Title:Agriculture and Sanitary and Phytosanitary Measures -- Chap. 7
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:129142 
                                     Chapter Seven 
 
                  Agriculture and Sanitary and Phytosanitary Measures 
 
 
                                Section A - Agriculture 
 
 
            Article 701:    Scope and Coverage 
 
            1.   This Section applies to measures adopted or maintained by 
            a Party relating to agricultural trade. 
 
            2.   In the event of any inconsistency between this Section and 
            another provision of this Agreement, this Section shall prevail 
            to the extent of the inconsistency. 
 
 
            Article 702:    International Obligations 
 
            1.   Annex 702.1 applies to the Parties specified in that Annex 
            with respect to agricultural trade under certain agreements 
            between them. 
 
            2.   Prior to adopting pursuant to an intergovernmental 
            commodity agreement, a measure that may affect trade in an 
            agricultural good between the Parties, the Party proposing to 
            adopt the measure shall consult with the other Parties with a 
            view to avoiding nullification or impairment of a concession 
            granted by that Party in its Schedule to Annex 302.2 (Tariff 
            Elimination). 
 
            3.   Annex 702.3 applies to the Parties specified in that Annex 
            with respect to measures adopted or maintained pursuant to an 
            intergovernmental coffee agreement. 
 
 
            Article 703:    Market Access 
 
            1.   The Parties shall work together to improve access to their 
            respective markets through the reduction or elimination of 
            import barriers to trade between them in agricultural goods. 
 
            Customs Duties, Quantitative Restrictions, and Agricultural 
            Grading and Marketing Standards  
 
            2.   Annex 703.2 applies to the Parties specified in that Annex 
            with respect to customs duties and quantitative restrictions, 
            trade in sugar and syrup goods, and agricultural grading and 
            marketing standards. 
 
 
 
                                          7-1  
 
 
 
 
 
 
  
 
 
 
 
 
            Special Safeguard Provisions 
 
            3.   Each Party may, in accordance with its Schedule to Annex 
            302.2, adopt or maintain a special safeguard in the form of a 
            tariff rate quota on an agricultural good listed in its Section 
            of Annex 703.3.  Notwithstanding Article 302.2, a Party may not 
            apply an over-quota tariff rate under a special safeguard that 
            exceeds the lesser of: 
 
                 (a)  the most-favored-nation (MFN) rate as of July 1, 
                      1991; and  
 
                 (b)  the prevailing MFN rate. 
 
            4.   No Party may, with respect to the same good and the same 
            country, at the same time: 
 
                 (a)  apply an over-quota tariff rate under paragraph 3; 
                      and  
 
                 (b)  take an emergency action covered by Chapter Eight 
                      (Emergency Action). 
 
 
            Article 704:    Domestic Support 
 
                 The Parties recognize that domestic support measures can 
            be of crucial importance to their agricultural sectors but may 
            also have trade distorting and production effects and that 
            domestic support reduction commitments may result from 
            agricultural multilateral trade negotiations under the General 
            Agreement on Tariffs and Trade (GATT).  Accordingly, where a 
            Party supports its agricultural producers, that Party should 
            endeavor to work toward domestic support measures that: 
 
                 (a)  have minimal or no trade distorting or production 
                      effects; or 
 
                 (b)  are exempt from any applicable domestic support 
                      reduction commitments that may be negotiated under 
                      the GATT. 
 
            The Parties further recognize that a Party may change its 
            domestic support measures, including those that may be subject 
            to reduction commitments, at the Party's discretion, subject to 
            its rights and obligations under the GATT. 
 
 
 
 
 
 
 
                                          7-2  
 
 
 
 
 
 
  
 
 
 
 
 
            Article 705:    Export Subsidies 
 
            1.   The Parties share the objective of the multilateral 
            elimination of export subsidies for agricultural goods and 
            shall cooperate in an effort to achieve an agreement under the 
            GATT to eliminate those subsidies. 
 
            2.   The Parties recognize that export subsidies for 
            agricultural goods may prejudice the interests of importing and 
            exporting Parties and, in particular, may disrupt the markets 
            of importing Parties.  Accordingly, in addition to the rights 
            and obligations of the Parties specified in Annex 702.1, the 
            Parties affirm that it is inappropriate for a Party to provide 
            an export subsidy for an agricultural good exported to the 
            territory of another Party where there are no other subsidized 
            imports of that good into the territory of that other Party. 
 
            3.   Except as provided in Annex 702.1, where an exporting 
            Party considers that a non-Party is exporting an agricultural 
            good to the territory of another Party with the benefit of 
            export subsidies, the importing Party shall, on written request 
            of the exporting Party, consult with the exporting Party with a 
            view to agreeing on specific measures that the importing Party 
            may adopt to counter the effect of any such subsidized imports.  
            If the importing Party adopts the agreed-upon measures, the 
            exporting Party shall refrain from applying, or immediately 
            cease to apply, any export subsidy to exports of such good to 
            the territory of the importing Party. 
 
            4.   Except as provided in Annex 702.1, an exporting Party 
            shall deliver written notice to the importing Party at least 
            three days, excluding weekends, prior to adopting an export 
            subsidy measure on an agricultural good exported to the 
            territory of another Party.  The exporting Party shall consult 
            with the importing Party within 72 hours of receipt of the 
            importing Party's written request, with a view to eliminating 
            the subsidy or minimizing any adverse impact on the market of 
            the importing Party for that good.  The importing Party shall, 
            when requesting consultations with the exporting Party, at the 
            same time, deliver written notice to a third Party of the 
            request.  A third Party may request to participate in such 
            consultations. 
 
            5.   Each Party shall take into account the interests of the 
            other Parties in the use of any export subsidy on an 
            agricultural good, recognizing that such subsidies may have 
            prejudicial effects on the interests of the other Parties. 
 
            6.   The Parties hereby establish a Working Group on 
            Agricultural Subsidies, comprising representatives of each 
            Party, which shall meet at least semi-annually or as the 
 
 
                                          7-3  
 
 
 
 
 
 
  
 
 
 
 
 
            Parties may otherwise agree, to work toward elimination of all 
            export subsidies affecting agricultural trade between the 
            Parties.  The functions of the Working Group shall include: 
 
                 (a)  monitoring the volume and price of imports into the 
                      territory of any Party of agricultural goods that 
                      have benefitted from export subsidies; 
 
                 (b)  providing a forum for the Parties to develop mutually 
                      acceptable criteria and procedures for reaching 
                      agreement on the limitation or elimination of export 
                      subsidies for imports of agricultural goods into the 
                      territories of the Parties; and 
 
                 (c)  reporting annually to the Committee on Agricultural 
                      Trade, established under Article 706, on the 
                      implementation of this Article. 
 
            7.   Notwithstanding any other provision of this Article: 
 
                 (a)  if the importing and exporting Parties agree to an 
                      export subsidy for an agricultural good exported to 
                      the territory of the importing Party, the exporting 
                      Party or Parties may adopt or maintain such subsidy; 
                      and 
 
                 (b)  each Party retains its rights to apply countervailing 
                      duties to subsidized imports of agricultural goods 
                      from the territory of a Party or non-Party. 
 
 
            Article 706:    Committee on Agricultural Trade 
 
            1.   The Parties hereby establish a Committee on Agricultural 
            Trade, comprising representatives of each Party. 
 
            2.   The Committee's functions shall include: 
 
                 (a)  monitoring and promoting cooperation on the 
                      implementation and administration of this Section; 
 
                 (b)  providing a forum for the Parties to consult on 
                      issues related to this Section at least semi-annually 
                      and as the Parties may otherwise agree; and 
 
                 (c)  reporting annually to the Commission on the 
                      implementation of this Section. 
 
 
 
 
 
 
                                          7-4  
 
 
 
 
 
 
  
 
 
 
 
 
            Article 707:    Advisory Committee on Private Commercial 
                            Disputes regarding Agricultural Goods 
 
                 The Committee shall establish an Advisory Committee on 
            Private Commercial Disputes regarding Agricultural Goods, 
            comprising persons with expertise or experience in the 
            resolution of private commercial disputes in agricultural 
            trade.  The Advisory Committee shall report and provide 
            recommendations to the Committee for the development of systems 
            in the territory of each Party to achieve the prompt and 
            effective resolution of such disputes, taking into account any 
            special circumstance, including the perishability of certain 
            agricultural goods. 
 
 
            Article 708:    Definitions 
 
            For purposes of this Section: 
 
            agricultural good means a good provided for in any of the 
            following: 
 
                 (a)  Harmonized System (HS) Chapters 1 through 24 (other 
                      than a fish or fish product); or 
 
                 (b)  HS subheading       2905.43        (manitol) 
                      HS subheading       2905.44        (sorbitol) 
                      HS heading          33.01               (essential 
                                                              oils) 
                      HS headings         35.01 to 35.05      (albuminoidal 
                                                              substances, 
                                                              modified 
                                                              starches, 
                                                              glues) 
                      HS subheading       3809.10        (finishing agents) 
                      HS subheading       3823.60        (sorbitol n.e.p.) 
                      HS headings         41.01 to 41.03      (hides and 
                                                              skins) 
                      HS heading          43.01               (raw 
                                                              furskins) 
                      HS headings         50.01 to 50.03      (raw silk and 
                                                              silk waste) 
                      HS headings         51.01 to 51.03      (wool and 
                                                              animal hair) 
                      HS headings         52.01 to 52.03      (raw cotton, 
                                                              cotton waste 
                                                              and cotton 
                                                              carded or 
                                                              combed) 
                      HS heading          53.01               (raw flax) 
                      HS heading          53.02               (raw hemp) 
 
 
                                          7-5  
 
 
 
 
 
 
  
 
 
 
 
 
            (For purposes of reference only, descriptions are provided next 
            to the corresponding tariff provision.) 
 
            customs duty means "customs duty" as defined in Article 318 
            (National Treatment and Market Access for Goods - Definitions); 
 
            duty-free means "duty-free" as defined in Article 318; 
 
            fish or fish product means a fish or crustacean, mollusc or 
            other aquatic invertebrate, marine mammal, or a product thereof 
            provided for in any of the following: 
 
                      HS Chapter          03             (fish and 
                                                         crustaceans, 
                                                         molluscs and other 
                                                         aquatic 
                                                         invertebrates) 
                      HS heading          05.07               (tortoise- 
                                                              shell, 
                                                              whalebone and 
                                                              whalebone 
                                                              hair and 
                                                              those fish or 
                                                              crustaceans, 
                                                              molluscs or 
                                                              other aquatic 
                                                              invertebrates 
                                                              , marine 
                                                              mammals, and 
                                                              their 
                                                              products 
                                                              within this 
                                                              heading) 
                      HS heading          05.08               (coral and 
                                                              similar 
                                                              materials) 
                      HS heading          05.09               (natural 
                                                              sponges of 
                                                              animal 
                                                              origin) 
                      HS heading          05.11               (products of 
                                                              fish or 
                                                              crustaceans, 
                                                              molluscs or 
                                                              other aquatic 
                                                              invertebrates 
                                                              ; dead 
                                                              animals of 
                                                              Chapter 3) 
                      HS heading          15.04               (fats and 
                                                              oils and 
 
 
                                          7-6  
 
 
 
 
 
 
  
 
 
 
 
 
                                                              their 
                                                              fractions, of 
                                                              fish or 
                                                              marine 
                                                              mammals) 
                      HS heading          16.03               ("non-meat" 
                                                              extracts and 
                                                              juices) 
                      HS heading          16.04               (prepared or 
                                                              preserved 
                                                              fish) 
                      HS heading          16.05               (prepared 
                                                              preserved 
                                                              crustaceans, 
                                                              molluscs and 
                                                              other aquatic 
                                                              invertebrates 
                                                              ); 
                      HS subheading       2301.20        (flours, meals, 
                                                         pellets of fish) 
 
            (For purposes of reference only, descriptions are provided next 
            to the corresponding tariff provision.) 
 
            material means "material" as defined in Article 415 (Rules of 
            Origin - Definitions); 
 
            over-quota tariff rate means the rate of customs duty to be 
            applied to quantities in excess of the quantity specified under 
            a tariff rate quota; 
              
            sugar or syrup good means "sugar or syrup good" as defined in 
            Annex 703.2; 
 
            tariff item means a "tariff item" as defined in Annex 401; and 
 
            tariff rate quota means a mechanism that provides for the 
            application of a customs duty at a certain rate to imports of a 
            particular good up to a specified quantity (in-quota quantity), 
            and at a different rate to imports of that good that exceed 
            that quantity. 
 
 
 
 
 
 
 
 
 
 
 
 
                                          7-7  
 
 
 
 
 
 
  
 
 
 
 
 
                                                                Annex 702.1                                              
                  ___________ 
 
 
                                      Annex 702.1 
 
                           Incorporation of Trade Provisions 
 
 
            1.   Articles 701, 702, 704, 705, 706, 707, 710 and 711 of the 
            Canada - United States Free Trade Agreement apply, as between 
            Canada and the United States, which Articles are hereby 
            incorporated into and made a part of this Agreement. 
 
            2.   The definitions of the terms specified in Article 711 of 
            the Canada - United States Free Trade Agreement shall apply to 
            the Articles incorporated by paragraph 1. 
 
            3.   For purposes of this incorporation, any reference to 
            Chapter Eighteen of the Canada -United States Free Trade 
            Agreement shall be deemed to be a reference to Chapter Twenty 
            (Institutional Arrangements and Dispute Settlement Procedures) 
            of this Agreement. 
 
            4.   The Parties understand that Article 710 of the Canada - 
            United States Free Trade Agreement incorporates the GATT rights 
            and obligations of Canada and the United States with respect to 
            agricultural, food, beverage and certain related goods, 
            including exemptions by virtue of paragraph (1)(b) of the 
            Protocol of Provisional Application of the GATT and waivers 
            granted under Article XXV of the GATT. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                          7-8  
 
 
 
 
 
 
  
 
 
 
 
 
                                                                Annex 702.3                                              
                  ___________ 
 
 
                                      Annex 702.3 
 
                           Intergovernmental Coffee Agreement 
 
 
                 Notwithstanding Article 2101 (General Exceptions), neither 
            Canada nor Mexico may adopt or maintain a measure, pursuant to 
            an intergovernmental coffee agreement, that restricts trade in 
            coffee between them. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                          7-9  
 
 
 
 
 
 
  
 
 
 
 
 
                                                                Annex 703.2                                              
                  ___________ 
 
 
                                      Annex 703.2 
 
                                     Market Access 
 
                        Section A - Mexico and the United States 
 
            1.   This Section applies only as between Mexico and the United 
            States. 
 
            Customs Duties and Quantitative Restrictions 
 
            2.   With respect to agricultural goods, Article 309(1) and (2) 
            (Import and Export Restrictions) applies only to qualifying 
            goods. 
 
            3.   Each Party waives its rights under Article XI:2(c) of the 
            GATT, and those rights as incorporated by Article 309, 
            regarding any measure adopted or maintained with respect to the 
            importation of qualifying goods. 
 
            4.   Except with respect to a good set out in Section B or C of 
            Annex 703.3 or Appendix 703.2.A.4, where a Party applies an 
            over-quota tariff rate to a qualifying good pursuant to a 
            tariff rate quota set out in its Schedule to Annex 302.2, or 
            increases a customs duty for a sugar or syrup good to a rate, 
            in accordance with paragraph 18, that exceeds the rate of 
            customs duty for that good set out in its GATT Schedule of 
            Tariff Concessions as of July 1, 1991, the other Party waives 
            its rights under the GATT with respect to the application of 
            that rate of customs duty. 
 
            5.   Notwithstanding Article 302(2) (Tariff Elimination), where 
            an agreement resulting from agricultural multilateral trade 
            negotiations under the GATT enters into force with respect to a 
            Party pursuant to which it has agreed to convert a prohibition 
            or restriction on its importation of an agricultural good into 
            a tariff rate quota or a customs duty, that Party may not apply 
            to such good that is a qualifying good an over-quota tariff 
            rate that is higher than the lower of the over-quota tariff 
            rate set out in: 
 
                 (a)  its Schedule to Annex 302.2, and 
 
                 (b)  that agreement, 
 
            and paragraph 4 shall no longer apply to the other Party with 
            respect to that good. 
 
 
 
                                          7-10  
 
 
 
 
 
 
  
 
 
 
 
 
                                                                Annex 703.2                                              
                  ___________ 
 
 
            6.   Each Party may count the in-quota quantity under a tariff 
            rate quota applied to a qualifying good in accordance with its 
            Schedule to Annex 302.2 toward the satisfaction of commitments 
            regarding an in-quota quantity of a tariff rate quota or level 
            of access under a restriction on the importation of that good: 
 
                 (a)  that have been agreed under the GATT, including as 
                      set out in its GATT Schedule of Tariff Concessions; 
                      or  
 
                 (b)  undertaken by the Party as a result of any agreement 
                      resulting from agricultural multilateral trade 
                      negotiations under the GATT. 
 
            7.   Neither Party may count toward the satisfaction of a 
            commitment regarding an in-quota quantity of a tariff rate 
            quota in its Schedule to Annex 302.2 an agricultural good 
            admitted or entered into a maquiladora or foreign-trade zone 
            and re-exported, including subsequent to processing. 
 
            8.   The United States shall not adopt or maintain, with 
            respect to the importation of an agricultural qualifying good, 
            any fee applied pursuant to section 22 of the U.S. Agricultural 
            Adjustment Act. 
 
            9.   Neither Party may seek a voluntary restraint agreement 
            from the other Party with respect to the exportation of meat 
            that is a qualifying good. 
 
            10.  Notwithstanding Chapter Four (Rules of Origin), for 
            purposes of applying a rate of customs duty to a good, the 
            United States may consider as if it were non-originating a good 
            provided for in: 
 
                 (a)  heading 12.02 that is exported from the territory of 
                      Mexico, if the good is not wholly obtained in the 
                      territory of Mexico; 
 
                 (b)  subheading 2008.11 that is exported from the 
                      territory of Mexico, if any material provided for in 
                      heading 12.02 used in the production of that good is 
                      not wholly obtained in the territory of Mexico; or 
 
                 (c)  U.S. tariff item 1806.10.42 or 2106.90.12 that is 
                      exported from the territory of Mexico, if any 
                      material provided for in HS heading 1701.99 used in 
                      the production of that good is not a qualifying good. 
 
 
 
                                          7-11  
 
 
 
 
 
 
  
 
 
 
 
 
                                                                Annex 703.2                                              
                  ___________ 
 
 
            11.  Notwithstanding Chapter Four, for purposes of applying a 
            rate of customs duty to a good, Mexico may consider as if it 
            were non-originating a good provided for in: 
 
                 (a)  heading 12.02 that is exported from the territory of 
                      the United States, if that good is not wholly 
                      obtained in the territory of the United States; 
 
                 (b)  subheading 2008.11 that is exported from the 
                      territory of the United States, if any material 
                      provided for in heading 12.02 used in the production 
                      of that good is not wholly obtained in the territory 
                      of the United States; or 
 
                 (c)  Mexican tariff item 1806.10.01 (except those with a 
                      sugar content less than 90 percent) or 2106.90.05 
                      (except those that contain added flavoring matter) 
                      that is exported from the territory of the United 
                      States, if any material provided for in HS subheading 
                      1701.99 used in the production of that good is not a 
                      qualifying good. 
 
            Restriction on Same-Condition Substitution Duty Drawback 
 
            12.  Beginning on the date of entry into force of this 
            Agreement, neither Mexico nor the United States may refund the 
            amount of customs duties paid, or waive or reduce the amount of 
            customs duties owed, on any agricultural good imported into its 
            territory that is substituted for an identical or similar good 
            that is subsequently exported to the territory of the other 
            Party. 
 
            Trade in Sugar and Syrup Goods 
 
            13.  The Parties shall consult by July 1 of each of the first 
            14 years beginning with 1994 to determine jointly, in 
            accordance with Appendix 703.2.A.13, whether, and if so, by 
            what quantity either Party: 
 
                 (a)  is projected to be a net surplus producer of sugar in 
                      the next marketing year; and 
 
                 (b)  has been a net surplus producer in any marketing year 
                      beginning after the date of entry into force of this 
                      Agreement, including the current marketing year. 
 
            14.  For each of the first 14 marketing years beginning after 
            the date of entry into force of this Agreement, each Party 
 
 
                                          7-12  
 
 
 
 
 
 
  
 
 
 
 
 
                                                                Annex 703.2                                              
                  ___________ 
 
 
            shall accord duty-free treatment to a quantity of sugar and 
            syrup goods that are qualifying goods not less than the 
            greatest of: 
 
                 (a)   7,258 metric tons raw value;  
 
                 (b)  the quota allocated by the United States for a non- 
                      Party within the category designated "other specified 
                      countries and areas" under paragraph (b)(i) of 
                      additional U.S. note 3 to chapter 17 of the 
                      Harmonized Tariff Schedule of the United States; and 
 
                 (c)  subject to paragraph 15, the other Party's projected 
                      net production surplus for that marketing year, as 
                      determined under paragraph 13 and adjusted in 
                      accordance with Appendix 703.2.A.13. 
 
            15.  Subject to paragraph 16, the duty-free quantity of sugar 
            and syrup goods under paragraph 14(c) shall not exceed the 
            following ceilings: 
              
                 (a)  for each of the first six marketing years, 25,000 
                      metric tons raw value; 
 
                 (b)  for the seventh marketing year, 150,000 metric tons 
                      raw value; and 
 
                 (c)  for each of the eighth through 14th marketing years, 
                      110 percent of the previous marketing year's ceiling. 
 
            16.  Beginning with the seventh marketing year, paragraph 15 
            shall not apply where, pursuant to paragraph 13, the Parties 
            have determined the exporting Party to be a net surplus 
            producer: 
 
                 (a)  for any two consecutive marketing years beginning 
                      after the date of entry into force of this Agreement; 
 
                 (b)  for the previous and current marketing years; or 
 
                 (c)  in the current marketing year and projected it to be 
                      a net surplus producer in the next marketing year, 
                      unless subsequently the Parties determine that, 
                      contrary to the projection, the exporting Party was 
                      not a net surplus producer for that year. 
 
            17.  Mexico shall, beginning no later than six years after the 
            date of entry into force of this Agreement, apply on a most- 
 
 
                                          7-13  
 
 
 
 
 
 
  
 
 
 
 
 
                                                                Annex 703.2                                              
                  ___________ 
 
 
            favored-nation (MFN) basis a tariff rate quota for sugar and 
            syrup goods consisting of rates of customs duties no less than 
            the lesser of the corresponding: 
 
                 (a)  MFN rates of the United States in effect on the date 
                      that Mexico commences to apply the tariff rate quota; 
                      and 
 
                 (b)  prevailing MFN rates of the United States. 
 
            18.  When Mexico applies a tariff rate quota under paragraph 
            17, it shall not apply on a sugar or syrup good that is a 
            qualifying good a rate of customs duty higher than the rate of 
            customs duty applied by the United States on such good. 
 
            19.   Each Party shall determine the quantity of a sugar or 
            syrup good that is a qualifying good based on the actual weight 
            of such good, converted as appropriate to raw value, without 
            regard to the good's packaging or presentation. 
 
            20.  If the United States eliminates its tariff rate quota for 
            sugar and syrup goods imported from non-Parties, at such time 
            the United States shall accord to such goods that are 
            qualifying goods the better of the treatment, as determined by 
            Mexico, of: 
 
                 (a)  the treatment provided for in paragraphs 14 through 
                      16; or 
 
                 (b)  the MFN treatment granted by the United States to 
                      non-Parties. 
 
            21.   Except as provided in paragraph 22, Mexico shall not be 
            required to apply the applicable rate of customs duty provided 
            in this Annex or in its Schedule to Annex 302.2 to a sugar or 
            syrup good, or sugar-containing product, that is a qualifying 
            good where the United States has granted or will grant benefits 
            under any re-export program or any like program in connection 
            with the export of the good.  The United States shall notify 
            Mexico in writing within two days, excluding weekends, of any 
            export to Mexico of such a good for which the benefits of any 
            re-export program or any other like program have been or will 
            be claimed by the exporter. 
 
            22.  Notwithstanding any other provision of this Section: 
 
                 (a)  the United States shall accord duty-free treatment to 
                      imports of 
 
 
                                          7-14  
 
 
 
 
 
 
  
 
 
 
 
 
                                                                Annex 703.2                                              
                  ___________ 
 
 
                      (i)   raw sugar that is a qualifying good that will 
                            be refined in the territory of the United 
                            States and re-exported to the territory of 
                            Mexico, and 
 
                      (ii)  refined sugar that is a qualifying good that 
                            has been refined from raw sugar produced in, 
                            and exported from, the territory of the United 
                            States; 
 
                 (b)  Mexico shall accord duty-free treatment to imports of 
 
                      (i)   raw sugar that is a qualifying good that will 
                            be refined in the territory of Mexico and re- 
                            exported to the territory of the United 
                            States, and 
 
                      (ii)  refined sugar that is a qualifying good that 
                            has been refined from raw sugar produced in, 
                            and exported from, the territory of Mexico; 
                            and 
 
                 (c)  imports qualifying for duty-free treatment pursuant 
                      to subparagraphs (a) and (b) shall not be subject to, 
                      or counted under, any tariff rate quota. 
 
            Agricultural Grading and Marketing Standards 
 
            23.  Where a Party adopts or maintains a measure respecting the 
            classification, grading or marketing of a domestic agricultural 
            good, it shall accord treatment to a like qualifying good 
            destined for processing no less favorable than it accords under 
            the measure to the domestic good destined for processing. The 
            importing Party may adopt or maintain measures to ensure that 
            such imported good is processed. 
 
            24.  Paragraph 23 shall be without prejudice to the rights of 
            either Party under the GATT or under Chapter Three (National 
            Treatment and Market Access) regarding measures respecting the 
            classification, grading or marketing of an agricultural good, 
            whether or not destined for processing. 
 
            25.  The Parties hereby establish a Working Group, comprising 
            representatives of Mexico and the United States, which shall 
            meet annually or as otherwise agreed.  The Working Group shall 
            review, in coordination with the Committee on Standards-Related 
            Measures established under Article 913 (Committee on Standards- 
            Related Measures), the operation of agricultural grade and 
 
 
                                          7-15  
 
 
 
 
 
 
  
 
 
 
 
 
                                                                Annex 703.2                                              
                  ___________ 
 
 
            quality standards as they affect trade between the Parties, and 
            shall resolve issues that may arise regarding the operation of 
            the standards.  This Working Group shall report to the 
            Committee on Agricultural Trade established under Article 706. 
 
            Definitions 
 
            26.  For purposes of this Section: 
 
            marketing year means a 12-month period beginning October 1;  
 
            net production surplus means the quantity by which a Party's 
            domestic production of sugar exceeds its total consumption of 
            sugar during a marketing year, determined in accordance with 
            this Section; 
 
            net surplus producer means a Party that has a net production 
            surplus; 
 
            plantation white sugar means crystalline sugar that has not 
            been refined and is intended for human consumption without 
            further processing or refining; 
 
            qualifying good means an originating good that is an 
            agricultural good, except that in determining whether such good 
            is an originating good, operations performed in or materials 
            obtained from Canada shall be considered as if they were 
            performed in or obtained from a non-Party; 
 
            raw value means the equivalent of a quantity of sugar in terms 
            of raw sugar testing 96 degrees by the polariscope, determined 
            as follows: 
 
                 (a)  the raw value of plantation white sugar equals the 
                      number of kilograms thereof multiplied by 1.03; 
 
                 (b)  the raw value of liquid sugar and invert sugar equals 
                      the number of kilograms of the total sugars thereof 
                      multiplied by 1.07; and 
 
                 (c)  the raw value of other imported sugar and syrup goods 
                      equals the number of kilograms thereof multiplied by 
                      the greater of 0.93, or 1.07 less 0.0175 for each 
                      degree of polarization under 100 degrees (and 
                      fractions of a degree in proportion); 
 
 
 
 
 
                                          7-16  
 
 
 
 
 
 
  
 
 
 
 
 
                                                                Annex 703.2                                              
                  ___________ 
 
 
            sugar means raw or refined sugar derived directly or indirectly 
            from sugar cane or sugar beets, including liquid refined sugar; 
            and 
 
            sugar-containing product means a good containing sugar; and 
 
            wholly obtained in the territory of means harvested in the 
            territory of. 
 
 
                             Section B - Canada and Mexico 
 
            1.   This Section applies only as between Canada and Mexico. 
 
            Customs Duties and Quantitative Restrictions  
 
            2.   With respect to agricultural goods, Article 309(1) and (2) 
            (Import and Export Restrictions) applies only to qualifying 
            goods. 
 
            3.   Except with respect to a good set out in Sections A or B 
            of Annex 703.3., where a Party applies an over-quota tariff 
            rate to a qualifying good pursuant to a tariff rate quota set 
            out in its Schedule to Annex 302.2 or increases a customs duty 
            for a sugar or syrup good to a rate that exceeds the rate of 
            customs duty for that good set out in its GATT Schedule of 
            Tariff Concessions as of July 1, 1991, the other Party waives 
            its rights under the GATT with respect to the application of 
            that rate of customs duty. 
 
            4.   Notwithstanding Article 302(2) (Tariff Elimination), where 
            an agreement resulting from agricultural multilateral trade 
            negotiations under the GATT enters into force with respect to a 
            Party pursuant to which it has agreed to convert a prohibition 
            or restriction on its importation of an agricultural good into 
            a tariff rate quota or a customs duty, that Party may not apply 
            to such good that is a qualifying good an over-quota tariff 
            rate that is higher than the lower of the over-quota tariff 
            rate in: 
 
                 (a)  its Schedule to Annex 302.2, and 
 
                 (b)  that agreement, 
 
            and paragraph 3 shall no longer apply to the other Party with 
            respect to that good.  
 
 
 
 
                                          7-17  
 
 
 
 
 
 
  
 
 
 
 
 
                                                                Annex 703.2                                              
                  ___________ 
 
 
            5.   Each Party may count the in-quota quantity under a tariff 
            rate quota applied to a qualifying good in accordance with its 
            Schedule to Annex 302.2 toward the satisfaction of commitments 
            regarding an in-quota quantity of a tariff rate quota or level 
            of access under a restriction on the importation of that good: 
 
                 (a)  that have been agreed under the GATT, including as 
                      set out in its GATT Schedule of Tariff Concessions; 
                      or  
 
                 (b)  undertaken by the Party as a result of any agreement 
                      resulting from agricultural multilateral trade 
                      negotiations under the GATT. 
 
            6.   Subject to this Section and for purposes of this Section, 
            Canada and Mexico incorporate their respective rights and 
            obligations with respect to agricultural goods under the GATT 
            and agreements negotiated under the GATT, including their 
            rights and obligations under Article XI of the GATT. 
 
            7.   Notwithstanding paragraph 6 and Article 309: 
 
                 (a)  the rights and obligations of the Parties under 
                      Article XI:2(c)(i) of the GATT and those rights as 
                      incorporated by Article 309 shall apply with respect 
                      to trade in agricultural goods only to the dairy, 
                      poultry and egg goods set out in Appendix 703.2.B.7; 
                      and  
 
                 (b)  with respect to such dairy, poultry and egg goods 
                      that are qualifying goods, either Party may adopt or 
                      maintain a prohibition or restriction or a customs 
                      duty on the importation of such good consistent with 
                      its rights and obligations under the GATT. 
 
            8.   Without prejudice to Chapter Eight (Emergency Action), 
            neither Party may seek a voluntary restraint agreement from the 
            other Party with respect to the exportation of a qualifying 
            good. 
 
            9.   Notwithstanding Chapter Four (Rules of Origin), Mexico may 
            treat a good provided for in Mexican tariff item 1806.10.01 
            (except those with a sugar content less than 90 percent) or 
            2106.90.05 (except those that contain added flavoring matter) 
            that is exported from the territory of Canada as non- 
            originating for purposes of applying a rate of customs duty to 
            that good, if any material provided for in HS subheading 
 
 
 
                                          7-18  
 
 
 
 
 
 
  
 
 
 
 
 
                                                                Annex 703.2                                              
                  ___________ 
 
 
            1701.99 used in the production of such good is not a qualifying 
            good. 
 
            10.  Notwithstanding Chapter Four (Rules of Origin), Canada may 
            treat a good provided for in Canadian tariff item 1806.10.10 or 
            2106.90.21 that is exported from the territory of Mexico as 
            non-originating for purposes of applying a rate of customs duty 
            to that good, if any material provided for in HS subheading 
            1701.99 used in the production of such good is not a qualifying 
            good. 
 
            Trade in Sugar 
 
            11.  Mexico shall apply a rate of customs duty equal to its 
            most-favored-nation over-quota tariff rate to a sugar or syrup 
            that is a qualifying good. 
 
            12.  Canada may apply a rate of customs duty on a sugar or 
            syrup good that is a qualifying good equal to the rate of 
            customs duty applied by Mexico pursuant to paragraph 11. 
 
            Agricultural Grading and Marketing Standards 
 
            13.  The Parties hereby establish a Working Group, comprising 
            representatives of Canada and Mexico, which shall meet annually 
            or as otherwise agreed.  The Working Group shall review, in 
            coordination with the Committee on Standards-Related Measures 
            established under Article 913 (Committee on Standards-Related 
            Measures), the operation of agricultural grade and quality 
            standards as they affect trade between the Parties, and shall 
            resolve issues that may arise regarding the operation of the 
            standards.  This Working Group shall report to the Committee on 
            Agricultural Trade established under Article 706. 
 
            Definitions 
 
            14.  For purposes of this Section: 
 
            qualifying good means an originating good that is an 
            agricultural good except that, in determining whether such good 
            is an originating good, operations performed in or material 
            obtained from the United States shall be considered as if they 
            were performed in or obtained from a non-Party. 
 
 
                                Section C - Definitions 
 
            For purposes of this Annex: 
 
 
                                          7-19  
 
 
 
 
 
 
  
 
 
 
 
 
                                                                Annex 703.2                                              
                  ___________ 
 
 
            sugar or syrup good means: 
 
                 (a)  for imports into Canada, a good provided for in any 
                      of the current tariff items 1701.11.10, 1701.11.20, 
                      1701.11.30, 1701.11.40, 1701.11.50, 1701.12.00, 
                      1701.91.00, 1701.99.00, 1702.90.31, 1702.90.32, 
                      1702.90.33, 1702.90.34, 1702.90.35, 1702.90.36, 
                      1702.90.37, 1702.90.38, 1702.90.40, 1806.10.10  and 
                      2106.90.21 of the Canadian Tariff Schedule;  
 
                 (b)  for imports into Mexico, a good provided for in any 
                      of the current tariff items  1701.11.01, 1701.11.99, 
                      1701.12.01, 1701.12.99, 1701.91 (except those that 
                      contain added flavoring matter), 1701.99.01, 
                      1701.99.99, 1702.90.01, 1806.10.01 (except those with 
                      a sugar content less than 90 percent) and 2106.90.05 
                      (except those that contain flavoring matter) of the  
                      General Import Duty Act ("Ley del Impuesto General de 
                      Importaci n"); and 
 
                 (c)  for imports into the United States, a good provided 
                      for in any of the current tariff items 1701.11.03, 
                      1701.12.02, 1701.91.22, 1701.99.02, 1702.90.32, 
                      1806.10.42, and 2106.90.12 of the U.S. Harmonized 
                      Tariff Schedule, without regard to the quantity 
                      imported. 
 
 
                                   Appendix 703.2.A.4 
 
                          Goods not Subject to Annex 703.2.A.4 
 
 
                                   Schedule of Mexico 
 
            Mexican Tariff Item                Description 
 
            2009.11.01                         (Orange juice, frozen) 
            2009.19.01                         (Orange juice, with a grade 
                                               of concentration not greater 
                                               than 1.5 (single-strength 
                                               orange juice)) 
 
            (For purposes of reference only, descriptions are provided next 
            to the corresponding tariff provision). 
 
 
 
 
 
                                          7-20  
 
 
 
 
 
 
  
 
 
 
 
 
                                                                Annex 703.2                                              
                  ___________ 
 
 
                             Schedule of the United States 
 
            U.S. Tariff Item                   Description 
 
            2009.11.00                         (Orange juice, frozen) 
            2009.19.20                         (Orange juice, not frozen, 
                                               not concentrated (single- 
                                               strength orange juice)) 
 
            (For purposes of reference only, descriptions are provided next 
            to the corresponding tariff provision). 
 
 
                                  Appendix 703.2.A.13 
 
                 Determination and Adjustment of Net Production Surplus 
 
            1.   For purposes of Section A(14)(c), where the Parties 
            project a net production surplus for a Party for the next 
            marketing year, the projected surplus shall be: 
 
                 (a)  increased by the amount, if any, by which the actual 
                      net production surplus exceeds the projected net 
                      production surplus in the most recent marketing year 
                      for which the Parties projected a net production 
                      surplus for that Party; or 
 
                 (b)  decreased by the amount, if any, by which the 
                      projected net production surplus exceeds the actual 
                      net production surplus in the most recent marketing 
                      year for which the Parties projected a net production 
                      surplus for that Party; 
 
            as further demonstrated by the following formulas: 
 
                                ANPS = (PPy - CPy) + CF 
 
                 where:     ANPS  =  adjusted net production surplus 
                            PP  =    projected domestic production of sugar 
                            CP  =    projected total consumption of sugar 
                            CF  =    correction factor 
                            y   =    next marketing year, 
 
            and 
 
                           CF = (PAys - CAys) - (PPys - CPys) 
 
                 where:     PA  =    actual domestic production of sugar 
 
 
                                          7-21  
 
 
 
 
 
 
  
 
 
 
 
 
                                                                Annex 703.2                                              
                  ___________ 
 
 
                            CA  =    actual total consumption of sugar 
                            ys  =    most recent previous marketing year 
                                     for which the Parties projected a net 
                                     production surplus for that Party. 
 
            2.   For purposes only of paragraph 1, neither the projected 
            net production surplus (PPys -CPys) nor the actual net 
            production surplus (PAys - CAys) in the most recent marketing 
            year for which the Parties projected a net production surplus 
            for that Party may be considered to: 
 
                 (a)  exceed the quantity, if any, in Section A(15) 
                      applicable to that year; or 
 
                 (b)  be lower than the greater of 
 
                      (i)   7,258 metric tons raw value, or 
 
                      (ii)  the quantity in paragraph 14(b) of Section A 
                            applicable to that year. 
 
            3.   In appropriate circumstances, a Party shall consider 
            adjustments to projections of its net production surplus when: 
 
                                     Fc  greater than  (B + 10 %) 
                 where 
 
                            F   is the percentage change in stocks from the 
                                beginning to the end of a marketing year z, 
                                expressed as a positive percentage 
 
                            c   is current marketing year 
 
                            F   is calculated in accordance with the 
                                following formula: 
 
 
                                            Sb -  Se    
                                     F =                 x  100    
                                                Sb      
 
 
                            Sb  beginning stocks in marketing year z 
 
                            Se  ending stocks in marketing year z 
 
                            B   the average annual percentage change in 
                                stocks over the previous 5 marketing years, 
 
 
                                          7-22  
 
 
 
 
 
 
  
 
 
                                                                Annex 703.2                                              
                  ___________ 
 
 
                                calculated in accordance with the following 
                                formula: 
 
 
 
 
 
 
 
 
                            N   previous marketing years, ranging from 1 
                                (first preceding year) to 5 (fifth 
                                preceding year). 
 
            4.   For purposes of determining net production surplus or 
                 projected net production surplus: 
 
                 (a)  domestic production means all sugar and syrup goods 
                      derived from sugar cane or sugar beets grown in a 
                      Party's territory; and 
 
                 (b)  total consumption means all sugar and syrup goods 
                      consumed directly, or indirectly in the form of a 
                      good containing such goods, in the territory of a 
                      Party. 
 
            5.   Each Party shall permit representatives from the other 
                 Party to observe and comment on its statistics on 
                 production, consumption, trade and stocks and on the 
                 methodology it uses to prepare such statistics. 
 
            6.   Statistics on production, consumption, trade and stocks 
                 shall be provided by: 
 
                 (a)  the Secretar a de Agricultura y Recursos Hidr ulicos, 
                      the Secretar a de Comercio y Fomento Industrial, and 
                      the Secretar a de Hacienda y Cr dito P blico; and 
 
                 (b)  the U.S. Department of Agriculture (USDA). 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                          7-23  
 
 
 
  
 
 
 
 
 
                                                                Annex 703.2                                              
                  ___________ 
 
 
                                   Appendix 703.2.B.7 
 
                              Dairy, Poultry and Egg Goods 
 
 
                                   Schedule of Canada 
 
            For Canada, a dairy, poultry or egg good is a good provided for 
            in one of the following Canadian tariff items: 
 
            Canadian Tariff Items         Description 
 
            0105.11.20               Broilers of the species Gallus 
                                     domesticus for domestic production, 
                                     weighing not more than 185 g. 
            0105.91.00               Live fowls of the species Gallus 
                                     domesticus, weighing 185g. or more. 
            0105.99.00               Live ducks, geese, turkeys and guinea 
                                     fowls, weighing 185g. or more. 
            0207.10.00               Meat of poultry of heading No. 01.05, 
                                     not cut in pieces, fresh or chilled. 
            0207.21.00               Meat of fowls of the species Gallus 
                                     domesticus, not cut in pieces, frozen. 
            0207.22.00               Meat of turkeys, not cut in pieces, 
                                     frozen. 
            0207.39.00               Cut meat and edible offal (including 
                                     livers other than fatty livers of 
                                     geese or ducks), of the poultry of 
                                     heading No. 01.05, fresh or chilled. 
            0207.41.00               Cut meat and edible offal, other than 
                                     livers, of fowls of the species Gallus 
                                     domesticus, frozen. 
            0207.42.00               Cut meat and edible offal, other than 
                                     livers, of turkeys, frozen. 
            0207.50.00               Livers of poultry of heading No. 
                                     01.05, frozen. 
            0209.00.20               Poultry fat (not rendered), fresh, 
                                     chilled, frozen, salted, in brine, 
                                     dried or smoked. 
            0210.90.10               Meat of poultry, salted, in brine, 
                                     dried or smoked. 
            0401.10.00               Milk and cream, not concentrated nor 
                                     containing added sugar or other 
                                     sweetening matter of a fat content, by 
                                     weight, not exceeding 1 percent. 
            0401.20.00               Milk and cream, not concentrated nor 
                                     containing added sugar or other 
                                     sweetening matter of a fat content, by 
 
 
                                          7-24  
 
 
 
 
 
 
  
 
 
 
 
 
                                                                Annex 703.2                                              
                  ___________ 
 
 
                                     weight, exceeding 1 percent but not 
                                     exceeding 6 percent. 
            0401.30.00               Milk and cream, not concentrated nor 
                                     containing added sugar or other 
                                     sweetening matter, of a fat content, 
                                     by weight, exceeding 6 percent. 
            0402.10.00               Milk and cream, concentrated or 
                                     containing added sugar or other 
                                     sweetening matter, in powder, granules 
                                     or other solid forms, of a fat 
                                     content, by weight, not exceeding 1.5 
                                     percent. 
            0402.21.10               Milk, concentrated, not containing 
                                     added sugar or other sweetening 
                                     matter, in powder, granules or other 
                                     solid forms, of a fat content, by 
                                     weight, exceeding 1.5 percent. 
            0402.21.20               Cream, concentrated, not containing 
                                     added sugar or other sweetening 
                                     matter, in powder, granules or other 
                                     solid forms, of a fat content, by 
                                     weight, exceeding 1.5 percent. 
            0402.29.10               Milk, whether or not concentrated, 
                                     containing added sugar or other 
                                     sweetening matter, in powder, granules 
                                     or other solid forms, of a fat 
                                     content, by weight, exceeding 1.5 
                                     percent. 
            0402.29.20               Cream, whether or not concentrated, 
                                     containing added sugar or other 
                                     sweetening matter, in powder, granules 
                                     or other solid forms, of a fat 
                                     content, by weight, exceeding 1.5 
                                     percent. 
            0402.91.00               Milk and cream, concentrated, not 
                                     containing added sugar or other 
                                     sweetening matter, not in powder, 
                                     granules or other solid forms. 
            0402.99.00               Milk and cream, whether or not 
                                     concentrated, containing added sugar 
                                     or other sweetening matter, not in 
                                     powder, granules or other solid forms. 
            0403.10.00               Yogurt. 
            0403.90.10               Powdered buttermilk. 
            0403.90.90               Liquid buttermilk, curdled milk and 
                                     cream, kephir and other fermented or 
                                     acidified milk and cream, whether or 
                                     not concentrated or containing added 
 
 
                                          7-25  
 
 
 
 
 
 
  
 
 
 
 
 
                                                                Annex 703.2                                              
                  ___________ 
 
 
                                     sugar or other sweetening matter or 
                                     flavored or containing added fruit, 
                                     nuts or cocoa. 
            0404.10.10               Whey powder and modified whey powder, 
                                     whether or not concentrated or 
                                     containing added sugar or other 
                                     sweetening matter. 
            0404.10.90               Whey and modified whey, not in powder, 
                                     whether or not concentrated or 
                                     containing added sugar or other 
                                     sweetening matter. 
            0404.90.00               Products consisting of natural milk 
                                     constituents, whether or not 
                                     containing added sugar or other 
                                     sweetening matter, not elsewhere 
                                     specified or included. 
            0405.00.10               Butter. 
            0405.00.90               Fats and oils derived from milk, other 
                                     than butter. 
            0406.10.00               Fresh (unripened or uncured) cheese, 
                                     including whey cheese, and curd. 
            0406.20.10               Cheddar cheese and cheddar types of 
                                     cheese, grated or powdered. 
            0406.20.90               Grated or powdered cheese of all 
                                     kinds, other than cheddar and cheddar 
                                     types. 
            0406.30.00               Processed cheese, not grated or 
                                     powdered. 
            0406.40.00               Blue-veined cheese. 
            0406.90.10               Cheddar cheese and cheddar types of 
                                     cheese, not grated, powdered or 
                                     processed. 
            0406.90.90               Other cheese not elsewhere specified 
                                     or included. 
            0407.00.00               Birds' eggs, in shell, fresh, 
                                     preserved or cooked. 
            0408.11.00               Dried egg yolks, whether or not 
                                     containing added sugar or other 
                                     sweetening matter. 
            0408.19.00               Egg yolks, fresh, cooked by steaming 
                                     or by boiling in water, moulded, 
                                     frozen or otherwise preserved, whether 
                                     or not containing added sugar or other 
                                     sweetening matter. 
            0408.91.00               Bird's eggs, not in shell, dried, 
                                     whether or not containing added sugar 
                                     or other sweetening matter. 
 
 
 
                                          7-26  
 
 
 
 
 
 
  
 
 
 
 
 
                                                                Annex 703.2                                              
                  ___________ 
 
 
            0408.99.00               Birds' eggs, not in shell, fresh, 
                                     cooked by steaming or by boiling in 
                                     water, moulded, frozen or otherwise 
                                     preserved, whether or not containing 
                                     added sugar or other sweetening 
                                     matter. 
            1601.00.11               Sausages and similar products of meat, 
                                     meat offal or blood of poultry of 
                                     heading No. 01.05 or food preparation 
                                     based on these products, in airtight 
                                     containers. 
            1602.10.10               Homogenized preparations of chicken or 
                                     turkey. 
            1602.20.20               Poultry liver paste. 
            1602.31.10               Prepared meals of prepared or 
                                     preserved turkey meat, meat offal or 
                                     blood, other than sausages and similar 
                                     products. 
            1602.31.91               Prepared or preserved turkey meat, 
                                     meat offal or blood, other than 
                                     sausages and similar products, and 
                                     other than prepared meals, in air- 
                                     tight containers. 
            1602.31.99               Prepared or preserved turkey meat, 
                                     meat offal of blood, other than 
                                     sausages and similar products, other 
                                     than prepared meals, not in air-tight 
                                     containers. 
            1602.39.10               Prepared meals of prepared or 
                                     preserved meat, meat offal or blood of 
                                     poultry of heading No. 01.05 other 
                                     than turkey (i.e., Gallus domesticus, 
                                     ducks, geese or guinea fowls), other 
                                     than sausages and similar products. 
            1602.39.91               Prepared or preserved meat, meat offal 
                                     or blood of poultry of heading No. 
                                     01.05 other than turkey (i.e., Gallus 
                                     domesticus, ducks, geese or guinea 
                                     fowls), other than sausages and 
                                     similar products, and other than 
                                     prepared meals, in air-tight 
                                     containers. 
 
 
 
 
 
 
 
 
                                          7-27  
 
 
 
 
 
 
  
 
 
 
 
 
                                                                Annex 703.2                                              
                  ___________ 
 
 
            1602.39.99               Prepared or preserved meat, meat offal 
                                     or blood, of poultry of heading No. 
                                     01.05 other than turkey (i.e., Gallus 
                                     domesticus, ducks, geese or guinea 
                                     fowls), other than sausages and 
                                     similar products, other than prepared 
                                     meals, not in air-tight containers. 
            1901.90.31               Food preparations of goods of headings 
                                     Nos. 04.01 to 04.04, not containing 
                                     cocoa powder or containing cocoa 
                                     powder in a proportion by weight of 
                                     less than 10 percent, not elsewhere 
                                     specified or included, containing more 
                                     than 10 percent on a dry weight basis 
                                     of milk solids. 
            2105.00.00               Ice cream and other edible ice, 
                                     whether or not containing cocoa. 
            2106.90.70               Egg preparations not elsewhere 
                                     specified or included. 
            2309.90.31               Complete feeds and feed supplements, 
                                     including concentrates, containing 
                                     over 50 percent by weight in the dry 
                                     state of milk solids. 
            3501.10.00               Casein. 
            3501.90.00               Caseinates and other casein 
                                     derivatives; casein glues. 
            3502.10.10               Egg albumin, dried, evaporated, 
                                     desiccated or powdered. 
            3502.10.90               Other egg albumin. 
 
            (For purposes of reference only, descriptions are provided next 
            to the corresponding tariff provision.) 
 
 
                                   Schedule of Mexico 
 
            For Mexico, a dairy, poultry or egg good is a good provided for 
            in one of the following tariff items: 
 
 
 
            Mexican Tariff Items          Description 
 
            0105.11.01               Day old chickens without being fed 
                                     during its transportation 
            0105.91.01               Game cocks 
            0105.91.99               Other 
            0105.99.99               Other poultry 
 
 
                                          7-28  
 
 
 
 
 
 
  
 
 
 
 
 
                                                                Annex 703.2                                              
                  ___________ 
 
 
            0207.10.01               Turkey 
            0207.10.99               Other 
            0207.21.01               Chickens 
            0207.22.01               Turkey 
            0207.39.01               Paste of poultry or turkey (not 
                                     provided for in heading 16.01 or 
                                     16.02) 
            0207.39.02               Turkey 
            0207.39.99               Other 
            0207.41.01               Paste (not provided for in heading 
                                     16.01 or 16.02) 
            0207.41.99               Other 
            0207.42.01               Paste (not provided for in heading 
                                     16.01 or 16.02) 
            0207.42.99               Other 
            0207.50.01               Poultry livers, frozen 
            0209.00.01               Chicken or turkey fat 
            0210.90.99               Other 
            0401.10.01               In hermetic containers milk not 
                                     concentrated 
            0401.10.99               Other 
            0401.20.01               In hermetic containers 
            0401.20.99               Other 
            0401.30.01               In hermetic containers 
            0401.30.99               Other 
            0402.10.01               Milk powder 
            0402.10.99               Other 
            0402.21.01               Milk powder 
            0402.21.99               Other 
            0402.29.99               Other 
            0402.91.01               Evaporated milk 
            0402.91.99               Other 
            0402.99.01               Condensed milk 
            0402.99.99               Other 
            0403.10.01               Yogurt 
            0403.90.01               Powdered milk whey with a protein 
                                     content less than or equal to 12 
                                     percent 
            0403.90.99               Other butter whey 
            0404.10.01               Whey, concentrated, sweetened 
            0404.90.99               Other 
            0405.00.01               Butter, including the immediate 
                                     container, with a weight less than or 
                                     equal to 1 kg 
            0405.00.02               Butter, including the immediate 
                                     container, with a weight over 1 kg 
            0405.00.03               Butiric fat, dehydrated 
            0405.00.99               Other 
 
 
                                          7-29  
 
 
 
 
 
 
  
 
 
                                                                Annex 703.2                                              
                  ___________ 
 
 
            0406.10.01               Fresh cheese, including whey cheese 
            0406.20.01               Cheese, grated or powdered 
            0406.30.01               Melted cheese, not grated or powdered 
            0406.30.99               Other, melted cheese 
            0406.40.01               Blue veined cheese 
            0406.90.01               Hard paste cheese called sardo 
            0406.90.02               Hard paste reggi cheese 
            0406.90.03               Soft paste cologne cheese 
            0406.90.04               Hard or semi-hard cheeses with a fat 
                                     content by weight less than or equal 
                                     to 40 percent, and with a water 
                                     content by weight in non-fat matter 
                                     less than or equal to 47 percent 
                                     (called "grana", "parmigiana" or 
                                     "reggiano,") or with a non-fat matter 
                                     content by weight over 47 percent 
                                     without exceeding 72 percent (called 
                                     "danloo, edam, fontan, fontina, fynbo, 
                                     gouda, Avarti, maribo, samsoe, esron, 
                                     italico, kernhem, Saint-Nectaire, 
                                     Saint-Paulin, or talegi l") 
            0406.90.05               Petit suisse cheese 
            0406.90.06               Egmont cheese 
            0406.90.99               Other hard and semihard cheese 
            0407.00.01               Fresh birds eggs, fertile 
            0407.00.02               Frozen eggs 
            0407.00.99               Other poultry eggs 
            0408.11.01               Dried yolks 
            0408.19.99               Other 
            0408.91.01               Frozen or powdered 
            0408.91.99               Other 
            0408.99.01               Frozen or powdered 
            0408.99.99               Other 
            1601.00.01               Sausages or similar products of 
                                     poultry or turkey 
            1602.10.01               Homogenized preparations of poultry or 
                                     turkey 
            1602.20.01               Prepared or preserved liver of poultry 
                                     or turkey 
            1602.31.01               Prepared or preserved turkey meat 
            1602.39.99               Other 
            1901.90.03               Food preparations containing over 10 
                                     percent, by weight, of milk solids 
            2105.00.01               Ice cream and similar products 
            2106.90.09               Egg preparations 
            2309.90.11               Preparations containing over 50 
                                     percent by weight of milk solids 
            3501.10.01               Casein 
            3501.90.01               Casein glues 
            3501.90.02               Caseinates 
            3501.90.99               Other 
            3502.10.01               Egg albumin 
 
 
 
 
                                          7-30  
 
 
 
  
 
 
                                                                Annex 703.2                                              
                  ___________ 
 
 
          (For purposes of reference only, descriptions are provided next 
          to the corresponding tariff provision.) 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                          7-31  
 
 
 
  
 
 
 
 
 
                                                                Annex 703.3                                              
                  ___________ 
 
 
                                     Annex 703.3 
 
                               Special Safeguard Goods 
 
 
                     Section A - Canadian Special Safeguard Goods 
 
 
          Canadian Tariff Items         Description 
 
          0603.10.90               Fresh cut flowers and flower buds, other 
                                   than orchids, of a kind suitable for 
                                   bouquets or for ornamental purposes. 
          0702.00.91               Tomatoes, fresh or chilled, not for 
                                   processing, (dutiable period). 
          0703.10.31               Onions or shallots, green, fresh or 
                                   chilled (dutiable period). 
          0707.00.91               Cucumbers or gherkins, fresh or chilled, 
                                   not for processing (dutiable period). 
          0710.80.20               Broccoli and cauliflowers, uncooked or 
                                   cooked by steaming or boiling in water, 
                                   frozen. 
          0811.10.10               Strawberries, uncooked or cooked by 
                                   steaming or boiling in water, frozen, 
                                   whether or not containing added sugar or 
                                   other sweetening matter, for processing. 
          0811.10.90               Strawberries, uncooked or cooked by 
                                   steaming or boiling in water, frozen, 
                                   whether or not containing added sugar or 
                                   other sweetening matter, other than for 
                                   processing. 
          2002.90.00               Tomatoes prepared or preserved otherwise 
                                   than by vinegar or acetic acid, other 
                                   than whole or in pieces. 
 
          (For purposes of reference only, descriptions are provided next 
          to the corresponding tariff provision.) 
 
 
                                  Section B - Mexico 
 
 
          Mexican Tariff Items          Description 
 
          0103.91.99               Live swine, weighing less than 50 
                                   kilograms each, except purebred breeding 
                                   animals and those with pedigree or 
                                   selected breed certificate 
 
 
                                          7-32  
 
 
 
 
 
 
  
 
 
 
 
 
                                                                Annex 703.3                                              
                  ___________ 
 
 
          0103.92.99               Live swine, weighing 50 kilograms or 
                                   more each, except purebred breeding 
                                   animals and those with pedigree or 
                                   selected breed certificate 
          0203.11.01               Meat of swine, carcasses and half- 
                                   carcasses, fresh or chilled 
          0203.12.01               Hams, shoulders or cuts thereof, with 
                                   bone in, fresh or chilled 
          0203.19.99               Other swine meat, fresh or chilled 
          0203.21.01               Meat of swine, carcasses and half- 
                                   carcasses, frozen 
          0203.22.01               Hams, shoulders and cuts thereof, with 
                                   bone in, frozen 
          0203.29.99               Other swine meat, frozen 
          0210.11.01               Hams, shoulders and cuts thereof with 
                                   bone in, salted, in brine, dried or 
                                   smoked 
          0210.12.01               Bellies (streaky) and cuts thereof, 
                                   salted, in brine, dried or smoked. 
          0210.19.99               Other swine meat, in brine, dried or 
                                   smoked 
          0710.10.01               Potatoes, uncooked or cooked by steaming 
                                   or boiling in water, frozen 
          0712.10.01               Dried potatoes, whole cut, sliced, 
                                   broken or in powder, but not further 
                                   prepared 
          0808.10.01               Apples, fresh 
          2004.10.01               Potatoes prepared or preserved otherwise 
                                   than by vinegar or acetic acid, frozen 
          2005.20.01               Potatoes prepared or preserved otherwise 
                                   than by vinegar or acetic acid, not 
                                   frozen 
          2101.10.01               Extracts, essences or concentrates, of 
                                   coffee, and preparations with a basis of 
                                   these extracts, essences or concentrates 
                                   or with a basis of coffee. 
 
          (For purposes of reference only, descriptions are provided next 
          to the corresponding tariff provision.) 
 
 
                              Section C - United States 
 
          Note:     "X" indicates that a new tariff item will be 
                    established for this item 
 
          U.S. Tariff Items        Description 
 
 
 
                                          7-33  
 
 
 
 
 
 
  
 
 
 
 
 
                                                                Annex 703.3                                              
                  ___________ 
 
 
          0702.00.XX               Tomatoes (except cherry tomatoes), fresh 
                                   or chilled; if entered during the period 
                                   from November 15 to the last day of the 
                                   following February, inclusive 
          0702.00.XX               Tomatoes (except cherry tomatoes), fresh 
                                   or chilled; if entered during the period 
                                   from March 1 to July 14, inclusive 
          0703.10.XX               Onions and shallots, fresh or chilled 
                                   (not including onion sets and not                                     ___      
                   ___ 
                                   including pearl onions not over 16 mm in 
                                   diameter) if entered January 1 to April 
                                   30, inclusive 
          0709.30.XX               Eggplants (aubergines), fresh or 
                                   chilled, if entered during the period 
                                   from April 1 to June 30, inclusive 
          0709.60.XX               "Chili" peppers; if entered during the 
                                   period from October 1 to July 31, 
                                   inclusive (current 0709.60.00.20) 
          0709.90.XX               Squash, fresh or chilled; if entered 
                                   during the period from October 1 to the 
                                   following June 30, inclusive 
          0807.10.XX               Watermelons, fresh; if entered during 
                                   the period from May 1 to September 30, 
                                   inclusive. 
 
          (For purposes of reference only, descriptions are provided next 
          to the corresponding tariff provision.) 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                          7-34  
 
 
 
 
 
 
  
 
 
 
 
 
                   Section B - Sanitary and Phytosanitary Measures 
 
          Article 709:    Scope and Coverage 
 
               In order to establish a framework of rules and disciplines 
          to guide the development, adoption and enforcement of sanitary 
          and phytosanitary measures, this Section applies to any such 
          measure of a Party that may, directly or indirectly, affect trade 
          between the Parties. 
 
 
          Article 710:    Relation to Other Chapters 
 
               Articles 301 (National Treatment) and 309 (Import and Export 
          Restrictions), and the provisions of Article XX(b) of the GATT as 
          incorporated into Article 2101(1) (General Exceptions), do not 
          apply to any sanitary or phytosanitary measure. 
 
 
          Article 711:    Reliance on Non-Governmental Entities 
 
               Each Party shall ensure that any non-governmental entity on 
          which it relies in applying a sanitary or phytosanitary measure 
          acts in a manner consistent with this Section. 
 
 
          Article 712:    Basic Rights and Obligations 
 
          Right to Take Sanitary and Phytosanitary Measures 
 
          1.   Each Party may, in accordance with this Section, adopt, 
          maintain or apply any sanitary or phytosanitary measure necessary 
          for the protection of human, animal or plant life or health in 
          its territory, including a measure more stringent than an 
          international standard, guideline or recommendation. 
 
          Right to Establish Level of Protection 
 
          2.   Notwithstanding any other provision of this Section, each 
          Party may, in protecting human, animal or plant life or health, 
          establish its appropriate levels of protection in accordance with 
          Article 715. 
 
          Scientific Principles 
 
          3.   Each Party shall ensure that any sanitary or phytosanitary 
          measure that it adopts, maintains or applies is: 
 
               (a)  based on scientific principles, taking into account 
                    relevant factors including, where appropriate, 
                    different geographic conditions; 
 
 
                                          7-35  
 
 
 
 
 
 
  
 
 
 
 
 
               (b)  not maintained where there is no longer a scientific 
                    basis for it; and 
 
               (c)  based on a risk assessment, as appropriate to the 
                    circumstances. 
 
          Non-Discriminatory Treatment 
 
          4.   Each Party shall ensure that a sanitary or phytosanitary 
          measure that it adopts, maintains or applies does not arbitrarily 
          or unjustifiably discriminate between its goods and like goods of 
          another Party, or between goods of another Party and like goods 
          of any other country, where identical or similar conditions 
          prevail. 
 
          Unnecessary Obstacles 
 
          5.   Each Party shall ensure that any sanitary or phytosanitary 
          measure that it adopts, maintains or applies is applied only to 
          the extent necessary to achieve its appropriate level of 
          protection, taking into account technical and economic 
          feasibility. 
 
          Disguised Restrictions 
 
          6.    No Party may adopt, maintain or apply any sanitary or 
          phytosanitary measure with a view to, or with the effect of, 
          creating a disguised restriction on trade between the Parties. 
 
 
          Article 713:    International Standards and Standardizing 
                          Organizations 
 
          1.   Without reducing the level of protection of human, animal or 
          plant life or health, each Party shall use, as a basis for its 
          sanitary and phytosanitary measures, relevant international 
          standards, guidelines or recommendations with the objective, 
          among others, of making its sanitary and phytosanitary measures 
          equivalent or, where appropriate, identical to those of the other 
          Parties. 
 
          2.   A Party's sanitary or phytosanitary measure that conforms to 
          a relevant international standard, guideline or recommendation 
          shall be presumed to be consistent with Article 712. A measure 
          that results in a level of sanitary or phytosanitary protection 
          different from that which would be achieved by a measure based on 
          a relevant international standard, guideline or recommendation 
          shall not for that reason alone be presumed to be inconsistent 
          with this Section. 
 
 
 
 
                                          7-36  
 
 
 
 
 
 
  
 
 
 
 
 
          3.   Nothing in Paragraph 1 shall be construed to prevent a Party 
          from adopting, maintaining or applying, in accordance with the 
          other provisions of this Section, a sanitary or phytosanitary 
          measure that is more stringent than the relevant international 
          standard, guideline or recommendation. 
 
          4.   Where a Party has reason to believe that a sanitary or 
          phytosanitary measure of another Party is adversely affecting or 
          may adversely affect its exports and the measure is not based on 
          a relevant international standard, guideline or recommendation, 
          it may request, and the other Party shall provide in writing, the 
          reasons for the measure. 
 
          5.   Each Party shall, to the greatest extent practicable, 
          participate in relevant international and North American 
          standardizing organizations, including the Codex Alimentarius  
          Commission, the International Office of Epizootics, the 
          International Plant Protection Convention, and the North American 
          Plant Protection Organization, with a view to promoting the 
          development and periodic review of international standards, 
          guidelines and recommendations. 
 
 
          Article 714:    Equivalence 
 
          1.   Without reducing the level of protection of human, animal or 
          plant life or health, the Parties shall, to the greatest extent 
          practicable and in accordance with this Section, pursue 
          equivalence of their respective sanitary and phytosanitary 
          measures. 
 
          2.   Each importing Party: 
 
               (a)  shall treat a sanitary or phytosanitary measure adopted 
                    or maintained by an exporting Party as equivalent to 
                    its own where the exporting Party, in cooperation with 
                    the importing Party, provides to the importing Party 
                    scientific evidence or other information, in accordance 
                    with risk assessment methodologies agreed on by those 
                    Parties, to demonstrate objectively, subject to 
                    subparagraph (b), that the exporting Party's measure 
                    achieves the importing Party's appropriate level of 
                    protection; 
 
               (b)  may, where it has a scientific basis, determine that 
                    the exporting Party's measure does not achieve the 
                    importing Party's appropriate level of protection; and 
            
               (c)  shall provide to the exporting Party, on request, its 
                    reasons in writing for a determination under 
                    subparagraph (b). 
 
 
                                          7-37  
 
 
 
 
 
 
  
 
 
 
 
 
          3.   For purposes of establishing equivalence, each exporting 
          Party shall, on the request of an importing Party, take such 
          reasonable measures as may be available to it to facilitate 
          access in its territory for inspection, testing and other 
          relevant procedures. 
 
          4.   Each Party should, in the development of a sanitary or 
          phytosanitary measure, consider relevant actual or proposed 
          sanitary or phytosanitary measures of the other Parties. 
 
 
          Article 715:    Risk Assessment and Appropriate Level of 
                          Protection 
 
          1.   In conducting a risk assessment, each Party shall take into 
          account: 
 
               (a)  relevant risk assessment techniques and methodologies 
                    developed by international or North American 
                    standardizing organizations; 
 
               (b)  relevant scientific evidence; 
 
               (c)  relevant processes and production methods; 
 
               (d)  relevant inspection, sampling and testing methods; 
 
               (e)  the prevalence of relevant diseases or pests, including 
                    the existence of pest-free or disease-free areas or 
                    areas of low pest or disease prevalence; 
 
               (f)  relevant ecological and other environmental conditions; 
                    and 
 
               (g)  relevant treatments, such as quarantines. 
 
          2.   Further to paragraph 1, each Party shall, in establishing 
          its appropriate level of protection regarding the risk associated 
          with the introduction, establishment or spread of an animal or 
          plant pest or disease, and in assessing the risk, also take into 
          account the following economic factors, where relevant: 
 
               (a)  loss of production or sales that may result from the 
                    pest or disease; 
 
               (b)  costs of control or eradication of the pest or disease 
                    in its territory; and 
 
               (c)  the relative cost-effectiveness of alternative 
                    approaches to limiting risks. 
 
 
 
                                          7-38  
 
 
 
 
 
 
  
 
 
 
 
 
          3.   Each Party, in establishing its appropriate level of 
          protection: 
 
               (a)  should take into account the objective of minimizing 
                    negative trade effects; and 
 
               (b)  shall, with the objective of achieving consistency in 
                    such levels, avoid arbitrary or unjustifiable 
                    distinctions in such levels in different circumstances, 
                    where such distinctions result in arbitrary or 
                    unjustifiable discrimination against a good of another 
                    Party or constitute a disguised restriction on trade 
                    between the Parties. 
 
          4.   Notwithstanding paragraphs (1) through (3) and Article 
          712(3)(c), where a Party conducting a risk assessment determines 
          that available relevant scientific evidence or other information 
          is insufficient to complete the assessment, it may adopt a 
          provisional sanitary or phytosanitary measure on the basis of 
          available relevant information, including from international or 
          North American standardizing organizations and from sanitary or 
          phytosanitary measures of other Parties.  The Party shall, within 
          a reasonable period after information sufficient to complete the 
          assessment is presented to it, complete its assessment, review 
          and, where appropriate, revise the provisional measure in the 
          light of the assessment. 
 
          5.   Where a Party is able to achieve its appropriate level of 
          protection through the phased application of a sanitary or 
          phytosanitary measure, it may, on the request of another Party 
          and in accordance with this Section, allow for such a phased 
          application, or grant specified exceptions for limited periods 
          from the measure, taking into account the requesting Party's 
          export interests. 
 
 
          Article 716:    Adaptation to Regional Conditions 
 
          1.   Each Party shall adapt any of its sanitary or phytosanitary 
          measures relating to the introduction, establishment or spread of 
          an animal or plant pest or disease, to the sanitary or 
          phytosanitary characteristics of the area where a good subject to 
          such a measure is produced and the area in its territory to which 
          the good is destined, taking into account any relevant 
          conditions, including those relating to transportation and 
          handling, between those areas.  In assessing such characteristics 
          of an area, including whether an area is, and is likely to 
          remain, a pest-free or disease-free area or an area of low pest 
          or disease prevalence, each Party shall take into account, among 
          other factors: 
 
 
 
                                          7-39  
 
 
 
 
 
 
  
 
 
 
 
 
               (a)  the prevalence of relevant pests or diseases in that 
                    area; 
 
               (b)  the existence of eradication or control programs in 
                    that area; and 
 
               (c)  any relevant international standard, guideline or 
                    recommendation. 
 
          2.   Further to paragraph 1, each Party shall, in determining 
          whether an area is a pest-free or disease-free area or an area of 
          low pest or disease prevalence, base its determination on factors 
          such as geography, ecosystems, epidemiological surveillance and 
          the effectiveness of sanitary or phytosanitary controls in that 
          area. 
 
          3.   Each importing Party shall recognize that an area in the 
          territory of the exporting Party is, and is likely to remain, a 
          pest-free or disease-free area or an area of low pest or disease 
          prevalence, where the exporting Party provides to the importing 
          Party scientific evidence or other information sufficient to so 
          demonstrate to the satisfaction of the importing Party.  For this 
          purpose, each exporting Party shall provide reasonable access in 
          its territory to the importing Party for inspection, testing and 
          other relevant procedures. 
 
          4.   Each Party may, in accordance with this Section: 
 
               (a)  adopt, maintain or apply a different risk assessment 
                    procedure for a pest-free or disease-free area than for 
                    an area of low pest or disease prevalence, or 
 
               (b)  make a different final determination for the 
                    disposition of a good produced in a pest-free or 
                    disease-free area than for a good produced in an area 
                    of low pest or disease prevalence, 
 
          taking into account any relevant conditions, including those 
          relating to transportation and handling. 
 
          5.   Each Party shall, in adopting, maintaining or applying a 
          sanitary or phytosanitary measure relating to the introduction, 
          establishment or spread of an animal or plant pest or disease, 
          accord a good produced in a pest-free or disease-free area in the 
          territory of another Party no less favorable treatment than it 
          accords a good produced in a pest-free or disease-free area, in 
          another country, that poses the same level of risk.  The Party 
          shall use equivalent risk assessment techniques to evaluate 
          relevant conditions and controls in the pest-free or disease-free 
          area and in the area surrounding that area and take into account 
 
 
 
                                          7-40  
 
 
 
 
 
 
  
 
 
 
 
 
          any relevant conditions, including those relating to 
          transportation and handling. 
 
          6.   Each importing Party shall pursue an agreement with an 
          exporting Party, on request, on specific requirements the 
          fulfillment of which allows a good produced in an area of low 
          pest or disease prevalence in the territory of an exporting Party 
          to be imported into the territory of the importing Party and 
          achieves the importing Party's appropriate level of protection. 
 
 
          Article 717:    Control, Inspection and Approval Procedures 
 
          1.   Each Party, with respect to any control or inspection 
          procedure that it conducts: 
 
               (a)  shall initiate and complete the procedure as 
                    expeditiously as possible and in no less favorable 
                    manner for a good of another Party than for a like good 
                    of the Party or of any other country; 
 
               (b)  shall publish the normal processing period for the 
                    procedure or communicate the anticipated processing 
                    period to the applicant on request; 
 
               (c)  shall ensure that the competent body 
 
                    (i)   on receipt of an application, promptly examines 
                          the completeness of the documentation and 
                          informs the applicant in a precise and complete 
                          manner of any deficiency,  
 
                    (ii)  transmits to the applicant as soon as possible 
                          the results of the procedure in a form that is 
                          precise and complete so that the applicant may 
                          take any necessary corrective action, 
 
                    (iii) where the application is deficient, proceeds as 
                          far as practicable with the procedure if the 
                          applicant so requests, and  
 
                    (iv)  informs the applicant, on request, of the status 
                          of the application and the reasons for any 
                          delay; 
 
               (d)  shall limit the information the applicant is required 
                    to supply to that necessary for conducting the 
                    procedure; 
 
 
 
 
 
                                          7-41  
 
 
 
 
 
 
  
 
 
 
 
 
               (e)  shall accord confidential or proprietary information 
                    arising from, or supplied in connection with, the 
                    procedure conducted for a good of another Party 
 
                    (i)   treatment no less favorable than for a good of 
                          the Party, and  
 
                    (ii)  in any event, treatment that protects the 
                          applicant's legitimate commercial interests, to 
                          the extent provided under the Party's law; 
 
               (f)  shall limit any requirement regarding individual 
                    specimens or samples of a good to that which is 
                    reasonable and necessary; 
 
               (g)  should not impose a fee for conducting the procedure 
                    that is higher for a good of another Party than is 
                    equitable in relation to any such fee it imposes for 
                    its like goods or for like goods of any other country, 
                    taking into account communication, transportation and 
                    other related costs; 
 
               (h)  should use criteria for selecting the location of 
                    facilities at which the procedure is conducted that do 
                    not cause unnecessary inconvenience to an applicant or 
                    its agent; 
 
               (i)  shall provide a mechanism to review complaints 
                    concerning the operation of the procedure and to take 
                    corrective action when a complaint is justified; 
 
               (j)  should use criteria for selecting samples of goods that 
                    do not cause unnecessary inconvenience to an applicant 
                    or its agent; and 
 
               (k)  shall limit the procedure, for a good modified 
                    subsequent to a determination that the good fulfills 
                    the requirements of the applicable sanitary or 
                    phytosanitary measure, to that necessary to determine 
                    that the good continues to fulfill the requirements of 
                    that measure. 
 
          2.   Each Party shall apply, with such modifications as may be 
          necessary, paragraphs 1(a) through (i) to its approval 
          procedures. 
 
          3.   Where an importing Party's sanitary or phytosanitary measure 
          requires the conduct of a control or inspection procedure at the 
          level of production, an exporting Party shall, on the request of 
          the importing Party, take such reasonable measures as may be 
          available to it to facilitate access in its territory and to 
 
 
                                          7-42  
 
 
 
 
 
 
  
 
 
 
 
 
          provide assistance necessary to facilitate the conduct of the 
          importing Party's control or inspection procedure. 
 
          4.   A Party maintaining an approval procedure may require its 
          approval for the use of an additive, or its establishment of a 
          tolerance for a contaminant, in a food, beverage or feedstuff, 
          under that procedure prior to granting access to its domestic 
          market for a food, beverage or feedstuff containing that additive 
          or contaminant.  Where such Party so requires, it shall consider 
          using a relevant international standard, guideline or 
          recommendation as the basis for granting access until it 
          completes the procedure. 
 
 
          Article 718:    Notification, Publication and Provision of 
                          Information 
 
          1.   Further to Articles 1802 (Publication) and 1803 
          (Notification and Provision of Information), each Party proposing 
          to adopt or modify a sanitary or phytosanitary measure of general 
          application at the federal level shall: 
 
               (a)  at least 60 days prior to the adoption or modification 
                    of the measure, other than a law, publish a notice and 
                    notify in writing the other Parties of the proposed 
                    measure and provide to the other Parties and publish 
                    the full text of the proposed measure, in such a manner 
                    as to enable interested persons to become acquainted 
                    with the proposed measure; 
 
               (b)  identify in the notice and notification the good to 
                    which the measure would apply, and provide a brief 
                    description of the objective and reasons for the 
                    measure; 
 
               (c)  provide a copy of the proposed measure to any Party or 
                    interested person that so requests and, wherever 
                    possible, identify any provision that deviates in 
                    substance from relevant international standards, 
                    guidelines or recommendations; and 
 
               (d)  without discrimination, allow other Parties and 
                    interested persons to make comments in writing and 
                    shall, on request, discuss the comments and take the 
                    comments and the results of the discussions into 
                    account. 
 
          2.   Each Party shall seek, through appropriate measures, to 
          ensure, with respect to a sanitary or phytosanitary measure of a 
          state or provincial government: 
 
 
 
                                          7-43  
 
 
 
 
 
 
  
 
 
 
 
 
               (a)  that, at an early appropriate stage, a notice and 
                    notification of the type referred to in paragraphs 1(a) 
                    and (b) are made prior to their adoption; and 
 
               (b)  observance of paragraphs 1(c) and (d). 
 
          3.   Where a Party considers it necessary to address an urgent 
          problem relating to sanitary or phytosanitary protection, it may 
          omit any step set out in paragraph 1 or 2, provided that, on 
          adoption of a sanitary or phytosanitary measure, it shall: 
 
               (a)  immediately provide to the other Parties a notification 
                    of the type referred to in paragraph 1(b), including a 
                    brief description of the urgent problem; 
 
               (b)  provide a copy of the measure to any Party or 
                    interested person that so requests; and 
 
               (c)  without discrimination, allow other Parties and 
                    interested persons to make comments in writing and 
                    shall, on request, discuss the comments and take the 
                    comments and the results of the discussions into 
                    account. 
 
          4.   Each Party shall, except where necessary to address an 
          urgent problem referred to in paragraph 3, allow a reasonable 
          period between the publication of a sanitary or phytosanitary 
          measure of general application and the date that it becomes 
          effective to allow time for interested persons to adapt to the 
          measure. 
 
          5.   Each Party shall designate a government authority 
          responsible for the implementation at the federal level of the 
          notification provisions of this Article, and shall notify the 
          other Parties thereof.  Where a Party designates two or more 
          government authorities for this purpose, it shall provide to the 
          other Parties complete and unambiguous information on the scope 
          of responsibility of each such authority. 
 
          6.   Where an importing Party denies entry into its territory of 
          a good of another Party because it does not comply with a 
          sanitary or phytosanitary measure, the importing Party shall 
          provide a written explanation to the exporting Party, on request, 
          that identifies the applicable measure and the reasons that the 
          good is not in compliance. 
 
 
          Article 719:    Inquiry Points 
 
 
 
 
 
                                          7-44  
 
 
 
 
 
 
  
 
 
 
 
 
          1.   Each Party shall ensure that there is one inquiry point that 
          is able to answer all reasonable inquiries from other Parties and 
          interested persons, and to provide relevant documents, regarding: 
 
               (a)  any sanitary or phytosanitary measure of general 
                    application, including any control or inspection 
                    procedure or approval procedure, proposed, adopted or 
                    maintained in its territory at the federal, state or 
                    provincial government level; 
 
               (b)  the Party's risk assessment procedures and factors it 
                    considers in conducting the assessment and in 
                    establishing its appropriate levels of protection; 
 
               (c)  the membership and participation of the Party, or its 
                    relevant federal, state or provincial government 
                    authorities in international and regional sanitary and 
                    phytosanitary organizations and systems, and in 
                    bilateral and multilateral arrangements within the 
                    scope of this Section, and the provisions of those 
                    systems and arrangements; and 
 
               (d)  the location of notices published pursuant to this 
                    Section or where such information can be obtained. 
 
          2.   Each Party shall ensure that where copies of documents are 
          requested by another Party or by interested persons in accordance 
          with this Section, they are supplied at the same price, apart 
          from the actual cost of delivery, as the price for domestic 
          purchase. 
 
 
          Article 720:    Technical Cooperation 
 
          1.   Each Party shall, on the request of another Party, 
          facilitate the provision of technical advice, information and 
          assistance, on mutually agreed terms and conditions, to enhance 
          that Party's sanitary and phytosanitary measures and related 
          activities, including research, processing technologies, 
          infrastructure and the establishment of national regulatory 
          bodies.   Such assistance may include credits, donations and 
          grants for the acquisition of technical expertise, training and 
          equipment that will facilitate the Party's adjustment to and 
          compliance with a Party's sanitary or phytosanitary measure. 
 
          2.   Each Party shall, on the request of another Party: 
 
               (a)  provide to that Party information on its technical 
                    cooperation programs regarding sanitary or 
                    phytosanitary measures relating to specific areas of 
                    interest; and 
 
 
                                          7-45  
 
 
 
 
 
 
  
 
 
 
 
 
               (b)  consult with the other Party during the development of, 
                    or prior to the adoption or change in the application 
                    of, any sanitary or phytosanitary measure. 
 
 
          Article 721:    Limitations on the Provision of Information 
 
          Nothing in this Section shall be construed to require a Party to: 
 
               (a)  communicate, publish texts or provide particulars or 
                    copies of documents other than in an official language 
                    of the Party; or 
 
               (b)  furnish any information the disclosure of which would 
                    impede law enforcement or otherwise be contrary to the 
                    public interest or would prejudice the legitimate 
                    commercial interests of particular enterprises. 
 
 
          Article 722:    Committee on Sanitary and Phytosanitary Measures 
 
          1.   The Parties hereby establish a Committee on Sanitary and 
          Phytosanitary Measures, comprising representatives of each Party 
          who have responsibility for sanitary and phytosanitary matters. 
 
          2.   The Committee should facilitate: 
 
               (a)  the enhancement of food safety and improvement of 
                    sanitary and phytosanitary conditions in the 
                    territories of the Parties; 
 
               (b)  activities of the Parties pursuant to Articles 713 and 
                    714; 
 
               (c)  technical cooperation between the Parties, including 
                    cooperation in the development, application and 
                    enforcement of sanitary or phytosanitary measures; and 
 
               (d)  consultations on specific matters relating to sanitary 
                    or phytosanitary measures. 
 
          3.   The Committee: 
 
               (a)  shall, to the extent possible, in carrying out its 
                    functions, seek the assistance of relevant 
                    international and North American standardizing 
                    organizations to obtain available scientific and 
                    technical advice and minimize duplication of effort; 
 
               (b)  may draw on such experts and expert bodies as it 
                    considers appropriate; 
 
 
                                          7-46  
 
 
 
 
 
 
  
 
 
 
 
 
               (c)  shall report annually to the Commission on the 
                    implementation of this Section; 
 
               (d)  shall meet on the request of any Party and, unless the 
                    Parties otherwise agree, at least once each year; and 
 
               (e)  may, as it considers appropriate, establish and 
                    determine the scope and mandate of working groups. 
 
 
          Article 723:    Technical Consultations 
 
          1.   A Party may request consultations with another Party on any 
          matter covered by this Section. 
 
          2.   Each Party should use the good offices of relevant 
          international and North American standardizing organizations, 
          including those referred to in Article 713(5), for advice and 
          assistance on sanitary and phytosanitary matters within their 
          respective mandates. 
 
          3.   Where a Party requests consultations regarding the 
          application of this Section to a Party's sanitary or 
          phytosanitary measure, and so notifies the Committee, the 
          Committee may facilitate the consultations, if it does not 
          consider the matter itself, by referring the matter for 
          non-binding technical advice or recommendations to a working 
          group, including an ad hoc working group, or to another forum.                              
__ ___ 
 
          4.   The Committee should consider any matter referred to it 
          under paragraph 3 as expeditiously as possible, particularly 
          regarding perishable goods, and promptly forward to the Parties 
          any technical advice or recommendations that it develops or 
          receives concerning the matter.  The Parties involved shall 
          provide a written response to the Committee concerning the 
          technical advice or recommendations within such time as the 
          Committee may request. 
 
          5.   Where the involved Parties have had recourse to 
          consultations facilitated by the Committee under paragraph 3, the 
          consultations shall, on the agreement of the Parties involved, 
          constitute consultations under Article 2006 (Consultations). 
 
          6.   The Parties confirm that a Party asserting that a sanitary 
          or phytosanitary measure of another Party is inconsistent with 
          this Section shall have the burden of establishing the 
          inconsistency. 
 
 
 
 
 
 
                                          7-47  
 
 
 
 
 
 
  
 
 
 
 
 
          Article 724:    Definitions 
 
          For purposes of this Section: 
 
          animal includes fish and wild fauna; 
 
          appropriate level of protection means the level of protection of 
          human, animal or plant life or health in the territory of a Party 
          that the Party considers appropriate;  
 
          approval procedure means any registration, notification or other 
          mandatory administrative procedure for: 
 
               (a)  approving the use of an additive for a stated purpose 
                    or under stated conditions; or 
 
               (b)  establishing a tolerance for a stated purpose or under 
                    stated conditions for a contaminant, 
 
          in a food, beverage or feedstuff prior to permitting the use of 
          the additive or the marketing of a food, beverage or feedstuff 
          containing the additive or contaminant; 
 
          area means a country, part of a country or all or parts of 
          several countries; 
 
          area of low pest or disease prevalence means an area in which a 
          specific pest or disease occurs at low levels; 
 
          contaminant includes pesticide and veterinary drug residues and 
          extraneous matter; 
 
          control or inspection procedure means any procedure used, 
          directly or indirectly, to determine that a sanitary or 
          phytosanitary measure is fulfilled, including sampling, testing, 
          inspection, evaluation, verification, monitoring, auditing, 
          assurance of conformity, accreditation, registration, 
          certification or other procedure involving the physical 
          examination of a good, of the packaging of a good, or of the 
          equipment or facilities directly related to production, marketing 
          or use of a good, but does not mean an approval procedure; 
 
          international standard, guideline or recommendation means a 
          standard, guideline or recommendation: 
 
               (a)  regarding food safety, adopted by the Codex 
                    Alimentarius Commission, including one regarding 
                    decomposition elaborated by the Codex Committee on Fish 
                    and Fishery Products, food additives, contaminants, 
                    hygienic practice, and methods of analysis and 
                    sampling; 
 
 
                                          7-48  
 
 
 
 
 
 
  
 
 
 
 
 
               (b)  regarding animal health and zoonoses, developed under 
                    the auspices of the International Office of Epizootics; 
 
               (c)  regarding plant health, developed under the auspices of 
                    the Secretariat of the International Plant Protection 
                    Convention in cooperation with the North American Plant 
                    Protection Organization; or 
 
               (d)  established by or developed under any other 
                    international organization agreed on by the Parties; 
 
          pest includes a weed; 
 
          pest-free or disease-free area means an area in which a specific 
          pest or disease does not occur; 
 
          plant includes wild flora; 
 
          risk assessment means an evaluation of: 
 
               (a)  the potential for the introduction, establishment or 
                    spread of a pest or disease and associated biological 
                    and economic consequences; or 
 
               (b)  the potential for adverse effects on human or animal 
                    life or health arising from the presence of an 
                    additive, contaminant, toxin or disease-causing 
                    organism in a food, beverage or feedstuff; 
 
          sanitary or phytosanitary measure means a measure that a Party 
          adopts, maintains or applies to: 
 
               (a)  protect animal or plant life or health in its territory 
                    from risks arising from the introduction, establishment 
                    or spread of a pest or disease, 
 
               (b)  protect human or animal life or health in its territory 
                    from risks arising from the presence of an additive, 
                    contaminant, toxin or disease-causing organism in a 
                    food, beverage or feedstuff, 
 
               (c)  protect human life or health in its territory from 
                    risks arising from a disease-causing organism or pest 
                    carried by an animal or plant, or a product thereof, or 
 
               (d)  prevent or limit other damage in its territory arising 
                    from the introduction, establishment or spread of a 
                    pest, 
 
          including end product criteria; a product-related processing or 
          production method; a testing, inspection, certification or 
 
 
                                          7-49  
 
 
 
 
 
 
  
 
 
 
 
 
          approval procedure; a relevant statistical method; a sampling 
          procedure; a method of risk assessment; a packaging and labelling 
          requirement directly related to food safety; and a quarantine 
          treatment, such as a relevant requirement associated with the 
          transportation of animals or plants or with material necessary 
          for their survival during transportation; and 
 
          scientific basis means a reason based on data or information 
          derived using scientific methods. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                          7-50  
 
 
 
 
 
 
