Title:Understanding between the parties of NAFTA -- Chap Eight
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:5880


 
 
 
 
 
          For Official Use Only              U.S. Draft              Page 1     
 
                              UNDERSTANDING BETWEEN THE 
                  PARTIES TO THE NORTH AMERICAN FREE TRADE AGREEMENT 
                                      CONCERNING 
                           CHAPTER EIGHT - EMERGENCY ACTION 
 
 
 
          Article 1  Objectives 
 
               The  objectives  of  this  Understanding  are  to  establish 
          additional  procedures to facilitate the effective use of Chapter 
          Eight of the North American Free Trade Agreement (NAFTA). 
 
          Article 2   Working Group on Emergency Action 
 
               A.   The   Parties  hereby  establish  a  Working  Group  on 
                    Emergency Action comprising one representative of  each 
                    Party to the NAFTA.   The Working Group shall be deemed 
                    to  be  a  working  group  established   under  Article 
                    2001(2)(d) of the NAFTA. 
 
               B.   The  Working Group  shall  report  to  the  Free  Trade 
                    Commission  established under  the NAFTA, and  shall be 
                    subject to the supervision of the Commission. 
 
               C.   The NAFTA  Secretariat shall provide  technical support 
                    to the Working Group. 
 
               D.   The  Working Group shall meet at least annually, unless 
                    the  Parties otherwise  agree, and  on  request of  any 
                    Party. 
 
               E.   The Working  Group may call  on the assistance  of such 
                    experts and advisers as it deems appropriate. 
 
               F.   All decisions  of the Working  Group shall be  taken by 
               consensus, except  as otherwise  agreed or  provided for  in 
               this Understanding. 
 
          Article 3  Functions of the Working Group 
 
               A.   The Working Group  shall consider any issue  related to 
                    recourse to Chapter  Eight of  the NAFTA  and may  make 
                    recommendations to the Commission. 
 
               B.   The  Working  Group  shall  consider  any  recourse  to 
                    Article XIX  of the  General Agreement  on Tariffs  and 
                    Trade by any Party to the NAFTA, and, at the request of 
                    any  Party,  may  serve as  a  forum  for consultations 
                    before or during any such use of Article XIX.  
 
 
 
 
 
 
  
 
 
 
 
 
          For Official Use Only              U.S. Draft              Page 2   
 
               C.   The Parties  may consult  in the  Working Group on  the 
                    request of a Party where a Party considers that: 
 
                    1.   in  accordance with  Article  801  or  802,  goods 
                         originating in the territory of another  Party are 
                         being imported in such  increased quantities as to 
                         constitute a substantial  cause of, or  contribute 
                         importantly to, serious injury, or threat thereof, 
                         to  its  domestic industry,  as  evidenced by  the 
                         factors  set out in  Annex 803.3(9) of  the NAFTA, 
                         including trade, productivity, and employment; or 
 
                    2.   another Party is contemplating  having recourse to 
                         Chapter Eight. 
 
                    Any consultations under this paragraph shall be without 
                    prejudice as to whether any subsequent emergency action 
                    proceeding is consistent with the NAFTA. 
 
               D.   The  Parties   may  agree   that  consultations   under 
                    paragraph  C   shall  constitute   consultations  under 
                    Article 801(2) or 802(5) of the NAFTA.   
 
               E.   Subject  to the rights  and obligations of  the Parties 
                    under the NAFTA,  the Working  Group shall  serve as  a 
                    forum for  examining, at the  request of any  Party and 
                    with the agreement of two-thirds of the Parties, trade, 
                    productivity,  employment  and other  economic  factors 
                    with   respect  to   any  good,   provided  that   such 
                    discussions  shall  not serve  as  a justification  for 
                    restricting  or   prohibiting  trade   in  any   manner 
                    inconsistent with Chapter Eight.   
 
               F.   The  Working  Group  may make  recommendations  to  the 
                    Commission for any improvements to Chapter Eight of the 
                    NAFTA  that   the  Working  Group   deems  appropriate, 
                    consistent with the objectives of the NAFTA and of this 
                    Understanding. 
 
          Article 4  Definitions 
 
               Unless otherwise specified, all terms of this  Understanding 
          shall have the meaning assigned to them in the NAFTA.  
