RESTRICTED
WORLD TRADE G/TMB/N/173
18July1996
ORGANIZATION(96-2828)
Original: English Textiles Monitoring Body
AGREEMENT ONTEXTILES AND CLOTHING
Notification under Article 2.17
Canada
Administrative Arrangements withUruguay
TheTextiles Monitoring Bodyhasreceived anotification fromCanada pursuant toparagraph 17
ofArticle 2.TheTMB iscirculating thisnotification toWTO Members fortheirinformation.G/TMB/N/173
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, Costa Rica, Cuba, Hong Kong, Hungary, India, Indonesia, Korea, Lesotho, Macau,
Malaysia, Mauritius, Pakistan, Philippines, Romania, Slovak Republic, SriLanka, Swaziland, Thailand
andUruguay.1
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 withUruguay. Arrangements concluded with
theother WTO Members mentioned above willbecirculated asseparate documents.G/TMB/N/173
Page3
Memorandum ofUnderstanding Between theGovernment ofCanada and
theGovernment oftheEastern Republic ofUruguay Relating tothe
Export from Uruguay ofCertain Textile Products toCanada
Introduction
1. ThisMemorandum ofUnderstanding (MOU) setsouttheadministrative arrangements thathave
beenagreed upon between theGovernments ofCanada andUruguay, pursuant toArticle 2.17ofthe
MTN Agreement onTextiles andClothing (ATC) inorder toimplement thetextiles andclothing
restraints between Canada andUruguay tobenotified pursuant toArticle 2.1oftheATC. These
provisions willalsoapply withrespect toanyrestraint introduced byCanada onimports oftextiles
andclothing from Uruguay pursuant totheprovisions ofArticle 6oftheATC.
Implementation
2. Inaccordance withtheprovisions ofArticle 4.1oftheATC, these arrangements shall be
implemented onthebasis oftheexport control system operated bytheGovernment oftheEastern
Republic ofUruguay. Exports ofthetextile products included intherestraints notified under Article 2.1
oftheATC shallbecovered byanoriginal "Export Licence" endorsed andissued bythecompetent
authorities ofUruguay totheeffect thatthegoods covered bytheexport licence havebeendebited
from theapplicable quantitative limit.
3. Forthepurpose ofimplementing these arrangements, thedateofexport from Uruguay shall
beusedtodetermine therestraint period inwhich anyshipments oftextile products shallbecounted.
4. TheGovernment oftheEastern Republic ofUruguay shallendeavour toensure thatexports
toCanada ofallrestrained textile products arespaced outasevenly aspossible during eachrestraint
period, dueaccount being taken ofseasonal factors andofnormal channels oftrade.
5. Export licences issued bytheGovernment oftheEastern Republic ofUruguay inrespect of
restrained textile products shallcontain thefollowing information:
(a) Country ofdestination;
(b) country oforigin;
(c) licence 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, unitsorsquare metres should becalculated inaccordance withtheconversion
factors setoutintherestraint notified under Article 2.1oftheATC;G/TMB/N/173
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(h) f.o.b. orc.i.f. value except fornon-commercial consignments;
(i) certification bythecompetent authorities ofUruguay thatthequantity hasbeendebited
from theagreed restraint limitforexports toCanada.
6. Intheevent thatanyquantity covered byanexport licence isnotshipped, theGovernment
oftheEastern Republic ofUruguay shallnotify theGovernment ofCanada ofsuchquantity which
maybecredited bytheGovernment oftheEastern Republic ofUruguay totheappropriate restraint
limit.
7. Except asprovided forinparagraphs 8to11below (swing andcarryover/carry forward), the
GovernmentoftheEasternRepublicofUruguayshallrestrainitsexportstoCanadaofthetextileproducts
notified pursuant toArticle 2.1oftheATC tothelimits notified under Article 2.1oftheATC, as
modified bytheprovisions ofArticles 2.7,2.8,2.13and2.14oftheATC. Pursuant toArticle 4.1
oftheATC, itisunderstood thattheGovernment ofCanada shallnotbeobliged toaccept shipments
inexcess oftherestraint levels notified under Article 2.1oftheATC, asmodified bytheprovisions
ofArticles 2.7,2.8,2.13and2.14oftheATC.
Swing
8. Subject tothespecific limitations contained intherestraint notification under Article 2.1of
theATC, andfollowing notification totheappropriate Canadian authorities, theGovernment ofthe
Eastern Republic ofUruguay mayexceed thespecified annual quantitative limituptothepercentage
specified intherestraint notification under Article 2.1oftheATC, provided thatanequivalent amount
isdeducted from anyother restraint level. When anyrestraint limitisexceeded bytheapplication
ofswing, theGovernment oftheEastern Republic ofUruguay shallsoindicate insubsequent monthly
statistical reports.
9. Forthepurpose ofimplementing theswing provisions inparagraph 8,theconversion factors
specified intherestraint notification under Article 2.1oftheATC shallapply.
Carryover/carry forward
10. 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.
11. 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
12. TheGovernment oftheEastern Republic ofUruguay shallprovide theGovernment ofCanada
withmonthly statistical reports relating toexports ofrestrained textile products, licensed forexport
toCanada anddebited fromthequantitative limits foreachrestraint period. These statistics shallinclude
thefollowing information:G/TMB/N/173
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(a) Itemnumber anddescription;
(b) original andadjusted restraint limits fortherestraint period;
(c) totalquantity issued fortherestraint period todate;
(d) notification ofanyutilization ofswing, carryover orcarry forward provisions andthe
quantities involved asprovided forinparagraphs 8to11above.
Thisinformation should beprovided assoonaspossible following theendofeachmonth.
13. TheGovernment ofCanada shallprovide theGovernment oftheEastern Republic ofUruguay
withmonthly statistical reports relating toimport permits issued forimports originating inUruguay
oftextile products listed inAnnex I.
14. BothGovernmentsreservetherighttorequestadditionalstatisticsasmaybereasonablyrequired,
including statistics relating totheexport orimport ofproducts notcontained inthenotification, under
Article 2.1oftheATC, ofCanada 'srestraints onimports from Uruguay.
Re-exports
15. TheGovernment ofCanada shall, sofaraspossible, inform theGovernment oftheEastern
RepublicofUruguaywhenimportsintoCanadaofrestrainedtextileproductsaresubsequentlyre-exported
fromCanada. Where suchre-exports haveoriginally beendebited bytheGovernment oftheEastern
Republic ofUruguay from quantitative limits, theGovernment oftheEastern Republic ofUruguay
maythencredit backthequantity involved totheappropriate quantitative limits.
Consultations
16. Pursuant toArticle 8.4oftheATC, theGovernment oftheEastern Republic ofUruguay and
theGovernment ofCanada express theirwillingness toconsult, onrequest, onanymatter arising from
theimplementation oroperation oftheATC orofthisMOU oronanymatter germane thereto.
(Signed) __________________________ (Signed) ___________________________
FortheGovernment ofthe FortheGovernment ofCanada
Eastern Republic ofUruguay
Ottawa
6January 1995G/TMB/N/173
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ANNEX I-RESTRAINT LEVELS
EASTERN REPUBLIC OFURUGUAY
GROUP I
(A)
Agreement Item
No.(B)
Product coverage(C)
1995
Restraint level
(unit)(D)
Growth(E)
Swing(F)
Carryover/
carry
forward(G)
Conversion
factor
(m2/unit) Category Short description
31a 31.1 Combed wool fabric 311,246 7.5% N/A 10%(5%) N/A