./.WORLD TRADE
ORGANIZATIONWT/GC/W/406
6 July 2000
(00-2786)
General Council
Special Session on ImplementationOriginal:  English
AGREEMENT ON TEXTILES AND CLOTHING
ITCB Suggestions for Improved Implementation
Communication from Hong Kong, China
The following communication, dated 28 June 2000, has been received by the Chairman of the
General Council from the Hong Kong Economic and Trade Office.
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I am writing to you further to the statement made by Hong Kong, China in the General
Council Special Session on Implementation on 22 June 2000 on behalf of the 23 members of the
International Textiles and Clothing Bureau which are also Members or Observers of the WTO.1
I pointed out in this statement that:
"… probably in the rush before Seattle, the draft Ministerial text contained in
JOB(99)/5868/Rev.1, dated 19 October 1999, mixed up the sequence of ITCB suggestions for
improving implementation of the ATC.  Furthermore, in some instances the drafting does not
reflect accurately the ITCB language.  This has caused some confusion and I wish, therefore,
to request that the presentation be re-arranged by the Secretariat, so as to facilitate moreefficient consideration …"
Accordingly, I now request that para graph 21(e) in JOB(99)/5868/Rev.1, dated
19 October 1999, be modified to incorporate the suggestions as presented by Hong Kong, China on
behalf of members of the ITCB in document WT/GC/W/357 dated 12 October 1999.  For ease ofreference, these are attached herewith.
2  Such modification should not of course prejudice the
inclusion in the Rev.1 text of similar proposals made by other delegations.
As an alternative to the production and circulation of a modified version of paragraph 21(e) of
the Rev.1 text, I should be content if this letter and its attachment were circulated to all WTOMembers and Observers.
                                                     
1 Circulated as WT/GC/W/405.
2 Reproduced as Annex I.WT/GC/W/406
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ANNEX I
Agreement on Textiles and Clothing
ITCB Suggestions for Improved Implementation
- The restraining WTO Members, should ensure that at least 50 per cent of the volume of 1990
imports of products, that were under specific quota limits, shall have been liberalized by the
start of the next stage of implementation of the ATC on 1 January 2002.
- The restraining countries should:  (i) ap ply the methodology employed by the EU in
implementing the growth-on-growth for small suppliers and extend the same treatment to
least-developed countries;  (ii) advance th e implementation of the growth-on-growth for
stage 3 to 1 January 2000 (from 1 January 2002);  and (iii) increase any resulting growth rates
lower than 6 per cent to that percentage.
- The Members that have long maintained restrictions under the MFA and have, therefore, had
sufficient experience of assessing the validity of transitional safeguard actions should
promptly remove the measure and compensate for loss of trade, in cases in which the recourse
to safeguard actions is subsequently found by the TMB/Panel to be unjustified.
- In order to avoid double jeopardy to the exporting countries concerned, restraining Members
should agree not to initiate anti-dumping actions against products under quota restrictions.
And to lend certainty to trade, they should not take such action during a period of two years
after the elimination of the quota.
- With a view to ensuring that administrative procedures do not operate as disguised protection
by the restraining Members, the TMB may be invited to examine these measures.
- With a view to ensuring that the balance of rights and obligations embodied in the Agreement
is restored, the TMB/CTG may examine the impact of changes in rules of origin by the
restraining Members on the rights of the exporting Members concerned and make
recommendations for multilateral consideration.
- In order to ensure the conformity, with the ATC, of the measures taken with respect to
products covered by the ATC:
- The restraining Members should notify each measure together with its justification to
the TMB within 30 days from the date that it is adopted.
- The TMB should examine the measure within 30 days and submit its findings to the
CTG for its recommendation.
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