Bridges Weekly Trade News Digest • Volume 8 • Number 39 • 17th November 2004

Goods Council Assesses Textiles Phase-Out

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The WTO Council for Trade in Goods (CTG) met briefly on 11 November in an informal session dedicated to the major review of the third and last stage of the implementation of the Agreement on Textiles and Clothing (ATC). Members considered the 2004 Report of the Textiles Monitoring Body (G/L/700) and examined the comprehensive report of the Textiles Monitoring Body to the Council for Trade in Goods on the implementation of the ATC (G/L/683).

The first topic of discussion centred on the technical aspects of notifications and implementation of the ATC, according to which all quotas in the textile and clothing sector are to be eliminated at the end this year. The 2004 report noted that it would be useful if all Members "could provide a detailed list of the products to be integrated on 1 January 2005" in order to ensure transparency in the liberalisation process. The report further raised some implementation questions regarding US quotas, and noted that at the end of 2004, the Textiles Monitoring Body would cease to exist. Members also discussed the more controversial issue of post-ATC adjustment difficulties faced by smaller developing countries (see BRIDGES Weekly, 27 October 2004), but failed to reach consensus on whether something should be done to ease the transition to the post-ATC trading environment, and what that something could be.

Members were urged to use restraint with trade remedies in the textiles and clothing sector in 2005, especially given a section of the Doha Round Decision on Implementation, which states that "Members will exercise particular consideration before initiating investigations in the context of antidumping remedies on textile and clothing exports from developing countries previously subject to quantitative restrictions under the Agreement for a period of two years following full integration of this Agreement into the WTO". Other issues briefly discussed included the use of transitional safeguard mechanisms, carry-forward options in this third and last stage of liberalisation, and administrative arrangements for quota administration and implementation.

The Council for Trade in Goods is tasked under ATC Article 8.11 to conduct a major review of the implementation of the ATC, and to prepare a report on that review. The 11 November meeting, and subsequent dedicated informal meetings planned for 18 and 19 November, were called to prepare for the formal meeting of the Council for Trade in Goods on 25 November, which will look at both the ATC implementation process and post-ATC adjustment issues and begin negotiating the report on the major review. Countries are gearing up for major shifts in trade in textiles and clothing following the January 2005 phase-out of textiles quotas as mandated by the ATC (see BRIDGES Weekly, 27 October 2004)

ICTSD reporting.