Complete Home & Office Legal Guide/Complete Home and Office Legal Guide (Chestnut) (1993).ISO/stat/nafta/07agr_a.asc

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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

105.00.01   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.