OTEXA- AGREEMENT ON TEXTILES AND CLOTHING

Members,

     Recalling that Ministers agreed at Punta del Este that
"negotiations in the area of textiles and clothing
shall aim to formulate modalities that would permit the eventual
integration of this sector into GATT on
the basis of strengthened GATT rules and disciplines, thereby
also contributing to the objective of further
liberalization of trade";

     Recalling also that in the April 1989 Decision of the Trade
Negotiations Committee it was agreed
that the process of integration should commence following the
conclusion of the Uruguay Round of
Multilateral Trade Negotiations and should be progressive in
character;

     Recalling further that it was agreed that special treatment
should be accorded to the least-developed 
country Members;

      Hereby agree as follows:


                                 Article 1

1.   This Agreement sets out provisions to be applied by Members
during a transition period for the
integration of the textiles and clothing sector into GATT 1994.

2.   Members agree to use the provisions of paragraph 18 of
Article 2 and paragraph 6(b) of Article 6
in such a way as to permit meaningful increases in access
possibilities for small suppliers and the development
of commercially significant trading opportunities for new
entrants in the field of textiles and clothing trade.

3.   Members shall have due regard to the situation of those
Members which have not accepted the
Protocols extending the Arrangement Regarding International Trade
in Textiles (referred to in this Agreement
as the "MFA") since 1986 and, to the extent possible, shall
afford them special treatment in applying the
provisions of this Agreement.

4.   Members agree that the particular interests of the
cotton-producing exporting Members should,
in consultation with them, be reflected in the implementation of
the provisions of this Agreement.

5.   In order to facilitate the integration of the textiles and
clothing sector into GATT 1994, Members
should allow for continuous autonomous industrial adjustment and
increased competition in their markets.

6.   Unless otherwise provided in this Agreement, its provisions
shall not affect the rights and obligations
of Members under the provisions of the WTO Agreement and the
Multilateral Trade Agreements.

7.   The textile and clothing products to which this Agreement
applies are set out in the Annex.


                                 Article 2

1.   All quantitative restrictions within bilateral agreements
maintained under Article 4 or notified under
Article 7 or 8 of the MFA in force on the day before the entry
into force of the WTO Agreement shall,
within 60 days following such entry into force, be notified in
detail, including the restraint levels, growth
rates and flexibility provisions, by the Members maintaining such
restrictions to the Textiles Monitoring
Body provided for in Article 8 (referred to in this Agreement as
the "TMB").  Members agree that as of
the date of entry into force of the WTO Agreement, all such
restrictions maintained between GATT 1947
contracting parties, and in place on the day before such entry
into force, shall be governed by the provisions
of this Agreement.

2.   The TMB shall circulate these notifications to all Members
for their information.  It is open to
any Member to bring to the attention of the TMB, within 60 days
of the circulation of the notifications,
any observations it deems appropriate with regard to such
notifications.  Such observations shall be circulated
to the other Members for their information.  The TMB may make
recommendations, as appropriate, to
the Members concerned.

3.   When the 12-month period of restrictions to be notified
under paragraph 1 does not coincide with
the 12-month period immediately preceding the date of entry into
force of the WTO Agreement, the Members
concerned should mutually agree on arrangements to bring the
period of restrictions into line with the
agreement year, and to establish notional base levels of such
restrictions in order to implement the provisions
of this Article.  Concerned Members agree to enter into
consultations promptly upon request with a view
to reaching such mutual agreement.  Any such arrangements shall
take into account, inter alia, seasonal
patterns of shipments in recent years.  The results of these
consultations shall be notified to the TMB, which
shall make such recommendations as it deems appropriate to the
Members concerned.

4.   The restrictions notified under paragraph 1 shall be deemed
to constitute the totality of such
restrictions applied by the respective Members on the day before
the entry into force of the WTO Agreement. 
No new restrictions in terms of products or Members shall be
introduced except under the provisions of
this Agreement or relevant GATT 1994 provisions.  Restrictions
not notified within 60 days of the date
of entry into force of the WTO Agreement shall be terminated
forthwith.

5.   Any unilateral measure taken under Article 3 of the MFA
prior to the date of entry into force of
the WTO Agreement may remain in effect for the duration specified
therein, but not exceeding 12 months,
if it has been reviewed by the Textiles Surveillance Body
(referred to in this Agreement as the "TSB")
established under the MFA.  Should the TSB not have had the
opportunity to review any such unilateral
measure, it shall be reviewed by the TMB in accordance with the
rules and procedures governing Article 3
measures under the MFA.  Any measure applied under an MFA Article
4 agreement prior to the date of
entry into force of the WTO Agreement that is the subject of a
dispute which the TSB has not had the
opportunity to review shall also be reviewed by the TMB in
accordance with the MFA rules and procedures
applicable for such a review.

6.   On the date of entry into force of the WTO Agreement, each
Member shall integrate into GATT
1994 products which accounted for not less than 16 per cent of
the total volume of the Member s 1990
imports of the products in the Annex, in terms of HS lines or
categories.  The products to be integrated
shall encompass products from each of the following four groups: 
tops and yarns, fabrics, made-up textile
products, and clothing.

7.   Full details of the actions to be taken pursuant to
paragraph 6 shall be notified by the Members
concerned according to the following:

     (a)  Members maintaining restrictions falling under
paragraph 1 undertake, notwithstanding
          the date of entry into force of the WTO Agreement, to
notify such details to the GATT
          Secretariat not later than the date determined by the
Ministerial Decision of 15 April 1994. 
          The GATT Secretariat shall promptly circulate these
notifications to the other participants
          for information.  These notifications will be made
available to the TMB, when established,
          for the purposes of paragraph 21; 

     (b)  Members which have, pursuant to paragraph 1 of Article
6, retained the right to use the
          provisions of Article 6, shall notify such details to
the TMB not later than 60 days following
          the date of entry into force of the WTO Agreement, or,
in the case of those Members
          covered by paragraph 3 of Article 1, not later than at
the end of the 12th month that the
          WTO Agreement is in effect.  The TMB shall circulate
these notifications to the other
          Members for information and review them as provided in
paragraph 21.

8.   The remaining products, i.e. the products not integrated
into GATT 1994 under paragraph 6, shall
be integrated, in terms of HS lines or categories, in three
stages, as follows:

     (a)  on the first day of the 37th month that the WTO
Agreement is in effect, products which
          accounted for not less than 17 per cent of the total
volume of the Member s 1990 imports
          of the products in the Annex.  The products to be
integrated by the Members shall
          encompass products from each of the following four
groups: tops and yarns, fabrics, made-
          up textile products, and clothing;

     (b)  on the first day of the 85th month that the WTO
Agreement is in effect, products which
          accounted for not less than 18 per cent of the total
volume of the Member s 1990 imports
          of the products in the Annex.  The products to be
integrated by the Members shall
          encompass products from each of the following four
groups:  tops and yarns, fabrics, made-
          up textile products, and clothing;

     (c)  on the first day of the 121st month that the WTO
Agreement is in effect, the textiles and
          clothing sector shall stand integrated into GATT 1994,
all restrictions under this Agreement
          having been eliminated.

9.   Members which have notified, pursuant to paragraph 1 of
Article 6, their intention not to retain
the right to use the provisions of Article 6 shall, for the
purposes of this Agreement, be deemed to have
integrated their textiles and clothing products into GATT 1994. 
Such Members shall, therefore, be exempted
from complying with the provisions of paragraphs 6 to 8 and 11.

10.  Nothing in this Agreement shall prevent a Member which has
submitted an integration programme
pursuant to paragraph 6 or 8 from integrating products into GATT
1994 earlier than provided for in such
a programme.  However, any such integration of products shall
take effect at the beginning of an agreement
year, and details shall be notified to the TMB at least three
months prior thereto for circulation to all
Members.

11.  The respective programmes of integration, in pursuance of
paragraph 8, shall be notified in detail
to the TMB at least 12 months before their coming into effect,
and circulated by the TMB to all Members.

12.  The base levels of the restrictions on the remaining
products, mentioned in paragraph 8, shall be
the restraint levels referred to in paragraph 1.

13.  During Stage 1 of this Agreement (from the date of entry
into force of the WTO Agreement to
the 36th month that it is in effect, inclusive) the level of each
restriction under MFA bilateral agreements
in force for the 12-month period prior to the date of entry into
force of the WTO Agreement shall be
increased annually by not less than the growth rate established
for the respective restrictions, increased
by 16 per cent.

14.  Except where the Council for Trade in Goods or the Dispute
Settlement Body decides otherwise
under paragraph 12 of Article 8, the level of each remaining
restriction shall be increased annually during
subsequent stages of this Agreement by not less than the
following:

     (a)  for Stage 2 (from the 37th to the 84th month that the
WTO Agreement is in effect,
          inclusive), the growth rate for the respective
restrictions during Stage 1, increased by
          25 per cent;

     (b)  for Stage 3 (from the 85th to the 120th month that the
WTO Agreement is in effect,
          inclusive), the growth rate for the respective
restrictions during Stage 2, increased by
          27 per cent.

15.  Nothing in this Agreement shall prevent a Member from
eliminating any restriction maintained
pursuant to this Article, effective at the beginning of any
agreement year during the transition period,
provided the exporting Member concerned and the TMB are notified
at least three months prior to the
elimination coming into effect.  The period for prior
notification may be shortened to 30 days with the
agreement of the restrained Member.  The TMB shall circulate such
notifications to all Members.  In
considering the elimination of restrictions as envisaged in this
paragraph, the Members concerned shall
take into account the treatment of similar exports from other
Members.

16.  Flexibility provisions, i.e. swing, carryover and carry
forward, applicable to all restrictions
maintained pursuant to this Article, shall be the same as those
provided for in MFA bilateral agreements
for the 12-month period prior to the entry into force of the WTO
Agreement.  No quantitative limits shall
be placed or maintained on the combined use of swing, carryover
and carry forward.

17.  Administrative arrangements, as deemed necessary in relation
to the implementation of any provision
of this Article, shall be a matter for agreement between the
Members concerned.  Any such arrangements
shall be notified to the TMB. 

18.  As regards those Members whose exports are subject to
restrictions on the day before the entry
into force of the WTO Agreement and whose restrictions represent
1.2 per cent or less of the total volume
of the restrictions applied by an importing Member as of 31
December 1991 and notified under this Article,
meaningful improvement in access for their exports shall be
provided, at the entry into force of the WTO
Agreement and for the duration of this Agreement, through
advancement by one stage of the growth rates
set out in paragraphs 13 and 14, or through at least equivalent
changes as may be mutually agreed with
respect to a different mix of base levels, growth and flexibility
provisions.  Such improvements shall be
notified to the TMB.

19.  In any case, during the duration of this Agreement, in which
a safeguard measure is initiated by
a Member under Article XIX of GATT 1994 in respect of a
particular product during a period of one year
immediately following the integration of that product into GATT
1994 in accordance with the provisions
of this Article, the provisions of Article XIX, as interpreted by
the Agreement on Safeguards, will apply,
save as set out in paragraph 20.

20.  Where such a measure is applied using non-tariff means, the
importing Member concerned shall
apply the measure in a manner as set forth in paragraph 2(d) of
Article XIII of GATT 1994 at the request
of any exporting Member whose exports of such products were
subject to restrictions under this Agreement
at any time in the one-year period immediately prior to the
initiation of the safeguard measure.  The exporting
Member concerned shall administer such a measure.  The applicable
level shall not reduce the relevant
exports below the level of a recent representative period, which
shall normally be the average of exports
from the Member concerned in the last three representative years
for which statistics are available. 
Furthermore, when the safeguard measure is applied for more than
one year, the applicable level shall
be progressively liberalized at regular intervals during the
period of application.  In such cases the exporting
Member concerned shall not exercise the right of suspending
substantially equivalent concessions or other
obligations under paragraph 3(a) of Article XIX of GATT 1994.

21.  The TMB shall keep under review the implementation of this
Article.  It shall, at the request of
any Member, review any particular matter with reference to the
implementation of the provisions of this
Article.  It shall make appropriate recommendations or findings
within 30 days to the Member or Members
concerned, after inviting the participation of such Members.


                                 Article 3

1.   Within 60 days following the date of entry into force of the
WTO Agreement, Members maintaining
restrictions on textile and clothing products (other than
restrictions maintained under the MFA and covered
by the provisions of Article 2), whether consistent with GATT
1994 or not, shall (a) notify them in detail
to the TMB, or (b) provide to the TMB notifications with respect
to them which have been submitted to
any other WTO body.  The notifications should, wherever
applicable, provide information with respect
to any GATT 1994 justification for the restrictions, including
GATT 1994 provisions on which they are
based.

2.   Members maintaining restrictions falling under paragraph 1,
except those justified under a GATT
1994 provision, shall either:

     (a)  bring them into conformity with GATT 1994 within one
year following the entry into force
          of the WTO Agreement, and notify this action to the TMB
for its information;  or

     (b)  phase them out progressively according to a programme
to be presented to the TMB by
          the Member maintaining the restrictions not later than
six months after the date of entry
          into force of the WTO Agreement.  This programme shall
provide for all restrictions to
          be phased out within a period not exceeding the
duration of this Agreement.  The TMB
          may make recommendations to the Member concerned with
respect to such a programme.

3.   During the duration of this Agreement, Members shall provide
to the TMB, for its information,
notifications submitted to any other WTO bodies with respect to
any new restrictions or changes in existing
restrictions on textile and clothing products, taken under any
GATT 1994 provision, within 60 days of
their coming into effect.

4.   It shall be open to any Member to make reverse notifications
to the TMB, for its information, in
regard to the GATT 1994 justification, or in regard to any
restrictions that may not have been notified
under the provisions of this Article.  Actions with respect to
such notifications may be pursued by any
Member under relevant GATT 1994 provisions or procedures in the
appropriate WTO body.

5.   The TMB shall circulate the notifications made pursuant to
this Article to all Members for their
information.  


                                 Article 4

1.   Restrictions referred to in Article 2, and those applied
under Article 6, shall be administered by
the exporting Members.  Importing Members shall not be obliged to
accept shipments in excess of the
restrictions notified under Article 2, or of restrictions applied
pursuant to Article 6.

2.   Members agree that the introduction of changes, such as
changes in practices, rules, procedures
and categorization of textile and clothing products, including
those changes relating to the Harmonized
System, in the implementation or administration of those
restrictions notified or applied under this Agreement
should not:  upset the balance of rights and obligations between
the Members concerned under this
Agreement;  adversely affect the access available to a  Member; 
impede the full utilization of such access; 
or disrupt trade under this Agreement.

3.   If a product which constitutes only part of a restriction is
notified for integration pursuant to the
provisions of Article 2, Members agree that any change in the
level of that restriction shall not upset the
balance of rights and obligations between the Members concerned
under this Agreement.

4.   When changes mentioned in paragraphs 2 and 3 are necessary,
however, Members agree that the
Member initiating such changes shall inform and, wherever
possible, initiate consultations with the affected
Member or Members prior to the implementation of such changes,
with a view to reaching a mutually
acceptable solution regarding appropriate and equitable
adjustment.  Members further agree that where
consultation prior to implementation is not feasible, the Member
initiating such changes will, at the request
of the affected Member, consult, within 60 days if possible, with
the Members concerned with a view to
reaching a mutually satisfactory solution regarding appropriate
and equitable adjustments.  If a mutually
satisfactory solution is not reached, any Member involved may
refer the matter to the TMB for
recommendations as provided in Article 8.  Should the TSB not
have had the opportunity to review a dispute
concerning such changes introduced prior to the entry into force
of the WTO Agreement, it shall be reviewed
by the TMB in accordance with the rules and procedures of the MFA
applicable for such a review.


                                 Article 5

1.   Members agree that circumvention by transshipment,
re-routing, false declaration concerning country
or place of origin, and falsification of official documents,
frustrates the implementation of this Agreement
to integrate the textiles and clothing sector into GATT 1994. 
Accordingly, Members should establish the
necessary legal provisions and/or administrative procedures to
address and take action against such
circumvention.  Members further agree that, consistent with their
domestic laws and procedures, they will
cooperate fully to address problems arising from circumvention.

2.   Should any Member believe that this Agreement is being
circumvented by transshipment, re-routing,
false declaration concerning country or place of origin, or
falsification of official documents, and that no,
or inadequate, measures are being applied to address and/or to
take action against such circumvention,
that Member should consult with the Member or Members concerned
with a view to seeking a mutually
satisfactory solution.  Such consultations should be held
promptly, and within 30 days when possible. 
If a mutually satisfactory solution is not reached, the matter
may be referred by any Member involved
to the TMB for recommendations.

3.   Members agree to take necessary action, consistent with
their domestic laws and procedures, to
prevent, to investigate and, where appropriate, to take legal
and/or administrative action against circumvention
practices within their territory.  Members agree to cooperate
fully, consistent with their domestic laws
and procedures, in instances of circumvention or alleged
circumvention of this Agreement, to establish
the relevant facts in the places of import, export and, where
applicable, transshipment.  It is agreed that
such cooperation, consistent with domestic laws and procedures,
will include:  investigation of circumvention
practices which increase restrained exports to the Member
maintaining such restraints;  exchange of
documents, correspondence, reports and other relevant information
to the extent available;  and facilitation
of plant visits and contacts, upon request and on a case-by-case
basis.  Members should endeavour to clarify
the circumstances of any such instances of circumvention or
alleged circumvention, including the respective
roles of the exporters or importers involved.

4.   Where, as a result of investigation, there is sufficient
evidence that circumvention has occurred
(e.g. where evidence is available concerning the country or place
of true origin, and the circumstances
of such circumvention), Members agree that appropriate action, to
the extent necessary to address the
problem, should be taken.  Such action may include the denial of
entry of goods or, where goods have
entered, having due regard to the actual circumstances and the
involvement of the country or place of true
origin, the adjustment of charges to restraint levels to reflect
the true country or place of origin.  Also,
where there is evidence of the involvement of the territories of
the Members through which the goods have
been transshipped, such action may include the introduction of
restraints with respect to such Members. 
Any such actions, together with their timing and scope, may be
taken after consultations held with a view
to arriving at a mutually satisfactory solution between the
concerned Members and shall be notified to the
TMB with full justification.  The Members concerned may agree on
other remedies in consultation.  Any
such agreement shall also be notified to the TMB, and the TMB may
make such recommendations to the
Members concerned as it deems appropriate.  If a mutually
satisfactory solution is not reached, any Member
concerned may refer the matter to the TMB for prompt review and
recommendations.

5.   Members note that some cases of circumvention may involve
shipments transiting through countries
or places with no changes or alterations made to the goods
contained in such shipments in the places of
transit.  They note that it may not be generally practicable for
such places of transit to exercise control
over such shipments.

6.   Members agree that false declaration concerning fibre
content, quantities, description or classification
of merchandise also frustrates the objective of this Agreement. 
Where there is evidence that any such false
declaration has been made for purposes of circumvention, Members
agree that appropriate measures,
consistent with domestic laws and procedures, should be taken
against the exporters or importers involved. 
Should any Member believe that this Agreement is being
circumvented by such false declaration and that
no, or inadequate, administrative measures are being applied to
address and/or to take action against such
circumvention, that Member should consult promptly with the
Member involved with a view to seeking
a mutually satisfactory solution.  If such a solution is not
reached, the matter may be referred by any 
Member involved to the TMB for recommendations.  This provision
is not intended to prevent Members
from making technical adjustments when inadvertent errors in
declarations have been made.


                                 Article 6

1.   Members recognize that during the transition period it may
be necessary to apply a specific
transitional safeguard mechanism (referred to in this Agreement
as "transitional safeguard").  The transitional
safeguard may be applied by any Member to products covered by the
Annex, except those integrated into
GATT 1994 under the provisions of Article 2.  Members not
maintaining restrictions falling under Article 2
shall notify the TMB within 60 days following the date of entry
into force of the WTO Agreement, as
to whether or not they wish to retain the right to use the
provisions of this Article.  Members which have
not accepted the Protocols extending the MFA since 1986  shall
make such notification within 6 months
following the entry into force of the WTO Agreement.  The
transitional safeguard should be applied as
sparingly as possible, consistently with the provisions of this
Article and the effective implementation of
the integration process under this Agreement.

2.   Safeguard action may be taken under this Article when, on
the basis of a determination by a Member,
it is demonstrated that a particular product is being imported
into its territory in such increased quantities
as to cause serious damage, or actual threat thereof, to the
domestic industry producing like and/or directly
competitive products.  Serious damage or actual threat thereof
must demonstrably be caused by such increased
quantities in total imports of that product and not by such other
factors as technological changes or changes
in consumer preference.

3.   In making a determination of serious damage, or actual
threat thereof, as referred to in paragraph 2,
the Member shall examine the effect of those imports on the state
of the particular industry, as reflected
in changes in such relevant economic variables as output,
productivity, utilization of capacity, inventories,
market share, exports, wages, employment, domestic prices,
profits and investment; none of which, either
alone or combined with other factors, can necessarily give
decisive guidance.

4.   Any measure invoked pursuant to the provisions of this
Article shall be applied on a Member-by-
Member basis.  The Member or Members to whom serious damage, or
actual threat thereof, referred to
in paragraphs 2 and  3, is attributed, shall be determined on the
basis of a sharp and substantial increase
in imports, actual or imminent, from such a Member or Members
individually, and on the basis of the
level of imports as compared with imports from other sources,
market share, and import and domestic
prices at a comparable stage of commercial transaction;  none of
these factors, either alone or combined
with other factors, can necessarily give decisive guidance.  Such
safeguard measure shall not be applied
to the exports of any Member whose exports of the particular
product are already under restraint under
this Agreement.

5.   The period of validity of a determination of serious damage
or actual threat thereof for the purpose
of invoking safeguard action shall not exceed 90 days from the
date of initial notification as set forth in
paragraph 7.

6.   In the application of the transitional safeguard, particular
account shall be taken of the interests
of exporting Members as set out below:

     (a)  least-developed country Members shall be accorded
treatment significantly more favourable
          than that provided to the other groups of Members
referred to in this paragraph, preferably
          in all its elements but, at least, on overall terms;

     (b)  Members whose total volume of textile and clothing
exports is small in comparison with
          the total volume of exports of other Members and who
account for only a small percentage
          of total imports of that product into the importing
Member shall be accorded differential
          and more favourable treatment in the fixing of the
economic terms provided in paragraphs
          8, 13 and 14.  For those suppliers, due account will be
taken, pursuant to paragraphs 2
          and 3 of Article 1, of the future possibilities for the
development of their trade and the
          need to allow commercial quantities of imports from
them;

     (c)  with respect to wool products from wool-producing
developing country Members whose
          economy and textiles and clothing trade are dependent
on the wool sector, whose total textile
          and clothing exports consist almost exclusively of wool
products, and whose volume of
          textiles and clothing trade is comparatively small in
the markets of the importing Members,
          special consideration shall be given to the export
needs of such Members when considering
          quota levels, growth rates and flexibility;

     (d)  more favourable treatment shall be accorded to
re-imports by a Member of textile and
          clothing products which that Member has exported to
another Member for processing and
          subsequent reimportation, as defined by the laws and
practices of the importing Member,
          and subject to satisfactory control and certification
procedures, when these products are
          imported from a Member for which this type of trade
represents a significant proportion
          of its total exports of textiles and clothing.

7.   The Member proposing to take safeguard action shall seek
consultations with the Member or Members
which would be affected by such action.  The request for
consultations shall be accompanied by specific
and relevant factual information, as up-to-date as possible,
particularly in regard to:  (a) the factors, referred
to in paragraph 3, on which the Member invoking the action has
based its determination of the existence
of serious damage or actual threat thereof;  and (b) the factors,
referred to in paragraph 4, on the basis
of which it proposes to invoke the safeguard action with respect
to the Member or Members concerned. 
In respect of requests made under this paragraph, the information
shall be related, as closely as possible,
to identifiable segments of production and to the reference
period set out in paragraph 8.  The Member
invoking the action shall also indicate the specific level at
which imports of the product in question from
the Member or Members concerned are proposed to be restrained; 
such level shall not be lower than the
level referred to in paragraph 8.  The Member seeking
consultations shall, at the same time, communicate
to the Chairman of the TMB the request for consultations,
including all the relevant factual data outlined
in paragraphs 3 and 4, together with the proposed restraint
level.  The Chairman shall inform the members
of the TMB of the request for consultations, indicating the
requesting Member, the product in question
and the Member having received the request.  The Member or
Members concerned shall respond to this
request promptly and the consultations shall be held without
delay and normally be completed within 60 days
of the date on which the request was received.

8.   If, in the consultations, there is mutual understanding that
the situation calls for restraint on the
exports of the particular product from the Member or Members
concerned, the level of such restraint shall
be fixed at a level not lower than the actual level of exports or
imports from the Member concerned during
the 12-month period terminating two months preceding the month in
which the request for consultation
was made.  

9.   Details of the agreed restraint measure shall be
communicated to the TMB within 60 days from
the date of conclusion of the agreement.  The TMB shall determine
whether the agreement is justified in
accordance with the provisions of this Article.  In order to make
its determination, the TMB shall have
available to it the factual data provided to the Chairman of the
TMB, referred to in paragraph 7, as well
as any other relevant information provided by the Members
concerned.  The TMB may make such
recommendations as it deems appropriate to the Members concerned.

10.  If, however, after the expiry of the period of 60 days from
the date on which the request for
consultations was received, there has been no agreement between
the Members, the Member which proposed
to take safeguard action may apply the restraint by date of
import or date of export, in accordance with
the provisions of this Article, within 30 days following the
60-day period for consultations, and at the same
time refer the matter to the TMB.  It shall be open to either
Member to refer the matter to the TMB before
the expiry of the period of 60 days.  In either case, the TMB
shall promptly conduct an examination of
the matter, including the determination of serious damage, or
actual threat thereof, and its causes, and
make appropriate recommendations to the Members concerned within
30 days.  In order to conduct such
examination, the TMB shall have available to it the factual data
provided to the Chairman of the TMB,
referred to in paragraph 7, as well as any other relevant
information provided by the Members concerned.

11.  In highly unusual and critical circumstances, where delay
would cause damage which would be
difficult to repair, action under paragraph 10 may be taken
provisionally on the condition that the request
for consultations and notification to the TMB shall be effected
within no more than five working days after
taking the action.  In the case that consultations do not produce
agreement, the TMB shall be notified at
the conclusion of consultations, but in any case no later than 60
days from the date of the implementation
of the action.  The TMB shall promptly conduct an examination of
the matter, and make appropriate
recommendations to the Members concerned within 30 days.  In the
case that consultations do produce
agreement, Members shall notify the TMB upon conclusion but, in
any case, no later than 90 days from
the date of the implementation of the action.  The TMB may make
such recommendations as it deems
appropriate to the Members concerned.

12.  A Member may maintain measures invoked pursuant to the
provisions of this Article: (a) for up
to three years without extension, or (b) until the product is
integrated into GATT 1994, whichever comes
first.

13.  Should the restraint measure remain in force for a period
exceeding one year, the level for subsequent
years shall be the level specified for the first year increased
by a growth rate of not less than 6 per cent
per annum, unless otherwise justified to the TMB.  The restraint
level for the product concerned may be
exceeded in either year of any two subsequent years by carry
forward and/or carryover of 10 per cent of
which carry forward shall not represent more than 5 per cent.  No
quantitative limits shall be placed on
the combined use of carryover, carry forward and the provision of
paragraph 14.

14.  When more than one product from another Member is placed
under restraint under this Article
by a Member, the level of restraint agreed, pursuant to the
provisions of this Article, for each of these
products may be exceeded by 7 per cent, provided that the total
exports subject to restraint do not exceed
the total of the levels for all products so restrained under this
Article, on the basis of agreed common units. 
Where the periods of application of restraints of these products
do not coincide with each other, this provision
shall be applied to any overlapping period on a pro rata basis.

15.  If a safeguard action is applied under this Article to a
product for which a restraint was previously
in place under the MFA during the 12-month period prior to the
entry into force of the WTO Agreement,
or pursuant to the provisions of Article 2 or 6, the level of the
new restraint shall be the level provided
for in paragraph 8 unless the new restraint comes into force
within one year of:

     (a)  the date of notification referred to in paragraph 15 of
Article 2 for the elimination of the
          previous restraint;  or

     (b)  the date of removal of the previous restraint put in
place pursuant to the provisions of this
          Article or of the MFA

in which case the level shall not be less than the higher of (i)
the level of restraint for the last 12-month
period during which the product was under restraint, or (ii) the
level of restraint provided for in paragraph 8.

16.  When a Member which is not maintaining a restraint under
Article 2 decides to apply a restraint
pursuant to the provisions of this Article, it shall establish
appropriate arrangements which:  (a) take full
account of such factors as established tariff classification and
quantitative units based on normal commercial
practices in export and import transactions, both as regards
fibre composition and in terms of competing
for the same segment of its domestic market, and (b) avoid
over-categorization.  The request for consultations
referred to in paragraphs 7 or 11 shall include full information
on such arrangements.


                                 Article 7

1.   As part of the integration process and with reference to the
specific commitments undertaken by
the Members as a result of the Uruguay Round, all Members shall
take such actions as may be necessary
to abide by GATT 1994 rules and disciplines so as to:

     (a)  achieve improved access to markets for textile and
clothing products through such measures
          as tariff reductions and bindings, reduction or
elimination of non-tariff barriers, and
          facilitation of customs, administrative and licensing
formalities; 

     (b)  ensure the application of policies relating to fair and
equitable trading conditions as regards
          textiles and clothing in such areas as dumping and
anti-dumping rules and procedures,
          subsidies and countervailing measures, and protection
of intellectual property rights; and

     (c)  avoid discrimination against imports in the textiles
and clothing sector when taking measures
          for general trade policy reasons.

Such actions shall be without prejudice to the rights and
obligations of Members under GATT 1994.

2.   Members shall notify to the TMB the actions referred to in
paragraph 1 which have a bearing on
the implementation of this Agreement.  To the extent that these
have been notified to other WTO bodies,
a summary, with reference to the original notification, shall be
sufficient to fulfil the requirements under
this paragraph.  It shall be open to any  Member to make reverse
notifications to the TMB. 

3.   Where any Member considers that another Member has not taken
the actions referred to in paragraph
1, and that the balance of rights and obligations under this
Agreement has been upset, that Member may
bring the matter before the relevant WTO bodies and inform the
TMB.  Any subsequent findings or
conclusions by the WTO bodies concerned shall form a part of the
TMB's comprehensive report.


                                 Article 8

1.   In order to supervise the implementation of this Agreement,
to examine all measures taken under
this Agreement and their conformity therewith, and to take the
actions specifically required of it by this
Agreement, the Textiles Monitoring Body ("TMB") is hereby
established.  The TMB shall consist of a
Chairman and 10 members.  Its membership shall be balanced and
broadly representative of the Members
and shall provide for rotation of its members at appropriate
intervals.  The members shall be appointed
by Members designated by the Council for Trade in Goods to serve
on the TMB, discharging their function
on an ad personam basis. 

2.   The TMB shall develop its own working procedures.  It is
understood, however, that consensus
within the TMB does not require the assent or concurrence of
members appointed by  Members involved
in an unresolved issue under review by the TMB.

3.   The TMB shall be considered as a standing body and shall
meet as necessary to carry out the functions
required of it under this Agreement.  It shall rely on
notifications and information supplied by the Members
under the relevant Articles of this Agreement, supplemented by
any additional information or necessary
details they may submit or it may decide to seek from them.  It
may also rely on notifications to and reports
from other WTO bodies and from such other sources as it may deem
appropriate. 

4.   Members shall afford to each other adequate opportunity for
consultations with respect to any matters
affecting the operation of this Agreement.

5.   In the absence of any mutually agreed solution in the
bilateral consultations provided for in this
Agreement, the TMB shall, at the request of either Member, and
following a thorough and prompt
consideration of the matter, make recommendations to the Members
concerned.

6.   At the request of any Member, the TMB shall review promptly
any particular matter which that
Member considers to be detrimental to its interests under this
Agreement and where consultations between
it and the Member or Members concerned have failed to produce a
mutually satisfactory solution.  On
such matters, the TMB may make such observations as it deems
appropriate to the Members concerned
and for the purposes of the review provided for in paragraph 11.

7.   Before formulating its recommendations or observations, the
TMB shall invite participation of such
Members as may be directly affected by the matter in question.

8.   Whenever the TMB is called upon to make recommendations or
findings, it shall do so, preferably
within a period of 30 days, unless a different time period is
specified in this Agreement.  All such
recommendations or findings shall be communicated to the Members
directly concerned.  All such
recommendations or findings shall also be communicated to the
Council for Trade in Goods for its
information.

9.   The Members shall endeavour to accept in full the
recommendations of the TMB, which shall exercise
proper surveillance of the implementation of such
recommendations.

10.  If a Member considers itself unable to conform with the
recommendations of the TMB, it shall
provide the TMB with the reasons therefor not later than one
month after receipt of such recommendations. 
Following thorough consideration of the reasons given, the TMB
shall issue any further recommendations
it considers appropriate forthwith.  If, after such further
recommendations, the matter remains unresolved,
either Member may bring the matter before the Dispute Settlement
Body and invoke paragraph 2 of
Article XXIII of GATT 1994 and the relevant provisions of the
Dispute Settlement Understanding. 

11.  In order to oversee the implementation of this Agreement,
the Council for Trade in Goods shall
conduct a major review before the end of each stage of the
integration process.  To assist in this review,
the TMB shall, at least five months before the end of each stage,
transmit to the Council for Trade in Goods
a comprehensive report on the implementation of this Agreement
during the stage under review, in particular
in matters with regard to the integration process, the
application of the transitional safeguard mechanism,
and relating to the application of GATT 1994 rules and
disciplines as defined in Articles 2, 3, 6 and 7
respectively.  The TMB's comprehensive report may include any
recommendation as deemed appropriate
by the TMB to the Council for Trade in Goods.

12.  In the light of its review the Council for Trade in Goods
shall by consensus take such decisions
as it deems appropriate to ensure that the balance of rights and
obligations embodied in this Agreement
is not being impaired.  For the resolution of any disputes that
may arise with respect to matters referred
to in Article 7, the Dispute Settlement Body may authorize,
without prejudice to the final date set out under
Article 9, an adjustment to paragraph 14 of Article 2, for the
stage subsequent to the review, with respect
to any Member found not to be complying with its obligations
under this Agreement.


                                 Article 9

     This Agreement and all restrictions thereunder shall stand
terminated on the first day of the 121st
month that the WTO Agreement is in effect, on which date the
textiles and clothing sector shall be fully
integrated into GATT 1994.  There shall be no extension of this
Agreement.