GENERAL AGREEMENT ON TARIFFS AND TRADE. ¹The previous bilateral agreement and a previous amendment are. ²See COM.TEX/SB/35, Annex B.

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1 GENERAL AGREEMENT ON TARIFFS AND TRADE RESTRICTED * COM.TEX/SB/ November 1991 Special Distribution. Textiles Surveillance Body ARRANGEMENT REGARDING INTERNATIONAL TRADE IN TEXTILES Notification under Article 4 Bilateral agreement between Finland and Macau The Textiles Surveillance Body received a notification from Finland of a bilateral agreement concluded with Macau for the period 1 January 1992 to 31 December The TSB, pursuant to its procedures regarding bilateral agreements concluded under Article 4, has examined the relevant documentation and is forwarding the text of the notification to participating countries for their information. ¹The previous bilateral agreement and a previous amendment are contained in COM.TEX.SB/1242 and ²See COM.TEX/SB/35, Annex B. ³For the TSB's observation on this notification see COM.TEX/SB/1647. English only/anglais seulement/inglés solamente

2 Page 2 MEMORANDUM OF UNDERSTANDING During the consultations held in Macau on May 1991, between a delegation from Finland and a delegation from Macau and having regard to the Arrangement Regarding International Trade in Textiles, in particular Article 4, and to the Protocol extending the said Arrangement dated 31 July 1986, agreement was reached as follows: 1. The following arrangements shall apply for the period of 1 January 1992 to 31 December Macau agrees to voluntarily restrain exports to Finland of the textile products specified in Annex I to the limits set out in that Annex. 3. Finland will, for the purpose of the present arrangements, admit imports of textile products of Macau origin set out in Annex I to the agreed limits, provided that such imports into Finland are covered by an export authorization and a certificate of origin, as per specimen at Annex III. The export authorization shall bear an endorsement by competent officials to the effect that the consignment concerned has been debited to the agreed levels for export to Finland for the relevant period. The date of shipment indicated on the export license shall be considered to be the date of exportation. 4. If the information available to the Finnish authorities through the import surveillance system shows that the quantitative limits for the products specified in the Annex I have already been reached, or that the unused balance of those limits are insufficient to cover the goods specified in the export authorization(s), the Finnish authorities may, subject to the provisions of Articles 5 and 6, refuse to admit imports of such products for any quantity in excess of the quantitative limits set out in Annex I. In such a case, the Finnish authorities shall immediately inform the Macau authorities. 5. Exports may exceed the limits in all categories by five (5) per cent, provided that a corresponding reduction is applied to the other limits. For the purpose of calculating such a reduction the conversion factors listed in Annex I shall apply. 6. Carryover and carry forward taken together shall not exceed eleven (11) per cent, of which carry forward shall not represent more than six (6) per cent. The limits set for 1991 in the previous agreement can be carried over to the limits of 1992 up to eleven (11) per cent of these limits. Furthermore, it was agreed that advance use of a portion of the quantitative limits for 1992 for each category of products is authorized up to six (5) per cent of the quantitative limits for 1991, as set out in the previous agreement.

3 Page 3 7. The utilization of the flexibilities referred to in paragraphs 5 and 6 above is subject to prior notification to the Finnish authorities. 8. Macau shall endeavour to ensure that exports of the textile products subject to quantitative limits are spaced out as evenly as possible over the year, due account being taken, in particular, of seasonal factors. 9. Imports of textile products specified in Annex II from Macau to Finland shall be subject to administrative control. In respect of these products, Finland will automatically admit imports upon presentation of export licenses issued by the competent Macau authorities. Finland may request consultations with Macau with a view to reaching a mutually acceptable solution for the imports of these products when limitations on trade in such products may be necessary to eliminate real risks of market disruption. The Parties shall enter into consultations as soon as possible with a view to reaching agreement within two months from the date on which the request for consultations has been received by Macau. Pending a mutually acceptable solution, Finland shall have the right to introduce a quantitative limit at an annual level not lower than that reached by imports of the product in question in the twelve-month period terminating two months preceding the month in which the request for consultations was made. 10. Finland will inform the Government of Macau when imports into Finland of textile products that have been debited to the agreed limits are subsequently re-exported from Finland. Macau may then credit the quantities involved to the appropriate limits. 11. Finland and Macau agree to consult each other, at the request of either Party, on any matter arising from the implementation of these arrangements. 12. Should Macau consider that, as a result of the restraints imports by these arrangements, Macau is being placed in an inequitable position vis-à-vis another supplier, Macau may request Finland to consult with a view to remedial action such as a reasonable modification of these arrangements. They furthermore agree to consult each other on the desirability of amendments to the Memorandum of Understanding upon completion of the GATT Uruguay Round negotiations, or upon expiry of the Protocol Extending the Arrangement Regarding International Trade in Textiles in Textiles, whichever comes earlier.

4 Page Macau will forward to Finland monthly statistics, on a cumulative basis, on the textiles products for which authorizations for export to Finland have been issued. Finland will forward to Macau monthly statistics, on a cumulative basis, on the imports of the said products from Macau. 14. Either Party may at any time terminate these arrangements provided that at least one hundred and twenty days' notice is given, in which event the arrangements shall come to an end at the expiry of the one hundred and twenty days' period. 15. The Annexes to this Memorandum of Understanding shall form an integral part hereof. Done in Macau on 24 May in the year of For the Government of Finland (signed) Erik Hagfors Ambassador For the Government of Macau (signed) Vitor Manuel da Silva Rodrigues Pessoa Secretary for Economy and Finance

5 (a) (b) (c) (d) (e) (f) CAT Finnish Statistical Description Unit of 1992 Limit Annual Growth Conversion Factor Number Quantity Rate (pieces/kg) COM.TEX/SB/1633 Page 50 m 1j e ANNEX I CAT-I CAT-II CAT-Ill , CAT-IVIV ex CAT-V CAT-V CAT-VI CAT-VI ex Jerseys, pullovers, cardigans, waistcoats, blouses, shirts, shirt-blouses, T-shirts, singlets and other vests, knitted or crocheted, of cotton or man-made fibres (excluding T-shirts and other vests of man-made filaments) Women's and girls' blouses, shirts and shirt-blouses of cotton or man-made fibres. Men's and boys' shirts of cotton or man-made fibres. Men's and boys' anoraks (including skijackets), wind-cheaters, wind-jackets and similar articles, jackets and blazers of cotton or man-made fibres. Men's and boys', women's and girls' trousers of cotton. Women's and girls' overcoats, car-coats, capes, cloaks, anoraks (including ski-jackets), wind-cheaters, wind-jackets and similar articles and jackets, of cotton and man-made fibres. 679, ,459 34,274 39, ,274 50, %

6 Page 6 ANNEX II Products subject to administrative control according to paragraph 9 of the agreement. (a) (b) Finnish Statistical Product Description Number Men's and boys' underpants and briefs, knitted or crocheted, of cotton or man-made fibres Women's and girls' briefs and panties, knitted or crocheted, or cotton or man-made fibres. ex Men's and boy's trousers of man-made ex fibres. ex Women's and girls' trousers of man-made ex fibres Brassieres

7 Page 7 ANNEXIII I Exporter (name, full address, country) Exporteur (nom, adress complet, pays) ORIGINAL 2 No 3 Quota year 4 Category number Annie contigenaire Numéro de catégorie 5 Consignee (name, full address, country) Designatoire (nom, adress complet, pays) EXPORT LICENCE (Textile products) LICENCE D'EXPORTATION (Produits textiles) 6 Country of origin Pays d'origin MACAU destination Country of Pays de destination FINLAND 6 8 Place and date of shipments - Means of transport 9 Supplementary details Lieu et date d'embarquement - Moyen de transport Données supplémentaires a ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 10 Marks and numbers - Number and kind of packages - DESCRIPTION OF GOODS 11 Quantity (1) 12 FOB Value (2) Marques et numéros - Numéro es nature de colis - DESIGNATION DES MARCHANDISES Quantité (1) Valeur FOB (2) 13 CERTIFICATION BY THE COMPETENT AUTHORITY - VISA DE é'autorite COMPETENTE I, the undersigned, certify that the goods described above have been charged against the quantitative limit established for the year shown in box No 3 in respect of the category shown in box No 4 by the provisions regulating trade in textile products with Finaland. Je sousigné certifie que les marchandises désignées ci-dessous ont été importées sur la limit quantitative fixée pour l'année indiquée dans la case No 3 pour la catégorie désignée dens la case No 4 dans le cadre des disposiones régissant les échanges de produits textiles avec Finland. 14 Competent autnority (Name, full address, country) Autorité compétant (Nom. adress couplet, pays) At - A on - le (Signature) (Sort - Cadre)

8 Page 8 ANNEX III EXPORTER M_.".m i c=sl#niaao mes * =,.McXU 4 name vefto ORIGINAL MACAU SERVICOSDE ECONOMIA (=RTtFICAfO DE ORIGEM CERTIFICATE OF ORIGIN MsaIrs~~L@ F f oi IUws _~~~~~~~~~A&= = V XA IT0-W Ot LIU MLV oma w VA TZ?1JESm by LA=( - I VIA 5=W POSTAL # 4. Wn~ OOAi 043 MfCSUA FZr -at~~~~~~~~~~ ~ t~{ ṢuuLsestui tsp_ptti@-das MMwADaU Z' phiry ty of- pffa w3=c-c ai coocm = r(:w S) QUI 01 _~~~~~~~~~~~~wo lo ril, a M G. n_ qua a maca o re ( p ta '.~ Udw o. = f M t M.ACAUL. I ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~SWTA&~',Q=^TW" a 3&&w --- -