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Exchange of Notes (February 13 and March 2, 1981) between the Government of Canada and the Government of the Republic of Korea constituting an Agreement amending the Textile Restraints Agreement of December 13, 1978 [1981] CATSer 5 (2 March 1981)

E102439 - CTS 1981 No. 6

EXCHANGE OF NOTES BETWEEN THE GOVERNMENT OF CANADA AND THE GOVERNMENT OF THE REPUBLIC OF KOREA CONSTITUTING AN AGREEMENT AMENDING THE TEXTILE RESTRAINTS AGREEMENT OF DECEMBER 13, 1978

I

The Secretary of State for External Affairs to the Ambassador of the Republic of Korea

OTTAWA, February 13, 1981

No. ECO-0277

H. E. Kyoo Hyun Lee,
Ambassador,
Embassy of the Republic of Korea,
Ottawa

Excellency,

I have the honour to refer to the Agreement between Canada and the Republic of Korea concerning trade in cotton, wool and man-made fibre textile products effected by an Exchange of Notes of December 13, 1978.

I have further the honour to refer to discussions between delegations of the Governments of Canada and the Republic of Korea held in Ottawa, August 7-8, 1980 and to the Agreed Record of the discussions initialled in Ottawa on August 8, 1980 and attached as Annex I to this Note.

Consequent to these discussions, I have the honour to propose that the Agreement between our two countries concerning trade in cotton, wool and man-made fibre textile products be amended as follows:

1. Acrylic Yarn

The description of acrylic yarn specified in footnote 2 of Group II, Item 1 of the Agreement that currently reads:

"All types of machine and hand knitting yarns containing 50% or more by weight of acrylic fibre, except those yarns spun on a cotton system."

be amended to read:

"All types of machine and hand knitting yarns containing 50% or more by weight of acrylic fibre except those yarns composed entirely of fibres not exceeding 2½ inches in length."

2. Revised Restraint Limits

A. Acrylic Yarn (Group 2, Item 1B)

The 1980 restraint limit for acrylic yarn be revised to 2,116,800 pounds.

B. Structured Suits (Group 1, Item 2)

The restraint limits for structured suits be revised to read as follows:

January 1 - December 31, 1980: 188,000 units
January 1 - December 31, 1981: 184,000 units

C. Tailored-Collar Shirts (Group 1, Item 3)

The 1980 annual restraint limit for tailored-collar shirts be revised to 4,146,000 units.

If these proposals are acceptable to the Government of the Republic of Korea, I have the honour to propose that this Note, which is authentic in English and French, and your reply to that effect shall constitute an Agreement between our two Governments to amend the definition of acrylic yarn, and revise the quantitative restraint limits for acrylic yarn, structured suits and tailored-collar shirts in the Agreement between our two Governments concerning trade in cotton, wool and man-made fibre textile products, which shall enter into force on the date of your reply and shall be considered an integral part of the said Agreement.

Accept, Sir the renewed assurances of my highest consideration.

Mark MacGuigan

Secretary of State for External Affairs

ANNEX I

AGREED RECORD

Delegations of the Government of Canada, (represented by the Ministry of Industry, Trade and Commerce), and the Government of Korea, (represented by the Ministry of Commerce and Industry), met in Ottawa August 7-8, 1980 to review a number of issues pertaining to the administration of the Agreement Relating to the Trade in Certain Textile Products Between the Republic of Korea and Canada. The following subjects were discussed.

Acrylic Yarn

It is agreed that the description of acrylic yarn specified in footnote 2 of Group II Item I of the Agreement that currently reads:

"All types of machine and hand knitting yarns containing 50% or more by weight of acrylic fibre, except those yarns spun on a cotton system."

be amended to read:

"All types of machine and hand knitting yarns containing 50% or more by weight of acrylic fibre except those yarns composed entirely of fibres not exceeding 2½ inches in length."

Structured Suits

In view of certain misunderstandings related to the definition of structured suits (Group 1 Item 2) embodied in the bilateral agreement, the Canadian delegation clarified the intent and the interpretation of the description of structured suits contained in the agreement. The Korean delegation accepted the Canadian position and undertook to issue export licences and permit exports in keeping with this intent and interpretation. Further, the Korean delegation undertook not to issue further export recommendations for suits or jackets of a type that are intended to be covered under Item 2 but were previously shipped under Item 9.

Revised Restraint Limits

A) Acrylic Yarn (Group 2 Item 1B)

It is agreed that the revised 1980 restraint limit for acrylic yarn will be 2,116,800 pounds.

B) Structured Suits (Group 1 Item 2)

It is agreed that the revised restraint limits for structured suits will be:

January 1 - December 31, 1980: 188,000 units
January 1 - December 31, 1981: 184,000 units

C) Tailored - Collar Shirts (Group 1 Item 3)

It is agreed that the revised 1980 annual restraint limit for tailored-collar shirts is 4,146,000 units.

D) Woven Fabrics (Group 2 Item 2)

It is acknowledged that significant discrepancies exist between the Canadian and Korean statistics with respect to trade in woven fabrics. It is agreed that Canadian and Korean officials will attempt to reconcile these differences within a reasonable period of time. Dependent upon the results of this reconciliation, Canadian authorities agree to give positive consideration to any request by Korean authorities to increase the 1980 restraint limit for Group 2 Item 2D through the use of carryover from 1979.

Orderly Marketing

The Canadian delegation expressed concern with the heavy concentration of Korean shipments in certain months during 1979 and 1980, and with reference to paragraph 24 of the Agreement requested Korean authorities to ensure that exports of restrained items to Canada respect traditional patterns and be maintained at a relatively even flow. Particular reference was made to shipments of acrylic yarn and tailored-collar shirts. The Korean delegation acknowledged the Canadian concerns and will make an effort to have exports proceed in an orderly fashion.

Both delegations acknowledge the right of either Government to request consultations as specified in paragraph 28 of the Agreement.

The two delegations further agreed that notes on these matters will be exchanged in Ottawa between our respective countries.

C. W. Ross
For the Ministry of Industry, Trade and Commerce
Government of Canada

Chang Suk Whan
For the Ministry of Commerce and Industry
Government of the Republic of Korea

II

The Ambassador of the Republic of Korea to the Secretary of State for External Affairs

EMBASSY OF THE REPUBLIC OF KOREA

March 2, 1981

KeCa 81-17

The Honourable Mark MacGuigan
Secretary of State for External Affairs
Department of External Affairs
Ottawa, Canada

Dear Sir,

I have the honour to acknowledge the receipt of your Note No. ECO-0277 of February 13, 1981 which reads as follows:

"(See Canadian Note No. ECO-0277 of February 13, 1981)"

I have further the honour to accept on behalf of the Government of the Republic of Korea the foregoing proposals and to agree that your Note with Annex attached thereto and this Note shall be regarded as constituting an Agreement between the Republic of Korea and Canada, which shall enter into force on the date of this reply.

I avail myself of this opportunity to renew to you, the assurances of my highest consideration.

Kyoo Hyun Lee

Ambassador