WORLD TRADE
ORGANIZATIONG/TMB/N/63/Add.14/Suppl.1
24 September 2003
(03-5048)
Textiles Monitoring Body Original:  English
AGREEMENT ON TEXTILES AND CLOTHING
Notification under Article 2.1
UNITED STATES
Supplement
The Textiles Monitoring Body has received a supplement to the notification made by the
United States pursuant to Article 2.1.
The TMB, in accordance with Article 2.2, is circulating this notification to WTO Members
for their information.G/TMB/N/63/ Add.14/Suppl.1
Page 2
Permanent Mission of the United States to the WTO
Geneva
19 September 2003
The Honourable András Szepesi
ChairmanTextiles Monitoring Body
World Trade Organization
Rue de Lausanne 154
1211 Geneva
Switzerland
Dear Mr Chairman,
I refer to the TMB communication dated 26 June 2003 posing questions concerning the U.S.
notification of textile restraints on the Former Yugoslav Republic of Macedonia.
1. "The Former Yugoslav Republic of Macedonia became a Member of the WTO on
4 April 2003.  The TMB assumes, therefore, that the restrictions thus notified are all the relevantrestrictions in force on 3 April 2003.  An indication of whether the TMB's understanding in this
regard is correct or not would be appreciated."
Answer:  The limits notified were all the relevant restrictions in force on that date.
2. "Furthermore, the TMB would like to be informed of any quantitative restrictions that were
eliminated on 4 April 2003 as a result of the integration by the United States of certain products under
Stages 1, 2 or 3 of the ATC."
Answer:  The U.S. limits on FYRO M cover only categories 433, 434, 435, 443, and 448.  None of the
products in these categories were integrated in Stages 1, 2, or 3, so no quantitative restrictions were
eliminated as a result of the integration by the United States of certain products under Stages 1, 2 or 3
of the ATC.
3. "Since the notification does not specify the manner in which the United States has
implemented the growth-on-growth pr ovisions of the ATC to the quantitative restrictions notified, the
TMB would appreciate receiving this information, as well as information on the resulting levels in
force as from 4 April 2003."
Answer:  The United States notified a pre-accession growth rate for all categories of 2 per cent.
Annual growth rate for 2004 quotas will be 2.54 per cent;  for the 2003 limits, we increased the
effective growth rate by prorating that amount to reflect the number of days in 2003 that FYROM will
be a Member of the WTO:  272 days of the 365 days in 2003 at 2.54 per cent,  resulting in a prorated
growth rate for 2003 of 2.40241096 per cent.  This amount was applied to the 2002 base levels to
calculate revised 2003 limits. (2%+(2%*(0.27*(272/365)))).G/TMB/N/63/ Add.14/Suppl.1
Page 3
4.  "Finally, the TMB would like to seek clarifications as to how the special shift available for
some of the quantitative restrictions notified is being implemented in practice."
Answer:  Special shift had been already applied earlier in 2003.  Following its accession to the WTO,
FYROM’s base limits were increased to reflect WTO accession.  In addition, the flexibility already
applied was recalculated, so that increased levels were applied.  Specifically,  the 6 per cent swing and7.5 per cent special shift previously applied to category 433 were recalculated based on the higher
base level.  Also, a higher amount of carryover was available based on the increased base level for
category 433.  Category 433 was the only category for which FYROM had requested flexibility
increases in 2003.
Sincerely,
(signed)
William Tagliani
Attaché
____________