Chapter Seven

Agriculture

Article 701: Scope

1. This Chapter applies to trade in agricultural goods and to

sanitary and phytosanitary measures.

Subchapter A - Market access

Article 702: Scope

1. Further to Article 102 (Objectives), the provisions of this

Subchapter address import barriers, domestic support, export

subsidies, and grading and marketing standards and measures that

affect trade of agricultural goods between the Parties.

2. To the extent of any inconsistency in this Agreement with

the provisions of this Subchapter, this Subchapter shall prevail.

Article 703: International obligations

1. Each Party shall comply with Annex 703.1 with respect to its

agricultural trade under other international agreements, to the

extent set out in that Annex.

2. When a Party desires to adopt a measure pursuant to any

international commodity agreement with respect to an agricultural

good, it shall consult with the other Parties in order to avoid

nullification or impairment of a concession granted by such Party

in its Schedule set out in Annex 302.2.

3. Each Party shall comply with Annex 703.3 with respect to

actions taken pursuant to any international coffee agreement.

Article 704: Market Access

General Provisions

1. In order to facilitate trade in agricultural goods, the

Parties shall work together to improve access to their respective

markets through the reduction or elimination of import barriers.

Tariffs and Quantitative Restrictions

2. Each Party shall comply with Annex 704.2 with respect to

tariffs and quantitative restrictions, including GATT market

access requirements and trade in sugar.

Agricultural Grading and Marketing Standards

3. Each Party shall comply with Annex 704.3 with respect to

agricultural grading and marketing standards.

Special Safeguard Provisions

4. Each Party may, during the applicable period of transition,

adopt or maintain special safeguards in the form of tariff quotas

on specific agricultural goods, as specified in its Schedule set

out in Annex 302.2, and further described in Annex 704.4.

5. A Party may not apply, at the same time, measures under

paragraph 4 and Chapter 8 (Emergency Action) with respect to the

same agricultural good.

Article 705: Domestic Support

The Parties recognize that domestic support measures can be

of crucial importance to their agricultural sectors but may also

have trade distorting effects and effects on production. The

Parties further recognize that domestic support commitments may

result from the agriculture negotiations in the Uruguay Round of

multilateral trade negotiations under the GATT. Accordingly, to

the extent a Party decides to support its agricultural producers,

such Party should endeavor to move toward domestic support

policies that:

(a) have minimal or no trade distortion effects or effects

on production; or

(b) are exempt from domestic support reduction commitments

under the GATT.

The Parties further recognize that the domestic support

mechanisms of each Party, including those that are subject to

reduction commitments, may be changed at the Party's discretion

so long as such change is in compliance with its GATT rights and

obligations.

Article 706: Export Subsidies

1. The Parties recognize that export subsidies may have serious

prejudicial effects on importing and exporting Parties, and the

Parties share the objective of achieving the multilateral

elimination of export subsidies for agricultural goods. The

Parties shall cooperate in an effort to achieve an agreement in

the General Agreement on Tariffs and Trade which eliminates

export subsidies on agricultural goods.

2. The Parties also recognize that export subsidies may cause

disruption in the market of an importing Party. Accordingly, the

Parties affirm that it is inappropriate for a Party to provide

export subsidies for the export of an agricultural good to the

territory of another Party when there are no other subsidized

imports of that good into that other Party.

3. Except as provided in Annex 703.1, where an exporting Party

considers that a non-Party is exporting an agricultural good into

the territory of another Party with the benefit of export

subsidies, the exporting Party may request consultations with the

importing Party with a view toward agreeing on measures that the

importing Party could adopt to counter the effect of such

subsidized imports. If the importing Party adopts the

agreed-upon measures, the exporting Party shall refrain from

applying, or immediately cease to apply, any export subsidy to

exports of such good into the territory of the importing Party.

4. Except as provided in Annex 703.1, a Party proposing to

introduce an export subsidy on exports of an agricultural good to

the territory of another Party shall notify such Party at least

three days in advance, and shall upon request consult with such

Party, within 72 hours of receipt of the request, with a view to

eliminating the subsidy or minimizing any adverse impact on the

importing Party's market for that good. Another Party may

request to join such consultations.

5. Each Party shall take into account the interests of the

other Parties in the use of any export subsidy on an agricultural

good exported to a Party or non-Party, recognizing that such

subsidies may have prejudicial effects on the interests of the

other Parties.

6. The Parties shall establish a Working Group on Agricultural

Subsidies which shall meet at least semi-annually, or at such

other times as the Parties may agree, to work toward elimination

of all export subsidies in connection with trade in agricultural

goods between the Parties. The functions of the Working Group on

Agricultural Subsidies shall include:

(a) monitoring the volume and price of imports of

agricultural goods that have benefitted from export

subsidies into the territory of any Party;

(b) providing a forum for the Parties to develop mutually

acceptable criteria and procedures for reaching

agreement on the limitation or elimination of the

provision of export subsidies in connection with

importation of agricultural goods into the territories

of the Parties; and

(c) reporting annually to the Committee on Agricultural

Trade, established under Article 708, with respect to

implementation of this Article.

7. Notwithstanding any other provision of this Article:

(a) if the Parties agree to a particular export subsidy

measure on an agricultural good for export to the

territory of a Party, the exporting Party may adopt or

maintain such measure; and

(b) each Party shall retain its rights to apply

countervailing duties to subsidized imports from any

source.

Article 707: Resolution of Private Commercial Disputes

Regarding Transactions in Agricultural Goods

The advisory committee established pursuant to Article

2022(4) shall work toward a system for resolving private

commercial disputes that arise in connection with transactions in

agricultural goods. The system of each Party shall be designed

to achieve prompt and effective resolution of such disputes with

attention to special circumstances, including the perishability

of the goods involved.

Article 708: Committee on Agricultural Trade

1. The Parties hereby establish a Committee on Agricultural

Trade, comprising representatives of each Party.

2. The Committee's functions shall include:

(a) monitoring and promoting cooperation on the

implementation and administration of this Subchapter;

(b) providing a forum for the Parties to consult at least

semi-annually and at such other times as the Parties

may agree on issues related to this Subchapter; and

(c) reporting annually to the Commission on the

implementation of this Subchapter.

Article 709: Definitions

For purposes of this Subchapter:

agricultural goods means:

(i) HS Chapters 1 to 24 less fish and fish products, plus

(ii) HS Code 29.05.43 (manitol)

HS Code 29.05.44 (sorbitol)

HS Heading 33.01 (essential

oils)

HS Headings 35.01 to 35.05 (albuminoidal

substances, modified

starches, glues)

HS Code 38.09.10 (finishing agents)

HS Code 38.23.60 (sorbitol n.e.p.)

HS Headings 41.01 to 41.03 (hides and skins)

HS Heading 43.01 (raw furskins)

HS Headings 50.01 to 50.03 (raw silk and silk waste)

HS Headings 51.01 to 51.03 (wool and animal hair)

HS Headings 52.01 to 52.03 (raw cotton, waste and cotton carded or

combed)

HS Heading 53.01 (raw flax)

HS Heading 53.02 (raw hemp);

fish and fish products for purposes of the definition of

agricultural goods means fish or crustaceans, molluscs or other

aquatic invertebrates, marine mammals, and their products within

the following headings of the Harmonized System:

HS Heading 05.07 (tortoise-shell, whalebone and

whalebone hair and those fish or

crustaceans, molluscs or other

aquatic invertebrates, marine mammals, and

their products within this heading)

HS Heading 05.08 (all goods (coral and similar materials))

HS Heading 05.09 (all goods (natural sponges of animal origin))

HS Heading 05.11 (products of fish or crustaceans,molluscs or other

aquatic invertebrates; dead animals of Chapter 3)

HS Heading 15.04 (all goods (fats and oils and their fractions, of

fish or marine mammals))

HS Heading 16.03 ("non-meat" extracts and juices)

HS Heading 16.04 (all goods (prepared or preserved fish))

HS Heading 16.05 (all goods (prepared preserved crustaceans,

molluscs and other aquatic invertebrates));

net production surplus means the quantity by which a Party's

domestic production of sugar exceeds its total consumption of

sugar for a marketing year;

net surplus producer means that a Party has been determined to

have a net production surplus in accordance with Schedule

704.2(I)(B)(3);

plantation white sugar means crystalline sugar which has not been

refined and is intended for human consumption without further

processing or refining;

raw value means the equivalent of a quantity of sugar in terms of

raw sugar testing 96 degrees by the polariscope, determined as

follows:

(a) the raw value of plantation white sugar equals the

number of kilograms thereof multiplied by 1.03;

(b) the raw value of liquid sugar and invert sugar equals

the number of kilograms of the total sugars thereof

multiplied by 1.07; and

(c) the raw value of other imported sugar and syrup goods

equals the number of kilograms thereof multiplied by

the greater of 0.93, or 1.07 less 0.0175 for each

degree of polarization under 100 degrees (and fractions

of a degree in proportion);

sugar means raw or refined sugar derived directly or indirectly

from sugar cane or sugar beets, including liquid refined sugar;

and

sugar and syrup goods means "sugar and syrup goods" as defined in

Annex 709.

ANNEX 703.1

Incorporation of Trade Provisions

1. Articles 701.1, 701.2, 701.3, 701.5, 702, 704, 705, 706,

707, 708.1, 708.4 710 and 711 [subject to review] of the Canada -

U.S. Free Trade Agreement shall apply to trade in "agricultural

goods", as that term is defined in Article 711 of that Agreement,

between Canada and the United States, which Articles are hereby

incorporated into and made a part of this Agreement for such

purpose.

2. For purposes of this incorporation, any reference to Chapter

18 of the Canada - U.S. Free Trade Agreement shall be deemed to

be a reference to Chapter 20 of this Agreement.

ANNEX 703.3

International Coffee Agreement

Neither Canada nor Mexico shall take actions pursuant to any

international coffee agreement and measures authorized thereunder

to restrict trade in coffee between them.

ANNEX 704.2

Market Access

Each Party shall comply with Sections I and II.

Section I

Mexico and the United States

1. This Section shall apply only between the United States and

Mexico.

2. Each Party shall comply with Appendices A and B.

Appendix A

Tariffs, Quantitative Restrictions and GATT Market Access

1. The Parties recognize that, upon the date of entry into

force of the Agreement, each Party, in accordance with the rights

and obligations set forth in Chapter 3, will not adopt or

maintain measures regarding quantitative restrictions on the

importation of agricultural goods originating in each other's

territory, but may apply tariff quotas as set forth in its

Schedule set out in Annex 302.2. The Parties further recognize

that the over-quota tariff rate applied by a Party in connection

with such tariff quotas will be progressively eliminated in the

manner set forth in its Schedule set out in Annex 302.2.

2. Each Party agrees to waive its rights under Article XI.2(c)

of the General Agreement on Tariffs and Trade with respect to any

measure taken in connection with the importation of agricultural

goods originating in the territory of the other.

3. Except as provided in paragraph 4, to the extent a tariff

applied by a Party in accordance with a tariff quota as set forth

in its Schedule set out in Annex 302.2 at any time exceeds the

applicable bound rate of duty for that agricultural good as set

forth in its GATT Schedule of Tariff Concessions as of June 12,

1991, the other Party hereby waives its rights with respect to

the applicable bound rate of duty under GATT Article II,

notwithstanding the provisions of Article 103 of this Agreement.

4. If the GATT Uruguay Round Agreement on Agriculture enters

into force with respect to a Party, pursuant to which that Party

has agreed to convert its quantitative restrictions into tariff

quotas, that Party shall ensure that the over-quota tariff rates

it applies to agricultural goods of the other Party are not

greater than the lower of (a) the applicable over-quota tariff

rates set out in its Schedule set out in Annex 302.2 or (b) the

applicable over-quota tariff rates set out in its GATT Schedule

of Tariff Concessions.

5. Market access afforded by a Party in accordance with its

Schedule set out in Annex 302.2 and applied to imports of

agricultural goods of another Party shall count, as between the

Parties, toward the satisfaction of market access commitments

which have been agreed upon under its GATT Schedule of Tariff

Concessions or which may be undertaken by the importing Party as

a result of any GATT agreement entering into force as to that

Party during the applicable transition period under this

Agreement.

6. Neither Party shall seek a voluntary restraint agreement

from the other Party with respect to the exportation of meat

originating in the territory of that other Party.

7. Notwithstanding the provisions of Chapter 3 (Market Access),

goods of subheading 2008.11 of the Harmonized System (HS) that

originate in the territory of Mexico shall be subject upon

importation into the territory of the United States to the rate

of duty provided in the Schedule set out in Annex 302.2 for the

United States only if all agricultural goods within heading 12.02

of the HS used in the production of such goods originate in the

territory of one or more of the Parties.

8. A good provided for in item 1806.10.a1 or 2106.90.a1 that

is:

(a) imported into the territory of the United States from

the territory of Mexico; or

(b) imported into the territory of Mexico from the

territory of the United States,

shall be eligible for the rate of duty provided in Annex 302.2

only if all agricultural materials provided for in subheading

1701.99 used in the production of such good are originating

materials.

9. The United States shall not adopt or maintain, with respect

to imports into its territory of agricultural goods originating

in the territory of Mexico, any fee applied pursuant to Section

22 of the Agricultural Adjustment Act of 1933, or any successor

statute.

10. Agricultural goods entered into maquiladoras or foreign-

trade zones and re-exported, including subsequent to processing,

shall not count toward the fulfillment of market access

commitments under a Party's Schedule set out in Annex 302.2.

Appendix B

Trade in Sugar

1. The United States and Mexico recognize the importance of

liberalizing trade in sugar and syrup goods while avoiding

conditions of entry that may result in displacement of the

consumption of such goods originating in the territories of the

United States and Mexico by imports from non-Parties.

Accordingly, the United States and Mexico have agreed to the

following provisions to govern trade between them in sugar and

syrup goods.

2. The over quota customs duty for imports into the territory

of the United States of sugar and syrup goods originating in the

territory of Mexico shall be reduced to zero during a period of

15 years after the date of entry into force of this Agreement as

follows:

(a) from the first to the sixth year after the date of

entry into force of this Agreement, the customs duty

shall be reduced by a total of 15 percent in equal

annual stages;

(b) from the seventh to the fifteenth year after the date

of entry into force of this Agreement, the customs duty

shall be removed entirely in equal annual stages; and

(c) after the end of the sugar transition period, the duty

on all imports of sugar and syrup goods from Mexico

shall be zero.

3. In addition to the customs duty reductions provided for

under paragraph 2, imports into the territory of the United

States of sugar and syrup goods originating in the territory of

Mexico shall be duty free for a quantity, on a marketing year

(October 1 - September 30) basis, to be determined as follows:

(a) for each upcoming marketing year in which Mexico is not

projected to be a net surplus producer, the quantity

shall be the greater of 7,258 metric tons raw value or

the quota allocated by the United States for a non-

Party within the category designated "other specified

countries and areas" under paragraph (b)(i) of

additional U.S. note 3 to chapter 17 of the Harmonized

Tariff Schedule of the United States;

(b) for each upcoming marketing year in which Mexico is

projected to be a net surplus producer of sugar, in

accordance with sub-paragraph (d), the quantity shall

be the greater of (i) the amount specified in sub-

section (a), or (ii) Mexico's projected net production

surplus, but not greater than a maximum quantity as

follows

(i) for each of the first through sixth marketing

years after the date of entry into force of this

Agreement, 25,000 metric tons raw value,

(ii) for the seventh marketing year after the date of

entry into force of this Agreement, 150,000 metric

tons raw value, and

(iii) for each of the eighth through fifteenth

marketing years after the date of entry into

force of this Agreement, 110 percent of the

previous marketing year's maximum quantity;

(c) in any year after the sixth year after the date of

entry into force of this Agreement, the quantity of

imports of sugar and syrup goods originating in the

territory of Mexico shall not be subject to the

limitations set out in subparagraph (b) if

(i) Mexico has been a net surplus producer for any two

consecutive marketing years, or

(ii) Mexico has been a net surplus producer during the

previous marketing year, and Mexico is projected

to be a net surplus producer of sugar, in

accordance with subparagraph (d), in the upcoming

marketing year, unless Mexico ultimately is not a

net surplus producer in that marketing year; and

(d) prior to the beginning of each marketing year, Mexico

shall make projections of its domestic production and

total consumption of sugar. Mexico and the United

States shall consult by July 1 of each year to jointly

determine whether Mexico is projected to be a net

surplus producer in the upcoming marketing year, in

accordance with the methodology and sources of

information set out in Schedule 704.2(I)(B)(3).

4. Mexico shall implement a tariff quota to be applied on a

Most Favored Nation basis for sugar and syrup goods with customs

duties equal to those of the United States no later than six

years after the date of entry into force of this Agreement.

Mexico shall thereafter progressively eliminate its over quota

customs duty for imports of sugar and syrup goods originating in

the territory of the United States, in identical fashion as the

reductions provided for United States customs duties in paragraph

2. Mexico shall establish the quantities of imports of sugar and

syrup goods originating in the territory of the United States

that shall be duty-free pursuant to the same procedure by which

the United States shall establish such quantities with respect to

imports of such goods originating in the territory of Mexico in

accordance with sub-paragraph 3(b). The United States shall make

projections of its domestic production and consumption, and the

United States and Mexico shall consult and make the determination

whether the United States is projected to be a net surplus

producer, on the same terms as provided for in subparagraph 3(d).

5. If the United States eliminates its tariff quota for sugar

and syrup goods imported from non-Parties, at such time the

United States shall grant to Mexico the better of the treatment,

as determined by Mexico, of:

(a) the treatment provided for in paragraph 3; or

(b) the Most-Favored-Nation treatment granted by the United

States to non-Parties.

6. The measurement of the quantity imported shall be based on

the actual weight of the imported sugar and syrup goods,

converted as appropriate to raw value, without regard to the

packaging in which the goods are imported or their presentation.

7. With respect to imports into the territory of Mexico of

sugar and syrup goods, and products containing sugar or syrup,

from the territory of the United States,

(a) Mexico shall accord preferential treatment in

accordance with this Agreement when the following

conditions apply

(i) with respect to sugar and syrup goods no benefits

under any re-export program or any like program

have been or will be granted in connection with

the export of those goods, and

(ii) with respect to products containing sugar and

syrup goods, no benefits under any re-export

program or any like program have been or will be

granted in connection with the export of those

products;

(b) the United States shall provide notification to Mexico

of any export to Mexico, within two days of such

export, for which the benefits of any re-export program

or any other like program have been or will be claimed

by the exporter; and

(c) except as provided for in paragraph 8, Mexico shall

accord Most Favored Nation treatment to all imports

from the territory of the United States of sugar and

syrup goods with respect to which benefits under any

re-export program or any like program shall have been

claimed.

8. Notwithstanding any other provision of this Article:

(a) the United States shall grant duty-free treatment to

imports of

(i) raw sugar originating in the territory of Mexico

that will be refined within the territory of the

United States and re-exported to the territory of

Mexico, and

(ii) refined sugar originating in the territory of

Mexico that has been refined from raw sugar

previously produced within, and exported from, the

territory of the United States;

(b) Mexico shall grant duty-free treatment to imports of

(i) raw sugar originating in the territory of the

United States that will be refined within the

territory of Mexico and re-exported to the

territory of the United States, and

(ii) refined sugar originating in the territory of the

United States that has been refined from raw sugar

previously produced within, and exported from, the

territory of Mexico; and

(c) imports qualifying for duty-free treatment pursuant to

subparagraphs (a) and (b) of this paragraph shall not

be subject to, or counted under, any quota of the

importing Party.

Schedule 704.2(I)(B)(3)

Net Production Surplus Determination

1. Methodology

(a) The size of a Party's net production surplus, shall be

determined in accordance with the following formula:

(i) If a net production surplus has not been projected

for any previous year, the formula shall be:

NPS = (PPy - CPy)

(ii) If a Party is projected to be a net surplus

producer and has been projected to be a net

surplus producer in a previous year, the Party's

projected net production surplus shall be

adjusted, to account for an underestimate or

overestimate, as follows:

NPS = (PPy - CPy) - ((PPys - CPys) - (PAys - CAys))

where:

NPS = Net production surplus

PP = Projected Domestic Production of

sugar

CP = Projected Total Consumption of

sugar

y = upcoming marketing year

ys = most recent previous marketing year

in which a net production surplus

was projected

PA = Actual Domestic Production of sugar

CA = Actual Total Consumption of sugar

(b) The net production surplus shall be determined in

metric tons raw value.

(c) For purpose of determining whether a Party is a net

surplus producer, imported sugar shall not be treated

as part of domestic production.

(d) The domestic production of a Party shall not include

sugar, that has been either processed or refined from

sugar beets or sugar cane grown, or sugar processed or

refined, outside of the territory of such Party.

(e) When making projections of its net production surplus,

each Party shall consider adjustments, in appropriate

circumstances, to such projections to take into account

a change in stocks for the current marketing year

exceeding an upper bound calculated in accordance with

the following formula:

where:

B = upper bound, expressed as a percentage

F = the absolute value of the change in stocks

from the beginning of the marketing year to

the end of the marketing year, expressed as a

percentage of beginning stocks and calculated

in accordance with the following formula:

Sb - Se

F = x 100

Sb

Sb = beginning stocks

Se = ending stocks

N = previous marketing year, ranging from 1

(first preceding year) to 5 (fifth preceding

year)

2. Sources of Information

(a) For Mexico, statistics on production, consumption and

stocks shall be provided by the Secretaria de

Agricultura y Recursos Hidraulicos, the Secretaria de

Comercio y Fomento Industrial, and the Secretaria de

Hacienda y Credito Publico.

(b) For the United States, statistics on production,

consumption and stocks shall be provided by the United

States Department of Agriculture (USDA).

(c) Each Party shall permit representatives from the other

Party to observe and comment on the methodology it uses

to prepare its data.

Section II

Mexico and Canada

1. This Section shall apply only between Canada and Mexico.

2. Each Party shall comply with Appendices A and B.

Appendix A

Tariffs, Quantitative Restrictions and GATT Market Access

1. Subject to the provisions of this Section, the Parties

recognize that, upon the date of entry into force of this

Agreement, each Party, in accordance with the rights and

obligations set forth in Chapter 3, will not adopt or maintain

measures regarding quantitative restrictions on the importation

of agricultural goods originating in each other's territory, but

may apply tariff quotas as set forth in its Schedule set out in

Annex 302.2. The Parties further recognize that the over-quota

tariff rate applied by a Party in connection with such tariff

quotas will be progressively eliminated in the manner set forth

in its Schedule set out in Annex 302.2.

2. Except as provided in paragraph 3, to the extent a tariff

applied by a Party in accordance with a tariff quota as set forth

in its Schedule set out in Annex 302.2 at any time exceeds the

applicable bound rate of duty for that agricultural good as set

forth in its GATT Schedule of Tariff Concessions as of June 12,

1991, the other Party hereby waives its rights with respect to

the applicable bound rate of duty under GATT Article II,

notwithstanding the provisions of Article 103.

3. If the GATT Uruguay Round Agreement on Agriculture enters

into force with respect to a Party, pursuant to which that Party

has agreed to convert its quantitative restrictions into tariff

quotas, that Party shall ensure that the over-quota tariff rates

it applies to agricultural goods of the other Party are not

greater than the lower of (a) the applicable over-quota tariff

rates set out in its Schedule set out in Annex 302.2 or (b) the

applicable over-quota tariff rates set out in its GATT Schedule

of Tariff Concessions.

4. Market access afforded by a Party in accordance with its

Schedule set out in Annex 302.2 and applied to imports of

agricultural goods of another Party shall count, as between the

Parties, toward the satisfaction of market access commitments

which have been agreed upon under its GATT Schedule of Tariff

Concessions or which may be undertaken by the importing Party as

a result of any GATT agreement entering into force as to that

Party during the applicable transition period under this

Agreement.

5. In respect of the dairy, poultry and egg goods designated in

Schedule 704.2(II)(A)(5), either Party may adopt or maintain

quantitative restrictions or tariffs consistent with its rights

and obligations under the GATT, with respect to such goods

originating in the territory of the other Party.

6. Without prejudice to the provisions of Chapter 8 of this

Agreement and paragraph 5, neither Party shall introduce,

maintain or seek any quantitative restriction or any other

measure having equivalent effect on any agricultural goods

covered under this Subchapter originating in the territory of the

other Party.

7. Subject to this Section, Canada and Mexico incorporate their

respective rights and obligations with respect to agricultural

goods under the General Agreement on Tariffs and Trade (GATT) and

agreements negotiated under the GATT, including the rights and

obligations under GATT Article XI.

8. Notwithstanding paragraph 7 and Annex 301.3(A)(1)(j), the

rights and obligations contained in Article XI:2(c)(i) of the

GATT shall apply only to dairy, poultry and egg goods of Canada

and Mexico designated in Schedule 704.2(II)(A)(5).

9. A good provided for in item 1806.10.a1 or 2106.90.a1 that

is:

(a) imported into the territory of Canada from the

territory of Mexico; or

(b) imported into the territory of Mexico from the

territory of Canada,

shall be eligible for the rate of duty provided in Annex 302.2

only if all materials provided in subheading 1701.99 used in the

production of such good are originating materials.

Schedule 704.2(II)(A)(5)

Dairy, Poultry and Egg Goods

For Canada: a dairy, poultry or egg good under one of the

following subheadings:

Note: "X" indicates that a new tariff subheading

will be established for this item

0105.11.90X Broiler chicks for domestic

production, <185G

0105.91.00 Poultry, >185g

0105.99.00 Ducks, geese, turkeys, etc, >185g

0207.10.00 Poultry not cut in pieces, fresh or chilled

0207.21.00 Poultry, not in pieces, frozen

0207.22.00 Turkey, not in pieces, frozen

0207.39.00 Poultry cuts & offal, fresh

0207.41.00 Poultry cuts & offal, frozen

0207.42.00 Turkey cuts & offal, frozen

0209.00.20 Poultry fat

0210.90.10 Poultry meat, salted, dried, etc.

0401.10.00 Milk & cream, fat <1%

0401.20.00 Milk & cream, fat > 1% < 6%

0401.30.00 Milk & cream, fat > 6%

0402.10.00 Skim milk powder

0402.21.10 Whole milk powder

0402.21.20 Whole cream powder

0402.29.10 Milk powder fat > 1.5%

0402.29.20 Cream powder fat < 1.5%

0402.91.00 Milk & cream, conc., n.s.

0402.99.00 Milk & cream, not solid, added sweetener

0403.10.00 Yogurt

0403.90.10 Powdered buttermilk

0403.90.90 Curdled milk & cream, etc.

0404.10.10 Whey powder

0404.10.90 Whey, not powdered

0404.90.00 Other

0405.00.10 Butter

0405.00.90 Fats & oils derived from milk

0406.10.00 Fresh cheese

0406.20.10 Cheddar cheese

0406.20.90 Cheeses, not cheddar

0406.30.00 Processed cheese

0406.40.00 Blue-veined cheese

0406.90.10 Cheddar cheese, not processed

0406.90.90 Cheese, not cheddar, not processed

0407.00.00 Bird's eggs, in shell

0408.11.00 Dried egg yolks

0408.19.00 Egg yolks, not dried

0408.91.00 Bird's eggs, not in shell, dried

0408.99.00 Bird's eggs, not in shell, not dried

1601.00.10X Sausages or similar products of poultry meat, poultry

meat offal or blood, in air tight containers

1602.31.10 Prep. meals, of meat or meat offal of turkeys

1602.31.91 Prep. or preserved meat, meat offal or blood, of turkeys,

other than sausages or prep. meals, in air-tight

containers

1602.31.99 Prep. or preserved meat, meat offal or blood, of turkeys,

other than sausages or prep. meals, other than in

air-tight containers

1602.39.10 Prep. meals containing meat or meat offal of fowls of the

species (Gallus domesticus) ducks, geese or guinea fowls,

incl. mixtures

1602.39.91 Prep. or preserved meat, meat offal or blood, of fowls of

the species (Gallus domesticus), ducks, geese or

guinea fowls, other than sausages, liver or prep.

meals, in air-tight containers

1602.39.99 Prep. or preserved meat, meat offal or blood, of ducks,

geese, etc., other than sausages, liver or prep.

meals, in other than air-tight containers

2105.00.00 Ice cream & other edible ice, containing cocoa or not

2106.90.70 Food preps. not elsewhere specified or incl. Egg preps.

2106.90.90X Ice cream or ice milk mixes

2309.90.91X Complete feeds & feed supplements, incl. concentrates,

containing more than 50% by weight of dairy products

3501.10.00 Casein

3501.90.00 Caseinates & other casein derivatives; casein glues

3502.10.10 Egg albumin, dried, evaporated, desiccated or powdered

3502.10.90 Egg albumin, nes

For Mexico: a dairy, poultry or egg good under one of the following

subheadings:

Note: "X" indicates that a new tariff subheading item will be

established for this item

MEXICO HTS NUMBER DESCRIPTION

0105.11.01 Day old chickens without being fed during its

transportation

0105.91.01 Game cocks

0105.91.99 Other

0105.99.99 Other poultry

0207.10.01 Poultry, not cut into pieces,

fresh or chilled

0207.21.01 Chickens

0207.22.01 Turkey

0207.39.01 Chicken offals except liver

0207.39.99 Other, poultry cut and offals

0207.41.0X Chicken cuts, frozen

0207.41.0Y Chicken offals, frozen

0207.41.0Z Chicken meat mechanically

deboned, frozen

0207.41.ZZ Chicken meat mechanically

deboned, fresh or chilled

0207.42.0X Turkey cuts, frozen

0207.42.0Y Turkey offals

0207.42.0Z Turkey meat, mechanically

deboned, frozen

0207.42.ZY Turkey meat, mechanically

deboned, fresh or chilled

0207.50.01 Poultry livers, frozen

0209.00.0Z Chicken or turkey bacon and

lean parts

0210.90.99 Other

0401.10.01 In hermetic containers milk

not concentrated

0401.10.99 Other

0401.20.01 In hermetic containers;

0401.20.99 Other

0401.30.01 In hermetic containers;

0401.30.99 Other

0402.10.01 Milk powder

0402.10.99 Other

0402.21.01 Milk powder

0402.21.99 Other

0402.29.99 Other

0402.91.01 Evaporated milk

0402.91.99 Other

0402.99.01 Condensed milk

0402.99.99 Other

0403.10.01 Yogurt

0403.90.01 Powdered milk whey with a

protein content less than or

equal to 12 percent

0403.90.99 Other butter whey

0404.10.01 Whey, concentrated, sweetened

0404.90.99 Other

0405.00.01 Butter, including the

immediate container, with a

weight less than or equal to 1kg

0405.00.02 Butter, including the

immediate container, with a

weight over 1 kg

0405.00.03 Butiric fat, dehydrated

0405.00.99 Other

0406.10.01 Fresh cheese, including whey

cheese

0406.20.01 Cheese, grated or powdered

0406.30.01 Melted cheese, not grated or

powdered

0406.30.99 Other, melted cheese

0406.40.01 Blue veined cheese

0406.90.01 Hard paste cheese called sardo

0406.90.02 Hard paste reggi cheese

0406.90.03 Soft paste cologne cheese

0406.90.04 Hard or semi-hard cheeses with

a fat content by weight less

than or equal to 40 percent,

and with a water content by

weight in non-fat matter less

than or equal to 47 percent

(called "grana", "parmigiana"

or "reggiano,") or with a non-

fat matter content by weight

over 47 percent without

exceeding 72 percent (called

"danloo, edam, fontan,

fontina, fynbo, gouda, Avarti,

maribo, samsoe, esron,

italico, kernhem, saint-

nactarie, saint paulin, or

talegiöl)

0406.90.05 Petit suisse cheese

0406.90.06 Egmont cheese

0406.90.99 Other hard and semihard cheese

0407.00.01 Fresh birds eggs, fertile

0407.00.02 Frozen eggs

0407.00.99 Other poultry eggs

0408.11.01 Dried yolks

0408.19.99 Other

0408.91.01 Frozen or powdered

0408.91.99 Other

0408.99.01 Frozen or powdered

0408.99.99 Other

1601.00.9X Chicken and turkey sausages

1602.20.0X Homogenized preparations of

chickens or turkey livers

1602.31.01 Prepared or preserved turkey

meat

2105.00.01 Ice cream and similar products

2106.90.9X Egg preparations

2309.90.9X Preparations containing over

50 percent of milk products

3501.10.01 Casein

3501.90.01 Casein glues

3501.90.02 Caseinates

3501.90.99 Other

3502.10.01 Egg albumin

Appendix B

Trade in Sugar

1. Mexico's customs duty for imports of sugar and syrup goods

originating in the territory of Canada shall be equal to its

Most-Favored-Nation over-quota customs duty.

2. Canada may apply a customs duty on sugar and syrup goods

originating in the territory of Mexico equal to the customs duty

applied by Mexico on such goods originating in the territory of

Canada.

ANNEX 704.3

Agricultural Grading and Marketing Standards

Each Party shall comply with Sections I and II.

Section I

United States and Mexico

1. When either the United States or Mexico adopts or maintains

a measure regarding the classification, grading or marketing of a

domestic agricultural good, it shall, with respect to the like

agricultural good imported from the territory of the other

destined for processing, accord treatment no less favorable than

the treatment it accords under the measure to the domestic

agricultural good destined for processing. The importing Party

may also adopt or maintain measures to ensure that such imported

good is processed.

2. Paragraph 1 shall be without prejudice to the rights of

either the United States or Mexico under the GATT or under

Article 301 of this Agreement with respect to measures concerning

the classification, grading or marketing of an agricultural good

(whether or not destined for processing).

3. Mexico and the United States agree to form a Working Group

to review, in coordination with the Committee on

Standards-Related Measures established under Chapter 9, the

operation of grade and quality standards regarding agricultural

goods as they affect the other Parties to this Agreement, and to

resolve issues which may arise. This Working Group shall report

to the Committee on Agriculture established under Article 708,

and shall meet at least once a year or as otherwise agreed by the

two Parties.

Section II

Canada and Mexico

Mexico and Canada agree to form a Working Group to review,

in coordination with the Committee on Standards-Related Measures

established under Chapter Nine (Standards-Related Measures), the

operation of grade and quality standards regarding agricultural

goods as they affect the other Parties to this Agreement, and to

resolve issues which may arise. This Working Group shall report

to the Committee on Agriculture established under Article 708,

and shall meet at least once a year or as otherwise agreed by the

two Parties.

ANNEX 704.4

Special Safeguards

Section I

Mexican Special Safeguard Goods

MEXICO HTS NUMBER DESCRIPTION

0103.91.99 Live swine, weighing less than

50 kilograms each, except

purebred breeding animals and

those with pedigree or

selected breed certificate

0103.92.99 Live swine, weighing 50

kilograms or more each, except

purebred breeding animals and

those with pedigree or

selected breed certificate

0203.11.01 Meat of swine, carcasses and

half-carcasses, fresh or

chilled

0203.12.01 Hams, shoulders or cuts

thereof, with bone in, fresh

or chilled

0203.19.99 Other swine meat, fresh or

chilled

0203.21.01 Meat of swine, carcasses and

half-carcasses, frozen

0203.22.01 Hams, shoulders and cuts

thereof, with bone in, frozen

0203.29.99 Other swine meat, frozen

0210.11.01 Hams, shoulders and cuts

thereof with bone in, salted,

in brine, dried or smoked

0210.12.01 Bellies (streaky) and cuts

thereof, salted, in brine,

dried or smoked

0210.19.99 Other swine meat, salted, in

brine, dried or smoked

0710.10.01 Potatoes, uncooked or cooked

by steaming or boiling in

water, frozen

0712.10.01 Dried potatoes, whole cut,

sliced, broken or in powder,

but not further prepared

0808.10.01 Apples, fresh

2004.10.01 Potatoes prepared or preserved

otherwise than by vinegar or

acetic acid, frozen

2005.20.01 Potatoes prepared or preserved

otherwise than by vinegar or

acetic acid, not frozen

2101.10.01 Extracts, essences or

concentrates, of coffee, and

preparations with a basis of

these extracts, essences or

concentrates or with a basis

of coffee

Section II

U.S. Special Safeguard Goods

U.S. HTS NUMBER DESCRIPTION

Note: A new U.S. HTS number will be established for each item

0702.00.XX Tomatoes (except cherry

tomatoes), fresh or chilled;

if entered during the period

from November 15 to the last

day of the following February,

inclusive

0702.00.XX Tomatoes (except cherry

tomatoes), fresh or chilled;

if entered during the period

from March 1 to July 14,

inclusive

0703.10.XX Onions and shallots, fresh or

chilled (not including onion

sets and not including pearl

onions not over 16 mm in

diameter) if entered January 1

to April 30, inclusive

0709.30.XX Eggplants (aubergines), fresh

or chilled, if entered during

the period from April 1 to

June 30, inclusive

0709.60.XX "Chili" peppers; if entered

during the period from October

1 to July 31, inclusive

(current 0709.60.00.20)

0709.90.XX Squash, fresh or chilled; if

entered during the period from

October 1 to the following

June 30, inclusive

0807.10.XX Watermelons, fresh; if entered

during the period from May 1

to September 30, inclusive

Section III

Canadian Special Safeguard Goods

Canadian HTS NUMBER DESCRIPTION

0603.10.90 Fresh cut flowers

0702.00.91 Tomatoes n.e.s., fresh or

chilled (dutiable period)

0703.10.31 Onions or shallots, green

(dutiable period), fresh

0707.00.91 Cucumber, fresh or chilled,

n.e.s. (dutiable period)

0710.80.20 Broccoli and cauliflowers,

blanched or not, frozen

0811.10.10 Strawberries, for processing,

frozen

0811.10.90 Strawberries, frozen, other

than for processing

2002.90.00 Tomatoes, other than whole

(tomato paste)

ANNEX 709

Country-Specific Definitions

For purposes of this Subchapter, sugar and syrup goods means:

(a) for imports into Mexico, goods classifiable under

current subheadings 1701.11.01, 1701.11.99, 1701.12.01,

1701.12.99, 1701.91 (except those that contain added

flavoring matter), 1701.99.01, 1701.99.99, 1702.90.01,

1806.10.01 (except those with a sugar content less than

90 per cent) and 2106.90.05 (except those that contain

flavoring matter) of the Mexican Tariff Schedules;

(b) for imports into the United States, goods classifiable

under current subheadings 1701.11.03, 1701.12.02,

1701.91.22, 1701.99.02, 1702.90.32, 1806.10.42, and

2106.90.12 of the U.S. Harmonized Tariff Schedule,

without regard to the quantity imported; and

(c) for imports into Canada, goods classifiable under

current subheadings 1701.11.10, 1701.11.20, 1701.11.30,

1701.11.40, 1701.11.50, 1701.12.00, 1701.91.00,

1701.99.00, 1702.90.31, 1702.90.32, 1702.90.33,

1702.90.34, 1702.90.35, 1702.90.36, 1702.90.37,

1702.90.38, 1702.90.40, 1806.10.00 (except those with a

sugar content less than 90 per cent) and 2106.90.20

(except those that contain flavoring matter) of the

Canadian Tariff Schedule.

Subchapter B - Sanitary and Phytosanitary Measures

Article 751: Scope

In order to establish a framework of rules and disciplines

to guide the development, adoption and enforcement of sanitary

and phytosanitary measures, this Subchapter applies to any such

measure of a Party that may, directly or indirectly, affect trade

between the Parties.

Article 752: Relation to Other Chapters

Articles 301 (National Treatment), 309 (Import and Export

Restrictions) and 310 (Non-Discriminatory Administration of

Restrictions), and the provisions of Article XX(b) of the GATT as

incorporated into Article 2101(1), do not apply to any sanitary

or phytosanitary measure.

Article 753: Reliance on Non-Governmental Entities

Each Party shall ensure that any non-governmental entity on

which it relies in applying a sanitary or phytosanitary measure

acts in a manner consistent with this Subchapter.

Article 754: Basic Rights and Obligations

Right to Take Sanitary and Phytosanitary Measures

1. Each Party may, in accordance with this Subchapter, adopt,

maintain or apply any sanitary or phytosanitary measure necessary

for the protection of human, animal or plant life or health in

its territory, including a measure more stringent than an

international standard, guideline or recommendation.

Right to Establish Level of Protection

2. Notwithstanding any other provision of this Subchapter,

each Party may, in protecting human, animal or plant life or

health, establish its appropriate level of protection in

accordance with Article 757.

Scientific Principles

3. Each Party shall ensure that any sanitary or phytosanitary

measure that it adopts, maintains or applies is:

(a) based on scientific principles, taking into account

relevant factors including, where appropriate,

different geographic conditions;

(b) not maintained where there is no longer a scientific

basis for it; and

(c) based on a risk assessment, as appropriate to the

circumstances.

Non-Discriminatory Treatment

4. Each Party shall ensure that a sanitary or phytosanitary

measure that it adopts, maintains or applies does not arbitrarily

or unjustifiably discriminate between its goods and like goods of

another Party, or between goods of another Party and like goods

of any other country, where identical or similar conditions

prevail.

Unnecessary Obstacles

5. Each Party shall ensure that any sanitary or phytosanitary

measure that it adopts, maintains or applies is applied only to

the extent necessary to achieve its appropriate level of

protection, taking into account technical and economic

feasibility.

Disguised Restrictions

6. No Party may adopt, maintain or apply any sanitary or

phytosanitary measure with a view to, or with the effect of,

creating a disguised restriction to trade between the Parties.

Article 755: International Standards and Standardizing

Organizations

1. Without reducing the level of protection of human, animal,

or plant life or health, each Party shall use, as a basis for its

sanitary and phytosanitary measures, relevant international

standards, guidelines or recommendations with the objective,

among others, of making its sanitary and phytosanitary measures

equivalent or, where appropriate, identical to those of the other

Parties.

2. A Party's sanitary or phytosanitary measure that conforms to

a relevant international standard, guideline or recommendation

shall be presumed to be consistent with Article 754. A measure

that results in a level of sanitary or phytosanitary protection

different from that which would be achieved by a measure based on

a relevant international standard, guideline or recommendation

shall not for that reason alone be presumed to be inconsistent

with this Subchapter.

3. Notwithstanding paragraph 1 and in accordance with the other

provisions of this Subchapter, a Party may adopt, maintain or

apply a sanitary or phytosanitary measure that is more stringent

than the relevant international standard, guideline or

recommendation.

4. Where a Party has reason to believe that a sanitary or

phytosanitary measure of another Party is adversely affecting or

may adversely affect its exports and the measure is not based on

a relevant international standard, guideline or recommendation,

it may request, and the other Party shall provide in writing, the

reasons for such measure.

5. Each Party shall, to the greatest extent practicable,

participate in relevant international and North American

standardizing organizations, including the Codex Alimentarius

Commission, the International Office of Epizootics, the

International Plant Protection Convention, and the North American

Plant Protection Organization, with a view to promoting the

development and periodic review of international standards,

guidelines and recommendations.

Article 756: Equivalence

1. Without reducing the level of protection of human, animal,

or plant life or health, the Parties shall, to the greatest

extent practicable and in accordance with this Subchapter, pursue

equivalence of their respective sanitary or phytosanitary

measures.

2. Each importing Party:

(a) shall treat a sanitary or phytosanitary measure adopted

or maintained by an exporting Party as equivalent to

its own where the exporting Party, in cooperation with

the importing Party, provides to the importing Party

scientific evidence or other information, in accordance

with risk assessment methodologies agreed upon by those

Parties, to demonstrate objectively, subject to

subparagraph (b), that the exporting Party's measure

achieves the importing Party's appropriate level of

protection;

(b) may, where it has a scientific basis, determine that

the exporting Party's measure does not achieve the

importing Party's appropriate level of protection; and

(c) shall, upon the request of the exporting Party, provide

its reasons in writing for a determination under

subparagraph (b).

3. For purposes of establishing equivalency, each exporting

Party shall, upon the request of an importing Party, take such

reasonable measures as may be available to it to facilitate

access in its territory for inspection, testing, and other

relevant procedures.

4. Each Party should, in the development of a sanitary or

phytosanitary measure, consider relevant actual or proposed

sanitary or phytosanitary measures of the other Parties.

Article 757: Risk Assessment and Appropriate Level of

Protection

1. In conducting a risk assessment, each Party shall take into

account:

(a) relevant risk assessment techniques and methodologies

developed by international or North American

standardizing organizations;

(b) relevant scientific evidence;

(c) relevant processes and production methods;

(d) relevant inspection, sampling, and testing methods;

(e) the prevalence of relevant diseases or pests, including

the existence of pest-free or disease-free areas or

areas of low pest or disease prevalence;

(f) relevant ecological and other environmental conditions;

and

(g) relevant treatments, such as quarantines.

2. Further to paragraph 1, each Party shall, in establishing

its appropriate level of protection regarding the risk associated

with the introduction, establishment or spread of an animal or

plant pest or disease, and in assessing such risk, also take into

account the following economic factors, where relevant:

(a) loss of production or sales that may result from such

pest or disease;

(b) costs of control or eradication of the pest or disease

in its territory; and

(c) the relative cost-effectiveness of alternative

approaches to limiting risks.

3. Each Party, in establishing its appropriate level of

protection:

(a) should take into account the objective of minimizing

negative trade effects; and

(b) shall, with the objective of achieving consistency in

such levels, avoid arbitrary or unjustifiable

distinctions in such levels in different circumstances,

where such distinctions result in arbitrary or

unjustifiable discrimination against a good of another

Party or constitute a disguised restriction on trade

between the Parties.

4. Notwithstanding paragraphs (1) through (3) and Article

754(3)(c), where a Party conducting a risk assessment determines

that available relevant scientific evidence or other information

is insufficient to complete the assessment, it may adopt a

provisional sanitary or phytosanitary measure on the basis of

available relevant information, including from international or

North American standardizing organizations and from sanitary or

phytosanitary measures of other Parties. Such Party shall, within

a reasonable period after information sufficient to complete the

assessment is presented to it, complete its assessment, review

and where appropriate revise the provisional measure in light of

such assessment.

5. Where a Party is able to achieve its appropriate level of

protection through the phased application of a sanitary or

phytosanitary measure, it may, upon the request of another Party

and in accordance with this Subchapter, allow for such a phased

application, or grant specified exceptions for limited periods

from such measure, taking into account the requesting Party's

export interests.

Article 758: Adaptation to Regional Conditions

1. Each Party shall adapt any of its sanitary or phytosanitary

measures relating to the introduction, establishment, or spread

of an animal or plant pest or disease, to the sanitary or

phytosanitary characteristics of the area where a good subject to

such measure is produced and the area in its territory to which

such good is destined, taking into account any relevant

conditions, including those relating to transportation and

handling, between such areas. In assessing such characteristics

of an area, including whether an area is, and is likely to

remain, a pest-free or disease-free area or an area of low pest

or disease prevalence, each Party shall take into account, among

other factors:

(a) the prevalence of relevant pests or diseases in that

area;

(b) the existence of eradication or control programs in

that area; and

(c) any relevant international standard, guideline or

recommendation.

2. Further to paragraph 1, each Party shall, in determining

whether an area is a pest-free or disease-free area or an area of

low pest or disease prevalence, base such determination on

factors such as geography, ecosystems, epidemiological

surveillance, and the effectiveness of sanitary or phytosanitary

controls in that area.

3. Each importing Party shall recognize that an area in the

territory of the exporting Party is, and is likely to remain, a

pest-free or disease-free area or an area of low pest or disease

prevalence, where the exporting Party provides to the importing

Party scientific evidence or other information sufficient to so

demonstrate to the satisfaction of the importing Party. For this

purpose, each exporting Party shall provide reasonable access in

its territory to the importing Party for inspection, testing and

other relevant procedures.

4. Each Party may, in accordance with this Subchapter:

(a) adopt, maintain or apply a different risk assessment

procedure for a pest-free or disease-free area than for

an area of low pest or disease prevalence; or

(b) make a different final determination for the

disposition of a good produced in a pest-free or

disease-free area than for a good produced in an area

of low pest or disease prevalence,

taking into account any relevant conditions, including those

relating to transportation and handling.

5. Each Party shall, in adopting, maintaining or applying a

sanitary or phytosanitary measure relating to the introduction,

establishment, or spread of an animal or plant pest or disease,

accord a good produced in a pest-free or disease-free area in the

territory of another Party no less favorable treatment than it

accords a good produced in a pest-free or disease-free area, in

another country, that poses the same level of risk. Such Party

shall use equivalent risk assessment techniques to evaluate

relevant conditions and controls in the pest-free or disease-free

area and in the area surrounding that area and take into account

any relevant conditions, including those relating to

transportation and handling.

6. Each importing Party shall pursue an agreement with an

exporting Party, upon request, on specific requirements the

fulfillment of which allows a good produced in an area of low

pest or disease prevalence in the territory of an exporting Party

to be imported into the territory of the importing Party and

achieves the importing Party's appropriate level of protection.

Article 759: Control, Inspection and Approval Procedures

1. Each Party, with respect to any control or inspection

procedure that it conducts:

(a) shall initiate and complete such procedure as

expeditiously as possible and in no less favorable

manner for a good of another Party than for a good of

such Party or a like good of any other country;

(b) shall publish the normal processing period for each

such procedure or communicate the anticipated

processing period to the applicant upon request;

(c) shall ensure that the competent body

(i) upon receipt of an application, promptly examines

the completeness of the documentation and informs

the applicant in a precise and complete manner of

any deficiency,

(ii) transmits to the applicant as soon as possible the

results of the procedure in a form that is precise

and complete so that such applicant may take any

necessary corrective action,

(iii) where the application is deficient, proceeds

as far as practicable with such procedure if

the applicant so requests, and

(iv) informs the applicant, upon request, of the

status of the application and the reasons for any

delay;

(d) shall limit the information the applicant is required

to supply to that necessary for conducting such

procedure;

(e) shall accord confidential or proprietary information

arising from, or supplied in connection with, such

procedure conducted for a good of another Party

(i) treatment no less favorable than for a good of

such Party, and

(ii) in any event, treatment that protects the

applicant's legitimate commercial interests, to

the extent provided under the Party's law;

(f) shall limit any requirement regarding individual

specimens or samples of a good to that which is

reasonable and necessary;

(g) should not impose a fee for conducting such procedure

that is higher for a good of another Party than is

equitable in relation to any such fee it imposes for

its like goods or for like goods of any other country,

taking into account communication, transportation and

other related costs;

(h) should use criteria for selecting the location of

facilities at which a procedure is conducted that do

not cause unnecessary inconvenience to an applicant or

its agent;

(i) shall provide a mechanism to review complaints

concerning the operation of such procedure and to take

corrective action when a complaint is justified;

(j) should use criteria for selecting samples of goods that

do not cause unnecessary inconvenience to an applicant

or its agent; and

(k) shall limit such procedure, for a good modified

subsequent to a determination that such good fulfills

the requirements of the applicable sanitary or

phytosanitary measure, to that necessary to determine

that such good continues to fulfill the requirements of

such measure.

2. Each Party shall apply, with such modifications as may be

necessary, paragraphs 1(a) through (i) to its approval

procedures.

3. Where an importing Party's sanitary or phytosanitary measure

requires the conduct of a control or inspection procedure at the

level of production, an exporting Party shall, upon the request

of the importing Party, take such reasonable measures as may be

available to it to facilitate access in its territory and to

provide assistance necessary to facilitate the conduct of the

importing Party's control or inspection procedure.

4. A Party maintaining an approval procedure may require its

approval for the use of an additive, or its establishment of a

tolerance for a contaminant, in a food, beverage or feedstuff,

under such procedure, prior to granting access to its domestic

market for a food, beverage or feedstuff containing such additive

or contaminant. Where such Party so requires, it shall consider

using a relevant international standard, guideline or

recommendation as the basis for granting access until it

completes such procedure.

Article 760: Notification, Publication and Provision of

Information

1. Further to Articles 1802 and 1803, each Party proposing to

adopt or modify a sanitary or phytosanitary measure of general

application at the federal level shall:

(a) at least 60 days prior to the adoption or modification

of such measure, other than a law, publish a notice and

notify in writing the other Parties of the proposed

measure and provide to the other Parties and publish

the full text of the proposed measure, in such a manner

as to enable interested persons to become acquainted

with the proposed measure;

(b) identify in such notice and notification the good to

which the proposed measure would apply, and provide a

brief description of the objective and reasons for such

measure;

(c) provide a copy of such proposed measure to any Party or

interested person that so requests and, wherever

possible, identify any provision that deviates in

substance from relevant international standards,

guidelines or recommendations; and

(d) without discrimination, allow other Parties and

interested persons to make comments in writing and

shall, upon request, discuss such comments and take the

comments and the results of such discussions into

account.

2. Each Party shall seek, through appropriate measures, to

ensure, with respect to a sanitary or phytosanitary measure of a

state or provincial government:

(a) that, at an early appropriate stage, a notice and

notification of the type referred to in paragraphs 1(a)

and (b) are made prior to their adoption; and

(b) observance of paragraphs 1(c) and (d).

3. Where a Party considers it necessary to address an urgent

problem relating to sanitary and phytosanitary protection, it may

omit any step set out in paragraph 1 or 2, provided that, upon

adoption of a sanitary or phytosanitary measure, it shall:

(a) immediately provide to the other Parties a notification

of the type referred to in paragraph 1(b), including a

brief description of the urgent problem;

(b) provide a copy of such measure to any Party or

interested person that so requests; and

(c) without discrimination, allow other Parties and

interested persons to make comments in writing and

shall, upon request, discuss such comments and take

such comments and the results of such discussions into

account.

4. Except where necessary to address an urgent problem referred

to in paragraph 3, each Party shall allow a reasonable period

between the publication of a sanitary or phytosanitary measure of

general application and the date that it becomes effective to

allow time for interested persons to adapt to such measure.

5. Each Party shall designate a government authority

responsible for the implementation at the federal level of the

notification provisions of this Article, and shall notify the

other Parties thereof. Where a Party designates two or more

government authorities for such purpose, it shall provide to the

other Parties complete and unambiguous information on the scope

of responsibility of each such authority.

6. Where an importing Party denies entry into its territory of

a good of another Party because it does not comply with a

sanitary or phytosanitary measure, the importing Party shall

provide a written explanation to the exporting Party, upon

request, that identifies the applicable measure and the reasons

that the good is not in compliance.

Article 761: Inquiry Points

1. Each Party shall ensure that there is one inquiry point that

is able to answer all reasonable enquiries from other Parties and

interested persons, and to provide relevant documents, regarding:

(a) any sanitary or phytosanitary measure of general

application, including any control or inspection

procedure or approval procedure, proposed, adopted or

maintained in its territory at the federal, provincial,

or state government level;

(b) such Party's risk assessment procedures and factors it

considers in conducting such assessment and in

establishing its appropriate levels of protection;

(c) the membership and participation of such Party, or its

relevant federal, provincial or state government

authorities in international and regional sanitary and

phytosanitary organizations and systems, and in

bilateral and multilateral arrangements within the

scope of this Subchapter, and the provisions of such

systems and arrangements; and

(d) the location of notices published pursuant to this

Subchapter or where such information can be obtained.

2. Each Party shall ensure that where copies of documents are

requested by another Party or by interested persons in accordance

with this Subchapter, they are supplied at the same price, apart

from the actual cost of delivery, as the price for domestic

purchase.

Article 762: Technical Cooperation

1. Each Party shall, upon the request of another Party,

facilitate the provision of technical advice, information and

assistance, on mutually agreed terms and conditions, to enhance

that Party's sanitary and phytosanitary measures and related

activities, including research, processing technologies,

infrastructure and the establishment of national regulatory

bodies. Such assistance may include credits, donations and

grants, for the purpose of acquiring technical expertise,

training and equipment to allow the Party to adjust to and comply

with a Party's sanitary or phytosanitary measure.

2. Each Party shall, on the request of another Party:

(a) provide to that Party information on its technical

cooperation programs regarding sanitary or

phytosanitary measures relating to specific areas of

interest; and

(b) consult with the other Party during the development of,

or prior to the adoption or change in the application

of, any sanitary or phytosanitary measure.

Article 763: Limitations on the Provision of Information

Nothing in this Subchapter shall be construed as requiring a

Party to:

(a) communicate, publish texts or provide particulars or

copies of documents other than in an official language

of such Party; or

(b) furnish any information the disclosure of which would

impede law enforcement or otherwise be contrary to the

public interest or would prejudice the legitimate

commercial interests of particular enterprises.

Article 764: Committee on Sanitary and Phytosanitary Measures

1. The Parties hereby establish a Committee on Sanitary and

Phytosanitary Measures, comprising representatives of each Party

who have responsibility for sanitary and phytosanitary matters.

2. The Committee should facilitate:

(a) the enhancement of food safety and improvement of

sanitary and phytosanitary conditions in the

territories of the Parties;

(b) activities of the Parties pursuant to Articles 755 and

756;

(c) technical cooperation between the Parties, including

cooperation in the development, application and

enforcement of sanitary or phytosanitary measures; and

(d) consultations on specific matters relating to sanitary

or phytosanitary measures.

3. The Committee:

(a) shall, to the extent possible, in carrying out its

functions, seek the assistance of relevant

international and North American standardizing

organizations to obtain available scientific and

technical advice and minimize duplication of effort;

(b) may draw upon such experts and expert bodies as it

considers appropriate;

(c) shall report annually to the Commission on the

implementation of this Subchapter;

(d) shall meet upon the request of any Party and, unless

the Parties otherwise agree, at least once each year;

and

(e) may, as it considers appropriate, establish and

determine the scope and mandate of working groups.

Article 765: Technical Consultations

1. A Party may request consultations with another Party on any

matter covered by this Subchapter.

2. Each Party should use the good offices of relevant

international and North American standardizing organizations,

including those referred to in Article 755(5), for advice and

assistance on sanitary and phytosanitary matters within their

respective mandates.

3. Where a Party requests consultations regarding the

application of this Subchapter to a Party's sanitary or

phytosanitary measure, and so notifies the Committee, the

Committee may facilitate such consultations, if it does not

consider the matter itself, by referring the matter for

non-binding technical advice or recommendations to a working

group, including an ad hoc working group, or to another forum.

4. The Committee should consider any matter referred to it

under paragraph 3 as expeditiously as possible, particularly

regarding perishable goods, and promptly forward to the Parties

any technical advice or recommendations that it develops or

receives concerning the matter. The Parties involved shall

provide a written response to the Committee concerning the

technical advice or recommendations within such time as the

Committee may request.

5. Where the involved Parties have had recourse to

consultations facilitated by the Committee under paragraph 3,

such consultations shall, upon the agreement of the Parties

involved, constitute consultations conducted for purposes of

Article 2006 (Consultations).

6. The Parties confirm that a Party asserting that a sanitary

or phytosanitary measure of another Party is inconsistent with

the provisions of this Subchapter shall have the burden of

establishing such inconsistency.

Article 766: Definitions

For purposes of this Subchapter:

animal includes fish and wild fauna;

appropriate level of protection means the level of protection of

human, animal or plant life or health in the territory of a Party

that the Party considers appropriate;

approval procedure means any registration, notification or other

mandatory administrative procedure for:

(a) approving the use of an additive for a stated purpose

or under stated conditions; or

(b) establishing a tolerance for a stated purpose or under

stated conditions for a contaminant,

in a food, beverage or feedstuff prior to permitting the use of

such additive or the marketing of a food, beverage or feedstuff

containing such additive or contaminant;

area means a country, part of a country or all or parts of

several countries;

area of low pest or disease prevalence means an area in which a

specific pest or disease occurs at low levels;

contaminant includes pesticide and veterinary drug residues and

extraneous matter;

control or inspection procedure means any procedure used,

directly or indirectly, to determine that a sanitary or

phytosanitary measure is fulfilled, including sampling, testing,

inspection, evaluation, verification, monitoring, auditing,

assurance of conformity, accreditation, registration,

certification, or other procedure involving the physical

examination of a good, of the packaging of a good, or of the

equipment or facilities directly related to production, marketing

or use of a good, but does not mean an approval procedure;

international standard, guideline or recommendation means a

standard, guideline or recommendation:

(a) regarding food safety, adopted by the Codex

Alimentarius Commission, including one regarding

decomposition elaborated by the Codex Committee on Fish

and Fishery Products, food additives, contaminants,

hygienic practice, and methods of analysis and

sampling;

(b) regarding animal health and zoonoses, developed under

the auspices of the International Office of Epizootics;

(c) regarding plant health, developed under the auspices of

the Secretariat of the International Plant Protection

Convention in co operation with the North American

Plant Protection Organization; or

(d) established by or developed under any other

international organization agreed upon by the Parties;

pest includes a weed;

pest-free or disease-free area means an area in which a specific

pest or disease does not occur;

plant includes wild flora;

risk assessment means an evaluation of:

(a) the potential for the introduction, establishment or

spread of a pest or disease and associated biological

and economic consequences; or

(b) the potential for adverse effects on human or animal

life or health arising from the presence of an

additive, contaminant, toxin or disease-causing

organism in a food, beverage or feedstuff;

sanitary or phytosanitary measure means a measure that a Party

adopts, maintains or applies to:

(a) protect animal or plant life or health in its territory

from risks arising from the introduction, establishment

or spread of a pest or disease,

(b) protect human or animal life or health in its territory

from risks arising from the presence of an additive,

contaminant, toxin or disease-causing organism in a

food, beverage or feedstuff,

(c) to protect human life or health in its territory from

risks arising from a disease-causing organism or pest

carried by an animal or plant, or a product thereof,

(d) prevent or limit other damage in its territory arising

from the introduction, establishment or spread of a

pest,

including end product criteria; a product-related processing or

production method; a testing, inspection, certification or

approval procedure; a relevant statistical method; a sampling

procedure; a method of risk assessment; a packaging and labelling

requirement directly related to food safety; and a quarantine

treatment, such as a relevant requirement associated with the

transportation of animals or plants or with material necessary

for their survival during transportation; and

scientific basis means a reason based on data or information

derived using scientific methods.