Russia Bilateral Textile Agreement

EXTENSION OF BILATERAL AGREEMENT

The Embassy Refers the Ministry of Foreign Affairs to the Agreement Between the Government of the United States of America and the Government of the Russian Federation Relating to Trade in Textiles and Apparel Effected by an Exchange of Notes at Moscow on August 13, 1996, and September 9, 1996, as Amended and Extended, and the Text For an Agreement Renewal as Negotiated in Washington D.C.

On February 14 and 15, 2001.

The Government of the United States of America Proposes to Extend for a Four Year Period the Bilateral Agreement Concerning Trade in Category 435, Womens Wool Coats (As Defined in the Correlation: Textile and Apparel Categories With the Harmonized Tariff Schedule of the United States Effected by an Exchange of Notes in Moscow on August 13, 1996 and September 9, 1996, as Amended and Extended.

The Quota Limit for Category 435 for the Extended Agreement Period Is as Follows:

2001 2002 2003 2004

55,204 Dz 56,309 Dz 57,435 Dz 58,583 Dz

This Agreement Will Supercede the Provisions of the Exchange of Notes Between the Governments of the United States and the Russian Federation of December 15, 2000 and January 12, 2001 Concerning Trade in Category 435.

If this Proposal Is Acceptable to the Government of the Russian Federation, this Note and a Note of Acceptance on Behalf of the Government of the Russian Federation Shall Constitute an Agreement Between the Two Governments, Which Shall Enter into Force on the Date of the Ministry's Reply, with Effect from January 1, 2001.

Embassy of the United States of America

The Embassy of the United States of America presents its compliments to the Ministry of Foreign Affairs of the Russian Federation and has the honor to refer to discussions held be representatives of the Government of the United States of America and the Government of the Russian Federation in Moscow October 16-18, 1995 and August 5, 1996 and in Geneva November 30-December 1, 1995 and May 26, 1996 and to the Memorandum of Understanding initialed at Geneva on December 1, 1995 and the Memorandum of Understanding signed at Moscow on August 5, 1996, concerning bilateral textile and apparel trade issues.

Noting that, in the December 1, 1995 Memorandum of Understanding, the two governments agreed as follows:

1. To establish a visa arrangement to take effect on March 1, 1996, for Russian exports of category 435, women's and girls' wool coats, as defined in the Correlation: Textile and Apparel Categories with the Harmonized Tariff Schedule of the United States.

2. Beginning with March 1, 1995 data, the Government of the United States shall conduct a review, in cooperation with the Government of the Russian Federation, of all available documents as of the date of this understanding for category 435 exports from Russia to the United States and use their best efforts to determine the validity of such documents.

3. Where the Government of the United States finds, that, based on annual U.S. import data, the level of imports in category 435, originating in the Russian Federation, into the United States exceeds 47,000 dozens for a 12-month period, the Government of the United States may request consultations with a view to reaching a mutually satisfactory solution. Action taken under this paragraph may be taken only after completion of the review described in paragraph 2.

4. Should the Government of the United States and the Government of the Russian Federation be unable to reach a mutually satisfactory solution within 90 days from the date of the request from consultations, the United States shall have the right to introduce an annual level on category 435 exports from the Russian Federation to the United States at 6 percent above the level specified in paragraph 3.

5. That, should a level be established pursuant to paragraph 4, maximum carryover and carryforward of ten percent, will be available with carryforward not to exceed five percent, and annual growth at two percent.

6. In order to promote orderly and equitable development of trade and investment in their textiles and clothing sectors, the two delegations agreed to recommend a meeting in February-March 1996 to their respective industries and institutions, and will support this meeting by all means at their disposal.

7. This agreement may be terminated 90 days after receipt of written notice from either government.

In the August 5, 1996 Memorandum of Understanding, the parties agreed to amend and replace the December 1, 1995 Memorandum of Understanding. In conformity with the August 5, 1996 Memorandum of Understanding, the Embassy has the honor to propose that the two Governments agrees as follows:

1. Russian exports of category 435 to the United States for the period of October 1, 1996 through September 30, 1997 will be a level of 51,000 dozens.

2. This level will have annual growth of 2 percent and flexibility provisions of 11 percent carryover and 6 percent carryforward, the combination of which will not exceed 11 percent.

3. The term of this Memorandum of Understanding will be four years beginning with the annual period specified in paragraph 1 above.

4. The visa arrangement to be concluded by exchange of notes will begin October 1, 1996 with a grace period until November 1, 1996, if the present exchange of notes is completed by August 19, 1996.

5. For the purposes of this Understanding, exports in category 435 are as defined in the Correlation: Textile and Apparel Categories with the Harmonized Tariff Schedule of the United States, Annotated.

6. Based on the foregoing, category 435 annual levels during the four-year period will be as follows:

PERIOD: AMOUNT:

October 1, 1996-September 30, 1997 51,000 dozens

October 1, 1997-September 30, 1998 52,020 dozens

October 1, 1998-September 30, 1999 53,060 dozens

October 1, 1999-September 30, 2000 54,122 dozens

The Embassy further proposes that if these proposals are acceptable to the Government of the Russian Federation, this note and the Russian Federation's note in reply shall constitute an agreement between the two Governments, which shall enter into force on the date of the Government of the Russian Federation's note in reply. The Memoranda of Understanding of December 1, 1995 and August 5, 1996 will therewith be declared null and void.

The Embassy of the United States of America avails itself of the opportunity to extend to the Ministry of Foreign Affairs of the Russian Federation the renewed assurances of its highest consideration.

Embassy of the United States of America For the Russian Federation

Moscow, August 13, 1996 September 9, 1996

Ministry of Foreign Economic Relations

I have the honour to acknowledge receipt of your letter of March 18, 1997 which reads as follows:

"I have the honor to refer to the Bilateral Textile Agreement on category 435 effected by exchange of notes between the Embassy of the United States of America in Moscow and the Ministry of Foreign Affairs of the Russian Federation on August 13, 1996 and September 9, 1996 and your letter of February 18, 1997 requesting a change concerning the Agreement Periods and Limits for category 435. On behalf of the Government of the United States of America, in response to your request, I propose that the Periods and Limits for category 435 set out in paragraph 6 in the exchange of notes be changed to the following:

PERIOD: AMOUNT:

October 1, 1996 - December 31, 1997 64,005 DOZ

January 1, 1998 - December 31, 1998 52,020 DOZ

January 1, 1999 - December 31, 1999 53,060 DOZ

January 1, 2000 - December 31, 2000 54,122 DOZ

We believe that this proposal will accommodate Russia's request. If the foregoing proposal regarding the Agreement Periods and Limits for category 435 is acceptable to the Government of the Russian Federation, then this letter and a letter of confirmation on behalf of the Government of the Russian Federation shall constitute an amendment to the Bilateral Textile Agreement on category 435.

Sincerely, . . . "

I have the honour to confirm that my Government is in agreement with the contents of your letter.

Sincerely Yours,

Andrey K. Kushnirenko

Deputy Head of the Department for

Regulation of the External Economic

Activities of the Ministry for

Foreign Economic Relations of the

Russian Federation

March 26, 1997

This link will send you to the US Department of Commerce Office of Textiles and Apparel's agreements page for current quota restraints, weekly performance reports, a contact point for inquiries, and other updated information.

Textiles and Apparel Agreements Link