RESTRICTED
WORLD TRADE G/TMB/N/156
16July1996
ORGANIZATION(96-2295)
Original: English Textiles Monitoring Body
AGREEMENT ONTEXTILES AND CLOTHING
Notification under Article 2.17
Canada
Administrative Arrangements withCuba
TheTextiles Monitoring Bodyhasreceived anotification fromCanada pursuant toparagraph 17
ofArticle 2.TheTMB iscirculating thisnotification toWTO Members fortheirinformation.G/TMB/N/156
Page2
ThePermanent Mission ofCanada
totheUnited Nations
1rueduPré-de-la-Bichette
1202 Geneva
13March 1996
Dear Ambassador Szepesi,
Pursuant toArticle 2.17oftheAgreement onTextiles andClothing, Ihavethehonour tonotify
theAdministrative Arrangements thathave been concluded withthefollowing WTO Members:
Bangladesh,Brazil,CostaRica,Cuba1,HongKong,Hungary,India,Indonesia,Korea,Lesotho,Macau,
Malaysia, Mauritius, Pakistan, Philippines, Romania, Slovak Republic, SriLanka, Swaziland, Thailand
andUruguay.
Yours sincerely,
(Signed) JeanSaint-Jacques
Counsellor
Ambassador András Szepesi
Chairman
Textiles Monitoring Body
World Trade Organization
Centre William Rappard
154ruedeLausanne
1211 Geneva
1Thisdocument contains theAdministrative Arrangements withCuba. Arrangements concluded withthe
other WTO Members mentioned above willbecirculated asseparate documents.G/TMB/N/156
Page3
Memorandum ofUnderstanding Between theGovernment ofCanada andthe
Government oftheRepublic ofCuba Relating totheExport from Cuba
ofCertain Textile Products toCanada
Introduction
1. ThisMemorandum ofUnderstanding (MOU) setsouttheadministrative arrangements thathave
beenagreed upon between theGovernments ofCanada andCuba, pursuant toArticle 2.17ofthe
MTN Agreement onTextiles andClothing (ATC) inorder toimplement thetextiles andclothing
restraints between Canada andCuba tobenotified pursuant toArticle 2.1oftheATC.
Implementation
2. Inaccordance withtheprovisions ofArticle 4.1oftheATC, these arrangements shallbe
implemented onthebasis oftheexport control system operated bytheGovernment oftheRepublic
ofCuba. Exports ofthetextile products included intherestraints notified under Article 2.1ofthe
ATC shall becovered byanoriginal "Export Certificate" endorsed andissued bythecompetent
authorities ofCuba totheeffect thatthegoods covered bytheexport certificate havebeendebited
from theapplicable quantitative limit.
3. Forthepurpose ofimplementing these arrangements, thedateofexport from Cuba shallbe
usedtodetermine therestraint period inwhich anyshipments oftextile products shallbecounted.
4. TheGovernment oftheRepublic ofCuba shallendeavour toensure thatexports toCanada
ofallrestrained textile products arespaced outasevenly aspossible during eachrestraint period, due
account being taken ofseasonal factors andofnormal channels oftrade.
5. Export certificates issued bytheGovernment oftheRepublic ofCuba inrespect ofrestrained
textile products shallcontain thefollowing information:
(a) Country ofdestination;
(b) country oforigin;
(c) certificate number andquota year;
(d) importer 'sname andaddress;
(e) exporter 'sname andaddress;
(f) itemnumberanddescriptionofproductascontainedinthenotificationunderArticle2.1
oftheATC;
(g) quantity expressed intheunits designated foreachproduct inthenotification under
Article 2.1oftheATC. Ifmore thanonesetofmeasures isestablished, allshould
beindicated; where thequantity isexpressed other thanasdesignated, theequivalent
weight, unitsorm2should becalculated inaccordance withtheconversion factors set
outintherestraint notified under Article 2.1oftheATC;
(h) f.o.b. orc.i.f. value except fornon-commercial consignments;G/TMB/N/156
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(i) certification bythecompetent authorities ofCuba thatthequantity hasbeendebited
from theagreed restraint limitforexports toCanada.
6. Intheevent thatanyquantity covered byanexport certificate isnotshipped, theGovernment
oftheRepublic ofCuba shallnotify theGovernment ofCanada ofsuchquantity which maybecredited
bytheGovernment oftheRepublic ofCuba totheappropriate restraint limit.
7. Exceptasprovidedforinparagraphs8and9below(Carryover/CarryForward),theGovernment
oftheRepublic ofCuba shallrestrain itsexports toCanada ofthetextile products notified pursuant
toArticle 2.1oftheATC tothelimits notified under Article 2.1oftheATC, asmodified bythe
provisions ofArticles 2.7,2.8.2.13and2.14oftheATC. Pursuant toArticle 4.1oftheATC, it
isunderstood thattheGovernment ofCanada shallnotbeobliged toaccept shipments inexcess of
therestraint levels notified under Article 2.1oftheATC, asmodified bytheprovisions ofArticles 2.7,
2.8,2.13and2.14oftheATC.
Carryover/carry forward
8. Following notification totheGovernment ofCanada ofthequantities involved, portions of
anyquantitative limitwhich arenotusedduring theannual restraint period maybecarried overand
added tothecorresponding quantitative limitforthefollowing annual restraint period. Therestraint
limitforanysuchrestraint period shallbeincreased within thepercentage limits specified intherestraint
notification under Article 2.1oftheATC.
9. Following notification totheGovernment ofCanada ofthequantities involved, anyrestraint
limitmaybeincreasedwithinthepercentagelimitsspecifiedintherestraintnotificationunderArticle2.1
oftheATC byaquantity advanced from thecorresponding restraint limitforthefollowing annual
restraint period. Therestraint limitforanysuchfollowing restraint period shallbereduced byaquantity
equal tothequantity soadvanced.
Exchange ofstatistics
10. TheGovernment oftheRepublic ofCuba shallprovide theGovernment ofCanada withmonthly
statistical reports relating toexports ofrestrained textile products, licensed forexport toCanada and
debited fromthequantitative limits foreachrestraint period. These statistics shallinclude thefollowing
information:
(a) Itemnumber anddescription;
(b) original andadjusted restraint limits fortherestraint period;
(c) totalquantity issued fortherestraint period todate;
(d) notification ofanyutilization ofcarryover orcarryforward provisions andthequantities
involved asprovided forinparagraphs 8and9above.
Thisinformation should beprovided assoonaspossible following theendofeachmonth.
11. TheGovernment ofCanada shallprovide theGovernment oftheRepublic ofCuba withmonthly
statistical reports relating toimport permits issued forimports originating inCuba oftextile products
listed inAnnex I.G/TMB/N/156
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12. BothGovernmentsreservetherighttorequestadditionalstatisticsasmaybereasonablyrequired,
including statistics relating totheexport orimport ofproducts notcontained inthenotification, under
Article 2.1oftheATC, ofCanada 'srestraints onimports from Cuba.
Re-exports
13. TheGovernment ofCanada shall, sofaraspossible, inform theGovernment oftheRepublic
ofCuba when imports intoCanada ofrestrained textile products aresubsequently re-exported from
Canada. Where suchre-exports haveoriginally beendebited bytheGovernment oftheRepublic of
Cuba from quantitative limits, theGovernment ofCuba maythencredit backthequantity involved
totheappropriate quantitative limits.
Consultations
14. PursuanttoArticle8.4oftheATC,theGovernmentoftheRepublicofCubaandtheGovernment
ofCanadaexpresstheirwillingnesstoconsult,onrequest,onanymatterarisingfromtheimplementation
oroperation oftheATC orofthisMOU oronanymatter germane thereto.
(Signed)______________________ (Signed)_____________________
FortheGovernment FortheGovernment
ofCanada oftheRepublic ofCuba
OTTAWA
27September 1995G/TMB/N/156
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ANNEX I-1995 RESTRAINT LEVELS (PHASE I)
Cuba
Group 1
(A)
Agreement
Item
No.(B)
Product coverage(C)
1995
Restraint
level
(NMB)(D)
Growth(F)
Swing(F)
Carryover/
carry
forward(G)
Combined
flexibility
(E)&(F)(H)
Conversion
factor
(m2/unit)Category Short
description
6 6.0 Tailored collar
shirts, MBC752,500 7.5% N/A 10%(5%) N/A N/A