USTR Seeks Comments on WTO Consultations Regarding Egypt's Import Duties on Textile & Apparel Products
The Office of the U.S. Trade Representative (USTR) has issued a notice announcing that on December 23, 2003, the U.S. requested World Trade Organization (WTO) consultations with Egypt regarding the import duties that Egypt applies to textile and apparel products. The USTR believes that the duties Egypt actually applies (on a "per article" basis) greatly exceed the ad valorem bound rates that Egypt agreed to apply in the Uruguay Round of WTO negotiations.
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The USTR invites written comments from the public concerning the issues raised in this dispute.
Egypt's Textile & Apparel Duties Appear Inconsistent with WTO Obligations
According to the USTR, in the Uruguay Round, Egypt agreed to remove a general prohibition on the importation of apparel and made-up textile products by January 1, 2002. Egypt also agreed to bind its duties under HS Chapters 61 (articles of apparel and clothing, knitted and crocheted) and 62 (articles of apparel and clothing, not knitted or crocheted) at an ad valorem rate of 46% in 2003, 43% in 2004 and 40% thereafter. In addition, Egypt also agreed to bind its duties under HS Chapter 63 (other made up textile articles; sets; worn clothing) at an ad valorem rate of 41% in 2003, 38% in 2004, and 35% thereafter.
However, just before the import prohibition was set to expire, the USTR states that Egypt's President issued Decree No. 469 amending the customs duties applicable to a number of imported articles, including articles that enter under HS Chapters 61, 62 and 63. The amended duties were specific (i.e., in Egyptian pounds (L.E.) per piece of clothing), rather than ad valorem. The USTR states that it appears that the specific duties applied by Egypt greatly exceed Egypt's bound rates of duty. Specifically, it appears that the ad valorem equivalent of these duties range from a low of 141% to a high of 51,296%, which are well above the bound rates.
The USTR therefore believes that these tariffs, Decree No. 469, and any related measures are inconsistent with the obligations of Egypt under several WTO provisions, including Article II of the General Agreement on Tariffs and Trade 1994 (GATT 1994) and Article 7 of the Agreement on Textiles and Clothing (ATC).
- submit comments on or before March 26, 2004 to be assured of timely consideration.
USTR contact - Jason Kearns (202) 395-3582
USTR notice (D/N WTO/DS-305, FR Pub 03/04/04) available at http://a257.g.akamaitech.net/7/257/2422/14mar20010800/edocket.access.gpo.gov/2004/pdf/04-4804.pdf