AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF THE PHILIPPINES AND THE GOVERNMENT OF SWEDEN REGARDING EXPORTS OF CERTAIN TEXTILE PRODUCTS FROM THE PHILIPPINES TO SWEDEN

ARTICLE 1

The following Agreement has been reached on the basis of the Arrangement Regarding International Trade in Textiles, particularly Article 1:2 and Article 4 thereof, and the provisions of GATT document COM./TEX/W/47.

ARTICLE 2

This Agreement shall apply for the period 1 November, 1980 – 31 October, 1982.

ARTICLE 3

The Government of the Philippines will limit exports from the Philippines to Sweden of the textile products listed in Annex I to the levels set out in that Annex. The date of actual shipment from the Philippines as evidenced by the bill of lading shall be considered to be the date of exportation.

ARTICLE 4

(a) This Agreement shall apply to exports from the Philippines to Sweden of only the textile products described in Annex I hereof of cotton, wool or man-made fibres, or blend thereof, in which any or all of those fibres in combination represent either the chief value of the fibres or 50 per cent or more by weight (or 17 per cent or more by weight of wool).

(b) This Agreement shall also apply to the products described in Annex I hereof, which are manufactured from impregnated fabrics as defined in Annex II of this Agreement.

ARTICLE 5

The Government of Sweden will admit imports of the textile products of Philippine origin, listed in Annex I, only when such imports are covered by Special Export Licenses as per specimen in Annex III. Such a document shall be issued by the Garments and Textile Export Board, be consecutively numbered, and bear an endorsement that the consignments concerned have been approved and debited to the agreed group levels set out in Annex I to this Agreement.

ARTICLE 6

(a) If in the period 1 November, 1979 to 31 October, 1980, the group levels specified in column (e) of Annex I to the Agreement of 27 May, 1980, are not fully utilized the Government of the Philippines may, after consultations with the Government of Sweden, during the period 1 November, 1980 to 31 October, 1981, approve exports of additional amounts (carryover) equivalent to such shortfalls provided that such exports –

(i) are in the same groups where the shortfalls occured;

(ii) do not exceed 5 per cent of the levels of these groups specified in column (e) of Annex I to this Agreement.

(b) If in the period 1 November, 1980 to 31 October, 1981, the group levels specified in column (e) of Annex I to this Agreement, are not fully utilized the Government of the Philippines may, after consultations with the Government of Sweden, during the period 1 November, 1981 to 31 October, 1982, approve exports of additional amounts (carryover) equivalent to such shortfalls provided that such exports –

(i) are in the same groups where the shortfalls occured;

(ii) do not exceed 5 per cent of the levels of these groups specified in column (f) of Annex I to this Agreement.

(c) During the period 1 November, 1980 to 31 October, 1981, the Government of the Philippines may, after consultations with the Government of Sweden, approve exports of amounts in excess of the group levels specified in column (e) of Annex I to this Agreement up to 5 per cent of those levels (carry forward). Where the group levels are increased by carry forward the Government of the Philippines shall inform the Government of Sweden of the carry forward quantities and debit these to the corresponding group levels in column (f) of Annex I to this Agreement.

(d) During each restraint period specified in Annex I to this Agreement, the additional export quantities resulting from carryover and carry forward taken together shall, for each group, not exceed 5 per cent of the respective agreed levels.

ARTICLE 7

If the information available to the Swedish authorities shows that the limit for the category of products specified in a Special Export License has already been reached or the unused portion of that limit is insufficient to cover the goods specified in the said license, the said authorities may refuse to admit any quantity in excess of the limit. In this event the Swedish Government shall promptly inform the Government of the Philippines. Both parties agree to consult each other within a reasonable period of time thereafter, with a view to obtaining a satisfactory solution within thirty (30) days.

ARTICLE 8

Both parties regard it as essential that exports from the Philippines to Sweden of the textile products listed in Annex I are spaced as evenly as possible, with due regard to normal seasonal factors, during the period of this Agreement and that, in the allocation of quotas, due consideration is given to traditional patterns of trade. Accordingly, the Government of the Philippines undertakes to achieve this.

ARTICLE 9

The Government of the Philippines will forward to the Government of Sweden monthly statistics on a cumulative basis of the quantities/weight of textile products under restraint listed in Annex I, for which duly endorsed Special Export Licenses for exports to Sweden have been issued for the relevant periods of agreement. The statistics shall reach the Embassy of Sweden in Manila within a period of two months from the month under reference.

The Government of Sweden will forward to the Government of the Philippines monthly statistics on a cumulative basis of imports from the Philippines of textile products under restraint as listed in Annex I. The statistics shall be forwarded to the Government of the Philippines, via the Embassy of Sweden in Manila, as soon as possible.

ARTICLE 10

The Government of the Philippines and the Government of Sweden agree to consult each other, at the request of either party, if any problem should arise from the implementation of this Agreement.

The Government of the Philippines and the Government of Sweden agree furthermore to enter into consultations before 31 October, 1982, on the conditions of a new Agreement. Should the parties be unable in the course of such consultations to reach a satisfactory solution within a reasonable period of time, Sweden shall have the right to introduce limits not lower than those specified in Annex I to this Agreement.

ARTICLE 11

The three Annexes to this Agreement shall be considered as integral parts of it.

ARTICLE 12

This Agreement has been drawn up in two originals in the English language.

DONE in Manila 12 February 1981

Entry into Force: February 12, 1981