RESTRICTED  WORLD TRADE  
ORGANIZATION  G/TMB/R/116 
8 February 2005 
 (05-0508) 
Textiles Monitoring Body  
  
 
REPORT OF THE ONE HUNDRED AND SEVENTEENTH MEETING 
  
1. The Textiles Monitoring Body held its one hundred and seventeenth meeting on 
9 December 2004. 
2. Present at this meeting were the following members, alternates and observers:  Messrs. 
Farahat/Dalela;  Iida;  Lee/Kim/Hassan;  Or tega/Alvarado/Ms. Miranda;  Ms. Pheko;  
Messrs. Samosir; Sorensen; Tagliani; Wentzel/S eppey; Mr. Zambelli/Ms. Petrova/Mr.Yaman;  
Ms. Zhang/Mr. Khan/Ms. Lu. 
Commemoration of the imminent full implementation of the Agreement on Textiles and 
Clothing and the resulting cessation of the TMB 
 
3. The TMB welcomed the Director-General of th e WTO, who had been invited by the TMB to 
the commemoration.  The Director-Gen eral made the following statement: 
4. "I appreciate the initiative of the Textiles Mon itoring Body, whose working procedures do not 
normally provide for the participation of those not directly involved in the matters subject to its 
deliberations, of inviting me to join you on the occasi on of your very last meeting.  I am delighted to 
be with you and participate in this historical meeting. 
5. 1 January 2005, when the Agreement on Textil es and Clothing (ATC) and all restrictions 
there under shall stand terminated, will mark an  important milestone in the development of 
international trade relations.  The expiry of the te n-year transition period of ATC implementation will 
put an end to a special and discriminatory regime that has lasted for more than 40 years.  With the full 
and timely implementation of the ATC, trade in tex tile and clothing products will cease to be subject 
to this regime and become governed by the genera l rules and disciplines embodied in the multilateral 
trading system.  Hence the completion of the integration process under the ATC will not only contribute to increasing trading opportunities, but will also be of major systemic importance. 
6. The ATC has been part of the broader package of the outcome of the Uruguay Round.  It has 
often been said that this broader package repr esents a very delicate ba lance among its constituting 
elements.  The ATC has been perceived by several  Members, in particular by exporting developing 
countries and territories, as one of th e most important results, if not the most important for them.  This 
explains also the particular attention paid by mo st of the Members engaged in trade in textile and 
clothing products to the process of ATC implementa tion throughout the ten-year transition period.  
There has hardly been any Ministerial Confer ence of the WTO when matters relating to the 
implementation of the ATC have not come to the forefront.  Also, on several occasions, different aspects of ATC implementation have been raised in various WTO fora, in particular, in the General 
Council and in the Council for Trade in Goods.  Such discussions have not only confirmed the 
importance attached to a faithful implementation of th e provisions of the ATC, but have also revealed 
the high political sensitivity involved in issues touc hing upon trade in the sector.  In short, ATC 
implementation has been far from being non-controversial. G/TMB/R/116 
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 7. It is neither the appropriate time, nor my ro le, to provide an assessment of the quality and 
main features of ATC implementation (includi ng the integration programmes, administrative 
arrangements and procedures, the recourse to transitional safeguard mechanism, the impact of changes in rules of origin, and compliance with the provisions of Article 7 of the Agreement, to cite 
only a few examples).  What really matters today,  is that against the background of often heated, 
lengthy and inconclusive debate, implementation, in overall terms, is on track.  WTO Members have 
recently reaffirmed their commitmen t to the full and timely implementation of the Agreement.  This 
proves also the ability of the WTO system to "d eliver" according to the established schedule, 
contributing thereby to further strengthening the solidity and credibility of the multilateral trading 
system. 
8. The full and timely implementation of the ATC could hardly have been achieved without a 
continuous process of structural adjustment impl emented both in the markets of the major importing 
Members, and, also, by the exporting Members.  Without prejudice to whether the adjustment 
implemented so far by individual Members has been fu lly sufficient or not in terms of preparation for 
a more competitive environment, a few related comments  can be offered.  First, with the conclusion of 
the Uruguay Round and the signature of the Marrakesh  Agreement, government authorities as well as 
producers and traders of each and every Member have  been fully aware over the past ten years of the 
imperative need of implementing the necessary structur al adjustments.  Second, structural adjustment 
is a steady and continuous process in any sector  of the economy;  it cannot and will not be stopped 
when confronted with a deadline, su ch as the date of full integration of trade in textiles and clothing 
into GATT 1994.  The need for further adjustment will continue after the expiration of the ATC and 
must be made by all Members involved in the trade of textile and clothing products, be they importers 
or exporters or both, be they big or small.  Concer ns recently echoed in this regard, in particular by 
least-developed country Members can probably be best responded to by institutions that can make appropriate means available with a view to reduc ing the burden of the adju stment costs for those 
affected.  
9. All in all, the elimination of the trade-distorti ng quantitative restrictions that are still in place 
will be beneficial for the global economy in terms of increased market access opportunities, efficiency 
gains and consumer welfare.  Developing Members, as a whole, in particular stand to gain since they 
have significant comparative advantages in the sector. 
10. My remarks would not be complete without saying a few words about the contribution the 
TMB has made to the implementation of the ATC.  The Textiles Monitoring Body is a kind of semi-
judicial body and while TMB members are appoi nted by WTO Member governments or their 
respective constituencies, they are required to discharge their function on an ad personam  basis and 
not as representatives of their respective authoriti es.  These characteristics make the TMB a unique 
institution within the WTO framework.  Given th e responsibilities exercised by the TMB and the 
matters referred to it, I believe it must have required determined efforts to ensure that members, 
though being officials and experts of their respec tive national administrations, performed their duties 
in a personal capacity.  
11. I understand that during the early period of ATC implementation the TMB got off to a 
difficult start for a number of reasons.  I am equa lly aware that through the problems encountered 
lessons have been learnt by the members of the Body and the TMB has become a trusted and respected WTO forum.  It has been brought to my attention, for example, that also relying on the 
jurisprudence established by the Dispute Settlement Body through the adoption of a few related Panel 
and Appellate Body reports, the TMB has succeeded in developing, and in consistently applying, 
stringent standards in reviewing dispute cases, in particular those related to transitional safeguard 
measures.  The detailed reports of such reviews a dopted by the Body have proved to be also very 
helpful by providing additional guidance to WTO Members.  G/TMB/R/116 
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 12. As reflected in the reports of the Body's m eetings, the TMB has taken very seriously the 
mandate set out in the provisions of the ATC and re viewed all the notifications  and matters referred to 
it.  During the past few years it has succeeded, inter alia , in handling with particular care the complex 
issues arising from the accession to the WTO of new Members, most of them having an important stake in trade in this area.  I am also pleased to note that, most recently, the comprehensive report 
prepared and adopted by the TMB on the implementation of the ATC during the third stage of the 
integration process has been very well received by WTO Members.  The wealth of the information 
contained in the report, together with the add itional comments, observations and also assessments 
provided therein have been recognized and appreciated by Members. 
13. As a result of the efforts and contributions of everyone involved, the TMB has gained the 
reputation of a body having a very solid professional track record and taking a consistent approach 
with respect to the various issues referred to it.  Let me pay tribute to all present and former members 
and alternates of the Body for the work well done.  I express also my appreciation to the Secretariat 
staff that have been previously or, are currently  directly involved in the TMB's activities for the 
quality of the service rendered.  Also, the continuity  of the Chair and the Secretary of the Body has 
proved to be an asset in achieving such a high stan dard of work in an e nvironment of rotating and 
constantly changing membership. 
14. Lastly, let me pay a special tribute to Mr. András Szepesi, the sole Chairman of the TMB 
throughout all this period.  András’ in-depth  knowledge and professional qualities enabled him to 
perform his highly demanding tasks in a constructive a nd tactful manner.  I am sure that you will all 
agree with me to say that his role has been f undamental to the proper functioning of the TMB." 
15. The Chairman thanked the Director-General for his statement and gave the floor to the TMB 
members and alternates who wished to speak.  Members and alternates, inter alia , stressed that the 
expiry of the ATC on 1 January 2005 and the successful completion of its ten-year phase-out would constitute an important milestone for trade in textiles and clothing and a significant step in 
strengthening the multilateral trading system and its credibility.  They drew attention to the 
challenging task the TMB had been entrusted with of  supervising the implementation of the ATC, of 
examining all measures taken under it and their conformity therewith.  The composition of the TMB, balanced and broadly reflective of the WTO Membership, including the interests of both exporting and importing Members, had not made its task any easier.  Despite this, its members discharging their functions on an ad personam  basis, it had succeeded in supervis ing the implementation of the ATC 
and in developing its findings and recommendations , by consensus and through compromise, on the 
basis of a carefully reasoned approach.  Members viewed as a privilege the opportunity which they 
had been offered to be part of this process.  Experience gained in serving on the TMB would remain 
for many years.  It was felt that all TMB members c ould look back at the work done over the past ten 
years with satisfaction and pride.  Echoing the comments made by the Director-General, all paid tribute to the TMB Chairman and insisted on the essen tial role he had played.  They were thankful for 
the work he had done with the support of the Secretariat. 
16. In his closing remarks, the Chairman expressed his appreciation for all the contributions 
made.  He was also of the view that the full and timely implementation of the ATC would have a significant bearing on trading opportunities in the te xtile and clothing sector.  At the same time, it 
carried also a major systemic importance.  Noti ng the positive assessment provided by the Director-
General regarding the TMB’s role and contribution,  the Chairman expressed his gratitude to all 
present and former members and alternates of the Bo dy for their personal efforts and serious work.  
After the undeniable initial difficulties experienced by  the TMB, its members had learnt how to work 
together with a view to complying with the mandate  defined in the ATC, and in particular how to 
reach appropriate conclusions and make necessar y findings in accordance with the applicable 
provisions of the Agreement.  He believed also th at the availability of the TMB, as a standing body, 
coupled with its improving performan ce and evolving jurisprudence, could have affected the stance G/TMB/R/116 
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 taken by Members in certain situations, in particular by deterring them from adopting measures which 
might have been found to be inconsistent with their obligations under the ATC.  The Chairman 
concluded by saying that it had been a privilege and also a rewarding experience for him to preside 
over the TMB’s work during the entire transition peri od of the implementation of the ATC.  He paid 
special tribute to the Secretary of the Body as well as to other Secretariat staff servicing the TMB for 
their commitment, cooperation and highly valued assistance. 
Adoption of the report of the TMB's 117
th meeting 
 
17. At the end of its one hundred and seventeenth  meeting, the TMB adopted the present report. 
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