INTEGRATION

At the start of each phase of integration, importing countries must integrate a specified minimum portion of their textile and apparel imports, based on total trade volume in 1990 for the items listed in the annex to the agreement. Total universe in the annex imported into the United States in 1990 was 17.0 billion square meter equivalents (sme). The timing of the 3 phases, the percentage of trade that must be integrated, and the increase in quota growth rates for products remaining under quota are shown below. 
                           MINIMUM                INCREASE TO THE 
          STARTING DATE  TRADE INTEGRATED        QUOTA GROWTH RATE
Phase I      1/1/1995        16%                     16%
Phase II     1/1/1998        17%                     25%
Phase III    1/1/2002        18%                     27%  
Final Phase  1/1/2005       all restrictions are eliminated

For each tranche, importing countries must select products from each of the following product group: tops and yarns, fabrics, made-up textile products and clothing.

Executive Order 11651 provides the legal basis for the Committee for the Implementation of Textile Agreements (CITA) to implement the Agreement. CITA extended a three-month period (from May 19 through August 17, 1994) for interested parties to submit comments on the first stage of integration. On October 13, 1994, CITA published the list of products for Phase I integration. It includes products which account for 16.21% of 1990 trade for products in the annex. 

CITA integrated the following in Phase I:

Total percent integrated:     16.21%

APPAREL                       1.92%
FABRIC                        2.39%
MADE-UPS                      3.44%
YARNS                         8.46%

 No current textile or apparel categories or products under
restraint are included in the first phase.
On January 30, 1995, CITA published a Federal Register notice containing the proposed list of products for second and third phase integration. This notice requested public comments on the list and also announced a public hearing to address significant issues related to phase 2 and 3 integration. The hearing was held on March 20 in Washington DC. CITA published the final list on May 1, 1995 (60 FR 21075). 
CITA will  integrate the following in Phase II:

Total percent integrated:     17.03%

APPAREL                       1.98%
FABRIC                        2.51%
MADE-UPS                      4.54%
YARNS                         8.00%

 See Federal Register Notice dated May 1, 1995
 (60 FR 21075) which lists specific categories integrated for each group.

CITA will integrate the following in Phase III:

Total percent integrated:     18.11%

APPAREL                       2.55%
FABRIC                        3.91%
MADE-UPS                      8.40%
YARNS                         3.26%

 See Federal Register Notice dated May 1, 1995 
(60 FR 21075) which lists specific categories integrated for each group.

In the Final Phase of Integration, CITA will integrate 48.65%:

APPAREL                       31.27%
FABRIC                        12.19%
MADE-UPS                      2.55%
YARNS                         2.64%


Prepared by: OTEXA/TDD  May 3, 1995
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