Agreement Between
The United-States of America
and
The People's Republic of China
Concerning Trade in Textile and Apparel Products

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.

Agreement Term

1. The term of the Agreement shall be the four-year period from January 1, 1997 through December 31, 2000. Each Agreement Year shall be a calendar year.

Coverage of Agreement and Classification by Fiber

2.       (A) The textiles and textile products covered by the Agreement are those summarized in Annex A. The rates of conversion into square meters equivalent listed in Annex A shall apply in implementing the Agreement.

(B) For the purposes of the Agreement, the categories below are merged and treated as a single category, as indicated, with the limits set out in Annex B:

 

3.       (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, silk blends, non-cotton vegetable fibers, or blends thereof, in which any or all of these fibers in combination represent the chief weight of the product, are subject to the Agreement. Coverage pursuant to this paragraph is subject to subparagraph (B) and (C) below.

(B) For the purposes of the Agreement, textile products covered by sub-paragraph (A) above shall be classified as:

(1) Man-made fiber textiles, if the product is in chief weight of man-made fibers, unless:

(a) the product is knitted or crocheted apparel in which wool equals or exceeds 23 percent by weight of all fibers, in which case the product will be a wool textile; or

(b) the product is apparel, not knitted or crocheted, in which wool equals or exceeds 36 percent by weight of all fibers, in which case the product exceeds will be a wool textile;

(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.

(2) Cotton textiles; if not covered by (1) and if the product 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 product will be a wool textile.

(3) Wool textiles, if neither of the foregoing applies, and the product is in chief weight of wool.

(4) Silk blend or non-cotton vegetable fiber textiles, if none of the foregoing applies and the product is in chief weight of silk or non-cotton vegetable fiber, unless:

(a) cotton with wool and/or man-made fibers in the aggregate 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 case the product will be a cotton textile.

(b) if not covered by (3)(a) and wool exceeds 17 percent by weight of component fibers, in which case the product will be considered a wool textile.

(c) if not covered by (3)(a) or (b) and man-made fibers in combination with cotton and/or wool in the aggregate equal or exceed 50 percent by weight of the component fibers thereof and the man-made fiber component exceeds the weight of the total wool and/or total cotton component, in which case the product will be considered a man-made fiber textile.

(C) Garments which contain 70 percent or more by weight silk (unless they also contain over 17 percent by weight wool), and products other than garments which contain 85 percent or more by weight silk, are not subject to the Agreement. Silk blend and non-cotton vegetable fiber sweaters, as determined above, shall be divided into "silk blend" sweaters and "non-cotton vegetable fibers" sweaters. For the purposes of this provision sweaters shall be classified as "silk blend" if the silk component exceeds by weight the non-cotton vegetable fiber component (if any). Sweaters not classified as "silk 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 wool textiles, under subparagraph . . (B)(4)(b).

(D) Coverage under this paragraph is intended to be identical with the terms of the WTO Agreement on Textiles and Clothing. In the event of a question regarding whether a product is covered by the 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 considered.

(E) Certain handmade products specified in Annex C are exempt from quota and visa requirements if properly certified.

Structure and Limits of Agreement

4. Textiles and textile products covered by the Agreement shall be subject to the Group Limits and Specific Limits set out in Annex B. The Groups included in the Agreement are as follows:

Group I: Specific limits, excluding categories 369-S, 863-S, 870 and [225] and called Category 224V

Group II: Cotton, wool, and man-made fiber apparel not subject to specific limits in Group I.

Group III: Cotton, wool, and man-made fiber non-apparel not subject to specific limits in Group I.

Group IV: Silk Blends and non-Cotton vegetable fiber apparel not subject to specific limits in Group I.

5. Commencing with the first Agreement Year, during the subsequent years of the Agreement, the Government of the People's Republic of China shall limit annual exports to the United States of its cotton, wool, man-made fiber, other vegetable fiber, and silk blend textiles and textile products to the Group Limits and Specific Limits set out in Annex B, as such limits may be adjusted in accordance with paragraphs 6 and 7. The limits in Annex B include annual growth. Subject to paragraph 10, exports shall be charged to the limits for the year in which exported. The limits set out in Amex B do not include any of the adjustments permitted under paragraphs 6 and 7.

Flexibility Adjustments

Swing

6. (A) During any Agreement Year the Group I, II, III and IV Limits set out in Annex B, may be exceeded by not more than five (5) percent of their respective square meter equivalent (SME) total, provided that the amount of the increase is compensated by equivalent SME decreases in the Group I, II or III Limits for that Agreement Year.

(1) No Group Limit may be decreased pursuant to subparagraph 6 (A) to a level which is below the level of exports charged against that Group Limit for that Agreement Year.

(2) When informing the Government of the United States of America of adjustments under the provisions of this paragraph, the Government of the People's Republic of China shall indicate the Group Limits to be increased and those to be decreased by commensurate quantities in square meters equivalent.

(B) During any Agreement Year, and within the applicable Group limit for such an agreement year as it may be adjusted under paragraphs 6(A) and 7, any Specific Limit and sublimits set out in Annex B (or pursuant to an amendment thereto) may be exceeded by not more than five (5) percent. During any Agreement Year, and within the applicable Group limit for such an agreement year as it may be adjusted under paragraphs 6(A) and 7, restraint limits established pursuant to paragraph 8 may be exceeded by not more than seven (7) percent.

(1) However, the adjustments provided under subparagraph 6 (B) are not available to or from Categories 315 or 845, except that swing shall be available from Category 845 to 846.

(2) In addition, special swing of ten (10) percent shall be available between categories 341 and 641 and between categories 342 and 642; and between categories 340 and 640 upon resolution of the 640 yarn-dyed sub-limit.

Carryover and Carryfoward

7. (A) In any Agreement Year, any Group Limit or Specific Limit may exceed the levels set out in Annex B by allocating to such Group Limit or Specific Limit for that Agreement Year an unused portion of the corresponding Group or Specific Limit for the previous Agreement Year ("carryover") or a portion of the corresponding Group or Specific Limit for the succeeding Agreement Year ("carryforward"), subject to the following conditions:

(1) Group Limits

(a) Carryover may be utilized as available up to three (3) percent of the receiving Agreement Year's Group I, II or III Limit and five (5) percent of the receiving Agreement Year's Group IV limit. Carryover may be utilized as available in 1997 up to two (2) percent of the receiving Agreement Year's Group limits.

(b) Carryforward may be utilized up to two (2) percent of the receiving Agreement Year's Group I, II or 111 Limit, and three (3) percent in the case of Group IV, and shall be charged against the immediately following Agreement Year's corresponding Group Limit. No carryforward shall be available in the final Agreement year.

(c) The combination of carryover and carryforward applicable to a Group I, II and III Limit shall not exceed three (3) percent of the receiving Agreement Year's applicable limit in any Agreement Year and the combination of carryover and carryforward applicable to Group IV shall not exceed five (5) percent of the receiving Agreement Year's applicable limit in any Agreement Year, except for Agreement Year 1997, as described in subparagraph 7(A)(1)(a) above.

(2) Specific Limits

(a) Carryover may be utilized as avaiIabIe up to two (2) percent of the receiving Agreement Year's Specific Limit, to the extent that there is sufficient shortfall (as defined in sub-paragraph 7(B)) available in the donor Specific Limit and within the Group Limit covering the donor Specific Limit. A two (2) percent carryover only of available 1996 limits may be applied to corresponding 1997 limits.

(b) Carryforward may be utilized up to three (3) percent of the receiving Agreement Year's applicable Specific Limit and shall be charged against the immediately following Agreement Year's corresponding Specific Limit. No carry forward shall be available in the final Agreement Year.

(c) The combination of carryover and carryforward applicable to a Specific Limit shall not exceed three (3) percent of the receiving Agreement Year's applicable limit in any Agreement Year.

(d) In any Agreement Year, following agreement in consultations, exports may exceed by up to 10 percent any limit set out in Annex B by allocating to such limit for that Agreement Year any unused portion of the corresponding limit for the previous Agreement Year or a portion of the corresponding limit for the succeeding year, subject to the following conditions:

(1) Carryover may be utilized as available up to 10 percent of the receiving Agreement Year's limits provided;

(2) Carryforward may be utilized up to five (5) 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 shalI not exceed 10 percent of the receiving Agreement Year's applicable limit in any Agreement Year;

(4) Carryover of shortfall 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 of the People's Republic of China to the United States of America during an Agreement Year are below any Group Limit or Specific Limit as set out in Annex B (or, in the case of any limit decreased pursuant to paragraph 6, when such exports are below the limit as so decreased). In the Agreement Year following the shortfall, such exports of products of the People's Republic of China to the United States of America may be permitted to exceed the applicable limits, subject to the conditions of subparagraph 7(A), by carryover of the shortfalls in the following manner:

(1) Carryover shall not exceed the amount of shortfall in the applicable limits;

(2) The shortfall shall be used in the Group Limit or Specific Limit in which the shortfall occurred.

(C) Adjustments made under this paragraph are in addition to those permitted under Paragraph 6.

Consultation Mechanism

8. (A) In the event that the Government of the United States of America believes that imports of textiles and apparel products of the People's Republic of China listed in Annex A to the Agreement and not subject to 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 of America may request consultations with the Government of the People's Republic of China with a view to easing or 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 factuaI statement of reasons and justifications for its request for consultations 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 role of products of 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 of America within 30 days of receipt of the request for consultations. Both sides agree to make every effort to reach agreement on a mutually satisfactory solution of the issue within 90 days of the receipt of such request, unless extended by mutual agreement.

(C) (1) Upon receipt of the request for consultations, and, if applicable, for the period remaining in the Agreement Year in which the request is made, the Government of the People's Republic of China agrees to hold its shipments to the United States of textiles or textile products in the category or categories subject to these consultations to a level no greater than 7 1/2 percent (six percent for wool product categories) above the amount entered, as reported in U.S. General Import statistics, during the first 12 of the most recent 14 months preceding the month in which the request for consultations was made, pro-rated for the number of days remaining in the Agreement Year, if applicable.

(2) Where, if applicable, three or fewer months remain in an Agreement Year at the time of the request for consultations, upon receipt of the request for consultations, the Government of the People's Republic of China agrees to hold its shipments to the United States of textiles or textile products in the category or categories subject to these consultations for the remaining days of the Agreement Year plus the subsequent Agreement Year to a level no greater than 7 1/2 percent (6 percent for wool product categories) above the amount entered, as reported in U.S. General Import statistics, during the first 12 of the most recent 14 months preceding the month in which the request for consultations was made, pro-rated for the remaining days of the Agreement Year plus the subsequent Agreement Year.

(D) If no mutually satisfactory solution is reached during the 90-day consultation period, consultations shall continue and the Government of the United States of America may continue the limits for textiles or textile products in the category or categories subject to these consultations for the duration of the Agreement.

(E) (1) The first term of any restraint limit established under the preceding sub-paragraph will be effective for the period beginning on the date of the request for consultations and ending on the last day of the Agreement Year in which the restraint limit was established, or where three or fewer months remained in the Agreement Year at the time of the request for consultations, for the period ending on the last day of the subsequent Agreement Year.

(2) For each remaining Agreement Year any restraint limit established under this provision will be increased by 2.5 percent annuaI growth per year in the case of cotton and man-made fiber, by 6 percent in the case of vegetable fibers other than cotton, and silk blend product categories, and one percent in the case of wool product categories. The subsequent restraint limits shall have any available swing, carryover or carryforward as is provided for Specific Limits under paragraphs 6 and 7 of the Agreement, but only within the Group in which the restraint limit is established. Except to the extent applicable under paragraph 21, carryover will not be available in the first of the remaining Agreement Years.

(F) After China joins the World Trade Organization and the United States applies the Agreement Establishing the World Trade Organization to China, this paragraph will apply transitionally for four years after the expiration of the Agreement on Textiles and Clothing (ATC), to goods originating from the Parties covered by the ATC. At such time, no action taken under this paragraph shall remain in effect beyond one year, without reapplication, unless otherwise agreed by the Parties.

Spacing Provision

9. The Government of the People's Republic of China shall use its best efforts to space exports of its products to the United States of America within each category evenly throughout each Agreement Year, taking into consideration normal seasonal factors.

Cooperation in Implementation of the Limitation Provisions

10. (A) Each Government shall endeavor to ensure that the limits established under the Agreement are not exceeded. Calculations will be based upon date of export from the People's Republic of China. Neither Government shall act to restrain trade in textile products covered by the Agreement except in accordance with the terms of the Agreement.

(B) Exports of products of the People's Republic of China in excess of any authorized limits in any Agreement Year or period may be denied entry into the United States. Any such shipments denied entry may be permitted entry into the United States and charged to the applicable limit in the succeeding period or Agreement year. The Government of the United States of America will supply to the Government of the People's Republic of China each month a list of charges by category and quantity.

(C) Exports of products of the People's Republic of China in excess of authorized limits in any Agreement year or period will, if allowed entry into the United States during that year or period, be charged to the applicable limit in the succeeding Agreement Year or period.

(D) Any action taken pursuant to this provision will not prejudice the rights of either side regarding consultations.

Exchange of Data

11. 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 and textile products of 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 for which limits have been established. Each Government agrees to supply promptly any other pertinent and readily available statistical data requested by the other Government.

12. Annual technical consultations shall be held to discuss administrative matters in the implementation of this Agreement including review of each Government's trade statistics for the previous Agreement year.

Cooperation in the Prevention of Circumvention

13. (A) Both parties agree to take necessary actions to address, to investigate and, where appropriate, to take legal and/or administrative action to prevent circumvention of this Agreement by transshipment, rerouting, false declaration concerning country or place of origin, falsification of official documents or any other means.

(B) Both Parties agree to cooperate fully, consistent with their domestic laws and procedures, in instances of circumvention or alleged circumvention of this Agreement to establish necessary relevant facts in the places of import, export and, where applicable, transshipment. The Parties will endeavor to clarify the circumstances of any such instances of circumvention or alleged circumvention, including the respective roles of the exporters or importers involved, and any party in a third country or region, if applicable. Such cooperation, to the extent consistent with domestic laws and procedures, will include investigation of circumvention practices; exchange of documents, correspondence, reports and other relevant information to the extent available; and facilitation of plant visits and contacts in accordance with agreed upon procedures, upon request and on a case-by-case basis. If transshipment cases are discovered by the Government of the People's Republic of China, the Government of the People's Republic of China will investigate and inform the Government of the United States of America of the result.

(C) Should either Party believe that circumvention is occurring and that no, or inadequate measures, are being applied to take action against such circumvention, either Party may request consultations with a view to seeking a mutually satisfactory solution. Such consultations shall be held promptly, beginning within 30 days of a request by a Party and concluding within 120 days, unless extended by mutual agreement. The Parties will endeavor to hold two rounds of meetings within the 120 days, or mutually agreed extension thereof.

(D) Should the parties be unable to reach a satisfactory solution in the course of the consultations called for under paragraph (C), then the Governments of the People's Republic of China and the United States of America agree that in cases where clear evidence regarding circumvention has been provided, including the country or place of true origin, and the circumstances of the case has been provided, the Government of the United States of America may deduct from the quantitative limits for that Agreement Year amounts equivalent to the amount of transshipped products of People's Republic of China origin. If China becomes a Member of the WTO and the United States applies the Agreement Establishing the WTO to China, any such action shall be notified to the TMB with full justification.

(E) Beginning after January 1, 1997, should the the Government of the United States of America choose to exercise its rights under paragraph (D) to deduct an amount or amounts from the quantitative limits of the People's Republic of China, where more than two instances of circumvention have been demonstrated within the twelve-month period immediately preceding the date of the particular charge upon which the triple charge is based, and the Government of the United States of America possesses clear evidence of the particular charge, such as an export declaration from the People's Republic of China, bills of lading, invoices, contracts, or other relevant information, then the Government of the United States of America may deduct from the quantitative limit amounts up to three times the amounts transshipped, provided that such deductions are distributed equally in the remaining term of the Agreement.

No charges may be brought under this paragraph based on goods imported into the territory of the United States more than three years prior to the date on which consultations are sought under this paragraph. The Government of the United States of America will take no such action unless a consultation was held, beginning within 30 days of a request by either Party, and concluding within 90 days, unless extended by mutual agreement. Both parties recognize that other solutions may be agreed upon including arrangements with the third Party or Parties through which the circumvention took place. If China becomes a Member of the WTO and the United States applies the Agreement Establishing the WTO to China, any such action shall be notified to the TMB with full justification.

(F) Both Parties agree, when dealing with circumvention cases, to take full account of whether appropriate anti-circumvention measures have been taken by the Government of the country or place of true origin. Both Parties further agree to penalize the individuals and entities involved in the circumvention, consistent with their domestic laws and procedures, and to work closely to seek the cooperation of any third Party to prevent circumvention from taking place in that third Party.

(G) Where there is clear evidence showing that goods originating in another country have been shipped through the People's Republic of China to the United States as though they were products of the People's Republic of China, the Government of the People's Republic of China and the United States of America agree to take appropriate action, recognizing that the preferred remedy is the denial of entry of such goods when possible. The Parties should endeavor to clarify the circumstances of any such instances of circumvention or alleged circumvention, including the respective roles of the exporters or importers and any party in the third country or region involved. Appropriate actions, together with their timing and scope, may be taken after consultations, held with a view to arriving at a mutually satisfactory solution. Such consultations should be held promptly, beginning within 30 days of a request by a Party and concluding within 120 days, unless extended by mutual agreement. Should the Parties be unable to reach a satisfactory solution, the Governments of the People's RepubIic of China and the United States of America agree that in cases where clear evidence regarding circumvention has been provided, the Government of the United States of America may introduce a restraint or, where a restraint already exists, may deduct from the quantitative limits established under the Agreement an amount equivalent to the amount of product transshipped through the People's Republic of China. If China becomes a Member of the WTO and the United States applies the Agreement Establishing the WTO to China, any such action shall be notified to the TMB with full justification.

(H) The Parties note that some cases of circumvention may involve shipments transiting through countries or places and no changes or alterations have been made to the goods contained in such shipments in the places of transit. The Parties note that it may not be generally practicable for such places of transit to exercise control over such shipments.

(I) (1) The Parties agree that false declaration concerning fiber content, quantities, description or classification of merchandise also frustrates the objective of the Agreement. Where there is clear evidence that any such false declaration has been made for purposes of circumvention, both Parties agree to take appropriate measures, consistent with their domestic laws and procedures, against exporters and importers involved recognizing that the preferred remedy is the denial of entry of such goods when possible. Should either Party believe that the 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 Party should consult promptly with the Party involved with a view to seeking a mutually satisfactory solution. Such consultations should be held promptly, beginning within 30 days of a request by a Party and concluding within 120 days, unless extended by mutual agreement. Should the Parties be unable to reach a satisfactory solution, then the Government of the People's Republic of China and the Government of the United States of America agree that in cases where clear evidence regarding such false declarations has been provided, then the Government of the United States of America may deduct from the quantitative limits established under the Agreement an amount equivalent to the amount of product subject to the false declaration or classification.

(2) This provision is not intended to prevent Parties from making technical adjustments when inadvertent errors in declarations have been made. Upon the request of an enterprise located in the territory of the People's Republic of China for a classification ruling by the United States Customs Service, the United States shall provide such a ruling, consistent with its domestic laws and procedures, within 30 calendar days of the date of receipt by the United States Customs Service of the appropriate documentation and information. Rulings which require referral to U.S. Customs Headquarters, Office of Regulations and Rulings, will be issued within 120 days of receipt by the United States Customs Service of submission of the appropriate documentation and information.

(J) The Parties recognize that, after China becomes a Member of the WTO and the United States applies the Agreement Establishing the WTO to China, in the event of a conflict between this paragraph and Article 5 of the ATC that impairs the operation of the ATC, the ATC shall prevail.

Visa System

14. (A) The visa system established for exports to the United States of America of cotton, wool and man-made fiber, other vegetable fibers, and silk blend textiles and textile products of the People's Republic of China, effective July 25, 1980, as amended, will remain in force. Visas issued in a particular Agreement Year shall be valid only for textiles and textile products exported during that Agreement Year.

(B) The parties recognize that under the Agreement the purchase of textiles and textile products to be delivered subject to the restrictions under the Agreement implies that delivery of goods will be accompanied by a valid visa.

Commercial Samples and Personal Shipments

15. Properly marked commercial sample shipments, valued at $250 or less, and items for the personal use of the importer and not for resaIe, need not be accompanied by an export visa and shall not be subject to the limits established under the Agreement.

Equity

16. If the Government of the People's Republic of China considers that, as a result of a limitation specified in the Agreement, the People's Republic of 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 with a view to taking appropriate remedial action such as reasonable modification of the Agreement and the Government of the United States shall agree to hold such consultations.

Consultation on Implementation Questions

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

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

Reservation of Rights

19. The Government of the United States of America and the Government of the People's Republic of China reserve their rights with respect to textiles and textile products not subject to the Agreement.

20. The Government of the United States of America and the Government of the People's Republic of China will consult to determine whether certain textile products produced in the People's Republic of China are traditional folklore handicrafts.

Implementation under the Agreement Establishing the World Trade Organization

21. (A) In the event that the United States applies the Agreement Establishing the World Trade Organization (WTO) to the People's Republic of China prior to the termination of the Agreement pursuant to paragraph 1 hereof, the Agreement shall terminate as of the effective date of such application.

(B) At that time, the Parties shall take such measures, and certain provisions of the Agreement shall remain in effect, as provided below:

(1) Textiles and textile products that are covered by the Agreement and that have been previously integrated into GATT 1994 pursuant to Article 2.6 of the ATC shall no longer be subject to quantitive restrictions under the ATC. Textiles and textile products covered by the Agreement and notified by the United States to be integrated into GATT 1994 pursuant to Article 2.8(2), (b) and (c) of the ATC shall, if unaffected by the first sentence of this subparagraph, no longer be subject to quantitative restrictions under the ATC as of the effective dates of their integration.

(2) Until the expiration of the ATC, paragraphs 2, 3, 4, 9, 10, 11, 12, 13, 14, 15 and 16 of the Agreement shall be applied by the Parties with respect to goods subject to the Agreement, with such minor technical adjustments as may be mutually agreed by the Parties, to the extent not inconsistent with the ATC. Paragraphs 5, 6 and 7 and Annex B of the Agreement shall be notified to the TMB as the basis for the application of the growth and flexibility provisions of Article 2 of the ATC, to the extent not inconsistent with the ATC.

(3) Paragraph 8 of the Agreement shall apply, for four years after the expiration of the ATC as between the Parties, to goods originating in China and covered by the Annex of the ATC, as provided in paragraph 8(F).

(C) The provisions of this paragraph shall be incorporated into the report of the Working Party on China's accession, made a part of China's Protocol of Accession to the WTO as it is applied to the United States and be notified to relevant WTO bodies, as appropriate.

Right to Terminate the Agreement

22. 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.

top