(b) Members whose total volume of exports of textiles and clothing is small in relation to the total volume of exports of other Members and which represent only a small percentage of total imports of that product into the importing Member shall be accorded differential and more favourable treatment when determining the economic conditions referred to in paragraph 8; 13 and 14. For those suppliers, due account shall be taken, in accordance with Article 1(2) and (3), of the future possibilities for the development of their trade and of the need to authorise commercial quantities of imports from those suppliers; 1. Members agree that circumvention by transhipment, diversion, misalmation of country or place of origin and falsification of official documents impedes the implementation of this Agreement on the Inclusion of the Textile and Clothing Sector in GATT 1994. Accordingly, Members should establish the necessary legislation and/or administrative procedures to combat such circumvention and take action. Members further agree that, in accordance with their national laws and procedures, they will cooperate fully to resolve problems arising from circumvention. 2. Measures under the safeguards referred to in Article 6 shall be taken in respect of certain textile and clothing products and not on the basis of the HS lines themselves. Products subject to GATT rules in each of the first three stages were to include the four main types of textiles and clothing: tops and yarns; fabrics; finished textile products; and clothing. All other restrictions not covered by the Multifibre Arrangement and not in conformity with the WTO Regular Agreements by 1996 had to be aligned or phased out by 2005.
The Textiles and Clothing Agreement (ATC) and all restrictions ended on 1 January 2005. The expiry of the ten-year transitional period for the implementation of the CCT means that trade in textile and clothing products is no longer subject to quotas under a special regime outside the normal WTO/GATT rules, but is now subject to the general rules and disciplines of the multilateral trading system. (16) The provisions on flexibility, i.e. switchover, carry-over and carry-over, which apply to all restrictions maintained under this Article, are the same as in fmt bilateral agreements for the period of 12 months preceding the entry into force of the WTO Agreement. No amount may be limited or maintained for the combined use of momentum, transmission and transmission. If further claims were to be made to the industry during the transition, the agreement allowed for the temporary imposition of additional restrictions under strict conditions. These transitional safeguards were not the same as the safeguard measures normally permitted under GATT, as they can be applied to imports from certain exporting countries. But the importing country had to prove that its domestic industry was suffering serious damage or threatening serious damage.