WORLD TRADE
ORGANIZATIONG/TMB/N/370/Corr.5
1 June 2001
(01-2726)
Textiles Monitoring Body Original:  English
AGREEMENT ON TEXTILES AND CLOTHING
Notification under Articles 2.8(b) and 2.11
CANADA
Corrigendum
The Textiles Monitoring Body has received a further communication from Canada containing
corrections to the notification made pursuant to Articles 2.8(b) and 2.11.
The TMB, in accordance with Article 2.11, is circulating this notification to WTO Members.G/TMB/N/370/Corr.5
Page 2
The Permanent Mission of Canada
to the United Nations
21 May 2001
Ambassador András Szepesi
Chairman
Textiles Monitoring Body
World Trade OrganizationCentre William Rappard
154 Rue de Lausanne
1211 Geneva 21
Dear Ambassador Szepesi,
I am writing further to Mr. Ian Burney's letter of 9 March 2001
1 to correct an error regarding
restraint categories 22.1, 23.1 and 23.2 in the information annexes appended to that letter, and also to
provide a clarification on the treatment of the levels for certain group or combined restraints.
Annex 4 of Mr. Burney's letter, which depicts how the HS tariff lines notified in Canada's
third phase of integration of the ATC relate to the product categories in Canada's bilateral restraint
agreements, indicates that tariff lines 5402.20.00 and 5604.20.10.10 fall under restraint
categories 22.1 and 23.2.  As shown in Annex 3, the restraints on these tariff lines apply to one WTO
Member.  This reference to the two categories in Annexes 3 and 4 is incorrect as both tariff lines fall
under restraint category 23.1.  Consequently, Canada hereby amends Annex 3 by removing thereference to categories 22.1 and 23.2 and amends Annex 4 by also removing the references to
categories 22.1 and 23.2 and moving the above tariff lines to category 23.1 (where the restraint
applies only to the same one WTO Member).  As indi cated in Mr. Burney's letter, the restraint level
for category 23.1 will not be adjusted downward to reflect the removal of the above products from the
coverage of this restraint.
I also wish to take this opportunity to provide a clarification regarding the treatment of the
restraint level for those cases where one or more categories identified in Annex 2 of Mr. Burney's
letter fall under a group or combined restraint level.  For example, in some of Canada's bilateral
arrangements, category 7.0 (and hence categories 7.1, 7.2 and 7.3) is grouped or combined withcategory 8.0 (and hence categories 8.1, 8.2, 8.3 and 8.4) under one restraint level covering all these
products.  As a result of the third stage of integration, the products under category 7.0 and
category 8.1 will be removed from this restraint on 1 January 2002, but the remaining products under
categories 8.2, 8.3 and 8.4 will remain subject to restraint.
In all such instances where a category identified in Annex 2 falls under a broader group or
combined restraint under a bilateral arrangement,  the restraint level for these groups or combined
                                                     
1 See G/TMB/N/370/Corr.3.G/TMB/N/370/Corr.5
Page 3
restraints will not be reduced to reflect the removal from these restraint level of products in the
categories integrated fully on 1 January 2002 under the third stage of integration.  This is the same
approach as taken for products falling under the categories identified in Annex 3 of Mr. Burney's
letter, resulting in a de facto  increase in the restraint level, and hence access to the Canadian market,
for the products remaining under restraint during the last phase of the ATC's transition period.  Inother words, the same treatment will apply in those instances where specific products will be removed
from restraint under a larger compilation or aggregate restraint level maintained by Canada.
Should you or the TMB have any questions on the above, please feel free to contact me.
Yours sincerely,
(Signed)
A.R. Sandy Moroz
Counsellor
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