./.WORLD TRADE
ORGANIZATIONG/TMB/N/327
27 July 1998
(98-2981)
Textiles Monitoring Body Original:  English
AGREEMENT ON TEXTILES AND CLOTHING
Notification under Article 5
Mutually Satisfactory Solution between the United States and Pakistan
The Textiles Monitoring Body has received a notification from the United States of a
mutually satisfactory solution with Pakistan pursuant to Article 5 of the ATC.
The TMB has considered this mutually satisfactory solution1 and is forwarding the text of the
notification to WTO Members for their information.
                                                     
1 See G/TMB/R/45, paragraphs 5 to 52.G/TMB/N/327
Page 2
Executive Office of the President
Office of the United States Trade Representative
Washington, D.C.
(This notification  was faxed to the TMB on 1 October 1996)
The Honourable András Szepesi
Chairman
Textiles Monitoring Body
World Trade OrganizationGeneva, Switzerland
Dear Ambassador Szepesi,
Pursuant to Article 5 of the ATC, the United States would like to inform the Textiles
Monitoring Body of the following:
On 22 March 1996, our governments reached a mutually satisfactory solution with respect to
the transshipment charges for category 361 (cotton sheets) made by the United States on11 August 1995.  Our governments agreed to reduce the charges by 346,483 numbers in 1995.  After
subsequent discussions with Pakistan, in implementing part of this agreement, the United States has
decided to make the reduction in charges of 346,483 numbers apply to the 1996 limit, instead of the
1995 limit, for category 361 for Pakistan.  The remaining charges will continue to apply.  Our
governments also reached a mutually satisfactory solution with respect to cotton bedsheets enteringthe United States incorrectly marked as man-made fi bre.  It became clear in our mutual investigation
of this issue that the overwhelming majority of textile shipments from Pakistan to the United States
that were marked as man-made fibre were in fact cotton.
Consequently, our governments agreed to establish a limit, on man-made fibre bedsheets
(category 666 - S) and man-made fibre pillowcases (666 - P).  The annual limit for category 666 - P in
1996 is 680,000 kgs.  The annual limit for category 666 - S  in 1996 is 3.6 million kgs.   These limitswill both have 6 per cent annual growth, 7 per cent swing, with a maximum combined carryover and
carry forward of 11 per cent with no more than 6 per cent carry forward.  There will be no carryover
in the first agreement year and no carry forward in the last agreement year.  These limits will be
prorated in the first year to correspond to the 22 March -  31 December 1996 period.  The 1996 base
limit for category 361 will be increased to 5,000,000 nos.  The 1996 base limit for category 360 willbe increased to 4,300,000 nos.
Our governments also agreed that, in the cont ext of this agreement, a mutually acceptable
solution to the rules of origin change embodied in  Section 334 of the Uruguay Round Agreements Act
with respect to products in categories 360, 361, 666 - S and 666 - P had been reached.
Sincerely,
(signed) Ambassador Rita D. Hayes
Chief Textile Negotiator
Government of the United States of America
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