WORLD TRADE G/TMB/N/248
23May1997
ORGANIZATION(97-2157)
Original: English Textiles Monitoring Body
AGREEMENT ONTEXTILES AND CLOTHING
Notification under Article 6.11
Agreed Restraint Measures between Brazil andKorea
Imports ofartificial andsynthetic fibreproducts
(Brazilian categories 611,618,619,620and627)
TheTextiles Monitoring Body hasreceived fromBrazil andKorea, pursuant toparagraph 11
ofArticle 6,thejointnotification oftherestraint measures agreed between Brazil andKorea1andis
forwarding thetextofthenotification toWTO Members fortheirinformation.
1SeealsoG/TMB/R/27, paragraphs 8to37.G/TMB/N/248
Page2
Geneva, 12March 1997
Mr.András Szepesi
Chairman oftheTextiles Monitoring Body
World Trade Organization
Centre William Rappard
RuedeLausanne, 154
1211 Geneva 21
Dear Sir,
Withreference toyourletter,2dated 10February 1997, concerning thetransitional safeguards
introduced byBrazil onimports ofartificial andsynthetic fibres ofcategories 611,618,619,620and
627fromKorea, andinaccordance withArticle 6.11oftheAgreement onTextiles andClothing, we
havethepleasure toenclose herewith theterms ofthebilateral agreement between theGovernment
ofBrazil andtheGovernment ofKorea onthelevels ofrestraint measures.
Please accept, Sir,theassurances ofourhighest consideration.
(signed) Celso Lafer (signed) JounYung Sun
(Ambassador) (Ambassador)
Permanent Representative Permanent Representative
Federative Republic ofBrazil oftheRepublic ofKorea
totheUnited Nations Office totheUnited Nations Office
andother International Organizations andother International Organizations
atGeneva atGeneva
2Letter addressed toBrazil andKorea bytheChairman attherequest ofthemembers oftheTMB. (See
alsoparagraph 8ofG/TMB/R/22 andparagraph 8ofG/TMB/R/23.)G/TMB/N/248
Page3
TERMS OFTHE AGREEMENT BETWEEN THE GOVERNMENT OFBRAZIL AND THE
GOVERNMENT OFKOREA CONCERNING TRANSITIONAL SAFEGUARDS
APPLIED BYBRAZIL ONIMPORTS OFARTIFICIAL AND SYNTHETIC FIBRES
OFCATEGORIES 611,618,619,620AND 627FROM KOREA
1. Safeguards willbeinforce forthree years;
2. Thevolume ofthequotas istheonenotified byBrazil andcalculated according toArticle 6.8
oftheATC, andrefers tocategories 611,618,619,620and627.TheBrazilian system ofcategorization
wasnotified indocument WT/L/149;
3. Aspecial shiftof30percentfrom category 620to619willbeallowed, plusa25percent
special carry forward applicable tocategory 619. Therefore, thetotaladditional flexibilities (special
shift plusspecial carry forward) willamount to55percent, over andabove ATC flexibilities
(Article 6.13). Bothflexibilities willbegranted upon notification totheBrazilian authorities;
4. There willbeananticipation oftheannual 6percentgrowth levelinthequota allocated to
Korea, from thefirstdayofJunetothefirstdayofJanuary ofeachyearinwhich quotas willbein
force (1997, 1998 and1999). Thispercentage isalready provided forinArticle 6.13oftheATC,
andisvalid forallcategories;
5. Aswing of8percent,validforallcategories, willbeallowed, instead ofthe7percentswing
provided forinArticle 6.14oftheATC;
6. Besides thecarryover andthecarry forward provided forinArticle 6.13oftheATC, itwill
beallowed, in1997, aspecial carryover of10percentofthe"prorata" quota of1996, alsovalid
forallcategories.