I Note from Mr. Natale H. Bellocchi, Chairman of the Board and
Managing Director of the American Institute in Taiwan, to Mr.
Mou-shih Ding, Representative of the Coordination Council for
North American Affairs, Office in U.S.A.
August 21, 1990
Mr. Ding Mou-Shih
Representative
Coordination Council for North American
Affairs
4301 Connecticut Avenue, NW
Suite 420
Washington, D.C. 20008
Dear Mr. Ding:
I refer to the Agreement between AIT and CCNAA relating to t-
rade in cotton, wool, man-made fiber, silk blend and other non-
cotton vegetable fiber textile products dated November 18, 1982,
extended by exchange of letters dated July 19, 1986 and subsequ-
ently amended, and further amended and extended by exchange of
letters of October 26, 1988. I also refer to discussions between
AIT and CCNAA, most recently from November 27 through December 1
, 1989. As a result of those discussions I propose, on behalf of
AIT, the following Agreement relating to trade in cotton, wool,
man-made fiber, silk blend and other non-cotton vegetalbe fiber
textile products.
1 This Agreement modifies the Textile Agreement between CCNAA a-
nd AIT dated July 19, 1986. For the sake of clarity it has be-
en decided to write a new Agreement to incorporate all modifi-
cations and extensions which have been agreed. This Agreement
represents the outcome of that effort and, accordingly, shall
be the bilateral instrument which governs textile trade betwe-
en Taiwan and the United States of America.
Term
2. (a) The term of this Agreement shall be from January 1, 1990,
through December 31, 1995, except as provided in paragra-
ph 16.
(b) An "agreement year" shall be a calendar year commencing
on January 1 and ending December 31.
Coverage and Structure
3 Textiles and textile products covered by this Agreement are as
follows. The determination of whether a textile or textile pr-
oduct is of cotton,wool, man--made fiber, or silk blend or ot-
her non-cotton vegetable fiber shall be made in accordance wi-
th the terms of parapraph 9. The categories referred to below
are those described in Annex B hereto.
(a) Group I -being products other than apparel (including yarn,
fabric,and other made-up and miscellaneous products) of cot-
ton, wool, and/or man-made fibers; and luggage of silk blend
and / or other non-cotton vegetable fibers (categories 200,
201, 218, 219, 220, 222, 223, 224, 225, 226, 227, 228, 229,
300, 301, 313, 314, 315, 317, 326, 360, 361, 362, 363, 369,
400, 410, 414, 464, 465, 469, 600, 603, 604, 606, 607, 611,
613, 614, 615, 617, 618, 619, 620, 621, 622, 624, 625, 626,
627, 628, 629, 665, 666, 669, 670, 870).
(b) Group II-being apparel of cotton, wool, man-made fiber, silk
blend and/or other non-cotton vegetable fibers except for c-
ategory 845 (categories 237, 239, 330, 331, 332, 333, 334,
335, 336, 338, 339, 340, 341, 342, 345, 347, 348, 349, 350,
351, 352, 353, 354, 359, 431, 432, 433, 434, 435, 436, 438,
439, 440, 442, 443, 444, 445, 446, 447, 448, 459, 630, 631,
632, 633, 634, 635, 636, 638, 639, 640, 641, 642, 643, 644,
645, 646, 647, 648, 649, 650, 651, 652, 653, 654, 659, 831,
832, 833, 834, 835, 836, 838, 839, 840, 842, &43, 844, 846,
847, 850, 851, 852, 858, 859,).
(c) Group III-being sweaters of other non-cotton vegetable fibe-
rs (category 845).
(d) Products of silk blend and/or other non-cotton vegetable fi-
bers not covered by (a), (b) or (c) of this paragraph incl-
uding yarn, fabrics and other made-ups and miscellaneous
products of silk blend and/ or other non-cotton vegetable f-
ibers (categories 800, 810, 863, 871 and 899).
Limits
4. (a) During the term of this Agreement, CCNAA shall limit ann-
ual exports from Taiwan of cotton, wool, man-made fiber,
and silk blend or other non-cotton vegetable fiber texti-
les and textile products of Taiwan origin to the United
States of American to the group limits, specific limits
and sub-limits set forth in Annex A hereto, as such limi-
ts may be adjusted in accordance with paragraphs 5 and 6.
The limits set out in Annex A are without such adjustmen-
ts. All textile and textile products in categories not s-
ubject to specific limits may be exported from Taiwan to
the United States of America only in accordance with pa-
ragraph 7.
(b) All textile and apparel products shipped under this Agre-
ement for the personal use of the importer, regardless of
value, and properly marked commercial sample shipments v-
alued at U.S. Dollars 250 or less, shall not be subject
to the limits in annex A or the procedures of paragraph 7
of the Agreement, nor shall they require a visa for entry
into the United States. The products listed in Annex C s-
hall not be subject to the limits in Annex A.
Swing
5. (a) During any agreem ent year, the group limits set out in A-
nnex A (or pursuant to an amendment thereto) as they may
be adjusted under paragraph 6, may be exceeded by not mo-
re than the following percentages:
for Group I--three percent
for Group II--one percent
Provide that the total of the group limit of groups I and
II is not exceeded.
(b) During any agreement year, and within the applicable gro-
up limit for such an agreement year as it may be adjusted
under paragraphs 5 (a) and 6, the specific limits and sub
-limits set out in Annex A (or pursuant to an amendment
thereto) may be exceeded by not more than the percentages
set out below:
(i) One percent for categories and sub-limits 633 / 4 / 5,
633 / 4, and 635.
(ii) Two and one-half percent for partcategories 670-H.
(iii) Four percent for category 640 and sub-limit for cate-
gory 640-Y.
(iv) Five percent for categories, sub-limits and part-cate-
gories 239, 331, 340, 341, 359-H/659-H, 369-L/670-L/87
0, 433, 434, 436, 438, 440, 442, 443, 444, 445/6, 447/
8, 638/9, 641, 641-Y, and 647 / 8.
(v) Six percent for categories and sub-limits 333 / 4 / 5,
335, 338 / 9, 347 / 8, 435, and 604.
(vi) Six and one-half percent for category 313.
(vii) No swing for categories 645/6 and 845.
(viii) Seven percent for all other specific limits.
(c) Swing shall be calculated on the base limit as specified
in Annex A.
Special Shift
(d) In addition to the adjustments pursuant to sub-paragraph
5 (b), the following adjustments to the specific limits
set out in Annex A are available during any agreement ye-
ar:
(i) Category 331 may be increased by up to five percent pr-
ovided that an equivalent quantity is deducted from ca-
tegory 631 in the same agreement year, and vice versa.
(ii) Category 336 may be increased by up to twenty percent
provided that an equivalent quantity is deducted from
category 636 in the same agreement year, and vice ver-
sa.
(iii) Category 338/9 may be increased by up to ten percent
provided that on equivalent quantity in dozens is de-
ducted from category 638/9 in the same agreement year
.
(iv) Category 338/9 may be increased by an additional ten
percent provided that four times the 2nd 10 percent,
added to category 338/9 in dozens is deducted from ca-
tegory 638 / 9 in the same agreement year.
(v) Category 340 may be increased by up to ten percent pro-
vided that an equivalent quantity is deducted from cat-
egory 640 in the same agreement year.
(vi) Category 341 may be increased by up to ten percent pr-
ovided that an equivalent quantity is deducted from c-
ategory 641 in the same agreement year, and vice versa
.
(vii) Category 342 may be increased by up to twenty percent
provided that an equivalent quantity is deducted from
category 642 in the same agreement year, and vice ve-
rsa.
(viii) Category 347/8 may be increased by up to fifteen pe-
rcent provided that an equivalent quantity is deduc-
ted from category 647/8 in the same agreement year.
(ix) Category 351 may be increased by up to twenty five pe-
rcent provided that an equivalent quantity is deducted
from category 651 in the same agreement year, and vice
versa.
(x) The specific limit on the categories in the left-hand
column below may be increased by the quantities in the
center column for the 1990 agreement year provided that
an equivalent quantity is deducted from the correspond-
ing upper- and lower-garment catgories listed in the r-
ight--hand column in the same agreement year. For the
following agreement years (1991-1995), the categories
in the left hand column below may be increased by the
quantities in the column for the respective agreement
year provided that an equivalent quantity is deducted
from the corresponding upper and lower garment categor-
ies listed in the right hand column:
1990
Category Quantity (NOS) Component Garment Categories
443 9,987 433 and 447/8
444 129,090 435 and 442 or 447/8
643 104,426 633 and 647/8
644 1,562,740 635 and 642 or 647/8
Quantity (NOS)
1991 1992 1993 1994 1995
443 10,087 10,188 10,290 10,393 10,497
444 130,381 131,685 133,002 134,332 135,675
643 105,470 106,525 107,590 108,666 109,753
644 1,601,809 1,641,854 1,682,900 1,724,973 1,768,097
Carryforward and Carryover
6. (a) Any group limit, specific limit or sub-limit set out in
Annex A may be exceeded in any agreement year by carryfo-
rward and/or carryover as provided below:
i) In the case of any group limit, to a maximum of three
percent, of which carryover shall not represent more
than one percent.
(ii) In the case of any specific limit or sub-limit except
as provided in 6 (a) (iii), to a maximum of two perce-
nt, of which carryover shall not represent more than
one percent.
(iii) In the case of categories and sub-categories 340, 633/
4/5, 633/4 and 635, carryforward of 7.15 percent.
(iv) No carryforward shall be available for application in
the final agreement year.
(b) For purposes of this Agreement, a shortfall occurs when
exports of textiles and textile products from Taiwan to
the United States of America, in any agreement year, are
below any applicable group limit, specific limit or sub-
limit as set out in Annex A.
(c) Carryover and carryforwaid shall be calculated on the ba-
se limit of the receiving category in the receiving year
as specified in Annex A.
(d) Adjustments made under this paragraph are in addition to
those permitted under paragraph 5.
Export Certification System
7. (a) Each category and part-category not subject to a specific
limit will be subject to the consultation procedures as
set forth in sub-paragraphs 7 (b) through below.
(b) (i) CCNAA shall provide weekly reports promptly (i.e., as
soon as possible but in no case later than five U.S.
working days following the close of the reporting pe-
riod) to AIT on export certifications (EC), by categ-
ory and partcategory, issued for export to the United
States for each category and part-category not subje-
ct to a specific limit.
(ii) CCNAA will notify AIT immediately whenever EC applica
-tions for any category or part category total 15 pe-
rcent of the previous agreement year's trade within
the reporting period, provided that the issuance of
such ECs would bring the total cumulative issuances
for the year to 80 percent of the previous year's tr-
ade or 66,890 square meters equivalent for wool pro-
ducts and 468,231 square meters equivalent for cotton
, man-made fiber, silk blend and other non--cotton v-
egetable fiber products, whichever is higher.
(iii) CCNAA will wait at least five U.S. working days after
notification to AIT before issuing ECs against the a-
pplications in question.
(c) AIT may request consultations with a view to agreement on
an appropriate level of restraint for any category, part-
category, or product not given a specific limit for any
agreement year whenever, in the view of AIT, conditions
in the U.S. market warrant such a limitation on further
trade in any such category, part-category, or product in
order to eliminate a real risk of market disruption.
(d) The request for such cpnsultations shall be supported as
soon as possible, and in any case within 21 days of the
date of the request, by a statement of market conditions
in the United States of America which in the opinion of
AIT make necessary the request for consultations. The st-
atement shall include data similar to that contemplated
in paragraphs 1 and 2 of Annex A of the Arrangement.
(e) Upon receipt of a request for such consultations, CCNAA,
as requested by AIT, shall cease or otherwise limit furt-
her issuance of ECs for a period of seven U.S. working d-
ays. AIT may request CCNAA to extend that period of seven
U.S. working days and may also request Taiwan to limit t-
he issuance of ECs to a level different from that specif-
ied in paragraph 7(f)(i) or (ii) below, whichever is app-
licable. CCNAA shall consider any such request sympathet-
ically and shall respond promptly. Unless agreed otherwi-
se, the CCNAA shall have the right, following the expira-
tion of the period of seven U.S. working days mentioned
above or any agreed extension thereof, to resume the iss-
uance of ECs up to the level specified in paragraph 7(f)
(i) or (ii) below, whichever is applicable.
ECs thus issued, as well as ECs issued prior to receipt
of the request for consultations, may be honored by the
issuance of export licenses by the CCNAA.
The two parties, unless otherwise agreed, shall consult as s-
oon as possible within 30 days of the request for such consu-
ltations and shall make their best efforts to complete such
consultations within 30 days of the commencement.
(f) (i) In the event that consultations do not result in agr-
eement, AIT shall have the right to request the CCNAA
to limit exports of the relevant products during the
agreement year in which the request for consultations
is made to a level not less than the highest of:
(A) The level of trade in the relevant product, catego-
ry or part-category for the immediately preceding
agreement year plus either 15 percent of that level
(in the case of cotton, man-made fiber, silk blend
and other non-cotton vegetable fiber products) or 6
percent of that level (in the case of wool products
).
(B) The average of the level of trade for those catego-
ries not listed in paragraph 7 (f) (i) (c) which a-
re not affected by conversion to the HCC in the re-
levant product, category or partcategory for all p-
revious years since January l, 1981 (Januasry 1, 19
87, in the case of silk blend and other non-cotton
vegetable fibers) plus either 15 percent of that a-
verage level (in the case of cotton, man-made fiber
, silk blend and other non-cotton vegetable fiber
products), or 6 percent of that average level (in
the case of wool products), or
(C) The average of the level of trade for the 200 cate-
gory series and other categories affeded by conver-
sion to the HCC, in the relevant product, category,
or part category for all previous years since Janu-
ary 1, 1986 (January 1, 1987 in the case of silk b-
lend and other non-cotton vegetable fiber), plus e-
ither 15 percent of that average level (in the case
of cotton, man-made fiber, silk blend and other non
-cotton vegetable fiber products), or 6 percent of
that average level (in the case of wool products).
(D) The limit requested by AIT for the cessation of is-
suance of ECs in accordance with paragraph 7(e) he-
reof.
(ii) Except as provided for in sub-paragraph 7(f)(iv) below
, in respect of any product, or category or partcateg-
ory where a limit has been established for a single a-
greement year and where, in the immediately subsequent
agreement year, AIT makes another request for consult-
ations under sub-paragraph 7(c) of this Agreement; and
, in the event that such consultations do not result
in agreement, AIT shall have the right to request CCN-
AA to limit exports of the relevant products during t-
he agreement year in which the request for consultati-
ons is made to a level not less than the higher of:
(A) The limit established for the immediately preceding
year plus either 8 percent of that limit (in the c-
ase of cotton, man-made fiber, silk blend and other
non-cotton vegetable fiber products) or 3 percent
of that limit (in the case of wool products).
(B) The limit requested by AIT for the cessation of is-
suance of ECs in accordance with subparagraph 7(e)
hereof.
(iii) Where AIT makes a request under paragraph 7(f)(i) or
(ii) hereof, CCNAA agrees that it will honor such a
request.
(iv) In respect of any product, category or part-category
for which a limit is established in any one agreement
year, either party may, prior to the start of the im-
mediately following agreement year, elect to convert
that limit into a specific limit effective as such f-
rom January 1 of the immediately following agreement
year. Where such a conversion is made, the specific
limit so created shall, from the date of effect, be
accorded growth at 2.5 percent per annum for cotton,
man-made fiber, silk blend and other non-cotton vege-
table fiber products, and one percent per annum for
wool products. The specific limit so created shall,
from the year of effect, be accorded flexibility (as
provided for in paragraph 5) at 7 percent; and in su-
bsequent years the flexibility provisions set out in
paragraph 6 of the Agreement shall also apply. In the
event a silk blend or other vegetable fiber category
under paragraph 3 (d) is converted into a specific l-
imit, appropriate arrangements for swing (both into
and out of such category) will be made.
(v) Should two requests in respect of the same product,
category or partcategory be made under paragraph 7 (c
) hereof during the term of this Agreement but in di-
fferent non-consecutive agreement years,the provisio-
ns of paragraph 7(f)(i) shall apply to the second of
the two requests.
(vi) The two parties agree that the provisions of paragra-
ph 7 hereof shall not derogate from the rights of the
two parties under paragraph 16 of this Agreement.
(g) For the purposes of paragraph 7 hereof, the phrase "
level of trade" shall mean the level of trade establ-
ished by consultations to be held within the first s-
ix months after the end of each agreement year or, w-
here such consultations have not been completed, the
level of trade by date of export.
(h) CCNAA and AIT shall consult as early as possible with
regard to problems that may arise if the provisions
of paragraph 7 are invoked near the end of an agreem-
ent year to consider the possibility of avoiding und-
ue hardship to the trade.
8 CCNAA shall administer its export control system under this A-
greement. AIT may assist CCNAA in implementing the limitation
provisions of this Agreement by controlling imports of textil-
es and textile products covered by this Agreement.
Classification
9. (a) Tops, yarns, piece goods,made-up articles, garments, and
other textile manufactured products, all being products
which derive their chief characteristics from their text-
ile components of cotton, wool, man-made fiber, silk ble-
nds, non-cotton vegetable fibers, or blends thereof, in
which any or all of those fibers in combination represent
the chief weight of the product, are subject to this Agr-
eement.
(b) For the purposes of this Agreement, textile products cov-
ered by sub-paragraph (a) above shall be classifled as:
(i) man-made fiber textiles, if the product is in chief we-
ight of man-made fibers, unless:
(A) the product is knitted or crocheted apparel in which
wool equals or exceeds 23 percent by weight of all f-
ibers, in which ease the product will be a wool text-
ile; or
(B) the product is apparel, not knitted or crocheted, in
which wool equals or exceeds 36 percent by weight of
all fibers, in which case the product will be a wool
textile; or
(C) the product is a woven fabric in which wool equals or
exceeds 36 percent by weight of all fibers, in which
case the product will be a wool textile.
(ii) Cotton textiles, if not covered by (i) and if the prod-
uct is in chief weight of cotton, unless the product is
a woven fabric in which wool equals or exceeds 36 perc-
ent by weight of all fibers, in which case the product
will be a wool textile.
(iii) Wool textiles, if neither of the foregoing applies, and
the product is in chief weight of wool.
(iv) Silk blend or non-cotton vegetable fibers textiles, if
none of the foregoing applies and the product is in ch-
ief weight of silk or non-cotton vegetable fibers, unl-
ess:
(A) cotton with wool and/or man-made fibers in the aggre-
gate equal or exceed 50 percent by weight of the com-
ponent fibers thereof and the cotton component equals
or exceeds the weight of each of the total wool and/
or man-made fiber components, in which case the prod-
uct will be a cotton textile.
(B) if not covered by (iv)(A) and wool exceeds 17 percent
by weight of all component fibers, in which case the
product will be considered a wool textile.
(C) if not covered by (iv)(A) or (B) and man-made fibers
in combination with cotton and/or wool in the aggreg-
ate equal or exceed 50 percent by weight of the comp-
onent fibers thereof and the man-made fiber component
exceeds the weight of the total wool and/or cotton c-
omponent, in which case the product will be consider-
ed a man-made fiber textile.
(c) Notwithstanding the above, garments which contain 70 per-
cent or more by weight silk (unless they also contain ov-
er 17 percent by weight wool), and products other than g-
arments which contain 85 percent or more by weight silk,
are not subject to this Agreement. Silk blend and non-co-
tton vegetable fiber sweaters, as determined above, shall
be divided into "silk blend" sweaters and "non-cotton ve-
getable fiber" sweaters. For the Purpose of this division
sweaters shall be classified as "silk blend" if the silk
component exceeds by weight the non-cotton vegetable fib-
er component (if any). Sweaters not classified as "silk
belend" sweaters in accordance with the foregoing shall
be classified as "non-cotton vegetable fiber" sweaters.
Garments containing 70 percent or more by weight silk and
over 17 percent by weight wool shall be classified as wo-
ol textiles, under subparagraph (b)(iV)(B).
(d) Coverage under this paragraph is intended to be identical
with the terms of Article 12 of the Arrangement regarding
International Trade in Textiles and in conformance with
paragraph 24 of the July 31, 1986, Protocol of Extension.
In the event of a question regarding whether a product is
covered by this Agreement by virtue of being chief weight
of cotton, wool, man-made fiber, silk blend or non-cotton
vegetable fiber, the chief value of the fibers may be co-
nsidered. Merged Categories
10. (a) The system of categories and the rates of conversion li-
sted in Annex B hereto shall apply in implementing this
Agreement, execpt as provided for in paragraph 10 hereof
.
(b) For the purpose of this Agreement and with reference to
the Particular circumstances of Taiwan's trade patterns
with the United States of America, the categories and p-
artcategories below are merged as indicated and treated
as single categories, with limits for categories and sub
-categories as set out in Annex A.
Catepories Mersged Designation in Sub-categories
the agreement
225,317,326 225/317/326 None
300,301,607 300/301/607 300;301;607
369-L,670-L,870 369-L/670-L/870 None
613,614,615,617 613/4/5/7 None
619,620 619/20 None
625,626,627,
628,629 625/6/7/8/9 None
333,334,335 334/4/5 335
338,339 338/9 None
347,348 347/8 None
350,650 350/650 None
352,652 352-652 None
359-C,659-C 359-C/659-C None
359-H,659-H 359-H/659-H None
445,446 445-6 None
447,448 447/8 None
633,634,635 633/4/5 633/4;635
638,639 638/9 None
645,646 645/6 None
647,648 647/8 None
(c) For the purpose of this Agreement, the following categor-
ies summarized in Annex B are divided into part categori-
es:
Catequory Designation in Description
the Agreement
359 359-C Coveralls
359 359-H Headwear
359 359-O Other
369 369-L Luggage
369 369-S Shoptowels
369 369-O Other
659 659-C Coveralls
659 659-H Headwear
659 659-S Swimwear
659 659-O Other
669 669-P Polypropylene bags
669 669-T Tents
669 669-O Other
670 670-H Handbags
670 670-L Luggage
670 670-O Other
(d) The following sub-limits shall be established:
Category Designation in Description
the Agreement
640 640-Y Shirts made of yarn-dyed
fabric
641 641-Y Blouses made of yarn-dyed
fabric
(e) For the purpose of computing limits and charges to limits
, the rates of conversion for individual categories set
out in Annex B shall be applied, except as stated below:
cateeory Conversion Factor
300/301/607 8.50
333/4/5 33.75
352/652 11.30
359-C/659-C 10.10
359-H/659-H 11.50
369-L/670-L/870 3.80
633/4 33.9
633/4/5 34.1
638/9 12.50
Implementation and Administration
11. (a) Changes in the implementation and interpretation of this
Agreement (such as changes in practices, rules, procedu-
res, categorization, etc.) which have the effect of ups-
etting the balance of rights and obligations between the
parties, or which affect the economic content of this A-
greement, or which affect the ability of either party to
use or benefit fully from this Agreement, or which resu-
lt in any disruption to trade shall normally be avoided.
The party initiating the relevant change shall endeavor
to consult prior to the time that such action may affect
trade between Taiwan end the United States of America
with a view toward making appropriate adjustments to th-
is Agreement. Should consultation prior to implementati-
on not be feasible, both parties agree to consult at the
request of either party at the soonest possible date, w-
ith a view toward reaching a mutually satisfactory solu-
tion within 30 days of the request.
(b) Mutually satisfactory administrative arrangements or ad-
justments may be made to resolve minor problems arising
in the implementation of this Agreement, including diff-
erences in points of procedure or operation.
(c) Exports from Taiwan in excess of authorized limits in a-
ny agreement year may be denied entry into the United S-
tates of America. Any such shipments denied entry may be
permitted entry into the United States and charged to t-
he applicable limit in the succeeding agreement year.
(d) Exports from Taiwan in excess of authorized limits in a-
ny agreement year will, if allowed entry into the United
States of America during that agreement year, be charged
to the applicable limit in the succeeding Agreement year
.
(e) AIT will notify CCNAA as soon as possible of the amount
of charges involved pursuant to sub-paragraph 11(d).
(f) Any action taken pursuant to this paragraph will not pr-
ejudice the rights of either side regarding consultatio-
ns.
Visa System
12 The visa and certification system established by letters dat-
ed August 16, 1972, September 20, 1972, end March 22, 1973,
will remain in force subject to paragraph 11(b).
Exchange of Information
13. (a) The two parties recognize that the successful implement-
ation of this Agreement depends in large part upon mutu-
al cooperation on statistical questions. AIT shall prom-
ptly supply CCNAA with data on monthly imports of cotton
, wool, man-made fiber, silk blend and other non-cotton
vegetable fiber textile products from Taiwan. CCNAA sha-
ll promptly supply AIT with pertinent data on anticipat-
ed exports in categories not subject to specific limits
and data on monthly exports of cotton, wool, man-made f-
iber, silk blend and other non-cotton vegetable fiber t-
extile products to the United Sates.
(b) Each party agrees to supply promptly any other available
statistical data necessary to the implementation of this
Agreement requested by the other party.
(c) AIT and CCNAA agree to supply to the other party inform-
ation within its possession reasonably believed to be n-
ecessary to the enforcement of this Agreeement.
Spacing
14. CCNAA shall use its best efforts to space exports from Taiw-
an to the United States of America within each category or
subcategory (or combination of categories) evenly throughout
each agreement year, taking into consideration normal seaso-
nal factors.
Equity and Extension of the Arrangement
15. (a) If, having regard to the provisions of the Arrangement (
and any extension thereof), CCNAA considers that Taiwan
is being placed in an inequitable position vis-a-vis a
third party (including in relation to any matter concer-
ning coverage under this Agreement), CCNAA may request
consultations with AIT with a view to taking appropriate
remedial action. AIT shall consult with CCNAA in the ev-
ent of such a request.
(b) Either party may request consultations following any ex-
tension of the Arrangement, with the objective of revis-
ing this Agreement to ensure conformity with the said e-
xtension should that, in either party's view, be necess-
ary.
(c) AIT and CCNAA agree to consult on the provisions of this
Agreement in the event that a new international regime
for textile trade is agreed after the scheduled expirat-
ion of the 1986 protocol of extension to the Multifiber
Arrangement on July 31, 1991, to conform this Agreement
to the new regime.
Termination
16 This Agreement may be terminated either by mutual consent of
the two parties at any time, or by either party, effective at
the end of an agreement year, upon written notice to the oth-
er party to be given at least 180 days prior to the end of s-
uch agreement year.
Rights
17 For the duration of this Agreement, AIT shall not invoke pro-
cedures similar to that of Article 3 of the Arrangement to r-
equest restraint on the export of cotton, wool, man-made fib-
er, silk blend and other non-cotton, vegetable fiber textile
products from Taiwan to the United States of America. AIT and
CCNAA reserve their rights to request consultations with res-
pect to textiles and textile products not subject to this Ag-
reement.
Other Consultation Provisions
18 In addition to the consultation provisions elsewhere in this
Agreement, CCNAA and ATT agree to consult, at the request of
either party, on any question arising in the application of
this Agreement.
19 AIT and CCNAA shall, to the extent possible, provide each ot-
her any necessary assistance to avoid circumvention of this
Agreement.
This letter and your reply confirming the contents thereof on
behalf of CCNAA will constitute an Agreement between AIT and CC-
NAA governing trade in cotton, wool, man-made fiber, silk blend
and other non-cotton vegetable fiber textile products between T-
aiwan and the United States of America during the period from J-
anuary 1, 1990, through December 31, 1995.
Sincerely,
[Signed]
Natale H. Bellocchi
Chairman of the Board
and Managing Director
ANNEX A
METRIC 1990 1991 1992
CATEGORY UNIT LIMIT LIMIT LIMIT
GROUP I SME 531,939,631 537,259,027 542,631,617
200 KG 560,429 574,440 588,801
218 SME 17,344,350 17,777,959 18,222,408
219 SME 12,754,806 13,073,676 13,400,518
225/317/326 SME 30,786,176 31,555,830 32,344,726
226 SME 5,586,708 5,726,376 5,869,535
300/301/607 KGS 1,500,000 1,522,500 1,545,338
(300 KGS 1,250,000 1,268,750 1,287,781)
(301 KGS 1,250,000 1,268,750 1,287,781)
(607 KGS 1,250,000 1,268,750 1,287,781)
313 SME 60,942,149 61,551,570 62,167,086
314 SME 22,719,691 23,287,683 23,869,875
315 SME 17,409,072 17,844,299 28,290,406
361 NOS 1,125,779 1,153,923 1,182,771
363 NOS 11,612,973 11,671,038 11,729,393
369-L/670-L/870 KGS 41,000,000 41,820,000 42,656,400
369-S KGS 463,876 466,195 468,526
604 KGS 200,167 203,170 206,218
611 SME 2,500,000 2,562,500 2,626,563
613/4/5/7 SME 15,504,754 15,892,373 16,289,682
619/20 SME 8,945,036 9,168,662 9,397,879
625/6/7/8/9 SME 14,829,192 15,199,922 15,579,920
669-P KGS 269,590 276,330 283,238
669-T KGS 876,222 898,128 920,581
670-H KGS 15,700,000 16,014,000 16,334,280