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.