United States - Measures Affecting Textiles and Apparel Products (II) - Request for Consultations by the European Communities

World Trade Organization WT/DS151/1 G/TMB/N/341 G/RO/D/3 G/TBT/D/19 G/L/279 25 November 1998 (98-4740) Original: English   UNITED STATES  measures affecting textiles and apparel products (II) Request for Consultations by the European Communities The following communication, dated 19 November 1998, from the Permanent Delegation of the European Commission to the Permanent Mission of the United States and the Chairman of the Dispute Settlement Body, is circulated in accordance with Article 4.4 of the DSU. _______________ My authorities have instructed me to request consultations with the United States of America pursuant to Article 4 of the Understanding on Rules and Procedures Governing the Settlement of Disputes, Article 8.4 of the Agreement on Textiles and Clothing, Article 7 of the Agreement on Rules of Origin, Article 14.1 of the Agreement on Technical Barriers to Trade (TBT Agreement) and Article XXII of the General Agreement on Tariffs and Trade 1994 ("GATT 94") regarding the change to US rules of origin for textiles and apparel products. This issue has already been discussed between the United States of America and the European Communities and a solution was mutually agreed in July 1997 and notified to the Chairman of the Dispute Settlement Body on 11 February  1998. However, the European Communities consider that the United States of America has not implemented its commitments as contained in this agreement with the result that, in the view of the European Communities , the situation remains inconsistent with US obligations under WTO rules. The United States of America has introduced changes to its rules of origin of textile and apparel products, which entered into force on 1 July 1996. Some of these rules, in particular the rules contained in Section 334 of the Uruguay Round Agreements Act and implemented through Customs regulation, adversely affect exports of European Communities fabrics, scarves and other flat textile products to the United Stat