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GENERAL AGREEMENT ACCORD GENERAL SUR on TARIFFS and LES TARIFS DOUANIERS CONFIDENTIAL T2X.SB/336 TRADE ET LE COMMERCE 5 Aprii 1979

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GENERAL AGREEMENT ACCORD GENERAL SUR on TARIFFS and LES TARIFS DOUANIERS CONFIDENTIAL T2X.SB/336 TRADE ET LE COMMERCE 5 Aprii 1979 GENERAL AGREEMENT ACCORD GENERAL SUR ON TARIFFS AND LES TARIFS DOUANIERS CONFIDENTIAL T2X.SB/336 TRADE ET LE COMMERCE 5 Aprii 1979 Textiles Surveillance Body , Organe de surveillance des textiles ARRMGB'EFf REffiARDIIIG BiTERNATIONAL TRADE El TEXTILES Article h notification Note by the Chairman Attached hereto is a notification received from Canada of a bilateral agreement concluded under Article h between Canada and Hong Kong. ARRANGEMENT CONCERTANT LE COMMERCE INTERNATIONAL PES TEXTILES NotificatioL« n conformément a l'article k Note du Président Le Canada a fait parvenir au secretariat la notification ci-jointe relative à un accord bilateral conclu entre le Canada et Hong-kong au titre de l'article h. (Tin- ycrmancittj^fggTgn ûEggm^tti; I ^.,^tO! '-'-^ JtUssnuu permanente îut QlanaÀut tu tbcltMï^^^^ttHW—:——^;';^:;v^i autres îu*s SCatiuns "llntes i u-jri. PW. _! | _ ! f'vjv.v*'* i ' > i .>s--'- £••»• ~r;-.r .."• " j1 i ^^I'J^'i : ~-— •• " 10 k, avenue de Bu.c.3 jl^bTâvâcf-oi^ i /.! 1202 Geneva Dev. Div. ^k—yrrr; • i\jf^ . f^ch 2S.1979 C~c£ CF ^ . ~CÔn'.i.,lnnt i *OOj : Deaf Ambassador Wurth, With reference to paragraph 4 of Article 4 of the Arrangement Regarding International Trade in Textiles (hereinafter • referred to as the ITA), done at Geneva on December 20, 1973» and to the Protocol Extending the ITA, done at Geneva on December 14, 1977» I have the honour to notify the Textile Surveillance Body of the conclusion of a 3-year bilateral textile arrangement between the Government of Canada and the Government of Hong Kong. This bilateral arrangement, wa3 concluded having regard to Article 4 of ihe ITA and to the Protocol of Extension. The pro­ visions of the arrangement reflect the particular problems and circumstances in .the Canadian textile and clothing market as well as the traditional position of Hong Kong as a major supplier to that market. The arrangement came into effect on January 1, 1979» However, for a limited number of textile products which had been the subject of previous consultation and/or arrangements it was mutually agreed that there would be de facto application prior to this date. It was the view of both parties that the incorporation of the results of all consultations into one arrangement would provide the exporting signatory with the maximum degree of flexibility. The coverage of the arrangement relates to the range of products which fall within the scope of the ITA. The manner in which the product categories were developed during consultations reflects not only the relative product sensitivity with respect to Canadian production but also the desire to provide a significant degree of flexibility for Hong Kong. As a result, the product categorization of this agreement is tailored to the bilateral interests of Canada and Hong Kong and is1 not standard to other arrangements/agreements nor to the product classification of Canadian import statistics. The restraint levels agreed to by the two parties are based upon historical trading patterns. In view of the fact that the product categorization is different from the classification of H.S. Ambassador Paul WURTH ' .../2 Chairman, Textiles Surveillance Body Geneva Canadian import statistics, and since complets import statistics for 1977 were not available when discussions were held in 1977 and 1973i the agreed levels are the result of negotiations and thus reflect the interests of 'both parties. Furthermore, a range of textile products are not subject to restraint under the arrangement, but rather will be monitored through an export authorization system. Provision is made for growth in each product category. The level of growth, which was agreed between the parties based upon the relative iraDort sensitivity and export interest, ranges from ifo to 8%. , The agreement contains provisions for flexibility. With • respect to swing, there are three elements. Swing is inherent within categories where|several products have been grouped, e.g. item #L3» For clothing items there is unlimited swing from Men's, Boys', Women's and Girls' to children's and infant sizes (O-^SX) at a ratio of 3 to 5 units in the same or similar products depending on the structure of individual product categories. In addition, provision has been made for swing between categories to a maximum of 10/&. There are also provisions for c^ury-over and carry-forward ranging from V/o and 5/« respectively to 12$ and 6% depending on the sensitivity. In the majority-of cases, rates of 10$ and 5$ or 12/S and 6% apply. Finally the arrangement also contains provisions for, inter alia, consultation, equity, revision and termination. It is believed that this arrangement represents a package whose overall provisions are appropriate to the interests of both parties. The parties to this bilateral arrangement believe that it meets the requirements of the ITA as extended, and constitutes an overall liberalization of the Canadian import programme on clothing and textiles. It was concluded for the purpose of avoiding real risk of market disruption and, at the same time, ensuring the orderly development of trade in textiles. Accept, dear Ambassador Wurth, the renewed assurance of my highest consideration. R. Harry Jay Ambassador and Permanent Representative MEMORANDUM OF UNDERSTANDING BETWEEN THE GOV:-:RNMENT OF CANADA AND THE HONG KONG GOVERNMENT RELATING TO THE EXPORT FROM KONG KONG OF CERTAIN TEXTILE PRODUCTS TO CANADA MEMORANDUM OF UNDERSTANDING Introduction 1. This Memorandum of Understanding sets out the arrangements that have been agreed between the Government of Canada and the Hong Kong Government regarding the export of certain textile products from Hong Kong for import into Canada. 2. These arrangements have been made having regard to the Arrangement regarding International Trade in Textiles (hereinafter referred to as "the ITA") and in particular to Article k thereof, and to the Protocol extending the said Arrangement (L'+élô) and in particular to paragraph 5*3 thereof, which provides for the possibility of jointly agreed reasonable departures from particular elements of the ITA in particular cases. Coverage 3. These arrangements shall apply to Hong Kong's exports to Canada of the textile products set out in Annex I to this Memorandum. k. For the purposes of these arrangements, the expression "textiles" shall have the meaning ascribed to the expression in Article 12.1 of the ITA. 5. For the purposes of classifying textile products in the appropriate category, the definitions and notes set out in Annex I shall apply. 3gstraint Periods 5. Except as provided for in paragraphs 7 and 3 below, these -arrangeir-ents shall ap::ly for throe separate calendar y-^ar periods commencing on 1 January 1979 .and terr,ir:atir.£ 31 £ecerr.i.»r 1981. Should th-se o" other arrangements regarding textiles be ccitrr.ued or intro­ duced after 31 December 1931, the Government of Car.a.i:: nd the H.r.;; Korsg Government agree thai regard shall be had to par?,;raph 5*4 of the Protocol extending the ITA (I46I0)*. 7. Ir. respect of 3edsheets, as described in An-.ox I, these arra.-igeir.9nts shall curly from 11 Karen 1973 to 31 December 1978 and thereafter for'the three separate calendar year periods mentioned in paragraph 6 3bove. 3. ' Li respect of Cotton ?erry Towels, Washcloths and Sets, as described in Annex I, these arr.-.ngemei'ts shall apply from 1 January 1978 to 31 December 1978 and thereafter for the three separate calendar year periods mentioned in paragraph 6 above. 9. * Extract from I4616: '•%4 It was agreed th.: t any such departures as mentioned in nub-paragraph 3 above would be temporary and that participants concerned shall nturn in the shortest possible time to the framework of the .Arrangement". Raatraint Limita 10. Except as provided for in paragraphs 14 to 18 below, Hong Kong shall restrain its exports to Canada of the textile products described in Annex I to the limits set out therein for each of the periods specified therein. Administration 11. The Government of Canada and the Hong' Kong Government agree that these arrangements shall be implemented on the basis of the export control system operated by the Trade Industry and Customs Department of the Hong Kong Government. 12. The Government of Canada shall admit imports of the textile products described in Annex I provided such imports are covered by a copy of a Hong Kong export licence endorsed and issued by the Trade Industry and Customs Department to the effect that the imports covered by the licence have been debited to the applicable quantitative limit or export authorisation as set out in Annex I. 13. The Hong Kong Government shall endeavour to ensure that exports of all textile products, particularly men's and boys' shirts, subject to quantitative limits or the export authorisation system are spaced out as evenly as possible during each restraint period, due account being taken of seasonal factors and having regard to normal channels of trade. • Swing 1^. Subject to the sbecific limitations set out in Annex I, any quantitative limit shokn therein may be exceeded by the percentage shown in column (f) thereof provided that an equivalent amount is deducted from any other quantitative limit shown therein. 15. For the purposes of implementing the swing provisions in paragraph I**, the conversion factors shown in column (e) of Annex I shall apply. ÏLÏi» i-XLM4STi***l WW 16. Following notification to the Government of Canada of the quantities involved, portions of any quantitative liait set out in Annex I which axe not used during any restraint period say be carried over and added to the corresponding quantitative liait for the following restraint period within the higher percentage liait set cut in column (g ) of the Annex.
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