WORLD TRADE G/TMB/N/305
1October 1997
ORGANIZATION(97-3982)
Original: Spanish Textiles Monitoring Body
AGREEMENT ONTEXTILES AND CLOTHING
Notification under Article 2.17
GUATEMALA
Administrative Arrangements withtheUnited States
TheTextiles Monitoring Body hasreceived acommunication from Guatemala pursuant to
paragraph 17ofArticle 2.TheTMB iscirculating thisnotification toWTO Members fortheir
information.G/TMB/N/305
Page2
Permanent Mission ofGuatemala totheUnited Nations
Geneva, Switzerland
WTO/127/97 M-11
Geneva, 16April 19971
Mr.Andràs Szepesi
Chairman
Textiles Monitoring Body
World Trade Organization
Sir,
Ihavethehonour totransmit herewith aletter from theVice-Minister oftheEconomy of
Guatemala, Mr.Eduardo Sperisen-Yurt, containing details requested bytheTextiles Monitoring Body
inconnection withtheBilateral Agreement onTextiles concluded between theUnited States ofAmerica
andGuatemala.
Accept, Sir,therenewed assurances ofmyhighest consideration.
(Signed) Ambassador Federico Urruela Prado
Permanent Representative
1Thiscommunication dated 16April 1997 wasreceived on25August 1997.G/TMB/N/305
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MINISTRY OFTHE ECONOMY
GUATEMALA, C.A.
Eduardo Sperisen-Yurt
Vice-Minister
Guatemala, 15April 1997
To: Federico Urruela Prado
Permanent Representative ofGuatemala
Geneva, Switzerland
Dear Mr.Representative,
Ihavethepleasure torefertothereview currently being carried outbytheTextiles Monitoring
Body (TMB) oftheBilateral Agreement onTextiles concluded between theUnited States ofAmerica
andGuatemala.
Inthisconnection, Iwishtooutline below theposition oftheGuatemalan Government with
regard totheclarifications requested bytheTMB.
I. Weagree withtheTextiles Monitoring Body (TMB) thatsubparagraph 3(d)isnotapplicable
inaccordance withtheWTO Agreement onTextiles andClothing (ATC).2
Moreover,theVisaArrangementhastheadvantageofallowingGuatemalatomonitoritsexports
properly andalsotosome extent helps ittoprevent circumvention inthecaseoftheproducts subject
toquotas.
II. Wethink thattheTMB'sassessment iscorrect inthesense thatnewrestrictions cannot be
introduced forguaranteed access levels (GAL) except under theprovisions ofArticle 6oftheATC.
TheGALs were established through consultations covered byArticle 3oftheMFA. Nevertheless,
itshould bestressed thatanimportant advantage oftheGALs isthattheyaresubject toautomatic
increments attherequest oftheGovernment ofGuatemala.
III. Wealsoagree withtheTMB thatArticle 4.1oftheATC isveryclear thatrestrictions will
beadministeredbytheexportingMembers.However,weunderstandthattheprovisionofparagraph9(d)
refers onlyandexclusively totheflexibility ofadjustments for"carry over" and"carry forward", which
areclearly defined intheBilateral Agreement andareaimed atenabling themechanisms inquestion
tobeimplemented properly. Thus, iftheGovernment ofGuatemala doesnotuseallofoneofthe
requested adjustments theGovernment oftheUnited States willrecord onlythepartactually utilized.
Consequently, itisunderstood thatthisprovision doesnotinanywayaffect Article 4ofthe
ATC inthatinthepresent caseGuatemala, astheexporting Member, isadministering therestrictions
established under theBilateral Agreement concerned.
2SeeG/TMB/N/271 andAdd.1.G/TMB/N/305
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IV. With respect tocircumvention, inview ofthewidespread riskofillegal transhipments, the
Governments ofGuatemala andtheUnited States, inaspirit ofinternational cooperation, decided to
signinAugust 1995 anagreement aimed atpreventing these risks. Nevertheless, weagree withthe
views oftheTMB thatthelanguage ofthisAgreement could beconsidered togobeyond thecontents
ofArticle 5oftheATC.
Ishould beobliged ifyouwould transmit these clarifications totheTMB by16April.
Yours sincerely,
(Signed) Eduardo Sperisen-Yurt
Vice-Minister oftheEconomy
With Responsibility forIntegration Affairs