RESTRICTED
WORLD TRADE G/TMB/N/162
16July1996
ORGANIZATION(96-2753)
Original: English Textiles Monitoring Body
AGREEMENT ONTEXTILES AND CLOTHING
Notification under Article 2.17
Canada
Administrative Arrangements withLesotho
TheTextiles Monitoring Bodyhasreceived anotification fromCanada pursuant toparagraph 17
ofArticle 2.TheTMB iscirculating thisnotification toWTO Members fortheirinformation.G/TMB/N/162
Page2
ThePermanent Mission ofCanada
totheUnited Nations
1,rueduPré-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,Brazil,CostaRica,Cuba,HongKong,Hungary,India,Indonesia,Korea,Lesotho1,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 withLesotho. Arrangements concluded withthe
other WTO Members mentioned above willbecirculated asseparate documents.G/TMB/N/162
Page3
Memorandum ofUnderstanding Between theGovernment ofCanada
andtheGovernment oftheKingdom ofLesotho Relating tothe
Export from Lesotho ofCertain Textile Products toCanada
Introduction
1. ThisMemorandum ofUnderstanding (MOU) setsouttheadministrative arrangements thathave
beenagreed upon between theGovernments ofCanada andLesotho, pursuant toArticle 2.17ofthe
MTN Agreement onTextiles andClothing (ATC) inorder toimplement thetextiles andclothing
restraints between Canada andLesotho tobenotified pursuant toArticle 2.1oftheATC. These
provisions willalsoapply withrespect toanyrestraint introduced byCanada onimports oftextiles
andclothing from Lesotho pursuant totheprovisions ofArticle 6oftheATC.
Implementation
2. Inaccordance withtheprovisions ofArticle 4.1oftheATC, these arrangements shall be
implemented onthebasisoftheexport control system operated bytheGovernment ofLesotho. Exports
ofthetextile products included intherestraints notified under Article 2.1oftheATC shallbecovered
byanoriginal "Export Certificate" endorsed andissued bythecompetent authorities oftheMinistry
ofTrade andIndustry ofLesotho totheeffect thatthegoods covered bytheexport certificate have
beendebited from theapplicable quantitative limit.
3. Forthepurpose ofimplementing these arrangements, thedateofexport from Lesotho shall
beusedtodetermine therestraint period inwhich anyshipments oftextile products shallbecounted.
4. TheGovernment ofLesotho shallendeavour toensure thatexports toCanada ofallrestrained
textile products arespaced outasevenly aspossible during eachrestraint period, dueaccount being
taken ofseasonal factors andofnormal channels oftrade.
5. Export certificates issued bytheGovernment ofLesotho inrespect ofrestrained 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/162
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(h) F.o.b. orc.i.f. value except fornon-commercial consignments;
(i) Certification bythecompetent authorities oftheMinistry ofTrade andIndustry that
thequantity hasbeendebited from theagreed restraint limitforexports toCanada.
6. Intheevent thatanyquantity covered byanexport certificate isnotshipped, theGovernment
ofLesotho shallnotify theGovernment ofCanada ofsuchquantity which maybecredited bythe
Government ofLesotho totheappropriate restraint limit.
7. Except asprovided forinparagraphs 8and9below (carryover/carry forward), theGovernment
ofLesotho shallrestrain itsexports toCanada ofthetextile products notified pursuant toArticle 2.1
oftheATC tothelimits notified under Article 2.1oftheATC, asmodified bytheprovisions of
Articles 2.7,2.8,2.13and2.14oftheATC. Pursuant toArticle 4.1oftheATC, itisunderstood
thattheGovernment ofCanada shallnotbeobliged toaccept shipments inexcess oftherestraint levels
notified under Article 2.1oftheATC, asmodified bytheprovisions ofArticles 2.7,2.8,2.13and
2.14oftheATC.
Carryover/carry forward
8. 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.
9. 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.
Exchange ofstatistics
10. TheGovernment ofLesotho shallprovide theGovernment ofCanada withmonthly statistical
reports relating toexports ofrestrained textile products described, licensed forexport toCanada and
debited 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 ofcarryover andcarry forward provisions andthe
quantities involved asprovided forinparagraphs 8and9above.
Thisinformation should beprovided assoonaspossible following theendofeachmonth.
11. TheGovernment ofCanada shallprovide theGovernment ofLesotho withmonthly statistical
reports relating toimport permits issued forimports originating inLesotho oftextile products listed
inAnnex I.G/TMB/N/162
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12. BothGovernmentsreservetherighttorequestadditionalstatisticsasmaybereasonablyrequired,
including statistics relating totheexport orimport ofproducts notcontained inthenotification, under
Article 2.1oftheATC, ofCanada 'srestraints onimports from Lesotho.
Re-exports
13. TheGovernment ofCanada shall, sofaraspossible, inform theGovernment ofLesotho when
imports intoCanada ofrestrained textile products aresubsequently re-exported fromCanada. Where
suchre-exports haveoriginally beendebited bytheGovernment ofLesotho fromquantitative limits,
theGovernment ofLesotho maythencredit backthequantity involved totheappropriate quantitative
limits.
Consultations
14. Pursuant toArticle 8.4oftheATC, theGovernment ofLesotho andtheGovernment ofCanada
express theirwillingness toconsult, onrequest, onanymatter arising from theimplementation or
operation oftheATC orofthisMOU oronanymatter germane thereto.
(Signed) ___________________ (Signed) _________________________
FortheGovernment of FortheGovernment ofCanada
theKingdom ofLesotho Canadian High Commission
Pretoria
12December 1994G/TMB/N/162
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ANNEX I-RESTRAINT LEVELS
LESOTHO
(A)
Agreement
Item
No.(B)
Product coverage(C)
1995
Restraint
level (NMB)(D)
Growth(E)
Swing(F)
Carryover/
carry
forward(G)
Combined
flexibility
(E)&(F)(H)
Conversion
factor
(m2/unit) Category Short description
5 5.0* Trousers, overalls and
shorts605,075 7.5% N/A 10%(5%) N/A N/A
5a 5.1-5.3-ofwhich.
Trousers, MBWGC
550,379 7.5% N/A 10%(5%) N/A N/A
*Includes alltextiles fibres.