC, andfollowing notification totheappropriate Canadian authorities, theGovernment ofthe
Federative Republic ofBrazil mayexceed thespecified annual quantitative limituptothepercentage
specified intherestraint notification under Article 2.1oftheATC, provided thatanequivalent amount
isdeducted from anyother restraint level. When anyrestraint limitisexceeded bytheapplication
ofswing, theGovernment oftheFederative Republic ofBrazil shallsoindicate insubsequent monthly
statistical reports.
9. Forthepurpose ofimplementing theswing provisions inparagraph 8,theconversion factors
specified intherestraint notification under Article 2.1oftheATC shallapply.
Carryover/carry forward
10. Following notification totheGovernment ofCanada ofthequantities involved, portions of
anyquantitative limitwhich arenotusedduring theannual restraint period maybecarried overand
added tothecorresponding quantitative limitforthefollowing annual restraint period. Therestraint
limitforanysuchrestraint period shallbeincreased within thepercentage limits specified intherestraint
notification under Article 2.1oftheATC.
11. Following notification totheGovernment ofCanada ofthequantities involved, anyrestraint
limitmaybeincreasedwithinthepercentagelimitsspecifiedintherestraintnotificationunderArticle2.1
oftheATC byaquantity advanced from thecorresponding restraint limitforthefollowing annual
restraint period. Therestraint limitforanysuchfollowing restraint period shallbereduced byaquantity
equal tothequantity soadvanced.
Combined flexibility
12. Inaccordance withtheprovision ofArticle 2.16oftheATC, noquantitative limits shallbe
placed ormaintained onthecombined useofswing, carryover orcarry forward.G/TMB/N/154
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Exchange ofstatistics
13. TheGovernment oftheFederal Republic ofBrazil shallprovide theGovernment ofCanada
withmonthly statistical reports relating toexports ofrestrained textile products, licensed forexport
toCanada anddebited fromthequantitative limits foreachrestraint period. These statistics shallinclude
thefollowing information:
(a) Itemnumber anddescription;
(b) Original andadjusted restraint limits fortherestraint period;
(c) Total quantity issued fortherestraint period todate;
(d) Notification ofanyutilization ofswing, carryover orcarry forward provisions and
thequantities involved asprovided forinparagraphs 8to11above.
Thisinformation should beprovided assoonaspossible following theendofeachmonth.
14. TheGovernment ofCanada shallprovided theGovernment oftheFederative Republic ofBrazil
withmonthly statistical reports relating toimport permits issued forimports originating inBrazil of
textile products listed inAnnex I.
15. BothGovernmentsreservetherighttorequestadditionalstatisticsasmaybereasonablyrequired,
including statistics relating totheexport orimport ofproducts notcontained inthenotification, under
Article 2.1oftheATC, ofCanada 'srestraints onimports from Brazil.
Re-exports
16. TheGovernment ofCanada shall, sofaraspossible, inform theGovernment oftheFederative
Republic ofBrazil when imports intoCanada ofrestrained textiles products aresubsequently re-exported
fromCanada. Where suchre-exports haveoriginally beendebited bytheGovernment oftheFederative
Republic ofBrazil fromquantitative limits, theGovernment ofBrazil maythencredit backthequantity
involved totheappropriate quantitative limits.
Consultations
17. Pursuant toArticle 8.4oftheATC, theGovernment oftheFederative Republic ofBrazil and
theGovernment ofCanada express theirwillingness toconsult, onrequest, onanymatter arising from
theimplementation oroperation oftheATC orofthisMOU oronanymatter germane thereto.
(Signed) _________________________ (Signed) __________________________
FortheGovernment ofthe FortheGovernment ofCanada
Federative Republic ofBrazil
Ottawa
4May1995G/TMB/N/154
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ANNEX I-RESTRAINT LEVELS
FEDERATIVE REPUBLIC OFBRAZIL
GROUP I
(A)
Agreement
ItemNo.(B)
Product Coverage(C)
1995
Restraint
level (unit)(D)
Growth(E)
Swing(F)
Carryover/
carry
forward(G)
Conversion
factor
(m2/unit) Category Short description
8a 8.2 T-shirts 5,045,303 6.96% n/a 11%(6%) n/aG/TMB/N/154
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ANNEX I-RESTRAINT LEVELS
FEDERATIVE REPUBLIC OFBRAZIL
GROUP II
(A)
Agreement
ItemNo.(B)
Product Coverage(C)
1995 Restraint
level (unit)(D)
Growth(E)
Swing(F)
Carryover/
carry
forward(G)
Conversion
factor
Category Short description
41a 41.1 Bedsheets (NMB) 2,198,697 8.12% 5% 10%(5%) 0.5kgm/unit
41b 41.2 Pillow cases (NMB) 2,198,697 8.12% 5% 10%(5%) 0.2kgm/unit
42a 42.1 Toilet andkitchen linen, cotton
terry, woven (KGM)1,485,380 6.96% 5% 10%(5%) 2.8m2/unit
42b
42.1-ofwhich:
Toilet andkitchen linen, cotton
terry, woven, excluding terry
towels ofmore than30inches by
60inches (76cmby150cm)in
size1,029,149 8.12 5% 10%(5%) 2.8m2/unit