WORLD TRADE G/TMB/R/22
20January 1997
ORGANIZATION(97-0162)
Textiles Monitoring Body
REPORT OFTHE TWENTY-THIRD MEETING
1. TheTextiles Monitoring Body helditstwenty-third meeting on17to19December 1996.
2. Present atthismeeting werethefollowing members andalternates: Messrs. Berz; Kacar/Rey;
Kim; Malik; Ms.Orozco Jaramillo; Mr.Saeki; Ms.Shahin/Mr. Mukerji; Messrs. Tagliani;
Wentzel/Saint-Jacques.
3. TheTMB adopted thereport ofitstwenty-second meeting (G/TMB/R/21).
Notifications under Articles 2.6and2.7(b) oftheAgreement onTextiles andClothing (ATC)
4. TheTMB reviewed under paragraph 21ofArticle 2thenotifications made, pursuant to
paragraphs 6and 7(b) ofArticle 2,byLiechtenstein (G/TMB/N/203) and South Africa
(G/TMB/N/197/Rev.1). During thisreview theTMB noted that,inaccordance withparagraph 6of
Article 2,thevolume ofproducts integrated amounted tothefollowing percentages ofthe1990imports
oftheproducts falling under thecoverage oftheAgreement: Liechtenstein, 16.19 percent;1and
South Africa, 16percent. TheTMB alsonoted that,inaccordance withparagraph 6ofArticle 2,
theproducts integrated included products fromeachofthefourgroups: topsandyarns, fabrics, made–up
textile products andclothing.
Notifications under Article 2.17oftheATC
5. TheTMB started itsreview ofseveral administrative arrangements notified bytheEuropean
Communities pursuant toparagraph 17ofArticle 2anddecided torevert tothisreview atitsnext
meeting.
Notification under Article 3.1oftheATC
6. TheTMB reverted toitsconsideration ofthenotification made under paragraph 1ofArticle 3
byMorocco. Inthisnotification, Morocco stated that,solely forreasons ofpublic health, theimportation
ofworn clothing andother worn articles fromallsources hadbeensuspended. Thismeasure didnot
apply togiftsmade toprivate charitable institutions ortothenon-commercial public sector, andwas,
intheviewofMorocco, consistent withtheprovisions ofArticle XX(b) oftheGATT 1994. TheTMB
requested further clarification, andwasinformed thatMorocco intended tonotify thismeasure tothe
appropriate body oftheWTO. TheTMB tooknoteofthisnotification, withtheexpectation thatit
would beinformed byMorocco when thisnotification would bemade totheappropriate WTO body
(G/TMB/N/188).
1Thedataprovided refers toimports bySwitzerland andLiechtenstein, asseparate dataforLiechtenstein
arenotcollected.G/TMB/R/22
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Notification under Article 6.11oftheATC
7. TheTMB considered theissue theprovisional safeguard measures introduced byBrazil on
1June1996, pursuant toparagraph 11ofArticle 6,onimports ofproducts ofseveral textile categories
fromKorea. These measures hadbeennotified totheTextiles Monitoring Body byBrazil, inaccordance
withtheprovisions ofparagraph 11ofArticle 6,andsubsequently alsobyKorea. BothMembers had
subsequently decided toresume consultations onthismatter, andrequested theTMB todefer its
consideration, scheduled forthemeeting oftheTMB on9to11September 1996. Thematter, including
theoutcome ofsuchconsultations, hadeventually beenscheduled tobereviewed bytheTMB on17
to19December 1996. Subsequently, theTMB hadbeeninformed byKorea thatitaccepted Brazil ’s
request forapostponement ofthereview untilthenextmeeting oftheTMB “sothatBrazil mayconduct
domestic consultations onthebilateral agreement between Brazil andKorea ”.TheTMB understood,
therefore, thatanagreement onrestraints remained subject tosuchconsultations.
8. TheTMB considered andaccepted theabove request. However, bearing inmind, interalia,
theprovisions ofparagraph 11ofArticle 6,itdecided toconvey totheinterested Members itsconcern
that,incontradiction withtheseprovisions, theTMB wasstillnotinaposition toreview thesemeasures.
TheTMB,therefore,invitedrepresentativesofBrazilandKoreatoitsmeetingon13to15January1997,
when itintended toconduct anexamination ofthismatter, incasetheagreement between Brazil and
Korea onrestraints hadnotmaterialized. Inthecasewhere anagreed solution would havebeenreached,
theTMB urged these Members tonotify it,sothatitcould bereviewed bytheBody atthatmeeting.
Notification under Article 8.6oftheATC
9. Attherequest ofKorea, theTMB haddecided atitsmeeting on25and26November 1996
toconductanexamination,atitssubsequentmeetingon17to19December1996,ofsafeguardmeasures
introducedbyEcuador,referringtotheprovisionsoftheAgreementonTextilesandClothing,onimports
ofseveral textiles andclothing products from Korea andHong Kong, andtoinvite representatives
ofEcuador andthetwoWTO Members affected bythemeasures tothisexamination (G/TMB/R/21,
paragraph 9).Korea subsequently requested thatthisexamination bepostponed untilFebruary 1997,
reflecting theviewwhich hadbeenexpressed byEcuador thatmore timewasnecessary foranadequate
examination ofthecase. BothEcuador andHong Kong hadbeeninformed ofthisrequest. However,
theTMB wasconcerned that,contrary totherequirements ofparagraph 11ofArticle 6,itwasnot
inaposition toreview thisissue despite thefactthatthemeasures hadbeeninplace foralmost five
months. Ittherefore decided toinvite representatives ofEcuador, Korea andHong Kong toitsmeeting
on13to15January 1997, when itintended toconsider thismatter.
Notification under Article 8.10oftheATC
10. TheTMB received anotification from Hong Kong, pursuant toparagraph 10ofArticle 8,
thatitconsidered itselfunable toconform withtherecommendation made bytheTMB atitsmeeting
on4to6November 1996 regarding thetransitional safeguard measures applied byBrazil toimports
ofcategory 618(woven artificial filament fabric) from Hong Kong (G/TMB/R/20, paragraph 26).
Hong Kong, therefore, requested theTMB tore-consider thematter andtoissue revised
recommendations. Attherequest ofHong Kong, theTMB decided toreview thismatter in
February 1997.
Communication received from Brazil
11. TheTMB tooknoteofacommunication received from Brazil that“inaccordance with
paragraph 9ofArticle 8oftheATC, theBrazilian Government shallendeavour toaccept infullthe
recommendations oftheTMB concerning transitional safeguards applied toimports ofcategories 618G/TMB/R/22
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(woven artificial filament fabrics) and838(men’sandboys’shirts, knitted orcrocheted, ofother textile
materials)fromHongKong,containedindocumentG/TMB/9”.TheGovernmentofBrazilalso“reserved
itsrights under paragraph 12ofArticle 6oftheATC inrelation tosuchrecommendations ”.
Communication received from ElSalvador
12. TheTMB considered acommunication received from ElSalvador, related totheTMB’s
examination ofthenotifications byElSalvador andtheUnited States ofarestraint measure agreed
between thetwoMembers, pursuant toparagraph 9ofArticle 6,onimports intotheUnited States
ofcotton andman–made fibreskirts (UScategory 342/642) fromElSalvador. Inthiscommunication,
dated22November1996,ElSalvador,interalia,urgedtheTMBtobeinvitedtopresentitsobservations
onthismatter, “sothattheywillbetaken intoaccount iftheTMB decides tomake recommendations
orobservations onthiscase”.Inviewofthefactthatthisagreed restraint measure hadbeenreviewed
bytheTMB on29and30October 1996(G/TMB/R/19, paragraphs 6to12),theTMB decided toseek
clarification from ElSalvador regarding thiscommunication.
Communication received from Colombia
13. TheTMB considered under paragraph 21ofArticle 2,asdecided atitslastmeeting
(G/TMB/R/21, paragraph 5),acommunication fromColombia, onbehalf ofseveral WTO Members,
relating toparticular aspects pertaining totheimplementation byWTO Members oftheprogramme
ofintegration oftheATC (G/TMB/N/211). TheTMB, having considered theissues raised inthis
communication, addressed them inawritten reply toColombia (G/TMB/N/212).
Discussion onavailability ofinformation pertaining totheapplication ofGATT 1994 rules and
disciplines andtheimplementation ofsome other provisions oftheATC
14. TheTMB hadafurther discussion related totheavailability ofinformation pertaining tothe
application ofGATT 1994 rulesanddisciplines asdefined inArticle 7oftheATC, inthecontext of
thecomprehensive report theTMB isduetosubmit totheCouncil forTrade inGoods in1997 on
theimplementation oftheATCduring itsfirststage. Itdecided torequest theTMB secretariat toprepare
adraftremindertoWTOMembersregardingthenotificationrequirementsunderparagraph2ofArticle7
oftheATC.
15. Inthecourse ofthediscussion theTMB identified some other provisions oftheATC which
either donotcontain explicit notification requirements ordonotspecify deadlines forsubmitting
notifications, butwithrespect towhich information, ifprovided byWTO Members, could assist the
TMB indrawing-up thecomprehensive report mentioned above. TheTMB, therefore, decided toask
theTMB secretariat toprepare adraftrequest forinformation thatcould besenttoWTO Members
regarding theimplementation ofsuchprovisions.
Observations withrespect tolatenotifications
16. With respect tonotifications addressed totheTMB aftertherespective deadlines foreseen in
theATC, theTMB reiterated thatitstaking noteoflatenotifications waswithout prejudice tothelegal
status ofsuchnotifications.
Working Procedures
17. TheTMB tooknoteofthedecision oftheDispute Settlement Body on3December 1996 to
adopt theRules ofConduct fortheUnderstanding onRules andProcedures Governing theSettlement
ofDisputes (WT/DSB/RC/1), inviewofthefactthatsuchRules apply, interalia,totheChairmanG/TMB/R/22
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oftheTMB andother members oftheTMB secretariat called upon toassist theTMB informulating
recommendations, findings orobservations pursuant totheATC, aswellas,totheextent prescribed
intherelevant Section oftheRules, tomembers oftheTMB.