Treaty (21 September 1967)
EXCHANGE OF NOTES CONSTITUTING AN AGREEMENT BETWEEN THE UNITED STATES OF AMERICA AND THE PHILIPPINES CONCERNING TRADE IN COTTON TEXTILES
September 21, 1967
EXCHANGE OF NOTES CONSTITUTING AN AGREEMENT
BETWEEN THE UNITED STATES OF AMERICA AND THE
PHILIPPINES CONCERNING TRADE IN COTTON TEXTILES
UNITED STATES OF AMERICA
Trade in Cotton Textiles
Agreement effected by exchange of notes;
Signed at Washington 21 September 1967;
With Annex;
Entered into force 1 January 1968,
I
DEPARTMENT OF STATE
WASHINGTON
September 21, 1967
Sir:
I refer to the recent discussions held in Washington between representatives of our
two Governments concernings exports of cotton textiles from the Philippines to the
United States. In accordance with these discussions, I propose the following
agreement:
1. The Governments reiterate their recognition as set forth in the cotton textile
[1]
agreement between them of February 24, 1964, that substantially all the exports of
cotton textiles from the Philippines to the United States in categories 52, 53, 54, 59
and 63 consist of infants' wear produced by the Philippine cottage industry and
traditionally part of the Special United States-Philippine cotton textile trade. The
Governments also recognize that Philippine exports to the United States in Category
62 consist of the same type of infants' wear, and agree that this category shall be
included in this group of traditional categories, Group A. The two Governments
agree that the annual trade in these traditional trade categories is the following
pattern:
Square
Yards
Group A Dozens Equivalent
52
25,000 363,250
...........................53
475,000 21,517,500
...........................
54
105,000 2,625,000
...........................
59
75,000 1,200.000
...........................
62
100,000 800,400
...........................
63
1,020,000 8,164,080
...........................
TOTAL1,800,00034,670,230
2. In the event that the Government of the Republic of the Philippines desires to
permit exports in the traditional categories enumerated in paragraph 1 to exceed in
any calendar year 110 percent of the levels of traditional trade enumerated in
paragraph 1 (as adjusted pursuant to paragraph 8), it shall so notify the Government
of the United States of America. Upon receipt of such notification, the Government
of the United States of America may request consultations on the matter if, in its
view, the proposed export levels would constitute an undue concentration of trade
threatening to cause a disruption of the United States market in these categories. The
Government of the United States of America shall accompany its request for
consultations with detailed information on the condition of the United States market
in the category or categories in question. The Government of the Republic of the
Philippines shall agree to enter such consultations, and during the coutse thereof the
Government of the Republic of the Philippines shall limit its exports on an annual
basis in the categories in question to 110 percent of the level of traditional trade
enumerated in paragraph 1 (as adjusted pursuant to paragraph 8).
3. During calendar year 1968, the first agreement year, the Government of the
Republic of the Philippines shall limit its exports to the United States in all
categories of cotton textiles, except those enumerated in paragraph 1, to an
aggregate limit of 22.3 million square yards equivalent.
4. Within the aggregate limit, the following group limits shall apply for the first
agreement year:
Group B. Made-ups, Non-traditional Apparel, and Miscellaneous, (Categories 28-51,
55-58, 61 and 64) 17.8 million square yards equivalent
Group C. Yarn and Fabric, Categories 1-27, 4.5 million square yards equivalent.
5. Within the aggregate limit specified in paragraph 3 and the applicable Group limit
specified in paragraph 4, the following specific limits shall apply for the first
agreement year:
Square
Yards
Group B Dozens Equivalent
32
(handkerchiefs) 3,000,000 4,980,000
...............39
275,000 969,925
.............................
42
30,000 217,020
.............................
43
60,000 434,040
.............................
45
30,000 665,580
.............................
46
10,000 244,570
.............................
50
10,000 177,970
.............................
51
10,000 177,970
.............................
60
8,500 441,660
.............................
61
1,550,000 7,362,500
.............................
Square Yards
Group C
Equivalent
9........
1,250,000
22........
1,500,000
26........ (Of which not more
1,250,000 than 300,000 square
yards may be
in duck.)
6. Within the aggregate limit, the limit for Group B may be exceeded by not more
than 5 percent, and the limit for Group C may be exceeded by not more than 10
percent. Within the applicable group limits, as it may be adjusted under this
provision, specific limits may be exceeded by not more than 5 percent.
7. (a) For any agreement year after the first agreement year and immediately
following a year of a shortfall in non-traditional categories (i.e., year in which cotton
textile exports from the Philippines to the United States in the B and C groups were
below the aggregate limit for the B and C groups and any group and specific limits
applicable to the category concerned) the Government of the Republic of the
Philippines may permit exports to exceed the aggregate, group and specific limits by
carryover in the following amounts and manner:
(i) The carryover shall not exceed the amount of the shortfall
in either the aggregate limit or any applicable group or
specific limit and shall not exceed either 5 percent of the
aggregate limit or 5 percent of applicable group limit in the
year of the shortfall, and(ii) in the case of shortfalls in the categories subject to
specific limits the carryover shall not exceed 5 percent of the
specific limit in the year of the shortfall, and shall be used in
the same category in which the shortfall occurred, and
(iii) in the case of shortfalls not attributable to categories
subject to specific limits, the carryover shall be used in the
same group in which the shortfall occurred, shall not be used
to exceed any applicable specific limit except in accordance
with the provisions of paragraph 6, and shall not be used to
exceed the limits in paragraph 9.
(b) The limits referred to in subparagraph (a) of this paragraph are
without any adjustments under this paragraph or paragraph 6.
(c) The carryover shall be in addition to the exports permitted in
paragraph 6.
8. In the second and third agreement year the limitations on exports established by
paragraphs 3, 4, 5 and 9, and the levels of traditional trade categories enumerated in
paragraph 1, shall be increased by 5 percent of the corresponding level for the
preceeding year, the latter level not to include any adjustment under paragraphs 6 or
7.
9. {a) Within the group limit for the B and C groups the square yard equivalent of
any shortfalls occuring in exports in the categories given specific limits may he used
in any category not given a specific limit.
(b) In the event the Government of the Philippines desires to permit
exports during any agreement year of more than the level of the
consultation limit in any category in Group B or in Group C not having a
specific limit, the Government of the Philippines shall request
consultation with the government of the United States of America on this
question. For the first agreement year the level of the consultation limit
for each category in Group B not having a specific limit shall be 350,000
square yards equivalent, and for each category in Group C not having a
specific limit it shall be 500,000 square yards equivalent. The
Government of the United States of America shall enter into such
consultations and, during the course thereof, shall provide the
Government of the Philippines with information on the condition of the
United States market in the category in question. Until agreements are
reached, the Government of the Philippines shall continue to limit
exports in that category for that agreement year to the consultation limit.
(c) In the event concentration of exports from the Philippines to the
United States of apparel items made of a particular fabric not of United
States origin causes or threatens to cause market disruption in the United
States, the Government of the United States of America may call for
consultations with the Government of the Republic of the Philippines in
order to reach a mutually satisfactory solution to the problem. The
Government of the Philippines shall agree to enter into such
consultations, and, during the course thereof, shall limit its exports of theitem in question to an annual level of 105 percent of its exports of that
item during the 12-month period immediately preceding month in which
consultations are requested.
10. The Government of the Republic of the Philippines shall use its best efforts to
space exports to the United States within each category evenly throughout the
agreement year taking into consideration normal seasonal factors.
11. Each Government agrees to supply promptly any available statistical data
requested by the other Government. In the implementation of this Agreement, the
system of categories and the factors for conversion into square yards equivalent set
forth in the Annex hereto shall apply. In any situation where the determination of an
article to be a cotton textile would be affected by whether a weight or value criterion
is used, the chief value criterion applied by the Government of the United States of
America shall apply.
12. For the duration of this Agreement, the Government of the United States of
America shall not limit the importation of cotton textiles from the Philippines to
levels lower than those provided in this Agreement.
13. The Governments agree to consult on any question arising in the implementation
of this Agreement.
14. The Governments agree that this Agreement, while governing trade in cotton
textiles, does not prejudice any interpretations by either Government of the
Agreement between the United States of America and the Republic of the
Philippines Concerning Trade and Related Matters signed at Washington on
[2]
September 6, 1955.
15. This Agreement shall enter into force on January 1, 1968, and continue in force
through December 31, 1970, provided that either Government may propose
revisions in the terms of the Agreement no later than 90 days prior to the beginning
of a new 12-month period. Either Government may terminate this Agreement
effective at the end of calendar year 1968 or 1969 by written notice to the other
Government given at least 90 days prior to the end of either calendar year; provided
that such termination shall not operate to prejudice the ability of the Philippines to
export cotton textiles to the United States in amounts preserving its proportionate
share of the United States market as represented by the level specified in this
Agreement for the calendar year in which Agreement is terminated.
16. 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.
If the foregoing proposal is acceptable to the Government of the Republic of the
Philippines, my Government will consider this note and your affirmative reply, as
constituting an agreement between our two Governments on the matter.
Accept, Sir, the renewed assurances of my highest consideration.
For the Secretary of State:ANTHONY M. SOLOMON
The Honorable Dr. Jose F. Imperial
Charge d'Affaires ad interim of the Philippines
ANNEX A
SQUARE YARD EQUIVALENT CONVERSION FACTORS BY CATEGORY
(See Phil. Treaty Series vol. 5 p. 604.)
II
EMBASSY OF THE PHILIPPINES
WASHINGTON, D.C.
September 21, 1967
Excellency:
I have the honor to refer to your note of September 21, 1967 proposing an agreement
between our two Governments concerning exports of cotton textiles from the
Philippines to the United States which reads as follows:
[See note I]
I have the honor to confirm on behalf of the Government of the Republic of the Philippines the proposals set forth in your note. Accordingly your note and this reply shall constitute an agreement between our two Governments. Aceept, Excellency, the renewed assurances of my highest consideration.
J. F. IMPERIAL Charge d'Affaires ad interim His Excellency Dean Rusk Secretary of State Washington, D.C. [1] 4 PTS 817. [2] 3 PTS 461.Source: Supreme Court E-Library