United States-People's Republic of China Textile Agreement

AGREEMENT RELATING TO TRADE IN COTTON, WOOL, AND MAN-MADE FIBER TEXTILES AND TEXTILE PRODUCTS BETWEEN THE UNITED STATES OF AMERICA AND THE PEOPLE'S REPUBLIC OF CHINA

The Government of the United States of America and the Government of the People's Republic of China, as a result of discussions concerning exports to the United States of America of cotton, wool, and man-made fiber textiles and textile products manufactured in the People's Republic of China, agree to enter into the following Agreement relating to trade in cotton, wool, and man-made fiber textiles and textile products between the United States of America and the People's Republic of China (hereinafter referred to as "the Agreement"):

1. The two Governments reaffirm their commitments under the Agreement on Trade Relations between the United States of America and the People's Republic of China as the basis of their trade and economic relations.

2. The term of the Agreement shall be the three-year period from January 1, 1980 through December 31, 1982. Each "Agreement Year" shall be a calendar year.

3. (a) The system of categories and the rates of conversion into square yards equivalent listed in Annex A shall apply in implementing the Agreement.

(b) For purposes of the Agreement, categories 347, 348 and 645, 646 are merged and treated as single categories 347/348 and 645/646 respectively.

4. (a) Commencing with the first Agreement Year, and during the subsequent term of the Agreement, the Government of the People's Republic of China shall limit annual exports from China to the United States of America of cotton, wool, and man-made fiber textiles and textile products to the specific limits set out in Annex B, as such limits may be adjusted in accordance with paragraphs 5 and 7. The limits in Annex B include growth. Exports shall be charged to limits for the year in which exported. The limits set out in Annex B do not include any of the adjustments permitted under paragraphs 5 and 7.

(b) With respect to Category 340, 200,000 dozens of the quantity exported in 1979 shall be charged against the Specific Limit for that Category for the first Agreement Year.

(c) With respect to Category 645/646, 48,000 dozens of the quantity exported in 1980 will be entered without charge.

5. (a) Any specific limit may be exceeded in any Agreement Year by not more than the following percentage of its square yards equivalent total listed in Annex B, provided that the amount of the increase is compensated for by an equivalent SYE decrease in one or more other specific limits for that Agreement Year.

Category: Percentage
331 6
339 5
340 5
341 5
347/348 5
645/646 6

(b) No limit may be decreased pursuant to sub-paragraph 5(a) to a level which is below the level of exports charged against that category limit for that Agreement Year.

(c) When informing the United States of adjustments under the provisions of this paragraph, the Government of the People's Republic of China shall indicate the category or categories to be increased and the category or categories to be decreased by commensurate quantities in square yards equivalent.

6. The Government of the People's Republic of China shall use its best efforts to space exports from China to the United States within each category evenly throughout each Agreement Year, taking into consideration normal seasonal factors. Exports from China in excess of authorized levels for each Agreement Year will, if allowed entry into the United States, be charged to the applicable level for the succeeding Agreement Year.

7. (a) In any Agreement Year, exports may exceed by a maximum of 11 percent any limit set out in Annex B by allocating to such limit for that Agreement Year an unused portion of the corresponding limit for the previous Agreement Year ("carryover") or a portion of the corresponding limit for the succeeding Agreement Year ("carryforward") subject to the following conditions:

(1) Carryover may be utilized as available up to 11 percent of the receiving Agreement Year's limits provided, however, that no carryover shall be available for application during the first Agreement Year;

(2) Carryforward may be utilized up to seven percent of the receiving Agreement Year's applicable limits and shall be charged against the immediately following Agreement Year's corresponding limits;

(3) The combination of carryover and carryforward shall not exceed 11 percent of the receiving Agreement Year's applicable limit in any Agreement Year;

(4) Carryover of shortfall (as defined in sub-paragraph 7(b)) shall not be applied to any limits ,until the Governments of the United States of America and the People's Republic of China have agreed upon the amounts of shortfall involved.

(b) For purposes of the Agreement, a shortfall occurs when exports of textiles or textile products from China to the United States of America during an Agreement Year are below any specific limit as set out in Annex B, (or, in the case of any limit decreased pursuant to paragraph 5, when such exports are below the limit as so decreased). In the Agreement Year following the shortfall, such exports from China to the United States of America may be permitted to exceed the applicable limits, subject to conditions of sub-paragraph 7(a), by carryover of shortfalls in the following manner:

(1) The carryover shall not exceed the amount of shortfall in any applicable limit;

(2) The shortfall shall be used in the category in which the shortfall occurred.

(c) The total adjustment permissible under paragraph 7 for the first Agreement Year shall be seven percent consisting solely of carryforward.

8. (a) In the event that the Government of the United States believes that imports from the People's Republic of China classified in any category or categories not covered by Specific Limits are, due to market disruption, threatening to impede the orderly development of trade between the two countries, the Government of the United States may request consultations with the Government of the People's Republic of China with a view to avoiding such market disruption. The Government of the United States of America shall provide the Government of the People's Republic of China at the time of the request with a detailed factual statement of the reasons and justification for its request for consultation, with current data, which in the view of the Government of the United States of America shows .

1) the existence or threat of market disruption, and

2) the contribution of exports from the People's Republic of China to that disruption.

(b) The Government of the People's Republic of China agrees to consult with the Government of the United States within 30 days of receipt of a request for consultations. Both sides agree to make every effort to reach agreement on a mutually satisfactory resolution of the issue within 90 days of the receipt of the request, unless this period is extended by mutual agreement.

(c) During the 90 day period, the Government of the People's Republic of China agrees to hold its exports to the United States of America in the category or categories subject to this consultation to a level no greater than 35 percent of the amount entered in the latest twelve month period for which data are available.

(d) If no mutually satisfactory solution is reached during these consultations, the People's Republic of China will limit its exports in the category or categories under this consultation for the succeeding twelve months to a level of 20 percent for manmade fiber and cotton product categories (and of 6 percent for wool product categories) above the level of imports entered during the first twelve of the most recent fourteen months preceding the date of the request for consultations.

9. To prevent inadvertent or fraudulent circumvention of the Agreement, to ensure accurate record keeping, and to facilitate proper entry into the United States of the products covered by the Agreement, a Visa System shall be established as soon as practicable as an administrative arrangement under the Agreement.

10. The Government of the United States of America shall promptly supply the Government of the People's Republic of China with monthly data on imports of textiles from China, and the Government of the People's Republic of China shall promptly supply the Government of the United States of America with quarterly data on exports of China's textiles to the United States in categories for which levels have been established. Each Government agrees to supply promptly any other pertinent and readily available statistical data requested by the other Government.

11. (a) Tops, yarns, piece goods, made-up articles, garments, and other textile manufactured products (being products which derive their chief characteristics from their textile components) of cotton, wool, man-made fibers, or blends thereof, in which any or all of these fibers in combination represent either the chief value of the fibers or 50 percent or more by weight (or 17 percent or more by weight of wool) of the product, are subject to the Agreement.

(b) For purposes of the Agreement, textiles and textile products shall be classified as cotton, wool or man-made fiber textiles if wholly or in chief value of either of these fibers.

(c) Any product covered by subparagraph 11(a) but not in chief value of cotton, wool, or man-made fiber shall be classified as: (I) cotton textiles if containing 50 percent or more by weight of cotton or if the cotton component exceeds by weight the wool and the manmade fiber components; (II) wool textiles if not cotton and the wool equals or exceeds 17 percent by weight of all component fibers; (III) man-made fiber textiles if neither of the foregoing applies.

12. The Government of the United States of America and the Government of the People's Republic of China agree to consult on any question arising in the implementation of the Agreement.

13. Mutually satisfactory administrative arrangements or adjustments may be made to resolve minor problems arising in the implementation of this Agreement, including differences in points of procedure or operation.

14. If the Government of the People's Republic of China considers that, as a result of a limitation specified in this Agreement, China is being placed in an inequitable position vis-a-vis a third country or party, the Government of the People's Republic of China may request consultations with the Government of the United States of America with a view to taking appropriate remedial action such as reasonable modification of this Agreement and the Government of the United States of America shall agree to hold such consultations.

15. At the request of either Government, the two Governments will undertake a major review of the Agreement at the end of the second Agreement Year.

16. Each Government will take such measures as may be necessary to ensure that the Specific Limits established for any categories under this Agreement are not exceeded. Calculations will be based on the date of export from the People's Republic of China. Neither Government shall act to restrain the trade in textile products covered by the Agreement except in accordance with the terms of the Agreement.

17. Either Government may terminate the Agreement effective at the end of any Agreement Year by written notice to the other Government to be given at least 90 days prior to the end of such Agreement Year. Either Government may at any time propose revisions in the terms of the Agreement.

DONE at Washington, in duplicate, in the English and Chinese languages, both texts being equally authentic, this seventeenth day of September, 1980. For the Government of the United States of America:

JIMMY CARTER

For the Government of the People's Republic of China:
BO YIBO

ANNEX A

M and B= Men's and Boys'
W, G, and I=Women's, Girls', and Infants
n.k.=not Knit

Conversion Unit of
Category Description Factor Measure

YARN
Cotton
300 Carded 4.6 Lb.
301 Combed 4.6 Lb.
Wool
400 Tops and yarns 2.0 Lb.
Man-made Fiber
600 Textured 3.5 Lb.
601 Cont. cellulosic 5.2 Lb.
602 Cont. noncellulosic 11.6 Lb.
603 Spun cellulosic 3.4 Lb.
604 Spun noncellulosic 4.1 Lb.
605 Other yarns 3.5 Lb.
FABRIC
Cotton
310 Ginghams 1.0 SYD
311 Velveteens 1.0 SYD
312 Corduroy 1.0 SYD
313 Sheeting 1.0 SYD
314 Broadcloth 1.0 SYD
315 Printcloths 1.0 SYD
316 Shirtings 1.0 SYD
317 Twills and Sateens 1.0 SYD
318 Yarn-dyed 1.0 SYD
319 Duck 1.0 SYD
320 Other Fabrics, n.k 1.0 SYD
Wool
410 Woolen and worsted 1.0 SYD
411 Tapestries and upholstery 1.0 SYD
425 Knit 2.0 Lb.
429 Other Fabrics 1.0 SYD
Man-Made fiber
610 Cont. cellulosic, n.k 1.0 SYD
611 Spun cellulosic, n.k 1.0 SYD
612 Cont. noncellulosic, n.k 1.0 SYD
613 Spun noncellulosic, n.k 1.0 SYD
614 Other fabrics, n.k 1.0 SYD
625 Knit 7.8 Lb.
626 Pile and tufted 1.0 SYD
627 Specialty 7.8 Lb.
APPAREL
Cotton
330 Handkerchiefs 1.7 Dz.
331 Gloves 3.5 DPR

ANNEX A—Continued

M and B=Men's and Boys'
W, G, and I=Women's, Girls', and Infants
n.k.=not Knit

Conversion Unit of
Category Description Factor Measure

Cotton—Continued

332 Hosiery 4.6 DPR
333 Suit-type coats, M and B 36.2 Dz.
334 Other coats, M and B 41.3 Dz.
335 Coats, W, G, and I 41.3 Dz.
336 Dresses (incl. uniforms) 45.3 Dz.
337 Playsuits, Sunsuits, Washsuits, Creepers 25.0 Dz.
338 Knit shirts, (incl. T-Shirts, other sweatshirts) M and B. 7.2 Dz.
339 Knit shirts and blouses (incl. T-Shirts, other 7.2 Dz.
sweatshirts) W, G and I.
340 Shirts, n.k 24.0 Dz.
341 Blouses, n.k 14.5 Dz.
342 Skirts 17.8 Dz.
345 Sweaters 36.8 Dz.
347 Trousers, slacks, and shorts (outer) M and B. 17.8 Dz.
348 Trousers, slacks and shorts (outer) W, G and 17.8 Dz.
I.
349 Brassieres, etc 4.8 Dz.
350 Dressing gowns, incl. bathrobes, and 51.0 Dz.
house coats, and dusters.
351 Pajamas and other nightwear 52.0 Dz.
352 Underwear (incl. union suits) 11.0 Dz.
359 Other apparel 4.6 Lb.
Wool
431 Gloves 2.1 DPR
432 Hosiery 2.8 DPR
433 Suit-Type coats, M and B 36.0 Dz.
434 Other Coats, M and B 54.0 Dz.
435 Coats, W, G and I 54.0 Dz.
436 Dresses 49.2 Dz.
438 Knit Shirts and Blouses 15.0 Dz.
440 Shirts and Blouses, n.k 24.0 Dz.
442 Skirts 18.0 Dz.
443 Suits, M and B 54.0 Dz.
444 Suits, W, G and I 54.0 Dz.
445 Sweaters, M and B 14.88 Dz.
446 Sweaters, W, G and I 14.88 Dz.
447 Trousers, slacks and shorts (outer) M and B. 18.0 Dz.
448 Trousers, slacks and shorts (outer) W, G and 18.0 Dz.
I.
459 Other Wool Apparel 2.0 Lb.

ANNEX A—-Continued

M and B=Men's and Boy's
W, G, and I=Women's, Girls', and Infants
n.k.=not Knit

Conversion Unit of
Category Description Factor Measure

APPAREL—Continued
Man-made fiber
630 Handkerchiefs 1.7 Dz.
631 Gloves 3.5 DPR
632 Hosiery 4.6 DPR
633 Suit-type Goats, M and B 36.2 Dz.
634 Other Coats, M and B 41.3 Dz.
635 Coats, W, G and I 41.3 Dz.
636 Dresses 45.3 Dz.
637 Playsuits, Sunsuits, Washsuits, etc 21.3 Dz.
638 Knit Shirts (incl. T-Shirts), M and B 18.0 Dz.
639 Knit Shirts and Blouses (incl. T-Shirts), 15.0 Dz
W, G and I
640 Shirts, n.k 24.0 Dz.
641 Blouses, n.k 14.5 Dz.
642 Skirts 17.8 Dz.
643 Suits, M and B 54.0 Dz.
644 Suits, W, G and I 54.0 Dz.
645 Sweaters, M and B 36.8 Dz.
646 Sweaters, W, G and I 36.8 Dz.
647 Trousers, slacks and shorts (outer), M and B 17.8 Dz.
648 Trousers, slacks and shorts (outer), W, G 17.8 Dz.
and I
649 Brassieres, etc 4.8 Dz.
650 Dressing gowns, incl. bath and beach robes 51.0 Dz.
651 Pajamas and other nightwear 52.0 Dz.
652 Underwear 16.0 Dz.
659 Other Apparel 7.8 Lb.
MADE-UPS AND MISC.
Cotton
360 Pillowcases 1.1 No.
361 Sheets 6.2 No.
362 Bedspreads and Quilts 6.2 No.
363 Terry and other pile towels 0.5 No.
369 Other Cotton manufactures 4.6 Lb.
Wool
464 Blankets and auto robes 1.3 Lb.
465 Floor Covering 0.1 SFT
469 Other Wool manufactures 2.0 Lb.
Man-made Fiber
665 Floor Coverings 0.1 SFT
666 Other Furnishings 7.8 Lb.
669 Other man-made manufactures 7.8 Lb.

ANNEX B
SPECIFIC LIMITS

First Second Third

Agreement Agreement Agreement
Category Brief Description Year Year Year

331 .......... Cotton Gloves
Dozen pair 3, 213, 600 3, 310, 008 3, 409, 308
SYE 11,247, 600 11,585, 028 11,932, 578
339 .......... Knit Shirts & Blouses, W, G, & I
Dozen 720, 000 912, 000 865, 280
SYE 5, 184, 000 6, 566, 400 6, 230, 016
340 .......... Shirts, M and B, not knit
Dozen 540, 000 561,600 584, 064
SYE 12, 960, 000 13, 478, 400 14, 017, 536
341 .......... Blouses, W, G, & I, not knit
Dozen 381,300 455, 100 443, 456
SYE 5, 528, 850 6, 598, 950 6, 430, 112
347/348 ...... Trousers
Dozen 1,440, 000 1,824, 000 1,730, 560
SYE 25, 632, 000 32, 467, 200 30, 803, 968
645/646 ...... Sweaters
Dozen 550, 000 566, 500 583, 495
SYE 20, 240, 000 20, 847, 200 21,472, 616