GENERAL AGREEMENT ON 27 July 1972 TARIFFS AND TRADE

Transcription

1 RESTRICTED GENERAL AGREEMENT ON 27 July 1972 TARIFFS AND TRADE Special Distribution Original: English ARRANGEMENT REGARDING INTERNATIONAL TRADE IN COTTON TEXTILES Agreement Between Canada and Hong Kong1 The following communication has been received by the Director-General from the Canadian mission for notification to the Cotton Textiles Committee. MEMORANDUM OF UNDERSTANDING This Memorandum sets out the arrangements which have been agreed between the Governments of Canada and Hong Kong regarding the limits to be applied by the Government of Hong Kong to exports of cotton yarns and fabrics, cotton towels, and certain apparel to Canada. 2. In respect of cotton yarns and cotton fabrics, the Governments of Canada and Hong Kong agree that: (a) (b) these arrangements are made having regard to the provisions of the Arrangement Regarding International Trade in Cotton Textiles; the arrangement in respect of cotton yarns relates to the period 1 September 1971 to 30 September 1972; (c) the arrangement in respect of cotton fabrics relates to the period 1 October 1971 to 30 Septembar 1972; (d) these arrangements relate to the products listed in Annex A which shall form an integral part of this Memorandum of Understanding. 3. in respect of cotton towels and cotton cabinet towelling, the Governments of Canada and Hong Kong agree that: (a) these arrangements are made under Article 3 of the Arrangement Regarding International Trade in Cotton Textiles; 3For previous agreement see COT/169

2 Page 2 (b) these arrangements relate to the period 1 October 1971 to 30 September 1972; (c) these arrangements relate to the products listed in Annex B which shall form an integral part of this Memorandum of Understanding; (d) any of the limits on the Categories 1, 2, 3 and 4 listed in Annex B may be increased bi not mcre than-10 per cent with equivalent reductions in other limits including the limit on Category 5; (e) the limit on Category 5 may be increased by the full amount of any equivalent reductions in the other limits. 4. In respect of apparel, the Governments of Canada and Hong Kong agree that: (a) (b) (c) (d) these arrangements are made having regard to the provisions of the.arrangement Regarading International Trade in Cotton Textiles, in particular to Article 3 of that Arrangement, and Article XXII(l) of the General agreement on Tariffs and Trade; these arrangements relate to the period 1 October 1971 to 30 September 1972; these arrangements relate to the products listed in Annex C which shall form, an integral part of this Memorandum of Understanding; any of the limits on the categories listed in Annex C may be increased by not more than 10 per cent, with equivalent reductions in other limits using the following conversion factors: Category No. Description Conversion factor 1 Woven-shirts sq. yd./doz. 2 Woven blouses Nightwear Trousers, slacks. and shorts Sweaters, knitted 36.8

3 5. During the twelve-month period, the group and specific category limits in Annexes A B and C may be increased by not more than 5 per cent, with equivalent reductions in the corresponding limits for the succeeding twelvemonth period if the agreement should continue after 30 September Page 3 6. During the twelve-month period, the group and specific category limits prescribed by this Memorandum may be exceeded by an amount equal to the quantity by which shipments in the twelve-month period ending 30 September 1971 have fallen short of the.group and specific category limits set out in Annexes A, B and C to the Memorandum of Understanding signed between the Governments of Canada and Hong Kong on 23 September 1970, or by 5 per cent of that group or specific category limit, whichever is the less. 7. The Government of Canada may refuse entry to imports of the items of Hong Kong origin listed in Annexes A, B and C unless such imports are covered by a Hong Kong export licence endorsed by the Commerce and Industry Department, Hong Kong, that the consignments concerned have been debited to the agreed limits. 8. The Government of Hong Kong will provide the Govornment of Canada with Monthly statistics of exports of the categories listed in Annexes A, B and C that have been licensed for export to Canada debited to the limits set out in the Annexes. The data in respect of Category 5 of Annex B shall be by product as far as is practicable. 9. The Government of Canada will provide the Government of Hong Kong, on request, with any available statistical data relevant to these arrangements. 10. The Governments of Canada and Hong Kong will enter into consultations on request about, any matter arising from or relating to these arrangements. 11. If the Government of Hong Kong considerthat, as a result of the restraint imposed by these arrangements, Hong Kong is being placed in an inequitable position vis-à-vis any third country, the Government of Hong Kong may request the Government of Canada to consult with a view to appropriate remedial action such as a reasonable modification of these arrangements.

4 Page 4 ANNEX A Cotton fabrics and certain cotton yarns subject to export restraint during the period 1 October 1971 to 30 September This Annex is to be read in conjunction with the Memorandum of Understanding dated 22 October 1971, of which it forms an integral part. Hong Kong export Limit classification Description in square No. yard 652 Woven cotton fabrics 12,015,520 Specific category ex to Cotton yarns (at 284,500 limit ex ,848 lb. converted at4.6 sq.yd. per lb. for shipment during the period 1 September 1971 to 31 September folowi1972) th iclue _ to 'Not _ to include the followiig items: 1. Grei e cheesecloth A lightweight, plain-woven cloth weighing not more than 1 oz. 2. Greige coduroy per sq.yd. A fabric which, when finished, has vertical cutpile formed by an extra system of filling yarns. 3.. Gg-a À yarn-dyed fabric, with a balanced or nearly balanced check or plaid pattern, weighing not more than 305 oz. per sq.yd. 4. Fine fabric A fabric made of 80'gle yarns, the counts of which are SOts or finer. 5. Cabinet towellimg, not terry, restrained together with cabinet towels in izmex B. 6. C (a) cotton yarns of less than 95 per cent by weight of cotton fibre; (b) yarms used in the maufacture of cotton sewing thread or Schiffli embroidery thread;

5 Page 5 (c) yarns used in the manufacture of crochet, knitted, darning or eabroidery cottons to be packaged for sale at retail for household use; (d) yarns of count seventy or finer, when imported by manufacturers for use in the manufacture of levers' lace; (e) mercerized yarns of count seventy-five and finer; (f) 2-ply yarns, with pearl twist, for use in the manufacture of torchon lace.

6 Page 6 ANNEX B Cotton towels subject to export restraint during the period 1 October 1971 to 30 September This Annex is to be read in conjunction with the Memorandum of Understanding dated 22 October 1971, of which it forms an integral Category Description Restraint limit No. in pound weight 1 Terry, jacquard 277,000 2 Terry, other than jacquard 500,000 3 Cabinet towels, and cabinet towelling 212,610 4 Industrial wiper towels Other than terry, cabinet and industrial wiper towels 230,000 TOTL 1,429,610 I.

7 ANNEX C Page 7 Apparel subject to export restraint during the period 1 October 1971 to 30 September This Annex is to be read in conjunction with the Memorandum of Understanding dated 22 October 1971, of which it forms an integral part. Hong Kong export Category classification Description Limit No. No Shirts, woven 264,700 doz O"4-137 Blouses woven, of cotton, 131,784 doz polyester and polyester/ cotton Nightwear, woven, of cotton 105,060 doz and that part of relating to infants night garments Trousers, slacks and shorts, 343,128 doz woven, of cotton, polyester and polyester/cotton Sweaters, knitted, of wool 143,000 doz and m.m.f. (including cardigans and pullovers) For the purposes of this Annex: (a) apparel items shall be classified as if each item consists wholly of that fibre which predominates by weight; (b) where two or more fibres are of equal highest weight the fibre of equal highest weight which is subject to these arrangements shall be deemed to predominate and to determine the classification of the item; provided that:

8 Page 8 (i) cotton means more than 50 per cent by weight of total fibre content being cotton; (ii) polyester means 100 per cent polyester; (iii) polyester/cotton means any blend of polyester and cotton.

9 Page 9 Letter No January 1972 Sir, I have the honour to acknowledge the receipt of your letter of 18 January 1972 reading as follows: "I refer to the recent discussions between representatives of our two Governmtents concerning the export of certain shirts from Hong Kong to Canada during the period 1 October 1971 to 30 September In the light of these discussions I propose the following amendments to our Memorandum of Understanding of 22 October 1971 (hereinafter referred to as the Memorandum) as follows: (1) The description "Woven Shirts" in Category No. 1 of paragraph 4(d) of the Memorandum be amended to read "Shirts". (2) The description and limit for Category No. 1 in Annex C to the Memorandum be amended to read: Category No. 1 i Hong Kong classification No. ex 541 ex 84l 1El ,32 Description Shirts, men's and boys' dress, work and sport, made from woven or knitted fabric, with tailored collar, front opening and long or short sleeves, and having an export price, ex factory, of less than (a) thirty Canadian Dollars per dozen, in the case of woven fabric shirts; and (b) thirtythree Canadian dollars per dozen, in the case of knitted fabric shirts. Limit 265,000 dozen' _

10 Page 10 (3) Exports of shirts made from knitted fabric and within the description in paragraph (2), licensed before 15 November 1971, shall be deemed to total 300 dozen for the purpose of calculating exports under paragraph (2) above. (4) The Government of Hong Kong will forward to the Government of Canada copies of all export licences for shirts within the description of paragraph (2) (except for export price) which are of an export price of not less than Canadian dollars 30 per dozen in respect of woven fabric shirts and not less than Canadian dollars 33 per dozen in respect of knitted fabric shirts together with the monthly statistics provided for under paragraph 8 of the Memorandum. (5) The Government ofhong Kong notes that the Canadian Authorities will determine the export price of shirts on entry into Canada in accordance with the Anti-Dumping Act of Canada. If this proposal is acceptable to the Government of Hong Kong, of its contents on behalf of the Government of this letter and your letter of acceptance Hong Kong will constitute a formal amendment to the Memorandum of Understanding of 22 October 1971 between our two Governments. Please accept, Sir, the assurances of my highest consideration." 2. I take pleasure in informing you that the Hong Kong Government confirm that the foregoing accords with their understanding of the position in this matter. 3. Please accept, Sir, the assurance of my highest consideration.

11 Page 11 Letter No. 2 9 March 1972 I wish to reer to our discussion of 9 March 1972 regarding the restraint which the Government of Hong Kong agreed to apply on the export of sweaters, cardigans and pullovers to Canada for the period 1 October September Following this agreement, you will recall that the Textile and Clothing Board issued its report respecting these goods with no recommendation for any special measures of protection. In accordance with our discussion and the recommendations of the Textile and Clothing Board, I therefore propose that item 5 of Annex "C" described as "sweaters, knitted, of wool and man-made fibre (including cardigans and pullovers)" be deleted from our Memorandum of Understanding of 22October In making this proposal, I would like to confirm that I have taken due notice of your request that in the event that restraint on this item should be re-introduced, the Canadian Governnent would take into consideration the level of the current restraint and the formula set out in sub-paragraph 1(b) of Annex "B" to the Cotton Textile Arrangement. If this proposal is acceptable to the Government of Hong Kong, this letter and your letter of acceptance of its contents on behalf of the Government of Hong Kong will constitute a formal amendment to the Memorandum of Understanding of 22 October 1971 between our two Governments.

12 Page 12 Letter No March 1972 Thank you for your letter of 9 March 1972, proposing the deletion of "sweaters, knitted, of wool and man-made fibre (including cardigans and pullovers)" to the Memorandun of Understanding of 22 October 1971, as amended. from the list of export restraints exercised by Hong Kong pursuant I have much pleasure in informing you that the Government of Hong Kong accepts this proposal, together with your suggestion that your letter of 9 9 March 1972 and this reply constitute a formal amendment to the Memorandum of Understanding of 22 Octcber 1971, as amended, between our two Governments. The Government of Hong Kong bas also noted with satisfaction the assurance in the third paragraph of your letter of 9 March 1972, that in the event that -restrsint on sweaters. should be re-introduced, the Canadian Government would take into consideration the level of such restraint previously agreed and the formula set out in sub-paragraph 1(b) of Annex D to the Cotton Textile Arrangement.