WORLD TRADE G/TMB/N/199
29November 1996
ORGANIZATION(96-5047)
Original: Spanish Textiles Monitoring Body
AGREEMENT ONTEXTILES AND CLOTHING
Notification under Article 6.9
Memorandum ofUnderstanding between theUnited States andElSalvador
Cotton andman-made fibreskirts
(UScategory 342/642)
TheTextiles Monitoring Body hasreceived from ElSalvador, pursuant toparagraph 9of
Article6,thenotificationofaMemorandumofUnderstandingbetweentheUnitedStatesandElSalvador1
andisforwarding thetextofthisnotification toWTO Members fortheirinformation.
1SeealsoG/TMB/R/19, paragraphs 6to12.G/TMB/N/199
Page2
Permanent Mission ofElSalvador
totheUnited Nations
andOther International Organizations
atGeneva
BO44-96 Geneva, 22July1996
Dear Ambassador Szepesi,
Iwishtoinform youthaton18JulytheGovernment ofElSalvador andtheGovernment of
theUnited States ofAmerica signed theattached Memorandum ofUnderstanding applicable to
categories 342/642.
Yours sincerely,
(Signed) Alexander A.Kravetz
Ambassador
Permanent Representative
Ambassador András Szepesi
Chairman
Textiles Monitoring Body (TMB)
World Trade Organization
GenevaG/TMB/N/199
Page3
MEMORANDUM OFUNDERSTANDING BETWEEN THE GOVERNMENTS OF
THE UNITED STATES OFAMERICA AND ELSALVADOR
Representatives oftheGovernments oftheUnited States ofAmerica andElSalvador metin
Washington, D.C. on30-31 Mayattherequest oftheUnited States forconsultations toestablish a
levelonexports ofCategory 342/642 (Cotton andMan-made Fibre Skirts) from ElSalvador tothe
United States, pursuant toArticle 6oftheAgreement onTextiles andClothing. Asaresult ofthese
andsubsequent discussions, theyagreed tothefollowing arrangement forCategory 342/642:
Category Period Transitional
LimitSpecific
LimitGuaranteed
Access Level
342/642 29March 1996-
31December 1996500,000 dz.
1January 1997-
31December 1997337,500 dz. 400,000 dz.
1January 1998-
31December 1998357,750 dz. 400,000 dz.
1January 1999-
28March 1999379,215* dz. 400,000* dz.
*Tobeprorated forperiod ofcoverage.
Inaddition, theyagreed thatatsuchtimeastheCaribbean Basin Trade Security Act,orany
other comparable actthatprovides forquota-free treatment forparticular goods fromElSalvador that
satisfy certain rulesoforigin, isenacted intolawandtakes effect intheUnited States andElSalvador
receives benefits ofthatact,anappropriate adjustment willbemade tothespecific limit for
Category 342/642, pursuant totheWTO Agreement onTextiles andClothing, interalia,Article 4,
duetothefactthatsuchlegislation willresult inachange tosuchtrade. Bothparties agree tohold
consultations within 180daysofthedateonwhich ElSalvador receives suchbenefits, andagree to
reduce thespecific limitforCategory 342/642 contained inthisMemorandum ofUnderstanding by
theamount ofspecific limittrade thathasbecome quota-free asaresult ofsuchlegislation.
Theprovisions ofthisMemorandum ofUnderstanding shallbeapplied upon signature until
anagreement iseffected byanexchange ofDiplomatic Notes.
(Signed) __________________ (Signed) ______________________
FortheGovernment of FortheGovernment of
ElSalvador theUnited States ofAmerica
18July1996