Representatives of the American Institute in Taiwan (AIT) and t-
he Coordination Council for North American Affairs (CCNAA) met
in Washington, D.C. on November 27 through December 1, 1989 to
discuss the bilateral textile agreement. As a result of these d-
iscussions, it was agreed that a new agreement will enter into
force on January 1, 1990. The major provisions and changes of t-
his new agreement are listed below.
(1) The term of the new agreement will be from January 1, 1990
through December 31, 1995.
(2) Exports from Taiwan to the United States will be limited as
follows :
1990 Growth
Category Base Level Rate
──── ───── ──
Group I 531,939,631 sme 1.0

(cottn, wool & man-made fiber non-apparel and category870)

200 560,429 Kg. 2.5
218 17,344,350 sm. 2.5
219 12,754,806 sm. 2.5
225/317/326 30,786,176 sm. 2.5
226 5,586,708 sm. 2.5
300/301/607 1,500,000 Kg. 1.5
(300) (1,250,000 Kg.) 1.5
(301) (1,250,000 Kg.) 1.5
(607) (1,250,000 Kg.) 1.5
313 60,942,149 sm. 1.0
314 22,719,691 sm. 2.5
315 17,409,072 sm. 2.5
361 1,125,779 nos. 2.5
363 11,612,973 nos. 0.5
369-L/670 41,000,000 Kg. 2.0
-L/870
369-S 463,876 Kg. 0.5
604 200,167 Kg. 1.5
611 2,500,000 sm. 2.5
613/614/615 15,504,754 sm.
2.5
-617
619/620 8,945,036 sm. 2.5
625/626/627/ 14,829,192 sm. 2.5
628/629
669-P 269,590 Kg. 2.5
669-T 876,222 Kg. 2.5
670-H 15,700,000 Kg. 2.0

1990 Growth
Category Base Level Rate
──── ───── ──
Group II 791,383,399 sme 1.0

(cotton, wool, man-made fiber, silk-blends and other vegetable
fibers apparel excluding category 845)

237 547,545 doz. 2.5
239 5,000,000 kg. 1.5
331 487,376 dpr. 0.5
333/334/335 240,000 doz. 2.5
(335) (130,000 doz.) 2.5
336 93,287 doz. 2.5
338/339 695,275 doz. 1.5
340 1,110,000 doz. 0.1
341 325,000 doz. 0.5
342 203,029 doz. 0.5
345 97,473 doz. 2.5
347/348 1,059,633 doz. 0.5
350/650 125,000 doz. 1.0
351 337,772 doz. 0.5
352/652 2,474,982 doz. 2.5
359-C/659-C 1,440,000 kg. 0.5
359-H/659-H 4,607,852 kg. 0.5
433 13,935 doz. 1.0
434 9,674 doz. 1.0
435 22,976 doz. 1.0
436 4,573 doz. 1.0
438 25,821 doz. 1.0
440 5,000 doz. 1.0
442 43,347 doz. 0.1
443 39,014 nos. 1.0
444 55,563 nos. 1.0
445/446 130,124 doz. 0.5
447/448 19,042 doz. 1.0
631 4,154,629 dpr. 2.0
633/634/635 1,634,440 doz. 0
(633/634) (959,317 doz.) 0
(635) (850,077 doz.) 0
636 350,662 doz. 1.0
638/639 6,592,119 doz. 0
640 2,196,291 doz. 0
(640-Y) (1,361,080 doz.) 0
641 724,533 doz. 0.1
(641-Y) (253,586 doz.) 0.1
642 776,357 doz. 0.1
643 464,282 nos. 1.0
644 594,004 nos. 2.5
645/646 4,087,255 doz. 0.5
647/648 5,707,874 doz. 0

1990 Growth
Category Base Level Rate
──── ───── ──
651 423,590 doz. 0.5
659-S 1,778,232 kg. 0
Group III
(845) 844,434 doz. 0.1

(3) In addition to the swing, carryover and carryforward provis-
ions of the current agreement, with the exception of catego-
ries 239, 359-H / 659-H, 369-L/670-L/870 and 647/648 for wh-
ich swing shall be 5 percent, and group I which shall have 3
percent swing, the following special shifts shall be availa-
ble :
-- 5 percent between categories 331 and 631
-- 20 percent between categories 336 and 636
-- 10 percent into category 338/339 from 638 / 639
-- An additional 10 percent into category 338 /339 to be paid b-
ack at a 4 to 1 ratio in dozens from 638 / 639
-- 10 percent into category 340 from 640
-- 10 percent between categories 341 and 641
-- 20 percent between categories 342 and 642
-- 15 percent into category 347/348 from 647/648
-- 25 percent between categories 351 and 651
-- for suite as provided for in 1989 as result of the adoption
of the Harmonized Code.

(4) Conversion factors to sme not in the current agreement are
listed below :

CateRory Factor
──── ───
300/301/607 8.5
333/334/335 33.75
352/652 11.3
359-C/659-C 10.1
359-H/659-H 11.5
369-L/670-L/870 3.8
638/639 12.5

(5) The provisions relating to builtin swing, the interim categ-
ory system and paragraph 18 of the current agreement will n-
ot be continued.

(6) Under the current agreement, and for 1989 only, the followi-
ng special carryforward shall be granted :

Category Amount
──── ───
347/348 21,193 doz.
351 6,755 doz.
647 52,514 doz.
648 61,644 doz.
650 2,500 doz.
651 8,472 doz.
638 35,377 doz.
639 96,465 doz.

(7) Annex C will remain the same as in the current agreement wi-
th appropriate changes to TSUSA numbers to reflect the adpt-
ion of the Harmonized Code.

(8) The issue of potential quota fraud was discussed. AIT has s-
trongly urged CCNAA to add a new antifraud and circumvention
provision to be included in the agreement. CCNAA will review
AIT's request.

(9) The migration of trade from category 229-0 to 619/620 was d-
iscussed. AIT will review the1988 export documents provided
by CCNAA and will make every effort to conclude the review
by January 31, 1990. Based on the result of this review and
after consulting with CCNAA, AIT will make the appropriate
adjustments to the specific limit for catdgory 619/620.

(10) AIT and CCNAA agree to consult on the provisions of the bi-
lateral agreement in the event that a new international re-
gime for textiles trade is agreed after the scheduled expi-
ration of the 1986 protocol of extension to the Multifiber
Arrangement on July 31, 1991 to conform the bilateral agre-
ement to the new regime.
[Signed]
FOR THE AMERICAN
INSTITUTE IN,TAIWAW

[Signed]
FOR THE COORDINATION
COUNCIL FOR NORTH
AMERICAN AFFAIRS

December 1, 1989