February 15, 2000

• China has agreed to incorporate the textile-specific safeguard provided for in the U.S.-China Bilateral Textile Agreement. Accordingly

-- Quotas will remain in place under the WTO Agreement on Textiles and Clothing (ATC) until the end of 2004, when the ATC expires.
-- A textile-specific safeguard will be available until the end of 2008.

Scope and Standard for Textile Safeguard

• Covers all textile and apparel products under the WTO Agreement on Textiles and Clothing (ATC) as of January 1, 1995.
• Permits restraints on imports that are "due to market disruption, threatening to impede the orderly development of trade in these [textile and apparel] products."

• Restraints on imports become effective on receipt of a request for consultations
• Restraints may remain in place for up to a year unless we go through procedures to reapply the safeguard.
• China has no right to retaliate against a restraint.

• The terms and procedures of the textile safeguard are enforceable through dispute settlement in the WTO.

Last modified: Thursday, October 14, 2004 PM