G/L/459
Page 1
Organization
G/L/459
31 July 2001
(01-3839)
COMPREHENSIVE REPORT OF THE TEXTILES MONITORING BODY
TO THE COUNCIL FOR TRADE IN GOODS
ON THE IMPLEMENTATION OF THE AGREEMENT ON TEXTILES AND CLOTHING
DURING THE SECOND STAGE OF THE INTEGRATION PROCESS
I.This comprehensive report on the implementation of the Agreement on Textiles and Clothing(ATC) during the second stage of the integration process is transmitted, pursuant to Article8.11, by the Textiles Monitoring Body (TMB) to the Council for Trade in Goods to assist the Council in the conduct of its second major review of the implementation of the ATC. In compliance with the deadline defined in Article8.11 of the ATC, the report covers the period 1January1998 to 20July2001.
II.Article8.11 requires that the comprehensive report cover implementation, in particular in matters with regard to the integration process, the application of the transitional safeguard mechanism, and relating to the application of GATT1994 rules and disciplines as defined in Articles2, 3, 6 and 7, respectively. The integration process is dealt with in Chapter II of the report, the application of the transitional safeguard mechanism in Chapter III. Matters relating to the application of GATT1994 rules and disciplines, as defined in Articles2, 3, 6 and 7, respectively, are addressed in Chapters II, IV, V and IX. Chapters VI to VIII and X to XIII cover other aspects of the implementation of the ATC and related matters. Practically each of the chapters listed above also includes comments and observations as well as assessments by the TMB, whenever applicable.
III.According to Article8.11, the TMB's comprehensive report may include any recommendation as deemed appropriate by the TMB to the Council for Trade in Goods. Chapter XIV of the report is devoted to the overall assessment of the state of the implementation of the ATC. It also summarizes some of the main observations and includes recommendations for the consideration of the Council for Trade in Goods.
TABLE OF CONTENTS
I.Introduction......
II.INTEGRATION PROCESS......
A.Background: First stage of integration (1995-1997)......
1.Integration Pursuant to Articles 2.6 and 2.7(a)......
(a)Integration programmes notified before the entering into force of the ATC......
(b)Implications of integrating products belonging to HS lines in the Annex to theATC for which only part of the respective lines fall under the coverage of the ATC
2.Integration Pursuant to Articles 2.6 and 2.7(b), Including Notifications Made Under Article 6.1
(a)Notifications pursuant to Article 6.1......
(b)Notifications pursuant to Articles 2.6 and 2.7(b)......
(c)Implications of integrating products belonging to "ex HS lines" in the Annex to the ATC....
B.developments in respect of first stage integration programmes since the adoption of the tmb's first comprehensive report
1.Notifications Received Pursuant to Article 6.1......
2.Additional or New Notifications Received with Reference to Articles2.6 and 2.7(b)
3.Implications of Integrating Products Belonging to "ex HS lines" in the Annex to the ATC and Related Matters
(a)Members referred to in Article 2.7(a)......
(i)European Community......
(ii)Norway......
(iii)United States......
(iv)Canada......
(b)Members referred to in Article 2.7(b)......
C.second stage integration programmes and their implementation......
1.Integration Programmes of Members Maintaining Restrictions Falling Under Article2.1
(a)Summary of the main elements of the notifications made before the end of 1996......
(b)Developments that have affected the respective integration programmes since the adoption of the TMB's first comprehensive report: adjustments made in response to integrating products belonging to "ex HS lines" and related matters
(c)Implementation of the Stage 2 integration programmes......
(i)Integration implemented on 1 January1998......
(ii)Visa requirements by the United States in respect of products integrated during Stage2
(iii)No recourse to the provisions of Article 2.10 (advanced or earlier integration)......
2.Integration Programmes of Members Retaining the Right to Use the Provisions of Article6
(a)Integration programmes notified prior to the adoption of the TMB's first comprehensive report
(b)Developments since the adoption of the TMB's first comprehensive report......
(i)New notifications received with reference to Articles 2.8(a) and 2.11......
(ii)Implications of integrating products belonging to "ex HS lines" in the Annex to theATC
(iii)Completion of the review by the TMB of several notifications made pursuant to Articles 2.8(a) and 2.11
(c)Implementation of integration during Stage2......
3.Conclusions Adopted by the CTG in February1998 in its First Major Review...
4.Additional Comments and Observations of the TMB with Respect to the Implementation of Integration so Far
D.Third Stage of Integration, to be Implemented on 1January2002......
1.Review of the Integration Programmes of Members that had Notified Restrictions Pursuant to Article2.1
2.Review of Integration Programmes of Members which had Retained the Right to Use the Provisions of Article6
3.Further Assessment and Additional Observations by the TMB with Respect to the Third Stage Integration Programmes
(a)Integration programmes of Members that had notified restrictions pursuant to Article2.1
(i)Canada......
(ii)European Community......
(iii)Norway......
(iv)United States......
(b)Integration programmes of Members which had retained the right to use the provisions of Article6
III.APPLICATION OF THE TRANSITIONAL SAFEGUARD MECHANISM......
A.the Application of the Transitional Safeguard Mechanism During the period covered by the tmb's first comprehensive report: A brief overview
B.Application of the Transitional Safeguard Mechanism During the Second Stage of the Integration Process Including Related Developments in the DSB
1.Application by the United States......
(a)Imports of artificial staple fibre yarn (US category 603) from Thailand......
(b)Imports of combed cotton yarn (US category 301) from Pakistan......
2.Application by Colombia......
(a)Imports of denim fabric......
(i)Chile, Peru and Venezuela......
(ii)Brazil and India......
(b)Imports of plain polyester filaments......
(i)Malaysia and the UnitedStates......
(ii)Korea and Thailand......
3.Requests for Consultations by Poland......
(a)Imports of woven fabrics of synthetic filament yarn from Korea......
(b)Imports of certain acrylic or modacrylic staple fibres from Romania......
4.Application by Argentina......
(a)Imports of high tenacity yarn of polyester filaments from Indonesia, Korea and Malaysia and staple fibres of polyester from Korea
(b)Imports of woven fabrics of cotton and cotton mixtures (categories 218, 219/220, 224, 313/317 and 613/617/627)
(i)Brazil......
(ii)Pakistan......
(c)Imports of woven fabrics of synthetic filament, whether or not impregnated (categories229/629, 619 and 620) from Korea
C.conclusions adopted by the ctg in february 1998 in its first major review......
D.views and comments of wto members in response to the tmb's general request for information
E.The tmb's comments and assessments of the application of the transitional safeguard mechanism during the second stage of the integration process
IV.quantitative restrictions notified pursuant to article 2. issues related to the implementation of the provisions of article2 except those concerning integration
A.scope of the restrictions taken over from the mfa regime: status and developments during the first stage of the integration process
1.Notifications Made Pursuant to Article 2.1......
2.Observations With Respect to Notifications Made Pursuant to Article 2.1......
3.Changes Implemented During Stage1: Elimination of Restrictions Pursuant to Article2.15 or Similar Measures
4.Implementation of the Provisions Related to Growth and Flexibility......
5.Implementation of Other Provisions of Article2, in Particular Articles 2.17 and 2.18
B.Stage 2: developments in and implementation of the restrictions notified under article 2.....
1.New Notifications Received With Reference to Article2.1......
2.Changes in Restrictions Previously Notified Under Article2.1......
(a)Removal of restrictions by way of integration......
(b)Notifications made pursuant to Article2.15: elimination of restrictions without integration
(c)Elimination or non-application of restrictions to imports from certain WTOMembers.
(d)Suspension of the application of restrictions to imports from certain Members......
(e)Increase in certain restraint levels, other than pursuant to Article 2.14(a)......
(f)Adjustments implemented in the level of certain restrictions as a result of integration of parts of restrictions notified under Article 2.1
(g)Views and comments of WTO Members in response to the TMB's request for information and/or to further specific questions raised by the TMB
3.Implementation of the Provisions Related to Growth (Article 2.14(a))......
(a)Information at the TMB's disposal......
(b)Conclusions adopted by the CTG in February1998 in its first major review......
(c)Views and comments of WTO Members in response to the TMB's request for information and/or to further specific questions raised by the TMB
4.Implementation of the Flexibility Provisions (Article 2.16)......
5.Implementation of the Provisions of Article 2.18......
(a)Implementation during Stage1......
(b)Implementation during Stage 2......
(c)Conclusions adopted by the CTG in February1998 in its first major review......
(d)Views and comments of WTO Members in response to the TMB's general request for information and/or to further queries to certain WTO Members
6.Administrative Arrangements Agreed Between Members Following the Provisions of Article2.17
(a)Administrative arrangements notified during Stage 1......
(b)Developments during Stage 2......
(i)New notifications made with reference to Article 2.17......
(ii)Other matters referred to the TMB with reference to Article2.17......
(iii)Implementation of the administrative arrangements......
C.Introduction of new restrictions during stage 2 (article 2.4)......
1.Turkey: Restrictions on Imports of Textile and Clothing Products......
2.UnitedStates: Measures Affecting Textile and Apparel Products as a Result of the Change to the US Rules of Origin
3.Colombia – Transitional Safeguard Measure on Imports of Plain Polyester Filaments from Thailand
4.Argentina – Transitional Safeguard Measures on Imports of Woven Fabrics of Cotton and Cotton Mixtures Originating in Brazil
5.United States – Transitional Safeguard Measures on Combed Cotton Yarn from Pakistan
6.United States – Introduction of a New Restraint on Certain Imports from Turkey, as Part of a Broader Understanding Reached by the Two Members
7.Requests for consultations with Brazil and Romania with reference, inter alia, to Article2 of the ATC by the United States
D.other provisions of article 2......
1.Observations, if any, Brought to the Attention of the TMB, Pursuant to Article2.2
2.Arrangements to Bring Restrictions into Line with Agreement Year (Article2.3) and Treatment of MFA Article3 Measures (Article2.5)
3.Safeguard Measures Initiated Under ArticleXIX of GATT1994 in Terms of Articles2.19 and 2.20 of the ATC
E.Review of the implementation of article 2 by the tmb (pursuant to article2.21)......
F.Further comments and observations of the TMB......
1.The Effect of the Growth Provisions on Actual Trade and on Trading Opportunities...
2.Issues Related to the Implementation of Article2.15......
3.Implications of the Implementation of the US Trade and Development Act of 2000.....
4.Suspension of the Application of Restrictions......
5.Implementation of the Provisions of Article2.18......
V.Restrictions other than those taken over from the former mfa regime......
A.restrictions notified pursuant to article 3.1......
1.Notifications Received During Stage 1 and Their Review......
2.Notification Made With Reference to Article 3.1 During Stage 2......
B.Progressive phasing out of restrictions not justified or their being brought into conformity with gatt 1994
1.Measures Brought Into Conformity With GATT 1994 (Article 3.2(a))......
2.Programmes for the Progressive Phasing-out of Restrictions Within a Period Not Exceeding the Duration of the ATC (Article 3.2(b))
(a)Programmes notified during Stage 1 and their respective implementation during the same stage
(b)Developments in the implementation of the respective programmes during Stage 2......
C.information with respect to new restrictions or changes in existing restrictions pursuant to article 3.3
1.Developments During the First Stage of the Integration Process......
(a)Communications received with reference to Article 3.3......
(b)Observations made by the TMB in its first comprehensive report......
2.Developments Since the Adoption of the TMB's First Comprehensive Report......
(a)Communications received by the TMB under Article 3.3......
(b)Reverse notifications and restrictions not notified (Article 3.4)......
D.observations with respect to the application of article 3 during stage 2......
1.Quantitative Restrictions Introduced by Turkey......
2.Quantitative Restrictions Maintained by India on Imports of, inter alia, Textile Products
3.Changes, if Applicable, in Restrictions Applied with Reference to Article XVIII:B of GATT1994 by Some WTO Members
E.Views and comments of WTO Members in response to TMB's request for information and/or to further specific questions raised by the TMB
VI.Administration of restrictions notified under article2. changes in practices, rules, procedures and categorization of products. changes in the level of restrictions as a result of integration of parts of the respective restrictions. (implementation of the provisions of article 4)
A.Administration of restrictions (article 4.1)......
B.changes in the sense of article 4.2 in the implementation or administration of restrictions applied under the atc and related actions under article 4.4
1.Developments Regarding the Implementation of Articles 4.2 and 4.4 During the Period Covered by the First Comprehensive Report: Changes in the Rules of Origin Applied by the UnitedStates
2.Developments During the Second Stage of the Integration Process......
3.Views and Comments of WTO Members in Response to the TMB's General Request for Information and/or to Further Queries to Certain WTO Members
C.integration of parts of a restriction (article 4.3) and related actions under article 4.4......
1.Developments During the Second Stage of the Integration Process......
2.Views and Comments of WTO Members in Response to the TMB's General Request for Information and/or to Further Queries to Certain WTO Members
D.related issues......
E.comments and observations by the tmb......
1.Changes in the Rules of Origin Applied by the UnitedStates......
2.Changes in Classification of Products/Categories and in Technical Requirements During Stage2
3.The Effect of Integration of Parts of a Restriction......
(a)Implementation during Stage2 of the integration process......
(b)Outlook for Stage 3......
VII.Implementation of the provisions related to problems arising from potential circumvention of the atc (article 5)
A.Stage 1: Issues relevant in the context of the implementation of article 5......
B.Developments since the adoption of the tmb's first comprehensive report......
1.The TMB's Examination of the Communications Made by Pakistan and the UnitedStates
(a)Reduction of the debit made by the United States to Pakistan's category 361 quota......
(b)Introduction of a limit on man-made fibre bedsheets and pillowcases......
(c)Resolution of matters concerning changes in the US rules of origin......
2.Communication by Pakistan and its Follow-up......
3.Joint Communication Received from Pakistan and the UnitedStates......
4.Other Matters Referred to the TMB under Article 5......
C.conclusions adopted by the ctg in february1998 in its first major review......
D.views and comments of wto members in response to the tmb's general request for information and/or to further queries to certain wto members
E.additional comments by the tmb......
VIII.ISSUES REFERRED TO OR TAKEN UP BY THE TMB WITH REFERENCE TO THE PROVISIONS OF ARTICLE 8 OF THE ATC
A.Issues referred to and/or taken up by the tmb with reference to the provisions of article 8.1...
1.United States/Turkey: Introduction of a New Restriction......
(a)Examination of the measure by the TMB......
(b)Subsequent developments......
(c)Follow-up by the TMB......
2.Visa Requirements by the United States in Respect of Products Integrated During Stage2
B.matters brought to the tmb pursuant to articles 8.5 and/or 8.6......
1.Communications Made by Honduras Pursuant to Articles8.5 and 8.6.......
(a)Consideration of the communications by the TMB......
(b)Comments made subsequently in the General Council......
(c)Views and comments of WTO Members in response to the TMB's general request for information
(d)Additional comments by the TMB......
2.Communication Received from Pakistan......
C.the tmb's surveillance of the implementation of its recommendations pursuant to article 8.9..
D.Issues referred to the tmb pursuant to the provisions of article8.10......
IX.ACTIONS REFERRED TO IN ARTICLE7 WITH A VIEW TO ABIDING BY GATT1994 RULES AND DISCIPLINES SO AS TO ACHIEVE IMPROVED ACCESS TO MARKETS AND ENSURE THE APPLICATION OF POLICIES RELATING TO FAIR AND EQUITABLE TRADING CONDITIONS - IMPLEMENTATION OF THE PROVISIONS OF ARTICLE7
A.The Provisions of Article7......
B.comments made by the tmb in its first comprehensive report......
C.conclusions adopted by the council for trade in goods in february1998 in its first major review
D.notifications of members and/or their assessments regarding developments during the second stage of the integration process
1.Notifications Falling Under the Provisions of Articles7.2 and7.3......
2.Information, Views and Comments of WTO Members in Response to the TMB's Request
(a)Canada......
(b)EuropeanCommunity......
(c)ITCB members......
(d)Japan......
(e)Turkey......
(f)United States......
3.Additional Communications Received by the TMB......
(a)European Community......
(b)ITCB members......
(c)United States......
E.comments of the tmb with respect to the implementation of the provisions of article7. additional observations in relation to some of the issues raised by members in their respective responses to the tmb's request for information
1.Some Remarks Related to the Obligations Incorporated into Article7......
2.Implementation of the Provisions of Article7.1(a) (Market Access)......
3.Other Issues Raised by Members in the Context of the Provisions of Article 7.1(a).....
4.Implementation of the Provisions of Article7.1(b)......
5.Implementation of the Provisions of Article7.1(c)......
X.implementation of provisions in the atc related to special interests or particular situations of certain wto members
A.least-developed country members......
1.Articles 6.6(a) and 6.6(b)......
2.Article 2.18......
B.small suppliers and new entrants in the field of textiles and clothing trade......
C.special treatment afforded to members which have not accepted the multifibre arrangement (MFA) extension protocol since 1986
D.cotton-producing exporting members......
E.wool-producing exporting members......
F.more favourable treatment to be accorded to re-imports in applying the transitional safeguard mechanism
G.treatment accorded to developing country members......
1.Special Provision in Favour of Developing Country Members......
2.Other Provisions Which Could be Applied in Such a Way as to Provide Favourable Treatment, inter alia, to Developing Country Members
H.conclusions adopted by the ctg in february 1998 in its first major review......
1.Least-Developed Country Members......
2.Small Suppliers and New Entrants in the Field of Textiles and Clothing Trade......
3.Cotton-Producing Exporting Members......
4.Conclusion of the Major Review by the CTG in February 1998......
I.further comments and observations by the tmb......
XI.OTHER ISSUES......
A.Autonomous Industrial Adjustment and Increased Competition in Members' markets......
1.Information and/or Comments Provided by WTO Members in Response to the TMB's Request
(a)Canada......
(b)European Community......
(c)Japan......
(d)Turkey......
(e)United States......
(f)Comments made by the ITCB members......
2.Additional Comments and Observations of the TMB......
B.Regional arrangements and initiatives......
1.NAFTA......
(a)Trade in textiles......
(b)Trade in clothing......
2.Agreements Concluded by the European Community......
(a)Trade in textiles......
(b)Trade in clothing......
3.US Trade Arrangements with Countries of the Caribbean Basin......
4.African Growth and Opportunity Act Adopted by the United States......
5.Recent Indications Regarding Developments in Trade in 2000......
C.elimination of restrictions on imports from certain non-wto members......
D.accession of new members to the wto......
XII.COMPLIANCE WITH NOTIFICATION REQUIREMENTS UNDER THEATC
XIII.Functions of and work carried out by the tmb......
A.discharging functions on an ad personam basis......
1.TMB Working Procedures......
2.Decision of the CTG......
3.Code of Conduct Adopted by the DSB......
B.circulation of reports and notifications; derestriction of documents......
1.Circulation of Reports......
2.Circulation of Notifications......
3.Derestriction......
C.number of meetings, scheduling of meetings......
D.transparency......
E.decision-taking......
F.views and comments of wto members in response to the tmb's general request for information and comments
XIV.overall assessment of THE implementation of the atc AND recommendations to the cTG
1.Integration Process. Restrictions Taken Over From the MFA Regime......
2.Use of the Transitional Safeguard Mechanism......
3.Changes in Practices, Rules, Procedures and Categorization of Products......
4.Circumvention......
5.Implementation of the Provisions of Article 7......
6.ATC Provisions Related to Special Interests or Particular Situations of Certain WTO Members
(a)Least-developed country Members......
(b)Small suppliers......
(c)Cotton-producing exporting Members......
7.Autonomous Industrial Adjustment and Increased Competition in Members' Markets..
8.Regional Arrangements and Initiatives......