WORLD TRADE G/TMB/N/271/Add.1
22July1997
ORGANIZATION(97-3036)
Original: English Textiles Monitoring Body
AGREEMENT ONTEXTILES AND CLOTHING
Notification under Article 2.17
UNITED STATES
Administrative Arrangements withGuatemala
Addendum
TheTextilesMonitoringBodyhasreceivedafurthernotificationfromtheUnitedStatespursuant
toparagraph 17ofArticle 2.
TheTMB, inaccordance withparagraph 17ofArticle 2,iscirculating thisnotification to
WTO Members.G/TMB/N/271/Add.1
Page2
Executive Office ofthePresident
Office oftheUnited States Trade Representative
Geneva
18April 1997
TheHonourable
Ambassador András Szepesi
Chairman
Textiles Monitoring Body
World Trade Organization
154RuedeLausanne
1211 Geneva
Dear Ambassador Szepesi,
Irefertoyourletter of4April 1997concerning United States 'Administrative Arrangements
withGuatemala. With respect tothequestion posed inparagraph 21,itistheUnited States 'position
that,when provisions ofthebilateral agreement areinconsistent withtheATC, theprovision ofthe
ATCwillapply. Thisiswithout prejudice torecourse totheprovisions oftheATC. Thissameanswer
applies tothequestion posed inparagraph 3.2
With respect tothequestion posed inparagraph 43,thisprovision isnotdesigned todetract
from theexporting country 'sresponsibility toadminister quantitative restrictions. Thisprovision
authorizes theUnited States, incases where acategory isclose tofilling andflexibility adjustments
areavailable, toautomatically apply those adjustments.
./.
1Paragraph 2ofthatletter reads: "The TMB understands thattheadministrative arrangements apply totheproducts listed insub-
paragraph 3(D). However, thisparagraph states, interalia,thatifbothcountries agree toputnewcategories under quota, bothparties
shallamend thisparagraph oftheAgreement andtheVisaArrangement asnecessary toinclude additional categories ’.Since administrative
arrangements are,according toparagraph 17ofArticle 2oftheATC 'deemed necessary inrelation totheimplementation ofanyprovision
ofthisArticle ',istheTMB’sunderstanding correct that,without prejudice torecourse totheprovisions ofArticle 6oftheATC, thissentence,
which applied tothebilateral agreement concluded between theUnited States andGuatemala under theMFA, isnolonger applicable?"
2Paragraph 3ofthatletterreads: "With respect toparagraph 6oftheadministrative arrangements, theTMB understands thatAnnex C,
which isnotincluded inthearrangements, isthelistofproducts notified bytheUnited States pursuant toparagraph 1ofArticle 2asbeing
subject toguaranteed access levels (GALs). Inaddition, istheTMB’sunderstanding correct thatsub-paragraph 6(B)applied tothebilateral
agreement concluded between theUnited States andGuatemala under theMFA, but,without prejudice torecourse totheprovisions ofArticle 6
oftheATC, isnolonger applicable since, inaccordance withparagraph 4ofArticle 2oftheATC nonewrestrictions interms ofproducts
orMembers shallbeintroduced except under theprovisions ofthisAgreement orrelevant GATT 1994 provisions ’."
3Paragraph 4ofthatletter reads: "Explanation would alsobeappreciated astothejustification under theATC andthereasons why,
thatalthough thequantitative restrictions areadministered byGuatemala inaccordance withArticle 4oftheATC, paragraph 9(D)ofthe
administrative arrangements states, interalia,theGovernment oftheUnited States maysupply adjustments under thissection toanyspecific
limitwhenever thatadjustment appears appropriate tofacilitate theflowoftrade andthesound administration oftheAgreement ’."G/TMB/N/271/Add.1
Page3
With respect tothequestion posed inparagraph 54,circumvention often damages acountry 's
legitimate trade bymaking itimpossible toadminister effectively itsArticle 2.1quotas. Ourtwo
countries deem these circumvention provisions tobenecessary totheimplementation ofthese quotas.
Sub-paragraph 18(f) hasalsobeendeemed byourtwogovernments tobeanecessary deterrent to
circumvention. Since itsapplication would affect therestraint levels contained intheUnited States '
Article 2.1notification, itisappropriately included here.
Sincerely,
(Signed for)Ambassador RitaHayes
Chief Textile Negotiator
4Paragraph 5ofthatletter reads: "Finally, withrespect toparagraph 18,relating tocooperation intheprevention ofcircumvention,
theTMB would appreciate receiving information astohow,intheviewoftheUnited States, suchprovisions aredeemed necessary inrelation
totheimplementation ofanyprovision ofArticle 2oftheATC. Moreover, itwould appreciate explanation astohowsuchprovisions, in
particular sub-paragraph 18(F), fitwithin theprovisions oftheATC."