Title:NAFTA Agreement on Environmental Cooperation 
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:11054

  
 
 
 
 
 
 
 
 
 
                               NORTH AMERICAN AGREEMENT 
                                          ON 
                              ENVIRONMENTAL COOPERATION 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                       BETWEEN 
 
                   THE GOVERNMENT OF THE UNITED STATES OF AMERICA, 
 
                               THE GOVERNMENT OF CANADA 
 
                                         AND 
 
                     THE GOVERNMENT OF THE UNITED MEXICAN STATES 
 
 
 
 
 
 
 
 
                                         1993 
 
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                                       PREAMBLE 
 
          The Government of the United States of America, the Government of 
          Canada and the Government of the United Mexican States: 
 
               CONVINCED of the importance of the conservation, protection 
               and enhancement of the environment in their territories and 
               the essential role of cooperation in these areas in 
               achieving sustainable development for the well-being of 
               present and future generations; 
 
               REAFFIRMING the sovereign right of States to exploit their 
               own resources pursuant to their own environmental and 
               development policies and their responsibility to ensure that 
               activities within their jurisdiction or control do not cause 
               damage to the environment of other States or of areas beyond 
               the limits of national jurisdiction; 
 
               RECOGNIZING the interrelationship of their environments; 
 
               ACKNOWLEDGING the growing economic and social links between 
               them, including the North American Free Trade Agreement 
               (NAFTA); 
 
               RECONFIRMING the importance of the environmental goals and 
               objectives of the NAFTA, including enhanced levels of 
               environmental protection;   
 
               EMPHASIZING the importance of public participation in 
               conserving, protecting and enhancing the environment; 
 
               NOTING the existence of differences in their respective 
               natural endowments, climatic and geographical conditions, 
               and economic, technological and infrastructural 
               capabilities; 
 
               REAFFIRMING the Stockholm Declaration on the Human 
               Environment of 1972 and the Rio Declaration on Environment 
               and Development of 1992; 
 
               RECALLING their tradition of environmental cooperation and 
               expressing their desire to support and build on 
               international environmental agreements and existing policies 
               and laws, in order to promote cooperation between them; and 
 
 
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               CONVINCED of the benefits to be derived from a framework, 
               including a Commission, to facilitate effective cooperation 
               on the conservation, protection and enhancement of the 
               environment in their territories; 
 
          HAVE AGREED AS FOLLOWS: 
 
 
                                       PART ONE 
 
                                      OBJECTIVES 
 
 
          Article 1:     Objectives 
 
          The objectives of this Agreement are to: 
 
               (a)  foster the protection and improvement of the 
                    environment in the territories of the Parties for the 
                    well-being of present and future generations; 
 
               (b)  promote sustainable development based on cooperation 
                    and mutually supportive environmental and economic 
                    policies; 
 
               (c)  increase cooperation between the Parties to better 
                    conserve, protect, and enhance the environment, 
                    including wild flora and fauna; 
 
               (d)  support the environmental goals and objectives of the 
                    NAFTA; 
 
               (e)  avoid creating trade distortions or new trade barriers; 
 
 
               (f)  strengthen cooperation on the development and 
                    improvement of environmental laws, regulations, 
                    procedures, policies and practices; 
 
               (g)  enhance compliance with, and enforcement of, 
                    environmental laws and regulations; 
 
               (h)  promote transparency and public participation in the 
                    development of environmental laws, regulations and 
                    policies;  
 
               (i)  promote economically efficient and effective 
 
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                    environmental measures; and 
 
               (j)  promote pollution prevention policies and practices. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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                                       PART TWO 
 
                                     OBLIGATIONS 
 
 
          Article 2:     General Commitments  
 
          1.   Each Party shall, with respect to its territory: 
 
               (a)  periodically prepare and make publicly available 
                    reports on the state of the environment; 
 
               (b)  develop and review environmental emergency preparedness 
                    measures; 
 
               (c)  promote education in environmental matters, including 
                    environmental law; 
 
               (d)  further scientific research and technology development 
                    in respect of environmental matters; 
 
               (e)  assess, as appropriate, environmental impacts; and   
 
               (f)  promote the use of economic instruments for the 
                    efficient achievement of environmental goals. 
 
          2.   Each Party shall consider implementing in its law any 
          recommendation developed by the Council under Article 10(5)(b). 
 
          3.   Each Party shall consider prohibiting the export to the 
          territories of the other Parties of a pesticide or toxic 
          substance whose use is prohibited within the Party's territory.  
          When a Party adopts a measure prohibiting or severely restricting 
          the use of a pesticide or toxic substance in its territory, it 
          shall notify the other Parties of the measure, either directly or 
          through an appropriate international organization. 
 
 
          Article 3:     Levels of Protection 
 
               Recognizing the right of each Party to establish its own 
          levels of domestic environmental protection and environmental 
          development policies and priorities, and to adopt or modify 
          accordingly its environmental laws and regulations, each Party 
          shall ensure that its laws and regulations provide for high 
          levels of environmental protection and shall strive to continue 
 
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          to improve those laws and regulations. 
 
 
          Article 4:     Publication 
 
          1.   Each Party shall ensure that its laws, regulations, 
          procedures and administrative rulings of general application 
          respecting any matter covered by this Agreement are promptly 
          published or otherwise made available in such a manner as to 
          enable interested persons and Parties to become acquainted with 
          them. 
 
          2.   To the extent possible, each Party shall: 
 
               (a)  publish in advance any such measure that it proposes to 
                    adopt; and 
 
               (b)  provide interested persons and Parties a reasonable 
                    opportunity to comment on such proposed measures. 
 
 
          Article 5:     Government Enforcement Action 
 
          1.   With the aim of achieving high levels of environmental 
          protection and compliance with its environmental laws and 
          regulations, each Party shall effectively enforce its 
          environmental laws and regulations through appropriate 
          governmental action, subject to Article 37, such as:   
 
               (a)  appointing and training inspectors; 
 
               (b)  monitoring compliance and investigating suspected 
                    violations, including through on-site inspections; 
 
               (c)  seeking assurances of voluntary compliance and 
                    compliance agreements; 
 
               (d)  publicly releasing non-compliance information; 
 
               (e)  issuing bulletins or other periodic statements on 
                    enforcement procedures; 
 
               (f)  promoting environmental audits; 
 
               (g)  requiring record keeping and reporting; 
 
               (h)  providing or encouraging mediation and arbitration 
 
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                    services;  
 
               (i)  using licenses, permits or authorizations; 
 
               (j)  initiating, in a timely manner, judicial, quasi- 
                    judicial or administrative proceedings to seek 
                    appropriate sanctions or remedies for violations of its 
                    environmental laws and regulations; 
 
               (k)  providing for search, seizure or detention; or 
 
               (l)  issuing administrative orders, including orders of a 
                    preventative, curative or emergency nature. 
 
          2.   Each Party shall ensure that judicial, quasi-judicial or 
          administrative enforcement proceedings are available under its 
          law to sanction or remedy violations of its environmental laws 
          and regulations. 
 
          3.   Sanctions and remedies provided for a violation of a Party's 
          environmental laws and regulations shall, as appropriate: 
 
               (a)  take into consideration the nature and gravity of the 
                    violation, any economic benefit derived from the 
                    violation by the violator, the economic condition of 
                    the violator, and other relevant factors; and 
 
               (b)  include compliance agreements, fines, imprisonment, 
                    injunctions, the closure of facilities, and the cost of 
                    containing or cleaning up pollution. 
 
 
          Article 6:     Private Access to Remedies 
 
          1.   Each Party shall ensure that interested persons may request 
          the Party's competent authorities to investigate alleged 
          violations of its environmental laws and regulations and shall 
          give such requests due consideration in accordance with law. 
            
          2.   Each Party shall ensure that persons with a legally 
          recognized interest under its law in a particular matter have 
          appropriate access to administrative, quasi-judicial or judicial 
          proceedings for the enforcement of the Party's environmental laws 
          and regulations. 
 
          3.   Private access to remedies shall include rights, in 
          accordance with the Party's law, such as: 
 
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               (a)  to sue another person under that Party's jurisdiction 
                    for damages; 
 
               (b)  to seek sanctions or remedies such as monetary 
                    penalties, emergency closures or orders to mitigate the 
                    consequences of violations of its environmental laws 
                    and regulations; 
 
               (c)  to request the competent authorities to take 
                    appropriate action to enforce that Party's 
                    environmental laws and regulations in order to protect 
                    the environment or to avoid environmental harm; or 
 
               (d)  to seek injunctions where a person suffers, or may 
                    suffer, loss, damage or injury as a result of conduct 
                    by another person under that Party's jurisdiction 
                    contrary to that Party's environmental laws and 
                    regulations or from tortious conduct. 
 
 
          Article 7:     Procedural Guarantees 
 
          1.   Each Party shall ensure that its administrative, quasi- 
          judicial and judicial proceedings referred to in Articles 5(2) 
          and 6(2) are fair, open and equitable, and to this end shall 
          provide that such proceedings: 
 
               (a)  comply with due process of law; 
 
               (b)  are open to the public, except where the administration 
                    of justice otherwise requires;  
 
               (c)  entitle the parties to the proceedings to support or 
                    defend their respective positions and to present 
                    information or evidence; and 
 
               (d)  are not unnecessarily complicated and do not entail 
                    unreasonable charges or time limits or unwarranted 
                    delays. 
 
          2.   Each Party shall provide that final decisions on the merits 
          of the case in such proceedings are: 
 
               (a)  in writing and preferably state the reasons on which 
                    the decisions are based; 
 
               (b)  made available without undue delay to the parties to 
 
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                    the proceedings and, consistent with its law, to the 
                    public; and 
 
               (c)  based on information or evidence in respect of which 
                    the parties were offered the opportunity to be heard. 
 
          3.   Each Party shall provide, as appropriate, that parties to 
          such proceedings have the right, in accordance with its law, to 
          seek review and, where warranted, correction of final decisions 
          issued in such proceedings. 
 
          4.   Each Party shall ensure that tribunals that conduct or 
          review such proceedings are impartial and independent and do not 
          have any substantial interest in the outcome of the matter. 
 
 
                                      PART THREE 
 
                       COMMISSION FOR ENVIRONMENTAL COOPERATION 
 
 
          Article 8:     The Commission 
 
          1.   The Parties hereby establish the Commission for 
          Environmental Cooperation. 
 
          2.   The Commission shall comprise a Council, a Secretariat and a 
          Joint Public Advisory Committee. 
 
 
          Section A:     The Council 
 
          Article 9:     Council Structure and Procedures 
 
          1.   The Council shall comprise cabinet-level or equivalent 
          representatives of the Parties, or their designees. 
 
          2.   The Council shall establish its rules and procedures. 
 
          3.   The Council shall convene: 
 
               (a)  at least once a year in regular session; and   
 
               (b)  in special session at the request of any Party. 
 
          Regular sessions shall be chaired successively by each Party. 
 
 
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          4.   The Council shall hold public meetings in the course of all 
          regular sessions.  Other meetings held in the course of regular 
          or special sessions shall be public where the Council so decides. 
 
          5.   The Council may: 
 
               (a)  establish, and assign responsibilities to, ad hoc or 
                    standing committees, working groups or expert groups; 
 
               (b)  seek the advice of non-governmental organizations or 
                    persons, including independent experts; and 
 
               (c)  take such other action in the exercise of its functions 
                    as the Parties may agree. 
 
          6.   All decisions and recommendations of the Council shall be 
          taken by consensus, except as the Council may otherwise decide or 
          as otherwise provided in this Agreement. 
 
          7.   All decisions and recommendations of the Council shall be 
          made public, except as the Council may otherwise decide or as 
          otherwise provided in this Agreement. 
 
 
          Article 10:    Council Functions 
 
          1.   The Council shall be the governing body of the Commission 
          and shall: 
 
               (a)  serve as a forum for the discussion of environmental 
                    matters within the scope of this Agreement; 
 
               (b)  oversee the implementation and develop recommendations 
                    on the further elaboration of this Agreement and, to 
                    this end, the Council shall, within four  years after 
                    the date of entry into force of this Agreement, review 
                    its operation and effectiveness in the light of 
                    experience; 
 
               (c)  oversee the Secretariat; 
 
               (d)  address questions and differences that may arise 
                    between the Parties regarding the interpretation or 
                    application of this Agreement; 
 
               (e)  approve the annual program and budget of the 
                    Commission; and 
 
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               (f)  promote and facilitate cooperation between the Parties 
                    with respect to environmental matters. 
 
          2.   The Council may consider, and develop recommendations 
          regarding: 
 
               (a)  comparability of techniques and methodologies for data 
                    gathering and analysis, data management and electronic 
                    data communications on matters covered by this 
                    Agreement; 
 
               (b)  pollution prevention techniques and strategies; 
 
               (c)  approaches and common indicators for reporting on the 
                    state of the environment; 
 
               (d)  the use of economic instruments for the pursuit of 
                    domestic and internationally agreed environmental 
                    objectives; 
 
               (e)  scientific research and technology development in 
                    respect of environmental matters; 
 
               (f)  promotion of public awareness regarding the 
                    environment; 
 
               (g)  transboundary and border environmental issues, such as 
                    the long-range transport of air and marine pollutants; 
 
               (h)  exotic species that may be harmful; 
 
               (i)  the conservation and protection of wild flora and fauna 
                    and their habitat, and specially protected natural 
                    areas; 
 
               (j)  the protection of endangered and threatened species; 
 
               (k)  environmental emergency preparedness and response 
                    activities; 
 
               (l)  environmental matters as they relate to economic 
                    development; 
 
               (m)  the environmental implications of goods throughout 
                    their life cycles; 
 
               (n)  human resource training and development in the 
 
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                    environmental field; 
 
               (o)  the exchange of environmental scientists and officials; 
 
               (p)  approaches to environmental compliance and enforcement; 
 
               (q)  ecologically sensitive national accounts;  
 
               (r)  eco-labelling; and 
 
               (s)  other matters as it may decide. 
 
          3.   The Council shall strengthen cooperation on the development 
          and continuing improvement of environmental laws and regulations, 
          including by: 
 
               (a)  promoting the exchange of information on criteria and 
                    methodologies used in establishing domestic 
                    environmental standards; and  
 
               (b)  without reducing levels of environmental protection, 
                    establishing a process for developing recommendations 
                    on greater compatibility of environmental technical 
                    regulations, standards and conformity assessment 
                    procedures in a manner consistent with the NAFTA. 
 
          4.   The Council shall encourage: 
 
               (a)  effective enforcement by each Party of its 
                    environmental laws and regulations; 
 
               (b)  compliance with those laws and regulations; and  
 
               (c)  technical cooperation between the Parties. 
 
          5.   The Council shall promote and, as appropriate, develop 
          recommendations regarding: 
 
               a)   public access to information concerning the environment 
                    that is held by public authorities of each Party, 
                    including information on hazardous materials and 
                    activities in its communities, and opportunity to 
                    participate in decision-making processes related to 
                    such public access; and 
 
               b)   appropriate limits for specific pollutants, taking into 
                    account differences in ecosystems. 
 
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          6.   The Council shall cooperate with the NAFTA Free Trade 
          Commission to achieve the environmental goals and objectives of 
          the NAFTA by: 
 
               (a)  acting as a point of inquiry and receipt for comments 
                    from non-governmental organizations and persons 
                    concerning those goals and objectives; 
 
               (b)  providing assistance in consultations under Article 
                    1114 of the NAFTA where a Party considers that another 
                    Party is waiving or derogating from, or offering to 
                    waive or otherwise derogate from, an environmental 
                    measure as an encouragement to establish, acquire, 
                    expand or retain an investment of an investor, with a 
                    view to avoiding any such encouragement; 
 
               (c)  contributing to the prevention or resolution of 
                    environment-related trade disputes by: 
 
                    (i)  seeking to avoid disputes between the Parties, 
 
                    (ii) making recommendations to the Free Trade 
                         Commission with respect  to the avoidance of such 
                         disputes, and 
 
                    (iii)     identifying experts able to provide 
                              information or technical advice to NAFTA 
                              committees, working groups and other NAFTA 
                              bodies; 
 
               (d)  considering on an ongoing basis the environmental 
                    effects of the NAFTA; and 
 
               (e)  otherwise assisting the Free Trade Commission in 
                    environment-related matters. 
 
          7.   Recognizing the significant bilateral nature of many 
          transboundary environmental issues, the Council shall, with a 
          view to agreement between the Parties pursuant to this Article 
          within three years on obligations, consider and develop 
          recommendations with respect to: 
 
               a)   assessing the environmental impact of proposed projects 
                    subject to decisions by a competent government 
                    authority and likely to cause significant adverse 
                    transboundary effects, including a full evaluation of 
                    comments provided by other Parties and persons of other 
 
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                    Parties; 
 
               b)   notification, provision of relevant information and 
                    consultation between Parties with respect to such 
                    projects; and  
 
               c)   mitigation of the potential adverse effects of such 
                    projects. 
 
          8.   The Council shall encourage the establishment by each Party 
          of appropriate administrative procedures pursuant to its 
          environmental laws to permit another Party to seek the reduction, 
          elimination or mitigation of transboundary pollution on a 
          reciprocal basis. 
 
          9.   The Council shall consider and, as appropriate, develop 
          recommendations on the provision by a Party, on a reciprocal 
          basis, of access to and rights and remedies before its courts and 
          administrative agencies for persons in another Party's territory 
          who have suffered or are likely to suffer damage or injury caused 
          by pollution originating in its territory as if the damage or 
          injury were suffered in its territory. 
 
 
          Section B:     The Secretariat 
 
          Article 11:    Secretariat Structure and Procedures 
 
          1.   The Secretariat shall be headed by an Executive Director, 
          who shall be chosen by the Council for a three-year term, which 
          may be renewed by the Council for one additional three-year term.  
          The position of Executive Director shall rotate consecutively 
          between nationals of each Party.  The Council may remove the 
          Executive Director solely for cause. 
 
          2.   The Executive Director shall appoint and supervise the staff 
          of the Secretariat, regulate their powers and duties and fix 
          their remuneration in accordance with general standards to be 
          established by the Council.  The general standards shall provide 
          that: 
 
               (a)  staff shall be appointed and retained, and their 
                    conditions of employment shall be determined, strictly 
                    on the basis of efficiency, competence and integrity; 
 
               (b)  in appointing staff, the Executive Director shall take 
                    into account lists of candidates prepared by the 
 
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                    Parties and by the Joint Public Advisory Committee; 
 
               (c)  due regard shall be paid to the importance of 
                    recruiting an equitable proportion of the professional 
                    staff from among the nationals of each Party; and 
 
               (d)  the Executive Director shall inform the Council of all 
                    appointments. 
 
          3.   The Council may decide, by a two-thirds vote, to reject any 
          appointment that does not meet the general standards.  Any such 
          decision shall be made and held in confidence. 
 
          4.   In the performance of their duties, the Executive Director 
          and the staff shall not seek or receive instructions from any 
          government or any other authority external to the Council.   Each 
          Party shall respect the international character of the 
          responsibilities of the Executive Director and the staff and 
          shall not seek to influence them in the discharge of their 
          responsibilities. 
 
          5.   The Secretariat shall provide technical, administrative and 
          operational support to the Council and to committees and groups 
          established by the Council, and such other support as the Council 
          may direct. 
 
          6.   The Executive Director shall submit for the approval of the 
          Council the annual program and budget of the Commission, 
          including provision for proposed cooperative activities and for 
          the Secretariat to respond to contingencies. 
 
          7.   The Secretariat shall, as appropriate, provide the Parties 
          and the public information on where they may receive technical 
          advice and expertise with respect to environmental matters. 
 
          8.   The Secretariat shall safeguard: 
 
               (a)  from disclosure information it receives that could 
                    identify a non-governmental organization or person 
                    making a submission if the person or organization so 
                    requests or the Secretariat otherwise considers it 
                    appropriate; and 
 
               (b)  from public disclosure any information it receives from 
                    any non-governmental organization or person where the 
                    information is designated by that non-governmental 
                    organization or person as confidential or proprietary. 
 
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          Article 12:    Annual Report of the Commission 
 
          1.   The Secretariat shall prepare an annual report of the 
          Commission in accordance with instructions from the Council.  The 
          Secretariat shall submit a draft of the report for review by the 
          Council. The final report shall be released publicly. 
 
          2.   The report shall cover: 
 
               (a)  activities and expenses of the Commission during the 
                    previous year; 
 
               (b)  the approved program and budget of the Commission for 
                    the subsequent year; 
 
               (c)  the actions taken by each Party in connection with its 
                    obligations under this Agreement, including data on the 
                    Party's environmental enforcement activities; 
 
               (d)  relevant views and information submitted by non- 
                    governmental organizations and persons, including 
                    summary data regarding submissions, and any other 
                    relevant information the Council deems appropriate;  
 
               (e)  recommendations made on any matter within the scope of 
                    this Agreement; and  
               (f)  any other matter that the Council instructs the 
                    Secretariat to include. 
 
 
          3.   The report shall periodically address the state of the 
          environment in the territories of the Parties. 
 
 
          Article 13:    Secretariat Reports 
 
          1.   The Secretariat may prepare a report for the Council on any 
          matter within the scope of the annual program.  Should the 
          Secretariat wish to prepare a report on any other environmental 
          matter related to the cooperative functions of this Agreement, it 
          shall notify the Council and may proceed unless, within 30 days 
          of such notification, the Council objects by a two-thirds vote to 
          the preparation of the report.  Such other environmental matters 
          shall not include issues related to whether a Party has failed to 
          enforce its environmental laws and regulations.  Where the 
          Secretariat does not have specific expertise in the matter under 
 
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          review, it shall obtain the assistance of one or more independent 
          experts of recognized experience in the matter to assist in the 
          preparation of the report. 
 
          2.   In preparing such a report, the Secretariat may draw upon 
          any relevant technical, scientific or other information, 
          including information: 
 
               (a)  that is publicly available; 
 
               (b)  submitted by interested non-governmental organizations 
                    and persons; 
 
               (c)  submitted by the Joint Public Advisory Committee;  
 
               (d)  furnished by a Party; 
 
               (e)  gathered through public consultations, such as 
                    conferences, seminars and symposia; or 
 
               (f)  developed by the Secretariat, or by independent experts 
                    engaged pursuant to paragraph 1. 
 
          3.   The Secretariat shall submit its report to the Council, 
          which shall make it publicly available, normally within 60 days 
          following its submission, unless the Council otherwise decides. 
 
 
          Article 14:    Submissions on Enforcement Matters 
 
          1.   The Secretariat may consider a submission from any non- 
          governmental organization or person asserting that a Party is 
          failing to effectively enforce its environmental law, if the 
          Secretariat finds that the submission:   
 
               (a)  is in writing in a language designated by that Party in 
                    a notification to the Secretariat; 
 
               (b)  clearly identifies the person or organization making 
                    the submission; 
 
               (c)  provides sufficient information to allow the 
                    Secretariat to review the submission, including any 
                    documentary evidence on which the submission may be 
                    based; 
 
               (d)  appears to be aimed at promoting enforcement rather 
 
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                    than at harassing industry; 
 
               (e)  indicates that the matter has been communicated in 
                    writing to the relevant authorities of the Party and 
                    indicates the Party's response, if any; and   
 
               (f)  is filed by a person or organization residing or 
                    established in the territory of a Party. 
 
          2.   Where the Secretariat determines that a submission meets the 
          criteria set out in paragraph 1, the Secretariat shall determine 
          whether the submission merits requesting a response from the 
          Party.  In deciding whether to request a response, the 
          Secretariat shall be guided by whether: 
 
               (a)  the submission alleges harm to the person or 
                    organization making the submission;  
 
               (b)  the submission, alone or in combination with other 
                    submissions, raises matters whose further study in this 
                    process would advance the goals of this Agreement; 
 
               (c)  private remedies available under the Party's law have 
                    been pursued; and 
 
               (d)  the submission is drawn exclusively from mass media 
                    reports. 
 
          Where the Secretariat makes such a request, it shall forward to 
          the Party a copy of the submission and any supporting information 
          provided with the submission. 
 
          3.   The Party shall advise the Secretariat within 30 days or, in 
          exceptional circumstances and on notification to the Secretariat, 
          within 60 days of delivery of the request: 
 
               (a)  whether the matter is the subject of a pending judicial 
                    or administrative proceeding, in which case the 
                    Secretariat shall proceed no further; and  
 
               (b)  of any other information that the Party wishes to 
                    submit, such as 
 
                    i)   whether the matter was previously the subject of a 
                         judicial or administrative proceeding, and  
 
                    ii)  whether private remedies in connection with the 
 
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                         matter are available to the person or organization 
                         making the submission and whether they have been 
                         pursued. 
 
 
          Article 15:    Factual Record 
 
          1.   If the Secretariat considers that the submission, in the 
          light of any response provided by the Party, warrants developing 
          a factual record, the Secretariat shall so inform the Council and 
          provide its reasons. 
 
          2.   The Secretariat shall prepare a factual record if the 
          Council, by a two-thirds vote, instructs it to do so. 
 
          3.   The preparation of a factual record by the Secretariat 
          pursuant to this Article shall be without prejudice to any 
          further steps that may be taken with respect to any submission. 
             
          4.   In preparing a factual record, the Secretariat shall 
          consider any information furnished by a Party and may consider 
          any relevant technical, scientific or other information:  
 
               (a)  that is publicly available;  
 
               (b)  submitted by interested non-governmental organizations 
                    or persons; 
 
               (c)  submitted by the Joint Public Advisory Committee; or 
 
               (d)  developed by the Secretariat or by independent experts. 
 
          5.   The Secretariat shall submit a draft factual record to the 
          Council.  Any Party may provide comments on the accuracy of the 
          draft within 45 days thereafter. 
 
          6.   The Secretariat shall incorporate, as appropriate, any such 
          comments in the final factual record and submit it to the 
          Council. 
 
          7.   The Council may, by a two-thirds vote, make the final 
          factual record publicly available, normally within 60 days 
          following its submission. 
 
 
          Section C:     Advisory Committees 
 
 
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          Article 16:    Joint Public Advisory Committee 
 
 
          1.   The Joint Public Advisory Committee shall comprise 15 
          members, unless the Council otherwise decides.  Each Party or, if 
          the Party so decides, its National Advisory Committee convened 
          under Article 17, shall appoint an equal number of members. 
 
          2.   The Council shall establish the rules of procedure for the 
          Joint Public Advisory Committee, which shall choose its own 
          chair. 
 
          3.   The Joint Public Advisory Committee shall convene at least 
          once a year at the time of the regular session of the Council and 
          at such other times as the Council, or the Committee's chair with 
          the consent of a majority of its members, may decide.  
 
          4.   The Joint Public Advisory Committee may provide advice to 
          the Council on any matter within the scope of this Agreement, 
          including on any documents provided to it under paragraph 6, and 
          on the implementation and further elaboration of this Agreement, 
          and may perform such other functions as the Council may direct. 
 
          5.   The Joint Public Advisory Committee may provide relevant 
          technical, scientific or other information to the Secretariat, 
          including for purposes of developing a factual record under 
          Article 15.  The Secretariat shall forward to the Council copies 
          of any such information. 
 
          6.   The Secretariat shall provide to the Joint Public Advisory 
          Committee at the time they are submitted to the Council copies of 
          the proposed annual program and budget of the Commission, the 
          draft annual report, and any report the Secretariat prepares 
          pursuant to Article 13. 
 
          7.   The Council may, by a two-thirds vote, make a factual record 
          available to the Joint Public Advisory Committee. 
 
 
          Article 17:    National Advisory Committees 
 
               Each Party may convene a national advisory committee, 
          comprising members of its public, including representatives of 
          non-governmental organizations and persons, to advise it on the 
          implementation and further elaboration of this Agreement. 
 
 
 
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          Article 18:    Governmental Committees 
 
               Each Party may convene a governmental committee, which may 
          comprise or include representatives of federal and state or 
          provincial governments, to advise it on the implementation and 
          further elaboration of this Agreement. 
 
 
          Section D:     Official Languages 
 
          Article 19:    Official Languages 
 
               The official languages of the Commission shall be English, 
          French and Spanish.  All annual reports under Article 12, reports 
          submitted to the Council under Article 13, factual records 
          submitted to the Council under Article 15(6) and panel reports 
          under Part Five shall be available in each official language at 
          the time they are made public.  The Council shall establish rules 
          and procedures regarding interpretation and translation. 
 
 
                                      PART FOUR 
 
                       COOPERATION AND PROVISION OF INFORMATION 
 
 
          Article 20:    Cooperation 
 
          1.   The Parties shall at all times endeavor to agree on the 
          interpretation and application of this Agreement, and shall make 
          every attempt through cooperation and consultations to resolve 
          any matter that might affect its operation. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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          2.   To the maximum extent possible, each Party shall notify any 
          other Party with an interest in the matter of any proposed or 
          actual environmental measure that the Party considers might 
          materially affect the operation of this Agreement or otherwise 
          substantially affect that other Party's interests under this 
          Agreement. 
 
          3.   On request of any other Party, a Party shall promptly 
          provide information and respond to questions pertaining to any 
          such actual or proposed environmental measure, whether or not 
          that other Party has been previously notified of that measure. 
 
          4.   Any Party may notify any other Party of, and provide to that 
          Party, any credible information regarding possible violations of 
          its environmental law, specific and sufficient to allow the other 
          Party to inquire into the matter.  The notified Party shall take 
          appropriate steps in accordance with its law to so inquire and to 
          respond to the other Party. 
 
 
          Article 21:    Provision of Information 
 
          1.   On request of the Council or the Secretariat, each Party 
          shall, in accordance with its law, provide such information as 
          the Council or the Secretariat may require, including:   
 
               (a)  promptly making available any information in its 
                    possession required for the preparation of a report or 
                    factual record, including compliance and enforcement 
                    data; and  
 
               (b)  taking all reasonable steps to make available any other 
                    such information requested. 
 
          2.   If a Party considers that a request for information from the 
          Secretariat is excessive or otherwise unduly burdensome, it may 
          so notify the Council.  The Secretariat shall revise the scope of 
          its request to comply with any limitations established by the 
          Council by a two-thirds vote. 
 
          3.   If a Party does not make available information requested by 
          the Secretariat, as may be limited pursuant to paragraph 2, it 
          shall promptly advise the Secretariat of its reasons in writing. 
 
 
 
 
 
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                                      PART FIVE 
 
                       CONSULTATION AND RESOLUTION OF DISPUTES 
 
 
          Article 22:    Consultations 
 
          1.   Any Party may request in writing consultations with any 
          other Party regarding whether there has been a persistent pattern 
          of failure by that other Party to effectively enforce its 
          environmental law. 
 
          2.   The requesting Party shall deliver the request to the other 
          Parties and to the Secretariat. 
 
          3.   Unless the Council otherwise provides in its rules and 
          procedures established under Article 9(2), a third Party that 
          considers it has a substantial interest in the matter shall be 
          entitled to participate in the consultations on delivery of 
          written notice to the other Parties and to the Secretariat. 
 
          4.   The consulting Parties shall make every attempt to arrive at 
          a mutually satisfactory resolution of the matter through 
          consultations under this Article. 
 
 
          Article 23:    Initiation of Procedures 
 
          1.   If the consulting Parties fail to resolve the matter 
          pursuant to Article 22 within 60  days of delivery of a request 
          for consultations, or such other period as the consulting Parties 
          may agree, any such Party may request in writing a special 
          session of the Council. 
 
          2.   The requesting Party shall state in the request the matter 
          complained of and shall deliver the request to the other Parties 
          and to the Secretariat. 
 
          3.   Unless it decides otherwise, the Council shall convene 
          within 20 days of delivery of the request and shall endeavor to 
          resolve the dispute promptly. 
 
          4.   The Council may: 
 
               (a)  call on such technical advisers or create such working 
                    groups or expert groups as it deems necessary, 
 
 
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               (b)  have recourse to good offices, conciliation, mediation 
                    or such other dispute resolution procedures, or 
 
               (c)  make recommendations,  
 
          as may assist the consulting Parties to reach a mutually 
          satisfactory resolution of the dispute.   Any such 
          recommendations shall be made public if the Council, by a two- 
          thirds vote, so decides. 
 
          5.   Where the Council decides that a matter is more properly 
          covered by another agreement or arrangement to which the 
          consulting Parties are party, it shall refer the matter to those 
          Parties for appropriate action in accordance with such other 
          agreement or arrangement. 
 
 
          Article 24:    Request for an Arbitral Panel 
 
          1.   If the matter has not been resolved within 60 days after the 
          Council has convened pursuant to Article 23, the Council shall, 
          on the written request of any consulting Party and by a two- 
          thirds vote, convene an arbitral panel to consider the matter 
          where the alleged persistent pattern of failure by the Party 
          complained against to effectively enforce its environmental law 
          relates to a situation involving workplaces, firms, companies or 
          sectors that produce goods or provide services: 
 
               (a)  traded between the territories of the Parties; or 
 
               (b)  that compete, in the territory of the Party complained 
                    against, with goods or services produced or provided by 
                    persons of another Party. 
 
          2.   A third Party that considers it has a substantial interest 
          in the matter shall be entitled to join as a complaining Party on 
          delivery of written notice of its intention to participate to the 
          disputing Parties and the Secretariat.  The notice shall be 
          delivered at the earliest possible time, and in any event no 
          later than seven days after the date of the vote of the Council 
          to convene a panel. 
 
          3.   Unless otherwise agreed by the disputing Parties, the panel 
          shall be established and perform its functions in a manner 
          consistent with the provisions of this Part. 
 
 
 
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          Article 25:    Roster 
 
          1.   The Council shall establish and maintain a roster of up to 
          45 individuals who are willing and able to serve as panelists.  
          The roster members shall be appointed by consensus for terms of 
          three years, and may be reappointed. 
 
          2.   Roster members shall: 
 
               (a)  have expertise or experience in environmental law or 
                    its enforcement, or in the resolution of disputes 
                    arising under international agreements, or other 
                    relevant scientific, technical or professional 
                    expertise or experience;    
 
               (b)  be chosen strictly on the basis of objectivity, 
                    reliability and sound judgment; 
 
               (c)  be independent of, and not be affiliated with or take 
                    instructions from, any Party, the Secretariat or the 
                    Joint Public Advisory Committee; and 
 
               (d)  comply with a code of conduct to be established by the 
                    Council. 
 
 
          Article 26:    Qualifications of Panelists 
 
          1.   All panelists shall meet the qualifications set out in 
          Article 25(2). 
 
          2.   Individuals may not serve as panelists for a dispute in 
          which: 
 
               (a)  they have participated pursuant to Article 23(4); or 
 
               (b)  they have, or a person or organization with which they 
                    are affiliated has, an interest, as set out in the code 
                    of conduct established under Article 25(2)(d). 
 
 
          Article 27:    Panel Selection 
 
          1.   Where there are two disputing Parties, the following 
          procedures shall apply: 
 
               (a)  The panel shall comprise five members. 
 
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               (b)  The disputing Parties shall endeavor to agree on the 
                    chair of the panel within 15 days after the Council 
                    votes to convene the panel.  If the disputing Parties 
                    are unable to agree on the chair within this period, 
                    the disputing Party chosen by lot shall select within 
                    five days a chair who is not a citizen of that Party. 
 
               (c)  Within 15 days of selection of the chair, each 
                    disputing Party shall select two panelists who are 
                    citizens of the other disputing Party. 
 
               (d)  If a disputing Party fails to select its panelists 
                    within such period, such panelists shall be selected by 
                    lot from among the roster members who are citizens of 
                    the other disputing Party. 
 
          2.   Where there are more than two disputing Parties, the 
          following procedures shall apply:   
 
               (a)  The panel shall comprise five members. 
 
               (b)  The disputing Parties shall endeavor to agree on the 
                    chair of the panel within 15 days after the Council 
                    votes to convene the panel.  If the disputing Parties 
                    are unable to agree on the chair within this period, 
                    the Party or Parties on the side of the dispute chosen 
                    by lot shall select within 10 days a chair who is not a 
                    citizen of such Party or Parties. 
 
               (c)  Within 30 days of selection of the chair, the Party 
                    complained against shall select two panelists, one of 
                    whom is a citizen of a complaining Party, and the other 
                    of whom is a citizen of another complaining Party.  The 
                    complaining Parties shall select two panelists who are 
                    citizens of the Party complained against. 
 
               (d)  If any disputing Party fails to select a panelist 
                    within such period, such panelist shall be selected by 
                    lot in accordance with the citizenship criteria of 
                    subparagraph (c). 
 
          3.   Panelists shall normally be selected from the roster.  Any 
          disputing Party may exercise a peremptory challenge against any 
          individual not on the roster who is proposed as a panelist by a 
          disputing Party within 30 days after the individual has been 
          proposed. 
 
 
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          4.   If a disputing Party believes that a panelist is in 
          violation of the code of conduct, the disputing Parties shall 
          consult and, if they agree, the panelist shall be removed and a 
          new panelist shall be selected in accordance with this Article. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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          Article 28:    Rules of Procedure 
 
          1.   The Council shall establish Model Rules of Procedure.  The 
          procedures shall provide: 
 
               (a)  a right to at least one hearing before the panel; 
 
               (b)  the opportunity to make initial and rebuttal written 
                    submissions; and 
 
               (c)  that no panel may disclose which panelists are 
                    associated with majority or minority opinions. 
 
          2.   Unless the disputing Parties otherwise agree, panels 
          convened under this Part shall be established and conduct their 
          proceedings in accordance with the Model Rules of Procedure. 
 
          3.   Unless the disputing Parties otherwise agree within 20 days 
          after the Council votes to convene the panel, the terms of 
          reference shall be:  
 
               "To examine, in light of the relevant provisions of the 
               Agreement, including those contained in Part Five, whether 
               there has been a persistent pattern of failure by the Party 
               complained against to effectively enforce its environmental 
               law, and to make findings, determinations and 
               recommendations in accordance with Article 31(2)."     
 
 
          Article 29:    Third Party Participation 
 
               A Party that is not a disputing Party, on delivery of a 
          written notice to the disputing Parties and to the Secretariat, 
          shall be entitled to attend all hearings, to make written and 
          oral submissions to the panel and to receive written submissions 
          of the disputing Parties. 
 
 
          Article 30:    Role of Experts 
 
               On request of a disputing Party, or on its own initiative, 
          the panel may seek information and technical advice from any 
          person or body that it deems appropriate, provided that the 
          disputing Parties so agree and subject to such terms and 
          conditions as such Parties may agree. 
 
 
 
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          Article 31:    Initial Report 
 
          1.   Unless the disputing Parties otherwise agree, the panel 
          shall base its report on the submissions and arguments of the 
          Parties and on any information before it pursuant to Article 30. 
 
          2.   Unless the disputing Parties otherwise agree, the panel 
          shall, within 180 days after the last panelist is selected, 
          present to the disputing Parties an initial report containing: 
 
               (a)  findings of fact;  
 
               (b)  its determination as to whether there has been a 
                    persistent pattern of failure by the Party complained 
                    against to effectively enforce its environmental law, 
                    or any other determination requested in the terms of 
                    reference; and  
 
               (c)  in the event the panel makes an affirmative 
                    determination under subparagraph (b), its 
                    recommendations, if any, for the resolution of the 
                    dispute, which normally shall be that the Party 
                    complained against adopt and implement an action plan 
                    sufficient to remedy the pattern of non-enforcement. 
 
          3.   Panelists may furnish separate opinions on matters not 
          unanimously agreed. 
 
          4.   A disputing Party may submit written comments to the panel 
          on its initial report within 30 days of presentation of the 
          report. 
 
          5.   In such an event, and after considering such written 
          comments, the panel, on its own initiative or on the request of 
          any disputing Party, may: 
 
               (a)  request the views of any participating Party; 
 
               (b)  reconsider its report; and 
 
               (c)  make any further examination that it considers 
                    appropriate. 
 
 
          Article 32:    Final Report 
 
          1.   The panel shall present to the disputing Parties a final 
 
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          report, including any separate opinions on matters not 
          unanimously agreed, within 60 days of presentation of the initial 
          report, unless the disputing Parties otherwise agree. 
 
          2.   The disputing Parties shall transmit to the Council the 
          final report of the panel, as well as any written views that a 
          disputing Party desires to be appended, on a confidential basis 
          within 15 days after it is presented to them. 
 
          3.   The final report of the panel shall be published five days 
          after it is transmitted to the Council. 
 
 
          Article 33:    Implementation of Final Report 
 
               If, in its final report, a panel determines that there has 
          been a persistent pattern of failure by the Party complained 
          against to effectively enforce its environmental law, the 
          disputing Parties may agree on a mutually satisfactory action 
          plan, which normally shall conform with the determinations and 
          recommendations of the panel.  The disputing Parties shall 
          promptly notify the Secretariat and the Council of any agreed 
          resolution of the dispute. 
 
 
          Article 34:    Review of Implementation 
 
          1.   If, in its final report, a panel determines that there has 
          been a persistent pattern of failure by the Party complained 
          against to effectively enforce its environmental law, and:  
 
               (a)  the disputing Parties have not agreed on an action plan 
                    under Article 33 within 60 days of the date of the 
                    final report, or 
 
               (b)  the disputing Parties cannot agree on whether the Party 
                    complained against is fully implementing 
 
                    (i)  an action plan agreed under Article 33,  
 
                    (ii) an action plan deemed to have been established by 
                         a panel under paragraph 2, or 
 
                    (iii)     an action plan approved or established by a 
                              panel under paragraph 4, 
 
          any disputing Party may request that the panel be reconvened.  
 
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          The requesting Party shall deliver the request in writing to the 
          other Parties and to the Secretariat.  The Council shall 
          reconvene the panel on delivery of the request to the 
          Secretariat. 
 
          2.   No Party may make a request under paragraph 1(a) earlier 
          than 60 days, or later than 120 days, after the date of the final 
          report.  If the disputing Parties have not agreed to an action 
          plan and if no request was made under paragraph 1(a), the last 
          action plan, if any, submitted by the Party complained against to 
          the complaining Party or Parties within 60 days of the date of 
          the final report, or such other period as the disputing Parties 
          may agree, shall be deemed to have been established by the panel 
          120 days after the date of the final report. 
            
          3.   A request under paragraph 1(b) may be made no earlier than 
          180 days after an action plan has been: 
 
               (a)  agreed under Article 33; 
 
               (b)  deemed to have been established by a panel under 
                    paragraph 2; or 
 
               (c)  approved or established by a panel under paragraph 4; 
 
          and only during the term of any such action plan. 
 
          4.   Where a panel has been reconvened under paragraph 1(a), it: 
 
               (a)  shall determine whether any action plan proposed by the 
                    Party complained against is sufficient to remedy the 
                    pattern of non-enforcement and  
 
                    (i)  if so, shall approve the plan, or 
 
                    (ii) if not, shall establish such a plan consistent 
                         with the law of the Party complained against, and 
 
               (b)  may, where warranted, impose a monetary enforcement 
                    assessment in accordance with Annex 34,  
 
          within 90 days after the panel has been reconvened or such other 
          period as the disputing Parties may agree. 
 
          5.   Where a panel has been reconvened under paragraph 1(b), it 
          shall determine either that: 
 
 
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               (a)  the Party complained against is fully implementing the 
                    action plan, in which case the panel may not impose a 
                    monetary enforcement assessment, or 
 
               (b)  the Party complained against is not fully implementing 
                    the action plan, in which case the panel shall impose a 
                    monetary enforcement assessment in accordance with 
                    Annex 34,  
 
          within 60 days after it has been reconvened or such other period 
          as the disputing Parties may agree. 
 
          6.   A panel reconvened under this Article shall provide that the 
          Party complained against shall fully implement any action plan 
          referred to in paragraph 4(a)(ii) or 5(b), and pay any monetary 
          enforcement assessment imposed under paragraph 4(b) or 5(b), and 
          any such provision shall be final. 
 
 
          Article 35:    Further Proceeding 
 
               A complaining Party may, at any time beginning 180 days 
          after a panel determination under Article 34(5)(b), request in 
          writing that a panel be reconvened to determine whether the Party 
          complained against is fully implementing the action plan.  On 
          delivery of the request to the other Parties and the Secretariat, 
          the Council shall reconvene the panel.   The panel shall make the 
          determination within 60 days after it has been reconvened or such 
          other period as the disputing Parties may agree. 
 
 
          Article 36:    Suspension of Benefits 
 
          1.   Subject to Annex 36A, where a Party fails to pay a monetary 
          enforcement assessment within 180 days after it is imposed by a 
          panel: 
 
               (a)  under Article 34(4)(b), or  
 
               (b)  under Article 34(5)(b), except where benefits may be 
                    suspended under paragraph 2(a), 
 
          any complaining Party or Parties may suspend, in accordance with 
          Annex 36B, the application to the Party complained against of 
          NAFTA benefits in an amount no greater than that sufficient to 
          collect the monetary enforcement assessment. 
 
 
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          2.   Subject to Annex 36A, where a panel has made a determination 
          under Article 34(5)(b) and the panel: 
 
               (a)  has previously imposed a monetary enforcement 
                    assessment under Article 34(4)(b) or established an 
                    action plan under Article 34(4)(a)(ii); or  
 
               (b)  has subsequently determined under Article 35 that a 
                    Party is not fully implementing an action plan; 
 
 
          the complaining Party or Parties may, in accordance with Annex 
          36B, suspend annually the application to the Party complained 
          against of NAFTA benefits in an amount no greater than the 
          monetary enforcement assessment imposed by the panel under 
          Article 34(5)(b). 
 
          3.   Where more than one complaining Party suspends benefits 
          under paragraph 1 or 2, the combined suspension shall be no 
          greater than the amount of the monetary enforcement assessment. 
 
          4.   Where a Party has suspended benefits under paragraph 1 or 2, 
          the Council shall, on the delivery of a written request by the 
          Party complained against to the other Parties and the 
          Secretariat, reconvene the panel to determine whether the 
          monetary enforcement assessment has been paid or collected, or 
          whether the Party complained against is fully implementing the 
          action plan, as the case may be.  The panel shall submit its 
          report within 45 days after it has been reconvened.  If the panel 
          determines that the assessment has been paid or collected, or 
          that the Party complained against is fully implementing the 
          action plan, the suspension of benefits under paragraph 1 or 2, 
          as the case may be, shall be terminated. 
 
          5.   On the written request of the Party complained against, 
          delivered to the other Parties and the Secretariat, the Council 
          shall reconvene the panel to determine whether the suspension of 
          benefits by the complaining Party or Parties pursuant to 
          paragraph 1 or 2 is manifestly excessive.  Within 45 days of the 
          request, the panel shall present a report to the disputing 
          Parties containing its determination. 
 
 
 
                                       PART SIX 
 
                                  GENERAL PROVISIONS 
 
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          Article 37:    Enforcement Principle 
 
               Nothing in this Agreement shall be construed to empower a 
          Party's authorities to undertake environmental law enforcement 
          activities in the territory of another Party. 
 
 
          Article 38:    Private Rights 
 
               No Party may provide for a right of action under its law 
          against any other Party on the ground that another Party has 
          acted in a manner inconsistent with this Agreement. 
 
 
          Article 39:    Protection of Information  
 
          1.   Nothing in this Agreement shall be construed to require a 
          Party to make available or allow access to information: 
 
               (a)  the disclosure of which would impede its environmental 
                    law enforcement; or  
 
               (b)  that is protected from disclosure by its law governing 
                    business or proprietary information, personal privacy 
                    or the confidentiality of governmental decision making. 
 
          2.   If a Party provides confidential or proprietary information 
          to another Party, the Council, the Secretariat or the Joint 
          Public Advisory Committee, the recipient shall treat the 
          information on the same basis as the Party providing the 
          information. 
 
          3.   Confidential or proprietary information provided by a Party 
          to a panel under this Agreement shall be treated in accordance 
          with the rules of procedure established under Article 28. 
 
 
          Article 40:    Relation to Other Environmental Agreements 
 
               Nothing in this Agreement shall be construed to affect the 
          existing rights and obligations of the Parties under other 
          international environmental agreements, including conservation 
          agreements, to which such Parties are party. 
 
 
          Article 41:    Extent of Obligations 
 
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               Annex 41 applies to the Parties specified in that Annex. 
 
 
          Article 42:  National Security  
 
               Nothing in this Agreement shall be construed:  
 
               (a)  to require any Party to make available or provide 
                    access to information the disclosure of which it 
                    determines to be contrary to its essential security 
                    interests; or 
 
               (b)  to prevent any Party from taking any actions that it 
                    considers necessary for the protection of its essential 
                    security interests relating to 
 
                    (i)  arms, ammunition and implements of war, or 
 
                    (ii) the implementation of national policies or 
                         international agreements respecting the non- 
                         proliferation of nuclear weapons or other nuclear 
                         explosive devices. 
 
 
          Article 43:    Funding of the Commission 
 
               Each Party shall contribute an equal share of the annual 
          budget of the Commission, subject to the availability of 
          appropriated funds in accordance with the Party's legal 
          procedures.  No Party shall be obligated to pay more than any 
          other Party in respect of an annual budget. 
 
 
          Article 44:    Privileges and Immunities 
 
               The Executive Director and staff of the Secretariat shall 
          enjoy in the territory of each Party such privileges and 
          immunities as are necessary for the exercise of their functions. 
 
 
          Article 45:    Definitions 
 
          1.   For purposes of this Agreement: 
 
          A Party has not failed to "effectively enforce its environmental 
          law" or to comply with Article 5(1) in a particular case where 
          the action or inaction in question by agencies or officials of 
 
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          that Party: 
 
               (a)  reflects a reasonable exercise of their discretion in 
                    respect of investigatory, prosecutorial, regulatory or 
                    compliance matters; or  
 
               (b)  results from bona fide decisions to allocate resources 
                    to enforcement in respect of other environmental 
                    matters determined to have higher priorities; 
 
          "non-governmental organization" means any scientific, 
          professional, business, non-profit, or public interest 
          organization or association which is neither affilated with, nor 
          under the direction of, a government; 
 
          "persistent pattern" means a sustained or recurring course of 
          action or inaction beginning after the date of entry into force 
          of this Agreement; 
 
          "province" means a province of Canada, and includes the Yukon 
          Territory and the Northwest Territories and their successors; and 
 
          "territory" means for a Party the territory of that Party as set 
          out in Annex 45. 
 
          2.   For purposes of Article 14(1) and Part Five: 
 
               (a)  "environmental law" means any statute or regulation of 
                    a Party, or provision thereof, the primary purpose of 
                    which is the protection of the environment, or the 
                    prevention of a danger to human life or health, through 
 
                    (i)  the prevention, abatement or control of the 
                         release, discharge, or emission of pollutants or 
                         environmental contaminants, 
 
                    (ii) the control of environmentally hazardous or toxic 
                         chemicals, substances, materials and wastes, and 
                         the dissemination of information related thereto, 
                         or  
 
                    (iii)     the protection of wild flora or fauna, 
                              including endangered species, their habitat, 
                              and specially protected natural areas  
 
                    in the Party's territory, but does not include any 
                    statute or regulation, or provision thereof, directly 
 
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                    related to worker safety or health. 
 
               (b)  For greater certainty, the term "environmental law" 
                    does not include any statute or regulation, or 
                    provision thereof, the primary purpose of which is 
                    managing the commercial harvest or exploitation, or 
                    subsistence or aboriginal harvesting, of natural 
                    resources. 
 
               (c)  The primary purpose of a particular statutory or 
                    regulatory provision for purposes of subparagraphs (a) 
                    and (b) shall be determined by reference to its primary 
                    purpose, rather than to the primary purpose of the 
                    statute or regulation of which it is part. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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          3.   For purposes of Article 14(3), "judicial or administrative 
          proceeding" means: 
 
               (a)  a domestic judicial, quasi-judicial or administrative 
                    action pursued by the Party in a timely fashion and in 
                    accordance with its law.  Such actions comprise:  
                    mediation; arbitration; the process of issuing a 
                    license, permit, or authorization; seeking an assurance 
                    of voluntary compliance or a compliance agreement; 
                    seeking sanctions or remedies in an administrative or 
                    judicial forum; and the process of issuing an 
                    administrative order; and  
 
               (b)  an international dispute resolution proceeding to which 
                    the Party is party. 
 
 
                                      PART SEVEN 
 
                                   FINAL PROVISIONS 
 
 
          Article 46:    Annexes 
 
               The Annexes to this Agreement constitute an integral part of 
          the Agreement. 
 
 
          Article 47:     Entry into Force  
 
               This Agreement shall enter into force on January 1, 1994, 
          immediately after entry into force of the NAFTA, on an exchange 
          of written notifications certifying the completion of necessary 
          legal procedures. 
 
 
          Article 48:    Amendments 
 
          1.   The Parties may agree on any modification of or addition to 
          this Agreement. 
 
          2.   When so agreed, and approved in accordance with the 
          applicable legal procedures of each Party, a modification or 
          addition shall constitute an integral part of this Agreement. 
 
 
          Article 49:    Accession 
 
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               Any country or group of countries may accede to this 
          Agreement subject to such terms and conditions as may be agreed 
          between such country or countries and the Council and following 
          approval in accordance with the applicable legal procedures of 
          each country. 
 
 
          Article 50:    Withdrawal 
 
               A Party may withdraw from this Agreement six months after it 
          provides written notice of withdrawal to the other Parties.  If a 
          Party withdraws, the Agreement shall remain in force for the 
          remaining Parties. 
 
 
          Article 51:    Authentic Texts 
 
               The English, French, and Spanish texts of this Agreement are 
          equally authentic. 
 
 
 
 
 
 
               IN WITNESS WHEREOF, the undersigned, being duly authorized 
          by the respective Governments, have signed this Agreement. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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                                       ANNEX 34 
 
                           MONETARY ENFORCEMENT ASSESSMENTS 
 
 
          1.   For the first year after the date of entry into force of 
          this Agreement, any monetary enforcement assessment shall be no 
          greater than 20 million dollars (U.S.) or its equivalent in the 
          currency of the Party complained against.  Thereafter, any 
          monetary enforcement assessment shall be no greater than .007 
          percent of total trade in goods between the Parties during the 
          most recent year for which data are available. 
 
          2.   In determining the amount of the assessment, the panel shall 
          take into account:  
 
               (a)  the pervasiveness and duration of the Party's 
                    persistent pattern of failure to effectively enforce 
                    its environmental law; 
 
               (b)  the level of enforcement that could reasonably be 
                    expected of a Party given its resource constraints;  
 
               (c)  the reasons, if any, provided by the Party for not 
                    fully implementing an action plan; 
 
               (d)  efforts made by the Party to begin remedying the 
                    pattern of non-enforcement after the final report of 
                    the panel; and 
 
               (e)  any other relevant factors. 
 
          3.   All monetary enforcement assessments shall be paid in the 
          currency of the Party complained against into a fund established 
          in the name of the Commission by the Council and shall be 
          expended at the direction of the Council to improve or enhance 
          the environment or environmental law enforcement in the Party 
          complained against, consistent with its law. 
 
 
 
 
 
 
 
 
 
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                                      ANNEX 36A 
 
                     CANADIAN DOMESTIC ENFORCEMENT AND COLLECTION 
 
 
          1.   For the purposes of this Annex, "panel determination" means: 
 
               (a)  a determination by a panel under Article 34(4)(b) or 
                    5(b) that provides that Canada shall pay a monetary 
                    enforcement assessment; and 
 
               (b)  a determination by a panel under Article 34(5)(b) that 
                    provides that Canada shall fully implement an action 
                    plan where the panel: 
 
                    (i)  has previously established an action plan under 
                         Article 34(4)(a)(ii) or imposed a monetary 
                         enforcement assessment under Article 34(4)(b); or 
 
                    (ii) has subsequently determined under Article 35 that 
                         Canada is not fully implementing an action plan. 
 
          2.   Canada shall adopt and maintain procedures that provide 
          that: 
 
               (a)  subject to subparagraph (b), the Commission, at the 
                    request of a complaining Party, may in its own name 
                    file in a court of competent jurisdiction a certified 
                    copy of a panel determination; 
 
               (b)  the Commission may file in court a panel determination 
                    that is a panel determination described in paragraph 
                    1(a) only if Canada has failed to comply with the 
                    determination within 180 days of when the determination 
                    was made; 
 
               (c)  when filed, the panel determination, for purposes of 
                    enforcement, shall become an order of the court; 
 
               (d)  the Commission may take proceedings for enforcement of 
                    a panel determination that is made an order of the 
                    court, in that court, against the person against whom 
                    the panel determination is addressed in accordance with 
                    paragraph 6 of Annex 41; 
 
               (e)  proceedings to enforce a panel determination that has 
                    been made an order of the court shall be conducted by 
 
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                    way of summary proceedings; 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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               (f)  in proceedings to enforce a panel determination that is 
                    a panel determination described in paragraph 1(b) and 
                    that has been made an order of the court, the court 
                    shall promptly refer any question of fact or any 
                    question of interpretation of the panel determination 
                    to the panel that made the panel determination, and the 
                    decision of the panel shall be binding on the court; 
 
               (g)  a panel determination that has been made an order of 
                    the court shall not be subject to domestic review or 
                    appeal; and 
 
               (h)  an order made by the court in proceedings to enforce a 
                    panel determination that has been made an order of the 
                    court shall not be subject to review or appeal. 
 
          3.   Where Canada is the Party complained against, the procedures 
          adopted and maintained by Canada under this Annex shall apply and 
          the procedures set out in Article 36 shall not apply. 
 
          4.   Any change by Canada to the procedures adopted and 
          maintained by Canada under this Annex that have the effect of 
          undermining the provisions of this Annex shall be considered a 
          breach of this Agreement. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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                                      ANNEX 36B 
 
                                SUSPENSION OF BENEFITS 
 
          1.   Where a complaining Party suspends NAFTA tariff benefits in 
          accordance with this Agreement, the Party may increase the rates 
          of duty on originating goods of the Party complained against to 
          levels not to exceed the lesser of: 
 
               (a)  the rate that was applicable to those goods immediately 
                    prior to the date of entry into force of the NAFTA, and 
 
               (b)  the Most-Favored-Nation rate applicable to those goods 
                    on the date the Party suspends such benefits, 
 
          and such increase may be applied only for such time as is 
          necessary to collect, through such increase, the monetary 
          enforcement assessment. 
 
          2.   In considering what tariff or other benefits to suspend 
          pursuant to Article 36(1) or (2): 
 
               (a)  a complaining Party shall first seek to suspend 
                    benefits in the same sector or sectors as that in 
                    respect of which there has been a persistent pattern of 
                    failure by the Party complained against to effectively 
                    enforce its environmental law; and 
 
               (b)  a complaining Party that considers it is not 
                    practicable or effective to suspend benefits in the 
                    same sector or sectors may suspend benefits in other 
                    sectors. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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                                       ANNEX 41 
 
                                EXTENT OF OBLIGATIONS 
 
          1.   On the date of signature of this Agreement, or of the 
          exchange of written notifications under Article 47, Canada shall 
          set out in a declaration a list of any provinces for which Canada 
          is to be bound in respect of matters within their jurisdiction.  
          The declaration shall be effective on delivery to the other 
          Parties, and shall carry no implication as to the internal 
          distribution of powers within Canada.  Canada shall notify the 
          other Parties six months in advance of any modification to its 
          declaration. 
 
          2.   When considering whether to instruct the Secretariat to 
          prepare a factual record pursuant to Article 15, the Council 
          shall take into account whether the submission was made by a non- 
          governmental organization or enterprise incorporated or otherwise 
          organized under the laws of a province included in the 
          declaration made under paragraph 1. 
 
          3.   Canada may not request consultations under Article 22 or a 
          Council meeting under Article 23 or request the establishment of 
          a panel or join as a complaining Party under Article 24 against 
          another Party at the instance, or primarily for the benefit, of 
          any government of a province not included in the declaration made 
          under paragraph 1. 
 
          4.   Canada may not request a Council meeting under Article 23, 
          or request the establishment of a panel or join as a complaining 
          Party under Article 24 concerning whether there has been a 
          persistent pattern of failure by another Party to effectively 
          enforce its environmental law, unless Canada states in writing 
          that the matter would be under federal jurisdiction if it were to 
          arise within the territory of Canada, or: 
 
               (a)  Canada states in writing that the matter would be under 
                    provincial jurisdiction if it were to arise within the 
                    territory of Canada; and  
 
               (b)  the provinces included in the declaration account for 
                    at least 55 percent of Canada's Gross Domestic Product 
                    (GDP) for the most recent year in which data are 
                    available, and 
 
               (c)  where the matter concerns a specific industry or 
 
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                    sector, at least 55 percent of total Canadian 
                    production in that industry or sector is accounted for 
                    by the provinces included in the declaration for the 
                    most recent year in which data are available. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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          5.   No other Party may request a Council meeting under Article 
          23 or request the establishment of a panel or join as a 
          complaining Party under Article 24 concerning whether there has 
          been a persistent failure to effectively enforce an environmental 
          law of a province unless that province is included in the 
          declaration made under paragraph 1 and the requirements of 
          subparagraphs 4(b) and (c) have been met. 
 
          6.   Canada shall, no later than the date on which an arbitral 
          panel is convened pursuant to Article 24 respecting a matter 
          within the scope of paragraph 5 of this Annex, notify in writing 
          the complaining Parties and the Secretariat of whether any 
          monetary enforcement assessment or action plan imposed by a panel 
          under Article 34(4) or 34(5) against Canada shall be addressed to 
          Her Majesty in right of Canada or Her Majesty in right of the 
          province concerned. 
 
          7.   Canada shall use its best efforts to make this Agreement 
          applicable to as many of its provinces as possible. 
 
          8.   Two years after the date of entry into force of this 
          Agreement, the Council shall review the operation of this Annex 
          and, in particular, shall consider whether the Parties should 
          amend the thresholds established in paragraph 4. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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                                       ANNEX 45 
 
                             COUNTRY-SPECIFIC DEFINITIONS 
 
 
          For purposes of this Agreement: 
 
          "territory" means: 
 
               (a)  with respect to Canada, the territory to which its 
                    customs laws apply, including any areas beyond the 
                    territorial seas of Canada within which, in accordance 
                    with international law and its domestic law, Canada may 
                    exercise rights with respect to the seabed and subsoil 
                    and their natural resources; 
 
               (b)  with respect to Mexico, 
 
                    (i)  the states of the Federation and the Federal 
                         District, 
 
                    (ii) the islands, including the reefs and keys, in 
                         adjacent seas, 
 
                    (iii)     the islands of Guadalupe and Revillagigedo 
                              situated in the Pacific Ocean, 
 
                    (iv) the continental shelf and the submarine shelf of 
                         such islands, keys and reefs, 
 
                    (v)  the waters of the territorial seas, in accordance 
                         with international law, and its interior maritime 
                         waters, 
 
                    (vi) the space located above the national territory, in 
                         accordance with international law, and 
 
                    (vii)     any areas beyond the territorial seas of 
                              Mexico within which, in accordance with 
                              international law, including the United 
                              Nations Convention on the Law of the Sea, and 
                              its domestic law, Mexico may exercise rights 
                              with respect to the seabed and subsoil and 
                              their natural resources; and 
 
 
 
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               (c)  with respect to the United States, 
 
                    (i)  the customs territory of the United States, which 
                         includes the 50 states, the District of Columbia 
                         and Puerto Rico, 
 
                    (ii) the foreign trade zones located in the United 
                         States and Puerto Rico, and 
 
                    (iii)     any areas beyond the territorial seas of the 
                              United States within which, in accordance 
                              with international law and its domestic law, 
                              the United States may exercise rights with 
                              respect to the seabed and subsoil and their 
                              natural resources. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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