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DOCUMENTS "COM"
COM(74)251
Vol.1974/0047

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tf
Λ
»COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(74)251 final
Brussels ,26February 1974
RECOMMENDATION FORA
REGULATION (EEC)OFTHECOUNCIL
concluding onbehalfoftheEuropean Economic Community
theArrangement regarding International TradeinTextiles
(submitted totheCounoil "bytheCommission )
COM(74)251final

3XFHHATCHÏ ST .3V.JÏÏT.
Following discussions intheGATT Working Party ontrade intextiles M
which theCommunity participated fror ;7June 1972 until J>0July 1973 j
theGATT Council decided on30July 1973 toreconstitute theWorking
Party into aNegotiating Group with the aim ofreaching asatisfactory
arrangement ontrade intextiles by31December 1973 1atwhich date the
Long-Term Arrangement onCotton Textiles ,towhich theCommunity was a
party ?was due toexpire *TheNegotiating Group held meetings under
thechairmanship oftheDirector General ofGATT inGeneva ,inOctober ,
November andDecember 1973 *Negotiations were completed on20December
andthetext ofanArrangement regarding International Trade inTextile
was thereupon communicated totheContracting Parties .
On6November 1973 theCouncil authorised theCommission ,onthebasis
ofArticle 113 »toparticipate inthenegotiations onbehalf ofthe
Community .TheCommission performed this task following directives
laid dov /nbytheCouncil .Throughout thenegotiations ,theCommission
acted inconsultation with thespecial committee appointed bytheCounc
under Article 113 »
TheArrangement provides that itshall remain inforce for four years .
Itwasdesigned tomeet theneeds ofboth importing andexporting
countries inthe field oftextiles .Thebasic objectives oftheArrange
ment are toachieve theexpansion oftrade ,thereduction ofbarriers t
such trade andtheprogressive liberalisation of_world trade intextile
products ,whilst atthesame time ensuring theorderly andequitable
development ofthis trade andtheavoidance ofmarket disruption .It
was felt that the special problems which tend toexist ,inthis sector
particularly concerning quantitative restrictions ontrade intextiles ,
justified treatment apart from thegenerality ofworld trade problems
inother industrial sectors .Emphasis iscentred ,.therefore ,inthe
Arrangement ,onthetreatment ofquantitative restrictions andpro­

-2-
vision ismade for the staged elimination ofexisting restrictions }
fortheconclusion ofbilateral agreements andfortheselective
application ofsafeguards (incontrast tothegeneral non-dis -
criminatory safeguards provision intheGATT itself ).
Inmany ways thenegotiations forthis Arrangement were seen as
helping toprepare for the forthcoming multilateral trade negotiations
and ,consequently ,successful entry into force andoperation ofthe
Arran ement will facilitate progress inthewider trade negotiations
which have already commenced .
Theprincipal provisions oftheArrangement reflect ,toasubstantial
•extent ,Community objectives and ,inmany cases ,appear inthe form in
which they were put forward by,theCommunity .Such issubstantially
the case with Art .2which provides for the treatment ofexisting
quantitative restrictions .These are szi .• : •'""'-'o
either tobeeliminated ,unless they are "justified "byreference
totheArrangement 'ssafeguard provision ,orare tobeincluded ina
programme ofliberalisation which would take into account bilateral
agreements which have been concluded orarebeing negotiated .Such
bilateral agreements arespecifically envisaged inArticle 4ofthe
Arrangement and constitute animportant element inthe overall process
ofprogressive and orderly liberalisation oftrade inthetextiles
sector .Implementation of .this Article should lead ,during the
currency oftheArrangement ,toagreater liberalisation ofworld
trade intextiles through theprogressive removal ofunnecessary
barriers tothis trade .
5.Similarly ,Art .3which ,with Annex .A,lays down conditions and
criteria forrecourse tosafeguard measures ,is .consistent with the
Community 'snegotiating aims .Nothing intheArrangement prevents
theCommunity from .applying safeguard measures toforestall orremedy
serious damage todomestic ;producers whether this exists ticiroughout
theCommunity oronly within one ormore regions oftheCommunity .
Inthis respect itisimportant torecall that theCommunity has ,
forexample ,hadrecourse tomeasures under Art .XIXoftheGATT in

-3-
respect ofserious injury toregional industry ,which ,have been
limited totheregions oftheCommunity concerned .Such measures are
expressly provided forunder existing Community regulations .
6,Art .kprovides ,inconformity with theCommunity 'sobjectives ,
framework rules forbilateral textiles agreements .Interms of
product coverage ,thepresent Arrangement greatly extends thescope
ofthe former Long-Term Arrangement .Not only cotton products are
covered but also those made ofwool ,man-made fibres ,aswell as
artificial and synthetic fibres ,orblends thereof .Finally ,the 1
Arrangement provides fortheestablishment oftwobodies -aTextiles
Committee ,.,thecomposition andfunction ofwhich areset outin
Art .10,and aTextiles Surveillance Body described inArt . Insum ,
theprovisions oftheArrangement should provide abasis ofindustrial
and commercial confidence ,sothat anordered liberalisation of
world textiles trade can beachieved .
7•TheArrangement thus relates tointernational trade intextiles and ,
inparticular ,tothe conditions under which such trade istobe
liberalised andrestrained .Accordingly ,itfalls within -the
icommon commercial ;policy ofthe -Community and ,having been negotiated
bytheCommission onthe basis ofArticle 113 is,byvirtue ofArticle It
tobeconcluded bytheCouncil onbehalf oftheCommunity .
8.TheArrangement falls within theframework oftheGATT ,butexists as
aninstrument distinct from theGeneral Agreement .There are ,never­
theless ,throughout theArrangement ,both substantive andstructural
links with theGeneral Agreement itself .Furthermore jtheprovisions
oftheArrangement will notaffect therights andobligations ofthe
Community under theGATT and do'notconflict with anyobligations ,
either oftheCommunity orofMember States ,under anyother inter­
national instruments .Inparticular ,thespecial rights enjoyed atpresen
bytheCommunity vis-a-vis certain countries byvirtue oftheir Pro­
tocols ofAccession totheGATT arespecifically preserved .

9.Nochanges appear toberequired intheexisting provisions of
Community law inorder toenable theCommunity toaccept theArrangement e
Inanyrecourse tomeasures provided forunder Community law ,Member
States are formally bound bytheprovisions oftheArrangement through
Art .228 (2)oftheTreaty ,Thus when safeguard action istaken bya
Member State under Community -law ,such measures must conform tothe
provisions oftheArrangement .Itisappropriate that theinter­
national responsibility fortheconsequences ofthe exercise ofsuch
rights should beborne ,so' far asourtrading partners under the
Arrangement areconcerned ,bytheCommunity itself .Toconfirm this ,
itwould beappropriate for aninsertion o
tobemade intheCouncil 'sminutes inthefollowing terms ;
"The acceptance bytheEuropean Economic Community ofthe
"Arrangement regarding International Trade inTextiles engages
"theresponsibility oftheCommunity intheimplementation of _
"itsprovisions .Asinthe past ,theCommunity will inappropriate
"circumstances continue toapply ,orauthorise itsMember States to
"apply ,inaccordance both with Community law -andwith the •
"provisions ofthe Arrangement regarding International Trade in
"Textiles ,safeguard measures onanational orregional basis ".
TheCommission would give such explanations tothird countries inthis
sense asmight "benecessary .
10..Finally ,itshould benoted that acceptance oftheArrangement will in
nowayobstruct ordeflect progress towards implementation ofacommon
Community import policy fortextiles ,onthebasis ofguidelines indi­
cated bytheCommission initsmemorandum totheCouncil of30October
1973 .Rather ,theArrangement should assist itsachievement through the
creation ofconditions necessary fortheordered liberalisation of
international trade intextiles subject tosatisfactory safeguard
conditions and the conclusion ofmutually acceptable lilateral agreement
asauthorised bythe Arrangement .

-5-
11,Taking into account theconsiderations set out above ,theCommission
believes that the Arrangement which has been negotiated ,consistently
with the directives laid down bytheCouncil ,meets all ofthe
Community 'sessential objectives andthat itisintheinterests of
theCommunity toaccept the Arrangement regarding International
Trade inTextiles before 26March 197^^^* TheCommission ,therefore ,
recommends totheCouncil that theprocedures necessary forthe
signing and conclusion ofthe Arrangement bytheCommunity be
engaged .Tothis end theCommission presents herewith aproposal
foraCouncil Regulation concluding theArrangement anddesignating
theperson empowered tosign itonbehalf oftheCommunity ,aswell
asthe texts ofthe Arrangement .
(1)Date agreed forthefirst meeting oftheTextiles Committee ,

Recommendation for a
Regulation (EEC )oftheCouncil
concluding onbehalf ofthe
European Economic Community the
Arrangement regarding International
Trade inTextiles
THE COUNCIL OFTHE EUROPEAN COMMUNITIES
Having regard totheTreaty establishing theEuropean Economic Community
and inparticular article 113thereof ;
Having regard totherecommendation .from theCommission ;
Whereas theCommission hasparticipated ,onbehalf oftheCommunity ,
inthe negotiations within the framework ofaNegotiating Group on
Textiles established bythe G.iTT .Council ,which have led tothe
drawing upofanArrangement regarding International Trade :InTextiles ;
Whereas itisdesirable that :theCommunity ;concludes and accepts the
Arrangement -

HAS ADOPTED THIS REGULATION ;•
Article 1
TheArrangement regarding International Trade inTextiles ishereby -
concluded onbehalf oftheEuropean Community .Thetexts ofthe
Arrangement aresetoutintheAnnex tothis Regulation .
Article 2
ThePresident oftheCouncil shall beauthorised todesignate the
person empowered tosign the Arrangement inaccordance with Article 13
oftheArrangement and toconfer upon him thenecessary powers toact
onbehalf oftheCommunity .
Article 3
This Regulation shall enter >into force onthe third day following its
publication intheOfficial Journal oftheEuropean Communities .
This Regulation shall bebinding initsentirety anddirectly applicable
inall member States . *"
Done atBrussels
For the Council

No.2<J.St..
G
GENERALAGREEAAENT .ON
TARIFESANDTRADE
KEGOTIATI'TG GROUP Q;TTEXTILES
RencrttotheCouncil "bytheChairr.en
1.Atitsmeetingcn30July1973theCouncildecidedthatthe\.:orkingPartycn
Textiles bereconstituted intoanegotiating groupwiththeobjective ,takinginto
accountthe'JerkingParty'sreportsanditsir.anclateof33April1973,ofreaching a
nutuallysatisfactory arrangement ortradeintextiles bytheendof1973-The
i'?ogotiatir.g Groupv;astoreporttheterns'ofthenewarrangement totheCouncilby
31Decei.iVer 1973. . '
2.TheNegotiating Grouphascompleted thetaskassignedtoitbytheCounciland
anArrangement Regarding International TradeinTextiles,asagreeduponbythe
Negotiating Group,isattached .
o20Dece~.cer 1Ç73
XiXiiixccídDxs1cvzva.on
theCouncil and
ueonbythe
O

GENERAL AGREEMENT ON
TARIFESANDTRADE'TEX.NG/l
20December 1973
GeneralDistribution
• ;
AoRANGE-TENT REGARDING IHTEHFTATIONAL
TiiADs*in"mmiis
PREAMBLE
thegreatimportance ofproduction andtradeintextileproducts
ofwool,Mtn-uadcfibresandcottonfortheeconomies ofiaeny.countries ,findtheir
.particular importance fortheeconomic findsocialdevelopment ofdeveloping countries
andforthe.expansion anddiversification oftheir ,exportearnings,andconscious
alsoofthe.specialimportance oftradeintextileproductsofcottonformany
developing countries ; » .• ... •
* ' *•
fatherthetendencyforanunsatisfactory situation toexistin
vorldtradeintextileproducts andthatthissituation ,ifnotsatisfactorily dealt
with,couldworktothedetriment ofcountriesparticipating intrade-intextile
products,whetherasimporters orexporters ,orboth,adverselyaffectprospectsfor
international co-operation inthetradefield,andhaveunfortunate repercussions on
traderelations generally : '•
iiSiP-.DIIohatthisunsatisfactory situation .ischaracterized bytheproliferation
ofrestrictive measures,inclining disci^irdnatoryMeasures,thatareinconsistent with
theprii^r:i.plesoftheGeneral .Agreement onTariffscuidTradeandalsothat,insome
importing countries ,situations havearisenwhich,inthoviewofthese,countries ,
ca^se-.orthreatentocausedisruption oftheirdomesticmarkets; ••
pesir;inr?totakeco-operative andconstructive action,withinamultilateral
framework ,soastodealwiththosituationinsuchawayastopromoteonasound
basisthedevelopment ofproduction andexpansionoftradeintextileproductsand
progressively toachievethereduction oftradebarriers and'theliberalization of
vorldtradeintheseproducts ;
that,inpursuitofsuchaction,thevolatile andcontinually
evolvingnatureofproduction andtradeintextileproductsshouldbeconstantly
borneinmindandthofullestaccounttalcenofsuchseriouseconomic ,andsocial
problemsasexistinthisfieldinbothimporting andexportingcountries ,and
particularly inthodeveloping countries :o

TDX.ifG/i
Page2
r
Recogni*z;ingfurtherth?.tsuchactionshouldbedesigned tofacilitate
economic expansion andtopromotethedevelopment ofdeveloping countries
possessing thenecessary resources ,suchasmaterials andteclmical skills,by
providing largeropportunities forsuchcountries ,including -;countries thatare,
orthatmayshortly become,nowentrantsinthefieldoftextileexportsto
increasetheirexchange earnings fromthesaleinworldmarketsofproducts which
theycanefficiently produce; •■
Recognisin gthat£ut\irebarr.onious development oftradeintextiles
particularly havingregardtothene.edsofdeveloping countries ,alsodepends
importantly uponwaitersoutsidathescopeofthisArrangement ,andthatsuch
factorsinthisrespectincludeprogressloadingbothtothereduction oftariffs
andtothemaintenance anaimprovement ofscrhen^sofgeneralized preferences ,in
accordance withthe.TokyoDeclaration : ' ■.•■ •.'
•. *" * *
-Poter^inedtohavefullregardtothaprincipalasandobjectives ofthe
GeneralAgreement 'onTariffsandTrade(hereinafter referredtoastheGATT)and,
incarryingouttheaims'ofthisArrangement ,effectively toimplement the
■principles andobjectives agreeduponintheTokyoDeclaration of^inis'tcrsdated ■
3/.September 1973concerning theMultilateral Tradenegotiations j
TH3PAR'JIIiiS TOTHIS*JUltA.i{G2£;:32phaveagreedasfollows:
:.Article 3■'
;.... # . .
3L.ItKaybedesirable duringthanextfewyearsforspecialpractical measuresofinternational co-opcration tobeappliedbytheparticipating countries^inthe
fieldoftextileswiththeaimofeliminating thedifficulties thatexistinthis
field. •' ' .••"•••
2.=Thebasicobjectives shallbetoachievethaexpansion oftrade,the
reduction oxbarrierstosuchtradeandtheprogressive liberalization ofworld
tradeintextileproducts ,whileatthesametimeensuringtheorderlyand
equitable development ofthistradeandavoidance ofdisruptive effectsin....
individual marketsandonindividual linesofproduction inbothimporting and
exporting countries .Inthecaseofthosecountries havingsmallmarkets,an
exceptionally highlevelofimportsandacorrespondingly lowlevelofdomestic
production ,accountshouldbetakenoftheavoidance ofdamagetothosecoxa:tries'
minimumviableproduction ,oftextiles .
3.Aprincipal aimintheimplementation ofthisArrangement shallbetofurther
theeconomicendsocialdevelopment ofdeveloping countries andsecureasub­
stantialincreaseintheirexportearningsfromtextileproductsandtoprovide
scopeforagreatershare:fortheminworldtradeintheseproducts .••
"Theexpressions "participating country","participating exporting country"
tuid"participating .imporl.ingcountry",whereverthvyappearinthisArrangement ,
shallbedeemedtoincludetheEuropean Economic Community .

TEX.NQ/I
Pane3
.Aotionatakonuncias?thisArirancKaant ,eh»3.3.notiat©rru;3"c ordleoourr.g® ths
•autonomous inditetrialadjustment processes ofparticipating countries .I'lirther-
morCjactionstakenunderthis/arrangement shouldbeaccompanied bythepursuitof
.•appropriate ;economic andsocialpolicies ,inamannerconsistent v/ithnational
lawsandsystems,required bychangesin'thepatternoftradeintextiles andin
thecomparative advantage ofparticipating countries ,whichpolicies would
encourage businesses whicharelesscoj.ipetit.ive internationally tonovoprogressively
intor.oreviablelinesofproduction orintoothersectorsoftheeconomyand
•provideincreased accesstotheirmarketsfortextileproducts fromdeveloping
countries . •
5..Theapplication ofsafeguard measures underthisArrangement ,subjectto
recognized conditions andcriteria andunderthesiu-yeillar.ee ofaninternational
bodysetupforthatpurpose,andin.conformity viththeprinciples andobjectives
of.thisArrangement ,mayinexceptional circumstances becomenecessary inthe
fieldoftradeintextileproducts ,andshouldassistanyprocessofadjustment
whichwouldberequired bythechangesinthepatternofworldtradeintextile
products .ThepartiestothisArrangement undertake -nottoapplysuchmeasures
exceptinaccordance withtheprovisions ofthisArrangement withfull.regardto
theimpactofsuchmeasures onotherparties. -
6.'Theprovisions ofthisArrangement shallnotaffecttherightsandobligations
oftheparticipating countries undertheC-ATT.
7.'Theparticipating countries recognize that,sincerxasurcstakenunderthis
Arrangement areintendedtodealwiththespecialproblemsoftextileproducts,
suchmeasuresshouldbeconsidered asexceptional ,andnotlendingthemselves to
application inotherfields.
•' Article 2 •■
.1.Allexistingunilateral quantitative restrictions ,bilateral agreements and
anyotherquantitative measuresInforcewhichhavearestrictive effectshallbe
notifiedindetailbytherestraining participating country,uponacceptance ofor
accession tothisArrangement ,totheTextilesSurveillance Body,whichshall
circulate thenotifications to-theotherparticipating countriesforthenr
information .,Measuresoragreements whicharcnotnotified byaparticipating
.countrywithinsixtydaysofitsaccop.te.nce of,oraccession to,thisArrangement
.shallbeconsidered tobocontrarytothisArrangement and"shallbeter^iinatedforthwith .• •■' ..

TEX.KG /1
Page 4
2.Unless they arejustified under thaprevisions oftheG/.TT (including its
•Arincxen wacl •Protocols ),''all unilateral quantitative restrictions 'aridany .ether
'quantitative measures which have arestrictive effect ar.dwhich arenotified ,
in' -accordance with paragraph 1above shall be'terminated within oneyear cfthe
entry into force -ofthin Arrangement ,unless "they 'arethesubject ofonecfthe -,
-following procedures tobring then into conformity ,with 'th'oprovisions ofthis
Arrangement :•, •' .,7 ..-J. .• '•
(i)''inclusion in-aprogramme ,which should be .adopted andnotified tothe
■'••••Textiles Surveillance Body within :c-neyear from' thedate of 'coning into .'
force ofthis Arrangement ,designed toeliminate existing restrictions in
stages within amaximum period of .three years from theentry into force cf
'this' Arrangement and talcing account' ofanybilateral agreement either .
'.concluded orincourse ofbeing ,negotiated asprodded forin .(ii)below ;
: ■--itbeing understood that amajor ^effort will 'be'made in.thefirst year,'
;'V:%covering both asubstantial elimination ofrestrictions anda"substantial
'•' •".increase intheregaining quotas;' ''s. • •
..... . | '_
• (ii)inclusion /within a.period ofoneyear from theentry into force of
"'•"this Arrangement ,'inbilateral agreements' negotiated ,orin .course cf
negotiation ,pursuant totheprevisions ofArticle 4Jif,'forexceptional
reasons ,anysuch bilateral agreement isnotconcluded within theperiod
"..-.•• ofoneyear,' this period ,following'' consultations' bytheparticipating .•
countries concerned and with the concurrence ofthe Textiles Surveillance
Body ,)::aybeextended bynotmore than c-noyear ;
»"• (iii)inclusion inagreements negotiated ormeasures' ,adopted ,pursuant to .
. -;'"-the provisions ofArticle 3. " '
3.Unless justified under theprevisions oftheGATT (including itsAnnexes
raidProtocols ),allexisting bilateral -agreements notified inaccordance with
paragraph 1ofthis Article shall ,within .oneyear of.th,-.entry into force of
this Arrangement ,either beterminated crjustified ,under .theprovisions ofthis-
Arrangement 'oi*modified toconform .'therewith .■' ' ..
4.•Forthepurposes' ofparagraphs 2and3above theparticipating countries
shall' afford full opportunity forbilateral consultation' and .negotiation aimed ■
at -arriving at -Mutually •acceptable solutions in'accordance with Articles .3ar.d4-
orthis Arrangement anapermittingfrcm thefirst year oftheacceptance ,ofthis
Arrangement theelimination ascomplete aspossible cftheexisting restrictions .
They shall report specifically totheTextiles Surveillance Body within cneyear
oftheentry into force ofthis Arrangement cnthestatus ofanysuch actions
taken ornegotiations undertaken pursuant tothis Article .

T2X.!;C/1
P;\gs.5•
5.TheTextilesSurveillance Bodyshallcompleteitsreviewofsucnreports
withinninetydayscftheirreceipt .In'itsreviewitshallcon.-icUr whetherall
theactionstakenareinconformity withthisArrangement .It:naymake •appropriate
rccorcraendations totheparticipating ,countries directly concerned soasto
'facilitate theimplementation oftJiisArticle.
.\.. "".■^XticlO. •.• ■
.1."'.Unlesstheyarejustified undertheprovisions oftheC1ATT(includingits
AnnexesandProtocols )nonewrestrictions ontradeintextile "precinctsshallbo
.introduced byparticipating countries ,norshallexistingrestrictions beintensified
unlesssuchactionisjustified undertheprovisions ofthisArticle.-
•• * !
2.Iheparticipating countries agreethatthisArticleshouldonlyberesorted
tosparingly anditsapplication shellbelimitedtothepreciseproducts andto
countries whosoexportsofsuchproducts arecausingmarketdisruption asdefined
inAnnexAtakingfullaccountcftheagreedprinciples andobjectives setcutIn
thisArrangement andhavingfullregardtotheinterests ofboth,importing and
exporting countries .Participating countries shalltakeintoaccountiv.p-crisfrc;j
allcountries andshallseektopreserve aproperMeasureofequity.Theyshall
endeavour toavoiddiscriminatory measures wheremarketdisruption iscausedby
imports -fromMorethanoneparticipating countryancwhenresorttotheapplication
ofthisArticleisunavoidable ,bearingin;;dndtheprevisions ofArticleo.
3.If,,intheopinionof"anyparticipating importing country,"itsmarketin
townsofthedefinition ofmarketdisruption inAnnexAisbeingdisrupted by
importsofacurtaintextileproductnotalreadysubjecttorestraint ,itshall
seekconsaltations withtheparticipating exporting countryorcountries concerned
withaviewtoror.ovingsuch..disruption .Initsrequesttheimporting country
i?;ayindicatethespecificlevelatwhichitconsiders thatexportsofsuchproducts
shouldberestrained ,alevelwhich.shallnotbelowerthanthegenerallevel
induratedi\Annex3.Theexporting countryorcountries concernedshallrespond
promptlytosuchrequestforconsultations .'Theimporting country'srequestfor
consultations shalltoaccompanied byadetailedfactualstatement ofthe"reasons
r.ndjustification fortherequest,including thelatestdataconcerning elements
ofmarketdisruption ,thisinformation beingcoa-nuriicated atthesa.iotiaebythe
requesting countrytotheChairmanoftheTextilesSurveillance Body.
4.If,intheconsultation ,thereismutual "understaj)dingthatthesituation
callsforrestrictions ontrade-inthe'textileproduct "concerned ,"thelevelcf
restriction shallbefixedat-alevelnot.lowerthanthelevelindicated in
Annexi3.Detailsofthe.agreement reachedshallbecc:nr.:unicatedtotheTextiles
Surveillance Bodyvjhichshalldetermine whetherthe"agreementisjustified in.,
accordance withtheprovisions ofthisArrangement .

ïsx.ift /i
Page 6
5. (ijIf,however ,aftftr aperiod ofsixty days frc:r .thodate or.which' tho
request hasbeen received bythe .participating exporting country orcountries
there hasbeen noagreement either on tiicsrequest forexport restraint cron
anyalternative solution ,therequesting participating country may decline ;xo
accept imports forretention from theparticipating country orcountries
referred toinparagraph 3above ofthetextiles andtextile -,products
causing market disruption (asdefined inAnnex A)atalevel forthetwelve­
month period beginning onthedaywhen the-request wasreceived bythe
participating exporting country orcountries notless than thelevel'
provided forinAnnex B.Such level Kaybeadjusted upwards toavoid undue
hardship tothecommercial participants inthetrade involved to -theextent
possible consistent with thepurposes ofthis Article .Atthesr."e tine
thematter shall bebrought forimmediate attention totheTextiles
Surveillance Body . ...
(i.i)'However ,itshall beopen foreither party torefer thenatter to .the
Textiles Surveillance Ecdy before theexpiry oftheperiod ofsixty days .
(iii)Ineither case theTextiles Surveillance Body shall promptly conduct
theexamination ofthematter andmake appropriate recommendations tothe
parties directly concerned within thirty days from thedate onv;hich the
matter isreferred toit .Such recommordati ons shall also be'forwarded to
theTextiles Comrriit teeandtothe GA'iT Council fortheir information .Upon '
receipt ofsuch recommendations theparticipating countries concerned sheuld
review themeasures taken orcontemplated with regard totheir institution ,
continuation ,modification ordiscontinuation .
6.Inhighly unusual andcritical circumstances ,where imports of .^textile
product orproducts during theperiod ofsixty days referred toinparagraph 5.
above would cause serious market dieruption giving rise todamage difficult to
repair ,theimporting country shall request theexporting country concerned to
co-operate immediately onabilateral emergency basis toavoid such damage ,and •
shall ,attrV :;-same tine ,immediately communicate totheTextiles Surveillance
Body thefull details ofthesituation .Thecountries concerned may jaako any
mutually acceptable interim arrangement they deem necessary todeal with the
situation without prejudice toconsultations regarding thenatter under
paragraph 3ofthis Article .Intheevent that such interim arrangement isnet
reached ,temporary restraint treasures naybeapplied atalevel higher than that
indicated inAnnex Bwith aview ,inparticular ,toavoiding undue hardship to
theconwercial participants inthetrade involved .Theimporting country shall
give ,except where possibility exists ofquick delivery which would undermine
thepurpose ofsuch measure ,atleast oneweek 'sprior notification ofsuch
action totheparticipating exporting country orcountries andenter into ,or
continue ,consultations under paragraph 3ofthis Article .Vihen ameasure is
taken under this paragraph either party mayrefer themr.tter totheTextiles

ÏJJX,KG/1
Pane 7
Svvrvoillanco Dody .TheTextiles Surveillance Body filiall ,conduct itswork intho
wanner provided forinparagraph 'Jabove .Upon receipt ofreeommc .11dationsfrom
:theTextiles Surveillance Body theparticipating importing country shall review
'the ■measures taken ,andreport thereon totheTextiles Surveillance Body .
7.Ifrecourse ishadtomeasures under this Article ,participating countries .
shall ,inintroducing such measures ,seek toavoid damage totheproduction and
Marketing oftheexporting countries ,andparticularly ofthedevel oping
.countries ,andshall avoid anysuch measures taking aform that could result in
theestablishment ofadditional non-tariff barriers totrade intextile products .
They shall ,through prompt consultations ,provide forsuitable procedures ,
particularly asregards goods vhich have been ,orvhich areabout tobe,shipped.'
Intheabsence ofagreement ,thematter maybereferred to .theTextiles
Surveillance Body ,vhich shall make theappropriate recommendations .
8. 'Measures taken under this Article maybeintroduced forlimited periods not
exceeding oneyear ,subject torenewal orextension foradditional periods of
oneyear ,provided that agreement isreached between theparticipating countries
directly concerned onsuch renewal or ,extension .Insuch cases theprevisions
ofAnnex Bshall apply .Proposals forrenewal orextension ,.ormodification or
elimination oranydisagreement thereon shall besubmitted totheTextiles
Surveillance Body ,which shall make theappropriate recommendations .However ,
bilateral restraint agreements under this Article maybeconcluded forperiods
.inexcess ofoneyear inaccordance with theprovisions ofAnnex B.
9-Participating countries shall keep under review anymeasures they have taken
under this Article andshall afford anyparticipating country orcountries affected
bysuch measures ,adequate opportunity forconsultation with a'view tothe
elimination ofthemeasures assoon aspossible .They shall 0report from tin-e to
time ,andinanycase once ayear ,totheTextiles Surveillance Body ontheprogres
made inthe .elimination ofsuch measures .
Q »
Article '
1.Theparticipating countries shall fully bear inmind ,intheconduct oftheir
trade policies inthefield oftextiles ,that they are ,through theacceptance
of,oraccession to,this Arrangement ,committed toamultilateral approach in.the
search forsolutions tothedifficulties that arise inthis field . -
2.However ,participating countries may ,consistently with .thebasic objectives
andprinciples ofthis Arrangement ,conclude bilateral agreements onmutually
acceptable terms inordor,ontheonehand ,toeliminate real risks ofmarket
disruption (asdefined inAnnex A)inimporting countries anddisruption tothe
textile trade ofexporting countries ,andontheother hand toensure theexpansion
andorderly development oftrade intextiles andtheequitable treatment of
participating countries . •:

■-ÏEX.KG/1
ï'à."0 8?
3.Bilateral fcgrac&snta maintained under this article shall ,onoverr.ll terms ,
ftnoluding can .-. ."Uvaio t;r/Jf-rowth banorc liberal than raasurea provided
forinArticle 3ofthis .-.rrangDment ;Such bilateral agreements shall be -designed
undadministered tofacilitate theexport infull ofthelevels ,provided forunder
such agreements andshall include provisions assuring substantial flexibility for
thoconduct oftrade thereunder ,consistent with theneed fcrorderly expansion
ofsuch trade andconditions in ■£?.&domestic 'market ofthoimporting country
concerned .Such provi.rj onsshould encompass areas ofbass level ?:,growth ,
recognition oftheincreasing interchange-ability ofnatural ,artifical and ",
synthetic fibres ,carry forward ,carryover ,transfers from oneproduct grouping
toanother andsuch other arrangements ,asmaybemutually satisfactory tothe
parties -tosuch bilateral agreements ..
*t * . –
U-Theparticipating countries shall co"tunicate tothoTortile sSurveillance
Body full details ofagreements entered into interns ofthis Article v/ithin
thirty days oftheir affective date .TheTextiles Surveillance Body shall be
inferred promptly when anysuch agreements aremodified ordiscontinued .The
Textiles Surveillance Body r.aymake such recommendations asitdeems appropriate
totheparties concerned .
;-.rtncle 5
Restrictions onimports oftextile products under theprovisions ofArticle 3
and shall bsadministered inaflexible andequitable manner ardcvar-
eategerization shall beavoided .Participating countries shall ,inconsultation ,
provide forarrangements fortheadin.nistrati en.ofthequotas andrestraint levels ,
including theproper arrangement forallocation ofquotas among theexporters ,in
such avayastofacilitate full utilization ofsuch quotas .Theparticipating
importing country should tahe full account ofsuch factors asestablished tariff
;classification andquantitative units based onnormal corissrcial' practices in
export andimport transactions ,both ,asregards fibre composition andinterns of
competing forthesame segment ofits .domestic mar .];et.
Article 6
1.Recognising theobligations oftheparticipating countries topayspecial
attention totheneeds pfthedeveloping countries ,itshall beconsidered
appropriate andconsistent v:ith equity obligations fcrthose importing countries
v.'hich apply restrictions under this Arrangement affecting thetrade ofdeveloping
countries toprovide more favourable ter:.:s with regard tosuch restrictions ,
including elements such ascase level andgrowth rates ,than forether countries .
Inthocase ofdeveloping countries whoso exports arealready' subject to
restrictions an:'iftherestrictions areMaintained under this Arrangement ,
provisions should bemade forhigher quotas andliberal growth rates ,itshall ,
however ,beborne inmind that there should bo.no "endue prejudice totheinterests
ofestablished suppliers orserious distortion inexisting patterns oftrade .

2.Inrecognition ofthe-needforspecialtreatment forexportsoftextile
productsfro:',developing countries ,thecriterion ofpastperforranco shallnot
kii-.ppli.rjdinthec.Ktr.blir)i:-.c:;t ofrjuotr.n .forth'ylvoxp'.irts'ofproduct :;)f'ro:v.
textilesectorsinrespect "ofwhichtheyarcnov;entrantsinthemarketsconcerned
andnhighergrowthratesha.Hboaccordedtosuchexports,having .inrindthvt
thisspecialtreatment shouldnotc.vuseundueprejudice totheinteracts of
established supplier fcorcreatecerioucdistortions inexisting "patterns oftrads.
3.Itor.traintsonexportsfromparticipating countries whosototalvolumeof
textileexportsisur.c-.li:Lncomparison viththetotalvolumeofexportsof
othercountries shouldncrr.n-.lly beavoidediftheexportsfron;suchcour.tries
represent asmallpercentreofthetotalimports ,oftextiles coveredbythis/uvrnngement oftheimporting country'concerned .1 ■
/<..Whorerestriction .1;arcappliedtotrndeincottontextilesintermsof-
thisArrangement ,npoci&lconsideration willbe3irontotheimportance cfthis
tradetothedeveloping coiuitries concerned indovterinining thesizeofquotas
andthegrowthelement . ' *
'J.Participating countries shallnet,asfaraspossible,' maintainrestraints
ontradeintextileproductsoriginating inotherparticipating countries which
areimportedunderasystemoftemporary importation forre-export after .
processing ,subjecttoasatisfactory systemofcontrolandcertification .-
6.Consideration shallbegiventospecialanddifferential treatmentto
re-imports into-aparticipating countryoftextileproducts whichthstcountry
hasexportedtoanotherparticipating countryforprocessing andsubsequent re-
importation ,inthelightofthespecialnatureofsuchtradewithoutprejudice
totheprovisions of/article3.
" .I-rtic.137 ' .•
jV:eparticipating countries shalltakostopstoensure,bytheexchange
ofi/mornation,includingstatistics onimpcrtsandexportswhenrequested ,and
byotherpractical moans,theeffective operation ofthisArrangement .
-Article 8
1.Theparticipating countries agreetoavoidcircumvention ofthisArrangement
bytrans-shipment ,re--routing,oractionbynon-participaritsInparticular ,
theyagree -ontheMeasuresprovidedforinthisArticle. •'
2.Thep-.irticipating countries agreetocollaborate withaviewtotaking
appropriate administrative actiontoavoidsuchcircumvention .Shouldany
participating countrybelievethattheArrangement isbeingcircumvented end
thatnoappropriate administrative measuresarcbeingappliedtoavoidsuch

TEX .î'G/1
Page 10
circumvention ,thn.t country should consult v:itn theexporting country oforigin
andvith other countries involved inthecircumvention with aview toseeking
promptly ainutually satisfactory solution .Ifsue):e.solution dsnotreached
the flatter shall boreferred totheTextiles Surveillance Sody.
3. Trieparticipating countries agree that ifresort ishadtother.isasures
envisaged inArticles 3 A,theparticipating importing country orcountries
concerned shall take steps toensure that theparticipat ir.gcountry 'sexports
against which such measurer ,aretaken shall notberestrained mere severely
than theexperts ofsiijdlar goods ofan;/country notporty tothis Arrangement
which arecausing ,oracturJ.ly threatening ,market disruption .Theparticipating
importing country orcountries concerned will give sympathetic consideration to
anyrepresentations fror.participating everting countries totheeffect that
this principle isnotbeing adhered toorthat theoperation ofthis Arrangement
isfrustrated by -trade with countries not .party tothis Arrangement .Ifsuch
trade isfrustrating theoperation ofthis Arrangement ,theparticipating
countries shall consider taking such actions asr.aybeconsistent v;ith their lav
toprevent such frustration .
/*. Theparticipating countries concerned shall cornmunicate totheTextiles
Surveillance Body full dtails ofanymeasures orarrangements taken under this
Article oranydisagreement and ,when sorequested ,theTextiles Surveillance
Body shall ,make reports ofrecommendations asappropriate .
Article 9
1.Inview ofthesafeguard ^provided forinthis Arrangement theparticipating
countries shall ,asfaraspossible ,refrain from taking additional trade
measures which mayhave theeffect ofnullifying theobjectives ofthis Arrangement
2.Ifaparticipating country finds that itsinterests arebeing seriously
affected byanysuch measure taker ,byanother participating country ,that ccur.try
rcayrequest ,thecountry applying such measure toconsult o'ith aview toronedying
the situation . .
3.Iftheconsultation fails toachieve amutually satisfactory solution
within aperiod ofsixty days therequesting participating country nayrefer the
matter totheTextile -.}Surveillance Body which shall promptly discuss such matter ,
theparticipating country concerned being free torefer thenatter tothat body
before theexpiry oftheperiod ofsixty days ifitconsiders that there -,arc
justifiable grounds forsodoing .The .Textiles Surveillance Sody shall make
such reccr .E3or .d&tions totheparticimating countries asitconsiders appropriate.'
Article 10
1.There isestablished within theframework ofGATT aTextiles Committee
consisting ofrepresentatives oftheperties tothis Arrangement .TheCommittee
shall carry outtheresponsibilities ascribed toitunder this Arrangement .

ΤΓ,Χ.ΝΟ/1
Ρα£ε11
2.TheCo}:X:5tteushallueetfromtii-otoviir.eand<;tloru-:toncenyeartodis-
ch:-.rtf«itfif-.inotili.cn rtfttt'JtsdorilwitHtHofoOh&ttnvrt KpftQificSrD.Il ;/referredtait
'bythe'i'«x!tilcsSurveillance Body.It-shs.llpreparesuchstudiaa'c.fithe
participating countries :X.ydecide.Itshallundertake ananalysis ofthe
current,stateofworldproduction andtrade:intextilepr-ducts,including anyueaeuros'tofacilitate adjustment anditshallpresentitsviewsregarding r..oa:is
offurthering theexpansion andliberalisation .;ftradeintextileproducts .It
'willcollecttheois.bisiical nhdother .information necessary forthedischarge ofitsfunctions aridvi.l.'Lbeempowered torequesttheparticipating countries to
''furnishsuohinformation .. .
: '
3.Anyc£soofdivergence ofViewbetweentheparticipating countries antothe
interpretation orepplic&tion ofthisArrangement raybereferredtotheCcrxitts *
foritsopinion.
/(..ThoCommittee shallonce,ayearreviewtheoperation ofthis/.rrnnger.ont and
reportthereontotheGATTCouncil .ToassistAnuhisreview,theCer.ir.iittco shall
havebeforeitareportfroi.;theTextilesSurveillance Body,acopycfwhichwill
alsobetransmitted totheCouncil.Thereviewduringthethirdyearshallbea.
mjorreviewofthis^rrr.nger.en tinthelightofitsoperation inthepreceding
'years. '' . ...
■■
'j.TheCoEnitteo'shallrr.eotnotHaterthanoneyearbeforetheexpiryofthis
.Arrangement inordertoconsider whetherthe-arrangement shouldbeextended,
modified ordiscontinued . ' ■
ΛΓϋοΙβ11 '"···
1.The.Textiles .Coisnitto© shallestablish aTextilesSurveillance Bodyto
supervise theimplementation cfthis.vrrangunont .ItshallconsistcfaChairman
andeightmemberstobeappointed bythepartiestothisArrangement onabasis
tobedetermined bytheTextiles Coi-jrattee soastoensureitsefficient operation .
Inordertobeepitsrectorship balanced andbroadlyrepresentative oftheparties
tothisArrangement provision shallbe;.;adeforrotation ofthecercbersas
appropriate , ; . .
2.TheTextilesSurveillance Bodyshallbeconsidered asastanding bodyand
shallrootasnecessarytucarrycutthofunctions required J£itunderthis
Arrangement .Itshallrelyoninforationtobosupplied bytheparticipating
countries ,.supplemented byanynecessary detailsandclarification itr,aydecide
toseekfromthorn-orfro::-:othur .sources.Further,it:.nyrely.firtechnical ,
assistance onthoservices'cftheGaTTsecretariat and:;v.:yalsoheartechnical
expertsproposed byoneor:.oreofitsluembers . *
3.TheTextilesSurveillance Bodyshalltaketheactionspecifically required
ofit.inarticles ofthis.t.rrangcmeni .

'ïvrt.m/i
Parjo12
/+.Inthftabsenceofmyjnutuslly agreedsolutioninbilateral negotiations
orconsuitaLi.onsbetweenparticipating countries provided TorinthisArrangement ,
theTextilesSurveillance Bodyattherequestofeitherparty,andfollowing
athorough andpromptconsideration ofthenatter,shalln;:3;erecommendations
tothepartiesconcerned .
rj.TheTextiles Surveillance Bodyshall,attherequestofanyparticipating
country,review;promptly anyparticular measures orarrangements whichthat
countrycon;riserstobedctriner.tal toitsinterests whereconsultations betweenitandtheparticipating countries directly concerned havefailedtoproduce
asatisfactory solution .ItshallMakereconjr.ondaticns asappropriate ,tothe
participating countryorcountries concerned .
6.Beforeformulating itsreconanenr.otionsonanyparticular matterreferred
toit,theTextiles Surveillance L;cdyshallinviteparticipation ofsuch
participating countries asmaybedirectlyaffected bythematterinquestion .
7.WhentheTextilesSurveillance Bodyiscalledupontor.akerecccunendations
orfindingsitshalldoso,exceptwhen.otherwise provided inthisArrangement ,
withinaperiodofthirtydayswheneverpracticable .Allsuchrece;n:-:endaticns
orfindings shrillbecorjrunicatcd totheTextiles Cor^nittee fortheinformation
ofitsl'le.Tibei's.
8.Participating countries shallendeavour toacceptinfullthereco:.'":endatiens
oftheTextiles Surveillance Body,Whenever theyconsider themselves unableto
followany.suchreecM'oendations ,theyshallforthwith inferstheTextiles
Surveillance Bodyofthereasonstherefor andoftheextent,ifany,towhich
theyareabletofollowthereco;rr.endaticns .
O
9.If,following reco:r~.endations bytheTextilesSurveillance Body,problems
continuetoexistbetweentheparties ,thesenaybebroughtbeforethe
TexLi]csCoa:dtteeorbeforetheGATiCouncilti.roughthenormalGAIT
procedures .
10.Anyreccir^.endations andobservations oftheTextiles Surveillance Body
v.'ouJdbetakenintoaccount shouldthenattersrelatedtosuchrecommendations
andobservations subsequently bebroughtbeforetheCOKTItAGTIKG PAHTIESto
theGATT,particularly undertheprocedures ofArticle XXI11oftheGAIT.
11.TheTextilesSurveillance Bodyshall,withinfifteenmonthsofthecoraing
intoforceofthisArrangement ,andatleastannuallythereafter ,reviewall
restrictions ontextileproducts n.aintainedbyparticipating countries atthe
co)r,:iienee:.';ent ofthisArrangement ,andsubirdtitsfindingstotheTextiles
Coram!Ltee.

ΤΕΧ.;:Ο /Ι
ίο-.:13
12.ThoTextile 'sSurv/illanco' Body shall onnua'Lly rovi":;v >al1rostricxior.s intro­
duced orbi'J .;teral «;;ro«jV.:ents entered into byparticipating countries concerning
trade ?intextile product ::-cinco thocoring into forca c£this Arrant incut ,«id
required tobe..reported t?itunder theprovisions ofthin /grange ;>ont,and
report ajir.uilly itsfindings toth-Textiles Co^rdttoe . ..
$ *
Article 12
1."Forth .••.purposes ofthis Arraii^suent ,the -expression '''textiles'' 1islir-it .;C
totops ,yarns ,pijce-£oods ,K:.«k--up article :--,yeri /i-nts andother textile nar.u-
factured products (beiiv ;product.' ;.which derive "lhc:»r chi-.;f characteristics fro :"1,
tluir tevt.il ecomponent :-.)ofcotton ,woo ?..,nan-nadc fibres ,orblends thereof ,
inwhich anyorallofthose fibres incombination represent either thechief
value ofthefibres or'jOpercent or :/ieroby 1.;o:l{;ht (or17percent ori.:oro by
voiglit ofwool )ofth2product . ... •
2.Artificial andsynthetic staple fibre ,tow ,waste ,simple ,nono -and ;eulti~
i'ilrjnsnts ,arenotcovered byporayra ph1ubav .:.However .,should conditio :"::-,of
market disruption (asdefined .in'Ar.rbx A)bofound toexist forsuch products ,th
provisions ofArticle 3ofthis Arrangon-nt (andother provision ?;ofthis Arr^i ;;e
nent directly relevant thereto )andparagraph 1ofArtiole 2shall rpply .
• *
3-Thus /.rranje'jn.-ni :;hv.!Ll notapply todeveloping country exports ofha.ndloor .
fabrics ofthecottage .industry ,orhand-rjade cottage industry products nede of
such handloo ::1fabrics ,ortotraditional follnlore handicraft textil.-s products ,
provided tint such products arcprop.rly certified under errange^ents established
between ,thoimporting andexporting participating countries concc-jrned . *
. o
/*. Probia ::;-; -ofinterpret etion ofth,.provisions ofthis Article should bere-
so'lv-dbyl>iJ.ater;d consultation between ihep:\rtivs concerned andany
difficulties m-y Lvreferred tothoTextiles Surveillance :Body .
.o .. . » - . •
Artici -*.13
1.Thin /.rr?.i:gep.ont shall bed.-posited with theDirector-General tothe
CGiiTJJACTH-IG PARTIES tothe CIATT .Itshell beop.vnforacceptance ,bysignature
orotrierui ;-,.,:,bygovern' !;.ntscontracting parties totheGATT drhav.ing
provisionally acceded totheGATr -andbythe J-'.uvopean Leonora cCoix'.iunity .
2. 'An ;y;;ov,.rn;.;ent vh'icli .isnotacontractin .-.;p;j-ty toth.;C-ATT ,orhasnot
acceded provisionally totinGATT ,n*iyaccede tothis Arrangowcnt c>ntc.r;.is tobe
nj-raed be-twoen that (f;ovv.rn;.H.nt andtheprn'ticipoting countrijs .Tiiesc :terras
would ;ir.eluK ;;iprovision tljet anygovernnvnt wiiicli isnotaco!itr;:cti;v ;party ■
.totliaGATT -.lustundertake ,ono.ccedi )!^totliis /.rran^ei.ient ,notto .introduce
nov/i'::j;ort r..-:;tr.i.ctioi:s orintensify existing .inport restrictions ,ontextile
products ,J.n;;ofcrassucli action v.'ould ,ifth'.it goverr.nent l:ad b-.;7.n a
contracting pej-ty totheGATT ,beinconsistent viib itsobligations tljcrcunder .

TFX.V.C/l' . ,'
Page.1/;
.... A^lcQjeM
1.ThisArrangcihe n't.shallenterintoforce ,on1January .1974.
2.Noti/iihsLandingtheprovisions ofparagraph 1ofthisArticle,fortho
application oftheprovisions ofArticle 2,'paragraphs 2,3andUthedate
ofentryintoforceshallbo1April197/+.
•· «.ι·.
3.Uponrequestof.oneor;.:orcpartieswhichhaveaccepted oraccededto:this
Arrangement a3-ieotingshallbeheldwithinonoweekpriorto1April197/;.
Partieswhichatthetiuoofthewo.etjing h«;veaccepted oraccededtot!io
Arrangement 'naysgrcconanymodification oftriedateenvisaged inparagraph 2of
thisArticleuhicnwayappearnecessary andisconsistent withtheprovisions of
article16. .. . ' .
Article 15 '' '
Anyparticipating countrynaywithdraw frobthisArrangement uponthe
expiration ofsixtydaysfromthedayonwhichwrittennoticeofsuchwithdrawal
is'received bythyDirector-GenoraltotheCONTRACTING P/JVjTIjCStotheGAT?.
■Article.1o • '• '.•
i• .
ThisArrangement shallrer.ia.ininforceforfour.years. :
.Article .1/.. .
JheAnnexestothisArrangement constitute anintegralpartofthis
Arrangement.... - •'
DOiviSatGancvathistwentieth dayofDecember .onethousandninehundredand
seventy-threc^ina-fr.glecopyintheihglish,FrenchandSpanishlanguages ,
eachtextbeingauthentic . '/

TEX.KG /I
ía-.:13
12.TlioTextiles Sur\\-illanc o'Body shall amur-lly review allrostrxouxons intra -
cluctod orb:i.l ;terul a^rocuoritn entered into byparticipating countvi.-s concerning
tradu intextile pre .duets since thecoring into f'nrej cfthis Arrang enent ,end
required tobereported toitunder theprovisions ofthis /u'rangsn-int ,and
report annually itsfindings toth.Textiles Co'enriittee . ..
• . 4 •.
Article 12
1.Forth .••-purposes ofthis Arran -rsivsnt ,theexpression "textiles 11islirdt.x !
totops ,yarns ,pijce-goods ,rcaefc-up articles ,geru.evts andother textile nar.u-
factured products (being products which derive their cbi-.;f characteristics fro :"1,
their tv.-.ri.il Jcomponents )ofcotton ,v,'oal }r»an~nacla fibres ,orblends thereof ,
inv;hich anyorallofthose fibres incoribim-.tion represent either thechief
value ofthofibres or 'j>0percant ormore byweight (or17percent or ;.:or^by
voigbt ofwool )oftheproduct . .. •#. •
2.Artificial endsynthetic staple fibre ,tow ,.waste ,simple r.ono -ar.d r.iulti -
filajnents ,arenotcovered byparagraph 1ubov .:.However ,should conditions of
Market disruption (asdefined in'/.nrbx A)befound toexist forsuch products ,th
provisions ofArticle 3ofthis Arrangen^nt (andother -px-ovisions ofthis>ra^;;:
nent directly relevant thereto )andparagraph 1ofArticle 2shall rpply .
X • 4
3«This /;rrr.ngo'n..-nt shall notapply tod&vfcloping country exports ofhandlooi *
fabrics ofthecottage industry ,orhand-nade cottage industry products ra.de of
such handlooa fabrics ,ortotraditional folV-lore handicraft textiles products ,.'
provided that such products areprep.rly certified under errangeisents established
between theimporting andexporting participating countries concerned . '
. o
A-Probl ,ofinterpret etion ofth,.provisions ofthis Article should bere~
solved bybilateral consultation between thepartivs concerned andany
difficulties waybvreferred totheTextiles Surveillance Body .
.0.... .• * . \ •
' ■ Article 13
.L. This Arrangement shall bedepesited with the'Director-General tothe
CGiJ'J'iiACTJ.l.'G PARTIES totheGATT .Itshall boopen foracceptance ,bysignature
orotherwise ,bygovern' unts contracting parties totheGATT orhaving
provisionally ucceded totheGATxand bythejSuropean Jilcononic Coixounity ,
2. 'Anygovomaant which isnotacontracting party tox\u :GATT ,orhasnot
acceded provisionally totinGATT ,nayaccede tothis Arrangement onterms tobe
agrr.ed bolvjcen that government andtheparticipating countri m.Thesv -terr-.s
vou.l.d include ;iprovision thet anygovernnvnt which isnotacontracting party
totheGATT .oust undertake ,onacceding tothis /.rrangenent ,nottointroduce
newimport restrictions orintensify existing .import restrictions ,ontextile
products ,insofarassuch action would ,ifthat government hadb^en a
contracting party totin :GATT ,beinconsistent with itsobligations thereunder .

TFX.]':C /1
l'âge 1/,
.... -hrCxcle ."U
1.This Arrar.Gcihcirl .shall enter into force on1January I974 .
2.NotwiihK landing theprovisions ofparagraph 1ofthis Article ,fortho
application ofthe;provisions ofArticle 2,'paragraphs 2,3and /+thedate -
ofentry into force shall bo1April 197 /+.
• • é .I«.
3.Upon request of .one or ;.!oroparties which have accepted oraccedea tothis
Arrangement ameeting shall boheld within onoweek prior to1April 197 /*.
Parties whiqh atthe tif.io ofthe ;no.et.i.ng have accepted oracceded tot!io
Arrangement nayagree onanynodification ofthedate envisaged inparagraph 2of
this i-.rticlo whicn i.vnyappear necessary andisconsistent with theprovisions of
Article 16. .. ,
Ariic!!e 10
J:.r.yparticipating country naywithdraw froh this Arrangement upon tne
expiration ofsixty days fro.:i thedayonwhich written notice ofsuch withdrawal
is'received bythyDirector -Genoral tothe CGi\'T7iACTINGP/J\TI;V3 totheCIATT.
Artic'Jo ]6 • • .•
"Q
••
i'hisArrangement shall rer.ia.in inforce forfour .years . :
.Article 17 .
'J.heAnnexes tothis Arrangement constitute anintegral part ofthis
Arrangement .... • ••
D0K£ atGsncva this twentieth dayofDecember onethousand nine hundred and
seventy -thrcc ^ina"ingle copy intheEnglish ,French andSpanish languages ,
each text being authentic .

TSX.NG/1
F£r:s
...OTMA : .•• ■■••:
I._!!h'cdo.tc'r.Yjnation .ofa'.situation ofilwarket .disruption ",asreferred :to""in
this:arr'ie^aont ,..'shallby.-.-.based .onthe-,existence ofserieusdamagoto;do:nestic :
producers oractualthr-eatthereof.._Suchdanageaust.deccnstr.ably .be.caused •-by'
thefactor's'set'outin'paragraph .II..below,andnot"by.factorssuchastechnological
changesorchanges'ir/con'sur-ier .preference ,.whicharoinstrumental \in:switcb<~p "to.
llii.ocJ.-d/c'r'.directly oo-;pc'tit:i,vo *.prbdi'.cts ;iaader-by .the.capoindustry ,orsimilar
faC.tcrsV 'TheL>:'is'tcncc .c-f.d«rja£C -shall.,bo.determined onthebasisofancsxarina-
tioh'oftheappropriate factor;;havingabearing ontheevolution ofthestatecf
the.industryinquestion suchas:turnover,<rsarkot .share,profits,expert:.;
yitfformanc'o ,bmploy.icnt ;,volumeof.disruptive andotherimports,;:predu'etieir ,:•'
utilisation ofcapacity ,productivity 'andinvestments .l;;ooneorseveral ,.ofthese
factors'cannecessarily givo.decisiveguidance .;.•■.;., Jv.-'v
*. » . .•
'11'..The.factors ,censing«cr!:fctdisruption referred ,t.o.inparagraph Iaboveand
whicii"generally appearincombination areasfollows; ..:
(i)a.sharpfyidsubstantial ..increaseorii.iminent ;increaseofimports .ofapsrticiiiar
products 'fromparticular sources .Suchan-imminentincrease -shallbea•:-
Moasux-ablo 'one'andshallnotbedetermined toexistonthebasisof
allegation ,conjecture ormerepossibility arising,forexample,"from'the
•'''(pelstendoofproduction capacityintiieexporting countries ;.■ .
(n)'thoseproductsareofferedatpriceswhicharesubstarrt.iaj.Iy below ."these
prevailing forsimilargoodsofcomparable qualityinthemarketofthe
.importing country .Such..pricesshallbe,compared .bo"chwith-.thepricefor
■'thedomestic' productatconparablo stageofco;x-.orcial transaction ,r.andwith
thepriceswhichnormallyprevailforsuchproducts soldintheordinary
course .of.trade .and.underopenmarketconditions byotherexporting countries
intheimporting country..;., ■.•. •.* '
III."Inconsidering' questions of"marketdisruption 1'accountshallbetakenofthe
interests oftheexportingcountry,especially in.regardto.itsstageof.••"
development ,tiieimportance ,ofthetextilesectortotheeconomy,•the.,employment '
situation ,overallba'lohoeof.'"tradeintextiles,,trade-balancewiththeimporting "
countryconcerned 'end"overallbalanceofpayments . •.

TEX .I;G/l
l~ago .16
A!:;;EX B
1. (.'0lba]ovel below which imports oroxports oftextile products maynot
borestrained unckr thoprovisions ofArticle 3shall bothelevel ofactual
imports orexports ofsue }:products during thetwelve-month period terminating
twomonths or,whore data arenotavailable ,th_ree months preceding themonth in
which tho "request forconsul tr.tion isnnd?,or,vhere applicable .thodata of
1institution ofsuch domestic procedure relating tomarket disruption intextiles
asmayborequired bynational legislation ,ortwomonths or,vhcre data arenot
available ,three months prior tothemonth inwhich thorequest forconsultation
ismade asa.result ofsuch domestic procedure ,whichever period isthelater .•
(b)VJhore a .restraint onthe -yearly level ofexports orimports exists between
participating countries concerned ,whether provided forunder Article 2,3or4.,
covering thetwelve -Month period referred toinparagraph (a),thelevel bolev ;
which ijnports oftextile products causing market disruption maynotberestrained
under thoprovisions of .Article 3shall bethelevel provided forintherestraint
inlieu ofthelevel ofactual imports orexports during thetwelve-month period
referred toinparagraph (a).
Uhore thetwelve-month period referred toinparagraph (a)overlaps in
part with theperiod covered bytherestraint ,thelevel shall be:
(i)tholevel provided forintherestraint ,orthelevel ofactual 'its-ports
orexports ,v.'hichcver ishigher ,except incase ofovershipment ,forthe
months where theperiod covered bytherestraint andthotwelve-month period
referred toinparagraph (a)overlap ;and
(ii)thelevel ofactual imports orexperts forthemonths where nooverlap
occurs . ' • •
i
(c)Iftheperiod referred toinparagraph (a),isspecially adverse fora
particular exporting .country duetoabnormal circumstances ,the -past performance
ofimports fro ;-,tiiat country over aperiod ofyears shoulv ?netaken into account .
(d)l.'hero imports orexperts oftextile products subject torestraints were
nilornegligible during thotwelve-month period referred toinparagraph (a),a
rease .nab]eimport level totake account offuture possibilities ofthoexporting
country shall bsestablished through consultation between theparticipating
countries concerned .'' - •.
2.Should therestraint Measures remain inforce foranother twelve-month period ,
theleva ]forthat period she -11notbelover than thelevel specified forthe
preceding twelve .-month period ,increased bynotless than 6percent forproducts
under restraint .Inexceptional cases whore there areclear grounds forholding that
thesituation ofmarket disruption will recur iftheabove growth rate is

ïsc.nvi
Page17
inp3evented,alousrpositive growthratawaybodecideduponafterconsultation
withthoexpjrtin^countryorcountr .losconcerned .Inexceptional casesvhorj
participating importing countries havesrsalljcnrkets,anexceptionally highlevel
ofimportsoxdacorrespondingly lev;1evelofdomestic production andvherothe
inplsr3c-iits.tion oftheabovof;rov;thr?.tovouldcausoda-jag*tothosocountries'
irdni.'V.U'Tjviableproduction ,aleverpositive growthrat2nay.bedecideduronafter
consultation withtheexporting countryorcountries concerned .
3.Shouldtherestraint ;neasures ro:naininforesforfurtherperiods,thelevel
foreachsubsequent periodshallnotbelov;erthanthelevelspecified forthe-
preceding tv;<*lve~nonth period,increased bysix'parcent,unlessthereisfurthor
nowevidence whichdemonstrates ,inaccordance withAnnexA,thati:epio:~ontation
oftheabovegrovthratev;oulde-xacerbato thesituation ofmarketdisruption .
Inthesecircumstances ,afterconsultation withtheexporting countryconcerned ,
andreference totheTextilesdurvsillarica Bodyinaccordance -withtheprocedures
of.Article3aloverpositive growthratewaybeapplied .
U.In.theeventr.r.yrestriction orlimitation isestablished underArticle 3or4
onaproductorproducts astov.'hicharestriction or?.ij.rltaticn hadbeens\;pprr.ss:--d
inaccordanc3 vitatheprovisions ofArticle 2,suchsubsequent re5tricti.cn or.
liniteti.cn shallnotbere-establiskc dwithoutfullconsideration ofthelimits
oftrr.deprovidedforundersuchsuppressed restriction orlir:dtaticn ,
Uhererestraint isexercised forTiorethanoneproducttheparticipating
countries agreethat,providedthatthetotalexportssubjecttorestraint donot
exceedtheaggregate ?levelforallproductssorestrained (onthebasisofr.cordon
unittobedetermined bytheparticipating countries concerned),theagreedlevel
foranyoneproduct i;.-.ybeexceeded by7percentsaveinexceptionally and •
sparingly usedcircumstances wherealoverp&rconta?;c .:.:eybejustified inv;hieh
casethatlovrerpercentage shallbenotlossthan5percent.Jhererestraints are
established fornoreyearsthanone,theextentto'/hicktheictoloftherestraint
levelforor.eproductorproductgroup,nay,afterconsultation bet>.:c.-ntheparties
concerned ,beexceededineitheryearofanytvosubsequent yearsbycarryforward
and/orcarryoveris10percentofwhichcarryforwardshallr.otrepresent mere
than5percent.- . -•
6.Intheapplication oftherestraintlevelsandgrowthratesspecifiedin
paragraphs 1to3above,fullaccountshallbotakenoftheprovisions ofArticle .6. •