. /.WORLD TRADE
ORGANIZATIONG/TMB/N/458
7 April 2003
(03-1900)
Textiles Monitoring Body Original:  English
AGREEMENT ON TEXTILES AND CLOTHING
Notification under Article 8.10
UNITED STATES
The Textiles Monitoring Body has received a communication from the United States pursuant
to Article 8.10 and is circulating it to WTO Members for their information.G/TMB/N/458
Page 2
Permanent Mission of the United States
to the World Trade Organization
Geneva
28 March 2003
The Honourable András Szepesi
Chairman
Textiles Monitoring Body
World Trade Organization
Rue de Lausanne 1541211 Geneva
Dear Mr. Chairman,
I refer to the report of the 96
th meeting of the TMB, circulated on 27 February 2003 as
document G/TMB/R/95.  Pursuant to the provisions of Article 8.10 of the ATC, the United States
submits the following with respect to the recommendation contained in paragraph 10 of the report.
In assessing whether WTO Members have complied with their obligations to China under the
ATC, due consideration has to be given to the applicable provisions of the Report of the Working
Party on the Accession of China to the WTO.  While appreciating the challenge facing the TMB in
this regard, it has to be recalled that the TMB also recognized that "the relevant provisions of the legal
instruments of China's accession, in particular the term 'as appropriate' in the third sentence of
paragraph 241 of the Report of the Working  Party on the Accession of China, had not providedunambiguous guidance regarding some of the aspects invo lved".  In the view of the United States, this
paragraph of the Working Party report not only make s it clear that the increase in growth rates should
be applied from the date of China's accession, but the inclusion of the phrase "as appropriate" also
implies that this obligation should be implemented in a manner that corresponds to the length of time
of China's actual WTO membership during the given stage of the ATC integration process.  This is
why the United States believes it is appropriate to apply an accelerated growth rate of 25 per cent pro-
rated for the period of time when China was a Member of the WTO in Stage 2.
In view of the above, the United States contin ues to be of the view that the methodology used
is consistent with paragraph 241 of the Working Party report and that, therefore, it would not be
appropriate to make any adjustment to the methodology applied.
On this basis, the United States considers itself unable to conform with the recommendation
contained in paragraph 10 of G/TMB/R/95 and reque sts that the TMB reconsider its recommendation.
Sincerely,
(Signed)
David M. Spooner
Special Textile Negotiator
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