Nafta

PREAMBLE
The Government of Canada, the Government of the United Mexican States and the Government
of the United States of America, resolved to:
STRENGTHEN the special bonds of friendship and cooperation among their nations;
CONTRIBUTE to the harmonious development and expansion of world trade and provide a
catalyst to broader international cooperation;
CREATE an expanded and secure market for the goods and services produced in their territories;
REDUCE distortions to trade;
ESTABLISH clear and mutually advantageous rules governing their trade;
ENSURE a predictable commercial framework for business planning and investment;
BUILD on their respective rights and obligations under the General Agreement on Tariffs and
Trade and other multilateral and bilateral instruments of cooperation;
ENHANCE the competitiveness of their firms in global markets;
FOSTER creativity and innovation, and promote trade in goods and services that are the subject
of intellectual property rights;
CREATE new employment opportunities and improve working conditions and living standards in
their respective territories;
UNDERTAKE each of the preceding in a manner consistent with environmental protection and
conservation;
PRESERVE their flexibility to safeguard the public welfare;
PROMOTE sustainable development;
STRENGTHEN the development and enforcement of environmental laws and regulations; and
PROTECT, enhance and enforce basic workers' rights;
HAVE AGREED as follows:
PART ONE: GENERAL PART
Chapter One: Objectives
Article 101: Establishment of the Free Trade Area

The Parties to this Agreement, consistent with Article XXIV of the General Agreement on Tariffs
and Trade, hereby establish a free trade area.
Article 102: Objectives
1. The objectives of this Agreement, as elaborated more specifically through its principles and
rules, including national treatment, most-favored-nation treatment and transparency, are to:
a) eliminate barriers to trade in, and facilitate the cross-border movement of, goods and
services between the territories of the Parties;
b) promote conditions of fair competition in the free trade area;
c) increase substantially investment opportunities in the territories of the Parties;
d) provide adequate and effective protection and enforcement of intellectual property rights in
each Party's territory;
e) create effective procedures for the implementation and application of this Agreement, for its
joint administration and for the resolution of disputes; and
f) establish a framework for further trilateral, regional and multilateral cooperation to expand
and enhance the benefits of this Agreement.
2. The Parties shall interpret and apply the provisions of this Agreement in the light of its
objectives set out in paragraph 1 and in accordance with applicable rules of international law.
Article 103: Relation to Other Agreements
1. The Parties affirm their existing rights and obligations with respect to each other under the
General Agreement on Tariffs and Trade and other agreements to which such Parties are party.
2. In the event of any inconsistency between this Agreement and such other agreements, this
Agreement shall prevail to the extent of the inconsistency, except as otherwise provided in this
Agreement.
Article 104: Relation to Environmental and Conservation Agreements
1. In the event of any inconsistency between this Agreement and the specific trade obligations
set out in:
a) the Convention on International Trade in Endangered Species of Wild Fauna and Flora, done a t
Washington, March 3, 1973, as amended June 22, 1979,
b) the Montreal Protocol on Substances that Deplete the Ozone Layer, done at Montreal,
September 16, 1987, as amended June 29, 1990,
c) the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and
Their Disposal, done at Basel, March 22, 1989, on its entry into force for Canada, Mexico and
the United States, or
d) the agreements set out in Annex 104.1,
such obligations shall prevail to the extent of the inconsistency, provided that where a Party has
a choice among equally effective and reasonably available means of complying with such
obligations, the Party chooses the alternative that is the least inconsistent with the other
provisions of this Agreement.
2. The Parties may agree in writing to modify Annex 104.1 to include any amendment to an
agreement referred to in paragraph 1, and any other environmental or conservation agreement.
Article 105: Extent of Obligations
The Parties shall ensure that all necessary measures are taken in order to give effect to the
provisions of this Agreement, including their observance, except as otherwise provided in this
Agreement, by state and provincial governments.
Annex 104.1
Bilateral and Other Environmental and Conservation Agreements
1. The Agreement Between the Government of Canada and the Government of the United
States of America Concerning the Transboundary Movement of Hazardous Waste, signed a t
Ottawa, October 28, 1986.
2. The Agreement Between the United States of America and the United Mexican States on
Cooperation for the Protection and Improvement of the Environment in the Border Area, signed
at La Paz, Baja California Sur, August 14, 1983.
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Chapter Two: General Definitions
Article 201: Definitions of General Application
1. For purposes of this Agreement, unless otherwise specified:
Commission means the Free Trade Commission established under Article 2001(1) (The Free
Trade Commission);
Customs Valuation Code means the Agreement on Implementation of Article VII of the General
Agreement on Tariffs and Trade, including its interpretative notes;
days means calendar days, including weekends and holidays;

enterprise means any entity constituted or organized under applicable law, whether or not for
profit, and whether privately-owned or governmentally-owned, including any corporation, trust,
partnership, sole proprietorship, joint venture or other association;
enterprise of a Party means an enterprise constituted or organized under the law of a Party;
existing means in effect on the date of entry into force of this Agreement;
Generally Accepted Accounting Principles means the recognized consensus or substantial

authoritative support in the territory of a Party with respect to the recording of revenues,
expenses, costs, assets and liabilities, disclosure of information and preparation of financial
statements. These standards may be broad guidelines of general application as well as detailed
standards, practices and procedures;
goods of a Party means domestic products as these are understood in the General Agreement
on Tariffs and Trade or such goods as the Parties may agree, and includes originating goods o f
that Party;
Harmonized System (HS) means the Harmonized Commodity Description and Coding System,
and its legal notes, and rules as adopted and implemented by the Parties in their respective
tariff laws;
measure includes any law, regulation, procedure, requirement or practice;
national means a natural person who is a citizen or permanent resident of a Party and any other
natural person referred to in Annex 201.1;
originating means qualifying under the rules of origin set out in Chapter Four (Rules of Origin);
person means a natural person or an enterprise;
person of a Party means a national, or an enterprise of a Party;
Secretariat means the Secretariat established under Article 2002(1) (The Secretariat);
state enterprise means an enterprise that is owned, or controlled through ownership interests,
by a Party; and
territory means for a Party the territory of that Party as set out in Annex 201.1.
2. For purposes of this Agreement, unless otherwise specified, a reference to a state or

province includes local governments of that state or province.
Annex 201.1
Country-Specific Definitions
For purposes of this Agreement, unless otherwise specified:

national also includes:
a) with respect to Mexico, a national or a citizen according to Articles 30 and 34, respectively,
of the Mexican Constitution; and
b) with respect to the United States, "national of the United States" as defined in the existing
provisions of the Immigration and Nationality Act;
territory means:
a) with respect to Canada, the territory to which its customs laws apply, including any areas
beyond the territorial seas of Canada within which, in accordance with international law and its
domestic law, Canada may exercise rights with respect to the seabed and subsoil and their
natural resources;
b) with respect to Mexico,
(i) the states of the Federation and the Federal District,
(ii) the islands, including the reefs and keys, in adjacent seas,
(iii) the islands of Guadalupe and Revillagigedo situated in the Pacific Ocean,
(iv) the continental shelf and the submarine shelf of such islands, keys and reefs,
(v) the waters of the territorial seas, in accordance with international law, and its interior
maritime waters,
(vi) the space located above the national territory, in accordance with international law, and
Annex 201.1
(vii) any areas beyond the territorial seas of Mexico within which, in accordance with
international law, including the United Nations Convention on the Law of the Sea, and its
domestic law, Mexico may exercise rights with respect to the seabed and subsoil and their
natural resources; and
c) with respect to the United States,
(i) the customs territory of the United States, which includes the 50 states, the District o f
Columbia and Puerto Rico,
(ii) the foreign trade zones located in the United States and Puerto Rico, and
(iii) any areas beyond the territorial seas of the United States within which, in accordance with
international law and its omestic law, the United States may exercise rights with respect to the
seabed and subsoil and their natural resources.
PART TWO: TRADE IN GOODS
Chapter Three: National Treatment and Market Access for Goods
Article 300: Scope and Coverage
This Chapter applies to trade in goods of a Party, including:
a) goods covered by Annex 300-A (Trade and Investment in the Automotive Sector),
b) goods covered by Annex 300-B (Textile and Apparel Goods), and
c) goods covered by another Chapter in this Part, except as provided in such Annex or Chapter.
Section A - National Treatment
Article 301: National Treatment
1. Each Party shall accord national treatment to the goods of another Party in accordance with
Article III of the General Agreement on Tariffs and Trade (GATT), including its interpretative
notes, and to this end Article III of the GATT and its interpretative notes, or any equivalent
provision of a successor agreement to which all Parties are party, are incorporated into and
made part of this Agreement.
2. The provisions of paragraph 1 regarding national treatment shall mean, with respect to a
state or province, treatment no less favorable than the most favorable treatment accorded by
such state or province to any like, directly competitive or substitutable goods, as the case may
be, of the Party of which it forms a part.
3. Paragraphs 1 and 2 do not apply to the measures set out in Annex 301.3.
Section B - Tariffs
Article 302: Tariff Elimination
1. Except as otherwise provided in this Agreement, no Party may increase any existing customs
duty, or adopt any customs duty, on an originating good.
2. Except as otherwise provided in this Agreement, each Party shall progressively eliminate its
customs duties on originating goods in accordance with its Schedule to Annex 302.2.
3. On the request of any Party, the Parties shall consult to consider accelerating the elimination
of customs duties set out in their Schedules. An agreement between two or more Parties t o
accelerate the elimination of a customs duty on a good shall supersede any duty rate or staging
category determined pursuant to their Schedules for such good when approved by each such
Party in accordance with its applicable legal procedures.
4. Each Party may adopt or maintain import measures to allocate in-quota imports made
pursuant to a tariff rate quota set out in Annex 302.2, provided that such measures do not
have trade restrictive effects on imports additional to those caused by the imposition of the
tariff rate quota.
5. On written request of any Party, a Party applying or intending to apply measures pursuant t o
paragraph 4 shall consult to review the administration of those measures.
Article 303: Restriction on Drawback and Duty Deferral Programs
1. Except as otherwise provided in this Article, no Party may refund the amount of customs
duties paid, or waive or reduce the amount of customs duties owed, on a good imported into its
territory, on condition that the good is:
a) subsequently exported to the territory of another Party,
b) used as a material in the production of another good that is subsequently exported to the
territory of another Party, or
c) substituted by an identical or similar good used as a material in the production of another

good that is subsequently exported to the territory of another Party, in an amount that exceeds
the lesser of the total amount of customs duties paid or owed on the good on importation into
its territory and the total amount of customs duties paid to another Party on the good that has
been subsequently exported to the territory of that other Party.
2. No Party may, on condition of export, refund, waive or reduce:

a) an antidumping or countervailing duty that is applied pursuant to a Party's domestic law and
that is not applied inconsistently with Chapter Nineteen (Review and Dispute Settlement in
Antidumping and Countervailing Duty Matters);
b) a premium offered or collected on an imported good arising out of any tendering system in
respect of the administration of quantitative import restrictions, tariff rate quotas or tariff
preference levels;
c) a fee applied pursuant to section 22 of the U.S. Agricultural Adjustment Act, subject t o
Chapter Seven (Agriculture and Sanitary and Phytosanitary Measures); or
d) customs duties paid or owed on a good imported into its territory and substituted by an
identical or similar good that is subsequently exported to the territory of another Party.
3. Where a good is imported into the territory of a Party pursuant to a duty deferral program
and is subsequently exported to the territory of another Party, or is used as a material in the
production of another good that is subsequently exported to the territory of another Party, or
is substituted by an identical or similar good used as a material in the production of another
good that is subsequently exported to the territory of another Party, the Party from whose
territory the good is exported:
a) shall assess the customs duties as if the exported good had been withdrawn for domestic
consumption; and
b) may waive or reduce such customs duties to the extent permitted under paragraph 1.
4. In determining the amount of customs duties that may be refunded, waived or reduced
pursuant to paragraph 1 on a good imported into its territory, each Party shall require
presentation of satisfactory evidence of the amount of customs duties paid to another Party on
the good that has been subsequently exported to the territory of that other Party.
5. Where satisfactory evidence of the customs duties paid to the Party to which a good is
subsequently exported under a duty deferral program described in paragraph 3 is not presented
within 60 days after the date of exportation, the Party from whose territory the good was
exported:
a) shall collect customs duties as if the exported good had been withdrawn for domestic
consumption; and
b) may refund such customs duties to the extent permitted under paragraph 1 on the timely
presentation of such evidence under its laws and regulations.
6. This Article does not apply to:
a) a good entered under bond for transportation and exportation to the territory of another
Party;
b) a good exported to the territory of another Party in the same condition as when imported
into the territory of the Party from which the good was exported (processes such as testing,
cleaning, repacking or inspecting the good, or preserving it in its same condition, shall not be
considered to change a good's condition). Except as provided in Annex 703.2, Section A,
paragraph 12, where such a good has been commingled with fungible goods and exported in the
same condition, its origin for purposes of this subparagraph, may be determined on the basis o f
the inventory methods provided for in the Uniform Regulations established under Article 5 1 1
(Uniform Regulations);
c) a good imported into the territory of a Party that is deemed to be exported from its
territory, or used as a material in the production of another good that is deemed to be exported
to the territory of another Party, or is substituted by an identical or similar good used as a
material in the production o f another good that is deemed to be exported to the territory o f
another Party, by reason o f
(i) delivery to a duty-free shop,
(ii) delivery for ship's stores or supplies for ships or aircraft, or

(iii) delivery for use in joint undertakings of two or more of the Parties and that will
subsequently become the property of the Party into whose territory the good was deemed t o
be imported;
d) a refund of customs duties by a Party on a particular good imported into its territory and
subsequently exported to the territory of another Party, where that refund is granted by reason
of the failure of such good to conform to sample or specification, or by reason of the shipment
of such good without the consent of the consignee;
e) an originating good that is imported into the territory of a Party and is subsequently
exported to the territory of another Party, or used as a material in the production of another
good that is subsequently exported to the territory of another Party, or is substituted by an
identical or similar good used as a material in the production of another good that is
subsequently exported to the territory of another Party; or
f) a good set out in Annex 303.6.
7. Except for paragraph 2(d), this Article shall apply as of the date set out in each Party's
Section of Annex 303.7.
8. Notwithstanding any other provision of this Article and except as specifically provided in
Annex 303.8, no Party may refund the amount of customs duties paid, or waive or reduce the
amount of customs duties owed, on a non-originating good provided for in item 8540.11.aa
(color cathode-ray television picture tubes, including video monitor tubes, with a diagonal
exceeding 14 inches) or 8540.11.cc (color cathoderay television picture tubes for high
definition television, with a diagonal exceeding 14 inches) that is imported into the Party's
territory and subsequently exported to the territory of another Party, or is used as a material in
the production of another good that is subsequently exported to the territory of another Party,
or is substituted by an identical or similar good used as a material in the production of another
good that is subsequently exported to the territory of another Party.
9. For purposes of this Article:
customs duties are the customs duties that would be applicable to a good entered for
consumption in the customs territory of a Party if the good were not exported to the territory
of another party;
identical or similar goods means "identical or similar goods" as defined in Article 415 (Rules of
Origin Definitions);
material means "material" as defined in Article 415;
used means "used" as defined in Article 415.
10. For purposes of the Article:
Where a good referred to by a tariff item number in this Article is described in parentheses
following the tariff item number, the description is provided for purposes of reference only.
Article 304: Waiver of Customs Duties
1. Except as set out in Annex 304.1, no Party may adopt any new waiver of customs duties, or
expand with respect to existing recipients or extend to any new recipient the application of an
existing waiver of customs duties, where the waiver is conditioned, explicitly or implicitly, on the
fulfillment of a performance requirement.
2. Except as set out in Annex 304.2, no Party may, explicitly or implicitly, condition on the
fulfillment of a performance requirement the continuation of any existing waiver of customs
duties.
3. If a waiver or a combination of waivers of customs duties granted by a Party with respect t o

goods for commercial use by a designated person can be shown by another Party to have an
adverse impact on the commercial interests of a person of that Party, or of a person owned or
controlled by a person of that Party that is located in the territory of the Party granting the
waiver, or on the other Party's economy, the Party granting the waiver shall either cease t o
grant it or make it generally available to any importer.
4. This Article shall not apply to measures subject to Article 303.
Article 305: Temporary Admission of Goods
1. Each Party shall grant duty-free temporary admission for:
a) professional equipment necessary for carrying out the business activity, trade or profession
of a business person who qualifies for temporary entry pursuant to Chapter Sixteen (Temporary
Entry for Business Persons),
b) equipment for the press or for sound or television broadcasting and cinematographic
equipment,
c) goods imported for sports purposes and goods intended for display or demonstration, and
d) commercial samples and advertising films,
imported from the territory of another Party, regardless of their origin and regardless o f
whether like, directly competitive or substitutable goods are available in the territory of the
Party.
2. Except as otherwise provided in this Agreement, no Party may condition the duty-free
temporary admission of a good referred to in paragraph 1(a), (b) or (c), other than to require
that such good:
a) be imported by a national or resident of another Party who seeks temporary entry;
b) be used solely by or under the personal supervision of such person in the exercise of the
business activity, trade or profession of that person;
c) not be sold or leased while in its territory;
d) be accompanied by a bond in an amount no greater than 110 percent of the charges that
would otherwise be owed on entry or final importation, or by another form of security,
releasable on exportation of the good, except that a bond for customs duties shall not be
required for an originating good;
e) be capable of identification when exported;
f) be exported on the departure of that person or within such other period of time as is
reasonably related to the purpose of the temporary admission; and
g) be imported in no greater quantity than is reasonable for its intended use.
3. Except as otherwise provided in this Agreement, no Party may condition the duty-free
temporary admission of a good referred to in paragraph 1(d), other than to require that such
good:
a) be imported solely for the solicitation of orders for goods, or services provided from the
territory, of another Party or non-Party;
b) not be sold, leased or put to any use other than exhibition or demonstration while in its
territory;
c) be capable of identification when exported;
d) be exported within such period as is reasonably related to the purpose of the temporary
admission; and
e) be imported in no greater quantity than is reasonable for its intended use.
4. A Party may impose the customs duty and any other charge on a good temporarily admitted
duty-free under paragraph 1 that would be owed on entry or final importation of such good i f
any condition that the Party imposes under paragraph 2 or 3 has not been fulfilled.
5. Subject to Chapters Eleven (Investment) and Twelve (Cross Border Trade in Services):
a) each Party shall allow a vehicle or container used in international traffic that enters its
territory from the territory of another Party to exit its territory on any route that is reasonably
related to the economic and prompt departure of such vehicle or container;
b) no Party may require any bond or impose any penalty or charge solely by reason of any
difference between the port of entry and the port of departure of a vehicle or container;
c) no Party may condition the release of any obligation, including any bond, that it imposes in
respect of the entry of a vehicle or container into its territory on its exit through any particular
port of departure; and
d) no Party may require that the vehicle or carrier bringing a container from the territory o f
another Party into its territory be the same vehicle or carrier that takes such container to the
territory of another Party.
6. For purposes of paragraph 5, "vehicle" means a truck, a truck tractor, tractor, trailer unit or
trailer, a locomotive, or a railway car or other railroad equipment.
Article 306: Duty-Free Entry of Certain Commercial Samples and Printed Advertising Materials
Each Party shall grant duty-free entry to commercial samples of negligible value, and to printed
advertising materials, imported from the territory of another Party, regardless of their origin,
but may require that:
a) such samples be imported solely for the solicitation of orders for goods, or services provided
from the territory, of another Party or non-Party; or
b) such advertising materials be imported in packets that each contain no more than one copy
of each such material and that neither such materials nor packets form part of a larger
consignment.
Article 307: Goods Re-Entered after Repair or Alteration
1. Except as set out in Annex 307.1, no Party may apply a customs duty to a good, regardless
of its origin, that re enters its territory after that good has been exported from its territory t o
the territory of another Party for repair or alteration, regardless of whether such repair or
alteration could be performed in its territory.
2. Notwithstanding Article 303, no Party may apply a customs duty to a good, regardless of its
origin, imported temporarily from the territory of another Party for repair or alteration.
3. Annex 307.3 applies to the Parties specified in that Annex respecting the repair and
rebuilding of vessels.
Article 308: MostúFavoredúNation Rates of Duty on Certain Goods
1. Annex 308.1 applies to certain automatic data processing goods and their parts.
2. Annex 308.2 applies to certain color television tubes.
3. Each Party shall accord mostúfavoredúnation duty-free treatment to any local area network
apparatus imported into its territory, and shall consult in accordance with Annex 308.3.
Section C - Non-Tariff Measures
Article 309: Import and Export Restrictions

1. Except as otherwise provided in this Agreement, no Party may adopt or maintain any
prohibition or restriction on the importation of any good of another Party or on the exportation
or sale for export of any good destined for the territory of another Party, except in accordance
with Article XI of the GATT, including its interpretative notes, and to this end Article XI of the
GATT and its interpretative notes, or any equivalent provision of a successor agreement t o
which all Parties are party, are incorporated into and made a part of this Agreement.
2. The Parties understand that the GATT rights and obligations incorporated by paragraph 1
prohibit, in any circumstances in which any other form of restriction is prohibited, export price
requirements and, except as permitted in enforcement of countervailing and antidumping orders
and undertakings, import price requirements.
3. In the event that a Party adopts or maintains a prohibition or restriction on the importation
from or exportation to a non-Party of a good, nothing in this Agreement shall be construed t o
prevent the Party from:
a) limiting or prohibiting the importation from the t erritory of another Party of such good o f
that non- Party; or
b) requiring as a condition of export of such good of the Party to the territory of another Party,
that the good not be re-exported to the non-Party, directly or indirectly, without being
consumed in the territory of the other Party.
4. In the event that a Party adopts or maintains a prohibition or restriction on the importation
of a good from a non-Party, the Parties, on request of any Party, shall consult with a view t o
avoiding undue interference with or distortion of pricing, marketing and distribution
arrangements in another Party.
5. Paragraphs 1 through 4 shall not apply to the measures set out in Annex 301.3.
Article 310: Customs User Fees
1. No Party may adopt any customs user fee of the type referred to in Annex 310.1 for
originating goods.
2. The Parties specified in Annex 310.1 may maintain existing such fees in accordance with that
Annex.
Article 311: Country of Origin Marking
Annex 311 applies to measures relating to country of origin marking.
Article 312: Wine and Distilled Spirits
1. No Party may adopt or maintain any measure requiring that distilled spirits imported from the
territory of another Party for bottling be blended with any distilled spirits of the Party.
2. Annex 312.2 applies to other measures relating to wine and distilled spirits.
Article 313: Distinctive Products
Annex 313 applies to standards and labelling of the distinctive products set out in that Annex.
Article 314: Export Taxes
Except as set out in Annex 314, no Party may adopt or maintain any duty, tax or other charge
on the export of any good to the territory of another Party, unless such duty, tax or charge is
adopted or maintained on:
a) exports of any such good to the territory of all other Parties; and
b) any such good when destined for domestic consumption.
Article 315: Other Export Measures
1. Except as set out in Annex 315, a Party may adopt or maintain a restriction otherwise
justified under Articles XI:2(a) or XX(g), ( i) or (j) of the GATT with respect to the export of a
good of the Party to the territory of another Party, only if:
a) the restriction does not reduce the proportion of the total export shipments of the specific
good made available to that other Party relative to the total supply of that good of the Party
maintaining the restriction as compared to the proportion prevailing in the most recent
36month period for which data are available prior to the imposition of the measure, or in such
other representative period on which the Parties may agree;
b) the Party does not impose a higher price for exports of a good to that other Party than the
price charged for such good when consumed domestically, by means of any measure, such as
licenses, fees, taxation and minimum price requirements. The foregoing provision does not apply
to a higher price that may result from a measure taken pursuant to subparagraph (a) that only
restricts the volume of exports; and
c) the restriction does not require the disruption of normal channels of supply to that other
Party or normal proportions among specific goods or categories of goods supplied to that other
Party.
2. The Parties shall cooperate in the maintenance and development of effective controls on the
export of each other's goods to a non-Party in implementing this Article.
Section D - Consultations
Article 316: Consultations and Committee on Trade in Goods
1. The Parties hereby establish a Committee on Trade in Goods, comprising representatives o f

each Party.
2. The Committee shall meet on the request of any Party or the Commission to consider any
matter arising under this Chapter.
3. The Parties shall convene at least once each year a meeting of their officials responsible for
customs, immigration, inspection of food and agricultural products, border inspection facilities,
and regulation of transportation for the purpose of addressing issues related to movement o f
goods through the Parties' ports of entry.
Article 317: Third Country Dumping
1. The Parties affirm the importance of cooperation with respect to actions under Article 12 o f
the Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade.
2. Where a Party presents an application to another Party requesting antidumping action on its
behalf, those Parties shall consult within 30 days respecting the factual basis of the request,
and the requested Party shall give full consideration to the request.
Section E - Definitions
Article 318: Definitions
For purposes of this Chapter:
advertising films means recorded visual media, with or without soundtracks, consisting
essentially of images showing the nature or operation of goods or services offered for sale or
lease by a person established or resident in the territory of any Party, provided that the films
are of a kind suitable for exhibition to prospective customers but not for broadcast to the
general public, and provided that they are imported in packets that each contain no more than
one copy of each film and that do not f orm part of a larger consignment;
commercial samples of negligible value means commercial samples having a value, individually or
in the aggregate as shipped, of not more than one U.S. dollar, or the equivalent amount in the
currency of another Party, or so marked, torn, perforated or otherwise treated that they are
unsuitable for sale or for use except as commercial samples;
consumed means:
a) actually consumed; or
b) further processed or manufactured so as to result in a substantial change in value, form or

use of the good or in the production of another good;
customs duty includes any customs or import duty and a charge of any kind imposed in
connection with the importation of a good, including any form of surtax or surcharge in
connection with such importation, but does not include any:
a) charge equivalent to an internal tax imposed consistently with Article III:2 of the GATT, or
any equivalent provision of a successor agreement to which all Parties are party, in respect o f
like, directly competitive or substitutable goods of the Party, or in respect of goods from which
the imported good has been manufactured or produced in whole or in part;
b) antidumping or countervailing duty that is applied pursuant to a Party's domestic law and not
applied inconsistently with Chapter Nineteen (Review and Dispute Settlement in Antidumping
and Countervailing Duty Matters);
c) fee or other charge in connection with importation commensurate with the cost of services
rendered;
d) premium offered or collected on an imported good arising out of any tendering system in
respect of the administration of quantitative import restrictions, tariff rate quotas or tariff
preference levels; and
e) fee applied pursuant to section 22 of the U.S. Agricultural Adjustment Act , subject t o
Chapter Seven (Agriculture and Sanitary and Phytosanitary Measures);
distilled spirits include distilled spirits and distilled spiritúcontaining beverages;
duty deferral program includes measures such as those governing foreign trade zones,
temporary importations under bond, bonded warehouses, "maquiladoras", and inward processing
programs;
duty-free means free of customs duty;
goods imported for sports purposes means sports requisites for use in sports contests,
demonstrations or training in the territory of the Party into whose territory such goods are
imported;
goods intended for display or demonstration includes their component parts, ancillary apparatus
and accessories;
item means a tariff classification item at the eight- or 10-digit level set out in a Party's tariff
schedule;
local area network apparatus means a good dedicated for use solely or principally to permit the
interconnection of automatic data processing machines and units thereof for a network that is
used primarily for the sharing of resources such as central processor units, data storage devices
and input or output units, including in-line repeaters, converters, concentrators, bridges and
routers, and printed circuit assemblies for physical incorporation into automatic data processing
machines and units thereof suitable for use solely or principally with a private network, and
providing for the transmission, receipt, error-checking, control, signal conversion or correction
functions for non-voice data to move through a local area network;
performance requirement means a requirement that:
a) a given level or percentage of goods or services be exported;

b) domestic goods or services of the Party granting a waiver of customs duties be substituted
for imported goods or services;
c) a person benefitting from a waiver of customs duties purchase other goods or services in the
territory of the Party granting the waiver or accord a preference to domestically produced
goods or services;
d) a person benefitting f rom a waiver of customs duties produce goods or provide services, in
the territory of the Party granting the waiver, with a given level or percentage of domestic
content; or
e) relates in any way the volume or value of imports to the volume or value of exports or to the
amount of foreign exchange inflows;
printed advertising materials means those goods classified in Chapter 49 of the Harmonized
System, including brochures, pamphlets, leaflets, trade catalogues, yearbooks published by
trade associations, tourist promotional materials and posters, that are used to promote,
publicize or advertise a good or service, are essentially intended to advertise a good or service,
and are supplied free of charge;
repair or alteration does not include an operation or process that either destroys the essential
characteristics of a good or creates a new or commercially different good;
satisfactory evidence means:
a) a receipt, or a copy of a receipt, evidencing payment of customs duties on a particular entry;
b) a copy of the entry document with evidence that it was received by a customs
administration;
c) a copy of a final customs duty determination by a customs administration respecting the

relevant entry;
d) any other evidence of payment of customs duties acceptable under the Uniform Regulations
established in accordance with Chapter Five (Customs Procedures);
total export shipments means all shipments from total supply to users located in the territory o f
another Party;
total supply means all shipments, whether intended for domestic or foreign users, from:
a) domestic production;
b) domestic inventory; and
c) other imports as appropriate; and

waiver of customs duties means a measure that waives otherwise applicable customs duties on
any good imported from any country, including the territory of another Party.
Annex 301.3
Exceptions to Articles 301 and 3 0 9
Section A - Canadian Measures
1. Articles 301 and 309 shall not apply to controls by Canada on the export of logs of all
species.
2. Articles 301 and 309 shall not apply to controls by Canada on the export of unprocessed fish
pursuant to the following existing statutes, as amended as of August 12, 1992:
a) New Brunswick Fish Processing Act , R.S.N.B. c. Fú18.01 (1982), and Fisheries Development
Act, S.N.B. c. F15.1 (1977);
b) Newfoundland Fish Inspection Act , R.S.N. 1990, c. Fú12;
c) Nova Scotia Fisheries Act , S.N.S. 1977, c. 9;
d) Prince Edward Island Fish Inspection Act , R.S.P.E.I. 1988, c. Fú13; and
e) Quebec Marine Products Processing Act , No. 38, S.Q. 1987, c. 51.
3. Articles 301 and 309 shall not apply to:
a) except as provided in Annex 300-A, Appendix 300-A.1, paragraph 4, measures by Canada

respecting the importation of any goods enumerated or referred to in Schedule VII of the
Customs Tariff , R.S.C. 1985, c. 41 (3rd Supp.), as amended,
b) measures by Canada respecting the exportation of liquor for delivery into any country into
which the importation of liquor is prohibited by law under the existing provisions of the Export
Act , R.S.C. 1985, c. E18, as amended,
c) measures by Canada respecting preferential rates for certain freight traffic under the existing
provisions of the Maritime Freight Rate Act , R.S.C. 1985, c. M-1, as amended,
d) Canadian excise taxes on absolute alcohol used in manufacturing under the existing
provisions of the Excise Tax Act , R.S.C. 1985, c. E-14, as amended, and
e) measures by Canada prohibiting the use of foreign or non-duty paid ships in the coasting
trade of Canada unless granted a license under the Coasting Trade Act , S.C. 1992, c. 31,
to the extent that such provisions were mandatory legislation at the time of Canada's accession
to the GATT and have not been amended so as to decrease their conformity with the GATT.
4. Articles 301 and 309 shall not apply to quantitative import restrictions on goods that
originate in the territory of the United States, considering operations performed in, or materials
obtained from, Mexico as if they were performed in, or obtained from, a non-Party, and that are
indicated by asterisks in Chapter 89 in Annex 401.2 (Tariff Schedule of Canada) of the Canada
United States Free Trade Agreement for as long as the measures taken under the Merchant
Marine Act of 1920, 46 App. U.S.C. §§ 883, and the Merchant Marine Act of 1936, 46 App.
U.S.C. §§ 1171, 1176, 1241 and 1241o, apply with quantitative effect to comparable Canadian
origin goods sold or offered for sale into the U.S. market.
a) the continuation or prompt renewal of a non-conforming provision of any statute referred t o

in paragraph 2 or 3; and
b) the amendment to a non-conforming provision of any statute referred to in paragraph 2 or 3

to the extent that the amendment does not decrease the conformity of the provision with
Articles 301 and 309.
Section B - Mexican Measures
1. Articles 301 and 309 shall not apply to controls by Mexico on the export of logs of all
species.
a) measures under the existing provisions of Articles 192 through 194 of the General Ways o f
Communication Act ("Ley de Vias Generales de Comunicación") reserving exclusively to Mexican
vessels all services and operations not authorized for foreign vessels and empowering the
Mexican Ministry of Communications and Transportation to deny foreign vessels the right t o
perform authorized services if their country of origin does not grant reciprocal rights to Mexican
vessels; and
b) export permit measures applied to goods for exportation to another Party that are subject t o
quantitative restrictions or tariff rate quotas adopted or maintained by that other Party.
a) the continuation or prompt renewal of a non-conforming provision of the statute referred t o

in paragraph 2(a); and
b) the amendment to a non-conforming provision of the statute referred to in paragraph 2(a) t o

the extent that the amendment does not decrease the conformity of the provision with Articles
301 and 309.
4.
(a) Notwithstanding Article 309, for the first 10 years after the date of entry into force of this
Agreement, Mexico may adopt or maintain prohibitions or restrictions on the importation o f
used goods provided for in the items, as of August 12, 1992, in the Tariff Schedule of the
General Import Duty Act (Tarifa de la "Ley del Impuesto General de Importación") set out below:
Note: (For purposes of reference only, descriptions are provided next to the corresponding
item.)
Item
Description
8407.34.99
Gasoline engines of more than 1,000 cm3, except for motorcycles
8413.11.01
Distributors fitted with a measuring device even if it includes a totalizing mechanism
8413.40.01
Trailer type, from 36 up to 60 m3/hr capacity; without hydraulic elevator for the discharge
hose
8426.12.01
Mobile portals on tires and straddle carriers
8426.19.01
Other (overhead travelling cranes, bridge cranes and straddle carriers)
8426.30.01
Portal cranes
8426.41.01
Cranes with structural iron jib (lattice) with mechanical working, self-propelled, with unit weight
up to 55 tons
8426.41.02
Cranes with hydraulically actuated rigid jib, selfpropelled with maximum capacity above 9.9 tons
and not exceeding 30 tons
8426.41.99
Other (machinery and apparatus, self propelled, on tires)
8426.49.01
Cranes with structural iron jib (lattice) with mechanical working, with unit weight up to 55 tons
8426.49.02
Cranes with hydraulically actuated rigid jib, selfpropelled, with load capacity above 9.9 tons and
not exceeding 30 tons
8426.91.01
Cranes, other than those provided for in items 8426.91.02, 8426.91.03 and 8426.91.04
8426.91.02
Cranes with hydraulic working, with articulated or rigid booms, with capacity up to 9.9 tons at 1
meter radius
8426.91.03
Isolated elevating cranes, basket type, with carrying capacity equal to or less than 1 ton and up
to 15 meters lift
8426.91.99
Other (machinery and apparatus; designed for mounting on road vehicles)
8426.99.01
Cranes, other than those provided for in items 8426.91.02
8426.99.02
Swivel cranes
8426.99.99
Other (cranes and air cables ("blondines"); overhead travelling cranes, handling or unloading
frames, bridge cranes, straddle carriers and straddle cranes)
8427.10.01
With load capacity up to 3,500 kilograms, measured at 620 millimeters from the frontal surface
of the forks, without battery or loader
8427.20.01
With explosion or internal combustion engine, with carrying capacity up to 7,000 kilograms,
measured at 620 millimeters from the frontal surface of the forks
8428.40.99
Other (escalators and moving walkways)
8428.90.99
Other (machinery and apparatus for lifting, loading, unloading or handling)
8429.11.01
Caterpillar type
8429.19.01
Other (bulldozers and angledozers)
8429.20.01
Graders
8429.30.01
Scrapers
8429.40.01
Tamping machines
8429.51.02
Frontend loader with hydraulic working, wheeltype, with capacity equal or less than 335 HP
8429.51.03
Mechanical shovels, other than those provided for in item 8429.51.01
8429.51.99
Other (mechanical shovels, excavators, loaders and frontend shovel loaders)
8429.52.02
Draglines or excavators, other than those provided for in item 8429.52.01
8429.52.99
Other (machinery with a 360 revolving superstructure)
8429.59.01
Trenchers
8429.59.02
Draglines, with dragging load capacity up to 4,000 kilograms
8429.59.03
8429.59.99
Other (selfpropelled bulldozers, angledozers, graders, scrapers, mechanical shovels, excavators,
loaders, shovel loaders, tamping machines and road rollers)
8430.31.01
Rotation and/or percussion perforators
8430.31.99
Other (selfpropelled cutters, pullers or wrenchers and machines to open tunnels or galleries)
8430.39.01
Boring shields
8430.39.99
Other (not selfpropelled cutters, pullers or wrenchers and machines to open tunnels or galleries)
8430.41.01
Boring or sinking machinery, other than those provided for in item 8430.41.02
8430.41.99
Other (selfpropelled probing or boring machinery)
8430.49.99
Other (not selfpropelled probing or boring machinery)
8430.50.01
Excavators, frontal carriers with hydraulic mechanism, with capacity equal to or less than 3 3 5
h.p
8430.50.02
Scrapers
8430.50.99
Other (selfpropelled machinery and apparatus)
8430.61.01
Graders (pushers)
8430.61.02
Tamping or compacting rollers
8430.61.99
Other (machinery and apparatus, not selfpropelled)
8430.62.01
Scarification machine (ripping machine)
8430.69.01
Scrapers, not selfpropelled
8430.69.02
Trencher machine, other than those provided for in item 8430.69.03
8430.69.99
Other (trenchers, other than those provided for in items 8430.69.01, 8430.69.02 and
8430.69.03)
8452.10.01
Sewing machines of the household type
8452.21.04
Industrial machines, other than those provided for in items 8452.21.02, 8452.21.03 and
8452.21.05
8452.21.99
Other (automatic sewing machines)
8452.29.05
Machines or heads for industrial use, with straight seams, straight needle and a rotating and
oscillating thread linking device, double backstitching, flat bed and transportation only
8452.29.06
8452.29.05
8452.29.99
Other (non-automatic sewing machines)
8452.90.99
Other (parts of sewing machines)
8471.10.01
Analogue or hybrid automatic data processing machines
8471.20.01
Digital or numerical automatic data processing machines, containing in the same housing a t
least a central processing unit and an input and output unit
8471.91.01
Numerical or digital processing units, even if presented with the rest of the system, including
one or two of the following types of units contained in the same housing: storage units, input
units, output unit
8471.92.99
Other (input or output units whether or not entered with the rest of a system and whether or
not containing storage units in the same housing)
8471.93.01
Storage units, including the rest of the system
8471.99.01
Other (automatic data processing machines and units thereof)
8474.20.01
Crushing and grinding with two or more cylinders
8474.20.02
Crushing jawbone and grinding millstone
8474.20.03
Blade crushing machines
8474.20.04
Crushing machines of balls or bars
8474.20.05
Drawer cone crushing, with diameter no more than 1200 millimeters
8474.20.06
Grinding hammer percussion
8474.20.99
Other (machines and apparatus to break, crush or grind or pulverize dirt, stones and other solid
mineral materials)
8474.39.99
Other (mixing machines)
8474.80.99
Other (machines and apparatus to classify, sieve, separate, break, crush, grind, mix, or knead
dirt, stones and other mineral materials)
8475.10.01
Machines for assembling lamps
8477.10.01
Injectionmolding machines for thermoplastic materials, up to 5 kg capacity for one molding
model
8701.30.01
Caterpillar tractors with an engine power at the flywheel equal to or above 1 05 h.p., but less
than 380 h.p. measured at 1,900 rpm, including pushing blade
8701.90.02
Railroad tractors, on tires with mechanical mechanism for pavement
8711.10.01
Motorcycles fitted with an auxiliary motor with reciprocating piston engine not exceeding 5 0
cm3
8711.20.01
Motorcycles fitted with an auxiliary motor with reciprocating piston engine over 50 cm3 but not
over 250 cm3
8711.30.01
Motorcycles fitted with an auxiliary motor with reciprocating piston engine over 250 cm3 but
not over 500 cm3
8711.40.01
Motorcycles fitted with an auxiliary motor with reciprocating piston engine over 500 cm3 but
less than 550 cm3
8711.90.99
Other (motorcycles, cycles fitted with an auxiliary motor and sidecars without a reciprocating
piston engine, and that are not sidecars for motorcycles and velocipedes of any kind presented
separately)
8712.00.02
Bicycles, other than of the type for racing
8712.00.99
Other (cycles, not motorized, except bicycles, and tricycles for the transport of merchandise)
8716.10.01
Trailers and semitrailers for housing and camping, of the caravan type
8716.31.02
Steeltank type tankers, including cryogenic or hoppers
8716.31.99
Other (tankers except of the steeltank type, and of the thermal type for the transportation o f
milk)
8716.39.01
Trailers or semitrailers of the platform type, with or without stakes, including those accepted
for the transport of boxes or metal baskets for cans and bottles or container carriers, or low
beds, except those with hydraulic or pneumatic suspension and collapsible gooseneck
8716.39.02
Trailers or semitrailers for the transport of vehicles
8716.39.04
Trailers of the modularplatform type with directional axis, including transporter bridge section,
hydraulic couplings or gooseneck or motor for hydraulic conditioning of the equipment
8716.39.05
Semitrailers of the lowbed type, with pneumatic or hydraulic suspension and collapsible
gooseneck
8716.39.06
Trailers and semitrailers of the closedbox type, including refrigerated
8716.39.07
Trailers and semitrailers of the steeltank type, including cryogenic and hoppers
8716.39.99
Other (trailers and semitrailers for the transportation of goods, other than those provided for in
items 8716.39.01, 8716.39.02, 8716.39.04, 8716.39.05, 8716.39.06 and 8716.39.07, and
that are not vehicles for the transport of goods, with solid rubber wheels, nor doubledecker
trailers or semitrailers of the type recognized as used exclusively for hauling cattle
8716.40.01
Other trailers and semitrailers not used for transporting goods
8716.80.99
Other (non-automotive vehicles except trailers or semitrailers, wheel barrows and handcarts, or
wheel barrows of hydraulic operation)
b) Notwithstanding subparagraph (a), Mexico shall not prohibit or restrict the importation, on a
temporary basis, of used goods provided for in the items set out in subparagraph (c) for the
provision of a crossborder service subject to Chapter Twelve (CrossBorder Trade in Services) or
the performance of a contract subject to Chapter Ten (Government Procurement), provided
that the imported goods
(i) are necessary to the provision of the cross border service or the performance of the
contract awarded to a supplier of another Party,
(ii) are used solely by or under the supervision of the service provider or the supplier performing
the contract,
(iii) are not sold, leased or loaned while in the territory of Mexico,
(iv) are imported in no greater quantity than is necessary for the provision of the service or the
performance of the contract,
(v) are reexported promptly on completion of the service or the contract, and
(vi) comply with other applicable requirements on the importation of such goods to the extent
they are not inconsistent with this Agreement.
c) Subparagraph (b) applies to used goods provided for in the following items:
Item
Description
8413.11.01
Distributors fitted with a measuring device even if it includes a totalizing mechanism
8413.40.01
Concrete pumps for liquids, not fitted with a measuring device from 36 up to 60 m3/hr
capacity
8426.12.01
Mobile portals on tires and straddle carriers
8426.19.01
Other (overhead travelling cranes, bridge cranes and straddle carriers)
8426.30.01
Portal cranes
8426.41.01
Cranes with hydraulically actuated rigid jib, selfpropelled with maximum capacity above 9.9 tons
and not exceeding 30 tons
8426.41.02
Cranes with structural iron jib (lattice) with mechanical working, selfpropelled, with unit weight
up to 55 tons
8426.41.99
Other (machinery and apparatus, self propelled, on tires)
8426.49.01
Cranes with structural iron jib (lattice) with mechanical working, with unit weight up to 55 tons
8426.49.02
Cranes with hydraulically actuated rigid jib, selfpropelled, with load capacity above 9.9 tons and
not exceeding 30 tons
8426.91.01
Cranes, other than those provided for in items 8426.91.02, 8426.91.03 and 8426.91.04
8426.99.01
Cranes
8426.99.02
Swivel cranes
8426.99.99
Other (cranes and air cables ("blondines"); overhead travelling cranes, handling or unloading
frames, bridge cranes, straddle carriers and straddle cranes)
8427.10.01
With load capacity up to 3,500 kilograms, measured at 620 millimeters from the frontal surface
of the forks, without battery or loader
8428.40.99
Other (escalators and moving walkways)
8428.90.99
Other (machinery and apparatus for lifting, loading, unloading or handling)
8429.11.01
Caterpillar type
8429.19.01
Other (bulldozers and angledozers)
8429.30.01
Scrapers
8429.40.01
Tamping machines
8429.51.02
Frontend loader with hydraulic working, wheeltype, with capacity equal or less than 335 HP
8429.51.03
Mechanical shovels, other than those provided for in item 8429.51.01
8429.51.99
Other (mechanical shovels, excavators, loaders and frontend shovel loaders)
8429.52.02
8429.52.99
Other (machinery with a 360 revolving superstructure)
8429.59.01
Trenchers
8429.59.02
Draglines, with dragging load capacity up to 4,000 kilograms
8429.59.03
8429.59.99
Other (selfpropelled bulldozers, angledozers, graders, scrapers, mechanical shovels, excavators,
loaders, shovel loaders, tamping machines and road rollers)
8430.31.01
Rotation and/or percussion perforators
8430.31.99
Other (selfpropelled cutters, pullers or wrenchers and machines to open tunnels or galleries)
8430.39.01
Boring shields
8430.39.99
Other (not selfpropelled cutters, pullers or wrenchers and machines to open tunnels or galleries)
8430.41.01
Boring or sinking machinery, other than those provided for in item 8430.41.02
8430.41.99
Other (selfpropelled probing or boring machinery)
8430.49.99
Other (not selfpropelled probing or boring machinery)
8430.50.01
Excavators, frontal loaders with hydraulic mechanism, with capacity equal to or less than 3 3 5
h.p.
8430.50.02
Scrapers
8430.50.99
Other (selfpropelled machinery and apparatus)
8430.61.01
Graders (pushers)
8430.61.02
Tamping or compacting rollers
8430.62.01
Scarification machine (ripping machine)
8430.69.01
Scrapers, not selfpropelled
8430.69.02
Trencher machine, other than those provided for in item 8430.69.03
8430.69.99
Other (trenchers, other than those provided for in items 8430.69.01, 8430.69.02 and
8430.69.03)
8452.10.01
Sewing machines of the household type
8452.21.04
8452.21.05
8452.21.99
Other (automatic sewing machines)
8452.29.06
8452.29.05
8452.29.99
Other (non-automatic sewing machines)
8452.90.99
Other (parts of sewing machines)
8471.10.01
Analogue or hybrid automatic data processing machines
8474.20.01
Crushing and grinding with two or more cylinders
8474.20.03
Blade crushing machines
8474.20.04
Crushing machines of balls or bars
8474.20.99
Other (machines and apparatus to break, crush or grind or pulverize dirt, stones and other solid
mineral materials)
8474.39.99
Other (mixing machines)
8474.80.99
Other (machines and apparatus to classify, sieve, separate, break, crush, grind, mix, or knead
dirt, stones and other mineral materials)
8477.10.01
Injectionmolding machines for thermoplastic materials, up to 5 kg capacity for one molding
model
8701.30.01
Caterpillar tractors with an engine power at the flywheel equal to or above 105 h.p., but less
than 380 h.p. measured at 1,900 rpm, including pushing blade
Section C - U.S. Measures
1. Articles 301 and 309 shall not apply to controls by the United States on the export of logs
of all species.
a) taxes on imported perfume containing distilled spirits under existing provisions of section
5001(a)(3) and 5007(b)(2) of the Internal Revenue Code of 1986, 26 U.S.C. 5001(a)(3),
5007(b)(2), and
b) measures under existing provisions of the Merchant Marine Act of 1920, 46 App. U.S.C. 883;
the Passenger Vessel Act, 46 App. U.S.C. 289, 292, and 316; and 46 U.S.C. 12108, to the
extent that such measures were mandatory legislation at the time of the United States'
accession to the GATT and have not been amended so as to decrease their conformity with the
GATT.
a) the continuation or prompt renewal of a non-conforming provision of any statute referred t o

in paragraph 2; and
b) the amendment to a non-conforming provision of any statute referred to in paragraph 2 to
the extent that the amendment does not decrease the conformity of the provision with Articles
301 and 309.
Annex 302.2
Tariff Elimination
1. Except as otherwise provided in a Party's Schedule attached to this Annex, the following
staging categories apply to the elimination of customs duties by each Party pursuant to Article
302(2):
a) duties on goods provided for in the items in staging category A in a Party's Schedule shall be
eliminated entirely and such goods shall be duty-free, effective January 1, 1994;
b) duties on goods provided for in the items in staging category B in a Party's Schedule shall be
removed in five equal annual stages beginning on January 1, 1994, and such goods shall be
duty-free, effective January 1, 1998;
c) duties on goods provided for in the items in staging category C in a Party's Schedule shall be
removed in 10 equal annual stages beginning on January 1, 1994, and such goods shall be duty-
free, effective January 1, 2003;
d) duties on goods provided for in the items in staging category C+ in a Party's Schedule shall
be removed in 15 equal annual stages beginning on January 1, 1994, and such goods shall be
duty-free, effective January 1, 2008; and
e) goods provided for in the items in staging category D in a Party's Schedule shall continue t o
receive duty-free treatment.
2. The base rate of customs duty and staging category for determining the interim rate o f
customs duty at each stage of the U.S. Generalized System of Preferences and the General
Preferential Tariff of Canada.
3. For the purpose of the elimination of customs duties in accordance with Article 302, interim
staged rates shall be rounded down, except as set out in each Party's Schedule attached to this
Annex, at least to the nearest tenth of a percentage point or, if the rate of duty is expressed in
monetary units, at least to the nearest .001 of the official monetary unit of the Party.
4. Canada shall apply a rate of customs duty no higher than the rate applicable under the
staging category set out for an item in Annex 401.2, as amended, of the Canada-United States
Free Trade Agreement which Annex is hereby incorporated into and made a part of this
Agreement, to an originating good provided that:
a) notwithstanding any provision in Chapter Four, in determining whether such good is an

originating good, operations performed in or materials obtained from Mexico are considered as i f
they were performed in or obtained from a non-Party; and
b) any processing that occurs in Mexico after the good would qualify as an originating good in
accordance with subparagraph (a) does not increase the transaction value of the good by
greater than seven percent.
5. Canada shall apply a rate of customs duty no higher than the rate applicable under the
staging category set out for an item in Column I of its Schedule to this Annex to an originating
good provided that:
a) notwithstanding any provision in Chapter Four, in determining whether such good is an

originating good, operations performed in or materials obtained from the United States are
considered as if they were performed in or obtained from a non-Party; and
b) any processing that occurs in the United States after subparagraph (a) does not increase the
transaction value of the good by greater than seven percent.
6. Canada shall apply to an originating good to which neither paragraph 4 nor 5 applies a rate o f
customs duty no higher than the rate indicated for its corresponding item in Column II of its
Schedule to this Annex. The rate of customs duty in Column II for such good shall be:
a) in each year of the staging category indicated in Column I, the higher o f
(i) the rate of customs duty under the staging category set out for the item in Annex 401.2, as
amended, of the Canada-United States Free Trade Agreement , and
(ii) the General Preferential Tariff rate of customs duty for the item applied on July 1, 1991,
reduced in accordance with the applicable staging category set out for the item in Column I of
its Schedule to this Annex; or
b) where specified in Column II of its Schedule to this Annex, the most-favored-nation rate o f
customs duty for the item applied on July 1, 1 9 91, reduced in accordance with the applicable
staging category set out for the item in Column I of its Schedule to this Annex, or reduced in
accordance with the applicable staging category otherwise indicated.
7. Paragraphs 4 through 6 and 10 through 13 shall not apply to textile and apparel goods
identified in Appendix 1.1 of Annex 300-B (Textiles and Apparel Goods).
8. Paragraphs 4, 5 and 6 shall not apply to agricultural goods as defined in Article 708. For
these goods, Canada shall apply the rate applicable under the staging category set out for an
item in Annex 401.2, as amended, of the Canada-United States Free Trade Agreement to an
originating good when the good qualifies to be marked as a good of the United States pursuant
to Annex 311, without regard to whether the good is marked. When an originating good
qualifies to be marked as a good of Mexico, pursuant to Annex 311, whether or not the good is
marked, Canada shall apply the rate applicable under the staging category set out for an item in
Column I of its Schedule to this Annex.
9. As between the United States and Canada, Articles 401(7) and 401(8) of the Canada-United
States Free Trade Agreement is hereby incorporated and made a part of this Annex. The term
"goods originating in the territory of the United States of America" in Article 401(7) of that
agreement shall be determined in accordance with paragraph 4 of this Annex. The term "goods
originating shall be determined in accordance with paragraph 12 of this Annex.
10. Mexico shall apply a rate of customs duty no higher than the rate applicable under the
staging category set out for an item in Column I of its Schedule to this Annex to an originating
good when the good qualifies to be marked as a good of the United States, pursuant to Annex
311, without regard to whether the good is marked.
11. Mexico shall apply a rate of customs duty no higher than the rate applicable under the
staging category set out for an item in Column II of its Schedule to this Annex to an originating
good when the good qualifies to be marked as a good of Canada, pursuant to Annex 311,
without regard to whether the good is marked.
12. The United States shall apply a rate of customs duty no higher than the rate applicable
under the staging category set out for an item in Annex 401.2, as amended, of the Canada-
United States Free Trade Agreement to an originating good when the good qualifies to be
marked as a good of Canada pursuant to Annex 311, without regard to whether the good is
marked.
13. The United States shall apply a rate of customs duty no higher than the rate applicable
under the staging category set out for an item in its Schedule to this Annex to an originating
good when the good qualifies to be marked as a good of Mexico pursuant to Annex 311,
whether or not the good is marked.
Schedule of Canada
(TARIFF SCHEDULE ATTACHED AS SEPARATE VOLUME)
Schedule of Mexico
Schedule of the United States
Annex 303.6
Goods Not Subject to Article 3 0 3
1. For exports from the territory of the United States to the territory of Canada or Mexico, a
good provided for in U.S. tariff item 1701.11.02 that is imported into the territory of the
United States and used as a material in the production of, or substituted by an identical or
similar good used as a material in the production of, a good provided for in Canadian tariff item
1701.99.00 or Mexican tariff items 1701.99.01 and 1701.99.99 (refined sugar) is not subject
to Article 303.
2. For trade between Canada and the United States the following are not subject to Article 303:
a) imported citrus products;
b) an imported good used as a material in the production of, or substituted by an identical or

similar good used as a material in the production of, a good provided for in U.S. items
5811.00.20 (quilted cotton piece goods), 5811.00.30 (quilted man-made piece goods) or
6307.90.99 (furniture moving pads), or Canadian items 5811.00.10 (quilted cotton piece
goods), 5811.00.20 (quilted man-made piece goods) or 6307.90.30 (furniture moving pads),
that are subject to the most-favored-nation rate of duty when exported to the territory of the
other Party; and
c) an imported good used as a material in the production in the production of, apparel that is
subject to the mostúfavoredúnation rate of duty when exported to the territory of the other
Party.
Annex 303.7
Effective Dates for the Application of Article 3 0 3
Section A - Canada
For Canada, Article 303 shall apply to a good imported into the territory of Canada that is:
a) subsequently exported to the territory of the United States on or after January 1, 1996, or
subsequently exported to the territory of Mexico on or after January 1, 2001;
territory of the United States on or after January 1, 1996, or used as a material in the
production of another good that is subsequently exported to the territory of Mexico on or after
January 1, 2001; or

good that is subsequently exported to the territory of the United States on or after January 1,
1996, or substituted by an identical or similar good used as a material in the production o f
another good that is subsequently exported to the territory of Mexico on or after January 1,
2001.
Section B - Mexico
For Mexico, Article 303 shall apply to a good imported into the territory of Mexico that is:
a) subsequently exported to the territory of another Party on or after January 1, 2001;
territory of another Party on or after January 1, 2001; or
good that is subsequently exported to the territory of another Party on or after January 1,
2001.
Section C - United States
For the United States, Article 303 shall apply to a good imported into the territory of the United
States that is:
a) subsequently exported to the territory of Canada on or after January 1, 1996, or

subsequently exported to the territory of Mexico on or after January 1, 2001;
territory of Canada on or after January 1, 1996, or used as a material in the production o f
another good that is subsequently exported to the territory of Mexico on or after January 1,
2001; or

good subsequently exported to the territory of Canada on or after January 1, 1996, or
substituted by an identical or similar good used as a material in the production of another good
subsequently exported to the territory of Mexico on or after January 1, 2001.
Annex 303.8
Exception to Article 3 0 3 ( 8 )
for Certain Color Cathode-Ray Television Picture Tubes
Mexico
Mexico may refund customs duties paid, or waive or reduce the amount of customs duties
owed, on a good provided for in item 8540.11.aa (color cathode-ray television picture tubes,
including video monitor cathode-ray tubes, with a diagonal exceeding 14 inches) or 8540.11.cc
(color cathode-ray television picture tubes for high definition television, with a diagonal
exceeding 14 inches) for a person who, during the period July 1, 1991 through June 30, 1992,
imported into its territory no fewer than 20,000 units of such good that would not have been
considered to be an originating good had this Agreement been in force during that period,
where the good is:
a) subsequently exported from the territory of Mexico to the territory of the United States, or is
used as a material in the production of another good that is subsequently exported from the
territory of Mexico to the territory of the United States, or is substituted by an identical or
similar good used as a material in the production of another good that is subsequently exported
to the territory of the United States, in an amount, for all such persons combined, no greater
than
(i) 1,200,000 units in 1994,
(ii) 1,000,000 units in 1995,

(iii) 800,000 units in 1996,
(iv) 600,000 units in 1997,
(v) 400,000 units in 1998,
(vi) 200,000 units in 1999, and
(vii) zero units in 2000 and thereafter, provided that the number of units of the good on which
such customs duties may be refunded, waived or reduced in any year shall be reduced, with
respect to that year, by the number of units of such good that qualifies as an originating good
during the year immediately preceding that year, considering operations performed in, or
materials obtained from, the territories of Canada and the United States as if they were
performed in, or obtained from, a non-Party; or
b) subsequently exported from the territory of Mexico to of another good that is subsequently
exported from the territory of Mexico to the territory of Canada, or is substituted by an
identical or similar good used as a material in the production of another good that is
subsequently exported to the territory of Canada, for all such persons combined, in an amount
no greater than
(i) 75,000 units in 1994,
(ii) 50,000 units in 1995, and
(iii) zero units in 1996 and thereafter.
Annex 304.1
Exceptions for Existing Waiver Measures
Article 304(1) shall not apply in respect of existing Mexican waivers of customs duties, except
that Mexico shall not:
a) increase the ratio of customs duties waived to customs duties owed relative to the
performance required under any such waiver; or
b) add any type of imported good to those qualifying on July 1, 1991, in respect of any waiver
of customs duties in effect on that date.
Annex 304.2
Continuation of Existing Waivers of Customs Duties
For purposes of Article 304(2):

a) as between Canada and Mexico, Canada may condition on the fulfillment of a performance
requirement the waiver of customs duties under any measure in effect on or before January 1,
1989, on any goods entered or withdrawn from warehouse for consumption before January 1,
1998;
b) as between Canada and the United States, Article 405 of the Canada-United States Free
Trade Agreement is hereby incorporated and made a part of this Annex solely with respect t o
measures adopted by Canada or the United States prior to the date of entry into force of this
Agreement;
c) Mexico may condition on the fulfillment of a performance requirement the waiver of customs
duties under any measure in effect on July 1, 1991, on any goods entered or withdrawn from
warehouse for consumption before January 1, 2001; and
d) Canada may grant waivers of customs duties as set out in Annex 300-A (Trade and
Investment in the Automotive Sector).
Annex 307.1
Goods Re-Entered after Repair or Alteration
Section A - Canada
Canada may impose customs duties on goods, regardless of their origin, that re-enter its
territory after such goods have been exported from its territory to the territory of another
Party for repair or alteration as follows:
a) for goods set out in Section D that re-enter its territory from the territory of Mexico, Canada
shall apply to the value of the repair or alteration of such goods the rate of customs duty for
such goods applicable under its Schedule to Annex 302.2;
b) for goods other than those set out in Section D that re-enter its territory from the territory
of the United States or Mexico, other than goods repaired or altered pursuant to a warranty,
Canada shall apply to the value of the repair or alteration of such goods the rate of customs
duty for such goods applicable under the Tariff Schedule of Canada attached to Annex 401.2 o f
the Canada United States Free Trade Agreement, as incorporated into Annex 302.2 of this
Agreement; and
c) for goods set out in Section D that re-enter its territory from the territory of the United
States, Canada shall apply to the value of the repair or alteration of such goods the rate o f
customs duty for such goods applicable under its Schedule attached to Annex 401.2 of the
Canada United States Free Trade Agreement , as incorporated into Annex 302.2 of this
Agreement.
Section B - Mexico
Mexico may impose customs duties on goods set out in Section D, regardless of their origin,
that re-enter its territory after such goods have been exported from its territory to the territory
of another Party for repair or alteration, by applying to the value of the repair or alteration o f
those goods the rate of customs duty for such goods that would apply if such goods were
included in staging category B in Mexico's Schedule to Annex 302.2.
1. The United States may impose customs duties on:
a) goods set out in Section D, or
b) goods that are not set out in Section D and that are not repaired or altered pursuant to a
warranty,
regardless of their origin, that reenter its territory after such goods have been exported from
its territory to the territory of Canada for repair or alteration, by applying to the value of the
repair or alteration of such goods the rate of customs duty applicable under the Canada United
States Free Trade Agreement, as incorporated into Annex 302.2 of this Agreement.
2. The United States may impose customs duties on goods set out in Section D, regardless o f
their origin, that reúenter its territory after such goods have been exported from its territory t o
the territory of Mexico for repair or alteration, by applying to the value of the repair or
alteration of such goods a rate of customs duty of 50 percent reduced in five equal annual
stages beginning on January 1, 1994, and the value of such repair or alteration shall be duty-
free on January 1, 1998.
Section D - List of Goods
Any vessel, including the following goods, documented by a Party under its law to engage in
foreign or coastwise trade, or a vessel intended to be employed in such trade:
a) cruise ships, excursion boats, ferryboats, cargo ships, barges and similar vessels for the
transport of persons or goods, including
(i) tankers,
(ii) refrigerated vessels, other than tankers, and
(iii) other vessels for the transport of goods and other vessels for the transport of both persons
and goods, including open vessels;
b) fishing vessels, including factory ships and other vessels for processing or preserving fishery
products of a registered length not exceeding 30.5m;
c) lightvessels, fire-floats, dredgers, floating cranes, and other vessels the navigability of which
is subsidiary to their main function, floating docks, floating or submersible drilling or production
platforms; and drilling ships, drilling barges and floating drilling rigs; and
d) tugboats.
Annex 307.3
Repair and Rebuilding of Vessels
United States
For the purpose of increasing transparency regarding the types of repairs that may be
performed in shipyards outside the territory of the United States that do not result in any loss
of privileges for such vessel to:
(a) remain eligible to engage in coastwise trade or to access U.S. fisheries,
(b) transport U.S. government cargo, or
(c) participate in U.S. assistance programs, including the "operating difference subsidy,"
the United States shall,
(d) provide written clarification no later than July 1, 1993, to the other Parties of current U.S.
Customs and Coast Guard practices that constitute, and differentiate between, the repair and
the rebuilding of vessels, including clarifications with respect to "jumboizing", vessel
conversions and casualty repairs, and
(e) begin a process, no later than the date of entry into force of this Agreement, to define the
terms "repairs" and "rebuilding" under U.S. maritime law, including the Merchant Marine Act o f
1920, 46 App. U.S.C. 883, and the Merchant Marine Act of 1936, 46 App. U.S.C. 1171, 1176,
1241 and 1241(o).
Annex 308.1
Most-Favored-Nation Rates of Duty on

Certain Automatic Data Processing Goods and Their Parts
Section A - General Provisions
1. Each Party shall reduce its most-favored-nation rate of duty applicable to a good provided for
under the tariff provisions set out in Tables 308.1.1 and 308.1.2 in Section B to the rate set
out therein, to the lowest rate agreed by any Party in the Uruguay Round of Multilateral Trade
Negotiations, or to such reduced rate as the Parties may agree, in accordance with the schedule
set out in Section B, or with such accelerated schedule as the Parties may agree.
2. Notwithstanding Chapter Four (Rules of Origin), when the most-favored-nation rate of duty
applicable to a good provided for under the tariff provisions set out in Table 308.1.1 in Section
B conforms with the rate established under paragraph 1, each Party shall consider the good,
when imported into its territory from the territory of another Party, to be an originating good.
3. A Party may reduce in advance of the schedule set out in Table 308.1.1 or Table 3 0 8.1.2 in
Section B, or of such accelerated schedule as the Parties may agree, its most-favored-nation
rate of duty applicable to any good provided for under the tariff provisions set out therein, t o
the lowest rate agreed by any Party in the Uruguay Round of Multilateral Trade Negotiations, or
the rate set out in Table 308.1.1 or 308.1.2, or to such reduced rate as the Parties may agree.
4. For greater certainty, most-favored-nation rate of duty does not include any other
concessionary rate of duty.
Section B - Rates of Duty and Schedule for Reduction
Table 308.1.1
Tariff Rate
Schedule1
Automatic Data Processing
Machines (ADP)
8471.10
3.9%
S
8471.20
3.9%
S
Digital Processing Units
8471.91
3.9%
S
Input or Output Units
Combined Input/Output Units
Canada:
8471.92.10
3.7%
S
Mexico:
8471.92.09
3.7%
S
United States:
8471.92.10
3.7%
S
Display Units:
Canada:
8471.92.32
3.7%
S
8471.92.33
Free
S
8471.92.34
3.7%
S
8471.92.39
3.7%
S
Mexico:
8471.92.10
3.7%
S
8471.92.11
Free
S
United States:
8471.92.30
Free
S
8471.92.40.75
3.7%
S
8471.92.40.85
3.7%
S
Other Input or Output Units:
Canada:
8471.92.40
3.7%
S
8471.92.50
Free
S
8471.92.90
Free
S
Mexico:
8471.92.12
3.7%
S
8471.92.99
Free
S
United States:
8471.92.20
Free
S
8471.92.80
Free
S
8471.92.90.20
Free
S
8471.92.90.40
3.7%
S
8471.92.90.60
Free
S
8471.92.90.80
Free
S
Storage Units
8471.93
Free
S
Other Units of Automatic Data Processing
Machines
8471.99
Free
S
Parts of Computers
8473.30
Free
R
Computer Power Supplies
Canada:
8504.40.40
Free
S
8504.90.80
Free
S
Mexico:
8504.40.12
Free
S
8504.90.08
Free
S
United States:
8504.40.00A
Free
S
8504.40.00B
Free
S
8504.90.00B
Free
S
_______________________________
1
R on the date of entry into force of this Agreement
S in five equal annual stages commencing January 1, 1999.
Table 308.1.2
Tariff Rate
Schedule1
Metal Oxide Varistors
Canada:
8533.40.10
Free
R
Mexico:
8533.40.07
Free
R
United States:
8533.40.00A
Free
R
Diodes, Transistors and Similar
Semiconductor Devices; Photosensitive
Semiconductor Devices; Light Emitting
Diodes; Mounted Piezo-electric Crystals
8541.10
Free
R
8541.21
Free
R
8541.29
Free
R
8541.30
Free
R
8541.50
Free
R
8541.60
Free
R
8541.90
Free
R
Canada:
8541.40
Free
R
Mexico:
8541.40
Free
R
United States:
8541.40.20
Free
S
8541.40.60
Free
R
8541.40.70
Free
R
8541.40.80
Free
R
8541.40.95
Free
R
Electronic Integrated Circuits
and Microassemblies
8542
Free
R
_______________________________
1
R on the date of entry of this Agreement
S in five equal annual stages commencing January 1, 1999.
Annex 308.2
Most-Favored-Nation Rates of Duty

on Certain Color Cathode-Ray Television Picture Tubes
1. Any Party considering the reduction of its most-favored-nation rate of customs duty for
goods provided for in item 8 540.11.aa (color cathode-ray television picture tubes, including
video monitor cathode-ray tubes, with a diagonal exceeding 14 inches) or 8540.11.cc (color
cathode-ray television picture tubes for high definition television, with a diagonal exceeding 1 4
inches) during the first 10 years after the date of entry into force of this Agreement shall
consult with the other Parties in advance of such reduction.
2. If any other Party objects in writing to such reduction, other than a reduction in the Uruguay
Round of Multilateral Trade Negotiations, and the Party proceeds with the reduction, any
objecting Party may raise its applicable rate of duty on originating goods provided for in the
corresponding tariff item set out in its Schedule to Annex 302.2, up to the applicable rate o f
duty as if such good had been placed in staging category C for purpose of tariff elimination.
Annex 308.3
Most-Favored-Nation Duty-Free
Treatment of Local Area Network Apparatus
To facilitate the operation of Article 308(3), the Parties shall consult regarding the tariff
classification of local area network apparatus and shall endeavor to agree, no later than January
1, 1994, on the classification of such goods in each Party's tariff schedule.
Annex 310.1
Existing Customs User Fees
Section A - Mexico
Mexico shall not increase its customs processing fee ("derechos de trímite aduanero") on
originating goods, and shall eliminate such fee on originating goods by June 30, 1999.
Section B - United States
1. The United States shall not increase its merchandise processing fee and shall eliminate such
fee according to the schedule set out in Article 403 of the Canada - United States Free Trade
Agreement on originating goods where those goods qualify to be marked as goods of Canada
pursuant to Annex 311, without regard to whether the goods are marked.
2. The United States shall not increase its merchandise processing fee and shall eliminate such
fee by June 30, 1999, on originating goods where those goods qualify to be marked as goods
of Mexico pursuant to Annex 311, without regard to whether the goods are marked.
Annex 3 1 1
Country of Origin Marking
1. The Parties shall establish by January 1, 1994, rules for determining whether a good is a
good of a Party ("Marking Rules") for purposes of this Annex, Annex 300-B and Annex 302.2,
and for such other purposes as the Parties may agree.
2. Each Party may require that a good of another Party, as determined in accordance with the
Marking Rules, bear a country of origin marking, when imported into its territory, that indicates
to the ultimate purchaser of that good the name of its country of origin.
3. Each Party shall permit the country of origin marking of a good of another Party to be
indicated in English, French or Spanish, except that a Party may, as part of its general consumer
information measures, require that an imported good be marked with its country of origin in the
same manner as prescribed for goods of that Party.
4. Each Party shall, in adopting, maintaining and applying any measure relating to country o f
origin marking, minimize the difficulties, costs and inconveniences that the measure may cause
to the commerce and industry of the other Parties.
5. Each Party shall:

(a) accept any reasonable method of marking of a good of another Party, including the use o f
stickers, labels, tags or paint, that ensures that the marking is conspicuous, legible and
sufficiently permanent;
(b) exempt from a country of origin marking requirement a good of another Party that
(i) is incapable of being marked,
(ii) cannot be marked prior to exportation to the territory of another Party without causing
injury to the goods,
(iii) cannot be marked except at a cost that is substantial in relation to its customs value so as
to discourage its exportation to the territory of the Party,
(iv) cannot be marked without materially impairing its function or substantially detracting from
its appearance,
(v) is in a container that is marked in a manner that will reasonably indicate the good's origin t o
the ultimate purchaser,
(vi) is a crude substance,
(vii) is imported for use by the importer and is not intended for sale in the form in which it was
imported,
(viii) is to undergo production in the territory of the importing Party by the importer, or on its
behalf, in a manner that would result in the good becoming a good of the importing Party under
the Marking Rules,
(ix) by reason of its character, or the circumstances of its importation, the ultimate purchaser
would reasonably know its country of origin even though it is not marked,
(x) was produced more than 20 years prior to its importation,
(xi) was imported without the required marking and cannot be marked after its importation
except at a cost that would be substantial in relation to its customs value, provided that the
failure to mark the good before importation was not for the purpose of avoiding compliance
with the requirement,
(xii) for purposes of temporary duty-free admission, is in transit or in bond or otherwise under
customs administration control,
(xiii) is an original work of art, or
(xiv) is provided for in subheading 6904.10, or heading 8541 or 8542.
6. Except for a good described in subparagraphs 5(b)(vi), (vii), (viii), (ix), (x), (xii), (xiii) and
(xiv), a Party may provide that, wherever a good is exempted under subparagraph 5(b), its
outermost usual container shall be marked so as to indicate the country of origin of the good i t
contains.
7. Each Party shall provide that:
(a) a usual container imported empty, whether or not disposable, shall not be required to be
marked with its own country of origin, but the container in which it is imported may be required
to be marked with the country of origin of its contents; and
(b) a usual container imported filled, whether or not disposable,
(i) shall not be required to be marked with its own country of origin, but
(ii) may be required to be marked with the country of origin of its contents, unless the contents
are marked with their country of origin and the container can be readily opened for inspection o f
the contents, or the marking of the contents is clearly visible through the container.
8. Each Party shall, wherever administratively practicable, permit an importer to mark a good o f
a Party subsequent to importation but prior to release of the good from customs control or
custody, unless there have been repeated violations of the country of origin marking
requirements of the Party by the same importer and that importer has been previously notified
in writing that such good is required to be marked prior to importation.
9. Each Party shall provide that, except with respect to importers that have been notified under
paragraph 8, no special duty or penalty shall be imposed for failure to comply with country o f
origin marking requirements of that Party, unless the good is removed from customs custody or
control without being properly marked, or a deceptive marking has been used.
10. The Parties shall cooperate and consult on matters related to this Annex, including
additional exemptions from a country of origin marking requirement, in accordance with Article
513 (Customs Procedures - Working Group and Customs Subgroup).
11. For purposes of this Annex:
conspicuous means capable of being easily seen with normal handling of the good or container;
customs value means the value of a good for purposes of levying duties of customs on an
imported good;
legible means capable of being easily read;
sufficiently permanent means capable of remaining in place until the good reaches the ultimate
purchaser, unless deliberately removed;
the form in which it was imported means the condition of the good before it has undergone one
of the changes in tariff classification described in the Marking Rules;
ultimate purchaser means the last person in the territory of an importing Party that purchases
the good in the form in which it was imported; such purchaser need not be the last person that
will use the good; and
usual container means the container in which a good will ordinarily reach its ultimate purchaser.
Annex 312.2
Wine and Distilled Spirits
Section A - Canada and the United States
As between Canada and the United States, any measure related to the internal sale and
distribution of wine and distilled spirits, other than a measure covered by Article 312(1) or 313,
shall be governed under this Agreement exclusively in accordance with the relevant provisions
of the Canada - United States Free Trade Agreement, which for this purpose are hereby
incorporated into and made a part of this Agreement.
Section B - Canada and Mexico
As between Canada and Mexico:
1. Except as provided in paragraphs 3 through 6, in respect of any measure related to the

internal sale and distribution of wine and distilled spirits, Article 301 shall not apply to:
(a) a non-conforming provision of any existing measure;
(b) the continuation or prompt renewal of a non-conforming provision of any existing measure;
or
(c) an amendment to a non-conforming provision of any existing measure to the extent that the
amendment does not decrease its conformity with Article 301.
2. The Party asserting that paragraph 1 applies to one of its measures shall have the burden o f
establishing the validity of such assertion.
3.(a) Any measure related to the listing of wine and distilled spirits of the other Party shall:
(i) conform with Article 301,
(ii) be transparent, non-discriminatory and provide for prompt decision on any listing application,
prompt written notification of such decision to the applicant and, in the case of a negative
decision, provide for a statement of the reason for refusal,
(iii) establish administrative appeal procedures for listing decisions that provide for prompt, fair
and objective rulings,
(iv) be based on normal commercial considerations,

(v) not create disguised barriers to trade, and
(vi) be published and made generally available to persons of the other Party.
(b) Notwithstanding paragraph 3(a) and Article 301, and provided that listing measures o f
British Columbia otherwise conform with paragraph 3(a) and Article 301, automatic listing
measures in the province of British Columbia may be maintained provided they apply only t o
existing estate wineries producing less than 30,000 gallons of wine annually and meeting the
existing content rule.
4.(a) Where the distributor is a public entity, the entity may charge the actual cost-of-service
differential between wine or distilled spirits of the other Party and domestic wine or distilled
spirits. Any such differential shall not exceed the actual amount by which the audited cost o f
service for the wine or distilled spirits of the exporting Party exceeds the audited cost of service
for the wine or distilled spirits of the importing Party.
(b) Notwithstanding Article 301, Article I (Definitions) except for the definition of "distilled
spirits", Article IV.3 (Wine), and Annexes A, B, and C, of the Agreement between Canada and
the European Economic Community concerning Trade and Commerce in Alcoholic Beverages,
dated February 28, 1989, shall apply with such changes as the circumstances may require.
(c) All discriminatory mark-ups on distilled spirits shall be

eliminated immediately on the date of entry into force of this Agreement. Cost-of-service
differential mark-ups as described in subparagraph (a) shall be permitted.
(d) Any other discriminatory pricing measure shall be eliminated on the date of entry into force
of this Agreement.
5.(a) Any measure related to distribution of wine or distilled spirits of the other Party shall
conform with Article 301.
(b) Notwithstanding subparagraph (a), and provided that distribution measures otherwise
ensure conformity with Article 301, a Party may
(i) maintain or introduce a measure limiting on-premise sales by a winery or distillery to those
wines or distilled spirits produced on its premises, and
(ii) maintain a measure requiring existing private wine store outlets in the provinces of Ontario
and British Columbia to discriminate in favor of wine of those provinces to a degree no greater
than the discrimination required by such existing measure.
(c) Nothing in this Agreement shall prohibit the Province of Quebec from requiring that any wine
sold in grocery stores in Quebec be bottled in Quebec, provided that alternative outlets are
provided in Quebec for the sale of wine of the other Party, whether or not such wine is bottled
in Quebec.
6. Unless otherwise specifically provided in this Annex, the Parties retain their rights and
obligations under the GATT and agreements negotiated under the GATT.
7. For purposes of this Annex:
wine includes wine and wine-containing beverages.
Annex 3 1 3
Distinctive Products
1. Canada and Mexico shall recognize Bourbon Whiskey and Tennessee Whiskey, which is a
straight Bourbon Whiskey authorized to be produced only in the State of Tennessee, as
distinctive products of the United States. Accordingly, Canada and Mexico shall not permit the
sale of any product as Bourbon Whiskey or Tennessee Whiskey, unless it has been manufactured
in the United States in accordance with the laws and regulations of the United States governing
the manufacture of Bourbon Whiskey and Tennessee Whiskey.
2. Mexico and the United States shall recognize Canadian Whisky as a distinctive product o f
Canada. Accordingly, Mexico and the United States shall not permit the sale of any product as
Canadian Whisky, unless it has been manufactured in Canada in accordance with the laws and
regulations of Canada governing the manufacture of Canadian Whisky for consumption in
Canada.
3. Canada and the United States shall recognize Tequila and Mezcal as distinctive products o f
Mexico. Accordingly, Canada and the United States shall not permit the sale of any product as
Tequila or Mezcal, unless it has been manufactured in Mexico in accordance with the laws and
regulations of Mexico governing the manufacture of Tequila and Mezcal. This provision shall
apply to Mezcal, either on the date of entry into force of this Agreement, or 90 days after the
date when the official standard for this product is made obligatory by the Government o f
Mexico, whichever is later.
Annex 3 1 4
Export Taxes
Mexico
1. Mexico may adopt or maintain a duty, tax or other charge on the export of those basic
foodstuffs set out in paragraph 4, on their ingredients or on the goods from which such
foodstuffs are derived, if such duty, tax or other charge is adopted or maintained on the export
of such goods to the territory of all other Parties, and is used:
(a) to limit to domestic consumers the benefits of a domestic food assistance program with
respect to such foodstuff; or
(b) to ensure the availability of sufficient quantities of such foodstuff to domestic consumers or
of sufficient quantities of its ingredients, or of the goods from which such foodstuffs are
derived, to a domestic processing industry, when the domestic price of such foodstuff is held
below the world price as part of a governmental stabilization plan, provided that such duty, tax,
or other charge
(i) does not operate to increase the protection afforded to such

domestic industry, and
(ii) is maintained only for such period of time as is necessary to maintain the integrity of the
stabilization plan.
2. Notwithstanding paragraph 1, Mexico may adopt or maintain a duty, tax or other charge on
the export of any foodstuff to the territory of another Party if such duty, tax or other charge is
temporarily applied to relieve critical shortages of that foodstuff. For purposes of this
paragraph, "temporarily" means up to one year, or such longer period as the Parties may agree.
3. Mexico may maintain its existing tax on the export of goods provided for under tariff item
4001.30.02 of the Tariff Schedule of the General Export Duty Act ("Tarifa de la Ley del
Impuesto General de Exportación") for up to 10 years after the date of entry into force of this
Agreement.
4. For purposes of paragraph 1, "basic foodstuffs" means:
Beans
Beef steak or pulp
Beef liver
Beef remnants and bones ("retazo con hueso")
Beer
Bread
Brown sugar
Canned sardines
Canned tuna
Canned peppers
Chicken broth
Condensed milk
Cooked ham
Corn tortillas
Corn flour
Corn dough
Crackers
Eggs
Evaporated milk
French rolls ("pan blanco")
Gelatine
Ground beef
Instant coffee
Low-priced cookies ("galletas dulces populares")
Margarine
Oat flakes
Pasteurized milk
Powdered chocolate
Powdered milk for children
Powdered milk
Rice
Roasted coffee
Salt
Soft drinks
Soup paste
Tomato puree
Vegetable oil
Vegetable f a t
Wheat flour
White sugar
Annex 3 1 5
Other Export Measures
Article 3 1 5 shall not apply as between Mexico and the other Parties.
Chapter Four: Rules of Origin
Article 401: Originating Goods
Except as otherwise provided in this Chapter, a good shall originate in the territory of a Party
where:
a) the good is wholly obtained or produced entirely in the territory of one or more of the
Parties, as defined in Article 415;
b) each of the non-originating materials used in the production of the good undergoes an
applicable change in tariff classification set out in Annex 401 as a result of production occurring
entirely in the territory of one or more of the Parties, or the good otherwise satisfies the
applicable requirements of that Annex where no change in tariff classification is required, and
the good satisfies all other applicable requirements of this Chapter;
c) the good is produced entirely in the territory of one or more of the Parties exclusively from
originating materials; or
d) except for a good provided for in Chapters 61 through 63 of the Harmonized System, the
good is produced entirely in the territory of one or more of the Parties but one or more of the
non-originating materials provided for as parts under the Harmonized System that are used in
the production of the good does not undergo a change in tariff classification because
(i) the good was imported into the territory of a Party in an unassembled or a disassembled
form but was classified as an assembled good pursuant to General Rule of Interpretation 2(a) o f
the Harmonized System, or
(ii) the heading f or the good provides for and specifically describes both the good itself and its
parts and is not further subdivided into subheadings, or the subheading for the good provides
for and specifically describes both the good itself and its parts,
provided that the regional value content of the good, determined in accordance with Article
402, is not less than 60 percent where the transaction value method is used, or is not less than
50 percent where the net cost method is used, and that the good satisfies all other applicable
requirements of this Chapter.
Article 402: Regional Value Content
1. Except as provided in paragraph 5, each Party shall provide that the regional value content o f
a good shall be calculated, at the choice of the exporter or producer of the good, on the basis
of either the transaction value method set out in paragraph 2 or the net cost method set out in
paragraph 3.
2. Each Party shall provide that an exporter or producer may calculate the regional value
content of a good on the basis of the following transaction value method:
RVC
=
TV ú VNM
---------------
TV
x 100
where
RVC
is the regional value content, expressed as a percentage;
TV
is the transaction value of the good adjusted to a F.O.B. basis; and
VNM
is the value of non-originating materials used by the producer in the production of the good.
3. Each Party shall provide that an exporter or producer may calculate the regional value
content of a good on the basis of the following net cost method:
RVC
=
NC ú VNM
---------------
NC
x 100
where
RVC
is the regional value content, expressed as a percentage;
NC
is the net cost of the good; and
VNM
is the value of non-originating materials used by the producer in the production of the good.
4. Except as provided in Article 403(1) and for a motor vehicle identified in Article 403(2) or a
component identified in Annex 403.2, the value of non-originating materials used by the
producer in the production of a good shall not, for purposes of calculating the regional value
content of the good under paragraph 2 or 3, include the value of nonoriginating materials used
to produce originating materials that are subsequently used in the production of the good.
5. Each Party shall provide that an exporter or producer shall calculate the regional value
content of a good solely on the basis of the net cost method set out in paragraph 3 where:
a) there is no transaction value for the good;
b) the transaction value of the good is unacceptable under Article 1 of the Customs Valuation
Code;
c) the good is sold by the producer to a related person and the volume, by units of quantity, o f
sales of identical or similar goods to related persons during the six-month period immediately
preceding the month in which the good is sold exceeds 85 percent of the producer's total sales
of such goods during that period;
d) the good is
(i) a motor vehicle provided for in heading 87.01 or 87.02, subheading 8703.21 through
8703.90, or heading 87.04, 87.05 or 87.06,
(ii) identified in Annex 403.1 or 403.2 and is for use in a motor vehicle provided for in heading
87.01 or 87.02, subheading 8703.21 through 8703.90, or heading 87.04, 87.05 or 87.06,
(iii) provided for in subheading 6401.10 through 6406.10, or
(iv) provided for in tariff item 8469.10.aa (word processing machines);
e) the exporter or producer chooses to accumulate the regional value content of the good in
accordance with Article 404; or
f) the good is designated as an intermediate material under paragraph 10 and is subject to a

regional value-content requirement.
6. If an exporter or producer of a good calculates the regional value-content of the good on the
basis of the transaction value method set out in paragraph 2 and a Party subsequently notifies
the exporter or producer, during the course of a verification pursuant to Chapter Five (Customs
Procedures), that the transaction value of the good, or the value of any material used in the
production of the good, is required to be adjusted or is unacceptable under Article 1 of the
Customs Valuation Code, the exporter or producer may then also calculate the regional value
content of the good on the basis of the net cost method set out in paragraph 3.
7. Nothing in paragraph 6 shall be construed to prevent any review or appeal available under
Article 510 (Review and Appeal) of an adjustment to or a rejection of:
a) the transaction value of a good; or
b) the value of any material used in the production of a good.
8. For purposes of calculating the net cost of a good under paragraph 3, the producer of the
good may:
a) calculate the total cost incurred with respect to all goods produced by that producer,
subtract any sales promotion, marketing and aftersales service costs, royalties, shipping and
packing costs, and non-allowable interest costs that are included in the total cost of all such
goods, and then reasonably allocate the resulting net cost of those goods to the good,
b) calculate the total cost incurred with respect to all goods produced by that producer,
reasonably allocate the total cost to the good, and then subtract any sales promotion,
marketing and aftersales service costs, royalties, shipping and packing costs and non allowable
interest costs that are included in the portion of the total cost allocated to the good, or
c) reasonably allocate each cost that forms part of the total cost incurred with respect to the
good so that the aggregate of these costs does not include any sales promotion, marketing and
aftersales service costs, royalties, shipping and packing costs, and non-allowable interest costs,
provided that the allocation of all such costs is consistent with the provisions regarding the
reasonable allocation of costs set out in the Uniform Regulations, established under Article 5 1 1
(Customs Procedures Uniform Regulations).
9. Except as provided in paragraph 11, the value of a material used in the production of a good
shall:
a) be the transaction value of the material determined in accordance with Article 1 of the
Customs Valuation Code; or
b) in the event that there is no transaction value or the transaction value of the material is
unacceptable under Article 1 of the Customs Valuation Code, be determined in accordance with
Articles 2 through 7 of the Customs Valuation Code; and
c) where not included under subparagraph (a) or (b), include
(i) freight, insurance, packing and all other costs incurred in transporting the material to the
location of the producer,
(ii) duties, taxes and customs brokerage fees on the material paid in the territory of one or
more of the Parties, and
(iii) the cost of waste and spoilage resulting from the use of the material in the production o f
the good, less the value of renewable scrap or byproduct.
10. Except as provided in Article 403(1), any self-produced material, other than a componenet
identified in Annex 403.2, that is used in the production of a good may be designated by the
producer of the good as an intermediate material for the purpose of calculating the regional
value content of the good under paragraph 2 or 3, provided that where the intermediate
material is subject to a regional value-content requirement used in the production of that
intermediate material may itself be designated by the producer as an intermediate material.
11. The value of an intermediate material shall be:
a) the total cost incurred with respect to all goods produced by the producer of the good that
can be reasonably allocated to that intermediate material; or
b) the aggregate of each cost that forms part of the total cost incurred with respect to that
intermediate material that can be reasonably allocated to that intermediate material.
12. The value of an indirect material shall be based on the Generally Accepted Accounting
Principles applicable in the territory of the Party in which the good is produced.
Article 403: Automotive Goods
1. For purposes of calculating the regional value content under the net cost method set out in
Article 402(3) for:
a) a good that is a motor vehicle provided for in tariff item 8702.10.bb or 8702.90.bb (vehicles
for the transport of 15 or fewer persons), or subheading 8703.21 through 8703.90, 8704.21
or 8704.31, or
b) a good provided for in the tariff provisions listed in Annex 403.1 where the good is subject
to a regional value-content requirement and is for use as original equipment in the production o f
a good provided for in tariff item 8702.10.bb or 8702.90.bb (vehicles for the transport of 15
or fewer persons), or subheading 8702.xx, 8703.21 through 8703.90, 8704.21 or 8704.31,
the value of non-originating materials used by the producer in the production of the good shall
be the sum of the values of non-originating materials, determined in accordance with Article
402(9) at the time the non-originating materials are received by the first person in the territory
of a Party who takes title to them, that are imported from outside the territories of the Parties
under the tariff provisions listed in Annex 403.1 and that are used in the production of the
good or that are used in the production of any material used in the production of the good.
2. For purposes of calculating the regional value content under the net cost method set out in
Article 402(3) for a good that is a motor vehicle provided for in heading 87.01, tariff item
8702.10.aa or 8702.90.aa (vehicles for the transport of 16 or more persons), subheading
8704.10, 8704.22, 8704.23, 8704.32 or 8704.90, or heading 87.05 or 87.06, or for a
component identified in Annex 403.2 for use as original equipment in the production of the
motor vehicle, the value of non-originating materials used by the producer in the production o f
the good shall be the sum of:
a) for each material used by the producer listed in Annex 403.2, whether or not produced by
the producer, at the choice of the producer and determined in accordance with Article 402,
either
(i) the value of such material that is non originating, or
(ii) the value of non-originating materials used in the production of such material; and
b) the value of any other non-originating material used by the producer that is not listed in
Annex 403.2, determined in accordance with Article 402.
3. For purposes of calculating the regional value content of a motor vehicle identified in
paragraph 1 or 2, the producer may average its calculation over its fiscal year, using any one o f
the following categories, on the basis of either all motor vehicles in the category or only those
motor vehicles in the category that are exported to the territory of one or more of the other
Parties:
a) the same model line of motor vehicles in the same class of vehicles produced in the same
plant in the territory of a Party;
b) the same class of motor vehicles produced in the same plant in the territory of a Party;
c) the same model line of motor vehicles produced in the territory of a Party; or
d) if applicable, the basis set out in Annex 403.3.
4. For purposes of calculating the regional value content for any or all goods provided for in a
tariff provision listed in Annex 403.1, or a component or material identified in Annex 403.2,
produced in the same plant, the producer of the good may:
a) average its calculation
(i) over the fiscal year of the motor vehicle producer to whom the good is sold,
(ii) over any quarter or month, or
(iii) over its fiscal year, if the good is sold as an aftermarket part;
b) calculate the average referred to in subparagraph (a) separately for any or all goods sold t o
one or more motor vehicle producers; or
c) with respect to any calculation under this paragraph, calculate separately those goods that
are exported to the territory of one or more of the Parties.
5. Notwithstanding Annex 401, and except as provided in paragraph 6, the regional value-
content requirement shall be:
a) for a producer's fiscal year beginning on the day closest to January 1, 1998 and thereafter,
56 percent under the net cost method, and for a producer's fiscal year beginning on the day
closest to January 1, 2002 and thereafter, 62.5 percent under the net cost method, for
(i) a good that is a motor vehicle provided for in tariff item 8702.10.bb or 8702.90.bb
(vehicles for the transport of 15 or fewer persons), or subheading 8703.21 through 8703.90,
8704.21 or 8704.31, and
(ii) a good provided for in heading 84.07 or 84.08, or subheading 8 7 08.40, that is for use in a
motor vehicle identified in subparagraph (a)(i); and
b) for a producer's fiscal year beginning on the day closest to January 1, 1998 and thereafter,
55 percent under the net cost method, and for a producer's fiscal year beginning on the day
closest to January 1, 2002 and thereafter, 60 percent under the net cost method, for
(i) a good that is a motor vehicle provided for in a tariff item 8702.10.aa or 8702.90.aa
(vehicles for the transport of 15 or fewer persons), or subheading 8703.21 through 8703.21
through 8703.90, 8704.21 or 8704.31, and
(ii) a good provided for in heading 84.07 or 84.08 or subheading 8708.40 that is for use in a
motor vehicle identified in subparagraph (b)(i), and
(iii) except for a good identified in subparagraph (a)(ii) or provided for in subheading 8482.10
through 8482.80, 8483.20 or 8483.30, a good identified in Annex 403.1 that is subject to a
regional value content requirement and that is for use in a motor vehicle identified in
subparagraphs (a)(i) or (b)(i).
6. The regional value-content requirement for a motor vehicle identified in Article 403(1) or
403(2) shall be:
a) 50 percent for five years after the date on which the first motor vehicle prototype is
produced in a plant by a motor vehicle assembler, i f
(i) it is a motor vehicle of a class, or marque, or, except for a motor vehicle identified in Article
403(2), size category and underbody, not previously produced by the motor vehicle assembler
in the territory of any of the Parties,
(ii) the plant consists of a new building in which the motor vehicle is assembled, and
(iii) the plant contains substantially all new machinery that is used in the assembly of the motor
vehicle; or
b) 50 percent for two years after the date on which the first motor vehicle prototype is
produced at a plant following a refit, if it is a different motor vehicle of a class, or marque, or,
except for a motor vehicle identified in Article 403(2), size category and underbody, than was
assembled by the motor vehicle assembler in the plant before the refit.
Article 404: Accumulation
1. For purposes of determining whether a good is an originating good, the production of the
good in the territory of one or more of the Parties by one or more producers shall, at the choice
of the exporter or producer of the good for which preferential tariff treatment is claimed, be
considered to have been performed in the territory of any of the Parties by that exporter or
producer, provided that:
a) all non-originating materials used in the production of the good undergo an applicable tariff
classification change set out in Annex 401, and the good satisfies any applicable regional value-
content requirement, entirely in the territory of one or more of the Parties; and
b) the good satisfies all other applicable requirements of this Chapter.
2. For purposes of Article 402(10), the production of a producer that chooses to accumulate
its production with that of other producers under paragraph 1 shall be considered to be the
production of a single producer.
Article 405: De Minimis
1. Except as provided in paragraphs 3 through 6, a good shall be considered to be an originating

good if the value of all non-originating materials used in the production of the good that do not
undergo an applicable change in tariff classification set out in Annex 401 is not more than
seven percent of the transaction value of the good, adjusted to a F.O.B. basis, or, if the
transaction value of the good is unacceptable under Article 1 of the Customs Valuation Code,
the value of all such non-originating materials is not more than seven percent of the total cost
of the good, provided that:
a) if the good is subject to a regional value-content requirement, the value of such non-
originating materials shall be taken into account in calculating the regional value content of the
good; and
b) the good satisfies all other applicable requirements of this Chapter.
2. A good that is otherwise subject to a regional value-content requirement shall not be

required to satisfy such requirement if the value of all non-originating materials used in the
production of the good is not more than seven percent of the transaction value of the good,
adjusted to a F.O.B. basis, or, if the transaction value of the good is unacceptable under Article
1 of the Customs Valuation Code, the value of all non-originating materials is not more than
seven percent of the total cost of the good, provided that the good satisfies all other applicable
requirements of this Chapter.
3. Paragraph 1 does not apply to:

a) a non-originating material provided for in Chapter 4 of the Harmonized System or tariff item
1901.90.aa (dairy preparations containing over 10 percent by weight of milk solids) that is
used in the production of a good provided for in Chapter 4 of the Harmonized System;
b) a non-originating material provided for in Chapter 4 of the Harmonized System or tariff item
1901.90.aa (dairy preparations containing over 10 percent by weight of milk solids) that is
used in the production of a good provided for in tariff item 1901.10.aa (infant preparations
containing over 10 percent by weight of milk solids), 1901.20.aa (mixes and doughs, containing
over 25 percent by weight of butterfat, not put up for retail sale), 1901.90.aa (dairy
preparations containing over 10 percent by weight of milk solids), heading 21.05, or tariff item
2106.90.dd (preparations containing over 10 percent by weight of milk solids), 2202.90.cc
(beverages containing milk) or 2309.90.aa (animal feeds containing over 10 percent by weight
of milk solids);
c) a non-originating material provided for in heading 08.05 or subheading 2009.11 through

2009.30 that is used in the production of a good provided for in subheading 2009.11 through
2009.30 or tariff item 2106.90.bb (concentrated fruit or vegetable juice of any single fruit or
vegetable, fortified with minerals or vitamins) or 2202.90.aa (fruit or vegetable juice of any
single fruit or vegetable, fortified with minerals or vitamins);
d) a non-originating material provided for in Chapter 9 of the Harmonized System that is used in
the production of a good provided for in tariff item 2101.10.aa (instant coffee, not flavored);
e) a non-originating material provided for in Chapter 15 of the Harmonized System that is used
in the production of a good provided for in heading 15.01 through 15.08, 15.12, 15.14 or
15.15;
f) a non-originating material provided for in heading 17.01 that is used in the production of a
good provided for in heading 17.01 through 17.03;
g) a non-originating material provided for in Chapter 17 of the Harmonized System or heading

18.05 that is used in the production of a good provided for in subheading 1806.10;
h) a non-originating material provided for in heading 22.03 through 22.08 that is used in the
production of a good provided for in heading 22.07 through 22.08;
(i) a non-originating material used in the production of a good provided for in tariff item
7321.11.aa (gas stove or range), subheading 8415.10, 8415.81 through 8415.83, 8418.10
through 8418.21, 8418.29 through 8418.40, 8421.12, 8422.11, 8450.11 through 8450.20
or 8451.21 through 8451.29, Mexican tariff item 8479.82.aa (trash compactors) or Canadian
or U.S. tariff item 8479.89.aa (trash compactors), or tariff item 8516.60.aa (electric stove or
range); and
(j) a printed circuit assembly that is a non-originating material used in the production of a good
where the applicable change in tariff classification for the good, as set out in Annex 401, places
restrictions on the use of such non-originating material.
4. Paragraph 1 does not apply to a non-originating single juice ingredient provided for in heading
20.09 that is used in the production of a good provided for in subheading 2009.90, or tariff
item 2106.90.cc (concentrated mixtures of fruit or vegetable juice, fortified with minerals or
vitamins) or 2202.90.bb (mixtures of fruit or vegetable juices, fortified with minerals or
vitamins).
5. Paragraph 1 does not apply to a non-originating material used in the production of a good
provided for in Chapter 1 through 27 of the Harmonized System unless the non-originating
material is provided for in a different subheading than the good for which origin is being
determined under this Article.
6. A good provided for in Chapter 50 through 6 3 of the Harmonized System that does not
originate because certain fibers or yarns used in the production of the component of the good
that determines the tariff classification of the good do not undergo an applicable change in
tariff classification set out in Annex 401, shall nonetheless be considered to originate if the
total weight of all such fibers or yarns in that component is not more than seven percent of the
total weight of that component.
Article 406: Fungible Goods and Materials
For purposes of determining whether a good is an originating good:
a) where originating and non-originating fungible materials are used in the production of a good,
the determination of whether the materials are originating need not be made through the
identification of any specific fungible material, but may be determined on the basis of any of the
inventory management methods set out in the Uniform Regulations; and
b) where originating and non-originating fungible goods are commingled and exported in the
same form, the determination may be made on the basis of any of the inventory management
methods set out in the Uniform Regulations.
Article 407: Accessories, Spare Parts and Tools
Accessories, spare parts or tools delivered with the good that form part of the good's standard
accessories, spare parts, or tools, shall be considered as originating if the good originates and
shall be disregarded in determining whether all the nonúoriginating materials used in the
production of the good undergo the applicable change in tariff classification set out in Annex
401, provided that:
a) the accessories, spare parts or tools are not invoiced separately from the good;
b) the quantities and value of the accessories, spare parts or tools are customary for the good;
and
c) if the good is subject to a regional value-content requirement, the value of the accessories,
spare parts or tools shall be taken into account as originating or non-originating materials, as
the case may be, in calculating the regional value content of the good.
Article 408: Indirect Materials
An indirect material shall be considered to be an originating material without regard to where i t

is produced.
Article 409: Packaging Materials and Containers for Retail Sale
Packaging materials and containers in which a good is packaged for retail sale shall, if classified
with the good, be disregarded in determining whether all the nonoriginating materials used in
the production of the good undergo the applicable change in tariff classification set out in
Annex 401, and, if the good is subject to a regional valuecontent requirement, the value of such
packaging materials and containers shall be taken into account as originating or non originating
materials, as the case may be, in calculating the regional value content of the good.
Article 410: Packing Materials and Containers for Shipment
Packing materials and containers in which the good is packed for shipment shall be disregarded
in determining whether:
a) the nonoriginating materials used in the production of the good undergo an applicable change
in tariff classification set out in Annex 401; and
b) the good satisfies a regional valuecontent requirement.
Article 411: Trans-shipment
A good shall not be considered to be an originating good by reason of having undergone

production that satisfies the requirements of Article 401 if, subsequent to that production, the
good undergoes further production or any other operation outside the territories of the Parties,
other than unloading, reloading or any other operation necessary to preserve it in good
condition or to transport the good to the territory of a Party.
Article 412: NonQualifying Operations
A good shall not be considered to be an originating good merely by reason of:
a) mere dilution with water or another substance that does not materially alter the
characteristics of the good; or
(b) any production or pricing practice in respect of which it may be demonstrated, on the basis
of a preponderance of evidence, that the object was to circumvent this Chapter.
Article 413: Interpretation and Application
a) the basis for tariff classification in this Chapter is the Harmonized System;
b) where a good referred to by a tariff item number is described in parentheses following the
tariff item number, the description is provided for purposes of reference only;
c) where applying Article 401(d), the determination of whether a heading or subheading under
the Harmonized System provides for and specifically describes both a good and its parts shall
be made on the basis of the nomenclature of the heading or subheading, or the General Rules o f
Interpretation, the Chapter Notes or the Section Notes of the Harmonized System;
d) in applying the Customs Valuation Code under this Chapter,
(i) the principles of the Customs Valuation Code shall apply to domestic transactions, with such
modifications as may be required by the circumstances, as would apply to international
transactions,
(ii) the provisions of this Chapter shall take precedence over the Customs Valuation Code to the
extent of any difference, and (iii) the definitions in Article 415 shall take precedence over the
definitions in the Customs Valuation Code to the extent of any difference; and
e) all costs referred to in this Chapter shall be recorded and maintained in accordance with the
Generally Accepted Accounting Principles applicable in the territory of the Party in which the
good is produced.
Article 414: Consultation and Modifications
1. The Parties shall consult regularly to ensure that this Chapter is administered effectively,
uniformly and consistently with the spirit and objectives of this Agreement, and shall cooperate
in the administration of this Chapter in accordance with Chapter Five.
2. Any Party that considers that this Chapter requires modification to take into account
developments in production processes or other matters may submit a proposed modification
along with supporting rationale and any studies to the other Parties for consideration and any
appropriate action under Chapter Five.
class of motor vehicles means any one of the following categories of motor vehicles:
a) motor vehicles provided for in subheading 8701.20, tariff item 8702.10.aa or 8702.90.aa
(vehicles for the transport of 16 or more persons), subheading 8704.10, 8704.22, 8704.23,
8704.32 or 8704.90, or heading 87.05 and 87.06;
b) motor vehicles provided for in subheading 8701.10 or 8701.30 through 8701.90;
c) motor vehicles provided for in tariff item 8702.10.bb or 8702.90.bb (vehicles for the
transport of 15 or fewer persons), or subheading 8704.21 and 8704.31; or
d) motor vehicles provided for in subheading 8703.21 through 8703.90;
F.O.B. means free on board, regardless of the mode of transportation, at the point of direct
shipment by the seller to the buyer;
fungible goods or fungible materials means goods or materials that are interchangeable for
commercial purposes and whose properties are essentially identical;
goods wholly obtained or produced entirely in the territory of one or more of the Parties means:
a) mineral goods extracted in the territory of one or more of the Parties;
b) vegetable goods, as such goods are defined in the Harmonized System, harvested in the
territory of one or more of the Parties;
c) live animals born and raised in the territory of one or more of the Parties;
d) goods obtained from hunting, trapping or fishing in the territory of one or more of the
Parties;
e) goods (fish, shellfish and other marine life) taken from the sea by vessels registered or
recorded with a Party and flying its flag;
f) goods produced on board factory ships from the goods referred to in subparagraph (e)
provided such factory ships are registered or recorded with that Party and fly its flag;
g) goods taken by a Party or a person of a Party from the seabed or beneath the seabed
outside territorial waters, provided that a Party has rights to exploit such seabed;
h) goods taken from outer space, provided they are obtained by a Party or a person of a Party
and not processed in a nonParty;
(i) waste and scrap derived from
(i) production in the territory of one or more of the Parties, or
(ii) used goods collected in the territory of one or more of the Parties, provided such goods are
fit only for the recovery of raw materials; and
(j) goods produced in the territory of one or more of the Parties exclusively from goods referred
to in subparagraphs (a) through (i), or from their derivatives, at any stage of production;
identical or similar goods means "identical goods" and "similar goods", respectively, as defined
in the Customs Valuation Code;
indirect material means a good used in the production, testing or inspection of a good but not
physically incorporated into the good, or a good used in the maintenance of buildings or the
operation of equipment associated with the production of a good, including:
a) fuel and energy;
b) tools, dies and molds;
c) spare parts and materials used in the maintenance of equipment and buildings;
d) lubricants, greases, compounding materials and other materials used in production or used t o
operate equipment and buildings;
e) gloves, glasses, footwear, clothing, safety equipment and supplies;
f) equipment, devices, and supplies used for testing or inspecting the goods;
g) catalysts and solvents; and
h) any other goods that are not incorporated into the good but whose use in the production o f
the good can reasonably be demonstrated to be a part of that production;
intermediate material means a material that is self-produced and used in the production of a
good, and designated pursuant to Article 402(10);
marque means the trade name used by a separate marketing division of a motor vehicle
assembler;
material means a good that is used in the production of another good, and includes a part or an
ingredient;
model line means a group of motor vehicles having the same platform or model name;
motor vehicle assembler means a producer of motor vehicles and any related persons or joint
ventures in which the producer participates;
new building means a new construction, including at least the pouring or construction of new
foundation and floor, the erection of a new structure and roof, and installation of new plumbing,
electrical and other utilities to house a complete vehicle assembly process;
net cost means total cost minus sales promotion, marketing and aftersales service costs,
royalties, shipping and packing costs, and nonallowable interest costs that are included in the
total cost;
net cost of a good means the net cost that can be reasonably allocated to a good using one o f
the methods set out in Article 402(8);
non-allowable interest costs means interest costs incurred by a producer that exceed 700 basis
points above the applicable federal government interest rate identified in the Uniform
Regulations for comparable maturities;
non-originating good or non-originating material means a good or material that does not qualify
as originating under this Chapter;
producer means a person who grows, mines, harvests, fishes, traps, hunts, manufactures,
processes or assembles a good;
production means growing, mining, harvesting, fishing, trapping, hunting, manufacturing,

processing or assembling a good;
reasonably allocate means to apportion in a manner appropriate to the circumstances;
refit means a plant closure, for purposes of plant conversion or retooling, that lasts at least
three months;
related person means a person related to another person on the basis that:
a) they are officers or directors of one another's businesses;
b) they are legally recognized partners in business;
c) they are employer and employee;
d) any person directly or indirectly owns, controls or holds 25 percent or more of the
outstanding voting stock or shares of each of them;
e) one of them directly or indirectly controls the other;
f) both of them are directly or indirectly controlled by a third person; or
g) they are members of the same family (members of the same family are natural or adoptive
children, brothers, sisters, parents, grandparents, or spouses);
royalties means payments of any kind, including payments under technical assistance or similar
agreements, made as consideration for the use or right to use any copyright, literary, artistic, or
scientific work, patent, trademark, design, model, plan, secret formula or process, excluding
those payments under technical assistance or similar agreements that can be related to specific
services such as:
a) personnel training, without regard to where performed; and
b) if performed in the territory of one or more of the Parties, engineering, tooling, diesetting,
software design and similar computer services, or other services;
sales promotion, marketing and after-sales service costs means the following costs related t o
sales promotion, marketing and aftersales service:
a) sales and marketing promotion; media advertising; advertising and market research;
promotional and demonstration materials, exhibits; sales conferences, trade shows and
conventions; banners; marketing displays; free samples; sales, marketing and after sales service
literature (product brochures, catalogs, technical literature, price lists, service manuals, sales aid
information); establishment and protection of logos and trademarks; sponsorships; wholesale
and retail restocking charges; entertainment;
b) sales and marketing incentives; consumer, retailer or wholesaler rebates; merchandise

incentives;
c) salaries and wages, sales commissions, bonuses, benefits (for example, medical, insurance,
pension), travelling and living expenses, membership and professional fees, for sales promotion,
marketing and aftersales service personnel;
d) recruiting and training of sales promotion, marketing and aftersales service personnel, and
aftersales training of customers' employees, where such costs are identified separately for sales
promotion, marketing and aftersales service of goods on the financial statements or cost
accounts of the producer;
e) product liability insurance;
f) office supplies for sales promotion, marketing and aftersales service of goods, where such
costs are identified separately for sales promotion, marketing and aftersales service of goods on
the financial statements or cost accounts of the producer;
g) telephone, mail and other communications, where such costs are identified separately for
sales promotion, marketing and aftersales service of goods on the financial statements or cost
accounts of the producer;
h) rent and depreciation of sales promotion, marketing and aftersales service offices and
distribution centers;
(i) property insurance premiums, taxes, cost of utilities, and repair and maintenance of sales
promotion, marketing and after-sales service offices and distribution centers, where such costs
are identified separately for sales promotion, marketing and aftersales service of goods on the
financial statements or cost accounts of the producer; and
(j) payments by the producer to other persons for warranty repairs;
self-produced material means a material that is produced by the producer of a good and used in
the production of that good;
shipping and packing costs means the costs incurred in packing a good for shipment and
shipping the good from the point of direct shipment to the buyer, excluding costs of preparing
and packaging the good for retail sale;
size category means for a motor vehicle identified in Article 403(1)(a):
a) 85 or less cubic feet of passenger and luggage interior volume,

b) between 85 and 100 cubic feet of passenger and luggage interior volume,
c) 100 to 110 cubic feet of passenger and luggage interior volume,
d) between 110 and 120 cubic feet of passenger and luggage interior volume, and
e) 120 and more cubic feet of passenger and luggage interior volume;
total cost means all product costs, period costs and other costs incurred in the territory of one
or more of the Parties;
transaction value means the price actually paid or payable for a good or material with respect t o
a transaction of, except for the application of Article 403(1) or 403(2)(a), the producer of the
good, adjusted in accordance with the principles of paragraphs 1, 3 and 4 of Article 8 of the
Customs Valuation Code, regardless of whether the good or material is sold for export;
used means used or consumed in the production of goods; and
underbody means the floor pan of a motor vehicle.
Annex 403.1
List of Tariff Provisions for Article 4 0 3 ( 1 )
Note: For purposes of reference only, descriptions are provided next to the corresponding tariff
provision.
40.09
tubes, pipes and hoses
4010.10
rubber belts
40.11
tires
4016.93.aa
rubber, gaskets, washers and other seals for automotive goods
4016.99.aa
vibration control goods
7007.11 and 7007.21
laminated safety glass
7009.10
rearview mirrors
8301.20
locks for the kind used on motor vehicles
8407.31
engines of a cylinder capacity not exceeding 50cc
8407.32
engines of a cylinder capacity exceeding 50cc but not exceeding 250cc
8407.33
8407.34.aa
8407.34.bb
engines of a cylinder capacity exceeding 2000cc
8408.20
diesel engines for vehicles of Chapter 8 7
84.09
parts of engines
8413.30
pumps
8414.80.22
turbochargers and superchargers for motor vehicles, where not provided for under subheading
8414.59
8414.59.aa
turbochargers and superchargers for motor vehicles, where not provided for under subheading
8414.80
8415.81 through 8415.83
air conditioners
8421.39.aa
catalytic convertors
8481.20, 8481.30 and 8481.80
valves
8482.10 through 8482.80
ball bearings
8483.10 through 8483.40
transmission shafts and housed ball bearings
8483.50
flywheels
8501.10
electric motors
8501.20
electric motors
8501.31
electric motors
8501.32.aa
electric motors that provide primary source for electric powered vehicles of subheading
8703.90
8507.20.aa, 8507.30.aa,
8507.40.aa and 8507.80.aa
batteries that provide primary source for electric cars
8511.30
distributors
8511.40
starter motors
8511.50
other generators
8512.20
other lighting or visual signalling equipment
8512.40
windscreen wipers, defrosters
8519.91
cassette decks
8527.21
radios combined with cassette players
8527.29
radios
8536.50
switches
8536.90
junction boxes
8537.10.aa
motor control centers
8539.10
seal beamed headlamps
8539.21
tungsten halogen headlamps
8544.30
wire harnesses
87.06
chassis
87.07
bodies
8708.10.aa
bumpers but not parts thereof
8708.21
safety seat belts
8708.29.aa
body stampings
8708.29.bb
inflators and modules for airbags
8708.29.cc
door assemblies
8708.29.dd
airbags for use in motor vehicles, where not provided for under subheading 8708.99
8708.39
brakes and servobrakes, and parts thereof
8708.40
gear boxes, transmissions
8708.50
drive axles with differential, whether or not provided with other transmission components
8708.60
nondriving axles, and parts thereof
8708.70.aa
road wheels, but not parts or accessories thereof
8708.80
suspension shockabsorbers
8708.91
radiators
8708.92
silencers (mufflers) and exhaust pipes
8708.93.aa
clutches, but not parts thereof
8708.94
steering wheels, steering columns and steering boxes
8708.99.aa
vibration control goods containing rubber
8708.99.bb
double flanged wheel hub units
8708.99.cc
airbags for use in motor vehicles, where not provided for under subheading 8708.29
8708.99.dd
halfshafts and drive shafts
8708.99.ee
other parts for powertrains
8708.99.ff
parts for suspension systems
8708.99.gg
parts for steering systems
8708.99.hh
other parts and accessories not provided for elsewhere in subheading 8708.99
9031.80
monitoring devices
9032.89
automatic regulating instruments
9401.20
seats
Annex 403.2
List of Components and Materials
1. Component: Engines provided for in heading 84.07 or 84.08
Materials: cast block, cast head, fuel nozzle, fuel injector pumps, glow plugs, turbochargers and
superchargers, electronic engine controls, intake manifold, exhaust manifold, intake/exhaust
valves, crankshaft/camshaft, alternator, starter, air cleaner assembly, pistons, connecting rods
and assemblies made therefrom (or rotor assemblies for rotary engines), flywheel (for manual
transmissions), flexplate (for automatic transmissions), oil pan, oil pump and pressure regulator,
water pump, crankshaft and camshaft gears, and radiator assemblies or chargeair coolers.
2. Component: Gear boxes (transmissions) provided for in subheading 8708.40

Materials: (a) for manual transmissions transmission case and clutch housing; clutch; internal
shifting mechanism; gear sets, synchronizers and shafts; and (b) for torque convertor type
transmissions transmission case and convertor housing; torque convertor assembly; gear sets
and clutches; and electronic transmission controls.
Annex 403.3
Regional Value-Content Calculation for CAMI
1. For purposes of Article 403, in determining whether motor vehicles produced by CAMI
Automotive, Inc. ("CAMI") in the territory of Canada and imported into the territory of the
United States qualify as originating goods, CAMI may average its calculation of the regional
value content of a class of motor vehicles or a model line of motor vehicles produced in a fiscal
year in the territory of Canada by CAMI for sale in the territory of one or more of the Parties
with the calculation of the regional value content of the corresponding class of motor vehicles
or model line of motor vehicles produced in the territory of Canada by General Motors of Canada
Limited in the fiscal year that corresponds most closely to CAMI's fiscal year, provided that:
a) at the beginning of CAMI's fiscal year General Motors of Canada Limited owns 50 percent or
more of the voting common stock of CAMI; and
b) General Motors of Canada Limited, General Motors Corporation, General Motors de Mexico,
S.A. de C.V., and any subsidiary directly or indirectly owned by any of them, or by any
combination thereof, ("GM") acquires 75 percent or more by unit of quantity of the class o f
motor vehicles or model line of motor vehicles, as the case may be, that CAMI has produced in
the territory of Canada in CAMI's fiscal year for sale in the territory of one or more of the
Parties.
2. If GM acquires less than 75 percent by unit of quantity of the class of motor vehicles or
model line of motor vehicles, as the case may be, that CAMI has produced in the territory o f
Canada in CAMI's fiscal year for sale in the territory of one or more of the Parties, CAMI may
average in the manner set out in paragraph 1 only those motor vehicles that are acquired by GM
for distribution under the GEO marque or other GM marque.
3. In calculating the regional value content of motor vehicles produced by CAMI in the territory
of Canada, CAMI may choose to average the calculation in paragraph 1 or 2 over a period of two
fiscal years in the event that any motor vehicle assembly plant operated by CAMI or any motor
vehicle assembly plant operated by General Motors of Canada Limited with which CAMI is
averaging its regional value content is closed for more than two consecutive months:
a) for the purpose of retooling for a model change, or
b) as the result of any event or circumstance (other than the imposition of antidumping and
countervailing duties, or an interruption of operations resulting from a labor strike, lockout,
labor dispute, picketing or boycott of or by employees of CAMI or GM), that CAMI or GM could
not reasonably have been expected to avert by corrective action or by exercise of due care and
diligence, including a shortage of materials, failure of utilities, or inability to obtain or delay in
obtaining raw materials, parts, fuel or utilities.
The averaging may be for CAMI's fiscal year in which a CAMI or any General Motors of Canada
Limited plant with which CAMI is averaging is closed and either the previous or subsequent fiscal
year. In the event that the period of closure spans two fiscal years, the averaging may be only
for those two fiscal years.
4. For purposes of this Article, where as a result of an amalgamation, reorganization, division or

similar transaction:
a) a motor vehicle producer (the "successor producer") acquires all or substantially all of the
assets used by GM, and
b) the successor producer, directly or indirectly controls, or is controlled by, GM, or both the
successor producer and GM are controlled by the same person, the successor producer shall be
deemed to be GM.
Chapter Five: Customs Procedures

Section A - Certification of Origin
Article 501: Certificate of Origin
1. The Parties shall establish by January 1, 1994 a Certificate of Origin for the purpose o f
certifying that a good being exported from the territory of a Party into the territory of another
Party qualifies as an originating good, and may thereafter revise the Certificate by agreement.
2. Each Party may require that a Certificate of Origin for a good imported into its territory be
completed in a language required under its law.
a) require an exporter in its territory to complete and sign a Certificate of Origin for any
exportation of a good for which an importer may claim preferential tariff treatment on
importation of the good into the territory of another Party; and
b) provide that where an exporter in its territory is not the producer of the good, the exporter
may complete and sign a Certificate on the basis o f
(i) its knowledge of whether the good qualifies as an originating good,
(ii) its reasonable reliance on the producer's written representation that the good qualifies as an
originating good, or
(iii) a completed and signed Certificate for the good voluntarily provided to the exporter by the
producer.
4. Nothing in paragraph 3 shall be construed to require a producer to provide a Certificate o f

Origin to an exporter.
5. Each Party shall provide that a Certificate of Origin that has been completed and signed by an
exporter or a producer in the territory of another Party that is applicable to:
a) a single importation of a good into the Party's territory, or
b) multiple importations of identical goods into the Party's territory that occur within a specified
period, not exceeding 12 months, set out therein by the exporter or producer,
shall be accepted by its customs administration for four years after the date on which the
Certificate was signed. ‘
Article 502: Obligations Regarding Importations
1. Except as otherwise provided in this Chapter, each Party shall require an importer in its
territory that claims preferential tariff treatment for a good imported into its territory from the
territory of another Party to:
a) make a written declaration, based on a valid Certificate of Origin, that the good qualifies as
an originating good;
b) have the Certificate in its possession at the time the declaration is made;
c) provide, on the request of that Party's customs administration, a copy of the Certificate; and
d) promptly make a corrected declaration and pay any duties owing where the importer has
reason to believe that a Certificate on which a declaration was based contains information that
is not correct.
2. Each Party shall provide that, where an importer in its territory claims preferential tariff
treatment for a good imported into its territory from the territory of another Party:
a) the Party may deny preferential t ariff treatment to the good if the importer fails to comply
with any requirement under this Chapter; and
b) the importer shall not be subject to penalties for the making of an incorrect declaration, if i t
voluntarily makes a corrected declaration pursuant to paragraph 1(d).
3. Each Party shall provide that, where a good would have qualified as an originating good when
it was imported into the territory of that Party but no claim for preferential tariff treatment was
made at that time, the importer of the good may, no later than one year after the date on
which the good was imported, apply for a refund of any excess duties paid as the result of the
good not having been accorded preferential tariff treatment, on presentation of:
a) a written declaration that the good qualified as an originating good at the time o f
importation;
b) a copy of the Certificate of Origin; and
c) such other documentation relating to the importation of the good as that Party may require.
Article 503: Exceptions
Each Party shall provide that a Certificate of Origin shall not be required for:
a) a commercial importation of a good whose value does not exceed US$1,000 or its equivalent
amount in the Party's currency, or such higher amount as it may establish, except that it may
require that the invoice accompanying the importation include a statement certifying that the
good qualifies as an originating good,
b) a non-commercial importation of a good whose value does not exceed US$1,000 or its
equivalent amount in the Party's currency, or such higher amount as it may establish, or
c) an importation of a good for which the Party into whose territory the good is imported has
waived the requirement for a Certificate of Origin,
provided that the importation does not form part of a series of importations that may
reasonably be considered to have been undertaken or arranged for the purpose of avoiding the
certification requirements of Articles 501 and 502.
Article 504: Obligations Regarding Exportations
a) an exporter in its territory, or a producer in its territory that has provided a copy of a
Certificate of Origin to that exporter pursuant to Article 501(3)(b)(iii), shall provide a copy o f
the Certificate to its customs administration on request; and
b) an exporter or a producer in its territory that has completed and signed a Certificate o f
Origin, and that has reason to believe that the Certificate contains information that is not
correct, shall promptly notify in writing all persons to whom the Certificate was given by the
exporter or producer of any change that could affect the accuracy or validity of the Certificate.
2. Each Party:
a) shall provide that a false certification by an exporter or a producer in its territory that a good
to be exported to the territory of another Party qualifies as an originating good shall have the
same legal consequences, with appropriate modifications, as would apply to an importer in its
territory for a contravention of its customs laws and regulations regarding the making of a false
statement or representation; and
b) may apply such measures as the circumstances may warrant where an exporter or a producer
in its territory fails to comply with any requirement of this Chapter.
3. No Party may impose penalties on an exporter or a producer in its territory that voluntarily
provides written notification pursuant to paragraph (1)(b) with respect to the making of an
incorrect certification.
Section B - Administration and Enforcement
Article 505: Records
Each Party shall provide that:
a) an exporter or a producer in its territory that completes and signs a Certificate of Origin shall
maintain in its territory, for five years after the date on which the Certificate was signed or for
such longer period as the Party may specify, all records relating to the origin of a good for
which preferential tariff treatment was claimed in the territory of another Party, including
records associated with
(i) the purchase of, cost of, value of, and payment for, the good that is exported from its
territory,
(ii) the purchase of, cost of, value of, and payment for, all materials, including indirect materials,
used in the production of the good that is exported from its territory, and
(iii) the production of the good in the form in which the good is exported from its territory; and
b) an importer claiming preferential tariff treatment for a good imported into the Party's
territory shall maintain in that territory, for five years after the date of importation of the good
or for such longer period as the Party may specify, such documentation, including a copy of the
Certificate, as the Party may require relating to the importation of the good.
Article 506: Origin Verifications
1. For purposes of determining whether a good imported into its territory from the territory o f
another Party qualifies as an originating good, a Party may, through its customs administration,
conduct a verification solely by means of:
a) written questionnaires to an exporter or a producer in the territory of another Party;
b) visits to the premises of an exporter or a producer in the territory of another Party to review
the records referred to in Article 505(a) and observe the facilities used in the production of the
good; or
c) such other procedure as the Parties may agree.
2. Prior to conducting a verification visit pursuant to paragraph (1)(b), a Party shall, through its
customs administration:
a) deliver a written notification of its intention to conduct the visit t o
(i) the exporter or producer whose premises are to be visited,
(ii) the customs administration of the Party in whose territory the visit is to occur, and
(iii) if requested by the Party in whose territory the visit is to occur, the embassy of that Party
in the territory of the Party proposing to conduct the visit; and
(b) obtain the written consent of the exporter or producer whose premises are to be visited.
3. The notification referred to in paragraph 2 shall include:
a) the identity of the customs administration issuing the notification;
(b) the name of the exporter or producer whose premises are to be visited;
c) the date and place of the proposed verification visit;
d) the object and scope of the proposed verification visit, including specific reference to the
good that is the subject of the verification;
e) the names and titles of the officials performing the verification visit; and
f) the legal authority for the verification visit.
4. Where an exporter or a producer has not given its written consent to a proposed verification
visit within 30 days of receipt of notification pursuant to paragraph 2, the notifying Party may
deny preferential tariff treatment to the good that would have been the subject of the visit.
5. Each Party shall provide that, where its customs administration receives notification pursuant
to paragraph 2, the customs administration may, within 15 days of receipt of the notification,
postpone the proposed verification visit for a period not exceeding 60 days from the date o f
such receipt, or for such longer period as the Parties may agree.
6. A Party shall not deny preferential tariff treatment to a good based solely on the
postponement of a verification visit pursuant to paragraph 5.
7. Each Party shall permit an exporter or a producer whose good is the subject of a verification
visit by another Party to designate two observers to be present during the visit, provided that:
a) the observers do not participate in a manner other than as observers; and
b) the failure of the exporter or producer to designate observers shall not result in the
postponement of the visit.
8. Each Party shall, through its customs administration, conduct a verification of a regional
value-content requirement in accordance with the Generally Accepted Accounting Principles
applied in the territory of the Party from which the good was exported.
9. The Party conducting a verification shall provide the exporter or producer whose good is the
subject of the verification with a written determination of whether the good qualifies as an
originating good, including findings of fact and the legal basis for the determination.
10. Where verifications by a Party indicate a pattern of conduct by an exporter or a producer o f
false or unsupported representations that a good imported into its territory qualifies as an
originating good, the Party may withhold preferential tariff treatment to identical goods
exported or produced by such person until that person establishes compliance with Chapter
Four (Rules of Origin).
11. Each Party shall provide that where it determines that a certain good imported into its
territory does not qualify as an originating good based on a tariff classification or a value applied
by the Party to one or more materials used in the production of the good, which differs from
the tariff classification or value applied to the materials by the Party from whose territory the
good was exported, the Party's determination shall not become effective until it notifies in
writing both the importer of the good and the person that completed and signed the Certificate
of Origin for the good of its determination.
12. A Party shall not apply a determination made under paragraph 11 to an importation made
before the effective date of the determination where:
a) the customs administration of the Party from whose territory the good was exported has
issued an advance ruling under Article 509 or any other ruling on the tariff classification or on
the value of such materials, or has given consistent treatment to the entry of the materials
under the tariff classification or value at issue, on which a person is entitled to rely; and
b) the advance ruling or consistent treatment was given prior to notification of the
determination.
13. If a Party denies preferential tariff treatment to a good pursuant to a determination made
under paragraph 11, it shall postpone the effective date of the denial for a period not exceeding
90 days where the importer of the good, or the person who completed and signed the
Certificate of Origin for the good, demonstrates that it has relied in good faith to its detriment
on the tariff classification or value applied to such materials by the customs administration o f
the Party from whose territory the good was exported.
Article 507: Confidentiality
1. Each Party shall maintain, in accordance with its law, the confidentiality of confidential
business information collected pursuant to this Chapter and shall protect that information from
disclosure that could prejudice the competitive position of the persons providing the
information.
2. The confidential business information collected pursuant to this Chapter may only be
disclosed to those authorities responsible for the administration and enforcement o f
determinations of origin, and of customs and revenue matters.
Article 508: Penalties
1. Each Party shall maintain measures imposing criminal, civil or administrative penalties for
violations of its laws and regulations relating to this Chapter.
2. Nothing in Articles 5 0 2(2), 504(3) or 506(6) shall be construed to prevent a Party from
applying such measures as the circumstances may warrant.
Section C - Advance Rulings
Article 509: Advance Rulings
1. Each Party shall, through its customs administration, provide for the expeditious issuance o f
written advance rulings, prior to the importation of a good into its territory, to an importer in its
territory or an exporter or a producer in the territory of another Party, on the basis of the facts
and circumstances presented by such importer, exporter or producer of the good, concerning:
a) whether materials imported from a non-Party used in the production of a good undergo an
applicable change in tariff classification set out in Annex 401 as a result of production occurring
entirely in the territory of one or more of the Parties;
b) whether a good satisfies a regional value-content requirement under either the transaction
value method or the net cost method set out in Chapter Four;
c) for the purpose of determining whether a good satisfies a regional value-content requirement
under Chapter Four, the appropriate basis or method for value to be applied by an exporter or a
producer in the territory of another Party, in accordance with the principles of the Customs
Valuation Code, for calculating the transaction value of the good or of the materials used in the
production of the good;
d) for the purpose of determining whether a good satisfies a regional value-content requirement
under Chapter Four, the appropriate basis or method for reasonably allocating costs, in
accordance with the allocation methods set out in the Uniform Regulations, for calculating the
net cost of the good or the value of an intermediate material;
e) whether a good qualifies as an originating good under Chapter Four;
f) whether a good that re-enters its territory after the good has been exported from its
territory to the territory of another Party for repair or alteration qualifies for dutyfree treatment
in accordance with Article 307 (Goods Re-Entered after Repair or Alteration);
g) whether the proposed or actual marking of a good satisfies country of origin marking
requirements under Article 311 (Country of Origin Marking);
h) whether an originating good qualifies as a good of a Party under Annex 300B (Textile and
Apparel Goods), Annex 302.2 (Tariff Elimination) or Chapter Seven (Agriculture and Sanitary
and Phytosanitary Measures);
(i) whether a good is a qualifying good under Chapter Seven; or
(j) such other matters as the Parties may agree.

2. Each Party shall adopt or maintain procedures for the issuance of advance rulings, including a
detailed description of the information reasonably required to process an application for a ruling.
3. Each Party shall provide that its customs administration:
a) may, at any time during the course of an evaluation of an application for an advance ruling,
request supplemental information from the person requesting the ruling;
b) shall, after it has obtained all necessary information from the person requesting an advance
ruling, issue the ruling within the periods specified in the Uniform Regulations; and
c) shall, where the advance ruling is unfavorable to the person requesting it, provide to that
person a full explanation of the reasons for the ruling.
4. Subject to paragraph 6, each Party shall apply an advance ruling to importations into its
territory of the good for which the ruling was requested, beginning on the date of its issuance
or such later date as may be specified in the ruling.
5. Each Party shall provide to any person requesting an advance ruling the same treatment,
including the same interpretation and application of provisions of Chapter Four regarding a
determination of origin, as it provided to any other person to whom it issued an advance ruling,
provided that the facts and circumstances are identical in all material respects.
6. The issuing Party may modify or revoke an advance ruling:
a) if the ruling is based on an error
(i) of fact,
(ii) in the tariff classification of a good or a material that is the subject of the ruling,
(iii) in the application of a regional value content requirement under Chapter Four,
(iv) in the application of the rules for determining whether a good qualifies as a good of a Party
under Annex 300B, 302.2 or Chapter Seven,
(v) in the application of the rules for determining whether a good is a qualifying good under
Chapter Seven, or
(vi) in the application of the rules for determining whether a good that re-enters its territory
after the good has been exported from its territory to the territory of another Party for repair
or alteration qualifies for dutyfree treatment under Article 307;
b) if the ruling is not in accordance with an interpretation agreed by the Parties regarding
Chapter Three (National Treatment and Market Access for Goods) or Chapter Four;
c) if there is a change in the material facts or circumstances on which the ruling is based;
d) to conform with a modification of Chapter Three, Chapter Four, this Chapter, Chapter Seven,
the Marking Rules or the Uniform Regulations; or
e) to conform with a judicial decision or a change in its domestic law.
7. Each Party shall provide that any modification or revocation of an advance ruling shall be
effective on the date on which the modification or revocation is issued, or on such later date as
may be specified therein, and shall not be applied to importations of a good that have occurred
prior to that date, unless the person to whom the advance ruling was issued has not acted in
accordance with its terms and conditions.
8. Notwithstanding paragraph 7, the issuing Party shall postpone the effective date of such
modification or revocation for a period not exceeding 90 days where the person to whom the
advance ruling was issued demostrates that it has relied in good faith to its detriment on that
ruling.
9. Each Party shall provide that where its customs administration examines the regional value
content of a good for which it has issued an advance ruling pursuant to subparagraph 1(c), ( d )
or f), it shall evaluate whether:
a) the exporter or producer has complied with the terms and conditions of the advance ruling;
b) the exporter's or producer's operations are consistent with the material facts and
circumstances on which the advance ruling is based; and
c) the supporting data and computations used in applying the basis or method for calculating
value or allocating cost were correct in all material respects.
10. Each Party shall provide that where its customs administration determines that any
requirement in paragraph 9 has not been satisfied, it may modify or revoke the advance ruling
as the circumstances may warrant.
11. Each Party shall provide that, where the person to whom an advance ruling was issued
demonstrates that it used reasonable care and acted in good faith in presenting the facts and
circumstances on which the ruling was based, and where the customs administration of a Party
determines that the ruling was based on incorrect information, the person to whom the ruling
was issued shall not be subject to penalties.
12. Each Party shall provide that where it issues an advance ruling to a person that has
misrepresented or omitted material facts or circumstances on which the ruling is based or has
failed to act in accordance with the terms and conditions of the ruling, the Party may apply such
measures as the circumstances may warrant.
Section D - Review and Appeal of Origin Determinations and Advance Rulings
Article 510: Review and Appeal

1. Each Party shall grant substantially the same rights of review and appeal of marking
determinations of origin, country of origin determinations and advance rulings by its customs
administration as it provides to importers in its territory to any person:
a) who completes and signs a Certificate of Origin for a good that has been the subject of a
determination of origin;
b) whose good has been the subject of a country of origin marking determination pursuant t o
Article 311 (Country of Origin Marking); or
(c) who has received an advance ruling pursuant to Article 509(1).
2. Further to Articles 1804 (Administrative Proceedings) and 1805 (Review and Appeal), each
Party shall provide that the rights of review and appeal referred to in paragraph 1 shall include
access to:
a) at least one level of administrative review independent of the official or office responsible for
the determination under review; and
b) in accordance with its domestic law, judicial or quasijudicial review of the determination or
decision taken at the final level of administrative review.
Section E - Uniform Regulations
Article 511: Uniform Regulations
1. The Parties shall establish, and implement through their respective laws or regulations by
January 1, 1994, Uniform Regulations regarding the interpretation, application and
administration of Chapter Four, this Chapter and other matters as may be agreed by the Parties.
2. Each Party shall implement any modification of or addition to the Uniform Regulations no later
than 180 days after the Parties agree on such modification or addition, or such other period as
the Parties may agree.
Section F - Cooperation
Article 512: Cooperation
1. Each Party shall notify the other Parties of the following determinations, measures and
rulings, including to the greatest extent practicable those that are prospective in application:
a) a determination of origin issued as the result of a verification conducted pursuant to Article

506(1);
b) a determination of origin that the Party is aware is contrary t o
(i) a ruling issued by the customs administration of another Party with respect to the tariff
classification or value of a good, or of materials used in the production of a good, or the
reasonable allocation of costs where calculating the net cost of a good, that is the subject of a
determination of origin, or
(ii) consistent treatment given by the customs administration of another Party with respect t o
the tariff classification or value of a good, or of materials used in the production of a good, or
the reasonable allocation of costs where calculating the net cost of a good, that is the subject
of a determination of origin;
c) a measure establishing or significantly modifying an administrative policy that is likely t o

affect future determinations of origin, country of origin marking requirements or determinations
as to whether a good qualifies as a good of a Party under the Marking Rules; and
d) an advance ruling, or a ruling modifying or revoking an advance ruling, pursuant to Article

509.
2. The Parties shall cooperate:
a) in the enforcement of their respective customs-related laws or regulations implementing this

Agreement, and under any customs mutual assistance agreements or other customsrelated
agreement to which they are party;
b) for purposes of the detection and prevention of unlawful transshipments of textile and
apparel goods of a non-Party, in the enforcement of prohibitions or quantitative restrictions,
including the verification by a Party, in accordance with the procedures set out in this Chapter,
of the capacity for production of goods by an exporter or a producer in the territory of another
Party, provided that the customs administration of the Party proposing to conduct the
verification, prior to conducting the verification
(i) obtains the consent of the Party in whose territory the verification is to occur, and
(ii) provides notification to the exporter or producer whose premises are to be visited,
except that procedures for notifying the exporter or producer whose premises are to be visited
shall be in accordance with such other procedures as the Parties may agree;
c) to the extent practicable and for purposes of facilitating the flow of trade between them, in
such customsúrelated matters as the collection and exchange of statistics regarding the
importation and exportation of goods, the harmonization of documentation used in trade, the
standardization of data elements, the acceptance of an international data syntax and the
exchange of information; and
d) to the extent practicable, in the storage and transmission of customs-related documentation.
Article 513: Working Group and Customs Subgroup
1. The Parties hereby establish a Working Group on Rules of Origin, comprising representatives
of each Party, to ensure:
a) the effective implementation and administration of Articles 303 (Restriction on Drawback
and Duty Deferral Programs), 308 (Most-Favored-Nation Rates of Duty on Certain Goods) and
311, Chapter Four, this Chapter, the Marking Rules and the Uniform Regulations; and
b) the effective administration of the customsrelated aspects of Chapter Three.
2. The Working Group shall meet at least four times each year and on the request of any Party.
3. The Working Group shall:
a) monitor the implementation and administration by the customs administrations of the Parties
of Articles 303, 308 and 311, Chapter Four, this Chapter, the Marking Rules and the Uniform
Regulations to ensure their uniform interpretation;
b) endeavor to agree, on the request of any Party, on any proposed modification of or addition
to Article 303, 308 or 311, Chapter Four, this Chapter, the Marking Rules or the Uniform
Regulations;
c) notify the Commission of any agreed modification of or addition to the Uniform Regulations;
d) propose to the Commission any modification of or addition to Article 303, 308 or 311,
Chapter Four, this Chapter, the Marking Rules, the Uniform Regulations or any other provision o f
this Agreement as may be required to conform with any change to the Harmonized System; and
e) consider any other matter referred to it by a Party or by the Customs Subgroup established
under paragraph 6.
4. Each Party shall, to the greatest extent practicable, take all necessary measures t o
implement any modification of or addition to this Agreement within 180 days of the date on
which the Commission agrees on the modification or addition.
5. If the Working Group fails to resolve a matter referred to it pursuant to paragraph 3(e) within
30 days of such referral, any Party may request a meeting of the Commission under Article
2007 (Commission Good Offices, Conciliation and Mediation).
6. The Working Group shall establish, and monitor the work of, a Customs Subgroup, comprising
representatives of each Party. The Subgroup shall meet at least four times each year and on the
request of any Party and shall:
a) endeavor to agree on
(i) the uniform interpretation, application and administration of Articles 303, 308 and 311,
Chapter Four, this Chapter, the Marking Rules and the Uniform Regulations,
(ii) tariff classification and valuation matters relating to determinations of origin,
(iii) equivalent procedures and criteria for the request, approval, modification, revocation and
implementation of advance rulings,
(iv) revisions to the Certificate of Origin,
(v) any other matter referred to it by a Party, the Working Group or the Committee on Trade in
Goods established under Article 316, and
(vi) any other customs-related matter arising under this Agreement;
b) consider
(i) the harmonization of customs-related automation requirements and documentation, and
(ii) proposed customs-related administrative and operational changes that may affect the flow
of trade between the Parties' territories;
c) report periodically to the Working Group and notify it of any agreement reached under this
paragraph; and
d) refer to the Working Group any matter on which it has been unable to reach agreement
within 60 days of referral of the matter to it pursuant to subparagraph (a)(v).
7. Nothing in this Chapter shall be construed to prevent a Party from issuing a determination o f
origin or an advance ruling relating to a matter under consideration by the Working Group or the
Customs Subgroup or from taking such other action as it considers necessary, pending a
resolution of the matter under this Agreement.
commercial importation means the importation of a good into the territory of any Party for the
purpose of sale, or any commercial, industrial or other like use;
customs administration means the competent authority that is responsible under the law of a
Party for the administration of customs laws and regulations;
determination of origin means a determination as to whether a good qualifies as an originating

good in accordance with Chapter Four;
exporter in the territory of a Party means an exporter located in the territory of a Party and an
exporter required under this Chapter to maintain records in the territory of that Party regarding
exportations of a good;
identical goods means goods that are the same in all respects, including physical characteristics,
quality and reputation, irrespective of minor differences in appearance that are not relevant to a
determination of origin of those goods under Chapter Four;
importer in the territory of a Party means an importer located in the territory of a Party and an
importer required under this Chapter to maintain records in the territory of that Party regarding
importations of a good;
intermediate material means "intermediate material" as defined in Article 415; Marking Rules
means "Marking Rules" established under Annex 311;
material means "material" as defined in Article 415;
net cost of a good means "net cost of a good" as defined in Article 415;
preferential tariff treatment means the duty rate applicable to an originating good;
producer means "producer" as defined in Article 415;
production means "production" as defined in Article 415;
transaction value means "transaction value" as defined in Article 415;
Uniform Regulations means "Uniform Regulations" established under Article 511;
used means "used" as defined in Article 415; and
value means value of a good or material for purposes of calculating customs duties or for
purposes of applying Chapter Four.
Chapter Six: Energy and Basic Petrochemicals
Article 601: Principles
1. The Parties confirm their full respect for their Constitutions.
2. The Parties recognize that it is desirable to strengthen the important role that trade in
energy and basic petrochemical goods plays in the free trade area and to enhance this role
through sustained and gradual liberalization.
3. The Parties recognize the importance of having viable and internationally competitive energy
and petrochemical sectors to further their individual national interests.
1. This Chapter applies to measures relating to energy and basic petrochemical goods
originating in the territories of the Parties and to measures relating to investment and to the
cross-border trade in services associated with such goods, as set forth in this Chapter.
2. For purposes of this Chapter, energy and basic petrochemical goods refer to those goods
classified under the Harmonized System as:
a) subheading 2612.10;
b) headings 27.01 through 27.06;
c) subheading 2707.50;
d) subheading 2707.99 (only with respect to solvent naphtha, rubber extender oils and carbon
black feedstocks);
e) headings 27.08 and 27.09;
f) heading 27.10 (except for normal paraffin mixtures in the range of C9 to C15);
g) heading 27.11 (except for ethylene, propylene, butylene and butadiene in purities over 5 0
percent);
h) headings 27.12 through 27.16;
i) subheadings 2844.10 through 2844.50 (only with respect to uranium compounds classified
under those subheadings);
j) subheading 2845.10; and
k) subheading 2901.10 (only with respect to ethane, butanes, pentanes, hexanes, and
heptanes).
3. Except as specified in Annex 602.3, energy and petrochemical goods and activities shall be
governed by the provisions of this Agreement.
Article 603: Import and Export Restrictions
1. Subject to the further rights and obligations of this Agreement, the Parties incorporate the
provisions of the General Agreement on Tariffs and Trade (GATT), with respect to prohibitions
or restrictions on trade in energy and basic petrochemical goods. The Parties agree that this
language does not incorporate their respective protocols of provisional application to the GATT.
2. The Parties understand that the provisions of the GATT incorporated in paragraph 1 prohibit,
in any circumstances in which any other form of quantitative restriction is prohibited, minimum
or maximum export - price requirements and, except as permitted in enforcement o f
countervailing and antidumping orders and undertakings, minimum or maximum import-price
requirements.
3. In circumstances where a Party adopts or maintains a restriction on importation from or

exportation to a non-Party of an energy or basic petrochemical good, nothing in this Agreement
shall be construed to prevent the Party from:
a) limiting or prohibiting the importation from the territory of any Party of such energy or basic
petrochemical good of the nonParty; or
b) requiring as a condition of export of such energy or basic petrochemical good of the Party t o
the territory of any other Party that the good be consumed within the territory of the other
Party.
4. In the event that a Party adopts or maintains a restriction on imports of an energy or basic
petrochemical good from non-Party countries, the Parties, on request of any Party, shall consult
with a view to avoiding undue interference with or distortion of pricing, marketing and
distribution arrangements in another Party.
5. Each Party may administer a system of import and export licensing for energy or basic
petrochemical goods provided that such system is operated in a manner consistent with the
provisions of this Agreement, including paragraph 1 and Article 1502 (Monopolies and State
Enterprises).
6. This Article is subject to the reservations set out in Annex 603.6.
Article 604: Export Taxes
No Party may adopt or maintain any duty, tax or other charge on the export of any energy or
basic petrochemical good to the territory of another Party, unless such duty, tax or charge is
adopted or maintained on:
a) exports of any such good to the territory of all other Parties; and
b) any such good when destined for domestic consumption.
Article 605: Other Export Measures
Subject to Annex 605, a Party may adopt or maintain a restriction otherwise justified under
Articles XI:2(a) or XX(g), (i) or (j) of the GATT with respect to the export of an energy or basic
petrochemical good to the territory of another Party, only if:
a) the restriction does not reduce the proportion of the total export shipments of the specific
energy or basic petrochemical good made available to that other Party relative to the total
supply of that good of the Party maintaining the restriction as compared to the proportion
prevailing in the most recent 36month period for which data are available prior to the imposition
of the measure, or in such other representative period on which the Parties may agree;
b) the Party does not impose a higher price for exports of an energy or basic petrochemical
good to that other Party than the price charged for such good when consumed domestically, by
means of any measure such as licenses, fees, taxation and minimum price requirements. The
foregoing provision does not apply to a higher price that may result from a measure taken
pursuant to subparagraph (a) that only restricts the volume of exports; and
c) the restriction does not require the disruption of normal channels of supply to that other
Party or normal proportions among specific energy or basic petrochemical goods supplied t o
that other Party, such as, for example, between crude oil and refined products and among
different categories of crude oil and of refined products.
Article 606: Energy Regulatory Measures
1. The Parties recognize that energy regulatory measures are subject to the disciplines of:
a) national treatment, as provided in Article 301;
b) import and export restrictions, as provided in Article 603; and
c) export taxes, as provided in Article 604.
2. Each Party shall seek to ensure that in the application of any energy regulatory measure,
energy regulatory bodies within its territory avoid disruption of contractual relationships to the
maximum extent practicable, and provide for orderly and equitable implementation appropriate
to such measures.
Article 607: National Security Measures
Subject to Annex 607, no Party may adopt or maintain a measure restricting imports of an
energy or basic petrochemical good from, or exports of an energy or basic petrochemical good
to, another Party under Article XXI of the GATT or under Article 2102 (National Security),
except to the extent necessary to:
a) supply a military establishment of a Party or enable fulfillment of a critical defense contract

of a Party;
b) respond to a situation of armed conflict involving the Party taking the measure;
c) implement national policies or international agreements relating to the non-proliferation o f

nuclear weapons or other nuclear explosive devices; or
d) respond to direct threats of disruption in the supply of nuclear materials for defense
purposes.
Article 608: Miscellaneous Provisions
1. The Parties agree to allow existing or future incentives for oil and gas exploration,
development and related activities in order to maintain the reserve base for these energy
resources.
2. Annex 608.2 applies only to the Parties specified in that Annex with respect to other
agreements relating to trade in energy goods.

consumed means transformed so as to qualify under the rules of origin set out in Chapter Four
(Rules of Origin), or actually consumed;
cross-border trade in services means "crossborder trade in services" as defined in Article 1 2 1 3

(Cross-Border Trade in Services Definitions);
energy regulatory measure means any measure by federal or sub-federal entities that directly
affects the transportation, transmission or distribution, purchase or sale, of an energy or basic
petrochemical good;
enterprise means "enterprise" as defined in Article 1139 (Investment-Definitions);
enterprise of a Party means "enterprise of a Party" as defined in Article 1139;
facility for independent power production means a facility that is used for the generation o f
electric energy exclusively for sale to an electric utility for further resale;
first hand sale refers to the first commercial transaction affecting the good in question;
investment means investment as defined in Article 1139;
restriction means any limitation, whether made effective through quotas, licenses, permits,
minimum or maximum price requirements or any other means;
total export shipments means the total shipments from total supply to users located in the
territory of the other Party; and
total supply means shipments to domestic users and foreign users from:
a) domestic production;
b) domestic inventory; and
c) other imports, as appropriate.
Annex 602.3
Reservations and Special Provisions
Reservations
1. The Mexican State reserves to itself the following strategic activities, including investment in
such activities and the provision of services in such activities:
a) exploration and exploitation of crude oil and natural gas; refining or processing of crude oil
and natural gas; and production of artificial gas, basic petrochemicals and their feedstocks and
pipelines;
b) foreign trade; transportation, storage and distribution, up to and including the first hand
sales of the following goods:
(i) crude oil,
(ii) natural and artificial gas,
(iii) goods covered by this Chapter obtained from the refining or processing of crude oil and
natural gas, and
(iv) basic petrochemicals;
c) the supply of electricity as a public service in Mexico, including, except as provided in

paragraph 5, the generation, transmission, transformation, distribution and sale of electricity;
and
d) exploration, exploitation and processing of radioactive minerals, the nuclear fuel cycle, the
generation of nuclear energy, the transportation and storage of nuclear waste, the use and
reprocessing of nuclear fuel and the regulation of their applications for other purposes and the
production of heavy water.
In the event of an inconsistency between this paragraph and another provision of this
Agreement, this paragraph shall prevail to the extent of that inconsistency.
2. Pursuant to Article 1101(2), (Investment-Scope and Coverage), private investment is not

permitted in the activities listed in paragraph 1. Chapter Twelve (CrossBorder Trade in Services)
shall only apply to activities involving the provision of services covered in paragraph 1 when
Mexico permits a contract to be granted in respect of such activities and only to the extent o f
that contract.
Trade in Natural Gas and Basic Petrochemicals
3. Where end-users and suppliers of natural gas or basic petrochemical goods consider that
cross-border trade in such goods may be in their interests, each Party shall permit such end-
users and suppliers, and any state enterprise of that Party as may be required under its
domestic law, to negotiate supply contracts.
Each Party shall leave the modalities of the implementation of any such contract to the
endusers, suppliers, and any state enterprise of the Party as may be required under its domestic
law, which may take the form of individual contracts between the state enterprise and each o f
the other entities. Such contracts may be subject to regulatory approval.
Performance Clauses
4. Each Party shall allow its state enterprises to negotiate performance clauses in their service
contracts.
Activities and Investment in Electricity Generation Facilities
5. a) Production for Own Use
An enterprise of another Party may acquire, establish, and/or operate an electrical generating
facility in Mexico to meet the enterprise's own supply needs. Electricity generated in excess o f
such needs must be sold to the Federal Electricity Commission (Comisi n Federal de Electricidad)
(CFE) and CFE shall purchase such electricity under terms and conditions agreed to by CFE and
the enterprise.
b) Co-generation
An enterprise of another Party may acquire, establish, and/or operate a co-generation facility in
Mexico that generates electricity using heat, steam or other energy sources associated with an
industrial process. Owners of the industrial facility need not be the owners of the co-generating
facility. Electricity generated in excess of the industrial facility's supply requirements must be
sold to CFE and CFE shall purchase such electricity under terms and conditions agreed to by CFE
and the enterprise.
c) Independent Power Production
An enterprise of another Party may acquire, establish, and/or operate an electricity generating
facility for independent power production (IPP) in Mexico. Electricity generated by such a facility
for sale in Mexico shall be sold to CFE and CFE shall purchase such electricity under terms and
conditions agreed to by CFE and the enterprise. Where an IPP located in Mexico and an electric
utility of another Party consider that cross-border trade in electricity may be in their interests,
each relevant Party shall permit these entities and CFE to negotiate terms and conditions o f
power purchase and power sale contracts. The modalities of implementing such supply
contracts are left to the end users, suppliers and CFE and may take the form of individual
contracts between CFE and each of the other entities. Each relevant Party shall determine
whether such contracts are subject to regulatory approval.
Annex 603.6
Exception to Article 6 0 3
For only those goods listed below, Mexico may restrict the granting of import and export
licenses for the sole purpose of reserving foreign trade in these goods to itself.
2707.50
Other aromatic hydrocarbon mixtures of which 65 percent or more by volume (including losses)
distills at 250 C by the ASTM D 86 method.
2707.99
Rubber extender oils, solvent naphtha and carbon black feedstocks only.
2709
Petroleum oils and oils obtained from bituminous minerals, crude.
2710
Aviation gasoline; gasoline and motor fuel blending stocks (except aviation gasoline) and
reformates when used as motor fuel lending stocks; kerosene; gas oil and diesel oil; petroleum
ether; fuel oil; paraffinic oils other than for lubricating purposes; pentanes; carbon black
feedstocks; hexanes; heptanes and naphthas.
2711
Petroleum gases and other gaseous hydrocarbons other than: ethylene, propylene, butylene and
butadiene, in purities over 50 percent.
2712.90
Only paraffin wax containing by weight more than 0.75 percent of oil, in bulk (Mexico classifies
these goods under HS 2712.90.02) and only when imported to be used for further refining.
2713.11
Petroleum coke not calcined.
2713.20
Petroleum bitumen (except when used for road surfacing purposes under HS 2713.20.01).
2713.90
Other residues o f petroleum oils or of oils obtained from bituminous minerals.
2714
Bitumen and asphalt, natural; bituminous or oil shale and tar sands, asphaltites and asphaltic
rocks (except when used for road surfacing purposes under HS 2714.90.01).
2901.10
Ethane, butanes, pentanes, hexanes, and heptanes only.
Annex 6 0 5
Exception to Article 6 0 5
Notwithstanding any other provision of this Chapter, the provisions of Article 605 shall not
apply as between the other Parties and Mexico.
Annex 6 0 7
National Security
1. Article 607 shall impose no obligations and confer no rights on Mexico.
2. Article 2102 (National Security) shall apply as between Mexico and the other Parties.
Annex 608.2
Other Agreements
1. Canada and the United States shall act in accordance with the terms of Annexes 902.5 and
905.2 of the Canada United States Free Trade Agreement , which are hereby incorporated into
and made a part of this Agreement for such purpose. This paragraph shall impose no obligations
and confer no rights on Mexico.
2. Canada and the United States intend no inconsistency between this Chapter and the
Agreement on an International Energy Program (IEP). In the event of any inconsistency between
the IEP and this Chapter, the IEP shall prevail as between Canada and the United States to the
extent of that inconsistency.
Chapter Seven: Agriculture and Sanitary and Phytosanitary Measures
Section A - Agriculture
1. This Section applies to measures adopted or maintained by a Party relating to agricultural

trade.
2. In the event of any inconsistency between this Section and another provision of this
Agreement, this Section shall prevail to the extent of the inconsistency.
Article 702: International Obligations
1. Annex 702.1 applies to the Parties specified in that Annex with respect to agricultural trade
under certain agreements between them.
2. Prior to adopting pursuant to an intergovernmental commodity agreement, a measure that

may affect trade in an agricultural good between the Parties, the Party proposing to adopt the
measure shall consult with the other Parties with a view to avoiding nullification or impairment
of a concession granted by that Party in its Schedule to Annex 302.2.
3. Annex 702.3 applies to the Parties specified in that Annex with respect to measures adopted
or maintained pursuant to an intergovernmental coffee agreement.
Article 703: Market Access
1. The Parties shall work together to improve access to their respective markets through the
reduction or elimination of import barriers to trade between them in agricultural goods.
Customs Duties, Quantitative Restrictions, and Agricultural Grading and Marketing Standards
2. Annex 703.2 applies to the Parties specified in that Annex with respect to customs duties
and quantitative restrictions, trade in sugar and syrup goods, and agricultural grading and
marketing standards.
Special Safeguard Provisions
3. Each Party may, in accordance with its Schedule to Annex 302.2, adopt or maintain a special
safeguard in the form of a tariff rate quota on an agricultural good listed in its Section of Annex
703.3. Notwithstanding Article 302.2, a Party may not apply an over-quota tariff rate under a
special safeguard that exceeds the lesser of:
a) the most-favored-nation (MFN) rate as of July 1, 1991; and

b) the prevailing MFN rate.
4. No Party may, with respect to the same good and the same country, at the same time:
a) apply an over-quota tariff rate under paragraph 3; and
b) take an emergency action covered by Chapter Eight (Emergency Action).
Article 704: Domestic Support
The Parties recognize that domestic support measures can be of crucial importance to their
agricultural sectors but may also have trade distorting and production effects and that
domestic support reduction commitments may result from agricultural multilateral trade
negotiations under the General Agreement on Tariffs and Trade (GATT). Accordingly, where a
Party supports its agricultural producers, that Party should endeavor to work toward domestic
support measures that:
a) have minimal or no trade distorting or production effects; or
b) are exempt from any applicable domestic support reduction commitments that may be
negotiated under the GATT.
The Parties further recognize that a Party may change its domestic support measures, including
those that may be subject to reduction commitments, at the Party's discretion, subject to its
rights and obligations under the GATT.
Article 705: Export Subsidies
1. The Parties share the objective of the multilateral elimination of export subsidies for
agricultural goods and shall cooperate in an effort to achieve an agreement under the GATT t o
eliminate those subsidies.
2. The Parties recognize that export subsidies for agricultural goods may prejudice the interests
of importing and exporting Parties and, in particular, may disrupt the markets of importing
Parties. Accordingly, in addition to the rights and obligations of the Parties specified in Annex
702.1, the Parties affirm that it is inappropriate for a Party to provide an export subsidy for an
agricultural good exported to the territory of another Party where there are no other subsidized
imports of that good into the territory of that other Party.
3. Except as provided in Annex 702.1, where an exporting Party considers that a non-Party is
exporting an agricultural good to the territory of another Party with the benefit of export
subsidies, the importing Party shall, on written request of the exporting Party, consult with the
exporting Party with a view to agreeing on specific measures that the importing Party may
adopt to counter the effect of any such subsidized imports. If the importing Party adopts the
agreed-upon measures, the exporting Party shall refrain from applying, or immediately cease t o
apply, any export subsidy to exports of such good to the territory of the importing Party.
4. Except as provided in Annex 702.1, an exporting Party shall deliver written notice to the
importing Party at least three days, excluding weekends, prior to adopting an export subsidy
measure on an agricultural good exported to the territory of another Party. The exporting Party
shall consult with the importing Party within 72 hours of receipt of the importing Party's written
request, with a view to eliminating the subsidy or minimizing any adverse impact on the market
of the importing Party for that good. The importing Party shall, when requesting consultations
with the exporting Party, at the same time, deliver written notice to a third Party of the
request. A third Party may request to participate in 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, recognizing that such subsidies may have prejudicial effects on
the interests of the other Parties.
6. The Parties hereby establish a Working Group on Agricultural Subsidies, comprising

representatives of each Party, which shall meet at least semi-annually or as the Parties may
otherwise agree, to work toward elimination of all export subsidies affecting agricultural trade
between the Parties. The functions of the Working Group shall include:
a) monitoring the volume and price of imports into the territory of any Party of agricultural
goods that have benefitted from export subsidies;
b) providing a forum for the Parties to develop mutually acceptable criteria and procedures for
reaching agreement on the limitation or elimination of export subsidies for imports o f
agricultural goods into the territories of the Parties; and
c) reporting annually to the Committee on Agricultural Trade, established under Article 706, on
the implementation of this Article.
7. Notwithstanding any other provision of this Article:
a) if the importing and exporting Parties agree to an export subsidy for an agricultural good
exported to the territory of the importing Party, the exporting Party or Parties may adopt or
maintain such subsidy; and
b) each Party retains its rights to apply countervailing duties to subsidized imports o f
agricultural goods from the territory of a Party or non-Party.
Article 706: 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

Section;
b) providing a forum for the Parties to consult on issues related to this Section at least semi-
annually and as the Parties may otherwise agree; and
c) reporting annually to the Commission on the implementation of this Section.
Article 707: Advisory Committee on Private Commercial Disputes regarding Agricultural Goods
The Committee shall establish an Advisory Committee on Private Commercial Disputes regarding
Agricultural Goods, comprising persons with expertise or experience in the resolution of private
commercial disputes in agricultural trade. The Advisory Committee shall report and provide
recommendations to the Committee for the development of systems in the territory of each
Party to achieve the prompt and effective resolution of such disputes, taking into account any
special circumstance, including the perishability of certain agricultural goods.
For purposes of this Section:
agricultural good means a good provided for in any of the following:
provision.
(a)
Harmonized System (HS) Chapters 1 through 24 (other than a fish or fish product); or
(b)
HS subheading
2905.43
manitol
HS subheading
2905.44
sorbitol
HS heading
33.01
essential oils
HS headings
35.01 to 35.05
albuminoidal substances, modified starches, glues
HS subheading
3809.10
finishing agents
HS subheading
3823.60
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, cotton waste and cotton carded or combed
HS heading
53.01
raw flax
HS heading
53.02
raw hemp
customs duty means "customs duty" as defined in Article 318 (National Treatment and Market
Access for Goods - Definitions);
duty-free means "duty-free" as defined in Article 318;
fish or fish product means a fish or crustacean, mollusc or other aquatic invertebrate, marine
mammal, or a product thereof provided for in any of the following:
HS Chapter
03
fish and crustaceans, molluscs and other aquatic invertebrates
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
coral and similar materials
HS heading
05.09
natural sponges of animal origin
HS heading
05.11
products of fish or crustaceans, molluscs or other aquatic invertebrates; dead animals o f
Chapter 3
HS heading
15.04
fats and oils and their fractions, of fish or marine mammals
HS heading
16.03
"non-meat" extracts and juices
HS heading
16.04
prepared or preserved fish
HS heading
16.05
prepared preserved crustaceans, molluscs and other aquatic invertebrates;
HS subheading
2301.20
flours, meals, pellets of fish
material means "material" as defined in Article 415 (Rules of Origin - Definitions);
over-quota tariff rate means the rate of customs duty to be applied to quantities in excess o f
the quantity specified under a tariff rate quota;
sugar or syrup good means "sugar or syrup good" as defined in Annex 703.2;
tariff item means a "tariff item" as defined in Annex 401; and
tariff rate quota means a mechanism that provides for the application of a customs duty at a
certain rate to imports of a particular good up to a specified quantity (in-quota quantity), and
at a different rate to imports of that good that exceed that quantity.
Annex 702.1
Incorporation of Trade Provisions
1. Articles 701, 702, 704, 705, 706, 707, 710 and 711 of the Canada - United States Free
Trade Agreement apply, as between Canada and the United States, which Articles are hereby
incorporated into and made a part of this Agreement.
2. The definitions of the terms specified in Article 711 of the Canada - United States Free Trade
Agreement shall apply to the Articles incorporated by paragraph 1.
3. For purposes of this incorporation, any reference to Chapter Eighteen of the Canada -United
States Free Trade Agreement shall be deemed to be a reference to Chapter Twenty
(Institutional Arrangements and Dispute Settlement Procedures) of this Agreement.
4. The Parties understand that Article 710 of the Canada - United States Free Trade Agreement
incorporates the GATT rights and obligations of Canada and the United States with respect t o
agricultural, food, beverage and certain related goods, including exemptions by virtue o f
paragraph (1)(b) of the Protocol of Provisional Application of the GATT and waivers granted
under Article XXV of the GATT.
Annex 702.3
Intergovernmental Coffee Agreement
Notwithstanding Article 2101 (General Exceptions), neither Canada nor Mexico may adopt or
maintain a measure, pursuant to an intergovernmental coffee agreement, that restricts trade in
coffee between them.
Annex 703.2
Market Access
Section A - Mexico and the United States
1. This Section applies only as between Mexico and the United States.
Customs Duties and Quantitative Restrictions
2. With respect to agricultural goods, Article 309(1) and (2) (Import and Export Restrictions)
applies only to qualifying goods.
3. Each Party waives its rights under Article XI:2(c) of the GATT, and those rights as
incorporated by Article 309, regarding any measure adopted or maintained with respect to the
importation of qualifying goods.
4. Except with respect to a good set out in Section B or C of Annex 703.3 or Appendix
703.2.A.4, where a Party applies an over-quota tariff rate to a qualifying good pursuant to a
tariff rate quota set out in its Schedule to Annex 302.2, or increases a customs duty for a
sugar or syrup good to a rate, in accordance with paragraph 18, that exceeds the rate o f
customs duty for that good set out in its GATT Schedule of Tariff Concessions as of July 1,
1991, the other Party waives its rights under the GATT with respect to the application of that
rate of customs duty.
5. Notwithstanding Article 302(2) (Tariff Elimination), where an agreement resulting from

agricultural multilateral trade negotiations under the GATT enters into force with respect to a
Party pursuant to which it has agreed to convert a prohibition or restriction on its importation
of an agricultural good into a tariff rate quota or a customs duty, that Party may not apply t o
such good that is a qualifying good an over-quota tariff rate that is higher than the lower of the
over-quota tariff rate set out in:
a) its Schedule to Annex 302.2, and
b) that agreement, and paragraph 4 shall no longer apply to the other Party with respect t o
that good.
6. Each Party may count the in-quota quantity under a tariff rate quota applied to a qualifying
good in accordance with its Schedule to Annex 302.2 toward the satisfaction of commitments
regarding an in-quota quantity of a tariff rate quota or level of access under a restriction on the
importation of that good:
a) that have been agreed under the GATT, including as set out in its GATT Schedule of Tariff
Concessions; or
b) undertaken by the Party as a result of any agreement resulting from agricultural multilateral
trade negotiations under the GATT.
7. Neither Party may count toward the satisfaction of a commitment regarding an in-quota
quantity of a tariff rate quota in its Schedule to Annex 302.2 an agricultural good admitted or
entered into a maquiladora or foreign-trade zone and re-exported, including subsequent t o
processing.
8. The United States shall not adopt or maintain, with respect to the importation of an
agricultural qualifying good, any fee applied pursuant to section 22 of the U.S. Agricultural
Adjustment Act.
9. Neither Party may seek a voluntary restraint agreement from the other Party with respect t o
the exportation of meat that is a qualifying good.
10. Notwithstanding Chapter Four (Rules of Origin), for purposes of applying a rate of customs
duty to a good, the United States may consider as if it were non-originating a good provided for
in:
a) heading 12.02 that is exported from the territory of Mexico, if the good is not wholly
obtained in the territory of Mexico;
b) subheading 2008.11 that is exported from the territory of Mexico, if any material provided
for in heading 12.02 used in the production of that good is not wholly obtained in the territory
of Mexico; or
c) U.S. tariff item 1806.10.42 or 2106.90.12 that is exported from the territory of Mexico, i f
any material provided for in HS heading 1 7 01.99 used in the production of that good is not a
qualifying good.
11. Notwithstanding Chapter Four, for purposes of applying a rate of customs duty to a good,
Mexico may consider as if it were non-originating a good provided for in:
a) HS heading 12.02 that is exported from the territory of the United States, if that good is not
wholly obtained in the territory of the United States;
b) HS subheading 2008.11 that is exported from the territory of the United States, if any
material provided for in heading 12.02 used in the production of that good is not wholly
obtained in the territory of the United States; or
c) Mexican tariff item 1806.10.01 (except those with a sugar content less than 90 percent) or
2106.90.05 (except those that contain added flavoring matter) that is exported from the
territory of the United States, if any material provided for in HS subheading 1701.99 used in
the production of that good is not a qualifying good.
Restriction on Same-Condition Substitution Duty Drawback
12. Beginning on the date of entry into force of this Agreement, neither Mexico nor the United
States may refund the amount of customs duties paid, or waive or reduce the amount o f
customs duties owed, on any agricultural good imported into its territory that is substituted for
an identical or similar good that is subsequently exported to the territory of the other Party.
Trade in Sugar and Syrup Goods
13. The Parties shall consult by July 1 of each of the first 14 years beginning with 1994 t o
determine jointly, in accordance with Appendix 703.2.A.13, whether, and if so, by what quantity
either Party:
a) is projected to be a net surplus producer of sugar in the next marketing year; and
b) has been a net surplus producer in any marketing year beginning after the date of entry into
force of this Agreement, including the current marketing year.
14. For each of the first 14 marketing years beginning after the date of entry into force of this
Agreement, each Party shall accord duty-free treatment to a quantity of sugar and syrup goods
that are qualifying goods not less than the greatest of:
a) 7,258 metric tons raw value;
b) 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; and
c) subject to paragraph 15, the other Party's projected net production surplus for that
marketing year, as determined under paragraph 13 and adjusted in accordance with Appendix
703.2.A.13.
15. Subject to paragraph 16, the duty-free quantity of sugar and syrup goods under paragraph
14(c); shall not exceed the following ceilings:
a) for each of the first six marketing years, 25,000 metric tons raw value;
b) for the seventh marketing year, 150,000 metric tons raw value; and
c) for each of the eighth through 14th marketing years, 110 percent of the previous marketing
year's ceiling.
16. Beginning with the seventh marketing year, paragraph 15 shall not apply where, pursuant t o
paragraph 13, the Parties have determined the exporting Party to be a net surplus producer:
a) for any two consecutive marketing years beginning after the date of entry into force of this
Agreement;
b) for the previous and current marketing years; or
c) in the current marketing year and projected it to be a net surplus producer in the next
marketing year, unless subsequently the Parties determine that, contrary to the projection, the
exporting Party was not a net surplus producer for that year.
17. Mexico shall, beginning no later than six years after the date of entry into force of this
Agreement, apply on a most- favored-nation (MFN) basis a tariff rate quota for sugar and syrup
goods consisting of rates of customs duties no less than the lesser of the corresponding:
a) MFN rates of the United States in effect on the date that Mexico commences to apply the
tariff rate quota; and
b) prevailing MFN rates of the United States.
18. When Mexico applies a tariff rate quota under paragraph 17, it shall not apply on a sugar or
syrup good that is a qualifying good a rate of customs duty higher than the rate of customs
duty applied by the United States on such good.
19. Each Party shall determine the quantity of a sugar or syrup good that is a qualifying good
based on the actual weight of such good, converted as appropriate to raw value, without regard
to the good's packaging or presentation.
20. If the United States eliminates its tariff rate quota for sugar and syrup goods imported from
non-Parties, at such time the United States shall accord to such goods that are qualifying goods
the better of the treatment, as determined by Mexico, of:
a) the treatment provided for in paragraphs 14 through 16; or
b) the MFN treatment granted by the United States to non-Parties.
21. Except as provided in paragraph 22, Mexico shall not be required to apply the applicable
rate of customs duty provided in this Annex or in its Schedule to Annex 302.2 to a sugar or
syrup good, or sugar-containing product, that is a qualifying good where the United States has
granted or will grant benefits under any re-export program or any like program in connection
with the export of the good. The United States shall notify Mexico in writing within two days,
excluding weekends, of any export to Mexico of such a good for which the benefits of any re-
export program or any other like program have been or will be claimed by the exporter.
22. Notwithstanding any other provision of this Section:
a) the United States shall accord duty-free treatment to imports o f
(i) raw sugar that is a qualifying good that will be refined in the territory of the United States
and re-exported to the territory of Mexico, and
(ii) refined sugar that is a qualifying good that has been refined from raw sugar produced in, and
exported from, the territory of the United States;
b) Mexico shall accord duty-free treatment to imports o f
(i) raw sugar that is a qualifying good that will be refined in the territory of Mexico and re-
exported to the territory of the United States, and
(ii) refined sugar that is a qualifying good that has been refined from raw sugar produced in, and
exported from, the territory of Mexico; and
c) imports qualifying for duty-free treatment pursuant to subparagraphs (a) and (b) shall not be
subject to, or counted under, any tariff rate quota.
Agricultural Grading and Marketing Standards.
23. Where a Party adopts or maintains a measure respecting the classification, grading or
marketing of a domestic agricultural good, it shall accord treatment to a like qualifying good
destined for processing no less favorable than it accords under the measure to the domestic
good destined for processing. The importing Party may adopt or maintain measures to ensure
that such imported good is processed.
24. Paragraph 23 shall be without prejudice to the rights of either Party under the GATT or
under Chapter Three (National Treatment and Market Access) regarding measures respecting
the classification, grading or marketing of an agricultural good, whether or not destined for
processing.
25. The Parties hereby establish a Working Group, comprising representatives of Mexico and the
United States, which shall meet annually or as otherwise agreed. The Working Group shall
review, in coordination with the Committee on Standards-Related Measures established under
Article 913 (Committee on Standards- Related Measures), the operation of agricultural grade
and quality standards as they affect trade between the Parties, and shall resolve issues that
may arise regarding the operation of the standards. This Working Group shall report to the
Committee on Agricultural Trade established under Article 706.
Definitions
26. For purposes of this Section:
marketing year means a 12-month period beginning October 1;
net production surplus means the quantity by which a Party's domestic production of sugar
exceeds its total consumption of sugar during a marketing year, determined in accordance with
this Section;
net surplus producer means a Party that has a net production surplus;
plantation white sugar means crystalline sugar that has not been refined and is intended for
human consumption without further processing or refining;
qualifying good means an originating good that is an agricultural good, except that in
determining whether such good is an originating good, operations performed in or materials
obtained from Canada shall be considered as if they were performed in or obtained from a non-
Party;
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-containing product means a good containing sugar; and
wholly obtained in the territory of means harvested in the territory of.
Section B - Canada and Mexico
1. This Section applies only as between Canada and Mexico.
Customs Duties and Quantitative Restrictions
2. With respect to agricultural goods, Article 309(1) and (2) (Import and Export Restrictions)
applies only to qualifying goods.
3. Except with respect to a good set out in Sections A or B of Annex 703.3., where a Party
applies an over-quota tariff rate to a qualifying good pursuant to a tariff rate quota set out in
its Schedule to Annex 302.2 or increases a customs duty for a sugar or syrup good to a rate
that exceeds the rate of customs duty for that good set out in its GATT Schedule of Tariff
Concessions as of July 1, 1991, the other Party waives its rights under the GATT with respect
to the application of that rate of customs duty.
4. Notwithstanding Article 302(2) (Tariff Elimination), where an agreement resulting from

agricultural multilateral trade negotiations under the GATT enters into force with respect to a
Party pursuant to which it has agreed to convert a prohibition or restriction on its importation
of an agricultural good into a tariff rate quota or a customs duty, that Party may not apply t o
such good that is a qualifying good an over-quota tariff rate that is higher than the lower of the
over-quota tariff rate in:
a) its Schedule to Annex 302.2, and
b) that agreement,
and paragraph 3 shall no longer apply to the other Party with respect to that good.
5. Each Party may count the in-quota quantity under a tariff rate quota applied to a qualifying
good in accordance with its Schedule to Annex 302.2 toward the satisfaction of commitments
regarding an in-quota quantity of a tariff rate quota or level of access under a restriction on the
importation of that good:
a) that have been agreed under the GATT, including as set out in its GATT Schedule of Tariff
Concessions; or
b) undertaken by the Party as a result of any agreement resulting from agricultural multilateral
trade negotiations under the GATT.
6. Subject to this Section and for purposes of this Section, Canada and Mexico incorporate their
respective rights and obligations with respect to agricultural goods under the GATT and
agreements negotiated under the GATT, including their rights and obligations under Article XI of
the GATT.
7. Notwithstanding paragraph 6 and Article 309:
a) the rights and obligations of the Parties under Article XI:2(c)(i) of the GATT and those rights
as incorporated by Article 309 shall apply with respect to trade in agricultural goods only to the
dairy, poultry and egg goods set out in Appendix 703.2.B.7; and
b) with respect to such dairy, poultry and egg goods that are qualifying goods, either Party may
adopt or maintain a prohibition or restriction or a customs duty on the importation of such good
consistent with its rights and obligations under the GATT.
8. Without prejudice to Chapter Eight (Emergency Action), neither Party may seek a voluntary
restraint agreement from the other Party with respect to the exportation of a qualifying good.
9. Notwithstanding Chapter Four (Rules of Origin), Mexico may treat a good provided for in
Mexican tariff item 1806.10.01 (except those with a sugar content less than 90 percent) or
2106.90.05 (except those that contain added flavoring matter) that is exported from the
territory of Canada as non- originating for purposes of applying a rate of customs duty to that
good, if any material provided for in HS subheading 1701.99 used in the production of such
good is not a qualifying good.
10. Notwithstanding Chapter Four (Rules of Origin), Canada may treat a good provided for in
Canadian tariff item 1806.10.10 or 2106.90.21 that is exported from the territory of Mexico as
non-originating for purposes of applying a rate of customs duty to that good, if any material
provided for in HS subheading 1701.99 used in the production of such good is not a qualifying
good.
Trade in Sugar
11. Mexico shall apply a rate of customs duty equal to its most-favored-nation over-quota tariff
rate to a sugar or syrup that is a qualifying good.
12. Canada may apply a rate of customs duty on a sugar or syrup good that is a qualifying good
equal to the rate of customs duty applied by Mexico pursuant to paragraph 11.
Agricultural Grading and Marketing Standards
13. The Parties hereby establish a Working Group, comprising representatives of Canada and
Mexico, which shall meet annually or as otherwise agreed. The Working Group shall review, in
coordination with the Committee on Standards-Related Measures established under Article 9 1 3
(Committee on Standards-Related Measures), the operation of agricultural grade and quality
standards as they affect trade between the Parties, and shall resolve issues that may arise
regarding the operation of the standards. This Working Group shall report to the Committee on
Agricultural Trade established under Article 706.
Definitions
14. For purposes of this Section:
qualifying good means an originating good that is an agricultural good except that, in
determining whether such good is an originating good, operations performed in or material
obtained from the United States shall be considered as if they were performed in or obtained
from a non-Party.
Section C - Definitions
For purposes of this Annex:
sugar or syrup good means:
a) for imports into Canada, a good provided for in any of the current tariff items 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, 1806.10.10 and 2106.90.21 of the Canadian Tariff Schedule;
b) for imports into Mexico, a good provided for in any of the current tariff items 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 percent) and 2106.90.05 (except those that contain flavoring matter) o f
the General Import Duty Act ("Ley del Impuesto General de Importación"); and
c) for imports into the United States, a good provided for in any of the current tariff items
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.
Appendix 703.2.A.4
Goods not Subject to Annex 703.2.A.4
provision.
Schedule of Mexico
Mexican Tariff Item
Description
2009.11.01
Orange juice, frozen
2009.19.01
Orange juice, with a grade of concentration not greater than 1.5 (single-strength orange juice)
U.S. Tariff Item
Description
2009.11.00
Orange juice, frozen
2009.19.20
Orange juice, not frozen, not concentrated (single-strength orange juice
Appendix 703.2.A.13
Determination and Adjustment of Net Production Surplus
1. For purposes of Section A(14)(c), where the Parties project a net production surplus for a
Party for the next marketing year, the projected surplus shall be:
a) increased by the amount, if any, by which the actual net production surplus exceeds the
projected net production surplus in the most recent marketing year for which the Parties
projected a net production surplus for that Party; or
b) decreased by the amount, if any, by which the projected net production surplus exceeds the
actual net production surplus in the most recent marketing year for which the Parties projected
a net production surplus for that Party;
as further demonstrated by the following formulas:
ANPS = (PPy - CPy) + CF
where:
ANPS =
adjusted net production surplus
PP =
projected domestic production of sugar
CP =
projected total consumption of sugar
CF =
correction factor
y =
next marketing year,
and
CF = (PAys - CAys) - (PPys - CPys)
where:
PA =
actual domestic production of sugar
CA =
actual total consumption of sugar
ys =
most recent previous marketing year for which the
Parties projected a net production surplus for that
Party.
2. For purposes only of paragraph 1, neither the projected net production surplus (PPys -CPys)
nor the actual net production surplus (PAys - CAys) in the most recent marketing year for which
the Parties projected a net production surplus for that Party may be considered to:
a) exceed the quantity, if any, in Section A(15) applicable to that year; or
b) be lower than the greater o f
(i) 7,258 metric tons raw value, or
(ii) the quantity in paragraph 14(b) of Section A applicable to that year.
3. In appropriate circumstances, a Party shall consider adjustments to projections of its net

production surplus when:
Fc greater than (B + 10 %)
where
F
is the percentage change in stocks from the beginning to the
end of a marketing year z, expressed as a positive percentage
c
is current marketing year
F
is calculated in accordance with the following formula:
F=
Sb - Se
x 100
------------
Sb
Sb
beginning stocks in marketing year z
Se
ending stocks in marketing year z
B
the average annual percentage change in stocks over the previous 5 marketing years, calculated
in accordance with the
following formula:
B=
{ 5 / Summation of FN }
N=1
-----------------------
5
N
previous marketing years, ranging from 1 (first preceding year) to 5 (fifth preceding year).
4. For purposes of determining net production surplus or projected net production surplus:
a) domestic production means all sugar and syrup goods derived from sugar cane or sugar beets
grown in a Party's territory; and
b) total consumption means all sugar and syrup goods consumed directly, or indirectly in the
form of a good containing such goods, in the territory of a Party.
5. Each Party shall permit representatives from the other Party to observe and comment on its
statistics on production, consumption, trade and stocks and on the methodology it uses t o
prepare such statistics.
6. Statistics on production, consumption, trade and stocks shall be provided by:
a) the Secretaría de Agricultura y Recursos Hidráulicos, the Secretaría de Comercio y Fomento

Industrial, and the Secretaría de Hacienda y Crédito Público; and
b) the U.S. Department of Agriculture (USDA).
Appendix 703.2.B.7
Dairy, Poultry and Egg Goods
Note: (For purposes of reference only, descriptions are provided next to the corresponding tariff
provision).
Schedule of Canada
For Canada, a dairy, poultry or egg good is a good provided for in one of the following Canadian
tariff items:
Canadian Tariff Items

Description
0105.11.20
Broilers of the species Gallus domesticus for domestic production, weighing not more than 1 8 5
g
0105.91.00
Live fowls of the species Gallus domesticus, weighing 185g. or more
0105.99.00
Live ducks, geese, turkeys and guinea fowls, weighing 185g. or more
0207.10.00
Meat of poultry of heading No. 01.05, not cut in pieces, fresh or chilled
0207.21.00
Meat of fowls of the species Gallus domesticus, not cut in pieces, frozen
0207.22.00
Meat of turkeys, not cut in pieces, frozen
0207.39.00
Cut meat and edible offal (including livers other than fatty livers of geese or ducks), of the
poultry of heading No. 01.05, fresh or chilled
0207.41.00
Cut meat and edible offal, other than livers, of fowls of the species Gallus domesticus, frozen
0207.42.00
Cut meat and edible offal, other than livers, of turkeys, frozen
0207.50.00
Livers of poultry of heading No. 01.05, frozen
0209.00.20
Poultry fat (not rendered), fresh, chilled, frozen, salted, in brine, dried or smoked
0210.90.10
Meat of poultry, salted, in brine, dried or smoked
0401.10.00
Milk and cream, not concentrated nor containing added sugar or other sweetening matter of a
fat content, by weight, not exceeding 1 percent
0401.20.00
Milk and cream, not concentrated nor containing added sugar or other sweetening matter of a
fat content, by weight, exceeding 1 percent but not exceeding 6 percent
0401.30.00
Milk and cream, not concentrated nor containing added sugar or other sweetening matter, of a
fat content, by weight, exceeding 6 percent
0402.10.00
Milk and cream, concentrated or containing added sugar or other sweetening matter, in powder,
granules or other solid forms, of a fat content, by weight, not exceeding 1.5 percent
0402.21.10
Milk, concentrated, not containing added sugar or other sweetening matter, in powder, granules
or other solid forms, of a fat content, by weight, exceeding 1.5 percent
0402.21.20
Cream, concentrated, not containing added sugar or other sweetening matter, in powder,
granules or other solid forms, of a fat content, by weight, exceeding 1.5 percent
0402.29.10
Milk, whether or not concentrated, containing added sugar or other sweetening matter, in
powder, granules or other solid forms, of a fat content, by weight, exceeding 1.5 percent
0402.29.20
Cream, whether or not concentrated, containing added sugar or other sweetening matter, in
powder, granules or other solid forms, of a fat content, by weight, exceeding 1.5 percent
0402.91.00
Milk and cream, concentrated, not containing added sugar or other sweetening matter, not in
powder, granules or other solid forms
0402.99.00
Milk and cream, whether or not concentrated, containing added sugar or other sweetening
matter, not in powder, granules or other solid forms
0403.10.00
Yogurt
0403.90.10
Powdered buttermilk
0403.90.90
Liquid buttermilk, curdled milk and cream, kephir and other fermented or acidified milk and
cream, whether or not concentrated or containing added sugar or other sweetening matter or
flavored or containing added fruit, nuts or cocoa
0404.10.10
Whey powder and modified whey powder, whether or not concentrated or containing added
sugar or other sweetening matter
0404.10.90
Whey and modified whey, not in powder, whether or not concentrated or containing added
sugar or other sweetening matter
0404.90.00
Products consisting of natural milk constituents, whether or not containing added sugar or other
sweetening matter, not elsewhere specified or included
0405.00.10
Butter
0405.00.90
Fats and oils derived from milk, other than butter
0406.10.00
Fresh (unripened or uncured) cheese, including whey cheese, and curd
0406.20.10
Cheddar cheese and cheddar types of cheese, grated or powdered
0406.20.90
Grated or powdered cheese of all kinds, other than cheddar and cheddar types
0406.30.00
Processed cheese, not grated or powdered
0406.40.00
Blue-veined cheese
0406.90.10
Cheddar cheese and cheddar types of cheese, not grated, powdered or processed
0406.90.90
Other cheese not elsewhere specified or included
0407.00.00
Birds' eggs, in shell, f resh, preserved or cooked
0408.11.00
Dried egg yolks, whether or not containing added sugar or other sweetening matter
0408.19.00
Egg yolks, fresh, cooked by steaming or by boiling in water, moulded, frozen or otherwise
preserved, whether or not containing added sugar or other sweetening matter
0408.91.00
Bird's eggs, not in shell, dried, whether or not containing added sugar or other sweetening
matter
0408.99.00
Birds' eggs, not in shell, fresh, cooked by steaming or by boiling in water, moulded, frozen or
otherwise preserved, whether or not containing added sugar or other sweetening matter
1601.00.11
Sausages and similar products of meat, meat offal or blood of poultry of heading No. 01.05 or
food preparation based on these products, in airtight containers
1602.10.10
Homogenized preparations of chicken or turkey
1602.20.20
Poultry liver paste
1602.31.10
Prepared meals of prepared or preserved turkey meat, meat offal or blood, other than sausages
and similar products
1602.31.91
Prepared or preserved turkey meat, meat offal or blood, other than sausages and similar
products, and other than prepared meals, in air-tight containers
1602.31.99
Prepared or preserved turkey meat, meat offal of blood, other than sausages and similar
products, other than prepared meals, not in air-tight containers
1602.39.10
Prepared meals of prepared or preserved meat, meat offal or blood of poultry of heading No.
01.05 other than turkey (i.e., Gallus domesticus, ducks, geese or guinea fowls), other than
sausages and similar products
1602.39.91
Prepared or preserved meat, meat offal or blood of poultry of heading No. 01.05 other than
turkey (i.e., Gallus domesticus, ducks, geese or guinea fowls), other than sausages and similar
products, and other than prepared meals, in air-tight containers
1602.39.99
Prepared or preserved meat, meat offal or blood, of poultry of heading No. 01.05 other than
turkey (i.e., Gallus domesticus, ducks, geese or guinea fowls), other than sausages and similar
products, other than prepared meals, not in air-tight containers
1901.90.31
Food preparations of goods of headings Nos. 04.01 to 04.04, not containing cocoa powder or
containing cocoa powder in a proportion by weight of less than 10 percent, not elsewhere
specified or included, containing more than 10 percent on a dry weight basis of milk solids
2105.00.00
Ice cream and other edible ice, whether or not containing cocoa
2106.90.70
Egg preparations not elsewhere specified or included
2309.90.31
Complete feeds and feed supplements, including concentrates, containing over 50 percent by
weight in the dry state of milk solids
3501.10.00
Casein
3501.90.00
Caseinates and other casein derivatives; casein glues
3502.10.10
Egg albumin, dried, evaporated, desiccated or powdered
3502.10.90
Other egg albumin
Schedule of Mexico
For Mexico, a dairy, poultry or egg good is a good provided for in one of the following tariff
items:
Mexican Tariff Items

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
Turkey
0207.10.99
Other
0207.21.01
Chickens
0207.22.01
Turkey
0207.39.01
Mechanically deboned of poultry or turkey (not provided for in heading 16.01 or 16.02)
0207.39.02
Turkey
0207.39.99
Other
0207.41.01
0207.41.99
Other
0207.42.01
0207.42.99
Other
0207.50.01
Poultry livers, frozen
0209.00.01
Chicken or turkey f a t
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 1 kg
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 4 7
percent without exceeding 72 percent (called "danloo, edam, fontan, fontina, fynbo, gouda,
Avarti, maribo, samsoe, esron, italico, kernhem, Saint-Nectaire, Saint-Paulin, or talegi " )
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
1601.00.01
Sausages or similar products of poultry or turkey
1602.10.01
Homogenized preparations of poultry or turkey
1602.20.01
Prepared or preserved liver of poultry or turkey
1602.31.01
Prepared or preserved turkey meat
1602.39.99
Other
1901.90.03
Food preparations containing over 10 percent, by weight, of milk solids
2105.00.01
Ice cream and similar products
2106.90.09
Egg preparations
2309.90.11
Preparations containing over 50 percent by weight of milk solids
3501.10.01
Casein
3501.90.01
Casein glues
3501.90.02
Caseinates
3501.90.99
Other
3502.10.01
Egg albumin
Annex 703.3
Special Safeguard Goods
Note: (For purposes of reference only, descriptions are provided next to the corresponding tariff
provision).
Section A - Canada
Canadian Tariff Items

Description
0603.10.90
Fresh cut flowers and flower buds, other than orchids, of a kind suitable for bouquets or for
ornamental purposes.
0702.00.91
Tomatoes, fresh or chilled, not for processing, (dutiable period).
0703.10.31
Onions or shallots, green, fresh or chilled (dutiable period).
0707.00.91
Cucumbers or gherkins, fresh or chilled, not for processing (dutiable period).
0710.80.20
Broccoli and cauliflowers, uncooked or cooked by steaming or boiling in water, frozen.
0811.10.10
Strawberries, uncooked or cooked by steaming or boiling in water, frozen, whether or not
containing added sugar or other sweetening matter, for processing.
0811.10.90
Strawberries, uncooked or cooked by steaming or boiling in water, frozen, whether or not
containing added sugar or other sweetening matter, other than for processing.
2002.90.00
Tomatoes prepared or preserved otherwise than by vinegar or acetic acid, other than whole or
in pieces.
Section B - Mexico
Mexican Tariff Items

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, 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
U.S. Tariff Items

Description
0702.00.06
Tomatoes (except cherry tomatoes), fresh or chilled; if entered during the period from
November 15 to the last day of the following February, inclusive
0702.00.20
Tomatoes (except cherry tomatoes), fresh or chilled; if entered during the period from March 1
to July 14, inclusive
0703.10.40
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
0709.30.20
Eggplants (aubergines), fresh or chilled, if entered during the period from April 1 to June 30,
inclusive
0709.60.00
"Chili" peppers; if entered during the period from October 1 to July 31, inclusive (current
0709.60.00.20)
0709.90.20
Squash, fresh or chilled; if entered during the period from October 1 to the following June 30,
inclusive
0807.10.40
Watermelons, fresh; if entered during the period from May 1 to September 30, inclusive.
Section B - Sanitary and Phytosanitary Measures
In order to establish a framework of rules and disciplines to guide the development, adoption
and enforcement of sanitary and phytosanitary measures, this Section applies to any such
measure of a Party that may, directly or indirectly, affect trade between the Parties.
Article 710: Relation to Other Chapters
Articles 301 (National Treatment) and 309 (Import and Export Restrictions), and the provisions
of Article XX(b) of the GATT as incorporated into Article 2101(1) (General Exceptions), do not
apply to any sanitary or phytosanitary measure.
Article 711: 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 Section.
Article 712: Basic Rights and Obligations
Right to Take Sanitary and Phytosanitary Measures
1. Each Party may, in accordance with this Section, 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 Section, each Party may, in protecting human,
animal or plant life or health, establish its appropriate levels of protection in accordance with
Article 715.
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 o f
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 on trade between the Parties.
Article 713: International Standards and Standardizing Organizations
1. Without reducing the level of protection of human, animal or plant life or health, each
Partyshall 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 712. 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
Section.
3. Nothing in Paragraph 1 shall be construed to prevent a Party from adopting, maintaining or

applying, in accordance with the other provisions of this Section, 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 the 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 714: 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 Section, pursue equivalence
of their respective sanitary and 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 on by those Parties, to demonstrate objectively, subject t o
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 provide to the exporting Party, on request, its reasons in writing for a determination
under subparagraph (b).
3. For purposes of establishing equivalence, each exporting Party shall, on 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 715: 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 the risk, also take into account the following economic
factors, where relevant:
a) loss of production or sales that may result from the 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 712(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. The 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 the light of the 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, on the request of another Party and
in accordance with this Section, allow for such a phased application, or grant specified
exceptions for limited periods from the measure, taking into account the requesting Party's
export interests.
Article 716: 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 a measure is produced
and the area in its territory to which the good is destined, taking into account any relevant
conditions, including those relating to transportation and handling, between those 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 its 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 Section:
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. The 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, on request, on
specific requirements the fulfillment of which allows a good produced in an area of low pest or
disease prevalence in the territory of an exporting Party to be imported into the territory of the
importing Party and achieves the importing Party's appropriate level of protection.
Article 717: Control, Inspection and Approval Procedures
1. Each Party, with respect to any control or inspection procedure that it conducts:
(a) shall initiate and complete the procedure as expeditiously as possible and in no less
favorable manner for a good of another Party than for a like good of the Party or of any other
country;
(b) shall publish the normal processing period for the procedure or communicate the anticipated
processing period to the applicant on request;
(c) shall ensure that the competent body
(i) on receipt of an application, promptly examines the completeness of the documentation and
informs the applicant in a precise and complete manner of any deficiency,
(ii) transmits to the applicant as soon as possible the results of the procedure in a form that is
precise and complete so that the applicant may take any necessary corrective action,
(iii) where the application is deficient, proceeds as far as practicable with the procedure if the
applicant so requests, and
(iv) informs the applicant, on request, of the status of the application and the reasons for any
delay;
(d) shall limit the information the applicant is required to supply to that necessary for
conducting the procedure;
(e) shall accord confidential or proprietary information arising from, or supplied in connection
with, the procedure conducted for a good of another Party
(i) treatment no less favorable than for a good of the Party, and
(ii) in any event, treatment that protects the applicant's legitimate commercial interests, to the
extent provided under the Party's law;
(f) shall limit any requirement regarding individual specimens or samples of a good to that which
is reasonable and necessary;
(g) should not impose a fee for conducting the procedure that is higher for a good of another
Party than is equitable in relation to any such fee it imposes for its like goods or for like goods
of any other country, taking into account communication, transportation and other related
costs;
(h) should use criteria for selecting the location of facilities at which the procedure is conducted
that do not cause unnecessary inconvenience to an applicant or its agent;
(i) shall provide a mechanism to review complaints concerning the operation of the procedure
and to take corrective action when a complaint is justified;
(j) should use criteria for selecting samples of goods that do not cause unnecessary
inconvenience to an applicant or its agent; and
(k) shall limit the procedure, for a good modified subsequent to a determination that the good
fulfills the requirements of the applicable sanitary or phytosanitary measure, to that necessary
to determine that the good continues to fulfill the requirements of that measure.
2. Each Party shall apply, with such modifications as may be necessary, paragraphs 1(a) through
(i) to its approval procedures.
3. Where an importing Party's sanitary or phytosanitary measure requires the conduct of a
control or inspection procedure at the level of production, an exporting Party shall, on the
request of the importing Party, take such reasonable measures as may be available to it t o
facilitate access in its territory and to provide assistance necessary to facilitate the conduct o f
the importing Party's control or inspection procedure.
4. A Party maintaining an approval procedure may require its approval for the use of an additive,
or its establishment of a tolerance for a contaminant, in a food, beverage or feedstuff, under
that procedure prior to granting access to its domestic market for a food, beverage or feedstuff
containing that additive or contaminant. Where such Party so requires, it shall consider using a
relevant international standard, guideline or recommendation as the basis for granting access
until it completes the procedure.
Article 718: Notification, Publication and Provision of Information
1. Further to Articles 1802 (Publication) and 1803 (Notification and Provision of Information),
each Party proposing to adopt or modify a sanitary or phytosanitary measure of general
application at the federal level shall:
(a) at least 60 days prior to the adoption or modification of the measure, other than a law,
publish a notice and notify in writing the other Parties of the proposed measure and provide t o
the other Parties and publish the full text of the proposed measure, in such a manner as t o
enable interested persons to become acquainted with the proposed measure;
(b) identify in the notice and notification the good to which the measure would apply, and
provide a brief description of the objective and reasons for the measure;
(c) provide a copy of the proposed measure to any Party or interested person that so requests
and, wherever possible, identify any provision that deviates in substance from relevant
international standards, guidelines or recommendations; and
(d) without discrimination, allow other Parties and interested persons to make comments in
writing and shall, on request, discuss the comments and take the comments and the results o f
the discussions into account.
2. Each Party shall seek, through appropriate measures, to ensure, with respect to a sanitary or
phytosanitary measure of a state or provincial government:
(a) that, at an early appropriate stage, a notice and notification of the type referred to in
paragraphs 1(a) and (b) are made prior to their adoption; and
(b) observance of paragraphs 1(c) and (d).
3. Where a Party considers it necessary to address an urgent problem relating to sanitary or

phytosanitary protection, it may omit any step set out in paragraph 1 or 2, provided that, on
adoption of a sanitary or phytosanitary measure, it shall:
(a) immediately provide to the other Parties a notification of the type referred to in paragraph
1(b), including a brief description of the urgent problem;
(b) provide a copy of the measure to any Party or interested person that so requests; and
(c) without discrimination, allow other Parties and interested persons to make comments in
4. Each Party shall, except where necessary to address an urgent problem referred to in
paragraph 3, allow a reasonable period between the publication of a sanitary or phytosanitary
measure of general application and the date that it becomes effective to allow time for
interested persons to adapt to the measure.
5. Each Party shall designate a government authority responsible for the implementation at the
federal level of the notification provisions of this Article, and shall notify the other Parties
thereof. Where a Party designates two or more government authorities for this purpose, it shall
provide to the other Parties complete and unambiguous information on the scope o f
responsibility of each such authority.
6. Where an importing Party denies entry into its t erritory of a good of another Party because i t
does not comply with a sanitary or phytosanitary measure, the importing Party shall provide a
written explanation to the exporting Party, on request, that identifies the applicable measure
and the reasons that the good is not in compliance.
Article 719: Inquiry Points
1. Each Party shall ensure that there is one inquiry point that is able to answer all reasonable
inquiries from other Parties and interested persons, and to provide relevant documents,
regarding:
(a) any sanitary or phytosanitary measure of general application, including any control or
inspection procedure or approval procedure, proposed, adopted or maintained in its territory a t
the federal, state or provincial government level;
(b) the Party's risk assessment procedures and factors it considers in conducting the
assessment and in establishing its appropriate levels of protection;
(c) the membership and participation of the Party, or its relevant federal, state or provincial
government authorities in international and regional sanitary and phytosanitary organizations
and systems, and in bilateral and multilateral arrangements within the scope of this Section, and
the provisions of those systems and arrangements; and
(d) the location of notices published pursuant to this Section or where such information can be
obtained.
2. Each Party shall ensure that where copies of documents are requested by another Party or by
interested persons in accordance with this Section, they are supplied at the same price, apart
from the actual cost of delivery, as the price for domestic purchase.
Article 720: Technical Cooperation
1. Each Party shall, on the request of another Party, facilitate the provision of technical advice,
information and assistance, on mutually agreed terms and conditions, to enhance that Party's
sanitary and phytosanitary measures and related activities, including research, processing
technologies, infrastructure and the establishment of national regulatory bodies. Such
assistance may include credits, donations and grants for the acquisition of technical expertise,
training and equipment that will facilitate the Party's adjustment to and compliance with a
Party's sanitary or phytosanitary measure.
2. Each Party shall, on the request of another Party:
(a) provide to that Party information on its technical cooperation programs regarding sanitary
or phytosanitary measures relating to specific areas of interest; and
(b) consult with the other Party during the development of, or prior to the adoption or change
in the application of, any sanitary or phytosanitary measure.
Article 721: Limitations on the Provision of Information

Nothing in this Section shall be construed to require a Party to:
(a) communicate, publish texts or provide particulars or copies of documents other than in an
official language of the Party; or
(b) furnish any information the disclosure of which would impede law enforcement or otherwise
be contrary to the public interest or would prejudice the legitimate commercial interests o f
particular enterprises.
Article 722: Committee on Sanitary and Phytosanitary Measures
1. The Parties hereby establish a Committee on Sanitary and Phytosanitary Measures,

comprising representatives of each Party who have responsibility for sanitary and phytosanitary
matters.
2. The Committee should facilitate:
(a) the enhancement of food safety and improvement of sanitary and phytosanitary conditions
in the territories of the Parties;
(b) activities of the Parties pursuant to Articles 713 and 714;
(c) technical cooperation between the Parties, including cooperation in the development,
application and enforcement of sanitary or phytosanitary measures; and
(d) consultations on specific matters relating to sanitary or phytosanitary measures.
3. The Committee:
(a) shall, to the extent possible, in carrying out its functions, seek the assistance of relevant
international and North American standardizing organizations to obtain available scientific and
technical advice and minimize duplication of effort;
(b) may draw on such experts and expert bodies as it considers appropriate;
(c) shall report annually to the Commission on the implementation of this Section;
(d) shall meet on the request of any Party and, unless the Parties otherwise agree, at least once
each year; and
(e) may, as it considers appropriate, establish and determine the scope and mandate of working
groups.
Article 723: Technical Consultations
1. A Party may request consultations with another Party on any matter covered by this Section.
2. Each Party should use the good offices of relevant international and North American
standardizing organizations, including those referred to in Article 713(5), for advice and
assistance on sanitary and phytosanitary matters within their respective mandates.
3. Where a Party requests consultations regarding the application of this Section to a Party's
sanitary or phytosanitary measure, and so notifies the Committee, the Committee may facilitate
the consultations, if i t does not consider the matter itself, by referring the matter for non-
binding technical advice or recommendations to a working group, including an ad hoc working
group, or to another forum.
4. The Committee should consider any matter referred to it under paragraph 3 as expeditiously
as possible, particularly regarding perishable goods, and promptly forward to the Parties any
technical advice or recommendations that it develops or receives concerning the matter. The
Parties involved shall provide a written response to the Committee concerning the technical
advice or recommendations within such time as the Committee may request.
5. Where the involved Parties have had recourse to consultations facilitated by the Committee
under paragraph 3, the consultations shall, on the agreement of the Parties involved, constitute
consultations under Article 2006 (Consultations).
6. The Parties confirm that a Party asserting that a sanitary or phytosanitary measure o f
another Party is inconsistent with this Section shall have the burden of establishing the
inconsistency.
Article 724: Definitions For purposes of this Section:

animal includes fish and wild fauna;
appropriate level of protection means the level of protection of human, animal or plant life or
health in the territory of a Party that the Party considers appropriate;
approval procedure means any registration, notification or other mandatory administrative

procedure for:
(a) approving the use of an additive for a stated purpose or under stated conditions; or
(b) establishing a tolerance for a stated purpose or under stated conditions for a contaminant,
in a food, beverage or feedstuff prior to permitting the use of the additive or the marketing of a
food, beverage or feedstuff containing the additive or contaminant;
area means a country, part of a country or all or parts of several countries;
area of low pest or disease prevalence means an area in which a specific pest or disease occurs
at low levels;
contaminant includes pesticide and veterinary drug residues and extraneous matter;
control or inspection procedure means any procedure used, directly or indirectly, to determine
that a sanitary or phytosanitary measure is fulfilled, including sampling, testing, inspection,
evaluation, verification, monitoring, auditing, assurance of conformity, accreditation,
registration, certification or other procedure involving the physical examination of a good, of the
packaging of a good, or of the equipment or facilities directly related to production, marketing
or use of a good, but does not mean an approval procedure;
international standard, guideline or recommendation means a standard, guideline or

recommendation:
(a) regarding food safety, adopted by the Codex Alimentarius Commission, including one
regarding decomposition elaborated by the Codex Committee on Fish and Fishery Products, food
additives, contaminants, hygienic practice, and methods of analysis and sampling;
(b) regarding animal health and zoonoses, developed under the auspices of the International
Office of Epizootics;
(c) regarding plant health, developed under the auspices of the Secretariat of the International
Plant Protection Convention in cooperation with the North American Plant Protection
Organization; or
(d) established by or developed under any other international organization agreed on by the
Parties;
pest includes a weed;

pest-free or disease-free area means an area in which a specific pest or disease does not occur;
plant includes wild flora;
risk assessment means an evaluation of:
(a) the potential for the introduction, establishment or spread of a pest or disease and
associated biological and economic consequences; or
(b) the potential for adverse effects on human or animal life or health arising from the presence
of an additive, contaminant, toxin or disease-causing organism in a food, beverage or feedstuff;
sanitary or phytosanitary measure means a measure that a Party adopts, maintains or applies
to:
(a) protect animal or plant life or health in its territory from risks arising from the introduction,
establishment or spread of a pest or disease,
(b) protect human or animal life or health in its territory from risks arising from the presence o f
an additive, contaminant, toxin or disease-causing organism in a food, beverage or feedstuff,
(c) protect human life or health in its territory from risks arising from a disease-causing
organism or pest carried by an animal or plant, or a product thereof, or
(d) prevent or limit other damage in its territory arising from the introduction, establishment or
spread of a pest,
including end product criteria; a product-related processing or production method; a testing,

inspection, certification or approval procedure; a relevant statistical method; a sampling
procedure; a method of risk assessment; a packaging and labelling requirement directly related
to food safety; and a quarantine treatment, such as a relevant requirement associated with the
transportation of animals or plants or with material necessary for their survival during
transportation; and
scientific basis means a reason based on data or information derived using scientific methods.
Chapter Eight: Emergency Action
Article 801: Bilateral Actions
1. Subject to paragraphs 2 through 4 and Annex 801.1, and during the transition period only, i f
a good originating in the territory of a Party, as a result of the reduction or elimination of a duty
provided for in this Agreement, is being imported into the territory of another Party in such
increased quantities, in absolute terms, and under such conditions that the imports of the good
from that Party alone constitute a substantial cause of serious injury, or threat thereof, to a
domestic industry producing a like or directly competitive good, the Party into whose territory
the good is being imported may, to the minimum extent necessary to remedy or prevent the
injury:
(a) suspend the further reduction of any rate of duty provided for under this Agreement on the
good;
(b) increase the rate of duty on the good to a level not to exceed the lesser o f
(i) the most-favored-nation (MFN) applied rate of duty in effect at the time the action is taken,
and
(ii) the MFN applied rate of duty in effect on the day immediately preceding the date of entry
into force of this Agreement; or
(c) in the case of a duty applied to a good on a seasonal basis, increase the rate of duty to a
level not to exceed the MFN applied rate of duty that was in effect on the good for the
corresponding season immediately preceding the date of entry into force of this Agreement.
2. The following conditions and limitations shall apply to a proceeding that may result in
emergency action under paragraph 1:
(a) a Party shall, without delay, deliver to any Party that may be affected written notice of, and
a request for consultations regarding, the institution of a proceeding that could result in
emergency action against a good originating in the territory of a Party;
(b) any such action shall be initiated no later than one year after the date of institution of the
proceeding;
(c) no action may be maintained
(i) for a period exceeding three years, except where the good against which the action is taken
is provided for in the items in staging category C+ of the Schedule to Annex 302.2 of the Party
taking the action and that Party determines that the affected industry has undertaken
adjustment and requires an extension of the period of relief, in which case the period of relief
may be extended for one year provided that the duty applied during the initial period of relief is
substantially reduced at the beginning of the extension period, or
(ii) beyond the expiration of the transition period, except with the consent of the Party against
whose good the action is taken;
(d) no action may be taken by a Party against any particular good originating in the territory o f
another Party more than once during the transition period; and
(e) on the termination of the action, the rate of duty shall be the rate that, according to the
Party's Schedule to Annex 302.2 for the staged elimination of the tariff, would have been in
effect one year after the initiation of the action, and beginning January 1 of the year following
the termination of the action, at the option of the Party that has taken the action
(i) the rate of duty shall conform to the applicable rate set out in its Schedule to Annex 302.2,
or
(ii) the tariff shall be eliminated in equal annual stages ending on the date set out in its
Schedule to Annex 302.2 for the elimination of the tariff.
3. A Party may take a bilateral emergency action after the expiration of the transition period t o
deal with cases of serious injury, or threat thereof, to a domestic industry arising from the
operation of this Agreement only with the consent of the Party against whose good the action
would be taken.
4. The Party taking an action under this Article shall provide to the Party against whose good
the action is taken mutually agreed trade liberalizing compensation in the form of concessions
having substantially equivalent trade effects or equivalent to the value of the additional duties
expected to result from the action. If the Parties concerned are unable to agree on
compensation, the Party against whose good the action is taken may take tariff action having
trade effects substantially equivalent to the action taken under this Article. The Party taking
the tariff action shall apply the action only for the minimum period necessary to achieve the
substantially equivalent effects.
5. This Article does not apply to emergency actions respecting goods covered by Annex 300-B
(Textile and Apparel Goods).
Article 802: Global Actions
1. Each Party retains its rights and obligations under Article XIX of the GATT or any safeguard
agreement pursuant thereto except those regarding compensation or retaliation and exclusion
from an action to the extent that such rights or obligations are inconsistent with this Article.
Any Party taking an emergency action under Article XIX or any such agreement shall exclude
imports of a good from each other Party from the action unless:
(a) imports from a Party, considered individually, account for a substantial share of total
imports; and
(b) imports from a Party, considered individually, or in exceptional circumstances imports from
Parties considered collectively, contribute importantly to the serious injury, or threat thereof,
caused by imports.
2. In determining whether:
(a) imports from a Party, considered individually, account for a substantial share of total
imports, those imports normally shall not be considered to account for a substantial share o f
total imports if that Party is not among the top five suppliers of the good subject to the
proceeding, measured in terms of import share during the most recent three-year period; and
(b) imports from a Party or Parties contribute importantly to the serious injury, or threat
thereof, the competent investigating authority shall consider such factors as the change in the
import share of each Party, and the level and change in the level of imports of each Party. In
this regard, imports from a Party normally shall not be deemed to contribute importantly t o
serious injury, or the threat thereof, if the growth rate of imports from a Party during the period
in which the injurious surge in imports occurred is appreciably lower than the growth rate o f
total imports from all sources over the same period.
3. A Party taking such action, from which a good from another Party or Parties is initially
excluded pursuant to paragraph 1, shall have the right subsequently to include that good from
the other Party or Parties in the action in the event that the competent investigating authority
determines that a surge in imports of such good from the other Party or Parties undermines the
effectiveness of the action.
4. A Party shall, without delay, deliver written notice to the other Parties of the institution of a
proceeding that may result in emergency action under paragraph 1 or 3.
5. No Party may impose restrictions on a good in an action under paragraph 1 or 3:
(a) without delivery of prior written notice to the Commission, and without adequate
opportunity for consultation with the Party or Parties against whose good the action is
proposed to be taken, as far in advance of taking the action as practicable; and
(b) that would have the effect of reducing imports of such good from a Party below the trend
of imports of the good from that Party over a recent representative base period with allowance
for reasonable growth.
6. The Party taking an action pursuant to this Article shall provide to the Party or Parties
against whose good the action is taken mutually agreed trade liberalizing compensation in the
form of concessions having substantially equivalent trade effects or equivalent to the value o f
the additional duties expected to result from the action. If the Parties concerned are unable t o
agree on compensation, the Party against whose good the action is taken may take action
having trade effects substantially equivalent to the action taken under paragraph 1 or 3.
Article 803: Administration of Emergency Action Proceedings
1. Each Party shall ensure the consistent, impartial and reasonable administration of its laws,
regulations, decisions and rulings governing all emergency action proceedings.
2. Each Party shall entrust determinations of serious injury, or threat thereof, in emergency
action proceedings to a competent investigating authority, subject to review by judicial or
administrative tribunals, to the extent provided by domestic law. Negative injury determinations
shall not be subject to modification, except by such review. The competent investigating
authority empowered under domestic law to conduct such proceedings should be provided with
the necessary resources to enable it to fulfill its duties.
3. Each Party shall adopt or maintain equitable, timely, transparent and effective procedures for
emergency action proceedings, in accordance with the requirements set out in Annex 803.3.
4. This Article does not apply to emergency actions taken under Annex 300-B (Textile and
Apparel Goods).
Article 804: Dispute Settlement in Emergency Action Matters

No Party may request the establishment of an arbitral panel under Article 2008 (Request for an
Arbitral Panel) regarding any proposed emergency action.
competent investigating authority means the "competent investigating authority" of a Party as

defined in Annex 805;
contribute importantly means an important cause, but not necessarily the most important
cause;
critical circumstances means circumstances where delay would cause damage that would be
difficult to repair;
domestic industry means the producers as a whole of the like or directly competitive good
operating in the territory of a Party;
emergency action does not include any emergency action pursuant to a proceeding instituted
prior to January 1, 1994;
good originating in the territory of a Party means an originating good, except that in
determining the Party in whose territory that good originates, the relevant rules of Annex 302.2
shall apply;
serious injury means a significant overall impairment of a domestic industry;
surge means a significant increase in imports over the trend for a recent representative base
period;
threat of serious injury means serious injury that, on the basis of facts and not merely on
allegation, conjecture or remote possibility, is clearly imminent; and
transition period means the 10-year period beginning on January 1, 1994, except where the
good against which the action is taken is provided for in the items in staging category C+ of the
Schedule to Annex 302.2 of the Party taking the action, in which case the transition period shall
be the period of staged tariff elimination for that good.
Annex 801.1
Bilateral Actions
1. Notwithstanding Article 801, bilateral emergency actions between Canada and the United
States on goods originating in the territory of either Party, other than goods covered by Annex
300-B (Textile and Apparel Goods), shall be governed in accordance with the terms of Article
1101 of the Canada - United States Free Trade Agreement , which is hereby Incorporated into
and made a part of this Agreement for such purpose.
2. For such purposes, "good originating in the territory of one Party" means "good originating in
the territory of a Party" as defined in Article 805.
Annex 803.3
Administration of Emergency Action Proceedings
Institution of a Proceeding
1. An emergency action proceeding may be instituted by a petition or complaint by entities

specified in domestic law. The entity filing the petition or complaint shall demonstrate that it is
representative of the domestic industry producing a good like or directly competitive with the
imported good.
2. A Party may institute a proceeding on its own motion or request the competent investigating
authority to conduct a proceeding.
Contents of a Petition or Complaint
3. Where the basis for an investigation is a petition or complaint filed by an entity

representative of a domestic industry, the petitioning entity shall, in its petition or complaint,
provide the following information to the extent that such information is publicly available from
governmental or other sources, or best estimates and the basis therefor if such information is
not available:
(a) product description - the name and description of the imported good concerned, the tariff
subheading under which that good is classified, its current tariff treatment and the name and
description of the like or directly competitive domestic good concerned;
(b) representativeness -
(i) the names and addresses of the entities filing the petition or complaint, and the locations o f
the establishments in which they produce the domestic good,
(ii) the percentage of domestic production of the like or directly competitive good that such
entities account for and the basis for claiming that they are representative of an industry, and
(iii) the names and locations of all other domestic establishments in which the like or directly
competitive good is produced;
(c) import data - import data for each of the five most recent full years that form the basis o f
the claim that the good concerned is being imported in increased quantities, either in absolute
terms or relative to domestic production as appropriate;
(d) domestic production data - data on total domestic production of the like or directly
competitive good for each of the five most recent full years;
(e) data showing injury - quantitative and objective data indicating the nature and extent o f
injury to the concerned industry, such as data showing changes in the level of sales, prices,
production, productivity, capacity utilization, market share, profits and losses, and employment;
(f) cause of injury - an enumeration and description of the alleged causes of the injury, or threat
thereof, and a summary of the basis for the assertion that increased imports, either actual or
relative to domestic production, of the imported good are causing or threatening to cause
serious injury, supported by pertinent data; and
(g) criteria for inclusion - quantitative and objective data indicating the share of imports
accounted for by imports from the territory of each other Party and the petitioner's views on
the extent to which such imports are contributing importantly to the serious injury, or threat
thereof, caused by imports of that good.
4. Petitions or complaints, except to the extent that they contain confidential business
information, shall promptly be made available for public inspection on being filed.
Notice Requirement
5. On instituting an emergency action proceeding, the competent investigating authority shall

publish notice of the institution of the proceeding in the official journal of the Party. The notice
shall identify the petitioner or other requester, the imported good that is the subject of the
proceeding and its tariff subheading, the nature and timing of the determination to be made,
the time and place of the public hearing, dates of deadlines for filing briefs, statements and
other documents, the place at which the petition and any other documents filed in the course o f
the proceeding may be inspected, and the name, address and telephone number of the office t o
be contacted for more information.
6. With respect to an emergency action proceeding instituted on the basis of a petition or

complaint filed by an entity asserting that it is representative of the domestic industry, the
competent investigating authority shall not publish the notice required by paragraph 5 without
first assessing carefully that the petition or complaint meets the requirements of paragraph 3,
including representativeness.
Public Hearing
7. In the course of each proceeding, the competent investigating authority shall:
(a) hold a public hearing, after providing reasonable notice, to allow all interested parties, and
any association whose purpose is to represent the interests of consumers in the territory of the
Party instituting the proceeding, to appear in person or by counsel, to present evidence and t o
be heard on the questions of serious injury, or threat thereof, and the appropriate remedy; and
(b) provide an opportunity to all interested parties and any such association appearing at the
hearing to cross-question interested parties making presentations at that hearing.
Confidential Information
8. The competent investigating authority shall adopt or maintain procedures for the treatment
of confidential information, protected under domestic law, that is provided in the course of a
proceeding, including a requirement that interested parties and consumer associations providing
such information furnish non-confidential written summaries thereof, or where they indicate that
the information cannot be summarized, the reasons why a summary cannot be provided.
Evidence of Injury and Causation
9. In conducting its proceeding the competent investigating authority shall gather, to the best
of its ability, all relevant information appropriate to the determination it must make. It shall
evaluate all relevant factors of an objective and quantifiable nature having a bearing on the
situation of that industry, including the rate and amount of the increase in imports of the good
concerned, in absolute and relative terms as appropriate, the share of the domestic market
taken by increased imports, and changes in the level of sales, production, productivity, capacity
utilization, profits and losses, and employment. In making its determination, the competent
investigating authority may also consider other economic factors, such as changes in prices and
inventories, and the ability of firms in the industry to generate capital.
10. The competent investigating authority shall not make an affirmative injury determination
unless its investigation demonstrates, on the basis of objective evidence, the existence of a
clear causal link between increased imports of the good concerned and serious injury, or threat
thereof. Where factors other than increased imports are causing injury to the domestic industry
at the same time, such injury shall not be attributed to increased imports.
Deliberation and Report
11. Except in critical circumstances and in global actions involving perishable agricultural goods,
the competent investigating authority, before making an affirmative determination in an
emergency action proceeding, shall allow sufficient time to gather and consider the relevant
information, hold a public hearing and provide an opportunity for all interested parties and
consumer associations to prepare and submit their views.
12. The competent investigating authority shall publish promptly a report, including a summary
thereof in the official journal of the Party, setting out its findings and reasoned conclusions on
all pertinent issues of law and fact. The report shall describe the imported good and its tariff
item number, the standard applied and the finding made. The statement of reasons shall set out
the basis for the determination, including a description of:
(a) the domestic industry seriously injured or threatened with serious injury;
(b) information supporting a finding that imports are increasing, the domestic industry is
seriously injured or threatened with serious injury, and increasing imports are causing or
threatening serious injury; and
(c) if provided for by domestic law, any finding or recommendation regarding the appropriate
remedy and the basis therefor.
13. In its report, the competent investigating authority shall not disclose any confidential
information provided pursuant to any undertaking concerning confidential information that may
have been made in the course of the proceedings.
Annex 8 0 5
Country-Specific Definitions
competent investigating authority means:
(a) in the case of Canada, the Canadian International Trade Tribunal, or its successor;
(b) in the case of the Mexico, the designated authority within the Ministry of Trade and
Industrial Development ("Secretaría de Comercio y Fomento Industrial"), or its successor; and
(c) in the case of the United States, the U.S. International Trade Commission, or its successor.
PART THREE: TECHNICAL BARRIERS TO TRADE
Chapter Nine: Standards-Related Measures
1. This Chapter applies to standards-related measures of a Party, other than those covered by
Section B of Chapter Seven (Sanitary and Phytosanitary Measures), that may, directly or
indirectly, affect trade in goods or services between the Parties, and to measures of the Parties
relating to such measures.
2. Technical specifications prepared by governmental bodies for production or consumption

requirements of such bodies shall be governed exclusively by Chapter Ten (Government
Procurement).
Article 902: Extent of Obligations
1. Article 105 (Extent of Obligations) does not apply to this Chapter.
2. Each Party shall seek, through appropriate measures, to ensure observance of Articles 9 0 4
through 908 by state or provincial governments and by non-governmental standardizing bodies
in its territory.
Article 903: Affirmation of Agreement on Technical Barriers to Trade and Other Agreements
Further to Article 103 (Relation to Other Agreements), the Parties affirm with respect to each
other their existing rights and obligations relating to standards-related measures under the
GATT Agreement on Technical Barriers to Trade and all other international agreements,
including environmental and conservation agreements, to which those Parties are party.
Article 904: Basic Rights and Obligations
Right to Take Standards-Related Measures
1. Each Party may, in accordance with this Agreement, adopt, maintain or apply any standards-
related measure, including any such measure relating to safety, the protection of human, animal
or plant life or health, the environment or consumers, and any measure to ensure its
enforcement or implementation. Such measures include those to prohibit the importation of a
good of another Party or the provision of a service by a service provider of another Party that
fails to comply with the applicable requirements of those measures or to complete the Party's
approval procedures.
Right to Establish Level of Protection
2. Notwithstanding any other provision of this Chapter, each Party may, in pursuing its
legitimate objectives of safety or the protection of human, animal or plant life or health, the
environment or consumers, establish the levels of protection that it considers appropriate in
accordance with Article 907(2).
Non-Discriminatory Treatment
3. Each Party shall, in respect of its standards-related measures, accord to goods and service
providers of another Party:
(a) national treatment in accordance with Article 301 (Market Access) or Article 1202 (Cross-
Border Trade in Services); and
(b) treatment no less favorable than that it accords to like goods, or in like circumstances t o
service providers, of any other country.
Unnecessary Obstacles
4. No Party may prepare, adopt, maintain or apply any standards-related measure with a view t o
or with the effect of creating an unnecessary obstacle to trade between the Parties. An
unnecessary obstacle to trade shall not be deemed to be created where:
(a) the demonstrable purpose of the measure is to achieve a legitimate objective; and
(b) the measure does not operate to exclude goods of another Party that meet that legitimate
objective.
Article 905: Use of International Standards
1. Each Party shall use, as a basis for its standards-related measures, relevant international
standards or international standards whose completion is imminent, except where such
standards would be an ineffective or inappropriate means to fulfill its legitimate objectives, for
example because of fundamental climatic, geographical, technological or infrastructural factors,
scientific justification or the level of protection that the Party considers appropriate.
2. A Party's standards-related measure that conforms to an international standard shall be

presumed to be consistent with Article 904(3) and (4).
3. Nothing in paragraph 1 shall be construed to prevent a Party, in pursuing its legitimate

objectives, from adopting, maintaining or applying any standards-related measure that results in
a higher level of protection than would be achieved if the measure were based on the relevant
international standard.
Article 906: Compatibility and Equivalence
1. Recognizing the crucial role of standards-related measures in achieving legitimate objectives,

the Parties shall, in accordance with this Chapter, work jointly to enhance the level of safety and
of protection of human, animal and plant life and health, the environment and consumers.
2. Without reducing the level of safety or of protection of human, animal or plant life or health,
the environment or consumers, without prejudice to the rights o f any Party under this Chapter,
and taking into account international standardization activities, the Parties shall, to the greatest
extent practicable, make compatible their respective standards-related measures, so as t o
facilitate trade in a good or service between the Parties.
3. Further to Articles 902 and 905, a Party shall, on request of another Party, seek, through
appropriate measures, to promote the compatibility of a specific standard or conformity
assessment procedure that is maintained in its territory with the standards or conformity
assessment procedures maintained in the territory of the other Party.
4. Each importing Party shall treat a technical regulation adopted or maintained by an exporting
Party as equivalent to its own where the exporting Party, in cooperation with the importing
Party, demonstrates to the satisfaction of the importing Party that its technical regulation
adequately fulfills the importing Party's legitimate objectives.
5. The importing Party shall provide to the exporting Party, on request, its reasons in writing for
not treating a technical regulation as equivalent under paragraph 4.
6. Each Party shall, wherever possible, accept the results of a conformity assessment procedure
conducted in the territory of another Party, provided that it is satisfied that the procedure
offers an assurance, equivalent to that provided by a procedure it conducts or a procedure
conducted in its territory the results of which it accepts, that the relevant good or service
complies with the applicable technical regulation or standard adopted or maintained in the
Party's territory.
7. Prior to accepting the results of a conformity assessment procedure pursuant to paragraph
6, and to enhance confidence in the continued reliability of each other's conformity assessment
results, the Parties may consult on such matters as the technical competence of the conformity
assessment bodies involved, including verified compliance with relevant international standards
through such means as accreditation.
Article 907: Assessment of Risk
1. A Party may, in pursuing its legitimate objectives, conduct an assessment of risk. In

conducting an assessment, a Party may take into account, among other factors relating to a
good or service:
(a) available scientific evidence or technical information;
(b) intended end uses;
(c) processes or production, operating, inspection, sampling or testing methods; or
(d) environmental conditions.
2. Where pursuant to Article 904(2) a Party establishes a level of protection that it considers
appropriate and conducts an assessment of risk, it should avoid arbitrary or unjustifiable
distinctions between similar goods or services in the level of protection it considers appropriate,
where the distinctions:
(a) result in arbitrary or unjustifiable discrimination against goods or service providers o f

another Party;
(b) constitute a disguised restriction on trade between the Parties; or
(c) discriminate between similar goods or services for the same use under the same conditions
that pose the same level of risk and provide similar benefits.
3. Where a Party conducting an assessment of risk determines that available scientific evidence
or other information is insufficient to complete the assessment, it may adopt a provisional
technical regulation on the basis of available relevant information. The Party shall, within a
reasonable period after information sufficient to complete the assessment of risk is presented
to it, complete its assessment, review and, where appropriate, revise the provisional technical
regulation in the light of that assessment.
Article 908: Conformity Assessment
1. The Parties shall, further to Article 906 and recognizing the existence of substantial
differences in the structure, organization and operation of conformity assessment procedures in
their respective territories, make compatible those procedures to the greatest extent
practicable.
2. Recognizing that it should be to the mutual advantage of the Parties concerned and except
as set out in Annex 908.2, each Party shall accredit, approve, license or otherwise recognize
conformity assessment bodies in the territory of another Party on terms no less favorable than
those accorded to conformity assessment bodies in its territory.
3. Each Party shall, with respect to its conformity assessment procedures:
(a) not adopt or maintain any such procedure that is stricter, nor apply the procedure more
strictly, than necessary to give it confidence that a good or a service conforms with an
applicable technical regulation or standard, taking into account the risks that non-conformity
would create;
(b) initiate and complete the procedure as expeditiously as possible;
(c) in accordance with Article 904(3), undertake processing of applications in non-

discriminatory order;
(d) publish the normal processing period for each such procedure or communicate the
anticipated processing period to an applicant on request;
(e) ensure that the competent body
(i) on receipt of an application, promptly examines the completeness of the documentation and
informs the applicant in a precise and complete manner of any deficiency,
(ii) transmits to the applicant as soon as possible the results of the conformity assessment
procedure in a form that is precise and complete so that the applicant may take any necessary
corrective action,
(iii) where the application is deficient, proceeds as far as practicable with the procedure where
the applicant so requests, and
(iv) informs the applicant, on request, of the status of the application and the reasons for any
delay;
(f) limit the information the applicant is required to supply to that necessary to conduct the
procedure and to determine appropriate fees;
(g) accord confidential or proprietary information arising f rom, or supplied in connection with,
the conduct of the procedure for a good of another Party or for a service provided by a person
of another Party
(i) the same treatment as that for a good of the Party or a service provided by a person of the
Party, and
(ii) in any event, treatment that protects an applicant's legitimate commercial interests to the
extent provided under the Party's law;
(h) ensure that any fee it imposes for conducting the procedure is no higher for a good o f
another Party or a service provider of another Party than is equitable in relation to any such fee
imposed for its like goods or service providers or for like goods or service providers of any other
country, taking into account communication, transportation and other related costs;
(i) ensure that the location of facilities at which a conformity assessment procedure is
conducted does not cause unnecessary inconvenience to an applicant or its agent;
(j) limit the procedure, for a good or service modified subsequent to a determination that the
good or service conforms to the applicable technical regulation or standard, to that necessary
to determine that the good or service continues to conform to the technical regulation or
standard; and
(k) limit any requirement regarding samples of a good to that which is reasonable, and ensure
that the selection of samples does not cause unnecessary inconvenience to an applicant or its
agent.
4. Each Party shall apply, with such modifications as may be necessary, the relevant provisions
of paragraph 3 to its approval procedures.
5. Each Party shall, on request of another Party, take such reasonable measures as may be
available to it to facilitate access in its territory for conformity assessment activities.
6. Each Party shall give sympathetic consideration to a request by another Party to negotiate
agreements for the mutual recognition of the results of that other Party's conformity
assessment procedures.
Article 909: Notification, Publication, and Provision of Information
1. Further to Articles 1802 (Publication) and 1803 (Notification and Provision of Information),
each Party proposing to adopt or modify a technical regulation shall:
(a) at least 60 days prior to the adoption or modification of the measure, other than a law,
publish a notice and notify in writing the other Parties of the proposed measure in such a
manner as to enable interested persons to become acquainted with the proposed measure,
except that in the case of any such measure relating to perishable goods, each Party shall, t o
the greatest extent practicable, publish the notice and provide the notification at least 30 days
prior to the adoption or modification of the measure, but no later than when notification is
provided to domestic producers;
(b) identify in the notice and notification the good or service to which the measure would apply,
and shall provide a brief description of the objective of, and reasons for the measure;
(c) provide a copy of the proposed measure to any Party or interested person that so requests,
and shall, wherever possible, identify any provision that deviates in substance from relevant
international standards; and
(d) without discrimination, allow other Parties and interested persons to make comments in
2. Each Party proposing to adopt or modify a standard or any conformity assessment procedure
not otherwise considered to be a technical regulation shall, where an international standard
relevant to the proposed measure does not exist or such measure is not substantially the same
as an international standard, and where the measure may have a significant effect on the trade
of the other Parties:
(a) at an early appropriate stage, publish a notice and provide a notification of the type required
in paragraph 1(a) and (b); and
(b) observe paragraph (c) and (d).
3. Each Party shall seek, through appropriate measures, to ensure, with respect to a technical
regulation of a state or provincial government other than a local government:
(a) that, at an early appropriate stage, a notice and notification of the type required under
paragraph 1(a) and (b) are made prior to their adoption; and
(b) observance of paragraph (c) and (d).
4. Where a Party considers it necessary to address an urgent problem relating to safety or t o

protection of human, animal or plant life or health, the environment or consumers, it may omit
any step set out in paragraph 1 or 3, provided that on adoption of a standards-related measure
it shall:
(a) immediately provide to the other Parties a notification of the type required under paragraph
1(b), including a brief description of the urgent problem;
(b) provide a copy of the measure to any Party or interested person that so requests; and
(c) without discrimination, allow other Parties and interested persons to make comments in
writing, and shall, on request, discuss the comments and take the comments and the results o f
5. Each Party shall, except where necessary to address an urgent problem referred to in
paragraph 4, allow a reasonable period between the publication of a standards-related measure
and the date that it becomes effective to allow time for interested persons to adapt to the
measure.
6. Where a Party allows non-governmental persons in its territory to be present during the
process of development of standards-related measures, it shall also allow non-governmental
persons from the territories of the other Parties to be present.
7. Each Party shall notify the other Parties of the development of, amendment to, or change in
the application of its standards-related measures no later than the time at which it notifies non-
governmental persons in general or the relevant sector in its territory.
8. Each Party shall seek, through appropriate measures, to ensure the observance of paragraphs
6 and 7 by a state or provincial government, and by non-governmental standardizing bodies in
its territory.
9. Each Party shall designate by January 1, 1994 a government authority responsible for the
implementation at the federal level of the notification provisions of this Article, and shall notify
the other Parties thereof. Where a Party designates two or more government authorities for
that purpose, it shall provide to the other Parties complete and unambiguous information on the
scope of responsibility of each such authority.
Article 910: Inquiry Points
1. Each Party shall ensure that there is an inquiry point that is able to answer all reasonable
inquiries from other Parties and interested persons, and to provide relevant documents
regarding:
(a) any standards-related measure proposed, adopted or maintained in its territory at the
federal, state or provincial government level;
(b) the membership and participation of the Party, or its relevant federal, state or provincial
government authorities, in international and regional standardizing bodies and conformity
assessment systems, and in bilateral and multilateral arrangements regarding standards-related
measures, and the provisions of those systems and arrangements;
(c) the location of notices published pursuant to Article 909, or where the information can be
obtained;
(d) the location of the inquiry points referred to in paragraph 3; and
(e) the Party's procedures for assessment of risk, and factors it considers in conducting the
assessment and in establishing, pursuant to Article 904(2), the levels of protection that i t
considers appropriate.
2. Where a Party designates more than one inquiry point, it shall:
(a) provide to the other Parties complete and unambiguous information on the scope o f
responsibility of each inquiry point; and
(b) ensure that any inquiry addressed to an incorrect inquiry point is promptly conveyed to the
correct inquiry point.
3. Each Party shall take such reasonable measures as may be available to it to ensure that there
is at least one inquiry point that is able to answer all reasonable inquiries from other Parties and
interested persons and to provide relevant documents or information as to where they can be
obtained regarding:
(a) any standard or conformity assessment procedure proposed, adopted or maintained by non-
governmental standardizing bodies in its territory; and
(b) the membership and participation of relevant non-governmental bodies in its territory in
international and regional standardizing bodies and conformity assessment systems.
4. Each Party shall ensure that where copies of documents are requested by another Party or by
interested persons in accordance with this Chapter, they are supplied at the same price, apart
from the actual cost of delivery, as the price for domestic purchase.
1. Each Party shall, on request of another Party:
(a) provide to that Party technical advice, information and assistance on mutually agreed terms
and conditions to enhance that Party's standards-related measures, and related activities,
processes and systems;
(b) provide to that Party information on its technical cooperation programs regarding
standards-related measures relating to specific areas of interest; and
(c) consult with that Party during the development of, or prior to the adoption or change in the
application of, any standards-related measure.
2. Each Party shall encourage standardizing bodies in its territory to cooperate with the
standardizing bodies in the territories of the other Parties in their participation, as appropriate,
in standardizing activities, such as through membership in international standardizing bodies.
Article 912: Limitations on the Provision of Information
Nothing in this Chapter shall be construed to require a Party to:
(a) communicate, publish texts, or provide particulars or copies of documents other than in an
official language of the Party; or
(b) furnish any information the disclosure of which would impede law enforcement or otherwise
be contrary to the public interest, or would prejudice the legitimate commercial interests o f
Article 913: Committee on Standards-Related Measures
1. The Parties hereby establish a Committee on Standards-Related Measures, comprising

representatives of each Party.
2. The Committee's functions shall include:
(a) monitoring the implementation and administration of this Chapter, including the progress o f
the subcommittees and working groups established under paragraph 4, and the operation of the
inquiry points established under Article 910;
(b) facilitating the process by which the Parties make compatible their standards-related
measures;
(c) providing a forum for the Parties to consult on issues relating to standards-related
measures, including the provision of technical advice and recommendations under Article 914;
(d) enhancing cooperation on the development, application and enforcement of standards-

related measures; and
(e) considering non-governmental, regional and multilateral developments regarding standards-

related measures, including under the GATT.
3. The Committee shall:
(a) meet on request of any Party and, unless the Parties otherwise agree, at least once each
year; and
(b) report annually to the Commission on the implementation of this Chapter.
4. The Committee may, as it considers appropriate, establish and determine the scope and
mandate of subcommittees or working groups, comprising representatives of each Party. Each
subcommittee or working group may:
(a) as it considers necessary or desirable, include or consult with
(i) representatives of non-governmental bodies, including standardizing bodies,
(ii) scientists, and
(iii) technical experts; and
(b) determine its work program, taking into account relevant international activities.
5. Further to paragraph 4, the Committee shall establish:
(a) the following subcommittees
(i) Land Transportation Standards Subcommittee, in accordance with Annex 913.5.a-1,
(ii) Telecommunications Standards Subcommittee, in accordance with Annex 913.5.a-2,

(iii) Automotive Standards Council, in accordance with Annex 913.5.a-3, and
(iv) Subcommittee on Labelling of Textile and Apparel Goods, in accordance with Annex
913.5.a-4; and
(b) such other subcommittees or working groups as it considers appropriate to address any
topic, including:
(i) identification and nomenclature for goods subject to standards-related measures,
(ii) quality and identity standards and technical regulations,
(iii) packaging, labelling and presentation of consumer information, including languages,

measurement systems, ingredients, sizes, terminology, symbols and related matters,
(iv) product approval and post-market surveillance programs,
(v) principles for the accreditation and recognition of conformity assessment bodies,
procedures and systems,
(vi) development and implementation of a uniform chemical hazard classification and

communication system,
(vii) enforcement programs, including training and inspections by regulatory, analytical and
enforcement personnel,
(viii) promotion and implementation of good laboratory practices,
(ix) promotion and implementation of good manufacturing practices,
(x) criteria for assessment of potential environmental hazards of goods,
(xi) methodologies for assessment of risk,
(xii) guidelines for testing of chemicals, including industrial and agricultural chemicals,
pharmaceuticals and biologicals,
(xiii) methods by which consumer protection, including matters relating to consumer redress,
can be facilitated, and
(xiv) extension of the application of this Chapter to other services.
6. Each Party shall, on request of another Party, take such reasonable measures as may be
available to it to provide for the participation in the activities of the Committee, where and as
appropriate, of representatives of state or provincial governments.
7. A Party requesting technical advice, information or assistance pursuant to Article 911 shall
notify the Committee which shall facilitate any such request.
Article 914: Technical Consultations
1. Where a Party requests consultations regarding the application of this Chapter to a

standards-related measure, and so notifies the Committee, the Committee may facilitate the
consultations, if it does not consider the matter itself, by referring the matter for non-binding
technical advice or recommendations to a subcommittee or working group, including an ad hoc
subcommittee or working group, or to another forum.
2. The Committee should consider any matter referred to it under paragraph 1 as expeditiously
as possible and promptly forward to the Parties any technical advice or recommendations that i t
develops or receives concerning the matter. The Parties involved shall provide a written
response to the Committee concerning the technical advice or recommendations within such
time as the Committee may request.
3. Where the involved Parties have had recourse to consultations facilitated by the Committee
under paragraph 1, the consultations shall, on the agreement of the Parties involved, constitute
consultations under Article 2006 (Consultations).
4. The Parties confirm that a Party asserting that a standards-related measure of another Party
is inconsistent with this Chapter shall have the burden of establishing the inconsistency.
1. For purposes of this Chapter:
approval procedure means any registration, notification or other mandatory administrative

procedure for granting permission for a good or service to be produced, marketed or used for a
stated purpose or under stated conditions;
assessment of risk means evaluation of the potential for adverse effects;
conformity assessment procedure means any procedure used, directly or indirectly, t o

determine that a technical regulation or standard is fulfilled, including sampling, testing,
inspection, evaluation, verification, monitoring, auditing, assurance of conformity, accreditation,
registration or approval used for such a purpose, but does not mean an approval procedure;
international standard means a standards-related measure, or other guide or recommendation,

adopted by an international standardizing body and made available to the public;
international standardizing body means a standardizing body whose membership is open to the
relevant bodies of at least all the parties to the GATT Agreement on Technical Barriers to Trade,
including the International Organization for Standardization (ISO), the International
Electrotechnical Commission (IEC), Codex Alimentarius Commission, the World Health
Organization (WHO), the Food and Agriculture Organization (FAO), the International
Telecommunication Union (ITU); or any other body that the Parties designate;
land transportation service means a transportation service provided by means of motor carrier
or rail;
legitimate objective includes an objective such as:
(a) safety,
(b) protection of human, animal or plant life or health, the environment or consumers, including
matters relating to quality and identifiability of goods or services, and
(c) sustainable development,
considering, among other things, where appropriate, fundamental climatic or other geographical
factors, technological or infrastructural factors, or scientific justification but does not include
the protection of domestic production;
make compatible means bring different standards-related measures of the same scope approved
by different standardizing bodies to a level such that they are either identical, equivalent or
have the effect of permitting goods or services to be used in place of one another or fulfill the
same purpose;
services means land transportation services and telecommunications services;
standard means a document, approved by a recognized body, that provides, for common and
repeated use, rules, guidelines or characteristics for goods or related processes and production
methods, or for services or related operating methods, with which compliance is not mandatory.
It may also include or deal exclusively with terminology, symbols, packaging, marking or labelling
requirements as they apply to a good, process, or production or operating method;
standardizing body means a body having recognized activities in standardization;
standards-related measure means a standard, technical regulation or conformity assessment

procedure;
technical regulation means a document which lays down goods characteristics or their related
processes and production methods, or services characteristics or their related operating
methods, including the applicable administrative provisions, with which compliance is mandatory.
It may also include or deal exclusively with terminology, symbols, packaging, marking or labelling
requirements as they apply to a good, process, or production or operating method; and
telecommunications service means a service provided by means of the transmission and

reception of signals by any electromagnetic means, but does not mean the cable, broadcast or
other electromagnetic distribution of radio or television programming to the public generally.
2. Except as they are otherwise defined in this Agreement, other terms in this Chapter shall be
interpreted in accordance with their ordinary meaning in context and in the light of the
objectives of this Agreement, and where appropriate by reference to the terms presented in the
sixth edition of the ISO/IEC Guide 2: 1991, General Terms and Their Definitions Concerning
Standardization and Related Activities.
Annex 908.2
Transitional Rules for Conformity Assessment Procedures
1. Except in respect of governmental conformity assessment bodies, Article 908(2) shall

impose no obligation and confer no right on Mexico until four years after the date of entry into
force of this Agreement.
2. Where a Party charges a reasonable fee, limited in amount to the approximate cost of the
service rendered, to accredit, approve, license or otherwise recognize a conformity assessment
body in the territory of another Party, it need not, prior to December 31, 1998 or such earlier
date as the Parties may agree, charge such a fee to a conformity assessment body in its
territory.
Annex 913.5.a-1
Land Transportation Standards Subcommittee
1. The Land Transportation Standards Subcommittee, established under Article 913(5)(a)(i),

shall comprise representatives of each Party.
2. The Subcommittee shall implement the following work program for making compatible the
Parties' relevant standards-related measures for:
(a) bus and truck operations
(i) no later than one and one-half years after the date of entry into force of this Agreement, for
non-medical standards-related measures respecting drivers, including measures relating to the
age of and language used by drivers,
(ii) no later than two and one-half years after the date of entry into force of this Agreement,
for medical standards-related measures respecting drivers,
(iii) no later than three years after the date of entry into force of this Agreement, for
standards-related measures respecting vehicles, including measures relating to weights and
dimensions, tires, brakes, parts and accessories, securement of cargo, maintenance and repair,
inspections, and emissions and environmental pollution levels not covered by the Automotive
Standards Council's work program established under Annex 913.5.a-3,
(iv) no later than three years after the date of entry into force of this Agreement, for
standards-related measures respecting each Party's supervision of motor carriers' safety
compliance, and
(v) no later than three years after the date of entry into force of this Agreement, for
standards-related measures respecting road signs;
(b) rail operations
(i) no later than one year after the date of entry into force of this Agreement, for standards-
related measures respecting operating personnel that are relevant to cross-border operations,
and
(ii) no later than one year after the date of entry into force o f this Agreement, for standards-
related measures respecting locomotives and other rail equipment; and
(c) transportation of dangerous goods, no later than six years after the date of entry into force
of this Agreement, using as their basis the United Nations Recommendations on the Transport
of Dangerous Goods, or such other standards as the Parties may agree.
3. The Subcommittee may address other related standards-related measures as it considers

appropriate.
Annex 913.5.a-2
Telecommunications Standards Subcommittee
1. The Telecommunications Standards Subcommittee, established under Article 913(5)(a)(ii),

shall comprise representatives of each Party.
2. The Subcommittee shall, within six months of the date of entry into force of this Agreement,
develop a work program, including a timetable, for making compatible, to the greatest extent
practicable, the standards-related measures of the Parties for authorized equipment as defined
in Chapter Thirteen (Telecommunications).
3. The Subcommittee may address other appropriate standards-related matters respecting

telecommunications equipment or services and such other matters as it considers appropriate.
4. The Subcommittee shall take into account relevant work carried out by the Parties in other
forums, and that of non-governmental standardizing bodies.
Annex 913.5.a-3
Automotive Standards Council
1. The Automotive Standards Council, established under Article 913.5(a)(iii), shall comprise
representatives of each Party.
2. The purpose of the Council shall be, to the extent practicable, to facilitate the attainment o f
compatibility among, and review the implementation of, national standards-related measures o f
the Parties that apply to automotive goods, and to address other related matters.
3. To facilitate its objectives, the Council may establish subgroups, consultation procedures and
other appropriate operational mechanisms. On the agreement of the Parties, the Council may
include state and provincial government or private sector representatives in its subgroups.
4. Any recommendation of the Council shall require agreement of the Parties. Where the
adoption of a law is not required for a Party, the Council's recommendations shall be
implemented by the Party within a reasonable time in accordance with the legal and procedural
requirements and international obligations of the Party. Where the adoption of a law is required
for a Party, the Party shall use its best efforts to secure the adoption of the law and shall
implement any such law within a reasonable time.
5. Recognizing the existing disparity in standards-related measures of the Parties, the Council
shall develop a work program for making compatible the national standards-related measures
that apply to automotive goods and other related matters based on the following criteria:
(a) the impact on industry integration;
(b) the extent of the barriers to trade;
(c) the level of trade affected; and
(d) the extent of the disparity.
In developing its work program, the Council may address other related matters, including
emissions from on-road and non-road mobile sources.
6. Each Party shall take such reasonable measures as may be available to it to promote the
objectives of this Annex with respect to standards-related measures that are maintained by
state and provincial government authorities and private sector organizations. The Council shall
make every effort to assist these entities with such activities, especially the identification o f
priorities and the establishment of work schedules.
Annex 913.5.a-4
Subcommittee on Labelling of Textile and Apparel Goods
1. The Subcommittee on Labelling of Textile and Apparel Goods, established under Article
913(5)(a)(iv), shall comprise representatives of each Party.
2. The Subcommittee shall include, and consult with, technical experts as well as a broadly
representative group from the manufacturing and retailing sectors in the territory of each Party.
3. The Subcommittee shall develop and pursue a work program on the harmonization of labelling
requirements to facilitate trade in textile and apparel goods between the Parties through the
adoption of uniform labelling provisions. The work program should include the following matters:
(a) pictograms and symbols to replace, where possible, required written information, as well as
other methods to reduce the need for labels on textile and apparel goods in multiple languages;
(b) care instructions for textile and apparel goods;
(c) fiber content information for textile and apparel goods;
(d) uniform methods acceptable for the attachment of required information to textile and
apparel goods; and
(e) use in the territory of the other Parties of each Party's national registration numbers for
manufacturers or importers of textile and apparel goods.
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PART FOUR: GOVERNMENT PROCUREMENT
Chapter Ten: Government Procurement
Section A - Scope and Coverage

and National Treatment
1. This Chapter applies to measures adopted or maintained by a Party relating to procurement:
(a) by a federal government entity set out in Annex 1001.1a-1, a government enterprise set
out in Annex 1001.1a-2, or a state or provincial government entity set out in Annex 1001.1a-3
in accordance with Article 1024;
(b) of goods in accordance with Annex 1001.1b-1, services in accordance with Annex 1001.1b-
2, or construction services in accordance with Annex 1001.1b-3; and
(c) where the value of the contract to be awarded is estimated to be equal to or greater than a
threshold, calculated and adjusted according to the U.S. inflation rate as set out in Annex
1001.1c, o f
(i) for federal government entities, US$50,000 for contracts for goods, services or any
combination thereof, and US$6.5 million for contracts for construction services,
(ii) for government enterprises, US$250,000 for contracts for goods, services or any
combination thereof, and US$8.0 million for contracts for construction services, and
(iii) for state and provincial government entities, the applicable threshold, as set out in Annex
1001.1a-3 in accordance with Article 1024.
2. Paragraph 1 is subject to:
(a) the transitional provisions set out in Annex 1001.2a;
(b) the General Notes set out in Annex 1001.2b; and

(c) Annex 1001.2c, for the Parties specified therein.
3. Subject to paragraph 4, where a contract to be awarded by an entity is not covered by this

Chapter, this Chapter shall not be construed to cover any good or service component of that
contract.
4. No Party may prepare, design or otherwise structure any procurement contract in order t o
avoid the obligations of this Chapter.
5. Procurement includes procurement by such methods as purchase, lease or rental, with or

without an option to buy. Procurement does not include:
(a) non-contractual agreements or any form of government assistance, including cooperative

agreements, grants, loans, equity infusions, guarantees, fiscal incentives, and government
provision of goods and services to persons or state, provincial and regional governments; and
(b) the acquisition of fiscal agency or depository services, liquidation and management services
for regulated financial institutions and sale and distribution services for government debt.
Article 1002: Valuation of Contracts
1. Each Party shall ensure that its entities, in determining whether a contract is covered by this
Chapter, apply paragraphs 2 through 7 in calculating the value of that contract.
2. The value of a contract shall be estimated as at the time of publication of a notice in

accordance with Article 1010.
3. In calculating the value of a contract, an entity shall take into account all forms o f
remuneration, including premiums, fees, commissions and interest.
4. Further to Article 1001(4), an entity may not select a valuation method, or divide
procurement requirements into separate contracts, to avoid the obligations of this Chapter.
5. Where an individual requirement for a procurement results in the award of more than one
contract, or in contracts being awarded in separate parts, the basis for valuation shall be either:
(a) the actual value of similar recurring contracts concluded over the prior fiscal year or 1 2
months adjusted, where possible, for anticipated changes in quantity and value over the
subsequent 12 months; or
(b) the estimated value of recurring contracts in the fiscal year or 12 months subsequent t o
the initial contract.
6. In the case of a contract for lease or rental, with or without an option to buy, or in the case
of a contract that does not specify a total price, the basis for valuation shall be:
(a) in the case of a fixed-term contract, where the term is 12 months or less, the total contract
value, for its duration or, where the term exceeds 12 months, the total contract value, including
the estimated residual value; or
(b) in the case of a contract for an indefinite period, the estimated monthly installment
multiplied by 48.
If the entity is uncertain as to whether a contract is for a fixed or an indefinite term, the entity
shall calculate the value of the contract using the method set out in subparagraph (b).
7. Where tender documentation requires option clauses, the basis for valuation shall be the
total value of the maximum permissible procurement, including all possible optional purchases.
Article 1003: National Treatment and Non-Discrimination
1. With respect to measures covered by this Chapter, each Party shall accord to goods o f
another Party, to the suppliers of such goods and to service suppliers of another Party,
treatment no less favorable than the most favorable treatment that the Party accords to:
(a) its own goods and suppliers; and
(b) goods and suppliers of another Party.
2. With respect to measures covered by this Chapter, no Party may:
(a) treat a locally established supplier less favorably than another locally established supplier on
the basis of degree of foreign affiliation or ownership; or
(b) discriminate against a locally established supplier on the basis that the goods or services
offered by that supplier for the particular procurement are goods or services of another Party.
3. Paragraph 1 does not apply to measures respecting customs duties or other charges of any
kind imposed on or in connection with importation, the method of levying such duties or
charges or other import regulations, including restrictions and formalities.
Article 1004: Rules of Origin
No Party may apply rules of origin to goods imported from another Party for purposes o f
government procurement covered by this Chapter that are different from or inconsistent with
the rules of origin the Party applies in the normal course of trade, which may be the Marking
Rules established under Annex 311 if they become the rules of origin applied by that Party in
the normal course of its trade.
Article 1005: Denial of Benefits

1. Subject to prior notification and consultation in accordance with Articles 1803 (Notification
and Provision of Information) and 2006 (Consultations), a Party may deny the benefits of this
Chapter to a service supplier of another Party where the Party establishes that the service is
being provided by an enterprise that is owned or controlled by persons of a non-Party and that
has no substantial business activities in the territory of any Party.
2. A Party may deny to an enterprise of another Party the benefits of this Chapter if nationals
of a non-Party own or control the enterprise and:
(a) the circumstance set out in Article 1113(1)(a) (Denial of Benefits) is met; or
(b) the denying Party adopts or maintains measures with respect to the non-Party that prohibit
transactions with the enterprise or that would be violated or circumvented if the benefits of this
Chapter were accorded to the enterprise.
Article 1006: Prohibition of Offsets
Each Party shall ensure that its entities do not, in the qualification and selection of suppliers,
goods or services, in the evaluation of bids or the award of contracts, consider, seek or impose
offsets. For purposes of this Article, offsets means conditions imposed or considered by an
entity prior to or in the course of its procurement process that encourage local development or
improve its Party's balance of payments accounts, by means of requirements of local content,
licensing of technology, investment, counter-trade or similar requirements.
Article 1007: Technical Specifications
1. Each Party shall ensure that its entities do not prepare, adopt or apply any technical
specification with the purpose or the effect of creating unnecessary obstacles to trade.
2. Each Party shall ensure that any technical specification prescribed by its entities is, where
appropriate:
(a) specified in terms of performance criteria rather than design or descriptive characteristics;
and
(b) based on international standards, national technical regulations, recognized national

standards, or building codes.
3. Each Party shall ensure that the technical specifications prescribed by its entities do not
require or refer to a particular trademark or name, patent, design or type, specific origin or
producer or supplier unless there is no sufficiently precise or intelligible way of otherwise
describing the procurement requirements and provided that, in such cases, words such as "or
equivalent" are included in the tender documentation.
4. Each Party shall ensure that its entities do not seek or accept, in a manner that would have
the effect of precluding competition, advice that may be used in the preparation or adoption o f
any technical specification for a specific procurement from a person that may have a
commercial interest in that procurement.
Section B - Tendering Procedures
Article 1008: Tendering Procedures
1. Each Party shall ensure that the tendering procedures of its entities are:
(a) applied in a non-discriminatory manner; and
(b) consistent with this Article and Articles 1009 through 1016.
2. In this regard, each Party shall ensure that its entities:
(a) do not provide to any supplier information with regard to a specific procurement in a manner
that would have the effect of precluding competition; and
(b) provide all suppliers equal access to information with respect to a procurement during the
period prior to the issuance of any notice or tender documentation.
Article 1009: Qualification of Suppliers
1. Further to Article 1003, no entity of a Party may, in the process of qualifying suppliers in a
tendering procedure, discriminate between suppliers of the other Parties or between domestic
suppliers and suppliers of the other Parties.
2. The qualification procedures followed by an entity shall be consistent with the following:
(a) conditions for participation by suppliers in tendering procedures shall be published

sufficiently in advance so as to provide the suppliers adequate time to initiate and, to the
extent that it is compatible with efficient operation of the procurement process, to complete
the qualification procedures;
(b) conditions for participation by suppliers in tendering procedures, including financial

guarantees, technical qualifications and information necessary for establishing the financial,
commercial and technical capacity of suppliers, as well as the verification of whether a supplier
meets those conditions, shall be limited to those that are essential to ensure the fulfillment o f
the contract in question;
(c) the financial, commercial and technical capacity of a supplier shall be judged both on the
basis of that supplier's global business activity, including its activity in the territory of the Party
of the supplier, and its activity, if any, in the territory of the Party of the procuring entity;
(d) an entity shall not misuse the process of, including the time required for, qualification in
order to exclude suppliers of another Party from a suppliers' list or from being considered for a
particular procurement;
(e) an entity shall recognize as qualified suppliers those suppliers of another Party that meet
the conditions for participation in a particular procurement;
(f) an entity shall consider f or a particular procurement those suppliers of another Party that
request to participate in the procurement and that are not yet qualified, provided there is
sufficient time to complete the qualification procedure;
(g) an entity that maintains a permanent list of qualified suppliers shall ensure that suppliers
may apply for qualification at any time, that all qualified suppliers so requesting are included in
the list within a reasonably short period of time and that all qualified suppliers included in the
list are notified of the termination of the list or of their removal from it;
(h) where, after publication of a notice in accordance with Article 1010, a supplier that is not
yet qualified requests to participate in a particular procurement, the entity shall promptly start
the qualification procedure;
(i) an entity shall advise any supplier that requests to become a qualified supplier of its decision
as to whether that supplier has become qualified; and
(j) where an entity rejects a supplier's application to qualify or ceases to recognize a supplier as
qualified, the entity shall, on request of the supplier, promptly provide pertinent information
concerning the entity's reasons for doing so.
(a) ensure that each of its entities uses a single qualification procedure, except that an entity
may use additional qualification procedures where the entity determines the need for a different
procedure and is prepared, on request of another Party, to demonstrate that need; and
(b) endeavor to minimize differences in the qualification procedures of its entities.
4. Nothing in paragraphs 2 and 3 shall prevent an entity from excluding a supplier on grounds
such as bankruptcy or false declarations.
Article 1010: Invitation to Participate
1. Except as otherwise provided in Article 1016, an entity shall publish an invitation t o

participate for all procurements in accordance with paragraphs 2, 3 and 5, in the appropriate
publication referred to in Annex 1010.1.
2. The invitation to participate shall take the form of a notice of proposed procurement that
shall contain the following information:
(a) a description of the nature and quantity of the goods or services to be procured, including
any options for further procurement and, if possible,
(i) an estimate of when such options may be exercised, and
(ii) in the case of recurring contracts, an estimate of when the subsequent notices will be
issued;
(b) a statement as to whether the procedure is open or selective and whether it will involve
negotiation;
(c) any date for starting or completion of delivery of the goods or services to be procured;
(d) the address to which an application to be invited to tender or to qualify for the suppliers'
lists must be submitted, the final date for receiving the application and the language or
languages in which it may be submitted;
(e) the address to which tenders must be submitted, the final date for receiving tenders and
the language or languages in which tenders may be submitted;
(f) the address of the entity that will award the contract and that will provide any information
necessary for obtaining specifications and other documents;
(g) a statement of any economic or technical requirements and of any financial guarantees,
information and documents required from suppliers;
(h) the amount and terms of payment of any sum payable for the tender documentation; and
(i) a statement as to whether the entity is inviting offers for purchase, lease or rental, with or
without an option to buy.
3. Notwithstanding paragraph 2, an entity listed in Annex 1001.1a-2 or 1001.1a-3 may use as

an invitation to participate a notice of planned procurement that shall contain as much of the
information referred to in paragraph 2 as is available to the entity, but that shall include, at a
minimum, the following information:
(a) a description of the subject matter of the procurement;
(b) the time limits set for the receipt of tenders or applications to be invited to tender;
(c) the address to which requests for documents relating to the procurement should be
submitted;
(d) a statement that interested suppliers should express their interest in the procurement t o
the entity; and
(e) the identification of a contact point within the entity from which further information may be
obtained.
4. An entity that uses a notice of planned procurement as an invitation to participate shall

subsequently invite suppliers that have expressed an interest in the procurement to confirm
their interest on the basis of information provided by the entity, which shall include at least the
information referred to in paragraph 2.
5. Notwithstanding paragraph 2, an entity listed in Annex 1001.1a-2 or 1001.1a-3 may use as
an invitation to participate a notice regarding a qualification system. An entity that uses such a
notice shall, subject to the considerations referred to Article 1015(8), provide in a timely
manner information that allows all suppliers that have expressed an interest in participating in
the procurement to have a meaningful opportunity to assess their interest. The information
shall normally include the information required for notices referred to in paragraph 2.
Information provided to any interested supplier shall be provided in a non-discriminatory manner
to all other interested suppliers.
6. In the case of selective tendering procedures, an entity that maintains a permanent list o f
qualified suppliers shall publish annually in the appropriate publication referred to in Annex
1010.1 a notice containing the following information:
(a) an enumeration of any such lists maintained, including their headings, in relation to the
goods or services or categories of goods or services to be procured through the lists;
(b) the conditions to be fulfilled by suppliers in view of their inscription on the lists and the
methods according to which each of those conditions will be verified by the entity concerned;
and
(c) the period of validity of the lists and the formalities for their renewal.
7. Where, after publication of an invitation to participate, but before the time set for the
opening or receipt of tenders as specified in the notices or the tender documentation, an entity
finds that it has become necessary to amend or reissue the notice or tender documentation,
the entity shall ensure that the amended or reissued notice or tender documentation is given
the same circulation as the original. Any significant information given by an entity to a supplier
with respect to a particular procurement shall be given simultaneously to all other interested
suppliers and sufficiently in advance so as to provide all suppliers concerned adequate time t o
consider the information and to respond.
8. An entity shall indicate in the notices referred to in this Article that the procurement is
covered by this Chapter.
Article 1011: Selective Tendering Procedures
1. To ensure optimum effective competition between the suppliers of the Parties under
selective tendering procedures, an entity shall, for each procurement, invite tenders from the
maximum number of domestic suppliers and suppliers of the other Parties, consistent with the
efficient operation of the procurement system.
2. Subject to paragraph 3, an entity that maintains a permanent list of qualified suppliers may
select suppliers to be invited to tender for a particular procurement from among those listed. In
the process of making a selection, the entity shall provide for equitable opportunities for
suppliers on the list.
3. Subject to Article 1009(2)(f), an entity shall allow a supplier that requests to participate in a
particular procurement to submit a tender and shall consider the tender. The number o f
additional suppliers permitted to participate shall be limited only by the efficient operation o f
the procurement system.
4. Where an entity does not invite or admit a supplier to tender, the entity shall, on request o f
the supplier, promptly provide pertinent information concerning its reasons for not doing so.
Article 1012: Time Limits for Tendering and Delivery
1. An entity shall:
(a) in prescribing a time limit, provide adequate time to allow suppliers of another Party t o
prepare and submit tenders before the closing of the tendering procedures;
(b) in determining a time limit, consistent with its own reasonable needs, t ake into account such
factors as the complexity of the procurement, the extent of subcontracting anticipated, and the
time normally required for transmitting tenders by mail from foreign as well as domestic points;
and
(c) take due account of publication delays when setting the final date for receipt of tenders or
applications to be invited to tender.
2. Subject to paragraph 3, an entity shall provide that:
(a) in open tendering procedures, the period for the receipt of tenders is no less than 40 days
from the date of publication of a notice in accordance with Article 1010;
(b) in selective tendering procedures not involving the use of a permanent list of qualified
suppliers, the period for submitting an application to be invited to tender is no less than 2 5
days from the date of publication of a notice in accordance with Article 1010, and the period
for receipt of tenders is no less than 40 days from the date of issuance of the invitation t o
tender; and
(c) in selective tendering procedures involving the use of a permanent list of qualified suppliers,
the period for receipt of tenders is no less than 40 days from the date of the initial issuance o f
invitations to tender, but where the date of initial issuance of invitations to tender does not
coincide with the date of publication of a notice in accordance with Article 1010, there shall not
be less than 40 days between those two dates.
3. An entity may reduce the periods referred to in paragraph 2 in accordance with the following:
(a) where a notice referred to Article 1010(3) or (5) has been published for a period of no less
than 40 days and no more than 12 months, the 40-day limit for receipt of tenders may be
reduced to no less than 24 days;
(b) in the case of the second or subsequent publications dealing with recurring contracts within
the meaning of Article 1010(2)(a), the 40-day limit for receipt of tenders may be reduced t o
no less than 24 days;
(c) where a state of urgency duly substantiated by the entity renders impracticable the periods
in question, the periods may be reduced to no less than 10 days from the date of publication o f
a notice in accordance with Article 1010; or
(d) where an entity listed in Annex 1001.1a-2 or 1001.1a- 3 is using as an invitation t o

participate a notice referred to in Article 1010(5), the periods may be fixed by mutual
agreement between the entity and all selected suppliers but, in the absence of agreement, the
entity may fix periods that shall be sufficiently long to allow for responsive bidding and in any
event shall be no less than 10 days.
4. An entity shall, in establishing a delivery date for goods or services and consistent with its
own reasonable needs, take into account such factors as the complexity of the procurement,
the extent of subcontracting anticipated and the time realistically required for production,
destocking and transport of goods from the points of supply.
Article 1013: Tender Documentation
1. Where an entity provides tender documentation to suppliers, the documentation shall contain
all information necessary to permit suppliers to submit responsive tenders, including information
required to be published in the notice referred to in Article 1010(2), except for the information
required under Article 1010(2)(h). The documentation shall also include:
(a) the address of the entity to which tenders should be submitted;
(b) the address to which requests for supplementary information should be submitted;
(c) the language or languages in which tenders and tendering documents may be submitted;
(d) the closing date and time for receipt of tenders and the length of time during which tenders
should be open for acceptance;
(e) the persons authorized to be present at the opening of tenders and the date, time and
place of the opening;
(f) a statement of any economic or technical requirements and of any financial guarantees,
information and documents required from suppliers;
(g) a complete description of the goods or services to be procured and any other requirements,
including technical specifications, conformity certification and necessary plans, drawings and
instructional materials;
(h) the criteria for awarding the contract, including any factors other than price that are to be
considered in the evaluation of tenders and the cost elements to be included in evaluating
tender prices, such as transportation, insurance and inspection costs, and in the case of goods
or services of another Party, customs duties and other import charges, taxes and the currency
of payment;
(i) the terms of payment; and

(j) any other terms or conditions.
2. An entity shall:
(a) forward tender documentation on the request of a supplier that is participating in open
tendering procedures or has requested to participate in selective tendering procedures, and
reply promptly to any reasonable request for explanations relating thereto; and
(b) reply promptly to any reasonable request for relevant information made by a supplier
participating in the tendering procedure, on condition that such information does not give that
supplier an advantage over its competitors in the procedure for the award of the contract.
Article 1014: Negotiation Disciplines
1. An entity may conduct negotiations only:
(a) in the context of procurement in which the entity has, in a notice published in accordance
with Article 1010, indicated its intent to negotiate; or
(b) where it appears to the entity from the evaluation of the tenders that no one tender is
obviously the most advantageous in terms of the specific evaluation criteria set out in the
notices or tender documentation.
2. An entity shall use negotiations primarily to identify the strengths and weaknesses in the
tenders.
3. An entity shall treat all tenders in confidence. In particular, no entity may provide to any
person information intended to assist any supplier to bring its tender up to the level of any
other tender.
4. No entity may, in the course of negotiations, discriminate between suppliers. In particular, an

entity shall:
(a) carry out any elimination of suppliers in accordance with the criteria set out in the notices
and tender documentation;
(b) provide in writing all modifications to the criteria or technical requirements to all suppliers
remaining in the negotiations;
(c) permit all remaining suppliers to submit new or amended tenders on the basis of the
modified criteria or requirements; and
(d) when negotiations are concluded, permit all remaining suppliers to submit final tenders in
accordance with a common deadline.
Article 1015: Submission, Receipt and Opening of Tenders and Awarding of Contracts
1. An entity shall use procedures for the submission, receipt and opening of tenders and the
awarding of contracts that are consistent with the following:
(a) tenders shall normally be submitted in writing directly or by mail;
(b) where tenders by telex, telegram, telecopy or other means of electronic transmission are
permitted, the tender made thereby must include all the information necessary for the
evaluation of the tender, in particular the definitive price proposed by the supplier and a
statement that the supplier agrees to all the terms and conditions of the invitation to tender;
(c) a tender made by telex, telegram, telecopy or other means of electronic transmission must
be confirmed promptly by letter or by the dispatch of a signed copy of the telex, telegram,
telecopy or electronic message;
(d) the content of the telex, telegram, telecopy or electronic message shall prevail where there
is a difference or conflict between that content and the content of any documentation received
after the time limit for submission of tenders;
(e) tenders presented by telephone shall not be permitted;
(f) requests to participate in selective tendering procedures may be submitted by telex,

telegram or telecopy and if permitted, may be submitted by other means of electronic
transmission; and
(g) the opportunities that may be given to suppliers to correct unintentional errors of form
between the opening of tenders and the awarding of the contract shall not be administered in a
manner that would result in discrimination between suppliers.
In this paragraph, "means of electronic transmission" consists of means capable of producing

for the recipient at the destination of the transmission a printed copy of the tender.
2. No entity may penalize a supplier whose tender is received in the office designated in the
tender documentation after the time specified for receiving tenders if the delay is due solely t o
mishandling on the part of the entity. An entity may also consider, in exceptional circumstances,
tenders received after the time specified for receiving tenders if the entity's procedures so
provide.
3. All tenders solicited by an entity under open or selective tendering procedures shall be
received and opened under procedures and conditions guaranteeing the regularity of the
opening of tenders. The entity shall retain the information on the opening of tenders. The
information shall remain at the disposal of the competent authorities of the Party for use, i f
required, under Article 1017, Article 1019 or Chapter Twenty (Institutional Arrangements and
Dispute Settlement Procedures).
4. An entity shall award contracts in accordance with the following:

(a) to be considered for award, a tender must, at the time of opening, conform to the essential
requirements of the notices or tender documentation and have been submitted by a supplier
that complies with the conditions for participation;
(b) if the entity has received a tender that is abnormally lower in price than other tenders
submitted, the entity may inquire of the supplier to ensure that it can comply with the
conditions of participation and is or will be capable of fulfilling the terms of the contract;
(c) unless the entity decides in the public interest not to award the contract, the entity shall
make the award to the supplier that has been determined to be fully capable of undertaking the
contract and whose tender is either the lowest-priced tender or the tender determined to be
the most advantageous in terms of the specific evaluation criteria set out in the notices or
tender documentation;
(d) awards shall be made in accordance with the criteria and essential requirements specified in
the tender documentation; and
(e) option clauses shall not be used in a manner that circumvents this Chapter.
5. No entity of a Party may make it a condition of the awarding of a contract that the supplier
has previously been awarded one or more contracts by an entity of that Party or that the
supplier has prior work experience in the territory of that Party.
6. An entity shall:
(a) on request, promptly inform suppliers participating in tendering procedures of decisions on

contract awards and, if so requested, inform them in writing; and
(b) on request of a supplier whose tender was not selected for award, provide pertinent
information to that supplier concerning the reasons for not selecting its tender, the relevant
characteristics and advantages of the tender selected and the name of the winning supplier.
7. No later than 72 days after the award of a contract, an entity shall publish a notice in the
appropriate publication referred to in Annex 1010.1 that shall contain the following information:
(a) a description of the nature and quantity of goods or services included in the contract;
(b) the name and address of the entity awarding the contract;
(c) the date of the award;
(d) the name and address of each winning supplier;
(e) the value of the contract, or the highest-priced and lowest-priced tenders considered in the
process of awarding the contract; and
(f) the tendering procedure used.

8. Notwithstanding paragraphs 1 through 7, an entity may withhold certain information on the
award of a contract where disclosure of the information:
(a) would impede law enforcement or otherwise be contrary to the public interest;
(b) would prejudice the legitimate commercial interest of a particular person; or
(c) might prejudice fair competition between suppliers.
Article 1016: Limited Tendering Procedures
1. An entity of a Party may, in the circumstances and subject to the conditions set out in
paragraph 2, use limited tendering procedures and thus derogate from Articles 1008 through
1015, provided that such limited tendering procedures are not used with a view to avoiding
maximum possible competition or in a manner that would constitute a means of discrimination
between suppliers of the other Parties or protection of domestic suppliers.
2. An entity may use limited tendering procedures in the following circumstances and subject t o
the following conditions, as applicable:
(a) in the absence of tenders in response to an open or selective call for tenders, or where the
tenders submitted either have resulted from collusion or do not conform to the essential
requirements of the tender documentation, or where the tenders submitted come from
suppliers that do not comply with the conditions for participation provided for in accordance
with this Chapter, on condition that the requirements of the initial procurement are not
substantially modified in the contract as awarded;
(b) where, for works of art, or for reasons connected with the protection of patents, copyrights
or other exclusive rights, or proprietary information or where there is an absence of competition
for technical reasons, the goods or services can be supplied only by a particular supplier and no
reasonable alternative or substitute exists;
(c) in so far as is strictly necessary where, for reasons of extreme urgency brought about by
events unforeseeable by the entity, the goods or services could not be obtained in time by
means of open or selective tendering procedures;
(d) for additional deliveries by the original supplier that are intended either as replacement parts
or continuing services for existing supplies, services or installations, or as the extension o f
existing supplies, services or installations, where a change of supplier would compel the entity
to procure equipment or services not meeting requirements of interchangeability with already
existing equipment or services, including software to the extent that the initial procurement o f
the software was covered by this Chapter;
(e) where an entity procures a prototype or a first good or service that is developed at its
request in the course of and for a particular contract for research, experiment, study or original
development. Where such contracts have been fulfilled, subsequent procurement of goods or
services shall be subject to Articles 1008 through 1015. Original development of a first good
may include limited production in order to incorporate the results of field testing and t o
demonstrate that the good is suitable for production in quantity to acceptable quality
standards, but does not include quantity production to establish commercial viability or t o
recover research and development costs;
(f) for goods purchased on a commodity market;
(g) for purchases made under exceptionally advantageous conditions that only arise in the very
short term, such as unusual disposals by enterprises that are not normally suppliers or disposal
of assets of businesses in liquidation or receivership, but not routine purchases from regular
suppliers;
(h) for a contract to be awarded to the winner of an architectural design contest, on condition
that the contest is
(i) organized in a manner consistent with the principles of this Chapter, including regarding
publication of an invitation to suitably qualified suppliers to participate in the contest,
(ii) organized with a view to awarding the design contract to the winner, and
(iii) to be judged by an independent jury; and
(i) where an entity needs to procure consulting services regarding matters of a confidential
nature, the disclosure of which could reasonably be expected to compromise government
confidences, cause economic disruption or similarly be contrary to the public interest.
3. An entity shall prepare a report in writing on each contract awarded by it under paragraph 2.
Each report shall contain the name of the procuring entity, indicate the value and kind of goods
or services procured, the name of the country of origin, and a statement indicating the
circumstances and conditions described in paragraph 2 that justified the use of limited
tendering. The entity shall retain each report. They shall remain at the disposal of the
competent authorities of the Party for use, if required, under Article 1017, Article 1019 or
Chapter Twenty (Institutional Arrangements and Dispute Settlement Procedures).
Section C - Bid Challenge
Article 1017: Bid Challenge
1. In order to promote fair, open and impartial procurement procedures, each Party shall adopt
and maintain bid challenge procedures for procurement covered by this Chapter in accordance
with the following:
(a) each Party shall allow suppliers to submit bid challenges concerning any aspect of the
procurement process, which for the purposes of this Article begins after an entity has decided
on its procurement requirement and continues through the contract award;
(b) a Party may encourage a supplier to seek a resolution of any complaint with the entity
concerned prior to initiating a bid challenge;
(c) each Party shall ensure that its entities accord fair and timely consideration to any complaint
regarding procurement covered by this Chapter;
(d) whether or not a supplier has attempted to resolve its complaint with the entity, or
following an unsuccessful attempt at such a resolution, no Party may prevent the supplier from
initiating a bid challenge or seeking any other relief;
(e) a Party may require a supplier to notify the entity on initiation of a bid challenge;
(f) a Party may limit the period within which a supplier may initiate a bid challenge, but in no
case shall the period be less than 10 working days from the time when the basis of the
complaint became known or reasonably should have become known to the supplier;
(g) each Party shall establish or designate a reviewing authority with no substantial interest in
the outcome of procurements to receive bid challenges and make findings and
recommendations concerning them;
(h) on receipt of a bid challenge, the reviewing authority shall expeditiously investigate the
challenge;
(i) a Party may require its reviewing authority to limit its considerations to the challenge i tself;
(j) in investigating the challenge, the reviewing authority may delay the awarding of the
proposed contract pending resolution of the challenge, except in cases of urgency or where the
delay would be contrary to the public interest;
(k) the reviewing authority shall issue a recommendation to resolve the challenge, which may
include directing the entity to re-evaluate offers, terminate or re-compete the contract in
question;
(l) entities normally shall follow the recommendations of the reviewing authority;
(m) each Party should authorize its reviewing authority, following the conclusion of a bid
challenge procedure, to make additional recommendations in writing to an entity respecting any
facet of the entity's procurement process that is identified as problematic during the
investigation of the challenge, including recommendations for changes in the procurement
procedures of the entity to bring them into conformity with this Chapter;
(n) the reviewing authority shall provide its findings and recommendations respecting bid
challenges in writing and in a timely manner, and shall make them available to the Parties and
interested persons;
(o) each Party shall specify in writing and shall make generally available all its bid challenge
procedures; and
(p) each Party shall ensure that each of its entities maintains complete documentation
regarding each of its procurements, including a written record of all communications
substantially affecting each procurement, for at least three years from the date the contract
was awarded, to allow verification that the procurement process was carried out in accordance
with this Chapter.
2. A Party may require that a bid challenge be initiated only after the notice of procurement has
been published or, where a notice is not published, after tender documentation has been made
available. Where a Party imposes such a requirement, the 10-working day period described in
paragraph 1(f) shall begin no earlier than the date that the notice is published or the tender
documentation is made available.
Section D - General Provisions
1. Nothing in this Chapter shall be construed to prevent a Party from taking any action or not
disclosing any information which it considers necessary for the protection of its essential
security interests relating to the procurement of arms, ammunition or war materials, or t o
procurement indispensable for national security or for national defense purposes.
2. Provided that such measures are not applied in a manner that would constitute a means o f
arbitrary or unjustifiable discrimination between Parties where the same conditions prevail or a
disguised restriction on trade between the Parties, nothing in this Chapter shall be construed t o
prevent any Party from adopting or maintaining measures:
(a) necessary to protect public morals, order or safety;
(b) necessary to protect human, animal or plant life or health;
(c) necessary to protect intellectual property; or
(d) relating to goods or services of handicapped persons, of philanthropic institutions or o f

prison labor.
Article 1019: Provision of Information
1. Further to Article 1802(1) (Publication), each Party shall promptly publish any law,
regulation, precedential judicial decision, administrative ruling of general application and any
procedure, including standard contract clauses, regarding government procurement covered by
this Chapter in the appropriate publications referred to in Annex 1010.1.
(a) on request, explain to another Party its government procurement procedures;
(b) ensure that its entities, on request from a supplier, promptly explain their procurement
practices and procedures; and
(c) designate by January 1, 1994 one or more contact points t o

(i) facilitate communication between the Parties, and
(ii) answer all reasonable inquiries from other Parties to provide relevant information on matters
3. A Party may seek such additional information on the award of the contract as may be
necessary to determine whether the procurement was made fairly and impartially, in particular
with respect to unsuccessful tenders. To this end, the Party of the procuring entity shall provide
information on the characteristics and relative advantages of the winning tender and the
contract price. Where release of this information would prejudice competition in future tenders,
the information shall not be released by the requesting Party except after consultation with and
agreement of the Party that provided the information.
4. On request, each Party shall provide to another Party information available to that Party and
its entities concerning covered procurement of its entities and the individual contracts awarded
by its entities.
5. No Party may disclose confidential information the disclosure of which would prejudice the
legitimate commercial interests of a particular person or might prejudice fair competition
between suppliers, without the formal authorization of the person that provided the information
to that Party.
6. Nothing in this Chapter shall be construed as requiring any Party to disclose confidential
information the disclosure of which would impede law enforcement or otherwise be contrary t o
the public interest.
7. With a view to ensuring effective monitoring of procurement covered by this Chapter, each
Party shall collect statistics and provide to the other Parties an annual report in accordance with
the following reporting requirements, unless the Parties otherwise agree:
(a) statistics on the estimated value of all contracts awarded, both above and below the
applicable threshold values, broken down by entities;
(b) statistics on the number and total value of contracts above the applicable threshold values,
broken down by entities, by categories of goods and services established in accordance with
classification systems developed under this Chapter and by the country of origin of the goods
and services procured;
(c) statistics on the number and total value of contracts awarded under each use of the
procedures referred to in Article 1016, broken down by entities, by categories of goods and
services, and by country of origin of the goods and services procured; and
(d) statistics on the number and total value of contracts awarded under derogations to this
Chapter set out in Annexes 1001.2a and 1001.2b, broken down by entities.
8. Each Party may organize by state or province any portion of a report referred to in paragraph
7 that pertains to entities listed in Annex 1001.1a-3.
1. The Parties shall cooperate, on mutually agreed terms, to increase understanding of their
respective government procurement systems, with a view to maximizing access to government
procurement opportunities for the suppliers of all Parties.
2. Each Party shall provide to the other Parties and to the suppliers of such Parties, on a cost
recovery basis, information concerning training and orientation programs regarding its
government procurement system, and access on a non-discriminatory basis to any program i t
conducts.
3. The training and orientation programs referred to in paragraph 2 include:
(a) training of government personnel directly involved in government procurement procedures;
(b) training of suppliers interested in pursuing government procurement opportunities;
(c) an explanation and description of specific elements of each Party's government procurement
system, such as its bid challenge mechanism; and
(d) information about government procurement market opportunities.
4. Each Party shall establish by January 1, 1994 at least one contact point to provide
information on the training and orientation programs referred to in this Article.
Article 1021: Joint Programs for Small Business
1. The Parties shall establish, within 12 months after the date of entry into force of this
Agreement, the Committee on Small Business, comprising representatives of the Parties. The
Committee shall meet as mutually agreed, but not less than once each year, and shall report
annually to the Commission on the efforts of the Parties to promote government procurement
opportunities for their small businesses.
2. The Committee shall work to facilitate the following activities of the Parties:
(a) identification of available opportunities for the training of small business personnel in
government procurement procedures;
(b) identification of small businesses interested in becoming trading partners of small

businesses in the territory of another Party;
(c) development of data bases of small businesses in the territory of each Party for use by
entities of another Party wishing to procure from small businesses;
(d) consultations regarding the factors that each Party uses in establishing its criteria for
eligibility for any small business programs; and
(e) activities to address any related matter.

Article 1022: Rectifications or Modifications
1. A Party may modify its coverage under this Chapter only in exceptional circumstances.
2. Where a Party modifies its coverage under this Chapter, the Party shall:
(a) notify the other Parties and its Section of the Secretariat of the modification;
(b) reflect the change in the appropriate Annex; and
(c) propose to the other Parties appropriate compensatory adjustments to its coverage in order
to maintain a level of coverage comparable to that existing prior to the modification.
3. Notwithstanding paragraphs 1 and 2, a Party may make rectifications of a purely formal

nature and minor amendments to its Schedules to Annexes 1001.1a-1 through 1001.1b-3 and
Annexes 1001.2a and 1001.2b, provided that it notifies such rectifications to the other Parties
and its Section of the Secretariat, and another Party does not object to such proposed
rectification within 30 days. In such cases, compensation need not be proposed.
4. Notwithstanding any other provision of this Chapter, a Party may undertake reorganizations
of its government procurement entities covered by this Chapter, including programs through
which the procurement of such entities is decentralized or the corresponding government
functions cease to be performed by any government entity, whether or not subject to this
Chapter. In such cases, compensation need not be proposed. No Party may undertake such
reorganizations or programs to avoid the obligations of this Chapter.
5. Where a Party considers that:
(a) an adjustment proposed under paragraph (2)© is not adequate to maintain a comparable
level of mutually agreed coverage, or
(b) a rectification or a minor amendment under paragraph 3 or a reorganization under paragraph

4 does not meet the applicable requirements of those paragraphs and should require
compensation,
the Party may have recourse to dispute settlement procedures under Chapter Twenty
(Institutional Arrangements and Dispute Settlement Procedures).
Article 1023: Divestiture of Entities
1. Nothing in this Chapter shall be construed to prevent a Party from divesting an entity
2. If, on the public offering of shares of an entity listed in Annex 1001.1a-2, or through other
methods, the entity is no longer subject to federal government control, the Party may delete
the entity from its Schedule to that Annex, and withdraw the entity from the coverage of this
Chapter, on notification to the other Parties and its Section of the Secretariat.
3. Where a Party objects to the withdrawal on the grounds that the entity remains subject t o
federal government control, that Party may have recourse to dispute settlement procedures
under Chapter Twenty (Institutional Arrangements and Dispute Settlement Procedures).
Article 1024: Further Negotiations
1. The Parties shall commence further negotiations no later than December 31, 1998, with a
view to the further liberalization of their respective government procurement markets.
2. In such negotiations, the Parties shall review all aspects of their government procurement
practices for purposes of:
(a) assessing the functioning of their government procurement systems;
(b) seeking to expand the coverage o f this Chapter, including by adding
(i) other government enterprises, and
(ii) procurement otherwise subject to legislated or administrative exceptions; and
(c) reviewing thresholds.
3. Prior to such review, the Parties shall endeavor to consult with their state and provincial
governments with a view to obtaining commitments, on a voluntary and reciprocal basis, t o
include within this Chapter procurement by state and provincial government entities and
enterprises.
4. If the negotiations pursuant to Article IX:6(b) of the GATT Agreement on Government

Procurement ("the Code") are completed prior to such review, the Parties shall:
(a) immediately begin consultations with their state and provincial governments with a view t o
obtaining commitments, on a voluntary and reciprocal basis, to include within this Chapter
procurement by state and provincial government entities and enterprises; and
(b) increase the obligations and coverage of this Chapter to a level at least commensurate with
that of the Code.
5. The Parties shall undertake further negotiations, to commence no later than one year after
the date of entry into force of this Agreement, on the subject of electronic transmission.
construction services contract means a contract for the realization by any means of civil or
building works listed in Appendix 1001.1b-3-A;
entity means an entity listed in Annex 1001.1a-1, 1001.1a-2 or 1001.1a-3;
goods of another Party means goods originating in the territory of another Party, determined in
accordance with Article 1004;
international standard means "international standard", as defined in Article 915 (Definitions -

Standards-Related Measures);
limited tendering procedures means procedures where an entity contacts suppliers individually,
only in the circumstances and under the conditions specified in Article 1016;
locally established supplier includes a natural person resident in the territory of the Party, an
enterprise organized or established under the Party's law, and a branch or representative office
located in the Party's territory;
open tendering procedures means those procedures under which all interested suppliers may
submit a tender;
selective tendering procedures means procedures under which, consistent with Article 1011(3),
those suppliers invited to do so by an entity may submit a tender;
services includes construction services contracts, unless otherwise specified;
standard means "standard", as defined in Article 915;
supplier means a person that has provided or could provide goods or services in response to an
entity's call for tender;
technical regulation means "technical regulation", as defined in Article 915;
technical specification means a specification which lays down goods characteristics or their
related processes and production methods, or services characteristics or their related operating
methods, including the applicable administrative provisions. It may also include or deal
exclusively with terminology, symbols, packaging, marking or labelling requirements as they
apply to a good, process, or production or operating method; and
tendering procedures means open tendering procedures, selective tendering procedures and
limited tendering procedures.
Annex 1001.1a-1
Federal Government Entities
Schedule of Canada
1. Department of Agriculture
2. Department of Communications
3. Department of Consumer and Corporate Affairs
4. Department of Employment and Immigration
5. Immigration and Refugee Board
6. Canada Employment and Immigration Commission
7. Department of Energy, Mines and Resources
8. Atomic Energy Control Board
9. National Energy Board
10. Department of the Environment
11. Department of External Affairs
12. Canadian International Development Agency (on its own account)
13. Department of Finance
14. Office of the Superintendent of Financial Institutions
15. Canadian International Trade Tribunal
16. Municipal Development and Loan Board
17. Department of Fisheries and Oceans
18. Department of Forestry
19. Department of Indian Affairs and Northern Development
20. Department of Industry, Science and Technology
21. Science Council of Canada
22. National Research Council of Canada
23. Natural Sciences and Engineering Research Council of Canada
24. Department of Justice
25. Canadian Human Rights Commission
26. Statute Revision Commission
27. Supreme Court of Canada
28. Department of Labour
29. Canada Labour Relations Board
30. Department of National Health and Welfare
31. Medical Research Council
32. Department of National Revenue
33. Department of Public Works
34. Department of Secretary of State of Canada
35. Social Sciences and Humanities Research Council
36. Office of the Co-ordinator, Status of Women
37. Public Service Commission
38. Department of the Solicitor General
39. Correctional Service of Canada
40. National Parole Board
41. Department of Supply and Services (on its own account)
42. Canadian General Standards Board
43. Department of Transport (For purposes of Article 1018, the national security considerations
applicable to the Department of National Defence are equally applicable to the Canadian Coast
Guard.)
44. Treasury Board Secretariat and the Office of the Controller General
45. Department of Veterans Affairs
46. Veterans Land Administration
47. Department of Western Economic Diversification
48. Atlantic Canada Opportunities Agency
49. Auditor General of Canada
50. Federal Office of Regional Development (Quebec)
51. Canadian Centre for Management Development
52. Canadian Radio-television and Telecommunications Commission
53. Canadian Sentencing Commission
54. Civil Aviation Tribunal
55. Commission of Inquiry into the Air Ontario Crash at Dryden, Ontario
56. Commission of Inquiry into the Use of Drugs and Banned Practices Intended to Increase
Athletic Performance
57. Commissioner for Federal Judicial Affairs
58. Competition Tribunal Registry
59. Copyright Board
60. Emergency Preparedness Canada
61. Federal Court of Canada
62. Grain Transportation Agency
63. Hazardous Materials Information Review Commission
64. Information and Privacy Commissioners
65. Investment Canada
66. Department of Multiculturalism and Citizenship
67. The National Archives of Canada
68. National Farm Products Marketing Council
69. The National Library
70. National Transportation Agency
71. Northern Pipeline Agency
72. Patented Medicine Prices Review Board
73. Petroleum Monitoring Agency
74. Privy Council Office
75. Canadian Intergovernmental Conference Secretariat
76. Commissioner of Official Languages
77. Economic Council of Canada
78. Public Service Staff Relations Office
79. Office of the Secretary to the Governor General
80. Office of the Chief Electoral Officer
81. Federal Provincial Relations Office
82. Procurement Review Board
83. Royal Commission on Electoral Reform and Party Financing
84. Royal Commission on National Passenger Transportation
85. Royal Commission on New Reproductive Technologies
86. Royal Commission on the Future of the Toronto Waterfront
87. Statistics Canada
88. Tax Court of Canada, Registry of the
89. Agricultural Stabilization Board
90. Canadian Aviation Safety Board
91. Canadian Centre for Occupational Health and Safety
92. Canadian Transportation Accident Investigation and Safety Board
93. Director of Soldier Settlement
94. Director, The Veterans' Land A c t
95. Fisheries Prices Support Board
96. National Battlefields Commission
97. Royal Canadian Mounted Police
98. Royal Canadian Mounted Police External Review Committee
99. Royal Canadian Mounted Police Public Complaints Commission
100. Department of National Defence
Schedule of Mexico
1. Secretaría de Gobernación (Ministry of Government)
Centro Nacional de Estudios Municipales (National Center for Municipal Studies)

*
Comisión Calificadora de Publicaciones y Revistas Ilustradas (Illustrated Periodicals and

Publications Classification Commission)
*
Consejo Nacional de Población (National Population Council)

*
Archivo General de la Nación (General Archives of the Nation)

*
Instituto Nacional de Estudios Históricos de la Revolución Mexicana (National Institute o f

Historical Studies on the Mexican Revolution)
*
Patronato de Asistencia para la Reincorporación Social (Social Reintegration Assistance

Foundation)
*
Centro Nacional de Prevención de Desastres (National Disaster Prevention Center)

*
Consejo Nacional de Radio y Televisión (National Radio and Television Council)

*
Comisión Mexicana de Ayuda a Refugiados (Mexican Commission on Refugee Assistance)

2. Secretaría de Relaciones Exteriores (Ministry of Foreign Relations)
Sección Mexicana de la Comisión Internacional de Límites y Aguas México-EEUU (Mexican Section

of the International Boundary and Water Commission, Mexico and the United States)
*
Sección Mexicana de la Comisión Internacional de Límites y Aguas México-Guatemala (Mexican

Section of the International Boundary and Water Commission, Mexico and Guatemala)
3. Secretaría de Hacienda y Crédito Público (Ministry Finance and Public Credit)
Comisión Nacional Bancaria (National Banking Commission)

*
Comisión Nacional de Valores (National Securities Commission)

*
Comisión Nacional de Seguros y Fianzas (National Insurance and Bonds Commission)

*
Instituto Nacional de Estadística, Geografía e Informática (National Institute of Statistics,

Geograpy, and Informatics)
4. Secretaría de Agricultura y Recursos Hidráulicos (Ministry of Agriculture and Water

Resources)
Instituto Mexicano de Tecnología del Agua (Mexican Institute of Water Technology)

*
Instituto Nacional de Investigaciones Forestales y Agropecuarias (National Forestry and

Agricultural Research Institute)
*
Apoyos a Servicios a la Comercialización Agropecuaria (Aserca) (Support Services for

Agricultural Marketing)
5. Secretaría de Comunicaciones y Transportes (including the Instituto Mexicano de
Comunicaciones and the Instituto Mexicano de Transporte) (Ministry of Communications and
Transport, including the Mexican Institute of Communications and the Mexican Institute o f
Transportation)
6. Secretaría de Comercio y Fomento Industrial (Ministry of Commerce and Industrial

Development)
7. Secretaría de Educación Pública (Ministry of Public Education)
Instituto Nacional de Antropología e Historia (National Institute of Anthropology and History)

*
Instituto Nacional de Bellas Artes y Literatura (National Institute of Fine Arts and Literature)
*
Radio Educación (Radio Education)

*
Centro de Ingeniería y Desarrollo Industrial (Engineering and Industrial Development Center)

*
Consejo Nacional para la Cultura y las Artes (National Council for Culture and the Arts)
*
Comisión Nacional del Deporte (National Sports Commission)
8. Secretaría de Salud (Ministry of Health)
Administración del Patrimonio de la Beneficencia Pública (Public Charity Fund Administration)

*
Centro Nacional de la Transfusión Sanguínea (National Blood Transfusion Center)

*
Gerencia General de Biológicos y Reactivos (Office of General Management for Biologicals and
Reagents)
*
Centro para el Desarrollo de la Infraestructura en Salud (Center for Infrastructural Development

in Health)
*
Instituto de la Comunicación Humana Dr. Andrés Bustamante Gurría (Dr. Andrés Bustamante
Gurría Institute of Human Communication)
*
Instituto Nacional de Medicina de la Rehabilitación (National Rehabilitative Medicine Institute)

*
Instituto Nacional de Ortopedia (National Orthopedics Institute)

*
Consejo Nacional para la Prevención y Control del Síndrome de la Inmunodeficiencia Adquirida,

(Conasida) (National Council for the Prevention and Control of the Autoimmune Deficiency
Syndrome)
9. Secretaría del Trabajo y Previsión Social (Ministry of Labor and Social Welfare)
Procuraduría Federal de la Defensa del Trabajo (Office of the Federal Attorney for Labor
Defense)
10. Secretaría de la Reforma Agraria (Ministry of Agrarian Reform)
Instituto de Capacitación Agraria (Institute of Agricultural Training)
11. Secretaría de Pesca (Ministry of Fisheries)
Instituto Nacional de la Pesca (National Institute of Fisheries)
12. Procuraduría General de la República (Office of the Attorney General of the Republic)
13. Secretaría de Energía, Minas e Industria Paraestatal (Ministry of Energy, Mines, and
Parastatal Industry)
Comisión Nacional de Seguridad Nuclear y Salvaguardias (National Commission on Nuclear Safety

and Safeguards)
*
Comisión Nacional para el Ahorro de Energía (National Commission for Energy Conservation)
14. Secretaría de Desarrollo Social (Ministry of Social Development)
15. Secretaría de Turismo (Ministry of Tourism)
16. Secretaría de la Contraloría General de La Federación (Ministry of the Comptroller General o f

the Federation)
17. Comisión Nacional de Zonas Aridas (National Commission on Arid Zones)
18. Comisión Nacional de Libros de Texto Gratuito (National Commission on Free Textbooks)
19. Comisión Nacional de Derechos Humanos (National Commission on Human Rights)
20. Consejo Nacional de Fomento Educativo (National Educational Development Council)
21. Secretaría de la Defensa Nacional (Ministry of National Defense)
22. Secretaría de Marina (Ministry of the Navy)
Notes:
1. This Schedule covers the numbered entities and those listed thereunder.
2. Translation provided for purposes of reference only.
1. Department of Agriculture (Not including procurement of agricultural goods made in

furtherance of agricultural support programs or human feeding programs. Federal buy national
requirements imposed as conditions of funding by the Rural Electrification Administration will
not apply to goods of Mexico and Canada, suppliers of such goods, and service suppliers o f
Mexico and Canada.)
2. Department of Commerce
3. Department of Education
4. Department of Health and Human Services
5. Department of Housing and Urban Development
6. Department of the Interior, including the Bureau of Reclamation (For goods of Canada,
suppliers of such goods and service suppliers of Canada, this Chapter will apply to procurements
by the Bureau of Reclamation of the Department of Interior only at such time as this Chapter
applies to procurements by the Canadian provincial, not including local, hydro utilities.)
7. Department of Justice
8. Department of Labor
9. Department of State
10. United States Agency for International Development
11. Department of the Treasury
12. Department of Transportation (For purposes of Article 1018, the national security
considerations applicable to the Department of Defense are equally applicable to the Coast
Guard, a military unit of the United States.)
13. Department of Energy (Not including national security procurements made in support o f
safeguarding nuclear materials or technology and entered into under the authority of the
Atomic Energy Act, and oil purchases related to the Strategic Petroleum Reserve.)
14. General Services Administration (except Federal Supply Groups 51 and 52 and Federal
Supply Class 7 3 4 0 )
15. National Aeronautics and Space Administration (NASA)
16. Department of Veterans Affairs
17. Environmental Protection Agency
18. United States Information Agency
19. National Science Foundation
20. Panama Canal Commission
21. Executive Office of the President
22. Farm Credit Administration
23. National Credit Union Administration
24. Merit Systems Protection Board
25. ACTION
26. United States Arms Control and Disarmament Agency
27. Office of Thrift Supervision
28. Federal Housing Finance Board
29. National Labor Relations Board
30. National Mediation Board
31. Railroad Retirement Board
32. American Battle Monuments Commission
33. Federal Communications Commission
34. Federal Trade Commission
35. Interstate Commerce Commission
36. Securities and Exchange Commission
37. Office of Personnel Management
38. United States International Trade Commission
39. Export-Import Bank of the United States
40. Federal Mediation and Conciliation Service
41. Selective Service System
42. Smithsonian Institution
43. Federal Deposit Insurance Corporation
44. Consumer Product Safety Commission
45. Equal Employment Opportunity Commission
46. Federal Maritime Commission
47. National Transportation Safety Board
48. Nuclear Regulatory Commission
49. Overseas Private Investment Corporation
50. Administrative Conference of the United States
51. Board for International Broadcasting
52. Commission on Civil Rights
53. Commodity Futures Trading Commission
54. Peace Corps
55. National Archives and Records Administration
56. Department of Defense, including the Army Corps of Engineers
Annex 1001.1a-2
Government Enterprises
Schedule of Canada
1. Canada Post Corporation

2. National Capital Commission
3. St. Lawrence Seaway Authority
4. Royal Canadian Mint
5. Canadian National Railway Company
6. Via Rail Canada Inc.
7. Canadian Museum of Civilization
8. Canadian Museum of Nature
9. National Gallery of Canada
10. National Museum of Science and Technology
11. Defence Construction (1951) Ltd.
Notes:
1. For greater certainty, Article 1019(5) applies to procurements by Canadian National Railway
Company, St. Lawrence Seaway Authority and Via Rail Canada Inc., respecting the protection o f
the commercial confidentiality of information provided.
2. This Chapter does not apply to procurement by or on behalf of the Royal Canadian Mint o f
direct inputs for use in minting anything other than Canadian legal tender.
3. With respect to the Canadian National Railway Company, this Chapter applies to the
procurement of goods, services and construction services for its railway operations, subject t o
any other exceptions in this Chapter.
Schedule of Mexico
Printing and Editorial
1. Talleres Gráficos de la Nación (National Printers)

2. Productora e Importadora de Papel, S.A. de C.V. (PIPSA) (Producer and Importer of Paper,
S.A. de C.V.)
Communications and Transportation
3. Aeropuertos y Servicios Auxiliares (ASA) (Airports and Auxillary Services)

4. Caminos y Puentes Federales de Ingresos y Servicios Conexos (Capufe) (Federal Toll Roads
and Bridges and Related Services)
5. Servicio Postal Mexicano (Mexican Postal Service)
6. Ferrocarriles Nacionales de México (Ferronales) (National Railways of Mexico)
7. Telecomunicaciones de México (Telecom) (Telecommunications of Mexico)
Industry
8. Petróleos Mexicanos (Pemex) (Mexican Petroleum) (Not including procurements of fuels or

gas)
9. Comisión Federal de Electricidad (CFE) (Federal Electricity Commission)
10. Consejo de Recursos Minerales (Mineral Resources Council)
11. Consejo de Recursos Mineros (Mining Resources Council)
Commerce
12. Compañía Nacional de Subsistencias Populares (Conasupo) (National Company for Basic
Commodities) (Not including procurements of agricultural goods made in furtherance o f
agricultural support programs or human feeding programs.)
13. Bodegas Rurales Conasupo, S.A. de C.V. (Conasupo Rural Storage Facilities, S.A. de C.V)
14. Distribuidora e Impulsora de Comercio, S.A. de C.V. (Diconsa) (Commercial Distributor and
Trade Promotion S.A. de C.V.)
15. Leche Industrializada Conasupo, S.A. de C.V. (Liconsa) (Conasupo Industrialized Milk, S.A. de
C.V.) (Not including procurements of agricultural goods made in furtherance of agricultural
support programs or human feeding programs.)
16. Procuraduría Federal del Consumidor (Office of the Federal Attorney for Consumers)
17. Instituto Nacional del Consumidor (National Consumer Institute)
18. Laboratorios Nacionales de Fomento Industrial (National Industrial Development
Laboratories)
19. Servicio Nacional de Información de Mercados (National Markets Information Service)
Social Security
20. Instituto de Seguridad y Servicios Sociales de los Trabajadores del Estado (ISSSTE) (Social
Security and Services Institute for Government Workers)
21. Instituto Mexicano del Seguro Social (IMSS) (Mexican Social Security Institute)
22. Sistema Nacional para el Desarrollo Integral de la Familia (DIF) (National System for
Integrated Family Development) (Not including procurements of agricultural goods made in
furtherance of agricultural support programs or human feeding programs.)
23. Servicios Asistenciales de la Secretaría de Marina (Social Security Services of the
Department of the Navy)
24. Instituto de Seguridad Social para las Fuerzas Armadas Mexicanas (Social Security Institute
for the Mexican Armed Forces)
25. Instituto Nacional Indigenista (INI) (National Institute of Indian Peoples)
26. Instituto Nacional Para la Educación de los Adultos (National Institute for Adult Education)
27. Centros de Integración Juvenil (Youth Integration Centers)
28. Instituto Nacional de la Senectud (National Institute on Old Age)
Others
29. Comité Administrador del Programa Federal de Construcción de Escuelas (CAPFCE)
(Administrative Committee of the School Construction Federal Program)
30. Comisión Nacional del Agua (CNA) (National Water Commission)
31. Comisión Para la Regularización de la Tenencia de la Tierra (Commission for the
Regularization of Land Tenure)
32. Consejo Nacional de Ciencia y Tecnología (Conacyt) (National Science and Technology
Council)
33. Notimex, S.A. de C.V.
34. Instituto Mexicano de Cinematografía (Mexican Institute of Cinematography)
35. Lotería Nacional para la Asistencia Pública (National Lottery for Public Assistance)
36. Pronósticos Deportivos (Sports Lottery)
1. Tennessee Valley Authority

2. Bonneville Power Administration
3. Western Area Power Administration
4. Southeastern Power Administration
5. Southwestern Power Administration
6. Alaska Power Administration
7. St. Lawrence Seaway Development Corporation
Note: For goods of Canada, suppliers of such goods and service suppliers of Canada, this
Chapter will apply to procurements by the authorities and power administrations listed as items
1 through 6 only at such time as this Chapter applies to the procurements by the Canadian
provincial, not including local, hydro utilities.
Annex 1001.1a-3
State and Provincial Government Entities
Coverage under this Annex will be the subject of consultations with state and provincial
governments in accordance with Article 1024.
Annex 1001.1b-1
Goods
1. This Chapter applies to all goods, except to the extent set out in paragraphs 2 through 5 and
Section B.
2. With respect to Canada, the goods listed in Section B purchased by the Department o f
National Defence and the Royal Canadian Mounted Police are included in the coverage of this
Chapter, subject to Article 1018(1).
3. With respect to Mexico, the goods listed in Section B purchased by the Secretaría de la
Defensa Nacional and the Secretaría de Marina are included in the coverage of this Chapter,
subject to the application of Article 1018(1).
4. With respect to the United States, this Chapter will generally apply to Department of Defense
purchases of the FSC categories listed in Section B subject to United States Government
determinations under Article 1018(1).
5. This Chapter does not apply to the following purchases of the U.S. Department of Defense:
(a) Federal Supply Classification (FSC) 83 - all elements other than pins, needles, sewing kits,
flagstaffs, flagpoles and flagstaff trucks;
(b) FSC 84 - all elements other than sub-class 8460 (luggage);
(c) FSC 89 - all elements other than sub-class 8975 (tobacco products);
(d) FSC 2310 - (buses only);
(e) specialty metals, defined as steels melted in steel manufacturing facilities located in the
United States or its possessions, where the maximum alloy content exceeds one or more of the
following limits, must be used in products purchased by DOD: (1) manganese, 1.65 percent;
silicon, 0.60 percent; or copper, 0.06 percent; or which contains more than 0.25 percent of any
of the following elements: aluminum, chromium, cobalt, columbium, molybdenum, nickel,
titanium, tungsten or vanadium; (2) metal alloys consisting of nickel, iron-nickel and cobalt base
alloys containing a total of other alloying metals (except iron) in excess of 10 percent; ( 3 )
titanium and titanium alloys; or (4) zirconium base alloys;
(f) FSC 19 and 20 - that part defined as naval vessels or major components of the hull or
superstructure thereof;
(g) FSC 51; and
(h) the following FSC categories are not generally covered due to application of Article
1018(1): 10, 12, 13, 14, 15, 16, 17, 19, 20, 28, 31, 58, 59 and 95.
Section B - List of Certain Goods
(Numbers refer to the Federal Supply Classification code)
22. Railway equipment

23. Motor vehicles, trailers and cycles (except buses in 2310; and, for Canada and Mexico,
except military trucks and trailers in 2320 and 2330 and tracked combat, assault and tactical
vehicles in 2 3 5 0 )
24. Tractors
25. Vehicular equipment components
26. Tires and tubes
29. Engine accessories
30. Mechanical power transmission equipment
32. Woodworking machinery and equipment
34. Metal working machinery
35. Service and trade equipment
36. Special industry machinery
37. Agricultural machinery and equipment
38. Construction, mining, excavating and highway maintenance equipment
39. Materials handling equipment
40. Rope, cable, chain and fittings
41. Refrigeration and air conditioning equipment
42. Fire fighting, rescue and safety equipment (for Canada, except 4220: Marine life-saving and
diving equipment; and 4230: Decontaminating and impregnating equipment)
43. Pumps and compressors
44. Furnace, steam plant, drying equipment and nuclear reactors
45. Plumbing, heating and sanitation equipment
46. Water purification and sewage treatment equipment
47. Pipe, tubing, hose and fittings
48. Valves
49. Maintenance and repair shop equipment
52. Measuring tools
53. Hardware and abrasives
54. Prefabricated structures and scaffolding
55. Lumber, millwork, plywood and veneer
56. Construction and building materials
61. Electric wire and power and distribution equipment
62. Lighting fixtures and lamps
63. Alarm and signal systems
65. Medical, dental and veterinary equipment and supplies
66. Instruments and laboratory equipment (for Canada, except 6615: Automatic pilot
mechanisms and airborne Gyro components; and 6665: Hazard-detecting instruments and
apparatus)
67. Photographic equipment
68. Chemicals and chemical products
69. Training aids and devices
70. General purpose automatic data processing equipment, software, supplies and support
equipment (for Canada, except 7010: ADPE configurations)
71. Furniture
72. Household and commercial furnishings and appliances
73. Food preparation and serving equipment
74. Office machines, text processing system and visible record equipment
75. Office supplies and devices
76. Books, maps and other publications (for Canada and Mexico, except 7650: drawings and
specifications)
77. Musical instruments, phonographs and home-type radios
78. Recreational and athletic equipment
79. Cleaning equipment and supplies
80. Brushes, paints, sealers and adhesives
81. Containers, packaging and packing supplies
85. Toiletries
87. Agricultural supplies
88. Live animals
91. Fuels, lubricants, oils and waxes (Canada and United States only)
93. Non-metallic fabricated materials
94. Non-metallic crude materials
96. Ores, minerals and their primary products (for Mexico, except 9620: minerals, natural and
synthetic)
99. Miscellaneous
Annex 1001.1b-2
Services
1. This Chapter applies to all services that are procured by the entities listed in Annex 1001.1a-
1 and Annex 1001.1a-2, subject to:
(a) paragraph 3 and Section B; and
(b) Appendix 1001.1b-2-A, for the Parties specified in that Appendix.
2. Appendix 1001.1b-2-B sets out the Common Classification System for the services procured
by the entities of the Parties. The Parties shall use this System for reporting purposes and shall
update Appendix 1001.1b-2-B at such times as they mutually agree.
3. Annex 1001.1b-3 applies to contracts for construction services.
Section B - Excluded Coverage
Schedule of Canada
Services Exclusions
by Major Service Category
The following service contracts are excluded:
A.
Research and Development
All Classes
B.
Special Studies and Analysis - not R&D
B002
Animal and fisheries studies
B003
Grazing and Range Studies
B507
Legal studies (Except Advisory Services on Foreign Law)
B503
Medical and health studies
B400
Aeronautic/Space Studies
C.
Architecture and Engineering Services
C112
Airfield, Communication and Missile Facilities
C216
Marine architect and engineering services
D.
Information Processing and Related Telecommunications Services
D304
ADP Telecommunications and Transmission Services, except those classified as "enhanced or
value-added services" as defined in Article 1310 and that are expressly excluded from the
reservations set out in Annex II, Schedule of Canada, II-C-3 or II-C-5. For the purposes of this
provision, the procurement of "ADP Telecommunications and Transmission services" does not
include the ownership or furnishing of facilities for the transmission of voice or data services.
D305
ADP Teleprocessing and timesharing services
D309
Information and Data Broadcasting or Data Distribution Services
D316
Telecommunications Network Management Services
D317
Automated News Service, Data Services, or Other Information Services. Buying data, the
electronic equivalent of books, periodicals, newspapers, etc.
D399
Other ADP and Telecommunications Services
F.
Natural Resources and Conservation Services
F004
Land Treatment Practices Services (plowing/clearing, etc).
F005
Range Seeding Services (ground equipment)
F006
Crop services inc. Seed Collection/Production Services
F007
Seedling Production/Transplanting Services
F011
Pesticides/Insecticides Support services
F010
Other Range/Forest Improvements services
F021
Veterinary/Animal Care services (inc. Livestock services)
F029
Other Animal Care /Control services
F030
Fisheries Resources Management Services
F031
Fish Hatchery Services
F050
Recreation Site Maintenance services (non-construction)
F059
Other natural resource and conservation services
G.
Health and Social Services
All classes
H.
Quality Control, Testing and Inspection and Technical Representative Services
Services for the Departments of Transport, Communications and Fisheries and Oceans
respecting FSC 36 - (Special Industry Machinery), FSC 70 - (Automatic Data Processing
Equipment, software supplies and support equipment) and FSC 74 (Office machines, t e x t
processing systems and visible record equipment).
FSC 58 (Communications, Detection, and Coherent Radiation Equipment)
Services with reference to transportation equipment.
J.
Maintenance, Repair, Modification, Rebuilding and Installation of Equipment

J019
Maintenance, Repair, Modification, Rebuilding and Installation of Equipment related to Ships
J998
Non-nuclear Ship Repair
K.
Custodial Operations and Related Services
K0
Personal care services
K105
Guard Services
K109
Surveillance services
K115
Preparation and Disposal of Excess and surplus property
L.
Financial and Related Services
All classes
M.
Operation of Government Owned Facilities
All facilities operated by:
The Department of Defence

The Department of Transport
The Department of Energy, Mines and Resources
and for all Departments:
M180 and M140
R.
Professional, Administrative and Management Support Services
R003
Legal services (Except Advisory Services on Foreign Law)
R004
Certifications and accreditations for products and institutions other than Educational Institutions
R007
Systems Engineering Services 1 /
R012
Patent and Trade Mark Services
R101
Expert Witness
R102
Weather Reporting/Observation services
R104
Transcription services
R106
Post Office services
R109
Translation and Interpreting services (inc. sign language)
R113
Data Collection services
R114
Logistics Support Services 2 /
R116
Court Reporting Services
R117
Paper Shredding Services
R201
Civilian Personnel Recruitment (inc. Services of Employment Agencies)
1 with reference to transportation systems
2 with respect to transportation and defence
S.
Utilities
All classes
T.
Communications, Photographic, Mapping, Printing and Publications Services
All classes
U.
Education and Training Services
U010
Certifications and accreditations for Educational Institutions
V.
Transportation, Travel and Relocation Services
All classes (except V503 Travel Agent Services [not including Tour Guides.])
W.
Lease or Rental of Equipment
Notes:
1.
All services, with reference to those goods purchased by the Department of National Defence,
the Royal Canadian Mounted Police and the Canadian Coast Guard which are not identified as
subject to coverage by this chapter (Annex 1001.1b-1), will be exempt from the disciplines o f
the Chapter.
2.
All services purchased in support of military forces located overseas will be exempt from
coverage by this chapter.
3.
The Schedules of Canada as identified in Annex 1001.2b and Annex 1001.1b -3 will apply.
4.
In the absence of agreed definitions for service classes under the proposed NAFTA classification
system, and until such time as they are mutually agreed, Canada will continue to apply
appropriate CPC definitions to identify classes which it considers exempt.
Schedule of Mexico
The following service contracts are excluded:
(Based on the United Nations Central Product Classification (CPC))

1.
All transportation services, including:
CPC
CPC
Group
Class
71
Land transportation
72
Water transport
73
Air transport
74
Supporting and auxiliary transport
75
Post and telecommunication
8868
Repair services of other transport equipment, on a fee or contract basis
2.
Public utilities services (including telecommunications, transmission, water or energy services)
3.
Management and operation contracts awarded to federally-funded research and development
centers or related to carrying out government sponsored research programs
4.
Financial services
5.
Research and development services
Service Exclusions
by Major Service Category
A.
All classes
D.
Information Processing and Related Telecommunications Services
D304
ADP Telecommunications and Transmission Services, except for those services classified as
"enhanced or value-added services," as defined in Article 1310 and that are expressly excluded
from the reservation set out in Annex II, Schedule of the United States, II-U-3. For the purposes
of this provision, the procurement of "ADP Telecommunications and Transmission services"
does not include the ownership or furnishing of facilities for the transmission of voice or data
services.
D305
ADP Teleprocessing and Timesharing Services
D316
D317
Automated News Services, Data Services or Other Information Services
D399
Other ADP and Telecommunications Services
J.
Maintenance, Repair, Modification, Rebuilding and Installation of Equipment
J019
Maintenance, Repair, Modification, Rebuilding and Installation of Equipment Related to Ships
J998
Non-nuclear Ship Repair
M.
Operation of Government-Owned Facilities
All facilities operated by the Department of Defense, Department of Energy and the National
Aeronautics and Space Administration; and for all entities:
M180
S.
Utilities
All Classes
V.
Transportation, Travel and Relocation Services
All Classes except V503 Travel Agent Services
Notes:
1.
All services purchased in support of military forces overseas will be excluded from coverage by
this Chapter.
2.
For service suppliers of Canada, this Chapter will apply to procurements by the authorities and
the power administrations listed as items 1 through 6 in the U.S. Schedule in Annex 1001.1a-2
(Government Enterprises) and to procurements by the Bureau of Reclamation of the
Department of Interior only at such time as this Chapter applies to the procurements by the
Canadian provincial, not including local, hydro utilities.
Appendix 1001.1b-2-A
Temporary Schedule of Services for Mexico
1. Until Mexico has completed its Schedule to Section B of Annex 1001.1b-2, pursuant t o
paragraph 2, this Chapter applies only in respect of the services set out in the Temporary
Schedule.
2. Mexico shall develop and, after consultations with the other Parties, complete its list o f
services set out in its Schedule to Section B of Annex 1001.1b-2 no later than July 1, 1995.
3. When Mexico completes its list pursuant to paragraph 2, each Party may, after consultation
with the other Parties, review and revise its Schedule to Section B to Annex 1001.1b-2.
Temporary Schedule
Note: Based on the United Nations Central Product Classification (CPC)
CPC
Professional Services
863
Taxation services (excluding legal services)
Architectural services
86711
Advisory and pre-design architectural services
86712
Architectural design services
86713
Contract administration services
86714
Combined architectural design and contract administration services
86719
Other architectural services
Engineering services
86721
Advisory and consultative engineering services
86722
Engineering design services for foundations and building structures
86723
Engineering design services for mechanical and electrical installations for buildings
86724
Engineering design services for civil engineering construction
86725
Engineering design for industrial processes and production
86726
Engineering design services n.e.c.
86727
Other engineering services during the construction and installation phase
86729
Other engineering services
Integrated engineering services
86731
Integrated engineering services for transportation, infrastructure turnkey projects
86732
Integrated engineering and project management services for water supply and sanitation works
turnkey projects
86733
Integrated engineering services for the construction of manufacturing turnkey projects
86739
Integrated engineering services for other turnkey projects
8674
Urban planning and landscape architectural services
Computer and Related Services

841
Consultancy services related to the installation of computer hardware
842
Software implementation services, including systems and software consulting services, systems
analysis, design, programming and maintenance services
843
Data processing services, including processing, tabulation and facilities management services
844
Data base services
845
Maintenance and repair services of office machinery and equipment including computers
849
Other computer services
Real Estate Services
821
Real estate services involving own or leased property
822
Real estate services on a fee or contract basis
Rental/Leasing Services without Operators

831
Leasing or rental services concerning machinery and equipment without operator, including
computers
832
Leasing or rental services concerning personal and household goods (excluding in 83201, the
rental of prerecorded records, sound cassettes, CD's and excluding 83202, rental services
concerning video tapes)
Other Business Services
Management consulting services
86501
General management consulting services
86503
Marketing management consulting services
86504
Human resources management consulting services
86505
Production management consulting services
86509
Other management consulting services, including agrology, agronomy, farm management and
related consulting services
8676
Technical testing and analysis services including quality control and inspection
8814
Services incidental to forestry and logging, including forest management
883
Services incidental to mining, including, drilling and field services
Related scientific and technical consulting services
86751
Geological, geophysical and other scientific prospecting services, including those related t o
mining
86752
Subsurface surveying services
86753
Surface surveying services
86754
Map making services
8861
through
8866
Repair services incidental to metal products, to machinery and equipment including computers,
8866 and communications equipment
874
Building-cleaning
876
Packaging services
Environmental Services
940
Sewage and refuse disposal, sanitation and other environmental protection services, including
sewage services, nature and landscape protection services and other environmental protection
services n.e.c.
Hotels and restaurants (including catering)

641
Hotel and other lodging services
642
Food services
643
Beverage serving services
Travel agency and tour operators services
7471
Travel agency and tour operator services
Appendix 1001.1b-2-B Common Classification System
Services
Notes: 1. It is understood that the Parties will continue to work on the development o f
definitions related to the categories and other ongoing enhancements to the Classification
System. 2. The Parties will continue to review outstanding technical issues that may arise from
time to time. 3. This common classification system follows the format described below:
Group = one digit Sub-group = two digit Class = four digit
A - Research and Development
Definition of research and development contracts: Procurement of research and development

services include the acquisition of specialized expertise for the purposes of increasing
knowledge in science; applying increased scientific knowledge or exploiting the potential o f
scientific discoveries and improvements in technology to advance the state of art; and
systematically using increases in scientific knowledge and advances in state of art to design,
develop, test, or evaluate new products or services. R&D Codes: The R&D code is composed o f
two alphabetic digits. The first digit is always the letter "A" to identify R&D, the second digit is
alphabetic "A to Z" to identify the major sub-group.
Code Descriptions
AA
Agriculture
AB
Community Services and Development
AC
Defense Systems
AD
Defense - Other
AE
Economic Growth and Productivity
AF
Education
AG
Energy
AH
Environmental Protection
AJ
General Science and Technology
AK
Housing
AL
Income Security
AM
International Affairs and Cooperation
AN
Medical
AP
Natural Resources
AQ
Social Services
AR
Space
AS
Transportation - Modal
AT
Transportation - General
AV
Mining Activities
AZ
Other Research and Development
B - Studies and Analysis - (not R&D)
Definition of studies and analysis:
Procurement of special studies and analyses are organized, analytic assessments that provide
insights for understanding complex issues or improving policy development or decision making.
Output obtained in such acquisitions is a formal, structured document including data or other
information that form the basis for conclusions or recommendations.
B0
Natural Sciences
B000
Chemical/Biological Studies and Analyses
B001
Endangered Species Studies - Plant and Animal
B002
Animal and Fisheries Studies
B003
Grazing/Range Studies
B004
Natural Resource Studies
B005
Oceanological Studies
B009
Other Natural Sciences Studies
B1
Environmental Studies
B100
Air Quality Analyses
B101
Environmental Studies Development of Environmental Impact Statements and Assessments
B102
Soil Studies
B103
Water Quality Studies
B104
Wildlife Studies
B109
Other Environmental Studies
B2
Engineering Studies
B200
Geological Studies
B201
Geophysical Studies
B202
Geotechnical Studies
B203
Scientific Data Studies
B204
Seismological Studies
B205
Building Technology Studies
B206
Energy Studies
B207
Technology Studies
B208
Housing and Community Development Studies (incl. Urban/Town Planning Studies)
B219
Other Engineering Studies
B3
Administrative Support Studies
B300
Cost Benefit Analyses
B301
Data Analyses (other than scientific)
B302
Feasibility Studies (non-construction)
B303
Mathematical/Statistical Analyses
B304
Regulatory Studies
B305
Intelligence Studies
B306
Defense Studies
B307
Security Studies (Physical and Personal)
B308
Accounting/Financial Management Studies
B309
Trade Issue Studies
B310
Foreign Policy/National Security Policy Studies
B311
Organization/Administrative/Personnel Studies
B312
Mobilization/Preparedness Studies
B313
Manpower Studies
B314
Acquisition Policy/Procedures Studies
B329
Other Administrative Support Studies
B4
Space Studies
B400
B5
Social Studies and Humanities
B500
Archeological/Paleontological Studies
B501
Historical Studies
B502
Recreation Studies
B503
Medical and Health Studies
B504
Educational Studies and Analyses
B505
Elderly/Handicapped Studies
B506
Economic Studies
B507
Legal Studies
B509
Other Studies and Analyses
C - Architect and Engineering Services

C1
- Architect and Engineering Services - Related To Construction
C11
Building and Facility Structures
C111
Administrative and Service Buildings
C112
C113
Educational Buildings
C114
Hospital Buildings
C115
Industrial Buildings
C116
Residential Buildings
C117
Warehouse Buildings
C118
Research and Development Facilities
C119
Other Buildings
C12
Non-Building Structures
C121
Conservation and Development
C122
Highways, Roads, Streets, Bridges and Railways
C123
Electric Power Generation (EPG)
C124
Utilities
C129
Other Non-Building Structures
C130
Restoration
C2
- Architect and Engineering Services - Not Related to Construction
C211
Architect - Engineer Services (incl. landscaping, interior layout and designing)
C212
Engineering Drafting Services
C213
A&E Inspection Services
C214
A&E Management Engineering Services
C215
A&E Production Engineering Services (incl. Design and Control and Building Programming)
C216
Marine Architect and Engineering Services
C219
Other Architect and Engineering Services
D - Information Processing and Related Telecommunications Services

D301
ADP Facility Operation and Maintenance Services
D302
ADP Systems Development Services
D303
ADP Data Entry Services
D304
ADP Telecommunications and Transmission Services
D305
D306
ADP Systems Analysis Services
D307
Automated Information System Design and Integration Services
D308
Programming Services
D309
D310
ADP Backup and Security Services
D311
ADP Data Conversion Services
D312
ADP Optical Scanning Services
D313
Computer Aided Design/Computer Aided Manufacturing (CAD/CAM) Services
D314
ADP System Acquisition Support Services (Includes preparation of statement of work,
benchmarks,specifications, etc.)
D315
Digitizing Services (Includes cartographic and geographic information)
D316
D317
Automated News Services, Data Services, or Other Information Services. Buying data (the
electronic equivalent of books, periodicals, newspapers, etc.)
D399
Other ADP and Telecommunications Services (incl. data storage on tapes, Compact Disk (CD),
etc.
E - Environmental Services
E101
Air Quality Support Services
E102
Industrial Investigation Surveys and Technical Support Related to Air Pollution
E103
Water Quality Support Services
E104
Industrial Investigation Surveys and Technical Support Related to Water Pollution
E106
Toxic Substances Support Services
E107
Hazardous Substance Analysis
E108
Hazardous Substance Removal, Cleanup, and Disposal Services and Operational Support
E109
Leaking Underground Storage Tank Support Services
E110
Industrial Investigations, Surveys and Technical Support for Multiple Pollutants
E111
Oil Spill Response including Cleanup, Removal, Disposal and Operational Support
E199
Other Environmental Services
F - Natural Resources Services

F0
Agriculture and Forestry Services
F001
Forest/Range Fire Suppression/Presuppression Services (incl. Water Bombing)
F002
Forest/Range Fire Rehabilitation Services (non-construction)
F003
Forest Tree Planting Services
F004
Land Treatment Practices Services (plowing/clearing, etc.)
F005
F006
Crop Services (incl. Seed Collection and Production Services)
F007
F008
Tree Breeding Services (incl. ornamental shrub)
F009
Tree Thinning Services
F010
Other Range/Forest Improvements Services (non-construction)
F011
Pesticides /Insecticides Support Services
F02
Animal Care / Control Services
F020
Other Wildlife Management Services
F021
Veterinary/Animal Care Services (incl. Livestock Services)
F029
Other Animal Care/Control Services
F03
Fisheries and Ocean Services
F030
F031
F04
Mining
F040
Surface Mining Reclamation Services (non-construction)
F041
Well Drilling
F042
Other Services Incidental to Mining Except Those Listed in F040 and F041
F05
Other Natural Resources Services
F050
Recreation Site Maintenance Services (non-construction)
F051
Survey Line Clearing Services
F059
Other Natural Resources and Conservation Services
G - Health and Social Services

G0
Health Services
G001
Health Care
G002
Internal Medicine
G003
Surgery
G004
Pathology
G009
Other Health Services
G1
Social Services
G100
Care of Remains and/or Funeral Services
G101
Chaplain Services
G102
Recreational Services (incl. Entertainment Services)
G103
Social Rehabilitation Services
G104
Geriatric Services
G199
Other Social Services
H - Quality Control, Testing, Inspection and Technical Representative Services

HO
Technical Representative Services
Hl
Quality Control Services
H2
Equipment and Materials Testing
H3
Inspection Services (incl. commercial testing and Laboratory Services, Except Medical/Dental)
H9
Other Quality Control, Testing, Inspection and Technical Representative Services
J - Maintenance, Repair, Modification, Rebuilding and Installation of Goods/Equipment

JO
Maintenance, Repair, Modification, Rebuilding and Installation of Goods/Equipment; includes as
examples:
1. Textile Finishing, Dying and Printing

2. Welding services not related to Construction.
(see CPC 5155 for Construction Welding)
J998
Non-nuclear Ship Repair (including overhauls and conversions)
K - Custodial Operations and Related Services

K0
Personal Care Services (incl. services such as Barber and Beauty Shop, Shoe Repairs and
Tailoring etc.)
K1
Custodial Services
K100
Custodial - Janitorial Services
K101
Fire Protection Services
K102
Food Services
K103
Fueling and Other Petroleum Services - Excluding Storage
K104
Trash/Garbage Collection Services - Including Portable Sanitation Services
K105
Guard Services
K106
Insect and Rodent Control Services
K107
Landscaping/Groundskeeping Services
K108
Laundry and Dry Cleaning Services
K109
Surveillance Services
K110
Solid Fuel Handling Services
K111
Carpet Cleaning
K112
Interior Plantscaping
K113
Snow Removal/Salt Service (also spreading aggregate or other snow meltings material)
K114
Waste Treatment and Storage
K115
Preparation and Disposal of Excess and Surplus Property
K116
Other Salvage Services
K199
Other Custodial and Related Services
L - Financial and Related Services

L000
Government Life Insurance Programs
L001
Government Health Insurance Programs
L002
Other Government Insurance Programs
L003
Non-Government Insurance Programs
L004
Other Insurance Services
L005
Credit Reporting Services
L006
Banking Services
L007
Debt Collection Services
L008
Coin Minting
L009
Banknote Printing
L099
Other Financial Services
M - Operation of Government - Owned Facilities

M110
Administrative Facilities and Service Buildings
M120
Airfield, Communications, and Missile Facilities
M130
M140
Hospital Buildings
M150
M160
M170
Warehouse Buildings
M180
M190
Other Buildings
M210
Conservation and Development Facilities
M220
M230
Electric Power Generation (EPG) Facilities
M240
Utilities
M290
Other Non-Building Facilities
R - Professional, Administrative and Management Support Services

R0
R001
Specifications Development Services
R002
Technology Sharing/Utilization Services
R003
Legal Services
R004
Certifications and Accreditations for products and institutions other than Educational
Institutions
R005
Technical Assistance
R006
Technical Writing Services
R007
Systems Engineering Services
R008
Engineering and Technical Services (incl. Mechanical, Electrical, Chemical, Electronic Engineering)
R009
Accounting Services
R010
Auditing Services
R011
Ongoing Audit Operations Support
R012
R013
Real Property Appraisals Services
R014
Operations Research Studies / Quantitative Analysis Studies
R015
Simulation
R016
Personal Services Contracts
R019
Other Professional Services
R1
Administrative and Management Support Services
R100
Intelligence Services
R101
Expert Witness
R102
Weather Reporting/Observation Services
R103
Courier and Messenger Services
R104
Transcription Services
R105
Mailing and Distribution Services (Excluding Post Office Services)
R106
Post Office Services
R107
Library Services
R108
Word Processing/Typing Services
R109
Translation and Interpreting Services (Including Sign Language)
R110
Stenographic Services
R111
Personal Property Management Services
R112
Information Retrieval (non-automated)
R113
Data Collection Services
R114
Logistics Support Services
R115
Contract, Procurement, and Acquisition Support Services
R116
R117
R118
Real Estate Brokerage Services
R119
Industrial Hygienics
R120
Policy Review/Development Services
R121
Program Evaluation Studies
R122
Program Management/Support Services
R123
Program Review/Development Services
R199
Other Administrative and Management Support Services
R2
Personnel Recruitment
R200
Military Personnel Recruitment
R201
Civilian Personnel Recruitment (incl. Services of Employment Agencies)
S - Utilities
S000
Gas Services
S001
Electric Services
S002
Telephone and/or Communications Services (incl. Telegraph, Telex and Cablevision Service)
S003
Water Services
S099
Other Utilities
T - Communications, Photographic, Mapping, Printing and Publication Services

T000
Communications Studies
T001
Market Research and Public Opinion Services (Formerly Telephone and Field Interview Services
incl. Focus testing, Syndicated and attitude Surveys)
T002
Communications Services (incl. exhibit Services)
T003
Advertising Services
T004
Public Relations Services (incl. Writing Services, Event Planning and Management, Media
Relations, Radio and TV Analysis, Press Services)
T005
Arts/Graphics Services
T006
Cartography Services
T007
Charting Services
T008
Film Processing Services
T009
Film/Video Tape Production Services
T010
Microfiche Services
T011
Photogrammetry Services
T012
Aerial Photographic Services
T013
General Photographic Services - Still
T014
Print/Binding Services
T015
Reproduction Services
T016
Topography Services
T017
General Photographic Services - Motion
T018
Audio/Visual Services
T019
Land Surveys, Cadastral Services (non-construction)
T099
Other Communication, Photographic, Mapping, Printing and Publication Services
U - Educational and Training Services

U001
Lectures For Training
U002
Personnel Testing
U003
Reserve Training (Military)
U004
Scientific and Management Education
U005
Tuition, Registration, and Membership Fees
U006
Vocational/Technical
U007
Faculty Salaries for Schools Overseas
U008
Training/Curriculum Development
U009
Informatics Training
U010
Certifications and Accreditations for Educational Institutions
U099
Other Education and Training Services
V - Transporation, Travel and Relocation Services

V0
Land Transport Services
V000
Motor Pool Operations
V001
Motor Freight
V002
Rail Freight
V003
Motor Charter for Things
V004
Rail Charter for Things
V005
Motor Passenger Service
V006
Rail Passenger Service
V007
Passenger Motor Charter Service
V008
Passenger Rail Charter Service
V009
Ambulance Service
V010
Taxicab Services
V011
Security Vehicle Service
V1
Water Transport Services
V100
Vessel Freight
V101
Marine Charter for Things
V102
Marine Passenger Service
V103
Passenger Marine Charter Service
V2
Air Transport Services
V200
Air Freight
V201
Air Charter for Things
V202
Air Passenger Service
V203
Passenger Air Charter Service
V204
Specialty air Services including Aerial Fertilization, Spraying and Seeding
V3
Space Transportation and Launch Services
V4
Other Transport Services
V401
Other Transportation Travel and Relocation Services
V402
Other Cargo and Freight Services
V403
Other Vehicle Charter for Transportation of Things
V5
Supporting and Auxiliary Transport Services
V500
Stevedoring
V501
Vessel Towing Service
V502
Relocation Services
V503
Travel Agent Services
V504
Packing/Crating Services
V505
Warehousing and Storage Services
V506
Salvage of Marine Vessels
V507
Salvage of Aircraft
V508
Navigational Aid and Pilotage Services
W - Lease and Rental of Equipment

WO
Appendix 1001.1b-2-B Common Classification System
Services
Notes: 1. It is understood that the Parties will continue to work on the development o f
definitions related to the categories and other ongoing enhancements to the Classification
System. 2. The Parties will continue to review outstanding technical issues that may arise from
time to time. 3. This common classification system follows the format described below:
Group = one digit Sub-group = two digit Class = four digit
A - Research and Development
Definition of research and development contracts: Procurement of research and development

services include the acquisition of specialized expertise for the purposes of increasing
knowledge in science; applying increased scientific knowledge or exploiting the potential o f
scientific discoveries and improvements in technology to advance the state of art; and
systematically using increases in scientific knowledge and advances in state of art to design,
develop, test, or evaluate new products or services. R&D Codes: The R&D code is composed o f
two alphabetic digits. The first digit is always the letter "A" to identify R&D, the second digit is
alphabetic "A to Z" to identify the major sub-group.
Code Descriptions
AA
Agriculture
AB
Community Services and Development
AC
Defense Systems
AD
Defense - Other
AE
Economic Growth and Productivity
AF
Education
AG
Energy
AH
Environmental Protection
AJ
General Science and Technology
AK
Housing
AL
Income Security
AM
International Affairs and Cooperation
AN
Medical
AP
Natural Resources
AQ
Social Services
AR
Space
AS
Transportation - Modal
AT
Transportation - General
AV
Mining Activities
AZ
Other Research and Development
B - Studies and Analysis - (not R&D)
Definition of studies and analysis:
Procurement of special studies and analyses are organized, analytic assessments that provide
insights for understanding complex issues or improving policy development or decision making.
Output obtained in such acquisitions is a formal, structured document including data or other
information that form the basis for conclusions or recommendations.
B0
Natural Sciences
B000
Chemical/Biological Studies and Analyses
B001
Endangered Species Studies - Plant and Animal
B002
Animal and Fisheries Studies
B003
Grazing/Range Studies
B004
Natural Resource Studies
B005
Oceanological Studies
B009
Other Natural Sciences Studies
B1
Environmental Studies
B100
Air Quality Analyses
B101
Environmental Studies Development of Environmental Impact Statements and Assessments
B102
Soil Studies
B103
Water Quality Studies
B104
Wildlife Studies
B109
Other Environmental Studies
B2
Engineering Studies
B200
Geological Studies
B201
Geophysical Studies
B202
Geotechnical Studies
B203
Scientific Data Studies
B204
Seismological Studies
B205
Building Technology Studies
B206
Energy Studies
B207
Technology Studies
B208
Housing and Community Development Studies (incl. Urban/Town Planning Studies)
B219
Other Engineering Studies
B3
Administrative Support Studies
B300
Cost Benefit Analyses
B301
Data Analyses (other than scientific)
B302
Feasibility Studies (non-construction)
B303
Mathematical/Statistical Analyses
B304
Regulatory Studies
B305
Intelligence Studies
B306
Defense Studies
B307
Security Studies (Physical and Personal)
B308
Accounting/Financial Management Studies
B309
Trade Issue Studies
B310
Foreign Policy/National Security Policy Studies
B311
Organization/Administrative/Personnel Studies
B312
Mobilization/Preparedness Studies
B313
Manpower Studies
B314
Acquisition Policy/Procedures Studies
B329
Other Administrative Support Studies
B4
Space Studies
B400
B5
Social Studies and Humanities
B500
Archeological/Paleontological Studies
B501
Historical Studies
B502
Recreation Studies
B503
Medical and Health Studies
B504
Educational Studies and Analyses
B505
Elderly/Handicapped Studies
B506
Economic Studies
B507
Legal Studies
B509
Other Studies and Analyses
C - Architect and Engineering Services

C1
- Architect and Engineering Services - Related To Construction
C11
Building and Facility Structures
C111
Administrative and Service Buildings
C112
C113
C114
Hospital Buildings
C115
C116
C117
Warehouse Buildings
C118
C119
Other Buildings
C12
Non-Building Structures
C121
Conservation and Development
C122
C123
Electric Power Generation (EPG)
C124
Utilities
C129
Other Non-Building Structures
C130
Restoration
C2
- Architect and Engineering Services - Not Related to Construction
C211
Architect - Engineer Services (incl. landscaping, interior layout and designing)
C212
Engineering Drafting Services
C213
A&E Inspection Services
C214
A&E Management Engineering Services
C215
A&E Production Engineering Services (incl. Design and Control and Building Programming)
C216
Marine Architect and Engineering Services
C219
Other Architect and Engineering Services
D - Information Processing and Related Telecommunications Services

D301
ADP Facility Operation and Maintenance Services
D302
ADP Systems Development Services
D303
ADP Data Entry Services
D304
ADP Telecommunications and Transmission Services
D305
D306
ADP Systems Analysis Services
D307
Automated Information System Design and Integration Services
D308
Programming Services
D309
D310
ADP Backup and Security Services
D311
ADP Data Conversion Services
D312
ADP Optical Scanning Services
D313
Computer Aided Design/Computer Aided Manufacturing (CAD/CAM) Services
D314
ADP System Acquisition Support Services (Includes preparation of statement of work,
benchmarks,specifications, etc.)
D315
Digitizing Services (Includes cartographic and geographic information)
D316
D317
Automated News Services, Data Services, or Other Information Services. Buying data (the
electronic equivalent of books, periodicals, newspapers, etc.)
D399
Other ADP and Telecommunications Services (incl. data storage on tapes, Compact Disk (CD),
etc.
E - Environmental Services
E101
Air Quality Support Services
E102
Industrial Investigation Surveys and Technical Support Related to Air Pollution
E103
Water Quality Support Services
E104
Industrial Investigation Surveys and Technical Support Related to Water Pollution
E106
Toxic Substances Support Services
E107
Hazardous Substance Analysis
E108
Hazardous Substance Removal, Cleanup, and Disposal Services and Operational Support
E109
Leaking Underground Storage Tank Support Services
E110
Industrial Investigations, Surveys and Technical Support for Multiple Pollutants
E111
Oil Spill Response including Cleanup, Removal, Disposal and Operational Support
E199
Other Environmental Services
F - Natural Resources Services

F0
Agriculture and Forestry Services
F001
Forest/Range Fire Suppression/Presuppression Services (incl. Water Bombing)
F002
Forest/Range Fire Rehabilitation Services (non-construction)
F003
Forest Tree Planting Services
F004
Land Treatment Practices Services (plowing/clearing, etc.)
F005
F006
Crop Services (incl. Seed Collection and Production Services)
F007
F008
Tree Breeding Services (incl. ornamental shrub)
F009
Tree Thinning Services
F010
Other Range/Forest Improvements Services (non-construction)
F011
Pesticides /Insecticides Support Services
F02
Animal Care / Control Services
F020
Other Wildlife Management Services
F021
Veterinary/Animal Care Services (incl. Livestock Services)
F029
Other Animal Care/Control Services
F03
Fisheries and Ocean Services
F030
F031
F04
Mining
F040
Surface Mining Reclamation Services (non-construction)
F041
Well Drilling
F042
Other Services Incidental to Mining Except Those Listed in F040 and F041
F05
Other Natural Resources Services
F050
Recreation Site Maintenance Services (non-construction)
F051
Survey Line Clearing Services
F059
Other Natural Resources and Conservation Services
G - Health and Social Services

G0
Health Services
G001
Health Care
G002
Internal Medicine
G003
Surgery
G004
Pathology
G009
Other Health Services
G1
Social Services
G100
Care of Remains and/or Funeral Services
G101
Chaplain Services
G102
Recreational Services (incl. Entertainment Services)
G103
Social Rehabilitation Services
G104
Geriatric Services
G199
Other Social Services
H - Quality Control, Testing, Inspection and Technical Representative Services

HO
Technical Representative Services
Hl
Quality Control Services
H2
Equipment and Materials Testing
H3
Inspection Services (incl. commercial testing and Laboratory Services, Except Medical/Dental)
H9
Other Quality Control, Testing, Inspection and Technical Representative Services
J - Maintenance, Repair, Modification, Rebuilding and Installation of Goods/Equipment

JO
Maintenance, Repair, Modification, Rebuilding and Installation of Goods/Equipment; includes as
examples:
1. Textile Finishing, Dying and Printing

2. Welding services not related to Construction.
(see CPC 5155 for Construction Welding)
J998
Non-nuclear Ship Repair (including overhauls and conversions)
K - Custodial Operations and Related Services

K0
Personal Care Services (incl. services such as Barber and Beauty Shop, Shoe Repairs and
Tailoring etc.)
K1
Custodial Services
K100
Custodial - Janitorial Services
K101
Fire Protection Services
K102
Food Services
K103
Fueling and Other Petroleum Services - Excluding Storage
K104
Trash/Garbage Collection Services - Including Portable Sanitation Services
K105
Guard Services
K106
Insect and Rodent Control Services
K107
Landscaping/Groundskeeping Services
K108
Laundry and Dry Cleaning Services
K109
Surveillance Services
K110
Solid Fuel Handling Services
K111
Carpet Cleaning
K112
Interior Plantscaping
K113
Snow Removal/Salt Service (also spreading aggregate or other snow meltings material)
K114
Waste Treatment and Storage
K115
Preparation and Disposal of Excess and Surplus Property
K116
Other Salvage Services
K199
Other Custodial and Related Services
L - Financial and Related Services

L000
Government Life Insurance Programs
L001
Government Health Insurance Programs
L002
Other Government Insurance Programs
L003
Non-Government Insurance Programs
L004
Other Insurance Services
L005
Credit Reporting Services
L006
Banking Services
L007
Debt Collection Services
L008
Coin Minting
L009
Banknote Printing
L099
Other Financial Services
M - Operation of Government - Owned Facilities

M110
Administrative Facilities and Service Buildings
M120
Airfield, Communications, and Missile Facilities
M130
M140
Hospital Buildings
M150
M160
M170
Warehouse Buildings
M180
M190
Other Buildings
M210
Conservation and Development Facilities
M220
M230
Electric Power Generation (EPG) Facilities
M240
Utilities
M290
Other Non-Building Facilities
R - Professional, Administrative and Management Support Services

R0
R001
Specifications Development Services
R002
Technology Sharing/Utilization Services
R003
Legal Services
R004
Certifications and Accreditations for products and institutions other than Educational
Institutions
R005
Technical Assistance
R006
Technical Writing Services
R007
Systems Engineering Services
R008
Engineering and Technical Services (incl. Mechanical, Electrical, Chemical, Electronic Engineering)
R009
Accounting Services
R010
Auditing Services
R011
Ongoing Audit Operations Support
R012
R013
Real Property Appraisals Services
R014
Operations Research Studies / Quantitative Analysis Studies
R015
Simulation
R016
Personal Services Contracts
R019
Other Professional Services
R1
Administrative and Management Support Services
R100
Intelligence Services
R101
Expert Witness
R102
Weather Reporting/Observation Services
R103
Courier and Messenger Services
R104
Transcription Services
R105
Mailing and Distribution Services (Excluding Post Office Services)
R106
Post Office Services
R107
Library Services
R108
Word Processing/Typing Services
R109
Translation and Interpreting Services (Including Sign Language)
R110
Stenographic Services
R111
Personal Property Management Services
R112
Information Retrieval (non-automated)
R113
Data Collection Services
R114
Logistics Support Services
R115
Contract, Procurement, and Acquisition Support Services
R116
R117
R118
Real Estate Brokerage Services
R119
Industrial Hygienics
R120
Policy Review/Development Services
R121
Program Evaluation Studies
R122
Program Management/Support Services
R123
Program Review/Development Services
R199
Other Administrative and Management Support Services
R2
Personnel Recruitment
R200
Military Personnel Recruitment
R201
Civilian Personnel Recruitment (incl. Services of Employment Agencies)
S - Utilities
S000
Gas Services
S001
Electric Services
S002
Telephone and/or Communications Services (incl. Telegraph, Telex and Cablevision Service)
S003
Water Services
S099
Other Utilities
T - Communications, Photographic, Mapping, Printing and Publication Services

T000
Communications Studies
T001
Market Research and Public Opinion Services (Formerly Telephone and Field Interview Services
incl. Focus testing, Syndicated and attitude Surveys)
T002
Communications Services (incl. exhibit Services)
T003
Advertising Services
T004
Public Relations Services (incl. Writing Services, Event Planning and Management, Media
Relations, Radio and TV Analysis, Press Services)
T005
Arts/Graphics Services
T006
Cartography Services
T007
Charting Services
T008
Film Processing Services
T009
Film/Video Tape Production Services
T010
Microfiche Services
T011
Photogrammetry Services
T012
Aerial Photographic Services
T013
General Photographic Services - Still
T014
Print/Binding Services
T015
Reproduction Services
T016
Topography Services
T017
General Photographic Services - Motion
T018
Audio/Visual Services
T019
Land Surveys, Cadastral Services (non-construction)
T099
Other Communication, Photographic, Mapping, Printing and Publication Services
U - Educational and Training Services

U001
Lectures For Training
U002
Personnel Testing
U003
Reserve Training (Military)
U004
Scientific and Management Education
U005
Tuition, Registration, and Membership Fees
U006
Vocational/Technical
U007
Faculty Salaries for Schools Overseas
U008
Training/Curriculum Development
U009
Informatics Training
U010
Certifications and Accreditations for Educational Institutions
U099
Other Education and Training Services
V - Transporation, Travel and Relocation Services

V0
Land Transport Services
V000
Motor Pool Operations
V001
Motor Freight
V002
Rail Freight
V003
Motor Charter for Things
V004
Rail Charter for Things
V005
Motor Passenger Service
V006
Rail Passenger Service
V007
Passenger Motor Charter Service
V008
Passenger Rail Charter Service
V009
Ambulance Service
V010
Taxicab Services
V011
Security Vehicle Service
V1
Water Transport Services
V100
Vessel Freight
V101
Marine Charter for Things
V102
Marine Passenger Service
V103
Passenger Marine Charter Service
V2
Air Transport Services
V200
Air Freight
V201
Air Charter for Things
V202
Air Passenger Service
V203
Passenger Air Charter Service
V204
Specialty air Services including Aerial Fertilization, Spraying and Seeding
V3
Space Transportation and Launch Services
V4
Other Transport Services
V401
Other Transportation Travel and Relocation Services
V402
Other Cargo and Freight Services
V403
Other Vehicle Charter for Transportation of Things
V5
Supporting and Auxiliary Transport Services
V500
Stevedoring
V501
Vessel Towing Service
V502
Relocation Services
V503
Travel Agent Services
V504
Packing/Crating Services
V505
Warehousing and Storage Services
V506
Salvage of Marine Vessels
V507
Salvage of Aircraft
V508
Navigational Aid and Pilotage Services
W - Lease and Rental of Equipment

WO
PART FIVE: INVESTMENT, SERVICES AND RELATED MATTERS
Chapter Eleven: Investment
Section A - Investment
1. This Chapter applies to measures adopted or maintained by a Party relating to:

(a) investors of another Party;
(b) investments of investors of another Party in the territory of the Party; and
(c) with respect to Articles 1106 and 1114, all investments in the territory of the Party.
2. A Party has the right to perform exclusively the economic activities set out in Annex III and
to refuse to permit the establishment of investment in such activities.
3. This Chapter does not apply to measures adopted or maintained by a Party to the extent
that they are covered by Chapter Fourteen (Financial Services).
4. Nothing in this Chapter shall be construed to prevent a Party from providing a service or
performing a function such as law enforcement, correctional services, income security or
insurance, social security or insurance, social welfare, public education, public training, health,
and child care, in a manner that is not inconsistent with this Chapter.
1. Each Party shall accord to investors of another Party treatment no less favorable than that i t
accords, in like circumstances, to its own investors with respect to the establishment,
acquisition, expansion, management, conduct, operation, and sale or other disposition o f
investments.
2. Each Party shall accord to investments of investors of another Party treatment no less
favorable than that i t accords, in like circumstances, to investments of its own investors with
respect to the establishment, acquisition, expansion, management, conduct, operation, and sale
or other disposition of investments.
3. The treatment accorded by a Party under paragraphs 1 and 2 means, with respect to a state
or province, treatment no less favorable than the most favorable treatment accorded, in like
circumstances, by that state or province to investors, and to investments of investors, of the
Party of which it forms a part.
4. For greater certainty, no Party may:
(a) impose on an investor of another Party a requirement that a minimum level of equity in an
enterprise in the territory of the Party be held by its nationals, other than nominal qualifying
shares for directors or incorporators of corporations; or
(b) require an investor of another Party, by reason of its nationality, to sell or otherwise dispose
of an investment in the territory of the Party.
Article 1103: Most-Favored-Nation Treatment
accords, in like circumstances, to investors of any other Party or of a non-Party with respect t o
the establishment, acquisition, expansion, management, conduct, operation, and sale or other
disposition of investments.
2. Each Party shall accord to investments of investors of another Party treatment no less
favorable than that it accords, in like circumstances, to investments of investors of any other
Party or of a non-Party with respect to the establishment, acquisition, expansion, management,
conduct, operation, and sale or other disposition of investments.
Article 1104: Standard of Treatment
Each Party shall accord to investors of another Party and to investments of investors of another
Party the better of the treatment required by Articles 1102 and 1103.
Article 1105: Minimum Standard of Treatment
1. Each Party shall accord to investments of investors of another Party treatment in accordance
with international law, including fair and equitable treatment and full protection and security.
2. Without prejudice to paragraph 1 and notwithstanding Article 1108(7)(b), each Party shall
accord to investors of another Party, and to investments of investors of another Party, non-
discriminatory treatment with respect to measures it adopts or maintains relating to losses
suffered by investments in its territory owing to armed conflict or civil strife.
3. Paragraph 2 does not apply to existing measures relating to subsidies or grants that would be
inconsistent with Article 1102 but for Article 1108(7)(b).
Article 1106: Performance Requirements
1. No Party may impose or enforce any of the following requirements, or enforce any
commitment or undertaking, in connection with the establishment, acquisition, expansion,
management, conduct or operation of an investment of an investor of a Party or of a non-Party
in its territory:
(a) to export a given level or percentage of goods or services;
(b) to achieve a given level or percentage of domestic content;
(c) to purchase, use or accord a preference to goods produced or services provided in its
territory, or to purchase goods or services from persons in its territory;
(d) to relate in any way the volume or value of imports to the volume or value of exports or t o
the amount of foreign exchange inflows associated with such investment;
(e) to restrict sales of goods or services in its territory that such investment produces or
provides by relating such sales in any way to the volume or value of its exports or foreign
exchange earnings;
(f) to transfer technology, a production process or other proprietary knowledge to a person in
its territory, except when the requirement is imposed or the commitment or undertaking is
enforced by a court, administrative tribunal or competition authority to remedy an alleged
violation of competition laws or to act in a manner not inconsistent with other provisions of this
Agreement; or
(g) to act as the exclusive supplier of the goods it produces or services it provides to a specific
region or world market.
2. A measure that requires an investment to use a technology to meet generally applicable

health, safety or environmental requirements shall not be construed to be inconsistent with
paragraph 1(f). For greater certainty, Articles 1102 and 1103 apply to the measure.
3. No Party may condition the receipt or continued receipt of an advantage, in connection with
an investment in its territory of an investor of a Party or of a non-Party, on compliance with any
of the following requirements:
(a) to achieve a given level or percentage of domestic content;
(b) to purchase, use or accord a preference to goods produced in its territory, or to purchase
goods from producers in its territory;
(c) to relate in any way the volume or value of imports to the volume or value of exports or t o
the amount of foreign exchange inflows associated with such investment; or
(d) to restrict sales of goods or services in its territory that such investment produces or
provides by relating such sales in any way to the volume or value of its exports or foreign
exchange earnings.
4. Nothing in paragraph 3 shall be construed to prevent a Party from conditioning the receipt or
continued receipt of an advantage, in connection with an investment in its territory of an
investor of a Party or of a non-Party, on compliance with a requirement to locate production,
provide a service, train or employ workers, construct or expand particular facilities, or carry out
research and development, in its territory.
5. Paragraphs 1 and 3 do not apply to any requirement other than the requirements set out in
those paragraphs.
6. Provided that such measures are not applied in an arbitrary or unjustifiable manner, or do not
constitute a disguised restriction on international trade or investment, nothing in paragraph
1(b) or (c) or 3(a) or (b) shall be construed to prevent any Party from adopting or maintaining
measures, including environmental measures:
(a) necessary to secure compliance with laws and regulations that are not inconsistent with the
provisions of this Agreement;
(b) necessary to protect human, animal or plant life or health; or
(c) necessary for the conservation of living or non-living exhaustible natural resources.
Article 1107: Senior Management and Boards of Directors
1. No Party may require that an enterprise of that Party that is an investment of an investor o f
another Party appoint to senior management positions individuals of any particular nationality.
2. A Party may require that a majority of the board of directors, or any committee thereof, o f
an enterprise of that Party that is an investment of an investor of another Party, be of a
particular nationality, or resident in the territory of the Party, provided that the requirement
does not materially impair the ability of the investor to exercise control over its investment.
Article 1108: Reservations and Exceptions
1. Articles 1102, 1103, 1106 and 1107 do not apply to:
(a) any existing non-conforming measure that is maintained by
(i) a Party at the federal level, as set out in its Schedule to Annex I or III,
(ii) a state or province, for two years after the date of entry into force of this Agreement, and
thereafter as set out by a Party in its Schedule to Annex I in accordance with paragraph 2, or
(iii) a local government;
(b) the continuation or prompt renewal of any non-conforming measure referred to in

subparagraph (a); or
(c) an amendment to any non-conforming measure referred to in subparagraph (a) to the

extent that the amendment does not decrease the conformity of the measure, as it existed
immediately before the amendment, with Articles 1102, 1103, 1106 and 1107.
2. Each Party may set out in its Schedule to Annex I, within two years of the date of entry into
force of this Agreement, any existing nonconforming measure maintained by a state or
province, not including a local government.
3. Articles 1102, 1103, 1106 and 1107 do not apply to any measure that a Party adopts or
maintains with respect to sectors, subsectors or activities, as set out in its Schedule to Annex
II.
4. No Party may, under any measure adopted after the date of entry into force of this
Agreement and covered by its Schedule to Annex II, require an investor of another Party, by
reason of its nationality, to sell or otherwise dispose of an investment existing at the time the
measure becomes effective.
5. Articles 1102 and 1103 do not apply to any measure that is an exception to, or derogation
from, the obligations under Article 1703 (Intellectual Property National Treatment) as
specifically provided for in that Article.
6. Article 1103 does not apply to treatment accorded by a Party pursuant to agreements, or
with respect to sectors, set out in its Schedule to Annex IV.
7. Articles 1102, 1103 and 1107 do not apply to:
(a) procurement by a Party or a state enterprise; or
(b) subsidies or grants provided by a Party or a state enterprise, including government

supported loans, guarantees and insurance.
8. The provisions of:
(a) Article 1106(1)(a), (b) and (c), and (3)(a) and (b) do not apply to qualification
requirements for goods or services with respect to export promotion and foreign aid programs;
(b) Article 1106(1)(b), (c), (f) and (g), and (3)(a) and (b) do not apply to procurement by a
Party or a state enterprise; and
(c) Article 1106(3)(a) and (b) do not apply to requirements imposed by an importing Party
relating to the content of goods necessary to qualify for preferential tariffs or preferential
quotas.
Article 1109: Transfers
1. Each Party shall permit all transfers relating to an investment of an investor of another Party
in the territory of the Party to be made freely and without delay. Such transfers include:
(a) profits, dividends, interest, capital gains, royalty payments, management fees, technical
assistance and other fees, returns in kind and other amounts derived from the investment;
(b) proceeds from the sale of all or any part of the investment or from the partial or complete
liquidation of the investment;
(c) payments made under a contract entered into by the investor, or its investment, including
payments made pursuant to a loan agreement;
(d) payments made pursuant to Article 1110; and
(e) payments arising under Section B.
2. Each Party shall permit transfers to be made in a freely usable currency at the market rate o f
exchange prevailing on the date of transfer with respect to spot transactions in the currency t o
be transferred.
3. No Party may require its investors to transfer, or penalize its investors that fail to transfer,
the income, earnings, profits or other amounts derived from, or attributable to, investments in
the territory of another Party.
4. Notwithstanding paragraphs 1 and 2, a Party may prevent a transfer through the equitable,
non-discriminatory and good faith application of its laws relating to:
(a) bankruptcy, insolvency or the protection of the rights of creditors;
(b) issuing, trading or dealing in securities;
(c) criminal or penal offenses;
(d) reports of transfers of currency or other monetary instruments; or
(e) ensuring the satisfaction of judgments in adjudicatory proceedings.
5. Paragraph 3 shall not be construed to prevent a Party from imposing any measure through
the equitable, non-discriminatory and good faith application of its laws relating to the matters
set out in subparagraphs (a) through (e) of paragraph 4.
6. Notwithstanding paragraph 1, a Party may restrict transfers of returns in kind in

circumstances where it could otherwise restrict such transfers under this Agreement, including
as set out in paragraph 4.
Article 1110: Expropriation and Compensation
1. No Party may directly or indirectly nationalize or expropriate an investment of an investor o f

another Party in its territory or take a measure tantamount to nationalization or expropriation o f
such an investment ("expropriation"), except:
(a) for a public purpose;
(b) on a non-discriminatory basis;
(c) in accordance with due process of law and Article 1105(1); and
(d) on payment of compensation in accordance with paragraphs 2 through 6.
2. Compensation shall be equivalent to the fair market value of the expropriated investment
immediately before the expropriation took place ("date of expropriation"), and shall not reflect
any change in value occurring because the intended expropriation had become known earlier.
Valuation criteria shall include going concern value, asset value including declared tax value o f
tangible property, and other criteria, as appropriate, to determine fair market value.
3. Compensation shall be paid without delay and be fully realizable.

4. If payment is made in a G7 currency, compensation shall include interest at a commercially
reasonable rate for that currency from the date of expropriation until the date of actual
payment.
5. If a Party elects to pay in a currency other than a G7 currency, the amount paid on the date
of payment, if converted into a G7 currency at the market rate of exchange prevailing on that
date, shall be no less than if the amount of compensation owed on the date of expropriation
had been converted into that G7 currency at the market rate of exchange prevailing on that
date, and interest had accrued at a commercially reasonable rate for that G7 currency from the
date of expropriation until the date of payment.
6. On payment, compensation shall be freely transferable as provided in Article 1109.
7. This Article does not apply to the issuance of compulsory licenses granted in relation t o
intellectual property rights, or to the revocation, limitation or creation of intellectual property
rights, to the extent that such issuance, revocation, limitation or creation is consistent with
Chapter Seventeen (Intellectual Property).
8. For purposes of this A r ticle and for greater certainty, a non-discriminatory measure o f
general application shall not be considered a measure tantamount to an expropriation of a debt
security or loan covered by this Chapter solely on the ground that the measure imposes costs
on the debtor that cause it to default on the debt.
Article 1111: Special Formalities and Information Requirements
1. Nothing in Article 1102 shall be construed to prevent a Party from adopting or maintaining a
measure that prescribes special formalities in connection with the establishment of investments
by investors of another Party, such as a requirement that investors be residents of the Party or
that investments be legally constituted under the laws or regulations of the Party, provided that
such formalities do not materially impair the protections afforded by a Party to investors o f
another Party and investments of investors of another Party pursuant to this Chapter.
2. Notwithstanding Articles 1102 or 1103, a Party may require an investor of another Party, or
its investment in its territory, to provide routine information concerning that investment solely
for informational or statistical purposes. The Party shall protect such business information that
is confidential from any disclosure that would prejudice the competitive position of the investor
or the investment. Nothing in this paragraph shall be construed to prevent a Party from
otherwise obtaining or disclosing information in connection with the equitable and good faith
application of its law.
1. In the event of any inconsistency between this Chapter and another Chapter, the other
Chapter shall prevail to the extent of the inconsistency.
2. A requirement by a Party that a service provider of another Party post a bond or other form
of financial security as a condition of providing a service into its territory does not of itself
make this Chapter applicable to the provision of that crossborder service. This Chapter applies
to that Party's treatment of the posted bond or financial security.
1. A Party may deny the benefits of this Chapter to an investor of another Party that is an
enterprise of such Party and to investments of such investor if investors of a non-Party own or
control the enterprise and the denying Party:
(a) does not maintain diplomatic relations with the non-Party; or
(b) adopts or maintains measures with respect to the non-Party that prohibit transactions with
the enterprise or that would be violated or circumvented if the benefits of this Chapter were
accorded to the enterprise or to its investments.
and Provision of Information) and 2006 (Consultations), a Party may deny the benefits of this
Chapter to an investor of another Party that is an enterprise of such Party and to investments
of such investors if investors of a non-Party own or control the enterprise and the enterprise
has no substantial business activities in the territory of the Party under whose law it is
constituted or organized.
Article 1114: Environmental Measures
1. Nothing in this Chapter shall be construed to prevent a Party from adopting, maintaining or
enforcing any measure otherwise consistent with this Chapter that it considers appropriate t o
ensure that investment activity in its territory is undertaken in a manner sensitive t o
environmental concerns.
2. The Parties recognize that it is inappropriate to encourage investment by relaxing domestic

health, safety or environmental measures. Accordingly, a Party should not waive or otherwise
derogate from, or offer to waive or otherwise derogate from, such measures as an
encouragement for the establishment, acquisition, expansion or retention in its territory of an
investment of an investor. If a Party considers that another Party has offered such an
encouragement, it may request consultations with the other Party and the two Parties shall
consult with a view to avoiding any such encouragement.
Section B Settlement of Disputes between a Party and

an Investor of Another Party
Article 1115: Purpose
Without prejudice to the rights and obligations of the Parties under Chapter Twenty
(Institutional Arrangements and Dispute Settlement Procedures), this Section establishes a
mechanism for the settlement of investment disputes that assures both equal treatment among
investors of the Parties in accordance with the principle of international reciprocity and due
process before an impartial tribunal.
Article 1116: Claim by an Investor of a Party on Its Own Behalf
1. An investor of a Party may submit to arbitration under this Section a claim that another Party
has breached an obligation under:
(a) Section A or Article 1503(2) (State Enterprises), or
(b) Article 1502(3)(a) (Monopolies and State Enterprises) where the monopoly has acted in a
manner inconsistent with the Party's obligations under Section A,
and that the investor has incurred loss or damage by reason of, or arising out o f, that breach.
2. An investor may not make a claim if more than three years have elapsed from the date on
which the investor first acquired, or should have first acquired, knowledge of the alleged breach
and knowledge that the investor has incurred loss or damage.
Article 1117: Claim by an Investor of a Party on Behalf of an Enterprise
1. An investor of a Party, on behalf of an enterprise of another Party that is a juridical person

that the investor owns or controls directly or indirectly, may submit to arbitration under this
Section a claim that the other Party has breached an obligation under:
(a) Section A or Article 1503(2) (State Enterprises), or
(b) Article 1502(3)(a) (Monopolies and State Enterprises) where the monopoly has acted in a
manner inconsistent with the Party's obligations under Section A, and that the enterprise has
incurred loss or damage by reason of, or arising out of, that breach.
2. An investor may not make a claim on behalf of an enterprise described in paragraph 1 if more
than three years have elapsed from the date on which the enterprise first acquired, or should
have first acquired, knowledge of the alleged breach and knowledge that the enterprise has
incurred loss or damage.
3. Where an investor makes a claim under this Article and the investor or a non-controlling
investor in the enterprise makes a claim under Article 1116 arising out of the same events that
gave rise to the claim under this Article, and two or more of the claims are submitted t o
arbitration under Article 1120, the claims should be heard together by a Tribunal established
under Article 1126, unless the Tribunal finds that the interests of a disputing party would be
prejudiced thereby.
4. An investment may not make a claim under this Section.
Article 1118: Settlement of a Claim through Consultation and Negotiation
The disputing parties should first attempt to settle a claim through consultation or negotiation.
Article 1119: Notice of Intent to Submit a Claim to Arbitration
The disputing investor shall deliver to the disputing Party written notice of its intention t o
submit a claim to arbitration at least 90 days before the claim is submitted, which notice shall
specify:
(a) the name and address of the disputing investor and, where a claim is made under Article
1117, the name and address of the enterprise;
(b) the provisions of this Agreement alleged to have been breached and any other relevant
provisions;
(c) the issues and the factual basis for the claim; and
(d) the relief sought and the approximate amount of damages claimed.
Article 1120: Submission of a Claim to Arbitration
1. Except as provided in Annex 1120.1, and provided that six months have elapsed since the
events giving rise to a claim, a disputing investor may submit the claim to arbitration under:
(a) the ICSID Convention, provided that both the disputing Party and the Party of the investor
are parties to the Convention;
(b) the Additional Facility Rules of ICSID, provided that either the disputing Party or the Party o f
the investor, but not both, is a party to the ICSID Convention; or
(c) the UNCITRAL Arbitration Rules.
2. The applicable arbitration rules shall govern the arbitration except to the extent modified by
this Section.
Article 1121: Conditions Precedent to Submission of a Claim to Arbitration
1. A disputing investor may submit a claim under Article 1116 to arbitration only if:
(a) the investor consents to arbitration in accordance with the procedures set out in this
Agreement; and
(b) the investor and, where the claim is for loss or damage to an interest in an enterprise o f
another Party that is a juridical person that the investor owns or controls directly or indirectly,
the enterprise, waive their right to initiate or continue before any administrative tribunal or
court under the law of any Party, or other dispute settlement procedures, any proceedings with
respect to the measure of the disputing Party that is alleged to be a breach referred to in
Article 1116, except for proceedings for injunctive, declaratory or other extraordinary relief, not
involving the payment of damages, before an administrative tribunal or court under the law o f
the disputing Party.
2. A disputing investor may submit a claim under Article 1117 to arbitration only if both the
investor and the enterprise:
(a) consent to arbitration in accordance with the procedures set out in this Agreement; and
(b) waive their right to initiate or continue before any administrative tribunal or court under the
law of any Party, or other dispute settlement procedures, any proceedings with respect to the
measure of the disputing Party that is alleged to be a breach referred to in Article 1117, except
for proceedings for injunctive, declaratory or other extraordinary relief, not involving the
payment of damages, before an administrative tribunal or court under the law of the disputing
Party.
3. A consent and waiver required by this Article shall be in writing, shall be delivered to the
disputing Party and shall be included in the submission of a claim to arbitration.
4. Only where a disputing Party has deprived a disputing investor of control of an enterprise:
(a) a waiver from the enterprise under paragraph 1(b) or 2(b) shall not be required; and
(b) Annex 1120.1(b) shall not apply.
Article 1122: Consent to Arbitration
1. Each Party consents to the submission of a claim to arbitration in accordance with the
procedures set out in this Agreement.
2. The consent given by paragraph 1 and the submission by a disputing investor of a claim t o
arbitration shall satisfy the requirement of:
(a) Chapter II of the ICSID Convention (Jurisdiction of the Centre) and the Additional Facility
Rules for written consent of the parties;
(b) Article II of the New York Convention for an agreement in writing; and
(c) Article I of the InterAmerican Convention for an agreement.
Article 1123: Number of Arbitrators and Method of Appointment
Except in respect of a Tribunal established under Article 1126, and unless the disputing parties
otherwise agree, the Tribunal shall comprise three arbitrators, one arbitrator appointed by each
of the disputing parties and the third, who shall be the presiding arbitrator, appointed by
agreement of the disputing parties.
Article 1124: Constitution of a Tribunal When a Party Fails to Appoint an Arbitrator or the
Disputing Parties Are Unable to Agree on a Presiding Arbitrator
1. The Secretary-General shall serve as appointing authority for an arbitration under this
Section.
2. If a Tribunal, other than a Tribunal established under Article 1126, has not been constituted
within 90 days from the date that a claim is submitted to arbitration, the Secretary-General, on
the request of either disputing party, shall appoint, in his discretion, the arbitrator or arbitrators
not yet appointed, except that the presiding arbitrator shall be appointed in accordance with
paragraph 3.
3. The Secretary-General shall appoint the presiding arbitrator from the roster of presiding
arbitrators referred to in paragraph 4, provided that the presiding arbitrator shall not be a
national of the disputing Party or a national of the Party of the disputing investor. In the event
that no such presiding arbitrator is available to serve, the Secretary-General shall appoint, from
the ICSID Panel of Arbitrators, a presiding arbitrator who is not a national of any of the Parties.
4. On the date of entry into force of this Agreement, the Parties shall establish, and thereafter
maintain, a roster of 45 presiding arbitrators meeting the qualifications of the Convention and
rules referred to in Article 1120 and experienced in international law and investment matters.
The roster members shall be appointed by consensus and without regard to nationality.
Article 1125: Agreement to Appointment of Arbitrators
For purposes of Article 39 of the ICSID Convention and Article 7 of Schedule C to the ICSID
Additional Facility Rules, and without prejudice to an objection to an arbitrator based on Article
1124(3) or on a ground other than nationality:
(a) the disputing Party agrees to the appointment of each individual member of a Tribunal
established under the ICSID Convention or the ICSID Additional Facility Rules;
(b) a disputing investor referred to in Article 1116 may submit a claim to arbitration, or
continue a claim, under the ICSID Convention or the ICSID Additional Facility Rules, only on
condition that the disputing investor agrees in writing to the appointment of each individual
member of the Tribunal; and
(c) a disputing investor referred to in A r ticle 1117(1) may submit a claim to arbitration, or
continue a claim, under the ICSID Convention or the ICSID Additional Facility Rules, only on
condition that the disputing investor and the enterprise agree in writing to the appointment o f
each individual member of the Tribunal.
Article 1126: Consolidation
1. A Tribunal established under this Article shall be established under the UNCITRAL Arbitration
Rules and shall conduct its proceedings in accordance with those Rules, except as modified by
this Section.
2. Where a Tribunal established under this Article is satisfied that claims have been submitted
to arbitration under Article 1120 that have a question of law or fact in common, the Tribunal
may, in the interests of fair and efficient resolution of the claims, and after hearing the
disputing parties, by order:
(a) assume jurisdiction over, and hear and determine together, all or part of the claims; or
(b) assume jurisdiction over, and hear and determine one or more of the claims, the
determination of which it believes would assist in the resolution of the others.
3. A disputing party that seeks an order under paragraph 2 shall request the Secretary-General
to establish a Tribunal and shall specify in the request:
(a) the name of the disputing Party or disputing investors against which the order is sought;
(b) the nature of the order sought; and
(c) the grounds on which the order is sought.
4. The disputing party shall deliver to the disputing Party or disputing investors against which
the order is sought a copy of the request.
5. Within 60 days of receipt of the request, the Secretary-General shall establish a Tribunal
comprising three arbitrators. The Secretary-General shall appoint the presiding arbitrator from
the roster referred to in Article 1124(4). In the event that no such presiding arbitrator is
available to serve, the Secretary-General shall appoint, from the ICSID Panel of Arbitrators, a
presiding arbitrator who is not a national of any of the Parties. The Secretary-General shall
appoint the two other members from the roster referred to in Article 1124(4), and to the
extent not available from that roster, from the ICSID Panel of Arbitrators, and to the extent not
available from that Panel, in the discretion of the Secretary-General. One member shall be a
national of the disputing Party and one member shall be a national of a Party of the disputing
investors.
6. Where a Tribunal has been established under this Article, a disputing investor that has
submitted a claim to arbitration under Article 1116 or 1117 and that has not been named in a
request made under paragraph 3 may make a written request to the Tribunal that it be included
in an order made under paragraph 2, and shall specify in the request:
(a) the name and address of the disputing investor;
(b) the nature of the order sought; and
(c) the grounds on which the order is sought.
7. A disputing investor referred to in paragraph 6 shall deliver a copy of its request to the
disputing parties named in a request made under paragraph 3.
8. A Tribunal established under Article 1120 shall not have jurisdiction to decide a claim, or a
part of a claim, over which a Tribunal established under this Article has assumed jurisdiction.
9. On application of a disputing party, a Tribunal established under this Article, pending its
decision under paragraph 2, may order that the proceedings of a Tribunal established under
Article 1120 be stayed, unless the latter Tribunal has already adjourned its proceedings.
10. A disputing Party shall deliver to the Secretariat, within 15 days of receipt by the disputing
Party, a copy of:
(a) a request for arbitration made under paragraph (1) of Article 36 of the ICSID Convention;
(b) a notice of arbitration made under Article 2 of Schedule C of the ICSID Additional Facility
Rules; or
(c) a notice of arbitration given under the UNCITRAL Arbitration Rules.
11. A disputing Party shall deliver to the Secretariat a copy of a request made under paragraph
3:
(a) within 15 days of receipt of the request, in the case of a request made by a disputing
investor;
(b) within 15 days of making the request, in the case of a request made by the disputing Party.
12. A disputing Party shall deliver to the Secretariat a copy of a request made under paragraph
6 within 15 days of receipt of the request.
13. The Secretariat shall maintain a public register of the documents referred to in paragraphs
10, 11 and 12.
Article 1127: Notice
A disputing Party shall deliver to the other Parties:
(a) written notice of a claim that has been submitted to arbitration no later than 30 days after
the date that the claim is submitted; and
(b) copies of all pleadings filed in the arbitration.
Article 1128: Participation by a Party
On written notice to the disputing parties, a Party may make submissions to a Tribunal on a
question of interpretation of this Agreement.
Article 1129: Documents
1. A Party shall be entitled to receive from the disputing Party, at the cost of the requesting
Party a copy of:
(a) the evidence that has been tendered to the Tribunal; and
(b) the written argument of the disputing parties.

2. A Party receiving information pursuant to paragraph 1 shall treat the information as if it were
a disputing Party.
Article 1130: Place of Arbitration
Unless the disputing parties agree otherwise, a Tribunal shall hold an arbitration in the territory
of a Party that is a party to the New York Convention, selected in accordance with:
(a) the ICSID Additional Facility Rules if the arbitration is under those Rules or the ICSID
Convention; or
(b) the UNCITRAL Arbitration Rules if the arbitration is under those Rules.
Article 1131: Governing Law
1. A Tribunal established under this Section shall decide the issues in dispute in accordance with
this Agreement and applicable rules of international law.
2. An interpretation by the Commission of a provision of this Agreement shall be binding on a

Tribunal established under this Section.
Article 1132: Interpretation of Annexes
1. Where a disputing Party asserts as a defense that the measure alleged to be a breach is
within the scope of a reservation or exception set out in Annex I, Annex II, Annex III or Annex IV,
on request of the disputing Party, the Tribunal shall request the interpretation of the
Commission on the issue. The Commission, within 60 days of delivery of the request, shall
submit in writing its interpretation to the Tribunal.
2. Further to Article 1131(2), a Commission interpretation submitted under paragraph 1 shall

be binding on the Tribunal. If the Commission fails to submit an interpretation within 60 days,
the Tribunal shall decide the issue.
Article 1133: Expert Reports
Without prejudice to the appointment of other kinds of experts where authorized by the
applicable arbitration rules, a Tribunal, at the request of a disputing party or, unless the
disputing parties disapprove, on its own initiative, may appoint one or more experts to report t o
it in writing on any factual issue concerning environmental, health, safety or other scientific
matters raised by a disputing party in a proceeding, subject to such terms and conditions as the
disputing parties may agree.
Article 1134: Interim Measures of Protection
A Tribunal may order an interim measure of protection to preserve the rights of a disputing
party, or to ensure that the Tribunal's jurisdiction is made fully effective, including an order t o
preserve evidence in the possession or control of a disputing party or to protect the Tribunal's
jurisdiction. A Tribunal may not order attachment or enjoin the application of the measure
alleged to constitute a breach referred to in Article 1116 or 1117. For purposes of this
paragraph, an order includes a recommendation.
Article 1135: Final Award
1. Where a Tribunal makes a final award against a Party, the Tribunal may award, separately or
in combination, only:
(a) monetary damages and any applicable interest;
(b) restitution of property, in which case the award shall provide that the disputing Party may
pay monetary damages and any applicable interest in lieu of restitution.
A tribunal may also award costs in accordance with the applicable arbitration rules.
2. Subject to paragraph 1, where a claim is made under Article 1117(1):
(a) an award of restitution of property shall provide that restitution be made to the enterprise;
(b) an award of monetary damages and any applicable interest shall provide that the sum be
paid to the enterprise; and
(c) the award shall provide that it is made without prejudice to any right that any person may
have in the relief under applicable domestic law.
3. A Tribunal may not order a Party to pay punitive damages.
Article 1136: Finality and Enforcement of an Award
1. An award made by a Tribunal shall have no binding force except between the disputing
parties and in respect of the particular case.
2. Subject to paragraph 3 and the applicable review procedure for an interim award, a disputing
party shall abide by and comply with an award without delay.
3. A disputing party may not seek enforcement of a final award until:
(a) in the case of a final award made under the ICSID Convention
(i) 120 days have elapsed from the date the award was rendered and no disputing party has
requested revision or annulment of the award, or
(ii) revision or annulment proceedings have been completed; and
(b) in the case of a final award under the ICSID Additional Facility Rules or the UNCITRAL
Arbitration Rules
(i) three months have elapsed from the date the award was rendered and no disputing party has
commenced a proceeding to revise, set aside or annul the award, or
(ii) a court has dismissed or allowed an application to revise, set aside or annul the award and
there is no further appeal.
4. Each Party shall provide for the enforcement of an award in its territory.
5. If a disputing Party fails to abide by or comply with a final award, the Commission, on delivery
of a request by a Party whose investor was a party to the arbitration, shall establish a panel
under Article 2008 (Request for an Arbitral Panel). The requesting Party may seek in such
proceedings:
(a) a determination that the failure to abide by or comply with the final award is inconsistent
with the obligations of this Agreement; and
(b) a recommendation that the Party abide by or comply with the final award.
6. A disputing investor may seek enforcement of an arbitration award under the ICSID
Convention, the New York Convention or the InterAmerican Convention regardless of whether
proceedings have been taken under paragraph 5.
7. A claim that is submitted to arbitration under this Section shall be considered to arise out o f
a commercial relationship or transaction for purposes of Article I of the New York Convention
and Article I of the InterAmerican Convention.
Article 1137: General
Time when a Claim is Submitted to Arbitration
1. A claim is submitted to arbitration under this Section when:
(a) the request for arbitration under paragraph (1) of Article 36 of the ICSID Convention has
been received by the Secretary-General;
(b) the notice of arbitration under Article 2 of Schedule C of the ICSID Additional Facility Rules
has been received by the Secretary-General; or
(c) the notice of arbitration given under the UNCITRAL Arbitration Rules is received by the
disputing Party.
Service of Documents
2. Delivery of notice and other documents on a Party shall be made to the place named for that
Party in Annex 1137.2.
Receipts under Insurance or Guarantee Contracts

3. In an arbitration under this Section, a Party shall not assert, as a defense, counterclaim, right
of setoff or otherwise, that the disputing investor has received or will receive, pursuant to an
insurance or guarantee contract, indemnification or other compensation for all or part of its
alleged damages.
Publication of an Award
4. Annex 1137.4 applies to the Parties specified in that Annex with respect to publication of an
award.
Article 1138: Exclusions
1. Without prejudice to the applicability or non-applicability of the dispute settlement provisions

of this Section or of Chapter Twenty (Institutional Arrangements and Dispute Settlement
Procedures) to other actions taken by a Party pursuant to Article 2102 (National Security), a
decision by a Party to prohibit or restrict the acquisition o f an investment in its territory by an
investor of another Party, or its investment, pursuant to that Article shall not be subject t o
such provisions.
2. The dispute settlement provisions of this Section and of Chapter Twenty shall not apply t o
the matters referred to in Annex 1138.2.
Section C - Definitions
disputing investor means an investor that makes a claim under Section B;
disputing parties means the disputing investor and the disputing Party;
disputing party means the disputing investor or the disputing Party;
disputing Party means a Party against which a claim is made under Section B;
enterprise means an "enterprise" as defined in Article 201 (Definitions of General Application),

and a branch of an enterprise;
enterprise of a Party means an enterprise constituted or organized under the law of a Party, and
a branch located in the territory of a Party and carrying out business activities there.
equity or debt securities includes voting and non-voting shares, bonds, convertible debentures,
stock options and warrants;
G7 Currency means the currency of Canada, France, Germany, Italy, Japan, the United Kingdom
of Great Britain and Northern Ireland or the United States;
ICSID means the International Centre for Settlement of Investment Disputes;
ICSID Convention means the Convention on the Settlement of Investment Disputes between
States and Nationals of other States , done at Washington, March 18, 1965;
InterAmerican Convention means the InterAmerican Convention on International Commercial

Arbitration, done at Panama, January 30, 1975;
investment means:
(a) an enterprise;
(b) an equity security of an enterprise;
(c) a debt security of an enterprise
(i) where the enterprise is an affiliate of the investor, or
(ii) where the original maturity of the debt security is at least three years,
but does not include a debt security, regardless of original maturity, of a state enterprise;
(d) a loan to an enterprise
(i) where the enterprise is an affiliate of the investor, or
(ii) where the original maturity of the loan is at least three years,
but does not include a loan, regardless of original maturity, to a state enterprise;
(e) an interest in an enterprise that entitles the owner to share in income or profits of the
enterprise;
(f) an interest in an enterprise that entitles the owner to share in the assets of that enterprise
on dissolution, other than a debt security or a loan excluded from subparagraph (c) or (d);
(g) real estate or other property, tangible or intangible, acquired in the expectation or used for
the purpose of economic benefit or other business purposes; and
(h) interests arising from the commitment of capital or other resources in the territory of a
Party to economic activity in such territory, such as under
(i) contracts involving the presence of an investor's property in the territory of the Party,
including turnkey or construction contracts, or concessions, or
(ii) contracts where remuneration depends substantially on the production, revenues or profits
of an enterprise;
but investment does not mean,
(i) claims to money that arise solely from
(i) commercial contracts for the sale of goods or services by a national or enterprise in the
territory of a Party to an enterprise in the territory of another Party, or
(ii) the extension of credit in connection with a commercial transaction, such as trade financing,
other than a loan covered by subparagraph (d); or
(j) any other claims to money,
that do not involve the kinds of interests set out in subparagraphs (a) through (h);
investment of an investor of a Party means an investment owned or controlled directly or

indirectly by an investor of such Party;
investor of a Party means a Party or state enterprise thereof, or a national or an enterprise o f

such Party, that seeks to make, is making or has made an investment;
investor of a non-Party means an investor other than an investor of a Party, that seeks t o
make, is making or has made an investment;
New York Convention means the United Nations Convention on the Recognition and
Enforcement of Foreign Arbitral Awards, done at New York, June 10, 1958;
Secretary-General means the Secretary-General of ICSID;
transfers means transfers and international payments;
Tribunal means an arbitration tribunal established under Article 1120 or 1126; and
UNCITRAL Arbitration Rules means the arbitration rules of the United Nations Commission on
International Trade Law, approved by the United Nations General Assembly on December 15,
1976.
Annex 1120.1
Submission of a Claim to Arbitration
Mexico
With respect to the submission of a claim to arbitration:
(a) an investor of another Party may not allege that Mexico has breached an obligation under:
(i) Section A or Article 1503(2) (State Enterprises), or

(ii) Article 1502(3)(a) (Monopolies and State Enterprises) where the monopoly has acted in a
both in an arbitration under this Section and in proceedings before a Mexican court or
administrative tribunal; and
(b) where an enterprise of Mexico that is a juridical person that an investor of another Party
owns or controls directly or indirectly alleges in proceedings before a Mexican court or
administrative tribunal that Mexico has breached an obligation under:
(i) Section A or Article 1503(2) (State Enterprises), or
(ii) Article 1502(3)(a) (Monopolies and State Enterprises) where the monopoly has acted in a
the investor may not allege the breach in an arbitration under this Section.
Annex 1137.2
Service of Documents on a Party Under Section B
Each Party shall set out in this Annex and publish in its official journal by January 1, 1994, the
place for delivery of notice and other documents under this Section.
Annex 1137.4
Publication of an Award
Canada
Where Canada is the disputing Party, either Canada or a disputing investor that is a party to the
arbitration may make an award public.
Mexico
Where Mexico is the disputing Party, the applicable arbitration rules apply to the publication o f
an award.
United States
Where the United States is the disputing Party, either the United States or a disputing investor
that is a party to the arbitration may make an award public.
Annex 1138.2
Exclusions from Dispute Settlement

Canada
A decision by Canada following a review under the Investment Canada Act , with respect t o
whether or not to permit an acquisition that is subject to review, shall not be subject to the
dispute settlement provisions of Section B or of Chapter Twenty (Institutional Arrangements
and Dispute Settlement Procedures).
Mexico
A decision by the National Commission on Foreign Investment ("Comisión Nacional de

Inversiones Extranjeras") following a review pursuant to Annex I, page IM4, with respect t o
whether or not to permit an acquisition that is subject to review, shall not be subject to the
dispute settlement provisions of Section B or of Chapter Twenty (Institutional Arrangements
and Dispute Settlement Procedures).
Chapter Twelve: Cross-Border Trade in Services
1. This Chapter applies to measures adopted or maintained by a Party relating to cross-border

trade in services by service providers of another Party, including measures respecting:
(a) the production, distribution, marketing, sale and delivery of a service;
(b) the purchase or use of, or payment for, a service;
(c) the access to and use of distribution and transportation systems in connection with the
provision of a service;
(d) the presence in its territory of a service provider of another Party; and
(e) the provision of a bond or other form of financial security as a condition for the provision o f
a service.
2. This Chapter does not apply to:
(a) financial services, as defined in Chapter Fourteen (Financial Services);
(b) air services, including domestic and international air transportation services, whether
scheduled or non-scheduled, and related services in support of air services, other than
(i) aircraft repair and maintenance services during which an aircraft is withdrawn from service,
and
(ii) specialty air services;
(c) procurement by a Party or a state enterprise; or

(d) subsidies or grants provided by a Party or a state enterprise, including government-
supported loans, guarantees and insurance.
3. Nothing in this Chapter shall be construed to:
(a) impose any obligation on a Party with respect to a national of another Party seeking access
to its employment market, or employed on a permanent basis in its territory, or to confer any
right on that national with respect to that access or employment; or
(b) prevent a Party from providing a service or performing a function such as law enforcement,
correctional services, income security or insurance, social security or insurance, social welfare,
public education, public training, health, and child care, in a manner that is not inconsistent with
this Chapter.
1. Each Party shall accord to service providers of another Party treatment no less favorable
than that it accords, in like circumstances, to its own service providers.
2. The treatment accorded by a Party under paragraph 1 means, with respect to a state or
province, treatment no less favorable than the most favorable treatment accorded, in like
circumstances, by that state or province to service providers of the Party of which it forms a
part.
Each Party shall accord to service providers of another Party treatment no less favorable than
that it accords, in like circumstances, to service providers of any other Party or of a non-Party.
Article 1204: Standard of Treatment
Each Party shall accord to service providers of any other Party the better of the treatment
required by Articles 1202 and 1203.
Article 1205: Local Presence
No Party may require a service provider of another Party to establish or maintain a

representative office or any form of enterprise, or to be resident, in its territory as a condition
for the cross-border provision of a service.
Article 1206: Reservations
1. Articles 1202, 1203 and 1205 do not apply to:
(i) a Party at the federal level, as set out in its Schedule to Annex I,
(ii) a state or province, for two years after the date of entry into force of this Agreement, and
thereafter as set out by a Party in its Schedule to Annex I in accordance with paragraph 2, or


immediately before the amendment, with Articles 1202, 1203 and 1205.
2. Each Party may set out in its Schedule to Annex I, within two years of the date of entry into
force of this Agreement, any existing non-conforming measure maintained by a state or
province, not including a local government.
3. Articles 1202, 1203 and 1205 do not apply to any measure that a Party adopts or maintains
with respect to sectors, subsectors or activities, as set out in its Schedule to Annex II.
Article 1207: Quantitative Restrictions
1. Each Party shall set out in its Schedule to Annex V any quantitative restriction that i t
maintains at the federal level.
2. Within one year of the date of entry into force of this Agreement, each Party shall set out in
its Schedule to Annex V any quantitative restriction maintained by a state or province, not
including a local government.
3. Each Party shall notify the other Parties of any quantitative restriction that it adopts, other
than at the local government level, after the date of entry into force of this Agreement and
shall set out the restriction in its Schedule to Annex V.
4. The Parties shall periodically, but in any event at least every two years, endeavor t o
negotiate the liberalization or removal of the quantitative restrictions set out in Annex V
pursuant to paragraphs 1 through 3.
Article 1208: Liberalization of Non-Discriminatory Measures
Each Party shall set out in its Schedule to Annex VI its commitments to liberalize quantitative
restrictions, licensing requirements, performance requirements or other non-discriminatory
measures.
Article 1209: Procedures
The Commission shall establish procedures for:
(a) a Party to notify and include in its relevant Schedule

(i) state or provincial measures in accordance with Article 1206(2),
(ii) quantitative restrictions in accordance with Article 1207(2) and (3),
(iii) commitments pursuant to Article 1208, and
(iv) amendments of measures referred to in Article 1206(1)(c); and
(b) consultations on reservations, quantitative restrictions or commitments with a view t o

further liberalization.
Article 1210: Licensing and Certification
1. With a view to ensuring that any measure adopted or maintained by a Party relating to the
licensing or certification of nationals of another Party does not constitute an unnecessary
barrier to trade, each Party shall endeavor to ensure that any such measure:
(a) is based on objective and transparent criteria, such as competence and the ability to provide
a service;
(b) is not more burdensome than necessary to ensure the quality of a service; and
(c) does not constitute a disguised restriction on the cross-border provision o f a service.
2. Where a Party recognizes, unilaterally or by agreement, education, experience, licenses or

certifications obtained in the territory of another Party or of a non-Party:
(a) nothing in Article 1203 shall be construed to require the Party to accord such recognition t o
education, experience, licenses or certifications obtained in the territory of another Party; and
(b) the Party shall afford another Party an adequate opportunity to demonstrate that
education, experience, licenses or certifications obtained in that other Party's territory should
also be recognized or to conclude an agreement or arrangement of comparable effect.
3. Each Party shall, within two years of the date of entry into force of this Agreement, eliminate
any citizenship or permanent residency requirement set out in its Schedule to Annex I that i t
maintains for the licensing or certification of professional service providers of another Party.
Where a Party does not comply with this obligation with respect to a particular sector, any
other Party may, in the same sector and for such period as the noncomplying Party maintains its
requirement, solely have recourse to maintaining an equivalent requirement set out in its
Schedule to Annex I or reinstating:
(a) any such requirement at the federal level that it eliminated pursuant to this Article; or
(b) on notification to the non-complying Party, any such requirement at the state or provincial
level existing on the date of entry into force of this Agreement.
4. The Parties shall consult periodically with a view to determining the feasibility of removing
any remaining citizenship or permanent residency requirement for the licensing or certification
of each other's service providers.
5. Annex 1210.5 applies to measures adopted or maintained by a Party relating to the licensing
or certification of professional service providers.
1. A Party may deny the benefits of this Chapter to a service provider of another Party where
the Party establishes that:
(a) the service is being provided by an enterprise owned or controlled by nationals of a non-
Party, and
(i) the denying Party does not maintain diplomatic relations with the non-Party, or
(ii) the denying Party adopts or maintains measures with respect to the non-Party that prohibit
transactions with the enterprise or that would be violated or circumvented if the benefits of this
Chapter were accorded to the enterprise; or
(b) the cross-border provision of a transportation service covered by this Chapter is provided
using equipment not registered by any Party.
and Provision of Information) and 2006 (Consultations), a Party may deny the benefits o f this
Chapter to a service provider of another Party where the Party establishes that the service is
being provided by an enterprise that is owned or controlled by persons of a non-Party and that
has no substantial business activities in the territory of any Party.
Article 1212: Sectoral Annex
Annex 1212 applies to specific sectors.
1. For purposes of this Chapter, a reference to a federal, state or provincial government

includes any non-governmental body in the exercise o f any regulatory, administrative or other
governmental authority delegated to it by that government.
cross-border provision of a service or cross-border trade in services means the provision of a

service:
(a) from the territory of a Party into the territory of another Party,
(b) in the territory of a Party by a person of that Party to a person of another Party, or
(c) by a national of a Party in the territory of another Party,
but does not include the provision o f a service in the territory of a Party by an investment, as
defined in Article 1139 (Investment Definitions), in that territory;
enterprise means an "enterprise" as defined in Article 201 (Definitions of General Application),

and a branch of an enterprise;
enterprise of a Party means an enterprise constituted or organized under the law of a Party, and
a branch located in the territory of a Party and carrying out business activities there;
professional services means services, the provision of which requires specialized post-secondary
education, or equivalent training or experience, and for which the right to practice is granted or
restricted by a Party, but does not include services provided by tradespersons or vessel and
aircraft crew members;
quantitative restriction means a non-discriminatory measure that imposes limitations on:
(a) the number of service providers, whether in the form of a quota, a monopoly or an economic
needs test, or by any other quantitative means; or
(b) the operations of any service provider, whether in the form of a quota or an economic needs
test, or by any other quantitative means;
service provider of a Party means a person of a Party that seeks to provide or provides a
service; and
specialty air services means aerial mapping, aerial surveying, aerial photography, forest fire
management, fire fighting, aerial advertising, glider towing, parachute jumping, aerial
construction, helilogging, aerial sightseeing, flight training, aerial inspection and surveillance, and
aerial spraying services.
Annex 1210.5
Section A General Provisions
Processing of Applications for Licenses and Certifications
1. Each Party shall ensure that its competent authorities, within a reasonable time after the
submission by a national of another Party of an application for a license or certification:
(a) where the application is complete, make a determination on the application and inform the
applicant of that determination; or
(b) where the application is not complete, inform the applicant without undue delay of the
status of the application and the additional information that is required under the Party's law.
Development of Professional Standards
2. The Parties shall encourage the relevant bodies in their respective territories to develop
mutually acceptable standards and criteria for licensing and certification of professional service
providers and to provide recommendations on mutual recognition to the Commission.
3. The standards and criteria referred to in paragraph 2 may be developed with regard to the
following matters:
(a) education - accreditation of schools or academic programs;
(b) examinations - qualifying examinations for licensing, including alternative methods o f

assessment such as oral examinations and interviews;
(c) experience length and nature of experience required for licensing;
(d) conduct and ethics - standards of professional conduct and the nature of disciplinary action
for non-conformity with those standards;
(e) professional development and re-certification - continuing education and ongoing

requirements to maintain professional certification;
(f) scope of practice - extent of, or limitations on, permissible activities;
(g) local knowledge - requirements for knowledge o f such matters as local laws, regulations,
language, geography or climate; and
(h) consumer protection - alternatives to residency requirements, including bonding,

professional liability insurance and client restitution funds, to provide for the protection o f
consumers.
4. On receipt of a recommendation referred to in paragraph 2, the Commission shall review the

recommendation within a reasonable time to determine whether it is consistent with this
Agreement. Based on the Commission's review, each Party shall encourage its respective
competent authorities, where appropriate, to implement the recommendation within a mutually
agreed time.
Temporary Licensing
5. Where the Parties agree, each Party shall encourage the relevant bodies in its territory t o
develop procedures for the temporary licensing of professional service providers of another
Party.
Review
6. The Commission shall periodically, and at least once every three years, review the
implementation of this Section.
Section B Foreign Legal Consultants
1. Each Party shall, in implementing its obligations and commitments regarding foreign legal
consultants as set out in its relevant Schedules and subject to any reservations therein, ensure
that a national of another Party is permitted to practice or advise on the law of any country in
which that national is authorized to practice as a lawyer.
Consultations With Professional Bodies
2. Each Party shall consult with its relevant professional bodies to obtain their recommendations
on:
(a) the form of association or partnership between lawyers authorized to practice in its territory
and foreign legal consultants;
(b) the development of standards and criteria for the authorization of foreign legal consultants
in conformity with Article 1210; and
(c) other matters relating to the provision of foreign legal consultancy services.
3. Prior to initiation of consultations under paragraph 7, each Party shall encourage its relevant
professional bodies to consult with the relevant professional bodies designated by each of the
other Parties regarding the development of joint recommendations on the matters referred to in
paragraph 2.
Future Liberalization
4. Each Party shall establish a work program to develop common procedures throughout its
territory for the authorization of foreign legal consultants.
5. Each Party shall promptly review any recommendation referred to in paragraphs 2 and 3 to
ensure its consistency with this Agreement. If the recommendation is consistent with this
Agreement, each Party shall encourage its competent authorities to implement the
recommendation within one year.
6. Each Party shall report to the Commission within one year of the date of entry into force o f
this Agreement, and each year thereafter, on its progress in implementing the work program
referred to in paragraph 4.
7. The Parties shall meet within one year of the date of entry into force of this Agreement with
a view to:
(a) assessing the implementation of paragraphs 2 through 5;

(b) amending or removing, where appropriate, reservations on foreign legal consultancy
services; and
(c) assessing further work that may be appropriate regarding foreign legal consultancy services.
Section C Temporary Licensing of Engineers
1. The Parties shall meet within one year of the date of entry into force of this Agreement t o
establish a work program to be undertaken by each Party, in conjunction with its relevant
professional bodies, to provide for the temporary licensing in its territory of nationals of another
Party who are licensed as engineers in the territory of that other Party.
2. To this end, each Party shall consult with its relevant professional bodies to obtain their
recommendations on:
(a) the development of procedures for the temporary licensing of such engineers to permit
them to practice their engineering specialties in each jurisdiction in its territory;
(b) the development of model procedures for adoption by the competent authorities
throughout its territory to facilitate the temporary licensing of such engineers;
(c) the engineering specialties to which priority should be given in developing temporary
licensing procedures; and
(d) other matters relating to the temporary licensing of engineers identified by the Party in such
consultations.
3. Each Party shall request its relevant professional bodies to make recommendations on the
matters referred to in paragraph 2 within two years of the date of entry into force of this
Agreement.
4. Each Party shall encourage its relevant professional bodies to meet at the earliest
opportunity with the relevant professional bodies of the other Parties with a view t o
cooperating in the development of joint recommendations on the matters referred to in
paragraph 2 within two years of the date of entry into force of this Agreement. Each Party shall
request an annual report from its relevant professional bodies on the progress achieved in
developing those recommendations.
5. The Parties shall promptly review any recommendation referred to in paragraphs 3 or 4 to

ensure its consistency with this Agreement. If the recommendation is consistent with this
Agreement, each Party shall encourage its competent authorities to implement the
recommendation within one year.
6. The Commission shall review the implementation of this Section within two years of the date
of entry into force of this Section.
7. Appendix 1210.5C applies to the Parties specified therein.

Appendix 1210.5-C
Civil Engineers
The rights and obligations of Section C of Annex 1210.5 apply to Mexico with respect to civil
engineers ("ingenieros civiles") and to such other engineering specialties that Mexico may
designate.
Annex 1 2 1 2
Land Transportation
Contact Points
1. Further to Article 1801 (Contact Points), each Party shall designate by January 1, 1 9 9 4
contact points to provide information published by that Party relating to land transportation
services regarding operating authority, safety requirements, taxation, data, studies and
technology, and to provide assistance in contacting its relevant government agencies.
Review Process
2. The Commission shall, during the fifth year after the date of entry into force of this
Agreement and during every second year thereafter until the liberalization for bus and truck
transportation set out in the Parties' Schedules to Annex I is complete, receive and consider a
report from the Parties that assesses progress respecting liberalization, including:
(a) the effectiveness of the liberalization;
(b) specific problems for, or unanticipated effects on, each Party's bus and truck transportation
industries arising from liberalization; and
(c) modifications to the period for liberalization.
The Commission shall endeavor to resolve any matter arising from its consideration of a report.
3. The Parties shall consult, no later than seven years after the date of entry into force of this
Agreement, to consider further liberalization commitments.
------------------------------------------------------------------------
Chapter Thirteen: Telecommunications
1. This Chapter applies to:
(a) measures adopted or maintained by a Party relating to access to and use of public
telecommunications transport networks or services by persons of another Party, including
access and use by such persons operating private networks;
(b) measures adopted or maintained by a Party relating to the provision of enhanced or value-
added services by persons of another Party in the territory, or across the borders, of a Party;
and
(c) standards-related measures relating to attachment of terminal or other equipment to public

telecommunications transport networks.
2. Except to ensure that persons operating broadcast stations and cable systems have
continued access to and use of public telecommunications transport networks and services, this
Chapter does not apply to any measure adopted or maintained by a Party relating to cable or
broadcast distribution of radio or television programming.
3. Nothing in this Chapter shall be construed to:
(a) require a Party to authorize a person of another Party to establish, construct, acquire, lease,
operate or provide telecommunications transport networks or telecommunications transport
services;
(b) require a Party, or require a Party to compel any person, to establish, construct, acquire,
lease, operate or provide telecommunications transport networks or telecommunications
transport services not offered to the public generally;
(c) prevent a Party from prohibiting persons operating private networks from using their
networks to provide public telecommunications transport networks or services to third persons;
or
(d) require a Party to compel any person engaged in the cable or broadcast distribution of radio
or television programming to make available i ts cable or broadcast facilities as a public
telecommunications transport network.
Article 1302: Access to and Use of Public Telecommunications Transport Networks and Services
1. Each Party shall ensure that persons of another Party have access to and use of any public
telecommunications transport network or service, including private leased circuits, offered in its
territory or across its borders for the conduct of their business, on reasonable and non-
discriminatory terms and conditions, including as set out in paragraphs 2 through 8.
2. Subject to paragraphs 6 and 7, each Party shall ensure that such persons are permitted to:
(a) purchase or lease, and attach terminal or other equipment that interfaces with the public
telecommunications transport network;
(b) interconnect private leased or owned circuits with public telecommunications transport
networks in the territory, or across the borders, of that Party, including for use in providing dial-
up access to and from their customers or users, or with circuits leased or owned by another
person on terms and conditions mutually agreed by those persons;
(c) perform switching, signalling and processing functions; and
(d) use operating protocols of their choice.
3. Each Party shall ensure that:
(a) the pricing of public telecommunications transport services reflects economic costs directly
related to providing the services; and
(b) private leased circuits are available on a flat-rate pricing basis.
Nothing in this paragraph shall be construed to prevent cross-subsidization between public

telecommunications transport services.
4. Each Party shall ensure that persons of another Party may use public telecommunications
transport networks or services for the movement of information in its territory or across its
borders, including for intracorporate communications, and for access to information contained in
data bases or otherwise stored in machine-readable form in the territory of any Party.
5. Further to Article 2101 (General Exceptions), nothing in this Chapter shall be construed t o
prevent a Party from adopting or enforcing any measure necessary to:
(a) ensure the security and confidentiality of messages; or
(b) protect the privacy of subscribers to public telecommunications transport networks or

services.
6. Each Party shall ensure that no condition is imposed on access to and use of public
telecommunications transport networks or services, other than that necessary to:
(a) safeguard the public service responsibilities of providers of public telecommunications

transport networks or services, in particular their ability to make their networks or services
available to the public generally; or
(b) protect the technical integrity of public telecommunications transport networks or services.
7. Provided that conditions for access to and use of public telecommunications transport
networks or services satisfy the criteria set out in paragraph 6, such conditions may include:
(a) a restriction on resale or shared use of such services;
(b) a requirement to use specified technical interfaces, including interface protocols, for
interconnection with such networks or services;
(c) a restriction on interconnection of private leased or owned circuits with such networks or
services or with circuits leased or owned by another person, where the circuits are used in the
provision of public telecommunications transport networks or services; and
(d) a licensing, permit, registration or notification procedure which, if adopted or maintained, is

transparent and applications filed thereunder are processed expeditiously.
8. For purposes of this Article, "non-discriminatory" means on terms and conditions no less
favorable than those accorded to any other customer or user of like public telecommunications
transport networks or services in like circumstances.
Article 1303: Conditions for the Provision of Enhanced or Value-Added Services
1. Each Party shall ensure that:
(a) any licensing, permit, registration or notification procedure that it adopts or maintains
relating to the provision of enhanced or value-added services is transparent and non-
discriminatory, and that applications filed thereunder are processed expeditiously; and
(b) information required under such procedures is limited to that necessary to demonstrate that
the applicant has the financial solvency to begin providing services or to assess conformity o f
the applicant's terminal or other equipment with the Party's applicable standards or technical
regulations.
2. No Party may require a person providing enhanced or value-added services to:
(a) provide those services to the public generally;
(b) cost-justify its rates;
(c) file a tariff;
(d) interconnect its networks with any particular customer or network; or
(e) conform with any particular standard or technical regulation for interconnection other than
for interconnection to a public telecommunications transport network.
3. Notwithstanding paragraph 2(c), a Party may require the filing of a tariff by:
(a) such provider to remedy a practice of that provider that the Party has found in a particular
case to be anticompetitive under its law; or
(b) a monopoly to which Article 1305 applies.
Article 1304: Standards-Related Measures
1. Further to Article 904(4) (Unnecessary Obstacles), each Party shall ensure that its
standards-related measures relating to the attachment of terminal or other equipment to the
public telecommunications transport networks, including those measures relating to the use o f
testing and measuring equipment f or conformity assessment procedures, are adopted or
maintained only to the extent necessary to:
(a) prevent technical damage to public telecommunications transport networks;
(b) prevent technical interference with, or degradation of, public telecommunications transport
services;
(c) prevent electromagnetic interference, and ensure compatibility, with other uses of the
electromagnetic spectrum;
(d) prevent billing equipment malfunction; or
(e) ensure users' safety and access to public telecommunications transport networks or
services.
2. A Party may require approval for the attachment to the public telecommunications transport
network of terminal or other equipment that is not authorized, provided that the criteria for
that approval are consistent with paragraph 1.
3. Each Party shall ensure that the network termination points for its public telecommunications
transport networks are defined on a reasonable and transparent basis.
4. No Party may require separate authorization for equipment that is connected on the
customer's side of authorized equipment that serves as a protective device fulfilling the criteria
of paragraph 1.
5. Further to Article 904(3) (Non-Discriminatory Treatment), each Party shall:
(a) ensure that its conformity assessment procedures are transparent and non-discriminatory
and that applications filed thereunder are processed expeditiously;
(b) permit any technically qualified entity to perform the testing required under the Party's
conformity assessment procedures for terminal or other equipment to be attached to the public
telecommunications transport network, subject to the Party's right to review the accuracy and
completeness of the test results; and
(c) ensure that any measure that it adopts or maintains requiring persons to be authorized t o
act as agents for suppliers of telecommunications equipment before the Party's relevant
conformity assessment bodies is non-discriminatory.
6. No later than one year after the date of entry into force of this Agreement, each Party shall
adopt, as part of its conformity assessment procedures, provisions necessary to accept the
test results from laboratories or testing facilities in the territory of another Party for tests
performed in accordance with the accepting Party's standards-related measures and
procedures.
7. The Telecommunications Standards Subcommittee established under Article 9 1 3 ( 5 )
(Committee on Standards-Related Measures) shall perform the functions set out in Annex
913.5.a2.
Article 1305: Monopolies
1. Where a Party maintains or designates a monopoly to provide public telecommunications

transport networks or services, and the monopoly, directly or through an affiliate, competes in
the provision of enhanced or value-added services or other telecommunications-related services
or telecommunications-related goods, the Party shall ensure that the monopoly does not use its
monopoly position to engage in anticompetitive conduct in those markets, either directly or
through its dealings with its affiliates, in such a manner as to affect adversely a person o f
another Party. Such conduct may include cross-subsidization, predatory conduct and the
discriminatory provision of access to public telecommunications transport networks or services.
2. To prevent such anticompetitive conduct, each Party shall adopt or maintain effective
measures, such as:
(a) accounting requirements;
(b) requirements for structural separation;
(c) rules to ensure that the monopoly accords its competitors access to and use of its public
telecommunications transport networks or services on terms and conditions no less favorable
than those it accords to itself or its affiliates; or
(d) rules to ensure the timely disclosure of technical changes to public telecommunications
transport networks and their interfaces.
Article 1306: Transparency
Further to Article 1802 (Publication), each Party shall make publicly available its measures
relating to access to and use of public telecommunications transport networks or services,
including measures relating to:
(a) tariffs and other terms and conditions of service;
(b) specifications of technical interfaces with the networks or services;
(c) information on bodies responsible for the preparation and adoption of standards-related
measures affecting such access and use;
(d) conditions applying to attachment of terminal or other equipment to the networks; and
(e) notification, permit, registration or licensing requirements.

In the event of any inconsistency between this Chapter and another Chapter, this Chapter shall
prevail to the extent of the inconsistency.
Article 1308: Relation to International Organizations and Agreements
The Parties recognize the importance of international standards for global compatibility and
interoperability of telecommunication networks or services and undertake to promote those
standards through the work of relevant international bodies, including the International
Telecommunication Union and the International Organization for Standardization.
Article 1309: Technical Cooperation and Other Consultations
1. To encourage the development of interoperable telecommunications transport services

infrastructure, the Parties shall cooperate in the exchange of technical information, the
development of government-to-government training programs and other related activities. In
implementing this obligation, the Parties shall give special emphasis to existing exchange
programs.
2. The Parties shall consult with a view to determining the feasibility of further liberalizing trade
in all telecommunications services, including public telecommunications transport networks and
services.
authorized equipment means terminal or other equipment that has been approved for
attachment to the public telecommunications transport network in accordance with a Party's
conformity assessment procedures;
conformity assessment procedure means "conformity assessment procedure" as defined in

Article 915 (Standards-Related Measures-Definitions), and includes the procedures referred to in
Annex 1310;
enhanced or value-added services means those telecommunications services employing

computer processing applications that:
(a) act on the format, content, code, protocol or similar aspects of a customer's transmitted
information;
(b) provide a customer with additional, different or restructured information; or
(c) involve customer interaction with stored information;
flat-rate pricing basis means pricing on the basis of a fixed charge per period of time regardless
of the amount of use;
intracorporate communications means telecommunications through which an enterprise
communicates:
(a) internally or with or among its subsidiaries, branches or affiliates, as defined by each Party,
or
(b) on a non-commercial basis with other persons that are fundamental to the economic activity
of the enterprise and that have a continuing contractual relationship with it,
but does not include telecommunications services provided to persons other than those
described herein;
network termination point means the final demarcation of the public telecommunications
transport network at the customer's premises;
private network means a telecommunications transport network that is used exclusively for
intracorporate communications;
protocol means a set of rules and formats that govern the exchange of information between
two peer entities for purposes of transferring signaling or data information;
public telecommunications transport network means public telecommunications infrastructure

that permits telecommunications between defined network termination points;
public telecommunications transport networks or services means public telecommunications

transport networks or public telecommunications transport services;
public telecommunications transport service means any telecommunications transport service

required by a Party, explicitly or in effect, to be offered to the public generally, including
telegraph, telephone, telex and data transmission, that typically involves the real-time
transmission of customer-supplied information between two or more points without any end-to-
end change in the form or content of the customer's information;
standards-related measure means a "standards-related measure" as defined in Article 915;
telecommunications means the transmission and reception of signals by any electromagnetic

means; and
terminal equipment means any digital or analog device capable of processing, receiving,
switching, signaling or transmitting signals by electromagnetic means and that is connected by
radio or wire to a public telecommunications transport network at a termination point.
Annex 1 3 1 0
Conformity Assessment Procedures
For Canada:
Department of Communications, Terminal Attachment Program
Certification Procedures (CP01)
Department of Communications Act , R.S.C. 1985, c. C35
Railway Act , R.S.C. 1985, c. R3
Radiocommunication Act , R.S.C. 1985, c. R2, as amended by S.C. 1989, c. 1 7
Telecommunications Act (Bill C62)
For Mexico:
Secretaría de Comunicaciones y Transportes

Subsecretaría de Comunicaciones y Desarrollo Technológico
Reglamento de Telecomunicaciones, Capítulo X
For the United States:
Part 15 and Part 68 of the Federal Communications Commission's Rules, Title 47 of the Code o f
Federal Regulations
------------------------------------------------------------------------
Chapter Fourteen: Financial Services
1. This Chapter applies to measures adopted or maintained by a Party relating to:
(a) financial institutions of another Party;
(b) investors of another Party, and investments of such investors, in financial institutions in the
Party's territory; and
(c) cross-border trade in financial services.
2. Articles 1109 through 1111, 1113, 1114 and 1211 are hereby incorporated into and made
a part of this Chapter. Articles 1115 through 1138 are hereby incorporated into and made a
part of this Chapter solely for breaches by a Party of Articles 1109 through 1111, 1113 and
1114, as incorporated into this Chapter.
3. Nothing in this Chapter shall be construed to prevent a Party, including its public entities,
from exclusively conducting or providing in its territory:
(a) activities or services forming part of a public retirement plan or statutory system of social
security; or
(b) activities or services for the account or with the guarantee or using the financial resources
of the Party, including its public entities.
4. Annex 1401.4 applies to the Parties specified in that Annex.
Article 1402: Self-Regulatory Organizations
Where a Party requires a financial institution or a cross-border financial service provider o f

another Party to be a member of, participate in, or have access to, a selfregulatory organization
to provide a financial service in or into the territory of that Party, the Party shall ensure
observance of the obligations of this Chapter by such selfregulatory organization.
Article 1403: Establishment of Financial Institutions
1. The Parties recognize the principle that an investor of another Party should be permitted t o
establish a financial institution in the territory of a Party in the juridical form chosen by such
investor.
2. The Parties also recognize the principle that an investor of another Party should be permitted
to participate widely in a Party's market through the ability of such investor to:
(a) provide in that Party's territory a range of financial services through separate financial
institutions as may be required by that Party;
(b) expand geographically in that Party's territory; and
(c) own financial institutions in that Party's territory without being subject to ownership
requirements specific to foreign financial institutions.
3. Subject to Annex 1 403.3, at such time as the United States permits commercial banks o f
another Party located in its territory to expand through subsidiaries or direct branches into
substantially all of the United States market, the Parties shall review and assess market access
provided by each Party in relation to the principles in paragraphs 1 and 2 with a view t o
adopting arrangements permitting investors of another Party to choose the juridical form o f
establishment of commercial banks.
4. Each Party shall permit an investor of another Party that does not own or control a financial
institution in the Party's territory to establish a financial institution in that territory. A Party
may:
(a) require an investor of another Party to incorporate under the Party's law any financial
institution it establishes in the Party's territory; or
(b) impose terms and conditions on establishment that are consistent with Article 1405.
5. For purposes of this Article, "investor of another Party" means an investor of another Party
engaged in the business of providing financial services in the territory of that Party.
Article 1404: Cross-Border Trade
1. No Party may adopt any measure restricting any type of cross-border trade in financial
services by cross-border financial service providers of another Party that the Party permits on
the date of entry into force of this Agreement, except to the extent set out in Section B of the
Party's Schedule to Annex VII.
2. Each Party shall permit persons located in its territory, and its nationals wherever located, t o
purchase financial services from cross-border financial service providers of another Party located
in the territory of that other Party or of another Party. This obligation does not require a Party
to permit such providers to do business or solicit in its territory. Subject to paragraph 1, each
Party may define "doing business" and "solicitation" for purposes of this obligation.
3. Without prejudice to other means of prudential regulation of cross-border trade in financial

services, a Party may require the registration of cross-border financial service providers o f
another Party and of financial instruments.
4. The Parties shall consult on future liberalization of cross-border trade in financial services as
set out in Annex 1404.4.
accords to its own investors, in like circumstances, with respect to the establishment,
acquisition, expansion, management, conduct, operation, and sale or other disposition o f
financial institutions and investments in financial institutions in its territory.
2. Each Party shall accord to financial institutions of another Party and to investments o f
investors of another Party in financial institutions treatment no less favorable than that i t
accords to its own financial institutions and to investments of its own investors in financial
institutions, in like circumstances, with respect to the establishment, acquisition, expansion,
management, conduct, operation, and sale or other disposition of financial institutions and
investments.
3. Subject to Article 1404, where a Party permits the cross-border provision of a financial
service it shall accord to the cross-border financial service providers of another Party treatment
no less favorable than that it accords to its own financial service providers, in like
circumstances, with respect to the provision of such service.
4. The treatment that a Party is required to accord under paragraphs 1, 2 and 3 means, with
respect to a measure of any state or province:
(a) in the case of an investor of another Party with an investment in a financial institution, an
investment of such investor in a financial institution, or a financial institution of such investor,
located in a state or province, treatment no less favorable than the treatment accorded to an
investor of the Party in a financial institution, an investment of such investor in a financial
institution, or a financial institution of such investor, located in that state or province, in like
circumstances; and
(b) in any other case, treatment no less favorable than the most favorable treatment accorded
to an investor of the Party in a financial institution, its financial institution or its investment in a
financial institution, in like circumstances.
For greater certainty, in the case of an investor of another Party with investments in financial
institutions or financial institutions of such investor, located in more than one state or province,
the treatment required under subparagraph (a) means:
(c) treatment of the investor that is no less favorable than the most favorable treatment
accorded to an investor of the Party with an investment located in such states, or provinces in
like circumstances; and
(d) with respect to an investment of the investor in a financial institution or a financial

institution of such investor, located in a state or province, treatment no less favorable than that
accorded to an investment of an investor of the Party, or a financial institution of such investor,
located in that state or province, in like circumstances.
5. A Party's treatment of financial institutions and cross-border financial service providers o f

another Party, whether different or identical to that accorded to its own institutions or
providers in like circumstances, is consistent with paragraphs 1 through 3 if the treatment
affords equal competitive opportunities.
6. A Party's treatment affords equal competitive opportunities i f it does not disadvantage

financial institutions and cross-border financial services providers of another Party in their ability
to provide financial services as compared with the ability of the Party's own financial institutions
and financial services providers to provide such services, in like circumstances.
7. Differences in market share, profitability or size do not in themselves establish a denial o f

equal competitive opportunities, but such differences may be used as evidence regarding
whether a Party's treatment affords equal competitive opportunities.
1. Each Party shall accord to investors of another Party, financial institutions of another Party,
investments of investors in financial institutions and cross-border financial service providers o f
another Party treatment no less favorable than that it accords to the investors, financial
institutions, investments of investors in financial institutions and cross-border financial service
providers of any other Party or of a non-Party, in like circumstances.
2. A Party may recognize prudential measures of another Party or of a non-Party in the

application of measures covered by this Chapter. Such recognition may be:
(a) accorded unilaterally;
(b) achieved through harmonization or other means; or
(c) based upon an agreement or arrangement with the other Party or non-Party.
3. A Party according recognition of prudential measures under paragraph 2 shall provide
adequate opportunity to another Party to demonstrate that circumstances exist in which there
are or would be equivalent regulation, oversight, implementation of regulation, and i f
appropriate, procedures concerning the sharing of information between the Parties.
4. Where a Party accords recognition of prudential measures under paragraph 2(c); and the
circumstances set out in paragraph 3 exist, the Party shall provide adequate opportunity t o
another Party to negotiate accession to the agreement or arrangement, or to negotiate a
comparable agreement or arrangement.
Article 1407: New Financial Services and Data Processing
1. Each Party shall permit a financial institution of another Party to provide any new financial
service of a type similar to those services that the Party permits its own financial institutions, in
like circumstances, to provide under its domestic law. A Party may determine the institutional
and juridical form through which the service may be provided and may require authorization for
the provision of the service. Where such authorization is required, a decision shall be made
within a reasonable time and the authorization may only be refused for prudential reasons.
2. Each Party shall permit a financial institution of another Party to transfer information in
electronic or other form, into and out of the Party's territory, for data processing where such
processing is required in the ordinary course of business of such institution.
Article 1408: Senior Management and Boards of Directors
1. No Party may require financial institutions of another Party to engage individuals of any
particular nationality as senior managerial or other essential personnel.
2. No Party may require that more than a simple majority of the board of directors of a financial
institution of another Party be composed of nationals of the Party, persons residing in the
territory of the Party, or a combination thereof.
Article 1409: Reservations and Specific Commitments
1. Articles 1403 through 1408 do not apply to:
(i) a Party at the federal level, as set out in Section A of its Schedule to Annex VII,
(ii) a state or province, for the period ending on the date specified in Annex 1409.1 for that
state or province, and thereafter as described by the Party in Section A of its Schedule t o
Annex VII in accordance with Annex 1409.1, or


immediately before the amendment, with Articles 1403 through 1408.
2. Articles 1403 through 1408 do not apply to any non-conforming measure that a Party
adopts or maintains in accordance with Section B of its Schedule to Annex VII.
3. Section C of each Party's Schedule to Annex VII sets out certain specific commitments by
that Party.
4. Where a Party has set out a reservation to Article 1102, 1103, 1202 or 1203 in its Schedule
to Annex I, II, III or IV, the reservation shall be deemed to constitute a reservation to Article
1405 or 1406, as the case may be, to the extent that the measure, sector, subsector or
activity set out in the reservation is covered by this Chapter.
1. Nothing in this Part shall be construed to prevent a Party from adopting or maintaining
reasonable measures for prudential reasons, such as:
(a) the protection of investors, depositors, financial market participants, policyholders, policy
claimants, or persons to whom a fiduciary duty is owed by a financial institution or cross-border
financial service provider;
(b) the maintenance of the safety, soundness, integrity or financial responsibility of financial
institutions or cross-border financial service providers; and
(c) ensuring the integrity and stability of a Party's financial system.
2. Nothing in this Part applies to non-discriminatory measures of general application taken by

any public entity in pursuit of monetary and related credit policies or exchange rate policies.
This paragraph shall not affect a Party's obligations under Article 1106 (Investment
Performance Requirements) with respect to measures covered by Chapter Eleven (Investment)
or Article 1109 (Investments Transfers).
3. Article 1405 shall not apply to the granting by a Party to a financial institution of an
exclusive right to provide a financial service referred to in Article 1401(3)(a).
4. Notwithstanding Article 1109(1), (2) and (3), as incorporated into this Chapter, and without
limiting the applicability of Article 1109(4), as incorporated into this Chapter, a Party may
prevent or limit transfers by a financial institution or cross-border financial services provider to,
or for the benefit of, an affiliate of or person related to such institution or provider, through the
equitable, non-discriminatory and good faith application of measures relating to maintenance o f
the safety, soundness, integrity or financial responsibility of financial institutions or cross-border
financial service providers. This paragraph does not prejudice any other provision of this
Agreement that permits a Party to restrict transfers.
Article 1411: Transparency
1. In lieu of Article 1802(2) (Publication), each Party shall, to the extent practicable, provide in
advance to all interested persons any measure of general application that the Party proposes t o
adopt in order to allow an opportunity for such persons to comment on the measure. Such
measure shall be provided:
(a) by means of official publication;
(b) in other written form; or
(c) in such other form as permits an interested person to make informed comments on the
proposed measure.
2. Each Party's regulatory authorities shall make available to interested persons their
requirements for completing applications relating to the provision of financial services.
3. On the request of an applicant, the regulatory authority shall inform the applicant of the
status of its application. If such authority requires additional information from the applicant, i t
shall notify the applicant without undue delay.
4. A regulatory authority shall make an administrative decision on a completed application of an

investor in a financial institution, a financial institution or a cross-border financial service
provider of another Party relating to the provision of a financial service within 120 days, and
shall promptly notify the applicant of the decision. An application shall not be considered
complete until all relevant hearings are held and all necessary information is received. Where it is
not practicable for a decision to be made within 120 days, the regulatory authority shall notify
the applicant without undue delay and shall endeavor to make the decision within a reasonable
time thereafter.
5. Nothing in this Chapter requires a Party to furnish or allow access to:
(a) information related to the financial affairs and accounts of individual customers of financial
institutions or cross-border financial service providers; or
(b) any confidential information, the disclosure of which would impede law enforcement or
otherwise be contrary to the public interest or prejudice legitimate commercial interests o f
6. Each Party shall maintain or establish one or more inquiry points no later than 180 days after
the date of entry into force of this Agreement, to respond in writing as soon as practicable, t o
all reasonable inquiries from interested persons regarding measures of general application
Article 1412: Financial Services Committee

1. The Parties hereby establish the Financial Services Committee. The principal representative o f
each Party shall be an official of the Party's authority responsible for financial services set out in
Annex 1412.1.
2. Subject to Article 2001(2)(d) (Free Trade Commission), the Committee shall:
(a) supervise the implementation of this Chapter and its further elaboration;
(b) consider issues regarding financial services that are referred to it by a Party; and
(c) participate in the dispute settlement procedures in accordance with Article 1415.
3. The Committee shall meet annually to assess the functioning of this Agreement as it applies
to financial services. The Committee shall inform the Commission of the results of each annual
meeting.
Article 1413: Consultations
1. A Party may request consultations with another Party regarding any matter arising under this
Agreement that affects financial services. The other Party shall give sympathetic consideration
to the request. The consulting Parties shall report the results of their consultations to the
Committee at its annual meeting.
2. Consultations under this Article shall include officials of the authorities specified in Annex
1412.1.
3. A Party may request that regulatory authorities of another Party participate in consultations
under this Article regarding that other Party's measures of general application which may affect
the operations of financial institutions or cross-border financial service providers in the
requesting Party's territory.
4. Nothing in this Article shall be construed to require regulatory authorities participating in

consultations under paragraph 3 to disclose information or take any action that would interfere
with individual regulatory, supervisory, administrative or enforcement matters.
5. Where a Party requires information for supervisory purposes concerning a financial institution
in another Party's territory or a cross-border financial service provider in another Party's
territory, the Party may approach the competent regulatory authority in the other Party's
territory to seek the information.
6. Annex 1413.6 shall apply to further consultations and arrangements.
Article 1414: Dispute Settlement
1. Section B of Chapter Twenty (Institutional Arrangements and Dispute Settlement Procedures)

applies as modified by this Article to the settlement of disputes arising under this Chapter.
2. The Parties shall establish by January 1, 1994 and maintain a roster of up to 15 individuals
who are willing and able to serve as financial services panelists. Financial services roster
members shall be appointed by consensus for terms of three years, and may be reappointed.
3. Financial services roster members shall:
(a) have expertise or experience in financial services law or practice, which may include the
regulation of financial institutions;
(b) be chosen strictly on the basis of objectivity, reliability and sound judgment; and
(c) meet the qualifications set out in Article 2009(2)(b) and (c) (Roster).
4. Where a Party claims that a dispute arises under this Chapter, Article 2011 (Panel Selection)
shall apply, except that:
(a) where the disputing Parties so agree, the panel shall be composed entirely of panelists
meeting the qualifications in paragraph 3; and
(b) in any other case,
(i) each disputing Party may select panelists meeting the qualifications set out in paragraph 3 or
in Article 2010(1) (Qualifications of Panelists), and
(ii) if the Party complained against invokes Article 1410, the chair of the panel shall meet the
qualifications set out in paragraph 3.
5. In any dispute where a panel finds a measure to be inconsistent with the obligations of this
Agreement and the measure affects:
(a) only the financial services sector, the complaining Party may suspend benefits only in the
financial services sector;
(b) the financial services sector and any other sector, the complaining Party may suspend
benefits in the financial services sector that have an effect equivalent to the effect of the
measure in the Party's financial services sector; or
(c) only a sector other than the financial services sector, the complaining Party may not
suspend benefits in the financial services sector.
Article 1415: Investment Disputes in Financial Services
1. Where an investor of another Party submits a claim under Article 1116 or 1117 to arbitration
under Section B of Chapter Eleven (Investment Settlement of Disputes between a Party and an
Investor of Another Party) against a Party and the disputing Party invokes Article 1410, on
request of the disputing Party, the Tribunal shall refer the matter in writing to the Committee
for a decision. The Tribunal may not proceed pending receipt of a decision or report under this
Article.
2. In a referral pursuant to paragraph 1, the Committee shall decide the issue of whether and t o
what extent Article 1410 is a valid defense to the claim of the investor. The Committee shall
transmit a copy of its decision to the Tribunal and to the Commission. The decision shall be
binding on the Tribunal.
3. Where the Committee has not decided the issue within 60 days of the receipt of the referral
under paragraph 1, the disputing Party or the Party of the disputing investor may request the
establishment of an arbitral panel under Article 2008 (Request for an Arbitral Panel). The panel
shall be constituted in accordance with Article 1414. Further to Article 2017 (Final Report), the
panel shall transmit its final report to the Committee and to the Tribunal. The report shall be
binding on the Tribunal.
4. Where no request for the establishment of a panel pursuant to paragraph 3 has been made
within 10 days of the expiration of the 60day period referred to in paragraph 3, the Tribunal
may proceed to decide the matter.
cross-border financial service provider of a Party means a person of a Party that is engaged in
the business of providing a financial service within the territory of the Party and that seeks t o
provide or provides financial services through the cross-border provision of such services;
cross-border provision of a financial service or cross-border trade in financial services means the
provision of a financial service:
(a) from the territory of a Party into the territory of another Party,
(b) in the territory of a Party by a person of that Party to a person of another Party, or
(c) by a national of a Party in the territory of another Party,
but does not include the provision of a service in the territory of a Party by an investment in
that territory;
financial institution means any financial intermediary or other enterprise that is authorized to do
business and regulated or supervised as a financial institution under the law of the Party in
whose territory it is located;
financial institution of another Party means a financial institution, including a branch, located in
the territory of a Party that is controlled by persons of another Party;
financial service means a service of a financial nature, including insurance, and a service
incidental or auxiliary to a service of a financial nature;
financial service provider of a Party means a person of a Party that is engaged in the business o f
providing a financial service within the territory of that Party;
investment means "investment" as defined in Article 1139 (Investment Definitions), except

that, with respect to "loans" and "debt securities" referred to in that Article:
(a) a loan to or debt security issued by a financial institution is an investment only where it is
treated as regulatory capital by the Party in whose territory the financial institution is located;
and
(b) a loan granted by or debt security owned by a financial institution, other than a loan to or
debt security of a financial institution referred to in subparagraph (a), is not an investment;
for greater certainty:
(c) a loan to, or debt security issued by, a Party or a state enterprise thereof is not an
investment; and
(d) a loan granted by or debt security owned by a cross-border financial service provider, other
than a loan to or debt security issued by a financial institution, is an investment if such loan or
debt security meets the criteria for investments set out in Article 1139;
investor of a Party means a Party or state enterprise thereof, or a person of that Party, that
seeks to make, makes, or has made an investment;
new financial service means a financial service not provided in the Party's territory that is
provided within the territory of another Party, and includes any new form of delivery of a
financial service or the sale of a financial product that is not sold in the Party's territory;
person of a Party means "person of a Party" as defined in Chapter Two (General Definitions)
and, for greater certainty, does not include a branch of an enterprise of a non-Party;
public entity means a central bank or monetary authority of a Party, or any financial institution
owned or controlled by a Party; and
self-regulatory organization means any non-governmental body, including any securities or

futures exchange or market, clearing agency, or other organization or association, that
exercises its own or delegated regulatory or supervisory authority over financial service
providers or financial institutions.
Annex 1401.4
Country-Specific Commitments
For Canada and the United States, Article 1702(1) and (2) of the Canada United States Free
Trade Agreement is hereby incorporated into and made a part of this Agreement.
Annex 1403.3
Review of Market Access
The review of market access referred to in Article 1403(3) shall not include the market access
limitations specified in Section B of the Schedule of Mexico to Annex VII.
Annex 1404.4
Consultations on Liberalization of cross-border Trade
No later than January 1, 2000, the Parties shall consult on further liberalization of cross-border
trade in financial services. In such consultations the Parties shall, with respect to insurance:
(a) consider the possibility of allowing a wider range of insurance services to be provided on a
cross-border basis in or into their respective territories; and
(b) determine whether the limitations on cross-border insurance services specified in Section A
of the Schedule of Mexico to Annex VII shall be maintained, modified or eliminated.
Annex 1409.1
Provincial and State Reservations
1. Canada may set out in Section A of its Schedule to Annex VII by the date of entry into force
of this Agreement any existing non-conforming measure maintained at the provincial level.
2. The United States may set out in Section A of its Schedule to Annex VII by the date of entry
into force of this Agreement any existing non-conforming measures maintained by California,
Florida, Illinois, New York, Ohio and Texas. Existing non-conforming state measures of all other
states may be set out by January 1, 1995.
Annex 1412.1
Authorities Responsible for Financial Services
The authority of each Party responsible for financial services shall be:
(a) for Canada, the Department of Finance of Canada;
(b) for Mexico, the Secretaría de Hacienda y Crédito Público; and
(c) for the United States, the Department of the Treasury for banking and other financial
services and the Department of Commerce for insurance services.
Annex 1413.6
Further Consultations and Arrangements

Section A Limited Scope Financial Institutions
Three years after the date of entry into force of this Agreement, the Parties shall consult on
the aggregate limit on limited scope financial institutions described in paragraph 8 of Section B
of the Schedule of Mexico to Annex VII.
Section B Payments System Protection
1. If the sum of the authorized capital of foreign commercial bank affiliates (as such term is
defined in the Schedule of Mexico to Annex VII), measured as a percentage of the aggregate
capital of all commercial banks in Mexico, reaches 25 percent, Mexico may request consultations
with the other Parties on the potential adverse effects arising from the presence of commercial
banks of the other Parties in the Mexican market and the possible need for remedial action,
including further temporary limitations on market participation. The consultations shall be
completed expeditiously.
2. In considering the potential adverse effects, the Parties shall take into account:
(a) the threat that the Mexican payments system may be controlled by non-Mexican persons;
(b) the effects foreign commercial banks established in Mexico may have on Mexico's ability t o
conduct monetary and exchangerate policy effectively; and
(c) the adequacy of this Chapter in protecting the Mexican payments system.
3. If no consensus is reached on the matters referred to in paragraph 1, any Party may request
the establishment of an arbitral panel under Article 1414 or Article 2008 (Request for an
Arbitral Panel). The panel proceedings shall be conducted in accordance with the Model Rules o f
Procedure established under Article 2012 (Rules of Procedure). The Panel shall present its
determination within 60 days after the last panelist is selected or such other period as the
Parties to the proceeding may agree. Article 2018 (Implementation of Final Report) and 2 0 1 9
(Non-Implementation-Suspension of Benefits) shall not apply in such proceedings.
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Chapter Fifteen: Competition Policy, Monopolies and State Enterprises
Article 1501: Competition Law
1. Each Party shall adopt or maintain measures to proscribe anticompetitive business conduct
and take appropriate action with respect thereto, recognizing that such measures will enhance
the fulfillment of the objectives of this Agreement. To this end the Parties shall consult from
time to time about the effectiveness of measures undertaken by each Party.
2. Each Party recognizes the importance of cooperation and coordination among their
authorities to further effective competition law enforcement in the free trade area. The Parties
shall cooperate on issues of competition law enforcement policy, including mutual legal
assistance, notification, consultation and exchange of information relating to the enforcement
of competition laws and policies in the free trade area.
3. No Party may have recourse to dispute settlement under this Agreement for any matter
arising under this Article.
Article 1502: Monopolies and State Enterprises
1. Nothing in this Agreement shall be construed to prevent a Party from designating a

monopoly.
2. Where a Party intends to designate a monopoly and the designation may affect the interests
of persons of another Party, the Party shall:
(a) wherever possible, provide prior written notification to the other Party of the designation;
and
(b) endeavor to introduce at the time of the designation such conditions on the operation o f
the monopoly as will minimize or eliminate any nullification or impairment of benefits in the
sense of Annex 2004 (Nullification and Impairment).
3. Each Party shall ensure, through regulatory control, administrative supervision or the
application of other measures, that any privately owned monopoly that it designates and any
government monopoly that it maintains or designates:
(a) acts in a manner that is not inconsistent with the Party's obligations under this Agreement
wherever such a monopoly exercises any regulatory, administrative or other governmental
authority that the Party has delegated to it in connection with the monopoly good or service,
such as the power to grant import or export licenses, approve commercial transactions or
impose quotas, fees or other charges;
(b) except to comply with any terms of its designation that are not inconsistent with
subparagraph (c) or (d), acts solely in accordance with commercial considerations in its
purchase or sale of the monopoly good or service in the relevant market, including with regard
to price, quality, availability, marketability, transportation and other terms and conditions o f
purchase or sale;
(c) provides non-discriminatory treatment to investments of investors, to goods and to service

providers of another Party in its purchase or sale of the monopoly good or service in the
relevant market; and
(d) does not use its monopoly position to engage, either directly or indirectly, including through
its dealings with its parent, its subsidiary or other enterprise with common ownership, in
anticompetitive practices in a non-monopolized market in its territory that adversely affect an
investment of an investor of another Party, including through the discriminatory provision of the
monopoly good or service, crosssubsidization or predatory conduct.
4. Paragraph 3 does not apply to procurement by governmental agencies of goods or services

for governmental purposes and not with a view to commercial resale or with a view to use in the
production of goods or the provision of services for commercial sale.
5. For purposes of this Article "maintain" means designate prior to the date of entry into force
of this Agreement and existing on January 1, 1994.
Article 1503: State Enterprises
1. Nothing in this Agreement shall be construed to prevent a Party from maintaining or

establishing a state enterprise.
2. Each Party shall ensure, through regulatory control, administrative supervision or the
application of other measures, that any state enterprise that it maintains or establishes acts in
a manner that is not inconsistent with the Party's obligations under Chapters Eleven
(Investment) and Fourteen (Financial Services) wherever such enterprise exercises any
regulatory, administrative or other governmental authority that the Party has delegated to it,
such as the power to expropriate, grant licenses, approve commercial transactions or impose
quotas, fees or other charges.
3. Each Party shall ensure that any state enterprise that it maintains or establishes accords non-
discriminatory treatment in the sale of its goods or services to investments in the Party's
territory of investors of another Party.
Article 1504: Working Group on Trade and Competition
The Commission shall establish a Working Group on Trade and Competition, comprising
representatives of each Party, to report, and to make recommendations on further work as
appropriate, to the Commission within five years of the date of entry into force of this
Agreement on relevant issues concerning the relationship between competition laws and policies
and trade in the free trade area.
designate means to establish, designate or authorize, or to expand the scope of a monopoly t o

cover an additional good or service, after the date of entry into force of this Agreement;
discriminatory provision includes treating:
(a) a parent, a subsidiary or other enterprise with common ownership more favorably than an
unaffiliated enterprise, or
(b) one class of enterprises more favorably than another,
in like circumstances;
government monopoly means a monopoly that is owned, or controlled through ownership

interests, by the federal government of a Party or by another such monopoly;
in accordance with commercial considerations means consistent with normal business practices
of privately held enterprises in the relevant business or industry;
market means the geographic and commercial market for a good or service;
monopoly means an entity, including a consortium or government agency, that in any relevant
market in the territory of a Party is designated as the sole provider or purchaser of a good or
service, but does not include an entity that has been granted an exclusive intellectual property
right solely by reason of such grant;
non-discriminatory treatment means the better of national treatment and most favored nation
treatment, as set out in the relevant provisions of this Agreement; and
state enterprise means, except as set out in Annex 1505, an enterprise owned, or controlled
through ownership interests, by a Party.
Annex 1 5 0 5
Country-Specific Definitions of State Enterprises
For purposes of Article 1503(3), "state enterprise":
(a) with respect to Canada, means a Crown corporation within the meaning of the Financial
Administration Act (Canada), a Crown corporation within the meaning of any comparable
provincial law or equivalent entity that is incorporated under other applicable provincial law; and
(b) with respect to Mexico, does not include, the Compañía Nacional de Subsistencias Populares
(National Company for Basic Commodities) and its existing affiliates, or any successor
enterprise or its affiliates, for purposes of sales of maize, beans and powdered milk.
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Chapter Sixteen: Temporary Entry for Business Persons
Article 1601: General Principles
Further to Article 102 (Objectives), this Chapter reflects the preferential trading relationship
between the Parties, the desirability of facilitating temporary entry on a reciprocal basis and o f
establishing transparent criteria and procedures for temporary entry, and the need to ensure
border security and to protect the domestic labor force and permanent employment in their
respective territories.
Article 1602: General Obligations
1. Each Party shall apply its measures relating to the provisions of this Chapter in accordance
with Article 1601 and, in particular, shall apply expeditiously those measures so as to avoid
unduly impairing or delaying trade in goods or services or conduct of investment activities under
this Agreement.
2. The Parties shall endeavor to develop and adopt common criteria, definitions and
interpretations for the implementation of this Chapter.
Article 1603: Grant of Temporary Entry
1. Each Party shall grant temporary entry to business persons who are otherwise qualified for
entry under applicable measures relating to public health and safety and national security, in
accordance with this Chapter, including the provisions of Annex 1603.
2. A Party may refuse to issue an immigration document authorizing employment to a business

person where the temporary entry of that person might affect adversely:
(a) the settlement of any labor dispute that is in progress at the place or intended place o f
employment; or
(b) the employment of any person who is involved in such dispute.
3. When a Party refuses pursuant to paragraph 2 to issue an immigration document authorizing

employment, it shall:
(a) inform in writing the business person of the reasons for the refusal; and
(b) promptly notify in writing the Party whose business person has been refused entry of the
reasons for the refusal.
4. Each Party shall limit any fees for processing applications for temporary entry of business
persons to the approximate cost of services rendered.
Article 1604: Provision of Information
1. Further to Article 1802 (Publication), each Party shall:
(a) provide to the other Parties such materials as will enable them to become acquainted with
its measures relating to this Chapter; and
(b) no later than one year after the date of entry into force of this Agreement, prepare, publish
and make available in its own territory, and in the territories of the other Parties, explanatory
material in a consolidated document regarding the requirements for temporary entry under this
Chapter in such a manner as will enable business persons of the other Parties to become
acquainted with them.
2. Subject to Annex 1604.2, each Party shall collect and maintain, and make available to the
other Parties in accordance with its domestic law, data respecting the granting of temporary
entry under this Chapter to business persons of the other Parties who have been issued
immigration documentation, including data specific to each occupation, profession or activity.
Article 1605: Working Group

1. The Parties hereby establish a Temporary Entry Working Group, comprising representatives o f
each Party, including immigration officials.
2. The Working Group shall meet at least once each year to consider:
(a) the implementation and administration of this Chapter;
(b) the development of measures to further facilitate temporary entry of business persons on a
reciprocal basis;
(c) the waiving of labor certification tests or procedures of similar effect for spouses o f
business persons who have been granted temporary entry for more than one year under Section
B, C or D of Annex 1603; and
(d) proposed modifications of or additions to this Chapter.
Article 1606: Dispute Settlement
1. A Party may not initiate proceedings under Article 2007 (Commission Good Offices,
Conciliation and Mediation) regarding a refusal to grant temporary entry under this Chapter or a
particular case arising under Article 1602(1) unless:
(a) the matter involves a pattern of practice; and
(b) the business person has exhausted the available administrative remedies regarding the
particular matter.
2. The remedies referred to in paragraph (1)(b) shall be deemed to be exhausted if a final

determination in the matter has not been issued by the competent authority within one year o f
the institution of an administrative proceeding, and the failure to issue a determination is not
attributable to delay caused by the business person.
Except for this Chapter, Chapters One (Objectives), Two (General Definitions), Twenty
(Institutional Arrangements and Dispute Settlement Procedures) and TwentyTwo (Final
Provisions) and Articles 1801 (Contacts Points), 1802 (Publication), 1803 (Notification and
Provision of Information) and 1804 (Administrative Proceedings), no provision of this
Agreement shall impose any obligation on a Party regarding its immigration measures.
business person means a citizen of a Party who is engaged in trade in goods, the provision o f
services or the conduct of investment activities;
citizen means "citizen" as defined in Annex 1608 for the Parties specified in that Annex;
existing means "existing" as defined in Annex 1608 for the Parties specified in that Annex; and
temporary entry means entry into the territory of a Party by a business person of another Party
without the intent to establish permanent residence.
Annex 1 6 0 3
Temporary Entry for Business Persons
Section A - Business Visitors
1. Each Party shall grant temporary entry to a business person seeking to engage in a business
activity set out in Appendix 1603.A.1, without requiring that person to obtain an employment
authorization, provided that the business person otherwise complies with existing immigration
measures applicable to temporary entry, on presentation of:
(a) proof of citizenship of a Party;
(b) documentation demonstrating that the business person will be so engaged and describing
the purpose of entry; and
(c) evidence demonstrating that the proposed business activity is international in scope and
that the business person is not seeking to enter the local labor market.
2. Each Party shall provide that a business person may satisfy the requirements of paragraph
1(c) by demonstrating that:
(a) the primary source of remuneration for the proposed business activity is outside the
territory of the Party granting temporary entry; and
(b) the business person's principal place of business and the actual place of accrual of profits,
at least predominantly, remain outside such territory.
A Party shall normally accept an oral declaration as to the principal place of business and the
actual place of accrual of profits. Where the Party requires further proof, it shall normally
consider a letter from the employer attesting to these matters as sufficient proof.
3. Each Party shall grant temporary entry to a business person seeking to engage in a business
activity other than those set out in Appendix 1603.A.1, without requiring that person to obtain
an employment authorization, on a basis no less favorable than that provided under the existing
provisions of the measures set out in Appendix 1603.A.3, provided that the business person
otherwise complies with existing immigration measures applicable to temporary entry.
4. No Party may:
(a) as a condition for temporary entry under paragraph 1 or 3, require prior approval
procedures, petitions, labor certification tests or other procedures of similar effect; or
(b) impose or maintain any numerical restriction relating to temporary entry under paragraph 1
or 3.
5. Notwithstanding paragraph 4, a Party may require a business person seeking temporary entry
under this Section to obtain a visa or its equivalent prior to entry. Before imposing a visa
requirement, the Party shall consult, on request, with a Party whose business persons would be
affected with a view to avoiding the imposition of the requirement. With respect to an existing
visa requirement, a Party shall consult, on request, with a Party whose business persons are
subject to the requirement with a view to its removal.
Section B - Traders and Investors
1. Each Party shall grant temporary entry and provide confirming documentation to a business
person seeking to:
(a) carry on substantial trade in goods or services principally between the territory of the Party
of which the business person is a citizen and the territory of the Party into which entry is
sought, or
(b) establish, develop, administer or provide advice or key technical services to the operation o f
an investment to which the business person or the business person's enterprise has committed,
or is in the process of committing, a substantial amount of capital,
in a capacity that is supervisory, executive or involves essential skills, provided that the
business person otherwise complies with existing immigration measures applicable to temporary
entry.
2. No Party may:
(a) as a condition for temporary entry under paragraph 1, require labor certification tests or
other procedures of similar effect; or
(b) impose or maintain any numerical restriction relating to temporary entry under paragraph 1.
under this Section to obtain a visa or its equivalent prior to entry.
Section C - Intra-Company Transferees
person employed by an enterprise who seeks to render services to that enterprise or a
subsidiary or affiliate thereof, in a capacity that is managerial, executive or involves specialized
knowledge, provided that the business person otherwise complies with existing immigration
measures applicable to temporary entry. A Party may require the business person to have been
employed continuously by the enterprise for one year within the threeyear period immediately
preceding the date of the application for admission.
2. No Party may:
(a) as a condition for temporary entry under paragraph 1, require labor certification tests or
other procedures of similar effect; or
requirement, the Party shall consult with a Party whose business persons would be affected with
a view to avoiding the imposition of the requirement. With respect to an existing visa
requirement, a Party shall consult, on request, with a Party whose business persons are subject
to the requirement with a view to its removal.
Section D - Professionals
person seeking to engage in a business activity at a professional level in a profession set out in
Appendix 1603.D.1, if the business person otherwise complies with existing immigration
measures applicable to temporary entry, on presentation of:
(a) proof of citizenship of a Party; and
(b) documentation demonstrating that the business person will be so engaged and describing
the purpose of entry.
2. No Party may:
(a) as a condition for temporary entry under paragraph 1, require prior approval procedures,
petitions, labor certification tests or other procedures of similar effect; or
requirement, the Party shall consult with a Party whose business persons would be affected with
a view to avoiding the imposition of the requirement. With respect to an existing visa
requirement, a Party shall consult, on request, with a Party whose business persons are subject
to the requirement with a view to its removal.
4. Notwithstanding paragraphs 1 and 2, a Party may establish an annual numerical limit, which
shall be set out in Appendix 1603.D.4, regarding temporary entry of business persons o f
another Party seeking to engage in business activities at a professional level in a profession set
out in Appendix 1603.D.1, if the Parties concerned have not agreed otherwise prior to the date
of entry into force of this Agreement for those Parties. In establishing such a limit, the Party
shall consult with the other Party concerned.
5. A Party establishing a numerical limit pursuant to paragraph 4, unless the Parties concerned
agree otherwise:
(a) shall, for each year after the first year after the date of entry into force of this Agreement,
consider increasing the numerical limit set out in Appendix 1603.D.4 by an amount to be
established in consultation with the other Party concerned, taking into account the demand for
temporary entry under this Section;
(b) shall not apply its procedures established pursuant to paragraph 1 to the temporary entry
of a business person subject to the numerical limit, but may require the business person t o
comply with its other procedures applicable to the temporary entry of professionals; and
(c) may, in consultation with the other Party concerned, grant temporary entry under paragraph
1 to a business person who practices in a profession where accreditation, licensing, and
certification requirements are mutually recognized by those Parties.
6. Nothing in paragraph 4 or 5 shall be construed to limit the ability of a business person t o

seek temporary entry under a Party's applicable immigration measures relating to the entry o f
professionals other than those adopted or maintained pursuant to paragraph 1.
7. Three years after a Party establishes a numerical limit pursuant to paragraph 4, it shall
consult with the other Party concerned with a view to determining a date after which the limit
shall cease to apply.
Appendix 1603.A.1
Business Visitors
Research and Design
Technical, scientific and statistical researchers conducting independent research or research for
an enterprise located in the territory of another Party.
Growth, Manufacture and Production
Harvester owner supervising a harvesting crew admitted under applicable law.

*
Purchasing and production management personnel conducting commercial transactions for an

enterprise located in the territory of another Party.
Marketing
*
Market researchers and analysts conducting independent research or analysis or research or
analysis for an enterprise located in the territory of another Party.
*
Trade fair and promotional personnel attending a trade convention.
Sales
Sales representatives and agents taking orders or negotiating contracts for goods or services
for an enterprise located in the territory of another Party but not delivering goods or providing
services.
*
Buyers purchasing for an enterprise located in the territory of another Party.
Distribution
Transportation operators transporting goods or passengers to the territory of a Party from the
territory of another Party or loading and transporting goods or passengers from the territory o f
a Party, with no unloading in that territory, to the territory of another Party.
*
With respect to temporary entry into the territory of the United States, Canadian customs
brokers performing brokerage duties relating to the export of goods from the territory of the
United States to or through the territory of Canada.
*
With respect to temporary entry into the territory of Canada, United States customs brokers
performing brokerage duties relating to the export o f goods from the territory of Canada to or
through the territory of the United States.
*
Customs brokers providing consulting services regarding the facilitation of the import or export
of goods.
AfterSales Service
Installers, repair and maintenance personnel, and supervisors, possessing specialized knowledge
essential to a seller's contractual obligation, performing services or training workers to perform
services, pursuant to a warranty or other service contract incidental to the sale of commercial
or industrial equipment or machinery, including computer software, purchased from an
enterprise located outside the territory of the Party into which temporary entry is sought,
during the life of the warranty or service agreement.
General Service
Professionals engaging in a business activity at a professional level in a profession set out in

Appendix 1603.D.1.
*
Management and supervisory personnel engaging in a commercial transaction for an enterprise

located in the territory of another Party.
*
Financial services personnel (insurers, bankers or investment brokers) engaging in commercial

transactions for an enterprise located in the territory of another Party.
*
Public relations and advertising personnel consulting with business associates, or attending or
participating in conventions.
*
Tourism personnel (tour and travel agents, tour guides or tour operators) attending or
participating in conventions or conducting a tour that has begun in the territory of another
Party.
*
Tour bus operators entering the territory of a Party:
(a) with a group of passengers on a bus tour that has begun in, and will return to, the territory
of another Party;
(b) to meet a group of passengers on a bus tour that will end, and the predominant portion o f
which will take place, in the territory of another Party; or
(c) with a group of passengers on a bus tour to be unloaded in the territory of the Party into
which temporary entry is sought, and returning with no passengers or reloading with the group
for transportation to the territory of another Party.
Translators or interpreters performing services as employees of an enterprise located in the

territory of another Party.
Definitions
For purposes of this Appendix:

territory of another Party means the territory of a Party other than the territory of the Party
into which temporary entry is sought;
tour bus operator means a natural person, including relief personnel accompanying or following
to join, necessary for the operation of a tour bus for the duration of a trip; and
transportation operator means a natural person, other than a tour bus operator, including relief
personnel accompanying or following to join, necessary for the operation of a vehicle for the
duration of a trip.
Appendix 1603.A.3
Existing Immigration Measures
1. In the case of Canada, subsection 19(1) of the Immigration Regulations, 1978 , SOR/78172,
as amended, made under the Immigration Act , R.S.C. 1985, c. I2, as amended.
2. In the case of the United States, section 101(a)(15)(B) of the Immigration and Nationality
Act , 1952, as amended.
3. In the case of Mexico, Chapter III of the General Demography Law ("Ley General de
Población"), 1974, as amended.
Appendix 1603.D.1
Professionals
PROFESSION1
MINIMUM EDUCATION REQUIREMENTS
AND ALTERNATIVE CREDENTIALS
General
Accountant
Baccalaureate or Licenciatura Degree; or C.P.A., C.A., C.G.A. or C.M.A.
Architect
Baccalaureate or Licenciatura Degree; or state/provincial license2
Computer Systems Analyst
Baccalaureate or Licenciatura Degree; or PostSecondary Diploma3 or PostSecondary
Certificate4, and three years experience
Disaster Relief Insurance Claims Adjuster (claims Adjuster employed by an insurance company
located in the territory of a Party, or an independent claims adjuster)
Baccalaureate or Licenciatura Degree, and successful completion of training in the appropriate
areas of insurance adjustment pertaining to disaster relief claims; or three years experience in
claims adjustment and successful completion of training in the appropriate areas of insurance
adjustment pertaining to disaster relief claims.
Economist
Baccalaureate or Licenciatura Degree
Engineer
Baccalaureate or Licenciatura Degree; or state/provincial license
Forester
Graphic Designer
Baccalaureate or Licenciatura Degree; or PostSecondary Diploma or PostSecondary Certificate,
and three years experience
Hotel Manager
Baccalaureate or Licenciatura Degree in hotel/restaurant management; or PostSecondary
Diploma or PostSecondary Certificate in hotel/restaurant management, and three years
experience in hotel/restaurant management
Industrial Designer
Interior Designer
Land Surveyor
Baccalaureate or Licenciatura Degree; or state/provincial/federal license
Landscape Architect
Lawyer (including Notary in the Province of Quebec)
LL.B., J.D., LL.L., B.C.L. or Licenciatura Degree (five years); or membership in a state/provincial
bar
Librarian
M.L.S. or B.L.S. (for which another Baccalaureate or Licenciatura Degree was a prerequisite)
Management Consultant
Baccalaureate or Licenciatura Degree; or equivalent professional experience as established by
statement or professional credential attesting to five years experience as a management
consultant, or five years experience in a field of specialty related to the consulting agreement
Mathematician (including Statistician)
Range Manager/Range Conservationalist
Research Assistant (working in a post-secondary educational institution)
Scientific Technician/Technologist5
Possession of (a) theoretical knowledge of any of the following disciplines: agricultural sciences,
astronomy, biology, chemistry, engineering, forestry, geology, geophysics, meteorology or
physics; and (b) the ability to solve practical problems in any of those disciplines, or the ability
to apply principles of any of those disciplines to basic or applied research
Social Worker
Sylviculturist (including Forestry Specialist)
Technical Publications Writer
Urban Planner (including Geographer)
Vocational Counsellor
Medical/Allied Professional
Dentist
D.D.S., D.M.D., Doctor en Odontologia or Doctor en Cirugia Dental; or state/provincial license
Dietitian
Medical Laboratory Technologist (Canada)/Medical Technologist (Mexico and the United
States)6
Baccalaureate or Licenciatura Degree; or Post-Secondary Diploma or Post-Secondary Certificate,
Nutritionist
Occupational Therapist
Pharmacist
Physician (teaching or research only)
M.D. or Doctor en Medicina; or state/provincial license
Physiotherapist/Physical Therapist
Psychologist
State/provincial license; or Licenciatura Degree
Recreational Therapist
Registered Nurse
State/provincial license; or Licenciatura Degree
Veterinarian
D.V.M., D.M.V. or Doctor en Veterinaria; or state/provincial license
Scientist
Agriculturist (including Agronomist)
Animal Breeder
Animal Scientist
Apiculturist
Astronomer
Biochemist
Biologist
Chemist
Dairy Scientist
Entomologist
Epidemiologist
Geneticist
Geologist
Geochemist
Geophysicist (including Oceanographer in Mexico and the United States)
Horticulturist
Meteorologist
Pharmacologist
Physicist (including Oceanographer in Canada)
Plant Breeder
Poultry Scientist
Soil Scientist
Zoologist
Teacher
College
Seminary
University
1 A business person seeking temporary entry under this Appendix may also perform training
functions relating to the profession, including conducting seminars.
2 "State/provincial license" and "state/provincial/federal license" mean any document issued by
a state, provincial or federal government, as the case may be, or under its authority, but not by
a local government, that permits a person to engage in a regulated activity or profession.
3 "Post-Secondary Diploma" means a credential issued, on completion of two or more years o f

postsecondary education, by an accredited academic institution in Canada or the United States.
4 "Post-Secondary Certificate" means a certificate issued, on completion of two or more years

of postsecondary education at an academic institution, by the federal government of Mexico or
a state government in Mexico, an academic institution recognized by the federal government or
a state government, or an academic institution created by federal or state law.
5 A business person in this category must be seeking temporary entry to work in direct support
of professionals in agricultural sciences, astronomy, biology, chemistry, engineering, forestry,
geology, geophysics, meteorology or physics.
6 A business person in this category must be seeking temporary entry to perform in a

laboratory chemical, biological, hematological, immunologic, microscopic or bacteriological tests
and analyses for diagnosis, treatment or prevention of disease.
Appendix 1603.D.4
United States
1. Beginning on the date of entry into force of this Agreement as between the United States
and Mexico, the United States shall annually approve as many as 5,500 initial petitions o f
business persons of Mexico seeking temporary entry under Section D of Annex 1603 to engage
in a business activity at a professional level in a profession set out in Appendix 1603.D.1.
2. For purposes of paragraph 1, the United States shall not take into account:
(a) the renewal of a period of temporary entry;
(b) the entry of a spouse or children accompanying or following to join the principal business
person;
(c) an admission under section 101(a)(15)(H)(i)(b) of the Immigration and Nationality Act,
1952 , as may be amended, including the worldwide numerical limit established by section
214(g)(1)(A) of that Act; or
(d) an admission under any other provision of section 101(a)(15) of that Act relating to the
entry of professionals.
3. Paragraphs 4 and 5 of Section D of Annex 1603 shall apply as between the United States and
Mexico for no longer than:
(a) the period that such paragraphs or similar provisions may apply as between the United
States and any other Party other than Canada or any non Party; or
(b) 10 years after the date of entry into force of this Agreement as between such Parties,
whichever period is shorter.
Annex 1604.2
Provision of Information
The obligations under Article 1604(2) shall take effect with respect to Mexico one year after
the date of entry into force of this Agreement.
Annex 1 6 0 8
Country Specific Definitions
citizen means, with respect to Mexico, a national or a citizen according to the existing
provisions of Articles 30 and 34, respectively, of the Mexican Constitution; and
existing means, as between:
(a) Canada and Mexico, and Mexico and the United States, in effect on the date of entry into
force of this Agreement; and
(b) Canada and the United States, in effect on January 1, 1989.
PART SIX: INTELLECTUAL PROPERTY
Chapter Seventeen: Intellectual Property
Article 1701: Nature and Scope of Obligations
1. Each Party shall provide in its territory to the nationals of another Party adequate and
effective protection and enforcement of intellectual property rights, while ensuring that
measures to enforce intellectual property rights do not themselves become barriers t o
legitimate trade.
2. To provide adequate and effective protection and enforcement of intellectual property rights,
each Party shall, at a minimum, give effect to this Chapter and to the substantive provisions of:
(a) the Geneva Convention for the Protection of Producers of Phonograms Against Unauthorized
Duplication of their Phonograms, 1971 (Geneva Convention);
(b) the Berne Convention for the Protection of Literary and Artistic Works, 1971 (Berne
Convention);
(c) the Paris Convention for the Protection of Industrial Property, 1967 (Paris Convention); and
(d) the International Convention for the Protection of New Varieties of Plants, 1978 (UPOV
Convention), or the International Convention for the Protection of New Varieties of Plants, 1 9 9 1
(UPOV Convention).
If a Party has not acceded to the specified text of any such Conventions on or before the date
of entry into force of this Agreement, it shall make every effort to accede.
Article 1702: More Extensive Protection
A Party may implement in its domestic law more extensive protection of intellectual property
rights than is required under this Agreement, provided that such protection is not inconsistent
with this Agreement.
1. Each Party shall accord to nationals of another Party treatment no less favorable than that i t
accords to its own nationals with regard to the protection and enforcement of all intellectual
property rights. In respect of sound recordings, each Party shall provide such treatment t o
producers and performers of another Party, except that a Party may limit rights of performers
of another Party in respect of secondary uses of sound recordings to those rights its nationals
are accorded in the territory of such other Party.
2. No Party may, as a condition of according national treatment under this Article, require right
holders to comply with any formalities or conditions in order to acquire rights in respect o f
copyright and related rights.
3. A Party may derogate from paragraph 1 in relation to its judicial and administrative
procedures for the protection or enforcement of intellectual property rights, including any
procedure requiring a national of another Party to designate for service of process an address in
the Party's territory or to appoint an agent in the Party's territory, if the derogation is
consistent with the relevant Convention listed in Article 1701(2), provided that such
derogation:
(a) is necessary to secure compliance with measures that are not inconsistent with this
Chapter; and
(b) is not applied in a manner that would constitute a disguised restriction on trade.
4. No Party shall have any obligation under this A r ticle with respect to procedures provided in
multilateral agreements concluded under the auspices of the World Intellectual Property
Organization relating to the acquisition or maintenance of intellectual property rights.
Article 1704: Control of Abusive or Anticompetitive Practices or Conditions

Nothing in this Chapter shall prevent a Party from specifying in its domestic law licensing
practices or conditions that may in particular cases constitute an abuse of intellectual property
rights having an adverse effect on competition in the relevant market. A Party may adopt or
maintain, consistent with the other provisions of this Agreement, appropriate measures t o
prevent or control such practices or conditions.
Article 1705: Copyright
1. Each Party shall protect the works covered by Article 2 of the Berne Convention, including
any other works that embody original expression within the meaning of that Convention. In
particular:
(a) all types of computer programs are literary works within the meaning of the Berne
Convention and each Party shall protect them as such; and
(b) compilations of data or other material, whether in machine readable or other form, which by
reason of the selection or arrangement of their contents constitute intellectual creations, shall
be protected as such.
The protection a Party provides under subparagraph (b) shall not extend to the data or material
itself, or prejudice any copyright subsisting in that data or material.
2. Each Party shall provide to authors and their successors in interest those rights enumerated
in the Berne Convention in respect of works covered by paragraph 1, including the right t o
authorize or prohibit:
(a) the importation into the Party's territory of copies of the work made without the right
holder's authorization;
(b) the first public distribution of the original and each copy of the work by sale, rental or
otherwise;
(c) the communication of a work to the public; and
(d) the commercial rental of the original or a copy of a computer program.
Subparagraph (d) shall not apply where the copy of the computer program is not itself an
essential object of the rental. Each Party shall provide that putting the original or a copy of a
computer program on the market with the right holder's consent shall not exhaust the rental
right.
3. Each Party shall provide that for copyright and related rights:
(a) any person acquiring or holding economic rights may freely and separately transfer such
rights by contract for purposes of their exploitation and enjoyment by the transferee; and
(b) any person acquiring or holding such economic rights by virtue of a contract, including
contracts of employment underlying the creation of works and sound recordings, shall be able
to exercise those rights in its own name and enjoy fully the benefits derived from those rights.
4. Each Party shall provide that, where the term of protection of a work, other than a
photographic work or a work of applied art, is to be calculated on a basis other than the life of a
natural person, the term shall be not less than 50 years from the end of the calendar year o f
the first authorized publication of the work or, failing such authorized publication within 5 0
years from the making of the work, 50 years from the end of the calendar year of making.
5. Each Party shall confine limitations or exceptions to the rights provided for in this Article t o
certain special cases that do not conflict with a normal exploitation of the work and do not
unreasonably prejudice the legitimate interests of the right holder.
6. No Party may grant translation and reproduction licenses permitted under the Appendix t o
the Berne Convention where legitimate needs in that Party's territory for copies or translations
of the work could be met by the right holder's voluntary actions but for obstacles created by
the Party's measures.
Article 1706: Sound Recordings
1. Each Party shall provide to the producer of a sound recording the right to authorize or
prohibit:
(a) the direct or indirect reproduction of the sound recording;
(b) the importation into the Party's territory of copies of the sound recording made without the
producer's authorization;
(c) the first public distribution of the original and each copy of the sound recording by sale,
rental or otherwise; and
(d) the commercial rental of the original or a copy of the sound recording, except where
expressly otherwise provided in a contract between the producer of the sound recording and
the authors of the works fixed therein.
Each Party shall provide that putting the original or a copy of a sound recording on the market
with the right holder's consent shall not exhaust the rental right.
2. Each Party shall provide a term of protection for sound recordings of at least 50 years from
the end of the calendar year in which the fixation was made.
3. Each Party shall confine limitations or exceptions to the rights provided for in this Article t o
certain special cases that do not conflict with a normal exploitation of the sound recording and
do not unreasonably prejudice the legitimate interests of the right holder.
Article 1707: Protection of Encrypted ProgramCarrying Satellite Signals
Within one year from the date of entry into force of this Agreement, each Party shall make it:
(a) a criminal offense to manufacture, import, sell, lease or otherwise make available a device or
system that is primarily of assistance in decoding an encrypted program carrying satellite signal
without the authorization of the lawful distributor of such signal; and
(b) a civil offense to receive, in connection with commercial activities, or further distribute, an
encrypted program carrying satellite signal that has been decoded without the authorization o f
the lawful distributor of the signal or to engage in any activity prohibited under subparagraph
(a).
Each Party shall provide that any civil offense established under subparagraph (b) shall be
actionable by any person that holds an interest in the content of such signal.
Article 1708: Trademarks
1. For purposes of this Agreement, a trademark consists of any sign, or any combination o f
signs, capable of distinguishing the goods or services of one person from those of another,
including personal names, designs, letters, numerals, colors, figurative elements, or the shape o f
goods or of their packaging. Trademarks shall include service marks and collective marks, and
may include certification marks. A Party may require, as a condition for registration, that a sign
be visually perceptible.
2. Each Party shall provide to the owner of a registered trademark the right to prevent all
persons not having the owner's consent from using in commerce identical or similar signs for
goods or services that are identical or similar to those goods or services in respect of which the
owner's trademark is registered, where such use would result in a likelihood of confusion. In the
case of the use of an identical sign for identical goods or services, a likelihood of confusion shall
be presumed. The rights described above shall not prejudice any prior rights, nor shall they
affect the possibility of a Party making rights available on the basis of use.
3. A Party may make registrability depend on use. However, actual use o f a trademark shall not
be a condition for filing an application for registration. No Party may refuse an application solely
on the ground that intended use has not taken place before the expiry of a period of three
years from the date of application for registration.
4. Each Party shall provide a system for the registration of trademarks, which shall include:
(a) examination of applications;
(b) notice to be given to an applicant of the reasons for the refusal to register a trademark;
(c) a reasonable opportunity for the applicant to respond to the notice;
(d) publication of each trademark either before or promptly after it is registered; and
(e) a reasonable opportunity for interested persons to petition to cancel the registration of a
trademark.
A Party may provide for a reasonable opportunity for interested persons to oppose the
registration of a trademark.
5. The nature of the goods or services to which a trademark is to be applied shall in no case
form an obstacle to the registration of the trademark.
6. Article 6bis of the Paris Convention shall apply, with such modifications as may be necessary,
to services. In determining whether a trademark is wellknown, account shall be taken of the
knowledge of the trademark in the relevant sector of the public, including knowledge in the
Party's territory obtained as a result of the promotion of the trademark. No Party may require
that the reputation of the trademark extend beyond the sector of the public that normally deals
with the relevant goods or services.
7. Each Party shall provide that the initial registration of a trademark be for a term of at least
10 years and that the registration be indefinitely renewable for terms of not less than 10 years
when conditions for renewal have been met.
8. Each Party shall require the use of a trademark to maintain a registration. The registration
may be canceled for the reason of non-use only after an uninterrupted period of at least t w o
years of non-use, unless valid reasons based on the existence of obstacles to such use are
shown by the trademark owner. Each Party shall recognize, as valid reasons for non- use,
circumstances arising independently of the will of the trademark owner that constitute an
obstacle to the use of the trademark, such as import restrictions on, or other government
requirements for, goods or services identified by the trademark.
9. Each Party shall recognize use of a trademark by a person other than the trademark owner,
where such use is subject to the owner's control, as use of the trademark for purposes o f
maintaining the registration.
10. No Party may encumber the use of a trademark in commerce by special requirements, such
as a use that reduces the trademark's function as an indication of source or a use with another
trademark.
11. A Party may determine conditions on the licensing and assignment of trademarks, it being
understood that the compulsory licensing of trademarks shall not be permitted and that the
owner of a registered trademark shall have the right to assign its trademark with or without the
transfer of the business to which the trademark belongs.
12. A Party may provide limited exceptions to the rights conferred by a trademark, such as fair
use of descriptive terms, provided that such exceptions take into account the legitimate
interests of the trademark owner and of other persons.
13. Each Party shall prohibit the registration as a trademark of words, at least in English, French
or Spanish, that generically designate goods or services or types of goods or services to which
the trademark applies.
14. Each Party shall refuse to register trademarks that consist of or comprise immoral,
deceptive or scandalous matter, or matter that may disparage or falsely suggest a connection
with persons, living or dead, institutions, beliefs or any Party's national symbols, or bring them
into contempt or disrepute.
Article 1709: Patents
1. Subject to paragraphs 2 and 3, each Party shall make patents available for any inventions,
whether products or processes, in all fields of technology, provided that such inventions are
new, result from an inventive step and are capable of industrial application. For purposes of this
Article, a Party may deem the terms "inventive step" and "capable of industrial application" t o
be synonymous with the terms "non-obvious" and "useful", respectively.
2. A Party may exclude from patentability inventions if preventing in its territory the commercial
exploitation of the inventions is necessary to protect ordre public or morality, including t o
protect human, animal or plant life or health or to avoid serious prejudice to nature or the
environment, provided that the exclusion is not based solely on the ground that the Party
prohibits commercial exploitation in its territory of the subject matter of the patent.
3. A Party may also exclude from patentability:
(a) diagnostic, therapeutic and surgical methods for the treatment of humans or animals;
(b) plants and animals other than microorganisms; and
(c) essentially biological processes for the production of plants or animals, other than non-
biological and microbiological processes for such production.
Notwithstanding subparagraph (b), each Party shall provide for the protection of plant varieties
through patents, an effective scheme of sui generis protection, or both.
4. If a Party has not made available product patent protection for pharmaceutical or agricultural
chemicals commensurate with paragraph 1:
(a) as of January 1, 1992, for subject matter that relates to naturally occurring substances
prepared or produced by, or significantly derived from, microbiological processes and intended
for food or medicine, and
(b) as of July 1, 1991, for any other subject matter,
that Party shall provide to the inventor of any such product or i ts assignee the means to obtain
product patent protection for such product for the unexpired term of the patent for such
product granted in another Party, as long as the product has not been marketed in the Party
providing protection under this paragraph and the person seeking such protection makes a
timely request.

(a) where the subject matter of a patent is a product, the patent shall confer on the patent
owner the right to prevent other persons from making, using or selling the subject matter o f
the patent, without the patent owner's consent; and
(b) where the subject matter of a patent is a process, the patent shall confer on the patent
owner the right to prevent other persons from using that process and from using, selling, or
importing at least the product obtained directly by that process, without the patent owner's
consent.
6. A Party may provide limited exceptions to the exclusive rights conferred by a patent,
provided that such exceptions do not unreasonably conflict with a normal exploitation of the
patent and do not unreasonably prejudice the legitimate interests of the patent owner, taking
into account the legitimate interests of other persons.
7. Subject to paragraphs 2 and 3, patents shall be available and patent rights enjoyable without
discrimination as to the field of technology, the territory of the Party where the invention was
made and whether products are imported or locally produced.
8. A Party may revoke a patent only when:
(a) grounds exist that would have justified a refusal to grant the patent; or
(b) the grant of a compulsory license has not remedied the lack of exploitation of the patent.
9. Each Party shall permit patent owners to assign and transfer by succession their patents, and
to conclude licensing contracts.
10. Where the law of a Party allows for use of the subject matter of a patent, other than that
use allowed under paragraph 6, without the authorization of the right holder, including use by
the government or other persons authorized by the government, the Party shall respect the
following provisions:
(a) authorization of such use shall be considered on its individual merits;
(b) such use may only be permitted if, prior to such use, the proposed user has made efforts t o
obtain authorization from the right holder on reasonable commercial terms and conditions and
such efforts have not been successful within a reasonable period of time. The requirement t o
make such efforts may be waived by a Party in the case of a national emergency or other
circumstances of extreme urgency or in cases of public non-commercial use. In situations o f
national emergency or other circumstances of extreme urgency, the right holder shall,
nevertheless, be notified as soon as reasonably practicable. In the case of public non-
commercial use, where the government or contractor, without making a patent search, knows
or has demonstrable grounds to know that a valid patent is or will be used by or for the
government, the right holder shall be informed promptly;
(c) the scope and duration of such use shall be limited to the purpose for which it was
authorized;
(d) such use shall be non-exclusive;
(e) such use shall be non-assignable, except with that part of the enterprise or goodwill that
enjoys such use;
(f) any such use shall be authorized predominantly for the supply of the Party's domestic
market;
(g) authorization for such use shall be liable, subject to adequate protection of the legitimate
interests of the persons so authorized, to be terminated if and when the circumstances that led
to it cease to exist and are unlikely to recur. The competent authority shall have the authority
to review, on motivated request, the continued existence of these circumstances;
(h) the right holder shall be paid adequate remuneration in the circumstances of each case,
taking into account the economic value of the authorization;
(i) the legal validity of any decision relating to the authorization shall be subject to judicial or
other independent review by a distinct higher authority;
(j) any decision relating to the remuneration provided in respect of such use shall be subject t o
judicial or other independent review by a distinct higher authority;
(k) the Party shall not be obliged to apply the conditions set out in subparagraphs (b) and ( f )
where such use is permitted to remedy a practice determined after judicial or administrative
process to be anticompetitive. The need to correct anticompetitive practices may be taken into
account in determining the amount of remuneration in such cases. Competent authorities shall
have the authority to refuse termination of authorization if and when the conditions that led to
such authorization are likely to recur;
(l) the Party shall not authorize the use of the subject matter of a patent to permit the
exploitation of another patent except as a remedy for an adjudicated violation of domestic laws
regarding anticompetitive practices.
11. Where the subject matter of a patent is a process for obtaining a product, each Party shall,
in any infringement proceeding, place on the defendant the burden of establishing that the
allegedly infringing product was made by a process other than the patented process in one o f
the following situations:
(a) the product obtained by the patented process is new; or
(b) a substantial likelihood exists that the allegedly infringing product was made by the process
and the patent owner has been unable through reasonable efforts to determine the process
actually used.
In the gathering and evaluation of evidence, the legitimate interests of the defendant in
protecting its trade secrets shall be taken into account.
12. Each Party shall provide a term of protection for patents of at least 20 years from the date
of filing or 17 years from the date of grant. A Party may extend the term of patent protection,
in appropriate cases, to compensate for delays caused by regulatory approval processes.
Article 1710: Layout Designs of Semiconductor Integrated Circuits
1. Each Party shall protect layout designs (topographies) of integrated circuits ("layout
designs") in accordance with Articles 2 through 7, 12 and 16(3), other than Article 6(3), of the
Treaty on Intellectual Property in Respect of Integrated Circuits as opened for signature on May
26, 1989.
2. Subject to paragraph 3, each Party shall make it unlawful for any person without the right
holder's authorization to import, sell or otherwise distribute for commercial purposes any of the
following:
(a) a protected layout design;
(b) an integrated circuit in which a protected layout design is incorporated; or
(c) an article incorporating such an integrated circuit, only insofar as it continues to contain an
unlawfully reproduced layout design.
3. No Party may make unlawful any of the acts referred to in paragraph 2 performed in respect
of an integrated circuit that incorporates an unlawfully reproduced layout design, or any article
that incorporates such an integrated circuit, where the person performing those acts or
ordering those acts to be done did not know and had no reasonable ground to know, when i t
acquired the integrated circuit or article incorporating such an integrated circuit, that i t
incorporated an unlawfully reproduced layout design.
4. Each Party shall provide that, after the person referred to in paragraph 3 has received
sufficient notice that the layout design was unlawfully reproduced, such person may perform
any of the acts with respect to the stock on hand or ordered before such notice, but shall be
liable to pay the right holder for doing so an amount equivalent to a reasonable royalty such as
would be payable under a freely negotiated license in respect of such a layout design.
5. No Party may permit the compulsory licensing of layout designs of integrated circuits.
6. Any Party that requires registration as a condition for protection of a layout design shall
provide that the term of protection shall not end before the expiration of a period of 10 years
counted from the date of:
(a) filing of the application f or registration; or
(b) the first commercial exploitation of the layout design, wherever in the world it occurs.
7. Where a Party does not require registration as a condition for protection of a layout design,
the Party shall provide a term of protection of not less than 10 years from the date of the first
commercial exploitation of the layout design, wherever in the world it occurs.
8. Notwithstanding paragraphs 6 and 7, a Party may provide that the protection shall lapse 1 5
years after the creation of the layout design.
Article 1711: Trade Secrets
1. Each Party shall provide the legal means for any person to prevent trade secrets from being
disclosed to, acquired by, or used by others without the consent of the person lawfully in
control of the information in a manner contrary to honest commercial practices, in so far as:
(a) the information is secret in the sense that it is not, as a body or in the precise configuration
and assembly of its components, generally known among or readily accessible to persons that
normally deal with the kind of information in question;
(b) the information has actual or potential commercial value because it is secret; and
(c) the person lawfully in control of the information has taken reasonable steps under the
circumstances to keep it secret.
2. A Party may require that to qualify for protection a trade secret must be evidenced in
documents, electronic or magnetic means, optical discs, microfilms, films or other similar
instruments.
3. No Party may limit the duration of protection for trade secrets, so long as the conditions in
paragraph 1 exist.
4. No Party may discourage or impede the voluntary licensing of trade secrets by imposing
excessive or discriminatory conditions on such licenses or conditions that dilute the value of the
trade secrets.
5. If a Party requires, as a condition for approving the marketing of pharmaceutical or

agricultural chemical products that utilize new chemical entities, the submission of undisclosed
test or other data necessary to determine whether the use of such products is safe and
effective, the Party shall protect against disclosure of the data of persons making such
submissions, where the origination of such data involves considerable effort, except where the
disclosure is necessary to protect the public or unless steps are taken to ensure that the data is
protected against unfair commercial use.
6. Each Party shall provide that for data subject to paragraph 5 that are submitted to the Party
after the date of entry into force of this Agreement, no person other than the person that
submitted them may, without the latter's permission, rely on such data in support of an
application for product approval during a reasonable period of time after their submission. For
this purpose, a reasonable period shall normally mean not less than five years from the date on
which the Party granted approval to the person that produced the data for approval to market
its product, taking account of the nature of the data and the person's efforts and expenditures
in producing them. Subject to this provision, there shall be no limitation on any Party t o
implement abbreviated approval procedures for such products on the basis of bioequivalence
and bioavailability studies.
7. Where a Party relies on a marketing approval granted by another Party, the reasonable period
of exclusive use of the data submitted in connection with obtaining the approval relied on shall
begin with the date of the first marketing approval relied on.
Article 1712: Geographical Indications
1. Each Party shall provide, in respect of geographical indications, the legal means for interested
persons to prevent:
(a) the use of any means in the designation or presentation of a good that indicates or
suggests that the good in question originates in a territory, region or locality other than the
true place of origin, in a manner that misleads the public as to the geographical origin of the
good;
(b) any use that constitutes an act of unfair competition within the meaning of Article 10bis o f
the Paris Convention.
2. Each Party shall, on its own initiative if its domestic law so permits or at the request of an
interested person, refuse to register, or invalidate the registration of, a trademark containing or
consisting of a geographical indication with respect to goods that do not originate in the
indicated territory, region or locality, if use of the indication in the trademark for such goods is
of such a nature as to mislead the public as to the geographical origin of the good.
3. Each Party shall also apply paragraphs 1 and 2 to a geographical indication that, although
correctly indicating the territory, region or locality in which the goods originate, falsely
represents to the public that the goods originate in another territory, region or locality.
4. Nothing in this Article shall be construed to require a Party to prevent continued and similar
use of a particular geographical indication of another Party in connection with goods or services
by any of its nationals or domiciliaries who have used that geographical indication in a
continuous manner with regard to the same or related goods or services in that Party's
territory, either:
(a) for at least 10 years, or
(b) in good faith,
before the date of signature of this Agreement.
5. Where a trademark has been applied for or registered in good faith, or where rights to a
trademark have been acquired through use in good faith, either:
(a) before the date of application of these provisions in that Party, or
(b) before the geographical indication is protected in its Party of origin,

no Party may adopt any measure to implement this Article that prejudices eligibility for, or the
validity of, the registration of a trademark, or the right to use a trademark, on the basis that
such a trademark is identical with, or similar to, a geographical indication.
6. No Party shall be required to apply this Article to a geographical indication if it is identical t o

the customary term in common language in that Party's territory for the goods or services t o
which the indication applies.
7. A Party may provide that any request made under this Article in connection with the use or
registration of a trademark must be presented within five years after the adverse use of the
protected indication has become generally known in that Party or after the date of registration
of the trademark in that Party, provided that the trademark has been published by that date, i f
such date is earlier than the date on which the adverse use became generally known in that
Party, provided that the geographical indication is not used or registered in bad faith.
8. No Party shall adopt any measure implementing this Article that would prejudice any person's
right to use, in the course of trade, its name or the name of its predecessor in business, except
where such name forms all or part of a valid trademark in existence before the geographical
indication became protected and with which there is a likelihood of confusion, or such name is
used in such a manner as to mislead the public.
9. Nothing in this Chapter shall be construed to require a Party to protect a geographical

indication that is not protected, or has fallen into disuse, in the Party of origin.
Article 1713: Industrial Designs
1. Each Party shall provide for the protection of independently created industrial designs that
are new or original. A Party may provide that:
(a) designs are not new or original if they do not significantly differ from known designs or
combinations of known design features; and
(b) such protection shall not extend to designs dictated essentially by technical or functional
considerations.
2. Each Party shall ensure that the requirements for securing protection for textile designs, in
particular in regard to any cost, examination or publication, do not unreasonably impair a
person's opportunity to seek and obtain such protection. A Party may comply with this
obligation through industrial design law or copyright law.
3. Each Party shall provide the owner of a protected industrial design the right to prevent other
persons not having the owner's consent from making or selling articles bearing or embodying a
design that is a copy, or substantially a copy, of the protected design, when such acts are
undertaken for commercial purposes.
4. A Party may provide limited exceptions to the protection of industrial designs, provided that
such exceptions do not unreasonably conflict with the normal exploitation of protected
industrial designs and do not unreasonably prejudice the legitimate interests of the owner of the
protected design, taking into account the legitimate interests of other persons.
5. Each Party shall provide a term of protection for industrial designs of at least 10 years.
Article 1714: Enforcement of Intellectual Property Rights: General Provisions
1. Each Party shall ensure that enforcement procedures, as specified in this Article and Articles
1715 through 1718, are available under its domestic law so as to permit effective action to be
taken against any act of infringement of intellectual property rights covered by this Chapter,
including expeditious remedies to prevent infringements and remedies to deter further
infringements. Such enforcement procedures shall be applied so as to avoid the creation o f
barriers to legitimate trade and to provide for safeguards against abuse of the procedures.
2. Each Party shall ensure that its procedures for the enforcement of intellectual property rights
are fair and equitable, are not unnecessarily complicated or costly, and do not entail
unreasonable timelimits or unwarranted delays.
3. Each Party shall provide that decisions on the merits of a case in judicial and administrative
enforcement proceedings shall:
(a) preferably be in writing and preferably state the reasons on which the decisions are based;
(b) be made available at least to the parties in a proceeding without undue delay; and
(c) be based only on evidence in respect of which such parties were offered the opportunity t o
be heard.
4. Each Party shall ensure that parties in a proceeding have an opportunity to have final
administrative decisions reviewed by a judicial authority of that Party and, subject t o
jurisdictional provisions in its domestic laws concerning the importance of a case, to have
reviewed at least the legal aspects of initial judicial decisions on the merits of a case.
Notwithstanding the above, no Party shall be required to provide for judicial review of acquittals
in criminal cases.
5. Nothing in this Article or Articles 1715 through 1718 shall be construed to require a Party t o
establish a judicial system for the enforcement of intellectual property rights distinct from that
Party's system for the enforcement of laws in general.
6. For the purposes of Articles 1715 through 1718, the term "right holder" includes federations
and associations having legal standing to assert such rights.
Article 1715: Specific Procedural and Remedial Aspects of Civil and Administrative Procedures
1. Each Party shall make available to right holders civil judicial procedures for the enforcement
of any intellectual property right provided in this Chapter. Each Party shall provide that:
(a) defendants have the right to written notice that is timely and contains sufficient detail,
including the basis of the claims;
(b) parties in a proceeding are allowed to be represented by independent legal counsel;
(c) the procedures do not include imposition of overly burdensome requirements concerning
mandatory personal appearances;
(d) all parties in a proceeding are duly entitled to substantiate their claims and to present
relevant evidence; and
(e) the procedures include a means to identify and protect confidential information.
2. Each Party shall provide that its judicial authorities shall have the authority:
(a) where a party in a proceeding has presented reasonably available evidence sufficient t o
support its claims and has specified evidence relevant to the substantiation of its claims that is
within the control of the opposing party, to order the opposing party to produce such evidence,
subject in appropriate cases to conditions that ensure the protection of confidential
information;
(b) where a party in a proceeding voluntarily and without good reason refuses access to, or
otherwise does not provide relevant evidence under that party's control within a reasonable
period, or significantly impedes a proceeding relating to an enforcement action, to make
preliminary and final determinations, affirmative or negative, on the basis of the evidence
presented, including the complaint or the allegation presented by the party adversely affected
by the denial of access to evidence, subject to providing the parties an opportunity to be heard
on the allegations or evidence;
(c) to order a party in a proceeding to desist from an infringement, including to prevent the
entry into the channels of commerce in their jurisdiction of imported goods that involve the
infringement of an intellectual property right, which order shall be enforceable at least
immediately after customs clearance of such goods;
(d) to order the infringer of an intellectual property right to pay the right holder damages
adequate to compensate for the injury the right holder has suffered because of the
infringement where the infringer knew or had reasonable grounds to know that it was engaged
in an infringing activity;
(e) to order an infringer of an intellectual property right to pay the right holder's expenses,
which may include appropriate attorney's fees; and
(f) to order a party in a proceeding at whose request measures were taken and who has abused
enforcement procedures to provide adequate compensation to any party wrongfully enjoined or
restrained in the proceeding for the injury suffered because of such abuse and to pay that
party's expenses, which may include appropriate attorney's fees.
Article 1716: Provisional Measures

1. Each Party shall provide that its judicial authorities shall have the authority to order prompt
and effective provisional measures:
(a) to prevent an infringement of any intellectual property right, and in particular to prevent the
entry into the channels of commerce in their jurisdiction of allegedly infringing goods, including
measures to prevent the entry of imported goods at least immediately after customs clearance;
and
(b) to preserve relevant evidence in regard to the alleged infringement.
2. Each Party shall provide that its judicial authorities shall have the authority to require any
applicant for provisional measures to provide to the judicial authorities any evidence reasonably
available to that applicant that the judicial authorities consider necessary to enable them t o
determine with a sufficient degree of certainty whether:
(a) the applicant is the right holder;
(b) the applicant's right is being infringed or such infringement is imminent; and
(c) any delay in the issuance of such measures is likely to cause irreparable harm to the right
holder, or there is a demonstrable risk of evidence being destroyed.
Each Party shall provide that its judicial authorities shall have the authority to require the
applicant to provide a security or equivalent assurance sufficient to protect the interests of the
defendant and to prevent abuse.
3. Each Party shall provide that its judicial authorities shall have the authority to require an
applicant for provisional measures to provide other information necessary for the identification
of the relevant goods by the authority that will execute the provisional measures.
4. Each Party shall provide that its judicial authorities shall have the authority to order
provisional measures on an ex parte basis, in particular where any delay is likely to cause
irreparable harm to the right holder, or where there is a demonstrable risk of evidence being
destroyed.
5. Each Party shall provide that where provisional measures are adopted by that Party's judicial
authorities on an ex parte basis:
(a) a person affected shall be given notice of those measures without delay but in any event no
later than immediately after the execution of the measures;
(b) a defendant shall, on request, have those measures reviewed by that Party's judicial
authorities for the purpose of deciding, within a reasonable period a f ter notice of those
measures is given, whether the measures shall be modified, revoked or confirmed, and shall be
given an opportunity to be heard in the review proceedings.
6. Without prejudice to paragraph 5, each Party shall provide that, on the request of the
defendant, the Party's judicial authorities shall revoke or otherwise cease to apply the
provisional measures taken on the basis of paragraphs 1 and 4 if proceedings leading to a
decision on the merits are not initiated:
(a) within a reasonable period as determined by the judicial authority ordering the measures
where the Party's domestic law so permits; or
(b) in the absence of such a determination, within a period of no more than 20 working days or
31 calendar days, whichever is longer.
7. Each Party shall provide that, where the provisional measures are revoked or where they
lapse due to any act or omission by the applicant, or where the judicial authorities subsequently
find that there has been no infringement or threat of infringement of an intellectual property
right, the judicial authorities shall have the authority to order the applicant, on request of the
defendant, to provide the defendant appropriate compensation for any injury caused by these
measures.
8. Each Party shall provide that, where a provisional measure can be ordered as a result o f
administrative procedures, such procedures shall conform to principles equivalent in substance
to those set out in this Article.
Article 1717: Criminal Procedures and Penalties
1. Each Party shall provide criminal procedures and penalties to be applied at least in cases o f
willful trademark counterfeiting or copyright piracy on a commercial scale. Each Party shall
provide that penalties available include imprisonment or monetary fines, or both, sufficient t o
provide a deterrent, consistent with the level of penalties applied for crimes of a corresponding
gravity.
2. Each Party shall provide that, in appropriate cases, its judicial authorities may order the
seizure, forfeiture and destruction of infringing goods and of any materials and implements the
predominant use of which has been in the commission of the offense.
3. A Party may provide criminal procedures and penalties to be applied in cases of infringement
of intellectual property rights, other than those in paragraph 1, where they are committed
wilfully and on a commercial scale.
Article 1718: Enforcement of Intellectual Property Rights at the Border
1. Each Party shall, in conformity with this Article, adopt procedures to enable a right holder,
who has valid grounds for suspecting that the importation of counterfeit trademark goods or
pirated copyright goods may take place, to lodge an application in writing with its competent
authorities, whether administrative or judicial, for the suspension by the customs administration
of the release of such goods into free circulation. No Party shall be obligated to apply such
procedures to goods in transit. A Party may permit such an application to be made in respect o f
goods that involve other infringements of intellectual property rights, provided that the
requirements of this Article are met. A Party may also provide for corresponding procedures
concerning the suspension by the customs administration of the release of infringing goods
destined for exportation from its territory.
2. Each Party shall require any applicant who initiates procedures under paragraph 1 to provide
adequate evidence:
(a) to satisfy that Party's competent authorities that, under the domestic laws of the country
of importation, there is prima facie an infringement of its intellectual property right; and
(b) to supply a sufficiently detailed description of the goods to make them readily recognizable
by the customs administration.
The competent authorities shall inform the applicant within a reasonable period whether they
have accepted the application and, if so, the period for which the customs administration will
take action.
3. Each Party shall provide that its competent authorities shall have the authority to require an
applicant under paragraph 1 to provide a security or equivalent assurance sufficient to protect
the defendant and the competent authorities and to prevent abuse. Such security or equivalent
assurance shall not unreasonably deter recourse to these procedures.
4. Each Party shall provide that, where pursuant to an application under procedures adopted
pursuant to this Article, its customs administration suspends the release of goods involving
industrial designs, patents, integrated circuits or trade secrets into free circulation on the basis
of a decision other than by a judicial or other independent authority, and the period provided for
in paragraphs 6 through 8 has expired without the granting of provisional relief by the duly
empowered authority, and provided that all other conditions for importation have been complied
with, the owner, importer or consignee of such goods shall be entitled to their release on the
posting of a security in an amount sufficient to protect the right holder against any
infringement. Payment of such security shall not prejudice any other remedy available to the
right holder, it being understood that the security shall be released if the right holder fails t o
pursue its right of action within a reasonable period of time.
5. Each Party shall provide that its customs administration shall promptly notify the importer
and the applicant when the customs administration suspends the release of goods pursuant t o
paragraph 1.
6. Each Party shall provide that its customs administration shall release goods from suspension
if within a period not exceeding 10 working days after the applicant under paragraph 1 has been
served notice of the suspension the customs administration has not been informed that:
(a) a party other than the defendant has initiated proceedings leading to a decision on the
merits of the case, or
(b) a competent authority has taken provisional measures prolonging the suspension,
provided that all other conditions for importation or exportation have been met. Each Party shall
provide that, in appropriate cases, the customs administration may extend the suspension by
another 10 working days.
7. Each Party shall provide that if proceedings leading to a decision on the merits of the case
have been initiated, a review, including a right to be heard, shall take place on request of the
defendant with a view to deciding, within a reasonable period, whether these measures shall be
modified, revoked or confirmed.
8. Notwithstanding paragraphs 6 and 7, where the suspension of the release of goods is carried
out or continued in accordance with a provisional judicial measure, Article 1716(6) shall apply.
9. Each Party shall provide that its competent authorities shall have the authority to order the
applicant under paragraph 1 to pay the importer, the consignee and the owner of the goods
appropriate compensation for any injury caused to them through the wrongful detention o f
goods or through the detention of goods released pursuant to paragraph 6.
10. Without prejudice to the protection of confidential information, each Party shall provide that
its competent authorities shall have the authority to give the right holder sufficient opportunity
to have any goods detained by the customs administration inspected in order to substantiate
the right holder's claims. Each Party shall also provide that its competent authorities have the
authority to give the importer an equivalent opportunity to have any such goods inspected.
Where the competent authorities have made a positive determination on the merits of a case, a
Party may provide the competent authorities the authority to inform the right holder of the
names and addresses of the consignor, the importer and the consignee, and of the quantity o f
the goods in question.
11. Where a Party requires its competent authorities to act on their own initiative and t o
suspend the release of goods in respect of which they have acquired prima facie evidence that
an intellectual property right is being infringed:
(a) the competent authorities may at any time seek from the right holder any information that
may assist them to exercise these powers;
(b) the importer and the right holder shall be promptly notified of the suspension by the Party's
competent authorities, and where the importer lodges an appeal against the suspension with
competent authorities, the suspension shall be subject to the conditions, with such
modifications as may be necessary, set out in paragraphs 6 through 8; and
(c) the Party shall only exempt both public authorities and officials from liability to appropriate
remedial measures where actions are taken or intended in good faith.
12. Without prejudice to other rights of action open to the right holder and subject to the
defendant's right to seek judicial review, each Party shall provide that its competent authorities
shall have the authority to order the destruction or disposal of infringing goods in accordance
with the principles set out in Article 1715(5). In regard to counterfeit goods, the authorities
shall not allow the re exportation of the infringing goods in an unaltered state or subject them
to a different customs procedure, other than in exceptional circumstances.
13. A Party may exclude from the application of paragraphs 1 through 12 small quantities o f
goods of a non-commercial nature contained in travellers' personal luggage or sent in small
consignments that are not repetitive.
Article 1719: Cooperation and Technical Assistance
1. The Parties shall provide each other on mutually agreed terms with technical assistance and
shall promote cooperation between their competent authorities. Such cooperation shall include
the training of personnel.
2. The Parties shall cooperate with a view to eliminating trade in goods that infringe intellectual
property rights. For this purpose, each Party shall establish and notify the other Parties by
January 1, 1994 of contact points in its federal government and shall exchange information
concerning trade in infringing goods.
3. With respect to the authority referred to in subparagraph 2(c), no Party shall be obliged t o
provide such authority in respect of protected subject matter that is acquired or ordered by a
person before that person knew or had reasonable grounds to know that dealing in that subject
matter would entail the infringement of an intellectual property right.
4. With respect to the authority referred to in subparagraph 2(d), a Party may, at least with
respect to copyrighted works and sound recordings, authorize the judicial authorities to order
recovery of profits or payment of pre-established damages, or both, even where the infringer
did not know or had no reasonable grounds to know that it was engaged in an infringing activity.
5. Each Party shall provide that, in order to create an effective deterrent to infringement, its
judicial authorities shall have the authority to order that:
(a) goods that they have found to be infringing be, without compensation of any sort, disposed
of outside the channels of commerce in such a manner as to avoid any injury caused to the
right holder or, unless this would be contrary to existing constitutional requirements, destroyed;
and
(b) materials and implements the predominant use of which has been in the creation of the
infringing goods be, without compensation of any sort, disposed of outside the channels o f
commerce in such a manner as to minimize the risks of further infringements.
In considering whether to issue such an order, judicial authorities shall take into account the
need for proportionality between the seriousness of the infringement and the remedies ordered
as well as the interests of other persons. In regard to counterfeit goods, the simple removal o f
the trademark unlawfully affixed shall not be sufficient, other than in exceptional cases, t o
permit release of the goods into the channels of commerce.
6. In respect of the administration of any law pertaining to the protection or enforcement o f

intellectual property rights, each Party shall only exempt both public authorities and officials
from liability to appropriate remedial measures where actions are taken or intended in good faith
in the course of the administration of such laws.
7. Notwithstanding the other provisions of Articles 1714 through 1718, where a Party is sued
with respect to an infringement of an intellectual property right as a result of its use of that
right or use on its behalf, that Party may limit the remedies available against it to the payment
to the right holder of adequate remuneration in the circumstances of each case, taking into
account the economic value of the use.
8. Each Party shall provide that, where a civil remedy can be ordered as a result o f
administrative procedures on the merits of a case, such procedures shall conform to principles
equivalent in substance to those set out in this Article.
Article 1720: Protection of Existing Subject Matter
1. Except as required under Article 1705(7), this Agreement does not give rise to obligations in
respect of acts that occurred before the date of application of the relevant provisions of this
Agreement for the Party in question.
2. Except as otherwise provided for in this Agreement, each Party shall apply this Agreement t o
all subject matter existing on the date of application of the relevant provisions of this
Agreement for the Party in question and that is protected in a Party on such date, or that
meets or subsequently meets the criteria for protection under the terms of this Chapter. In
respect of this paragraph and paragraphs 3 and 4, a Party's obligations with respect to existing
works shall be solely determined under Article 18 of the Berne Convention and with respect t o
the rights of producers of sound recordings in existing sound recordings shall be determined
solely under Article 18 of that Convention, as made applicable under this Agreement.
3. Except as required under Article 1705(7), and notwithstanding the first sentence o f
paragraph 2, no Party may be required to restore protection to subject matter that, on the date
of application of the relevant provisions of this Agreement for the Party in question, has fallen
into the public domain in its territory.
4. In respect of any acts relating to specific objects embodying protected subject matter that
become infringing under the terms of laws in conformity with this Agreement, and that were
begun or in respect of which a significant investment was made, before the date of entry into
force of this Agreement for that Party, any Party may provide for a limitation of the remedies
available to the right holder as to the continued performance of such acts after the date o f
application of this Agreement for that Party. In such cases, the Party shall, however, at least
provide for payment of equitable remuneration.
5. No Party shall be obliged to apply Article 1705(2)(d) or 1706(1)(d) with respect to originals
or copies purchased prior to the date of application of the relevant provisions of this Agreement
for that Party.
6. No Party shall be required to apply Article 1709(10), or the requirement in Article 1 7 0 9 ( 7 )

that patent rights shall be enjoyable without discrimination as to the field of technology, to use
without the authorization of the right holder where authorization for such use was granted by
the government before the text of the Draft Final Act Embodying the Results of the Uruguay
Round of Multilateral Trade Negotiations became known.
7. In the case of intellectual property rights for which protection is conditional on registration,
applications for protection that are pending on the date of application of the relevant provisions
of this Agreement for the Party in question shall be permitted to be amended to claim any
enhanced protection provided under this Agreement. Such amendments shall not include new
matter.
confidential information includes trade secrets, privileged information and other materials
exempted from disclosure under the Party's domestic law.
2. For purposes of this Agreement:
encrypted program-carrying satellite signal means a program-carrying satellite signal that is

transmitted in a form whereby the aural or visual characteristics, or both, are modified or
altered for the purpose of preventing the unauthorized reception, by persons without the
authorized equipment that is designed to eliminate the effects of such modification or
alteration, of a program carried in that signal;
geographical indication means any indication that identifies a good as originating in the territory
of a Party, or a region or locality in that territory, where a particular quality, reputation or other
characteristic of the good is essentially attributable to its geographical origin;
in a manner contrary to honest commercial practices means at least practices such as breach o f
contract, breach of confidence and inducement to breach, and includes the acquisition o f
undisclosed information by other persons who knew, or were grossly negligent in failing to know,
that such practices were involved in the acquisition;
intellectual property rights refers to copyright and related rights, trademark rights, patent
rights, rights in layout designs of semiconductor integrated circuits, trade secret rights, plant
breeders' rights, rights in geographical indications and industrial design rights;
nationals of another Party means, in respect of the relevant intellectual property right, persons
who would meet the criteria for eligibility for protection provided for in the Paris Convention
(1967), the Berne Convention (1971), the Geneva Convention (1971), the International
Convention for the Protection of Performers, Producers of Phonograms and Broadcasting
Organizations (1961), the UPOV Convention (1978), the UPOV Convention (1991) or the
Treaty on Intellectual Property in Respect of Integrated Circuits, as if each Party were a party t o
those Conventions, and with respect to intellectual property rights that are not the subject o f
these Conventions, "nationals of another Party" shall be understood to be at least individuals
who are citizens or permanent residents of that Party and also includes any other natural person
referred to in Annex 201.1 (CountrySpecific Definitions);
public includes, with respect to rights of communication and performance of works provided for
under Articles 11, 11bis(1) and 14(1)(ii) of the Berne Convention, with respect to dramatic,
dramatico-musical, musical and cinematographic works, at least, any aggregation of individuals
intended to be the object of, and capable of perceiving, communications or performances o f
works, regardless of whether they can do so at the same or different times or in the same or
different places, provided that such an aggregation is larger than a family and its immediate
circle of acquaintances or is not a group comprising a limited number of individuals having
similarly close ties that has not been formed for the principal purpose of receiving such
performances and communications of works; and
secondary uses of sound recordings means the use directly for broadcasting or for any other
public communication of a sound recording.
Annex 1701.3
Intellectual Property Conventions
1. Mexico shall:
(a) make every effort to comply with the substantive provisions of the 1978 or 1991 UPOV
Convention as soon as possible and shall do so no later than two years after the date o f
signature of this Agreement; and
(b) accept from the date of entry into force of this Agreement applications from plant breeders
for varieties in all plant genera and species and grant protection, in accordance with such
substantive provisions, promptly after complying with subparagraph (a).
2. Notwithstanding Article 1701(2)(b), this Agreement confers no rights and imposes no

obligations on the United States with respect to Article 6bis of the Berne Convention, or the
rights derived from that Article.
Annex 1705.7
Copyright
The United States shall provide protection to motion pictures produced in another Party's
territory that have been declared to be in the public domain pursuant to 17 U.S.C. section 405.
This obligation shall apply to the extent that it is consistent with the Constitution of the United
States, and is subject to budgetary considerations.
Annex 1710.9
Layout Designs
Mexico shall make every effort to implement the requirements of Article 1710 as soon as
possible, and shall do so no later than four years after the date of entry into force of this
Agreement.
Annex 1718.14
Enforcement of Intellectual Property Rights

Mexico shall make every effort to comply with the requirements of Article 1718 as soon as
possible and shall do so no later than three years after the date of signature of this Agreement.
PART SEVEN: ADMINISTRATIVE AND INSTITUTIONAL PROVISIONS
Chapter Eighteen: Publication, Notification and Administration of Laws
Article 1801: Contact Points
Each Party shall designate a contact point to facilitate communications between the Parties on
any matter covered by this Agreement. On the request of another Party, the contact point shall
identify the office or official responsible for the matter and assist, as necessary, in facilitating
communication with the requesting Party.
Article 1802: Publication
1. Each Party shall ensure that its laws, regulations, procedures and administrative rulings o f
general application respecting any matter covered by this Agreement are promptly published or
otherwise made available in such a manner as to enable interested persons and Parties t o
become acquainted with them.
2. To the extent possible, each Party shall:
(a) publish in advance any such measure that it proposes to adopt; and
(b) provide interested persons and Parties a reasonable opportunity to comment on such
proposed measures.
Article 1803: Notification and Provision of Information
1. To the maximum extent possible, each Party shall notify any other Party with an interest in
the matter of any proposed or actual measure that the Party considers might materially affect
the operation of this Agreement or otherwise substantially affect that other Party's interests
under this Agreement.
2. On request of another Party, a Party shall promptly provide information and respond t o
questions pertaining to any actual or proposed measure, whether or not that other Party has
been previously notified of that measure.
3. Any notification or information provided under this Article shall be without prejudice as t o
whether the measure is consistent with this Agreement.
Article 1804: Administrative Proceedings
With a view to administering in a consistent, impartial and reasonable manner all measures o f
general application affecting matters covered by this Agreement, each Party shall ensure that in
its administrative proceedings applying measures referred to in Article 1802 to particular
persons, goods or services of another Party in specific cases that:
(a) wherever possible, persons of another Party that are directly affected by a proceeding are
provided reasonable notice, in accordance with domestic procedures, when a proceeding is
initiated, including a description of the nature of the proceeding, a statement of the legal
authority under which the proceeding is initiated and a general description of any issues in
controversy;
(b) such persons are afforded a reasonable opportunity to present facts and arguments in
support of their positions prior to any final administrative action, when time, the nature of the
proceeding and the public interest permit; and
(c) its procedures are in accordance with domestic law.
Article 1805: Review and Appeal
1. Each Party shall establish or maintain judicial, quasi-judicial or administrative tribunals or

procedures for the purpose of the prompt review and, where warranted, correction of final
administrative actions regarding matters covered by this Agreement. Such tribunals shall be
impartial and independent of the office or authority entrusted with administrative enforcement
and shall not have any substantial interest in the outcome of the matter.
2. Each Party shall ensure that, in any such tribunals or procedures, the parties to the
proceeding are provided with the right to:
(a) a reasonable opportunity to support or defend their respective positions; and
(b) a decision based on the evidence and submissions of record or, where required by domestic
law, the record compiled by the administrative authority.
3. Each Party shall ensure, subject to appeal or further review as provided in its domestic law,
that such decisions shall be implemented by, and shall govern the practice of, the offices or
authorities with respect to the administrative action at issue.
administrative ruling of general application means an administrative ruling or interpretation that

applies to all persons and fact situations that fall generally within its ambit and that establishes
a norm of conduct but does not include:
(a) a determination or ruling made in an administrative or quasi-judicial proceeding that applies

to a particular person, good or service of another Party in a specific case; or
(b) a ruling that adjudicates with respect to a particular act or practice.

Chapter Nineteen: Review and Dispute Settlement in Antidumping and Countervailing Duty
Matters
Article 1901: General Provisions
1. Article 1904 applies only with respect to goods that the competent investigating authority
of the importing Party, applying the importing Party's antidumping or countervailing duty law t o
the facts of a specific case, determines are goods of another Party.
2. For purposes of Articles 1903 and 1904, panels shall be established in accordance with the
provisions of Annex 1901.2.
3. Except for Article 2203 (Entry into Force), no provision of any other Chapter of this
Agreement shall be construed as imposing obligations on a Party with respect to the Party's
antidumping law or countervailing duty law.
Article 1902: Retention of Domestic Antidumping Law and Countervailing Duty Law
1. Each Party reserves the right to apply its antidumping law and countervailing duty law t o
goods imported from the territory of any other Party. Antidumping law and countervailing duty
law include, as appropriate for each Party, relevant statutes, legislative history, regulations,
administrative practice and judicial precedents.
2. Each Party reserves the right to change or modify its antidumping law or countervailing duty
law, provided that in the case of an amendment to a Party's antidumping or countervailing duty
statute:
(a) such amendment shall apply to goods from another Party only if the amending statute
specifies that it applies to goods from that Party or from the Parties to this Agreement;
(b) the amending Party notifies in writing the Parties to which the amendment applies of the
amending statute as far in advance as possible of the date of enactment of such statute;
(c) following notification, the amending Party, on request of any Party to which the amendment
applies, consults with that Party prior to the enactment of the amending statute; and
(d) such amendment, as applicable to that other Party, is not inconsistent with
(i) the General Agreement on Tariffs and Trade (GATT), the Agreement on Implementation o f
Article VI of the General Agreement on Tariffs and Trade (the Antidumping Code) or the
Agreement on the Interpretation and Application of Articles VI, XVI and XXIII of the General
Agreement on Tariffs and Trade (the Subsidies Code), or any successor agreement to which all
the original signatories to this Agreement are party, or
(ii) the object and purpose of this Agreement and this Chapter, which is to establish fair and
predictable conditions for the progressive liberalization of trade between the Parties to this
Agreement while maintaining effective and fair disciplines on unfair trade practices, such objec t
and purpose to be ascertained from the provisions of this Agreement, its preamble and
objectives, and the practices of the Parties.
Article 1903: Review of Statutory Amendments
1. A Party to which an amendment of another Party's antidumping or countervailing duty

statute applies may request in writing that such amendment be referred to a binational panel
for a declaratory opinion as to whether:
(a) the amendment does not conform to the provisions of Article 1902(2)(d)(i) or (ii); or
(b) such amendment has the function and effect of overturning a prior decision of a panel made
pursuant to Article 1904 and does not conform to the provisions of Article 1902(2)(d)(i) or
(ii).
Such declaratory opinion shall have force or effect only as provided in this Article.
2. The panel shall conduct its review in accordance with the procedures of Annex 1903.2.
3. In the event that the panel recommends modifications to the amending statute to remedy a
non-conformity that it has identified in its opinion:
(a) the two Parties shall immediately begin consultations and shall seek to achieve a mutually
satisfactory solution to the matter within 90 days of the issuance of the panel's final
declaratory opinion. Such solution may include seeking corrective legislation with respect to the
statute of the amending Party;
(b) if corrective legislation is not enacted within nine months from the end of the 90day
consultation period referred to in subparagraph (a) and no other mutually satisfactory solution
has been reached, the Party that requested the panel may
(i) take comparable legislative or equivalent executive action, or
(ii) terminate this Agreement with regard to the amending Party on 60day written notice t o
that Party.
Article 1904: Review of Final Antidumping and Countervailing Duty Determinations
1. As provided in this Article, each Party shall replace judicial review of final antidumping and
countervailing duty determinations with binational panel review.
2. An involved Party may request that a panel review, based on the administrative record, a final
antidumping or countervailing duty determination of a competent investigating authority of an
importing Party to determine whether such determination was in accordance with the
antidumping or countervailing duty law of the importing Party. For this purpose, the
antidumping or countervailing duty law consists of the relevant statutes, legislative history,
regulations, administrative practice and judicial precedents to the extent that a court of the
importing Party would rely on such materials in reviewing a final determination of the competent
investigating authority. Solely for purposes of the panel review provided for in this Article, the
antidumping and countervailing duty statutes of the Parties, as those statutes may be amended
from time to time, are incorporated into and made a part of this Agreement.
3. The panel shall apply the standard of review set out in Annex 1911 and the general legal
principles that a court of the importing Party otherwise would apply to a review of a
determination of the competent investigating authority.
4. A request for a panel shall be made in writing to the other involved Party within 30 days
following the date of publication of the final determination in question in the o fficial journal o f
the importing Party. In the case of final determinations that are not published in the official
journal of the importing Party, the importing Party shall immediately notify the other involved
Party of such final determination where it involves goods from the other involved Party, and the
other involved Party may request a panel within 30 days of receipt of such notice. Where the
competent investigating authority of the importing Party has imposed provisional measures in
an investigation, the other involved Party may provide notice of its intention to request a panel
under this Article, and the Parties shall begin to establish a panel at that time. Failure to request
a panel within the time specified in this paragraph shall preclude review by a panel.
5. An involved Party on its own initiative may request review of a final determination by a panel
and shall, on request of a person who would otherwise be entitled under the law of the
importing Party to commence domestic procedures for judicial review of that final
determination, request such review.
6. The panel shall conduct its review in accordance with the procedures established by the
Parties pursuant to paragraph 14. Where both involved Parties request a panel to review a final
determination, a single panel shall review that determination.
7. The competent investigating authority that issued the final determination in question shall
have the right to appear and be represented by counsel before the panel. Each Party shall
provide that other persons who, pursuant to the law of the importing Party, otherwise would
have had the right to appear and be represented in a domestic judicial review proceeding
concerning the determination of the competent investigating authority, shall have the right t o
appear and be represented by counsel before the panel.
8. The panel may uphold a final determination, or remand it for action not inconsistent with the
panel's decision. Where the panel remands a final determination, the panel shall establish as
brief a time as is reasonable for compliance with the remand, taking into account the complexity
of the factual and legal issues involved and the nature of the panel's decision. In no event shall
the time permitted for compliance with a remand exceed an amount of time equal to the
maximum amount of time (counted from the date of the filing of a petition, complaint or
application) permitted by statute for the competent investigating authority in question to make
a final determination in an investigation. If review of the action taken by the competent
investigating authority on remand is needed, such review shall be before the same panel, which
shall normally issue a final decision within 90 days of the date on which such remand action is
submitted to it.
9. The decision of a panel under this Article shall be binding on the involved Parties with respect
to the particular matter between the Parties that is before the panel.
10. This Agreement shall not affect:
(a) the judicial review procedures of any Party, or
(b) cases appealed under those procedures,
with respect to determinations other than final determinations.
11. A final determination shall not be reviewed under any judicial review procedures of the
importing Party if an involved Party requests a panel with respect to that determination within
the time limits set out in this Article. No Party may provide in its domestic legislation for an
appeal from a panel decision to its domestic courts.
12. This Article shall not apply where:
(a) neither involved Party seeks panel review of a final determination;
(b) a revised final determination is issued as a direct result of judicial review of the original final
determination by a court of the importing Party in cases where neither involved Party sought
panel review of that original final determination; or
(c) a final determination is issued as a direct result of judicial review that was commenced in a
court of the importing Party before the date of entry into force of this Agreement.
13. Where, within a reasonable time after the panel decision is issued, an involved Party alleges
that:
(a) (i) a member of the panel was guilty of gross misconduct, bias, or a serious conflict o f
interest, or otherwise materially violated the rules of conduct,
(ii) the panel seriously departed from a fundamental rule of procedure, or
(iii) the panel manifestly exceeded its powers, authority or jurisdiction set out in this Article, for
example by failing to apply the appropriate standard of review, and
(b) any of the actions set out in subparagraph (a) has materially affected the panel's decision
and threatens the integrity of the binational panel review process,
that Party may avail itself of the extraordinary challenge procedure set out in Annex 1904.13.
14. To implement the provisions of this Article, the Parties shall adopt rules of procedure by
January 1, 1994. Such rules shall be based, where appropriate, on judicial rules of appellate
procedure, and shall include rules concerning: the content and service o f requests for panels; a
requirement that the competent investigating authority transmit to the panel the administrative
record of the proceeding; the protection of business proprietary, government classified, and
other privileged information (including sanctions against persons participating before panels for
improper release of such information); participation by private persons; limitations on panel
review to errors alleged by the Parties or private persons; filing and service; computation and
extensions of time; the form and content of briefs and other papers; pre and posthearing
conferences; motions; oral argument; requests for rehearing; and voluntary terminations o f
panel reviews. The rules shall be designed to result in final decisions within 315 days of the date
on which a request for a panel is made, and shall allow:
(a) 30 days for the filing of the complaint;
(b) 30 days for designation or certification of the administrative record and its filing with the
panel;
(c) 60 days for the complainant to file its brief;
(d) 60 days for the respondent to file its brief;
(e) 15 days for the filing of reply briefs;
(f) 15 to 30 days for the panel to convene and hear oral argument; and
(g) 90 days for the panel to issue its written decision.
15. In order to achieve the objectives of this Article, the Parties shall amend their antidumping
and countervailing duty statutes and regulations with respect to antidumping or countervailing
duty proceedings involving goods of the other Parties, and other statutes and regulations to the
extent that they apply to the operation of the antidumping and countervailing duty laws. In
particular, without limiting the generality of the foregoing, each Party shall:
(a) amend its statutes or regulations to ensure that existing procedures concerning the refund,
with interest, of antidumping or countervailing duties operate to give effect to a final panel
decision that a refund is due;
(b) amend its statutes or regulations to ensure that its courts shall give full force and effect,
with respect to any person within its jurisdiction, to all sanctions imposed pursuant to the laws
of the other Parties to enforce provisions of any protective order or undertaking that such other
Party has promulgated or accepted in order to permit access for purposes of panel review or o f
the extraordinary challenge procedure to confidential, personal, business proprietary or other
privileged information;
(c) amend its statutes or regulations to ensure that
(i) domestic procedures for judicial review of a final determination may not be commenced until
the time for requesting a panel under paragraph 4 has expired, and
(ii) as a prerequisite to commencing domestic judicial review procedures to review a final

determination, a Party or other person intending to commence such procedures shall provide
notice of such intent to the Parties concerned and to other persons entitled to commence such
review procedures of the same final determination no later than 10 days prior to the latest date
on which a panel may be requested; and
(d) make the further amendments set out in its Schedule to Annex 1904.15.
Article 1905: Safeguarding the Panel Review System
1. Where a Party alleges that the application of another Party's domestic law:
(a) has prevented the establishment of a panel requested by the complaining Party;
(b) has prevented a panel requested by the complaining Party from rendering a final decision;
(c) has prevented the implementation of the decision of a panel requested by the complaining
Party or denied it binding force and effect with respect to the particular matter that was before
the panel; or
(d) has resulted in a failure to provide opportunity for review of a final determination by a panel
or court of competent jurisdiction that is independent of the competent investigating
authorities, that examines the basis for the competent investigating authority's determination
and whether the competent investigating authority properly applied domestic antidumping and
countervailing duty law in reaching the challenged determination, and that employs the relevant
standard of review identified in Article 1911,
the Party may request in writing consultations with the other Party regarding the allegations.
The consultations shall begin within 15 days of the date of the request.
2. If the matter has not been resolved within 45 days of the request for consultations, or such
other period as the consulting Parties may agree, the complaining Party may request the
establishment of a special committee.
3. Unless otherwise agreed by the disputing Parties, the special committee shall be established
within 15 days of a request and perform its functions in a manner consistent with this Chapter.
4. The roster for special committees shall be that established under Annex 1904.13.
5. The special committee shall comprise three members selected in accordance with the
procedures set out in Annex 1904.13.
6. The Parties shall establish rules of procedure in accordance with the principles set out in
Annex 1905.6.
7. Where the special committee makes an affirmative finding with respect to one of the grounds
specified in paragraph 1, the complaining Party and the Party complained against shall begin
consultations within 10 days thereafter and shall seek to achieve a mutually satisfactory
solution within 60 days of the issuance of the committee's report.
8. If, within the 60day period, the Parties are unable to reach a mutually satisfactory solution t o
the matter, or the Party complained against has not demonstrated to the satisfaction of the
special committee that it has corrected the problem or problems with respect to which the
committee has made an affirmative finding, the complaining Party may suspend:
(a) the operation of Article 1904 with respect to the Party complained against; or
(b) the application to the Party complained against of such benefits under this Agreement as
may be appropriate under the circumstances.
If the complaining Party decides to take action under this paragraph, it shall do so within 3 0
days after the end of the 60day consultation period.
9. In the event that a complaining Party suspends the operation of Article 1904 with respect t o
the Party complained against, the latter Party may reciprocally suspend the operation of Article
1904 within 30 days after the suspension of the operation of Article 1904 by the complaining
Party. If either Party decides to suspend the operation of Article 1904, it shall provide written
notice of such suspension to the other Party.
10. At the request of the Party complained against, the special committee shall reconvene t o
determine whether:
(a) the suspension of benefits by the complaining Party pursuant to paragraph 8(b) is
manifestly excessive; or
(b) the Party complained against has corrected the problem or problems with respect to which
the committee has made an affirmative finding.
The special committee shall, within 45 days of the request, present a report to both Parties
containing its determination. Where the special committee determines that the Party
complained against has corrected the problem or problems, any suspension effected by the
complaining Party or the Party complained against, or both, pursuant to paragraph 8 or 9 shall
be terminated.
11. If the special committee makes an affirmative finding with respect to one of the grounds
specified in paragraph 1, then effective as of the day following the date of issuance of the
special committee's report:
(a) binational panel or extraordinary challenge committee review under Article 1904 shall be
stayed
(i) in the case of review of any final determination of the complaining Party requested by the
Party complained against, if such review was requested after the date on which consultations
were requested pursuant to paragraph 1, and in no case more than 150 days prior to an
affirmative finding by the special committee, or
(ii) in the case of review of any final determination of the Party complained against requested
by the complaining Party, at the request of the complaining Party; and
(b) the time set out in Article 1904(4) or Annex 1904.13 for requesting panel or committee
review shall not run unless and until resumed in accordance with paragraph 12.
12. If either Party suspends the operation of Article 1904 pursuant to paragraph 8(a), the panel
or committee review stayed under paragraph 11(a) shall be terminated and the challenge to the
final determination shall be irrevocably referred to the appropriate domestic court for decision,
as provided below:
(a) in the case of review of any final determination of the complaining Party requested by the
Party complained against, at the request of either Party, or of a party to the panel review under
Article 1904; or
(b) in the case of review of any final determination of the Party complained against requested
by the complaining Party, at the request of the complaining Party, or of a person of the
complaining Party that is a party to the panel review under Article 1904.
If either Party suspends the operation of Article 1904 pursuant to paragraph 8(a), any running
of time suspended under paragraph 11(b) shall resume.
If the suspension of the operation of Article 1904 does not become effective, panel or
committee review stayed under paragraph 11(a), and any running of time suspended under
paragraph 11(b), shall resume.
13. If the complaining Party suspends the application to the Party complained against of such
benefits under the Agreement as may be appropriate under the circumstances pursuant t o
paragraph 8(b), panel or committee review stayed under paragraph 11(a), and any running o f
time suspended under paragraph 11(b), shall resume.
14. Each Party shall provide in its domestic legislation that, in the event of an affirmative finding
by the special committee, the time for requesting judicial review of a final antidumping or
countervailing duty determination shall not run unless and until the Parties concerned have
negotiated a mutually satisfactory solution under paragraph 7, have suspended the operation o f
Article 1904 or the application of other benefits under paragraph 8.
Article 1906: Prospective Application
This Chapter shall apply only prospectively to:
(a) final determinations of a competent investigating authority made after the date of entry
into force of this Agreement; and
(b) with respect to declaratory opinions under Article 1903, amendments to antidumping or
countervailing duty statutes enacted after the date of entry into force of this Agreement.

1. The Parties shall consult annually, or on the request of any Party, to consider any problems
that may arise with respect to the implementation or operation of this Chapter and recommend
solutions, where appropriate. The Parties shall each designate one or more officials, including
officials of the competent investigating authorities, to be responsible for ensuring that
consultations occur, when required, so that the provisions of this Chapter are carried out
expeditiously.
2. The Parties further agree to consult on:
(a) the potential to develop more effective rules and disciplines concerning the use o f
government subsidies; and
(b) the potential for reliance on a substitute system of rules for dealing with unfair transborder
pricing practices and government subsidization.
3. The competent investigating authorities of the Parties shall consult annually, or on the
request of any Party, and may submit reports to the Commission, where appropriate. In the
context of these consultations, the Parties agree that it is desirable in the administration o f
antidumping and countervailing duty laws to:
(a) publish notice of initiation of investigations in the importing Party's official journal, setting
forth the nature of the proceeding, the legal authority under which the proceeding is initiated,
and a description of the goods at issue;
(b) provide notice of the times for submissions of information and for decisions that the
competent investigating authorities are expressly required by statute or regulations to make;
(c) provide explicit written notice and instructions as to the information required from
interested parties and reasonable time to respond to requests for information;
(d) accord reasonable access to information, noting that in this context

(i) "reasonable access" means access during the course of the investigation, to the extent
practicable, so as to permit an opportunity to present facts and arguments as set out in
paragraph (e); when it is not practicable to provide access to information during the
investigation in such time as to permit an opportunity to present facts and arguments,
reasonable access shall mean in time to permit the adversely affected party to make an
informed decision as to whether to seek judicial or panel review, and
(ii) "access to information" means access to representatives determined by the competent

investigating authority to be qualified to have access to information received by that
competent investigating authority, including access to confidential (business proprietary)
information, but does not include information of such high degree of sensitivity that its release
would lead to substantial and irreversible harm to the owner or which is required to be kept
confidential in accordance with domestic law of a Party; any privileges arising under the
domestic law of the importing Party relating to communications between the competent
investigating authorities and a lawyer in the employ of, or providing advice to, those authorities
may be maintained;
(e) provide an opportunity for interested parties to present facts and arguments, to the extent
time permits, including an opportunity to comment on the preliminary determination of dumping
or of subsidization;
(f) protect confidential (business proprietary) information received by the competent

investigating authority to ensure that there is no disclosure except to representatives
determined by the competent investigating authority to be qualified;
(g) prepare administrative records, including recommendations of official advisory bodies that
may be required to be kept, and any record of ex parte meetings that may be required to be
kept;
(h) provide disclosure of relevant information, including an explanation of the calculation or the
methodology used to determine the margin of dumping or the amount of the subsidy, on which
any preliminary or final determination of dumping or of subsidization is based, within a
reasonable time after a request by interested parties;
(i) provide a statement of reasons concerning the final determination of dumping or

subsidization; and
(j) provide a statement of reasons for final determinations concerning material injury to a
domestic industry, threat of material injury to a domestic industry or material retardation of the
establishment of such an industry.
Inclusion of an item in subparagraphs (a) through (j) is not intended to serve as guidance to a
binational panel reviewing a final antidumping or countervailing duty determination pursuant t o
Article 1904 in determining whether such determination was in accordance with the
antidumping or countervailing duty law of the importing Party.
Article 1908: Special Secretariat Provisions
1. Each Party shall establish a division within its section of the Secretariat established pursuant
to Article 2002 to facilitate the operation of this Chapter, including the work of panels or
committees that may be convened pursuant to this Chapter.
2. The Secretaries of the Secretariat shall act jointly to provide administrative assistance to all
panels or committees established pursuant to this Chapter. The Secretary for the Section of the
Party in which a panel or committee proceeding is held shall prepare a record thereof and shall
preserve an authentic copy of the same in that Party's Section office. Such Secretary shall, on
request, provide to the Secretary for the Section of any other Party a copy of such portion o f
the record as is requested, except that only public portions of the record shall be provided t o
the Secretary for the Section of any Party that is not an involved Party.
3. Each Secretary shall receive and file all requests, briefs and other papers properly presented
to a panel or committee in any proceeding before it that is instituted pursuant to this Chapter
and shall number in numerical order all requests for a panel or committee. The number given t o
a request shall be the file number for briefs and other papers relating to such request.
4. The Secretary for the Section of the Party in which a panel or committee proceeding is held
shall forward to the Secretary for the Section of the other involved Party copies of all official
letters, documents or other papers received or filed with that Party's Section office pertaining
to any proceeding before a panel or committee, except for the administrative record, which
shall be handled in accordance with paragraph 2. The Secretary for the Section of an involved
Party shall provide on request to the Secretary for the Section of a Party that is not an involved
Party in the proceeding a copy of such public documents as are requested.
Article 1909: Code of Conduct
The Parties shall, by the date of entry into force of this Agreement, exchange letters
establishing a code of conduct for panelists and members of committees established pursuant
to Articles 1903, 1904 and 1905.
Article 1910: Miscellaneous
On request of another Party, the competent investigating authority of a Party shall provide t o
the other Party copies of all public information submitted to it for purposes of an antidumping
or countervailing duty investigation with respect to goods of that other Party.
administrative record means, unless otherwise agreed by the Parties and the other persons
appearing before a panel:
(a) all documentary or other information presented to or obtained by the competent

investigating authority in the course of the administrative proceeding, including any
governmental memoranda pertaining to the case, and including any record of ex parte meetings
as may be required to be kept;
(b) a copy of the final determination of the competent investigating authority, including reasons
for the determination;
(c) all transcripts or records of conferences or hearings before the competent investigating
authority; and
(d) all notices published in the official journal of the importing Party in connection with the
administrative proceeding;
antidumping statute as referred to in Articles 1902 and 1903 means "antidumping statute" o f
a Party as defined in Annex 1911;
competent investigating authority means "competent investigating authority" of a Party as

defined in Annex 1911;
countervailing duty statute as referred to in Articles 1902 and 1903 means "countervailing
duty statute" of a Party as defined in Annex 1911;
domestic law f or purposes of Article 1905(1) means a Party's constitution, statutes,

regulations and judicial decisions to the extent they are relevant to the antidumping and
countervailing duty laws;
final determination means "final determination" of a Party as defined in Annex 1911;
foreign interests includes exporters or producers of the Party whose goods are the subject o f
the proceeding or, in the case of a countervailing duty proceeding, the government of the Party
whose goods are the subject of the proceeding;
general legal principles includes principles such as standing, due process, rules of statutory
construction, mootness and exhaustion of administrative remedies;
goods of a Party means domestic products as these are understood in the General Agreement
on Tariffs and Trade;
importing Party means the Party that issued the final determination;
interested parties includes foreign interests;
involved Party means:
(a) the importing Party; or
(b) a Party whose goods are the subject of the final determination;
remand means a referral back for a determination not inconsistent with the panel or committee
decision; and
standard of review means the "standard of review" for each Party as defined in Annex 1911.
Annex 1901.2
Establishment of Binational Panels
1. On the date of entry into force of this Agreement, the Parties shall establish and thereafter
maintain a roster of individuals to serve as panelists in disputes under this Chapter. The roster
shall include judges or former judges to the fullest extent practicable. The Parties shall consult
in developing the roster, which shall include at least 75 candidates. Each Party shall select a t
least 25 candidates, and all candidates shall be citizens of Canada, Mexico or the United States.
Candidates shall be of good character, high standing and repute, and shall be chosen strictly on
the basis of objectivity, reliability, sound judgment and general familiarity with international
trade law. Candidates shall not be affiliated with a Party, and in no event shall a candidate take
instructions from a Party. The Parties shall maintain the roster, and may amend it, when
necessary, after consultations.
2. A majority of the panelists on each panel shall be lawyers in good standing. Within 30 days o f
a request for a panel, each involved Party shall appoint two panelists, in consultation with the
other involved Party. The involved Parties normally shall appoint panelists from the roster. If a
panelist is not selected from the roster, the panelist shall be chosen in accordance with and be
subject to the criteria of paragraph 1. Each involved Party shall have the right to exercise four
peremptory challenges, to be exercised simultaneously and in confidence, disqualifying from
appointment to the panel up to four candidates proposed by the other involved Party.
Peremptory challenges and the selection of alternative panelists shall occur within 45 days o f
the request for the panel. If an involved Party fails to appoint its members to a panel within 3 0
days or if a panelist is struck and no alternative panelist is selected within 45 days, such
panelist shall be selected by lot on the 31st or 46th day, as the case may be, from that Party's
candidates on the roster.
3. Within 55 days of the request for a panel, the involved Parties shall agree on the selection o f
a fifth panelist. If the involved Parties are unable to agree, they shall decide by lot which o f
them shall select, by the 61st day, the fifth panelist from the roster, excluding candidates
eliminated by peremptory challenges.
4. On appointment of the fifth panelist, the panelists shall promptly appoint a chairman from
among the lawyers on the panel by majority vote of the panelists. If there is no majority vote,
the chairman shall be appointed by lot from among the lawyers on the panel.
5. Decisions of the panel shall be by majority vote and based on the votes of all members of the
panel. The panel shall issue a written decision with reasons, together with any dissenting or
concurring opinions of panelists.
6. Panelists shall be subject to the code of conduct established pursuant to Article 1909. If an
involved Party believes that a panelist is in violation of the code of conduct, the involved Parties
shall consult and if they agree, the panelist shall be removed and a new panelist shall be
selected in accordance with the procedures of this Annex.
7. When a panel is convened pursuant to Article 1904 each panelist shall be required to sign:
(a) an application for protective order for information supplied by the United States or its
persons covering business proprietary and other privileged information;
(b) an undertaking for information supplied by Canada or its persons covering confidential,
personal, business proprietary and other privileged information; or
(c) an undertaking for information supplied by Mexico or its persons covering confidential,
business proprietary and other privileged information.
8. On a panelist's acceptance of the obligations and terms of an application for protective order
or disclosure undertaking, the importing Party shall grant access to the information covered by
such order or disclosure undertaking. Each Party shall establish appropriate sanctions for
violations of protective orders or disclosure undertakings issued by or given to any Party. Each
Party shall enforce such sanctions with respect to any person within its jurisdiction. Failure by a
panelist to sign an application for a protective order or disclosure undertaking shall result in
disqualification of the panelist.
9. If a panelist becomes unable to fulfill panel duties or is disqualified, proceedings of the panel
shall be suspended pending the selection of a substitute panelist in accordance with the
procedures of this Annex.
10. Subject to the code of conduct established pursuant to Article 1909, and provided that i t
does not interfere with the performance of the duties of such panelist, a panelist may engage in
other business during the term of the panel.
11. While acting as a panelist, a panelist may not appear as counsel before another panel.
12. With the exception of violations of protective orders or disclosure undertakings, signed
pursuant to paragraph 7, panelists shall be immune from suit and legal process relating to acts
performed by them in their official capacity.
Annex 1903.2
Panel Procedures Under Article 1 9 0 3
1. The panel shall establish its own rules of procedure unless the Parties otherwise agree prior
to the establishment of that panel. The procedures shall ensure a right to at least one hearing
before the panel, as well as the opportunity to provide written submissions and rebuttal
arguments. The proceedings of the panel shall be confidential, unless the two Parties otherwise
agree. The panel shall base its decisions solely on the arguments and submissions of the t w o
Parties.
2. Unless the Parties to the dispute otherwise agree, the panel shall, within 90 days after its
chairman is appointed, present to the two Parties an initial written declaratory opinion
containing findings of fact and i ts determination pursuant to Article 1903.
3. If the findings of the panel are affirmative, the panel may include in its report its
recommendations as to the means by which the amending statute could be brought into
conformity with the provisions of Article 1902(2)(d). In determining what, if any,
recommendations are appropriate, the panel shall consider the extent to which the amending
statute affects interests under this Agreement. Individual panelists may provide separate
opinions on matters not unanimously agreed. The initial opinion of the panel shall become the
final declaratory opinion, unless a Party to the dispute requests a reconsideration of the initial
opinion pursuant to paragraph 4.
4. Within 14 days of the issuance of the initial declaratory opinion, a Party to the dispute
disagreeing in whole or in part with the opinion may present a written statement of its
objections and the reasons for those objections to the panel. In such event, the panel shall
request the views of both Parties and shall reconsider its initial opinion. The panel shall conduct
any further examination that it deems appropriate, and shall issue a final written opinion,
together with dissenting or concurring views of individual panelists, within 30 days of the
request for reconsideration.
5. Unless the Parties to the dispute otherwise agree, the final declaratory opinion of the panel
shall be made public, along with any separate opinions of individual panelists and any written
views that either Party may wish to be published.
6. Unless the Parties to the dispute otherwise agree, meetings and hearings of the panel shall
take place at the office of the amending Party's Section of the Secretariat.
Annex 1904.13
Extraordinary Challenge Procedure
1. The involved Parties shall establish an extraordinary challenge committee, composed of three
members, within 15 days of a request pursuant to Article 1904(13). The members shall be
selected from a 15-person roster comprised of judges or former judges of a federal judicial
court of the United States or a judicial court of superior jurisdiction of Canada, or a federal
judicial court of Mexico. Each Party shall name five persons to this roster. Each involved Party
shall select one member from this roster and the involved Parties shall decide by lot which o f
them shall select the third member from the roster.
2. The Parties shall establish by the date of entry into force of the Agreement rules o f
procedure for committees. The rules shall provide for a decision of a committee within 90 days
of its establishment.
3. Committee decisions shall be binding on the Parties with respect to the particular matter
between the Parties that was before the panel. After examination of the legal and factual
analysis underlying the findings and conclusions of the panel's decision in order to determine
whether one of the grounds set out in Article 1904(13) has been established, and on finding
that one of those grounds has been established, the committee shall vacate the original panel
decision or remand it to the original panel for action not inconsistent with the committee's
decision; if the grounds are not established, it shall deny the challenge and, therefore, the
original panel decision shall stand affirmed. If the original decision is vacated, a new panel shall
be established pursuant to Annex 1901.2.
Annex 1904.15
Amendments to Domestic Laws
Schedule of Canada
1. Canada shall amend sections 56 and 58 of the Special Import Measures Act , as amended, t o
allow the United States with respect to goods of the United States or Mexico with respect t o
goods of Mexico or a United States or a Mexican manufacturer, producer, or exporter, without
regard to payment of duties, to make a written request for a redetermination; and section 59 t o
require the Deputy Minister to make a ruling on a request for a redetermination within one year
of a request to a designated officer or other customs officer.
2. Canada shall amend section 18.3(1) of the Federal Court Act , as amended, to render that
section inapplicable to the United States and to Mexico; and shall provide in its statutes or
regulations that persons (including producers of goods subject to an investigation) have
standing to ask Canada to request a panel review where such persons would be entitled t o
commence domestic procedures for judicial review if the final determination were reviewable by
the Federal Court pursuant to section 18.1(4).
3. Canada shall amend the Special Import Measures Act , as amended, and any other relevant
provisions of law, to provide that the following actions of the Deputy Minister shall be deemed
for the purposes of this Article to be final determinations subject to judicial review:
(a) a determination by the Deputy Minister pursuant to section 41;
(b) a redetermination by the Deputy Minister pursuant to section 59; and
(c) a review by the Deputy Minister of an undertaking pursuant to section 53(1).
4. Canada shall amend Part II of the Special Import Measures Act , as amended, to provide for
binational panel review respecting goods of Mexico and the United States.
definitions related to this Chapter, as may be required.
6. Canada shall amend Part II of the Special Import Measures Act , as amended, to permit the
governments of Mexico and the United States to request binational panel review of final
determinations respecting goods of Mexico and the United States.
the establishment of binational panels requested to review final determinations in respect o f
goods of Mexico and the United States.
8. Canada shall amend Part II of the Special Import Measures Act , as amended, to provide that
binational panel review of a final determination shall be conducted in accordance with this
Chapter.
9. Canada shall amend Part II of the Special Import Measures Act , as amended, to provide that
an extraordinary challenge proceeding shall be requested and conducted in accordance with
Article 1904 and Annex 1904.13.
10. Canada shall amend Part II of the Special Import Measures Act , as amended, to provide for a
code of conduct, immunity for anything done or omitted to be done during the course of panel
proceedings, the signing of and compliance with disclosure undertakings respecting confidential
information, and remuneration for members of panels and committees established pursuant t o
this Chapter.
11. Canada shall make such amendments as are necessary to establish a Canadian Secretariat
for this Agreement and generally to facilitate the operation of this Chapter and the work of the
binational panels, extraordinary challenge committees and special committees convened under
this Chapter.
Schedule of Mexico
Mexico shall amend its antidumping and countervailing duty statutes and regulations, and other
statutes and regulations to the extent that they apply to the operation of the antidumping and
countervailing duty laws, to provide the following:
(a) elimination of the possibility of imposing duties within the fiveday period after the
acceptance of a petition;
(b) substitution of the term Initial Resolution ("Resolución de Inicio") for the term Provisional
Resolution ("Resolución Provisional") and the term Provisional Resolution ("Resolución
Provisional ") for the term Resolution Reviewing the Provisional Resolution ("Resolución que
revisa a la Resolución Provisional");
(c) full participation in the administrative process for interested parties, as well as the right t o
administrative appeal and judicial review of final determinations of investigations, reviews,
product coverage or other final decisions affecting them;
(d) elimination of the possibility of imposing provisional duties before the issuance of a
preliminary determination;
(e) the right to immediate access to review of final determinations by binational panels for
interested parties, without the need to exhaust first the administrative appeal;
(f) explicit and adequate timetables for determinations of the competent investigating authority
and for the submission of questionnaires, evidence and comments by interested parties, as well
as an opportunity for them to present facts and arguments in support of their positions prior t o
any final determination, to the extent time permits, including an opportunity to be adequately
informed in a timely manner of and to comment on all aspects of preliminary determinations o f
dumping or subsidization;
(g) written notice to interested parties of any of the actions or resolutions rendered by the
competent investigating authority, including initiation of an administrative review as well as its
conclusion;
(h) disclosure meetings with interested parties by the competent investigating authority
conducting its investigations and reviews, within seven calendar days after the date o f
publication in the Federal Official Journal ("Diario Oficial de la Federación") of preliminary and
final determinations, to explain the margins of dumping and the amount of subsidies calculations
and to provide the interested parties with copies of sample calculations and, if used, computer
programs;
(i) timely access by eligible counsel of interested parties during the course of the proceeding
(including disclosure meetings) and on appeal, either before a national tribunal or a panel, to all
information contained in the administrative record of the proceeding, including confidential
information, excepting proprietary information of such a high degree of sensitivity that its
release would lead to substantial and irreversible harm to the owner as well as government
classified information, subject to an undertaking for confidentiality that strictly forbids use o f
the information for personal benefit and its disclosure to persons who are not authorized t o
receive such information; and for sanctions that are specific to violations of undertakings in
proceedings before national tribunals or panels;
(j) timely access by interested parties during the course of the proceeding, to all non-
confidential information contained in the administrative record and access to such information
by interested parties or their representatives in any proceeding after 90 days following the
issuance of the final determination;
(k) a mechanism requiring that any person submitting documents to the competent
investigating authority shall simultaneously serve on interested persons, including foreign
interests, any submissions after the complaint;
(l) preparation of summaries of ex parte meetings held between the competent investigating
authority and any interested party and the inclusion in the administrative record of such
summaries, which shall be made available to parties to the proceeding; if such summaries
contain business proprietary information, the documents must be disclosed to a party's
representative under an undertaking to ensure confidentiality;
(m) maintenance by the competent investigating authority of an administrative record as

defined in this Chapter and a requirement that the final determination be based solely on the
administrative record;
(n) informing interested parties in writing of all data and information the administering authority
requires them to submit for the investigation, review, product coverage proceeding, or other
antidumping or countervailing duty proceeding;
(o) the right to an annual individual review on request by the interested parties through which
they can obtain their own dumping margin or countervailing duty rate, or can change the margin
or rate they received in the investigation or a previous review, reserving to the competent
investigating authority the ability to initiate a review, at any time, on its own motion and
requiring that the competent investigating authority issue a notice of initiation within a
reasonable period of time after the request;
(p) application of determinations issued as a result of judicial, administrative, or panel review, t o

the extent they are relevant to interested parties in addition to the plaintiff, so that all
interested parties will benefit;
(q) issuance of binding decisions by the competent investigating authority if an interested party
seeks clarification outside the context of an antidumping or countervailing duty investigation or
review with respect to whether a particular product is covered by an antidumping or
countervailing duty order;
(r) a detailed statement of reasons and the legal basis for final determinations in a manner
sufficient to permit interested parties to make an informed decision as to whether to seek
judicial or panel review, including an explanation of methodological or policy issues raised in the
calculation of dumping or subsidization;
(s) written notice to interested parties and publication in the Federal Official Journal ("Diario
Oficial de la Federación") of initiation of investigations setting forth the nature of the
proceeding, the legal authority under which the proceeding is initiated, and a description of the
product at issue;
(t) documentation in writing of all advisory bodies' decisions or recommendations, including the
basis for the decisions, and release of such written decisions to parties to the proceeding; all
decisions or recommendations of any advisory body shall be placed in the administrative record
and made available to parties to the proceeding; and
(u) a standard of review to be applied by binational panels as set out in subparagraph (c) of the
definition of "standard of review" in Annex 1911.
1. The United States shall amend section 301 of the Customs Courts Act of 1980, as amended,
and any other relevant provisions of law, to eliminate the authority to issue declaratory
judgments in any civil action involving an antidumping or countervailing duty proceeding
regarding a class or kind of Canadian or Mexican merchandise.
2. The United States shall amend section 405(a) of the United States-Canada Free-Trade
Agreement Implementation Act of 1988, to provide that the interagency group established
under section 242 of the Trade Expansion Act of 1962 shall prepare a list of individuals qualified
to serve as members of binational panels, extraordinary challenge committees and special
committees convened under this Chapter.
3. The United States shall amend section 405(b) of the United States-Canada Free-Trade
Agreement Implementation Act of 1988, to provide that panelists selected to serve on panels
or committees convened pursuant to this Chapter, and individuals designated to assist such
appointed individuals, shall not be considered employees of the United States.
4. The United States shall amend section 405(c) of the United States-Canada Free-Trade
Agreement Implementation Act of 1988, to provide that panelists selected to serve on panels
or committees convened pursuant to this Chapter, and individuals designated to assist the
individuals serving on such panels or committees, shall be immune from suit and legal process
relating to acts performed by such individuals in their official capacity and within the scope o f
their functions as such panelists or committee members, except with respect to the violation o f
protective orders described in section 777f(d)(3) of the Tariff Act of 1930, as amended.
5. The United States shall amend section 405(d) of the United States-Canada Free-Trade
Agreement Implementation Act of 1988, to establish a United States Secretariat to facilitate
the operation of this Chapter and the work of the binational panels, extraordinary challenge
committees and special committees convened under this Chapter.
6. The United States shall amend section 407 of the United States-Canada Free-Trade
Agreement Implementation Act of 1988, to provide that an extraordinary challenge committee
convened pursuant to Article 1904 and Annex 1904.13 shall have authority to obtain
information in the event of an allegation that a member of a binational panel was guilty of gross
misconduct, bias, or a serious conflict of interest, or otherwise materially violated the rules o f
conduct, and for the committee to summon the attendance of witnesses, order the taking o f
depositions and obtain the assistance of any district or territorial court of the United States in
aid of the committee's investigation.
7. The United States shall amend section 408 of the United States-Canada Free-Trade
Agreement Implementation Act of 1988, to provide that, in the case of a final determination o f
a competent investigating authority of Mexico, as well as Canada, the filing with the United
States Secretary of a request for binational panel review by a person described in Article
1904(5) shall be deemed, on receipt of the request by the Secretary, to be a request for
binational panel review within the meaning of Article 1904(4).
8. The United States shall amend section 516A of the Tariff Act of 1930, as amended, t o
provide that judicial review of antidumping or countervailing duty cases regarding Mexican, as
well as Canadian, merchandise shall not be commenced in the Court of International Trade i f
binational panel review is requested.
9. The United States shall amend section 516A(a) of the Tariff Act of 1930 , as amended, t o
provide that the time limits for commencing an action in the Court of International Trade with
regard to antidumping or countervailing duty proceedings involving Mexican or Canadian
merchandise shall not begin to run until the 31st day after the date of publication in the Federal
Register of notice of the final determination or the antidumping duty order.
10. The United States shall amend section 516A(g) of the Tariff Act of 1930 , as amended, t o
provide, in accordance with the terms of this Chapter, for binational panel review of antidumping
and countervailing duty cases involving Mexican or Canadian merchandise. Such amendment
shall provide that if binational panel review is requested such review will be exclusive.
11. The United States shall amend section 516A(g) of the Tariff Act of 1930 , as amended, t o
provide that the competent investigating authority shall, within the period specified by any
panel formed to review a final determination regarding Mexican or Canadian merchandise, take
action not inconsistent with the decision of the panel or committee.
12. The United States shall amend section 777 of the Tariff Act of 1930, as amended, t o
provide for the disclosure to authorized persons under protective order of proprietary
information in the administrative record, if binational panel review of a final determination
regarding Mexican or Canadian merchandise is requested.
13. The United States shall amend section 777 of the Tariff Act of 1930, as amended, t o
provide for the imposition of sanctions on any person who the competent investigating
authority finds to have violated a protective order issued by the competent investigating
authority of the United States or disclosure undertakings entered into with an authorized
agency of Mexico or with a competent investigating authority of Canada to protect proprietary
material during binational panel review.
Annex 1905.6
Special Committee Procedures
The Parties shall establish rules of procedure by the date of entry into force of this Agreement
in accordance with the following principles:
(a) the procedures shall assure a right to at least one hearing before the special committee as
well as the opportunity to provide initial and rebuttal written submissions;
(b) the procedures shall assure that the special committee shall prepare an initial report
typically within 60 days of the appointment of the last member, and shall afford the Parties 1 4
days to comment on that report prior to issuing a final report 30 days after presentation of the
initial report;
(c) the special committee's hearings, deliberations, and initial report, and all written submissions
to and communications with the special committee shall be confidential;
(d) unless the Parties to the dispute otherwise agree, the decision of the special committee
shall be published 10 days after it is transmitted to the disputing Parties, along with any
separate opinions of individual members and any written views that either Party may wish to be
published; and
(e) unless the Parties to the dispute otherwise agree, meetings and hearings of the special
committee shall take place at the office of the Section of the Secretariat of the Party
complained against.
Annex 1 9 1 1
CountrySpecific Definitions
antidumping statute means:
(a) in the case of Canada, the relevant provisions of the Special Import Measures Act , as
amended, and any successor statutes;
(b) in the case of the United States, the relevant provisions of Title VII of the Tariff Act o f
1930 , as amended, and any successor statutes;
(c) in the case of Mexico, the relevant provisions of the Foreign Trade Act Implementing Article
131 of the Constitution of the United Mexican States ("Ley Reglamentaria del Artículo 131 de la
Constitución Política de los Estados Unidos Mexicanos en Materia de Comercio Exterior"), as
amended, and any successor statutes; and
(d) the provisions of any other statute that provides for judicial review of final determinations
under subparagraph (a), (b) or (c), or indicates the standard of review to be applied to such
determinations;
competent investigating authority means:
(a) in the case of Canada (i) the Canadian International Trade Tribunal, or its successor, or (ii)
the Deputy Minister of National Revenue for Customs and Excise as defined in the Special Import
Measures Act , as amended, or the Deputy Minister's successor;
(b) in the case of the United States
(i) the International Trade Administration of the United States Department of Commerce, or its
successor, or
(ii) the United States International Trade Commission, or its successor; and
(c) in the case of Mexico, the designated authority within the Secretariat of Trade and Industrial
Development ("Secretaría de Comercio y Fomento Industrial"), or its successor;
countervailing duty statute means:
(a) in the case of Canada, the relevant provisions of the Special Import Measures Act , as
amended, and any successor statutes;
(b) in the case of the United States, section 303 and the relevant provisions of Title VII of the
Tariff Act of 1930 , as amended, and any successor statutes;
(c) in the case of Mexico, the relevant provisions of the Foreign Trade Act Implementing Article
131 of the Constitution of the United Mexican States ("Ley Reglamentaria del Artículo 131 de la
Constitución Política de los Estados Unidos Mexicanos en Materia de Comercio Exterior"), as
amended, and any successor statutes; and
(d) the provisions of any other statute that provides for judicial review of final determinations
under subparagraph (a), (b) or (c), or indicates the standard of review to be applied to such
determinations;
final determination means:
(a) in the case of Canada,
(i) an order or finding of the Canadian International Trade Tribunal under subsection 43(1) o f
the Special Import Measures Act,
(ii) an order by the Canadian International Trade Tribunal under subsection 76(4) of the Special
Import Measures Act , as amended, continuing an order or finding made under subsection 4 3 (1 )
of the Act with or without amendment,
(iii) a determination by the Deputy Minister of National Revenue for Customs and Excise
pursuant to section 41 of the Special Import Measures Act , as amended,
(iv) a redetermination by the Deputy Minister pursuant to section 59 of the Special Import
Measures Act , as amended,
(v) a decision by the Canadian International Trade Tribunal pursuant to subsection 76(3) of the
Special Import Measures Act , as amended, not to initiate a review,
(vi) a reconsideration by the Canadian International Trade Tribunal pursuant to subsection 9 1 ( 3 )

of the Special Import Measures Act , as amended, and
(vii) a review by the Deputy Minister of an undertaking pursuant to subsection 53(1) of the
Special Import Measures Act , as amended;
(b) in the case of the United States,
(i) a final affirmative determination by the International Trade Administration of the United
States Department of Commerce or by the United States International Trade Commission under
section 705 or 735 of the Tariff Act of 1930, as amended, including any negative part of such
a determination,
(ii) a final negative determination by the International Trade Administration of the United States
Department of Commerce or by the United States International Trade Commission under section
705 or 735 of the Tariff Act of 1930 , as amended, including any affirmative part of such a
determination,
(iii) a final determination, other than a determination in (iv), under section 751 of the Tariff A c t
of 1930, as amended,
(iv) a determination by the United States International Trade Commission under section 751(b)
of the Tariff Act of 1930 , as amended, not to review a determination based on changed
circumstances, and
(v) a final determination by the International Trade Administration of the United States
Department of Commerce as to whether a particular type of merchandise is within the class or
kind of merchandise described in an existing finding of dumping or antidumping or countervailing
duty order; and
(c) in the case of the Mexico,
(i) a final resolution regarding antidumping or countervailing duties investigations by the

Secretar a de Comercio y Fomento Industrial ("Secretariat of Trade and Industrial
Development"), pursuant to Article 13 of the Ley Reglamentaria del Artículo 131 de la
Constitución Política de los Estados Unidos Mexicanos en Materia de Comercio Exterior ( "Foreign
Trade Act Implementing Article 131 of the Constitution of the United Mexican States "), as
amended,
(ii) a final resolution regarding an annual administrative review of antidumping or countervailing
duties by the Secretariat of Trade and Industrial Development ("Secretaría de Comercio y
Fomento Industrial"), as described in paragraph (o) of its Schedule to Annex 1904.15, and
(iii) a final resolution by the Secretariat of Trade and Industrial Development ("Secretaría de
Comercio y Fomento Industrial"), as to whether a particular type of merchandise is within the
class or kind of merchandise described in an existing antidumping or countervailing duty
resolution; and
standard of review means the following standards, as may be amended from time to time by the
relevant Party:
(a) in the case of Canada, the grounds set out in subsection 18.1(4) of the Federal Court Act ,
as amended, with respect to all final determinations;
(b) in the case of the United States,
(i) the standard set out in section 516A(b)(l)(B) of the Tariff Act of 1930 , as amended, with
the exception of a determination referred to in (ii), and
(ii) the standard set out in section 516A(b)(l)(A) of the Tariff Act of 1930, as amended, with
respect to a determination by the United States International Trade Commission not to initiate a
review pursuant to section 751(b) of the Tariff Act of 1930 , as amended; and
(c) in the case of the Mexico, the standard set out in Article 238 of the Federal Fiscal Code
("Código Fiscal de la Federación"), or any successor statutes, based solely on the administrative
record.
PART SEVEN: ADMINISTRATIVE AND INSTITUTIONAL PROVISIONS
Chapter Twenty: Institutional Arrangements and Dispute Settlement Procedures
Section A - Institutions
Article 2001: The Free Trade Commission
1. The Parties hereby establish the Free Trade Commission, comprising cabinet-level
representatives of the Parties or their designees.
2. The Commission shall:
(a) supervise the implementation of this Agreement;
(b) oversee its further elaboration;
(c) resolve disputes that may arise regarding its interpretation or application;
(d) supervise the work of all committees and working groups established under this Agreement,
referred to in Annex 2001.2; and
(e) consider any other matter that may affect the operation of this Agreement.
3. The Commission may:
(a) establish, and delegate responsibilities to, ad hoc or standing committees, working groups or
expert groups;
(b) seek the advice of non-governmental persons or groups; and
(c) take such other action in the exercise of its functions as the Parties may agree.
4. The Commission shall establish its rules and procedures. All decisions of the Commission shall
be taken by consensus, except as the Commission may otherwise agree.
5. The Commission shall convene at least once a year in regular session. Regular sessions of the
Commission shall be chaired successively by each Party.
Article 2002: The Secretariat
1. The Commission shall establish and oversee a Secretariat comprising national Sections.
(a) establish a permanent office of its Section;
(b) be responsible for
(i) the operation and costs of its Section, and
(ii) the remuneration and payment of expenses of panelists and members of committees and
scientific review boards established under this Agreement, as set out in Annex 2002.2;
(c) designate an individual to serve as Secretary for its Section, who shall be responsible for its
administration and management; and
(d) notify the Commission of the location of its Section's office.
3. The Secretariat shall:
(a) provide assistance to the Commission;
(b) provide administrative assistance t o

(i) panels and committees established under Chapter Nineteen (Review and Dispute Settlement
in Antidumping and Countervailing Duty Matters), in accordance with the procedures established
pursuant to Article 1908, and
(ii) panels established under this Chapter, in accordance with procedures established pursuant
to Article 2012; and
(c) as the Commission may direct
(i) support the work of other committees and groups established under this Agreement, and
(ii) otherwise facilitate the operation of this Agreement.
Section B - Dispute Settlement
Article 2003: Cooperation
The Parties shall at all times endeavor to agree on the interpretation and application of this
Agreement, and shall make every attempt through cooperation and consultations to arrive at a
mutually satisfactory resolution of any matter that might affect its operation.
Article 2004: Recourse to Dispute Settlement Procedures
Except for the matters covered in Chapter Nineteen (Review and Dispute Settlement in
Antidumping and Countervailing Duty Matters) and as otherwise provided in this Agreement, the
dispute settlement provisions of this Chapter shall apply with respect to the avoidance or
settlement of all disputes between the Parties regarding the interpretation or application of this
Agreement or wherever a Party considers that an actual or proposed measure of another Party
is or would be inconsistent with the obligations of this Agreement or cause nullification or
impairment in the sense of Annex 2004.
Article 2005: GATT Dispute Settlement
1. Subject to paragraphs 2, 3 and 4, disputes regarding any matter arising under both this
Agreement and the General Agreement on Tariffs and Trade, any agreement negotiated
thereunder, or any successor agreement (GATT), may be settled in either forum at the
discretion of the complaining Party.
2. Before a Party initiates a dispute settlement proceeding in the GATT against another Party on
grounds that are substantially equivalent to those available to that Party under this Agreement,
that Party shall notify any third Party of its intention. If a third Party wishes to have recourse t o
dispute settlement procedures under this Agreement regarding the matter, it shall inform
promptly the notifying Party and those Parties shall consult with a view to agreement on a
single forum. If those Parties cannot agree, the dispute normally shall be settled under this
Agreement.
3. In any dispute referred to in paragraph 1 where the responding Party claims that its action is
subject to Article 104 (Relation to Environmental and Conservation Agreements) and requests
in writing that the matter be considered under this Agreement, the complaining Party may, in
respect of that matter, thereafter have recourse to dispute settlement procedures solely under
this Agreement.
4. In any dispute referred to in paragraph 1 that arises under Section B of Chapter Seven
(Sanitary and Phytosanitary Measures) or Chapter Nine (Standards-Related Measures):
(a) concerning a measure adopted or maintained by a Party to protect its human, animal or
plant life or health, or to protect its environment, and
(b) that raises factual issues concerning the environment, health, safety or conservation,
including directly related scientific matters,
where the responding Party requests in writing that the matter be considered under this
Agreement, the complaining Party may, in respect of that matter, thereafter have recourse t o
dispute settlement procedures solely under this Agreement.
5. The responding Party shall deliver a copy of a request made pursuant to paragraph 3 or 4 t o
the other Parties and to its Section of the Secretariat. Where the complaining Party has initiated
dispute settlement proceedings regarding any matter subject to paragraph 3 or 4, the
responding Party shall deliver its request no later than 15 days thereafter. On receipt of such
request, the complaining Party shall promptly withdraw from participation in those proceedings
and may initiate dispute settlement procedures under Article 2007.
6. Once dispute settlement procedures have been initiated under Article 2007 or dispute
settlement proceedings have been initiated under the GATT, the forum selected shall be used t o
the exclusion of the other, unless a Party makes a request pursuant to paragraph 3 or 4.
7. For purposes of this Article, dispute settlement proceedings under the GATT are deemed t o
be initiated by a Party's request for a panel, such as under Article XXIII:2 of the General
Agreement on Tariffs and Trade 1947 , or for a committee investigation, such as under Article
20.1 of the Customs Valuation Code.
1. Any Party may request in writing consultations with any other Party regarding any actual or
proposed measure or any other matter that it considers might affect the operation of this
Agreement.
2. The requesting Party shall deliver the request to the other Parties and to its Section of the
Secretariat.
3. Unless the Commission otherwise provides in its rules and procedures established under
Article 2001(4), a third Party that considers it has a substantial interest in the matter shall be
entitled to participate in the consultations on delivery of written notice to the other Parties and
to its Section of the Secretariat.
4. Consultations on matters regarding perishable agricultural goods shall commence within 1 5
days of the date of delivery of the request.
5. The consulting Parties shall make every attempt to arrive at a mutually satisfactory
resolution of any matter through consultations under this Article or other consultative
provisions of this Agreement. To this end, the consulting Parties shall:
(a) provide sufficient information to enable a full examination of how the actual or proposed
measure or other matter might affect the operation of this Agreement;
(b) treat any confidential or proprietary information exchanged in the course of consultations on
the same basis as the Party providing the information; and
(c) seek to avoid any resolution that adversely affects the interests under this Agreement o f
any other Party.
Article 2007: Commission - Good Offices, Conciliation and Mediation
1. If the consulting Parties fail to resolve a matter pursuant to Article 2006 within:
(a) 30 days of delivery of a request for consultations,
(b) 45 days of delivery of such request if any other Party has subsequently requested or has
participated in consultations regarding the same matter,
(c) 15 days of delivery of a request for consultations in matters regarding perishable

agricultural goods, or
(d) such other period as they may agree,
any such Party may request in writing a meeting of the Commission.
2. A Party may also request in writing a meeting of the Commission where:
(a) it has initiated dispute settlement proceedings under the GATT regarding any matter subject
to Article 2005(3) or (4), and has received a request pursuant to Article 2005(5) for recourse
to dispute settlement procedures under this Chapter; or
(b) consultations have been held pursuant to Article 513 (Working Group on Rules of Origin),
Article 723 (Sanitary and Phytosanitary Measures Technical Consultations) and Article 9 1 4
(Standards-Related Measures Technical Consultations).
3. The requesting Party shall state in the request the measure or other matter complained o f
and indicate the provisions of this Agreement that it considers relevant, and shall deliver the
request to the other Parties and to its Section of the Secretariat.
4. Unless it decides otherwise, the Commission shall convene within 10 days of delivery of the
request and shall endeavor to resolve the dispute promptly.
5. The Commission may:
(a) call on such technical advisers or create such working groups or expert groups as it deems
necessary,
(b) have recourse to good offices, conciliation, mediation or such other dispute resolution
procedures, or
(c) make recommendations,
as may assist the consulting Parties to reach a mutually satisfactory resolution of the dispute.
6. Unless it decides otherwise, the Commission shall consolidate two or more proceedings
before it pursuant to this Article regarding the same measure. The Commission may consolidate
two or more proceedings regarding other matters before it pursuant to this Article that i t
determines are appropriate to be considered jointly.
Article 2008: Request for an Arbitral Panel
1. If the Commission has convened pursuant to Article 2007(4), and the matter has not been
resolved within:
(a) 30 days thereafter,
(b) 30 days after the Commission has convened in respect of the matter most recently referred
to it, where proceedings have been consolidated pursuant to Article 2007(6), or
(c) such other period as the consulting Parties may agree,
any consulting Party may request in writing the establishment of an arbitral panel. The
requesting Party shall deliver the request to the other Parties and to its Section of the
Secretariat.
2. On delivery of the request, the Commission shall establish an arbitral panel.
3. A third Party that considers it has a substantial interest in the matter shall be entitled to join
as a complaining Party on delivery of written notice of its intention to participate to the
disputing Parties and its Section of the Secretariat. The notice shall be delivered at the earliest
possible time, and in any event no later than seven days after the date of delivery of a request
by a Party for the establishment of a panel.
4. If a third Party does not join as a complaining Party in accordance with paragraph 3, i t
normally shall refrain thereafter from initiating or continuing:
(a) a dispute settlement procedure under this Agreement, or

(b) a dispute settlement proceeding in the GATT on grounds that are substantially equivalent t o
those available to that Party under this Agreement,
regarding the same matter in the absence of a significant change in economic or commercial
circumstances.
5. Unless otherwise agreed by the disputing Parties, the panel shall be established and perform
its functions in a manner consistent with the provisions of this Chapter.
Article 2009: Roster
1. The Parties shall establish by January 1, 1994 and maintain a roster of up to 30 individuals
who are willing and able to serve as panelists. The roster members shall be appointed by
consensus for terms of three years, and may be reappointed.
2. Roster members shall:
(a) have expertise or experience in law, international trade, other matters covered by this
Agreement or the resolution of disputes arising under international trade agreements, and shall
be chosen strictly on the basis of objectivity, reliability and sound judgment;
(b) be independent of, and not be affiliated with or take instructions from, any Party; and
(c) comply with a code of conduct to be established by the Commission.
Article 2010: Qualifications of Panelists
1. All panelists shall meet the qualifications set out in Article 2009(2).
2. Individuals may not serve as panelists for a dispute in which they have participated pursuant
to Article 2007(5).
Article 2011: Panel Selection
1. Where there are two disputing Parties, the following procedures shall apply:
(a) The panel shall comprise five members.
(b) The disputing Parties shall endeavor to agree on the chair of the panel within 15 days of the
delivery of the request for the establishment of the panel. If the disputing Parties are unable t o
agree on the chair within this period, the disputing Party chosen by lot shall select within five
days as chair an individual who is not a citizen of that Party.
(c) Within 15 days of selection of the chair, each disputing Party shall select two panelists who
are citizens of the other disputing Party.
(d) If a disputing Party fails to select its panelists within such period, such panelists shall be
selected by lot from among the roster members who are citizens of the other disputing Party.
2. Where there are more than two disputing Parties, the following procedures shall apply:
(a) The panel shall comprise five members.
(b) The disputing Parties shall endeavor to agree on the chair of the panel within 15 days of the
delivery of the request for the establishment of the panel. If the disputing Parties are unable t o
agree on the chair within this period, the Party or Parties on the side of the dispute chosen by
lot shall select within 10 days a chair who is not a citizen of such Party or Parties.
(c) Within 15 days of selection of the chair, the Party complained against shall select t w o
panelists, one of whom is a citizen of a complaining Party, and the other of whom is a citizen o f
another complaining Party. The complaining Parties shall select two panelists who are citizens o f
the Party complained against.
(d) If any disputing Party fails to select a panelist within such period, such panelist shall be
selected by lot in accordance with the citizenship criteria of subparagraph (c).
3. Panelists shall normally be selected from the roster. Any disputing Party may exercise a
peremptory challenge against any individual not on the roster who is proposed as a panelist by a
disputing Party within 15 days after the individual has been proposed.
4. If a disputing Party believes that a panelist is in violation of the code of conduct, the
disputing Parties shall consult and if they agree, the panelist shall be removed and a new
panelist shall be selected in accordance with this Article.
Article 2012: Rules of Procedure
1. The Commission shall establish by January 1, 1994 Model Rules of Procedure, in accordance
with the following principles:
(a) the procedures shall assure a right to at least one hearing before the panel as well as the
opportunity to provide initial and rebuttal written submissions; and
(b) the panel's hearings, deliberations and initial report, and all written submissions to and
communications with the panel shall be confidential.
2. Unless the disputing Parties otherwise agree, the panel shall conduct its proceedings in
accordance with the Model Rules of Procedure.
3. Unless the disputing Parties otherwise agree within 20 days from the date of the delivery o f
the request for the establishment of the panel, the terms of reference shall be:
"To examine, in the light of the relevant provisions of the Agreement, the matter referred t o
the Commission (as set out in the request for a Commission meeting) and to make findings,
determinations and recommendations as provided in Article 2016(2)."
4. If a complaining Party wishes to argue that a matter has nullified or impaired benefits, the
terms of reference shall so indicate.
5. If a disputing Party wishes the panel to make findings as to the degree of adverse trade
effects on any Party of any measure found not to conform with the obligations of the
Agreement or to have caused nullification or impairment in the sense of Annex 2004, the terms
of reference shall so indicate.
Article 2013: Third Party Participation
A Party that is not a disputing Party, on delivery of a written notice to the disputing Parties and
to its Section of the Secretariat, shall be entitled to attend all hearings, to make written and
oral submissions to the panel and to receive written submissions of the disputing Parties.
Article 2014: Role of Experts
On request of a disputing Party, or on its own initiative, the panel may seek information and
technical advice from any person or body that it deems appropriate, provided that the disputing
Parties so agree and subject to such terms and conditions as such Parties may agree.
Article 2015: Scientific Review Boards
1. On request of a disputing Party or, unless the disputing Parties disapprove, on its own
initiative, the panel may request a written report of a scientific review board on any factual
issue concerning environmental, health, safety or other scientific matters raised by a disputing
Party in a proceeding, subject to such terms and conditions as such Parties may agree.
2. The board shall be selected by the panel from among highly qualified, independent experts in
the scientific matters, after consultations with the disputing Parties and the scientific bodies set
out in the Model Rules of Procedure established pursuant to Article 2012(1).
3. The participating Parties shall be provided:
(a) advance notice of, and an opportunity to provide comments to the panel on, the proposed
factual issues to be referred to the board; and
(b) a copy of the board's report and an opportunity to provide comments on the report to the
panel.
4. The panel shall take the board's report and any comments by the Parties on the report into
account in the preparation of its report.
Article 2016: Initial Report
1. Unless the disputing Parties otherwise agree, the panel shall base its report on the
submissions and arguments of the Parties and on any information before it pursuant to Article
2014 or 2015.
2. Unless the disputing Parties otherwise agree, the panel shall, within 90 days after the last
panelist is selected or such other period as the Model Rules of Procedure established pursuant
to Article 2012(1) may provide, present to the disputing Parties an initial report containing:
(a) findings of fact, including any findings pursuant to a request under Article 2012(5);
(b) its determination as to whether the measure at issue is or would be inconsistent with the
obligations of this Agreement or cause nullification or impairment in the sense of Annex 2004,
or any other determination requested in the terms of reference; and
(c) its recommendations, if any, for resolution of the dispute.
3. Panelists may furnish separate opinions on matters not unanimously agreed.
4. A disputing Party may submit written comments to the panel on its initial report within 1 4
days of presentation of the report.
5. In such an event, and after considering such written comments, the panel, on its own
initiative or on the request of any disputing Party, may:
(a) request the views of any participating Party;
(b) reconsider its report; and
(c) make any further examination that it considers appropriate.
Article 2017: Final Report
1. The panel shall present to the disputing Parties a final report, including any separate opinions
on matters not unanimously agreed, within 30 days of presentation of the initial report, unless
the disputing Parties otherwise agree.
2. No panel may, either in its initial report or its final report, disclose which panelists are
associated with majority or minority opinions.
3. The disputing Parties shall transmit to the Commission the final report of the panel, including
any report of a scientific review board established under Article 2015, as well as any written
views that a disputing Party desires to be appended, on a confidential basis within a reasonable
period of time after it is presented to them.
4. Unless the Commission decides otherwise, the final report of the panel shall be published 1 5
days after it is transmitted to the Commission.
Article 2018: Implementation of Final Report
1. On receipt of the final report of a panel, the disputing Parties shall agree on the resolution o f
the dispute, which normally shall conform with the determinations and recommendations of the
panel, and shall notify their Sections of the Secretariat of any agreed resolution of any dispute.
2. Wherever possible, the resolution shall be non-implementation or removal of a measure not
conforming with this Agreement or causing nullification or impairment in the sense of Annex
2004 or, failing such a resolution, compensation.
Article 2019: Non-Implementation-Suspension of Benefits
1. If in its final report a panel has determined that a measure is inconsistent with the obligations
of this Agreement or causes nullification or impairment in the sense of Annex 2004 and the
Party complained against has not reached agreement with any complaining Party on a mutually
satisfactory resolution pursuant to Article 2018(1) within 30 days of receiving the final report,
such complaining Party may suspend the application to the Party complained against of benefits
of equivalent effect until such time as they have reached agreement on a resolution of the
dispute.
2. In considering what benefits to suspend pursuant to paragraph 1:
(a) a complaining Party should first seek to suspend benefits in the same sector or sectors as
that affected by the measure or other matter that the panel has found to be inconsistent with
the obligations of this Agreement or to have caused nullification or impairment in the sense o f
Annex 2004; and
(b) a complaining Party that considers it is not practicable or effective to suspend benefits in
the same sector or sectors may suspend benefits in other sectors.
3. On the written request of any disputing Party delivered to the other Parties and its Section o f
the Secretariat, the Commission shall establish a panel to determine whether the level o f
benefits suspended by a Party pursuant to paragraph 1 is manifestly excessive.
4. The panel proceedings shall be conducted in accordance with the Model Rules of Procedure.
The panel shall present its determination within 60 days after the last panelist is selected or
such other period as the disputing Parties may agree.
Section C - Domestic Proceedings

and Private Commercial Dispute Settlement
Article 2020: Referrals of Matters from Judicial or Administrative Proceedings
1. If an issue of interpretation or application of this Agreement arises in any domestic judicial or

administrative proceeding of a Party that any Party considers would merit its intervention, or i f
a court or administrative body solicits the views of a Party, that Party shall notify the other
Parties and its Section of the Secretariat. The Commission shall endeavor to agree on an
appropriate response as expeditiously as possible.
2. The Party in whose territory the court or administrative body is located shall submit any
agreed interpretation of the Commission to the court or administrative body in accordance with
the rules of that forum.
3. If the Commission is unable to agree, any Party may submit its own views to the court or
administrative body in accordance with the rules of that forum.
Article 2021: Private Rights
No Party may provide for a right of action under its domestic law against any other Party on the
ground that a measure of another Party is inconsistent with this Agreement.
Article 2022: Alternative Dispute Resolution
1. Each Party shall, to the maximum extent possible, encourage and facilitate the use o f
arbitration and other means of alternative dispute resolution for the settlement of international
commercial disputes between private parties in the free trade area.
2. To this end, each Party shall provide appropriate procedures to ensure observance o f
agreements to arbitrate and for the recognition and enforcement of arbitral awards in such
disputes.
3. A Party shall be deemed to be in compliance with paragraph 2 if it is a party to and is in

compliance with the 1958 United Nations Convention on the Recognition and Enforcement o f
Foreign Arbitral Awards or the 1975 InterAmerican Convention on International Commercial
Arbitration.
4. The Commission shall establish an Advisory Committee on Private Commercial Disputes

comprising persons with expertise or experience in the resolution of private international
commercial disputes. The Committee shall report and provide recommendations to the
Commission on general issues referred to it by the Commission respecting the availability, use
and effectiveness of arbitration and other procedures for the resolution of such disputes in the
free trade area.
Annex 2001.2
Committees and Working Groups
A. Committees:
1. Committee on Trade in Goods (Article 3 1 6 )
2. Committee on Trade in Worn Clothing (Annex 300-B, Section 9.1)
3. Committee on Agricultural Trade (Article 7 0 6 )
Advisory Committee on Private Commercial Disputes Regarding Agricultural Goods (Article 7 0 7 )
4. Committee on Sanitary and Phytosanitary Measures (Article 7 2 2 )

5. Committee on Standards-Related Measures (Article 9 1 3 )
Land Transportation Standards Subcommittee (Article 9 1 3 ( 5 ) )
Telecommunications Standards Subcommittee (Article 9 1 3 ( 5 ) )
Automotive Standards Council (Article 9 1 3 ( 5 ) )
Subcommittee on Labelling of Textile and Apparel Goods (Article 9 1 3 ( 5 ) )
6. Committee on Small Business (Article 1 0 2 1 )
7. Financial Services Committee (Article 1 4 1 2 )
8. Advisory Committee on Private Commercial Disputes (Article 2 0 2 2 ( 4 ) )
B. Working Groups:
1. Working Group on Rules of Origin (Article 5 1 3 )
Customs Subgroup (Article 5 1 3 ( 6 ) )
2. Working Group on Agricultural Subsidies (Article 7 0 5 ( 6 ) )
3. Bilateral Working Group (Mexico United States) (Annex 703.2(A)(25))
4. Bilateral Working Group (Canada Mexico) (Annex 703.2(B)(13))
5. Working Group on Trade and Competition (Article 1 5 0 4 )
6. Temporary Entry Working Group (Article 1 6 0 5 )
C. Other Committees and Working Groups Established under this Agreement
Annex 2002.2
Remuneration and Payment of Expenses

1. The Commission shall establish the amounts of remuneration and expenses that will be paid
to the panelists, committee members and members of scientific review boards.
2. The remuneration of panelists or committee members and their assistants, members o f

scientific review boards, their travel and lodging expenses, and all general expenses of panels,
committees or scientific review boards shall be borne equally by:
(a) in the case of panels or committees established under Chapter Nineteen (Review and
Dispute Settlement in Antidumping and Countervailing Duty Matters), the involved Parties, as
they are defined in Article 1911; or
(b) in the case of panels and scientific review boards established under this Chapter, the
disputing Parties.
3. Each panelist or committee member shall keep a record and render a final account of the
person's time and expenses, and the panel, committee or scientific review board shall keep a
record and render a final account of all general expenses. The Commission shall establish
amounts of remuneration and expenses that will be paid to panelists and committee members.
Annex 2 0 0 4
Nullification and Impairment
1. If any Party considers that any benefit it could reasonably have expected to accrue to it
under any provision of:
(a) Part Two (Trade in Goods), except for those provisions of Annex 300-A (Automotive
Sector) or Chapter Six (Energy) relating to investment,
(b) Part Three (Technical Barriers to Trade),
(c) Chapter Twelve (Cross-Border Trade in Services), or
(d) Part Six (Intellectual Property),
is being nullified or impaired as a result of the application of any measure that is not
inconsistent with this Agreement, the Party may have recourse to dispute settlement under this
Chapter.
2. A Party may not invoke:
(a) paragraph 1(a) or (b), to the extent that the benefit arises from any crossborder trade in
services provision of Part Two, or
(b) paragraph 1(c) or (d),
with respect to any measure subject to an exception under Article 2101 (General Exceptions).
PART EIGHT: OTHER PROVISIONS
Chapter Twenty-One: Exceptions
Article 2101: General Exceptions
1. For purposes of:
(a) Part Two (Trade in Goods), except to the extent that a provision of that Part applies t o
services or investment, and
(b) Part Three (Technical Barriers to Trade), except to the extent that a provision of that Part
applies to services,
GATT Article XX and its interpretative notes, or any equivalent provision of a successor
agreement to which all Parties are party, are incorporated into and made part of this
Agreement.
The Parties understand that the measures referred to in GATT Article XX(b) include
environmental measures necessary to protect human, animal or plant life or health, and that
GATT Article XX(g) applies to measures relating to the conservation of living and non-living
exhaustible natural resources.
2. Provided that such measures are not applied in a manner that would constitute a means o f
arbitrary or unjustifiable discrimination between countries where the same conditions prevail or
a disguised restriction on trade between the Parties, nothing in:
(a) Part Two (Trade in Goods), to the extent that a provision of that Part applies to services,
(b) Part Three (Technical Barriers to Trade), to the extent that a provision of that Part applies
to services,
(c) Chapter Twelve (Cross-Border Trade in Services), and
(d) Chapter Thirteen (Telecommunications),
shall be construed to prevent the adoption or enforcement by any Party of measures necessary
to secure compliance with laws or regulations that are not inconsistent with the provisions o f
this Agreement, including those relating to health and safety and consumer protection.
Article 2102: National Security
1. Subject to Articles 607 (Energy - National Security Measures) and 1018 (Government
Procurement Exceptions), nothing in this Agreement shall be construed:
(a) to require any Party to furnish or allow access to any information the disclosure of which i t
determines to be contrary to its essential security interests;
(b) to prevent any Party from taking any actions that it considers necessary for the protection
of its essential security interests
(i) relating to the traffic in arms, ammunition and implements of war and to such traffic and
transactions in other goods, materials, services and technology undertaken directly or indirectly
for the purpose of supplying a military or other security establishment,
(ii) taken in time of war or other emergency in international relations, or
(iii) relating to the implementation of national policies or international agreements respecting

the non-proliferation of nuclear weapons or other nuclear explosive devices; or
(c) to prevent any Party from taking action in pursuance of its obligations under the United
Nations Charter for the maintenance of international peace and security.
Article 2103: Taxation
1. Except as set out in this Article, nothing in this Agreement shall apply to taxation measures.
2. Nothing in this Agreement shall affect the rights and obligations of any Party under any tax
convention. In the event of any inconsistency between this Agreement and any such
convention, that convention shall prevail to the extent of the inconsistency.
3. Notwithstanding paragraph 2:
(a) Article 301 (Market Access - National Treatment) and such other provisions of this
Agreement as are necessary to give effect to that Article shall apply to taxation measures t o
the same extent as does Article III of the GATT; and
(b) Article 314 (Market Access - Export Taxes) and Article 604 (Energy Export Taxes) shall
apply to taxation measures.
4. Subject to paragraph 2:
(a) Article 1202 (Cross-Border Trade in Services - National Treatment) and Article 1 4 0 5
(Financial Services - National Treatment) shall apply to taxation measures on income, capital
gains or on the taxable capital of corporations, and to those taxes listed in paragraph 1 o f
Annex 2103.4, that relate to the purchase or consumption of particular services, and
(b) Articles 1102 and 1103 (Investment - National Treatment and Most-Favored Nation
Treatment), Articles 1202 and 1203 (Cross-Border Trade in Services - National Treatment and
Most-Favored Nation Treatment) and Articles 1405 and 1406 (Financial Services - National
Treatment and Most-Favored Nation Treatment) shall apply to all taxation measures, other than
those on income, capital gains or on the taxable capital of corporations, taxes on estates,
inheritances, gifts and generation-skipping transfers and those taxes listed in paragraph 1 o f
Annex 2103.4,
except that nothing in those Articles shall apply

(c) any most-favored-nation obligation with respect to an advantage accorded by a Party
pursuant to a tax convention,
(d) to a non-conforming provision of any existing taxation measure,
(e) to the continuation or prompt renewal of a non-conforming provision of any existing

taxation measure,
(f) to an amendment to a non-conforming provision of any existing taxation measure to the

extent that the amendment does not decrease its conformity, at the time of the amendment,
with any of those Articles,
(g) to any new taxation measure aimed at ensuring the equitable and effective imposition or
collection of taxes and that does not arbitrarily discriminate between persons, goods or services
of the Parties or arbitrarily nullify or impair benefits accorded under those Articles, in the sense
of Annex 2004, or
(h) to the measures listed in paragraph 2 of Annex 2103.4.
5. Subject to paragraph 2 and without prejudice to the rights and obligations of the Parties
under paragraph 3, Article 1106(3), (4) and (5) (Investment - Performance Requirements) shall
apply to taxation measures.
6. Article 1110 (Expropriation and Compensation) shall apply to taxation measures except that
no investor may invoke that Article as the basis for a claim under Article 1116 (Claim by an
Investor of a Party on its Own Behalf) or 1117 (Claim by an Investor of a Party on Behalf of an
Enterprise), where it has been determined pursuant to this paragraph that the measure is not an
expropriation. The investor shall refer the issue of whether the measure is not an expropriation
for a determination to the appropriate competent authorities set out in Annex 2103.6 at the
time that it gives notice under Article 1119 (Notice of Intent to Submit a Claim to Arbitration).
If the competent authorities do not agree to consider the issue or, having agreed to consider it,
fail to agree that the measure is not an expropriation within a period of six months of such
referral, the investor may submit its claim to arbitration under Article 1120 (Submission of a
Claim to Arbitration).
Article 2104: Balance of Payments
1. Nothing in this Agreement shall be construed to prevent a Party from adopting or maintaining
measures that restrict transfers where the Party experiences serious balance of payments
difficulties, or the threat thereof, and such restrictions are consistent with paragraphs 2
through 4 and are:
(a) consistent with paragraph 5 to the extent they are imposed on transfers other than Cross-
Border trade in financial services; or
(b) consistent with paragraphs 6 and 7 to the extent they are imposed on Cross-Border trade in
financial services.
General Rules
2. As soon as practicable after a Party imposes a measure under this Article, the Party shall:
(a) submit any current account exchange restrictions to the IMF for review under Article VIII o f
the Articles of Agreement of the IMF;
(b) enter into good faith consultations with the IMF on economic adjustment measures t o
address the fundamental underlying economic problems causing the difficulties; and
(c) adopt or maintain economic policies consistent with such consultations.
3. A measure adopted or maintained under this Article shall:
(a) avoid unnecessary damage to the commercial, economic or financial interests of another
Party;
(b) not be more burdensome than necessary to deal with the balance of payments difficulties or
threat thereof;
(c) be temporary and be phased out progressively as the balance of payments situation
improves;
(d) be consistent with paragraph 2(c) and with the Articles of Agreement of the IMF; and
(e) be applied on a national treatment or most-favored-nation treatment basis, whichever is

better.
4. A Party may adopt or maintain a measure under this Article that gives priority to services
that are essential to its economic program, provided that a Party may not impose a measure for
the purpose of protecting a specific industry or sector unless the measure is consistent with
paragraph 2(c) and with Article VIII(3) of the Articles of Agreement of the IMF.
Restrictions on Transfers Other than Cross-Border Trade in Financial Services
5. Restrictions imposed on transfers, other than on cross border trade in financial services:
(a) where imposed on payments for current international transactions, shall be consistent with
Article VIII(3) of the Articles of Agreement of the IMF;
(b) where imposed on international capital transactions, shall be consistent with Article VI o f
the Articles of Agreement of the IMF and be imposed only in conjunction with measures
imposed on current international transactions under paragraph 2(a);
(c) where imposed on transfers covered by Article 1109 (Investment - Transfers) and transfers
related to trade in goods, may not substantially impede transfers from being made in a freely
usable currency at a market rate of exchange; and
(d) may not take the form of tariff surcharges, quotas, licenses or similar measures.
Restrictions on Cross-Border Trade in Financial Services
6. A Party imposing a restriction on Cross-Border trade in financial services:
(a) may not impose more than one measure on any transfer, unless consistent with paragraph
2(c) and with Article VIII(3) of the Articles of Agreement of the IMF; and
(b) shall promptly notify and consult with the other Parties to assess the balance of payments
situation of the Party and the measures it has adopted, taking into account among other
elements
(i) the nature and extent of the balance of payments difficulties of the Party,
(ii) the external economic and trading environment of the Party, and
(iii) alternative corrective measures that may be available.
7. In consultations under paragraph 6(b), the Parties shall:
(a) consider if measures adopted under this Article comply with paragraph 3, in particular
paragraph 3(c); and
(b) accept all findings of statistical and other facts presented by the IMF relating to foreign
exchange, monetary reserves and balance of payments, and shall base their conclusions on the
assessment by the IMF of the balance of payments situation the Party adopting the measures.
Article 2105: Disclosure of Information
Nothing in this Agreement shall be construed to require a Party to furnish or allow access t o
information the disclosure of which would impede law enforcement or would be contrary to the
Party's law protecting personal privacy or the financial affairs and accounts of individual
customers of financial institutions.
Article 2106: Cultural Industries
Annex 2106 applies to the Parties specified in that Annex with respect to cultural industries.
cultural industries means persons engaged in any of the following activities:

(a) the publication, distribution, or sale of books, magazines, periodicals or newspapers in print
or machine readable form but not including the sole activity of printing or typesetting any o f
the foregoing;
(b) the production, distribution, sale or exhibition of film or video recordings;
(c) the production, distribution, sale or exhibition of audio or video music recordings;
(d) the publication, distribution or sale of music in print or machine readable form; or
(e) radiocommunications in which the transmissions are intended for direct reception by the
general public, and all radio, television and cable broadcasting undertakings and all satellite
programming and broadcast network services;
international capital transactions means "international capital transactions" as defined under the
Articles of Agreement of the IMF;
IMF means the International Monetary Fund;
payments for current international transactions means "payments for current international
transactions" as defined under the Articles of Agreement of the IMF;
tax convention means a convention for the avoidance of double taxation or other international
taxation agreement or arrangement;
taxes and taxation measures do not include:
(a) a "customs duty" as defined in Article 318 (Market Access Definitions); or
(b) the measures listed in exceptions (b),(c), (d) and (e) of that definition; and
transfers means international transactions and related international transfers and payments.
Annex 2103.4
Specific Taxation Measures
1. For purposes of Article 2103(4)(a) and (b), the listed tax is the asset tax under the Asset
Tax Law ("Ley del Impuesto al Activo") of Mexico.
2. For purposes of Article 2103(4)(h), the listed tax is any excise tax on insurance premiums
adopted by Mexico to the extent that such tax would, if levied by Canada or the United States,
be covered by Article 2103(4)(d), (e) or ( f ) .
Annex 2103.6
Competent Authorities
competent authority means
(a) in the case of Canada, the Assistant Deputy Minister for Tax Policy, Department of Finance;
(b) in the case of Mexico, the Deputy Minister of Revenue of the Ministry of Finance and Public
Credit ("Secretaría de Hacienda y Crédito Público");
(c) in the case of the United States, the Assistant Secretary of the Treasury (Tax Policy),
Department of the Treasury.
Annex 2 1 0 6
Cultural Industries
Notwithstanding any other provision of this Agreement, as between Canada and the United
States, any measure adopted or maintained with respect to cultural industries, except as
specifically provided in Article 302 (Market Access - Tariff Elimination), and any measure o f
equivalent commercial effect taken in response, shall be governed under this Agreement
exclusively in accordance with the provisions of the Canada - United States Free Trade
Agreement . The rights and obligations between Canada and any other Party with respect t o
such measures shall be identical to those applying between Canada and the United States.
Chapter Twenty-Two: Final Provisions
Article 2201: Annexes
The Annexes to this Agreement constitute an integral part of this Agreement.
Article 2202: Amendments
1. The Parties may agree on any modification of or addition to this Agreement.
2. When so agreed, and approved in accordance with the applicable legal procedures of each
Party, a modification or addition shall constitute an integral part of this Agreement.
Article 2203: Entry into Force
This Agreement shall enter into force on January 1, 1994, on an exchange of written
notifications certifying the completion of necessary legal procedures.
Article 2204: Accession
1. Any country or group of countries may accede to this Agreement subject to such terms and
conditions as may be agreed between such country or countries and the Commission and
following approval in accordance with the applicable legal procedures of each country.
2. This Agreement shall not apply as between any Party and any acceding country or group o f
countries if, at the time of accession, either does not consent to such application.
Article 2205: Withdrawal
A Party may withdraw from this Agreement six months after it provides written notice o f
withdrawal to the other Parties. If a Party withdraws, the Agreement shall remain in force for
the remaining Parties.
Article 2206: Authentic Texts
The English, French and Spanish texts of this Agreement are equally authentic.
IN WITNESS WHEREOF, the undersigned, being duly authorized by their respective Governments,
have signed this Agreement.
Annex 4 0 1 1
Specific Rules of Origin
Section A - General Interpretative Note
For purposes of interpreting the rules of origin set out in this Annex:
(a) the specific rule, or specific set of rules, that applies to a particular heading, subheading or
tariff item is set out immediately adjacent to the heading, subheading or tariff item;
(b) a rule applicable to a tariff item shall take precedence over a rule applicable to the heading
or subheading which is parent to that tariff item;
(c) a requirement of a change in tariff classification applies only to non-originating materials;
(d) reference to weight in the rules for goods provided for in Chapter 1 through 24 of the
Harmonized System means dry weight unless otherwise specified in the Harmonized System;
(e) paragraph 1 of Article 405 (De Minimis) does not apply to:
(i) certain non-originating materials used in the production of goods provided for in the
following tariff provisions: Chapter 4 of the Harmonized System, heading 15.01 through 15.08,
15.12, 15.14, 15.15 or 17.01 through 17.03, subheading 1806.10, tariff item 1901.10.aa
(infant preparations containing over 10 percent by weight of milk solids), 1901.20.aa (mixes
and doughs, containing over 25 percent by weight of butterfat, not put up for retail sale) or
1901.90.aa (dairy preparations containing over 10 percent by weight of milk solids),
subheading 2009.11 through 2009.30 or 2009.90, heading 21.05, tariff item 2101.10.aa
(instant coffee, not flavored), 2106.90.bb (concentrated fruit or vegetable juice of any single
fruit or vegetable, fortified with minerals or vitamins), 2106.90.cc (concentrated mixtures o f
fruit or vegetable juice, fortified with minerals or vitamins), 2106.90.dd (preparations
containing over 10 percent by weight of milk solids), 2202.90.aa (fruit or vegetable juice of any
single fruit or vegetable, fortified with minerals orvitamins), 2202.90.bb (mixtures of fruit or
vegetable juices, fortified with minerals or vitamins) or 2202.90.cc (beverages containing milk),
heading 22.07 through 22.08, tariff item 2309.90.aa (animal feeds containing over 10 percent
by weight of milk solids) or 7321.11.aa (gas stove or range), subheading 8415.10, 8415.81
through 8415.83, 8418.10 through 8418.21, 8418.29 through 8418.40, 8421.12, 8422.11,
8450.11 through 8450.20 or 8451.21 through 8451.29, Mexican tariff item 8479.82.aa (trash
compactors), Canadian or U.S. tariff item 8479.89.aa (trash compactors), or tariff item
8516.60.aa (electric stove or range),
(ii) a printed circuit assembly that is a non-originating material used in the production of a good
where the applicable change in tariff classification for the good places restrictions on the use o f
such non-originating material, and
(iii) a non-originating material used in the production of a good provided for in Chapter 1
through 27 of the Harmonized System unless the non-originating material is provided for in a
different subheading than the good for which origin is being determined;
(f) paragraph 6 of Article 405 (De Minimis) applies to a good provided for in Chapter 5 0
through 63; and
(g) the following definitions apply:
chapter means a chapter of the Harmonized System;
heading means the first four digits in the tariff classification number under the Harmonized
System;
section means a section of the Harmonized System;
subheading means the f irst six digits in the tariff classification number under the Harmonized
System; and
tariff item means the first eight digits in the tariff classification number under the Harmonized
System as implemented by each Party.
Section B - Specific Rules of Origin

Section I
Live Animals; Animal Products (Chapter 1-5)

Chapter 1
Live Animals
01.01-01.06
A change to heading 01.01 through 01.06 from any other chapter.

Chapter 2
Meat and Edible Meat Offal

02.01-02.10

Chapter 3
Fish and Crustaceans, Molluscs and Other Aquatic Invertebrates

03.01-03.07

Chapter 4
Dairy Produce; Birds' Eggs; Natural Honey; Edible Products of Animal
Origin, Not Elsewhere Specified or Included

04.01-04.10
A change to heading 04.01 through 04.10 from any other chapter, except from Canadian tariff
item 1901.90.31, U.S. tariff item 1901.90.30A, 1901.90.30B, 1901.90.30C, 1901.90.30D,
1901.90.30E, 1901.90.40A, 1901.90.40B, 1901.90.40C, 1901.90.40D, 1901.90.80A,
1901.90.80B, 1901.90.80C, 1901.90.80D, 1901.90.80E, 1901.90.80F or 1901.90.80G or
Mexican tariff item 1901.90.03.
Chapter 5
Products of Animal Origin, Not Elsewhere Specified or Included

05.01-05.11

Section II
Vegetable Products (Chapter 6-14)
Note:
Agricultural and horticultural goods grown in the territory of a Party shall be treated as
originating in the territory of that Party even if grown from seed, bulbs, rootstock, cuttings,
slips or other live parts of plants imported from a non-Party.
Chapter 6
Live Trees and Other Plants; Bulbs, Roots and the Like; Cut Flowers and Ornamental Foliage
06.01-06.04

Chapter 7
Edible Vegetables and Certain Roots and Tubers

07.01-07.14

Chapter 8
Edible Fruit and Nuts; Peel of Citrus Fruit or Melons

08.01-08.14

Chapter 9
Coffee, Tea, Maté and Spices

09.01-09.10

Chapter 1 0
Cereals
10.01-10.08

Chapter 1 1
Products of the Milling Industry; Malt; Starches; Inulin; Wheat Gluten

11.01-11.09

Chapter 1 2
Oil Seeds and Oleaginous Fruits; Miscellaneous Grains, Seeds and Fruit; Industrial or Medicinal
Plants; Straw and Fodder
12.01-12.142
A change to heading 12.01 through 12.14 from any other chapter

.
Chapter 1 3
Lac; Gums, Resins and Other Vegetable Saps and Extracts

13.01-13.02

Chapter 1 4
Vegetable Plaiting Materials; Vegetable Products Not Elsewhere Specified or Included

14.01-14.04

Section III
Animal or Vegetable Fats and Oils and Their Cleavage Products; Prepared Edible Fats; Animal or
Vegetable Waxes (Chapter 1 5 )
Chapter 1 5
Animal or Vegetable Fats and Oils and Their Cleavage Products; Prepared Edible Fats; Animal or
Vegetable Waxes
15.01-15.18

1519.11-1519.13
A change to subheading 1519.11 through 1519.13 from any other heading, except from
heading 15.20.
1519.19
A change to subheading 1519.19 from any other subheading.

1519.20
A change to subheading 1519.20 from any other heading, except from heading 15.20.
1520.10
1520.90

15.21-15.22

Section IV
Prepared Foodstuffs; Beverages, Spirits and Vinegar; Tobacco and Manufactured Tobacco
Substitutes (Chapter 16-24)
Chapter 1 6
Preparations of Meat, of Fish or of Crustaceans, Molluscs or Other Aquatic Invertebrates

16.01-16.05

Chapter 1 7
Sugars and Sugar Confectionery

17.01-17.03

17.04
A change to heading 17.04 from any other heading.

Chapter 1 8
Cocoa and Cocoa Preparations

18.01-18.05

1806.10
1806.10.aa 3
A change to Canadian tariff item 1806.10.10, U.S. tariff item 1806.10.41, 1806.10.42A or
1806.10.42B or Mexican tariff item 1806.10.01 from any other heading.
1806.10
A change to subheading 1806.10 from any other heading, provided that the non-originating
sugar of Chapter 17 constitutes no more than 35 percent by weight of the sugar and the non-
originating cocoa powder of heading 18.05 constitutes no more than 35 percent by weight o f
the cocoa powder.
1806.20
A change to subheading 1806.20 from any other heading.

1806.31

1806.32

1806.90

Chapter 1 9
Preparations of Cereals, Flour, Starch or Milk; Pastrycooks' Products

1901.10
1901.10.aa
A change to Canadian tariff item 1901.10.31, U.S. tariff item 1901.10.00A, 1901.10.00B,
1901.10.00C or 1901.10.00D or Mexican tariff item 1901.10.01 from any other chapter,
except from Chapter 4.
1901.10
A change to subheading 1901.10 from any other chapter.

1901.20
1901.20.aa
A change to Canadian tariff item 1901.20.11 or 1901.20.21, U.S. tariff item 1901.20.00A,
1901.20.00B, 1901.20.00C, 1901.20.00D, 1901.20.00E or 1901.20.00F or Mexican tariff
item 1901.20.02 from any other chapter, except from Chapter 4.
1901.20

1901.90
1901.90.aa
1901.90.30C, 1901.90.30D, 1901.90.30E, 1901.90.40A, 1901.90.40B, 1901.90.40C,
1901.90.40D, 1901.90.80A, 1901.90.80B, 1901.90.80C, 1901.90.80D, 1901.90.80E,
1901.90.80F or1901.90.80G or Mexican tariff item 1901.90.03 from any other chapter,
except from Chapter 4.
1901.90

9.02-19.05

Chapter 2 0
Preparations of Vegetables, Fruit, Nuts or Other Parts of Plants
Note:
Fruit, nut and vegetable preparations of Chapter 2 0 that have been prepared or preserved
merely by freezing, by packing (including canning) in water, brine or natural juices, or by
roasting, either dry or in oil (including processing incidental to freezing, packing, or roasting),
shall be treated as an originating good only if the fresh good were wholly produced or obtained
entirely in the territory of one or more of the Parties.
20.01-20.07

2008.114
2008.11.aa
A change to Canadian tariff item 2008.11.20, U.S. tariff item 2008.11.00B, 2008.11.00C or
2008.11.00D or Mexican tariff item 2008.11.01 from any other heading, except from heading
12.02.
2008.11

2008.19-2008.99
A change to subheading 2008.19 through 2008.99 from any other chapter.

2009.11-2009.30
A change to subheading 2009.11 through 2009.30 from any other chapter, except from
heading 08.05.
2009.40-2009.80

2009.90
A change to subheading 2009.90 from any other chapter; or
A change to subheading 2009.90 from any other subheading within Chapter 20, whether or not
there is also a change from any other chapter, provided that a single juice ingredient, or juice
ingredients from a single non-Party, constitute in single strength form no more than 60 percent
by volume of the good.
Chapter 2 1
Miscellaneous Edible Preparations

21.01
2101.10.aa
A change to Canadian tariff item 2101.10.11, U.S. tariff item 2101.10.20A or Mexican tariff
item 2101.10.01 from any other chapter, provided that the non-originating coffee of Chapter 9
constitutes no more than 60 percent by weight of the good.
21.01
A change to heading 21.01 from any other chapter.

21.02

2103.10

2103.20
2103.20.aa
A change to Canadian tariff item 2103.20.10, U.S. tariff item 2103.20.20 or Mexican tariff item
2103.20.01 from any other chapter, except from subheading 2002.90.
2103.20

2103.30-2103.90

21.04

21.05
A change to heading 21.05 from any other heading, except from Chapter 4 or Canadian tariff
item 1901.90.31, U.S. tariff item 1901.90.30A, 1901.90.30B, 1901.90.30C, 1901.90.30D,
1901.90.30E, 1901.90.40A, 1901.90.40B, 1901.90.40C, 1901.90.40D, 1901.90.80A,
1901.90.80B, 1901.90.80C, 1901.90.80D, 1901.90.80E, 1901.90.80F or 1901.90.80G or
21.065
2106.90.bb
A change to Canadian tariff item 2106.90.91, U.S. tariff item 2106.90.16A, 2106.90.16B or
2106.90.19A or Mexican tariff item 2106.90.06 from any other chapter, except from heading
08.05 or 20.09, or Canadian tariff item 2202.90.31, U.S. tariff item 2202.90.30A,
2202.90.30B, 2202.90.35 or 2202.90.39A or Mexican tariff item 2202.90.02.
2106.90.cc
A change to Canadian tariff item 2106.90.92, U.S. tariff item 2106.90.19B or Mexican tariff
item 2106.90.07 from any other chapter, except from heading 20.09, or Canadian tariff item
2202.90.32, U.S. tariff item 2202.90.39B or Mexican tariff item 2202.90.03; or
item 2106.90.07 from any othersubheading within Chapter 21, heading 20.09, or Canadian
tariff item 2202.90.32, U.S. tariff item 2202.90.39B or Mexican tariff item 2202.90.03,
whether or not there is also a change from any other chapter, provided that a single juice
ingredient, or juice ingredients from a single non-Party, constitute in single strength form no
more than 60 percent by volume of the good.
2106.90.dd
2106.90.05C, 2106.90.15A, 2106.90.15B, 2106.90.15C, 2106.90.15D, 2106.90.40A,
2106.90.40B, 2106.90.40C, 2106.90.40D, 2106.90.50A, 2106.90.50B, 2106.90.50C,
2106.90.50D, 2 106.90.50E, 2106.90.50F or 2106.90.65A or Mexican tariff item 2106.90.08
from any other chapter, except from Chapter 4 or Canadian tariff item 1901.90.31, U.S. tariff
item 1901.90.30A, 1901.90.30B, 1901.90.30C, 1901.90.30D, 1901.90.30E, 1901.90.40A,
1901.90.40B, 1901.90.40C, 1901.90.40D, 1901.90.80A, 1901.90.80B, 1901.90.80C,
1901.90.80D, 1901.90.80E, 1901.90.80F or 1901.90.80G or Mexican tariff item 1901.90.03.
21.06

Chapter 2 2
Beverages, Spirits and Vinegar

22.01

2202.10

2202.90
2202.90.aa
2202.90.35 or 2202.90.39A or Mexican tariff item 2202.90.02 from any other chapter, except
from heading 08.05 or 20.09 or Canadian tariff item 2106.90.91, U.S. tariff item 2106.90.16A,
2106.90.16B or 2106.90.19A or Mexican tariff item 2106.90.06.
2202.90.bb
item 2202.90.03 from any other chapter, except from heading 20.09, or Canadian tariff item
2106.90.92, U.S. tariff item 2106.90.19B or Mexican tariff item 2106.90.07; or
item 2202.90.03 from any other subheading within Chapter 22, heading 20.09, or Canadian
tariff item 2106.90.92, U.S. tariff item 2106.90.19B or Mexican tariff item2106.90.07,
whether or not there is also a change from any other chapter, provided that a single juice
ingredient, or juice ingredients from a single non-Party, constitute in single strength form no
more than 60 percent by volume of the good.
2202.90.cc
A change to Canadian tariff item 2202.90.40, U.S. tariff item 2202.90.10, 2202.90.20A,
2202.90.20B or 2202.90.20C or Mexican tariff item 2202.90.04 from any other chapter,
except from Chapter 4 or Canadian tariff item 1901.90.31, U.S. tariff item 1901.90.30A,
1901.90.30B, 1901.90.30C, 1901.90.30D, 1901.90.30E, 1901.90.40A, 1901.90.40B,
1901.90.40C, 1901.90.40D, 1901.90.80A, 1901.90.80B, 1901.90.80C, 1901.90.80D,
1901.90.80E, 1901.90.80F or 1901.90.80G or Mexican tariff item 1901.90.03.
2202.90

22.03-22.09
A change to heading 22.03 through 22.09 from any heading outside that group.
Chapter 2 3
Residues and Waste From the Food Industries; Prepared Animal Fodder
23.01-23.08

2309.10

2309.90
2309.90.aa
2309.90.30B or 2309.90.30C or Mexican tariff item 2309.90.10 or 2309.90.11 from any
other heading, except from Chapter 4 or Canadian tariff item 1901.90.31, U.S. tariff item
1901.90.30A, 1901.90.30B, 1901.90.30C, 1901.90.30D, 1901.90.30E, 1901.90.40A,
1901.90.40B, 1901.90.40C, 1901.90.40D, 1 9 01.90.80A, 1901.90.80B, 1901.90.80C,
1901.90.80D, 1901.90.80E, 1901.90.80F or 1901.90.80G or Mexican tariff item 1901.90.03.
2309.90

Chapter 2 4
Tobacco and Manufactured Tobacco Substitutes

24.01-24.03 6
A change to heading 24.01 through 24.03 from any other chapter or from Canadian tariff item
2401.10.10 or 2403.91.10, U.S. tariff item 2401.10.20A or 2403.91.20 or Mexican tariff item
2401.10.01 or 2403.91.01.
Section V
Mineral Products (Chapter 25-27)

Chapter 2 5
Salt; Sulphur; Earths and Stone; Plastering Materials, Lime and Cement
25.01-25.30

Chapter 2 6
Ores, Slag and Ash

26.01-26.21

Chapter 2 7
Mineral Fuels, Mineral Oils and Products of Their Distillation; Bituminous Substances; Mineral
Waxes
27.01-27.03

27.04

27.05-27.09

27.10-27.15
27.16

Section VI
Products of the Chemical or Allied Industries (Chapter 28-38)

Chapter 2 8
Inorganic Chemicals; Organic or Inorganic Compounds of Precious Metals, of Rare-Earth Metals,

of Radioactive Elements or of Isotopes
28.01-28.24
Chapter 28 through 38; or
A change to subheading 2801.10 through 2824.90 from any other subheading within Chapter
28 through 38, including another subheading within that group, whether or not there is also a
change from any other chapter, provided there is a regional value content of not less than:
(a) 60 percent where the transaction value method is used, or

(b) 50 percent where the net cost method is used.
2825.10-2825.60

2825.70
A change to subheading 2825.70 from any other subheading, except from subheading
2613.10.
2825.80-2825.90

28.26-28.29
A change to subheading 2826.11 through 2 829.90 from any other subheading within Chapter

2830.10-2830.30

2830.90
2613.90.
28.31-28.40

2841.10-2841.60

2841.70
A change to subheading 2841.70 f rom any other subheading, except from subheading
2613.10.
2841.80-2841.90
28.42-28.51

Chapter 2 9
Organic Chemicals
29.01-29.42

Chapter 3 0
Pharmaceutical Products
30.01
A change to subheading 3001.10 through 3001.90 from any other heading; or
A change to subheading 3001.10 through 3001.90 from any other subheading within heading
30.01, whether or not there is also a change from any other heading, provided there is a
regional value content of not less than:

30.02
30.03

30.04
heading 30.03; or

30.05

30.06

Chapter 3 1
Fertilizers
31.01-31.05
A change to subheading 3101.00 through 3105.90 from any subheading outside that group; or
A change to subheading 3101.00 through 3105.90 from any other subheading within that
group, whether or not there is also a change from any other chapter, provided there is a

Chapter 3 2
Tanning or Dyeing Extracts; Tannins and Their Derivatives; Dyes, Pigments and Other Colouring
Matter; Paints and Varnishes; Putty and Other Mastics; Inks
32.01-32.03

3204.11-3204.16

3204.17
For any color, as defined under the Color Index, identified in the following List of Colors, a
change to subheading 3204.17 from any other subheading.
List of Colors
pigment yellow:
1, 3, 16, 55, 61, 62, 65, 73, 74, 75, 81, 97, 120, 151, 152, 154, 1 5 6, and 1 7 5
pigment orange:
4, 5, 13, 34, 36, 60, and 6 2
pigment red:
2, 3, 5, 12, 13, 14, 17, 18, 19, 22, 23, 24, 31, 32, 48, 49, 52, 53, 57, 63, 112, 119, 133,
146, 170, 171, 175, 176, 183, 185, 187, 188, 208, and 210; or
For any color, as defined under the Color Index, not identified in the List of Colors:
(a) a change to subheading 3204.17 from any other subheading, except from within Chapter
29; or
(b) a change to subheading 3204.17 from any subheading within Chapter 29, whether or not
there is also a change from any other subheading, provided there is a regional value content o f
not less than:
(i) 60 percent where the transaction value method is used, or
(ii) 50 percent where the net cost method is used.
3204.19-3204.90

32.05

32.06-32.07

32.08-32.10
32.11-32.12
32.13-32.15
A change to heading 32.13 through 32.15 from any heading outside that group, except from
heading 32.08 through 32.10.
Chapter 3 3
Essential Oils and Resinoids; Perfumery, Cosmetic or Toilet Preparations

33.01
A change to subheading 3301.11 through 3301.90 from any other chapter; or
33, including another subheading within that group, whether or not there is also a change from
any other chapter, provided there is a regional value content of not less than:

33.02
A change to heading 33.02 from any other heading, except from heading 22.07 through 22.08.
33.03
A change to heading 33.03 from any other chapter; or
A change to heading 33.03 from any other heading within Chapter 33, whether or not there is
also a change from any other chapter, provided there is a regional value content of not less
than:

33.04-33.07
A change to subheading 3304.10 through 3307.90 from any heading outside that group; or
group, whether or not there is also a change from any heading outside that group, provided
there is a regional value content of not less than:

Chapter 3 4
Soap, Organic Surface-active Agents, Washing Preparations, Lubricating Preparations, Artificial

Waxes, Prepared Waxes, Polishing or Scouring Preparations, Candles and Similar Articles,
Modelling Pastes, "Dental Waxes" and Dental Preparations with a Basis of Plaster
34.01

3402.11-3402.19

3402.20-3402.90
A change to subheading 3402.20 through 3402.90 from any subheading outside that group; or
group, whether or not there is also a change from any subheading outside that group, provided
there is a regional value content of not less than:

34.03

34.04
A change to subheading 3 404.10 through 3404.90 from any other heading; or

34.05
34.06-34.07
A change to heading 34.06 through 34.07 from any other heading, including another heading
within that group.
Chapter 3 5
Albuminoidal Substances; Modified Starches; Glues; Enzymes

35.01

35.02

35.03-35.04
within that group.
35.05

35.06


35.07

Chapter 3 6
Explosives; Pyrotechnic Products; Matches; Pyrophoric Alloys; Certain Combustible Preparations

36.01-36.03
within that group.
36.04

36.05

36.06

Chapter 3 7
Photographic or Cinematographic Goods
37.01-37.03

37.04

37.05-37.06
37.07
37, including another subheading within that group, whether or not there is also a change from
any other chapter, provided there is a regional value content of not less than:

Chapter 3 8
Miscellaneous Chemical Products

38.01-38.07

38.08
Note:
A material, imported into the territory of a Party for use in the production of a good classified
under heading 38.08, shall be treated as a material originating in the territory of a Party if:
(a) such material is eligible, in the territories of both that Party and the Party to whose territory
the good is exported, for duty-free treatment at the most-favored-nation rate of duty; or
(b) the good is exported to the territory of the United States and such material would, if
imported into the territory of the United States, be free of duty under a trade agreement that is
not subject to a competitive need limitation.
A change to heading 38.08 from any other heading, provided there is a regional value content
of not less than:
(a) 60 percent where the transaction value method is used and the good contains no more than
one active ingredient, or80 percent where the transaction value method is used and the good
contains more than one active ingredient; or
(b) 50 percent where the net cost method is used and the good contains no more than one
active ingredient, or70 percent where the net cost method is used and the good contains more
than one active ingredient.
38.09-38.23

Section VII
Plastics and Articles Thereof; Rubber and Articles Thereof (Chapter 39-40)
Chapter 3 9
Plastics and Articles Thereof

39.01-39.20
within that group, provided there is a regional value content of not less than:

3921.11-3921.13
A change to subheading 3921.11 through 3921.13 from any other heading, provided there is a

3921.14
A change to subheading 3921.14 from any other heading, except from subheading 3920.20 or
3920.71. In addition, the regional value content must be not less than:

3921.19
A change to subheading 3921.19 from any other heading, provided there is a regional value
content of not less than:

3921.90
3920.71. In addition, the regional value content percentage must be not less than:

39.22
of not less than:

3923.10-3923.21

3923.29
3920.71. In addition, the regional value content percentage must be not less than:

3923.30-3923.90

39.24-39.26

Chapter 4 0
Rubber and Articles Thereof

40.01-40.06
A change to heading 40.01 through 40.06 from any other chapter; or
A change to heading 40.01 through 40.06 from any other heading within Chapter 40, including
another heading within that group, whether or not there is also a change from any other
chapter, provided there is a regional value content of not less than:

40.07-40.08
4009.10-4009.407
4009.508
A change to tubes, pipes or hoses of subheading 4009.50, of a kind for use in a motor vehicle
provided for in Canadian tariff item 8702.10.90 or 8702.90.90, U.S. tariff item 8702.10.00B or
8702.90.00B or Mexican tariff item 8702.10.01, 8702.10.02, 8702.90.01, 8702.90.02 or
8702.90.03, subheading 8703.21 through 8703.90, 8704.21 or 8704.31, or heading 87.11,
from any other heading, except from heading 40.10 through 40.17; or
A change to tubes, pipes or hoses of subheading 4009.50, of a kind for use in a motor vehicle
provided for in Canadian tariff item 8702.10.90 or 8702.90.90, U.S. tariff item 8702.10.00B or
8702.90.00B or Mexican tariff item 8702.10.01, 8702.10.02, 8702.90.01, 8702.90.02 or
8702.90.03, subheading 8703.21 through 8703.90, 8704.21 or 8704.31, or heading 87.11,
from subheading 4009.10 through 4017.00, whether or not there is also a change from any
other heading, provided there is a regional value content of not less than:
(a) 60 percent where the transaction method is used, or

(b) 50 percent where the net cost method is used; or
A change to tubes, pipes or hoses of subheading 4009.50, other than those of a kind for use in
a motor vehicle provided for in Canadian tariff item 8702.10.90 or 8702.90.90, U.S. tariff item
8702.10.00B or 8702.90.00B or Mexican tariff item 8702.10.01, 8702.10.02, 8702.90.01,
8702.90.02 or 8702.90.03, subheading 8703.21 through 8703.90, 8704.21 or 8704.31, or
heading 87.11, from any other heading, except from heading 40.10 through 40.17.
40.10-40.11 9
A change to heading 40.10 through 40.11 from any other heading, except from heading 40.09
through 40.17.
4012.10
A change to subheading 4012.10 from any other subheading, except from Canadian tariff item
4012.20.20, U.S. tariff item 4012.20.20A or 4012.20.50A or Mexican tariff item 4012.20.01.
4012.20-4012.90
40.13-40.15
through 40.17.
4016.10-4016.92
4016.9310
4016.93.aa
item 4016.93.04 from any other heading, except from Canadian tariff item 4008.19.10 or
4008.29.10, U.S. tariff item 4008.19.10A, 4008.19.50A, 4008.29.00A or 4008.29.00B or
Mexican tariff item 4008.19.01 or 4008.29.01.
4016.93
A change to subheading 4016.93 from any other heading, except from heading 40.09 through
40.17.
4016.94-4016.95
4016.99
4016.99.aa
A change to Canadian tariff item 4016.99.30, U.S. tariff item 4016.99.25A or 4016.99.50B or
Mexican tariff item 4016.99.10 from any other subheading, provided there is a regional value
content of not less than 50 percent under the net cost method.
4016.99 1 1
A change to subheading 4016.99 from any other heading, except from heading 40.09 through
40.17.
40.17
Section VIII
Raw Hides and Skins, Leather, Furskins and Articles Thereof; Saddlery and Harness; Travel
Goods, Handbags and Similar Containers; Articles of Animal Gut (Other Than Silk-worm Gut)
(Chapter 41-43)
Chapter 4 1
Raw Hides and Skins (Other Than Furskins) and Leather

41.01-41.03

41.04
41.05
A change to heading 41.05 from heading 41.01 through 41.03, Canadian tariff item
4105.19.10, U.S. tariff item 4105.19.00A or Mexican tariff item 4105.19.01, or any other
chapter.
41.06
chapter.
41.07
chapter.
41.08-41.11
through 41.11.
Chapter 4 2
Articles of Leather; Saddlery and Harness; Travel Goods, Handbags and Similar Containers;
Articles of Animal Gut (Other Than Silk-Worm Gut)
42.01

4202.11

4202.12
A change to subheading 4202.12 from any other chapter, except from heading 54.07, 54.08 or
55.12 through 55.16, or Canadian tariff item 5903.10.20, 5903.20.20, 5903.90.20,
5906.99.20 or 5907.00.13, U.S. tariff item 5903.10.15, 5903.10.18, 5903.10.20,
5903.10.25, 5903.20.15, 5903.20.18, 5903.20.20, 5903.20.25, 5903.90.15, 5903.90.18,
5903.90.20, 5903.90.25, 5906.99.20, 5906.99.25, 5907.00.10A, 5907.00.90A,
5906.99.03 or 5907.00.06.
4202.19-4202.21

4202.22
5906.99.20 or 5907.00.13, U.S.tariff item 5903.10.15, 5903.10.18, 5903.10.20,
5903.10.25, 5903.20.15, 5903.20.18, 5903.20.20, 5903.20.25, 5903.90.15, 5903.90.18,
5903.90.20, 5903.90.25, 5906.99.20, 5906.99.25, 5907.00.10A, 5907.00.90A,
5906.99.03 or 5907.00.06.
4202.29-4202.31

4202.32
5906.99.20 or 5907.00.13, U.S. tariff item 5903.10.15, 5903.10.18, 5903.10.20,
5903.10.25, 5903.20.15, 5903.20.18, 5903.20.20, 5903.20.25, 5903.90.15, 5903.90.18,
5903.90.20, 5903.90.25, 5906.99.20, 5906.99.25, 5907.00.10A, 5907.00.90A,
5906.99.03 or 5907.00.06.
4202.39-4202.91

4202.92
55.12 through 55.16, or Canadian t ariff item 5903.10.20, 5903.20.20, 5903.90.20,
5906.99.20 or 5907.00.13, U.S. tariff item 5903.10.15, 5903.10.18, 5903.10.20,
5903.10.25, 5903.20.15, 5903.20.18, 5903.20.20, 5903.20.25, 5903.90.15, 5903.90.18,
5903.90.20, 5903.90.25, 5906.99.20, 5906.99.25, 5907.00.10A, 5907.00.90A,
5906.99.03 or 5907.00.06.
4202.99

42.03-42.06
A change to heading 42.03 through 4 2.06 from any other chapter.

Chapter 4 3
Furskins and Artificial Fur; Manufactures Thereof

43.01
43.02

43.03-43.04
Section IX
-
Wood and Articles of Wood; Wood Charcoal; Cork and Articles of Cork; Manufactures of Straw,
of Esparto or of Other Plaiting Materials; Basketware and Wickerwork (Chapter 44-46)
Chapter 4 4
Wood and Articles of Wood; Wood Charcoal

44.01-44.21
within that group.
Chapter 4 5
Cork and Articles of Cork

45.01-45.02

45.03-45.04
Chapter 4 6
Manufactures of Straw, of Esparto or of Other Plaiting Materials; Basketware and Wickerwork

46.01

46.02
Section X
-
Pulp of Wood or of other Fibrous Cellulosic Material; Waste and Scrap of Paper or Paperboard;
Paper and Paperboard and Articles Thereof (Chapter 47-49)
Chapter 4 7
Pulp of Wood or of Other Fibrous Cellulosic Material; Waste and Scrap of Paper or Paperboard
47.01-47.07
Chapter 4 8
Paper and Paperboard; Articles of Paper Pulp, of Paper or of Paperboard

48.01-48.07

48.08-48.09
48.10-48.13

48.14-48.15
48.16
A change to heading 48.16 from any other heading, except from heading 48.09.
48.17-48.23
Chapter 4 9
Printed Books, Newspapers, Pictures and Other Products of the Printing Industry; Manuscripts,
Typescripts and Plans
49.01-49.11

Section XI
Textiles and Textile Articles (Chapter 50-63)
Note:
The textile and apparel rules should be read in conjunction with Annex 300-B (Textile and
Apparel Goods). For purposes of these rules, the term "wholly" means that the good is made
entirely or solely of the named material.
Chapter 5 0
Silk
50.0150.03

50.0450.06
50.07
Chapter 5 1
Wool, Fine or Coarse Animal Hair; Horsehair Yarn and Woven Fabric
51.0151.05

51.0651.10
51.1151.13
heading 51.06 through 51.10, 52.05 through 52.06, 54.01 through 54.04 or 55.09 through
55.10.
Chapter 5 2
Cotton
52.0152.07
A change to heading 52.01 through 52.07 from any other chapter, except from heading 54.01
through 54.05 or 55.01 through 55.07.
52.0852.12
A change to heading 52.08 through 52.12 from any heading outside thatgroup, except from
55.10.
Chapter 5 3
Other Vegetable Textile Fibers; Paper Yarn and Woven Fabrics of Paper Yarn
53.0153.05

53.0653.08
53.09
53.1053.11
Chapter 5 4
Man-Made Filaments
54.0154.06
54.07
5407.60.aa
A change to Canadian tariff item 5407.60.10, U.S. tariff item 5407.60.05A, 5407.60.10A or
5407.60.20A or Mexican tariff item 5407.60.02 from Canadian tariff item 5402.43.10 or
5402.52.10, U.S. tariff item 5402.43.00A or 5402.52.00A, Mexican tariff item 5402.43.01 or
5402.52.02, or any other chapter, except from heading 51.06 through 51.10, 52.05 through
52.06 or 55.09 through 55.10.
54.07
A change to heading 54.07 from any other chapter, except from heading 51.06 through 51.10,
52.05 through 52.06 or 55.09 through 55.10.
54.08
52.05 through 52.06 or 55.09 through 55.10.
Chapter 5 5
Man-Made Staple Fibers

55.0155.11
55.1255.16
55.10.
Chapter 5 6
Wadding, Felt and Nonwovens; Special Yarns; Twine, Cordage, Ropes and Cables and Articles
Thereof
56.0156.09
through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11, or
Chapter 54 through 55.
Chapter 5 7 1 2
Carpets and Other Textile Floor Coverings

57.0157.05
through 51.13, 52.04 through 52.12, 53.08 or 53.11, Chapter 54, or heading 55.08 through
55.16.
Chapter 5 8
Special Woven Fabrics; Tufted Textile Fabrics; Lace; Tapestries; Trimmings; Embroidery
58.0158.11
through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11, or
Chapter 54 through 55.
Chapter 5 9
Impregnated, Coated, Covered or Laminated Textile Fabrics; Textile Articles of a Kind Suitable
For Industrial Use
59.01
52.08 through 52.12, 53.10 through 53.11, 54.07 through 54.08 or 55.12 through 55.16.
59.02
A change to heading 59.02 from any other heading, except from heading 51.06 through 51.13,
52.04 through 52.12 or 53.06 through 53.11, or Chapter 54 through 55.
59.0359.08
through 51.13, 52.08 through 52.12, 53.10 through 53.11, 54.07 through 54.08 or 55.12
through 55.16.
59.09
52.08 through 52.12 or 53.10 through 53.11, Chapter 54, or heading 55.12 through 55.16.
59.10
A change to heading 59.10 from any other heading, except from heading 51.06 through 51.13,
52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11, or Chapter 54 through
55.
59.11
52.08 through 52.12, 53.10 through 53.11, 54.07 through 54.08 or 55.12 through 55.16.
Chapter 6 0
Knitted or Crocheted Fabrics

60.0160.02
through 51.13, Chapter 52, heading 53.07 through 53.08 or 53.10 through 53.11, or Chapter
54 through 55.
Chapter 6 1 1 3
Articles of Apparel and Clothing Accessories, Knitted or Crocheted
Note:
A change to any of the following headings or subheadings for visible lining fabrics:
51.11 through 51.12, 5208.31 through 5208.59, 5209.31 through 5209.59, 5210.31
through 5210.59, 5211.31 through 5211.59, 5212.13 through 5212.15, 5212.23 through
5212.25, 5407.42 through 5 4 07.44, 5407.52 through 5407.54, 5407.60, 5407.72 through
5407.74, 5407.82 through 5407.84, 5407.92 through 5407.94, 5408.22 through 5408.24
(excluding Canadian tariff item 5408.22.10, 5408.23.10 or 5408.24.10, U.S. tariff item
5408.22.00A, 5408.23.10A, 5408.23.20A or 5408.24.00A, Mexican tariff item 5408.22.04,
5408.23.05 or 5408.24.01), 5408.32 through 5408.34, 5512.19, 5512.29, 5512.99,
5516.94, 6001.10, 6001.92, 6002.43 or 6002.91 through 6002.93,
from any other heading outside that group.
Note 2:
For purposes of determining the origin of a good of this Chapter, the rule applicable to that
good shall only apply to the component that determines the tariff classification of the good and
such component must satisfy the tariff change requirements set out in the rule for that good. If
the rule requires that the good must also satisfy the t ariff change requirements for visible lining
fabrics listed in Note 1 to this Chapter, such requirement shall only apply to the visible lining
fabric in the main body of the garment, excluding sleeves, which covers the largest surface
area, and shall not apply to removable linings.
6101.10-6101.30
53.11, Chapter 54, or heading 55.08through 55.16 or 60.01 through 60.02, provided that:
(a) the good is both cut (or knit to shape) and sewn or otherwise assembled in the territory o f
one or more of the Parties, and
(b) the visible lining fabric listed in Note 1 to Chapter 61 satisfies the tariff change
requirements provided therein.
6101.90
A change to subheading 6101.90 from any other chapter, except from heading 51.06 through
51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11, Chapter 54, or
heading 55.08 through 5 5.16 or 60.01 through 60.02, provided that the good is both cut (or
knit to shape) and sewn or otherwise assembled in the territory of one or more of the Parties.
6102.106102.30
53.11, Chapter 54, or heading 55.08 through 55.16 or 60.01 through 60.02, provided that:
6102.90
A change to subheading 6102.90 from any other chapter, except f rom heading 51.06 through
heading 55.08 through 55.16 or 60.01 through 60.02, provided that the good is both cut (or
knit to shape) and sewn or otherwise assembled in the territory of one or more of the Parties.
6103.11-6103.12
6103.19
6103.19.aa
6103.19.02 or 6103.19.99 from any other chapter, except from heading 51.06 through 51.13,
52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11, Chapter 54, or heading
55.08through 55.16 or 60.01 through 60.02, provided that the good is both cut (or knit t o
shape) and sewn or otherwise assembled in the territory of one or more of the Parties.
6103.19
heading 55.08 through 55.16 or 60.01 through 60.02, provided that:
6103.21-6103.29
(b) with respect to a garment described in heading 61.01 or a jacket or a blazer described in
heading 61.03, of wool, fine animal hair, cotton or man-made fibers, imported as part of an
ensemble of these subheadings, the visible lining fabric listed in Note 1 to Chapter 61 satisfies
the tariff change requirements provided therein.
6103.31-6103.33
6103.39
6103.39.aa
Mexican tariff item 6103.39.02 or 6103.39.99 from any other chapter, except from heading
51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11,
Chapter 54, or heading 55.08 through 55.16 or 60.01 through 60.02, provided that the good
is both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more
of the Parties.
6103.39
6103.41-6103.49
53.11, Chapter 54, or heading 55.08 through 55.16 or 60.01 through 60.02, provided that the
good is both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or
more of the Parties.
6104.11-6104.13
6104.19
6104.19.aa
of the Parties.
6104.19
6104.21-6104.29
(b) with respect to a garment described in heading 61.02, a jacket or a blazer described in
heading 61.04, or a skirt described in heading 61.04, of wool, fine animal hair, cotton or man-
made fibers, imported as part of an ensemble of these subheadings, the visible lining fabric
listed in Note 1 to Chapter 61 satisfies the tariff change requirements provided therein.
6104.31-6104.33
heading 5 1.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through
6104.39
6104.39.aa
of the Parties.
6104.39
6104.41-6104.49
good is both cut(or knit to shape) and sewn or otherwise assembled in the territory of one or
6104.51-6104.53
6104.59
6104.59.aa
of the Parties.
6104.59
6104.61-6104.69
61.05-61.06
through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11, Chapter
54, or heading 55.08 through 55.16 or 60.01 through 60.02, provided that the good is both
cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the
Parties.
6107.11-6107.19
6107.21
A change to subheading 6107.21 from:
(a) Canadian tariff item 6002.92.10, U.S. tariff item 6002.92.00A or Mexican tariff item
6002.92.01, provided that the good, exclusive of collar, cuffs, waistband or elastic, is wholly o f
such fabric and the good is both cut and sewn or otherwise assembled in the territory of one or
more of the Parties, or
(b) any other chapter, except from heading 51.06 through 51.13, 52.04 through 52.12, 53.07
through 53.08 or 53.10 through 53.11, Chapter 54, or heading 55.08 through 55.16 or 60.01
through 60.02, provided that the good is both cut (or knit to shape) and sewn or otherwise
assembled in the territory of one or more of the Parties.
6107.22-6107.99
6108.11-6108.19
6108.21
6002.92.01, provided that the good, exclusive of waistband, elastic or lace, is wholly of such
fabric and the good is both cut and sewn or otherwise assembled in the territory of one or more
of the Parties, or
(b) any other chapter, except f rom heading 51.06 through 51.13, 52.04 through 52.12, 53.07
6108.22-6108.29
6108.31
6002.92.01, provided that the good, exclusive of collar, cuffs, waistband, elastic or lace, is
wholly of such fabric and the good is both cut and sewn or otherwise assembled in the territory
of one or more of the Parties, or
(b) any other chapter, except from heading 51.06 through 51.13, 52.04 through 52.12, 53.07
6108.32-6108.39
6108.91-6108.99
61.09-61.11
Parties.
6112.11-6112.19
53.11, Chapter 54, or heading 55.08 through 5 5.16 or 60.01 through 60.02, provided that the
6112.20
one or more of the Parties, and (b) with respect to a garment described in heading 61.01,
61.02, 62.01 or 62.02, of wool, fine animal hair, cotton or man-made fibers, imported as part
of a ski-suit of this subheading, the visible lining fabric listed in Note 1 to Chapter 61 satisfies
6112.31-6112.49
61.13-61.17
Parties.
Chapter 6 2
Articles of Apparel and Clothing Accessories, Not Knitted or Crocheted
Note:
A change to any of the following headings or subheadings for visible lining fabrics:
5212.25, 5407.42 through 5407.44, 5407.52 through 5407.54, 5407.60, 5407.72 through
5407.74, 5407.82 through 5407.84, 5407.92 through 5407.94, 5408.22 through 5408.24
(excluding Canadian tariff item 5408.22.10, 5408.23.10 or 5408.24.10, U.S. tariff item
5408.22.00A, 5408.23.10A, 5408.23.20A or 5408.24.00A or Mexican tariff item
5408.22.04, 5408.23.05 or 5408.24.01), 5408.32 through 5408.34, 5512.19, 5512.29,
5512.99, 5513.21 through 5513.49, 5514.21 through 5515.99, 5516.12 through 5516.14,
5516.22 through 5516.24, 5516.32 through 5516.34,5516.42 through 5516.44, 5516.92
through 5516.94, 6001.10, 6001.92, 6002.43 or 6002.91 through 6002.93,
from any other heading outside that group.
Note 2:
Apparel goods of this Chapter shall be considered to originate if they are both cut and sewn or
otherwise assembled in the territory of one or more of the Parties and if the fabric of the outer
shell, exclusive of collars or cuffs, is wholly of one or more of the following:
(a) Velveteen fabrics of subheading 5801.23, containing 85 per cent or more by weight o f
cotton;
(b) Corduroy fabrics of subheading 5801.22, containing 85 per cent or more by weight o f
cotton and containing more than 7.5 wales per centimeter;
(c) Fabrics of subheading 5111.11 or 5111.19, if handwoven, with a loom width of less than 7 6
cm, woven in the United Kingdom in accordance with the rules and regulations of the Harris
Tweed Association, Ltd., and so certified by the Association;
(d) Fabrics of subheading 5112.30, weighing not more than 340 grams per square meter,
containing wool, not less than 20 per cent by weight of fine animal hair and not less than 15 per
cent by weight of manmade staple fibers; or
(e) Batiste fabrics of subheading 5513.11 or 5513.21, of square construction, of single yarns
exceeding 76 metric count, containing between 60 and 70 warp ends and filling picks per
square centimeter, of a weight not exceeding 110 grams per square meter.
Note 3:
such component must satisfy the tariff change requirements set out in the rule for that good. If
the rule requires that the good must also satisfy the tariff change requirements for visible lining
fabrics listed in Note 1 to this Chapter, such requirement shall only apply to the visible lining
fabric in the main body of the garment, excluding sleeves, which covers the largest surface
area, and shall not apply to removable linings.
6201.11-6201.13
53.11, Chapter 54, or heading 55.08 through 55.16, 58.01 through 58.02 or 60.01 through
60.02, provided that:
(a) the good is both cut and sewn or otherwise assembled in the territory of one or more of the
Parties, and
6201.19
heading 55.08 through 55.16, 58.01 through 58.02 or 6 0.01 through 60.02, provided that the
good is both cut and sewn or otherwise assembled in the territory of one or more of the Parties.
6201.91-6201.93
Parties, and
6201.99
heading 55.08 through 55.16, 58.01 through 58.02 or 60.01 through 60.02, provided that the
6202.11-6202.13
Parties, and
6202.19
6202.91-6202.93
Parties, and
6202.99
6203.11-6203.12
Parties, and
6203.19
6203.19.aa
Chapter 54, or heading 55.08 through 55.16, 58.01 through 58.02 or 60.01 through 60.02,
provided that the good is both cut and sewn or otherwise assembled in the territory of one or
6203.19
heading 55.08 through 55.16, 58.01 through 58.02 or 60.01 through 60.02, provided that:
Parties, and
6203.21-6203.29
Parties, and
(b) with respect to a garment described in heading 62.01 or a jacket or a blazer described in
heading 62.03, of wool, fine animal hair, cotton or man-made fibers, imported as part of an
ensemble of these subheadings, the visible lining fabric listed in Note 1 to Chapter 62 satisfies
6203.31-6203.33
Parties, and
6203.39
6203.39.aa
6203.39
Parties, and
6203.41-6203.49
53.11, Chapter 54, or heading 5 5.08 through 55.16, 58.01 through 58.02 or 60.01 through
60.02, provided that the good is both cut and sewn or otherwise assembled in the territory o f
one or more of the Parties.
6204.11-6204.13
Parties, and
6204.19
6204.19.aa
6204.19
Parties, and
6204.21-6204.29
Parties, and (b) with respect to a garment described in heading 62.02, a jacket or a blazer
described in heading 62.04, or a skirt described in heading 62.04, of wool, fine animal hair,
cotton or man-made fibers, imported as part of an ensemble of these subheadings, the visible
lining fabric listed in Note 1 to Chapter 62 satisfies the tariff change requirements provided
therein.
6204.31-6204.33
Parties, and
6204.39
6204.39.aa
A change to Canadian tariff item 6204.39.90, U.S. tariff item 6204.39.60 or 6204.39.80 or
Chapter 5 4, or heading 55.08 through 55.16, 58.01 through 58.02 or 60.01 through 60.02,
6204.39
Parties, and
6204.41-6204.49
6204.51-6204.53
53.11, Chapter 54, or heading 55.08through 55.16, 58.01 through 58.02 or 60.01 through
Parties, and
6204.59
6204.59.aa
Mexican tariff item 6204.59.02, 6204.59.04 or 6204.59.99 from any other chapter, except
from heading 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10
through 53.11, Chapter 54, or heading 55.08 through 55.16, 58.01 through 58.02 or 60.01
through 60.02, provided that the good is both cut and sewn or otherwise assembled in the
territory of one or more of the Parties.
6204.59
Parties, and
6204.61-6204.69
6205.10
6205.20-6205.30
Note:
Men's or boys' shirts of cotton or manmade fibers shall be considered to originate if they are
both cut and assembled in the t erritory of one or more of the Parties and if the fabric of the
outer shell, exclusive of collars or cuffs, is wholly of one or more of the following:
(a) Fabrics of subheading 5208.21, 5208.22, 5208.29, 5208.31, 5208.32, 5208.39,

5208.41, 5208.42, 5208.49, 5208.51, 5208.52 or 5208.59, of average yarn 14 number
exceeding 135 metric;
(b) Fabrics of subheading 5513.11 or 5513.21, not of square construction, containing more
than 70 warp ends and filling picks per square centimeter, of average yarn number exceeding
70 metric;
(c) Fabrics of subheading 5210.21 or 5210.31, not of square construction, containing more
70 metric;
(d) Fabrics of subheading 5208.22 or 5208.32, not of square construction, containing more
65 metric;
(e) Fabrics of subheading 5407.81, 5407.82 or 5407.83, weighing less than 170 grams per
square meter, having a dobby weave created by a dobby attachment;
(f) Fabrics of subheading 5208.42 or 5208.49, not of square construction, containing more
85 metric;
(g) Fabrics of subheading 5208.51, of square construction, containing more than 75 warp ends
and filling picks per square centimeter, made with single yarns, of average yarn number 95 or
greater metric;
(h) Fabrics of subheading 5208.41, of square construction, with a gingham pattern, containing
more than 85 warp ends and filling picks per square centimeter, made with single yarns, o f
average yarn number 95 or greater metric, and characterized by a check effect produced by the
variation in color of the yarns in the warp and filling; or
(i) Fabrics of subheading 5208.41, with the warp colored with vegetable dyes, and the filling
yarns white or colored with vegetable dyes, of average yarn number greater than 65 metric.
heading 51.06 through 51.13, 52.04 through 52.12, 53.07through 53.08 or 53.10 through
6205.90
62.06-62.10
54, or heading 55.08 through 55.16, 58.01 through 58.02 or 60.01 through 60.02, provided
that the good is both cut and sewn or otherwise assembled in the territory of one or more o f
the Parties.
6211.11-6211.12
6211.20
Parties, and
(b) with respect to a garment described in heading 61.01, 61.02, 62.01 or 62.02, of wool, fine
animal hair, cotton or man-made fibers, imported as part of a ski-suit of this subheading, the
visible lining fabric listed in Note 1 to Chapter 62 satisfies the tariff change requirements
provided therein.
6211.31-6211.49
6212.10
A change to subheading 6212.10 from any other chapter, provided that the good is both cut
and sewn or otherwise assembled in the territory of one or more of the Parties.
6212.20-6212.90
62.13-62.17
54, or heading 55.08 through 55.16, 58.01 through 58.02 or 60.01 through 60.02, provided
that the good is both cut and sewn or otherwise assembled in the territory of one or more o f
the Parties.
Chapter 6 3
Other Made Up Textile Articles; Sets; Worn Clothing and Worn Textile Articles; Rags
Note:
such component must satisfy the tariff change requirements set out in the rule for that good.
63.0163.02
54 through 55, or heading 58.01 through 58.02 or 60.01 through 60.02, provided that the
63.03
6303.92.aa
Mexican tariff item 6303.92.01 from Canadian tariff item 5402.43.10 or 5402.52.10, U.S.
tariff item 5402.43.00A or 5402.52.00A or Mexican tariff item 5402.43.01 or 5402.52.02, or
any other chapter, except from heading 51.06 through 51.13, 52.04 through 52.12, 53.07
through 53.08 or 53.10 through 53.11, Chapter 54 through 55, or heading 58.01 through
58.02 or 60.01 through 60.02, provided that the good is both cut and sewn or otherwise
63.03
52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11, Chapter 54 through 55,
or heading 58.01 through 58.02 or 60.01 through 60.02, provided that the good is both cut
(or knit to shape) and sewn or otherwise assembled in the territory of one or more of the
Parties.
63.04-63.10
54 through 55, or heading 58.01 through 58.02 or 60.01 through 60.02, provided that the
Section XII
-
Footwear, Headgear, Umbrellas, Sun Umbrellas, Walking-Sticks, Seat-Sticks, Whips, Riding-Crops
and Parts Thereof; Prepared Feathers and Articles Made Therewith; Artificial Flowers; Articles o f
Human Hair (Chapter 64-67)
Chapter 6 4
Footwear, Gaiters and the Like; Parts of Such Articles

64.01-64.05
subheading 6406.10, provided there is a regional value content of not less than 55 percent
under the net cost method.
6406.10
A change to subheading 6406.10 from any other subheading, except from heading 64.01
through 64.05, provided there is a regional value content of not less than 55 percent under the
net cost method.
6406.20-6406.99
Chapter 6 5
Headgear and Parts Thereof
65.01-65.02

65.03-65.07
Chapter 6 6
Umbrellas, Sun Umbrellas, Walking-Sticks, Seat-Sticks, Whips, Riding-Crops and Parts Thereof
66.01
A change to heading 66.01 from any other heading, except from a combination of both:
(a) subheading 6603.20; and

(b) heading 39.20 through 39.21, 50.07, 51.11 through 51.13, 52.08 through 52.12, 53.09
through 53.11, 54.07 through 54.08, 55.12 through 55.16, 56.02 through 56.03, 58.01
through 58.11, 59.01 through 59.11, 60.01 through 60.02.
66.02

66.03
Chapter 6 7
Prepared Feathers and Down and Articles Made of Feathers or of Down; Artificial Flowers;
Articles of Human Hair
67.01
6701.00.aa
item 6701.00.01 or 6701.00.02 from any other tariff item.
67.01

67.02

67.03

67.04

Section XIII
-
Articles of Stone, Plaster, Cement, Asbestos, Mica or Similar Materials; Ceramic Products; Glass
and Glassware (Chapter 68-70)
Chapter 6 8
Articles of Stone, Plaster, Cement, Asbestos, Mica or Similar Materials

68.01-68.11

6812.10

6812.20

6812.30-6812.40
A change to subheading 6812.30 through 6812.40 from other subheading outside that group.
6812.50

6812.60-6812.90
A change to subheading 6812.60 through 6812.90 from any subheading outside that group.
68.13

68.14-68.15
Chapter 6 9
Ceramic Products
69.01-69.14
Chapter 7 0
Glass and Glassware

70.01-70.02

70.03-70.0915
70.10-70.20
through 70.20.
Section XIV
-
Natural or Cultured Pearls, Precious or Semi-precious Stones, Precious Metals, Metals Clad with
Precious Metal, and Articles Thereof; Imitation Jewellery; Coin (Chapter 7 1 )
Chapter 7 1
Natural or Cultured Pearls, Precious or Semi-Precious Stones, Precious Metals, Metals Clad with
Precious Metal, and Articles Thereof; Imitation Jewellery; Coin (Chapter 7 1 )
71.01-71.12

71.13-71.18
Note:
Pearls, temporarily or permanently strung but without the addition of clasps or other
ornamental features of precious metals or stones, shall be treated as an originating good only if
the pearls were obtained in the territory of one or more of the Parties.
Section XV
Base Metals and Articles of Base Metal (Chapter 72-83)
Chapter 7 2
Iron and Steel

72.01

7202.11-7202.60

7202.70
A change to subheading 7202.70 from any other chapter, except from subheading 2613.10.
7202.80-7202.99
A change to subheading 7202.80 through 7202.99 f rom any other chapter.
72.03-72.05

72.06-72.07
72.08-72.16
72.17
72.18-72.22
72.23
72.24-72.28
72.29
Chapter 7 3
Articles of Iron or Steel

73.01-73.03

7304.10-7304.39

7304.41
7304.41.aa
Mexican tariff item 7304.41.02 from subheading 7304.49 or any other chapter.
7304.41

7304.49-7304.90

73.05-73.07
73.08
A change to heading 73.08 from any other heading, except for changes resulting from the
following processes performed on angles, shapes, or sections of heading 72.16:
(a) drilling, punching, notching, cutting, cambering, or sweeping, whether performed individually
or in combination;
(b) adding attachments or weldments for composite construction;
(c) adding a ttachments for handling purposes;
(d) adding weldments, connectors or attachments to H-sections or I-sections; provided that the
maximum dimension of the weldments, connectors, or attachments is not greater than the
dimension between the inner surfaces of the flanges of the H-sections or I-sections
(e) painting, galvanizing, or otherwise coating; or
(f) adding a simple base plate without stiffening elements, individually or in combination with
drilling, punching, notching, or cutting, to create an article suitable as a column.
73.09-73.11
73.12-73.14
within that group.
7315.11-7315.12
A change to subheading 7315.11 through 7315.12 from subheading 7315.19, whether or not
there is also a change from any other heading, provided there is a regional value content of not
less than:

7315.19

7315.20-7315.89
less than:

7315.90
73.16
A change to heading 73.16 from any other heading, except from heading 73.12 or 7 3.15.
73.17-73.18
73.19-73.20
7321.11
7321.11.aa
7321.11.02 from any other subheading, except from Canadian tariff item 7321.90.51,
7321.90.52 or 7321.90.53, U.S. tariff item 7321.90.30A, 7321.90.30B or 7321.90.30C or
Mexican tariff item 7321.90.05, 7321.90.06 or 7321.90.07.
7321.11
A change to subheading 7321.11 from any other heading; or
A change to subheading 7321.11 from subheading 7321.90, whether or not there is also a
change from any other heading, provided there is a regional value content of not less than:

7321.12-7321.83
less than:

7321.90
7321.90.aa
item 7321.90.05 from any other tariff item.
7321.90.bb
7321.90.cc
A change to Canadian tariff item 7321.90.53, U.S. tariff item 7321.90.30C or Mexican tariff
7321.90

73.22-73.23
7324.10-7324.29
less than:

7324.90

73.25-73.26
A change to heading 73.25 through 73.26 from any other heading outside that group.
Chapter 7 4
Copper and Articles Thereof

74.01-74.02

74.03
A change to heading 74.03 from heading 74.01 or 74.02 or Canadian tariff item 7404.00.11,
7404.00.21 or 7404.00.91, U.S. tariff item 7404.00.00A or Mexican tariff item 7404.00.03,
whether or not there is also a change from any other chapter, provided there is a regional value

74.04
No required change in tariff classification to heading 74.04, provided the waste and scrap are
wholly obtained or produced entirely in the territory of one or more of the Parties as defined in
Article 415 of this Chapter.
74.05-74.07
A change to heading 74.05 through 74.07 from heading 74.01 or 74.02 or Canadian tariff item
7404.00.11, 7404.00.21 or 7404.00.91, U.S. tariff item 7 404.00.00A or Mexican tariff item
7404.00.03, whether or not there is also a change from any other chapter, provided there is a

7408.11
7408.11.aa
A change to Canadian tariff item 7408.11.11 or 7408.11.12, U.S. tariff item 7408.11.60 or
Mexican tariff item 7408.11.01 from any other chapter; or
A change to Canadian tariff item 7408.11.11 or 7408.11.12, U.S. tariff item 7408.11.60 or
Mexican tariff item 7408.11.01 from heading 74.01 or 74.02 or Canadian tariff item
7404.00.11, 7404.00.21 or 7404.00.91, U.S. tariff item 7404.00.00A or Mexican tariff item
7404.00.03, whether or not there is also a change from any other chapter, provided there is a

7408.11
7408.19-7408.29
heading 74.07.
74.09

74.10
74.11
A change to heading 74.11 from any other heading, except from Canadian tariff item
7407.10.13, 7407.10.22, 7407.21.13, 7407.21.22, 7407.22.14, 7407.22.22, 7407.29.13 or
7407.29.22, U.S. tariff item 7407.10.10A, 7407.21.10A, 7407.22.10A or 7407.29.10A or
Mexican tariff item 7407.10.03, 7407.21.03, 7407.22.03 or 7407.29.03, or heading 74.09.
74.12
74.13
A change to heading 74.13 from any other heading, except from heading 74.07 through 74.08;
or
A change to heading 74.13 from heading 74.07 through 74.08, whether or not there is also a

74.14-74.18
within that group.
7419.10
7419.91-7419.99
A change to subheading 7419.91 through 7419.99 from any other heading.
Chapter 7 5
Nickel and Articles Thereof

75.01-75.04

75.05

75.06
7506.10.aa
7506.20.aa
75.06

75.07-75.08
Chapter 7 6
Aluminum and Articles Thereof

76.01-76.03
76.04-76.06
76.07

76.08-76.09
76.10-76.13
within that group.
76.14
76.15-76.16
within that group.
Chapter 7 8
Lead and Articles Thereof

78.01-78.02

78.03-78.06

Chapter 7 9
Zinc and Articles Thereof

79.01-79.03

79.04-79.07


Chapter 8 0
Tin and Articles Thereof

80.01-80.02

80.03-80.04
80.05-80.07
Chapter 8 1
Other Base Metals; Cermets; Articles Thereof

8101.10-8101.91

8101.92

8101.93

8101.99

8102.10-8102.91

8102.92

8102.93
8102.92.10, U.S. tariff item 8102.92.00a or Mexican tariff item 8102.92.01.
8102.99

8103.10
8103.90

8104.11-8104.30

8104.90

8105.10

8105.90

81.06

8107.10

8107.90

8108.10

8108.90

8109.10

8109.90

81.10

81.11
8111.00.aa
A change to Canadian tariff item 8111.00.21, 8111.00.22, 8111.00.40, U.S. tariff item
8111.00.60 or Mexican tariff item 8111.00.01 from any other tariff item.
81.11
81.12-81.13

Chapter 8 2
Tools, Implements, Cutlery, Spoons and Forks, of Base Metal; Parts Thereof of Base Metal
82.01-82.15

Chapter 8 3
Miscellaneous Articles of Base Metal

8301.10-8301.50
A change to subheading 8301.10 through 8301.50 from any chapter; or
there is also a change from any other chapter, provided there is a regional value content of not
less than:

8301.60-8301.70

83.02-83.04
within that group.
8305.10-8305.20
less than:

8305.90

83.06-83.07

8308.10-8308.20
less than:

8308.90

83.09-83.10

8311.10-8311.30
less than:

8311.90
Section XVI
Machinery and Mechanical Appliances; Electrical Equipment; Parts Thereof; Sound Recorders and
Reproducers, Television Image and Sound Recorders and Reproducers, and Parts and Accessories
of Such Articles (Chapter 84-85)
Chapter 84
Nuclear Reactors, Boilers, Machinery and Mechanical Appliances; Parts Thereof
Note 1:
For purposes of this Chapter, the term, "printed circuit assembly", means a good consisting o f
one or more printed circuits of heading 85.34 with one or more active elements assembled
thereon, with or without passive elements. For purposes of this Note, "active elements" means
diodes, transistors and similar semiconductor devices, whether or not photosensitive, of heading
85.41, and integrated circuits and microassemblies of heading 85.42.
Note 2:
Canadian tariff item 8473.30.10, U.S. tariff item 8473.30.40C or Mexican tariff item
8473.30.02 covers the following parts for printers of subheading 8471.92:
(a) control or command assemblies, incorporating more than one of the following: printed circuit
assembly; hard or flexible (floppy) disc drive; keyboard; user interface;
(b) light source assemblies, incorporating more than one of the following: light emitting diode
assembly; gas laser; mirror polygon assembly; base casting;
(c) laser imaging assemblies, incorporating more than one of the following: photoreceptor belt
or cylinder; toner receptacle unit; toner developing unit; charge/discharge unit; cleaning unit;
(d) image fixing assemblies, incorporating more than one of the following: fuser; pressure roller;
heating element; release oil dispenser; cleaning unit; electrical control;
(e) ink jet marking assemblies, incorporating more than one of the following: thermal print head;
ink dispensing unit; nozzle and reservoir unit; ink heater;
(f) maintenance/sealing assemblies, incorporating more than one of the following: vacuum unit;
ink jet covering unit; sealing unit; purging unit;
(g) paper handling assemblies, incorporating more than one of the following: paper transport
belt; roller; print bar; carriage; gripper roller; paper storage unit; exit tray;
(h) thermal transfer imaging assemblies, incorporating more than one of the following: thermal
print head; cleaning unit; supply or take-up roller;
(i) ionographic imaging assemblies, incorporating more than one of the following: ion generation
and emitting unit; air assist unit; printed circuit assembly; charge receptor belt or cylinder; toner
receptacle unit; toner distribution unit; developer receptacle and distribution unit; developing
unit; charge/discharge unit; cleaning unit; or
(j) combinations of the above specified assemblies.

8401.10-8401.30
less than:

8401.40

8402.11-8402.20
less than:

8402.90
No required change in tariff classification to subheading 8402.90, provided there is a regional

value content o f not less than:

8403.10

8403.90

8404.10-8404.20
less than:

8404.90

8405.10
8405.90

8406.11-8406.19
A change to subheading 8406.11 through 8 406.19 from any subheading outside that group,
except from Canadian tariff item 8406.90.22, 8406.90.24, 8406.90.32 or 8406.90.34, U.S.
tariff item 8406.90.10A, 8406.90.10C, 8406.90.90A or 8406.90.90C or Mexican tariff item
8406.90.01 or 8406.90.02.
8406.90
8406.90.aa
A change to Canadian tariff item 8406.90.22 or 8406.90.32, U.S. tariff item 8406.90.10A or
8406.90.90A or Mexican tariff item 8406.90.01 from Canadian tariff item 8406.90.21 or
8406.90.31, U.S. tariff item8406.90.10B or 8406.90.90B or Mexican tariff item 8406.90.03,
or any other heading.
8406.90.bb
A change to Canadian tariff item 8406.90.24 or 8406.90.34, U.S. tariff item 8406.90.10C or
8406.90.90C or Mexican tariff item 8406.90.02 from any other tariff item.
8406.90

84.07-84.0816

8409.1017

8409.9118

value content of not less than:

8409.9919
A change to subheading 8 409.99 from any other heading; or


8410.11-8410.13
less than:

8410.90

8411.11-8411.82
A change to subheading 8411.11 through 8411.82 from subheading 8411.91 through


8411.91-8411.99

8412.10-8412.80
less than:

8412.90

8413.11-8413.8220
A change to subheading 8 413.11 through 8413.82 from any other heading; or


8413.91

8413.92


8414.10-8414.20
less than:

8414.30
8414.90.21 or 8414.90.51, U.S. tariff item 8414.90.20A or 8414.90.20B or Mexican tariff
item 8414.90.14.
8414.40-8414.8021
less than:

8414.90


8415.10
8415.90.11, 8415.90.21, 8415.90.31 or 8415.90.41, U.S. tariff item 8415.90.00A or
8415.90.00B or Mexican tariff item 8415.90.01 or from assemblies incorporating more than
one of the following: compressor, condenser, evaporator, connecting tubing.
8415.81-8415.8322
A change to subheading 8415.81 through 8415.83 from any subheading outside that group,
except from Canadian tariff item 8415.90.11, 8415.90.21, 8415.90.31 or 8415.90.41, U.S.
tariff item 8415.90.00A or8415.90.00B or Mexican tariff item 8415.90.01 or from assemblies
incorporating more than one of the following: compressor, condenser, evaporator, connecting
tubing; or
A change to subheading 8415.81 through 8415.83 from Canadian tariff item 8415.90.11,
8415.90.21, 8415.90.31 or 8415.90.41, U.S. tariff item 8415.90.00A or 8415.90.00B or
Mexican tariff item 8415.90.01 or from assemblies incorporating more than one of the
following: compressor, condenser, evaporator, connecting tubing, whether or not there is also a
change from any other subheading outside that group, provided there is a regional value

8415.90
8415.90.aa
A change to Canadian tariff item 8415.90.11, 8415.90.21, 8415.90.31 or 8415.90.41, U.S.

tariff item 8415.90.00A or 8415.90.00B or Mexican tariff item 8415.90.01 from any other
tariff item.
8415.90

8416.10-8416.30
less than:

8416.90
8417.10-8417.80
less than:

8417.90

8418.10-8418.21
except from subheading 8418.91 or Canadian tariff item 8418.99.11, 8418.99.21,
8418.99.12 or from assemblies incorporating more than one of the following: compressor,
condenser, evaporator, connecting tubing.
8418.22
A change to subheading 8418.22 from subheading 8418.91 through 8418.99, whether or not
less than:

8418.29-8418.40
except from subheading 8418.91 or Canadian tariff item 8418.99.11, 8418.99.21,
8418.99.12 or from assemblies incorporating more than one of the following: compressor,
condenser, evaporator, connecting tubing.
8418.50-8418.69


8418.91

8418.99
8418.99.aa
A change to Canadian tariff item 8418.99.11, 8418.99.21, 8418.99.31, 8418.99.41 or

8418.99.51, U.S. tariff item 8418.99.00A or Mexican tariff item 8418.99.12 from any other
tariff item.
8418.99

8419.11-8419.89
less than:

8419.90


8420.10
less than:

8420.91-8420.99

8421.11


8421.12
8421.91.11, 8421.91.12, 8537.10.11, 8537.10.19, 8537.10.41 or 8537.10.49, U.S. tariff
item 8421.91.00A, 8421.91.00B or 8537.10.00A or Mexican tariff item 8421.91.02,
8421.91.03 or 8537.10.05.
8421.19-8421.3923


8421.91
8421.91.aa
8421.91.bb
item 8421.91.03 from any other t ariff item.
8421.91

8421.99


8422.11
8422.90.11, 8 422.90.12, 8422.90.22, 8422.90.23, 8537.10.11, 8537.10.19, 8537.10.41 or
8537.10.49, U.S. tariff item 8422.90.05A, 8422.90.05B or 8537.10.00A or Mexican tariff
item 8422.90.05, 8422.90.06 or 8537.10.05 or from water circulation systems incorporating
a pump, whether or not motorized, and auxiliary apparatus for controlling, filtering, or dispersing
a spray.
8422.19-8422.40
less than:

8422.90
8422.90.aa
Mexican tariff item 8422.90.05 from any other tariff item.
8422.90.bb
A change to Canadian tariff item 8422.90.12 or 8422.90.23, U.S. tariff item 8422.90.05B or
8422.90

8423.10-8423.89
less than:

8423.90

8424.10-8424.89
A change to subheading 8424.10 through 8424.89 f rom subheading 8424.90, whether or not
less than:

8424.90

84.25-84.26
within that group, except from heading 84.31; or
A change to heading 84.25 through 84.26 from heading 84.31, whether or not there is also a
change from any other heading, including another heading within that group, provided there is a

8427.10
8427.10.aa
item 8427.10.03 or 8427.10.04 from any other heading, except from subheading 8431.20 or
8483.40 or heading 85.01; or
item 8427.10.03 or 8427.10.04 from subheading 8431.20 or 8483.40 or heading 85.01,
whether or not there is also a change from any other heading, provided there is a regional value

8427.10
A change to subheading 8427.10 from any other heading, except from subheading 8431.20; or

8427.20
8427.20.aa
item 8427.20.04 or 8427.20.05 from any other heading, except from heading 84.07 or 84.08
or subheading 8431.20 or 8483.40; or
item 8427.20.04 or 8427.20.05 from heading 84.07 or 84.08 or subheading 8431.20 or
8427.20

8427.90

84.28-84.30
heading 84.31; or
change from any heading outside that group, provided there is a regional value content of not
less than:

8431.10


8431.20

8431.31


8431.39


8431.41-8431.42

8431.43


8431.49


8432.10-8432.80
less than:

8432.90

8433.11-8433.60
less than:

8433.90
A change to subheading 8433.90 from any other heading.8434.10-8434.20
less than:

8434.90

8435.10

8435.90

8436.10-8436.80


8436.91-8436.99
8437.10-8437.80
less than:

8437.90

8438.10-8438.80
less than:

8438.90

8439.10-8439.30


8439.91-8439.99

8440.10
8440.90

8441.10-8441.80
less than:

8441.90
A change to subheading 8 441.90 from any other heading; or


8442.10-8442.30


8442.40-8442.50

8443.11-8443.50
A change to subheading 8443.11 through 8443.50 from subheading 8443.60 or 8443.90,


8443.60

8443.90

84.44-84.47
heading 84.48; or

8448.11-8448.19


8448.20-8448.59
A change to subheading 8448.20 through 8 4 48.59 from any other heading.

84.49

8450.11-8450.20
except from Canadian tariff item 8450.90.11, 8450.90.12, 8 4 50.90.21, 8450.90.22,
8450.90.31, 8450.90.32, 8450.90.41, 8450.90.42, 8537.10.11, 8537.10.19, 8537.10.41 or
8537.10.49, U.S. tariff item 8450.90.00A, 8450.90.00B or 8537.10.00A or Mexican tariff
item 8450.90.01, 8450.90.02 or 8537.10.05 or from washer assemblies incorporating more
than one of the following: agitator, motor, transmission, clutch.
8450.90
8450.90.aa
tariff item 8450.90.00A or Mexican tariff item 8450.90.01 from any other tariff item.
8450.90.bb

tariff item 8450.90.00B or Mexican tariff item 8450.90.02 from any other tariff item.
8450.90

8451.10

8451.21-8451.29
except from Canadian tariff item 8451.90.11, 8451.90.12, 8451.90.21, 8451.90.22,
8451.90.31 or 8451.90.32, U.S. tariff item 8451.90.00A or 8451.90.00B or Mexican tariff
item 8451.90.01 or 8451.90.02, or subheading 8537.10.
8451.30-8451.80
less than:

8451.90
8451.90.aa
A change to Canadian tariff item 8451.90.11, 8451.90.21 or 8451.90.31, U.S. tariff item
8451.90.00A or Mexican tariff item 8451.90.01 from any other tariff item.
8451.90.bb
8451.90.00B or Mexican tariff item 8451.90.02 from any other tariff item.
8451.90

8452.10-8452.30


8452.40-8452.90
A change to subheading 8452.40 through 8 4 52.90 from any other heading.

8453.10-8453.80
less than:

8453.90

8454.10-8454.30
less than:

8454.90

8455.10-8455.22
except from Canadian tariff item 8455.90.10, U.S. tariff item 8455.90.00A or Mexican tariff
item 8455.90.01.
8455.30
8455.90

8456.10
A change to subheading 8456.10 from any other heading, except from more than one of the
following:
*
Canadian tariff item 8466.93.11 or 8466.93.91, U.S. tariff item 8466.93.10A, 8466.93.50A or
8466.93.70A or Mexican tariff item 8466.93.04,
*
subheading 8537.10,
*
subheading 9013.20.
8456.20-8456.90
A change to subheading 8456.20 through 8456.90 from any other heading, except from more
than one of the following:
*
subheading 8413.50 through 8413.60,
*
*
subheading 8501.32 or 8501.52,
*
subheading 8537.10.
84.57
A change to heading 84.57 from any other heading, except from heading 84.59 or more than
one of the following:
*
*
*
*
subheading 8537.10.
8458.11
following:
*
subheading 8413.50 through 8 4 13.60,
*
*
*
subheading 8537.10.
8458.19
A change to subheading 8458.19 from any other heading, except from Canadian tariff item
8466.93.11 or 8466.93.91, U.S. tariff item 8466.93.10A, 8466.93.50A or 8466.93.70A or
Mexican tariff item 8466.93.04, or subheading 8501.32 or 8501.52.
8458.91
following:
*
*
*
*
subheading 8537.10.
8458.99
8459.10
8466.93.11 or 8466.93.91, U.S. tariff item8466.93.10A, 8466.93.50A or 8466.93.70A or
8459.21
following:
*
*
Canadian tariff item 8466.93.11 or 8466.93.91, U.S. tariff item 8 466.93.10A, 8466.93.50A or
*
*
subheading 8537.10; or
A change to subheading 8459.21 from more than one of the following:

*
*
*
*
subheading 8537.10,

8459.29
8459.31
following:
*
*
*
*

*
*
*
*
subheading 8537.10,

8459.39
8459.40-8459.51
A change to subheading 8459.40 through 8459.51 from any other heading, except from more
than one of the following:
*
*
Canadian tariff item 8 4 66.93.11 or 8466.93.91, U.S. tariff item 8466.93.10A, 8466.93.50A or
*
*
A change to subheading 8459.40 through 8459.51 from more than one of the following:
*
*
*
*
subheading 8537.10,

8459.59
Mexican tariff item 8466.93.04, or subheading 8501.32 or 8501.52.8459.61
following:
*
*
Canadian tariff item 8466.93.11 or 8466.93.91, U.S. tariff item8466.93.10A, 8466.93.50A or
8466.93.70A or Mexican tariff item 8 466.93.04,
*
*

*
*
*
*
subheading 8537.10,

8459.69
8459.70
8459.70.aa
item 8459.70.03 from any other heading, except from more than one of the following:
*
*
*
subheading 8 5 01.32 or 8501.52,
*
item 8459.70.03 from more than one of the following:
*
*
*
*
subheading 8537.10,

8459.70
A change to subheading 8459.70 from any other heading, except from Canadian t ariff item
8460.11
following:
*
*
*
*
subheading 8537.10.
8460.19
8460.21
following:
*
*
*
*
subheading 8537.10.
8460.29
8460.31
following:
*
*
*
*
subheading 8537.10.
8460.39
8460.40
8460.40.aa
*
*
*
*
subheading 8537.10.
8460.40
8460.90
8460.90.aa
Mexican tariff item 8460.90.03 from any other heading, except from more than one of the
following:
*
*
*
*
subheading 8537.10.
8460.90
8461.10
8461.10.aa
*
*
8466.93.70A or Mexican tariffitem 8466.93.04,
*
*
subheading 8537.10.
8461.10
8461.20
8461.20.aa
A change to Canadian tariff item 8 4 61.20.11 or 8461.20.21, US. tariff item 8461.20.00A or
following:
*
*
*
*
subheading 8537.10.
8461.20
8466.93.11 or 8 4 66.93.91, U.S. tariff item 8466.93.10A, 8466.93.50A or 8466.93.70A or
8461.30
8461.30.aa
*
*
*
subheading 8501.32 or 8 501.52,
*
subheading 8537.10.
8461.30
8461.40
8461.50
8461.50.aa
*
*
*
*
subheading 8537.10.
8461.50
8461.90
8461.90.aa
following:
*
*
*
*
subheading 8537.10.
8461.90
8462.10
8466.94.11, 8466.94.91 or 8483.50.20, U.S. tariff item 8466.94.10A, 8466.94.50A,
8483.50.80A or 8483.50.80B or Mexican tariff item 8466.94.02 or 8 4 83.50.05.8462.21
following:
*
*
Canadian tariff item 8466.94.11 or 8466.94.91, U.S. tariff item 8466.94.10A or 8466.94.50A
or Mexican tariff item 8466.94.02,
*
Canadian tariff item 8483.50.20, U.S. tariff item 8483.50.80A or 8483.50.80B or Mexican
tariff item 8483.50.05,
*
*
subheading 8537.10.
8462.29
8483.50.80A or 8483.50.80B or Mexican tariff item 8466.94.02 or 8483.50.05.
8462.31
following:
*
*
*
Canadian tariff i tem 8483.50.20, U.S. tariff item 8483.50.80A or 8483.50.80B or Mexican
*
*
subheading 8537.10.
8462.39
8462.41
following:
*
*
*
*
*
subheading 8537.10.
8462.49
8466.94.11, 8466.94.91 or 8483.50.20, U.S. tariff item 8 4 66.94.10A, 8466.94.50A,
8462.91
8462.91.aa
A change to Canadian tariff item 8462.91.10, U.S. tariff item 8462.91.00A, Mexican tariff item
8462.91.05 from any other heading, except from more than one of the following:
*
*
*
*
*
subheading 8537.10.
8462.91
8462.99
8462.99.aa
*
*
*
*
*
subheading 8537.10.
8462.99
84.63
8483.50.80A or 8483.50.80B or Mexican tariff item 8466.94.02 or 8483.50.05, or
subheading 8501.32 or 8501.52.
84.64
A change to heading 84.64 from any other heading, except from subheading 8466.91; or
A change to heading 84.64 from subheading 8466.91, whether or not there is also a change
from any other heading, provided there is a regional value content of not less than:

84.65
A change to heading 84.65 from any other heading, except from subheading 8466.92; or
A change to heading 84.65 from subheading 8466.92, whether or not there is also a change

84.66

8467.11-8467.89
A change to subheading 8467.11 through 8467.89 from subheading 8467.91, 8467.92 or


8467.91-8467.99

8468.10-8468.80
less than:

8468.90

84.69
8469.10.aa
item 8469.10.02 from any other heading, except from heading 84.73; or
item 8469.10.02 from heading 84.73, whether or not there is also a change from any other
heading, provided there is a regional value content of not less than 50 percent under the net
cost method.
84.69
A change to heading 84.69 from any other heading, except from heading 84.73; or
A change to heading 84.69 from heading 84.73, whether or not there is also a change from any

84.70

8471.10
A change to subheading 8471.10 from any other heading, except f rom heading 84.73; or
A change to subheading 8471.10 from heading 84.73, whether or not there is also a change

8471.20-8471.91
A change to subheading 8471.20 through 8471.91 from any subheading outside that group.
8471.92
8471.92.aa
Mexican tariff item 8471.92.02 from any other subheading, except from subheading 8540.30
or Canadian tariff item8540.91.10, U.S. tariff item 8540.91.40A or Mexican tariff item
8540.91.03.
8471.92.bb
A change to Canadian tariff item 8471.92.21, U.S. tariff item 8471.92.65A, 8471.92.65B or
8471.92.70A or Mexican tariff item 8471.92.03 from any other tariff item, except from
Canadian tariff item 8473.30.10, 8473.30.21 or 8473.30.22, U.S. tariff item 8473.30.40A or
8473.30.40C or Mexican tariff item 8473.30.02 or 8473.30.03.
8471.92.cc
A change to Canadian tariff item 8471.92.22, U.S. tariff item 8471.92.65C, 8471.92.65D or
8471.92.70B or Mexican tariff item 8471.92.08 from any other tariff item, except from
Canadian tariff item 8473.30.21 or 8473.30.22, U.S. tariff item 8473.30.40A or Mexican tariff
item 8473.30.03.
8471.92.dd
A change to Canadian tariff item 8471.92.23, U.S. tariff item 8471.92.65E, 8471.92.65F or
8471.92.70C or Mexican tariff item 8471.92.04 from any other tariff item, except from
Canadian tariff item 8473.30.10, 8473.30.21 or 8473.30.22, U.S. tariff item 8473.30.40A or
8473.30.40C or Mexican tariff item 8473.30.02 or 8473.30.03.
8471.92.ee
A change to Canadian tariff item 8471.92.24, U.S. tariff item 8 4 71.92.65G, 8471.92.65H or
8471.92.70D or Mexican tariff item 8471.92.05 from any other tariff item, except from
8473.30.02.
8471.92.ff
A change to Canadian tariff item 8471.92.25, U.S. tariff item 8471.92.65I, 8471.92.65J or
8471.92.70E or Mexican tariff item 8471.92.06 from any other tariff item, except from
8473.30.02.
8471.92.gg
A change to Canadian tariff item 8471.92.26, U.S. tariff item 8471.92.65K, 8471.92.65L or
8471.92.70F or Mexican tariff item 8471.92.07 from any other tariff item, except from
Canadian tariff item 8473.30.10, U.S. tariff item 8473.30.40C or Mexican tariff i tem
8473.30.02.
8471.92

8471.93

8471.99
8471.99.aa
8471.99.01 from any other tariff item.
8471.99.bb
A change to Canadian tariff item 8471.99.92, U.S. tariff item 8471.99.32 or 8471.99.34 or
8471.99.cc
8471.99
A change to any other tariff item within subheading 8471.99 from Canadian tariff item
8471.99.91, 8471.99.92 or 8471.99.98, U.S. tariff item 8471.99.15, 8471.99.32,
8471.99.34 or 8471.99.60 or Mexican tariff item 8471.99.01, 8471.99.02 or 8471.99.03, or
any other subheading.
84.72

8473.10
8473.10.aa
item 8473.10.01 from any other heading.
8473.10.bb
A change to Canadian tariff item 8473.10.92 or 8473.10.93, U.S. tariff item 8473.10.00B or
Mexican tariff item 8473.10.02 from any other heading; or
No required change in tariff classification to Canadian tariff item 8473.10.92 or 8473.10.93,

U.S. tariff item 8473.10.00B or Mexican tariff item 8473.10.02, provided there is a regional

8473.21


8473.29

8473.30
8473.30.aa
8473.30.bb
8473.30.cc
8473.30.ee
A change to U.S. tariff item 8473.30.40E from any other tariff item.
8473.30

8473.40


8474.10-8474.80
less than:

8474.90

8475.10-8475.20
less than:

8475.90

8476.11-8476.19
less than:

8476.90

8477.10
8477.90.11 or 8477.90.21, U.S. tariff item 8477.90.00A or Mexican tariff item 8477.90.01 or
more than one of the following:
*
Canadian tariff item 8477.90.12 or 8477.90.22, U.S. tariff item 8477.90.00B or Mexican tariff
item 8477.90.02,
*
subheading 8537.10.
8477.20
8477.90.11 or 8477.90.21, U.S. tariff item 8477.90.00a or Mexican tariff item 8477.90.01 or
*
Canadian tariff item 8477.90.12 or 8477.90.22, U.S. tariff item 8477.90.00B or Mexican t ariff
item 8477.90.02,
*
subheading 8537.10.
8477.30
*
Canadian tariff item 8477.90.13 or 8477.90.23, U.S. tariff item 8477.90.00C or Mexican tariff
item 8477.90.03,
*
subheading 8537.10.
8477.40-8477.80
less than:

8477.90

8478.10

8478.90

8479.10-8479.81
less than:

8479.82
8479.82.aa
A change to Mexican tariff item 8479.82.03 from any other tariff item, except from Canadian
tariff item 8479.90.61, 8479.90.62, 8479.90.63 or 8479.90.64, U.S. tariff item
8479.90.80B, 8479.90.80C, 8479.90.80D or 8479.90.80E or Mexican tariff item 8479.90.17,
8479.90.18, 8479.90.19 or 8479.90.20, or combinations thereof.
8479.82

8479.89
8479.89.aa
A change to Canadian tariff item 8479.89.91 or U.S. tariff item 8479.89.60B from any other
tariff item, except from Canadian tariff item 8479.90.61, 8479.90.62, 8479.90.63 or
8479.90.64, U.S. tariff item 8479.90.80B, 8479.90.80C, 8479.90.80D or 8479.90.80E or
Mexican tariff item 8479.90.17, 8479.90.18, 8479.90.19 or 8479.90.20, or combinations
thereof.
8479.89

8479.90
8479.90.aa
8479.90.bb
8479.90.cc
A change to Canadian tariff item 8479.90.63, U.S. tariff item 8479.90.80D or Mexican tariff
8479.90.dd
A change to Canadian tariff item 8479.90.64, U.S. tariff item 8479.90.80E or Mexican tariff
8479.90
84.80

8481.10-8481.8024
less than:

8481.90

8482.10-8482.8025
except from Canadian tariff item 8482.99.11 or 8482.99.91, U.S. tariff item 8482.99.10A,
8482.99.30A, 8482.99.50A or 8482.99.70A or Mexican tariff item 8482.99.01 or
8482.99.03; or
A change to subheading 8482.10 through 8482.80 from Canadian tariff item 8482.99.11 or
Mexican tariff item 8482.99.01 or 8482.99.03, whether or not there is also a change from any
subheading outside that group, provided there is a regional value content of not less than:

8482.91-8482.99

8483.1026

8483.2027
A change to subheading 8483.20 from any other subheading, except from subheading 8482.10
through 8482.80, Canadian tariff item 8482.99.11 or 8482.99.91, U.S. tariff item
8482.99.10A, 8482.99.30A, 8482.99.50A or 8482.99.70A or Mexican tariff item 8482.99.01
or 8482.99.03, or subheading 8483.90; or
A change to subheading 8483.20 from subheading 8482.10 through 8482.80, Canadian tariff
item 8482.99.11 or 8482.99.91, U.S. tariff item 8482.99.10A, 8482.99.30A, 8482.99.50A or
8482.99.70A or Mexican tariff item 8482.99.01 or 8482.99.03, or subheading 8483.90,
whether or not there is also a change from any other subheading, provided there is a regional

8483.3028

8483.40-8483.6029
except from subheading 8482.10 through 8482.80, Canadian tariff item 8482.99.11 or
Mexican tariff item 8482.99.01 or 8482.99.03, or subheading 8483.90; or

8482.80, Canadian tariff item 8482.99.11 or 8482.99.91, U.S. tariff item 8482.99.10A,
8482.99.30A, 8482.99.50A or 8482.99.70A or Mexican tariff item 8482.99.01 or
8482.99.03, or subheading 8483.90, whether or not there is also a change from any
subheading outside that group, provided there is a regional value content of not less than:

8483.90

84.84-84.85
within that group.
Section XVI
-
Machinery and Mechanical Appliances; Electrical Equipment; Parts Thereof; Sound Recorders and
Reproducers, Television Image and Sound Recorders and Reproducers, and Parts and Accessories
of Such Articles (Chapter 84-85) (cont'd)
Chapter 8 5
Electrical Machinery and Equipment and Parts Thereof; Sound Recorders and Reproducers,
Television Image and Sound Recorders and Reproducers, and Parts and Accessories of Such
Articles
Note 1:
Note 2:
Canadian tariff item 8517.90.31, U.S. tariff item 8517.90.70A or Mexican tariff item
8517.90.10 covers the following parts for facsimile machines:
(a) control or command assemblies, incorporating more than one of the following: printed circuit
assembly; modem; hard or flexible (floppy) disc drive; keyboard; user interface;
(b) optics module assemblies, incorporating more than one of the following: optics lamp; charge
couples device and appropriate optics; lenses; mirror;
(c) laser imaging assemblies, incorporating more than one of the following: photoreceptor belt
or cylinder; toner receptacle unit; toner developing unit; charge/discharge unit; cleaning unit;
(d) ink jet marking assemblies, incorporating more than one of the following: thermal print head;
ink dispensing unit; nozzle and reservoir unit; ink heater;
(e) thermal transfer imaging assemblies, incorporating more than one of the following: thermal
print head; cleaning unit; supply or take-up roller;
(f) ionographic imaging assemblies, incorporating more than one of the following: ion generation
and emitting unit; air assist unit; printed circuit assembly; charge receptor belt or cylinder; toner
receptacle unit; toner distribution unit; developer receptacle and distribution unit; developing
unit; charge/discharge unit; cleaning unit;
(g) image fixing assemblies, incorporating more than one of the following: fuser; pressure roller;
(h) paper handling assemblies, incorporating more than one of the following: paper transport
belt; roller; print bar; carriage; gripper roller; paper storage unit; exit tray; or
(i) combinations of the above specified assemblies.
Note 3:
(a) references to "high definition" as it applies to television receivers and cathode-ray tubes
refers to goods having
(i) an aspect ratio of the screen equal to or greater than 16:9, and
(ii) a viewing screen capable of displaying more than 700 scanning lines; and
(b) the video display diagonal is determined by measuring the maximum straight line dimension
across the visible portion of the face plate used for displaying video.
Note 4:
Canadian tariff item 8529.90.38 or 8529.90.39, U.S. tariff item 8529.90.10, 8529.90.15C,
8529.90.20C or 8529.90.35C or Mexican tariff item 8529.90.18 covers the following parts o f
television receivers (including video monitors and video projectors) :
(a) Video intermediate (IF) amplifying and detecting systems;

(b) Video processing and amplification systems;
(c) Synchronizing and deflection circuitry;
(d) Tuners and tuner control systems;
(e) Audio detection and amplification systems.
Note 5:
For purposes of Canadian tariff item 8540.91.10, U.S. tariff item 8540.91.40A or Mexican tariff
item 8540.91.03, the term "front panel assembly" refers to:
(a) with respect to a color cathode-ray television picture tube, an assembly which consists of a
glass panel and a shadow mask or aperture grille, attached for ultimate use, which is suitable for
incorporation into a color cathode-ray television picture tube (including video monitor or video
projector cathode-ray tube), and which has undergone the necessary chemical and physical
processes for imprinting phosphors on the glass panel with sufficient precision to render a video
image when excited by a stream of electrons; or
(b) with respect to a monochrome cathode-ray picture tube, an assembly which consists o f
either a glass panel or a glass envelope, which is suitable for incorporation into a monochrome
cathode-ray television picture tube (including video monitor or video projector cathode-ray
tube), and which has undergone the necessary chemical and physical processes for imprinting
phosphors on the glass panel or glass envelope with sufficient precision to render a video image
when excited by a stream of electrons.
Note 6:
The origin of a television combination unit shall be determined in accordance with the rule that
would be applicable to such unit if it were solely a television receiver.
85.0130
8503.00.11 through 8503.00.19, U.S. tariff item 8503.00.40A, 8503.00.60A or 8503.00.60C
or Mexican tariff item 8503.00.01 or 8503.00.05; or
A change to heading 85.01 from Canadian tariff item 8503.00.11 through 8503.00.19, U.S.
tariff item 8503.00.40A, 8503.00.60A or 8503.00.60C or Mexican tariff item 8503.00.01 or
8503.00.05, whether or not there is also a change from any other heading, provided there is a

85.02
A change to heading 85.02 from any other heading, except from heading 84.06, 84.11, 85.01
or 85.03; or
A change to heading 85.02 from heading 84.06, 84.11, 85.01 or 85.03, whether or not there
is also a change from any other heading, provided there is a regional value content of not less
than:

85.03

8504.10-8504.34
less than:

8504.40
8504.40.aa
A change to Canadian tariff item 8504.40.40 or Mexican tariff item 8504.40.12 from any other
subheading.
8504.40.bb
Mexican tariff item 8504.40.13 from any other subheading, except from Canadian tariff item
8504.90.12, 8504.90.13, 8504.90.14, 8504.90.15, 8504.90.16 or 8504.90.17, U.S. tariff
item 8504.90.00A or Mexican tariff item 8504.90.07 or 8504.90.09.
8504.40

8504.50

8504.90
8504.90.bb
A change to Canadian tariff item 8504.90.80 or Mexican tariff item 8504.90.08 from any other
tariff item.
8504.90

8505.11-8505.30
less than:

8505.90

8506.11-8506.20
A change to subheading 8506.11 through 8506.20 from any other heading; or A change t o
subheading 8506.11 through 8506.20 from subheading 8506.90, whether or not there is also
a change from any other heading, provided there is a regional value content of not less than:

8506.90

8507.10-8507.8031
less than:

8507.90

8508.10-8508.80
A change to subheading 8508.10 through 8508.80 from any other subheading outside that
group, except from heading 85.01 or Canadian tariff item 8508.90.10, U.S. tariff item
8508.90.00A or Mexican tariff item 8508.90.01; or
A change to subheading 8508.10 through 8508.80 from heading 85.01 or Canadian tariff item
8508.90.10, U.S. tariff item 8508.90.00A or Mexican tariff item 8508.90.01, whether or not
there is also a change from any other subheading, provided there is a regional value content o f
not less than:

8508.90

8509.10-8509.40
A change to subheading 8509.10 through 8509.40 from any other subheading outside that
group, except from heading 85.01 or Canadiantariff item 8509.90.11, 8509.90.21,
Mexican tariff item 8509.90.02; or
A change to subheading 8509.10 through 8509.40 from heading 85.01 or Canadian tariff item
8509.90.11, 8509.90.21, 8509.90.31 or 8509.90.41, U.S. tariff item 8509.90.20A,
8509.90.30A or 8509.90.40A or Mexican tariff item 8509.90.02, whether or not there is also
a change from any other subheading, provided there is a regional value content of not less than:

8509.80

8509.90

8510.10-8510.20
less than:

8510.90

8511.10-8511.8032
less than:

8511.90

8512.10-8512.4033

there is also a change from any other heading, provided there is also a regional value content o f
not less than:

8512.90

8513.10

8513.90

8514.10-8514.40
less than:

8514.90

8515.11-8515.80
less than:

8515.90
8516.10-8516.29
A change to subheading 8516.10 through 8516.29 from subheading 8516.80 or any other
heading; or
there is also a change from subheading 8516.80 or any other heading, provided there is a

8516.31
or heading 85.01.
8516.32
A change to subheading 8516.32 from subheading 8516.80 or any other heading; or
change from subheading 8516.80 or any other heading, provided there is a regional value

8516.33
A change to subheading 8516.33 from any other subheading, except from heading 85.01,
subheading 8516.80 or Canadian tariff item 8516.90.21, U.S. tariff item 8516.90.60A or
8516.40
A change to subheading 8516.40 from any other subheading, except from heading 84.02,
subheading 8481.40 or Canadian tariff item 8516.90.71, U.S. tariff item 8516.90.60B or
8516.50
A change to subheading 8 516.50 from any other subheading, except from Canadian tariff item
8516.90.41 or 8516.90.42, U.S. tariff item 8516.90.60C or 8516.90.60D or Mexican tariff
item 8516.90.09 or 8516.90.10.
8516.60
8516.60.aa
8516.60.02 from any other tariff item, except from Canadian tariff item 8516.90.51,
8516.90.52, 8516.90.53, 8537.10.11, 8537.10.19, 8537.10.41 or 8537.10.49, U.S. tariff
item 8516.90.20A, 8516.90.20B, 8516.90.20C or 8537.10.00A or Mexican tariff item
8516.90.11, 8516.90.12, 8516.90.13 or 8537.10.05.
8516.60

8516.71

8516.72
8516.90.61, U.S. tariff item 8516.90.60E or Mexican tariff item 8516.90.03, or subheading
9032.10; or
A change to subheading 8516.72 from Canadian tariff item 8516.90.61, U.S. tariff item
8516.90.60E or Mexican tariff item 8516.90.03, or subheading 9032.10, whether or not there
is also a change from any other subheading, provided there is a regional value content of not
less than:

8516.79

8516.80


8516.90
8516.90.cc
8516.90.dd
8516.90.ee
8516.90.ff
8516.90.gg
8516.90

8517.10
8517.90.11, 8517.90.12, 8517.90.13, 8517.90.14 or 8517.90.41, U.S. tariff item
8517.90.05B, 8 517.90.10B, 8517.90.15B, 8517.90.30A, 8517.90.30B, 8517.90.35B,
8517.90.40B, 8517.90.55B, 8517.90.60B, 8517.90.70D or 8517.90.80B or Mexican tariff
item 8517.90.12 or 8517.90.15.
8517.20-8517.30
A change to subheading 8517.20 through 8517.30 from any other subheading, including
another subheading within that group, provided that, with respect to printed circuit assemblies
(PCAs) of Canadian tariff item 8473.30.21, 8473.30.22, 8517.90.11, 8517.90.12,
8517.90.05A, 8517.90.05B, 8517.90.10A, 8517.90.10B, 8517.90.15A, 8517.90.15B,
8517.90.30B, 8517.90.35A, 8517.90.35B, 8517.90.40A, 8517.90.40B, 8517.90.55B,
8517.90.60A, 8517.90.60B, 8517.90.70D or 8517.90.80B or Mexican tariff item 8473.30.03,
8517.90.13 or 8517.90.15:
(a) except as provided in subparagraph (b), for each multiple of nine PCAs, or any portion
thereof, that is contained in the good, only one PCA may be a non-originating PCA, and
(b) if the good contains less than three PCAs, all of the PCAs must be originating PCAs.
8517.40
8517.40.bb
8517.40.03 from any other subheading, provided that, with respect to printed circuit
assemblies (PCAs) of Canadian tariff item 8473.30.21, 8473.30.22, 8517.90.11, 8517.90.12,
8517.90.05A, 8517.90.05B, 8517.90.10A, 8517.90.10B, 8517.90.15A, 8517.90.15B,
8517.90.30B, 8517.90.35A, 8517.90.35B, 8517.90.40A, 8517.90.40B, 8517.90.55B,
8517.90.60A, 8517.90.60B, 8517.90.70D or 8517.90.80B or Mexican tariff item 8473.30.03,
8517.90.13 or 8517.90.15:
b) if the good contains less than three PCAs, all of the PCAs must be originating PCAs.
8517.40

8517.81
8517.81.aa
A change to Mexican tariff item 8517.81.05 from any other tariff item, except from Canadian
tariff item 8517.90.31, U.S. tariff item 8517.90.70A or Mexican tariff item 8517.90.10.
8517.81
A change to subheading 8517.81 from any other subheading, provided that, with respect t o
printed circuit assemblies (PCAs) of Canadian tariff item 8473.30.21, 8473.30.22,
8517.90.11, 8517.90.12, 8517.90.13, 8517.90.14, 8517.90.43 or 8517.90.44, U.S. tariff
item 8473.30.40A, 8 5 17.90.05A, 8517.90.05B, 8517.90.10A, 8517.90.10B, 8517.90.15A,
8517.90.15B, 8517.90.30B, 8517.90.35A, 8517.90.35B, 8517.90.40A, 8517.90.40B,
8517.90.55B, 8517.90.60A, 8517.90.60B, 8517.90.70D or 8517.90.80B or Mexican tariff
item 8473.30.03, 8517.90.13 or 8517.90.15:
8517.82
8517.82.aa
A change to Canadian tariff item 8517.82.10 or U.S. tariff item 8517.82.00A from any other
tariff item, except from Canadian tariff item8517.90.31, U.S. tariff item 8517.90.70A or
8517.82

8517.90
8517.90.aa
item 8517.90.12 from any other tariff item, except from Canadian tariff item 8517.90.11,
8517.90.12, 8517.90.13 or 8517.90.14, U.S. tariff item 8517.90.05B, 8517.90.10B,
8517.90.15B, 8517.90.30B, 8517.90.35B, 8517.90.40B, 8517.90.55B, 8517.90.60B,
8517.90.70D or 8517.90.80B or Mexican tariff item 8517.90.15.
8517.90.bb
8517.90.10A, 8517.90.15A, 8517.90.35A, 8517.90.40A or 8517.90.60A or Mexican tariff
item 8517.90.13 from any other tariff item, provided that, with respect to printed circuit
assemblies (PCAs) of Canadian tariff item 8473.30.21, 8473.30.22, 8517.90.11, 8517.90.12,
8517.90.13, 8517.90.14, 8517.90.42, 8517.90.45 or 8517.90.46, U.S. tariff item
8473.30.40A, 8517.90.05B, 8517.90.10B, 8517.90.15B, 8517.90.30B, 8517.90.35B,
8517.90.40B, 8517.90.55A, 8517.90.55B, 8517.90.60B, 8517.90.70C, 8517.90.70D,
8517.90.80A or 8517.90.80B or Mexican tariff item 8473.30.03, 8517.90.14 or 8517.90.15:
8517.90.cc
8517.90.dd
8517.90.55A, 8517.90.70C or 8517.90.80A or Mexican tariff item 8517.90.14 from any other
tariff item.
8517.90.ee

tariff item 8517.90.05B, 8517.90.10B, 8517.90.15B, 8517.90.30B, 8517.90.35B,
8517.90.40B, 8517.90.55B, 8517.90.60B, 8 517.90.70D or 8517.90.80B or Mexican tariff
8517.90.ff

tariff item 8517.90.05C, 8517.90.10C, 8517.90.15C,8517.90.30C, 8 5 17.90.35C,
8517.90.40C, 8517.90.55C, 8517.90.60C, 8517.90.70E or 8517.90.80C or Mexican tariff
item 8517.90.16 from any other heading.
8517.90.gg
8517.90.05D, 8517.90.10D, 8517.90.15D, 8517.90.30D, 8517.90.35D, 8517.90.40D,
8517.90.55D, 8517.90.60D, 8517.90.70F or 8517.90.80D or Mexican tariff item 8517.90.99
from Canadian tariff item 8517.90.21, 8517.90.22, 8517.90.23 or 8517.90.24, U.S. tariff
item 8517.90.05C, 8517.90.10C, 8517.90.15C, 8517.90.30C, 8517.90.35C, 8517.90.40C,
8517.90.55C, 8517.90.60C, 8517.90.70E or 8517.90.80C or Mexican tariff item 8517.90.16,
or any other heading.
8517.90

8518.10-8518.21
less than:

8518.22
A change to subheading 8518.22 from subheading 8 518.29 or 8518.90, whether or not there
than:

8518.29

8518.30
8518.30.aa
8518.30

8518.40-8518.50
less than:

8518.90

8519.10-8519.9934
another subheading within that group, except from Canadian tariff item 8522.90.31,
8522.90.32 or 8522.90.39, U.S. tariff item 8522.90.40A, 8522.90.40B, 8522.90.60A or
8522.90.90A or Mexican tariff item 8522.90.14.
8520.10-8520.90
8522.90.40B, 8522.90.60A or 8522.90.90A or Mexican tariff item 8522.90.14.
8521.10-8521.90
8522.90.40B, 8522.90.60A or 8522.90.90A or Mexican tariff item 8522.90.14.
85.22

85.23-85.24
within that group.
8525.10-8525.20
provided that, with respect to printed circuit assemblies (PCAs) of Canadian tariff item
8529.90.20A, 8529.90.30A, 8529.90.35A, 8529.90.40A, 8529.90.40B, 8529.90.45A or
8529.90.50A or Mexican tariff item 8529.90.16:
8525.30
8525.30.aa
Mexican tariff item 8525.30.03 from any other tariff item, except from Canadian tariff item
8525.30.12 or 8525.30.22, U.S. tariff item 8525.30.00B or Mexican tariff item 8525.30.04.
8525.30
8529.90.20A, 8529.90.30A, 8529.90.35A, 8529.90.40A, 8529.90.40B, 8529.90.45A or
8529.90.50A or Mexican tariff item 8529.90.16.
8526.10
8525.20, Canadian tariff item 8529.90.20, U.S. tariff item 8529.90.40C or 8529.90.40D or
Mexican tariff item 8529.90.17 or more than two of the following:
*
display unit provided for in subheading 8471.92 or 8529.90, incorporating a cathode-ray tube,
flat panel screen or similar display,
*
subheading 8529.10,
*
Canadian tariff item 8529.90.11, 8529.90.12, 8529.90.13 or 8529.90.14, U.S. tariff item
8529.90.15A, 8529.90.20A, 8529.90.30A, 8529.90.35A, 8529.90.40A, 8529.90.40B,
8529.90.45A or 8529.90.50A or Mexican tariff item 8529.90.16.
8526.91-8526.92
heading 85.29; or
A change to subheading 8526.91 through 8526.92 from heading 85.29, whether or not there
than:

8527.11-8527.3935
8529.90.12, 8 529.90.13 or 8529.90.14, U.S. tariff item 8529.90.15A, 8529.90.20A,
8529.90.30A, 8529.90.35A, 8529.90.40A, 8529.90.40B, 8529.90.45A or 8529.90.50A or
8527.90
A change to subheading 8527.90 from any other subheading, provided that, with respect t o
printed circuit assemblies (PCAs) of Canadian tariff item 8529.90.11, 8529.90.12, 8529.90.13
or 8529.90.14, U.S. tariff item 8529.90.15A, 8529.90.20A, 8529.90.30A, 8529.90.35A,
8529.90.40A, 8529.90.40B, 8529.90.45A or 8529.90.50A or Mexican tariff item 8529.90.16:
8528.10
8528.10.aa

tariff item 8528.10.30A or 8528.10.60B or Mexican tariff item 8528.10.01 or 8528.10.08
from any other heading, except from Canadian tariff item 8529.90.11, 8529.90.12,
8529.90.13, 8529.90.14, 8529.90.31, 8529.90.32, 8529.90.38 or 8529.90.39, U.S. tariff
item 8529.90.10, 8529.90.15A, 8529.90.15C, 8529.90.15D, 8529.90.20A, 8529.90.20C,
8529.90.20D, 8 529.90.30A, 8529.90.35A, 8529.90.35C, 8529.90.35D, 8529.90.40A,
8529.90.40B, 8529.90.45A or 8529.90.50A or Mexican tariff item 8529.90.16, 8529.90.18
or 8529.90.19.
8528.10.bb

tariff item 8528.10.30B or 8528.10.60C or Mexican tariff item 8528.10.02 or 8528.10.09
item 8528.10.60A or Mexican tariff item 8528.10.07 or 8528.10.14, or any other heading,
item 8540.11.01 or more than one of the following:
*
7011.20.02 or 7011.20.03,
*
8540.91.03.
Note:
Commencing on January 1, 1999, the above rule of origin for tariff item 8528.10.bb shall be
replaced by the following:
8528.10.bb

tariff item 8528.10.30B or 8528.10.60C or Mexican tariff item 8528.10.02 or 8528.10.09
from any other heading, except from Canadian tariff item 8529.90.31, 8 529.90.32 or
8540.11.22, U.S. tariff item 8529.90.15D, 8529.90.20D, 8529.90.35D or 8540.11.00A or
Mexican tariff item 8529.90.19 or 8540.11.01 or more than one of the following:
*
7011.20.02 or 7011.20.03,
*
8540.91.03.
8528.10.cc

tariff item 8528.10.30C or 8529.10.60D or Mexican tariff item 8528.10.03 or 8528.10.10
except from Canadian tariff item 8540.12.90, U.S. tariff item 8540.12.40A or 8540.12.80A or
Mexican tariff item 8540.12.99 or more than one of the following:
*
7011.20.02 or 7011.20.03,
*
8540.91.03.
8528.10.dd

tariff item 8528.10.30D or 8528.10.60E or Mexican tariff item 8528.10.04 or 8528.10.11
except from Canadian tariff item 8540.11.11, 8540.11.12 or 8540.91.10, U.S. tariff item
8540.11.00C, 8540.11.00D or 8540.91.40A or Mexican tariff item 8540.11.03, 8540.11.04
or 8540.91.03. In addition, no more than half the number of semiconductors of Canadian tariff
item 8542.11.10, U.S. tariff item 8542.11.00A or Mexican tariff item 8542.11.02, used in the
television receiver component, may be non-originating; or

tariff item 8528.10.30D or 8528.10.60E or Mexican tariff item 8528.10.04 or 8528.10.11
except from Canadian tariff item 8540.11.11, 8540.11.12 or 8540.91.10, U.S. tariff item
8540.11.00C, 8540.11.00D or8540.91.40A or Mexican tariff item 8540.11.03, 8540.11.04 or
8540.91.03. In addition, the regional value content must be not less than:

8528.10.ee

tariff item 8528.10.30E or 8528.10.60F or Mexican tariff item 8528.10.05 or 8528.10.12
except from Canadian tariff item 8540.12.10 or 8540.91.10, U.S. tariff item 8540.12.40B,
8540.12.80B or 8540.91.40A or Mexican tariff item 8540.12.01 or 8540.91.03. In addition,
no more than half the number of semiconductors of Canadian tariff item 8542.11.10, U.S. tariff
item 8542.11.00A or Mexican tariff item 8542.11.02, used in the television receiver
component, may be non-originating; or

tariff item 8528.10.30E or 8528.10.60F or Mexican tariff item 8528.10.05 or 8528.10.12
except from Canadian tariff item 8540.12.10 or 8540.91.10, U.S. tariff item 8540.12.40B,
8540.12.80B or 8540.91.40A or Mexican tariff item 8540.12.01 or 8540.91.03. In addition,
the regional value content must be not less than:

8528.10.ff

tariff item 8528.10.30F or 8528.10.60G or Mexican tariff item 8528.10.06 or 8528.10.13
from Canadian tariff item 8528.10.11, 8528.10.12, 8528.10.18 or 8 528.10.19, U.S. tariff
except from Canadian tariff item 8529.90.40, U.S. tariff item 8529.90.35E or Mexican tariff
item 8529.90.20.
8528.10.gg

tariff item 8528.10.60A or Mexican tariff item 8528.10.07 or 8528.10.14 from any other
heading, except Canadian tariff item 8529.90.31 or 8529.90.32, U.S. tariff item 8529.90.15D,
8529.90.20D or 8529.90.35D or Mexican tariff item 8529.90.19.
8528.10
A change to subheading 8528.10 from Canadian tariff item 8528.10.11, 8528.10.12,

8528.10.14, or any other heading, provided there is a regional value content of not less than:

8528.20
A change to subheading 8528.20 from any other heading, provided that, with respect t o
printed circuit assemblies (PCAs) of Canadian tariff item 8529.90.11, 8529.90.12,
8529.90.13, 8529.90.14, 8529.90.38 or 8529.90.39, U.S. tariff item 8529.90.10,
8529.90.15A, 8529.90.15C, 8529.90.20A, 8529.90.20C, 8529.90.30A, 8529.90.35A,
8529.90.35C, 8529.90.40A, 8529.90.40B, 8529.90.45A or 8529.90.50A or Mexican tariff
item 8529.90.16 or 8529.90.18:
8529.10

8529.90
8529.90.aa

tariff item 8529.90.15A, 8529.90.20A, 8529.90.30A, 8529.90.35A, 8529.90.40A,
8529.90.40B, 8529.90.45A or 8529.90.50A or Mexican tariff item 8529.90.16 from any other
tariff item.
8529.90.bb
A change to Canadian tariff item 8529.90.20, U.S. tariff item 8529.90.40C or 8529.90.40D or
8529.90.cc
A change to Canadian tariff item 8529.90.38 or 8529.90.39, U.S. tariff item 8529.90.10,
8529.90.15C, 8529.90.20C or 8529.90.35C or Mexican tariff item 8529.90.18 from any other
tariff item.
8529.90.dd
A change to Canadian tariff item 8529.90.31 or 8529.90.32, U.S. tariff item 8529.90.15D,
8529.90.20D or 8529.90.35D or Mexican tariff item 8529.90.19 from any other tariff item.
8529.90.ee
A change to Canadian tariff item 8529.90.40, U.S. tariff item 8529.90.35E or Mexican tariff
8529.90.ff
A change to Canadian tariff item 8529.90.51, 8 529.90.52, 8529.90.53 or 8529.90.54, U.S.

tariff item 8529.90.15B, 8529.90.20B, 8529.90.30B, 8529.90.35B, 8529.90.45C or
8529.90.50B or Mexican tariff item 8529.90.21 from any other tariff item.
8529.90.gg
A change to Canadian tariff item 8529.90.60, U.S. tariff item 8529.90.30C or 8529.90.50C or
Mexican tariff item 8529.90.22 from any other heading; or
No required change in tariff classification to Canadian tariff item 8529.90.60, U.S. tariff item
8529.90.30C or 8529.90.50C or Mexican tariff item 8 5 29.90.22, provided there is a regional

8529.90

8530.10-8530.80
less than:

8530.90

8531.10
8531.90.11 or 8531.90.21, U.S. tariff item 8531.90.00A or Mexican tariff item 8531.90.03.
8531.20

8531.80
8531.80.aa
A change to U.S. tariff item 8531.80.00A or 8531.80.00B from any other subheading, provided
that, with respect to printed circuit assemblies (PCAs) of Canadian tariff item 8531.90.11 or
8531.90.21, U.S. tariff item 8 531.90.00A or Mexican tariff item 8531.90.03:
8531.80

8531.90

8532.10

8532.21-8532.30
another subheading within that group.
8532.90

8533.10-8533.39
8533.40
8533.90.11, U.S. tariff item 8533.90.00A or Mexican tariff item 8533.90.02.
8533.90

85.34

85.35
8535.90.aa
item 8535.90.08, 8535.90.20 or 8535.90.24 from any other tariff item, except from Canadian
tariff item 8538.90.20, U.S. tariff item 8538.90.00B or Mexican tariff item 8538.90.12; or
item 8535.90.08, 8535.90.20 or 8535.90.24 from Canadian tariff item 8538.90.20, U.S. tariff
item8538.90.00B or Mexican tariff item 8 538.90.12, whether or not there is also a change
from any other tariff item, provided there is a regional value content of not less than:

85.35
8538.90.30 or 8538.90.60, U.S. tariff item 8538.90.00A or 8538.90.00C or Mexican tariff
item 8538.90.13 or 8538.90.14; or
A change to heading 85.35 from Canadian tariff item 8538.90.30 or 8538.90.60, U.S. tariff
item 8538.90.00A or 8538.90.00C or Mexican tariff item 8538.90.13 or 8538.90.14, whether
or not there is also a change from any other heading, provided there is a regional value content
of not less than:

85.3636
8536.30.aa
item 8536.30.05 from any other tariff item, except from Canadian tariff item 8538.90.20, U.S.
tariff item 8538.90.00B or Mexican tariff item 8538.90.12; or
item 8536.30.05 from Canadian tariff item 8538.90.20, U.S. tariff item 8538.90.00B or
Mexican tariff item 8538.90.12, whether or not there is also a change from any other tariff
item, provided there is a regional value content of not less than:
(a) 60 percent where the transaction value method is used, or (b) 50 percent where the net
cost method is used.
8536.50.aa
A change to Canadian tariff item 8536.50.21 or 8536.50.29 or U.S. tariff item 8536.50.00A
from any other tariff item, except from Canadian tariff item 8538.90.20, U.S. t ariff item
8538.90.00B or Mexican tariff item 8538.90.12; or
A change to Canadian tariff item 8536.50.21 or 8536.50.29 or U.S. tariff item 8536.50.00A
from Canadian tariff item 8538.90.20, U.S. tariff item 8538.90.00B or Mexican tariff item
8538.90.12, whether or not there is also a change from any other tariff item, provided there is
a regional value content of not less than:
8536.90.aa
A change to Mexican tariff item 8536.90.07 or 8536.90.27 from any other tariff item, except
from Canadian tariff item 8538.90.20, U.S. tariff item 8538.90.00B or Mexican tariff item
8538.90.12; or
A change to Mexican tariff item 8536.90.07 or 8536.90.27 from Canadian tariff item
8538.90.20, U.S. tariff item 8538.90.00B or Mexican tariff item 8538.90.12, whether or not
there is also a change from any other tariff item, provided there is a regional value content o f
not less than:

85.36
item 8538.90.13 or 8538.90.14; or
of not less than:

85.3737
item 8538.90.13 or 8538.90.14; or
of not less than:

85.38

8539.10-8539.4038

8539.90

8540.11
8540.11.aa
item 8540.11.01 from any other subheading, except from more than one of the following:
*
7011.20.02 or 7011.20.03,
*
8540.91.03.
8540.11.bb
item 8540.11.02 from any other subheading, except from more than one of the following:
*
7011.20.02 or 7011.20.03,
*
8540.91.03.
8540.11.cc
item 8540.11.03 from any other subheading, except from Canadian tariff item 8540.91.10,
U.S. tariff item 8540.91.40A or Mexican tariff item 8540.91.03.
8540.11.dd
item 8540.11.04 from any other subheading, except from Canadian tariff item 8540.91.10,
8540.11
8540.12
Note:
For a good of 8540.12.aa incorporating a glass panel referred to in subpargraph (b) of Note 5
of Chapter 85 and a glass cone provided for in Canadian tariff item 7011.20.10, U.S. tariff item
7011.20.00A or Mexican tariff item 7011.20.02 or 7011.20.03:
8540.12.aa
A change to Canadian tariff item 8540.12.90, U.S. tariff item 8540.12.40A or 8540.12.80A or
Mexican tariff item 8540.12.99 from any other subheading, except from more than one of the
following:
*
7011.20.02 or 7011.20.03,
*
8540.91.03.
Note:
For a good of 8540.12.aa incorporating a glass envelope referred to in subparagraph (b) o f

Note 5 of Chapter 85:
8540.12.aa
8540.12.bb
A change to Canadian tariff item 8540.12.10, U.S. tariff item 8540.12.40B or 8540.12.80B or
8540.12

8540.20
A change to subheading 8 5 40.20 from any other heading; or

less than:

8540.30
8540.41-8540.49
A change to subheading 8540.41 through 8540.49 from any subheading outside of that group,
item 8540.99.05.
8540.81-8540.89
8540.91
8540.91.aa
8540.91

8540.99
8540.99.aa
8540.99

85.41-85.42
Note:
Notwithstanding Article 411 (Transshipment), a good provided for in subheading 8541.10

through 8541.60 or 8542.11 through 8542.80 qualifying under the rule below as an originating
good may undergo further production outside the territory of the Parties and, when imported
into the territory of a Party, will originate in the territory of a Party, provided that such further
production did not result in a change to a subheading outside of that group.
8543.10-8543.30
less than:

8543.80
8543.80.aa
item 8543.80.20 from any other subheading, except from subheading 8504.40 or Canadian
tariff item 8543.90.11, 8543.90.12, 8543.90.13 or 8543.90.14, U.S. tariff item
8543.90.40A, 8543.90.40B or 8543.90.80A or Mexican tariff item 8543.90.01; or
item 8543.80.20 from subheading 8504.40 or Canadian tariff item 8543.90.11, 8543.90.12,
8543.90.13 or 8543.90.14, U.S. tariff item 8543.90.40A, 8543.90.40B or 8543.90.80A or
Mexican tariff item 8543.90.01, whether or not there is also a change from any other
subheading, provided there is a regional value content of not less than:

8543.80

8543.90

8544.11-8544.6039
except from heading 74.08, 74.13, 76.05 or 76.14; or
A change to subheading 8544.11 through 8544.60 from heading 74.08, 74.13, 76.05 or
76.14, whether or not there is also a change from any other subheading, including another
subheading within subheading 8544.11 through 8544.60, provided there is also a regional value

8544.70
A change to subheading 8544.70 from any other subheading, except from heading 70.02 or
90.01; or
A change to subheading 8544.70 from heading 70.02 or 90.01, whether or not there is also a
change from any other subheading, provided there is a regional value content of not less than:

85.45-85.48
within that group.
Section XVII
Vehicles, Aircraft, Vessels and Associated Transport Equipment (Chapter 86-89)

Chapter 8 6
Railway or Tramway Locomotives, Rolling-Stock and Parts Thereof; Railway or Tramway Track
Fixtures and Fittings and Parts Thereof; Mechanical (Including Electro-Mechanical) Traffic
Signalling Equipment of all Kinds
86.01-86.06
within that group, except from heading 86.07; or

8607.11-8607.12
A change to subheading 8 6 07.11 through 8607.12 from any other heading.

8607.19
8607.19.aa
item 8607.19.02 or 8607.19.06 from any other heading; or
A change to Canadian tariff item 8 607.19.11, U.S. tariff item 8607.19.10A or Mexican tariff
item 8607.19.02 or 8607.19.06 from Canadian tariff item 8607.19.13, U.S. tariff item
8607.19.10B or Mexican tariff item 8607.19.07, whether or not there is also a change from
any other heading, provided there is a regional value content of not less than:

8607.19.cc
item 8607.19.03 from any other heading; or
item 8607.19.03 from Canadian tariff item 8607.19.13, U.S. tariff item 8607.19.20B or
Mexican tariff item 8607.19.07, whether or not there is also a change from any other heading,
provided there is a regional value content of not less than:

8607.19

8607.21-8607.99

86.08-86.09
within that group.
Chapter 8 7
Vehicles Other Than Railway or Tramway Rolling-Stock, and Parts and Accessories Thereof
87.0140
of not less than 50 percent under the net cost method.
87.0241
8702.10.aa
item 8702.10.03 from any other heading, provided there is a regional value content of not less
than 50 percent under the net cost method.
8702.10.bb
item 8702.10.01 or 8702.10.02 from any other heading, provided there is a regional value
content of not less than 5 0 percent under the net cost method.
8702.90.aa
item 8702.90.04 from any other heading, provided there is a regional value content of not less
8702.90.bb
item 8702.90.01, 8702.90.02 or 8702.90.03 from any other heading, provided there is a
regional value content of not less than 50 percent under the net cost method.
8703.10

8703.21-8703.9042
8704.1043
A change to subheading 8 7 04.10 from any other heading, provided there is a regional value
8704.2144
content of not less than 5 0 percent under the net cost method.
8704.22-8704.2345
8704.3146
8704.32-8704.9047
87.0548
87.0649
8706.00.aa
A change to Canadian tariff item 8706.00.20, U.S. tariff item 8706.00.10A or 8706.00.15 or
Mexican tariff item 8706.00.02 from any other chapter, provided there is a regional value
8706.00.bb
A change to Canadian tariff item 8706.00.10 or 8706.00.90, U.S. tariff item 8706.00.10B,
8706.00.25, 8706.00.30 or 8706.00.50 or Mexican tariff item 8706.00.99 from any other
chapter, provided there is a regional value content of not less than 50 percent under the net
cost method.
87.0750
other chapter, provided there is a regional value content of not less than 50 percent under the
net cost method.
8708.1051
change from any other heading, provided there is a regional value content of not less than 5 0
percent under the net cost method.
8708.2152
8708.2953

value content of not less than 50 percent under the net cost method.
8708.31
A change to subheading 8708.31 from subheading 8708.39 or 8708.99, whether or not there
8708.3954

A change to subheading 8708.39 from subheading 8 708.31 or 8708.99, whether or not there
8708.4055
8708.5056
8708.50.aa
8708.50.06 or 8708.50.07 from any other heading, except from subheading 8482.10 through
8482.80; or
8708.50.06 or 8708.50.07 from subheading 8482.10 through 8482.80 or 8708.99, whether
8708.50
8708.6057
8708.60.aa
8708.60.07 from any other heading, except from subheading 8482.10 through 8482.80; or
8708.60.07 from subheading 8482.10 through 8482.80 or 8708.99, whether or not there is
also a change from any other heading, provided there is a regional value content of not less
8708.60
8708.7058

8708.80 5 9
8708.80.aa
Mexican tariff item 8 7 08.80.04 from any other subheading, provided there is a regional value
8708.80
A change to subheading 8708.80 from subheading 8 7 08.99, whether or not there is also a
percent of the net cost method.
8708.9160
percent of the net cost method.
8708.9261
8708.9362
8708.9463
8708.9964
8708.99.aa
8708.99.10A, 8708.99.20A or 8708.99.50A or Mexican tariff item 8708.99.42 from any
other subheading, provided there is a regional value content of not less than 50 percent under
the net cost method.
8708.99.bb
8708.99.10B, 8708.99.20B or 8708.99.50B or Mexican tariff item 8708.99.43 from any other
heading, except from subheading 8482.10 through 8482.80 or Canadian tariff item
8482.99.11 or 8482.99.91, U.S. tariff item 8482.99.10A, 8482.99.30A, 8482.99.50A or
8482.99.70A or Mexican tariff item 8482.99.01 or 8482.99.03; or
8708.99.10B, 8708.99.20B or 8708.99.50B or Mexican tariff item 8708.99.43 from
subheading 8482.10 through 8482.80 or Canadian tariff item 8482.99.11 or 8482.99.91, U.S.
tariff item 8482.99.10A, 8482.99.30A, 8482.99.50A or 8482.99.70A or Mexican tariff item
8482.99.01 or 8482.99.03, whether or not there is also a change from any other heading,
provided there is a regional value content of not less than 50 percent under the net cost
method.
8708.99

value content of not less than 50 percent under the net cost method.
8709.11-8709.19
less than:

8709.90

87.10

87.11
87.12

87.13

87.14

87.15

8716.10-8716.80
less than:

8716.90

Chapter 8 8
Aircraft, Spacecraft, and Parts Thereof

8801.10-8803.90
88.04-88.05
within that group.
Chapter 8 9
Ships, Boats and Floating Structures

89.01-89.02

89.03
of not less than:

89.04-89.05

89.06-89.08
within that group.
Section XVIII
Section XVIII-Optical, Photographic, Cinematographic, Measuring, Checking, Precision, Medical or

Surgical Instruments and Apparatus; Clocks and Watches; Musical Instruments; Parts and
Accessories Thereof (Chapter 90-92)
Chapter 9 0
Optical, Photographic, Cinematographic, Measuring, Checking, Precision, Medical or Surgical

Instruments and Apparatus; Parts and Accessories Thereof
Note:
Note 2:
The origin of the goods of Chapter 90 shall be determined without regard to the origin o f any
automatic data processing machines or units thereof of heading 84.71, or parts and accessories
thereof of heading 84.73, which may be included therewith.
Note 3:
tariff item 9009.90.02 covers the following parts for photo-copying apparatus of subheading
9009.12:
(a) imaging assemblies, incorporating more than one of the following: photoreceptor belt or
cylinder; toner receptacle unit; toner distribution unit; developer receptacle unit; developer
distribution unit; charge/discharge unit; cleaning unit;
(b) optics assemblies, incorporating more than one of the following: lens; mirror; illumination
source; document exposure glass;
(c) user control assemblies, incorporating more than one of the following: printed circuit
assembly; power supply; user input keyboard; wiring harness; display unit (cathode-ray type or
flat panel) ;
(d) image fixing assemblies, incorporating more than one of the following: fuser; pressure roller;
(e) paper handling assemblies, incorporating more than one of the following: paper transport
belt; roller; print bar; carriage; gripper roller; paper storage unit; exit tray; or
(f) combinations of the above specified assemblies.

9001.10
A change to subheading 9001.10 from any other chapter, except from heading 70.02; or
A change to subheading 9001.10 from heading 70.02, whether or not there is also a change
from any other chapter, provided there is a regional value content of not less than:

9001.20-9001.90

90.02
9003.11-9003.19
less than:

9003.90

90.04
A change to heading 90.04 from any other heading within Chapter 90, whether or not there is
than:

9005.10-9005.80
A change to subheading 9 0 05.10 through 9005.80 from any subheading outside that group,
except from heading 90.01 through 90.02 or Canadian tariff item 9005.90.11 or 9005.90.91,
9005.90
9005.90.aa
Mexican tariff item 9005.90.03 from any other heading, except from heading 90.01 or 90.02.
9005.90

9006.10-9006.69


9006.91-9006.99

9007.11

9007.19
9007.19.aa
9007.19

9007.21-9007.29
less than:

9007.91

9007.92


9008.10-9008.40
less than:

9008.90

9009.11

9009.12
A change to subheading 9009.12 from any other tariff item, except from Canadian tariff item
9009.90.10, U.S. tariff item 9009.90.00A or 9009.90.00B or Mexican tariff item 9009.90.02.
9009.21-9009.30
9009.90
9009.90.aa
Mexican tariff item 9009.90.02 from Canadian tariff item 9009.90.90, U.S. tariff item
9009.90.00C or 9009.90.00D or Mexican tariff item 9009.90.99, or any other heading,
provided that at least one of the components of such assembly named in Note 3 to Chapter 9 0
is originating.
9009.90

9010.10-9010.30
less than:

9010.90
9011.10-9011.80
less than:

9011.90

9012.10

9012.90
A change to subheading 9 012.90 from any other heading.

9013.10-9013.80
less than:

9013.90

9014.10-9014.80
less than:

9014.90

9015.10-9015.80
A change to subheading 9 0 15.10 through 9015.80 from any other heading; or
less than:

9015.90


90.16

9017.10-9017.80
less than:

9017.90

9018.11
9018.11.aa
item 9018.11.01 from any other tariff item, except from Canadian tariff item 9018.11.91, U.S
tariff item 9018.11.00B or Mexican tariff item 9018.11.02.
9018.11

9018.19
9018.19.aa
9018.19

9018.20-9018.50
A change to subheading 9018.20 through 9018.50 from any other heading

9018.90
9018.90.aa
9018.90

90.19-90.21
9022.11
9022.19
or Canadian tariff item 9022.90.10, U.S. tariff item 9022.90.90A or Mexican tariff item
9022.90.04.
9022.21
9022.90.20, U.S. tariff item 9022.90.90B or Mexican tariff item 9022.90.05.
9022.29-9022.30
less than:

9022.90
9022.90.aa
9022.90


90.23

9024.10-9024.80
less than:

9024.90

9025.11-9025.80
less than:

9025.90

9026.10-9026.80

less than:

9026.90

9027.10-9027.50
less than:

9027.80
9027.80.aa
item 9027.80.08 from any othersubheading, except from subheading 8505.19 or Canadian
tariff item 9027.90.31, 9027.90.32 or 9027.90.33, U.S. tariff item 9027.90.44A or Mexican
tariff item 9027.90.04.
9027.80

9027.90

9028.10-9028.30
less than:

9028.90

9029.10-9029.20
less than:

9029.90

9030.10

9030.20-9030.39
another subheading within that group, except fromCanadian tariff item 9030.90.21 or
9030.90.23, U.S. tariff item 9030.90.40A, 9030.90.40B, 9030.90.80A or 9030.90.80B or
9030.40-9030.89
less than:

9030.90

9031.10-9031.30

less than:

9031.40
9031.40.aa
item 9031.40.02 from any other tariff item, except from subheading 8537.10 or Canadian
tariff item 9031.90.61, U.S. tariff item 9031.90.40A or Mexican tariff item 9031.90.02.
9031.40

9031.8065

9031.90

9032.10-9032.8966

9032.90

90.33

Chapter 9 1
Clocks and Watches and Parts Thereof
91.01-91.07

(b) 5 0 percent where the net cost method is used.
91.08-91.10

9111.10-9111.80
heading, provided there is a regional value content of not less than:

(b) 50 percent where the net cost method is used; or
9111.90

9112.10-9112.80
heading, provided there is a regional value content of not less than:

9112.90

91.13
of not less than:

91.14

Chapter 9 2
Musical Instruments; Parts and Accessories of Such Articles

92.01-92.08

92.09

Section XIX
Arms and Ammunition; Parts and Accessories Thereof (Chapter 9 3 )

Chapter 9 3
Arms and Ammunition; Parts and Accessories Thereof

93.01-93.04

93.05

93.06-93.07

Section XX
Miscellaneous Manufactured Articles (Chapter 94-96)

Chapter 9 4
Furniture; Bedding, Mattresses, Mattress Supports, Cushions and Similar Stuffed Furnishings;
Lamps and Lighting Fittings, Not Elsewhere Specified or Included; Illuminated Signs, Illuminated
Name-Plates and the Like; Prefabricated Buildings
9401.10-9401.8067
less than:

9401.90

94.02

9403.10-9403.80
less than:

9403.90

9404.10-9404.30

9404.90
A change to subheading 9404.90 from any other chapter, except from heading 50.07, 51.11
through 51.13, 52.08 through 52.12, 53.09 through 53.11, 54.07 through 54.08 or 55.12
through 55.16.
9405.10-9405.60

9405.99, whether or not there is also a change from any other chapter, provided there is a
9405.91-9405.99

94.06

Chapter 9 5
Toys, Games and Sports Requisites; Parts and Accessories Thereof

95.01

9502.10
less than:

9502.91-9502.99

95.03-95.05

9506.11-9506.29

9506.3168

9506.32

9506.39
9506.39.aa
A change to Mexican tariff item 9506.39.01 from any other chapter; or
A change to Mexican tariff item 9506.39.01 from any other tariff item, whether or not there is
than:

9506.39

9506.40-9506.99

95.07-95.08

Chapter 9 6
Miscellaneous Manufactured Articles

96.01-96.05
A change to heading 96.01 through 96.05 from any other chapter

9606.10

9606.21-9606.29
A change to subheading 9606.21 through 9606.29 from any other chapter; or A change t o
a change from any other chapter, provided there is a regional value content of not less than:

9606.30

9607.11-9607.19
less than:

9607.20

9608.10-9608.50

9608.99, whether or not there is also a change from any other chapter, provided there is a

9608.60-9608.99

96.09-96.12

9613.10-9613.80
less than:

9613.90

9614.10

9614.20
9614.90.
9614.90

9615.11-9615.19

less than:

9615.90

96.16-96.18

Section XXI
Works of Art, Collectors' Pieces and Antiques (Chapter 9 7 )

Chapter 9 7
Works of Art, Collectors' Pieces and Antiques

97.01-97.06

------------------------------------------------------------------------
FOOTNOTES
1.
The new tariff items created for purposes of Chapter Four are shown in the table following
Section B.
2.
See also Annex 703.2, Section A(10) and (11) for heading 12.02.
3.
See also Annex 703.2, Section A(10) and (11) and Section B(9) and (10).
4.
See also Annex 703.2, Section A(10) and (11).
5.
See also Annex 703.2, Section A(10) and (11) and Section B(9) and (10) for Canadian tariff
item 2106.90.21, U.S. tariff item 2106.90.12 or Mexican tariff item 2106.90.05.
6.
In applying the provisions of Article 405 to goods of heading 24.02, the reference to "seven
percent" shall be replaced with "nine percent".7. If the good is for use in a motor vehicle o f
Chapter 87, the provisions of Article 403 may apply.
7.
If the good is for use in a motor vehicle of Chapter 87, the provisions of Article 403 may apply.
8.
9.
If the good provided for in subheading 4010.10 or heading 40.11 is for use in a motor vehicle
of Chapter 87, the provisions of Article 403 may apply.
10.
11.
12.
See also Annex 300-B (Textile and Apparel Goods), Appendix 6(A).
13.
See also Annex 300-B (Textile and Apparel Goods), Appendix 6(A).
14.
For definition of "average yarn number" see Annex 300-B, Section 10.
15.
If the good provided for in subheading 7007.11, 7007.21 or 7009.10 is for use in a motor
vehicle of Chapter 87, the provisions of Article 403 may apply.
16.
17.
18.
19.
20.
21.
If the good provided for in subheading 8414.59 is for use in a motor vehicle of Chapter 87, the
provisions of Article 403 may apply.
22.
23.
24.
25.
26.
27.
28.
29.
If the good provided for in subheading 8483.40 or 8483.50 is for use in a motor vehicle o f
30.
If the good provided for in subheading 8501.10, 8501.20, 8501.31 or 8501.32 is for use in a
motor vehicle of Chapter 87, the provisions of Article 403 may apply.
31.
32.
33.
34.
35.
36.
37.
38.
39.
40.
The provisions of Article 403 apply.
41.
42.
43.
44.
45.
46.
47.
48.
The provisions of Article 4 0 3 apply.
49.
50.
51.
52.
53.
54.
55.
56.
57.
58.
59.
60.
61.
62.
63.
64.
65.
66.
67.
68.
9506.31 U.S. and Canada classify golf clubs, whether or not in sets, in subheading 9506.31.
Parts of golf clubs are classified in subheading 9506.39. Mexico classifies in subheading
9506.31 only complete sets of golf clubs; individual golf clubs and parts of golf clubs are
classified in subheading 9506.39 under tariff item 9506.39.01.
NEW TARIFF ITEMS FOR NAFTA

TARIFF ITEM
CANADA
USA
MEXICO
DESCRIPTION
1806.10. aa
1806.10.10
1806.10.41 1806.10.42A 1806.10.42B
1806.10.01
Containing 90 percent or more by weight of sugar
1901.10. aa
1901.10.31
1901.10.00A 1901.10.00B 1901.10.00C 1901.10.00D
1901.10.01
Containing over 10 percent by weight of milk solids
1901.20. aa
1901.20.11 1901.20.21
1901.20.00A 1901.20.00B 1901.20.00C 1901.20.00D 1901.20.00E 1901.20.00F
1901.20.02
Containing over 25 percent by weight of butterfat, not put up for retail sale
1901.90. aa
1901.90.31
1901.90.30A 1901.90.30B 1901.90.30C 1901.90.30D 1901.90.30E 1901.90.40A

1901.90.40B 1901.90.40C 1901.90.40D 1901.90.80A 1901.90.80B 1901.90.80C
1901.90.80D 1901.90.80E 1901.90.80F 1901.90.80G
1901.90.03
Dairy preparations containing over 10 percent by weight of milk solids
2008.11. aa
2008.11.20
2008.11.00B 2008.11.00C 2008.11.00D
2008.11.01
Peanuts, blanched
2101.10. aa
2101.10.11
2101.10.20A
2101.10.01
Instant coffee, not flavored
2103.20. aa
2103.20.10
2103.20.20
2103.20.01
Ketchup
2106.90. bb 2106.90. cc 2106.90. dd
2106.90.91 2106.90.92 2106.90.32
2106.90.16A 2106.90.16B 2106.90.19A 2106.90.19B 2106.90.05A 2106.90.05B

2106.90.05C 2106.90.15A 2106.90.15B 2106.90.15C 2106.90.15D 2106.90.40A
2106.90.40B 2106.90.40C 2106.90.40D 2106.90.50A 2106.90.50B 2106.90.50C
2106.90.50D 2106.90.50E 2106.90.50F 2106.90.65A
2106.90.06 2106.90.07 2106.90.08
Concentrated fruit or vegetable juices, fortified with minerals or vitamins: Of any single fruit or
vegetable Of mixtures of fruit or vegetable juices Containing over 10 percent by weight of milk
solids
2202.90. aa 2202.90. bb 2202.90. cc
2202.90.31 2202.90.32 2202.90.40

2202.90.30A 2202.90.30B 2202.90.35 2202.90.39A 2202.90.39B 2202.90.10
2202.90.20A 2202.90.20B 2202.90.20C
2202.90.02 2202.90.03 2202.90.04
Fruit or vegetable juices, fortified with minerals or vitamins: Of any single fruit or vegetable Of
mixtures of fruit or vegetable juices Beverages containing milk
2309.90. aa
2309.90.31 2309.90.32
2309.90.30A 2309.90.30B 2309.90.30C
2309.90.10 2309.90.11
Containing over 10 percent by weight of milk solids
2401.10. aa
2401.10.10
2401.10.20A
2401.10.01
Wrapper tobacco
2403.91. aa
2403.91.10
2403.91.20
2403.91.01
Of a kind used as wrapper tobacco
4008.19. aa
4008.19.10
4008.19.10A 4008.19.50A
4008.19.01
Profile shapes
4008.29. aa
4008.29.10
4008.29.00A 4008.29.00B
4008.29.01
Profile shapes
4012.20. aa
4012.20.20
4012.20.20A 4012.20.50A
4012.20.01
Of a kind used on vehicles, including tractors, for the on-highway transport of passengers or
goods, or on vehicles of heading 87.05
4016.93. aa
4016.93.10
4016.93.00B
4016.93.04
Of a kind for use in automotive goods of Chapter 8 7
4016.99. aa
4016.99.30
4016.99.25A 4016.99.50B
4016.99.10
Vibration control goods of a kind used in the vehicles of heading 87.01 through 87.05
4105.19. aa
4105.19.10
4105.19.00A
4105.19.01
Wet blue
4106.19. aa
4106.19.10
4106.19.00A
4106.19.01
Wet blue
4107.10. aa
4107.10.10
4107.10.00A
4107.10.02
Wet blue
5402.43. aa
5402.43.10
5402.43.00A
5402.43.01
Wholly of polyester, measuring not less than 75 decitex but not more than 80 decitex, and
having 24 filaments per yarn
5402.52. aa
5402.52.10
5402.52.00A
5402.52.02
Wholly of polyester, measuring not less than 75 decitex but not more than 80 decitex, and
having 24 filaments per yarn
5407.60. aa
5407.60.10
5407.60.05A 5407.60.10A 5407.60.20A
5407.60.02
Wholly of polyester, of single yarns measuring not less than 75 decitex but not more than 8 0
decitex, having 24 filaments per yarn and with a twist of 900 or more turns per meter
5408.22. aa
5408.22.10
5408.22.00A
5408.22.04
Of cuprammonium rayon
5408.23. aa
5408.23.10
5408.23.10A 5408.23.20A
5408.23.05
5408.24. aa
5408.24.10
5408.24.00A
5408.24.01
5903.10. aa
5903.10.20
5903.10.15 5903.10.18 5903.10.20 5903.10.25
5903.10.01
Of man-made fibers
5903.20. aa
5903.20.20
5903.20.15 5903.20.18 5903.20.20 5903.20.25
5903.20.01
Of man-made fibers
5903.90. aa
5903.90.20
5903.90.15 5903.90.18 5903.90.20 5903.90.25
5903.90.02
Of man-made fibers
5906.99. aa
5906.99.20
5906.99.20 5906.99.25
5906.99.03
Of man-made fibers
5907.00. aa
5907.00.13
5907.00.10A 5907.00.90A 5907.00.10B 5907.00.90B
5907.00.06
Of man-made fibers
6002.92. aa
6002.92.10
6002.92.00A
6002.92.01
Circular knit, wholly of cotton yarns exceeding 100 metric number per single yarn
6103.19. aa
6103.19.90
6103.19.40
6103.19.02 6103.19.99
Of textile materials other than artificial fibers or cotton
6103.39. aa
6103.39.90
6103.39.20A 6103.39.20B
6103.39.02 6103.39.99
Of other than artificial fibers
6104.19. aa
6104.19.90
6104.19.20A 6104.19.20B
6104.19.02 6104.19.99
6104.39. aa
6104.39.90
6104.39.20A 6 104.39.20B
6104.39.02 6104.39.99
6104.59. aa
6104.59.90
6104.59.20A 6104.59.20B
6104.59.02 6104.59.99
6203.19. aa
6203.19.90
6203.19.40A 6203.19.40B
6203.19.02 6 203.19.99
Of other than cotton or artificial fibers
6203.39. aa
6203.39.90
6203.39.40A 6203.39.40B
6203.39.02 6203.39.99
6204.19. aa
6204.19.90
6204.19.30A 6204.19.30B
6204.19.02 6204.19.99
6204.39. aa
6204.39.90
6204.39.60 6204.39.80
6204.39.02 6204.39.99
6204.59. aa
6204.59.90
6204.59.40A 6204.59.40B
6204.59.02 6204.59.04 6204.59.99
6303.92. aa
6303.92.10
6303.92.00A 6303.92.00B
6303.92.01
Made up from fabrics described in Canadian tariff item 5407.60.10, U.S. tariff item
5407.60.05A, 5407.60.10A or 5407.60.20A or Mexican tariff item 5407.60.02
6701.00. aa
6701.00.10
6701.00.00A
6701.00.01 6701.00.02
Articles of feathers or down
7011.20. aa
7011.20.10
7011.20.00A
7011.20.02 7011.20.03
Cones
7304.41. aa
7304.41.10
7304.41.00A 7304.41.00B
7304.41.02
Of an external diameter of less than 19 mm
7321.11. aa
7321.11.19
7321.11.30
7321.11.02
Stoves or ranges (other than portable)
7321.90. aa 7321.90. bb 7321.90. cc
7321.90.51 7321.90.52 7321.90.53
7321.90.30A 7321.90.30B 7321.90.30C
7321.90.05 7321.90.06 7321.90.07
Parts: Of stoves or ranges (other than portable): Cooking chambers, whether or not assembled
Top surface panels with or without burners or control Door assemblies, incorporating more than
one of the following: inner panel, outer panel, window, insulation
7404.00. aa
7404.00.11 7404.00.21 7404.00.91
7404.00.00A
7404.00.03
Spent anodes; waste and scrap with a copper content of less than 94 percent by weight
7407.10. aa
7407.10.13 7407.10.22
7407.10.10A
7407.10.03
Hollow profiles
7407.21. aa
7407.21.13 7407.21.22
7407.21.10A
7407.21.03
Hollow profiles
7407.22. aa
7407.22.14 7407.22.22
7407.22.10A
7407.22.03
Hollow profiles
7407.29. aa
7407.29.13 7407.29.22
7407.29.10A
7407.29.03
Hollow profiles
7408.11. aa
7408.11.11 7408.11.12
7408.11.60
7408.11.01
With a maximum cross-sectional dimension not exceeding 9.5 mm
7506.10. aa
7506.10.22
7506.10.50A
7506.10.01
Foil, not exceeding 0.15 mm in thickness
7506.20. aa
7506.20.92
7506.20.50A
7506.20.01
Foil, not exceeding 0.15 mm in thickness
8102.92. aa
8102.92.10
8102.92.00A
8102.92.01
Bars and rods
8111.00. aa
8111.00.21 8111.00.22 8111.00.40
8111.00.60
8111.00.01
Manganese powders and articles of manganese
8406.90. aa 8406.90. bb 8406.90. cc
8406.90.22 8406.90.32 8406.90.24 8406.90.34 8406.90.21 8406.90.31
8406.90.10A 8406.90.90A 8406.90.10C 8406.90.90C 8406.90.10B 8406.90.90B
8406.90.01 8406.90.02 8406.90.03
Rotors, finished for final assembly Blades, rotating or stationary Rotors, not further advanced
than cleaned or machined for removal of fins, gates, sprues, and risers, or to permit location in
finishing machinery
8407.34. aa 8407.34. bb
8407.34.10 8407.34.20
8407.34.10A 8407.34.20A 8407.34.90A 8407.34.10B 8407.34.20B 8407.34.90B
8407.34.02 8407.34.99
Engines of a cylinder capacity exceeding 1000 cc but not exceeding 2000 cc Engines of a
cylinder capacity exceeding 2000 cc
8414.59. aa
see 8414.80. aa
8414.59.80B
see 8414.80. aa
Turbochargers and superchargers for motor vehicles, where not provided for under subheading
8414.80
8414.80. aa
8414.80.10
8414.80.10B
8414.80.14
Turbochargers and superchargers for motor vehicles, where not provided for under subheading
8414.59
8414.90. aa
8414.90.21 8414.90.51
8414.90.20A 8414.90.20B
8414.90.14
Stators and rotors of goods of subheading 8414.30
8415.90. aa
8415.90.11 8415.90.21 8415.90.31 8415.90.41
8415.90.00A 8415.90.00B
8415.90.01
Chassis, chassis bases and outer cabinets
8418.99. aa
8418.99.11 8418.99.21 8418.99.31 8418.99.41 8418.99.51
8418.99.00A
8418.99.12
Door assemblies incorporating more than one of the following: inner panel; outer panel;
insulation; hinges; handles
8421.39. aa
8421.39.20
8421.39.00B
8421.39.09
Catalytic converters
8421.91. aa 8421.91. bb
8421.91.11 8421.91.12
8421.91.00A 8421.91.00B
8421.91.02 8421.91.03
Drying chambers for the goods of subheading 8421.12 and other parts of clothes-dryers
incorporating drying chambers Furniture designed to receive the goods of subheading 8421.12
8422.90. aa 8422.90. bb
8422.90.11 8422.90.22 8422.90.12 8422.90.23
8422.90.05A 8422.90.05B
8422.90.05 8422.90.06
Water containment chambers for the goods of subheading 8422.11 and other parts o f
dishwashing machines of the household type incorporating water containment chambers Door
assemblies for the goods of subheading 8422.11
8427.10. aa
8427.10.10
8427.10.00A
8427.10.03 8427.10.04
Rider-type, counterbalanced fork-lift trucks

8427.20. aa
8427.20.10
8427.20.00A
8427.20.04 8427.20.05
Rider-type, counterbalanced fork-lift trucks
8450.90. aa 8450.90. bb
8450.90.11 8450.90.21 8450.90.31 8450.90.41 8450.90.12 8450.90.22 8450.90.32

8450.90.42
8450.90.00A 8450.90.00B
8450.90.01 8450.90.02
Tubs and tub assemblies Furniture designed to receive the goods of subheading 8450.11
through 8450.20
8451.90. aa 8 4 51.90. bb
8451.90.11 8451.90.21 8451.90.31 8451.90.12 8451.90.22 8451.90.32
8451.90.00A 8451.90.00B
8451.90.01 8451.90.02
Drying chambers for the goods of subheading 8451.21 or 8451.29 and other parts of drying
machines incorporating drying chambers Furniture designed to receive the goods of subheading
8451.21 or 8451.29
8455.90. aa
8455.90.10
8455.90.00A
8455.90.01
Castings or weldments, individually weighing less than 90 tons, for the machines of heading
84.55
8459.70. aa
8459.70.10
8459.70.00A
8459.70.03
Numerically controlled
8460.40. aa
8460.40.10
8460.40.00A
8460.40.02
8460.90. aa
8460.90.11 8460.90.91
8460.90.00A
8460.90.03
8461.10. aa
8461.10.10
8461.10.00A
8461.10.03
8461.20. aa
8461.20.11 8461.20.21
8461.20.00A
8461.20.01
8461.30. aa
8461.30.10
8461.30.00A
8461.30.01
8461.50. aa
8461.50.10
8461.50.00A
8461.50.03
8461.90. aa
8461.90.11 8461.90.91
8461.90.00A
8461.90.02
8462.91. aa
8462.91.10
8462.91.00A
8462.91.05
8462.99. aa
8462.99.10
8462.99.00A
8462.99.05
8466.93. aa
8466.93.11 8466.93.91
8466.93.10A 8466.93.50A 8466.93.70A
8466.93.04
Bed, base, table, head, tail, saddle, cradle, cross slide, column, arm, saw arm, wheelhead, saddle,
tailstock, headstock, ram, frame, work-arbor support, and C-frame castings, weldments or
fabrications
8466.94. aa
8466.94.11 8466.94.91
8466.94.10A 8466.94.50A
8466.94.02
Bed, base, table, column, cradle, frame, bolster, crown, slide, rod, tailstock and headstock
castings, weldments or fabrications
8469.10. aa
8469.10.20
8469.10.00A
8469.10.02
Word processing machines
8471.92. aa 8471.92. bb 8471.92. cc 8471.92. dd 8471.92. ee 8471.92. ff 8471.92. gg

8471.92. hh 8471.92. ii 8471.92. jj 8471.92. kk 8471.92. ll
8471.92.31 8471.92.21 8471.92.22 8471.92.23 8471.92.24 8471.92.25 8471.92.26

8471.92.10 8471.92.32 8471.92.34 8471.92.39 8471.92.33 8471.92.40 8471.92.50
8471.92.90
8471.92.40A 8471.92.40B 8471.92.65A 8 471.92.65B 8471.92.70A 8471.92.65C

8471.92.65D 8471.92.70B 8471.92.65E 8471.92.65F 8471.92.70C 8471.92.65G
8471.92.65H 8471.92.70D 8471.92.65I 8471.92.65J 8471.92.70E 8471.92.65K
8471.92.65L 8471.92.70F 8471.92.10 8471.92.40C 8471.92.40D 8471.92.30 8471.92.9 0 A
8471.92.90B 8471.92.80 8471.92.90C 8471.92.90D
8471.92.02 8471.92.03 8471.92.08 8471.92.04 8471.92.05 8471.92.06 8471.92.07
8471.92.09 8471.92.10 8471.92.11 8471.92.12 8471.92.99
Color cathode-ray tube monitors Printer units: Laser: Capable of producing more than 20 pages
per minute Other Light bar type electronic Ink jet Thermal transfer Ionographic Combined
input/output units Display units with monochrome cathode-ray tubes; display units with flat
panels exceeding 30.5 cm; other display units excluding display units with color cathode-ray
tubes Display units without a cathode-ray tube having a visual display diagonal not exceeding
30.5 cm Optical scanners and magnetic ink recognition devices Other input or output units
8471.99. aa 8471.99. bb 8471.99. cc
8471.99.91 8471.99.92 8471.99.98
8471.99.15 8471.99.32 8471.99.34 8471.99.60
8471.99.01 8471.99.02 8471.99.03
Control or adapter units Power supplies Other units suitable for physical incorporation into
automatic data processing machines or units thereof
8473.10. aa 8473.10. bb
8473.10.91 8473.10.92 8473.10.93
8473.10.00A 8473.10.00B
8473.10.01 8473.10.02
Parts for word processing machines of heading 84.69 Parts of other machines of heading 84.69
8473.30. aa 8473.30. bb 8473.30. cc 8473.30. dd 8473.30. ee
8473.30.21 8473.30.22 8473.30.23 8473.30.10 see 8504.90. aa see 8504.90. bb
8473.30.40A 8473.30.40B 8473.30.40C 8473.30.40D 8473.30.40E
8473.30.03 8473.30.04 8473.30.02 see 8504.90. aa see 8504.90. bb
Printed circuit assemblies, other than for power supplies for automatic data processing
machines of heading 84.71 Parts and accessories, including face plates and lock latches, o f
printed circuit assemblies Other parts for printers of subheading 8471.92, specified in Note 2 o f
Chapter 84 Printed circuit assemblies for power supplies of automatic data processing machines
of heading 84.71 Other parts of power supplies for automatic data processing machines o f
heading 84.71
8477.90. aa 8477.90. bb 8477.90. cc
8477.90.11 8477.90.21 8477.90.12 8477.90.22 8477.90.13 8477.90.23

8477.90.00A 8477.90.00B 8477.90.00C
8477.90.01 8477.90.02 8477.90.03
Base, bed, platen, clamp cylinder, ram and injection castings, weldments, and fabrications Barrel
screws Hydraulic assemblies incorporating more than one of the following: manifold, valves,
pump, oil cooler
8479.82. aa
see 8479.89. aa
see 8479.89. aa
8479.82.03
Trash compactors
8479.89. aa
8479.89.91
8479.89.60B
see 8479.82. aa
Trash compactors
8479.90. aa 8479.90. bb 8479.90. cc 8479.90. dd
8479.90.61 8479.90.62 8479.90.63 8479.90.64
8479.90.80B 8479.90.80C 8479.90.80D 8479.90.80E
8479.90.17 8479.90.18 8479.90.19 8479.90.20
Frame assemblies incorporating more than one of the following: baseplate, side frames, power
screws, front plates Ram assemblies incorporating a ram wrapper and/or ram cover Container
assemblies incorporating more than one of the following: container bottom, container wrapper,
slide track, container front Cabinet or cases
8482.99. aa
8482.99.11 8482.99.91
8482.99.10A 8482.99.30A 8482.99.50A 8482.99.70A

8482.99.01 8482.99.03
Inner or outer rings or races
8483.50. aa
8483.50.20
8483.50.80A 8483.50.80B
8483.50.05
Fly wheels
8501.32. aa
8501.32.12
8501.32.40A
8501.32.06
Electric motors that provide primary source for electric powered vehicles of subheading
8703.90
8503.00. aa
8503.00.11 8503.00.12 8503.00.13 8503.00.14 8503.00.15 8503.00.16 8503.00.17

8503.00.18 8503.00.19
8503.00.40A 8503.00.60A 8503.00.60C
8503.00.01 8503.00.05
Stators and rotors for the goods of heading 85.01
8504.40. aa 8504.40. bb
8504.40.40 8504.40.50
see 8471.99. bb 8504.40.00A 8504.40.00B
8504.40.12 8504.40.13
Power supplies for the automatic data processing machines of heading 84.71 Speed drive
controllers for electric motors
8504.90. aa 8504.90. bb
8504.90.12 8504.90.13 8504.90.14 8504.90.15 8504.90.16 8504.90.17 8504.90.80
8504.90.00A see 8473.30. dd see 8473.30. ee
8504.90.07 8504.90.09 8504.90.08
Printed circuit assemblies for the goods of subheadings 8504.40 and 8504.90. Other parts o f
power supplies for automatic data processing machines of heading 84.71
8507.20. aa
8507.20.10
8507.20.00B
8507.20.05
Batteries that provide primary source for electric cars
8507.30. aa
8507.30.10
8507.30.00B
8507.30.04
8507.40. aa
8507.40.10
8507.40.00B
8507.40.04
8507.80. aa
8507.80.10
8507.80.00B
8507.80.04
8508.90. aa
8508.90.10
8508.90.00A
8508.90.01
Housings
8509.90. aa
8509.90.11 8509.90.21 8509.90.31 8509.90.41
8509.90.20A 8509.90.30A 8509.90.40A
8509.90.02
Housings
8516.60. aa
8516.60.20
8516.60.40
8516.60.02
Ovens, cooking stoves and ranges
8516.90. aa 8516.90. bb 8516.90. cc 8516.90. dd 8516.90. ee 8 5 16.90. ff 8516.90. gg

8516.90. hh
8516.90.21 8516.90.71 8516.90.42 8516.90.41 8516.90.51 8516.90.52 8516.90.53

8516.90.61
8516.90.60A 8516.90.60B 8516.90.60C 8516.90.60D 8516.90.20A 8516.90.20B

8516.90.20C 8516.90.60E
8516.90.07 8516.90.08 8516.90.09 8516.90.10 8516.90.11 8516.90.12 8516.90.13

8516.90.03
Housings for the goods of subheading 8516.33 Housings and steel bases for the goods o f
subheading 8516.40 Assemblies for the goods of subheading 8516.50, incorporating more than
one of the following: cooking chamber; structural supporting chassis; door; outer case Printed
circuit assemblies for the goods of subheading 8516.50 For the goods of Canadian tariff item
8516.60.20, U.S. tariff item 8516.60.40 or Mexican tariff item 8516.60.02: Cooking chambers
whether or not assembled Top surface panels with or without heating elements or controls Door
assemblies incorporating more than one of the following: inner panel; outer panel;window;
insulation Housings for toasters
8517.40. aa 8517.40. bb 8517.40. cc
8517.40.10 8517.40.91 8517.40.92
8517.40.10 8517.40.50 8517.40.70
8517.40.02 8517.40.03 8517.40.04
Modems, of a kind used with data processing machines of heading 84.71 Other apparatus for
carrier-current line systems, telephonic Other apparatus for carrier-current line systems,
telegraphic
8517.81. aa
see 8517.82. aa
see 8517.82. aa
8517.81.05
Facsimile machines
8517.82. aa
8517.82.10
8517.82.00A
see 8517.81. aa
Facsimile machines
8517.90. cc 8517.90. hh 8517.90. aa 8517.90. bb 8517.90. dd 8517.90. ee 8517.90. f f

8517.90. gg
8517.90.31 8517.90.39 8517.90.41 8517.90.43 8517.90.44 8517.90.42 8517.90.45

8517.90.46 8517.90.11 8517.90.12 8517.90.13 8517.90.14 8517.90.21 8517.90.22
8517.90.23 8517.90.24 8517.90.91 8517.90.92 8517.90.93
8517.90.70A 8517.90.70B 8517.90.30A 8517.90.05A 8517.90.10A 8517.90.15A

8517.90.35A 8517.90.40A 8517.90.60A 8517.90.55A 8517.90.70C 8517.90.80A
8517.90.05B 8517.90.10B 8517.90.15B 8517.90.30B 8517.90.35B 8517.90.40B
8517.90.55B 8517.90.60B 8517.90.70D 8517.90.80B 8517.90.05C 8517.90.10C
8517.90.15C 8517.90.30C 8517.90.35C 8517.90.40C 8517.90.55C 8517.90.60C
8517.90.70E 8517.90.80C 8517.90.05D 8517.90.10D 8517.90.15D 8517.90.30D
8517.90.35D 8517.90.40D 8517.90.55D 8517.90.60D 8517.90.70F 8517.90.80D
8517.90.10 8517.90.11 8517.90.12 8517.90.13 8517.90.14 8517.90.15 8517.90.16

8517.90.99
Parts of facsimile machines: Parts of facsimile machines specified in Note 2 to Chapter 85 Other
Other parts incorporating printed circuit assemblies: Parts for telephone sets Parts for goods o f
subheadings 8517.20, 8517.30, 8517.81 and Canadian tariff item 8517.40.91, U.S. tariff item
8517.40.50 or Mexican tariff item 8517.40.03 Other Other parts: Printed circuit assemblies
Parts, including face plates and lock latches, for printed circuit assemblies Other
8518.30. aa
8518.30.10
8518.30.10
8518.30.03
Telephone handsets
8522.90. aa
8522.90.31 8522.90.32 8522.90.33 8522.90.34 8522.90.35 8522.90.39
8522.90.40A 8522.90.40B 8522.90.60A 8522.90.90A
8522.90.14
Printed circuit assemblies for the apparatus provided for in headings 85.19, 85.20 and 85.21
8525.30. aa 8525.30. bb
8525.30.11 8525.30.21 8525.30.12 8525.30.22
8525.30.00A 8525.30.00B
8525.30.03 8525.30.04
Gyrostabilized television cameras Studio television cameras, excluding shoulder-carried and

other portable cameras
8527.90. aa
8527.90.91
see 8531.80. aa
8527.90.13
Paging alert devices
8528.10. aa 8528.10. bb 8528.10. cc 8528.10. dd 8528.10. ee 8528.10. ff 8528.10. gg
8528.10.21 8528.10.31 8528.10.41 8528.10.51 8528.10.22 8528.10.32 8528.10.42

8528.10.52 8528.10.24 8528.10.34 8528.10.44 8528.10.54 8528.10.23 8528.10.33
8528.10.43 8528.10.53 8528.10.25 8528.10.35 8528.10.45 8528.10.55 8 528.10.26
8528.10.36 8528.10.46 8528.10.56 8528.10.11 8528.10.12 8528.10.18 8528.10.19
8528.10.30A 8528.10.60B 8528.10.30B 8528.10.60C 8528.10.30C 8528.10.60D

8528.10.30D 8528.10.60E 8528.10.30E 8528.10.60F 8528.10.30F 8528.10.60G
8528.10.60A
8528.10.01 8528.10.08 8528.10.02 8528.10.09 8528.10.03 8528.10.10 8528.10.04

8528.10.11 8528.10.05 8528.10.12 8528.10.06 8528.10.13 8528.10.07 8528.10.14
Non-high definition, having a single picture tube intended for direct viewing (non-projection
type), with a video display diagonal not exceeding 14 inches (35.56 cm) Non-high definition,
having a single picture tube intended for direct viewing (non-projection type), with a video
display diagonal exceeding 14 inches (35.56 cm) Non-high definition, projection type, with
cathode-ray tube High definition, non-projection type, with cathode-ray tube High definition,
projection type, with cathode-ray tube with flat panel screen Incomplete or unfinished (including
assemblies for television receivers consisting of all the parts specified in Note 4 to Chapter 8 5
plus a power supply, and assemblies for video monitors and video projectors consisting of the
parts specified in subparagraphs (a), (b), (c) and (e) in Note 4 to Chapter 85 plus a power
supply), not incorporating a cathode-ray tube, flat panel screen or similar display
8529.90. aa 8529.90. bb 8529.90. cc 8529.90. dd 8529.90. ee 8529.90. ff 8529.90. gg
8529.90.11 8529.90.12 8529.90.13 8529.90.14 8529.90.20 8529.90.38 8529.90.39

8529.90.31 8529.90.32 8529.90.40 8529.90.51 8529.90.52 8529.90.53 8529.90.54
8529.90.60
8529.90.15A 8529.90.20A 8529.90.30A 8529.90.35A 8529.90.40A 8529.90.40B

8529.90.45A 8529.90.50A 8529.90.40C 8529.90.40D 8529.90.10 8529.90.15C
8529.90.20C 8529.90.35C 8529.90.15D 8529.90.20D 8529.90.35D 8529.90.35E
8529.90.15B 8529.90.20B 8529.90.30B 8529.90.35B 8529.90.45C 8529.90.50B
8529.90.30C 8529.90.50C
8529.90.16 8529.90.17 8529.90.18 8529.90.19 8529.90.20 8529.90.21 8529.90.22
Printed circuit assemblies for goods classified under heading 85.25 through 85.28 Transceiver
assemblies for the apparatus of subheading 8526.10, not elsewhere specified Parts specified in
Note 4 to Chapter 85, other than printed circuit assemblies classified under Canadian tariff item
8529.90.20A, 8529.90.30A, 8529.90.35A, 8529.90.40A, 8529.90.40B, 8529.90.45A or
8529.90.50A or Mexican tariff item 8529.90.16 Combinations of parts specified in Note 4 t o
Chapter 85 Flat panel screen assemblies for the goods of Canadian tariff item 8528.10.26,
8528.10.36, 8528.10.46 or 8528.10.56, U.S. tariff item 8528.10.30F or 8528.10.60G or
Mexican tariff item 8528.10.06 or 8528.10.13 Parts, including face plates and lock latches, o f
printed circuit assemblies Other parts of goods of headings 85.25 and 85.27 (except parts o f
cellular telephones)
8531.80. aa
see 8527.90. aa
8531.80.00A 8531.80.00B
see 8527.90. aa
Paging alert devices
8531.90. aa
8531.90.11 8531.90.21
8531.90.00A
8531.90.03
Printed circuit assemblies
8533.40. aa
8533.40.10
8533.40.00A
8533.40.07
Metal oxide varistors
8533.90. aa
8533.90.11
8533.90.00A
8533.90.02
For the goods of subheading 8533.40, of ceramic or metallic materials, electrically or
mechanically reactive to changes in temperature
8535.90. aa
8535.90.30
8535.90.00A
8535.90.08 8535.90.20 8535.90.24
Motor starters and motor overload protectors
8536.30. aa
8536.30.12
8536.30.00A
8536.30.05
Motor overload protectors
8536.50. aa
8536.50.21 8536.50.29
8536.50.00A
see 8536.90. aa
Motor starters
8536.90. aa
see 8536.50. aa
see 8536.50. aa
8536.90.07 8536.90.27
Motor starters
8537.10. aa 8537.10. bb
8537.10.11 8537.10.19 8 5 37.10.41 8537.10.49 8537.10.31 8537.10.39
8537.10.00A 8537.10.00B
8537.10.05 8537.10.06
Assembled with outer housing or supports, for the goods of heading 84.21, 84.22, 84.50 or
85.16 Motor control centers
8538.90. aa 8538.90. bb 8538.90. cc
8538.90.20 8538.90.30 8538.90.60
8538.90.00B 8538.90.00A 8538.90.00C
8538.90.12 8538.90.13 8538.90.14
For the goods of Canadian tariff item 8535.90.30, 8536.30.12, 8536.50.21 or 8536.50.29,
U.S. tariff item 8535.90.00A, 8536.30.00A or 8536.50.00A or Mexican tariff item
8535.90.08, 8535.90.20, 8535.90.24, 8536.30.05, 8536.90.07 or 8536.90.27, of ceramic
or metallic materials, electrically or mechanically reactive to changes in temperature Printed
circuit assemblies Moulded parts
8540.11. aa 8540.11. bb 8540.11. cc 8540.11. dd
8540.11.22 8540.11.21 8540.11.12 8540.11.11
8540.11.00A 8540.11.00B 8540.11.00C 8540.11.00D
8540.11.01 8540.11.02 8540.11.03 8540.11.04
Non-high definition, non-projection, having a video display diagonal exceeding 14 inches (35.56
cm) Non-high definition, non-projection, having a video display diagonal not exceeding 14 inches
(35.56 cm) High definition, having a video display diagonal exceeding 14 inches (35.56 cm)
High definition, having a video display diagonal not exceeding 14 inches (35.56 cm)
8540.12. aa 8540.12. bb
8540.12.90 8540.12.10
8540.12.40A 8540.12.80A 8540.12.40B 8540.12.80B
8540.12.99 8540.12.01
Non-high definition High definition
8540.91. aa
8540.91.10
8540.91.40A
8540.91.03
Front panel assemblies
8540.99. aa
8540.99.10
8540.99.00A
8540.99.05
Electron guns; radio frequency (RF) interaction structures for microwave tubes of subheading
8540.41 through 8540.49
8542.11. aa
8542.11.10
8542.11.00A
8542.11.02
Monolithic integrated circuits for high definition television, having greater than 100,000 gates
8543.80. aa
8543.80.60
8543.80.90A
8543.80.20
Microwave amplifiers
8543.90. aa
8543.90.11 8543.90.12 8543.90.13 8543.90.14
8543.90.40A 8543.90.40B 8543.90.80A
8543.90.01
8607.19. aa 8607.19. bb 8607.19. cc 8607.19. dd

8607.19.11 8607.19.13 8607.19.12 8607.19.13
8607.19.10A 8607.19.10B 8607.19.20A 8607.19.20B
8607.19.02 8607.19.06 8607.19.07 8607.19.03 8607.19.07
Axles Parts of axles Wheels, whether or not fitted with axles Parts of wheels
8702.10. aa 8702.10. bb
8702.10.10 8702.10.90
8702.10.00A 8702.10.00B
8702.10.03 8702.10.01 8702.10.02
Designed for the transport of 16 or more persons, including the driver Other
8702.90. aa 8702.90. bb
8702.90.10 8702.90.90
8702.90.00A 8702.90.00B
8702.90.04 8702.90.01 8702.90.02 8702.90.03
Designed for the transport of 16 or more persons, including the driver Other
8706.00. aa 8706.00. bb
8706.00.20 8706.00.10 8706.00.90
8706.00.10A 8706.00.15 8706.00.10B 8706.00.25 8706.00.30 8706.00.50
8706.00.02 8706.00.99
Chassis of vehicles of heading 87.03 and subheadings 8704.21 and 8704.31 Chassis for other
vehicles
8708.10. aa
8708.10.10
8708.10.00A
8708.10.01
Bumpers, but not parts thereof

8708.29. aa 8708.29. bb 8708.29. cc 8708.29. dd
8708.29.11 8708.29.96 8708.29.97 8708.29.12 8708.29.20 8708.29.98
8708.29.00A 8708.29.00B 8708.29.00C see 8708.99. cc
8708.29.23 8708.29.21 8708.29.22 see 8708.99. cc
Body stampings Inflators and modules for airbags Door assemblies Airbags for use in motor
vehicles, where not provided for under subheading 8708.99
8708.50. aa
8708.50.20
8708.50.50
8708.50.06 8708.50.07
For vehicles of heading 87.03
8708.60. aa
8708.60.20
8708.60.50
8708.60.07
For vehicles of heading 87.03
8708.70. aa
8708.70.11 8708.70.91
8708.70.10A 8708.70.30A 8708.70.80A
8708.70.01 8708.70.02 8708.70.03 8708.70.04 8708.70.05 8708.70.99
Road wheels, but not parts or accessories thereof
8708.80. aa
8708.80.10
8708.80.10A 8708.80.50A
8708.80.04
McPherson Struts
8708.93. aa
8708.93.11 8708.93.91
8708.93.10A 8708.93.50A
8708.93.01 8 708.93.02 8708.93.03 8708.93.04
Clutches, but not parts thereof
8708.99. aa 8708.99. bb 8708.99. cc 8708.99. dd 8708.99. ee 8708.99. ff 8708.99. gg

8708.99. hh
8708.99.15 8708.99.25 8708.99.96 8708.99.16 8708.99.26 8708.99.97 see 8708.29. dd

8708.99.11 8708.99.21 8708.99.92 8708.99.12 8708.99.22 8708.99.93 8708.99.13
8708.99.23 8708.99.94 8708.99.14 8708.99.24 8708.99.95 8708.99.19 8708.99.29
8708.99.99
8708.99.10A 8708.99.20A 8708.99.50A 8708.99.10B 8708.99.20B 8708.99.50B

8708.99.10C 8708.99.20C 8708.99.50C 8708.99.10D 8708.99.20D 8708.99.50D
8708.99.10E 8708.99.20E 8708.99.50E 8708.99.10F 8708.99.20F 8708.99.50F
8708.99.10G 8708.99.20G 8708.99.50G 8708.99.10H 8708.99.20H 8708.99.50H
8708.99.42 8708.99.43 8708.99.48 8708.99.44 8708.99.45 8708.99.46 8708.99.47

8708.99.99
Vibration control goods containing rubber Doubled flanged wheel hub units incorporating ball
bearings Airbags for use in motor vehicles, where not provided for under subheading 8708.29
Half-shafts and drive shafts Other parts for powertrains Parts for suspension systems Parts for
steering systems Other parts and accessories not elsewhere classified under subheading
8708.99
9005.90. aa
9005.90.11 9005.90.91
9005.90.00A
9005.90.03
Incorporating goods of heading 90.01 or 90.02
9007.19. aa
9007.19.10
9007.19.00A
9007.19.01
Gyrostabilized
9009.90. aa 9009.90. bb
9009.90.10 9009.90.90
9009.90.00A 9009.90.00B 9009.90.00C 9009.90.00D
9009.90.02 9009.90.99
Parts of photocopying apparatus of subheading 9009.12 specified in Note 3 to Chapter 9 0

Other
9018.11. aa 9018.11. bb
9018.11.10 9018.11.91
9018.11.00A 9018.11.00B
9018.11.01 9018.11.02
Electrocardiographs Printed circuit assemblies
9018.19. aa 9018.19. bb
9018.19.10 9018.19.9 1
9018.19.80A 9018.19.80B
9018.19.16 9018.19.17
Patient monitoring systems Printed circuit assemblies for parameter acquisition modules
9018.90. aa 9018.90. bb
9018.90.10 9018.90.91
9018.90.70A 9018.90.70B
9018.90.25 9018.90.26
Defibrillators Printed circuit assemblies for the goods of Canadian tariff item 9018.90.10, U.S.
tariff item 9018.90.70A or Mexican tariff item 9018.90.25
9022.90. aa 9022.90. bb
9022.90.10 9022.90.20
9022.90.90A 9022.90.90B
9022.90.04 9022.90.05
Radiation generator units Radiation beam delivery units
9027.80. aa
9027.80.20
9027.80.40A
9027.80.08
Nuclear magnetic resonance instruments
9027.90. aa
9027.90.31 9027.90.32 9027.90.33
9027.90.44A
9027.90.04
Printed circuit assemblies for the goods of subheading 9027.80
9030.90. aa
9030.90.21 9030.90.23
9030.90.40A 9030.90.40B 9030.90.80A 9030.90.80B
9030.90.02
9031.40. aa
9031.40.10
9031.40.00A
9031.40.02
Coordinate-measuring machines
9031.90. aa
9031.90.61
9031.90.40A
9031.90.02
Bases and frames for the goods of Canadian tariff item 9031.40.10, U.S. tariff item
9031.40.00A or Mexican tariff item 9031.40.02
9506.39. aa
see 9506.31
see 9506.31
9506.39.01
Individual golf clubs

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PREAMBLE

REDUCE distortions to trade;

ESTABLISH clear and mutually advantageous rules governing their trade;

ENSURE a predictable commercial framework for business planning and investment;

ENHANCE the competitiveness of their firms in global markets;

PRESERVE their flexibility to safeguard the public welfare;

PROMOTE sustainable development;

PROTECT, enhance and enforce basic workers' rights;

HAVE AGREED as follows:

PART ONE: GENERAL PART

Chapter One: Objectives

Article 101: Establishment of the Free Trade Area

Article 102: Objectives

b) promote conditions of fair competition in the free trade area;

c) increase substantially investment opportunities in the territories of the Parties;

Article 103: Relation to Other Agreements

Article 104: Relation to Environmental and Conservation Agreements

d) the agreements set out in Annex 104.1,

Article 105: Extent of Obligations

Bilateral and Other Environmental and Conservation Agreements

Chapter Two: General Definitions

Article 201: Definitions of General Application

1. For purposes of this Agreement, unless otherwise specified:

days means calendar days, including weekends and holidays;

Generally Accepted Accounting Principles means the recognized consensus or substantial

measure includes any law, regulation, procedure, requirement or practice;

person means a natural person or an enterprise;

person of a Party means a national, or an enterprise of a Party;

2. For purposes of this Agreement, unless otherwise specified, a reference to a state or

For purposes of this Agreement, unless otherwise specified:

b) with respect to Mexico,

(i) the states of the Federation and the Federal District,

c) with respect to the United States,

Chapter Three: National Treatment and Market Access for Goods

Article 300: Scope and Coverage

This Chapter applies to trade in goods of a Party, including:

b) goods covered by Annex 300-B (Textile and Apparel Goods), and

Section A - National Treatment

Article 301: National Treatment

Article 302: Tariff Elimination

Article 303: Restriction on Drawback and Duty Deferral Programs

a) subsequently exported to the territory of another Party,

c) substituted by an identical or similar good used as a material in the production of another

2. No Party may, on condition of export, refund, waive or reduce:

6. This Article does not apply to:

(i) delivery to a duty-free shop,

(ii) delivery for ship's stores or supplies for ships or aircraft, or

f) a good set out in Annex 303.6.

9. For purposes of this Article:

material means "material" as defined in Article 415;

used means "used" as defined in Article 415.

10. For purposes of the Article:

3. If a waiver or a combination of waivers of customs duties granted by a Party with respect t o

4. This Article shall not apply to measures subject to Article 303.

Article 305: Temporary Admission of Goods

1. Each Party shall grant duty-free temporary admission for:

d) commercial samples and advertising films,

a) be imported by a national or resident of another Party who seeks temporary entry;

e) be capable of identification when exported;

g) be imported in no greater quantity than is reasonable for its intended use.