Mr. Ding Mou Shih December 1, 1992
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 trade
in cotton, wool, man-made fiber, silk blend and other non-cotton
vegetable fiber textile products effected by an exchange of let-
ters August 21 and September 28, 1990. I also refer to discussi-
ons between AIT and CCNAA, most recently from February 8 through
February 10, 1992. 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 noncotton ve-
getable fiber textile products.
1. This Agreement supersedes the Textile Agreement between CCNAA
and AIT of August 21 and September 28, 1990. For the sake of
clarity, it has been decided to write a new agreement to inc-
orporate all modifications which have been agreed. This agre-
ement represents the outcome of that-effort and, accordingly,
shall be the bilateral instrument which governs textile trade
between Taiwan and the United States.

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
product is of cotton, wool, man-made fiber, or silk blend or
other non-cotton vegetable fiber shall be made in accordance
with the terms of paragraph 9. The categories referred to be-
low are those described in Annex B hereto.
(a) Group I - being products other than apparel (including ya-
rn, fabric, and other made-up and miscellaneous products)
of cotton, wool, and/or man-made fibers; and luggage of s-
ilk blend and/or other non-cotton vegetable fibers (categ-
ories 200, 201, 218, 219, 220, 222, 223, 224, 225, 226, 22
7, 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, 6
24, 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 category 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, 4
36, 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, 6
54, 659, 831, 832, 833, 834, 835, 836, 838, 839, 840, 842,
843, 844, 846, 847, 850, 851, 852, 858, 859).
(c) Group III - being sweaters of other non-cotton vegetable
fibers (category 845).
(d) Products of silk blend and/or other non-cotton vegetable
fibers not covered by (a), (b) or (c) of this paragraph i-
ncluding yarn, fabrics and other made-up and miscellaneous
products of silk blend and/or other non-cotton vegetable
fibers (categories 800, 810, 863, 871 and 899).

Limits
4. (a) (i) During the term of this Agreement, CCNAA shall limit
annual exports from Taiwan of cotton, wool, man-made
fiber, and silk blend or other non-cotton vegetable
fiber textiles and textile products of Taiwan origin
to the United States Of America to the group limits,
sub-group limits, specific limits and sub-limits set
forth in Annex A-i hereto, as such limits may be adj-
usted in accordance with paragraphs 5 and 6. The gro-
ups and specific limits set out in Annex A-i are wit-
hout SUCh adjustments. All textile and textile produ-
cts in categories not Subject to specific limits may
be exported from Taiwan to the United States of Amer-
ica only in accordance with paragraph 7.
(ii) With respect to the following categories in Group I,
CCNAA shall limit annual exports from Taiwan to the
United States to the specific limits set out in Annex
A-i of the Agreement, as may be adjusted by swing, c-
arryover and carryforward: 200, 219, 313, 314, 315, 3
61, 369-S and 604. In addition, CCNAA agrees to limit
the total exports of these categories i, square mete-
rs equivalent (SME) as follows:
1992 1993 1994 1995
────── ────── ────── ─────
126,048,101 128,511,135 131,025,141 133,591,270
It is further agreed that carryover and carryforward
of three percent (of which carryover shall not exceed
one percent) shall apply to the annual levels set out
above. Group quota not used by the sub-group categor-
ies is available to the rest of the group. Group quo-
ta may be used by the sub-group categories up to the
sub-group limit, While the sub-group limit has no ca-
rryover in 1992 and no carryforward in 1995, the spe-
cific limits within the sub-group will still have av-
ailable all the flexibilities permitted under paragr-
aphs 5 and 6 of this Agreement.
(iii) With respect to the following categories in Group II,
CCNAA shall limit annual exports from Taiwan to the
United States to the specific limits set out in Annex
A-i of the Agreement as may be adjusted by,wing, spe-
cial shift, carryover and carryforward: 333/ 4/5, (33
5), 341, 342, 350/650, 351, 447/8, 636, 641, (641-y)
and 651.
In addition, CCNAA agrees to limit the total "exports
of these categories in square meters equivalent (SME)
as follows:
1992 1993 1994 1995
───── ────── ────── ──────
71,957,657 72,614,714 73,280,666 73,955,617
It is further agreed that carryover and carryforward
of three percent (of which carryover shall not exceed
one percent) shall apply to the annual levels set out
above. Group quota not used by the sub-group categor-
ies is available to the rest of the group. Group quo-
ta may be used by the Sub-group categories up to the
Subgroup limit. While the sub-group limit has no car-
ryover in 1992 and no carryforward in 1995, the spec-
ific limits within the sub-group will still have ava-
ilable all the flexibilities Permitted under paragra-
phs 5 and 6 of this Agreernent.
(b) All textile and apparel products shipped under this
Agreement for, the personal use of the importer, reg-
ardless of value, and properly marked commercial sam-
ple shipments valued at U.S. Dollars 250 or less, sh-
all not be subject to the limits in Annex A-1 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 shall not be subject
to the limits in Annex A-1.
(c) CCNAA agrees with AIT on the following provisions:
(i) to adjust its Group II limit to 755 million SME b-
eginning in 1992; and
(ii) to make adjustments to the base levels, growth ra-
tes and swing rates set forth in Annex A-i and pa-
ragraph 5 applicable to the following specific li-
mits in categories 347/348, 359-C/659-C, 633/634/6
35, (633/634), (635), 6381 639, 640, (640-Y), 642,
645/ 646, 647/648 and 659-S; and
(iii) all of the adjustments described in subparagraphs
(i) and (ii) above will be subject to review by t-
he parties at a round of consultations to be held
before the end of 1992, if possible; and
(iv) The original base levels, growth rates, and swing
rates provided for in Annex A-2 will be restored
with the exception of the base levels for Group II
and categories 640, (640-Y), and 647/648, upon ag-
reement between the parties provided that improve-
ments have been made by the authorities represent-
ed by CCNAA in the implementation of the bilateral
agreement to deal with unlawful 'circumvention (s-
uch as by way of illegal transshipment). In addit-
ion, CCNAA may request partial or total restorati-
on of the base levels for Group II and categories
640, (640-Y), and 647/648 to the levels provided
for in the exchange of letters dated August 21, 19
90 and September 28, 1990 upon the additional con-
dition that AIT is reasonably satisfied that manu-
facturers of those products on Taiwan have the ap-
propriate production capacity; and
(v) With respect to categories 347/348 and 647/648, t-
he provisions of this paragraph do not relate to
paragraph 4 (d) below.
(d) AIT and CCNAA discussed the proper classification/catego-
ry designation of fine knit form-fitting pants-type garm-
ents. The two parties agreed to amend the 1992 levels for
categories 347/348 and 64 7/648 and establish sublimits
on men's and boys' and women's and girls' woven trousers
included in 347-W/348-W and 647-W/648-W at the levels set
out in Annex A-i. The parties agree to review this issue
at the end of 1992.
Swing
5. (a) During any agreement year, the group limits set out in A-
nnex A-1 (or pursuant to an amendment thereto) as they m-
ay be adjusted under paragraph 6, may be exceeded by not
more than the following percentages:
for Group I- three percent
until 1992, five percent
beginning in 1992.
for Group II- one percent
provided that the total of the group limits of Groups I
and II is not exceeded.
(b) There will be no swing for sub-group I and sub-group II.
Group quota may be used by the sub-group categories up to
the sub-group limit. The specific limits within the sub-
group will still have available the flexibility permitted
under paragraphs 5 and 6 of this agreement.
(c) 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-i (or pursuant to an amendment
thereto) may be exceeded by not more than the percentages
set out below:
(1) For the period 1990 - 1991 the following swing is ava-
ilable:
(i) One percent for categories and sub-limits 633/4/5,
633/4, and 635.
(ii) Two and one-half percent for part-category 670-H.
(iii) Four percent for category 640 and sub-limit catego-
ry 640-Y.
(iv) Five Percent for categories, sub-limits and partca-
tegories 239, 331, 340, 341, 359-H/659-H, 369-L/670
-L/870, 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.
(2) For the period 1992 - 1995 the following swing is ava-
ilable:
(i) One Percent for sub-limits (347-W/348-W).
(ii) Two percent for category 642.
(iii) Two and one-half Percent for part-category 670-H.
(iv) Five percent for categories, sub-limits and partca-
tegories 239, 331, 340, 341, 359-W659-H, 369-L1 670
-L/870, 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 33 3/4/5,
335, 338/9, 347/8, 435, and 604.
(vi) Six and one-half percent for category 313.
(vii) No swing for categories and sub-limits 647-W/648-W,
645/6, 640, 640-Y, 845, 633/4/5, 633/4, and 635.
(viii) Seven percent for all other specific limits.
(d) Swing shall be calculated on the base limit as specif-
ied in Annex A-1.
Special Shift
(e) In addition to the adjustments pursuant to sub-paragr-
aph 5(c), the following adjustments to the specific l-
imits set out in Annex A-i are available during any a-
greement year:
(i) Category 331 may be increased by up to five percent
provided that an equivalent quantity is deducted f-
rom category 631 in the same agreement year, and v-
ice versa.
(ii) Category 336 may be increased by up to twenty perc-
ent provided that an equivalent quantity is deduct-
ed from category 636 in the same agreement year, a-
nd vice versa.
(iii) Category 338/9 may be increased by up to ten perce-
nt provided that an equivalent quantity in dozens
is deducted from category 638/9 in the same agreem-
ent year.
(iv) Category 338/9 may be increased by an additional t-
en percent provided that four times the 2nd 10 per-
cent, added to category 338/9 in dozens is deducted
from category 638/9 in the same agreement year.
(v) Category 340 may be increased by up to ten percent
provided that an equivalent quantity is deducted f-
rom category 640 in the same agreement year.
(vi) Category 341 may be increased by up to ten percent
provided that an equivalent quantity is deducted f-
rom category 641 in the same agreement year, and v-
ice versa.
(vii) Category 342 may be increased by up to twenty perc-
ent provided that an equivalent quantity is deduct-
ed from category 642 in the same agreement year, a-
nd vice versa.
(viii) Category 347/8 may be increased by up to fifteen p-
ercent provided that an equivalent quantity is. de-
ducted from category 647/8 in the same agreement y-
ear. For 1992, the total special shift available i-
nto category 347-w/348-w shall not exceed 159,740
dozen. The overall quantity of shift into category
347/348 may not exceed the quantity available to t-
he sub-limits. The amount of special shift allowed
is equal to 15 percent of the 1992 limit for 347-W/
348-W.
(ix) Category 351 may be increased by up to twenty five
percent provided that an equivalent quantity is de-
ducted from category 651 in the same agreement year
, and vice versa.
(x) The specific limit on the categories in the left-h-
and column below may be increased by the quantities
in the center column for the 1990 agreement year p-
rovided that an equivalent quantity is deducted fr-
om the corresponding upperand lower-garment catego-
ries listed in the right-hand column in the same a-
greement year. For the following agreement years (1
991-1995), the categories in the left hand column
below may be increased by the quantities in the co-
lumn for the respective agreement year provided th-
at an equivalent quantity is deducted from the cor-
responding upper and lower garment categories list-
ed in the right hand column:
1990
Cateaory Quantits(NOS) Component Garment Cateaories
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

Quantits(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, subgroup limit, specific limit or sub-l-
imit set out in Annex A-i may be exceeded in any agreeme-
nt year by carryforward and/or carryover as provided bel-
ow :
(i) In the case of any group limit or sub-group limit, to
a maximum of three percent, of which carryover shall
not rep resent more than one represent percent.
(ii) In the case of any specific limit or sub-limit except
as provided in G(a)(iii), to a maximum of two percent,
of which carryover shall not represent more than one
represent 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 c arryforward 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, subgroup limit, specif-
ic limit or sub-limit as set out in Annex A-1.
(C) Carryover and carryforward shall be calculated on the ba-
se limit of the receiving category in the receiving year
as specified in Annex A-1.
(d) Adjustments made under this paragraph are in addition to
those permitted under paragraph 5.
(e) (i) Carryforward used in 1991 by categories 347/348 and 6
47/648 will be deducted from the 1992 limits for 347-
W/348-W and 647-W/648-W respectively.
(ii) For 1992, the total carryforward available into cate-
gory 347-W/ 348-MT and 347/348 shall not exceed 21,29
9 dozen. The overall quantity of carryforward may not
exceed the quantity available to the sublimit. The a-
mount of carryforward allowed is equal to 2 % of the
1992 limit for 347-W/348-W.
(iii) For 1992, the total carryforward available into cate-
gory 647-W/648-W and 647/648 shall not exceed 104,971
dozen. The overall quantity of carryforward may not
exceed the quantity available to the sublimit. The a-
mount of carryforward allowed is equal to 2 % of the
1992 limit for 647-W/648-W,
(iv) For 1992, the total carryover available into category
347-W/348-W and 347/348 shall not exceed 10,649 dozen
. The overall quantity of carryover may not exceed t-
he quantity available to the sublimit. The amount of
carryover allowed is equal to 1% of the 1992 limit f-
or 347-W/348-W.
(v) For 1992, the total carryover available into category
647-W/648-W and 647/648 shall not exceed 52,485 dozen
. The overall quantity of carryover may not exceed t-
he quantity available to the sublimit. The amount of
arryover allowed is equal to 1% of the 1992 limit for
647W-648-W.
(vi) For 1993, the total carryover available into category
347/348 and 647/648 shall not exceed the available s-
hortfall in 347-W/348-W respectively.
(vii) For 1992, the combined carryover and carryforward sh-
all not exceed 21,299 dozen for categories 347/348,
347-W/348-W, equivalent to 2 percent of the limit for
category 347-W/348-W.
(viii) For 1992, the combined carryover and carryforward sh-
all not exceed 104,971 dozen for categories 647/648,
647-W/648-W, equivalent to 2 percent of the limit for
category 647-W/648W.

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 7(h) 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 part-category, issued for export to the Unit-
ed States for each category and part-category not su-
bject to a specific limit.
(ii) CCNAA will notify immediately whenever CCNAA will no-
tify AIT immediately whenever EC applications for any
category or part-category total 15 percent of the pr-
evious agreement year's trade within the reporting p-
eriod, provided that the issuance of such ECs would
bring the total cumulative issuances for the year to
80 percent of the previous year's trade or 66,890 sq-
uare meters equivalent for wool products and 468,231
square meters equivalent for cotton, man-made fiber,
silk blend and other non-cotton vegetable fiber prod-
ucts, whichever is higher.
(iii) CCNAA will wait at least five U.S. working days noti-
fication to AIT 1 before issuing ECs against the app-
lications 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 consultations 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 ofECs to a level different from that specifi-
ed in paragraph 7(f)(i) or (ii) below, whichever is appl-
icable. CCNAA shall consider any such request sympatheti-
cally and shall respond promptly. Unless agreed otherwise
, the CCNAA shall have the right, following the expirati-
on of the period of seven U.S. working days mentioned ab-
ove or any agreed extension thereof, to resume the issua-
nce 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 soon as possible within 30 days of the request for su-
ch consultations and shall make their best efforts to co-
mplete such consultations within 30 days of the commence-
ment.
(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, categ-
ory or part-category for the immediately preceding
agreement year plus either 15 percent of that lev-
el (in the case of cotton, man-made fiber, silk b-
lend 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 categ-
ories not listed in paragraph 7(f)(i)(c) which are
not affected by conversion to the HCC in the rele-
vant product, category or part-category for all p-
revious years since January 1, 1981 (January 1, 19
87, in the case of silk blend and other nan-cotton
vegetable fibers) plus either 15 percent of that
average level (in the case of cotton, man-made fi-
ber, silk blend and other non-cotton vegetable fi-
ber 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 cat-
egory series and other categories affected by con-
version to the HCC, in the relevant product, cate-
gory, or part-category for all previous years si-
nce January 1, 1986 (January 1, 1987 in the case
of silk blend and other non-cotton vegetable fibe-
rs), plus either 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 w-
ool products).
(D) The limit requested by AIT for the cessation of i-
ssuance of ECs in accordance with paragraph 7(e)
hereof.
(ii) Except as provided for in sub-paragraph 7(f)(iv) bel-
ow, in respect of any product, or category or part-c-
ategory where a limit has been established for a sin-
gle agreement year and where, in the immediately sub-
sequent agreement year, AIT makes another request for
consultations under sub-paragraph 7(c) of this Agree-
ment; and, in the event that such consultations do n-
ot result in agreement, AIT shall have the right to
request CCNAA to limit exports of the relevant produ-
cts during the agreement year in which the request f-
or consultations is made to a level not less than the
higher of:
(A) The limit established for the immediately precedi-
ng year plus either 8 percent of that limit (in t-
he case of cotton, man-made fiber, silk blend and
other non-cotton vegetable fiber products) or 3 p-
ercent of that limit (in the case of wool product-
s).
(B) The limit requested by AIT for the cessation of i-
ssuance 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. 7JVhere 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 li-
mit, appropriate arrangements for swing (both into a-
nd out of such category) will be made.
(v) Should two requests in respect of the same product,
category or part-category be made under paragraph 7(c
) hereof during the term of this Agreement but in di-
fferent non-consecutive agreement years, the provisi-
ons 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 17 of this Agreement.
(g) For the purposes of paragraph 7 hereof, the phrase "level
of trade" shall mean the level of trade established by c-
onsultations to be held within. the first six months aft-
er the end of each agreement year or, where such consult-
ations have not been completed, the level of trade by da-
te of export. (h) CCNAA and AIT shall consult as early as
possible with regard to problems that may arise if the p-
rovisions of paragraph 7 are invoked near the end of an
agreement year to consider the possibility of avoiding u-
ndue hardship to the trade.

8. CCNAA shall administer its export control system under this
Agreement. AIT may assist CCNAA in implementing the limitati-
on provisions of this Agreement by controlling imports of te-
xtiles 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 classified as:
(i) man-made fiber textiles, if the product is in chief w-
eight of man-made fibers, unless:
(A) the product is knitted or crocheted apparel in whi-
ch wool equals or exceeds 23 percent by weight of
all fibers, in which case the product will be a wo-
ol textile; or
(B) the product is apparel, not knitted or crocheted,
in which wool equals or exceeds 36 percent by weig-
ht 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 pro-
duct is in chief weight of cotton, unless the product
is a woven fabric in which wool equals or exceeds 36
percent by weight of all fibers, in which case the pr-
oduct will be a wool textile.
(iii) Wool textiles, if neither of the foregoing applies, a-
nd 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 c-
hief weight of silk or non-cotton vegetable fibers, u-
nless:
(A) cotton with wool and/or man-made fibers in the agg-
regate equal or exceed 50 percent by weight of the
component 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 ca-
se the product will be a cotton textile.
(B) if not covered by (iv)(A) and wool exceeds 17 perc-
ent by weight of all component fibers, in which ca-
se the product will be considered a wool textile.
(C) if not covered by (iv)(A) or (B) and man-made fibe-
rs in combination with cotton and/or wool in the a-
ggregate equal or exceed 50 percent by weight of t-
he component fibers thereof and the man-made fiber
component exceeds the weight of the total wool and/
or cotton component, in which case the product will
be considered 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 si-
lk component exceeds by weight the non-cotton vegetable
fiber component (if any). Sweaters not classified as "si-
lk blend" 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 c-
onsidered.

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, except 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-
art-categories below are merged as indicated and treated
as single categories, with limits for categories and sub
-categories as set out in Annex A-1.
Categories 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, 335 333/4/5 335
338, 339 338/9 None
347, 348 347/8 347-W/348-W
347-W, 348-W 347-W/348-W 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, 648 647/8 647-W/648-W
647-W, 648-W 647-W/648-W None
(c) For the purpose of this Agreement, the following catego-
ries summarized in Annex B are divided into part catego-
ries:
Categories Designation in Sub-categories
the Agreement
347 347-W M & B woven pants
347 347-K M & B knit pants
348 348-W M & B woven pants
348 348-K M & B knit pants
359 359-C Coveralls
359 359-H Headwear
359 359-O Other
369 369-L Luggage
369 369-S Shoptowels
369 369-O Other
647 647-W M & B woven pants
647 647-K M & B knit pants
648 648-W M & B woven pants
648 648-K M & B knit pants
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-O Luggage
670 670-L Other
(d) The following sub-limits shall be established:
Categories Designation in Sub-categories
the Agreement
640 640-Y Shirts made of yarn-
dyed fabric
614 614-Y Blouses made of yarn-
dyed fabric
347/348 347-W/348-W cotton trousers, pants
and shorts made of wo-
ven fabric
647/648 647-W/648-W man-made fiber trousers,
pants and shorts made of
woven fabric
(e) For the purpose of computing limits and charges to limi-
ts, the rates of conversion for individual categories s-
et out in annex B shall be applied, except as stated be-
low:
Category Coversion 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 and the United States of America W-
ith a view toward making appropriate adjustments to this
Agreement. Should consultation prior to implementation
not be feasible, both parties agree to consult at the r-
equest of either party at the soonest possible date, wi-
th a view toward reaching a mutually satisfactory solut-
ion 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 American during that agreement year, be charg-
ed 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 da-
ted April 18,1991, and May 1,1991, will remain in force sub-
ject 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 States.
(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 Agreement.

Spacing
14. CCNAA shall use its best efforts to space exports from Taiw-
an to the United States of America within each category or
sub-category (or combination of categories) evenly througho-
ut each agreement year, taking into consideration normal se-
asonal 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
other party to be given at least 180 days prior to the end
of such agreement year.

Rights
17. For the duration of this Agreement, AIT shall not invoke pr-
ocedures similar to that of Article 3 of the Arrangement to
request restraint on the export of cotton, wool, man-made f-
iber, silk blend and other non-cotton vegetable fiber texti-
le products from Taiwan to the United States of America. AIT
and CCNAA reserve their rights to request consultations with
respect to textiles and textile products not subject to this
Agreement.

Other Consultation Provisions
18. In addition to the consultation provisions elsewhere in this
Agreement, CCNAA and AIT 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 o-
ther any necessary assistance to avoid circumvention of this
Agreement.

This letter and your reply confirming the contents thereof on b-
ehalf of CCNAA will constitute an Agreement between AIT and CCN-
AA 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, which shall enter into
force on the date of your reply with effect from January 1,1992.
Sincerely,
(Signed)
Natale H. Bellocchi
Chairman of the Board and Managing
Director

ANNEX A-1
CURRENT QUOTA LIMITS
CATEGORY UNIT LIMIT LIMIT LIMIT
────── ── ───── ────── ─────
GROUP I SME 529,202,216,534,494,238 539,839,180

SUBGROUP I SME N/A N/A 126,048,101
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 18,290,406
361 NOS 1,125,779 1,153,923 1,182,771
363 NOS 11,612,973 11,671,083 11,729,393
369-L/670-L KGS 41,000,000 41,820,000 42,656,400
/870
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 11,396,234 11,681,140 11,973,169
5625/6/7/8/9 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

ANNEX A-1
CURRENT QUOTA LIMITS CONTINUED
METRIC 1990 1991 1992
CATEGORY UNIT LIMIT LIMIT LIMIT
───── ── ───── ────── ──────
GROUP I SME 545,237,572 550,689,948 556,196,848
SUBGROUP I SME 128,511,135 131,025,141 133,591,270
200 KG 603,521 618,609 634,074
218 SME 18,677,968 19,144,917 19,623,540
219 SME 13,735,531 14,078,919 14,430,892
225/317/326 SME 33,153,344 33,982,178 34,831,732
226 SME 6,016,273 6,166,680 6,320,847
300/301/607 KGS 1,568,518 1,592,046 1,615,927
(300 KGS 1,307,098 1,326,704 1.346,605)
(301 KGS 1,307,098 1,326,704 1.346,605)
(607 KGS 1,307,098 1,326,704 1.346,605)
313 SME 62,788,757 63,416,645 64,050,811
314 SME 24,466,622 25,078,288 25,705,245
315 SME 18,747,666 19,216,358 19,696,767
361 NOS 1,212,340 1,242,649 1,273,715
363 NOS 11,788,040 11,846,980 11,906,215
369-L/670-L KGS 43,509,528 44,379,719 45,267,313
/870
369-S KGS 470,869 473,223 475,589
604 KGS 209,311 212,451 215,638
611 SME 2,692,227 2,759,553 2,828,521
613/4/5/7 SME 16,696,924 17,114,347 17,542,206
619/20 SME 12,272,498 12,579,310 12,893,793
625/6/7/8/9 SME 15,969,418 16,368,653 16,777,870
669-P SKG 290,319 297,577 305,016
669-T KGS 943,596 967,186 991,366
670-H KGS 16,660,966 16,994,185 17,334,069

ANNEX A-1
CURRENT OUOTA LIMITS CONTINUED
METRIC 1990 1991 1992
CATEGORY UNIT LIMIT LIMIT LIMIT
───── ── ───── ────── ──────
GROUP II SME 791,383,399 799,297,233 755,000,000

SUBGROU II SME N/A N/A 71,957,657
237 DOZ 547,545 561,234 575,265
239 KGS 5,000,000 5,075,000 5,151,125
331 DPR 487,376 489,813 492,262
333/4/5 DOZ 240,000 246,000 252,150
(335 DOZ 130,000 133,250 136,581)
336 DOZ 93,287 95,619 98,009
338/9 DOZ 695,275 705,704 716,290
340 DOZ 1,110,000 1,111,110 1,112,221
341 DOZ 325,029 326,625 328,258
342 DOZ 203,029 204,044 205,064
345 DOZ 97,473 99,910 102,408
347/8 DOZ 1,059,633 1,064,931 2,339,931
(347-W/348-W DOZ N/A N/A 1,064,931)
350/650 DOZ 125,000 126,250 127,513
351 DOZ 337,772 339,461 341,158
352/652 DOZ 2,474,982 2,536,857 2,600,278
359-H/659-H KGS 4,607,852 4,630,891 4,654,045
359-C/659-C KGS 1,440,000 1,447,200 1,447,633
433 DOZ 13,935 14,074 14,215
434 DOZ 9,674 9,771 9,869
435 DOZ 22,976 23,206 23,438
436 DOZ 4,573 4,619 4,665
438 DOZ 25,821 26,079 26,340
440 DOZ 5,000 5,050 5,101
442 DOZ 43,347 43,390 43,433
443 DOZ 39,014 39,404 39,798
444 DOZ 55,563 56,119 56,680
445/6 DOZ 130,124 130,775 131,429
447/8 DOZ 19,042 19,232 19,424
631 DOZ 4,154,629 4,237,722 4,322,476
633/4/5 DOZ 1,634,440 1,634,440 1,634,440
(633/4 DOZ 959,317 959,317 959,317)
(635 DOZ 850,077 850,077 850,077)
636 DOZ 350,662 354,169 357,711
638/9 DOZ 6,592,119 6,592,119 6,565,058
640 DOZ 2,196,291 2,196,291 1,058,909
(640-Y DOZ 1,361,080 1,361,080 281,710)
641 DOZ 724,533 725,258 725,983
(64l-Y DOZ 253,586 253,840 254,094)
642 DOZ 776,357 777,133 777,133
643 NOS 464,282 468,925 473,614
644 NOS 594,004 608,854 624,075
645/6 DOZ 4,087,255 4,107,691 4,107,691
647/8 DOZ 5,707,874 5,707,874 5,473,544
(647-W/648-W DOZ N/A N/A 5,248,544
651 DOZ 423,590 425,708 427,837
659-S KGS 1,778,232 1.778,232 1,601,702
835 DOZ N/A N/A 16,400

ANNEX A-1
CURRENT QUOTA LIMITS CONTINUED
METRIC 1993 1994 1995
CATEGORY UNIT LIMIT LIMIT LIMIT
───── ── ───── ────── ──────
GROUP II SME 755,000,000 756,000,000 755,000,000
SUBGROUPII SME 72,614,714 73,280,666 73,955,617
237 DOZ 589.647 604,388 619,498
239 KGS 5,228,392 5,3O6,818 5,386,420
331 DPR 494,723 497.197 499,683
333/4/5 DOZ 258,454 264,915 271,538
(335 DOZ 139,996 143,496 147,083)
336 DOZ 100,459 102,970 105,544
338/9 DOZ 727,034 737,940 749,009
340 DOZ 1,113,333 1,114,446 1,115,560
341 DOZ 329,899 331,548 333,206
342 DOZ 206,089 207.119 208,155
345 DOZ 104,968 107,592 110,282
348/8 DOZ 1,064,931 1,064,931 1,064,931
(347-W/348-W DOZ
350/650 DOZ 128,788 130,076 131,377
351 DOZ 342,864 344,578 346,301
352/652 DOZ 2,665,285 2,731,917 2,800,215
359-H/659-H KGS 4,677,315 4,700,702 4,724,205
359-C/659-C KGS 1,447,633 1,447,633 1,447,633
433 DOZ 14,357 14,501 14,646
434 DOZ 9,968 10,068 10,269
435 DOZ 23,672 23,909 24,148
436 DOZ 4,712 4,759 4,807
438 DOZ 26,603 26,869 27,138
440 DOZ 5,152 5,204 5,256
442 DOZ 43,476 43,519 43,563
443 NOS 40,196 40,598 41,004
444 NOS 57,247 57,819 58,397
445/6 DOZ 132,086 132,747 133,410
447/8 DOZ 19,618 19,814 20,012
631 DOZ 4,408,926 4,497,105 4,587,047
633/4/5 DOZ 1,634,440 1,634,440 1,634,440
(633/4 DOZ 959,317 959,317 959,317)
(635 DOZ 850,077 850,077 850,077)
636 DOZ 361,288 364,901 368,550
638/9 DOZ 6,565,058 6,565,058 6,565,058
640 DOZ 1,058,909 1,058,909 1,058,909
(640-Y DOZ 281,710 281,710 281,710
641 DOZ 726,709 727,436 728,163
(641-Y DOZ 254,348 254,602 254,857)
642 DOZ 777,133 777,133 777,133
643 NOS 478,350 483,134 487,965
644 NOS 639,677 655,669 672,061
645/6 DOZ 4,107,691 4,107,691 4,107,691
647/8 DOZ 5,248,544 5,248,544 5,248,544
(647-W/648-W DOZ N/A N/A
651 DOZ 429,976 432,126 434,287
659-S KGS 1,601,702 1,601,702 1,601,702
835 DOZ 16,810 17,230 17,661

ANNEX A-1
CURRENT OUOTA LIMITS CONTINUED
METRIC