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UNCLAS STATE 020817 
 
SIPDIS 
 
SIPDIS 
GENEVA AND BRUSSELS FOR USTR 
 
E.O. 12958: N/A 
TAGS: ECON ETRD WTO
SUBJECT: DEMARCHE ON U.S. WTO TAFT GOODS NEGOTIATING TEXT 
 
¶1.  This is an action request, please see paragraph 3. 
 
¶2.  Textiles, apparel, footwear, and travel goods are 
products of importance to a range of countries, both 
developed and developing.  On May 15, 2006, the United States 
tabled a negotiating text on reducing non-tariff barriers to 
trade related to labeling of textiles, apparel, footwear, and 
travel goods in the WTO Negotiating Group on Market Access. 
The United States has held several subsequent discussions on 
text and has listened to the views of many Members.  In order 
to facilitate further discussion and promote understanding of 
the negotiating text, the United States circulated questions 
to interested Members.  Both the European Communities and the 
United States have submitted answers to those questions with 
the hope that Members will find them helpful in preparing 
their own answers and gain from an increased understanding of 
various labeling requirements.  Now that Doha Round 
negotiations have formally resumed, the United States seeks 
co-sponsorship of this proposal from action addressee host 
governments. 
 
Action Request and key points: 
 
¶3.  U.S. delegation will be in Geneva on February 26 through 
March 2 discussing related proposal.   If possible, post is 
requested to approach host government and seek co-sponsorship 
of this proposal prior to February 26.  In discussions with 
host governments, Washington suggests that post draws on the 
following key points: 
 
-- On May 15, 2006 the United States tabled a negotiating 
text on reducing non-tariff barriers to trade related to 
labeling of textiles, apparel, footwear, and travel goods in 
the WTO Negotiating Group on Market Access, as part of the 
Doha Round. 
 
-- The U.S. negotiating text is an approach designed to 
facilitate trade in textiles, apparel, footwear, and travel 
goods.  These are highly important sectors in global trade, 
including exports from developing countries. 
 
-- The problem arises from existence of different labeling 
requirements.  The U.S. proposal tries to arrive at a common 
sense approach to introduce flexibility in how goods are 
labeled to facilitate and simplify trade. 
 
-- This proposal does not propose establishing new labeling 
requirements.  Quite the contrary, the focus is on how 
importing countries can ensure that the information they 
desire is provided in a manner that poses least potential for 
restricting trade. 
 
-- The United States held a number of meetings in 2006 and 
2007 in Geneva, both in open informal sessions and among 
potentially interested Members.  The U.S. delegation senses 
an interest among a number of countries, developed and 
developing, to continue exploring an agreement in this area. 
 
-- This initiative provides cost reduction to exporters of 
these goods and also to consumer.  Given the fact that these 
products are heavily traded by developing countries, this 
would help address that part of the mandate focusing on 
addressing non-tariff barriers of interest to developing 
countries. 
 
-- In order to facilitate further discussion and promote 
understanding of the negotiating text, the United States 
circulated questions to interested Members.  The European 
Communities and the United States have submitted answers to 
those questions with the hope that Members will find them 
helpful in preparing their own answers and gain from an 
increased understanding of various labeling requirements. 
 
-- The United States is seeking co-sponsorship of its 
negotiating text on reducing non-tariff barriers to trade 
related to labeling of textiles, apparel, footwear, and 
travel goods in the WTO Doha Round negotiations on 
non-agricultural market access. 
 
-- Given the interest your Geneva WTO delegation has 
expressed in the U.S. proposal over the last year, the United 
States would like to have you join as a co-sponsor. 
 
-- (If needed, should the host government indicate they are 
unable to co-sponsor.)  Are there particular issues that are 
preventing your government from co-sponsoring this 
initiative? 
 
-- (If asked about the EC proposal on textiles, apparel, and 
footwear.)  Additionally, the European Communities have a 
non-tariff barrier negotiating proposal on textiles, apparel, 
and footwear that focuses on labeling, registration of 
labeled products before importation, and conformity 
assessment.  We are working closely with the EC to move 
forward on our respective proposals. 
 
¶4.  If needed: 
 
The full text of the United States' negotiating proposal on 
Reducing Non-Tariff Barriers to Trade Related to Labeling of 
Textiles, Apparel, Footwear and Travel Goods is as follows: 
 
(Begin text) 
 
As affirmed in Annex B, Paragraph 26, of the Hong Kong 
Ministerial Text, non-tariff barriers (NTBs) are an integral 
and important part of the non-agricultural market access 
(NAMA) negotiations.  Consistent with paragraph 22 of the 
Ministerial Declaration, the United States now respectfully 
submits to WTO Members this draft negotiating text on 
reducing barriers to trade in textiles, apparel, footwear, 
and travel goods. 
 
The United States first indicated its interest in negotiating 
NTBs affecting textiles, apparel, footwear, and travel goods 
in its revised indicative list, tabled in November 2004 
(TN/MA/W46/Add.8/Rev.1).  On 1 December 2005, the United 
States circulated a concept paper to Members advocating more 
common approaches to labeling as a way to benefit exporters 
and consumers of textiles, apparel, and footwear across the 
globe (TN/MA/W/18/Add.12).  In March of 2006, the United 
States also circulated an industry-drafted non-paper 
describing specific labeling problems and proposed targeted 
solutions.   The United States has expanded coverage to 
include travel goods, based on subsequent conversations with 
industry and trading partners. 
 
Textiles, apparel, footwear, and travel goods are products of 
importance to a range of countries, both developed and 
developing.  The United States sees this text as a positive 
way for Members to reduce the diversity of labeling 
approaches in these areas, in order to save manufacturers 
time (i.e., to avoid delays to market) and money (i.e., to 
minimize costs of varying labeling schemes).  The aim is to 
preserve the ability of regulators to require certain 
information to be provided on such goods in order to inform 
and protect consumers, while minimizing the costs of 
providing this information; such savings would then be passed 
on to consumers. 
 
The United States looks forward to continued discussions with 
Members on this draft negotiating text and on eliminating 
non-tariff barriers to trade in textiles, apparel, footwear, 
and travel goods.  The United States is committed to an open 
and transparent process and is open to suggestions for 
improvement or additions to the draft negotiating text. 
 
Agreement on Reducing Non-Tariff Barriers to Trade Related to 
Labeling of Textiles, Apparel, Footwear and Travel Goods 
------------------------------------------ 
 
Members, 
 
Recalling that pursuant to paragraph 16 of the Doha 
Ministerial Declaration, Members agreed to negotiations aimed 
at reducing or as appropriate eliminating tariffs and 
non-tariff barriers on non-agricultural products; 
 
Recognizing the important contribution of the textile, 
apparel, footwear, and travel goods sectors to global 
economic growth and development; 
 
Noting that textiles, apparel, footwear, and travel goods 
suppliers and producers in exporting Members may require 
regulatory flexibility to adjust to new labeling requirements 
and the subsequent commercial conditions, especially in the 
event that entry into force of such requirements is sudden; 
 
Reaffirming that under the Agreement on Technical Barriers to 
Trade, Members shall ensure that technical regulations and 
conformity assessment procedures are not prepared, adopted or 
applied with a view to or with the effect of creating 
unnecessary obstacles to international trade, and allow a 
reasonable interval between the publication of technical 
regulations and conformity assessment procedures and their 
entry into force, among other obligations; 
 
Desiring to promote cooperative and effective approaches to 
enhance trade in textiles, apparel, footwear, and travel 
goods; 
 
Agree as follows: 
¶1. a. Members shall not require information on permanent 
labels or marking beyond: 
 
i. country of origin, fiber content, care instructions, and 
information necessary for consumer safety, with respect to 
textile and apparel goods; and 
ii. country of origin with respect to footwear and travel 
goods. 
 
b. Members shall ensure that, at their discretion, 
manufacturers may provide additional information on permanent 
labels or markings with respect to all such goods. 
 
c. Members remain free to require that reasonable additional 
information of use to consumers be provided on goods or 
packaging through non-permanent means, including, for 
example, information regarding (their) material content (for 
footwear and travel goods). 
 
¶2. Upon entry into force of technical regulations and 
conformity assessment procedures, Members should afford 
sympathetic consideration to requests for flexibility to 
adapt to modifications of labelling requirements, allowing 
for both old labels and new labels to be accepted during the 
transition period. 
 
(End Full Text) 
 
¶5.  The U.S. questions and answers in regards to the U.S. 
proposal on textiles, apparel, footwear, and travel goods, 
referred to in paragraph 2 are as follows. 
 
(Begin Text) 
 
-- What information do you require on permanent labels or 
markings on imported and domestic textile, apparel, footwear, 
and travel (TAFT) goods? 
 
U.S. ANSWER:  If the goods are imported into the USA, then 
the Tariff Act (administered by U.S. Customs) requires 
foreign origin marking to be permanently attached as the 
nature of the article will permit to most imported products. 
According to the Care Labeling Rule, administered by the 
Federal Trade Commission (FTC), clothing made primarily of 
textiles must have permanent care instructions.  Socks and 
other hosiery products, and garments that are totally 
reversible without pockets, do not need permanent care 
instructions. 
 
-- Do you require importer or dealer/distributor information 
on permanent labels or markings? 
 
U.S. ANSWER:  Such information (the RN number or business 
name) does not have to be permanent, but it should be 
attached in some "secure" manner if the goods are subject to 
the Textile, Wool, or Fur Acts.    (Note:  The RN number 
refers to Registered Identification Number.) 
 
-- Are manufacturers allowed to provide additional 
information on permanent labels or markings with respect to 
imported and domestic TAFT goods? 
 
U.S. ANSWER:  The FTC and U.S. Customs permits additional 
"non-required" information if it is not false, deceptive, or 
misleading.  U.S. Customs requires the actual foreign country 
of origin to be preceded by the indicators "made in" or 
"product of" if a non-origin reference may confuse the retail 
purchaser. 
 
-- What additional type of information do you require on 
imported and domestic TAFT goods or packaging that may be 
affixed through non-permanent means (e.g., hangtag, sticker, 
or on packaging)? 
 
U.S. ANSWER:  The Textile Act and Wool Act require disclosure 
of country of origin, fiber content, and RN number or 
business name, but the FTC does not require that any of these 
must be permanent.  They may all be on secure stickers or 
hang-tags.  U.S. Customs requires country of origin to be 
permanent, as the nature of the article will permit, such as 
by using a sewn-in label.  The Care Labeling Rule requires 
permanent care instructions for most textile clothing.  The 
FTC does not require any additional information (although the 
States may for products with stuffing or filling or padding). 
 
 
What lead-time do you provide for the shipper or importer to 
correct any labeling not in compliance or to apply for 
re-export or storage in a bonded warehouse? 
 
-- U.S. ANSWER:  Generally speaking, the goods should be 
properly labeled before they arrive at the U.S. port of 
entry.  If there is a small error with the labeling, the 
company may apply for a "one-time waiver" from FTC, but this 
must be done before U.S. Customs notices the problem.  Even 
if FTC staff is able to grant a waiver, U.S. Customs does not 
have to accept it.  Otherwise, any corrections to labeling 
should be done within 30 days of entry, prior to the 
liquidation of the entry before U.S. Customs. 
 
-- Do you provide a "grace period" during which labels 
conforming to previous requirements would still be accepted 
in the market place in cases where the lead-time for 
implementation of changes is not adequate for the trader to 
comply with new requirements? 
 
U.S. ANSWER:  This depends on the circumstances.  In some 
cases, FTC staff may grant a "one-time" waiver under the 
Textile Corporate Leniency Policy.  Some situations may not 
be suitable for such a waiver and there may be no grace 
period. 
 
-- Would you have to make any changes to your domestic 
legislation or regulation to apply the disciplines in the 
U.S. proposal? 
 
(End Text) 
 
¶6.  Please slug responses for USTR (BNorton) and Commerce 
(DMendoza and EBrzytwa).  State POC for this demarche is 
Aaron Scheibe in the Economic, Energy, and Business Affairs 
Bureau's Office of Multilateral Trade.  Mr. Scheibe may be 
contacted at (202) 647-8202 or scheibeap@state.gov. 
RICE