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

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 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 ?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.

17. Any quantitative limit may be increased within the lower percentage limit set out in column (g ) of Annex I by an amount advanced from the corresponding quantitative limit for the following restraint period. The quantitative limit for the following restraint period shall be reduced by an amount equal to the amount so advanced*

18. Notwithstanding the foregoing, the carryover and carryforward provisions may be used in combination only up to the higher percentage limit set out in column (g) of Annex I. Exchange of Statistics 19. The Hong Kong Government shall provide the Government of

Canada with half-monthly statistics relating to exports of the

textile products listed in Annex I licensed for export to Canada

and debited to the quantitative limits or export authorisations

issued as appropriate for each restraint period.

20. The Hong Kong Government shall provide such other

statistical data relating to exports of textile products which

are not subject either to quantitative limits or to export

authorisations as the Government of Canada may reasonably require.

21. The Government of Canada shall provide the Hong Kong

Government with quarterly statistics of total imports and of

imports from Hong Kong and from other significant suppliers in

• respect of the textile products subject to these arrangements.

• Concentration

22. If, on the baais of export data provided by the Hong

Kong Government, the Government of Canada ascertains that there is a sharp and substantial increase in the concentration of exports, other than a concentration attributable to normal seasonal factors, of particular products in any category subject to quantitative limits, the Government of Canada may request consultations in accordance with the provisions of paragraph 36 below with a view to remedying this situation. Equity

23. Should either Government consider, as a result of these arrangements, that it is being placed in an inequitable position vis-a-vis any third supplier, that

Government may request the other to consult with a view to implementing appropriate remedial measures. Re-exTX>rts

2k, The Government of Canada shall, so far as possible, inform the Hong Kong Government when imports into Canada of textile products subject to these arrangements are subsequently re-exported from Canada.

Where such re-exports have been debited by the Hong Kong

Government to quantitative limits, the Hong Kong Government may then credit the amounts involved to the appropriate quantitative limits.- Export Authorisation System

25. In view of the wall established and affective Hong

Kong system of Export Authorisation (hereinafter referred to

as an "S/A"). and the desire of both Governments to eliminate

real risks of market disruption, the following provisions shall

apply to each category of textile products in Annex I not

subject to a quantitative limit.

26. The Hong Kong Government shall require that all

exports to Canada of the textile products not subject to a

quantitative limit listed in Annex I be covered by an S/A

issued by the Trade Industry and Customs Department of the

Hong Kong Government. An S/A shall be issued only on evidence

of a firm contract for the supply of the goods involved and

shall be valid for three months from the date of issue or until

the end of the calendar year in which it is issued whichever period is the shorter.

27. Export licences to ship goods covered by an E/A shall

be issued by the Trade Industry and Customs Department on presentation of the relevant S/A within its validity. An export licence shall be valid for twenty eight days from its date of issue or until the end of the calendar year in which it is issued whichever period is the shorter. The Hong Kong Government shall not issue export licences in respect of exports to Canada subject to these provisions which are not covered by a valid E/A. 28. The Government of Canada shall admit imports of the textile products of Hong Kong origin subject to these provisions where such imports satisfy all normal conditions of entry and are accompanied by a Copy of a Hong Kong export licence endorsed and issued by the Trade Industry and Customs Department to the effect that the quantities covered by the export licence have been debited to the appropriate E/A. 29. The Hong Kong Government shall provide the Government of Canada with half-monthly statistical returns showing the quantities covered by E/A's issued to Hong Kong exporters in respect of the textile products subject to these provisions. 30. The Hong Kong Government shall notify the Government of Canada immediately upon receipt of any applications for E/A's in exceptionally large amounts or unusual concentration of applications for E/A's in the textile products concerned. In judging what constitutes exceptionally large or unusual concentrations of applications the Hong Kong Government shall have regard to recent levels of trade. The Hong Kong Government acknowledges that the provisions of paragraph 31 apply to any such notifications. 31. The Government of >'.*nnda may re^ur t the Kong Kong Government to susr?nd the issue of £/A's if, in the opinion of the Government of Canada, a limitation on further trade in the textile products subject to these provisions mey be necessary to eliminate real risk of market disruption as defined in Annex A of the I?A. Such a request shall be accompanied by a request for consultations and by a statement of the reasons and justification for the request.

32. Upon receipt of su^h a request for suspension of E/A's and for consultations, the Hong Kong Government shall suspend immediately the issue of E/A's in respect of those textile products concerned. The Hong Kong Government may, however, continue to issue export licences against valid E/A's issued before any such suspension» 33. The consultations shall be held In accordance

i::-. the provisions of paragraph 36 below. It is £reed tint any quantitative limit which may be agreed 3:.all not be lowor tnan the level of 5/A'S issued. Any limitation established under these provisions shall continue until 31 Decr.ber 1981»

The two Coverrjner.ta agree that the quantitative li-t:it shall be incr«s-sed for each subsequent restrain I p.ricd aH that the provisions of paragraphs 14 to 18 shall apply.

34. Should the two Governments not re-ic:. .%T :e*ent on the need for a limitation on further trade, anrl pending the conclusion of any consultations, Hong Kon? may re3ume the isc» of S/A'S provided exports of the textile products in question do not exceed, a* an annual rnte, the exports of such textile predicts recorded in the twelve ir.onth3 ending two months before the i-.ir.th in which the Government of Canadn. requested consultations. Revisions

35. Either Government may at any time propose revisions to the terms of these arrangements having regard to the provisions of paragraph 5,k of the Protocol extending the ITA (IA616). Consultations

36. Either Government shall have the right to request consultations with the other Government on any matter arising from the implementation or operation of these arrangements or on any matter germane thereto, ^uch consultations shall be governed by the following :

- any request for consultations shall be notified

in writing to the other Government;

- the other Government shall accept such a request

and such consultations shall be held as soon as

possible;

- the request for consultations shall be accompanied

by or followed within a reasonable period (and in

any case not later than fifteen days following

the request) by a statement setting out the

reasons and circumstances which, in the opinion

of the requesting Government, justify the submission

of such a request;

- the Governments shall enter into consultations

within one month at the latest of notification of

the request, with a view to reaching a mutually

acceptable conclusion within one month at the

latest.

37. Any consultations held under these provisions shall be approached by both Governments in a spirit of cooperation and with a desire to reconcile the differences between them. Annexes 36. The Annex to this Memorandum of Understanding shall be considered an integral part of it. Termination

39, Either Government may terminate these arrangements effective

at the end of any restraint period by written notice to the other Government,

to be ftiven at least ninety days prior to the end of any restraint period. Transitional Arrangements ko. Both Governments agree that any difficulties which may arise as a consequence of the transition from any control arrangements maintained by the Government of Canada upon imports into Canada of products subject to these arrangements to the export control system

provided for in these arrangements shall be brought immediately to

the attention of the other Government and that consultations shall

be held to resolve such difficulties.

For the Government For the Hong Kong

of Canada Government Ar.rrx 1

(b) (0) U> It) <«> i Dcntrulnt Limit Conversion Factor Control (piecoa, unleoa (square Tard per j :-.•!= Description s . Carreer/ Sjetea oUiaralee stated) unit, unleaa Othtralae eUted) ! .' t — i 1 Winter outerwear rcarraents, men's, boys', women's. Quantitative 1979: 537,000 3.50 See Foot­ 1% of which girls', children's and infants', (commonly referred Limit 1980: 5**2,370 note (3) carryforwar to as snowsuits, snow-mobile suits, ski suits, ski (QL) 1981» 5"»7,79* shall not pants and 6now-pants, and jackets & vests including be more parkas, ski-jackets, and similar jacket-type garments) • . ' : ' than W> that have an outer shell manufactured substantially • by surface area with woven fabrics'and that are lined • ' • • end designed to protect the wearer against cold, e.g. quilted linings, down or fibre filling, etc., but not plain accetate or viscose lining, wholly or mainly 1 by weight of cotton, man-made fibres or , or ' . '. . • blends thereof, but excluding: all unlined outerwear! • all coats-three-quarter length or longer, that is, • . - • — to the knee or below the knee; garments commonly known as squall jackets, windbreakers or similar jacket-type garments where there is no thermal • insulation; bona fide industrial end-use clothing, although they meet the requirements of the above description; and ski-pants and cross-country ski-suits which do not meet the above description (e.g., constructed entirely from ) - of .which adults' 1979» *»90,ooo 1980: «»9'»,900 1981: '•99.8^9 • ','•'*

• ?ootnoteé : (l) A unit comprises garments which have-been désigne 1 to be sold is a set, .e.g. matchin Î or co-ordina ed ski-jacke s and ski-pants comprising a ski suit will be- counted o 1 one unit if packed and shipped as a set. Vests are counted

(2) Swing is permitted from adults' to infants' at a 3 to 5 ratio.

(3) The parties acknowledge that swing into this item has alroady >een incorporated in tie restraint limits set 01 t in Column (d). M . »•' | 1 ^ C») Children's and infants' are eiiei 0 to 6X 1 I (a) (b) (0) (d) (e) (f) <8> Reotrulnt Limit Conversion Factor Description (plecaa, unleoa (square vard per I tea Control Swing Carryover/ 1 Systea othervlas stated) Unit, unless otherwise stated) Carryforward

2 Structured suits and blazers, men's and boys', wholl; QL 1979: *•<), 050 J».50 See 15b of whicJ or mainly by weight of cotton, man-made fibres or 1980: three elements or equivalent: •> (i) lining; (ii) shoulder padding; and (iii) front stiffening

Footnotes: (1) The~partiea acknowledge that swing into this item has already been incorporated in the restraint limits set out in Column (d). (2) A unit is either a jacket or a suit. A suit is a two - or three -. piece garment consisting of matching or co-ordinated jacket/pants or jacket/vest/pants packed and shipped together

1

• Ï

1' ' ——^^——————__ _ . t A-.r.ex

U) (0) (o) (d) (e) (f) Restraint Limtt Conversion Taetor I tea (pieces, unleoo (oquare yard per . Description Control Swing Carryover/ Sys tea otherwise stated) unit, unless Nunber Carryforward otherwise stated)

Shirts with tailored collars, men'a and boya', QL 1979» 2,900,000 2.10 Sea IS* of wholly dr mainly by weight of cotton, man-made 1980: 2,929,000 Footnote (2 i which fibres or wool, or blends thereof, knitted or woven, 1981: 2,958,290 carryfor­ being garments covering the upper part of the body ward' shall normally worn next to the ski,n or directly over not be moije underwear and with a full or partial front than Y&> opening which may include a zipper. Included ore all men's and boys' shirts meeting this description whether exported separately or as part of a set;

Footnotes: ^1) JL "tailored^ollar^' consista «f one-or more pieces of material which are cut and aewn or cut and fused and designed with two '• • , pointed or rounded ends. *

(2) The parties acknowledge-that swing into this item has already been incorporated . in the restraint.limits set out in • Column (d). t.nr.et 1

(a) (b) (0) (d) (e) (f) Hcntratnt Limit Conversion Fo

1.70 See 15» of whicl »t Blouses and ahirts, women's and girls', wholly or QL 1979! 6,818,100 mainly by weight of cotton, man-made fibres or wool, 1980: 6,95^,^62 Footnoted) carryfor­ or blends thereof, knitted or woven, being garments 1981: 7,093,551 ward shall with complete or partial front or back opening not be mor< covering the upper part of the body, excluding than >a» underwear, jackets, T-shirts,'sweatshirts, and sweaters. Footnote: d) 'The parties acknowledge that 6wing into this item has already been incorporated in the restraint limits set out in Column (d).

QL 1979! 6,762,100 1.^0 See 1# of whicl 5 Sweaters,' pullovers, cardikans, (including knitted ponchos), men's, boys', women's, girls', children's 1980: 6,829,721 Footnote (2) carryfor­ and infants', wholly or mainly by weight of cotton, 1981: . 6,898,018 ward shall man-made fibres or wool, or blends thereof, being not be nor knitted garments covering the upper part of the than Of* body of construction coarser than 19 cut i.e. less than 19 vertical stitches per inch. Included are such items with co-ordinating or matching accessories, e.g. hats, scarves, gloves, mittens, booties etc. A garment-in this item when shipped with such co-ordi­ nating or matching accessories will be considered a set and counted as one unit. " *< i - of which men's and boys' wear 1979! 1,000,000 1980i 1,010,000 198U 1,020,100 Footnotes: (1) Swing is permitted from adults' to infants' at a 3 to 5 ratio. (2) The parties acknowledge that swing into this . item has already been incorporated in the restraint limits set out in column (d).

• • (a) (b) (e) (d) (e) it) Rentraint Limit Conversion Factor Itea Description Control (plecos, unleoo (cquare Yard per Sulnc Carryover/ Kuaber Sjatea othorwia» stated) unit, unless otherwise stated) Carryforward

Shirts, men's and boys'., other than with tailored QL 1979 : *»75,000 2.10 5* 10% of which collars,, including full-fashioned collars, wholly 1980 : '•89,250 carryforward or mainly by weight of cotton, man-made fibres 1981 2 503,928 shall not be or wool, or blends thereof. A full-fashioned collar more than 5% consists of 1 piece knitted to shape collar. For a full description of "shirts" see.description for Item 3 above.

Footnote:, ...

(1) The restraint limits in Column (d) may not be increased by more than 11# by the combined use of swing, carryover and carryforward Ann» 1 |

(») (b) (c) (d) (a) it) Rcnlruint Liait Conversion Factor ItîQ Description Control (pieces, unlcos (square yard per S.lnj Cyatea otharaiaa u to toil) unit, unless Carryover/ otherwise atated) Carryforward

-shirts and sweatshirts^ men's, boys', women's and Qt 1979 J 3,000,000 1.70 5* 10* of girls', wholly or mainly by weight of cotton, man-made 1980 . 3,090,000 which cariJy fibres or wool, or blends thereof. T-shirts are 1981 1 3i182,700 forward. knitted garments without front opening covering the shall not upper part of the body of construction 19 cut or be more finer, i.e., 19 or more vertical stitches par inch. than 5* Sweatshirts are garments, at least one side of which is brushed or fleeced, covering the upper part of the body. Sweaters are not included. - of which sweatshirts 1979 1 750,000 1980 t 772,500 1981 1 795,675 Footnotes» (l) The definitions of T-shirts and sweatshirts for men and boys are subject to the overriding definitions of men's and boys' shirts with tailored or full-fa6hioned collars. i; (2) The restraint limits in column (d) may not be increased by mora than 11# by the combined use of -swine, carryover and carryforward.

(3) Swing into this Item in excess of-Footnote (2) ia permitted from Item6 3, h or 6 at a one to one ratioa

•. c ' A-.-ç» ^

(.) • (e) (d) (e) It) (£) ' I <•> R«*tr»tnt Ltnlt Conversion Tac tor Itea Control '• (pltce», «nlcoo (oquaro yard p«r . Description Carryover/ S^sï.r t/aUa othimla* otntid) unit, unit»* Sting 1 CurjSortart othtrwlot aUtid)

8 Shirts, blouses, T-shirts and sweatshirts, children's • '- QL ;.'." • '1979 « 535,000 1.**0 5* 10,4 of i and infants', wholly or mainly by weight of cotton, 1980 1 567,100 which nan-made fibres or wool, or blends thereof» 1981 « -601,126 carry fcr*ait Definitions for these products are. as in Items (3)» " ' •• .' 6hall not CO, (6) and (7) aboye. . . be more than 5*' Footnotes: • • •'.-.». •'•• •..'. (1) Children's and infants• ••garments are sizes 0.- 3* • . > * . i i (2) The restraint limits in column (d).may not be - •. i • . '•'• * increased by more than ^11$. by. the- combined use : of 6wing, carryover.and carryforward. '.-.• • •_'• .• • O) Swing into'this Item, in excess of .Footnote* (2) is .". -permitted from Items.3« 4, 6* or 7 at a three to ; : '•' flT»'ratio •••..'•'••'.•• ' . .' .\....'..'.. ••; :*• < - • • • '. » v. : ••. .•••>'• ; .v . ••-• • ;; '•'*• ..J \ ' . X • .

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• •• ••*"•».• . • - . ; . . •••..• » . • - • • • •'•'.'•

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•. • '.. * • ••..•.•.•'.'. • • • •. _ •. I ,« v . L _ , Annex 1 (a) (b) (0) (d) in (s) i Bentmlnt Limit Conversion Factor (plccoa, unlcnn (square yard per | lies . Description Contrai Suing Carryover/ System otheraloe otntml) unit, uni«to Cirrjforwrd «taenia* atsted)

1036 of whici 9 Trousers, slacks and jeans, men's and boys', wholly .: QL 1979» 3,000,000 1.90 or mainly by weight of cotton, man-made fibres, or 1980» 3,060,000 carryforwan wool or blends thereof, being garments which do not 1981» 3,121,200 r shall not extend above the waist but extond to tho knee or be more thai below. Included are jodhpurs, knickers, footless 5* tights, and gauchos. • .'.-.• 1, . - of which wool . 1979» 150,000 Footnotea: i 198oi 153,000 198I1 . 156,060 (1) Men'a and boys' garments in this Item manufactured of fabric containing 5# • or more by weight of wool or hair are considered to be woollen garments» (2) The restraint limits in column (d) may not be increased by more than Hie by the combined use of swing, carryover and carryforward.

10 Trousers, slacks and leans, women's and girls' . QL-V 19791 907.000.' .'•': '1.70 : & 10* of whicl wholly or mainly by weight of cotton, man-made 19Ô0» • 9^3.280 carryforwan fibres or wool, or blends thereof. 19811 981,011 shall' not b Definitions f,or these products are as in Item •ore than (9) above. Footnote 1 (l) The restraint limits in column (d) may nût be increased by more than11# by the combined use of si-ing, carryover and carryforward. • . • . ••'.''

•!u •

•

.'W' 'N Anncv 1

(a) (b) (c) (d) (e) (r) (g) Ilcstraint Limit Convernlon Factor Description Control (pieces, unlerca (square yard par Spates otherwise atatad) unit, unlaaa Swing Carryover/ otherwise stated) Carryforward

11 Overalls and coveralls, men's.boys. women's and girls', QL 1979 '•OO.OOO 3.50 5* 103» of whicl i wholly or mainly by weight of cotton, man-made fibres 1980 ^.OOO carryforwarc or wool, or blends thereof, being one-piece garments, 1981 1*9. WO shall not be as either pants or shorts but extending above the more than 5? waist in the form of a bib (or permanently affixed straps) or other structure which partially or fully cover the upper part of the body. One-piece jumpsuits are included. •

Footnote : (1) The restraint limits in Column (d) may not be increased by 'more than 11& by the combined use of swing,carryover and 'carryforward. U) (b) (o) (d) iti <«> Restraint Limit Conversion Factor Control (plecaa, unleao (square yard per Description • »lng Carryover/ System othoralso ototad) unit, unless Carry forward otherwise atated)

I 12 Dresses and skirts, women'6 and girls', wholly or QL 1979 : 1,000,000 3.20 5* 1036 of whic£ rair.ly by weight of cotton, man-made fibres, or 1980 : 1,060,000 carryforward wool, or blends thereof. Dresses are one-piece 1981 : 1,123,600 shall not be ; garments extending above the waist, including jumpers, more than 5 » evening gowns, dusters, house dresses and caftans (other than slcepwear). Skirts are one-piece garments not extending above the waist including golf ekorts, kilts (including men's and boys') and dulottes.

Footnote (1) The restraint limits in Column (d) may not be increased by more than 11# by the combined use of swing, carryover and carryforward.

I ' Annex 1

(a) (•) (o) (d> (e) (r) Ca> I i Rcotrotnt Liait Converaion Factor (plecoa, unleoo (square yard per I tea Deccription Control S.lng C.rryo»er/ Systea othor>loo atatad) unit, unleaa «timber Carryforward otheralaa stated) M i! 13 Suits, women's and girls' co-ordinates and outerwear qL 1979 » 600,000 lr.00 10# of which sets, including athletic sets or suits, men's, boys' 1980 t 636,000 carryforward women's and girls', wholly or mainly by weight of 1981 t 67M60 shall not be cotton, can-made fibres or wool, or blends thereof. more than Suits are carncnts comprising two or more matched or 5* ! co-ordinated pieces, covering both the upper and lower 1 parts of the body, packed and shipped as a set. Co-ordinates include : coat and dreGs sets, blouse 1 and pant or skirt cotp, shirt and 6kirt oeto,cabana sets, beach pyjamas, lounging pyjamas, short sets, 1 and beachwear. Athletic sets or Buits are garments normally comprising two or more matched or - cc^-ordihated pieces covering both the lower and upper parts of the body, packed and shipped as a Bet, normally worn for participation in athletic activities and not covered by any other definition in these ar­ • rangements, including leotards covering the trunk of l the body, judo sets, track suits, jogging suits, « ' '• ' .'" cross country ski-suits (subject to the description .-• in Item 1).

Footnote : . .

(l) The restraint limits in column (d) may not bo increased by more than 1.1?» by the combine'd use . of swirf;, carryover and carryforward. .

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• I !" Anno* 1 '

U) (b)

l«r Children'o and infants' wear, wholly or mainly by QL 1979 » 820,000 1.50 5* 10# of whic weight of cotton, man-made fibres or wool, or 1980 i 869,200 carryforward blends thereof:- 1981 1 921,352 shall not trousers (as defined in Item 9)} be more shorts (as defined in Item 16); than 5# overalls and coveralls (as defined in Item 11)| dresses and skirts (as defined in Item 12)j suits, co-ordinates and outerwear oets (as defined in Item 13>; pyjamas and sleepwear (as defined in Item 19)I bathrobes and dressing gowns (as'defined in Item 23) - of which trousers, slacks, jeans, ehorta, 1979 I'250,000 overalls and coveralls. • '" 1980 I 265,000 1981 I 280,900 Also included are : children's and infanta'garments not meeting any of the description relating to children's and infants' wear contained elsewhero in these arrangements,including sunsuita.chrintening •• sets, pran oets, creepers, rompers, crawlera, sets, simpers and blanket sleepers whero the legs of the garments extend to completely encase tho feet. ;

Footnc^ea:

(1) Oildren's and infanta' garments are'eizea 6 - 6X

(2) ne restraint limits in column (d) may not bo ncreased by more than 11* by the combined uoe of swing, carryover and carryforward. (3"i Swing into this Item in excess of Footnote. (2) is perraittedïr,pm?tems (9)^1û)i (11 ), (12), (13 :i6), (17), ("19) and (23) at a ratio-of 3 to $. Anne» \

(a) (b) (o) (d) (•) it) Rentrolnt Limit Conversion Factor (ptceoa, unleoo I'.ea Description Control (square yard per Swl.j Corryover/ Syotea otherwise etoted) unit, unices Carryforeard otherwise stated)

10» of which 15 Underwear.men's, boys', women's, girls', children's QL 1979s 6,091,000 0.90 5* i i carryforward and infants', wholly or mainly byweight of cotton, 1980: 6,33 ».6 «0 shall not be man-made fibres or wool, or blends thereof. In­ 1981s 6,588,026 more than 59 cluded are slips, bloomers and diapers of woven or knitted fabrics.

Footnotes: (l) . In the case of underwear sets, each piece is to be counted separately.

(2h The^restraint^imits in-Column (dLjnay not be Increased by more 'than 115»" by the combined use of swing, carryover and carryforward.

(3) Swing is permitted from adults' to infants' at a ratio of 3 to 5»- Anne» 1

(a) (b) (c) (d) (e) (f) («) Restraint Limit Conversion Factor Description Control (plecos, unless (oquare yard per Seing Carryover/ I System othomlse stated) unit, unless Carry forward othanrlse stated)

S:iort6, men's, boys', women's and girla', wholly or 1979 J *i00,000. 16 ."• * ' ..•'.". 1-25 ;. ' 7$ 11$ of which tr.ainly by weight of cotton, man-made fibres or wool, 1980 l '»2'»,000 . carryforwan or blends thereof, being garments similar to trousera 1981 1 w.9,Mo shall not as defined in Items (9) and (10) but not extending to be more thai the knee. • - 6$ footnote : (l) The restraint limita in column (d) may not bo increased by more than 12$ by the combined U6a of swing, carryover and carryforward.

17" Jnstructured suits and blazers^ men's and boys', wholly • ^ 1979 » *»00,000 4.50 7% 11$ of whicli ar mainly by weight of cotton, man-made fibres-or wool, 1980 1 ^2^,000 carryforwari L ir blends thereof,- being suits and blazers which do not " 1981 1 ^9,^0 shall not :ontain the following three elements or equivalent 1 be more thai. !i) lining; 6$ !ii) shoulder padding; and •.•'., [iii)front stiffening. •ootnote : • [1) The restraint limits in column (d) may not be increased by mora than 12$ by the combined use of swing, carryover and carryforward. !»

• '• ... (d) (.) (r) RentrolntIP Limi"t Converolon Tac tor (plccoa, unlcoo (oqu.tr* vord per String Carryover/ olhorola* otot.d) unit, units» Carry Torxard othanlao aUted)

18 Jackets, professional and shop coats, men's, boys', QL 1979 s 678,000 3.50 7* 115o of whicl vorccn'e, girls', children's and infants', wholly or 1980 J 718,680 carryforward mainly by weight of cotton, man-made.fibros, or wool, 1981 I 761|800 shall not be cr blends thereof. more than 6? Jackets aro outerwear garments covering the upper part of the body not extending to the'kneo,including woven ponchos, veet6,boleros, but excluding garments covered by Items <1>, (2), (3), W, <5>, (7) and (22). Professional and shop coats aro one-piece garments including barber coats, clinical coats, medical coats, laboratory coats, and surgical gowns. Footnotej: . . (1) The' restraint limits In- column (d) may not bo increased by more than 12# by tho combined use of swing,- carryover and carryforward. (2) Swing Is permitted from adults' to infants' at '. : a ratio of j to 5» •; •

1 A-.T-.CX 1

(b) (e) (d) (a) (f) Restraint Limit Conversion Factor lies Description Control (plecaa, unicoo (square yard per Sting Carryover/ System otharala* ututad) unit, unless Carryforward otharala* stated)

Pyjamas und sleepwear, men's, boys', women's and girls' 1979.» 2'n.ooo 3.i»o 7* 11ÎÉ of whicl 19 . ."• & wholly or raainly by weight of cotton, mon-nade -fibres 1980 1 255, ^o carryforward or wool, or blends thereof, being garments normally 1981 1. 270,788 shall not be worn for sleeping. more than 6? Footnote : (l) The restraint limita in column (d)'may not,, be increased by more than 12/6* by the combined usa of swing, carryover and carryforward.

(a) (b) (o) (d) ^ (e) (r) (6> Rentroint Limit Conversion Factor Control (pieces, unlets (square yard per Description Seing Carryover/ Systea otherwise stated) unit, unless otherwise stated) Carry f oreard

20 Foundation garments, men's, boys', women's and girls', QL 1979 » "680,000 0.30 7* 1156 of which wholly or. mainly by weight of cotton, man-made fibres 1980 : 720,800 carryforward or wool, or blends thereof. Included are : 1981 : 76i», C*8 shall not be brassieres, girdles, corselettes, corsets and panty more than 6% girdles. Footnote : (l) The restraint limits in•column (d) may not be increased by more than M3& by the combined use of awing, carryover and carryforward. Ar.^v 1 j

(») (b) (d) (a) u> t*> Hcntralnt Limit Conversion factor I ta a . Description (plecaa, unlcon (cquara yard per Suing Carryover/ Uuc.ar Otharalaa ototad) unit, uni«SB Carryforward Otharals* aUtad)

21 Sv/inv/ear, men* a, boys', women's and girls', children'a Qt 1979 » 727,000 1.50 7* 1156 of which and infants', wholly or mainly by weight of cotton, 1980 1 770,620 . I • carryforwarc man-made fibre6 or wool, or blends thereof, being . 1981 1 .' 816,857 shall not be garments normally worn for swiir.ming and bathing. more than 6'A Included are bathing .trunks and bathing suits. Footnotes: ..-.•.:• -4' (l) . The restraint limita in column(d) may not be increased by more than 123& by the combined use of 1 . swing, carryover and carryforward. 1 (2). Garments fitting this description which consist of two (or more) pieces must be matched or co­ ordinated, and packed and shippod ao a unit, otherwise they are classified under the appropriai Itéra elsewhore in this Agreement as individual garments. Co-ordinated or matched sets comprising garcents in addition to those described as meeting the criteria of this Item,e.g. beachwear sots, are classified as sets and co-ordinates in Item V

(3) Swing is permitted from adults' to infants' at a ratio of 3 to 5.

1

1 1 £2Σ3" 1* J

(o) (d) (0) (r) Restreint Limit Conversion Factor (cquar* yrd per Control (pieco», unleoo Swing Carryover/ unit, unless Syate* othorais* atatod) Carryforward othorais* atatod)

12* of 22 Overcoats, topcoats and rainwear, men's, boys', wome s QL 1979: 170,000 *K50 10* and girls', children's and infants', wholly or 1980: 181,900 which i mainly by weight of cotton, man-made fibres or wool, 1981: 19 »,633 carryforward or blends thereof. , shall not b Overcoats and topcoats are outerwear garments more than extending to the knee or below excluding 6% rainwear-. Rainwear are garments of coated, impregnated or treated fabrics normally worn to protect against rain (including rainsuits, sets, capes and ponchos). of which overcoats and t;opcoats 1979? 95,000 . ~ • 1980: 101,650 1981: 108,766

Footnotes: (1.) The restraint limits in Column (d) may not • be increased by more than 15% by the com­ • bined use of swing, carryover and carryforward.

(2) BWing is permitted from adults' to infants' at a ratio of 3 to 5. . .

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1 ' I 1 I

(b) (o) (d) (.) (f) (.) Rentralnt Limit Conversion Factor I tea Description ControX (pieces, unleoa (square yard per S.int Carryover/ System otherwise stated) unit, unless Carryforward Kuuber otherwise stated)

'•9,000 '».00 10$ 12$ of whibh 23 Bathrobes, dressing gowns and housecoata. men'a, boya', QL 1979 : women's and girls', wholly or mainly by weight of cotttn 1980 : 52,920 carryforward man-made fibres or wool, or blends thereof, being 1981 t 57,15*1 shall not be garments other than sleepwear normally worn in more than &% privacy, including bed jackets and negligees. Footnote (1) The restraint limits in column (d) may not be increased by more than 15$ by the combined use of swing, carryover and carryforward.

J. Xn/im 1

(a) (b) (c) (d) (•> (f) (!) Rentralnt LlmU Convcrolon Factor I tea Control (plccos, unleoa (cqusre yard per . Description Swinj Carryover/ Kunber Sjaten othemlse stated) unit, unless otherwise stated) Carryforward

24 Work gloves, wholly or mainly of textile fabrios, QL 1979: 830,000 doz.pr 3.50 eq.yd., 5*. IO5. of which wholly or mainly by weight of cotton, man-made fibres 1980i 879,800 doz.pr doz.pr see Footnote carryforward or blends' thereof, whether or not impregnated or 198If 932,588 doz.pr (1) shall not be coated. Included are such gloves with a leather more than component. % Footnote: (l) 155 swing from the apparel items has been incorporated into the restraint limits in Cplumn (d)j 9# represents the swing margin still available between this Item and Items 25 and 26.

25 Badsheeta of woven fabrics wholly or mainly by weight QL 1978l 583,890 6.20 105* of of cotton"or man-made fibre', or blends thereof. (11 March to 31 see Footnote which Included are flannelette sheets and/or blankets. Deoember 1978) carryforward Badsheets can be flat or fitted for all bed sizes. 1979» 720,000 shall not be 1980: 741,600 more than 53» Footnote: 1981: 763,848 (l) . 15» swing from the apparel items has been incorporated into the restraint limits in Column(d)j 5# represents the swing margin still - available between this Item and Items 2S\ and 26.

I.50 sq.yd. 5* 1$ of 26 Cotton terry towels, waaholothe or sets, of fabrics QL 1978 446,254 lb. lb. See Footnot which woven on a terry loom using single or plied cotton '1979 473,029 lb. carryforwaijd 1980 496,680 lb. (1) (or blends thereof) yarns with loop on one or shall not 1981 521,514 lb. both sides covering the entire surface in either be more plain or patterned Weave, whether greige, bleached, than % dyed or printed, including tea, hand, beach and bath towels and bath sheets. Footnote: (l) 136 swing f.-om the apparel items has been incorporated into the restraint limits in Column (d)-. 59» represents the swing margin still available 1 etween this Item and Items 2*t and 25. A-.-.ç» 1 I

(a) (b) (.) U) (.) Bcatriilnt Unit Conversion Factor Itea . Description Control (piece*, unleoa (ci|uare jard per • s.11.3 Carryover/ N'uiïer 1 Syote* •theral.e stated) unit, unies, Carryforward otherwise stated)

* NA *KA * MA 27 Cotton, and polyester/cotton Export •... : • NA authoriaatioi - Cotton yarn comprises all yarns consisting of . 10OJÊ cotton fibres, either combed or carded, in a utate ready for further processing.

— Polyester yarn comprises all yarns consisting . • '' of 1ÛÛJÉ polyester fibres, or filaments. .' '"••''. • •' •.

• - Polyester/cotton yarn comprises all yarns •' '. - consisting of blended polyester and cotton * ;. • '» .' fibres. - Footnote .*- • • • ...... , . • •. , • • , - - _ (•() The Governmeat df Canada undertakes not o invoke the provioiona of paragraph 31 of these arrangements in respect of this Item at loaat until the level of «port authoriasatiooflCE/A's) issued to the Hong -' Kong"Government exoeodo 250,000 pounds. "•' .. •j_- ... ; ;

* Hot Ipplicable '-_. ... ,. ; • ' ..'

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•'•'•'•'• L jj • • y.' r-r--. 1 "1 (a) (b) w (c) (d) A (s) (t) Restreint Limit Conversion Tactor îtea . Description Control (pieces, unleoa (otjuare yard per unit, unless Salng Carryover/ Xu=ber 1 Systea other.lse stated) Carryforward otherwise stated)

28 Fabrics, wholly or mainly by weight of cotton . EA NA NA NA NA '- Duck and allied fabrics, including awning i fabric, tent cloth and * - , and warp including • il , and cord fabric • .'• i - Print cloth and sheeting including , .• '. , ,, , and osnaburg. :•'••••' .•-• - napped fabric including ibilliard oloth '•' ! • : • - -blanket cioth and flannelette. k • • '1, ." - and . ' . i - Pile fabric, broadwoven, n.e.s. including • • fabric, , ^ and ' — •" ' • flocked fabrics. • • • i ' ••

- Broadwoven fabric, n.e.s. . ". . • .' ••'••• . 1 Polyester/cotton broadwoven fabric of yarns made from blends of cotton and polyester fibres, where :••'..•• '•.'':'• " ' ' • polyester fibres represent 5056 or more by weight. • ' '• "'• '•. • •

tfylon broadwoven fabric in which fibres aocoun ; • •• for 505k' or more by weight or 50# or more by thread • ' ' .' • • count. •'. ' Polyester filament broadwoven fabrics,.'are fabrics • * * • in wr -ch the warp is. composed of polyester filament, flat jr'texturod yarn. £.9£?:JV/''.e: Thfi ^ovftrnm^nt of ^«n»d« undertakes not to invoke the provision of paragraph J1 ofthesi ' arrangements in respect of this Item, at lens : • ' -. until the level of export authorisations(Iy'A o) * issued by the Hong Kong Government exceeds 7 ,500,000 square yards in aggregate; 5,200,000 square rards in the case of cotton denim and cotton cordu -oy ' 1 combined; 75,000 square yards in the co60 of nylon broadwoven fabric; or 385,000 square yards i i the »' •.• U--« ease of polyester filament - oadwvew—fabric Anr.cx 1

(a) (b) (0) U) (a) It) (g) Rcntralnt Unit Convcralon Factor It«3 . Deacriptlou Control (plecoa, unlcoa (oquaro jord per Swing Carryover/ Syotea otharnie* atated) Unit, unlasa Car 17 forward otharalaa aUttd)

29 Fillowcases, woven, wholly or mainly by weight of £A NA NA NA NA cotton, aan-raade fibres, or blends thereof. Footnote . (l) : The Government of Canada undertakes not to ^ invoke the.provision of paragraph 31 of:the* e arrangements ~ in respect of this Item, I at least until the level of export outhorisationsCt/A*a) issued by the Hong Kong Government "exceeds 100,000 pieces.

'I NA . NA' NA 3Q Towels, other^ than cotton terry towels, wholly or EA '.• NA ••', ' • mainly by.jjeight .of cotton.. Included are dish, buck' and towels. ,

rootnotç. The Government of Canada undertakes not. to • invoke the provision of paragraph 31 of thee .*. arrangements " in respect of this Item, • •' '• at least until the level of export • au;horisation6(E/A'a) issued by the Hong . Koig Government exceeds 1,000,000 pounds.

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