WORLD TRADE
ORGANIZATIONG/TMB/N/63/Add.12/Suppl.3
16 September 2002
(02-4884)
Textiles Monitoring Body Original:  English
AGREEMENT ON TEXTILES AND CLOTHING
Notification under Article 2.1
UNITED STATES
Supplement
The Textiles Monitoring Body has received a third supplement to the notification made by the
United States pursuant to Article 2.1.
The TMB, in accordance with Article 2.2, is circulating this notification to WTO Members
for their information.G/TMB/N/63/ Add.12/Suppl.3
Page 2
Permanent Mission of the United States
to the World Trade Organization
Geneva
12 September 2002
The Honourable András Szepesi
Chairman
Textiles Monitoring BodyWorld Trade Organization
Rue de Lausanne 154
1211 Geneva
Switzerland
Dear Mr. Chairman,
Thank you for your letter of 26 June 2002, concerning the additional notification from China
regarding the supplementary notification to the Textiles Monitoring Body (TMB) by the United States
under Article 2.1 of the Agreement on Textiles and Clothing (ATC) concerning quantitative
restrictions maintained on imports from Chin a (G/TMB/N/445/Add.2 of 18 June 2002).  The
United States has made several submissions to the TMB concerning the application of ATC growth
rates to quotas on imports from China. We refer to our previous submissions and are pleased toprovide the following additional comments.
It appears that China has changed its position regarding growth rates its most recent
submission to the TMB (G/TMB/N/445/Add.2 of 18 Ju ne 2002).  In this submission, China again
claims that ATC quota growth rate increases should  be provided, retroactively, for the period of time
when China was not a Member of the WTO, but limits its claim in this submission to full benefits for
the entire Stage 2 (as opposed to also including all of Stage 1, as was the case in G/TMB/SPEC/488,
9 April 2002
1).  We also note that China’s calculations in the 18 June communication appear to be
increasing the base quota levels by the factors set out in ATC Articles 2.13 and 2.14, rather than
increasing the  annual quota growth rates, which is what is required by the ATC and the Working
Party report.
The Report of the Working Party on China’s accession states the following:
"Some members of the Working Party proposed and the representative of China accepted that
the quantitative restrictions maintained by WTO Members on imports of textiles and apparel
products originating in China that were in force on the date prior to the date of China'saccession should be notified to the Textiles Monitoring Body ('TMB') as being the base levels
for the purpose of application of Articles 2 and 3 of the WTO Agreement on Textiles and
Clothing ('ATC').  For such WTO Members, the phrase 'day prior to the date of entry into
                                                     
1 Issued as G/TMB/N/445.G/TMB/N/63/ Add.12/Suppl.3
Page 3
force of the WTO Agreement', contained in Article 2.1 of the ATC, should be deemed to refer
to the day prior to the date of China's accession.  To these base levels, the increase in growth
rates provided for in Articles 2.13 and 2.14 of the ATC should be applied, as appropriate,
from the date of China's accession.  The Working Party took note of these commitments."
As required by the ATC and the Working Party Report , we reiterate that the United States
has applied the appropriate increase to China’s annual quota growth rates.
I appreciate the opportunity to respond to questions from the TMB, and will be pleased to
response to additional questions if they arise.
Sincerely,
(Signed for)
David M. Spooner
Special Textile Negotiator
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