RESTRICTED C0M.TEX/SB/TT6 GENERAL AGREEMENT ON 3 Aueust 1982 TARIFFS AND TRADE sPecial Distribu Textiles Surveillance Body Original: Engli, ARRANGEMENT REGARDING INTERNATIONAL TRADE IN TEXTILES Notification under Article k:h Bilateral Agreement between the United States and Pakistan The Textiles Surveillance Body has received from the United States a notification of a new bilateral agreement with Pakistan, concluded under .. , Article k of the MFA, valid for the period 1 January 1982 to 31 December 1986.— The TSB, pursuant to its procedures regarding bilateral agreements notified under Article h— , has examined the relevant documentation and is forwarding the text of the notification to participating countries for their information. —' The previous agreement with Pakistan and subsequent amendments are contained in COM.TEX/SB/300, 1+91, 5U5, 6l9, 725, 750 and 775- -7See COM.TEX/SB/35, Annex 3. COM.TEX/SB/776 Page 2 0NIT5D STATES N0T5 March 9, 1932 His Excellency Lt. General Ejaz Azim, Ambassador of Pakistan. Excellency: I have the honor to refer to the Arrangement Regarding International Trade in Textiles, with Annexes, done at Geneva on December 20, 1973, and extended by the Protocols adopted on December 14, 1977 and December 21, 1981 at Geneva (hereinafter referred to as the Arrangement). I have also the COM.TEX/SB/776 Page 3 honor to refer to discussions between representatives of the Government of the United States of America and the Government of Pakistan held in Washington, D.C. from February 16 to February 24, 1982 concerning exports of cotton textiles and textile products from Pakistan to the United States of America. As a result of those discussions and in conformity with Article 4 of the Arrangement, I have the honor to propose the following Agreement relating' to trade' in corton textiles and textile products between the Government of the United States of America and the Government of Pakistan: .1. The term of this Agreement shall be the five-year period from January 1, 1532 through December 31, 1986. Each "Agreement Year" shall be the twelve month period from January 1 to December 21 with the first Agreement Year commencing on January 1, 1982 and ending on December 31, 1582. 2. Textiles and textile products covered by this Agreement shall be classified in two groups, as follows: Grouo Definition I Yarn, fabric, made-ups and miscellaneous textile products of cotton (Categories 300-320,*360-369) II Acoarel textile products of cotton (Categories 330-3S9) COM.TEX/SB/776 Page 4 The determination of whether a textile or textile product is of cotton fiber shall be made in accordance with the terms of paragraph 10. The categories referred to in the above definitions of groups are those summarized in Annex A. 3. (a) The system of categories and the rates of conversion into square yards equivalent listed-in Annex A shall apply in implementing this Agreement. (b) ?or purposes of this Agreement, and in recognition of the patterns of trade of Pakistan with the Onited States of America, categories below are merged and treated as single categories as indicated-, with Specific Limits as set out in Annex 3: Categories Merced Designation in Agreement 347, 343 347/348 ?or purposes of computing charges to the Aggregate Limit and Specific Limits for the categories cited above, rates of conversion for individual categories set out in Annex A shall be applied. COM.TEX/SB/776 Page 5 4. Commencing with the first Agreement Year, and curing the subsequent term of the Agreement, the Government of Pakistan shall limit annual exports from Pakistan to the United States of America of cotton fiber textiles and textile products to the Aggregate Limit and Specific Limits set out in Annex 3, as such Limits may be adjusted in accordance with paragraphs 8 (swing), and 9 (carryover/carryforward). The limits set out in Annex 3 do not include any adjustments permitted under paragraphs 8 and 9. 5. (a) Within the Aggregate Limit, exports of cotton textiles and textile products in categories without Specific Limits- in Group I shall be subject to category Consultation Levels.' For categories not given Specific Limits or Designated Consultation Levels as set out in Annex C, the annual Consultation Levels shall be 1,000,000 square yards equivalent for each category in Group I. (b) In the event the Government of Pakistan wishes to export to the United States of America textile products in excess of the applicable Consultation Levels, the Government of Pakistan COM.TEX/SB/776 Page 6 shall request the higher levels and the Government of the Onited States of America shall consider the request sympathetically and shall respond promptly. If, because of problems of market disruption, as defined in Annex A of the "Arrangement"/ in the Onited States of America, in a category subject to such request, the- Onited States of America is unable to comply fully, the Government of the Onited States of America will so inform the Government of Pakistan and will supply data which form the basis for the position taken by the Government of the Onited States of America. If ., requested- by the Government of Pakistan, the Government of the Onited States of America will. consult promptly. Ontil a mutually satisfactory change in the Consultation Level of the category in question is established/ shipments shall not exceed the Consultation Level. S. (a) In the event that the Government of the Onited States of America believes that imports of cotton apparel products from Pakistan, in any category or categories not covered by Specific Limits are, due to market disruption or the threat thereof, threatening to impede the orderly development of trade between the two countries, the Government of the Onited States of America may request consultations with the Government of Pakistan with a view to easing or avoiding such COM.TEX/SB/776 Page 7 market disruption. The Government of the United States of America will provide the Government of Pakistan, at the time of the request, with a statement of reasons for its request for consultations which, in the view of. the Government of the United States demonstrates: (1) the existence or the threat of market disruption; and (2) the role of exports from Pakistan in that disruption. (b) The Government of Pakistan agrees to consult with the Government of che United States within 30 days of receipt of che request for consulrations. 3oth sides agree to make every effort to reach agreement on a mutually satisfactory resolution of the issue within 90 cays of che receipt of the request. (c) During the 90 day consultacion period, che GovemmenC cf Pakistan agrees to hold its exports to the United States in the category or categories subject to these consultations to a level no greater Chan 35 percent of the amount entered, as reported in U.S. General Imports statistics, during the first 12 of the most recent 14 months preceding the month in which the request for consultations was made. COM.TEX/SB/776 Page 8 (d) If no mutually satisfactory solution is reached during these, consultations, the Government of the United States of America may establish a Specific Limit for the category or categories concerned. The amount will not be less than the- amount, as reported in U.S.- General Imports statistics, entered during the first 12 of the most recent 14 months preceding the month in which the request for consultations was made plus 20 percent. (e) To facilitate administration, the Specific Limit established under sub-paragraph 6 (dl may be combined with the Limit established by sub-paragraph 6 (c), at the discretion of the United States. (f) Â Specific Limit established under sub-paragraph 6 (d) will be effective for the period beginning on the first day following the conclusion of the consultation period and ending on the last day of the' then current Agreement Year. If a Specific Limit is established during an Agreement Year, the Specific Limit and any available swing will be prorated to correspond to the number of months remaining in the existing Agreement Year. Pull carryforward will be available. Carryover will not be available in the first Agreement Year following the request for COM.TEX/SB/776 Page 9 consultations. For the second and each succeeding Agreement Year the Specific Limit established under sub-paragraph 6 (d) will be increased by seven percent annual growth. (g) The Government of the Onited States of America may assist the Government of Pakistan in implementing the provisions of this consultation mechanism. Exports in excess of authorized limits for any period, if allowed entry into the United States, -will be charged to the applicable Limit for the succeeding period. 7. (a) Exports from Pakistan, in excess of authorized limits in any Agreement Year may be denied entry into the Onited States. Any such shipments denied entry, aay be permitted entry into the Onited States and charged to the applicable Limit in the succeeding Agreement Tear. (b) Exports from Pakistan in excess of authorized limits in any Agreement Year will, if allowed entry into the United States during that Agreement Year, be charged to the applicable limit in the succeeding Agreement Year. (c) Any action taken pursuant to sub­ paragraph 7 (a) and 7 (b) above, will not prejudice the rights of either side regarding consultations. COM.TEX/SB/776 Page 10 3.. During any Agreement Year, and within the Aggregate Limit for inch Agreement Year, as it may be adjusted pursuant, to paragraph 9, the Specific Limits set out in Annex 3, and categories converted to Specific Limits pursuant to paragraph 6 (d), may be exceeded by not more than 10 percent if included in Group I and 7 percent ix" included in Group II (swing).