WORLD TRADE
ORGANIZATIONG/TMB/N/328
27 July 1998
(98-2934)
Textiles Monitoring Body Original:  English
AGREEMENT ON TEXTILES AND CLOTHING
Notification under Article 2.17
Memorandum of Understanding between Pakistan and the United States
The Textiles Monitoring Body has received from Pakistan, pursuant to paragraph 17 of
Article 2, the notification of a Memorandum of U nderstanding concluded between Pakistan and the
United States1 and is forwarding the text of this notification to WTO Members for their information.
                                                     
1 See G/TMB/R/45, paragraphs 5 to 52.G/TMB/N/328
Page 2
Government of Pakistan
Ministry of Commerce
Islamabad, 19 July 1997
The Honourable
Ambassador András SzepesiChairman
Textiles Monitoring Body
World Trade Organization
Rue de Lausanne
1211 Geneva
Dear Ambassador Szepesi,
Attached you will find a Memorandum of Understanding dated 22 March 1996 signed by
representatives of the Government of Pakistan and the Government of the United States.  The
Government of Pakistan hereby notifies this MOU to the Textiles Monitoring Body pursuant to the
provisions of Article 2.17 of the Agreement on Textiles and Clothing.  We, however, wish to clarify
that the operative paragraphs of the Memorandum of  Understanding under reference are subject to the
provisions of preamble and the said operative paragraphs are without prejudice to the rights and
obligations of Pakistan under the Agreement on Textiles and Clothing.
Yours sincerely,
(signed) S. Anjum Bashir
Deputy SecretaryG/TMB/N/328
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MEMORANDUM OF UNDERSTANDING
Representatives of the Governments of the United States and Pakistan met in Geneva,
Switzerland on 20-22 March 1996.
Without prejudice to their rights and obligations under the Uruguay Round Agreement on
Textiles and Clothing, the Governments agreed that:
1. The United States shall reduce the deductions made on 11 August 1995 to Pakistan's
category 361 quota for 1995 to the extent of and in respect to fitted sheets (346,483 nos.).
2. Accordingly, Pakistan decided to withdraw its requests dated 30 November 1995 and
4 March 1996 for the Textiles Monitoring Body review of US charges to category 361 dated
4 October 1994 and 11 August 1995.
3. A base limit for category 666 - S for 1996, before proration, will be established at
3.6 million kgs.  (In YE December 1995, this was equal to 6.9 million nos.)  A base limit for
category 666 - P , before proration, will be established at 680,000 kgs.  (In YE December 1995 this
was equal to 5.9 million nos.)  The 1996 base limit for category 361 (cotton bedsheets) will be
increased to 5,000,000 nos.  The 1996 base limit for 360 (cotton pillow cases) will be increased to
4,300,000 nos.
4. Category 666 - S and 666 - P (man-made fibre sheets and pillow cases, respectively) will have
annual limits beginning in 1996, with 6 per cent growth, 7 per cent swing, with a maximum combined
carryover and carry forward of 11 per cent.  There will be no carryover in the first agreement year,
and no carry forward in the last agreement year.  There will be annual limits on 666 - S and 666 - Pthrough 31 December 2004.  The limits for 1996 will be prorated to correspond to the number of days
remaining in 1996, beginning today, 22 March 1996.
5. This agreement also resolves matters concerni ng US rule of origin changes with respect to
bedsheet and pillow case imports from Pakistan in to the US.  The Government of Pakistan accepts
without reservation US rules of origin embodied  in Section 334 of the Uruguay Round Agreements
Act with respect to products of category 360, 361, 666 - S and 666 - P.
This agreement will enter into force upon signature.
(signed) (signed)
For the Government For the Government
of Pakistan of the United States
22 March 1996
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