RESTRICTED
WORLD TRADE G/TMB/2
19September 1995
ORGANIZATION(95-2720)
Textiles Monitoring Body
THIRD AND FOURTH MEETINGS OFTHE TMB
Note bytheChairman
1. TheTextiles Monitoring Body helditsthirdmeeting on28August-1 September anditsfourth
meeting on12-15 September 1995.
2. TheTMB authorized itsChairman toprovide WTO Members withthefollowing information,
including theTMB'srecommendations, findings andobservations.
3. TheTMB received notifications from theUnited States under paragraph 10ofArticle 6of
theAgreement onTextiles andClothing ofthesafeguard actions ithadtaken onimports ofproducts
ofUScategories 434(men'sandboys'woolcoatsother thansuit-type), 435(women 'sandgirls'wool
coats) and440(woven wool shirts andblouses) from India.
4. TheTMB invited theparticipation ofIndia andtheUnited States, which sentdelegations to
Geneva topresent theirrespective casesatthethirdTMB meeting. After having heard thepresentations
oftheparties onthethreesafeguard actions, theTMB decided toresume thediscussion ofthese issues
atitssubsequent meeting.
5. Asaresult ofthisresumed discussion, theTMB reached thefollowing conclusions:
5.1 During itsreview under paragraphs 2and3ofArticle 6,ofthesafeguard action taken bythe
United States against imports ofcategory 434fromIndia, theTMB found thatserious damage, oractual
threat thereof, hadnotbeendemonstrated andrecommended thattheUnited States rescind themeasure.
5.2 During itsreview under paragraphs 2and3ofArticle 6,ofthesafeguard action taken bythe
United States against imports ofcategory 435from India, theTMB found thatserious damage, as
envisaged inthese provisions, hadnotbeendemonstrated. TheTMB could not,however, reach
consensus ontheexistence ofactual threat ofserious damage. When reviewing theimplications of
thediscussions intheTMB andtheBody'sfinding inthismatter, theparties should keepinmind the
factthattheAgreement issilent astowhether theimport restraint cancontinue tobemaintained.
5.3 During itsreview under paragraphs 2and3ofArticle 6,ofthesafeguard action taken bythe
United States against imports ofcategory 440fromIndia, theTMB found thattheactual threat ofserious
damage hadbeendemonstrated, andthat,pursuant toparagraph 4ofArticle 6,thisactual threat could
beattributed tothesharp andsubstantial increase inimports from India.
6. TheTMB wasinformed andtooknotethatanagreement hadbeen reached between the
United States andHonduras, under paragraph 9ofArticle 6,concerning safeguard measures introduced
bytheUnited States onimports ofproducts ofUScategories 435(women 'sandgirls'wool coats)
and352/652 (cotton andman-made fibreunderwear).
./.G/TMB/2
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7. TheTMB wasinformed andtooknotethat,following therecommendation ithadmade atits
second meeting (G/TMB/1), theUnited States haddecided torescind thesafeguard action ithas
introduced onimports ofproducts ofUScategory 351/651 (cotton andman-made fibrepyjamas and
other nightwear) from Honduras.
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8. Thefullreport ofthese meetings willbecirculated atalaterstage, afteritsformal adoption
bytheTMB.