Title:Labor Cooperation -- NAFTA
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:102396

  
 
 
 
 
 
                                                      
 
                              NORTH  AMERICAN  AGREEMENT 
                                          ON 
                                  LABOR  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: 
 
          RECALLING their resolve in the North American Free Trade 
          Agreement (NAFTA) to: 
 
               -    create an expanded and secure market for the goods and 
                    services produced in their territories, 
 
               -    enhance the competitiveness of their firms in global 
                    markets, 
 
               -    create new employment opportunities and improve working 
                    conditions and living standards in their respective 
                    territories, and 
 
               -    protect, enhance and enforce basic workers' rights; 
 
          AFFIRMING their continuing respect for each Party's constitution 
          and law; 
 
          DESIRING to build on their respective international commitments 
          and to strengthen their cooperation on labor matters; 
 
          RECOGNIZING that their mutual prosperity depends on the promotion 
          of competition based on innovation and rising levels of 
          productivity and quality; 
 
          SEEKING to complement the economic opportunities created by the 
          NAFTA with the human resource development, labor-management 
          cooperation and continuous learning that characterize high- 
          productivity economies;  
 
          ACKNOWLEDGING that protecting basic workers' rights will 
          encourage firms to adopt high-productivity competitive 
          strategies;  
 
          RESOLVED to promote, in accordance with their respective laws, 
          high-skill, high-productivity economic development in North 
          America by: 
 
          -    investing in continuous human resource development, 
               including for entry into the workforce and during periods of 
               unemployment; 
 
 
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          -    promoting employment security and career opportunities for 
               all workers through referral and other employment services; 
 
          -    strengthening labor-management cooperation to promote 
               greater dialogue between worker organizations and employers 
               and to foster creativity and productivity in the workplace; 
 
          -    promoting higher living standards as productivity increases;  
                    
 
          -    encouraging consultation and dialogue between labor, 
               business and government both in each country and in North 
               America; 
 
          -    fostering investment with due regard for the importance of 
               labor laws and principles; 
 
          -    encouraging employers and employees in each country to 
               comply with labor laws and to work together in maintaining a 
               progressive, fair, safe and healthy working environment; 
 
          BUILDING on existing institutions and mechanisms in Canada, 
          Mexico and the United States to achieve the preceding economic 
          and social goals; and  
 
          CONVINCED of the benefits to be gained from further cooperation 
          between them on labor matters; 
 
          HAVE AGREED as follows: 
 
 
 
                                       PART ONE 
 
                                      OBJECTIVES 
 
          Article 1:      Objectives 
 
               The objectives of this Agreement are to: 
 
               (a)  improve working conditions and living standards in each 
                    Party's territory; 
 
               (b)  promote, to the maximum extent possible, the labor 
                    principles set out in Annex 1; 
 
               (c)  encourage cooperation to promote innovation and rising 
                    levels of productivity and quality; 
 
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               (d)  encourage publication and exchange of information, data 
                    development and coordination, and joint studies to 
                    enhance mutually beneficial understanding of the laws 
                    and institutions governing labor in each Party's 
                    territory; 
 
               (e)  pursue cooperative labor-related activities on the 
                    basis of mutual benefit; 
 
               (f)  promote compliance with, and effective enforcement by 
                    each Party of, its labor law; and 
 
               (g)  foster transparency in the administration of labor law. 
 
 
 
                                       PART TWO 
 
                                     OBLIGATIONS 
 
 
          Article 2:      Levels of Protection 
 
               Affirming full respect for each Party's constitution, and 
          recognizing the right of each Party to establish its own domestic 
          labor standards, and to adopt or modify accordingly its labor 
          laws and regulations, each Party shall ensure that its labor laws 
          and regulations provide for high labor standards, consistent with 
          high quality and productivity workplaces, and shall continue to 
          strive to improve those standards in that light. 
 
 
          Article 3:      Government Enforcement Action 
 
          1.   Each Party shall promote compliance with and effectively 
          enforce its labor law through appropriate government action, 
          subject to Article 42, 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; 
 
               (d)  requiring record keeping and reporting; 
 
               (e)  encouraging the establishment of worker-management 
 
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                    committees to address labor regulation of the 
                    workplace; 
 
               (f)  providing or encouraging mediation, conciliation and 
                    arbitration services; or 
 
               (g)  initiating, in a timely manner, proceedings to seek 
                    appropriate sanctions or remedies for violations of its 
                    labor law. 
 
          2.   Each Party shall ensure that its competent authorities give 
          due consideration in accordance with its law to any request by an 
          employer, employee or their representatives, or other interested 
          person, for an investigation of an alleged violation of the 
          Party's labor law. 
 
 
          Article 4:     Private Action 
 
          1.   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, judicial or 
          labor tribunals for the enforcement of the Party's labor law. 
 
          2.   Each Party's law shall ensure that such persons may have 
          recourse to, as appropriate, procedures by which rights arising 
          under: 
 
               (a)  its labor law, including in respect of occupational 
                    safety and health, employment standards, industrial 
                    relations and migrant workers, and 
 
               (b)  collective agreements, 
 
          can be enforced. 
 
 
          Article 5:     Procedural Guarantees 
 
          1.   Each Party shall ensure that its administrative, quasi- 
          judicial, judicial and labor tribunal proceedings for the 
          enforcement of its labor law are fair, equitable and transparent 
          and, to this end, each Party shall provide that: 
 
               (a)  such proceedings comply with due process of law; 
 
               (b)  any hearings in such proceedings are open to the 
                    public, except where the administration of justice 
 
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                    otherwise requires; 
 
               (c)  the parties to such proceedings are entitled to support 
                    or defend their respective positions and to present 
                    information or evidence; and 
 
               (d)  such proceedings are not unneccessarily 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 
                    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. 
 
          5.   Each Party shall provide that the parties to administrative, 
          quasi-judicial, judicial or labor tribunal proceedings may seek 
          remedies to ensure the enforcement of their labor rights.  Such 
          remedies may include, as appropriate, orders, compliance 
          agreements, fines, penalties, imprisonment, injunctions or 
          emergency workplace closures. 
 
          6.   Each Party may, as appropriate, adopt or maintain labor 
          defense offices to represent or advise workers or their 
          organizations. 
 
          7.   Nothing in this Article shall be construed to require a 
          Party to establish, or to prevent a Party from establishing, a 
          judicial system for the enforcement of its labor law distinct 
          from its system for the enforcement of laws in general. 
 
 
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          8.   For greater certainty, decisions by each Party's 
          administrative, quasi-judicial, judicial or labor tribunals, or 
          pending decisions, as well as related proceedings shall not be 
          subject to revision or reopened under the provisions of this 
          Agreement. 
 
 
          Article 6:      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.   When so established by its law, each Party shall: 
 
               (a)  publish in advance any such measure that it proposes to 
                    adopt; and 
 
               (b)  provide interested persons a reasonable opportunity to 
                    comment on such proposed measures. 
 
 
          Article 7:      Public Information and Awareness 
 
               Each Party shall promote public awareness of its labor law, 
          including by: 
 
               (a)  ensuring that public information is available related 
                    to its labor law and enforcement and compliance 
                    procedures; and  
 
               (b)  promoting public education regarding its labor law. 
 
 
 
                                      PART THREE 
 
                           COMMISSION FOR LABOR COOPERATION 
 
 
          Article 8:     The Commission 
 
          1.   The Parties hereby establish the Commission for Labor 
          Cooperation. 
 
 
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          2.   The Commission shall comprise a ministerial Council and a 
          Secretariat.  The Commission shall be assisted by the National 
          Administrative Office of each Party. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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          Section A:     The Council 
 
          Article 9:     Council Structure and Procedures 
 
          1.   The Council shall comprise labor ministers 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. 
 
          4.   The Council may hold public sessions to report on 
          appropriate matters. 
 
          5.   The Council may: 
 
               (a)  establish, and assign responsibilities to, committees, 
                    working groups or expert groups; and 
 
               (b)  seek the advice of independent experts. 
 
          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.  
 
 
          Article 10:    Council Functions 
 
          1.   The Council shall be the governing body of the Commission 
          and shall: 
 
               (a)  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; 
 
               (b)  direct the work and activities of the Secretariat and 
                    of any committees or working groups convened by the 
                    Council; 
 
 
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               (c)  establish priorities for cooperative action and, as 
                    appropriate, develop technical assistance programs on 
                    the matters set out in Article 11; 
 
               (d)  approve the annual plan of activities and budget of the 
                    Commission; 
 
               (e)  approve for publication, subject to such terms or 
                    conditions as it may impose, reports and studies 
                    prepared by the Secretariat, independent experts or 
                    working groups;  
 
               (f)  facilitate Party-to-Party consultations, including 
                    through the exchange of information; 
 
               (g)  address questions and differences that may arise 
                    between the Parties regarding the interpretation or 
                    application of this Agreement; and 
 
               (h)  promote the collection and publication of comparable 
                    data on enforcement, labor standards and labor market 
                    indicators. 
 
          2.   The Council may consider any other matter within the scope 
          of this Agreement and take such other action in the exercise of 
          its functions as the Parties may agree. 
 
 
          Article 11:    Cooperative Activities 
 
          1.   The Council shall promote cooperative activities between the 
          Parties, as appropriate, regarding: 
 
               (a)  occupational safety and health; 
 
               (b)  child labor; 
 
               (c)  migrant workers of the Parties; 
 
               (d)  human resource development;  
 
               (e)  labor statistics; 
 
               (f)  work benefits; 
 
               (g)  social programs for workers and their families; 
 
               (h)  programs, methodologies and experiences regarding 
 
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                    productivity improvement; 
 
               (i)  labor-management relations and collective bargaining 
                    procedures; 
 
               (j)  employment standards and their implementation; 
 
               (k)  compensation for work-related injury or illness; 
 
               (l)  legislation relating to the formation and operation of 
                    unions, collective bargaining and the resolution of 
                    labor disputes, and its implementation; 
 
               (m)  the equality of women and men in the workplace; 
 
               (n)  forms of cooperation among workers, management and 
                    government; 
 
               (o)  the provision of technical assistance, at the request 
                    of a Party, for the development of its labor standards; 
                    and 
 
               (p)  such other matters as the Parties may agree. 
 
          2.   In carrying out the activities referred to in paragraph 1, 
          the Parties may, commensurate with the availability of resources 
          in each Party, cooperate through: 
 
               (a)  seminars, training sessions, working groups and 
                    conferences; 
 
               (b)  joint research projects, including sectoral studies; 
 
               (c)  technical assistance; and 
 
               (d)  such other means as the Parties may agree. 
 
          3.   The Parties shall carry out the cooperative activities 
          referred to in paragraph 1 with due regard for the economic, 
          social, cultural and legislative differences between them. 
 
 
          Section B:     The Secretariat 
 
          Article 12:    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 
 
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          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 
                    Parties; 
 
               (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 number of staff positions shall initially be set at 15 
          and may be changed thereafter by the Council. 
 
          4.   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. 
 
          5.   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. 
 
          6.   The Secretariat shall safeguard: 
 
               (a)  from disclosure information it receives that could 
                    identify an organization or person if the person or 
                    organization so requests or the Secretariat otherwise 
                    considers it appropriate; and 
 
 
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               (b)  from public disclosure any information it receives from 
                    any organization or person where the information is 
                    designated by that organization or person as 
                    confidential or proprietary. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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          7.   The Secretariat shall act under the direction of the Council 
          in accordance with Article 10(1)(b). 
 
 
          Article 13:    Secretariat Functions 
 
          1.   The Secretariat shall assist the Council in exercising its 
          functions and shall provide such other support as the Council may 
          direct. 
 
          2.   The Executive Director shall submit for the approval of the 
          Council the annual plan of activities and budget for the 
          Commission, including provision for contingencies and proposed 
          cooperative activities. 
 
          3.   The Secretariat shall report to the Council annually on its 
          activities and expenditures. 
 
          4.   The Secretariat shall periodically publish a list of matters 
          resolved under Part Four or referred to Evaluation Committees of 
          Experts. 
 
 
          Article 14:    Secretariat Reports and Studies 
 
          1.   The Secretariat shall periodically prepare background 
          reports setting out publicly available information supplied by 
          each Party on: 
 
               (a)  labor law and administrative procedures; 
 
               (b)  trends and administrative strategies related to the 
                    implementation and enforcement of labor law;  
 
               (c)  labor market conditions such as employment rates, 
                    average wages and labor productivity; and 
 
               (d)  human resource development issues such as training and 
                    adjustment programs. 
 
          2.   The Secretariat shall prepare a study on any matter as the 
          Council may request.  The Secretariat shall prepare any such 
          study in accordance with terms of reference established by the 
          Council, and may 
 
               (a)  consider any relevant information; 
 
 
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               (b)  where it does not have specific expertise in the 
                    matter, engage one or more independent experts of 
                    recognized experience; and 
 
               (c)  include proposals on the matter. 
 
          3.   The Secretariat shall submit a draft of any report or study 
          that it prepares pursuant to paragraph 1 or 2 to the Council.  If 
          the Council considers that a report or study is materially 
          inaccurate or otherwise deficient, the Council may remand it to 
          the Secretariat for reconsideration or other disposition. 
 
          4.   Secretariat reports and studies shall be made public 45 days 
          after their approval by the Council, unless the Council otherwise 
          decides.   
 
 
          Section C:     National Administrative Offices 
 
          Article 15:    National Administrative Office Structure 
 
          1.   Each Party shall establish a National Administrative Office 
          (NAO) at the federal government level and notify the Secretariat 
          and the other Parties of its location.  
 
          2.   Each Party shall designate a Secretary for its NAO, who 
          shall be responsible for its administration and management.  
 
          3.   Each Party shall be responsible for the operation and costs 
          of its NAO.  
 
 
          Article 16:    NAO Functions 
 
          1.   Each NAO shall serve as a point of contact with: 
 
               (a)  governmental agencies of that Party; 
 
               (b)  NAOs of the other Parties; and 
 
               (c)  the Secretariat. 
 
          2.   Each NAO shall promptly provide publicly available 
          information requested by: 
 
               (a)  the Secretariat for reports under Article 14(1); 
 
               (b)  the Secretariat for studies under Article 14(2);  
 
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               (c)  a NAO of another Party; and 
 
               (d)  an ECE. 
 
          3.   Each NAO shall provide for the submission and receipt, and 
          periodically publish a list, of public communications on labor 
          law matters arising in the territory of another Party.  Each NAO 
          shall review such matters, as appropriate, in accordance with 
          domestic procedures. 
 
 
          Section D:     National Committees 
 
          Article 17:    National Advisory Committee 
 
               Each Party may convene a national advisory committee, 
          comprising members of its public, including representatives of 
          its labor and business organizations and other persons, to advise 
          it on the implementation and further elaboration of this 
          Agreement. 
 
 
          Article 18:    Governmental Committee 
 
               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 E:     Official Languages 
 
          Article 19:    Official Languages 
 
               The official languages of the Commission shall be English, 
          French and Spanish.  The Council shall establish rules and 
          procedures regarding interpretation and translation. 
 
 
 
 
 
 
 
 
 
 
 
 
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                                      PART FOUR 
 
                      COOPERATIVE CONSULTATIONS AND EVALUATIONS 
 
          Article 20:    Cooperation 
 
               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.   
 
 
          Section A:     Cooperative Consultations 
 
          Article 21:    Consultations between NAOs 
 
          1.   A NAO may request consultations, to be conducted in 
          accordance with the procedures set out in paragraph 2, with 
          another NAO in relation to the other Party's labor law, its 
          administration, or labor market conditions in its territory.  The 
          requesting NAO shall notify the NAOs of the other Parties and the 
          Secretariat of its request. 
 
          2.   In such consultations, the requested NAO shall promptly 
          provide such publicly available data or information, including: 
 
               (a)  descriptions of its laws, regulations, procedures, 
                    policies or practices, 
 
               (b)  proposed changes to such procedures, policies or 
                    practices, and 
 
               (c)  such clarifications and explanations related to such 
                    matters, 
 
          as may assist the consulting NAOs to better understand and 
          respond to the issues raised. 
 
          3.   Any other NAO shall be entitled to participate in the 
          consultations on notice to the other NAOs and the Secretariat. 
 
 
          Article 22:    Ministerial Consultations 
 
          1.   Any Party may request in writing consultations with another 
          Party at the ministerial level regarding any matter within the 
          scope of this Agreement.  The requesting Party shall provide 
          specific and sufficient information to allow the requested Party 
 
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          to respond. 
 
          2.   The requesting Party shall promptly notify the other Parties 
          of the request.  A third Party that considers it has a 
          substantial interest in the matter shall be entitled to 
          participate in the consultations on notice to the other Parties. 
 
          3.   The consulting Parties shall make every attempt to resolve 
          the matter through consultations under this Article, including 
          through the exchange of sufficient publicly available information 
          to enable a full examination of the matter. 
 
 
 
          Section B:     Evaluations 
 
          Article 23:    Evaluation Committee of Experts 
 
          1.   If a matter has not been resolved after ministerial 
          consultations pursuant to Article 22, any consulting Party may 
          request in writing the establishment of an Evaluation Committee 
          of Experts (ECE).  The requesting Party shall deliver the request 
          to the other Parties and to the Secretariat.  Subject to 
          paragraphs 3 and 4, the Council shall establish an ECE on 
          delivery of the request. 
 
          2.   The ECE shall analyze, in the light of the objectives of 
          this Agreement and in a non-adversarial manner, patterns of 
          practice by each Party in the enforcement of its occupational 
          safety and health or other technical labor standards as they 
          apply to the particular matter considered by the Parties under 
          Article 22.  
 
          3.   No ECE may be convened if a Party obtains a ruling under 
          Annex 23 that the matter: 
 
               (a)  is not trade-related; or 
 
               (b)  is not covered by mutually recognized labor laws. 
 
          4.   No ECE may be convened regarding any matter that was 
          previously the subject of an ECE report in the absence of such 
          new information as would warrant a further report. 
 
 
          Article 24:    Rules of Procedure 
 
          1.   The Council shall establish rules of procedure for ECEs, 
 
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          which shall apply unless the Council otherwise decides.  The 
          rules of procedure shall provide that: 
 
               (a)  an ECE shall normally comprise three members; 
 
               (b)  the chair shall be selected by the Council from a 
                    roster of experts developed in consultation with the 
                    ILO pursuant to Article 45 and, where possible, other 
                    members shall be selected from a roster developed by 
                    the Parties; 
 
               (c)  ECE members shall 
 
                    (i)  have expertise or experience in labor matters or 
                         other appropriate disciplines, 
 
                    (ii) be chosen strictly on the basis of objectivity, 
                         reliability and sound judgment, 
 
                    (iii)     be independent of, and not be affiliated with 
                              or take instructions from, any Party or the 
                              Secretariat, and 
 
                    (iv) comply with a code of conduct to be established by 
                         the Council; 
 
               (d)  an ECE may invite written submissions from the Parties 
                    and the public; 
 
               (e)  an ECE may consider, in preparing its report, any 
                    information provided by  
 
                    (i)  the Secretariat, 
 
                    (ii) the NAO of each Party, 
 
                    (iii)     organizations, institutions and persons with 
                              relevant expertise, and 
 
                    (iv) the public; and 
 
               (f)  each Party shall have a reasonable opportunity to 
                    review and comment on information that the ECE receives 
                    and to make written submissions to the ECE. 
 
          2.   The Secretariat and the NAOs shall provide appropriate 
          administrative assistance to an ECE, in accordance with the rules 
          of procedure established by the Council under paragraph 1. 
 
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          Article 25:    Draft Evaluation Reports 
 
          1.   Within 120 days after it is established, or such other 
          period as the Council may decide, the ECE shall present a draft 
          report for consideration by the Council, which shall contain: 
 
               (a)  a comparative assessment of the matter under 
                    consideration; 
 
               (b)  its conclusions; and 
 
               (c)  where appropriate, practical recommendations that may 
                    assist the Parties in respect of the matter. 
 
          2.   Each Party may submit written views to the ECE on its draft 
          report.  The ECE shall take such views into account in preparing 
          its final report. 
 
 
          Article 26:    Final Evaluation Reports 
 
          1.   The ECE shall present a final report to the Council within 
          60 days after presentation of the draft report, unless the 
          Council otherwise decides. 
 
          2.   The final report shall be published within 30 days after its 
          presentation to the Council, unless the Council otherwise 
          decides. 
 
          3.   The Parties shall provide to each other and the Secretariat 
          written responses to the recommendations contained in the ECE 
          report within 90 days of its publication.  
 
          4.   The final report and such written responses shall be tabled 
          for consideration at the next regular session of the Council.  
          The Council may keep the matter under review. 
 
 
 
                                      PART FIVE 
 
                                RESOLUTION OF DISPUTES 
 
 
          Article 27:    Consultations 
 
          1.   Following presentation to the Council under Article 26(1) of 
 
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          an ECE final report that addresses the enforcement of a Party's 
          occupational safety and health, child labor or minimum wage 
          technical labor standards, 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 such standards in respect of the general 
          subject matter addressed in the report. 
 
          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 28:    Initiation of Procedures 
 
          1.   If the consulting Parties fail to resolve the matter 
          pursuant to Article 27 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, 
 
               (b)  have recourse to good offices, conciliation, mediation 
                    or such other dispute resolution procedures, or 
 
               (c)  make recommendations,  
 
 
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          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 29:    Request for an Arbitral Panel 
 
          1.   If the matter has not been resolved within 60 days after the 
          Council has convened pursuant to Article 28, 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 occupational safety 
          and health, child labor or minimum wage technical labor standards 
          is: 
 
               (a)  trade-related; and 
 
               (b)  covered by mutually recognized labor laws. 
 
          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. 
 
 
          Article 30:    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: 
 
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               (a)  have expertise or experience in labor 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 or the Secretariat; and 
 
               (d)  comply with a code of conduct to be established by the 
                    Council. 
 
 
          Article 31:    Qualifications of Panelists 
 
          1.   All panelists shall meet the qualifications set out in 
          Article 30. 
 
          2.   Individuals may not serve as panelists for a dispute where: 
 
               (a)  they have participated pursuant to Article 28(4) or 
                    participated as members of an ECE that addressed the 
                    matter; or 
 
               (b)  they have, or a person or organization with which they 
                    are affiliated has, an interest in the matter, as set 
                    out in the code of conduct established under Article 
                    30(2)(d). 
 
 
          Article 32:    Panel Selection 
 
          1.   Where there are 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 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 
 
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                    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. 
 
          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. 
 
 
          Article 33:    Rules of Procedure 
 
          1.   The Council shall establish Model Rules of Procedure.  The 
 
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          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 occupational 
               safety and health, child labor or minimum wage technical 
               labor standards, and to make findings, determinations and 
               recommendations in accordance with Article 36(2)."  
 
 
          Article 34:    Third Party Participation 
 
               A Party that is not a disputing Party, on delivery of a 
          written notice to the disputing Parties and 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 35:    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.   
 
 
          Article 36:    Initial Report 
 
          1.   Unless the disputing Parties otherwise agree, the panel 
 
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          shall base its report on the submissions and arguments of the 
          disputing Parties and on any information before it pursuant to 
          Article 35.  
 
          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 occupational safety 
                    and health, child labor or minimum wage technical labor 
                    standards in a matter that is trade-related and covered 
                    by mutually recognized labor laws, 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 37:    Final Report 
 
          1.   The panel shall present to the disputing Parties a final 
          report, including any separate opinions on matters not 
 
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          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 38:    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 occupational safety and 
          health, child labor or minimum wage technical labor standards, 
          the disputing Parties may agree on a mutually satisfactory action 
          plan, which normally shall conform with the  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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          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 39:    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 occupational safety and 
          health, child labor or minimum wage technical labor standards, 
          and:  
 
               (a)  the disputing Parties have not agreed on an action plan 
                    under Article 38 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 38,  
 
                    (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. 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 38,  
 
 
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               (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 39,  
 
          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: 
 
               (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 39,  
 
          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. 
 
 
 
 
 
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          Article 40:    Further Proceeding 
 
               A complaining Party may, at any time beginning 180 days 
          after a panel determination under Article 39(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 41:    Suspension of Benefits 
 
          1.   Subject to Annex 41A, where a Party fails to pay a monetary 
          enforcement assessment within 180 days after it is imposed by a 
          panel: 
 
               (a)  under Article 39(4)(b), or  
 
               (b)  under Article 39(5)(b), except where benefits may be 
                    suspended under paragraph 2(a),  
 
          any complaining Party or Parties may suspend, in accordance with 
          Annex 41B, the application to the Party complained against of 
          NAFTA benefits in an amount no greater than that sufficient to 
          collect the monetary enforcement assessment.   
 
          2.   Subject to Annex 41A, where a panel has made a determination 
          under Article 39(5)(b) and the panel: 
 
               (a)  has previously imposed a monetary enforcement 
                    assessment under Article  39(4)(b) or established an 
                    action plan under Article 39(4)(a)(ii), or 
 
               (b)  has subsequently determined under Article 40 that a 
                    Party is not fully implementing an action plan, 
 
          the complaining Party or Parties may, in accordance with Annex 
          41B, 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 39(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.  
 
 
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          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 
 
 
          Article 42:    Enforcement Principle 
 
               Nothing in this Agreement shall be construed to empower a 
          Party's authorities to undertake labor law enforcement activities 
          in the territory of another Party. 
 
 
          Article 43:    Private Rights 
 
               No Party may provide for a right of action under its 
          domestic law against any other Party on the ground that another 
          Party has acted in a manner inconsistent with this Agreement. 
 
 
          Article 44:    Protection of Information  
 
          1.   If a Party provides confidential or proprietary information 
          to another Party, including its NAO, the Council or the 
          Secretariat, the recipient shall treat the information on the 
          same basis as the Party providing the information. 
 
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          2.   Confidential or proprietary information provided by a Party 
          to an ECE or a panel under this Agreement shall be treated in 
          accordance with the rules of procedure established under Articles 
          24 and 33.  
 
 
          Article 45:    Cooperation with the ILO 
 
               The Parties shall seek to establish cooperative arrangements 
          with the ILO to enable the Council and Parties to draw on the 
          expertise and experience of the ILO for purposes of implementing 
          Article 24(1). 
 
 
 
          Article 46:    Extent of Obligations 
 
               Annex 46 applies to the Parties specified in that Annex. 
 
 
          Article 47:    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 48:    Privileges and Immunities 
 
               The Executive Director and staff of the Secretariat shall 
          enjoy in the territory of each of the Parties such privileges and 
          immunities as are necessary for the exercise of their functions.  
 
 
 
          Article 49:    Definitions 
 
          1.   For purposes of this Agreement: 
 
          A Party has not failed to "effectively enforce its occupational 
          safety and health, child labor or minimum wage technical labor 
          standards" or comply with Article 3(1) in a particular case where 
          the action or inaction by agencies or officials of that Party: 
 
               (a)  reflects a reasonable exercise of the agency's or the 
                    official's discretion with respect to investigatory, 
 
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                    prosecutorial, regulatory or compliance matters; or 
 
               (b)  results from bona fide decisions to allocate resources 
                    to enforcement in respect of other labor matters 
                    determined to have higher priorities; 
 
          "labor law" means laws and regulations, or provisions thereof, 
          that are directly related to: 
 
               (a)  freedom of association and protection of the right to 
                    organize; 
 
               (b)  the right to bargain collectively; 
 
               (c)  the right to strike; 
 
               (d)  prohibition of forced labor; 
 
               (e)  labor protections for children and young persons; 
 
               (f)  minimum employment standards, such as minimum wages and 
                    overtime pay, covering wage earners, including those 
                    not covered by collective agreements; 
 
               (g)  elimination of employment discrimination on the basis 
                    of grounds such as race, religion, age, sex, or other 
                    grounds as determined by each Party's domestic laws; 
 
               (h)  equal pay for men and women; 
 
               (i)  prevention of occupational injuries and illnesses; 
 
               (j)  compensation in cases of occupational injuries and 
                    illnesses; 
 
               (k)  protection of migrant workers; 
 
          "mutually recognized labor laws" means laws of both a requesting 
          Party and the Party whose laws were the subject of ministerial 
          consultations under Article 22 that address the same general 
          subject matter in a manner that provides enforceable rights, 
          protections or standards; 
 
          "pattern of practice" means a course of action or inaction 
          beginning after the date of entry into force of the Agreement, 
          and does not include a single instance or case; 
 
          "persistent pattern" means a sustained or recurring pattern of 
 
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          practice; 
 
          "province" means a province of Canada, and includes the Yukon 
          Territory and the Northwest Territories and their successors; 
 
          "publicly available information" means information to which the 
          public has a legal right under the statutory laws of the Party;  
 
          "technical labor standards" means laws and regulations, or 
          specific provisions thereof, that are directly related to 
          subparagraphs (d) through (k) of the definition of labor law.  
          For greater certainty and consistent with the provisions of this 
          Agreement, the setting of all standards and levels in respect of 
          minimum wages and labor protections for children and young 
          persons by each Party shall not be subject to obligations under 
          this Agreement.  Each Party's obligations under this Agreement 
          pertain to enforcing the level of the general minimum wage and 
          child labor age limits established by that Party; 
 
          "territory" means for a Party the territory of that Party as set 
          out in Annex 49; and 
 
          "trade-related" means related 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 whose labor 
                    law was the subject of ministerial consultations under 
                    Article 22, with goods or services produced or provided 
                    by persons of another Party. 
 
 
 
                                      PART SEVEN 
 
                                   FINAL PROVISIONS 
 
 
          Article 50:    Annexes 
 
               The Annexes to this Agreement constitute an integral part of 
          the Agreement.   
 
 
 
 
 
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          Article 51:     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 52:    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 53:    Accession 
 
               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 54:    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 55:    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 1  
 
                                   LABOR PRINCIPLES 
 
               The following are guiding principles that the Parties are 
          committed to promote, subject to each Party's domestic law, but 
          do not establish common minimum standards for their domestic law.  
          They indicate broad areas of concern where the Parties have 
          developed, each in its own way, laws, regulations, procedures and 
          practices that protect the rights and interests of their 
          respective workforces. 
 
 
          1.   Freedom of association and protection of the right to 
          organize 
 
               The right of workers exercised freely and without impediment 
          to establish and join organizations of their own choosing to 
          further and defend their interests. 
 
 
          2.   The right to bargain collectively 
 
               The protection of the right of organized workers to freely 
          engage in collective bargaining on matters concerning the terms 
          and conditions of employment. 
 
 
          3.   The right to strike 
 
               The protection of the right of workers to strike in order to 
          defend their collective interests. 
 
 
          4.   Prohibition of forced labor 
 
               The prohibition and suppression of all forms of forced or 
          compulsory labor, except for types of compulsory work generally 
          considered acceptable by the Parties, such as compulsory military 
          service, certain civic obligations, prison labor not for private 
          purposes and work exacted in cases of emergency. 
 
 
 
 
 
 
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          5.   Labor protections for children and young persons 
 
               The establishment of restrictions on the employment of 
          children and young persons that may vary taking into 
          consideration relevant factors likely to jeopardize the full 
          physical, mental and moral development of young persons, 
          including schooling and safety requirements. 
 
 
          6.   Minimum employment standards 
 
               The establishment of minimum employment standards, such as 
          minimum wages and overtime pay, for wage earners, including those 
          not covered by collective agreements. 
 
 
          7.   Elimination of employment discrimination 
 
               Elimination of employment discrimination on such grounds as 
          race, religion, age, sex or other grounds, subject to certain 
          reasonable exceptions, such as, where applicable, bona fide 
          occupational requirements or qualifications and established 
          practices or rules governing retirement ages, and special 
          measures of protection or assistance for particular groups 
          designed to take into account the effects of discrimination. 
 
 
          8.   Equal pay for women and men 
 
               Equal wages for women and men by applying the principle of 
          equal pay for equal work in the same establishment. 
 
 
          9.   Prevention of occupational injuries and illnesses 
 
               Prescribing and implementing standards to minimize the 
          causes of occupational injuries and illnesses. 
 
 
          10.  Compensation in cases of occupational injuries and illnesses 
 
               The establishment of a system providing benefits and 
          compensation to workers or their dependents in cases of 
          occupational injuries, accidents or fatalities arising out of, 
          linked with or occurring in the course of employment. 
 
 
 
 
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          11.  Protection of migrant workers 
 
               Providing migrant workers in a Party's territory with the 
          same legal protection as the Party's nationals in respect of 
          working conditions. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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                                       ANNEX 23 
 
                                 INTERPRETIVE RULING 
 
          1.   Where a Party has requested the Council to convene an ECE, 
          the Council shall, on the written request of any other Party, 
          select an independent expert to make a ruling concerning whether 
          the matter is: 
 
               (a)  trade-related; or 
 
               (b)  covered by mutually recognized labor laws. 
 
          2.   The Council shall establish rules of procedure for the 
          selection of the expert and for submissions by the Parties.  
          Unless the Council decides otherwise, the expert shall present a 
          ruling within 15 days after the expert is selected. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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                                       ANNEX 39 
 
                           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 occupational safety and health, child labor or 
                    minimum wage technical labor standards; 
 
               (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 labor law enforcement in the Party complained against, 
          consistent with its law. 
 
 
 
 
 
 
 
 
 
 
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                                      ANNEX 41A 
 
                     CANADIAN DOMESTIC ENFORCEMENT AND COLLECTION 
 
 
          1.   For the purposes of this Annex, "panel determination" means: 
 
               (a)  a determination by a panel under Article 39(4)(b) or 
                    5(b) that provides that Canada shall pay a monetary 
                    enforcement assessment; and 
 
               (b)  a determination by a panel under Article 39(5)(b) that 
                    provides that Canada shall fully implement an action 
                    plan where the panel: 
 
                    (i)  has previously established an action plan under 
                         Article 39(4)(a)(ii) or imposed a monetary 
                         enforcement assessment under Article 39(4)(b); or 
 
                    (ii) has subsequently determined under Article 40 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 46; 
 
               (e)  proceedings to enforce a panel determination that has 
                    been made an order of the court shall be conducted by 
                    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 41 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 41B 
 
                                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 41(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 occupational safety and health, child labor 
                    or minimum wage technical labor standards; 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 46 
 
                                EXTENT OF OBLIGATIONS 
 
          1.   On the date of signature of this Agreement, or of the 
          exchange of written notifications under Article 51, 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.   Unless a communication relates to a matter that would be 
          under federal jurisdiction if it were to arise within the 
          territory of Canada, the Canadian NAO shall identify the province 
          of residence or establishment of the author of any communication 
          regarding the labor law of another Party that it forwards to the 
          NAO of another Party.  That NAO may choose not to respond if that 
          province is not included in the declaration made under paragraph 
          1. 
 
          3.   Canada may not request consultations under Article 22, the 
          establishment of an Evaluation Committee of Experts under Article 
          23, consultations under Article 27, the initiation of procedures 
          under Article 28 or the establishment of a panel or join as a 
          complaining Party under Article 29 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 consultations under Article 22, the 
          establishment of an Evaluation Committee of Experts under Article 
          23, consultations under Article 27, the initiation of procedures 
          under Article 28 or the establishment of a panel or join as a 
          complaining Party under Article 29, 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 federal government and the provinces included in 
                    the declaration account for at least 35 percent of 
                    Canada's labor force for the most recent year in which 
 
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                    data are available, and 
 
               (c)  where the matter concerns a specific industry or 
                    sector, at least 55 percent of the workers concerned 
                    are employed in provinces included in Canada's 
                    declaration under paragraph 1. 
 
          5.   No other Party may request consultations under Article 22, 
          the establishment of an Evaluation Committee of Experts under 
          Article 23, consultations under Article 27, the initiation of 
          procedures under Article 28 or the establishment of a panel or 
          join as a complaining Party under Article 29, concerning a matter 
          related to a labor 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 29 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 39(4) or (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 the 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 49 
 
                             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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