Title:NAFTA Preamble -- 1993
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:2175
 
                                        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:  
 
 
 
 
 
 
 
Title:General Part -- Chapter 1, 
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
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                                        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 at 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 at 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. 
  Title:General Definitions -- Chapter 2
Author: White House
Document-Date: 29 Sept 1993
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Content-Length:7419
 
                                      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 of that Party; 
 
            Harmonized System (HS) means the Harmonized Commodity 
            Description and Coding System, and its legal notes, 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 of 
                           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 
                                domestic law, the United States may 
                                exercise rights with respect to the seabed 
                                and subsoil and their natural resources. 
 
Title:Part Two Trade In Goods -- Chapter 3
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:151278
 
 
                                        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 
            to 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 to 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 to 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 of the 
                      inventory methods provided for in the Uniform 
                      Regulations established under Article 511 (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 of another 
                      good that is deemed to be exported to the territory 
                      of another Party, by reason of 
 
                      (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 
                                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 cathode-ray 
            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; and 
            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 to 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 to 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 of 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 if 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 of 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 to 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:   Most-Favored-Nation 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 most-favored-nation 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 to 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 to prevent the Party from: 
 
                 (a)  limiting or prohibiting the importation from the 
                      territory of another Party of such good of 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 to 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 36-month 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 of 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 of 
            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 of 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 
            sound-tracks, 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 form 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 of 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 to Chapter Seven 
                      (Agriculture and Sanitary and Phytosanitary 
                      Measures); 
 
            distilled spirits include distilled spirits and distilled 
            spirit-containing 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 from 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; 
                      or 
  
                 (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 of 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 309 
 
                             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. F- 
                      18.01 (1982), and Fisheries Development Act, S.N.B. 
                      c. F-15.1 (1977); 
 
                 (b)  Newfoundland Fish Inspection Act, R.S.N. 1990, c. F- 
                      12; 
 
                 (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. F-13; 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. E-18, 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, 
 
                                    Annex 301.3                             

                 (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-15, 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. 
 
            5.   Articles 301 and 309 shall not apply to: 
 
                 (a)  the continuation or prompt renewal of a non- 
                      conforming provision of any statute referred to 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.  
 
                                    Annex 301.3                             
 
                              Section B - Mexican Measures 
 
 
            1.   Articles 301 and 309 shall not apply to controls by Mexico 
            on the export of logs of all species. 
 
            2.   Articles 301 and 309 shall not apply to: 
 
                 (a)  measures under the existing provisions of Articles 
                      192 through 194 of the General Ways of Communication 
                      Act ("Ley de Vias Generales de Comunicaci n") 
                      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 to 
                      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 to 
                      quantitative restrictions or tariff rate quotas 
                      adopted or maintained by that other Party.  
 
            3.   Articles 301 and 309 shall not apply to: 
 
                 (a)  the continuation or prompt renewal of a non- 
                      conforming provision of the statute referred to in 
                      paragraph 2(a); and 
 
                 (b)  the amendment to a non-conforming provision of the 
                      statute referred to in paragraph 2(a) to 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 of 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 
                      Importaci n") set out below: 
 
                 (For purposes of reference only, descriptions are provided 
            next to the corresponding item.) 
 
                                     Annex 301.3                            
 
            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, self-propelled 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, self-propelled, 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. 
 
                                      Annex 301.3                           
 
            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          Front-end loader with hydraulic working, 
                                wheel-type, with capacity equal or less 
                                than 335 HP. 
 
            8429.51.03          Mechanical shovels, other than those 
                                provided for in item 8429.51.01. 
 
 
                                    Annex 301.3                             
 
            8429.51.99          Other (mechanical shovels, excavators, 
                                loaders and front-end 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          Draglines or excavators, other than those 
                                provided for in item 8429.59.04. 
 
            8429.59.99          Other (self-propelled 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 (self-propelled cutters, pullers or 
                                wrenchers and machines to open tunnels or 
                                galleries). 
 
            8430.39.01          Boring shields. 
 
            8430.39.99          Other (not self-propelled 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 (self-propelled probing or boring 
                                machinery). 
 
            8430.49.99          Other (not self-propelled probing or boring 
                                machinery). 
 
            8430.50.01          Excavators, frontal carriers with hydraulic 
                                mechanism, with capacity equal to or less 
                                than 335 h.p. 
 
                                   Annex 301.3                              
 
            8430.50.02          Scrapers. 
 
            8430.50.99          Other (self-propelled machinery and 
                                apparatus). 
 
            8430.61.01          Graders (pushers). 
 
            8430.61.02          Tamping or compacting rollers. 
 
            8430.61.99          Other (machinery and apparatus, not self- 
                                propelled). 
 
            8430.62.01          Scarification machine (ripping machine). 
 
            8430.69.01          Scrapers, not self-propelled. 
 
            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          Industrial machines, other than those 
                                provided for in items 8452.29.01, 
                                8452.29.03 and 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. 
 
 
                                  Annex 301.3                               
 
            8471.20.01          Digital or numerical automatic data 
                                processing machines, containing in the same 
                                housing at 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. 
 
                                Annex 301.3                                 
 
            8477.10.01          Injection-molding 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. 
 
            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 50 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 semi-trailers for housing and 
                                camping, of the caravan type. 
 
            8716.31.02          Steel-tank type tankers, including 
                                cryogenic or hoppers. 
 
                              Annex 301.3                                   

            8716.31.99          Other (tankers except of the steel-tank 
                                type, and of the thermal type for the 
                                transportation of milk). 
 
            8716.39.01          Trailers or semi-trailers 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 goose-neck.  
 
            8716.39.02          Trailers or semi-trailers for the transport 
                                of vehicles. 
 
            8716.39.04          Trailers of the modular-platform type with 
                                directional axis, including transporter 
                                bridge section, hydraulic couplings or 
                                goose-neck or motor for hydraulic 
                                conditioning of the equipment. 
 
            8716.39.05          Semi-trailers of the low-bed type, with 
                                pneumatic or hydraulic suspension and 
                                collapsible goose-neck. 
 
            8716.39.06          Trailers and semi-trailers of the 
                                closed-box type, including refrigerated. 
 
            8716.39.07          Trailers and semi-trailers of the steel- 
                                tank type, including cryogenic and hoppers. 
 
            8716.39.99          Other (trailers and semi-trailers 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 double-decker 
                                trailers or semitrailers of the type 
                                recognized as used exclusively for hauling 
                                cattle. 
 
            8716.40.01          Other trailers and semi-trailers not used 
                                for transporting goods. 
 
            8716.80.99          Other (non-automotive vehicles except 
                                trailers or semi-trailers, wheel barrows 
 
                                Annex 301.3                                 

                                and hand-carts, 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 cross- 
                      border service subject to Chapter Twelve (Cross- 
                      Border 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 re-exported 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. 
 
                                Annex 301.3                                 
 
            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, self-propelled with maximum capacity 
                                above 9.9 tons and not exceeding 30 tons. 
 
            8426.41.02          Cranes with structural iron jib (lattice) 
                                with mechanical working, self-propelled, 
                                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, self-propelled, 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, 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. 
 
            8428.40.99          Other (escalators and moving walkways). 
 
                                  Annex 301.3                               

            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          Front-end loader with hydraulic working, 
                                wheel-type, 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 front-end 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          Draglines or excavators, other than those 
                                provided for in item 8429.59.04. 
 
            8429.59.99          Other (self-propelled 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 (self-propelled cutters, pullers or 
                                wrenchers and machines to open tunnels or 
                                galleries). 
 
            8430.39.01          Boring shields. 
 
                           Annex 301.3                                      
       
            8430.39.99          Other (not self-propelled 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 (self-propelled probing or boring 
                                machinery). 
 
            8430.49.99          Other (not self-propelled probing or boring 
                                machinery). 
 
            8430.50.01          Excavators, frontal loaders with hydraulic 
                                mechanism, with capacity equal to or less 
                                than 335 h.p. 
 
            8430.50.02          Scrapers. 
 
            8430.50.99          Other (self-propelled 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 self-propelled. 
 
            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). 
 
            8452.29.06          Industrial machines, other than those 
                                provided for in items 8452.29.01, 
                                8452.29.03 and 8452.29.05. 
 
                                Annex 301.3                                 
 
            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          Injection-molding 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. 
 
                           Annex 301.3                                      
 
                               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. 
 
            2.   Articles 301 and 309 shall not apply to: 
 
                 (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. 
 
            3.   Articles 301 and 309 shall not apply to: 
 
                 (a)  the continuation or prompt renewal of a non- 
                      conforming provision of any statute referred to 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 to receive duty- 
                      free treatment. 
 
            2.   The base rate of customs duty and staging category for 
            determining the interim rate of customs duty at each stage of 
            reduction for an item are indicated for the item in each 
            Party's Schedule attached to this Annex.  These rates generally 
            reflect the rate of duty in effect on July 1, 1991, including 
            rates under 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 
 
                           Annex 302.2                                      

            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 if 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 
                      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. 
 
            6.   Canada shall apply to an originating good to which neither 
            paragraph 4 nor 5 applies a rate of 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: 
 
                                  Annex 302.2                               
 
                 (a)  in each year of the staging category indicated in 
                      Column I, the higher of 
 
                      (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 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 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 
            are 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 in the territory of Canada" in Article 
            401(8) of that agreement shall be determined in accordance with 
            paragraph 12 of this Annex. 
 
                           Annex 302.2                                      
 
            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. 
  
                                    Annex 302.2                             
 
                               Schedule of Canada 
 
                            (TARIFF SCHEDULE TO BE ATTACHED) 
 
 
                                   Schedule of Mexico 
 
                            (TARIFF SCHEDULE TO BE ATTACHED) 
 
 
                             Schedule of the United States 
 
                            (TARIFF SCHEDULE TO BE ATTACHED) 
 
                                      Annex 303.6                           
 
                            Goods Not Subject to Article 303 
 
 
            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). 
 
            2.   For trade between Canada and the United States: 
 
                 (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 
                      of, or substituted by an identical or similar good 
                      used as a material in the production of, apparel that 
                      is subject to the most-favored-nation rate of duty 
                      when exported to the territory of the other Party. 


                                     Annex 303.7 
 
                   Effective Dates for the Application of Article 303 
 
 
                                   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; 
              
                 (b)  used as a material in the production of another good 
                      that is subsequently exported to the 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  
 
                 (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 the United 
                      States on or after January 1, 1996, or 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 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; 
 
                 (b)  used as a material in the production of another good 
                      that is subsequently exported to the territory of 
                      another Party on or after January 1, 2001; 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 on or after January 1, 2001. 
 
                                     Annex 303.7                            

                               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; 
 
                 (b)  used as a material in the production of another good 
                      that is subsequently exported to the territory of 
                      Canada 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 
 
                 (c)  substituted by an identical or similar good used as a 
                      material in the production of another 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 303(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 
 
                                        Annex 303.8                         

                      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 
                      the territory of Canada, 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 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 to 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 of 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 of 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 of those goods the rate of customs duty for such 
 
                               Annex 307.1                                  

            goods that would apply if such goods were included in staging 
            category B in Mexico's Schedule to Annex 302.2. 
 
 
                               Section C - United States 
 
            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 re-enter 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 of their origin, that re-enter its 
            territory after such goods have been exported from its 
            territory to 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, ferry-boats, cargo 
                      ships, barges and similar vessels for the transport 
                      of persons or goods, including 
 
                      (i)  tankers, 
 
                      (ii) refrigerated vessels, other than tankers, and 

                                  Annex 307.1                               
 
                      (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)  light-vessels, 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 of 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 308.1.2 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, to 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. 
  
                                    Annex 308.1                             
                
                  ___________ 
 
 
                  Section B - Rates of Duty and Schedule for Reduction 
 
                                     Table 308.1.1 
 
                                                    Tariff Rate             

                                                                        Sch 
                                                                        edu 
                                                                        le1 
 
 
            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 
                                         ____________________ 
 
               1    R    on the date of entry into force of this Agreement 
 
               S    in five equal annual stages commencing January 1, 1999. 
 
 
                                       Annex 308.1                          
                   
                  ___________ 
 
 
                 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 
 
                                    Annex 308.1                             
                
                  ___________ 
 
 
            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 
 
                                     Annex 308.1                            
                 
  
                                     Table 308.1.2 
 
                                                    Tariff Rate             

            Schedule2 
 
            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 
 
                                         ____________________ 
 
               2    R    on the date of entry of this Agreement 
 
               S    in five equal annual stages commencing January 1, 1999. 
 
 
                                     Annex 308.1                            
                 
 
                 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 
 

                                      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 
            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) 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 of 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 tr mite 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 311 
 
                               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 of 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 of 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, 
 
                                      Annex 311                             

                      (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 
                           to 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 
 
                                   Annex 311                                
 
            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 it 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 
                           of 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 of 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 of 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: 
 
                                  Annex 311                                 
 
            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 of 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 
 
                                        Annex 312.2                         
 
                           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 of 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 to 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 of 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. 
 
                                    Annex 312.2                             
 
                 (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 313 
 
                                  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 of 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 of 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 of 
            Mexico, whichever is later. 
 
                                       Annex 314 
 
                                      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 Exportaci n") for up to 10 years after the 
            date of entry into force of this Agreement. 
 
                              Annex 314                                     
 
            4.   For purposes of paragraph 1, "basic foodstuffs" means: 
 
 
            Beans 
            Beef steak or pulp                 Ground beef 
            Beef liver                         Instant coffee 
            Beef remnants and bones            Low-priced cookies ("galletas 
            ("retazo con hueso")               dulces populares") 
            Beer                               Margarine 
            Bread                              Oat flakes 
            Brown sugar                        Pasteurized milk 
            Canned sardines                    Powdered chocolate 
            Canned tuna                        Powdered milk for children 
            Canned peppers                     Powdered milk 
            Chicken broth                      Rice 
            Condensed milk                     Roasted coffee 
            Cooked ham                         Salt 
            Corn tortillas                     Soft drinks 
            Corn flour                         Soup paste 
            Corn dough                         Tomato puree 
            Crackers                           Vegetable oil 
            Eggs                               Vegetable fat 
            Evaporated milk                    Wheat flour 
            French rolls ("pan blanco")        White sugar 
            Gelatine 
 

                                       Annex 315 
 
                                 Other Export Measures 
 
 
                 Article 315 shall not apply as between Mexico and the 
                 other Parties. 
 
Title:Annex 300-A -- Trade and Investment in the Automotive Sector
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:61047


                                      Annex 300-A

                     Trade and Investment in the Automotive Sector


            1.   Each Party shall accord to all existing producers of
            vehicles in its territory treatment no less favorable than it
            accords to any new producer of vehicles in its territory under
            the measures referred to in this Annex, except that this
            obligation shall not be construed to apply to any differences
            in treatment specifically provided for in the Appendices to
            this Annex. 

            2.   The Parties shall review, no later than December 31, 2003,
            the status of the North American automotive sector and the
            effectiveness of the measures referred to in this Annex to
            determine actions that could be taken to strengthen the
            integration and global competitiveness of the sector.

            3.   Appendices 300-A.1, 300-A.2 and 300-A.3 apply to the
            Parties specified therein respecting trade and investment in
            the automotive sector.

            4.   For purposes of this Annex, unless otherwise specified in
            the Appendices:

            existing producer of vehicles means a producer that was
            producing vehicles in the territory of the relevant Party prior
            to model year 1992; 

            new producer of vehicles means a producer that began producing
            vehicles in the territory of the relevant Party after model
            year 1991; 

            used vehicle means a vehicle that: 

                 (a)  has been sold, leased or loaned;

                 (b)  has been driven for more than 

                      (i)  1,000 kilometers if the vehicle has a gross
                           weight of less than five metric tons, or

                      (ii) 5,000 kilometers if the vehicle has a gross
                           weight of five metric tons or more; or

                 (c)  was manufactured prior to the current year and at
                      least 90 days have elapsed since the date of
                      manufacture; and

            vehicle means an automobile, a truck, a bus or a special
            purpose motor vehicle, not including a motorcycle.

                                    Annex 300-A                             

                                   Appendix 300-A.1 

                                         Canada

            Existing Measures

            1.   Canada and the United States may maintain the Agreement
            Concerning Automotive Products between the Government of Canada
            and the Government of the United States of America, signed at
            Johnson City, Texas, January 16, 1965 and entered into force on
            September 16, 1966, in accordance with Article 1001, and
            Article 1002(1) and (4) (as they refer to Annex 1002.1, Part
            One), Article 1005(1) and (3), and Annex 1002.1, Part One
            (Waivers of Customs Duties) of the Canada - United States Free
            Trade Agreement, which provisions are hereby incorporated into
            and made a part of this Agreement for such purpose, except that
            for purposes of Article 1005(1) of that agreement, Chapter Four
            (Rules of Origin) of this Agreement shall be applied in the
            place of Chapter Three of the Canada - United States Free Trade
            Agreement.

            2.   Canada may maintain the measures referred to in Article
            1002(1) and (4) (as they refer to Annex 1002.1, Parts Two and
            Three), Article 1002(2) and (3), Article 1003 and Parts Two
            (Export-Based Waivers of Customs Duties) and Three (Production-
            Based Waivers of Customs Duties) of Annex 1002.1 of the
            Canada - United States Free Trade Agreement.  Canada shall
            eliminate those measures in accordance with the terms set out
            in that agreement.

            3.   For greater certainty, the differences in treatment
            pursuant to paragraphs 1 and 2 shall not be considered to be
            inconsistent with Article 1103 (Investment - Most-Favored-
            Nation Treatment).

            Used Vehicles

            4.   Canada may adopt or maintain prohibitions or restrictions
            on imports of used vehicles from the territory of Mexico,
            except as follows:

                 (a)  beginning January 1, 2009, Canada may not adopt or
                      maintain a prohibition or restriction on imports from
                      the territory of Mexico of originating used vehicles
                      that are at least 10 years old;

                 (b)  beginning January 1, 2011, Canada may not adopt or
                      maintain a prohibition or restriction on imports from
                      the territory of Mexico of originating used vehicles

                                        Annex 300-A                         

                      that are at least eight years old;

                 (c)  beginning January 1, 2013, Canada may not adopt or
                      maintain a prohibition or restriction on imports from
                      the territory of Mexico of originating used vehicles
                      that are at least six years old;

                 (d)  beginning January 1, 2015, Canada may not adopt or
                      maintain a prohibition or restriction on imports from
                      the territory of Mexico of originating used vehicles
                      that are at least four years old;

                 (e)  beginning January 1, 2017, Canada may not adopt or
                      maintain a prohibition or restriction on imports from
                      the territory of Mexico of originating used vehicles
                      that are at least two years old; and

                 (f)  beginning January 1, 2019, Canada may not adopt or
                      maintain a prohibition or restriction on imports from
                      the territory of Mexico of originating used vehicles.

            5.   Paragraph 4 shall not be construed to allow Canada to
            derogate from its obligations in respect of land transportation
            services under Chapter Twelve (Cross-Border Trade in Services),
            including its Schedule to Annex I.

                                     Annex 300-A                            

                                    Appendix 300-A.2

                                         Mexico

            Auto Decree and Auto Decree Implementing Regulations

            1.   Until January 1, 2004, Mexico may maintain the provisions
            of the Decree for Development and Modernization of the
            Automotive Industry ("Decreto para el Fomento y Modernizaci n
            de la Industria Automotriz"), December 11, 1989, (the "Auto
            Decree") and the Resolution that Establishes Rules for the
            Implementation of the Auto Decree ("Acuerdo que Determina
            Reglas para la Aplicaci n para el Fomento y Modernizaci n de la
            Industria Automotriz"), November 30, 1990, (the "Auto Decree
            Implementing Regulations") that would otherwise be inconsistent
            with this Agreement, subject to the conditions set out in
            paragraphs 2 through 18.  No later than January 1, 2004, Mexico
            shall bring any inconsistent provision of the Auto Decree and
            the Auto Decree Implementing Regulations into conformity with
            the other provisions of this Agreement.

            Autoparts Industry, National Suppliers and Independent
            Maquiladoras

            2.   Mexico may not require that an enterprise attain a level
            of national value added in excess of 20 percent of its total
            sales as one of the conditions to qualify as a national
            supplier or enterprise of the autoparts industry.

            3.   Mexico may require that a national supplier or an
            enterprise of the autoparts industry, in calculating its
            national value added solely for purposes of paragraph 2,
            include customs duties in the value of imports incorporated
            into the autoparts produced by such supplier or enterprise.

            4.   Mexico shall grant national supplier status to an
            independent maquiladora that requests such status and meets the
            requirements for that status set out in the existing Auto
            Decree, as modified by paragraphs 2 and 3.  Mexico shall
            continue to grant to all independent maquiladoras that request
            national supplier status all existing rights and privileges
            accorded to independent maquiladoras under the existing Decree
            for the Promotion and Operation of the Maquiladora Export
            Industry ("Decreto para el Fomento y Operaci n de la Industria
            Maquiladora de Exportaci n"), December 22, 1989 (the
            "Maquiladora Decree"). 

                                    Annex 300-A                             

            National Value Added

            5.   Mexico shall provide that a manufacturer ("empresa de la
            industria terminal") calculate its required national value
            added from suppliers (VANp) as a percentage of:

                 (a)  the manufacturer's reference value as set out in
                      paragraph 8; or

                 (b)  the manufacturer's total national value added (VANt),

            whichever is greater, except that Mexico shall provide that a
            manufacturer beginning production of motor vehicles in Mexico
            after model year 1991 calculate its required national value
            added from suppliers (VANp) as a percentage of its total
            national value added (VANt).

            6.   Mexico may not require that the percentage referred to in
            paragraph 5 be greater than:

                 (a)  34 percent for each of the first five years beginning
                      January 1, 1994;

                 (b)  33 percent for 1999;

                 (c)  32 percent for 2000;

                 (d)  31 percent for 2001;

                 (e)  30 percent for 2002; and

                 (f)  29 percent for 2003.

            7.   Notwithstanding paragraph 6, Mexico shall allow a
            manufacturer that produced motor vehicles in Mexico before
            model year 1992 to use as its percentage referred to in
            paragraph 5 the ratio of actual national value added from
            suppliers (VANp) to total national value added (VANt) that the
            manufacturer attained in model year 1992, for so long as that
            ratio is lower than the applicable percentage specified under
            paragraph 6.  In determining such ratio for model year 1992,
            purchases that the manufacturer made from independent
            maquiladoras that would have been eligible to receive national
            supplier status had paragraphs 2, 3 and 4 of this Appendix been
            in effect at that time, shall be included in the calculation of
            the manufacturer's national value added from suppliers (VANp),
            in the same manner as autoparts from any other national
            supplier or enterprise of the autoparts industry.

                                    Annex 300-A                             

            8.   The annual reference value for a manufacturer ("reference
            value") shall be:

                 (a)  for each of the years 1994 through 1997, the base
                      value for the manufacturer, plus no more than 65
                      percent of the difference between the manufacturer's
                      total sales in Mexico in that year and its base
                      value;

                 (b)  for each of the years 1998 through 2000, the base
                      value for the manufacturer, plus no more than 60
                      percent of the difference between the manufacturer's
                      total sales in Mexico in that year and its base
                      value; and

                 (c)  for each of the years 2001 through 2003, the base
                      value for the manufacturer, plus no more than 50
                      percent of the difference between the manufacturer's
                      total sales in Mexico in that year and its base
                      value.

            9.   Mexico shall provide that where a manufacturer's total
            sales in Mexico in a year are lower than its base value, the
            reference value for the manufacturer for that year shall be
            equal to the manufacturer's total sales in Mexico for the year.

            10.  In the event an abnormal production disruption affects a
            manufacturer's production capability, Mexico shall allow the
            manufacturer to seek a reduction in its reference value before
            the Intersecretariat Automotive Industry Commission,
            established under Chapter V of the Auto Decree.  If the
            Commission finds that the production capability of the
            manufacturer has been impaired by such an abnormal production
            disruption, the Commission shall reduce the manufacturer's
            reference value in an amount commensurate to the event.

            11.  If, on the request of a manufacturer, the Intersecretariat
            Automotive Industry Commission finds that the production
            capability of the manufacturer has been significantly disrupted
            as a result of a major retooling or plant conversion in the
            facilities of the manufacturer, the Commission shall reduce the
            manufacturer's reference value for that year in an amount
            commensurate with the disruption, provided that any reduction
            in that manufacturer's required national value added from
            suppliers (VANp) that may result from the Commission's
            determination to reduce the manufacturer's reference value
            shall be fully made up by the manufacturer over the 24 months
            after the date on which the retooling or plant conversion is
            completed.

                               Annex 300-A                                  

            Trade Balance

            12.  Mexico may not require a manufacturer to include in the
            calculation of its trade balance (S) a percentage of the value
            of direct and indirect imports of autoparts that the
            manufacturer incorporated into that manufacturer's production
            in Mexico for sale in Mexico (VTVd) in the corresponding year,
            greater than the following:

                 (a)  80 percent for 1994; 

                 (b)  77.2 percent for 1995;

                 (c)  74.4 percent for 1996;

                 (d)  71.6 percent for 1997;

                 (e)  68.9 percent for 1998;

                 (f)  66.1 percent for 1999; 

                 (g)  63.3 percent for 2000;

                 (h)  60.5 percent for 2001;

                 (i)  57.7 percent for 2002; and

                 (j)  55.0 percent for 2003.

            13.  Mexico shall provide that, for purposes of determining a
            manufacturer's total national value added (VANt), paragraph 12
            shall not apply to the calculation of the manufacturer's trade
            balance (S).

            14.  Mexico shall allow a manufacturer with a surplus in its
            extended trade balance to divide its extended trade balance by
            the applicable percentages in paragraph 12 to determine the
            total value of new motor vehicles that it may import.

            15.  Mexico shall provide that a manufacturer's adjustment
            factor (Y), included in the calculation of such manufacturer's
            extended trade balance, shall be equal to:

                 (a)  for a manufacturer that produced motor vehicles prior
                      to model year 1992

                      (i)  the greater of the manufacturer's reference
                           value or the manufacturer's total national value
                           added (VANt), minus

                                     Annex 300-A                            

                      (ii) the manufacturer's actual national value added
                           from suppliers (VANp) divided by the appropriate
                           percentage specified under paragraph 6 or 7 as
                           appropriate;

                 (b)  for all other manufacturers

                      (i)  the manufacturer's total national value added
                           (VANt), minus

                      (ii) the manufacturer's actual national value added
                           from suppliers (VANp) divided by the appropriate
                           percentage specified under paragraph 6,

            except that the adjustment factor (Y) shall be zero if the
            amount resulting from subtracting (ii) from (i), under (a) or
            (b), is negative.

            16.  In determining the annual amount that a manufacturer may
            apply to its extended trade balance from unused surpluses
            earned prior to model year 1991, Mexico shall in any year allow
            the manufacturer to elect:

                 (a)  to use the procedures of the existing Auto Decree
                      Implementing Regulations; or

                 (b)  to apply up to the Mexican peso equivalent of US$150
                      million, adjusted annually for cumulative inflation,
                      from the date of entry into force of this Agreement,
                      based on the implicit price deflator for U.S. Gross
                      Domestic Product (GDP) or any successor index
                      published by the Council of Economic Advisers in its
                      "Economic Indicators" (hereinafter "U.S. GDP price
                      deflator").  To adjust the US$150 million ceiling for
                      cumulative inflation up to a certain month of a year
                      following 1994, the $150 million shall be multiplied
                      by the ratio of

                      (i)  the U.S. GDP price deflator current as of the
                           month of that year, to 

                      (ii) the U.S. GDP price deflator current as of the
                           date of entry into force of this Agreement,

                      provided that the price deflators under subparagraphs
                      (i) and (ii) have the same base year. 

                      The resulting adjusted amount shall be rounded to the
                      nearest million dollars.

                                   Annex 300-A                              

            Other Restrictions in the Auto Decree

            17.  Mexico shall eliminate any restriction that limits the
            number of motor vehicles that a manufacturer may import into
            Mexico in relation to the total number of motor vehicles that
            such manufacturer sells in Mexico.

            18.  For greater certainty, the differences in treatment
            required under paragraphs 5, 7 and 15 shall not be considered
            to be inconsistent with Article 1103 (Investment - Most-
            Favored-Nation Treatment).

            Other Restrictions

            19.  For the first 10 years after the date of entry into force
            of this Agreement, Mexico may maintain prohibitions or
            restrictions on the importation of new automotive products
            provided for in existing items 8407.34.99 (gasoline engines of
            more than 1000cm3, except for motorcycles) and 8703.10.99
            (other special vehicles) in the Tariff Schedule of the General
            Import Duty Act ("Tarifa de la Ley del Impuesto General de
            Importaci n"), except that Mexico may not prohibit or restrict
            the importation of automotive products provided for in item
            8407.34.99 by manufacturers that comply with the Auto Decree
            and the Auto Decree Implementing Regulations, as modified by
            this Appendix.

            Autotransportation Decree and Autotransportation Implementing
            Regulations

            20.  Mexico shall eliminate the Mexican Decree for Development
            and Modernization of the Autotransportation Vehicle
            Manufacturing Industry, ("Decreto para el Fomento y
            Modernizaci n de la Industria Manufacturera de Vehiculos de
            Autotransporte"), December 1989, and the Resolution that
            Establishes Rules for the Implementation of the
            Autotransportation Decree ("Acuerdo que Establece Reglas de
            Aplicaci n del Decreto para el Fomento y Modernizaci n de la
            Industria Manufacturera de Veh culos de Autotransporte"),
            November 1990.  Mexico may adopt or maintain any measure
            respecting autotransportation vehicles, autotransportation
            parts or manufacturers of autotransportation vehicles provided
            that the measure is not inconsistent with this Agreement. 

            Importation of Autotransportation Vehicles

            21.  Mexico may adopt or maintain a prohibition or restriction
            on the importation of autotransportation vehicles of another
            Party until January 1, 1999, except with respect to the

                                Annex 300-A                                 

            importation of autotransportation vehicles pursuant to
            paragraphs 22 and 23.

            22.  For each of the years 1994 through 1998, Mexico shall
            allow any manufacturer of autotransportation vehicles to
            import, for each type of autotransportation vehicle, a quantity
            of originating autotransportation vehicles equal to at least 50
            percent of the number of vehicles of such type that the
            manufacturer produced in Mexico in that year. 

            23.  For each of the years 1994 through 1998, Mexico shall
            allow persons other than manufacturers of autotransportation
            vehicles to import, in a quantity to be allocated among such
            persons, originating autotransportation vehicles of each type
            as follows:

                 (a)  for each of the years 1994 and 1995, no less than 15
                      percent of the total number of vehicles of each type
                      of autotransportation vehicle produced in Mexico;

                 (b)  for 1996, no less than 20 percent of the total number
                      of vehicles of each type of autotransportation
                      vehicle produced in Mexico; and

                 (c)  for each of the years 1997 and 1998, no less than 30
                      percent of the total number of vehicles of each type
                      of autotransportation vehicle produced in Mexico.

            Mexico shall allocate such quantity through a
            non-discriminatory auction.

            Used Vehicles

            24.  Mexico may adopt or maintain prohibitions or restrictions
            on imports of used vehicles from the territory of another
            Party, except as follows:

                 (a)  beginning January 1, 2009, Mexico may not adopt or
                      maintain a prohibition or restriction on imports from
                      the territories of Canada or the United States of
                      originating used vehicles that are at least 10 years
                      old;

                 (b)  beginning January 1, 2011, Mexico may not adopt or
                      maintain a prohibition or restriction on imports from
                      the territories of Canada or the United States of
                      originating used vehicles that are at least eight
                      years old;

                                      Annex 300-A                           

                 (c)  beginning January 1, 2013, Mexico may not adopt or
                      maintain a prohibition or restriction on imports from
                      the territories of Canada or the United States of
                      originating used vehicles that are at least six years
                      old;

                 (d)  beginning January 1, 2015, Mexico may not adopt or
                      maintain a prohibition or restriction on imports from
                      the territories of Canada or the United States of
                      originating used vehicles that are at least four
                      years old;

                 (e)  beginning January 1, 2017, Mexico may not adopt or
                      maintain a prohibition or restriction on imports from
                      the territories of Canada or the United States of
                      originating used vehicles that are at least two years
                      old; and

                 (f)  beginning January 1, 2019, Mexico may not adopt or
                      maintain a prohibition or restriction on imports from
                      the territories of Canada or the United States of
                      originating used vehicles.

            25.  (a)  Paragraph 24 shall not apply to the importation on a
                      temporary basis of a used vehicle provided for in
                      item 8705.20.01 (mobile drilling derricks),
                      8705.20.99 (other mobile drilling derricks) or
                      8705.90.01 (street sweepers) of the Tariff Schedule
                      of the General Import Duty Act.  Such importation
                      shall be subject to the conditions set out in
                      paragraph 4(b) of Annex 301.3-B for such time as
                      Mexico may adopt or maintain a prohibition or
                      restriction on the importation of the vehicle under
                      paragraph 24.

                 (b)  Paragraph 24 shall not be construed to allow Mexico
                      to derogate from its obligations in respect of land
                      transportation services under Chapter Twelve (Cross-
                      Border Trade in Services), including its Schedule to
                      Annex I.

            Import Licensing Measures

            26.  Mexico may adopt or maintain import licensing measures to
            the extent necessary to administer restrictions pursuant to:

                 (a)  the Auto Decree and the Auto Decree Implementing
                      Regulations, as modified by this Appendix, on the
                      importation of motor vehicles;

                                     Annex 300-A                            

                 (b)  paragraph 19 of this Appendix on the importation of
                      new automotive products provided for in item
                      8407.34.99 (gasoline engines of more than 1000cm3,
                      except for motorcycles) or 8703.10.99 (other special
                      vehicles) in the Tariff Schedule of the General
                      Import Duty Act;

                 (c)  paragraphs 22 and 23 of this Appendix on the
                      importation of autotransportation vehicles; and

                 (d)  paragraph 24 (a) through (f) of this Appendix on the
                      importation of used vehicles that are motor vehicles
                      or autotransportation vehicles or of other used
                      vehicles provided for in existing items 8702.90.01
                      (trolley buses), 8705.10.01 (mobile cranes),
                      8705.20.99 (other mobile drilling derricks),
                      8705.90.01 (street sweepers) or 8705.90.99 (other
                      special purpose vehicles, nes) in the Tariff Schedule
                      of the General Import Duty Act;

            provided that such measures shall not have trade restrictive
            effects on the importation of such goods additional to those
            due to restrictions imposed in accordance with this Appendix,
            and that a license shall be granted to any person that fulfills
            Mexico's legal requirements for the importation of the goods.

            Definitions

            27.  For purposes of this Appendix:

            abnormal production disruption means a disruption in a
            manufacturer's production capability resulting from a natural
            disaster, fire, explosion or other unforeseen event beyond the
            manufacturer's control;

            automotive products (referred to as "productos automotrices" in
            rule 1, paragraph III of the Auto Decree Implementing
            Regulations) means motor vehicles and autoparts;

            autoparts (referred to as "partes y componentes automotrices"
            in article 2, paragraph X of the Auto Decree) means parts and
            components intended for use in a motor vehicle;

            autotransportation parts means parts and components intended
            for use in an autotransportation vehicle;

            autotransportation vehicle means a vehicle of one of the
            following types:

                                  Annex 300-A                               

                 (a)  a vehicle without a chassis and with an integrated
                      body, intended for the transport of more than 10
                      persons, with a gross vehicle weight of more than
                      8,864 kilograms, provided for in items 8702.10.02,
                      8702.10.03, 8702.90.03, 8702.90.04, 8705.20.01 or
                      8705.40.01 of the Tariff Schedule of the General
                      Import Duty Act;

                 (b)  a vehicle with a chassis, intended for the transport
                      of goods or more than 10 persons, with a gross
                      vehicle weight of more than 8,864 kilograms, provided
                      for in items 8702.10.01, 8702.10.03, 8702.90.02,
                      8702.90.04, 8704.22.99, 8704.23.99, 8704.32.99,
                      8705.20.01, 8705.40.01 or 8706.00.99 of the Tariff
                      Schedule of the General Import Duty Act; or

                 (c)  a vehicle with two or three axles, either with
                      integrated equipment or intended for the transport of
                      goods by hauling a trailer, or semi-trailer, provided
                      for in items 8701.20.01, 8705.20.01, 8705.40.01 or
                      8706.00.99 of the Tariff Schedule of the General
                      Import Duty Act;

            base value means the average for model years 1991 and 1992 of a
            manufacturer's production in Mexico for sale in Mexico (VTVd),
            adjusted annually for cumulative inflation, based on the
            Mexican National Producer Price Index of Vehicles, Autoparts,
            and other Transportation Goods ("Indice Nacional de Precios al
            Productor de veh culos, refacciones y otros materiales de
            transporte"), or any successor index, published by the Bank of
            Mexico ("Banco de Mexico") in its "Economic Indicators"
            ("Indicadores Economicos") (hereinafter "Mexican NPPI").  To
            adjust the base value for cumulative inflation up to 1994 or a
            subsequent year, the average for model years 1991 and 1992 of
            the manufacturer's VTVd shall be multiplied by the ratio of:

                 (a)  the Mexican NPPI for that year, to

                 (b)  the Mexican NPPI for 1992,

            provided that the price indices set out in subparagraphs (a)
            and (b) have the same base year;

            enterprise of the autoparts industry (referred to as "empresa
            de la industria de autopartes" in article 2, paragraph V, and
            articles 6 and 7 of the Auto Decree) means an enterprise
            constituted or organized under the law of, and operating in,
            Mexico that produces autoparts and:

                                 Annex 300-A                                

                 (a)  whose annual invoice value of sales of autoparts to
                      manufacturers, for use as original equipment by the
                      manufacturer in its production of automotive products
                      for sale in Mexico, constitutes more than 60 percent
                      of the enterprise's annual total invoice value of
                      sales, calculating its annual invoice value of sales
                      of autoparts to manufacturers in accordance with rule
                      20 of the Auto Decree Implementing Regulations as of
                      August 12, 1992, or any other measure adopted by
                      Mexico that is no more restrictive than such rule;

                 (b)  complies with the national value added requirements
                      pursuant to paragraphs 2 and 3 of this Appendix; 

                 (c)  complies with the capital structure required under
                      the Law to Promote Mexican Investment and Regulate
                      Foreign Investment ("Ley para Promover la Inversi n
                      Mexicana y Regular la Inversi n Extranjera"), March
                      9, 1973, and the Regulations of the Law to Promote
                      Mexican Investment and to Regulate Foreign Investment
                      ("Reglamento de la Ley para Promover la Invers on
                      Mexicana y Regular la Invers on Extranjera"), May 16,
                      1989, as applied consistently with Mexico's
                      commitments set out in its Schedule to Annex I of
                      Part Five (Investment, Services and Related Matters);
                      and

                 (d)  that, on the fulfillment of the requirements under
                      (a), (b) and (c), is registered with the Ministry of
                      Trade and Industrial Development ("Secretar a de
                      Comercio y Fomento Industrial") ("SECOFI") as an
                      enterprise of the autoparts industry, except that
                      SECOFI may grant registration to an enterprise that
                      complies with subparagraphs (b) and (c) but does not
                      comply with subparagraph (a);

            extended trade balance for a manufacturer is equal to S + T + W
            + 0.3I + SFt - Y, where:

                 (a)  S denotes the manufacturer's trade balance; 

                 (b)  T denotes the transfer of

                      (i)  trade balance surpluses between the manufacturer
                           and other manufacturers, and

                      (ii) foreign exchange to the manufacturer that an
                           enterprise of the autoparts industry has earned
                           from exports of autoparts, excluding the value

    
                            Annex 300-A                                     

                           of import content in such exports, and excluding
                           foreign exchange that the enterprise has earned
                           from exports of autoparts that were promoted by
                           the manufacturer, 

                      applied in accordance with rule 8 of the Auto Decree
                      Implementing Regulations as of August 12, 1992, or
                      any other measure adopted by Mexico that is no more
                      restrictive than such rule;

                 (c)  W denotes the transfer to the manufacturer of foreign
                      exchange that a maquiladora has earned from the
                      export of automotive products, excluding the value of
                      the import content in such exports, provided that the
                      maquiladora is not a national supplier, and one or
                      more of the following conditions is met 

                      (i)  the manufacturer is, directly or indirectly, a
                           majority shareholder of the maquiladora,

                      (ii) the manufacturer and the maquiladora have a
                           majority shareholder in common, or

                      (iii)     the manufacturer is a promoter of the
                                automotive goods exported by such
                                maquiladora,

                      calculated in accordance with article 9 of the Auto
                      Decree and rule 8 of the Auto Decree Implementing
                      Regulations as of August 12, 1992, or any other
                      measure adopted by Mexico that is no more restrictive
                      than that article or rule; 

                 (d)  I denotes the value of the manufacturer's investments
                      in fixed assets of Mexican origin destined for
                      permanent use in Mexico, excluding machinery and
                      equipment purchased in Mexico but not produced in
                      Mexico, that the manufacturer may transfer to its
                      extended trade balance, applied in accordance with
                      article 11 of the Auto Decree and rule 8 of the Auto
                      Decree Implementing Regulations as of August 12,
                      1992, or any other measure adopted by Mexico that is
                      no more restrictive than the article or rule; 

                 (e)  SFt denotes the manufacturer's trade balance
                      surpluses unused in prior years and transferred to
                      the current year, calculated in accordance with rules
                      17 and 19 of the Auto Decree Implementing Regulations
                      as of August 12, 1992, as modified by paragraph 16 of

                                     Annex 300-A                            

                      this Appendix, or any other measure adopted by Mexico
                      that is no more restrictive than such rules; and

                 (f)  Y denotes the adjustment factor calculated in
                      accordance with paragraph 15;

            independent maquiladora means an enterprise registered as an
            export maquiladora enterprise under the existing Maquiladora
            Decree, that has no majority shareholder in common with any
            manufacturer, and in which no manufacturer is directly or
            indirectly a majority shareholder;

            manufacturer (referred to as "empresa de la industria terminal"
            in article 2, paragraph IV, and articles 3, 4 and 5 of the Auto
            Decree) means an enterprise constituted or organized under the
            law of, and operating in, Mexico, that is:

                 (a)  registered with SECOFI; and

                 (b)  engaged in Mexico in the manufacture or final
                      assembly of motor vehicles;

            manufacturer of autotransportation vehicles means an enterprise
            constituted or organized under the law of, and operating in,
            Mexico:

                 (a)  that is registered with SECOFI;

                 (b)  that manufactures autotransportation vehicles in
                      Mexico; and

                 (c)  where the enterprise's

                      (i)  total invoice value of sales of
                           autotransportation vehicles and
                           autotransportation parts that it produces in
                           Mexico, minus

                      (ii) total invoice value of autotransportation parts
                           that the enterprise imports directly, plus the
                           value of the import content of
                           autotransportation parts that it purchases in
                           Mexico,

                      is equal to at least 40 percent of its total invoice
                      value of sales of autotransportation vehicles and
                      autotransportation parts that the enterprise produces
                      in Mexico;

                                     Annex 300-A                            

            manufacturer's production in Mexico for sale in Mexico (VTVd)
            means the total invoice value of a manufacturer's sales in
            Mexico of motor vehicles and autoparts it produced in Mexico,
            excluding the manufacturer's sales of imported motor vehicles;

            manufacturer's total sales in Mexico means the manufacturer's
            total invoice value of sales of motor vehicles it produced in
            Mexico for sale in Mexico plus the total invoice value of its
            sales of imported motor vehicles; 

            model year (referred to as "a o-modelo" in article 2, paragraph
            IX of the Auto Decree) means a 12-month period beginning
            November 1;

            motor vehicle (referred to as "veh culos automotores" in
            article 2, paragraph IV of the Auto Decree) means an
            automobile, a compact automobile of popular use, a commercial
            truck, a light duty truck or a medium duty truck, where: 

                 (a)  automobile means a vehicle intended for the transport
                      of up to 10 persons, provided for in items 8703.21
                      through 8703.33, 8703.90.99, 8706.00.01, 8706.00.02
                      or 8706.00.99 of the Tariff Schedule of the General
                      Import Duty Act;

                 (b)  compact automobile of popular use means a vehicle
                      that complies with the characteristics set out in the
                      existing Decree that Establishes Exemptions for
                      Compact Automobiles of Popular Use ("Decreto que
                      Otorga Exenciones a los Autom viles Compactos de
                      Consumo Popular"), August 2, 1989, provided for in
                      items 8703.21 through 8703.33, 8703.90.99,
                      8706.00.01, 8706.00.02 or 8706.00.99 of the Tariff
                      Schedule of the General Import Duty Act;

                 (c)  commercial truck means a vehicle with or without a
                      chassis, intended for the transport of goods or more
                      than 10 persons, with a gross vehicle weight of up to
                      2,727 kilograms provided for in items 8702.10,
                      8702.90.02, 8702.90.03, 8703.21 through 8703.33,
                      8703.90.99, 8704.21.99, 8704.31.99, 8705.20.01,
                      8705.40.01, 8706.00.01, 8706.00.02 or 8706.00.99 of
                      the Tariff Schedule of the General Import Duty Act; 

                 (d)  light duty truck means a vehicle with or without a
                      chassis, intended for the transport of goods or more
                      than 10 persons, with a gross vehicle weight of more
                      than 2,727 but no more than 7,272 kilograms provided
                      for in items 8702.10, 8702.90.02, 8702.90.03,

                                       Annex 300-A                          

                      8704.21.99, 8704.22.99, 8704.31.99, 8704.32.99,
                      8705.20.01, 8705.40.01, 8706.00.01, 8706.00.02 or
                      8706.00.99 of the Tariff Schedule of the General
                      Import Duty Act; and

                 (e)  medium duty truck means a vehicle with or without a
                      chassis, intended for the transport of goods or more
                      than 10 persons, with a gross vehicle weight of more
                      than 7,272 but no more than 8,864 kilograms provided
                      for in items 8702.10, 8702.90.02, 8702.90.03,
                      8704.22.99, 8704.32.99, 8705.20.01, 8705.40.01,
                      8706.00.01, 8706.00.02 or 8706.00.99 of the Tariff
                      Schedule of the General Import Duty Act;

            national supplier (referred to as "proveedor nacional" in
            article 2, paragraph VII of the Auto Decree) means an
            enterprise constituted or organized under the law of, and
            operating in, Mexico:

                 (a)  that supplies to manufacturers autoparts classified
                      in categories 26, 40, 41, 42, 43 and 57 of the
                      input-output matrix of the National Institute of
                      Statistics, Geography and Informatics ("Instituto
                      Nacional de Estad stica, Geograf a e Inform tica"),
                      published in 1980; 

                 (b)  that is registered with SECOFI; 

                 (c)  in which no manufacturer, directly or indirectly, is
                      a majority shareholder;

                 (d)  that has no majority shareholders that are also
                      majority shareholders of any manufacturer; and

                 (e)  that complies with the national value added
                      requirements pursuant to paragraphs 2 and 3;

            national value added from suppliers (VANp) (referred to as
            "VANp" in rule 18 of the Auto Decree Implementing Regulations)
            means, for a manufacturer, the sum of:

                 (a)  the national value added contained in the autoparts
                      that the manufacturer purchases from national
                      suppliers and from enterprises of the autoparts
                      industry, excluding purchases of autoparts from such
                      suppliers and enterprises destined for the
                      aftermarket, and

                 (b)  the foreign exchange attributable to the value of

                                        Annex 300-A                         

                      exports of autoparts, excluding the value of import
                      content in the exports, produced by national
                      suppliers and enterprises of the autoparts industry,
                      where the export of the autoparts was promoted by the
                      manufacturer,

            calculated in accordance with formula 7 of rule 18 in the Auto
            Decree Implementing Regulations as of August 12, 1992, or any
            other measure adopted by Mexico that is no more restrictive
            than such formula;

            national value added means, for an enterprise of the autoparts
            industry or a national supplier, the total value of sales of
            such enterprise or supplier minus the value of its total
            imports, direct and indirect, excluding those imports
            incorporated in autoparts destined for the aftermarket, as
            modified by paragraphs 2 and 3;

            total national value added (VANt) (referred to as "valor
            agregado nacional de la empresa de la industria terminal" in
            rule 18 of the Auto Decree Implementing Regulations) means, for
            a manufacturer, either:

                 (a)  the sum of the manufacturer's production in Mexico
                      for sale in Mexico (VTVd) plus the manufacturer's
                      trade balance (S), where the trade balance (S) is
                      greater than zero; or

                 (b)  the manufacturer's production in Mexico for sale in
                      Mexico (VTVd), where the manufacturer's trade balance
                      (S) is negative;

            total sales means, for a national supplier or an enterprise of
            the autoparts industry, the sum of:

                 (a)  the invoice value of sales of autoparts by that
                      supplier or enterprise to a manufacturer that are
                      intended for use as original equipment in the motor
                      vehicles or autoparts that the manufacturer produces,
                      excluding autoparts destined for the aftermarket; and

                 (b)  the value of autoparts that the supplier or
                      enterprise exports, either directly or through a
                      manufacturer, less the value of the imported content
                      of such autoparts; and

            trade balance (S) (referred to as "saldo en balanza comercial"
            in rule 9 of the Auto Decree Implementing Regulations), for a
            manufacturer, is equal to X + TP - ID - IP, where:

                                  Annex 300-A                               

                 (a)  X denotes the value of the manufacturer's direct
                      exports of motor vehicles and autoparts that it
                      produces, 

                 (b)  TP denotes the foreign exchange attributable to the
                      value of exports of autoparts, excluding the value of
                      import content in the exports, produced by national
                      suppliers and enterprises of the autoparts industry,
                      where the exportation of such autoparts was promoted
                      by the manufacturer,

                 (c)  ID denotes the value of the manufacturer's direct
                      imports, excluding duties and domestic taxes, and
                      whether the imports are for domestic consumption
                      ("definitivas") or for re-export ("temporales"),
                      incorporated in the motor vehicles and autoparts
                      produced by the manufacturer, excluding autoparts
                      destined for the aftermarket, and

                 (d)  IP denotes the value of import content in the
                      autoparts purchased by the manufacturer from an
                      enterprise of the autoparts industry or a national
                      supplier that are incorporated in the motor vehicles
                      and autoparts produced by the manufacturer, excluding
                      the import content of autoparts destined for the
                      aftermarket, calculated in accordance with rules 10,
                      12, 13, 14, and 15 of the Auto Decree Implementing
                      Regulations as of August 12, 1992, or any other
                      measure adopted by Mexico that is no more restrictive
                      than such rules,

            provided that, for purposes of subparagraphs (c) and (d), the
            value of imports for domestic consumption ("definitivas") shall
            be discounted in accordance with paragraph 12.

                                 Annex 300-A                                

                              Appendix 300-A.3

                     United States - Corporate Average Fuel Economy

            1.   In accordance with the schedule set out in paragraph 2,
            for purposes of the Energy Policy and Conservation Act of 1975,
            42 U.S.C.   6201 et seq. ("the CAFE Act"), the United States
            shall consider an automobile to be domestically manufactured in
            any model year if at least 75 percent of the cost to the
            manufacturer of such automobile is attributable to value added
            in Canada, Mexico or the United States, unless the assembly of
            the automobile is completed in Canada or Mexico and such
            automobile is not imported into the United States prior to the
            expiration of the 30 days following the end of the model year. 

            2.   Paragraph 1 shall apply to all automobiles produced by a
            manufacturer and sold in the United States, wherever produced
            and irrespective of car line or truck line, in accordance with
            the following schedule:

                 (a)  with respect to a manufacturer that initiated the
                      production of automobiles in Mexico before model year
                      1992, the enterprise subject to the fuel economy
                      requirements for those automobiles under the CAFE Act
                      may make a one-time election at any time between
                      January 1, 1997 and 
                      January 1, 2004, to have paragraph 1 applied
                      beginning with the next model year after its
                      election;

                 (b)  with respect to a manufacturer initiating the
                      production of automobiles in Mexico after model year
                      1991, paragraph 1 shall apply beginning with the next
                      model year after either January 1, 1994 or the date
                      that the manufacturer initiates the production of
                      automobiles in Mexico, whichever is later;

                 (c)  with respect to any other manufacturer producing
                      automobiles in the territory of a Party, the
                      enterprise subject to the fuel economy requirements
                      for those automobiles under the CAFE Act may make a
                      one-time election at any time between January 1, 1997
                      and January 1, 2004, to have paragraph 1 applied
                      beginning with the next model year after its
                      election.  If such a manufacturer initiates the
                      production of automobiles in Mexico, it shall be
                      subject to subparagraph (b) on the date it initiates
                      such production;

                                   Annex 300-A                              

                 (d)  with respect to all manufacturers of automobiles not
                      producing automobiles in the territory of a Party,
                      paragraph 1 shall apply beginning with the next model
                      year after January 1, 1994; and

                 (e)  with respect to a manufacturer of automobiles covered
                      by subparagraph (a) or (c), paragraph 1 shall apply
                      beginning with the next model year after January 1,
                      2004, where the enterprise subject to the fuel
                      economy requirements for those automobiles under the
                      CAFE Act, has not made an election under subparagraph
                      (a) or (c).

            3.   The United States shall ensure that any measure it adopts
            pertaining to the definition of domestic production in the CAFE
            Act or its implementing regulations shall apply equally to
            value added in Canada or Mexico.

            4.   Nothing in this Appendix shall be construed to require the
            United States to make any changes in its fuel economy
            requirements for automobiles, or to prevent the United States
            from making any changes in its fuel economy requirements for
            automobiles that are otherwise consistent with this Appendix.

            5.   For greater certainty, the differences in treatment
            pursuant to paragraphs 1 through 3 shall not be considered to
            be inconsistent with Article 1103 (Investment - Most-Favored-
            Nation Treatment).

            6.    For purposes of this Appendix:

            automobile means "automobile" as defined in the CAFE Act and
            its implementing regulations;

            manufacturer means "manufacturer" as defined in the CAFE Act
            and its implementing regulations; and

            model year means "model year" as defined in the CAFE Act and
            its implementing regulations.

Title:Annex 300-B -- Textile and Apparel Goods
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:260651

                                      Annex 300-B

                               Textile and Apparel Goods


            Section 1:  Scope and Coverage

            1.   This Annex applies to the textile and apparel goods set
            out in Appendix 1.1.

            2.   In the event of any inconsistency between this Agreement
            and the Arrangement Regarding International Trade in Textiles
            (Multifiber Arrangement), as amended and extended, including
            any amendment or extension after January 1, 1994, or any other
            existing or future agreement applicable to trade in textile or
            apparel goods, this Agreement shall prevail to the extent of
            the inconsistency, unless the Parties agree otherwise.


            Section 2:  Tariff Elimination

            1.   Except as otherwise provided in this Agreement, each Party
            shall progressively eliminate its customs duties on originating
            textile and apparel goods in accordance with its Schedule to
            Annex 302.2 (Tariff Elimination), and as set out for ease of
            reference in Appendix 2.1.

            2.   For purposes of this Annex: 

                 (a)  a textile or apparel good shall be considered an
                      originating good if the applicable change in tariff
                      classification set out in Chapter Four (Rules of
                      Origin) has been satisfied in the territory of one or
                      more of the Parties in accordance with Article 404
                      (Accumulation); and 

                 (b)  for purposes of determining which rate of customs
                      duty and staging category is applicable to an
                      originating textile or apparel good, a good shall be
                      considered a good of a Party  

                      (i)  as determined by each importing Party's
                           regulations, practices or procedures, except
                           that

                                   Annex 300-B                              

                      (ii) in the event of an agreement between the Parties
                           pursuant to Annex 311(1) (Country of Origin
                           Marking), as determined by such agreement.

            3.   An importing Party and an exporting Party may identify at
            any time particular textile and apparel goods that they
            mutually agree fall within:

                 (a)  hand-loomed fabrics of a cottage industry; 

                 (b)  hand-made cottage industry goods made of such hand-
                      loomed fabrics; or 

                 (c)  traditional folklore handicraft goods.

            The importing Party shall grant duty-free treatment to goods so
            identified, if certified by the competent authority of the
            exporting Party.

            4.    Appendix 2.4 applies to the Parties specified in that
            Appendix respecting the elimination of tariffs on certain
            textile and apparel goods.


            Section 3:  Import and Export Prohibitions, Restrictions and
            Consultation Levels

            1.   Each Party may maintain a prohibition, restriction or
            consultation level only in accordance with Appendix 3.1 or as
            otherwise provided in this Annex.

            2.   Each Party shall eliminate any prohibition, restriction or
            consultation level on a textile or apparel good that otherwise
            would be permitted under this Annex if that Party is required
            to eliminate such measure as a result of having integrated that
            good into the GATT as a result of commitments undertaken by
            that Party under any successor agreement to the Multifiber
            Arrangement.


            Section 4:  Bilateral Emergency Actions (Tariff Actions)

            1.   Subject to paragraphs 2 through 5 and during the
            transition period only, if, as a result of the reduction or
            elimination of a duty provided for in this Agreement, a textile
            or apparel good originating in the territory of a Party, or a
            good that has been integrated into the GATT pursuant to a
            commitment undertaken by a Party under any successor agreement

                                 Annex 300-B                                

            to the Multifiber Arrangement and entered under a tariff
            preference level set out in Appendix 6, is being imported into
            the territory of another Party in such increased quantities, in
            absolute terms or relative to the domestic market for that
            good, and under such conditions as to cause serious damage, or
            actual threat thereof, to a domestic industry producing a like
            or directly competitive good, the importing Party may, to the
            minimum extent necessary to remedy the damage or actual threat
            thereof:
             
                 (a)  suspend the further reduction of any rate of duty
                      provided for under this Agreement on the good; or

                 (b)  increase the rate of duty on the good to a level not
                      to exceed the lesser of

                      (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
                           December 31, 1993.

            2.   In determining serious damage, or actual threat thereof,
            the Party:  

                 (a)  shall examine the effect of increased imports on the
                      particular industry, as reflected in changes in such
                      relevant economic variables as output, productivity,
                      utilization of capacity, inventories, market share,
                      exports, wages, employment, domestic prices, profits
                      and investment, none of which is necessarily
                      decisive; and 

                 (b)  shall not consider changes in technology or consumer
                      preference as factors supporting a determination of
                      serious damage or actual threat thereof.

            3.   A Party shall deliver without delay to any Party that may
            be affected by an emergency action taken under this Section
            written notice of its intent to take such action, and on
            request shall enter into consultations with that Party.

            4.   The following conditions and limitations apply to any
            emergency action taken under this Section:

                 (a)  no action may be maintained for a period exceeding
                      three years or, except with the consent of the Party

                                 Annex 300-B                                

                      against whose good the action is taken, have effect
                      beyond the expiration of the transition period;

                 (b)  no action may be taken by a Party against any
                      particular good originating in the territory of
                      another Party more than once during the transition
                      period; and

                 (c)  on termination of the action, the rate of duty shall
                      be the rate that, according to the Schedule 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 that Party's Schedule to Annex
                           302.2, or

                      (ii) the tariff shall be eliminated in equal annual
                           stages ending on the date set out in that
                           Party's Schedule to Annex 302.2 for the
                           elimination of the tariff.

            5.   The Party taking an action under this Section 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.  Such concessions shall be limited to
            the textile and apparel goods set out in Appendix 1.1, unless
            the Parties otherwise agree.  If the Parties concerned are
            unable to agree on compensation, the exporting Party may take
            tariff action having trade effects substantially equivalent to
            the action taken under this Section against any goods imported
            from the Party that initiated the action under this Section. 
            The Party taking the tariff action shall only apply the action
            for the minimum period necessary to achieve the substantially
            equivalent effects.

            6.   For purposes of this Section, a good originating in the
            territory of a Party shall be determined in accordance with
            Section 2.2.

            7.   Paragraphs 1 through 5 shall also apply to textile and
            apparel goods described in Appendix 2.4.

                                  Annex 300-B                               

            Section 5:  Bilateral Emergency Actions (Quantitative
            Restrictions)

            1.   Subject to Appendix 5.1, a Party may take bilateral
            emergency action against non-originating textile or apparel
            goods of another Party in accordance with this Section and
            Appendix 3.1.

            2.   If a Party considers that a non-originating textile or
            apparel good, including a good entered under a tariff
            preference level set out in Appendix 6, is being imported into
            its territory from a Party in such increased quantities, in
            absolute terms or relative to the domestic market for that
            good, under such conditions as to cause serious damage, or
            actual threat thereof, to a domestic industry producing a like
            or directly competitive good in the importing Party, the
            importing Party may request consultations with the other Party
            with a view to eliminating the serious damage or actual threat
            thereof.

            3.   The Party requesting consultations shall include in its
            request for consultations the reasons that it considers
            demonstrate that such serious damage or actual threat thereof
            to its domestic industry is resulting from the imports of the
            other Party, including the latest data concerning such damage
            or threat.

            4.   In determining serious damage, or actual threat thereof,
            the Party shall apply Section 4(2).

            5.   The Parties concerned shall begin consultations within 60
            days of the request for consultations and shall endeavor to
            agree on a mutually satisfactory level of restraint on exports
            of the particular good within 90 days of the request, unless
            the consulting Parties agree to extend this period.  In
            reaching a mutually satisfactory level of export restraint, the
            consulting Parties shall:

                 (a)  consider the situation in the market in the importing
                      Party;

                 (b)  consider the history of trade in textile and apparel
                      goods between the consulting Parties, including
                      previous levels of trade; and

                 (c)  seek to ensure that the textile and apparel goods
                      imported from the territory of the exporting Party
                      are accorded equitable treatment as compared with

                                    Annex 300-B                             

                      treatment accorded like textile and apparel goods
                      from non-Party suppliers.

            6.   If the consulting Parties do not agree on a mutually
            satisfactory level of export restraint, the Party requesting
            consultations may impose annual quantitative restrictions on
            imports of the good from the territory of the other Party,
            subject to paragraphs 7 through 13. 

            7.   Any quantitative restriction imposed under paragraph 6
                 shall be no less than the sum of:

                 (a)  the quantity of the good imported into the territory
                      of the Party requesting consultations from the Party
                      that would be affected by the restriction, as
                      reported in general import statistics of the
                      importing Party, during the first 12 of the most
                      recent 14 months preceding the month in which the
                      request for consultations was made; and

                 (b)  20 percent of such quantity for cotton, man-made
                      fiber and other non-cotton vegetable fiber good
                      categories, and six percent for wool good categories.

            8.   The first period of any quantitative restriction imposed
            under paragraph 6 shall begin on the day after the date on
            which the request for consultations was made and terminate at
            the end of the calendar year in which the quantitative
            restriction is imposed.  Any quantitative restriction that is
            imposed for a first period of less than 12 months shall be
            prorated to correspond to the time remaining in the calendar
            year in which the restriction is imposed, and the prorated
            amount may be adjusted in accordance with the flexibility
            provisions set out in paragraphs 8(b) and (c) of Appendix 3.1.

            9.   For each successive calendar year that the quantitative
            restriction imposed under paragraph 6 remains in effect, the
            Party imposing it shall: 

                 (a)  increase it by six percent for cotton, man-made fiber
                      and non-cotton vegetable fiber textile and apparel
                      goods, and by two percent for wool textile and
                      apparel goods, and

                 (b)  accelerate the growth rate for quantitative
                      restrictions on cotton, man-made fiber and non-cotton
                      vegetable fiber textile and apparel goods if required

                                    Annex 300-B                             

                      by any successor agreement to the Multifiber
                      Arrangement, 

            and the flexibility provisions set out in paragraphs 8(b) and
            (c) of Appendix 3.1 apply. 

            10.  A quantitative restriction imposed under paragraph 6
            before July 1 in any calendar year may remain in effect for the
            remainder of that year, plus two additional calendar years.  
            Such a restriction imposed on or after July 1 in any calendar
            year may remain in effect for the remainder of that year, plus
            three additional calendar years.  No such restriction may
            remain in effect beyond the transition period.

            11.  No Party may take an emergency action under this Section
            with respect to any particular textile or apparel non-
            originating good against which a quantitative restriction is in
            effect.

            12.  No Party may adopt or maintain a quantitative restriction
            under this Section on a particular textile or apparel good that
            otherwise would be permitted under this Annex, if that Party is
            required to eliminate such measure as a result of having
            integrated that good into the GATT as a result of commitments
            undertaken by that Party pursuant to any successor agreement to
            the Multifiber Arrangement.

            13.  No Party may take a bilateral emergency action after the
            expiration of the transition period with respect to cases of
            serious damage, or actual threat thereof, to domestic industry
            arising from the operation of this Agreement except with the
            consent of the Party against whose good the action would be
            taken.


            Section 6:  Special Provisions

                 Appendix 6 sets out special provisions applicable to
            certain textile and apparel goods.


            Section 7:  Review and Revision of Rules of Origin

            1.   (a)  The Parties shall monitor the effects of the
                      application of the rule of origin set out in Annex
                      401 applicable to goods of subheading 6212.10 of the
                      Harmonized System (HS).  No earlier than April 1,
                      1995, a Party may request consultations with the

                                   Annex 300-B                              

                      other Parties to seek a mutually satisfactory
                      solution to any difficulties that it considers result
                      from the application of that rule of origin.

                 (b)  If the consulting Parties fail to reach a mutually
                      satisfactory solution within 90 days of a request for
                      consultations, on request of any Party the rule of
                      origin applicable to subheading 6212.10 shall change
                      to the rule of origin set out in Annex 401 applicable
                      to headings 62.06 through 62.11 with respect to trade
                      between the requesting Party and the other Parties.  
                      Any such change shall be effective 180 days after the
                      request.  The Parties shall take measures to ease any
                      resulting administrative burden on producers.

                 (c)  Unless the Parties agree otherwise, at any time after
                      the completion of consultations held under
                      subparagraph (a) and during the transition period
                      only, a Party that has requested such consultations
                      may make one additional request for consultations
                      under subparagraph (a) and take action under
                      subparagraph (b).

            2.   (a)  On request of any Party, the Parties shall consult to
                      consider whether particular goods should be subject
                      to different rules of origin to address issues of
                      availability of supply of fibers, yarns or fabrics in
                      the free trade area.

                 (b)  In the consultations, each Party shall consider all
                      data presented by a Party showing substantial
                      production in its territory of the particular good. 
                      The consulting Parties shall consider that
                      substantial production has been shown if that Party
                      demonstrates that its domestic producers are capable
                      of supplying commercial quantities of the good in a
                      timely manner.

                 (c)  The Parties shall endeavor to conclude consultations
                      within 60 days of the request.  An agreement between
                      two or more Parties resulting from the consultations
                      shall supersede any prior rule of origin for such
                      good when approved by each such Party in accordance
                      with Article 2202(2) (Amendments).  If no agreement
                      is reached, a Party may have recourse to paragraph
                      B.8 of Appendix 6.

                                    Annex 300-B                             

                 (d)  Further to subparagraph (a), on request of any Party,
                      the Parties shall consult to consider whether the
                      rules of origin set out in Annex 401 applicable to
                      the following provisions should be amended in view of
                      increasing availability of supply of relevant yarns
                      or fabrics within the free trade area:

                      (i)  Canadian tariff item 5407.60.10, Mexican tariff
                           item 5407.60.02 and U.S. tariff item 5407.60.22, 


                      (ii) provisions (a) through (i) of the rule of origin
                           for subheadings 6205.20 through 6205.30, 

                      (iii)     goods of subheadings 6107.21, 6108.21 and
                                6108.31, wholly of fabric of Canadian
                                tariff item 6002.92.10, Mexican tariff item
                                6002.92.01, and U.S. tariff item
                                6002.92.10, and exclusive of collar, cuffs,
                                waistband, elastic or lace; 

                      (iv) note 2 to Chapter 62 of Annex 401, and 

                      (v)  Canadian tariff item 6303.92.10, Mexican tariff
                           item 6303.92.01 and U.S. tariff item 6303.92.aa.

            3.   The Parties shall review the rules of origin applicable to
            textile and apparel goods within five years of the date of
            entry into force of this Agreement to take into account the
            effect of increasing global competition on textile and apparel
            goods and the implications of any integration into the GATT of
            textile and apparel goods pursuant to any successor agreement
            to the Multifiber Arrangement.  The Parties shall give
            particular consideration to operative rules in other economic
            association or integration agreements and developments relating
            to textile and apparel production and trade. 

            Section 8:  Labelling Requirements

                 The Subcommittee on Labelling of Textile and Apparel Goods
            established under Article 913(5) shall perform the functions
            set out in Annex 913.5.a-4. 


            Section 9:  Trade in Worn Clothing and Other Worn Articles

                               Annex 300-B                                  

            1.   The Parties hereby establish a Committee on Trade in Worn
            Clothing, comprising representatives of each Party.  The
            Committee shall:

                 (a)  include or consult with a broadly representative
                      group drawn from the manufacturing and retailing
                      sectors in each Party; and

                 (b)  act in a transparent manner and, if no member of the
                      Committee formally objects, make recommendations to
                      the Commission.

            2.   The Committee shall assess the potential benefits and
            risks that may result from the elimination of existing
            restrictions on trade between the Parties in worn clothing and
            other worn articles, as defined in heading 63.09 of the HS,
            including the effects on business and employment opportunities,
            and on the market for textile and apparel goods in each Party.

            3.   A Party may maintain restrictions in effect on the date of
            entry into force of this Agreement on the importation of worn
            clothing and other worn articles classified under  heading
            63.09 of the HS, unless the Parties agree otherwise on the
            basis of the recommendations presented to the Commission by the
            Committee on Trade in Worn Clothing.


            Section 10:  Definitions

            For purposes of this Annex:

            average yarn number, as applied to woven fabrics of cotton or
            man-made fibers, means the average yarn number of the yarns
            contained therein.  In computing the average yarn number, the
            length of the yarn is considered to be equal to the distance
            covered by it in the fabric, with all clipped yarn being
            measured as if continuous and with the count being taken of the
            total single yarns in the fabric including the single yarns in
            any multiple (folded) or cabled yarns.  The weight shall be
            taken after any excessive sizing is removed by boiling or other
            suitable process.  Any one of the following formulas can be
            used to determine the average yarn number:

                      N =   BYT   ,   100T   , BT   or    ST 
                           1,000       Z'      Z          10
    

                 when:
                                Annex 300-B                                 

                       N is the average yarn number,
                       B is the breadth (width) of the fabric in
            centimeters,
                       Y is the meters (linear) of the fabric per
            kilogram,
                       T is the total single yarns per square centimeter,
                       S is the square meters of fabric per kilogram,
                       Z is the grams per linear meter of fabric, and
                       Z' is the grams per square meter of fabric.

                 Fractions in the resulting "average yarn number" shall be
            disregarded.  

            category means a grouping of textile or apparel goods, and as
            set out in Appendix 10.1 for the Parties specified in that
            Appendix;

            consultation level means a level of exports for a particular
            textile or apparel good that may be adjusted in accordance with
            paragraph 7 of Appendix 3.1 and includes a designated
            consultation level, but does not include a specific limit;

            exporting Party means the Party from whose territory a textile
            or apparel good is exported;

            flexibility provisions means the provisions set out in
            paragraphs 8(b) and (c) of Appendix 3.1; 

            importing Party means the Party into whose territory a textile
            or apparel good is imported;

            integrated into the GATT means subject to the obligations of
            the General Agreement on Tariffs and Trade, an agreement under
            the GATT or any successor agreements;

            specific limit means a level of exports for a particular
            textile or apparel good that may be adjusted in accordance with
            paragraph 8 of Appendix 3.1;

            square meters equivalent (SME) means that unit of measurement
            that results from the application of the conversion factors set
            out in Schedule 3.1.3 to a primary unit of measure such as
            unit, dozen or kilogram;

            tariff preference level means a mechanism that provides for the
            application of a customs duty at a preferential rate to imports
            of a particular good up to a specified quantity, and at a

                                    Annex 300-B                             

            different rate to imports of that good that exceed that
            quantity;

            transition period means the 10-year period beginning on January
            1, 1994; and

            wool apparel means:

                 (a)   apparel in chief weight of wool;

                 (b)   woven apparel in chief weight of man-made fibers
                       containing 36 percent or more by weight of wool;
                       and

                 (c)   knitted or crocheted apparel in chief weight of
                       man-made fibers containing 23 percent or more by
                       weight of wool.

                                    Annex 300-B                             

                                      Appendix 1.1

                          List of Goods Covered by Annex 300-B

            The descriptions listed in this Appendix are provided for ease
            of reference only.  For legal purposes, coverage shall be
            determined according to the terms of the Harmonized System.

            HS No.     Description

            Chapter 30  Pharmaceutical Products

            3005 90    Wadding, gauze, bandages and the like

            Chapter 39  Plastics and articles thereof

            ex 3921 12 (Woven, knitted or non-woven fabric coated, covered
            or laminated with plastics)
            ex 3921 13
            ex 3921 90

            Chapter 42  Articles of leather; saddlery and harness; travel
            goods, handbags and similar containers

            ex 4202 12 (Luggage, handbags and flatgoods with an outer
            surface predominantly of textile materials)
            ex 4202 22
            ex 4202 32
            ex 4202 92

            Chapter 50  Silk

            5004 00    Silk yarn (other than yarn spun from silk waste)
                       not for retail sale
            5005 00    Yarn spun from silk waste, not for retail sale 
            5006 00    Silk yarn and yarn spun from silk waste, for retail
                       sale; silk-worm gut
            5007 10    Woven fabric of noil silk
            5007 20    Woven fabric of silk or silk waste, other than noil
                       silk, 85% or more of such fibers
            5007 90    Woven fabric of silk, nes

            Chapter 51  Wool, fine or coarse animal hair, horsehair yarn
            and fabric

            5105 10    Carded wool
            5105 21    Combed wool in fragments

                                 Annex 300-B                                

            5105 29    Wool tops and other combed wool, other than combed
                       wool in fragments
            5105 30    Fine animal hair, carded or combed
            5106 10    Yarn of carded wool,  85% wool, not for retail sale
            5106 20    Yarn of carded, wool, <85% wool, not for retail
                       sale
            5107 10    Yarn of combed wool,  85% wool, not for retail sale
            5107 20    Yarn of combed wool, <85% wool, not for retail sale
            5108 10    Yarn of carded fine animal hair, not for retail
                       sale
            5108 20    Yarn of combed fine animal hair, not for retail
                       sale
            5109 10    Yarn of wool or of fine animal hair,  85% wool and
                       fine animal hair, for retail sale
            5109 90    Yarn of wool/of fine animal hair, <85% wool and
                       fine animal hair, for retail sale
            5110 00    Yarn of coarse animal hair or of horsehair
            5111 11    Woven fabric of carded wool or fine animal hair,
                        85% wool and fine animal hair,   300 g/m2
            5111 19    Woven fabric of carded wool or fine animal hair,
                        85% wool or fine animal hair, >300 g/m2
            5111 20    Woven fabric of carded wool or fine animal hair,
                       <85% wool or fine animal hair, with man-made fibers
            5111 30    Woven fabric of carded wool or fine animal hair,
                       <85% wool or fine animal hair, with man-made fibers
            5111 90    Woven fabric of carded wool or fine animal hair,
                       <85% wool or fine animal hair, nes
            5112 11    Woven fabric of combed wool or fine animal hair,
                        85% wool or fine animal hair,  200 g/m2
            5112 19    Woven fabric of combed wool or fine animal hair,
                        85% wool or fine animal hair, >200 g/m2
            5112 20    Woven fabric of combed wool or fine animal hair,
                       <85% wool or fine animal hair, with man-made
                       filament
            5112 30    Woven fabric of combed wool or fine animal hair,
                       <85% wool or fine animal hair, with man-made fibers
            5112 90    Woven fabric of combed wool or fine animal hair,
                       <85% wool or fine animal hair, nes
            5113 00    Woven fabric of coarse animal hair or of horsehair

            Chapter 52  Cotton

            5203 00    Cotton, carded or combed
            5204 11    Cotton sewing thread  85% cotton, not for retail
                       sale
            5204 19    Cotton sewing thread, <85% cotton, not for retail
                       sale
            5204 20    Cotton sewing thread, for retail sale

                              Annex 300-B                                   

            HS No.     Description            HS No.     Description

            5205 11    Cotton yarn,  85% cotton, single, uncombed,  714.29
                       decitex, not for retail sale
            5205 12    Cotton yarn,  85% cotton, single, uncombed, 714.29
                       >decitex 232.56, not for retail sale
            5205 13    Cotton yarn,  85% cotton, single, uncombed,
                       232.56>decitex 192.31, not for retail sale
            5205 14    Cotton yarn,  85% cotton, single, uncombed, 192.31
                       >decitex 125, not for retail sale
            5205 15    Cotton yarn,  85% cotton, single, uncombed, <125
                       decitex, not for retail sale
            5205 21    Cotton yarn,  85% cotton, single, combed,  714.29,
                       not for retail sale
            5205 22    Cotton yarn,  85% cotton, single, combed, 714.29
                       >decitex 232.56, not for retail sale
            5205 23    Cotton yarn,  85% cotton, single, combed, 232.56
                       >decitex 192.31, not for retail sale
            5205 24    Cotton yarn,  85% cotton, single, combed, 192.31
                       >decitex 125, not for retail sale
            5205 25    Cotton yarn,  85% cotton, single, combed, <125
                       decitex, not for retail sale
            5205 31    Cotton yarn,  85% cotton, multiple, uncombed,
                        714.29 decitex, not for retail sale, nes
            5205 32    Cotton yarn,  85% cotton, multiple, uncombed,
                       714.29 >decitex 232.56, not for retail sale, nes
            5205 33    Cotton yarn,  85% cotton, multiple, uncombed,
                       232.56 >decitex 192.31, not for retail sale, nes
            5205 34    Cotton yarn,  85% cotton, multiple, uncombed,
                       192.31 >decitex 125, not for retail sale, nes
            5205 35    Cotton yarn,  85% cotton, multiple, uncombed, <125
                       decitex, not for retail sale, nes
            5205 41    Cotton yarn,  85% cotton, multiple, combed,  714.29
                       decitex, not for retail sale, nes
            5205 42    Cotton yarn,  85% cotton, multiple, combed, 714.29
                       >decitex 232.56, not for retail sale, nes
            5205 43    Cotton yarn,  85% cotton, multiple, combed, 232.56
                       >decitex 192.31, not for retail sale, nes
            5205 44    Cotton yarn,  85% cotton, multiple, combed, 192.31
                       >decitex 125, not for retail sale, nes
            5205 45    Cotton yarn,  85% cotton, multiple, combed, <125
                       decitex, not for retail sale, nes
            5206 11    Cotton yarn, <85% cotton, single, uncombed,
                        714.29, not for retail sale
            5206 12    Cotton yarn, <85% cotton, single, uncombed, 714.29
                       >decitex 232.56, not for retail sale
            5206 13    Cotton yarn, <85% cotton, single, uncombed, 232.56
                       >decitex 192.31, not for retail sale

                                       Annex 300-B                          

            HS No.     Description            HS No.     Description

            5206 14    Cotton yarn, <85% cotton, single, uncombed, 192.31
                       >decitex 125, not for retail sale
            5206 15    Cotton yarn, <85% cotton, single, uncombed, <125
                       decitex, not for retail sale
            5206 21    Cotton yarn, <85% cotton, single, combed,  714.29
                       decitex, not for retail sale
            5206 22    Cotton yarn, <85% cotton, single, combed, 714.29
                       >decitex 232.56, not for retail sale
            5206 23    Cotton yarn, <85% cotton, single, combed, 232.56
                       >decitex 192.31, not for retail sale
            5206 24    Cotton yarn, <85% cotton, single, combed, 192.31
                       >decitex 125, not for retail sale
            5206 25    Cotton yarn, <85% cotton, single, combed, <125
                       decitex, not for retail sale
            5206 31    Cotton yarn, <85% cotton, multiple, uncombed,
                        714.29, not for retail sale, nes
            5206 32    Cotton yarn, <85% cotton, multiple, uncombed,
                       714.29 >decitex 232.56, not for retail sale, nes
            5206 33    Cotton yarn, <85% cotton, multiple, uncombed,
                       232.56 >decitex 192.31, not for retail sale, nes
            5206 34    Cotton yarn, <85% cotton, multiple, uncombed,
                       192.31 >decitex 125, not for retail sale, nes
            5206 35    Cotton yarn, <85% cotton, multiple, uncombed, <125
                       decitex, not for retail sale, nes
            5206 41    Cotton yarn, <85% cotton, multiple, combed,
                        714.29, not for retail sale, nes
            5206 42    Cotton yarn, <85% cotton, multiple, combed, 714.29
                       >decitex 232.56, not for retail sale, nes
            5206 43    Cotton yarn, <85% cotton, multiple, combed, 232.56
                       >decitex 192.31, not for retail sale, nes
            5206 44    Cotton yarn, <85% cotton, multiple, combed, 192.31
                       >decitex 125, not for retail sale, nes
            5206 45    Cotton yarn, <85% cotton, multiple, combed, <125
                       decitex, not for retail sale, nes
            5207 10    Cotton yarn (other than sewing thread) 85% cotton,
                       for retail sale
            5207 90    Cotton yarn (other than sewing thread) <85% cotton,
                       for retail sale
            5208 11    Plain weave cotton fabric,  85% cotton,  100g/m2,
                       unbleached
            5208 12    Plain weave cotton fabric,  85% cotton, >100g/m2,
                        200g/m2, unbleached
            5208 13    Twill weave cotton fabric,  85% cotton,  200g/m2,
                       unbleached
            5208 19    Woven fabric of cotton,  85% cotton,  200g/m2,
                       unbleached, nes

                                Annex 300-B                                 

            HS No.     Description            HS No.     Description

            5208 21    Plain weave cotton fabric,  85% cotton,  100g/m2,
                       bleached
            5208 22    Plain weave cotton fabric,  85% cotton, >100g/m2,
                        200g/m2, bleached
            5208 23    Twill weave cotton fabric,  85% cotton,  200g/m2,
                       bleached
            5208 29    Woven fabric of cotton,  85% cotton,  200g/m2,
                       bleached, nes
            5208 31    Plain weave cotton fabric,  85% cotton,  100g/m2,
                       dyed
            5208 32    Plain weave cotton fabric,  85% cotton, >100g/m2,  
                       200g/m2, dyed
            5208 33    Twill weave cotton fabric,  85% cotton,  200g/m2,
                       dyed
            5208 39    Woven fabric of cotton,  85% cotton,  200g/m2,
                       dyed, nes
            5208 41    Plain weave cotton fabric,  85% cotton,  100g/m2,
                       yarn dyed
            5208 42    Plain weave cotton fabric,  85% cotton, >100g/m2,
                        200 g/m2, yarn dyed
            5208 43    Twill weave cotton fabric,  85% cotton,  200g/m2,
                       yarn dyed
            5208 49    Woven fabric of cotton,  85% cotton,  200g/m2, yarn
                       dyed, nes
            5208 51    Plain weave cotton fabric,  85% cotton,  100g/m2,
                       printed
            5208 52    Plain weave cotton fabric,  85% cotton, >100g/m2,
                        200 g/m2, printed
            5208 53    Twill weave cotton fabric,  85% cotton,  200g/m2,
                       printed
            5208 59    Woven fabric of cotton,  85% cotton,   200g/m2,
                       printed, nes
            5209 11    Plain weave cotton fabric,  85% cotton, >200g/m2,
                       unbleached
            5209 12    Twill weave cotton fabric,  85% cotton, >200g/m2,
                       unbleached
            5209 19    Woven fabric of cotton,  85% cotton, >200g/m2,
                       unbleached, nes
            5209 21    Plain weave cotton fabric,  85% cotton, >200g/m2,
                       bleached
            5209 22    Twill weave cotton fabric,  85% cotton, >200g/m2,
                       bleached
            5209 29    Woven fabric of cotton,  85% cotton, >200g/m2,
                       bleached, nes
            5209 31    Plain weave cotton fabric,  85% cotton, >200g/m2,
                       dyed

                             Annex 300-B                                    

            HS No.     Description            HS No.     Description

            5209 32    Twill weave cotton fabric,  85% cotton, >200g/m2,
                       dyed
            5209 39    Woven fabric of cotton,  85% cotton, >200g/m2,
                       dyed, nes
            5209 41    Plain weave cotton fabric,  85% cotton, >200g/m2,
                       yarn dyed
            5209 42    Blue denim fabric of cotton,  85% cotton, >200g/m2
            5209 43    Twill weave cotton fabric, other than denim, 85%
                       cotton, >200g/m2, yarn dyed
            5209 49    Woven fabric of cotton,  85% cotton, >200g/m2, yarn
                       dyed, nes
            5209 51    Plain weave cotton fabric,  85% cotton, >200g/m2,
                       printed
            5209 52    Twill weave cotton fabric,  85% cotton, >200g/m2,
                       printed
            5209 59    Woven fabric of cotton,  85% cotton, >200g/m2,
                       printed, nes
            5210 11    Plain weave cotton fabric, <85% cotton, with man-
                       made fiber,  200g/m2, unbleached
            5210 12    Twill weave cotton fabric, <85% cotton, with man-
                       made fiber,  200g/m2, unbleached
            5210 19    Woven fabric of cotton, <85% cotton, with man-made
                       fiber,  200g/m2, unbleached, nes
            5210 21    Plain weave cotton fabric, <85% cotton, with man-
                       made fiber,  200g/m2, bleached
            5210 22    Twill weave cotton fabric, <85% cotton, with man-
                       made fiber,  200g/m2, bleached
            5210 29    Woven fabric of cotton, <85% cotton, with man-made
                       fiber,  200g/m2, bleached, nes
            5210 31    Plain weave cotton fabric, <85% cotton, with man-
                       made fiber,  200g/m2, dyed
            5210 32    Twill weave cotton fabric, <85% cotton, with man-
                       made fiber,  200g/m2, dyed
            5210 39    Woven fabric of cotton, <85% cotton, with man-made
                       fiber,  200g/m2, dyed, nes
            5210 41    Plain weave cotton fabric, <85% cotton, with man-
                       made fiber,  200g/m2, yarn dyed
            5210 42    Twill weave cotton fabric, <85% cotton, with man-
                       made fiber,  200g/m2, yarn dyed
            5210 49    Woven fabric of cotton, <85% cotton, with man-made
                       fiber,  200g/m2, yarn dyed, nes
            5210 51    Plain weave cotton fabric, <85% cotton, with man-
                       made fiber,  200g/m2, printed
            5210 52    Twill weave cotton fabric, <85% cotton, with man-
                       made fiber,  200g/m2, printed
            5210 59    Woven fabric of cotton, <85% cotton, with man-made
                       fiber,  200g/m2, printed, nes

                               Annex 300-B                                  

            HS No.     Description            HS No.     Description

            5211 11    Plain weave cotton fabric, <85% cotton, with man-
                       made fiber, >200g/m2, unbleached
            5211 12    Twill weave cotton fabric, <85% cotton, with man-
                       made fiber, >200g/m2, unbleached
            5211 19    Woven fabric of cotton, <85% cotton, with man-made
                       fiber, >200g/m2, unbleached, nes
            5211 21    Plain weave cotton fabric, <85% cotton, with man-
                       made fiber, >200g/m2, bleached
            5211 22    Twill weave cotton fabric, <85% cotton, with man-
                       made fiber, >200g/m2, bleached
            5211 29    Woven fabric of cotton, <85% cotton, with man-made
                       fiber, >200g/m2, bleached, nes
            5211 31    Plain weave cotton fabric, <85% cotton, with man-
                       made fiber, >200g/m2, dyed
            5211 32    Twill weave cotton fabric, <85% cotton, with man-
                       made fiber, >200g/m2, dyed
            5211 39    Woven fabric of cotton, <85% cotton, with man-made
                       fiber, >200g/m2, dyed, nes
            5211 41    Plain weave cotton fabric, <85% cotton, with man-
                       made fiber, >200g/m2, yarn dyed
            5211 42    Blue denim fabric of cotton, <85% cotton, with man-
                       made fiber, >200g/m2
            5211 43    Twill weave cotton fabric, other than denim, <85%
                       cotton, with man-made fiber, >200g/m2, yarn dyed
            5211 49    Woven fabric of cotton, <85% cotton, with man-made
                       fiber, >200g/m2, yarn dyed, nes
            5211 51    Plain weave cotton fabric, <85% cotton, with man-
                       made fiber, >200g/m2, printed
            5211 52    Twill weave cotton fabric, <85% cotton, with man-
                       made fiber, >200g/m2, printed
            5211 59    Woven fabric of cotton, <85% cotton, with man-made
                       fiber, >200g/m2, printed, nes
            5212 11    Woven fabric of cotton, weighing  200g/m2,
                       unbleached, nes
            5212 12    Woven fabric of cotton, weighing  200g/m2,
                       bleached, nes
            5212 13    Woven fabric of cotton, weighing  200g/m2, dyed,
                       nes
            5212 14    Woven fabric of cotton,  200g/m2, of yarns of
                       different colors, nes
            5212 15    Woven fabric of cotton, weighing  200g/m2, printed,
                       nes
            5212 21    Woven fabric of cotton, weighing >200g/m2,
                       unbleached, nes
            5212 22    Woven fabric of cotton, weighing >200g/m2,
                       bleached, nes

                           Annex 300-B                                      

            HS No.     Description            HS No.     Description

            5212 23    Woven fabric of cotton, weighing >200g/m2, dyed,
                       nes
            5212 24    Woven fabric of cotton, >200g/m2, of yarns of
                       different colors, nes
            5212 25    Woven fabric of cotton, weighing >200g/m2, printed,
                       nes 

            Chapter 53  Other vegetable textile fibers; paper yarn and
            woven fabric of paper yarn

            5306 10    Flax yarn, single
            5306 20    Flax yarn, multiple 
            5307 10    Yarn of jute or of other textile bast fibers,
                       single
            5307 20    Yarn of jute or other textile bast fibers, multiple

            5308 20    True hemp yarn
            5308 90    Yarn of other vegetable textile fibers
            5309 11    Woven fabric,  85% flax, unbleached or bleached
            5309 19    Woven fabric,  85% flax, other than unbleached or
                       bleached
            5309 21    Woven fabric of flax, <85% flax, unbleached or
                       bleached
            5309 29    Woven fabric of flax, <85% flax, other than
                       unbleached or bleached
            5310 10    Woven fabric of jute or of other textile bast
                       fibers, unbleached
            5310 90    Woven fabric of jute or of other textile bast
                       fibers, other than unbleached
            5311 00    Woven fabric of other vegetable textile fibers;
                       woven fabric of paper yarn 

            Chapter 54  Man-made filaments

            5401 10    Sewing thread of synthetic filaments
            5401 20    Sewing thread of artificial filaments
            5402 10    High tenacity yarn (other than sewing thread),
                       nylon or other polyamide fiber, not for retail sale
            5402 20    High tenacity yarn (other than sewing thread), of
                       polyester filaments, not for retail sale
            5402 31    Textured yarn nes, of nylon or other polyamide
                       fiber, 50 tex/single yarn, not for retail sale
            5402 32    Textured yarn nes, of nylon or other polyamide
                       fiber,>50 tex/single yarn, not for retail sale
            5402 33    Textured yarn nes, of polyester filaments, not for
                       retail sale

                              Annex 300-B                                   

            HS No.     Description            HS No.     Description

            5402 39    Textured yarn of synthetic filaments, nes, not for
                       retail sale
            5402 41    Yarn of nylon or other polyamide fiber, single,
                       untwisted, nes, not for retail sale
            5402 42    Yarn of polyester filaments, partially oriented,
                       single, nes, not for retail sale
            5402 43    Yarn of polyester filaments, single, untwisted,
                       nes, not for retail sale
            5402 49    Yarn of synthetic filaments, single, untwisted,
                       nes, not for retail sale
            5402 51    Yarn of nylon or other polyamide fiber, single, >50
                       turns per meter, not for retail sale
            5402 52    Yarn of polyester filaments, single, >50 turns per
                       meter, not for retail sale
            5402 59    Yarn of synthetic filaments, single, >50 turns per
                       meter, nes, not for retail sale
            5402 61    Yarn of nylon or other polyamide fiber, multiple,
                       nes, not for retail sale
            5402 62    Yarn of polyester filaments, multiple, nes, not for
                       retail sale
            5402 69    Yarn of synthetic filaments, multiple, nes, not for
                       retail sale
            5403 10    High tenacity yarn (other than sewing thread), of
                       viscose rayon filaments, not for retail sale
            5403 20    Textured yarn nes, of artificial filaments, not for
                       retail sale
            5403 31    Yarn of viscose rayon filaments, single, untwisted,
                       nes, not for retail sale
            5403 32    Yarn of viscose rayon filaments, single, >120 turns
                       per meter, nes, not for retail sale
            5403 33    Yarn of cellulose acetate filaments, single, nes,
                       not for retail sale
            5403 39    Yarn of artificial filaments, single, nes, not for
                       retail sale
            5403 41    Yarn of viscose rayon filaments, multiple, nes, not
                       for retail sale
            5403 42    Yarn of cellulose acetate filaments, multiple, nes,
                       not for retail sale
            5403 49    Yarn of artificial filaments, multiple, nes, not
                       for retail sale
            5404 10    Synthetic monofilament,  67 decitex, no cross
                       sectional dimension >1 mm
            5404 90    Strip and the like of synthetic textile material of
                       an apparent width   5mm
            5405 00    Artificial monofil, 67 decitex, cross sectional
                       dimension >1mm; strip of art. tex. mat. width  5mm


                               Annex 300-B                                  

            HS No.     Description            HS No.     Description

            5406 10    Yarn of synthetic filaments (other than sewing
                       thread), for retail sale
            5406 20    Yarn of artificial filaments (other than sewing
                       thread), for retail sale
            5407 10    Woven fabric of high tenacity filament yarn of
                       nylon or other polyamides, or polyester
            5407 20    Woven fabric obtained from strip or the like of
                       synthetic textile materials
            5407 30    Fabric specified in Note 9 Section XI (layers of
                       parallel synthetic textile yarn)
            5407 41    Woven fabric,  85% nylon or other polyamide
                       filaments, unbleached or bleached, nes
            5407 42    Woven fabric,  85% nylon or other polyamide
                       filaments, dyed, nes
            5407 43    Woven fabric,  85% nylon or other polyamide
                       filaments, yarn dyed, nes
            5407 44    Woven fabric,  85% nylon or other polyamide
                       filaments, printed, nes
            5407 51    Woven fabric,  85% textured polyester filaments,
                       unbleached or bleached, nes
            5407 52    Woven fabric,  85% textured polyester filaments,
                       dyed, nes
            5407 53    Woven fabric,  85% textured polyester filaments,
                       yarn dyed, nes
            5407 54    Woven fabric,  85% textured polyester filaments,
                       printed, nes
            5407 60    Woven fabric,  85% non-textured polyester
                       filaments, nes 
            5407 71    Woven fabric,  85% synthetic filaments, unbleached
                       or bleached, nes
            5407 72    Woven fabric,  85% synthetic filaments, dyed, nes
            5407 73    Woven fabric,  85% synthetic filaments, yarn dyed,
                       nes
            5407 74    Woven fabric,  85% synthetic filaments, printed,
                       nes
            5407 81    Woven fabric of synthetic filaments, <85% syn.
                       filaments, with cotton, unbl or bl, nes
            5407 82    Woven fabric of synthetic filaments, <85% with
                       cotton, dyed, nes
            5407 83    Woven fabric of synthetic filaments, <85% with
                       cotton, yarn dyed, nes
            5407 84    Woven fabric of synthetic filaments, <85% with
                       cotton, printed, nes
            5407 91    Woven fabric of synthetic filaments, unbleached or
                       bleached, nes
            5407 92    Woven fabric of synthetic filaments, dyed, nes
            5407 93    Woven fabric of synthetic filaments, yarn dyed, nes

                                  Annex 300-B                               

            HS No.     Description            HS No.     Description

            5407 94    Woven fabric of synthetic filaments, printed, nes
            5408 10    Woven fabric of high tenacity filament yarn of
                       viscose rayon
            5408 21    Woven fabric,  85% artificial filament or strip,
                       unbleached or bleached, nes
            5408 22    Woven fabric,  85% artificial filament or strip,
                       dyed, nes
            5408 23    Woven fabric,  85% artificial filament or strip,
                       yarn dyed, nes
            5408 24    Woven fabric,  85% artificial filament or strip,
                       printed, nes
            5408 31    Woven fabric of artificial filaments, unbleached or
                       bleached, nes
            5408 32    Woven fabric of artificial filaments, dyed, nes
            5408 33    Woven fabric of artificial filaments, yarn dyed,
                       nes
            5408 34    Woven fabric of artificial filaments, printed, nes 

            Chapter 55  Man-made staple fibers

            5501 10    Filament tow of nylon or other polyamides
            5501 20    Filament tow of polyesters
            5501 30    Filament tow of acrylic or modacrylic
            5501 90    Synthetic filament tow, nes
            5502 00    Artificial filament tow
            5503 10    Staple fibers of nylon or other polyamides, not
                       carded or combed 
            5503 20    Staple fibers of polyesters, not carded or combed 
            5503 30    Staple fibers of acrylic or modacrylic, not carded
                       or combed 
            5503 40    Staple fibers of polypropylene, not carded or
                       combed
            5503 90    Synthetic staple fibers, not carded or combed, nes
            5504 10    Staple fibers of viscose, not carded or combed
            5504 90    Artificial staple fibers, other than viscose, not
                       carded or combed
            5505 10    Waste of synthetic fibers
            5505 20    Waste of artificial fibers
            5506 10    Staple fibers of nylon or other polyamides, carded
                       or combed 
            5506 20    Staple fibers of polyesters, carded or combed
            5506 30    Staple fibers of acrylic or modacrylic, carded or
                       combed 
            5506 90    Synthetic staple fibers, carded or combed, nes
            5507 00    Artificial staple fibers, carded or combed
            5508 10    Sewing thread of synthetic staple fibers
            5508 20    Sewing thread of artificial staple fibers

                              Annex 300-B                                   

            HS No.     Description            HS No.     Description

            5509 11    Yarn,  85% nylon or other polyamide staple fibers,
                       single, not for retail sale
            5509 12    Yarn,  85% nylon or other polyamide staple fibers,
                       multiple, not for retail sale, nes
            5509 21    Yarn,  85% of polyester staple fibers, single, not
                       for retail sale
            5509 22    Yarn,  85% of polyester staple fibers, multiple,
                       not for retail sale, nes
            5509 31    Yarn,  85% of acrylic or modacrylic staple fibers,
                       single, not for retail sale
            5509 32    Yarn,  85% acrylic/modacrylic staple fibers,
                       multiple, not for retail sale, nes
            5509 41    Yarn,  85% of other synthetic staple fibers,
                       single, not for retail sale
            5509 42    Yarn,  85% of other synthetic staple fibers,
                       multiple, not for retail sale, nes
            5509 51    Yarn of polyester staple fibers mixed with
                       artificial staple fiber, not for retail sale, nes
            5509 52    Yarn of polyester staple fiber mixed with wool or
                       fine animal hair, not for retail sale, nes
            5509 53    Yarn of polyester staple fibers mixed with cotton,
                       not for retail sale, nes 
            5509 59    Yarn of polyester staple fibers, not for retail
                       sale, nes 
            5509 61    Yarn of acrylic staple fiber mixed with wool or
                       fine animal hair, not for retail sale, nes
            5509 62    Yarn of acrylic staple fibers mixed with cotton,
                       not for retail sale, nes
            5509 69    Yarn of acrylic staple fibers, not for retail sale,
                       nes
            5509 91    Yarn of other synthetic staple fibers mixed with
                       wool or fine animal hair, not for retail sale, nes
            5509 92    Yarn of other synthetic staple fibers mixed with
                       cotton, not for retail sale, nes
            5509 99    Yarn of other synthetic staple fibers, not for
                       retail sale, nes
            5510 11    Yarn,  85% of artificial staple fibers, single, not
                       for retail sale
            5510 12    Yarn,  85% of artificial staple fibers, multiple,
                       not for retail sale, nes
            5510 20    Yarn of artificial staple fiber mixed with
                       wool/fine animal hair, not for retail sale, nes
            5510 30    Yarn of artificial staple fibers mixed with cotton,
                       not for retail sale, nes
            5510 90    Yarn of artificial staple fibers, not for retail
                       sale, nes

                               Annex 300-B                                  

            HS No.     Description            HS No.     Description

            5511 10    Yarn,  85% of synthetic staple fibers, other than
                       sewing thread, for retail sale
            5511 20    Yarn, <85% of synthetic staple fibers, for retail
                       sale, nes
            5511 30    Yarn of artificial fibers (other than sewing
                       thread), for retail sale
            5512 11    Woven fabric,  85% of polyester staple fibers,
                       unbleached or bleached
            5512 19    Woven fabric,  85% of polyester staple fibers,
                       other than unbleached or bleached
            5512 21    Woven fabric,  85% of acrylic staple fibers,
                       unbleached or bleached
            5512 29    Woven fabric,  85% of acrylic staple fibers, other
                       than unbleached or bleached
            5512 91    Woven fabric,  85% of other synthetic staple
                       fibers, unbleached or bleached
            5512 99    Woven fabric,  85% of other synthetic staple
                       fibers, other than unbleached or bleached
            5513 11    Plain weave polyester fabric, <85% syn stple fiber,
                       with cot,  170g/m2, unbl or bl
            5513 12    Twill weave polyester staple fiber fabric, <85%
                       syn. staple fiber, with cotton,  170g/m2, unbl or
                       bl
            5513 13    Woven polyester fabric, <85% synthetic stple fiber,
                       with cotton,  170g/m2, unbl or bl, nes
            5513 19    Woven fabric of other synthetic staple fiber, <85%
                       syn. stpl fib, with cotton,  170g/m2, unbl or bl
            5513 21    Plain weave polyester staple fiber fabric,<85%
                       synthetic staple fiber, with cotton,  170g/m2, dyed
            5513 22    Twill weave polyester staple fiber fabric,<85%
                       synthetic staple fiber, with cotton,  170g/m2, dyed
            5513 23    Woven fabric of polyester staple fiber, <85% syn.
                       staple fiber, with cotton,  170g/m2, dyed, nes
            5513 29    Woven fabric of other synthetic staple fiber, <85%
                       syn. staple fiber, with cotton,  170g/m2, dyed
            5513 31    Plain weave polyester staple fiber fabric, <85%
                       syn. staple fiber, with cotton,  170g/m2, yarn dyed
            5513 32    Twill weave polyester staple fiber fabric, <85%
                       syn. staple fiber, with cotton,  170g/m2, yarn dyed
            5513 33    Woven fabric of polyester staple fiber, <85% syn.
                       staple fiber, with cotton,  170g/m2, dyed nes
            5513 39    Woven fabric of other synthetic staple fiber, <85%
                       syn. staple fiber, with cotton,  170g/m2, yarn dyed
            5513 41    Plain weave polyester staple fiber fabric, <85%
                       syn. stpl fiber, with cotton,  170g/m2, printed
            5513 42    Twill weave polyester staple fiber fabric, <85%
                       syn. staple fiber, with cotton, <=/170g/m2, printed

                                    Annex 300-B                             

            HS No.     Description            HS No.     Description

            5513 43    Woven fabric of polyester staple fiber, <85% syn
                       staple fiber, with cotton,  170g/m2, printed, nes
            5513 49    Woven fabric of other synthetic staple fiber, <85%
                       syn. staple fiber, with cotton,  170g/m2, printed
            5514 11    Plain weave polyester staple fiber fabric, <85%
                       syn. staple fiber, with cotton, >170g/m2, unbl or
                       bl 
            5514 12    Twill weave polyester staple fiber fabric, <85%
                       syn. staple fiber, with cotton, >170g/m2, unbl or
                       bl
            5514 13    Woven fabric of polyester staple fiber, <85% syn.
                       stpl fiber, with cotton, >170g/m2, unbl or bl, nes
            5514 19    Woven fabric of other synthetic staple fiber, <85%
                       syn stpl. fib, with cotton, >170g/m2, unbl or bl
            5514 21    Plain weave polyester staple fiber fabric, <85% syn
                       staple fiber, with cotton, >170g/m2, dyed
            5514 22    Twill weave polyester staple fiber fabric, <85%
                       synthetic staple fiber, with cotton, >170g/m2, dyed
            5514 23    Woven fabric of polyester staple fiber, <85%
                       synthetic staple fiber, with cotton, >170g/m2, dyed
            5514 29    Woven fabric of other synthetic staple fiber, <85%
                       synthetic staple fiber, with cotton, >170g/m2, dyed
            5514 31    Plain weave polyester staple fiber fabric, <85%
                       syn. staple fiber, with cotton, >170g/m2, yarn dyed
            5514 32    Twill weave polyester staple fiber fabric, <85%
                       mixed with cotton, >170g/m2, yarn dyed
            5514 33    Woven fabric of polyester staple fiber, <85% syn.
                       staple fiber, with cotton, >170g/m2, yarn dyed nes
            5514 39    Woven fabric of other synthetic staple fiber, <85%
                       syn. stpl fiber, with cotton, >170g/m2, yarn dyed
            5514 41    Plain weave polyester staple fiber fabric, <85%
                       synthetic staple fiber, with cotton, >170g/m2,
                       printed
            5514 42    Twill weave polyester staple fiber fabric, <85%
                       synthetic staple fiber, with cotton, >170g/m2,
                       printed
            5514 43    Woven fabric of polyester staple fibers <85% syn.
                       staple fiber, with cotton, >170g/m2, printed, nes
            5514 49    Woven fabric of other synthetic staple fiber, <85%
                       syn. staple fiber, with cotton, >170g/m2, printed
            5515 11    Woven fabric of polyester staple fiber, with
                       viscose rayon staple fiber, nes
            5515 12    Woven fabric of polyester staple fiber, with man-
                       made filaments, nes
            5515 13    Woven fabric of polyester staple fiber, with wool
                       or fine animal hair, nes
            5515 19    Woven fabric of polyester staple fiber, nes

                                 Annex 300-B                                

            HS No.     Description            HS No.     Description

            5515 21    Woven fabric of acrylic staple fiber, with man-made
                       filaments, nes
            5515 22    Woven fabric of acrylic staple fiber, with wool or
                       fine animal hair, nes
            5515 29    Woven fabric of acrylic or modacrylic staple
                       fibers, nes
            5515 91    Woven fabric of other synthetic staple fiber, with
                       man-made filaments, nes
            5515 92    Woven fabric of other synthetic staple fiber, with
                       wool or fine animal hair, nes
            5515 99    Woven fabric of synthetic staple fibers, nes
            5516 11    Woven fabric,  85% artificial staple fiber,
                       unbleached or bleached
            5516 12    Woven fabric,  85% artificial staple fiber, dyed
            5516 13    Woven fabric,  85% artificial staple fiber, yarn
                       dyed
            5516 14    Woven fabric,  85% artificial staple fiber, printed
            5516 21    Woven fabric of artificial staple fiber, <85%
                       artificial staple fiber, with man-made fib, unbl or
                       bl
            5516 22    Woven fabric of artificial staple fiber, <85%
                       artificial staple fiber, with man-made fib, dyed
            5516 23    Woven fabric of artificial staple fiber, <85%
                       artificial staple fiber, with man-made fib, yarn
                       dyed
            5516 24    Woven fabric of artificial staple fiber, <85%
                       artificial staple fiber, with man-made fib, printed
            5516 31    Woven fabric of artificial staple fiber, <85% art
                       stpl fiber, with wool/fine animal hair, unbl or bl
            5516 32    Woven fabric of artificial staple fiber, <85% art
                       staple fiber, with wool/fine animal hair, dyed
            5516 33    Woven fabric of artificial staple fiber, <85% art
                       staple fiber, with wool/fine animal hair, yarn dyed
            5516 34    Woven fabric of artificial staple fiber, <85% art
                       staple fiber, with wool/fine animal hair, printed
            5516 41    Woven fabric of artificial staple fiber, <85%
                       artificial staple fiber, with cotton, unbl or bl
            5516 42    Woven fabric of artificial staple fiber, <85%
                       artificial staple fiber, with cotton, dyed
            5516 43    Woven fabric of artificial staple fiber, <85%
                       artificial staple fiber, with cotton, yarn dyed
            5516 44    Woven fabric of artificial staple fiber, <85%
                       artificial staple fiber, with cotton, printed
            5516 91    Woven fabric of artificial staple fiber, unbleached
                       or bleached, nes
            5516 92    Woven fabric of artificial staple fiber, dyed, nes

                                 Annex 300-B                                

            HS No.     Description            HS No.     Description

            5516 93    Woven fabric of artificial staple fiber, yarn dyed,
                       nes
            5516 94    Woven fabric of artificial staple fiber, printed,
                       nes 

            Chapter 56  Wadding, felt and nonwovens; special yarns, twine,
            cordage, ropes and cables and articles thereof

            5601 10    Sanitary articles of wadding of textile materials,
                       including sanitary towels, tampons, and diapers
            5601 21    Wadding of cotton and articles thereof, other than
                       sanitary articles
            5601 22    Wadding of man-made fibers and articles thereof,
                       other than sanitary articles
            5601 29    Wedge of other textile materials and articles
                       thereof, other than sanitary articles
            5601 30    Textile flock and dust and mill neps
            5602 10    Needleloom felt and stitch-bonded fiber fabric
            5602 21    Felt other than needleloom, of wool or fine animal
                       hair, not impregnated, coated, covered or laminated
            5602 29    Felt other than needleloom, of other textile
                       materials, not impregnated, coated, covered or
                       laminated
            5602 90    Felt of textile materials, nes
            5603 00    Nonwovens, whether or not impregnated, coated,
                       covered or laminated
            5604 10    Rubber thread and cord, textile covered
            5604 20    High tenacity yarn of polyester, nylon other
                       polyamide, viscose rayon, impregnated or coated
            5604 90    Textile yarn, strip, impregnated, coated, covered
                       or sheathed with rubber or plastics nes
            5605 00    Metalized yarn, being textile yarn combined with
                       metal thread, strip, or powder
            5606 00    Gimped yarn nes; chenille yarn; loop wale-yarn
            5607 10    Twine, cordage, ropes and cables, of jute or other
                       textile bast fibers
            5607 21    Binder or baler twine, of sisal or other textile
                       fibers of the genus Agave
            5607 29    Twine nes, cordage, ropes and cables, of sisal
                       textile fibers
            5607 30    Twine, cordage, ropes and cables, of abaca or other
                       hard (leaf) fibers
            5607 41    Binder or baler twine, of polyethylene or
                       polypropylene
            5607 49    Twine nes, cordage, ropes and cables, of
                       polyethylene or polypropylene

                                 Annex 300-B                                

            HS No.     Description            HS No.     Description

            5607 50    Twine, cordage, ropes and cables, of other
                       synthetic fibers
            5607 90    Twine, cordage, ropes and cables, of other
                       materials
            5608 11    Made up fishing nets, of man-made textile materials
            5608 19    Knotted netting of twine, cordage, or rope, and
                       other made up nets of man-made textile materials
            5608 90    Knotted netting of twine, cordage, or rope, nes,
                       and made up nets of other textile materials
            5609 00    Articles of yarn, strip, twine, cordage, rope and
                       cables, nes 

            Chapter 57  Carpets and other textile floor coverings

            5701 10    Carpets of wool or fine animal hair, knotted
            5701 90    Carpets of other textile materials, knotted
            5702 10    Kelem, Schumacks, Karamanie and similar textile
                       hand-woven rugs
            5702 20    Floor coverings of coconut fibers (coir)
            5702 31    Carpets of wool or fine animal hair, of woven pile
                       construction, not made up, nes
            5702 32    Carpets of man-made textile materials, of woven
                       pile construction, not made up, nes
            5702 39    Carpets of other textile materials, of woven pile
                       construction, not made up, nes
            5702 41    Carpets of wool or fine animal hair, of woven pile
                       construction, made up, nes
            5702 42    Carpets of man-made textile materials, of woven
                       pile construction, made up, nes
            5702 49    Carpets of other textile materials, of woven pile
                       construction, made up, nes
            5702 51    Carpets of wool or fine animal hair, woven, not
                       made up, nes
            5702 52    Carpets of man-made textile materials, woven, not
                       made up, nes
            5702 59    Carpets of other textile materials, woven, not made
                       up, nes
            5702 91    Carpets of wool or fine animal hair, woven, made
                       up, nes
            5702 92    Carpets of man-made textile materials, woven, made
                       up, nes
            5702 99    Carpets of other textile materials, woven, made up,
                       nes
            5703 10    Carpets of wool or fine animal hair, tufted
            5703 20    Carpets of nylon or other polyamide, tufted
            5703 30    Carpets of other man-made textile materials, tufted
            5703 90    Carpets of other textile materials, tufted

                                Annex 300-B                                 

            HS No.     Description            HS No.     Description

            5704 10    Tiles of felt of textile materials, having a
                       maximum surface area of 0.3 m2
            5704 90    Carpets of felt of textile materials, nes
            5705 00    Carpets and other textile floor coverings, nes

            Chapter 58  Special woven fabrics; tufted textile fabrics;
            lace; tapestries; trimmings; embroidery

            5801 10    Woven pile fabric of wool or fine animal hair,
                       other than terry and narrow fabric
            5801 21    Woven uncut weft pile fabric of cotton, other than
                       terry and narrow fabric
            5801 22    Cut corduroy fabric of cotton, other than narrow
                       fabric
            5801 23    Woven weft pile fabric of cotton, nes
            5801 24    Woven warp pile fabric of cotton, epingle (uncut),
                       other than terry and narrow fabric
            5801 25    Woven warp pile fabric of cotton, cut, other than
                       terry and narrow fabric
            5801 26    Chenille fabric of cotton, other than narrow fabric
            5801 31    Woven uncut weft pile fabric of manmade fibers,
                       other than terry and narrow fabric
            5801 32    Cut corduroy fabric of man-made fibers, other than
                       narrow fabric
            5801 33    Woven weft pile fabric of man-made fibers, nes
            5801 34    Woven warp pile fabric of man-made fiber, epingle
                       (uncut),other than terry and narrow fabric
            5801 35    Woven warp pile fabric of man-made fiber, cut,
                       other than terry and narrow fabric
            5801 36    Chenille fabric of man-made fibers, other than
                       narrow fabric
            5801 90    Woven pile fabric and chenille fabric of other
                       textile materials, other than terry and narrow
                       fabric
            5802 11    Terry toweling and similar woven terry fabric of
                       cotton, other than narrow fabric, unbleached
            5802 19    Terry toweling and similar woven terry fabric of
                       cotton, other than unbleached or narrow fabric
            5802 20    Terry toweling and similar woven terry fabric of
                       other textile materials, other than narrow fabric
            5802 30    Tufted textile fabric, other than products of
                       heading No 57.03
            5803 10    Gauze of cotton, other than narrow fabric
            5803 90    Gauze of other textile material, other than narrow
                       fabric
            5804 10    Tulles and other net fabric, not including woven,
                       knitted or crocheted fabric

                                   Annex 300-B                              

            HS No.     Description            HS No.     Description

            5804 21    Mechanically made lace of man-made fiber, in the
                       piece, in strips or motifs
            5804 29    Mechanically made lace of other textile materials,
                       in the piece, in strips or in motifs
            5804 30    Hand-made lace, in the piece, in strips or in
                       motifs
            5805 00    Hand-woven tapestries and needle-worked tapestries,
                       whether or not made up
            5806 10    Narrow woven pile fabric and narrow chenille fabric
            5806 20    Narrow woven fabric, containing  5% elastomeric
                       yarn or rubber thread, nes
            5806 31    Narrow woven fabric of cotton, nes
            5806 32    Narrow woven fabric of man-made fibers, nes
            5806 39    Narrow woven fabric of other textile materials, nes
            5806 40    Fabric consisting of warp without weft, assembled
                       by means of an adhesive
            5807 10    Labels, badges and similar woven articles of
                       textile materials
            5807 90    Labels, badges and similar articles, not woven, of
                       textile materials, nes
            5808 10    Braids in the piece
            5808 90    Ornamental trimmings in the piece, other than knit;
                       tassels, pompons and similar articles
            5809 00    Woven fabric of metal thread or metalized yarn, for
                       apparel, and homefurnishings, nes
            5810 10    Embroidery without visible ground, in the piece, in
                       strips or in motifs
            5810 91    Embroidery of cotton, in the piece, in strips or in
                       motifs, nes
            5810 92    Embroidery of man-made fibers, in the piece, in
                       strips or in motifs, nes
            5810 99    Embroidery of other textile materials, in the
                       piece, in strips or motifs, nes
            5811 00    Quilted textile products in the piece

            Chapter 59  Impregnated, coated, covered, laminated textile
            fabric; textile articles suitable for industrial use

            5901 10    Textile fabric coated with gum, of a kind used for
                       outer covers of books or the like
            5901 90    Tracing cloth; prepared painting canvas; stiffened
                       textile fabric for hats, nes
            5902 10    Tire cord fabric of high tenacity nylon or other
                       polyamide yarn
            5902 20    Tire cord fabric of high tenacity polyester yarn
            5902 90    Tire cord fabric made of high tenacity viscose
                       rayon yarn

                                    Annex 300-B                             

            HS No.     Description            HS No.     Description

            5903 10    Textile fabric impregnated, coated, covered, or
                       laminated with polyvinyl chloride, nes
            5903 20    Textile fabric impregnated, coated, covered, or
                       laminated with polyurethane, nes
            5903 90    Textile fabric impregnated, coated, covered, or
                       laminated with plastics, nes
            5904 10    Linoleum, whether or not cut to shape
            5904 91    Floor coverings, other than linoleum, with a base
                       of needleloom felt or nonwovens
            5904 92    Floor coverings, other than linoleum, with other
                       textile base
            5905 00    Textile wall coverings
            5906 10    Rubberized textile adhesive tape of a width not
                       exceeding 20 cm
            5906 91    Rubberized textile knitted or crocheted fabric, nes
            5906 99    Rubberized textile fabric, nes
            5907 00    Textile fabric impregnated, coated, covered, nes;
                       painted canvas for theater use, backdrops, etc.
            5908 00    Textile wicks for lamps, stoves, candles or the
                       like; gas mantles and knitted gas mantle fabric
            5909 00    Textile hosepiping and similar textile tubing
            5910 00    Transmission or conveyor belts or belting of
                       textile material whether or not reinforced
            5911 10    Felt and felt-lined woven fabric combined with
                       rubber, leather, or other material, for technical
                       uses
            5911 20    Textile bolting cloth, whether or not made up
            5911 31    Textile fabric, endless or linked, for paper-making
                       or similar machines, weighing <650 g/m2
            5911 32    Textile fabric, endless or linked, for paper-making
                       or similar machines, weighing  650 g/m2
            5911 40    Textile straining cloth used in oil presses or the
                       like, including of human hair
            5911 90    Textile products and articles for technical uses,
                       nes 

            Chapter 60  Knitted or crocheted fabrics

            6001 10    Long pile knitted or crocheted textile fabric
            6001 21    Looped pile knitted or crocheted fabric, of cotton
            6001 22    Looped pile knitted or crocheted fabric, of man-
                       made fibers
            6001 29    Looped pile knitted or crocheted fabric, of other
                       textile materials
            6001 91    Pile knitted or crocheted fabric, of cotton, nes
            6001 92    Pile knitted or crocheted fabric, of man-made
                       fiber, nes

                             Annex 300-B                                    

            HS No.     Description            HS No.     Description

            6001 99    Pile knitted or crocheted fabric, of other textile
                       materials, nes
            6002 10    Knitted or crocheted textile fabric, w 30 cm, 5% of
                       elastomeric yarn or rubber thread, nes
            6002 20    Knitted or crocheted textile fabric, width not
                       exceeding 30 cm, nes
            6002 30    Knitted or crocheted textile fabric, width > 30 cm,
                        5% of elastomeric yarn or rubber thread, nes
            6002 41    Warp knitted fabric, of wool or fine animal hair,
                       nes
            6002 42    Warp knitted fabric, of cotton, nes
            6002 43    Warp knitted fabric, of man-made fibers, nes
            6002 49    Warp knitted fabric, of other materials, nes
            6002 91    Knitted or crocheted fabric, of wool or of fine
                       animal hair, nes
            6002 92    Knitted or crocheted fabric, of cotton, nes
            6002 93    Knitted or crocheted fabric, of manmade fibers, nes
            6002 99    Knitted or crocheted fabric, of other materials,
                       nes 

            Chapter 61  Articles of apparel and clothing accessories,
            knitted or crocheted

            6101 10    Men's or boys' overcoats, anoraks, and sim
                       articles, of wool or fine animal hair, knitted or
                       crocheted
            6101 20    Men's or boys' overcoats, anoraks, and similar
                       articles, of cotton, knitted or crocheted
            6101 30    Men's or boys' overcoats, anoraks, and similar
                       articles, of man-made fibers, knitted or crocheted
            6101 90    Men's or boys' overcoats, anoraks, and sim
                       articles, of other textile materials, knitted or
                       crocheted
            6102 10    Women's or girls' overcoats, anoraks and sim art,
                       of wool or fine animal hair, knitted or crocheted
            6102 20    Women's or girls' overcoats, anoraks and similar
                       articles, of cotton, knitted or crocheted
            6102 30    Women's or girls' overcoats, anoraks and similar
                       articles, of man-made fibers, knitted or crocheted
            6102 90    Women's or girls' overcoats, anoraks and sim art,
                       of other textile materials, knitted or crocheted
            6103 11    Men's or boys' suits, of wool or fine animal hair,
                       knitted or crocheted
            6103 12    Men's or boys' suits, of synthetic fibers, knitted
                       or crocheted
            6103 19    Men's or boys' suits, of other textile materials,
                       knitted or crocheted

                                 Annex 300-B                                

            HS No.     Description            HS No.     Description

            6103 21    Men's or boys' ensembles, of wool or fine animal
                       hair, knitted or crocheted
            6103 22    Men's or boys' ensembles, of cotton, knitted or
                       crocheted
            6103 23    Men's or boys' ensembles, of synthetic fibers,
                       knitted or crocheted
            6103 29    Men's or boys' ensembles, of other textile
                       materials, knitted or crocheted
            6103 31    Men's or boys' jackets and blazers, of wool or fine
                       animal hair, knitted or crocheted
            6103 32    Men's or boys' jackets and blazers, of cotton,
                       knitted or crocheted
            6103 33    Men's or boys' jackets and blazers, of synthetic
                       fibers, knitted or crocheted
            6103 39    Men's or boys' jackets and blazers, of other
                       textile materials, knitted or crocheted
            6103 41    Men's or boys' trousers and shorts, of wool or fine
                       animal hair, knitted or crocheted
            6103 42    Men's or boys' trousers and shorts, of cotton,
                       knitted or crocheted
            6103 43    Men's or boys' trousers and shorts, of synthetic
                       fibers, knitted or crocheted
            6103 49    Men's or boys' trousers and shorts, of other
                       textile materials, knitted or crocheted
            6104 11    Women's or girls' suits, of wool or fine animal
                       hair, knitted or crocheted
            6104 12    Women's or girls' suits, of cotton, knitted or
                       crocheted
            6104 13    Women's or girls' suits, of synthetic fibers,
                       knitted or crocheted
            6104 19    Women's or girls' suits, of other textile
                       materials, knitted or crocheted
            6104 21    Women's or girls' ensembles, of wool or fine animal
                       hair, knitted or crocheted
            6104 22    Women's or girls' ensembles, of cotton, knitted or
                       crocheted
            6104 23    Women's or girls' ensembles, of synthetic fibers,
                       knitted or crocheted
            6104 29    Women's or girls' ensembles, of other textile
                       materials, knitted or crocheted
            6104 31    Women's or girls' jackets, of wool or fine animal
                       hair, knitted or crocheted
            6104 32    Women's or girls' jackets, of cotton, knitted or
                       crocheted
            6104 33    Women's or girls' jackets, of synthetic fibers,
                       knitted or crocheted

                                  Annex 300-B                               

            HS No.     Description            HS No.     Description

            6104 39    Women's or girls' jackets, of other textile
                       materials, knitted or crocheted
            6104 41    Women's or girls' dresses, of wool or fine animal
                       hair, knitted or crocheted
            6104 42    Women's or girls' dresses, of cotton, knitted or
                       crocheted
            6104 43    Women's or girls' dresses, of synthetic fibers,
                       knitted or crocheted
            6104 44    Women's or girls' dresses, of artificial fibers,
                       knitted or crocheted
            6104 49    Women's or girls' dresses, of other textile
                       materials, knitted or crocheted
            6104 51    Women's or girls' skirts, of wool or fine animal
                       hair, knitted or crocheted
            6104 52    Women's or girls' skirts, of cotton, knitted or
                       crocheted
            6104 53    Women's or girls' skirts, of synthetic fibers,
                       knitted or crocheted
            6104 59    Women's or girls' skirts, of other textile
                       materials, knitted or crocheted
            6104 61    Women's or girls' trousers and shorts, of wool or
                       fine animal hair, knitted or crocheted
            6104 62    Women's or girls' trousers and shorts, of cotton,
                       knitted or crocheted
            6104 63    Women's or girls' trousers and shorts, of synthetic
                       fibers, knitted or crocheted
            6104 69    Women's or girls' trousers and shorts, of other
                       textile materials, knitted or crocheted
            6105 10    Men's or boys' shirts, of cotton, knitted or
                       crocheted
            6105 20    Men's or boys' shirts, of man-made fibers, knitted
                       or crocheted
            6105 90    Men's or boys' shirts, of other textile materials,
                       knitted or crocheted
            6106 10    Women's or girls' blouses and shirts, of cotton,
                       knitted or crocheted
            6106 20    Women's or girls' blouses and shirts, of man-made
                       fibers, knitted or crocheted
            6106 90    Women's or girls' blouses and shirts, of other
                       materials, knitted or crocheted
            6107 11    Men's or boys' underpants and briefs, of cotton,
                       knitted or crocheted
            6107 12    Men's or boys' underpants and briefs, of man-made
                       fibers, knitted or crocheted
            6107 19    Men's or boys' underpants and briefs, of other
                       textile materials, knitted or crocheted

                         Annex 300-B                                        

            HS No.     Description            HS No.     Description

            6107 21    Men's or boys' nightshirts and pajamas, of cotton,
                       knitted or crocheted
            6107 22    Men's or boys' nightshirts and pajamas, of man-made
                       fibers, knitted or crocheted
            6107 29    Men's or boys' nightshirts and pajamas, of other
                       textile materials, knitted or crocheted
            6107 91    Men's or boys' underpants, briefs, robes, and
                       similar articles of cotton, knitted or crocheted
            6107 92    Men's or boys' underpants, briefs, robes, and sim
                       articles of man-made fibers, knitted or crocheted
            6107 99    Men's or boys' underwear, briefs, robes, and sim
                       art of other textile materials, knitted or
                       crocheted
            6108 11    Women's or girls' slips and petticoats, of man-made
                       fibers, knitted or crocheted
            6108 19    Women's or girls' slips and petticoats, of other
                       textile materials, knitted or crocheted
            6108 21    Women's or girls' briefs and panties, of cotton,
                       knitted or crocheted
            6108 22    Women's or girls' briefs and panties, of man-made
                       fibers, knitted or crocheted
            6108 29    Women's or girls' briefs and panties, of other
                       textile materials, knitted or crocheted
            6108 31    Women's or girls' nightdresses and pajamas, of
                       cotton, knitted or crocheted
            6108 32    Women's or girls' nightdresses and pajamas, of man-
                       made fibers, knitted or crocheted
            6108 39    Women's or girls' nightdresses and pajamas, of
                       other textile materials, knitted or crocheted
            6108 91    Women's or girls' robes, dressing gowns, and
                       similar articles of cotton, nes, knitted or
                       crocheted
            6108 92    Women's or girls' robes, dressing gowns, and sim
                       art of man-made fibers, nes, knitted or crocheted
            6108 99    Women's or girls' robes, dressing gowns, and sim
                       art of other tex materials, nes, knitted or
                       crocheted
            6109 10    T-shirts, singlets, tank tops, and similar
                       garments, of cotton, knitted or crocheted
            6109 90    T-shirts, singlets, tank tops, and similar
                       garments, of other textile materials, knitted or
                       crocheted
            6110 10    Sweaters, pullovers, sweatshirts, and sim articles
                       of wool or fine animal hair, knitted or crocheted
            6110 20    Sweaters, pullovers, sweatshirts, and similar
                       articles of cotton, knitted or crocheted

                                  Annex 300-B                               

            HS No.     Description            HS No.     Description

            6110 30    Sweaters, pullovers, sweatshirts, and similar
                       articles of man-made fibers, knitted or crocheted
            6110 90    Sweaters, pullovers, sweatshirts, and sim articles
                       of other textile materials, knitted or crocheted
            6111 10    Babies' garments and clothing accessories of wool
                       or fine animal hair, knitted or crocheted
            6111 20    Babies' garments and clothing accessories of
                       cotton, knitted or crocheted
            6111 30    Babies' garments and clothing accessories of
                       synthetic fibers, knitted or crocheted
            6111 90    Babies' garments and clothing accessories of other
                       textile materials, knitted or crocheted
            6112 11    Track suits, of cotton, knitted or crocheted
            6112 12    Track suits, of synthetic fibers, knitted or
                       crocheted
            6112 19    Track suits, of other textile materials, knitted or
                       crocheted
            6112 20    Ski suits, of textile materials, knitted or
                       crocheted
            6112 31    Men's or boys' swimwear, of synthetic fibers,
                       knitted or crocheted
            6112 39    Men's or boys' swimwear, of other textile
                       materials, knitted or crocheted
            6112 41    Women's or girls' swimwear, of synthetic fibers,
                       knitted or crocheted
            6112 49    Women's or girls' swimwear, of other textile
                       materials, knitted or crocheted
            6113 00    Garments made up of impregnated, coated, covered or
                       laminated textile knitted or crocheted fabric
            6114 10    Garments of wool or fine animal hair, knitted or
                       crocheted, nes
            6114 20    Garments of cotton, knitted or crocheted, nes
            6114 30    Garments of man-made fibers, knitted or crocheted,
                       nes
            6114 90    Garments of other textile materials, knitted or
                       crocheted, nes
            6115 11    Panty hose and tights, of synthetic fiber yarn, <67
                       decitex/single yarn, knitted or crocheted
            6115 12    Panty hose and tights, of synthetic fiber yarn,  67
                       decitex/single yarn, knitted or crocheted
            6115 19    Panty hose and tights, of other textile materials,
                       knitted or crocheted
            6115 20    Women full or knee length hosiery, of textile yarn,
                       <67 decitex/single yarn, knitted or crocheted
            6115 91    Hosiery nes, of wool or fine animal hair, knitted
                       or crocheted
            6115 92    Hosiery nes, of cotton, knitted or crocheted

                             Annex 300-B                                    

            HS No.     Description            HS No.     Description

            6115 93    Hosiery nes, of synthetic fibers, knitted or
                       crocheted
            6115 99    Hosiery nes, of other textile materials, knitted or
                       crocheted
            6116 10    Gloves or mittens, impregnated, coated or covered
                       with plastics or rubber, knitted or crocheted
            6116 91    Gloves or mittens, nes, of wool or fine animal
                       hair, knitted or crocheted
            6116 92    Gloves or mittens, nes, of cotton, knitted or
                       crocheted
            6116 93    Gloves or mittens, nes, of synthetic fibers,
                       knitted or crocheted
            6116 99    Gloves or mittens, nes, of other textile materials,
                       knitted or crocheted
            6117 10    Shawls, scarves, veils and the like, of textile
                       materials, knitted or crocheted
            6117 20    Ties, bow ties and cravats, of textile materials,
                       knitted or crocheted
            6117 80    Clothing accessories nes, of textile materials,
                       knitted or crocheted
            6117 90    Parts of garments or clothing accessories, of
                       textile materials, knitted or crocheted 

            Chapter 62  Articles of apparel and clothing accessories, not
            knitted or crocheted

            6201 11    Men's or boys' overcoats, and similar articles of
                       wool or fine animal hair, not knit
            6201 12    Men's or boys' overcoats, and similar articles of
                       cotton, not knitted or crocheted
            6201 13    Men's or boys' overcoats, and similar articles of
                       man-made fibers, not knitted or crocheted
            6201 19    Men's or boys' overcoats, and similar articles of
                       other textile materials, not knitted or crocheted
            6201 91    Men's or boys' anoraks and similar articles, of
                       wool or fine animal hair, not knitted or crocheted
            6201 92    Men's or boys' anoraks and similar articles, of
                       cotton, not knitted or crocheted
            6201 93    Men's or boys' anoraks and similar articles, of
                       man-made fibers, not knitted or crocheted
            6201 99    Men's or boys' anoraks and similar articles, of
                       other textile materials, not knitted or crocheted
            6202 11    Women's or girls' overcoats and similar articles of
                       wool or fine animal hair not knit
            6202 12    Women's or girls' overcoats and similar articles of
                       cotton, not knitted or crocheted

                                   Annex 300-B                              

            HS No.     Description            HS No.     Description

            6202 13    Women's or girls' overcoats and similar articles of
                       man-made fibers, not knitted or crocheted
            6202 19    Women's or girls' overcoats and similar articles of
                       other textile mat, not knit
            6202 91    Women's or girls' anoraks and similar article of
                       wool or fine animal hair, not knit
            6202 92    Women's or girls' anoraks and similar article of
                       cotton, not knitted or crocheted
            6202 93    Women's or girls' anoraks and similar article of
                       man-made fibers, not knitted or crocheted
            6202 99    Women's or girls' anoraks and similar article of
                       other textile materials, not knit
            6203 11    Men's or boys' suits, of wool or fine animal hair,
                       not knitted or crocheted
            6203 12    Men's or boys' suits, of synthetic fibers, not
                       knitted or crocheted
            6203 19    Men's or boys' suits, of other textile materials,
                       not knitted or crocheted
            6203 21    Men's or boys' ensembles, of wool or fine animal
                       hair, not knitted or crocheted
            6203 22    Men's or boys' ensembles, of cotton, not knitted or
                       crocheted
            6203 23    Men's or boys' ensembles, of synthetic fibers, not
                       knitted or crocheted
            6203 29    Men's or boys' ensembles, of other textile
                       materials, not knitted or crocheted
            6203 31    Men's or boys' jackets and blazers, of wool or fine
                       animal hair, not knitted or crocheted
            6203 32    Men's or boys' jackets and blazers, of cotton, not
                       knitted or crocheted
            6203 33    Men's or boys' jackets and blazers, of synthetic
                       fibers, not knitted or crocheted
            6203 39    Men's or boys' jackets and blazers, of other
                       textile materials, not knitted or crocheted
            6203 41    Men's or boys' trousers and shorts, of wool or fine
                       animal hair, not knitted or crocheted
            6203 42    Men's or boys' trousers and shorts, of cotton, not
                       knitted or crocheted
            6203 43    Men's or boys' trousers and shorts, of synthetic
                       fibers, not knitted or crocheted
            6203 49    Men's or boys' trousers and shorts, of other
                       textile materials, not knitted or crocheted
            6204 11    Women's or girls' suits, of wool or fine animal
                       hair, not knitted or crocheted
            6204 12    Women's or girls' suits, of cotton, not knitted or
                       crocheted

                              Annex 300-B                                   

            HS No.     Description            HS No.     Description

            6204 13    Women's or girls' suits, of synthetic fibers, not
                       knitted or crocheted
            6204 19    Women's or girls' suits, of other textile
                       materials, not knitted or crocheted
            6204 21    Women's or girls' ensembles, of wool or fine animal
                       hair, not knitted or crocheted
            6204 22    Women's or girls' ensembles, of cotton, not knitted
                       or crocheted
            6204 23    Women's or girls' ensembles, of synthetic fibers,
                       not knitted or crocheted
            6204 29    Women's or girls' ensembles, of other textile
                       materials, not knitted or crocheted
            6204 31    Women's or girls' jackets, of wool or fine animal
                       hair, not knitted or crocheted
            6204 32    Women's or girls' jackets, of cotton, not knitted
                       or crocheted
            6204 33    Women's or girls' jackets, of synthetic fibers, not
                       knitted or crocheted
            6204 39    Women's or girls' jackets, of other textile
                       materials, not knitted or crocheted
            6204 41    Women's or girls' dresses, of wool or fine animal
                       hair, not knitted or crocheted
            6204 42    Women's or girls' dresses, of cotton, not knitted
                       or crocheted
            6204 43    Women's or girls' dresses, of synthetic fibers, not
                       knitted or crocheted
            6204 44    Women's or girls' dresses, of artificial fibers,
                       not knitted or crocheted
            6204 49    Women's or girls' dresses, of other textile
                       materials, not knitted or crocheted
            6204 51    Women's or girls' skirts, of wool or fine animal
                       hair, not knitted or crocheted
            6204 52    Women's or girls' skirts, of cotton, not knitted or
                       crocheted
            6204 53    Women's or girls' skirts, of synthetic fibers, not
                       knitted or crocheted
            6204 59    Women's or girls' skirts, of other textile
                       materials, not knitted or crocheted
            6204 61    Women's or girls' trousers and shorts, of wool or
                       fine animal hair, not knitted or crocheted
            6204 62    Women's or girls' trousers and shorts, of cotton,
                       not knitted or crocheted
            6204 63    Women's or girls' trousers and shorts, of synthetic
                       fibers, not knitted or crocheted
            6204 69    Women's or girls' trousers and shorts, of other
                       textile materials, not knitted or crocheted

                             Annex 300-B                                    

            HS No.     Description            HS No.     Description

            6205 10    Men's or boys' shirts, of wool or fine animal hair,
                       not knitted or crocheted
            6205 20    Men's or boys' shirts, of cotton, not knitted or
                       crocheted
            6205 30    Men's or boys' shirts, of man-made fibers, not
                       knitted or crocheted
            6205 90    Men's or boys' shirts, of other textile materials,
                       not knitted or crocheted
            6206 10    Women's or girls' blouses and shirts, of silk or
                       silk waste, not knitted or crocheted
            6206 20    Women's or girls' blouses and shirts, of wool or
                       fine animal hair, not knitted or crocheted
            6206 30    Women's or girls' blouses and shirts, of cotton,
                       not knitted or crocheted
            6206 40    Women's or girls' blouses and shirts, of man-made
                       fibers, not knitted or crocheted
            6206 90    Women's or girls' blouses and shirts, of other
                       textile materials, not knitted or crocheted
            6207 11    Men's or boys' underpants and briefs, of cotton,
                       not knitted or crocheted
            6207 19    Men's or boys' underpants and briefs, of other
                       textile materials, not knitted or crocheted
            6207 21    Men's or boys' nightshirts and pajamas, of cotton,
                       not knitted or crocheted
            6207 22    Men's or boys' nightshirts and pajamas, of man-made
                       fibers, not knitted or crocheted
            6207 29    Men's or boys' nightshirts and pajamas, of other
                       textile materials, not knitted or crocheted
            6207 91    Men's or boys' robes, dressing gowns, and similar
                       articles of cotton, not knitted or crocheted
            6207 92    Men's or boys' robes, dressing gowns, and sim art
                       of man-made fibers, not knitted or crocheted
            6207 99    Men's or boys' robes, dressing gowns, and similar
                       articles of other textile materials, not knit
            6208 11    Women's or girls' slips and petticoats, of man-made
                       fibers, not knitted or crocheted
            6208 19    Women's or girls' slips and petticoats, of other
                       textile materials, not knitted or crocheted
            6208 21    Women's or girls' nightdresses and pajamas, of
                       cotton, not knitted or crocheted
            6208 22    Women's or girls' nightdresses and pajamas, of man-
                       made fibers, not knitted or crocheted
            6208 29    Women's or girls' nightdresses and pajamas, of
                       other textile materials, not knitted or crocheted
            6208 91    Women's or girls' panties, robes, and similar
                       articles of cotton, not knitted or crocheted

                                 Annex 300-B                                

            HS No.     Description            HS No.     Description

            6208 92    Women's or girls' panties, robes, and similar
                       articles of man-made fibers, not knitted or
                       crocheted
            6208 99    Women's or girls' panties, robes, and sim art of
                       other textile materials, not knitted or crocheted
            6209 10    Babies' garments and clothing accessories of wool
                       or fine animal hair, not knitted or crocheted
            6209 20    Babies' garments and clothing accessories of
                       cotton, not knitted or crocheted
            6209 30    Babies' garments and clothing accessories of
                       synthetic fibers, not knitted or crocheted
            6209 90    Babies' garments and clothing accessories of other
                       textile materials, not knitted or crocheted
            6210 10    Garments made up of textile felts and of nonwoven
                       textile fabric
            6210 20    Men's or boys' overcoats and similar articles of
                       impreg, coated, covered etc, textile fabric
            6210 30    Women's or girls' overcoats and sim art, of
                       impregnated, coated, covered, or laminated woven
                       fabric
            6210 40    Men's or boys' garments nes, made up of
                       impregnated, coated, covered, or laminated woven
                       fabric
            6210 50    Women's or girls' garments nes, of impregnated,
                       coated, covered, or laminated woven fabric
            6211 11    Men's or boys' swimwear, of textile materials not
                       knitted or crocheted
            6211 12    Women's or girls' swimwear, of textile materials,
                       not knitted or crocheted
            6211 20    Ski suits, of textile materials, not knitted or
                       crocheted
            6211 31    Men's or boys' garments nes, of wool or fine animal
                       hair, not knitted or crocheted
            6211 32    Men's or boys' garments nes, of cotton, not knitted
                       or crocheted
            6211 33    Men's or boys' garments nes, of man-made fibers,
                       not knitted or crocheted
            6211 39    Men's or boys' garments nes, of other textile
                       materials, not knitted or crocheted
            6211 41    Women's or girls' garments nes, of wool or fine
                       animal hair, not knitted or crocheted
            6211 42    Women's or girls' garments nes, of cotton, not
                       knitted or crocheted
            6211 43    Women's or girls' garments nes, of man-made fibers,
                       not knitted or crocheted
            6211 49    Women's or girls' garments nes, of other textile
                       materials, not knitted or crocheted

                                Annex 300-B                                 

            HS No.     Description            HS No.     Description

            6212 10    Brassieres and parts thereof, of textile materials,
                       whether or not knitted or crocheted
            6212 20    Girdles, panty girdles and parts thereof, of
                       textile materials, whether or not crocheted
            6212 30    Corselettes and parts thereof, of textile
                       materials, whether or not knitted or crocheted
            6212 90    Corsets, braces and sim articles and parts, of
                       textile materials, whether or not knitted or
                       crocheted
            6213 10    Handkerchiefs, of silk or silk waste, not knitted
                       or crocheted
            6213 20    Handkerchiefs, of cotton, not knitted or crocheted
            6213 90    Handkerchiefs, of other textile materials, not
                       knitted or crocheted
            6214 10    Shawls, scarves, veils and the like, of silk or
                       silk waste, not knitted or crocheted
            6214 20    Shawls, scarves, veils and the like, of wool or
                       fine animal hair, not knitted or crocheted
            6214 30    Shawls, scarves, veils and the like, of synthetic
                       fibers, not knitted or crocheted
            6214 40    Shawls, scarves, veils and the like, of artificial
                       fibers, not knitted or crocheted
            6214 90    Shawls, scarves, veils and the like, of other
                       textile materials, not knitted or crocheted
            6215 10    Ties, bow ties and cravats, of silk or silk waste,
                       not knitted or crocheted
            6215 20    Ties, bow ties and cravats, of man-made fibers, not
                       knitted or crocheted
            6215 90    Ties, bow ties and cravats, of other textile
                       materials, not knitted or crocheted
            6216 00    Gloves, mittens and mitts, of textile materials,
                       not knitted or crocheted
            6217 10    Clothing accessories of textile materials, not
                       knitted or crocheted, nes
            6217 90    Parts of garments or of clothing accessories of
                       textile materials, not knitted or crocheted, nes 

            Chapter 63  Other made up textile articles; needlecraft sets;
            worn clothing and worn textile articles; rags

            6301 10    Electric blankets, of textile materials
            6301 20    Blankets (other than electric) and traveling rugs,
                       of wool or fine animal hair
            6301 30    Blankets (other than electric) and traveling rugs,
                       of cotton
            6301 40    Blankets (other than electric) and traveling rugs,
                       of synthetic fibers

                                 Annex 300-B                                

            HS No.     Description            HS No.     Description

            6301 90    Blankets (other than electric) and traveling rugs,
                       of other textile materials
            6302 10    Bed linen, of textile knitted or crocheted or
                       crocheted materials
            6302 21    Bed linen, of cotton, printed, not knitted or
                       crocheted
            6302 22    Bed linen, of man-made fibers, printed, not knitted
                       or crocheted
            6302 29    Bed linen, of other textile materials, printed, not
                       knitted or crocheted
            6302 31    Bed linen, of cotton, nes
            6302 32    Bed linen, of man-made fibers, nes
            6302 39    Bed linen, of other textile materials, nes
            6302 40    Table linen, of textile knitted or crocheted
                       materials
            6302 51    Table linen, of cotton, not knitted or crocheted
            6302 52    Table linen, of flax, not knitted or crocheted
            6302 53    Table linen, of man-made fibers, not knitted or
                       crocheted
            6302 59    Table linen, of other textile materials, not
                       knitted or crocheted
            6302 60    Toilet and kitchen linen, of terry toweling or
                       similar terry fabric, of cotton
            6302 91    Toilet and kitchen linen, of cotton, nes
            6302 92    Toilet and kitchen linen, of flax
            6302 93    Toilet and kitchen linen, of man-made fibers
            6302 99    Toilet and kitchen linen, of other textile
                       materials
            6303 11    Curtains, interior blinds and curtain or bed
                       valances, of cotton, knitted or crocheted
            6303 12    Curtains, interior blinds and curtain or bed
                       valances, of synthetic fiber, knitted or crocheted
            6303 19    Curtains, interior blinds and curtain or bed
                       valances, other textile materials, knitted or
                       crocheted
            6303 91    Curtains, interior blinds and curtain or bed
                       valances, of cotton, not knitted or crocheted
            6303 92    Curtains, interior blinds and curtain or bed
                       valances, of synthetic fiber, not knitted or
                       crocheted
            6303 99    Curtains, interior blinds and curtain or bed
                       valances, of other tex mat, not knitted or
                       crocheted
            6304 11    Bedspreads of textile materials, nes, knitted or
                       crocheted
            6304 19    Bedspreads of textile materials, nes, not knitted
                       or crocheted

                                 Annex 300-B                                

            HS No.     Description            HS No.     Description

            6304 91    Furnishing articles nes, of textile materials,
                       knitted or crocheted
            6304 92    Furnishing articles nes, of cotton, not knitted or
                       crocheted
            6304 93    Furnishing articles nes, of synthetic fibers, not
                       knitted or crocheted
            6304 99    Furnishing articles nes, of other textile
                       materials, not knitted or crocheted
            6305 10    Sacks and bags of jute or of other textile bast
                       fibers
            6305 20    Sacks and bags of cotton
            6305 31    Sacks and bags polyethylene or polypropylene strips
            6305 39    Sacks and bags of other man-made textile materials
            6305 90    Sacks and bags of other textile materials
            6306 11    Tarpaulins, awnings and sunblinds, of cotton
            6306 12    Tarpaulins, awnings and sunblinds, of synthetic
                       fibers
            6306 19    Tarpaulins, awnings and sunblinds, of other textile
                       materials
            6306 21    Tents, of cotton
            6306 22    Tents, of synthetic fibers
            6306 29    Tents, of other textile materials
            6306 31    Sails, of synthetic fibers
            6306 39    Sails, of other textile materials
            6306 41    Pneumatic mattresses, of cotton
            6306 49    Pneumatic mattresses, of other textile materials
            6306 91    Camping goods nes, of cotton
            6306 99    Camping goods nes, of other textile materials
            6307 10    Floor-cloths, dish-cloths, dusters and similar
                       cleaning cloths, of textile materials
            6307 20    Life jackets and life belts, of textile materials
            6307 90    Made up articles, of textile materials, nes,
                       including dress patterns
            6308 00    Sets of woven fabric and yarn, for rugs,
                       tapestries, and similar textile articles, for
                       retail sale
            6309 00 Worn clothing and other worn articles

            Chapter 64  Footwear, gaiters, and the like; parts of such
            articles

            ex 6405 20  Footwear with soles and uppers of wool felt
            ex 6406 10  Footwear uppers of which the external surface is
             50% textile material
            ex 6406 99  Leg warmers and gaiters of textile materials

            Chapter 65  Headgear and parts thereof

                               Annex 300-B                                  

            HS No.     Description            HS No.     Description

            6501 00    Hat-forms, hat bodies and hoods of felt; plateaux
                       and manchons of felt
            6502 00    Hat-shapes, plaited or made by assembling strips of
                       any material
            6503 00    Felt hats and other felt headgear
            6504 00    Hats and other headgear, plaited or made by
                       assembling strips of any material
            6505 90    Hats and other headgear, knitted or made up from
                       lace, or other textile materials

            Chapter 66  Umbrellas, sun umbrellas, walking sticks,
            seatsticks, whips, riding-crops and parts thereof

            6601 10    Umbrellas and sun umbrellas, garden type
            6601 91    Other umbrella types, telescopic shaft
            6601 99    Other umbrellas

            Chapter 70  Glass and glassware

            ex 7019 10  Yarn of fiber glass
                7019 20  Woven fabric of fiber glass

            Chapter 87  Vehicles other than railway or tramway rolling
            stock, and parts and accessories thereof

            8708 21    Safety seat belts for motor vehicles

            Chapter 88  Aircraft, spacecraft, and parts thereof

            8804 00    Parachutes; their parts and accessories

            Chapter 91  Clocks and watches and parts thereof

            9113 90    Watch straps, bands and bracelets of textile
                       materials 

            Chapter 94  Furniture; bedding, mattresses, mattress supports,
            cushions and similar stuffed furnishings

            ex 9404 90  Pillow and cushions of cotton; quilts; eiderdowns;
            comforters and sim articles of textile materials

            Chapter 95  Toys, games and sports requisites; parts and
            accessories thereof

            9502 91    Garments for dolls

                         Annex 300-B                                        

            HS No.     Description            HS No.     Description

            Chapter 96  Miscellaneous manufactured articles

            ex 9612 10  Woven ribbons, of man-made fibers, other than those
            <30 mm wide and permanently in cartridges


                                   Annex 300-B                              

                                      Appendix 2.1

                                   Tariff Elimination


            For purposes of this Appendix, each Party shall apply Section
            2(2) to determine whether a textile or apparel good is an
            originating good of a particular Party.


            A.  Trade between Canada and the United States

                 As required by Article 302, Canada and the United States
            each shall progressively eliminate its respective customs
            duties on originating textile and apparel goods of the other
            Party in accordance with Annex 401.2, as amended, of the Canada
            - United States Free Trade Agreement, as incorporated into
            Annex 302.2 and as set out in each Party's Schedule to that
            Annex.


            B.  Trade between Mexico and the United States

                 Except as provided in Schedule 2.1.B, and as required by
            Article 302, Mexico and the United States each shall
            progressively eliminate its respective customs duties on
            originating textile and apparel goods of the other Party, in
            accordance with its respective Schedule to Annex 302.2, as
            follows:

                 (a)   duties on textile and apparel 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 textile and apparel goods provided for in
                       the items in staging category B6 in a Party's
                       Schedule shall be reduced on January 1, 1994, by an
                       amount equal, in percentage terms, to the base
                       rates.  Thereafter, duties shall be removed in five
                       equal annual stages beginning on January 1, 1995,
                       and such goods shall be duty-free, effective
                       January 1, 1999;

                 (c)   duties on textile and apparel goods provided for in
                       the items in staging category C in a Party's
                       Schedule shall be removed in 10 equal annual stages

                                    Annex 300-B                             

                       beginning on January 1, 1994, and such goods shall
                       be duty-free, effective January 1, 2003; and

                 (d)   if the application of a formula provided in
                       subparagraph (b) or (c) for staging category B6 or
                       C results in a duty that exceeds 20 percent ad
                       valorem during any annual stage, the rate of duty
                       during that stage shall be 20 percent ad valorem
                       instead of the rate that otherwise would have
                       applied.


            C.  Trade between Canada and Mexico

                 As required by Article 302, Canada and Mexico each shall
            progressively eliminate its respective customs duties on
            originating textile and apparel goods of the other Party, in
            accordance with its respective Schedule to Annex 302.2, as
            follows:

                 (a)   duties on textile and apparel 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 textile and apparel goods provided for in
                       the items in staging category Bl in a Party's
                       Schedule shall be removed in six equal annual
                       stages beginning on January 1, 1994, and such goods
                       shall be duty-free, effective January 1, 1999;

                 (c)   duties on textile and apparel goods provided for in
                       the items in staging category B+ in a Party's
                       Schedule shall be reduced by the following
                       percentages of the base rates, beginning on January
                       1, 1994, and such goods shall be duty-free,
                       effective January 1, 2001

                           (i)  January 1, 1994, 20 percent
                           (ii)        January 1, 1995,  0 percent
                           (iii)       January 1, 1996, 10 percent
                           (iv)        January 1, 1997, 10 percent
                           (v)  January 1, 1998, 10 percent
                           (vi)        January 1, 1999, 10 percent
                           (vii)       January 1, 2000, 10 percent
                           (viii)      January 1, 2001, 30 percent and

                                   Annex 300-B                              


                 (d)   duties on textile and apparel 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.  Trade between All Parties

                 Originating textile and apparel goods provided for in the
            items in staging category D in a Party's Schedule to Annex
            302.2 shall continue to receive duty-free treatment.



                                     Schedule 2.1.B

                         Exceptions to Tariff Phase-out Formula
                               Specified in Appendix 2.1


            1.   The United States shall apply the following rates of duty
            on tariff items 5111.11.70, 5111.19.60, 5112.11.20 and
            5112.19.90 during the transition period:

                       1994                              25.0%
                       1995                              24.1%
                       1996                              18.0%
                       1997                              12.0%
                       1998                               6.0%
                       1999 and thereafter                     0.0%

            2.   Mexico shall apply the following rates of duty on tariff
            items 5111.11.01, 5111.19.99, 5112.11.01 and 5112.19.99, as
            modified to correspond to the U.S. tariff items identified in
            paragraph 1, during the transition period:

                       1994                              15.0%
                       1995                              14.5%
                       1996                              10.8%
                       1997                               7.2%
                       1998                               3.6%
                       1999 and thereafter                     0.0%

                             Annex 300-B                                    

            3.   The United States shall apply the following rates of duty
            on tariff items 5111.20.90, 5111.30.90, 5112.20.30, 5112.30.30,
            5407.91.05, 5407.92.05, 5407.93.05, 5407.94.05, 5408.31.05,
            5408.32.05, 5408.33.05, 5408.34.05, 5515.13.05, 5515.22.05,
            5515.92.05, 5516.31.05, 5516.32.05, 5516.33.05 and 5516.34.05
            during the transition period:

                       1994                              25.0%
                       1995                              25.0%
                       1996                              20.0%
                       1997                              13.3%
                       1998                               6.7%
                       1999 and thereafter                     0.0%


            4.   Mexico shall apply the following rates of duty on tariff
            items 5111.20.99, 5111.30.99, 5112.20.01, 5112.30.01,
            5407.91.99, 5407.92.99, 5407.93.99, 5407.94.99, 5408.31.99,
            5408.32.99, 5408.33.99, 5408.34.99, 5515.13.01, 5515.22.01,
            5515.92.01, 5516.31.01, 5516.32.01, 5516.33.01 and 5516.34.01,
            as modified to correspond to the U.S. tariff items identified
            in paragraph 3, during the transition period:

                       1994                              15.0%
                       1995                              15.0%
                       1996                              12.0%
                       1997                               8.0%
                       1998                               4.0%
                       1999 and thereafter                     0.0%


            5.   Mexico shall apply the following rates of duty on goods of
            subheadings 5703.20 and 5703.30 measuring not more than 5.25
            square meters in area, other than nylon hand-hooked, during the
            transition period:

                       1994                              20.0%
                       1995                              20.0%
                       1996                              10.0%
                       1997                               6.6%
                       1998                               3.3%
                       1999 and thereafter                     0.0%

                                 Annex 300-B                                

                                      Appendix 2.4

                Tariff Elimination on Certain Textile and Apparel Goods


                 On January 1, 1994, the United States shall eliminate
            customs duties on textile and apparel goods that are assembled
            in Mexico from fabrics wholly formed and cut in the United
            States and exported from and reimported into the United States
            under: 

                 (a)   U.S. tariff item 9802.00.80.10; or

                 (b)   Chapter 61, 62 or 63 if, after such assembly, those
                       goods that would have qualified for treatment under
                       9802.00.80.10 have been subject to bleaching,
                       garment dyeing, stone-washing, acid-washing or
                       perma-pressing.

            Thereafter, the United States shall not adopt or maintain any
            customs duty on textile and apparel goods of Mexico that
            satisfy the requirements of subparagraph (a) or (b) or the
            requirements of any successor provision to U.S. tariff item
            9802.00.80.10.


                                      Appendix 3.1

                   Administration of Import and Export Prohibitions,
                          Restrictions and Consultation Levels


            A.  Trade between Canada and Mexico and between Mexico and the
            United States

            1.   This Appendix applies to prohibitions, restrictions and
            consultation levels on non-originating textile and apparel
            goods.

            2.   An exporting Party whose textile or apparel good is
            subject to a prohibition, restriction or consultation level
            shall limit its annual exports to the specified limits or
            levels, and the importing Party may assist the exporting Party
            in implementing the prohibition, restriction or consultation
            level by controlling its imports.

                            Annex 300-B                                     

            3.   Each Party shall count exports of textile and apparel
            goods subject to a restriction or consultation level against
            the limit or level:

                 (a)   applicable to the calendar year in which the good
                       was exported; or

                 (b)   authorized for the following year if such exports
                       exceed the authorized limit or level for the
                       calendar year in which the good was exported, if
                       allowed entry into the territory of the importing
                       Party.

            4.   Each exporting Party whose goods are subject to a
            restriction or consultation level shall endeavor to space
            exports of such goods to the territory of the importing Party
            evenly throughout each calendar year, taking into consideration
            normal seasonal factors.

            5.   On written request of an exporting Party whose goods are
            subject to a prohibition, restriction or consultation level,
            that Party and the importing Party shall consult within 30 days
            of receipt of the request on any matter arising from the
            implementation of this Appendix.

            6.   On written request of an exporting Party that considers
            the application of a prohibition, restriction or consultation
            level under this Annex has placed it in an inequitable position
            in relation to another Party or a non-Party, the exporting
            Party and importing Party shall consult within 60 days of
            receipt of the request to seek a mutually beneficial solution.

            7.   An importing Party and an exporting Party, at any time by
            mutual agreement, may adjust annual Designated Consultation
            Levels (DCLs) as follows:

                 (a)   if the exporting Party whose goods are subject to a
                       DCL wishes to export goods in any category in
                       excess of the applicable DCL in any calendar year,
                       that Party may present to the importing Party a
                       formal written request for an increase in the DCL;
                       and

                 (b)   the importing Party shall respond, in writing,
                       within 30 days of the receipt of the request.  If
                       the response is negative, the Parties concerned
                       shall consult no later than 15 days after the
                       receipt of the response or as soon thereafter as

                                    Annex 300-B                             

                       mutually convenient, and shall endeavor to reach a
                       mutually satisfactory solution.  The Parties
                       concerned shall confirm any agreement reached on a
                       new DCL by an exchange of letters.

            8.   Adjustments to annual specific limits (SLs), including
            those set out in Schedule 3.1.2, may be made as follows:

                 (a)   an exporting Party wishing to adjust an SL shall
                       deliver a notice to the importing Party of its
                       intent to make an adjustment;

                 (b)   the exporting Party may increase the SL for a
                       calendar year by no more than six percent
                       ("swing"); and

                 (c)   in addition to any increase of its SL under
                       subparagraph (b), the exporting Party may increase
                       its unadjusted SL for that year by no more than 11
                       percent by allocating to such SL for that calendar
                       year (the "receiving year") an unused portion
                       ("shortfall") of the corresponding SL for the
                       previous calendar year ("carryover") or a portion
                       of the corresponding SL for the following calendar
                       year ("carryforward"), as follows:

                       (i)      subject to subparagraph (iii), the
                                exporting Party may utilize carryover, as
                                available, up to 11 percent of the
                                unadjusted SL for the receiving year,

                       (ii)     the exporting Party may utilize
                                carryforward charged against the
                                corresponding SL for the following calendar
                                year, up to six percent of the unadjusted
                                SL for the receiving year,

                       (iii)    the combination of the exporting Party's
                                carryover and carryforward shall not exceed
                                11 percent of the unadjusted SL in the
                                receiving year, and

                       (iv)     carryover may be utilized only following
                                confirmation by the importing Party that
                                sufficient shortfall exists.  If the
                                importing Party does not consider that
                                sufficient shortfall exists, it shall
                                promptly provide data to the exporting

                            Annex 300-B                                     

                                Party to support that view.  Where
                                substantial statistical differences exist
                                between the import and export data on which
                                the shortfall is computed, the Parties
                                concerned shall seek to resolve these
                                differences promptly.


            B.  Trade between Mexico and the United States

            9.   During the transition period, non-originating textile and
            apparel goods of Mexico exported to the United States shall be
            subject to the restrictions and consultation levels specified
            in Schedule 3.1.2, in accordance with this Appendix and its
            Schedules.  Such restrictions and consultation levels shall be
            progressively eliminated as follows:

                 (a)   restrictions or consultation levels on items
                       contained in the categories of textile and apparel
                       goods in staging category 1 in Schedule 3.1.1 shall
                       be eliminated on January 1, 1994;

                 (b)   restrictions or consultation levels on items
                       contained in the categories of textile and apparel
                       goods in staging category 2 in Schedule 3.1.1 shall
                       be eliminated on January 1, 2001; and

                 (c)   restrictions or consultation levels on items
                       contained in the categories of textile and apparel
                       goods in staging category 3 in Schedule 3.1.1 shall
                       be eliminated on January 1, 2004.

            10.  In addition, on January 1, 1994, the United States shall
            eliminate restrictions or consultation levels on textile and
            apparel goods that are assembled in Mexico from fabrics wholly
            formed and cut in the United States and exported from and
            reimported into the United States under:  

                 (a)   U.S. tariff item 9802.00.80.10; or

                 (b)   Chapter 61, 62 or 63 if, after such assembly, those
                       goods that would have qualified for treatment under
                       9802.00.80.10 have been subject to bleaching,
                       garment dyeing, stone-washing, acid-washing or
                       perma-pressing.

            Thereafter, notwithstanding Section 5, the United States shall
            not adopt or maintain prohibitions, restrictions or

                                 Annex 300-B                                

            consultation levels on textile and apparel goods of Mexico that
            satisfy the requirements of subparagraph (a) or (b) or the
            requirements of any successor provision to U.S. tariff item
            9802.00.80.10.

            11.  Mexico and the United States may identify at any time
            particular textile and apparel goods that they mutually agree
            fall within:

                 (a)   hand-loomed fabrics of a cottage industry;

                 (b)   hand-made cottage industry goods made of such hand-
                       loomed fabrics; or

                 (c)   traditional folklore handicraft goods. 

            The importing Party shall exempt from restrictions and
            consultation levels goods so identified, if certified by the
            competent authority of the exporting Party.

            12.  The Bilateral Textile Agreement Between the United States
            of America and the United Mexican States, signed at Mazatl n,
            February 13, 1988, as amended and extended (the Bilateral
            Agreement), shall terminate on the date of entry into force of
            this Agreement.

            13.  On request of either Party, the Parties shall consult to
            consider accelerating the elimination of restrictions or
            consultation levels set out in Schedule 3.1.2 on specific
            textile and apparel goods.  An agreement between the Parties to
            accelerate the elimination of a restriction or consultation
            level shall supersede Schedule 3.1.1 when approved by each such
            Party in accordance with Article 2202(2) (Amendments).

            14.  During 1994, Mexico may carry over any unused portion of
            the 1993 limit specified in the Bilateral Agreement, or apply
            against the 1994 limit specified in this Appendix any exports
            made during 1993 in excess of the applicable limit under the
            Bilateral Agreement, in accordance with the flexibility
            provisions set forth in paragraph 8.

            15.  All exports of textile and apparel goods from the
            territory of Mexico to the territory of the United States
            covered by restrictions or consultation levels under this
            Appendix shall be accompanied by an export visa issued by the
            competent authority of Mexico, pursuant to any bilateral visa
            arrangement in effect between the Parties.

                               Annex 300-B                                  

            16.  On written request of either Party, both Parties shall
            consult within 30 days of receipt of the request on any matter
            arising from the implementation of this Appendix.  In addition,
            on written request of either Party, both Parties shall conduct
            a review of this Appendix by January 1, 1999.

            17.  For purposes of applying prohibitions, restrictions or
            consultation levels, each Party shall consider a good as being
            of:

                 (a)   man-made fibers if the good is in chief weight of
                       man-made fibers, unless

                       (i)      the good is knitted or crocheted apparel in
                                which wool equals or exceeds 23 percent by
                                weight of all fibers, in which case it
                                shall be of wool,

                       (ii)     the good is apparel, not knitted or
                                crocheted, in which wool equals or exceeds
                                36 percent by weight of all fibers, in
                                which case it shall be of wool, or

                       (iii)    the good is a woven fabric in which wool
                                equals or exceeds 36 percent by weight of
                                all fibers, in which case it shall be of
                                wool;

                 (b)   cotton, if not covered by subparagraph (a) and if
                       the good is in chief weight of cotton, unless the
                       good is a woven fabric in which wool equals or
                       exceeds 36 percent by weight of all fibers, in
                       which case it shall be of wool;

                 (c)   wool, if not covered by subparagraph (a) or (b),
                       and the good is in chief weight of wool; and

                 (d)   non-cotton vegetable fiber, if not covered by
                       subparagraph (a), (b) or (c), and the good is in
                       chief weight of non-cotton vegetable fiber, unless

                       (i)      cotton with wool and/or man-made fibers in
                                the aggregate equal or exceed 50 percent by
                                weight of the component fibers thereof and
                                the cotton component equals or exceeds the
                                weight of each of the total wool and/or
                                man-made fiber components, in which case it
                                shall be of cotton,

                                   Annex 300-B                              

                       (ii)     if not covered by subparagraph (i) and wool
                                exceeds 17 percent by weight of all
                                component fibers, in which case it shall be
                                of wool, or

                       (iii)    if not covered by subparagraph (i) or (ii)
                                and man-made fibers in combination with
                                cotton and/or wool in the aggregate equal
                                or exceed 50 percent by weight of the
                                component fibers thereof and the man-made
                                fiber component exceeds the weight of the
                                total wool and/or total cotton component,
                                in which case it shall be of man-made
                                fibers.

            For purposes of this paragraph, only the textile fibers in the
            component of the good that determines the tariff classification
            of the good are to be considered.


            C.  Schedules

                 To determine which HS provisions are contained in a U.S.
            category listed in the Schedules to this Appendix, the Parties
            shall refer to the Correlation: Textile and Apparel Categories
            with the Harmonized Tariff Schedule of the United States, 1992
            (or successor document), U.S. Department of Commerce,
            International Trade Administration, Office of Textiles and
            Apparel, Trade and Data Division, Washington, D.C.  The
            descriptions listed in these Schedules are provided for ease of
            reference only.  For legal purposes, coverage of a category
            shall be determined according to the Correlation.


                                     Schedule 3.1.1

                      Schedule for the Elimination of Restrictions
              and Consultation Levels on Exports from Mexico to the United
            States


                              A. Special Regime (SR) Goods

            Category       Description                             Staging
                                                                   Category

            335 SR         C W&G Coats, Special Regime                  1
            336/636 SR     C/MMF Dresses, Special Regime                1

                              Annex 300-B                                   

            338/339/638/639 SR  C/MMF Knit Shirts, Special Regime       1
            340/640 SR     C/MMF Woven Shirts, Special Regime           1
            341/641 SR     C/MMF Blouses, Special Regime                1
            342/642 SR     C/MMF Skirts, Special Regime                 1
            347/348/647/648 SR  C/MMF Trousers, Special Regime          1
            351/651 SR     C/MMF Pyjamas, etc. Special Regime           1
            352/652 SR     C/MMF Underwear, Special Regime              1
            359-C/659-C SR C/MMF Coveralls, Special Regime              1
            633 SR         MMF Suit Coats, Special Regime               1
            635 SR         MMF Coats, Special Regime                    1


                                B. Non-originating Goods

            Category       Description                             Staging
                                                                   Category

            Broadwoven Fabric
              Group        C/MMF                                   1
            218            C/MMF Fabrics/Yarns of Different Colors      1
            219            C/MMF Duck Fabric                       2
            220            C/MMF Fabric of Special Weave                1
            225            C/MMF Denim Fabric                      1
            226            C/MMF Cheesecloth, Batistes                  1
            227            C/MMF Oxford Cloth                      1
            300/301/607-Y       C Combed/Carded Yarn; etc.              1
            313            C Sheeting Fabric                       2
            314            C Poplin and Broadcloth Fabric               2
            315            C Printcloth Fabric                     2

            Category       Description                             Staging
                                                                   Category

            317            C Twill Fabric                               2
            326            C Sateen Fabric                              1
            334/634        C/MMF Men's and Boys' Coats                  1
            335 NR         C Coats, Women's and Girls'                  1
            336/636 NR     C/MMF Dresses                           1
            338/339/638/639 NR C/MMF Knit Shirts and Blouses            2
            340/640 NR     C/MMF Woven Shirts                      2
            341/641 NR     C/MMF Woven Blouses                     1
            342/642        C/MMF Skirts                                 1
            347/348/647/648 NR C/MMF Trousers and Pants                 2
            351/651        C/MMF Pyjamas and Nightwear                  1
            352/652 NR     C/MMF Underwear                         1
            359-C/659-C NR C/MMF Coveralls                         1
            363            C Terry and Pile towels                      1
            410            Woven Wool Fabric                       3


                            Annex 300-B                                     

            433            W Men's and Boys' Suit-type Coats            3
            435            W Women's and Girls' Coats                   1
            443            W Men's and Boys' Suits                      3
            604-A               Acrylic Spun Yarn                       1
            604-O/607-O         Staple Fiber Yarn                       1
            611            Artificial Staple Fiber Woven Fabric         3
            613            MMF Sheeting Fabric                     1
            614            MMF Poplin & Broadcloth Fabric               1
            615            MMF Printcloth Fabric                        1
            617            MMF Twill & Sateen Fabric                    1
            625            MMF Poplin/Broadcloth Staple/Filament        1
            626            MMF Printcloth Staple/Filament               1
            627            MMF Sheeting Staple/Filament                 1
            628            MMF Twill/Sateen Staple/Filament             1
            629            MMF Other Staple/Filament Fabric             1
            633 NR         MMF Suit-Type Coats, M&B                2
            635            Women's and Girls' MMF Coats                 1
            643            MMF Suits for Men and Boys                   2
            669-B               Polypropylene Bags                      1
            670            MMF Luggage, Flat Goods Etc.                 1



            For purposes of this Schedule:

                 C means cotton;

                 M&B means men's and boys';

                 MMF means man-made fiber;

                 NR means normal regime;

                 W means wool; and

                 W&G means women's and girls'.


                                     Schedule 3.1.2

                          Restrictions and Consultation Levels
                      on Exports from Mexico to the United States


                                Unit of
            Category   Form     Measure             1994                    
                                         1995
                                                              1996  
                                                                            
            219        DCL        SM       9,438,000 9,438,000 9,438,000
            313        DCL        SM      16,854,00016,854,00016,854,000
            314        DCL        SM       6,966,904 6,966,904 6,966,904
            315        DCL        SM       6,966,904 6,966,904 6,966,904
            317        DCL        SM       8,427,000 8,427,000 8,427,000
            611        DCL        SM       1,267,710 1,267,710 1,267,710
            410        DCL        SM         397,160   397,160   397,160

                                Unit of
            Category   Form     Measure             1994                    
                                         1995
                                                              1996  

            338/339/
              638/639  DCL        DZ         650,000   650,000   650,000
            340/640     SL               DZ       120,439   128,822         
                                                       137,788
            347/348/
              647/648  DCL        DZ         650,000   650,000   650,000
            433        DCL        DZ          11,000    11,000    11,000
            443         SL               NO       150,000   156,000         
                                                       162,240
            633        DCL        DZ          10,000    10,000    10,000
            643        DCL        NO         155,556   155,556   155,556


            Category      1997                 1998      1999      2000  

            219        9,438,000           9,438,000 9,438,000 9,438,000
            313       16,854,000          16,854,00016,854,00016,854,000
            314        6,966,904           6,966,904 6,966,904 6,966,904
            315        6,966,904           6,966,904 6,966,904 6,966,904
            317        8,427,000           8,427,000 8,427,000 8,427,000
            611        1,267,710           1,267,710 1,267,710 1,267,710
            410          397,160             397,160   397,160   397,160
            338/339/
              638/639    650,000             650,000   650,000   650,000
            340/640      147,378             160,200   174,137   189,287
            347/348/
              647/648    650,000             650,000   650,000   650,000
            433           11,000              11,000    11,000    11,000
            443          168,730             175,479   182,498   189,798
            633           10,000              10,000    10,000    10,000
            643          155,556             155,556   155,556   155,556


            Category      2001                 2002           2003  

            611        1,267,710           1,267,710      1,267,710
            410          397,160             397,160        397,160
            433           11,000              11,000         11,000

                                Annex 300-B                                 

            443          197,390             205,286        213,496


                                     Schedule 3.1.3

                                   Conversion Factors

            1.   This Schedule applies to restrictions and consultation
            levels applied pursuant to Section 5 and paragraph 9 of
            Appendix 3.1, and to tariff preference levels applied pursuant
            to Section 6 and Appendix 6.

            2.   Unless otherwise provided in this Annex, or as may be
            mutually agreed between any two Parties with respect to trade
            between them, the rates of conversion into SME set out in
            paragraphs 3 through 6 shall apply.

            3.   The following conversion factors shall apply to the goods
            covered by the following U.S. categories:

                                                                    Primary
            U.S.       Conversion      Description                  Unit of
            Category   Factor                                       Measure

            200         6.60           YARN FOR RETAIL SALE, SEWING THREAD  
                                                                      KG
            201         6.50           SPECIALTY YARNS                   KG
            218         1.00           FABRIC OF YARNS OF DIFFERENT COLORS  
                                                                      SM
            219         1.00           DUCK FABRIC                       SM
            220         1.00           FABRIC OF SPECIAL WEAVE           SM
            222         6.00           KNIT FABRIC                       KG
            223        14.00           NON-WOVEN FABRIC                  KG
            224         1.00           PILE & TUFTED FABRIC              SM
            225         1.00           BLUE DENIM FABRIC                 SM
            226         1.00           CHEESECLOTH, BATISTE, LAWN & VOILESM
            227         1.00           OXFORD CLOTH                      SM
            229        13.60           SPECIAL PURPOSE FABRIC            KG
            237        19.20           PLAYSUITS, SUNSUITS, ETC          DZ
            239         6.30           BABIES' GARMENTS & CLOTHING ACCESS.  
                                                                      KG
            300         8.50           CARDED COTTON YARN                KG
            301         8.50           COMBED COTTON YARN                KG
            313         1.00           COTTON SHEETING FABRIC            SM
            314         1.00           COTTON POPLIN & BROADCLOTH FABRIC SM
            315         1.00           COTTON PRINTCLOTH FABRIC          SM
            317         1.00           COTTON TWILL FABRIC               SM
            326         1.00           COTTON SATEEN FABRIC              SM
            330         1.40           COTTON HANDKERCHIEFS              DZ
            331         2.90           COTTON GLOVES AND MITTENS        DPR
            332         3.80           COTTON HOSIERY                   DPR

                              Annex 300-B                                   

            333        30.30           M&B SUIT-TYPE COATS, COTTON       DZ
            334        34.50           OTHER M&B COATS, COTTON           DZ
            335        34.50           W&G COTTON COATS                  DZ
            336        37.90           COTTON DRESSES                    DZ
            338         6.00           M&B COTTON KNIT SHIRTS            DZ
            339         6.00           W&G COTTON KNIT SHIRTS/BLOUSES    DZ
            340        20.10           M&B COTTON SHIRTS, NOT KNIT       DZ
            341        12.10           W&G COTTON SHIRTS/BLOUSES,NOT KNITDZ
            342        14.90           COTTON SKIRTS                     DZ
            345        30.80           COTTON SWEATERS                   DZ
            347        14.90    M&B COTTON TROUSERS/BREECHES/SHORTS      DZ
            348        14.90           W&G COTTON TROUSERS/BREECHES/SHORTS  
                                                                      DZ
            349         4.00           BRASSIERES, OTHER BODY SUPPORT
                                       GARMENTS                          DZ
            350        42.60    COTTON DRESSING GOWNS, ROBES ETC.        DZ
            351        43.50           COTTON NIGHTWEAR/PAJAMAS          DZ
            352         9.20           COTTON UNDERWEAR                  DZ
            353        34.50           M&B COTTON DOWN-FILLED COATS      DZ
            354        34.50           W&G COTTON DOWN-FILLED COATS      DZ
            359         8.50           OTHER COTTON APPAREL              KG
            360         0.90           COTTON PILLOWCASES                NO
            361         5.20           COTTON SHEETS                     NO
            362         5.80           OTHER COTTON BEDDING              NO
            363         0.40           COTTON TERRY & OTHER PILE TOWELS  NO
            369         8.50           OTHER COTTON MANUFACTURES         KG
            400         3.70           WOOL YARN                         KG
            410         1.00           WOOL WOVEN FABRIC                 SM
            414         2.80           OTHER WOOL FABRIC                 KG
            431         1.80           WOOL GLOVES/MITTENS              DPR
            432         2.30           WOOL HOSIERY                     DPR
            433        30.10           M&B WOOL SUIT-TYPE COATS          DZ
            434        45.10           OTHER M&B WOOL COATS              DZ
            435        45.10           W&G WOOL COATS                    DZ
            436        41.10           WOOL DRESSES                      DZ
            438        12.50           WOOL KNIT SHIRTS/BLOUSES          DZ
            439         6.30           BABIES' WOOL GARM/CLOTHING ACCESS.KG
            440        20.10           WOOL SHIRTS/BLOUSES, NOT-KNIT     DZ
            442        15.00           WOOL SKIRTS                       DZ
            443         3.76           M&B WOOL SUITS                    NO
            444         3.76           W&G WOOL SUITS                    NO
            445        12.40           M&B WOOL SWEATERS                 DZ
            446        12.40           W&G WOOL SWEATERS                 DZ
            447        15.00           M&B WOOL TROUSERS/BREECHES/SHORTS DZ
            448        15.00           W&G WOOL TROUSERS/BREECHES/SHORTS DZ
            459         3.70           OTHER WOOL APPAREL                KG
            464         2.40           WOOL BLANKETS                     KG
            465         1.00           WOOL FLOOR COVERINGS              SM
            469         3.70           OTHER WOOL MANUFACTURES           KG

                              Annex 300-B                                   
                                                                    Primary 
                                                                  Primary
            U.S.       Conversion      Description                  Unit of 
          U.S.       Conversion      Description                  Unit of
            Category   Factor                                       Measure 
          Category   Factor                                       Measure



            600         6.50           TEXTURED FILAMENT YARN            KG
            603         6.30           YARN  85% ARTIFICIAL STAPLE FIBER KG
            604         7.60           YARN  85% SYNTHETIC STAPLE FIBER  KG
            606        20.10           NON-TEXTURED FILAMENT YARN        KG
            607         6.50           OTHER STAPLE FIBER YARN           KG
            611         1.00           WOVEN FABRIC  85% ARTIFICIAL STAPLE  
                                                                      SM
            613         1.00           MMF SHEETING FABRIC               SM
            614         1.00           MMF POPLIN & BROADCLOTH FABRIC    SM
            615         1.00           MMF PRINTCLOTH FABRIC             SM
            617         1.00           MMF TWILL AND SATEEN FABRIC       SM
            618         1.00           WOVEN ARTIFICIAL FILAMENT FABRIC  SM
            619         1.00           POLYESTER FILAMENT FABRIC         SM
            620         1.00           OTHER SYNTHETIC FILAMENT FABRIC   SM
            621        14.40           IMPRESSION FABRIC                 KG
            622         1.00           GLASS FIBER FABRIC                SM
            624         1.00           WOVEN MMF FABRIC, 15% TO 36% WOOL SM
            625         1.00           MMF STAPLE/FILAMENT POPLIN &
                                       BROADCLOTH FABRIC                 SM
            626         1.00           MMF STAPLE/FILAMENT PRINTCLOTH
                                       FABRIC                            SM
            627         1.00           MMF STAPLE/FILAMENT SHEETING FABRIC  
                                                                      SM
            628         1.00           MMF STAPLE/FILAMENT TWILL/SATEEN
                                       FABRIC                            SM
            629         1.00           OTHER MMF STAPLE/FILAMENT FABRIC  SM
            630         1.40           MMF HANDKERCHIEFS                 DZ
            631         2.90           MMF GLOVES AND MITTENS           DPR
            632         3.80           MMF HOSIERY                      DPR
            633        30.30           M&B MMF SUIT-TYPE COATS           DZ
            634        34.50           OTHER M&B MMF COATS               DZ
            635        34.50           W&G MMF COATS                     DZ
            636        37.90           MMF DRESSES                       DZ
            638        15.00           M&B MMF KNIT SHIRTS               DZ
            639        12.50           W&G MMF KNIT SHIRTS & BLOUSES     DZ
            640        20.10           M&B NOT-KNIT MMF SHIRTS           DZ
            641        12.10           W&G NOT-KNIT MMF SHIRTS & BLOUSES DZ
            642        14.90           MMF SKIRTS                        DZ
            643         3.76           M&B MMF SUITS                     NO
            644         3.76           W&G MMF SUITS                     NO
            645        30.80           M&B MMF SWEATERS                  DZ
            646        30.80           W&G MMF SWEATERS                  DZ
            647        14.90           M&B MMF TROUSERS/BREECHES/SHORTS  DZ
            648        14.90           W&G MMF TROUSERS/BREECHES/SHORTS  DZ

                               Annex 300-B                                  
                                                                    Primary 
                                                                  Primary
            U.S.       Conversion      Description                  Unit of 
          U.S.       Conversion      Description                  Unit of
            Category   Factor                                       Measure 
          Category   Factor                                       Measure



            649         4.00           MMF BRAS & OTHER BODY SUPPORT
                                       GARMENTS                          DZ
            650        42.60           MMF ROBES, DRESSING GOWNS, ETC.   DZ
            651        43.50           MMF NIGHTWEAR & PAJAMAS           DZ
            652        13.40           MMF UNDERWEAR                     DZ
            653        34.50           M&B MMF DOWN-FILLED COATS         DZ
            654        34.50           W&G MMF DOWN-FILLED COATS         DZ
            659        14.40           OTHER MMF APPAREL                 KG
            665         1.00           MMF FLOOR COVERINGS               SM
            666        14.40           OTHER MMF FURNISHINGS             KG
            669        14.40           OTHER MMF MANUFACTURES            KG
            670         3.70           MMF FLAT GOODS, HANDBAGS, LUGGAGE KG
            800         8.50           YARN, SILK BLENDS/VEGETABLE FIBER KG
            810         1.00           WOVEN FABRIC, SILK BLENDS/VEGETABLE
                                       FIBER                             SM
            831         2.90           GLOVES & MITTENS, SILK
                                       BLENDS/VEGETABLE FIBER           DPR
            832         3.80           HOSIERY, SILK BLENDS/VEGETABLE
                                       FIBER                            DPR
            833        30.30           M&B SUIT-TYPE COATS, SILK
                                       BLENDS/VEGETABLE FIBER            DZ
            834        34.50           OTHER M&B COATS, SILK
                                       BLENDS/VEGETABLE FIBER            DZ
            835        34.50           W&G COATS, SILK BLENDS/VEGETABLE
                                       FIBER                             DZ
            836        37.90           DRESSES, SILK BLENDS/VEGETABLE
                                       FIBER                             DZ
            838        11.70           KNIT SHIRTS & BLOUSES, SILK
                                       BLENDS/VEGETABLE FIBER            DZ
            839         6.30           BABIES' GARM & CLOTHING
                                       ACCESSORIES, SILK/VEG FIBER       KG
            840        16.70           NOT-KNIT SHIRTS & BLOUSES, SILK
                                       BLENDS/                           DZ
                                VEGETABLE FIBER
            842        14.90           SKIRTS, SILK BLENDS/VEGETABLE
                                       FIBERS                            DZ
            843         3.76           M&B SUITS, SILK BLENDS/VEGETABLE
                                       FIBER                             NO
            844         3.76           W&G SUITS, SILK BLENDS/VEGETABLE
                                       FIBER                             NO
            845        30.80           SWEATERS, NON-COTTON VEGETABLE
                                       FIBERS                            DZ
            846        30.80           SWEATERS, SILK BLENDS             DZ

                                 Annex 300-B                                

                                                                    Primary 
                                                                  Primary
            U.S.       Conversion      Description                  Unit of 
          U.S.       Conversion      Description                  Unit of
            Category   Factor                                       Measure 
          Category   Factor                                       Measure



            847        14.90           TROUSERS/BREECHES/SHORTS, SILK
                                       BLENDS/                           DZ
                                VEGETABLE FIBER
            850        42.60           ROBES, DRESSING GOWNS, ETC, SILK
                                       BLENDS/                           DZ
                                VEGETABLE FIBER
            851        43.50           NIGHTWEAR & PYJAMAS, SILK
                                       BLENDS/VEGETABLE FIBER            DZ
            852        11.30           UNDERWEAR, SILK BLENDS/VEGETABLE
                                       FIBER                             DZ
            858         6.60           NECKWEAR, SILK BLENDS/VEGETABLE
                                       FIBER                             KG
            859        12.50           OTHER SILK BLEND/VEGETABLE FIBER
                                       APPAREL                           KG
            863         0.40           TOWELS, SILK BLENDS/VEGETABLE
                                       FIBERS                            NO
            870         3.70           LUGGAGE, SILK BLENDS/VEGETABLE
                                       FIBERS                            KG
            871         3.70           HANDBAGS & FLATGOODS, SILK
                                       BLENDS/VEGETABLE FIBER            KG
            899        11.10           OTHER SILK BLENDS/VEGETABLE FIBER
                                       MANUFACTURES                      KG

                                Annex 300-B                                 

            4.  The following conversion factors shall apply to the
            following goods not covered by a U.S. category:

            U.S.
            Harmonized
            System                     Primary                           
            Statistical    Conversion          Unit of
            Provision  Factor   Measure        Description

            5208.31.2000   1.00                SM   WOVEN FABRIC, 85%>
                                                    COTTON, <100G/M2
                                                    CERTIFIED HAND-LOOM
                                                    FABRIC, DYED
            5208.32.1000   1.00                SM   WOVEN FABRIC, 85%>
                                                    COTTON, 100-200G/M2
                                                    CERTIFIED HAND-LOOM
                                                    FABRIC, DYED
            5208.41.2000   1.00                SM   WOVEN FABRIC,  85%
                                                    COTTON  100G/M2
                                                    CERTIFIED HAND-LOOM,
                                                    YARNS OF DIFFERENT
                                                    COLORS
            5208.42.1000   1.00                SM   WOVEN FABRIC,  85%
                                                    COTTON 100-200G/M2
                                                    CERTIFIED HAND-LOOM,
                                                    YARNS OF DIFFERENT
                                                    COLORS
            5208.51.2000   1.00                SM   WOVEN FABRIC, 85%>
                                                    COTTON  100G/M2 PLAIN
                                                    WEAVE, CERTIFIED HAND-
                                                    LOOM, PRINTED
            5208.52.1000   1.00                SM   WOVEN FABRIC,  85%
                                                    COTTON 100-200G/M2
                                                    PLAIN WEAVE, CERTIFIED
                                                    HAND-LOOM, PRINTED
            5209.31.3000   1.00                SM   WOVEN FABRIC, 85%>
                                                    COTTON >200G/M2 PLAIN
                                                    WEAVE, CERTIFIED HAND-
                                                    LOOM, DYED
            5209.41.3000   1.00                SM   WOVEN FABRIC, 85%>
                                                    COTTON >200G/M2, PLAIN
                                                    WEAVE, YARNS OF
                                                    DIFFERENT COLOR
            5209.51.3000   1.00                SM   WOVEN FABRIC, >85%
                                                    COTTON >200G/M2, PLAIN
                                                    WEAVE, CERTIFIED HAND-
                                                    LOOM, PRINTED

                                Annex 300-B                                 

            5307.10.0000   8.50                KG   YARN, JUTE OR OTHER
                                                    TEXTILE BAST FIBER
                                                    (EXCLUDING
                                                    FLAX/HEMP/RAMIE),
                                                    SINGLE
            5307.20.0000   8.50                KG   YARN, JUTE OR OTHER
                                                    TEXTILE BAST FIBER (EX.
                                                    FLAX/HEMP/RAMIE),
                                                    MULTIPLE/CABLE
            5308.10.0000   8.50                KG   YARN, COIR 
            5308.30.0000   8.50                KG   YARN, PAPER 
            5310.10.0020   1.00                SM   WOVEN FABRIC, JUTE OR
                                                    OTHER TEXTILE BAST
                                                    FIBER (EX
                                                    FLAX/HEMP/RAMIE),
                                                     130CM WIDE, UNBLEACHED
            5310.10.0040   1.00                SM   WOVEN FABRIC, JUTE OR
                                                    OTHER TEXTILE BAST
                                                    FIBER (EX
                                                    FLAX/HEMP/RAMIE) >130
                                                    TO  250 CM WIDE,
                                                    UNBLEACHED
            5310.10.0060   1.00                SM   WOVEN FABRIC, JUTE OR
                                                    OTHER TEXTILE BAST
                                                    FIBER (EX
                                                    FLAX/HEMP/RAMIE), >250
                                                    CM WIDE, UNBLEACHED
            5310.90.0000   1.00                SM   WOVEN FABRIC, JUTE OR
                                                    OTHER TEXTILE BAST
                                                    FIBER (EXCLUDING
                                                    FLAX/HEMP/RAMIE), NES
            5311.00.6000   1.00                SM   WOVEN FABRIC OF PAPER
                                                    YARN
            5402.10.3020   20.10               KG   NYLON HIGH TENACITY
                                                    YARN, <5 TURNS PER
                                                    METER, NOT FOR RETAIL
                                                    SALE
            5402.20.3020   20.10               KG   POLYESTER HIGH TENACITY
                                                    YARN, <5 TURNS PER
                                                    METER, NOT FOR RETAIL
                                                    SALE
            5402.41.0010   20.10               KG   NYLON MULTIFILAMENT
                                                    YARN, PARTIALLY
                                                    ORIENTED, UNTWIST/TWIST
                                                    <5 TURNS/METER, NOT FOR
                                                    RETAIL SALE
            5402.41.0020   20.10               KG   NYLON MONO/MULTFILAMENT
                                                    YARN, UNTWIST/TWIST <5
                               Annex 300-B                                  


            U.S.            U.S.
            Harmonized            Harmonized
            System                     Primary            System            
        Primary
            Statistical    Conversion  Unit of            Statistical   
Conversion  Unit of
            Provision  Factor   Measure        Description           
Provision  Factor   Measure        Description
            

                                                    TURNS/METER, NOT FOR
                                                    RETAIL SALE, NES
            5402.41.0030   20.10               KG   NYLON
                                                    MONO/MULTIFILAMENT
                                                    YARN, UNTWIST/TWIST <5
                                                    TURNS/METER, NOT FOR
                                                    RETAIL SALE
            5402.42.0000   20.10               KG   POLYESTER YARN,
                                                    PARTIALLY ORIENTED,
                                                    UNTWIST/TWIST   50
                                                    TURNS/METER, NOT FOR
                                                    RETAIL SALE
            5402.43.0020   20.10               KG   POLYESTER YARN,
                                                    MONOFILAMENT,
                                                    UNTWIST/TWIST  5
                                                    TURNS/METER, NOT FOR
                                                    RETAIL SALE
            5402.49.0010   20.10               KG   POLYETHYLENE/POLYPROPYL
                                                    ENE FILAMENT YARN,
                                                    UNTWIST/TWIST <5
                                                    TURNS/METER, NOT FOR
                                                    RETAIL SALE
            5402.49.0050   20.10               KG   SYNTHETIC FILAMENT
                                                    YARN, UNTWIST/TWIST <5
                                                    TURNS/METER, NOT FOR
                                                    RETAIL SALE, NES
            5403.10.3020   20.10               KG   VISCOSE RAYON HIGH
                                                    TENACITY FILAMENT YARN,
                                                    UNTWIST/TWIST <5
                                                    TURNS/METER, NOT FOR
                                                    RETAIL SALE
            5403.31.0020   20.10               KG   VISCOSE RAYON FILAMENT
                                                    YARN, SINGLE,
                                                    UNTWIST/TWIST <5
                                                    TURNS/METER, NOT FOR
                                                    RETAIL SALE
            5403.33.0020   20.10               KG   CELLULOSE ACETATE
                                                    FILAMENT YARN, SINGLE,
                                                    UNTWIST/TWIST <5
                                                    TURNS/METER, NOT FOR
                                                    RETAIL SALE

                   Annex 300-B                                              


            U.S.            U.S.
            Harmonized            Harmonized
            System                     Primary            System            
        Primary
            Statistical    Conversion  Unit of            Statistical   
Conversion  Unit of
            Provision  Factor   Measure        Description           
Provision  Factor   Measure        Description
            

            5403.39.0020   20.10               KG   ARTIFICIAL FILAMENT
                                                    YARN, UNTWIST/TWIST <5
                                                    TURNS/METER, NOT FOR
                                                    RETAIL SALE, NES
            5404.10.1000   20.10               KG   SYNTHETIC MONOFILAMENT
                                                    RACKET STRINGS,  67
                                                    DECITEX, CROSS-SECT.
                                                    DIMEMSION >1MM
            5404.10.2020   20.10               KG   NYLON MONFILAMENT,  67
                                                    DECITEX,
                                                    CROSS-SECTIONAL
                                                    DIMENSION >1MM,
            5404.10.2040   20.10               KG   POLYESTER MONFILAMENT,
                                                    >67 DECITEX, CROSS-
                                                    SECTIONAL DIMENSION
                                                    >1MM
            5404.10.2090   20.10               KG   SYNTHETIC MONFILAMENT
                                                     67 DECITEX, CROSS-
                                                    SECTIONAL DIMENSION
                                                    >1MM, NES
            5404.90.0000   20.10               KG   SYNTHETIC STRIP WIDTH
                                                     5MM
            5405.00.3000   20.10               KG   ARTIFICIAL
                                                    MONOFILAMENT,  67
                                                    DECITEX, CROSS-
                                                    SECTIONAL DIMENSION  
                                                    1MM
            5405.00.6000   20.10               KG   ARTIFICIAL STRIP AND
                                                    THE LIKE, WIDTH   5MM
            5407.30.1000   1.00                SM   WOVEN SYNTHETIC
                                                    FILAMENT FABRIC WITH
                                                    YARN AT ACUTE/RIGHT
                                                    ANGLES, >60% PLASTIC
            5501.10.0000   7.60                KG   NYLON/OTHER POLYAMIDE
                                                    FILAMENT TOW
            5501.20.0000   7.60                KG   POLYESTER FILAMENT TOW
            5501.30.0000   7.60                KG   ACRYLIC OR MODACRYLIC
                                                    FILAMENT TOW
            5501.90.0000   7.60                KG   SYNTHETIC FILAMENT TOW,
                                                    NES
            5502.00.0000   6.30                KG   ARTIFICIAL FILAMENT TOW

                              Annex 300-B                                   


            U.S.            U.S.
            Harmonized            Harmonized
            System                     Primary            System            
        Primary
            Statistical    Conversion  Unit of            Statistical   
Conversion  Unit of
            Provision  Factor   Measure        Description           
Provision  Factor   Measure        Description
            

            5503.10.0000   7.60                KG   NYLON/OTHER POLAMIDE
                                                    STAPLE FIBERS NOT
                                                    CARDED/COMBED OR
                                                    OTHERWISE PROCESSED
            5503.20.0000   7.60                KG   POLYESTER STAPLE FIBERS
                                                    NOT CARDED/COMBED, OR
                                                    OTHERWISE PROCESSED
            5503.30.0000   7.60                KG   ACRYLIC/MODOACRYLIC
                                                    STAPLE FIBERS, NOT
                                                    CARDED/COMBED OR
                                                    OTHERWISE PROCESSED
            5503.40.0000   7.60                KG   POLYPROPYLENE STAPLE
                                                    FIBERS NOT
                                                    CARDED/COMBED OR
                                                    OTHERWISE PROCESSED
            5503.90.0000   7.60                KG   SYNTHETIC STAPLE FIBER
                                                    NOT CARDED/COMBED, OR
                                                    OTHERWIDE PROCESSED,
                                                    NES
            5504.10.0000   6.30                KG   VISCOSE RAYON STAPLE
                                                    FIBERS NOT
                                                    CARDED/COMBED OR
                                                    OTHERWISE PROCESSED
            5504.90.0000   6.30                KG   ARTIFICIAL STAPLE
                                                    FIBERS NOT
                                                    CARDED/COMBED OR
                                                    OTHERWISE PROCESSED,
                                                    NES
            5505.10.0020   7.60                KG   WASTE, NYLON AND OTHER
                                                    POLYAMIDES
            5505.10.0040   7.60                KG   WASTE, POLYESTER
            5505.10.0060   7.60                KG   WASTE, MMF SYNTHETIC
                                                    FIBERS, NES
            5505.20.0000   6.30                KG   WASTE, MMF ARTIFICIAL
                                                    FIBERS
            5506.10.0000   7.60                KG   NYLON/OTHER POLYAMIDES
                                                    FIBERS, CARDED/COMBED
                                                    OR OTHERWISE PROCESSED 
            5506.20.0000   7.60                KG   POLYESTER STAPLE FIBER,
                                                    CARDED/COMBED, OR
                                                    OTHERWISE PROCESSED

                             Annex 300-B                                    


            U.S.            U.S.
            Harmonized            Harmonized
            System                     Primary            System            
        Primary
            Statistical    Conversion  Unit of            Statistical   
Conversion  Unit of
            Provision  Factor   Measure        Description           
Provision  Factor   Measure        Description
            

            5506.30.0000   7.60                KG   ACRYLIC/MODOACRYLIC
                                                    STAPLE FIBER,
                                                    CARDED/COMBED OR
                                                    OTHERWISE PROCESSED
            5506.90.0000   7.60                KG   SYNTHETIC STAPLE FIBER
                                                    CARDED/COMBED OR
                                                    OTHERWISE PROCESSED,
                                                    NES
            5507.00.0000   6.30                KG   ARTIFICIAL STAPLE
                                                    FIBERS, CARDED/COMBED,
                                                    OR OTHERWISE PROCESSED 
            5801.90.2010   1.00                SM   WOVEN PILE FABRIC, >85%
                                                    SILK OR SILK WASTE
            5802.20.0010   1.00                SM   TERRY TOWELING FABRIC,
                                                    >85% SILK OR SILK WASTE
            5802.30.0010   1.00                SM   TUFTED TEXTILE FABRIC,
                                                    >85% SILK OR SILK WASTE
            5803.90.4010   1.00                SM   GAUZE, >85% SILK OR
                                                    SILK WASTE
            5804.10.0010   11.10               KG   TULLES & OTHER NETTING
                                                    FABRIC, KNIT OR
                                                    CROCHETED, >85% SILK OR
                                                    SILK WASTE
            5804.29.0010   11.10               KG   LACE IN THE
                                                    PIECE/STRIP/MOTIF, >85%
                                                    SILK OR SILK WASTE
            5804.30.0010   11.10               KG   HAND-MADE LACE IN
                                                    PIECE/STRIP/MOTIF, >85%
                                                    SILK OR SILK WASTE
            5805.00.1000   1.00                SM   HAND-WOVEN TAPESTRIES
                                                    FOR WALLHANGINGS,
                                                    VALUED AT >$215\SM
            5805.00.2000   1.00                SM   HAND-WOVEN TAPESTRIES,
                                                    NES, WOOL, CERTIFIED
                                                    HAND-LOOMED
            5805.00.4090   1.00                SM   HAND-WOVEN TAPESTRIES,
                                                    NES
            5806.10.3010   11.10               KG   NARROW WOVEN PILE &
                                                    CHENILLE FABRIC, >85%
                                                    SILK OR SILK WASTE

                             Annex 300-B                                    


            U.S.            U.S.
            Harmonized            Harmonized
            System                     Primary            System            
        Primary
            Statistical    Conversion  Unit of            Statistical   
Conversion  Unit of
            Provision  Factor   Measure        Description           
Provision  Factor   Measure        Description
            

            5806.39.3010   11.10               KG   NARROW WOVEN FABRIC,
                                                    NOT PILE, >85% SILK OR
                                                    SILK WASTE 
            5806.40.0000   13.60               KG   NARROW FABRIC, WARP
                                                    WITHOUT WEFT WITH AN
                                                    ADHESIVE (BOLDUCS)
            5807.10.1090   11.10               KG   WOVEN LABELS, TEXTILE
                                                    MATERIALS, NOT
                                                    EMBROIDERED, NOT COTTON
                                                    OR MMF
            5807.10.2010   8.50                KG   WOVEN BADGES AND
                                                    SIMILAR ARTICLES,
                                                    COTTON, NOT EMBROIDERED
            5807.10.2020   14.40               KG   WOVEN BADGES/SIMILAR
                                                    ARTICLES, MMF, NOT
                                                    EMBROIDERED
            5807.10.2090   11.10               KG   WOVEN BADGES/SIMILAR
                                                    ARTCLES, TEXTILE
                                                    MATERIALS, NOT
                                                    EMBROIDERED, NOT
                                                    COTTON/MMF
            5807.90.1090   11.10               KG   NOT-WOVEN LABELS OF
                                                    TEXTILE MATERIALS, NOT
                                                    EMBROIDERED, NOT
                                                    COTTON/MMF
            5807.90.2010   8.50                KG   NOT-WOVEN
                                                    BADGES/SIMILAR
                                                    ARTICLES, COTTON, NOT
                                                    EMBROIDERED
            5807.90.2020   14.40               KG   NOT-WOVEN
                                                    BADGES/SIMILAR
                                                    ARTICLES, MMF, NOT
                                                    EMBROIDERED
            5807.90.2090   11.10               KG   NOT-WOVEN
                                                    BADGES/SIMILAR
                                                    ARTICLES, TEX
                                                    MATERIALS, NOT
                                                    EMBROIDERED, NOT
                                                    COTTON/MMF
            5808.10.2090   11.10               KG   BRAIDS IN PIECE FOR
                                                    HEADWEAR, OTHER TEXTILE

                                 Annex 300-B                                

            U.S.            U.S.
            Harmonized            Harmonized
            System                     Primary            System            
        Primary
            Statistical    Conversion  Unit of            Statistical   
Conversion  Unit of
            Provision  Factor   Measure        Description           
Provision  Factor   Measure        Description
            

                                                    MATERIALS, NES, NOT
                                                    KNIT OR EMBROIDERED
            5808.10.3090   11.10               KG   BRAID IN PIECE, NES,
                                                    NES
            5808.90.0090   11.10               KG   ORNAMENTAL TRIMMING IN
                                                    PIECE, TEXTILE
                                                    MATERIALS, NOT KNIT OR
                                                    EMBROIDERED, NOT
                                                    COTTON/MMF
            5810.92.0040   14.40               KG   EMBROIDERED
                                                    BADGES/EMBLEMS/MOTIFS
                                                    WITH VISIBLE GROUND,
                                                    MMF
            5810.99.0090   11.10               KG   EMBROIDERY
                                                    PIECES/STRIPS/MOTIFS
                                                    WITH VISIBLE GROUND,
                                                    TEXTILE MATERIALS, NES 
            5811.00.4000   1.00                SM   QUILTED PIECES, 1 
                                                    LAYER TEXTILE
                                                    MATERIALS, TEXTILE
                                                    MATERIALS, NES
            6001.99.0010   1.00                SM   KNIT OR CROCHETED PILE
                                                    FABRIC  85% SILK OR
                                                    SILK WASTE
            6002.99.0010   11.10               KG   KNIT OR CROCHETED
                                                    FABRIC, NES  85% SILK
                                                    OR SILK WASTE
            6301.90.0020   11.10               NO   BLANKET/TRAVELING RUGS,
                                                    >85% SILK OR SILK WASTE
            6302.29.0010   11.10               NO   BED LINEN, PRINTED >85%
                                                    SILK OR SILK WASTE
            6302.39.0020   11.10               NO   BED LINEN, NES, >85%
                                                    SILK OR SILK WASTE
            6302.99.1000   11.10               NO   LINEN, NES, >85% SILK
                                                    OR SILK WASTE
            6303.99.0030   11.10               NO   CURTAINS, INTERIOR
                                                    BLINDS, NOT KNIT OR
                                                    CROCHETED, >85% SILK OR
                                                    SILK WASTE

                              Annex 300-B                                   

            U.S.            U.S.
            Harmonized            Harmonized
            System                     Primary            System            
        Primary
            Statistical    Conversion  Unit of            Statistical   
Conversion  Unit of
            Provision  Factor   Measure        Description           
Provision  Factor   Measure        Description
            

            6304.19.3030   11.10               NO   BEDSPREADS, NOT KNIT OR
                                                    CROCHETED, >85% SILK OR
                                                    SILK WASTE
            6304.91.0060   11.10               NO   FURNISHING ARTICLES,
                                                    NES, KNIT OR CROCHETED
                                                    >85% SILK OR SILK WASTE
            6304.99.1000   1.00                SM   WALL HANGINGS, WOOL OR
                                                    FINE ANIMAL HAIR,
                                                    CERTIFIED HAND-
                                                    LOOMED/FOLKLORE, NOT
                                                    KNIT
            6304.99.2500   11.10               KG   WALL HANGINGS, JUTE,
                                                    NOT KNIT
            6304.99.4000   3.70                KG   PILLOW COVERS, WOOL OR
                                                    FINE ANIMAL HAIR,
                                                    CERTIFIED HAND-
                                                    LOOMED/FOLKLORE
            6304.99.6030   11.10               KG   OTHER FURNISHING
                                                    ARTICLES, NOT KNIT, NES
                                                    >85% SILK OR SILK WASTE
            6305.10.0000   11.10               KG   SACKS & BAGS, JUTE/BAST
                                                    FIBERS
            6306.21.0000   8.50                KG   TENTS OF COTTON 
            6306.22.1000   14.40               NO   BACKPACK TENTS,
                                                    SYNTHETIC FIBERS
            6306.22.9010   14.40               KG   SCREEN HOUSES,
                                                    SYNTHETIC FIBERS
            6306.29.0000   14.40               KG   TENTS, TEXTILE
                                                    MATERIALS NES
            6306.31.0000   14.40               KG   SAILS, SYNTHETIC FIBERS
            6306.39.0000   8.50                KG   SAILS, TEXTILE
                                                    MATERIALS NES
            6306.41.0000   8.50                KG   PNEUMATIC MATTRESSES,
                                                    COTTON
            6306.49.0000   14.40               KG   PNEUMATIC MATTRESSES,
                                                    TEXTILE MATERIALS NES
            6306.91.0000   8.50                KG   CAMPING GOODS NES,
                                                    COTTON
            6306.99.0000   14.40               KG   CAMPING GOODS, TEXTILE
                                                    MATERIALS NES
            6307.10.2030   8.50                KG   CLEANING CLOTHS NES

                              Annex 300-B                                   

            U.S.            U.S.
            Harmonized            Harmonized
            System                     Primary            System            
        Primary
            Statistical    Conversion  Unit of            Statistical   
Conversion  Unit of
            Provision  Factor   Measure        Description           
Provision  Factor   Measure        Description
            

            6307.20.0000   11.40               KG   LIFEJACKETS AND
                                                    LIFEBELTS
            6307.90.6010   8.50                KG   PERINEAL TOWELS, FABRIC
                                                    WITH PAPER BASE
            6307.90.6090   8.50                KG   OTHER SURGICAL DRAPES,
                                                    FABRIC WITH PAPER BASE
            6307.90.7010   14.40               KG   SURGICAL DRAPES,
                                                    DISPOSAL & NONWOVEN MMF
            6307.90.7020   8.50                KG   SURGICAL DRAPES NES
            6307.90.7500   8.50                NO   TOYS FOR PETS, TEXTILE
                                                    MATERIALS
            6307.90.8500   8.50                KG   WALL BANNERS, MANMADE
                                                    FIBERS
            6307.90.9425   14.50               NO   NATIONAL FLAGS OF THE
                                                    UNITED STATES
            6307.90.9435   14.50               NO   NATIONAL FLAGS OF
                                                    NATIONS OTHER THAN THE
                                                    UNITED STATES
            6307.90.9490   14.50               KG   OTHER MADE-UP ARTICLES
                                                    NES
            6309.00.0010   8.50                KG   WORN CLOTHING & OTHER
                                                    WORN ARTICLES
            6309.00.0020   8.50                KG   WORN CLOTHING & OTHER
                                                    WORN ARTICLES, NES
            6310.10.1000   3.70                KG   RAGS/SCRAP/TWINE/CORDAG
                                                    E/ROPE/CABLES, SORTED,
                                                    WOOL OR FINE ANIMAL
                                                    HAIR
            6310.10.2010   8.50                KG   RAGS/SCRAP/TWINE/CORDAG
                                                    E/ROPE/CABLES, SORTED,
                                                    COTTON
            6310.10.2020   14.40               KG   RAGS/SCRAP/TWINE/CORDAG
                                                    E/ROPE/CABLES, SORTED,
                                                    MMF
            6310.10.2030   11.10               KG   RAGS/SCRAP/TWINE/CORDAG
                                                    E/ROPE/CABLES, SORTED,
                                                    NOT COTTON/MMF
            6310.90.1000   3.70                KG   RAGS/SCRAP/TWINE/CORDAG
                                                    E/ROPE/CABLES, NOT
                                                    SORTED, WOOL OR FINE
                                                    ANIMAL HAIR

                              Annex 300-B                                   

            U.S.            U.S.
            Harmonized            Harmonized
            System                     Primary            System            
        Primary
            Statistical    Conversion  Unit of            Statistical   
Conversion  Unit of
            Provision  Factor   Measure        Description           
Provision  Factor   Measure        Description
            

            6310.90.2000   8.50                KG   RAGS/SCRAP/TWINE/CORDAG
                                                    E/ROPE/CABLES, NOT
                                                    SORTED, NOT WOOL
            6501.00.30 4.4             DZ      HAT FORMS/BODIES, NOT
                                               BLOCKED, NO BRIMS, FUR,
                                               MEN'S AND BOYS'
            6501.00.60 4.4             DZ      HAT FORMS/BODIES, NOT
                                               BLOCKED, NO BRIMS, FUR,
                                               WOMEN'S AND GIRLS'
            6502.00.20 18.7            DZ      HAT SHAPES, ASSEMBLED FROM
                                               STRIPS, VEGETABLE FIBER,
                                               SEWED
            6502.00.40 18.7            DZ      HAT SHAPES, PLAITED OR
                                               ASSEMBLED FROM STRIPS,
                                               VEGETABLE FIBER, NOT-SEWED,
                                               NOT BLEACHED/COLORED
            6502.00.60 18.7            DZ      HAT SHAPES, PLAITED OR
                                               ASSEMBLED FROM STRIPS,
                                               VEGETABLE FIBER, NOT-SEWED,
                                               BLEACHED/COLORED
            6503.00.30 5.8             DZ      FELT HATS AND OTHER
                                               HEADGEAR, MEN'S AND BOYS'
            6503.00.60 5.8             DZ      FELT HATS AND OTHER
                                               HEADGEAR, NES
            6504.00.30 7.5             DZ      HATS AND OTHER HEADGEAR,
                                               ASSEMBLED FROM STRIPS,
                                               VEGETABLE FIBER, SEWED
            6504.00.60 7.5             DZ      HATS AND OTHER HEADGEAR,
                                               ASSEMBLED FROM STRIPS
            6601.10.00 17.9            DZ      GARDEN OR SIMILAR UMBRELLAS
            6601.91.00 17.8            DZ      OTHER UMBRELLAS, TELESCOPIC
                                               SHAFT
            6601.99.00 11.2            DZ      OTHER UMBRELLAS, NES
            8708.21.00 2.72            KG      SAFETY SEAT BELTS

            5.   (a)   The primary unit of measure for the following
                       tariff items in U.S. category 666 shall be NO and
                       shall be converted into SME by a factor of 5.5:

            6301.10.0000   ELECTRIC BLANKETS
            6301.40.0010   BLANKETS (NOT ELECTRIC) & TRAVEL RUGS OF
                           SYNTHETIC FIBER, WOVEN
            6301.40.0020   BLANKETS (NOT ELECTRIC) & TRAVEL RUGS OF
                           SYNTHETIC FIBER, NES

                        Annex 300-B                                         

            6301.90.0010   BLANKETS AND TRAVELING RUGS OF ARTIFICIAL FIBER
            6302.10.0020   BED LINEN, KNITTED OR CROCHETED FABRIC,
                           EXCLUDING COTTON
            6302.22.1030   SHEETS WITH TRIM, NAPPED, PRINTED, MANMADE FIBER
            6302.22.1040   SHEETS WITH TRIM, NOT NAPPED, PRINTED, MANMADE
                           FIBER 
            6302.22.1050   BOLSTER CASES WITH TRIM, PRINTED, MANMADE FIBER 
            6302.22.1060   BED LINEN WITH TRIM, PRINTED, MANMADE FIBER, NES

            6302.22.2020   SHEETS, NOT TRIMMED, PRINTED, MANMADE FIBER
            6302.22.2030   BED LINEN, NOT TRIMMED, PRINTED, MANMADE FIBER,
                           NES
            6302.32.1030   SHEETS WITH TRIM, NAPPED, MANMADE FIBER
            6302.32.1040   SHEETS WITH TRIM, NOT NAPPED, MANMADE FIBER
            6302.32.1050   BOLSTER CASES WITH TRIM, MANMADE FIBER 
            6302.32.1060   BED LINEN WITH TRIM, MANMADE FIBER, NES
            6302.32.2030   SHEETS, NOT TRIMMED, NAPPED, MANMADE FIBER 
            6302.32.2040   SHEETS NOT TRIMMED, NOT NAPPED, MANMADE FIBER
            6302.32.2050   BOLSTER CASES, NOT TRIMMED, MANMADE FIBER 
            6302.32.2060   BED LINEN NES, MANMADE FIBER
            6304.11.2000   BEDSPREADS, KNIT/CROCHETED, MANMADE FIBER
            6304.19.1500   BEDSPREADS WITH TRIM, MANMADE FIBER, NES
            6304.19.2000   BEDSPREADS, MANMADE FIBER, NES

                 (b)   The primary unit of measure for the following
                       tariff items in U.S. category 666 shall be NO and
                       shall be converted into SME by a factor of 0.9:

            6302.22.1010   PILLOWCASES WITH TRIM, PRINTED, NAPPED, MANMADE
            FIBER 
            6302.22.1020   PILLOWCASES WITH TRIM, PRINTED, NOT NAPPED,
                           MANMADE FIBER
            6302.22.2010   PILLOWCASES, NOT TRIMMED, PRINTED, MANMADE FIBER

            6302.32.1010   PILLOWCASES WITH TRIM, NAPPED, MANMADE FIBER 
            6302.32.1020   PILLOWCASES WITH TRIM, NOT NAPPED, MANMADE FIBER
            6302.32.2010   PILLOWCASES, NOT TRIMMED, NAPPED, MANMADE FIBER
            6302.32.2020   PILLOWCASES NOT TRIMMED, NOT NAPPED, MANMADE
                           FIBER

            6.   The primary unit of measure for garment parts of
            subheadings 6117.90 and 6217.90 shall be KG and shall be
            converted into SME by applying the following factors:

            Cotton apparel                           8.50
            Wool apparel                             3.70
            Man-made fiber apparel                  14.40
            Other non-cotton vegetable fiber apparel     12.50

                              Annex 300-B                                   

            7.   For the purposes of this Schedule:

                       DPR means dozen pair;
                       DZ means dozen;
                       KG means kilogram;
                       NO means number; and
                       SM means square meter.


                                      Appendix 5.1

                              Bilateral Emergency Actions
                              (Quantitative Restrictions)


                 As between Canada and the United States, actions otherwise
            permitted under Section 5 shall be governed by Article 407 of
            the Canada - United States Free Trade Agreement, which is
            hereby incorporated into and made a part of this Agreement
            solely for that purpose.



                                       Appendix 6

                                   Special Provisions


            A.  Rules Applicable to Certain Carpets and Sweaters

                 For purposes of trade between Mexico and the United
            States, a good of either Party of HS Chapter 57, subheading
            6110.30, 6103.23 or 6104.23 shall be treated as if it were an
            originating good only if any of the following changes in tariff
            classification is satisfied within the territory of one or more
            of the Parties:

                 (a)   a change to subheading 5703.20 or 5703.30 or
                       heading 57.04 from any heading outside Chapter 57
                       other than headings 51.06 through 51.13, 52.04
                       through 52.12, 53.08, 53.11 or any headings of
                       Chapter 54 or 55; or a change to any other heading
                       or subheading of Chapter 57 from any heading
                       outside that chapter other than headings 51.06
                       through 51.13, 52.04 through 52.12, 53.08, 53.11,
                       any heading of Chapter 54 or 55.08 through 55.16;
                       and

                                 Annex 300-B                                

                 (b)   a change to U.S. tariff item 6110.30.10.10,
                       6110.30.10.20, 6110.30.15.10, 6110.30.15.20,
                       6110.30.20.10, 6110.30.20.20, 6110.30.30.10,
                       6110.30.30.15, 6110.30.30.20, or 6110.30.30.25 or
                       Mexican tariff item 6110.30.01, or a good of those
                       tariff items that is classified as part of an
                       ensemble in subheading 6103.23 or 6104.23, from any
                       heading outside Chapter 61 other than headings
                       51.06 through 51.13, 52.04 through 52.12, 53.07
                       through 53.08, 53.10 through 53.11, any heading of
                       Chapter 54 or 55, 60.01 or 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; or a change to any other tariff
                       item of subheading 6110.30 from any heading outside
                       Chapter 61 other than headings 51.06 through 51.13,
                       52.04 through 52.12, 53.07 through 53.08, 53.10
                       through 53.11, any heading of Chapter 54, 55.08
                       through 55.16, 60.01 or 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.  


            B.  Preferential Tariff Treatment for Non-Originating Goods of
            Another Party

            Apparel and Made-Up Goods

            1.   (a)   Each Party shall apply the rate of duty applicable
                       to originating goods set out in its Schedule to
                       Annex 302.2, and in accordance with Appendix 2.1,
                       up to the annual quantities specified in Schedule
                       6.B.1, in SME, to apparel goods provided for in
                       Chapters 61 and 62 that are both cut (or knit to
                       shape) and sewn or otherwise assembled in the
                       territory of a Party from fabric or yarn produced
                       or obtained outside the free trade area, and that
                       meet other applicable conditions for preferred
                       tariff treatment under this Agreement.  The SME
                       shall be determined in accordance with the
                       conversion factors set out in Schedule 3.1.3.

                 (b)   The annual tariff preference levels (TPLs) of
                       imports from Canada into the United States shall be
                       adjusted annually for five consecutive years
                       commencing on January 1, 1995, by the following
                       growth factors:

                                  Annex 300-B                               

                       (i)      for cotton or man-made fiber apparel, 2
                                percent,

                       (ii)     for cotton or man-made fiber apparel made
                                from fabrics woven or knit in a non-Party,
                                1 percent, and 

                       (iii)    for wool apparel, 1 percent.

            2.   The United States shall apply the rate of duty applicable
            to originating goods set out in its Schedule to Annex 302.2,
            and in accordance with Appendix 2.1, up to the annual quantity
            specified in Schedule 6.B.1, to textile or apparel goods
            provided for in Chapters 61, 62 and 63 that are sewn or
            otherwise assembled in Mexico as provided for in U.S. tariff
            item 9802.00.80.60 from fabric which is knit or woven outside
            the territory of the United States or Mexico, when exported to
            the United States.  This paragraph shall not apply after
            quantitative restrictions established pursuant to the
            Multifiber Arrangement or any successor agreement are
            terminated.

            Exceptions

            3.   As between Mexico and the United States:

                 (a)   apparel goods provided for in Chapters 61 and 62 of
                       the HS, in which the fabric that determines the
                       tariff classification of the good is classified in
                       one of the following tariff provisions, are
                       ineligible for preferential tariff treatment
                       provided for under the levels established in
                       Schedule 6.B.1

                       (i)      blue denim: subheadings 5209.42 and
                                5211.42, U.S. tariff items 5212.24.60.20,
                                and 5514.32.00.10 or Mexican tariff items
                                5212.24.xx and 5514.32.xx; and

                       (ii)     fabric woven as plain weave where two or
                                more warp ends are woven as one (oxford
                                cloth) of average yarn number less than 135
                                metric number: 5208.19, 5208.29, 5208.39,
                                5208.49, 5208.59, 5210.19, 5210.29,
                                5210.39, 5210.49, 5210.59, 5512.11,
                                5512.19, 5513.13, 5513.23, 5513.33, and
                                5513.43;
             
                               Annex 300-B                                  

                 (b)   apparel goods provided for in U.S. tariff items
                       6107.11.00, 6107.12.00, 6109.10.00 and 6109.90.00
                       or Mexican tariff items 6107.11.01, 6107.12.01,
                       6109.10.01 and 6109.90.01 are ineligible for
                       preferential tariff treatment provided for under
                       the levels established in Schedule 6.B.1 if they
                       are composed chiefly of circular knit fabric of
                       yarn number equal to or less than 100 metric
                       number.  Apparel goods provided for in subheadings
                       6108.21 and 6108.22 are ineligible for preferential
                       tariff treatment provided for under the levels
                       established in parts 2(a), 2(b), 3(a) and 3(b) in
                       Schedule 6.B.1 if they are composed chiefly of
                       circular knit fabric of yarn number equal to or
                       less than 100 metric number; and

                 (c)   apparel goods provided for in U.S. tariff items
                       6110.30.10.10, 6110.30.10.20, 6110.30.15.10,
                       6110.30.15.20, 6110.30.20.10, 6110.30.20.20,
                       6110.30.30.10, 6110.30.30.15, 6110.30.30.20,
                       6110.30.30.25 and items of those tariff items that
                       are classified as parts of ensembles in U.S. tariff
                       items 6103.23.00.30, 6103.23.00.70, 6104.23.00.22
                       and 6104.23.00.40 or Mexican tariff item 6110.30.01
                       or goods of that tariff item that are classified as
                       parts of ensembles in subheading 6103.23 or 6104.23
                       are ineligible for preferential tariff treatment
                       provided for under the levels established in
                       Schedule 6.B.1.

            Fabric and Made-Up Goods

            4.   (a)   Each Party shall apply the rate of duty applicable
                       to originating goods set out in its Schedule to
                       Annex 302.2, and in accordance with Appendix 2.1,
                       up to the annual quantities specified in Schedule
                       6.B.2, in SME, to cotton or man-made fiber fabric
                       and cotton or man-made fiber made-up textile goods
                       provided for in Chapters 52 through 55, 58, 60, and
                       63 that are woven or knit in a Party from yarn
                       produced or obtained outside the free trade area,
                       or knit in a Party from yarn spun in a Party from
                       fiber produced or obtained outside the free trade
                       area, and to goods of subheading 9404.90 that are
                       finished and cut and sewn or otherwise assembled
                       from fabrics of subheadings 5208.11 through
                       5208.29, 5209.11 through 5209.29, 5210.11 through
                       5210.29, 5211.11 through 5211.29, 5212.11, 5212.12,

                                    Annex 300-B                             

                       5212.21, 5212.22, 5407.41, 5407.51, 5407.71,
                       5407.81, 5407.91, 5408.21, 5408.31, 5512.11,
                       5512.21, 5512.91, 5513.11 through 5513.19, 5514.11
                       through 5514.19, 5516.11, 5516.21, 5516.31,
                       5516.41, 5516.91 produced or obtained outside the
                       free trade area, and that meet other applicable
                       conditions for preferred tariff treatment under
                       this Agreement.  The SME shall be determined in
                       accordance with the conversion factors set out in
                       Schedule 3.1.3.

                 (b)   The annual TPL and sub-levels on imports from
                       Canada into the United States shall be adjusted by
                       an annual growth factor of two percent for five
                       consecutive years commencing on January 1, 1995.

            5.   For purposes of paragraph 4, the number of SME that will
            be counted against the TPLs applied as between Canada and the
            United States shall be:

                 (a)   for textile goods that are not originating because
                       certain non-originating textile materials do not
                       undergo the applicable change in tariff
                       classification set out in Annex 401 for that good,
                       but where such materials are 50 percent or less by
                       weight of the materials of that good, only 50
                       percent of the SME for that good, determined in
                       accordance with the conversion factors set out in
                       Schedule 3.1.3; and 

                 (b)   for textile goods that are not originating because
                       certain non-originating textile materials do not
                       undergo the applicable change in tariff
                       classification set out in Annex 401 for that good,
                       but where such materials are more than 50 percent
                       by weight of the materials of that good, 100
                       percent of the SME for that good, determined in
                       accordance with the conversion factors set out in
                       Schedule 3.1.3.

            Spun Yarn

            6.   (a)   Each Party shall apply the rate of duty applicable
                       to originating goods set out in its Schedule to
                       Annex 302.2, and in accordance with Appendix 2.1,
                       up to the annual quantities specified in Schedule
                       6.B.3, in kilograms (kg), to cotton or man-made
                       fiber yarns provided for in headings 52.05 through

                                  Annex 300-B                               

                       52.07 or 55.09 through 55.11 that are spun in a
                       Party from fiber of headings 52.01 through 52.03 or
                       55.01 through 55.07, produced or obtained outside
                       the free trade area and that meet other applicable
                       conditions for preferred tariff treatment under
                       this Agreement.

                 (b)   The annual TPL on imports from Canada into the
                       United States shall be adjusted by an annual growth
                       factor of two percent for five consecutive years
                       commencing on January 1, 1995. 

            7.   Textile or apparel goods that enter the territory of a
            Party under paragraph 1, 2, 4 or 6 shall not be considered to
            be originating goods.

            Review and Consultations

            8.   (a)   Trade in the goods referred to in paragraphs 1, 2,
                       4 and 6 shall be monitored by the Parties.  On
                       request of any Party wishing to adjust any annual
                       TPL for imports into Canada from Mexico or the
                       United States, imports into Mexico from Canada or
                       the United States, or imports into the United
                       States from Mexico, based on the ability to obtain
                       supplies of particular fibers, yarns and fabrics,
                       as appropriate, that can be used to produce
                       originating goods, the Parties shall consult with a
                       view to adjusting such level.  Any adjustment in
                       the TPL requires the mutual consent of the Parties
                       concerned.

                 (b)   Canada and the United States shall decide, in the
                       review referred to in Section 7(3), whether to
                       continue to apply annual growth factors to the
                       specified TPLs after the five consecutive years. 
                       If a growth factor for a TPL is not continued as a
                       result of the review, subparagraph (a) shall also
                       apply to imports from Canada into the United States
                       of goods covered by the TPL.

                                 Annex 300-B                                

                                     Schedule 6.B.1

                   Preferential Tariff Treatment for Non-Originating
                               Apparel and Made-Up Goods



             1. Imports into Canada:         from Mexico       from United
                                                            States
             (a) Cotton or Man-made         6,000,000 SME
             fiber apparel                                    9,000,000 SME
                                             250,000 SME
             (b) Wool apparel                                  919,740 SME
             2. Imports into Mexico:         from Canada       from United
                                                            States
             (a) Cotton or Man-made         6,000,000 SME
             fiber apparel                                   12,000,000 SME
                                             250,000 SME
             (b) Wool apparel                                 1,000,000 SME


             3. Imports into United          from Canada       from Mexico
             States:
                                           80,000,000 SME1   45,000,000 SME
             (a) Cotton or Man-made
             fiber apparel                  5,066,948 SME2    1,500,000 SME

             (b) Wool apparel
                                                 n/a         25,000,000 SME
             (c) Goods imported under
             U.S. tariff item
             9802.00.80.60

            ____________________________

                 1  Of the 80,000,000 SME annual quantity of cotton or man-
            made fiber apparel imports from Canada into the United States,
            no more than 60,000,000 SME shall be made from fabrics which
            are knit or woven in a non-Party.

                 2  Of the 5,066,948 SME annual quantity of wool apparel
            imports from Canada into the United States, no more than
            5,016,780 SME shall be men's or boys' wool suits of U.S.
            category 443.

                                 Annex 300-B                                


                                     Schedule 6.B.2

                   Preferential Tariff Treatment for Non-Originating
                   Cotton or Man-made Fiber Fabrics and Made-Up Goods



             Imports into Canada        from Mexico      from United States

                                       7,000,000 SME       2,000,000 SME1
             Imports into Mexico        from Canada      from United States

                                       7,000,000 SME        2,000,000 SME

             Imports into United        from Canada          from Mexico
             States
                                      65,000,000 SME2      24,000,000 SME3





            ____________________________

                 1  The 2,000,000 SME annual quantity of imports from the
            United States into Canada shall be limited to goods of chapter
            60 of the HS.

                 2  Of the 65,000,000 SME annual quantity of imports from
            Canada into the United States, no more than 35,000,000 SME may
            be in goods of chapters 52 through 55, 58 and 63 (other than
            subheading 6302.10, 6302.40, 6303.11, 6303.12, 6303.19, 6304.11
            or 6304.91) of the HS; and no more than 35,000,000 SME may be
            in goods of chapter 60 and subheading 6302.10, 6302.40,
            6303.11, 6303.12, 6303.19, 6304.11 or 6304.91 of the HS.

                 3  Of the 24,000,000 SME annual quantity of imports from
            Mexico into the United States, no more than 18,000,000 SME may
            be in goods of chapter 60 and subheading 6302.10, 6302.40,
            6303.11, 6303.12, 6303.19, 6304.11 or 6304.91 of the HS; and no
            more than 6,000,000 SME may be in goods of chapters 52 through
            55, 58 and 63 (other than subheading 6302.10, 6302.40, 6303.11,
            6303.12, 6303.19, 6304.11 or 6304.91) of the HS.

                             Annex 300-B                                    

                                     Schedule 6.B.3

                   Preferential Tariff Treatment for Non-Originating
                           Cotton or Man-made Fiber Spun Yarn



             Imports into Canada        from Mexico      from United States

                                       1,000,000 kg         1,000,000 kg
             Imports into Mexico        from Canada      from United States

                                       1,000,000 kg         1,000,000 kg

             Imports into United        from Canada          from Mexico
             States
                                       10,700,000 kg        1,000,000 kg

                                   Annex 300-B                              

                                   Appendix 10.1

                              Country-Specific Definitions


            Definitions Specific to Canada

            general import statistics means statistics issued by Statistics
            Canada or, where available, import permit data provided by the
            Export and Import Permits Bureau of the Department of External
            Affairs and International Trade, or their successors.


            Definitions Specific to Mexico

            general import statistics means the statistics of the "Sistema
            de Informacion Comercial" (Trade Information System) or its
            successor.


            Definitions Specific to the United States

            category means a grouping of textile or apparel goods defined
            in the Correlation: Textile and Apparel Categories with the
            Harmonized Tariff Schedule of the United States, 1992 (or
            successor publication), published by the United States
            Department of Commerce, International Trade Administration,
            Office of Textiles and Apparel, Trade and Data Division,
            Washington, D.C.; and

            general import statistics means statistics of the U.S. Bureau
            of the Census or its successor.

Title:Rules of Origin -- Chapter Four
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:70725

                                      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) of the 
                           Harmonized System, or  
 
                      (ii) the heading for 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 of 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: 
 
                                          TV - VNM 
                           RVC       =         -------------- x 100 
                                             TV 
 
                 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: 
 
 
                                          NC - VNM 
                           RVC       =    -------------- x 100   
                                             NC 
 
                 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 (2)(a)(i), 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 non-originating 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, of 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 after-sales 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 after-sales 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 after-sales 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 511 (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 of the good, less the value of 
                                renewable scrap or by-product. 
 
            10.  Except as provided in Article 403(1) and for a component 
            identified in Annex 403.2, the producer of a good may, for 
            purposes of calculating the regional value content of the good 
            under paragraph 2 or 3, designate any self-produced material 
            used in the production of the good as an intermediate material, 
            provided that where the intermediate material is subject to a 
            regional value-content requirement, no other self-produced 
            material 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 of 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 of 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 
            of 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 to 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 8708.40, 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 
                           heading 87.01, subheading 8702.yy (vehicles for 
                           the transport of 16 or more persons), 8704.10, 
                           8704.22, 8704.23, 8704.32 or 8704.90, or heading 
                           87.05 or 87.06, 
              
                      (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, if 
 
                      (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 
                      and less than 6 percent by weight of grain or grain 
                      products);  
 
                 (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 63 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 non-originating 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 it 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 non-originating 
            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 value-content 
            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 non-originating 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 value-content 
                      requirement. 
 
 
            Article 411:   Transshipment 
 
                 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:   Non-Qualifying 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 
 
            For purposes of this Chapter: 
 
                 (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 of 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. 
 
 
            Article 415:   Definitions  
 
            For purposes of this Chapter: 
 
            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 non-Party; 
 
                 (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 to 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 of 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 
            after-sales service costs, royalties, shipping and packing 
            costs, and non-allowable 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 of 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, die-setting, software 
                      design and similar computer services, or other 
                      services; 
 
            sales promotion, marketing and after-sales service costs means 
            the following costs related to sales promotion, marketing and 
            after-sales 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 
                      after-sales service personnel;  
 
                 (d)  recruiting and training of sales promotion, marketing 
                      and after-sales service personnel, and after-sales 
                      training of customers' employees, where such costs 
                      are identified separately for sales promotion, 
                      marketing and after-sales 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 
                      after-sales service of goods, where such costs are 
                      identified separately for sales promotion, marketing 
                      and after-sales 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 after-sales service of goods on the 
                      financial statements or cost accounts of the 
                      producer; 
 
                 (h)  rent and depreciation of sales promotion, marketing 
                      and after-sales 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 after-sales 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): 
 
                      (i)  85 or less cubic feet of passenger and luggage 
                           interior volume,  
 
                      (ii) between 85 and 100 cubic feet of passenger and 
                           luggage interior volume,  
 
                      (iii)     100 to 110 cubic feet of passenger and 
                                luggage interior volume,  
 
                      (iv) between 110 and 120 cubic feet of passenger and 
                           luggage interior volume, and 
 
                      (v)  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 to 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 403(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 (rear-view 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 (engines of a cylinder capacity exceeding 250cc but not 
            exceeding 1000cc) 
            8407.34.aa (engines of a cylinder capacity exceeding 1000cc but 
            not exceeding 2000cc); 
            8407.34.bb (engines of a cylinder capacity exceeding 2000cc) 
            8408.20 (diesel engines for vehicles of Chapter 87) 
            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) 
 
                              Annex 403.1                                   
 
            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 servo-brakes, and parts thereof) 
            8708.40 (gear boxes, transmissions) 
            8708.50 (drive axles with differential, whether or not provided 
            with other transmission components) 
            8708.60 (non-driving axles, and parts thereof) 
            8708.70.aa (road wheels, but not parts or accessories thereof) 
            8708.80 (suspension shock-absorbers) 
            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 (half-shafts 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) 
   
                        Annex 403.1                                         
 
            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 charge-air 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 of 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 of 
            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 
 
                            Annex 403.3                                     

            CAMI is averaging its regional value content is closed for more 
            than two consecutive months: 
 
                 (a)  for the purpose of re-tooling 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, lock-out, 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. 
 
Title:Customs Procedures -- Chapter Five
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:46776

                                     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 of 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. 
 
            3.   Each Party shall: 
 
                 (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 of 
 
                      (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 of 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 tariff 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 it 
                      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 of 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  
 
            1.   Each Party shall provide that: 
 
                 (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 of 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 of 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 of 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 to 
 
                      (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 of 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 of 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 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 of 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 of 
            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 502(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 
 
 
            Articles 509:  Advance Rulings 
 
            1.   Each Party shall, through its customs administration, 
            provide for the expeditious issuance of 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 duty-free 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 300-B (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 300-B, 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 duty-free 
                           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 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 determinations of origin 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 to 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 
                      quasi-judicial 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 to 
 
                      (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 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; 
 
                 (c)  a measure establishing or significantly modifying an 
                      administrative policy that is likely to 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 customs-related 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 
                      customs-related 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 customs-related 
                      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 of 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 to 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 of 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. 
 
 
            Article 514:   Definitions 
 
            For purposes of this Chapter: 
 
            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.  

Title:Energy and Basic Petrochemicals -- Chapter Six
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:25625

                                      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. 
 
 
            Article 602:   Scope and Coverage 
 
            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 50 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 of 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 non-Party; or 
 
                 (b)  requiring as a condition of export of such energy or 
                      basic petrochemical good of the Party to 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 36-month 
                      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 to 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 of 
                      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. 
 
 
            Article 609:   Definitions 
 
            For purposes of this Chapter: 
 
            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 "cross-border trade in 
            services" as defined in Article 1213 (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 of 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), private investment is not 
            permitted in the activities listed in paragraph 1.  Chapter 
 
                                Annex 602.3                                 
 
            Twelve (Cross-Border 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 of 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 end-users, 
            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 of 
            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 of 
                      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 
 
                               Annex 602.3                                  

                      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 of 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 603 
 
 
                 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 blending 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 of petroleum oils or of oils obtained 
                      from bituminous minerals. 
 
                              Annex 603.6                                   

            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 605 
 
                                Exception to Article 605 
 
 
                 Notwithstanding any other provision of this Chapter, the 
            provisions of Article 605 shall not apply as between the other 
            Parties and Mexico. 
 
                                       Annex 607                            
  
                                   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. 

 Title:Agriculture and Sanitary and Phytosanitary Measures -- Chap. 7
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:129142
 
                                     Chapter Seven 
 
                  Agriculture and Sanitary and Phytosanitary Measures 
 
 
                                Section A - Agriculture 
 
            Article 701:    Scope and Coverage 
 
            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 (Tariff 
            Elimination). 
 
            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 to 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 to 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 of 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 of 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. 
 
 
            Article 708:    Definitions 
 
            For purposes of this Section: 
 
            agricultural good means a good provided for in any of the 
            following: 
 
                 (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) 
 
            (For purposes of reference only, descriptions are provided next 
            to the corresponding tariff provision.) 
 
            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 of 
                                                              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) 
 
            (For purposes of reference only, descriptions are provided next 
            to the corresponding tariff provision.) 
 
            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 of 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 to 
            agricultural, food, beverage and certain related goods, 
            including exemptions by virtue of 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 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. 
 
            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 
            to 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 to that good. 
 
                              Annex 703.2                                   
 
            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 to 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 to 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, if any 
                      material provided for in HS heading 1701.99 used in 
                      the production of that good is not a qualifying good. 
 
                                    Annex 703.2                             
 
            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)  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)  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 of 
            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 to 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 
 
                                    Annex 703.2                             
  
            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 to 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- 
 
                                   Annex 703.2                              
 
            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 of 
 
                                  Annex 703.2                               
 
                      (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 of 
 
                      (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 
 
                               Annex 703.2                                  
 
            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); 
 
                                      Annex 703.2                           

            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 
            to 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.  
 
                                  Annex 703.2                               
 
            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 
 
                                  Annex 703.2                               
 
            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 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 
 
            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: 
 
                                Annex 703.2                                 

            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) of the  
                      General Import Duty Act ("Ley del Impuesto General de 
                      Importaci n"); 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 
 
 
                                   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)) 
 
            (For purposes of reference only, descriptions are provided next 
            to the corresponding tariff provision). 
 
                              Annex 703.2                                   
 
                             Schedule of the United States 
 
            U.S. Tariff Item                   Description 
 
            2009.11.00                         (Orange juice, frozen) 
            2009.19.20                         (Orange juice, not frozen, 
                                               not concentrated (single- 
                                               strength orange juice)) 
 
            (For purposes of reference only, descriptions are provided next 
            to the corresponding tariff provision). 
 
 
                                  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 
 
                           Annex 703.2                                      
 
                            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 of 
 
                      (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: 
 
 
                                            Sb -  Se    
                                     F =                 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, 
 
                                 Annex 703.2                                

                                calculated in accordance with the following 
                                formula: 
 
                            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 to prepare such statistics. 
 
            6.   Statistics on production, consumption, trade and stocks 
                 shall be provided by: 
 
                 (a)  the Secretar a de Agricultura y Recursos Hidr ulicos, 
                      the Secretar a de Comercio y Fomento Industrial, and 
                      the Secretar a de Hacienda y Cr dito P blico; and 
 
                 (b)  the U.S. Department of Agriculture (USDA). 
 
                                   Annex 703.2                              
   
                                   Appendix 703.2.B.7 
 
                              Dairy, Poultry and Egg Goods 
 
 
                                   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 185 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 
 
                              Annex 703.2                                   
 
                                     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 
 
                                   Annex 703.2                              
 
                                     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, fresh, 
                                     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. 
 
                                Annex 703.2                                 
 
            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. 
 
                                 Annex 703.2                                
 
            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. 
 
            (For purposes of reference only, descriptions are provided next 
            to the corresponding tariff provision.) 
 
 
                                   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 
 
                               Annex 703.2                                  
 
            0207.10.01               Turkey 
            0207.10.99               Other 
            0207.21.01               Chickens 
            0207.22.01               Turkey 
            0207.39.01               Paste 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               Paste (not provided for in heading 
                                     16.01 or 16.02) 
            0207.41.99               Other 
            0207.42.01               Paste (not provided for in heading 
                                     16.01 or 16.02) 
            0207.42.99               Other 
            0207.50.01               Poultry livers, frozen 
            0209.00.01               Chicken or turkey fat 
            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 
 
                                 Annex 703.2                                
 
            0406.10.01               Fresh cheese, including whey cheese 
            0406.20.01               Cheese, grated or powdered 
            0406.30.01               Melted cheese, not grated or powdered 
            0406.30.99               Other, melted cheese 
            0406.40.01               Blue veined cheese 
            0406.90.01               Hard paste cheese called sardo 
            0406.90.02               Hard paste reggi cheese 
            0406.90.03               Soft paste cologne cheese 
            0406.90.04               Hard or semi-hard cheeses with a fat 
                                     content by weight less than or equal 
                                     to 40 percent, and with a water 
                                     content by weight in non-fat matter 
                                     less than or equal to 47 percent 
                                     (called "grana", "parmigiana" or 
                                     "reggiano,") or with a non-fat matter 
                                     content by weight over 47 percent 
                                     without exceeding 72 percent (called 
                                     "danloo, edam, fontan, fontina, fynbo, 
                                     gouda, Avarti, maribo, samsoe, esron, 
                                     italico, kernhem, Saint-Nectaire, 
                                     Saint-Paulin, or talegi l") 
            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 703.2                                  
          (For purposes of reference only, descriptions are provided next 
          to the corresponding tariff provision.) 
 
 
                                     Annex 703.3 
 
                               Special Safeguard Goods 
 
 
                     Section A - Canadian Special Safeguard Goods 
 
 
          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. 
 
          (For purposes of reference only, descriptions are provided next 
          to the corresponding tariff provision.) 
 
 
                                  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 
 
                                   Annex 703.3                              
 
          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. 
 
          (For purposes of reference only, descriptions are provided next 
          to the corresponding tariff provision.) 
 
 
                              Section C - United States 
 
          Note:     "X" indicates that a new tariff item will be 
                    established for this item 
 
          U.S. Tariff Items        Description 
 
                                   Annex 703.3                              
 
          0702.00.XX               Tomatoes (except cherry tomatoes), fresh 
                                   or chilled; if entered during the period 
                                   from November 15 to the last day of the 
                                   following February, inclusive 
          0702.00.XX               Tomatoes (except cherry tomatoes), fresh 
                                   or chilled; if entered during the period 
                                   from March 1 to July 14, inclusive 
          0703.10.XX               Onions and shallots, fresh or chilled 
                                   (not including onion sets and not        
                            ___      
                   ___ 
                                   including pearl onions not over 16 mm in 
                                   diameter) if entered January 1 to April 
                                   30, inclusive 
          0709.30.XX               Eggplants (aubergines), fresh or 
                                   chilled, if entered during the period 
                                   from April 1 to June 30, inclusive 
          0709.60.XX               "Chili" peppers; if entered during the 
                                   period from October 1 to July 31, 
                                   inclusive (current 0709.60.00.20) 
          0709.90.XX               Squash, fresh or chilled; if entered 
                                   during the period from October 1 to the 
                                   following June 30, inclusive 
          0807.10.XX               Watermelons, fresh; if entered during 
                                   the period from May 1 to September 30, 
                                   inclusive. 
 
          (For purposes of reference only, descriptions are provided next 
          to the corresponding tariff provision.) 
 
                   Section B - Sanitary and Phytosanitary Measures 
 
          Article 709:    Scope and Coverage 
 
               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 of 
          another Party, or between goods of another Party and like goods 
          of any other country, where identical or similar conditions 
          prevail. 
 
          Unnecessary Obstacles 
 
          5.   Each Party shall ensure that any sanitary or phytosanitary 
          measure that it adopts, maintains or applies is applied only to 
          the extent necessary to achieve its appropriate level of 
          protection, taking into account technical and economic 
          feasibility. 
 
          Disguised Restrictions 
 
          6.    No Party may adopt, maintain or apply any sanitary or 
          phytosanitary measure with a view to, or with the effect of, 
          creating a disguised restriction 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 Party shall use, as a basis for its 
          sanitary and phytosanitary measures, relevant international 
          standards, guidelines or recommendations with the objective, 
          among others, of making its sanitary and phytosanitary measures 
          equivalent or, where appropriate, identical to those of the other 
          Parties. 
 
          2.   A Party's sanitary or phytosanitary measure that conforms to 
          a relevant international standard, guideline or recommendation 
          shall be presumed to be consistent with Article 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 to 
                    subparagraph (b), that the exporting Party's measure 
                    achieves the importing Party's appropriate level of 
                    protection; 
 
               (b)  may, where it has a scientific basis, determine that 
                    the exporting Party's measure does not achieve the 
                    importing Party's appropriate level of protection; and 
            
               (c)  shall 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 to facilitate access in its territory and to 
          provide assistance necessary to facilitate the conduct of the 
          importing Party's control or inspection procedure. 
 
          4.   A Party maintaining an approval procedure may require its 
          approval for the use of an additive, or its establishment of a 
          tolerance for a contaminant, in a food, beverage or feedstuff, 
          under 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 to the other Parties and publish 
                    the full text of the proposed measure, in such a manner 
                    as to enable interested persons to become acquainted 
                    with the proposed measure; 
 
               (b)  identify in 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 of 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 writing and 
                    shall, on request, discuss the comments and take the 
                    comments and the results of the discussions into 
                    account. 
 
          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 
          of responsibility of each such authority. 
 
          6.   Where an importing Party denies entry into its territory of 
          a good of another Party because it does not comply with a 
          sanitary or phytosanitary measure, the importing Party shall 
          provide a written explanation to the exporting Party, 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 at 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 of 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 it does not 
          consider the matter itself, by referring the matter for 
          non-binding technical advice or recommendations to a working 
          group, including an ad hoc working group, or to another forum.    
                         
__ ___ 
 
          4.   The Committee should consider any matter referred to it 
          under paragraph 3 as expeditiously as possible, particularly 
          regarding perishable goods, and promptly forward to the Parties 
          any technical advice or recommendations that it develops or 
          receives concerning the matter.  The Parties involved shall 
          provide a written response to the Committee concerning the 
          technical advice or recommendations within such time as the 
          Committee may request. 
 
          5.   Where the involved Parties have had recourse to 
          consultations facilitated by the Committee under paragraph 3, 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 of 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 of 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. 

Title:Emergency Action -- Chapter Eight
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:30583

                                     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, if 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 of 
 
                      (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 (Tariff 
                           Elimination) 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 of 
                      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 to 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 of 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 to 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 of 
                      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 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 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. 
 
 
            Article 805:   Definitions 
 
            For purposes of this Chapter: 
 
            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 of 
                           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;  
 
                                        Annex 803.3                         

                 (c)  import data - import data for each of the five most 
                      recent full years that form the basis of 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 of 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 
 
                                  Annex 803.3                               
 
            documents filed in the course of the proceeding may be 
            inspected, and the name, address and telephone number of the 
            office to 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 to 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 
 
                                     Annex 803.3                            
 
            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 
 
                              Annex 803.3                                   

                 (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 805                               
 
                              Country-Specific Definitions 
 
 
            For purposes of this Chapter: 
 
            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 ("Secretar a 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. 

Title:Technical Barriers to Trade -- CHapter Nine
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:54694
 
 
                                       PART THREE 
                              TECHNICAL BARRIERS TO TRADE 
 
                                      Chapter Nine 
 
                               Standards-Related Measures 
 
 
            Article 901:   Scope and Coverage 
 
            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 904 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 to service 
                      providers, of any other country. 
 
            Unnecessary Obstacles 
 
            4.   No Party may prepare, adopt, maintain or apply any 
            standards-related measure with a view to 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 of 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 to 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 of 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 from, 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 of 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, to 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 writing and 
                      shall, on request, discuss the comments and take the 
                      comments and the results of the discussions into 
                      account. 
 
            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 1(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 1(c) and (d). 
 
            4.   Where a Party considers it necessary to address an urgent 
            problem relating to safety or to 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 of the discussions into 
                      account. 
 
            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 it 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 of 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. 
 
 
            Article 911:   Technical Cooperation 
 
            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 of particular 
                      enterprises. 
 
 
            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 of 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 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. 
 
            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. 
 
 
            Article 915:   Definitions 
 
            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, to 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; 
 
                                  Annex 913.5.a-1 
 
 
                 (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 of 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 of compatibility 
            among, and review the implementation of, national 
            standards-related measures of 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. 
 
                             Annex 913.5.a-3 
 
 
            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 of 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. 

Title:Government Procurement -- Chapter ten
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:196086

                                       PART FOUR 
                                 GOVERNMENT PROCUREMENT 
 
                                      Chapter Ten 
 
                                 Government Procurement 
 
 
                             Section A - Scope and Coverage 
                                 and National Treatment 
 
 
            Article 1001:  Scope and Coverage 
 
            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, of 
 
                      (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 to 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 of 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 12 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 to 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 of 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 of 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 of 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 of 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 for 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. 
 
            3.   Each Party shall: 
 
                 (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 to 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 to 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 of 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 to 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 of additional suppliers permitted to participate 
            shall be limited only by the efficient operation of the 
            procurement system. 
 
            4.   Where an entity does not invite or admit a supplier to 
            tender, the entity shall, on request of 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 to prepare and 
                      submit tenders before the closing of the tendering 
                      procedures; 
 
                 (b)  in determining a time limit, 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 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 25 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 to 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 of 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 to 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 of 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 to 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 
            to 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, if 
            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 to the following 
            conditions, as applicable: 
 
                 (a)  in the absence of tenders in response to an open or 
                      selective tender, 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 of 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 of 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 to 
                      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 to 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 itself; 
 
                 (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 
 
 
            Article 1018:  Exceptions 
 
            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 to 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 of 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 to 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 of 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. 
 
            2.   Each Party shall: 
 
                 (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 to 
 
                      (i)  facilitate communication between the Parties, 
                           and 
 
                      (ii) answer, on request, all reasonable inquiries 
                           from other Parties to provide relevant 
                           information on matters covered by this Chapter. 
 
            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 
            to 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 or 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 or 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. 
 
 
            Article 1020:  Technical Cooperation 
 
            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 it 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)(c) 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 covered by this Chapter. 
 
            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 to 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 of 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, 
            to 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 to 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. 
 
 
            Article 1025:  Definitions 
 
            1.  For purposes of this Chapter: 
 
            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 
 
                              Annex 1001.1a-1                               

            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.  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 
 
                             Annex 1001.1a-1                                
 
            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 Act 
            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.   Secretar a de Gobernaci n (Ministry of Government) 
                 -    Centro Nacional de Estudios Municipales (National 
                      Center for Municipal Studies)   
                 -    Comisi n Calificadora de Publicaciones y Revistas 
                      Ilustradas (Illustrated Periodicals and Publications 
                      Classification Commission) 
                 -    Consejo Nacional de Poblaci n (National Population 
                      Council) 
                 -    Archivo General de la Naci n (General Archives of the 
                      Nation) 
                 -    Instituto Nacional de Estudios Hist ricos de la 
                      Revoluci n Mexicana (National Institute of Historical 
                      Studies on the Mexican Revolution) 
                 -    Patronato de Asistencia para la Reincorporaci n 
                      Social (Social Reintegration Assistance Foundation) 
                 -    Centro Nacional de Prevenci n de Desastres (National 
                      Disaster Prevention Center) 
                 -    Consejo Nacional de Radio y Televisi n (National 
                      Radio and Television Council) 
                 -    Comisi n Mexicana de Ayuda a Refugiados (Mexican 
                      Commission on Refugee Assistance) 
            2.   Secretar a de Relaciones Exteriores (Ministry of Foreign 
                 Relations) 
                 -    Secci n Mexicana de la Comisi n Internacional de 
                      L mites y Aguas M xico-EEUU (Mexican Section of the 
 
                                  Annex 1001.1a-1                           
 
                      International Boundary and Water Commission, Mexico 
                      and the United States) 
                 -    Secci n Mexicana de la Comisi n Internacional de 
                      L mites y Aguas M xico-Guatemala  (Mexican Section of 
                      the International Boundary and Water Commission, 
                      Mexico and Guatemala) 
            3.   Secretar a de Hacienda y Cr dito P blico (Ministry Finance 
                 and Public Credit) 
                 -    Comisi n Nacional Bancaria (National Banking 
                      Commission) 
                 -    Comisi n Nacional de Valores (National Securities 
                      Commission) 
                 -    Comisi n Nacional de Seguros y Fianzas (National 
                      Insurance and Bonds Commission) 
                 -    Instituto Nacional de Estad stica, Geograf a e 
                      Inform tica (National Institute of Statistics, 
                      Geography, and Informatics) 
            4.   Secretar a de Agricultura y Recursos Hidr ulicos (Ministry 
                 of Agriculture and Water Resources) 
                 -    Instituto Mexicano de Tecnolog a 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 Comercializaci n Agropecuaria 
                      (Aserca) (Support Services for Agricultural 
                      Marketing) 
            5.   Secretar a 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 of 
                 Transportation) 
            6.   Secretar a de Comercio y Fomento Industrial (Ministry of 
                 Commerce and Industrial Development) 
            7.   Secretar a de Educaci n P blica (Ministry of Public 
                 Education) 
                 -    Instituto Nacional de Antropolog a e Historia 
                      (National Institute of Anthropology and History) 
                 -    Instituto Nacional de Bellas Artes y Literatura 
                      (National Institute of Fine Arts and Literature) 
                 -    Radio Educaci n (Radio Education) 
                 -    Centro de Ingenier a y Desarrollo Industrial 
                      (Engineering and Industrial Development Center) 
                 -    Consejo Nacional para la Cultura y las Artes 
                      (National Council for Culture and the Arts) 
                 -    Comisi n Nacional del Deporte (National Sports 
                      Commission) 
 
                                 Annex 1001.1a-1                            

            8.   Secretar a de Salud (Ministry of Health) 
                 -    Administraci n del Patrimonio de la Beneficencia 
                      P blica (Public Charity Fund 
                      Administration) 
                 -    Centro Nacional de la Transfusi n Sangu nea (National 
                      Blood Transfusion Center) 
                 -    Gerencia General de Biol gicos 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 Comunicaci n Humana Dr. Andr s 
                      Bustamante Gurr a (Dr. Andr s Bustamante Gurr a 
                      Institute of Human Communication) 
                 -    Instituto Nacional de Medicina de la Rehabilitaci n 
                      (National Rehabilitative Medicine Institute) 
                 -    Instituto Nacional de Ortopedia (National Orthopedics 
                      Institute) 
                 -    Consejo Nacional para la Prevenci n y Control del 
                      S ndrome de la Inmunodeficiencia Adquirida, 
                      (Conasida) (National Council for the Prevention and 
                      Control of the Autoimmune Deficiency Syndrome) 
            9.   Secretar a del Trabajo y Previsi n Social (Ministry of 
                 Labor and Social Welfare) 
                 -    Procuradur a Federal de la Defensa del Trabajo 
                      (Office of the Federal Attorney for Labor Defense) 
            10.  Secretar a de la Reforma Agraria (Ministry of Agrarian 
                 Reform) 
                 -    Instituto de Capacitaci n Agraria (Institute of 
                      Agricultural Training) 
            11.  Secretar a de Pesca (Ministry of Fisheries) 
                 -    Instituto Nacional de la Pesca (National Institute of 
                      Fisheries) 
            12.  Procuradur a General de la Rep blica (Office of the 
                 Attorney General of the Republic) 
            13.  Secretar a de Energ a Minas e Industria Paraestatal 
                 (Ministry of Energy, Mines, and Parastatal Industry) 
                 -    Comisi n Nacional de Seguridad Nuclear y 
                      Salvaguardias (National Commission on Nuclear Safety 
                      and Safeguards) 
                 -    Comisi n Nacional para el Ahorro de Energ a (National 
                      Commission for Energy Conservation) 
            14.  Secretar a de Desarrollo Social (Ministry of Social 
                 Development) 
            15.  Secretar a de Turismo (Ministry of Tourism) 
            16.  Secretar a de la Contralor a General de La Federaci n 
                 (Ministry of the Comptroller General of the Federation) 
 
                             Annex 1001.1a-1                                
           
            17.  Comisi n Nacional de Zonas Aridas (National Commission on 
                 Arid Zones) 
            18.  Comisi n Nacional de Libros de Texto Gratuito (National 
                 Commission on Free Textbooks) 
            19.  Comisi n Nacional de Derechos Humanos (National Commission 
                 on Human Rights) 
            20.  Consejo Nacional de Fomento Educativo (National 
                 Educational Development Council) 
            21.  Secretar a de la Defensa Nacional (Ministry of National 
                 Defense) 
            22.  Secretar a de Marina (Ministry of the Navy) 
 
            Note:     This Schedule covers the numbered entities and those 
            listed thereunder. 
 
 
                             Schedule of the United States 
 
            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 of 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 of safeguarding nuclear 
                 materials or technology and entered into under the 
 
                                       Annex 1001.1a-1                      

                 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 7340) 
            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. 
 
 
            Note: 
 
            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 of the commercial confidentiality of information 
            provided. 
 
            2.   This Chapter does not apply to procurement by or on behalf 
            of the Royal Canadian Mint of 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 to 
            any other exceptions in this Chapter. 
 
                                   Schedule of Mexico 
 
            Printing and Editorial 
 
            1.   Talleres Gr ficos de la Naci n (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) 
 
                                 Annex 1001.1a-2 
 
            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 M xico (Ferronales) (National 
                 Railways of Mexico) 
            7.   Telecomunicaciones de M xico (Telecom) (Telecommunications 
                 of Mexico) 
 
            Industry 
 
            8.   Petr leos Mexicanos (Pemex) (Mexican Petroleum) (Not 
                 including procurements of fuels or gas) 
            9.   Comisi n 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.  Compa  a Nacional de Subsistencias Populares (Conasupo)  
                 (National Company for Basic Commodities) (Not including 
                 procurements of agricultural goods made in furtherance of 
                 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.  Procuradur a 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 Informaci n 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)  
 
                              Annex 1001.1a-2 
 
            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 Secretar a 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 Educaci n de los Adultos 
                 (National Institute for Adult Education) 
            27.  Centros de Integraci n Juvenil (Youth Integration Centers) 
            28.  Instituto Nacional de la Senectud (National Institute on 
                 Old Age) 
 
            Others 
 
            29.  Comit  Administrador del Programa Federal de Construcci n 
                 de Escuelas (CAPFCE) (Administrative Committee of the 
                 School Construction Federal Program) 
            30.  Comisi n Nacional del Agua (CNA) (National Water 
                 Commission) 
            31.  Comisi n Para la Regularizaci n de la Tenencia de la 
                 Tierra (Commission for the Regularization of Land Tenure) 
            32.  Consejo Nacional de Ciencia y Tecnolog a (Conacyt) 
                 (National Science and Technology Council) 
            33.  Notimex, S.A. de C.V.  
            34.  Instituto Mexicano de Cinematograf a (Mexican Institute of 
                 Cinematography) 
            35.  Loter a Nacional para la Asistencia P blica (National 
                 Lottery for Public Assistance) 
            36.  Pron sticos Deportivos (Sports Lottery) 
 
 
                             Schedule of the United States 
 
            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 
 
                                Annex 1001.1a-2 
 
            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 
 
                             Section A - General Provisions 
 
            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 of 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 Secretar a de la Defensa Nacional and the 
            Secretar a 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 
 
                               Annex  1001.1b-1                             
 
                      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 2350) 
            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 equipment 
            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 
 
                                Annex  1001.1b-1                            
 
            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 
 
                             Section A - General Provisions 
 
            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 
 
                            Annex 1001.1b-2 
 
            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) 
 
                        Annex 1001.1b-2 
 
            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, text 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 (J) 
 
                      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, text processing systems and visible record 
                      equipment). 
 
                      FSC 58    (Communications, Detection, and Coherent 
                                Radiation Equipment)  
 
                      Services with reference to transportation equipment. 
 
            J019      Maintenance, Repair, Modification, Rebuilding and 
                      Installation of Equipment related to Ships 
 
            J998      Non-nuclear Ship Repair 
 
            K.        Custodial Operations and Related Services 
 
                          Annex 1001.1b-2 
 
            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 
 
                         Annex 1001.1b-2 
 
            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  
 
                      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, text processing systems and visible record 
                      equipment). 
 
                      FSC 58    (Communications, Detection, and Coherent 
                                Radiation Equipment)  
 
                      Services with reference to transportation equipment. 
 
            General 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 of the Chapter. 
 
                               Annex 1001.1b-2 
 
                 2.   All services purchased in support of military forces 
                      located overseas will be exempt from coverage by this 
                      chapter.   
 
                 3.   The General Notes 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))                                                      CPC 
 
            1.   All transportation services, including: 
 
                 -    Land transportation                                71 
                 -    Water transport                                    72 
                 -    Air transport                                      73 
                 -    Supporting and auxiliary transport                 74 
                 -    Post and telecommunication                         75 
                 -    Repair services of other transport equipment, on 
                      a fee or contract basis                          8868 
 
            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 
 
                                Annex 1001.1b-2 
 
                             Schedule of the United States 
 
                                   Service Exclusions 
                               by Major Service Category 
 
 
            A.        Research and Development 
 
                      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 or II-U-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 
            D316      Telelcommunications Network Management Services 
            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: 
 
            M181      Government-Owned Contractor Operated R&D Facilities 
            M182      Government-Owned-Operated R&D Facilities 
 
                                Annex 1001.1b-2 
 
            M183      Government-Owned Contractor Operated Environmental 
                      Laboratories 
            M184      Government-Owned Operated Environmental Laboratories 
 
 
            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 services of Canada, suppliers of such services 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 to 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 of 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. 

                                  Annex 1001.1b-2 
 
                                 Temporary Schedule 
 
            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  
 
                Annex 1001.1b-2 
 
            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 to 
                           mining 
                 86752     Subsurface surveying services 
                 86753     Surface surveying services 
                 86754     Map making services 
            8861 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 
 
                               Annex 1001.1b-2 
 
                 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 
 
                                    Annex 1001.1b-2 
 
                                  Appendix 1001.1b-2-B 
 
                              Common Classification System 
 
                                        Services 
 
            Notes: 
 
            1.   It is understood that the Parties will continue to work on 
            the development of 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 of 
                 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 of 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 
 
                           Annex 1001.1b-2 
 
            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 
 
                       Annex 1001.1b-2 
 
                 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 Aeronautic/Space Studies 
 
            B5   Social Studies and Humanities 
 
            B500 Archeological/Paleontological Studies 
            B501 Historical Studies 
            B502 Recreation Studies 
 
                             Annex 1001.1b-2 
 
            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 Airfield, Communication and Missile Facilities 
            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 
 
                           Annex 1001.1b-2 
 
            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 ADP Teleprocessing and Timesharing Services 
            D306 ADP Systems Analysis Services 
            D307 Automated Information System Design and Integration 
            Services 
            D308 Programming Services 
            D309 Information and Data Broadcasting or Data Distribution 
            Services 
            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 Telecommunications Network Management Services 
            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 
 
                           Annex 1001.1b-2 
 
            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 Range Seeding Services (ground equipment) 
            F006 Crop Services (incl. Seed Collection and  Production 
            Services) 
            F007 Seedling Production/Transplanting Services 
            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 Fisheries Resources Management Services 
            F031 Fish Hatchery Services 
 
            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 
 
                      Annex 1001.1b-2 
 
            G - Health and Social Services  
 
            G0   Health Services 
 
            G001 Health Care  
            G002 Internal Medicine 
            G003 Surgery 
            G004 Pathology 
            G009 Other Health Services 
 
            G 1  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 
            TechnicalRepresentative  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) 
 
                       Annex 1001.1b-2 
 
            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 
 
                         Annex 1001.1b-2 
 
            M110 Administrative Facilities and Service Buildings  
            M120 Airfield,  Communications, and Missile Facilities 
            M130 Educational Buildings 
            M140 Hospital Buildings 
            M150 Industrial Buildings  
            M160 Residential Buildings 
            M170 Warehouse Buildings 
            M180 Research and Development Facilities 
            M190 Other Buildings 
            M210 Conservation and Development Facilities 
            M220 Highways, Roads, Streets, Bridges and Railways 
            M230 Electric Power Generation (EPG) Facilities 
            M240 Utilities 
            M290 Other Non-Building Facilities 
 
 
            R - Professional, Administrative and Management Support 
            Services 
 
            R0   Professional Services 
 
            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 Patent and Trade Mark Services 
            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 
 
                   Annex 1001.1b-2 
 
            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 Court Reporting Services 
            R117 Paper Shredding Services 
            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) 
 
                        Annex 1001.1b-2 
 
            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 
 
                             Annex 1001.1b-2 

            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   Lease or Rental of Equipment 
 
                                   Annex 1001.1b-2 
    
                                    Annex 1001.1b-3 
 
                                 Construction Services 
 
                             Section A - General Provisions 
 
            1.   This Chapter applies to all construction services set out 
            in Appendix 1001.1b-3-A, except those listed in Section B, that 
            are procured by the entities listed in Annex  
            1001.1a-1 and 1001.1a-2. 
 
            2.   The Parties shall update Appendix 1001.1b-3-A at such 
            times as they mutually agree. 
 
 
                             Section B - Excluded Coverage 
 
                                   Schedule of Canada 
 
            The following services contracts are excluded: 
 
            1.   Dredging 
 
            2.   Construction contracts tendered by or on behalf of 
                 Department of Transport 
 
 
                             Schedule of the United States 
 
            The following services contracts are excluded: 
 
            Dredging 
 
            Note:     In accordance with this Chapter, buy national 
                      requirements on articles, supplies and materials 
                      acquired for use in construction contracts covered by 
                      this Chapter shall not apply to goods of Canada or 
                      Mexico. 
 
                                   Annex 1001.1b-3 
 
                                  Appendix 1001.1b-3-A 
 
                              Common Classification System 
 
                                Construction Work Codes 
 
            Note:     Based on the United Nations Central Product 
                      Classification (CPC) Division 51. 
 
            Definition of Construction work: 
 
                 Pre-erection work; new construction and repair, 
                 alteration, restoration and maintenance work on 
                 residential buildings, non-residential buildings or civil 
                 engineering works.  This work can be carried out either by 
                 general contractors who do the complete construction work 
                 for the owner of the project, or on own account; or by 
                 subcontracting parts of the construction work to 
                 contractors specializing, e.g., in installation work, 
                 where the value of work done by subcontractors becomes 
                 part of the main contractor s work.  The products 
                 classified here are services which are essential in the 
                 production process of the different types of 
                 constructions, the final output of construction 
                 activities. 
 
 
            Code Descriptions 
 
            511  Pre-erection work at construction sites 
 
            5111 Site investigation work 
            5112 Demolition work 
            5113 Site formation and clearance work 
            5114 Excavating and earthmoving work 
            5115 Site preparation work for mining (except for mining of oil 
                 and gas which is classified under FO42) 
            5116 Scaffolding work 
 
 
            512  Construction works for buildings 
 
            5121 For one and two dwelling buildings 
            5122 For multi-dwelling buildings 
            5123 For warehouses and industrial buildings 
            5124 For commercial buildings 
            5125 For public entertainment buildings 
 
                     Annex 1001.1b-3 
 
            5126 For hotel, restaurant and similar buildings 
            5127 For educational Buildings 
            5128 For health buildings 
            5129 For other buildings 
 
            513  Construction work for civil engineering 
 
            5131 For highways (except elevated highways), streets , roads, 
                 railways and airfield runways 
            5132 For bridges, elevated highways, tunnels ,subways and 
                 railroads 
            5133 For waterways, harbours, dams and other water works 
            5134 For long distance pipelines, communication and power lines 

                 (cables) 
            5135 For local pipelines and cables; ancillary works 
            5136 For constructions for mining and manufacturing 
            5137 For constructions for sport and recreation 
            5138 Dredging Services 
            5139 For engineering works n.e.c. 
 
            514  Assembly and erection of prefabricated constructions 
 
            515  Special trade construction work 
 
            5151 Foundation work, including  pile driving 
            5152 Water well drilling 
            5153 Roofing and water proofing 
            5154 Concrete work 
            5155 Steel bending and erection, including welding 
            5156 Masonry work 
            5159 Other special trade construction work 
 
            516  Installation work 
 
            5161 Heating, ventilation and air conditioning work 
            5162 Water plumbing and drain laying work 
            5163 Gas fitting construction work 
            5164 Electrical work 
            5165 Insulation work (electrical wiring, water, heat, sound) 
            5166 Fencing and railing construction work 
            5169 Other installation work 
 
            517  Building completion and finishing work 
 
            5171 Glazing work and window glass installation work 
            5172 Plastering work 
            5173 Painting work 
            5174 Floor and wall tiling work 
 
                              Annex 1001.1b-3 
 
 
            5175 Other floor laying, wall covering and wall papering work 
            5176 Wood and metal joinery and carpentry work 
            5177 Interior fitting decoration work 
            5178 Ornamentation fitting work 
            5179 Other building completion and finishing work 
 
 
            518  Renting services related to equipment for construction or 
                 demolition of buildings or civil engineering works, with 
                 operator. 
 
                                     Annex 1001.1c 
 
                        Indexation and Conversion of Thresholds 
 
            1.   The calculations referred to in Article 1001(1)(c) (Scope 
            and Coverage) shall be made in accordance with the following: 
 
                 (a)  the U.S. inflation rate shall be measured by the 
                      Producer Price Index for Finished Goods published by 
                      the U.S. Bureau of Labor Statistics; 
 
                 (b)  the first adjustment for inflation, to take effect on 
                      January 1, 1996, shall be calculated using the period 
                      from November 1, 1993 through October 31, 1995; 
 
                 (c)  all subsequent adjustments shall be calculated using 
                      two-year periods, each period beginning November 1, 
                      and shall take effect on January 1 of the year 
                      immediately following the end of the two-year period; 
 
                 (d)  the United States shall notify the other Parties of 
                      the adjusted threshold values no later than November 
                      16 of the year before the adjustment takes effect; 
                      and 
 
                 (e)  the inflationary adjustment shall be estimated 
                      according to the following formula 
 
                                   T0 x (1+  i) = T1 
 
                      T0=  threshold value at base period 
                       i=  accumulated U.S. inflation rate for the ith two 
                           year-period 
                      T1=  new threshold value. 
 
            2.   Mexico and Canada shall calculate and convert the value of 
            the thresholds set out in Article 1001(1)(c) into their 
            national currencies using the conversion formula set out in 
            paragraph 3 or 4, as appropriate.  Mexico and Canada shall 
            notify each other and the United States of the value, in their 
            respective currencies, of the newly calculated thresholds no 
            later than one month before the respective thresholds take 
            effect. 
 
            3.   Canada shall base its calculation on the official 
            conversion rates of the Bank of Canada.  From January 1, 1994 
            through December 31, 1995, the conversion rate shall be the 
            average of the weekly values of the Canadian dollar in terms of 
 
                                    Annex 1001.1c 
 
            the U.S. dollar over the period October 1, 1992 through 
            September 30, 1993.  For each subsequent two-year period 
            beginning January 1, 1996, its conversion rate shall be the 
            average of the weekly values of the Canadian dollar in terms of 
            the U.S. dollar over the two-year period ending September 30 of 
            the year preceding the beginning of each two-year period. 
 
            4.   Mexico shall use the conversion rate of the Bank of Mexico 
            ("Banco de M xico").  Its conversion rate shall be the existing 
            value of the Mexican peso in terms of the U.S. dollar as of 
            December 1 and June 1 of each year, or the first working day 
            thereafter.  The conversion rate as of December 1 shall apply 
            from January 1 to June 30 of the following year, and as of June 
            1 shall apply from July 1 to December 31 of that year. 
 
 
                                     Annex 1001.2a 
 
                           Transitional Provisions for Mexico 
 
 
            Notwithstanding any other provision of this Chapter, Annexes 
            1001.1a-1 through 1001.1b-3 are subject to the following:  
 
            Pemex, CFE and Non-Energy Construction 
 
            1.   Mexico may set aside from the obligations of this Chapter 
            for a calendar year set out in paragraph 2 the percentage 
            specified in that paragraph of: 
 
                 (a)  the total value of procurement contracts for goods 
                      and services and any combination thereof and 
                      construction services procured by Pemex in the year 
                      that are above the thresholds set out in Article 
                      1001(1)(c); 
 
                 (b)  the total value of procurement contracts for goods 
                      and services and any combination thereof and 
                      construction services procured by CFE in the year 
                      that are above the thresholds set out in Article 
                      1001(1)(c); and 
 
                 (c)  the total value of procurement contracts for 
                      construction services procured in the year that are 
                      above the thresholds set out in Article 1001(1)(c), 
                      excluding procurement contracts for construction 
                      services procured by Pemex and CFE. 
 
            2.   The calendar years to which paragraph 1 applies and the 
            percentages for those calendar years are as follows: 
 
                 1994 1995 1996 1997 1998 
 
                 50%  45%  45%  40%  40% 
 
 
                 1999 2000 2001 2002 2003 and thereafter 
 
                 35%  35%  30%  30%  0% 
 
            3.   The value of procurement contracts that are financed by 
            loans from regional and multilateral financial institutions 
            shall not be included in the calculation of the total value of 
            procurement contracts under paragraphs 1 and 2.  Procurement 
 
                                 Annex 1001.2a 
 
            contracts that are financed by such loans shall also not be 
            subject to any restrictions set out in this Chapter. 
 
            4.   Mexico shall ensure that the total value of procurement 
            contracts under any single FSC class (or other classification 
            system agreed by Parties) that are set aside by Pemex or CFE 
            under paragraphs 1 and 2 for any year does not exceed 10 
            percent of the total value of the procurement contracts that 
            may be set aside by Pemex or CFE for that year. 
 
            5.   Mexico shall ensure that, after December 31, 1998, Pemex 
            and CFE each shall make all reasonable efforts to ensure that 
            the total value of procurement contracts under any single FSC 
            class (or other classification system agreed by the Parties) 
            that are set aside by Pemex or CFE under paragraphs 1 and 2 for 
            any year does not exceed 50 percent of the total value of all 
            Pemex and CFE procurement contracts under that FSC class (or 
            other classification system agreed by the Parties) for that 
            year. 
 
            Pharmaceuticals 
 
            6.   Until January 1, 2002, this Chapter shall not apply to the 
            procurement by the Secretar a de Salud, IMSS, ISSSTE, 
            Secretar a Defensa Nacional and the Secretar a de Marina of 
            drugs that are not currently patented in Mexico or whose 
            Mexican patents have expired.  Nothing in this paragraph shall 
            prejudice rights under Chapter Seventeen (Intellectual 
            Property). 
 
            Time Limits for Tendering and Delivery 
 
            7.   Mexico shall use its best efforts to comply with the 40- 
            day time limit requirements of Article 1012, and in any event 
            shall fully comply with that obligation no later than January 
            1, 1995. 
 
            Provision of Information 
 
            8.   The Parties recognize that Mexico may be required to 
            undertake extensive retraining of personnel, introduce new data 
            maintenance and reporting systems and make major adjustments to 
            the procurement systems of certain entities in order to comply 
            with Article 1019.  The Parties also recognize that Mexico may 
            encounter difficulties in making the transition to procurement 
            systems that facilitate full compliance with this Chapter. 
 
                                 Annex 1001.2a 
 
            9.   The Parties shall consult on an annual basis for the first 
            five years after the date of entry into force of this Agreement 
            to review transitional problems and to develop mutually agreed 
            solutions.  Such solutions may include, when appropriate, 
            temporary adjustment to the obligations of Mexico under this 
            Chapter, such as those related to reporting requirements. 
 
            10.  Canada and the United States shall cooperate with Mexico 
            to provide technical assistance, as appropriate and mutually 
            agreed pursuant to Article 1020, to aid Mexico's transition. 
 
            11.  Nothing in paragraphs 8 through 10 shall be construed to 
            excuse compliance with the obligations of this Chapter. 
 
            Note:     The General Notes for Mexico set out in Annex 1001.2b 
                      apply to this Annex. 
 
 
                                     Annex 1001.2b 
 
                                     General Notes 
 
                                  Schedule of Canada  
 
            1.   This Chapter does not apply to procurements in respect of: 
 
                 (a)  shipbuilding and repair; 
 
                 (b)  urban rail and urban transportation equipment, 
                      systems, components and materials incorporated there 
                      in as well as all project related materials of iron 
                      or steel; 
 
                 (c)  contracts respecting FSC 58 (communications, 
                      detection and coherent radiation equipment); 
 
                 (d)  set-asides for small and minority businesses; 
 
                 (e)  the Departments of Transport, Communications and 
                      Fisheries and Oceans respecting Federal Supply 
                      Classification (FSC) 70 (automatic data processing 
                      equipment, software supplies and support equipment), 
                      FSC 74 (office machines, text processing systems and 
                      visible record equipment) and FSC 36 (special 
                      industry machinery); and 
 
                 (f)  agricultural products made in furtherance of 
                      agricultural support programs or human feeding 
                      programs. 
 
            2.   This Chapter does not apply to the procurement of 
            transportation services that form a part of, or are incidental 
            to, a procurement contract. 
 
            3.   Pursuant to Article 1018, national security exemptions 
            include oil purchases related to any strategic reserve 
            requirements. 
 
            4.   National security exceptions include procurements made in 
            support of safeguarding nuclear materials or technology. 
 
            5.   The most-favored-nation obligation of Article 1003 does 
            not apply to procurements covered by Annex 1001.2c. 
 
 
                                   Schedule of Mexico 
 
                                     Annex 1001.2b 
 
            1.   This Chapter does not apply to procurements made: 
 
                 (a)  with a view to commercial resale by government-owned 
                      retail stores; 
 
                 (b)  pursuant to loans from regional or multilateral 
                      financial institutions to the extent that different 
                      procedures are imposed by such institutions (except 
                      for national content requirements); or 
 
                 (c)  by one entity from another entity of Mexico. 
 
            2.   This Chapter does not apply to the procurement of 
            transportation services that form a part of, or are incidental 
            to, a procurement contract. 
 
            3.   Notwithstanding any other provision in this Chapter, 
            Mexico may set aside procurement contracts from the obligations 
            of this Chapter, subject to the following: 
 
                 (a)  the total value of the contracts set aside that may 
                      be allocated by all entities, except Pemex and CFE, 
                      may not exceed the Mexican peso equivalent of 
 
                      (i)  US$1.0 billion, in each year until December 31, 
                           2002, and 
 
                      (ii) US$1.2 billion, in each year beginning January 
                           1, 2003; 
 
                 (b)  no contract may be set aside under this paragraph by 
                      Pemex or CFE prior to January 1, 2003; 
 
                 (c)  the total value of the contracts set aside by Pemex 
                      and CFE under this paragraph may not exceed the 
                      Mexican peso equivalent of US$300 million, in each 
                      year beginning January 1, 2003; 
 
                 (d)  the total value of contracts under any single FSC 
                      class (or other classification system agreed by the 
                      Parties) that may be set aside under this paragraph 
                      in any year shall not exceed 10 percent of the total 
                      value of contracts that may be set aside under this 
                      paragraph for that year; and 
 
                 (e)  no entity subject to subparagraph (a) may set aside 
                      contracts in any year of a value of more than 20 
 
                                      Annex 1001.2b 
 
                      percent of the total value of contracts that may be 
                      set aside for that year. 
 
            4.   Beginning one year after the date of entry into force of 
            this Agreement, the dollar values referred to in paragraph 3 
            shall be adjusted annually for cumulative inflation from the 
            date of entry into force of this Agreement, based on the 
            implicit price deflator for U.S. Gross Domestic Product (GDP) 
            or any successor index published by the Council of Economic 
            Advisors in "Economic Indicators".   
 
            The dollar values adjusted for cumulative inflation up to 
            January of each year following 1994 shall be equal to the 
            original dollar values multiplied by the ratio of: 
 
                 (a)  the implicit U.S. GDP price deflator or any successor 
                      index published by the Council of Economic Advisors 
                      in "Economic Indicators", current as of January of 
                      that year, to  
 
                 (b)  the implicit U.S. GDP price deflator or any successor 
                      index published by the Council of Economic Advisors 
                      in "Economic Indicators", current as of the date of 
                      entry into force of this Agreement, 
 
            provided that the price deflators under paragraphs (a) and (b) 
            have the same base year. 
 
            The resulting adjusted dollar values shall be rounded to the 
            nearest million dollars.   
 
            5.   National security exceptions include procurements made in 
            support of safeguarding nuclear materials or technology. 
 
            6.   Notwithstanding any other provision of this Chapter, an 
            entity may impose a local content requirement of no more than: 
 
                 (a)  40 percent, for labor-intensive turnkey or major 
                      integrated projects; or 
 
                 (b)  25 percent, for capital-intensive turnkey or major 
                      integrated projects. 
 
            For purposes of this paragraph, a turnkey or major integrated 
            project means, in general, a construction, supply or 
            installation project undertaken by a person pursuant to a right 
            granted by an entity with respect to which: 
 
                           Annex 1001.2b 
 
                 (c)  the prime contractor is vested with the authority to 
                      select the general contractors or subcontractors;  
 
                 (d)  neither the Government of Mexico nor its entities 
                      fund the project;  
 
                 (e)  the person bears the risks associated with non- 
                      performance; and  
 
                 (f)  the facility will be operated by an entity or through 
                      a procurement contract of that entity. 
 
            7.   Notwithstanding the thresholds set out in Article 
            1001(1)(c), Article 1003 shall apply to any procurement from 
            locally-established suppliers of oil and gas field supplies or 
            equipment by Pemex at any project site where it performs works. 

 
 
            8.   In the event that Mexico exceeds in any given year the 
            total value of the contracts it may set aside for that year in 
            accordance with paragraph 3 or the reserved procurement under 
            Annex 1001.2a(1)(2) or (4), Mexico shall consult with the other 
            Parties with a view to agreement on compensation in the form of 
            additional procurement opportunities during the following year. 

            The consultations shall be without prejudice to the rights of 
            any Party under Chapter Twenty (Institutional Arrangements and 
            Dispute Settlement Procedures). 
 
            9.   Notwithstanding Annex 1001.2a(6), Mexico may not set aside 
            from the obligations of this Chapter procurement contracts by 
            its entities of biologicals and drugs patented in Mexico.   
 
            10.  Nothing in this Chapter shall be construed to require 
            Pemex to enter into risk-sharing contracts. 
 
                             Schedule of the United States 
 
            1.   This Chapter does not apply to set asides on behalf of 
            small and minority businesses. 
 
            2.   This Chapter does not apply to the procurement of 
            transportation services that form a part of, or are incidental 
            to, a procurement contract. 
 
            3.   The most-favored-nation obligation of Article 1003 does 
            not apply to procurements covered by Annex 1001.2c. 
 
                                     Annex 1001.2c 
 
                              Country-Specific Thresholds 
 
                 As between Canada and United States, 
 
                 (a)  for any entity listed in the Schedule of Canada or of 
                      the United States in Annex 1001.1a-1, the applicable 
                      threshold for goods contracts, which may include 
                      incidental services such as delivery and 
                      transportation, shall be US$25,000 and the equivalent 
                      in Canadian dollars, as the case may be; 
 
                 (b)  Annex 1001.1c, except paragraphs 2 and 3 of that 
                      Annex for the purpose of calculating and converting 
                      the value of the threshold set out in subparagraph 
                      (a), does not apply to such goods contracts; and 
 
                 (c)  Chapter Thirteen of the Canada - United States Free 
                      Trade Agreement shall govern any procurement 
                      procedures that began before January 1, 1994, and 
                      that Chapter is hereby incorporated and made a part 
                      of this Agreement solely for that purpose. 
 
                                     Annex 1010.1 
 
                                      Publications 
 
                  Section A - Publications for Notices of Procurement 
              in Accordance with Article 1010 (Invitation to Participate) 
 
                                   Schedule of Canada 
 
            1.   Government Business Opportunities (GBO) 
 
            2.   Open Bidding Service, ISM Publishing 
 
 
                                   Schedule of Mexico 
 
            1.   Major daily newspapers of national circulation or the 
            Official Gazette of the Federation ("Diario Oficial de la 
            Federaci n"). 
 
            2.   Mexico shall endeavor to establish a specialized 
            publication for purposes of notices of procurement.  When 
            established, the publication shall substitute for those 
            referred to in paragraph 1. 
 
 
                               Schedule of United States 
 
            Commerce Business Daily (CBD) 
 
 
                         Section B - Publications for Measures 
              in Accordance with Article 1019 (Provision of Information)  
 
                                   Schedule of Canada 
 
            1.   Laws and regulations: 
 
                 (a)  Statutes of Canada; and 
                 (b)  Canada Gazette. 
 
            2.   Precedential judicial decisions: 
 
                 (a)  Dominion Law Reports; 
                 (b)  Supreme Court Reports; 
                 (c)  Federal Court Reports; and 
                 (d)  National Reporter. 
 
                            Annex 1010.1                                    
        
            3.   Administrative rulings and procedures: 
 
                 (a)  Government Business Opportunities; and 
                 (b)  Canada Gazette. 
 
 
                                   Schedule of Mexico 
 
            1.   Official Gazette of the Federation ("Diario Oficial de la 
            Federaci n")  
 
            2.   Judicial Weekly of the Federation ("Semanario Judicial de 
            la Federaci n") (for precedential judicial decisions only). 
 
            3.   Mexico shall endeavor to establish a specialized 
            publication for administrative rulings of general application 
            and any procedure, including standard contract clauses 
            regarding procurements.  When established, the publication 
            shall substitute for those set out in paragraphs 1 and 2 for 
            this purpose. 
 
 
                               Schedule of United States 
 
            1.   Laws and regulations: 
 
                 (a)  U.S. Statutes at Large 
                 (b)  U.S. Code of Federal Regulations. 
 
            2.   Precedential decisions: 
 
                 (a)  U.S. Reports (U.S. Supreme Court); 
                 (b)  Federal Reporter (Circuit Court of Appeals); 
                 (c)  Federal Supplement Reporter (District Courts); 
                 (d)  Claims Court Reporter (Claims Court); 
                 (e)  Boards of Contract Appeals (unofficial publication by 
                      Commerce Clearing House); and 
                 (f)  Comptroller General of the United States (Those not 
                      officially published as decisions of the Comptroller 
                      General are published unofficially by Federal 
                      Publications, Inc.). 
 
            3.   All U.S. laws, regulations, judicial decisions, 
            administrative rulings and procedures regarding government 
            procurement covered by this Chapter are codified in the Defense 
            Federal Acquisition Regulation Supplement (DFARS) and the 
            Federal Acquisition Regulation (FAR), both of which are 
 
                                   Annex 1010.1                             
 
            published as a part of the U.S. Code of Federal Regulations 
            (CFR).  The DFARS and the FAR are published in title 48 of CFR. 

Title:Investment, Services and Related Matters - CHapter Eleven
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:69971

                                       PART FIVE 
                        INVESTMENT, SERVICES AND RELATED MATTERS 
 
                                     Chapter Eleven 
 
                                       Investment 
 
                                 Section A - Investment 
 
 
            Article 1101:  Scope and Coverage 
 
            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. 
 
 
            Article 1102:  National Treatment 
 
            1.   Each Party shall accord to investors of another Party 
            treatment no less favorable than that it accords, in like 
            circumstances, to its own investors with respect to 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 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 
 
            1.   Each Party shall accord to investors of another Party 
            treatment no less favorable than that it accords, in like 
            circumstances, to 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. 
 
            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 to 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 to 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 of 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, of 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 non-conforming 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 of exchange prevailing on 
            the date of transfer with respect to spot transactions in the 
            currency to 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 of another Party in 
            its territory or take a measure tantamount to nationalization 
            or expropriation of 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 of 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 to 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 Article and for greater certainty, a 
            non-discriminatory measure of 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 of 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. 
 
 
            Article 1112:  Relation to Other Chapters 
 
            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 cross-border service.  This Chapter applies to that 
            Party's treatment of the posted bond or financial security. 
 
 
            Article 1113:  Denial of Benefits 
 
            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. 
 
            2.   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 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 to ensure that investment activity in its territory 
            is undertaken in a manner sensitive to 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 of, 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 to 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 to 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 of 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 of 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 of 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(A)(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 to 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 Inter-American 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 Article 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 of 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 to 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 to 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 Inter-American 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 of a commercial 
            relationship or transaction for purposes of Article I of the 
            New York Convention and Article I of the Inter-American 
            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 of an 
            investment in its territory by an investor of another Party, or 
            its investment, pursuant to that Article shall not be subject 
            to such provisions. 
 
            2.   The dispute settlement provisions of this Section and of 
            Chapter Twenty shall not apply to the matters referred to in 
            Annex 1138.2. 
 
 
                                Section C - Definitions 
 
 
            Article 1139:  Definitions 
 
            For purposes of this Chapter: 
 
            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; 
 
            Inter-American Convention means the Inter-American 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 of 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 to 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 
                           manner inconsistent with the Party's obligations 
                           under Section 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 
                           manner inconsistent with the Party's obligations 
                           under Section 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 of 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 to 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 ("Comisi n Nacional de Inversiones Extranjeras") 
            following a review pursuant to Annex I, page I-M-4, with 
            respect to 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). 

Title:Cross-Border Trade in Services -- Chapter Twelve
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:30632

                                     Chapter Twelve 
 
                             Cross-Border Trade in Services 
 
 
            Article 1201:  Scope and Coverage 
 
            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 of 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. 
 
 
            Article 1202:  National Treatment 
 
            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. 
 
 
            Article 1203:  Most-Favored-Nation Treatment 
 
                 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: 
 
                 (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, 
 
                      (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 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 it 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 to 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 to 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 of 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 to 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 it 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 non-complying 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. 
 
 
            Article 1211:  Denial of Benefits 
 
            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. 
 
            2.   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 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. 
 
 
            Article 1213:  Definitions 
 
            1.   For purposes of this Chapter, a reference to a federal, 
            state or provincial government includes any non-governmental 
            body in the exercise of any regulatory, administrative or other 
            governmental authority delegated to it by that government.  
 
            2.   For purposes of this Chapter: 
 
            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 of 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 trades-persons 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, heli-logging, aerial sightseeing, flight 
            training, aerial inspection and surveillance, and aerial 
            spraying services. 
 
                                      Annex 1210.5 
 
                                 Professional Services 
 
                             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 of 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; 
 
                                  Annex 1210.5                              
 
                 (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 of 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 of 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 to 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. 

                           Annex 1210.5                                     
 
            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 of 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 
 
                          Annex 1210.5                                      
 
                 (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 to 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 to 
            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. 
 
                                        Annex 1210.5                        
 
            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 1210.5-C 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 1212 
 
                                  Land Transportation 
 
 
            Contact Points 
 
            1.   Further to Article 1801 (Contact Points), each Party shall 
            designate by January 1, 1994 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. 

Title:Telecommunications -- Chapter Thirteen
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:24123

                                    Chapter Thirteen 
 
                                   Telecommunications 
 
 
            Article 1301:  Scope and Coverage 
 
            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 its 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 to 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 of the applicant's 
                      terminal or other equipment with the Party's 
                      applicable standards or technical regulations. 
 
            2.   A Party shall not 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 of testing and measuring equipment for 
            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 to 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 913(5) (Committee on Standards-Related Measures) 
            shall perform the functions set out in Annex 913.5.a-2. 
 
 
            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 of 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. 
 
 
            Article 1307:  Relation to Other Chapters 
 
                 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.  
 
 
            Article 1310:  Definitions 
 
            For purposes of this Chapter: 
 
            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 1310 
 
                            Conformity Assessment Procedures 
 
 
            For Canada: 
 
            Department of Communications, Terminal Attachment Program 
            Certification Procedures (CP-01) 
 
                 Department of Communications Act, R.S.C. 1985, c. C-35 
 
                 Railway Act, R.S.C. 1985, c. R-3 
 
                 Radiocommunication Act, R.S.C. 1985, c. R-2, as amended by 
                 S.C. 1989, c. 17 
 
                 Telecommunications Act (Bill C-62) 
 
 
            For Mexico: 
 
            Secretar a de Comunicaciones y Transportes 
            Subsecretar a de Comunicaciones y Desarrollo Technol gico 
 
                 Reglamento de Telecomunicaciones, Cap tulo X 
 
 
            For the United States: 
 
            Part 15 and Part 68 of the Federal Communications Commission's 
            Rules, Title 47 of the Code of Federal Regulations 

Title:Financial Services -- Chapter Fourteen
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:44088

                                    Chapter Fourteen 
 
                                   Financial Services 
 
 
            Article 1401:  Scope and Coverage 
 
            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 of another Party to be a 
            member of, participate in, or have access to, a self-regulatory 
            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 self-regulatory 
            organization. 
 
 
            Article 1403:  Establishment of Financial Institutions 
 
            1.   The Parties recognize the principle that an investor of 
            another Party should be permitted to 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 1403.3, at such time as the United States 
            permits commercial banks of 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 to 
            adopting arrangements permitting investors of another Party to 
            choose the juridical form of 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, to 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 of 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. 
 
 
            Article 1405:  National Treatment 
 
            1.   Each Party shall accord to investors of another Party 
            treatment no less favorable than that it accords to its own 
            investors, in like circumstances, with respect to the 
            establishment, acquisition, expansion, management, conduct, 
            operation, and sale or other disposition of financial 
            institutions and investments in financial institutions in its 
            territory. 
 
            2.   Each Party shall accord to financial institutions of 
            another Party and to investments of investors of another Party 
            in financial institutions treatment no less favorable than that 
            it 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, 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 of 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 if 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 of equal competitive 
            opportunities, but such differences may be used as evidence 
            regarding whether a Party's treatment affords equal competitive 
            opportunities. 
 
 
            Article 1406:  Most-Favored-Nation Treatment 
 
            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 of 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 if 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 to 
            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: 
 
                 (a)  any existing non-conforming measure that is 
                      maintained by 
 
                      (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 to 
                           Annex VII in accordance with Annex 1409.1, 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 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. 
 
 
            Article 1410:  Exceptions 
 
            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, policy-holders, 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 of 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 to 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, it 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 of particular enterprises.   
 
            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, to all reasonable inquiries from interested 
            persons regarding measures of general application covered by 
            this Chapter.  
 
 
            Article 1412:  Financial Services Committee 
 
            1.   The Parties hereby establish the Financial Services 
            Committee.  The principal representative of 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 to 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 60-day period referred to in paragraph 3, the Tribunal 
            may proceed to decide the matter. 
 
 
            Article 1416:  Definitions 
 
            For purposes of this Chapter: 
 
            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 to 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 of 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 Secretar a de Hacienda y Cr dito 
                      P blico; 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 to conduct 
                      monetary and exchange-rate 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 of 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 2019 (Non-Implementation -- Suspension of Benefits) 
 
                              Annex 1413.6                                  
 
            shall not apply in such proceedings. 

Title:Competition Policy, Monopolies and State Enterprises -- Chap 15
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:10487

                                    Chapter Fifteen 
 
                  Competition Policy, Monopolies and State Enterprises 
 
 
            Article 1501:  Competition Law 
 
            1.   Each Party shall adopt or maintain measures to proscribe 
            anti-competitive 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 of 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 of 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, cross-subsidization 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. 
 
 
            Article 1505:  Definitions 
 
            For purposes of this Chapter: 
 
            designate means to establish, designate or authorize, or to 
            expand the scope of a monopoly to 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 1505 
 
                   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 
                      Compa  a 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. 

Title:Temporary Entry for Business Persons -- Chapter Sixteen
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:49258

                                    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 of 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 of 
                      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 of 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 of 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 
            of the institution of an administrative proceeding, and the 
            failure to issue a determination is not attributable to delay 
            caused by the business person. 
 
 
            Article 1607:   Relation to Other Chapters 
 
                 Except for this Chapter, Chapters One (Objectives), Two 
            (General Definitions), Twenty (Institutional Arrangements and 
            Dispute Settlement Procedures) and Twenty-Two (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. 
 
            Article 1608:   Definitions 
 
            For purposes of this Chapter: 
 
            business person means a citizen of a Party who is engaged in 
            trade in goods, the provision of 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 1603 
 
                          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 
 
                       Annex 1603 
 
            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 of 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: 
 
                            Annex 1603 
 
                 (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. 
 
            3.   Notwithstanding paragraph 2, a Party may require a 
            business person seeking temporary entry under this Section to 
            obtain a visa or its equivalent prior to entry.   
 
 
                         Section C - Intra-Company Transferees 
 
            1.   Each Party shall grant temporary entry and provide 
            confirming documentation to a business 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 three- 
            year 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 
 
                 (b)  impose or maintain any numerical restriction relating 
                      to temporary entry under paragraph 1. 
 
            3.   Notwithstanding paragraph 2, 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 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 
 
                               Annex 1603 
 
 
            1.   Each Party shall grant temporary entry and provide 
            confirming documentation to a business 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 
 
                 (b)  impose or maintain any numerical restriction relating 
                      to temporary entry under paragraph 1. 
 
            3.   Notwithstanding paragraph 2, 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 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 of 
            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 to 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 to seek temporary entry under 
            a Party's applicable immigration measures relating to the entry 
            of 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.   
 
                                 Annex 1603 
 
                             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 
 
                                Annex 1603 
 
                 the territory of 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 of 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. 
 
 
            After-Sales 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. 
 
                          Annex 1603 
 
            -    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 of 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. 
 
                                    Annex 1603 

                                Appendix 1603.A.3 
 
                             Existing Immigration Measures 
 
 
            1.   In the case of Canada, subsection 19(1) of the Immigration 
            Regulations, 1978, SOR/78-172, as amended, made under the 
            Immigration Act, R.S.C. 1985, c. I-2, 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 Ley General de 
            Poblacion, 1974, as amended.  
 
                              Annex 1603 
 
                           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 Post-Secondary 
                                             Diploma3 or Post-Secondary 
                                             Certificate4, and three years 
                                             experience 
 
 
                 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 of post-secondary 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 post-secondary 
            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.   

                               Annex 1603 
 
 
             Disaster Relief Insurance       Baccalaureate or Licenciatura 
             Claims Adjuster (claims         Degree, and successful 
             adjuster employed by an         completion of training in the 
             insurance company located in    appropriate areas of insurance 
             the territory of a Party, or    adjustment pertaining to 
             an independent claims           disaster relief claims; or 
             adjuster)                       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                        Baccalaureate or Licenciatura 
                                             Degree; or state/provincial 
                                             license 
 
             Graphic Designer                Baccalaureate or Licenciatura 
                                             Degree; or Post-Secondary 
                                             Diploma or Post-Secondary 
                                             Certificate, and three years 
                                             experience  
             Hotel Manager                   Baccalaureate or Licenciatura 
                                             Degree in hotel/restaurant 
                                             management; or Post-Secondary 
                                             Diploma or Post-Secondary 
                                             Certificate in 
                                             hotel/restaurant management, 
                                             and three years experience in 
                                             hotel/restaurant management 
 
             Industrial Designer             Baccalaureate or Licenciatura 
                                             Degree; or Post-Secondary 
                                             Diploma or Post-Secondary 
                                             Certificate, and three years 
                                             experience 
 
                                   Annex 1603 
 
 
             Interior Designer               Baccalaureate or Licenciatura 
                                             Degree; or Post-Secondary 
                                             Diploma or Post-Secondary 
                                             Certificate, and three years 
                                             experience  
 
             Land Surveyor                   Baccalaureate or Licenciatura 
                                             Degree; or 
                                             state/provincial/federal 
                                             license 
 
             Landscape Architect             Baccalaureate or Licenciatura 
                                             Degree 
             Lawyer (including Notary in     LL.B., J.D., LL.L., B.C.L. or 
             the Province of Quebec)         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        Baccalaureate or Licenciatura 
             Statistician)                   Degree 
 
             Range Manager/                  Baccalaureate or Licenciatura 
             Range Conservationalist         Degree 
             Research Assistant              Baccalaureate or Licenciatura 
             (working in a post-secondary    Degree 
             educational institution) 
 
                             Annex 1603 
 
 
             Scientific                      Possession of (a) theoretical 
             Technician/Technologist1        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                   Baccalaureate or Licenciatura 
                                             Degree 
 
             Sylviculturist (including       Baccalaureate or Licenciatura 
             Forestry Specialist)            Degree 
             Technical Publications Writer   Baccalaureate or Licenciatura 
                                             Degree; or Post-Secondary 
                                             Diploma or Post-Secondary 
                                             Certificate, and three years 
                                             experience 
 
             Urban Planner (including        Baccalaureate or Licenciatura 
             Geographer)                     Degree 
             Vocational Counsellor           Baccalaureate or Licenciatura 
                                             Degree 
 
 
             Medical/Allied Professional 
 
 
             Dentist                         D.D.S., D.M.D., Doctor en 
                                             Odontologia or Doctor en 
                                             Cirugia Dental; or 
                                             state/provincial license 
 
 
                 1    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. 
 
                                 Annex 1603 
 
             Dietitian                       Baccalaureate or Licenciatura 
                                             Degree; or state/provincial 
                                             license 
 
             Medical Laboratory              Baccalaureate or Licenciatura 
             Technologist (Canada)/Medical   Degree; or Post-Secondary 
             Technologist (Mexico and the    Diploma or Post-Secondary 
             United States)1                 Certificate, and three years 
                                             experience 
 
             Nutritionist                    Baccalaureate or Licenciatura 
                                             Degree 
             Occupational Therapist          Baccalaureate or Licenciatura 
                                             Degree; or state/provincial 
                                             license 
 
             Pharmacist                      Baccalaureate or Licenciatura 
                                             Degree; or state/provincial 
                                             license 
             Physician (teaching or          M.D. or Doctor en Medicina; or 
             research only)                  state/provincial license 
 
             Physiotherapist/Physical        Baccalaureate or Licenciatura 
             Therapist                       Degree; or state/provincial 
                                             license 
 
             Psychologist                    State/provincial license; or 
                                             Licenciatura Degree 
             Recreational Therapist          Baccalaureate or Licenciatura 
                                             Degree 
 
             Registered Nurse                State/provincial license; or 
                                             Licenciatura Degree  
             Veterinarian                    D.V.M., D.M.V. or Doctor en 
                                             Veterinaria; or 
                                             state/provincial license 
 
 
             Scientist 
 

                 1    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. 
 
                           Annex 1603 

             Agriculturist (including        Baccalaureate or Licenciatura 
             Agronomist)                     Degree 
 
             Animal Breeder                  Baccalaureate or Licenciatura 
                                             Degree 
 
             Animal Scientist                Baccalaureate or Licenciatura 
                                             Degree 
             Apiculturist                    Baccalaureate or Licenciatura 
                                             Degree 
 
             Astronomer                      Baccalaureate or Licenciatura 
                                             Degree 
             Biochemist                      Baccalaureate or Licenciatura 
                                             Degree 
 
             Biologist                       Baccalaureate or Licenciatura 
                                             Degree 
 
             Chemist                         Baccalaureate or Licenciatura 
                                             Degree 
             Dairy Scientist                 Baccalaureate or Licenciatura 
                                             Degree 
 
             Entomologist                    Baccalaureate or Licenciatura 
                                             Degree 
             Epidemiologist                  Baccalaureate or Licenciatura 
                                             Degree 
 
             Geneticist                      Baccalaureate or Licenciatura 
                                             Degree 
 
             Geologist                       Baccalaureate or Licenciatura 
                                             Degree 
             Geochemist                      Baccalaureate or Licenciatura 
                                             Degree 
 
             Geophysicist (including         Baccalaureate or Licenciatura 
             Oceanographer in Mexico and     Degree 
             the United States) 
             Horticulturist                  Baccalaureate or Licenciatura 
                                             Degree 
 
             Meteorologist                   Baccalaureate or Licenciatura 
                                             Degree 
 
                             Annex 1603 
 
             Pharmacologist                  Baccalaureate or Licenciatura 
                                             Degree 
 
             Physicist (including            Baccalaureate or Licenciatura 
             Oceanographer in Canada)        Degree 
 
             Plant Breeder                   Baccalaureate or Licenciatura 
                                             Degree 
             Poultry Scientist               Baccalaureate or Licenciatura 
                                             Degree 
 
             Soil Scientist                  Baccalaureate or Licenciatura 
                                             Degree 
             Zoologist                       Baccalaureate or Licenciatura 
                                             Degree 
 
 
             Teacher 
 
 
             College                         Baccalaureate or Licenciatura 
                                             Degree 
             Seminary                        Baccalaureate or Licenciatura 
                                             Degree 
 
             University                      Baccalaureate or Licenciatura 
                                             Degree 
 
                                     Annex 1603 
 
                                   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 of 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 1608 
 
                             Country - Specific Definitions 
 
 
            For purposes of this Chapter: 
 
            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. 

Title:Intellectual Property
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:85574

                                        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 to 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, 1991 (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. 
 
            3.   Annex 1701.3 applies to the Parties specified in that 
            Annex. 
 
 
            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. 
 
            Article 1703:   National Treatment 
 
            1.   Each Party shall accord to nationals of another Party 
            treatment no less favorable than that it 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 to 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 of 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 Article 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 to 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 to 
            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 of the first authorized 
            publication of the work or, failing such authorized publication 
            within 50 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 to 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 to 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.  
 
            7.   Annex 1705.7 applies to the Parties specified in that 
            Annex. 
 
 
            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 to 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 Program-Carrying 
                            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 of 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 of 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 of 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 of 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 well-known, 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 two 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 of 
            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" to 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 to 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 
            its 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. 
 
            5.   Each Party shall provide that: 
 
                 (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 of 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 to 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 to 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 of 
                      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 to 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 of 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 it 
            acquired the integrated circuit or article incorporating such 
            an integrated circuit, that it 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 for 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 15 years after the creation of 
            the layout design. 
 
            9.   Annex 1710.9 applies to the Parties specified in that 
            Annex. 
 
 
            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 to 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 of 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 to the customary 
            term in common language in that Party's territory for the goods 
            or services to 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, if 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 of 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 time-limits 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 to 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 to 
            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 to 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 to 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. 
 
            3.   With respect to the authority referred to in subparagraph 
            2(c), no Party shall be obliged to 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 of 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 of the 
            trademark unlawfully affixed shall not be sufficient, other 
            than in exceptional cases, to 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 of 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 of 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 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 to 
            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 after 
                      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 of 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 of 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 to 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 of 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 to 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 
            to 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 of 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 of the goods in question. 
 
            11.  Where a Party requires its competent authorities to act on 
            their own initiative and to 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 of goods of a non-commercial nature 
            contained in travellers' personal luggage or sent in small 
            consignments that are not repetitive. 
 
            14.  Annex 1718.14 applies to the Parties specified in that 
            Annex. 
 
 
            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. 
 
 
             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 to 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 to 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 of 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 of 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 1709(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. 
 
 
            Article 1721:   Definitions 
 
            1.   For purposes of this Chapter: 
 
            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 of contract, breach of 
            confidence and inducement to breach, and includes the 
            acquisition of 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 to those Conventions, and with respect to 
            intellectual property rights that are not the subject of 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 (Country-Specific 
            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 of 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 of 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. 
  
 
 
 
 
 
 
Title:Administrative and Institutional Provisions -- Chapter 18
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:6412

                                       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 of 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 to 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 to 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 to 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 of 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 adopt 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. 
 
 
            Article 1806:  Definitions 
 
            For purposes of this Chapter: 
 
            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. 

Title:Review and Dispute Settlement in Antidumping.....
Title2: and Countervailing Duty Matters -- Chap 19
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:95452

                                    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 to 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 to 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 of 
                           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 
                           object 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 90-day 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 60-day written notice to 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 
            official journal of 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 to 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 of 
                           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 of 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 
            post-hearing conferences; motions; oral argument; requests for 
            rehearing; and voluntary terminations of 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 of 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 60-day period, the Parties are unable to 
            reach a mutually satisfactory solution to 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 30 days after the end of the 
            60-day consultation period. 
 
            9.   In the event that a complaining Party suspends the 
            operation of Article 1904 with respect to 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 to 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 to 
            paragraph 8(b), panel or committee review stayed under 
            paragraph 11(a), and any running of 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 of 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. 
 
 
            Article 1907:  Consultations 
 
            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 of 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 of 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 
                           legislation 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 
            to 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.   The Parties shall establish a section within 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 of the 
            record as is requested, except that only public portions of the 
            record shall be provided to 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 to 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 1.  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 to 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. 
 
 
            Article 1911:  Definitions 
 
            For purposes of this Chapter: 
 
            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" of 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 for 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 of 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 at 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 of 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 of the 
            request for the panel.  If an involved Party fails to appoint 
            its members to a panel within 30 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 of a fifth panelist.  If 
            the involved Parties are unable to agree, they shall decide by 
            lot which of them shall select, by the 61st day, the fifth 
            panelist from the roster, excluding candidates eliminated by 
            peremptory challenges. 
 
                              Annex 1901.2                                  
 
            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 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 
 
                         Annex 1901.2                                       
     
            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 it 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 1903 
 
 
            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 two 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 its 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. 

                                 Annex 1903.2                               

            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 of 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 of 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, to allow the United States 
            with respect to goods of the United States or Mexico with 
            respect to 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 re-determination; 
            and section 59 to 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 to 
            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 re-determination 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. 
 
                              Annex 1904.15                                 
 
            5.   Canada shall amend Part II of the Special Import Measures 
            Act, as amended, to provide for 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. 
 
            7.   Canada shall amend Part II of the Special Import Measures 
            Act, as amended, to provide for the establishment of binational 
            panels requested to review final determinations in respect of 
            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 to 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: 
 
                                     Annex 1904.15                          
                 
 
                 (a)  elimination of the possibility of imposing duties 
                      within the five-day period after the acceptance of a 
                      petition; 
 
                 (b)  substitution of the term Resoluci n de Inicio 
                      ("Initial Resolution") for the term Resoluci n 
                      Provisional ("Provisional Resolution") and the term 
                      Resoluci n Provisional ("Provisional Resolution") for 
                      the term Resoluci n que revisa a la Resoluci n 
                      Provisional ("Resolution Reviewing the Provisional 
                      Resolution"); 
 
                 (c)  full participation in the administrative process for 
                      interested parties, as well as the right to 
                      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 to 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 
                      of 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 of publication in the Diario 
                      Oficial de la Federaci n ("Federal Official Journal") 
 
                              Annex 1904.15                                 
          
                      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 of the information for personal benefit 
                      and its disclosure to persons who are not authorized 
                      to 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; 
 
                             Annex 1904.15                                  
         
                 (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, to 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 Diario Oficial de la Federaci n ("Federal 
                      Official Journal") of initiation of investigations 
                      setting forth the nature of the proceeding, the legal 
 
                            Annex 1904.15                                   

                      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. 
 
 
                             Schedule of the United States 
 
            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 of their functions as 
 
 
                         Annex 1904.15                                      
 
            such panelists or committee members, except with respect to the 
            violation of 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 of conduct, and for the 
            committee to summon the attendance of witnesses, order the 
            taking of 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 of 
            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, to 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 if binational panel review is 
            requested. 
 
            9.   The United States shall amend section 516A(a) of the 
            Tariff Act of 1930, as amended, to 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 
 
                              Annex 1904.15                                 
          
            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, to 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, to 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, to 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, to 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 14 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 1911 
 
                              Country-Specific Definitions 
 
 
            For purposes of this Chapter: 
 
            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 of 1930, as 
                      amended, and any successor statutes; 
 
                 (c)  in the case of Mexico, the relevant provisions of the 
                      Ley Reglamentaria del Art culo 131 de la Constituci n 
                      Pol tica 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, 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  
 
                                  Annex 1911                                
             
                      (ii) the United States International Trade 
                           Commission, or its successor; and 
 
                 (c)  in the case of Mexico, the designated authority 
                      within the Secretar a de Comercio y Fomento 
                      Industrial ("Secretariat of Trade and Industrial 
                      Development"), 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 
                      Ley Reglamentaria del Art culo 131 de la Constituci n 
                      Pol tica 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, 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) of 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 43(1) of 
                           the Act with or without amendment,  
 
                      (iii)     a determination by the Deputy Minister of 
                                National Revenue for Customs and Excise 
 
                                  Annex 1911                                

                                pursuant to section 41 of the Special 
                                Import Measures Act, as amended,  
 
                      (iv) a re-determination 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 91(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 Act 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, 
 
                                Annex 1911                                  
           
                           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 Art culo 131 de la 
                           Constituci n Pol tica 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 Secretar a de 
                           Comercio y Fomento Industrial ("Secretariat of 
                           Trade and Industrial Development"), as described 
                           in paragraph (o) of its Schedule to Annex 
                           1904.15, and 
 
                      (iii)     a final resolution by the Secretar a de 
                                Comercio y Fomento Industrial ("Secretariat 
                                of Trade and Industrial Development") 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;  
 
                                Annex 1911                                  
  
                 (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 C digo Fiscal de la Federaci n 
                      ("Federal Fiscal Code"), or any successor statutes, 
                      based solely on the administrative record. 

Title:Institutional Arrangements and Dispute Settlement proc.
Title2: Chapter 20
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:42517

                                     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. 
 
            2.   Each Party shall: 
 
                 (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 to   
 
                      (i)  panels and committees established under Chapter 
              Title:Oterh Provisions - Chapter 21
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:21950

                                       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 to 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 of 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 of 
            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 it 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 to 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 1405 (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 of 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 of 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 (Investment - Expropriation) shall apply to 
            taxation measures except that no investor may invoke that 
            Article as the basis for a claim under Article 1116 or 1117, 
            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.  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. 
 
 
            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 other transfers 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 of the Articles 
                      of Agreement of the IMF; 
 
                 (b)  enter into good faith consultations with the IMF on 
                      economic adjustment measures to 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 of 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 to 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. 
 
 
            Article 2107:  Definitions 
 
            For purposes of this Chapter: 
 
            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 of 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 
 
 
            For purposes of this Chapter:  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 
                      ("Secretar a de Hacienda y Cr dito P blico"); 
 
                 (c)  in the case of the United States, the Assistant 
                      Secretary of the Treasury (Tax Policy), Department of 
                      the Treasury. 
 
 
                                       Annex 2106 
 
                                  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 of 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 to such 
            measures shall be identical to those applying between Canada 
            and the United States. 
Title:Final Provisions -- Chapter 22
Author: White House
Document-Date: 29 Sept 1993
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                                   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 of 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 of 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. 
 
:Title:NAFTA Notes
Author: White House
Document-Date: 29 Sept 1993
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                                         NOTES 
 
 
            1.    Article 301 (Market Access - National Treatment):  "goods 
            of the Party" as used in paragraph 2 includes goods produced in 
            the state or province of that Party.  
 
            2.   Article 302(1) (Tariff Elimination):  this paragraph is 
            not intended to prevent any Party from modifying its non-NAFTA 
            tariffs on originating goods for which no NAFTA tariff 
            preference is claimed.  
 
            3.   Article 302(1) (Tariff Elimination):   this paragraph does 
            not prohibit a Party from raising a tariff back to an agreed 
            level in accordance with the NAFTA's phase-out schedule 
            following a unilateral reduction. 
 
            4.   Article 302(1) and (2) (Tariff Elimination):  paragraphs 1 
            and 2 are not intended to prevent a Party from maintaining or 
            increasing a customs duty as may be authorized by any dispute 
            settlement provision of the GATT or any agreement negotiated 
            under the GATT. 
 
            5.   Article 303 (Restriction on Drawback and Duty Deferral):  
            in applying the definition of "used" in Article 415 to this 
            Article, the definition of "consumed" in Article 318 shall not 
            apply. 
 
            6.   Article 305(2)(d) (Temporary Admission of Goods):  where 
            another form of monetary security is used, it shall not be more 
            burdensome than the bonding requirement referred to in this 
            subparagraph.  Where a Party uses a non-monetary form of 
            security, it shall not be more burdensome than existing forms 
            of security used by that Party. 
 
            7.   Article 307(1) (Market Access - Goods Re-Entered after 
            Repair or Alteration):  this paragraph does not cover goods 
            imported in bond, into foreign-trade zones or in similar 
            status, that are exported for repairs and are not re-imported 
            in bond, into foreign-trade zones or in similar status. 
 
            8.   Article 307(1) (Market Access - Goods Re-Entered after 
            Repair or Alteration):  for purposes of this paragraph, 
            alteration includes laundering used textile and apparel goods 
            and sterilizing previously sterilized textile and apparel 
            goods. 
 
            9.   Article 318 (Market Access - Definitions):  10-digit items 
            set out in the Tariff Schedule of Canada are included for 
            statistical purposes only. 
 
            10.  Article 318 (Market Access - Definitions):  with respect 
            to the definition of "repair and alteration", an operation or 
            process that is part of the production or assembly of an 
            unfinished good into a finished good is not a repair or 
            alteration of the unfinished good; a component of a good is a 
            good that may be subject to repair or alteration.  
 
            11.  Annex 300-A (Trade and Investment in the Automotive 
            Sector), Appendix 300-A.1 - Canada:  paragraphs 1 and 2 shall 
            not be construed to modify the rights and obligations set out 
            in Chapter Ten of the Canada - United States Free Trade 
            Agreement, except that the NAFTA rules of origin shall replace 
            the Canada - United States Free Trade Agreement rules of origin 
            for purposes of Article 1005(1). 
 
            12.  Annex 300-A (Trade and Investment in the Automotive 
            Sector), Appendix 300-A.2 - Mexico:  citations to the Auto 
            Decree and the Auto Decree Implementing Regulations included in 
            parentheses are provided for purposes of reference only. 
 
            13.  Annex 300-B (Textile and Apparel Goods) Section 1 (Scope 
            and Coverage):  the general provisions of Chapter Two 
            (Definitions), Chapter Three (Market Access), Chapter Four 
            (Rules of Origin) and Chapter Eight (Emergency Action) are 
            subject to the specific rules for textiles and apparel goods 
            set out in the Annex. 
 
            14.  Annex 300-B (Textile and Apparel Goods) Section 2 (Tariff 
            Elimination):  with respect to paragraph 1, "as otherwise 
            provided in this Agreement" refers to such provisions as 
            Section 4, Article 802 (Global Emergency Action) and Chapter 22 
            (General Exceptions). 
 
            15.  Annex 300-B (Textile and Apparel Goods) Sections 4 and 5 - 
            Bilateral Emergency Actions (Tariff Actions):  for purposes of 
            Sections 4 and 5: 
 
                 (a)  "increased quantities" is intended to be interpreted 
                      more broadly than the standard provided in Article 
                      801(1), which considers imports "in absolute terms" 
                      only.  For purposes of these Sections, "increased 
                      quantities" is intended to be interpreted in the same 
                      manner as this standard is interpreted in the draft 
                      Agreement on Textiles and Clothing, contained in the 
                      Draft Final Act Embodying the Results of the Uruguay 
                      Round of Multilateral Trade Negotiations (GATT 
                      document MTN.TNC/W/FA) issued by the Director-General 
                      of the GATT on December 20, 1991 ("Draft Uruguay 
                      Round Agreement on Textiles and Clothing"); and 
 
                 (b)  "serious damage" is intended as a less stringent 
                      standard than "serious injury" under Article 801(1).  
                      The "serious damage" standard is drawn from the Draft 
                      Uruguay Round Agreement on Textiles and Clothing.  
                      The factors to be considered in determining whether 
                      the standard has been met are set out in Section 4.2 
                      and are also drawn from that Draft.  "Serious damage" 
                      is to be interpreted in the light of its meaning in 
                      Annex A of the Multifiber Arrangement or any 
                      successor agreement. 
 
            16.  Annex 300-B (Textile and Apparel Goods) Section 5 
            (Bilateral Emergency Actions - Quantitative Restrictions):  in 
            paragraph 5(c), the term "equitable treatment" is intended to 
            have the same meaning as it has in customary practice under the 
            Multifiber Arrangement. 
 
            17.  Annex 300-B (Textile and Apparel Goods) Section 7, 
            paragraph 1(c) (Review and Revision of Rules of Origin):  for 
            subheading 6212.10, the rule and paragraph 1 shall not be 
            applied if the Parties agree, prior to entry into force of this 
            Agreement, on measures to ease the administrative burden and 
            reduce costs associated with the application of the rule for 
            headings 62.06 through 62.11 to the apparel in subheading 
            6212.10. 
 
            18.  Annex 300-B (Textile and Apparel Goods) Section 7, 
            paragraph (2)(d)(ii) (Review and Revision of Rules of Origin):  
            with respect to provisions (a) through (i) of the rule for 
            subheadings 6205.20 through 6205.30, prior to the entry into 
            force of this Agreement the Parties will extend cooperation as 
            necessary in an effort to encourage production in the free 
            trade area of shirting fabrics specifically identified in the 
            rule. 
 
            19.  Annex 300-B (Textile and Apparel Goods), Appendix 3.1, 
            paragraph 17:  for purposes of applying paragraph 17, the 
            determination of the component that determines the tariff 
            classification of the good shall be based on GRI 3(b) of the 
            Harmonized System, and if the component cannot be determined on 
            the basis of GRI 3(b), then the determination will be based on 
            GRI 3(c) or, if GRI 3(c) is inapplicable, GRI 4.  When the 
            component that determines the tariff classification is a blend 
            of two or more yarns or fibers, all yarns and, where 
            applicable, fibers, in that component are to be considered. 
 
            20.  Annex 300-B (Textile and Apparel Goods) Schedule 3.1.3. 
            (Conversion Factors):  the conversion factors in this Schedule 
            are those used for imports into the United States.  Canada and 
            Mexico may by mutual agreement develop their own conversion 
            factors for trade between them. 
 
            21.  Article 401 (Rules of Origin - Originating Goods):  the 
            phrase "specifically describes" is intended solely to prevent 
            Article 401(d) from being used to qualify a part of another 
            part, where the heading or subheading covers the final good, 
            the part made from the other part and the other part. 
 
            22.  Article 402 (Rules of Origin - Regional Value Content): 
 
                 (a)  Article 402(4) applies to intermediate materials, and 
                      that VNM in paragraphs 2 and 3 does not include 
 
                      (i)  the value of any non-originating materials used 
                           by another producer to produce an originating 
                           material that is subsequently acquired and used 
                           in the production of the good by the producer of 
                           the good, and 
 
                      (ii) the value of non-originating materials used by 
                           the producer to produce an originating self- 
                           produced material that is designated by the 
                           producer as an intermediate material pursuant to 
                           Article 402(10);  
                 (b)  with respect to paragraph 4, where an originating 
                      intermediate material is subsequently used by the 
                      producer with non-originating materials (whether or 
                      not produced by the producer) to produce the good, 
                      the value of such non-originating materials shall be 
                      included in the VNM of the good; 
 
                 (c)  with respect to paragraph 8, sales promotion, 
                      marketing and after-sales service costs, royalties, 
                      shipping and packing costs, and non-allowable 
                      interest costs included in the value of materials 
                      used in the production of the good are not subtracted 
                      out of the net cost in the calculation under Article 
                      402(3); 
 
                 (d)  with respect to paragraph 10, an intermediate 
                      material used by another producer in the production 
                      of a material that is subsequently acquired and used 
                      by the producer of the good shall not be taken into 
                      account in applying the proviso set out in that 
                      paragraph, except where two or more producers 
                      accumulate their production under Article 404; 
 
                 (e)  with respect to paragraph 10, if a producer 
                      designates a self-produced material as an originating 
                      intermediate material and the Customs Administration 
                      of the importing Party subsequently determines that 
                      the intermediate material is not originating, the 
                      producer may rescind the designation and recalculate 
                      the value content of the good accordingly; in such a 
                      case, the producer shall retain its rights of appeal 
                      or review with regard to the determination of the 
                      origin of the intermediate material; and 
 
                 (f)  under paragraph 4, with respect to any self-produced 
                      material that is not designated as an intermediate 
                      material, only the value of non-originating materials 
                      used to produce the self-produced material shall be 
                      included in VNM of the good. 
 
            23.  Article 403 (Rules of Origin - Automotive Goods):   
 
                 (a)  for purposes of paragraph 1, "first person in the 
                      territory of a Party" means the first person who uses 
                      the imported good in production or resells the 
                      imported good; and 
 
                 (b)  for purposes of paragraph 2, 
 
                      (i)  a producer may not designate as an intermediate 
                           material any assembly, including a component 
                           identified in Annex 403.2, containing one or 
                           more of the materials listed in Annex 403.2, and 
 
                      (ii) a producer of a material listed in Annex 403.2 
                           may designate a self-produced material used in 
                           the production of that material as an 
                           intermediate material, in accordance with the 
                           provisions of Article 402(10). 
 
            24.  Article 405(6) (Rules of Origin - De Minimis):  for 
            purposes of applying paragraph 6, the determination of the 
            component that determines the tariff classification of the good 
            shall be based on GRI 3(b) of the Harmonized System.  If the 
            component cannot be determined on the basis of GRI 3(b), then 
            the determination will be based on GRI 3(c) or, if GRI 3(c) is 
            inapplicable, GRI 4.  When the component that determines the 
            tariff classification is a blend of two or more yarns or 
            fibers, all yarns and, where applicable, fibers, in that 
            component are to be taken into account.  
 
            25.  Article 413 (Rules of Origin - Interpretation and 
            Application):  the rules of origin under Chapter Four are based 
            on the 1992 Harmonized System, amended by the new tariff items 
            created for rules of origin purposes. 
 
            26.  Article 415 (Rules of Origin - Definitions):  the phrase 
            "except for the application of Article 403(1) or 403(2)(a)" in 
            the definition of "transaction value" is intended solely to 
            ensure that the determination of transaction value in the 
            context of Article 403(1) or (2)(a) shall not be limited to the 
            transaction of the producer of the good. 
 
            27.  Article 514 (Customs Procedures - Definitions):  the 
            Uniform Regulations will clarify that "determination of origin" 
            includes a denial of preferential tariff treatment under 
            Article 506(4), and that such denial is subject to review and 
            appeal. 
 
            28.  Article 603, paragraphs 1 through 5 (Energy):  these 
            paragraphs shall be interpreted consistently with Article 309. 
 
            29.  Article 703 (Agriculture - Market Access):  the most- 
            favored-nation rate as of July 1, 1991 is the over-quota tariff 
            rate specified in Annex 302.2. 
 
            30.  Annex 703.2 (Agriculture - Market Access - Section A - 
            Mexico and the United States):  this quota replaces Mexico's 
            current access under the "first tier" of the U.S. tariff rate 
            quota as described in Additional Note 3(b)(i) of Chapter 17 of 
            the Harmonized Tariff Schedule of the United States prior to 
            the date of entry into force of this Agreement. 
 
            31.  Annex 703.2 (Agriculture - Market Access - Section A - 
            Mexico and the United States):  the United States operates a 
            re-export program under Additional U.S. Note 3 to Chapter 17 of 
            the U.S. Harmonized Tariff Schedule and under 7 C.F.R. Part 
            1530 (subparts A and B). 
 
            32.  Annex 703.2 (Agriculture - Market Access - Section B - 
            Canada and Mexico):  the incorporation in paragraph 6 is not 
            intended to override the exceptions to Articles 301 and 309 set 
            out in Canada's and Mexico's respective Schedules to Annex 
            301.3. 
 
            33.  Article 906(4) and (6) (Compatibility and Equivalence):  
            these paragraphs are not intended to restrict the right of the 
            importing Party to revise its measures. 
 
            34.  Article 908(2) (Conformity Assessment):  this paragraph 
            does not treat the issue of membership in the Parties' 
            respective conformity assessment bodies. 
 
            35.  Article 915 (Standards-Related Measures - Definitions):  
            the definition of "standard" shall be interpreted to mean --  
 
                 (a)  characteristics for a good or a service, 
 
                 (b)  characteristics, rules or guidelines for 
 
                      (i)  processes or production methods relating to such 
                           good, or 
 
                      (ii) operating methods relating to such service, and 
 
                 (c)  provisions specifying terminology, symbols, 
                      packaging, marking or labelling for  
 
                      (i)  a good or its related process or production 
                           method, or  
 
                      (ii) a service or its related operating method, for 
                           common and repeated use, including explanatory 
                           and other related provisions,  
 
            set out in a document approved by a standardizing body, with 
            which compliance is not mandatory. 
 
            36.  Article 915 (Standards-Related Measures - Definitions):  
            the definition of "technical regulation" shall be interpreted 
            to mean -- 
 
                 (a)  characteristics or their related processes and 
                      production methods for a good, 
 
                 (b)  characteristics for a service or its related 
                      operating methods, or  
 
                 (c)  provisions specifying terminology, symbols, 
                      packaging, marking, or labelling for 
 
                      (i)  a good or its related process or production 
                           method, or  
 
                      (ii) a service or its related operating method,  
 
            set out in a document, including applicable administrative, 
            explanatory and other related provisions, with which compliance 
            is mandatory. 
 
            37.  Annex 1001.2c (Government Procurement - Country Specific 
            Thresholds):  Canada and the United States will consult 
            regarding this Annex before the entry into force of this 
            Agreement. 
 
            38.  Article 1101 (Investment - Scope and Coverage):  this 
            Chapter covers investments existing on the date of entry into 
            force of this Agreement as well as investments made or acquired 
            thereafter. 
 
            39.  Article 1101(2) (Investment - Scope and Coverage) and 
            Annex 602.3:  to the extent that a Party allows an investment 
            to be made in an activity set out in Annex III or Annex 602.3, 
            the investment shall be entitled to the protection of Chapter 
            Eleven (Investment). 
 
            40.  Article 1106 (Investment-Performance Requirements):  
            Article 1106 does not preclude enforcement of any commitment, 
            undertaking or requirement between private parties. 
 
            41.  Article 1305 (Monopolies):  for purposes of this Article, 
            "monopoly" means an entity, including a consortium or 
            government agency, that in any relevant market in the territory 
            of a Party is maintained or designated as the sole provider of 
            public telecommunications transport networks or services. 
 
            42.  Article 1501 (Competition Law):  no investor may have 
            recourse to investor-state arbitration under the Investment 
            Chapter for any matter arising under this Article. 
 
            43.  Article 1502 (Monopolies and State Enterprises):  nothing 
            in this Article shall be construed to prevent a monopoly from 
            charging different prices in different geographic markets, 
            where such differences are based on normal commercial 
            considerations, such as taking account of supply and demand 
            conditions in those markets. 
 
            44.  Article 1502(3) (Monopolies and State Enterprises):  a 
            "delegation" includes a legislative grant, and a government 
            order, directive or other act transferring to the monopoly, or 
            authorizing the exercise by the monopoly of, governmental 
            authority. 
 
            45.  Article 1502(3)(b) (Monopolies and State Enterprises):  
            differences in pricing between classes of customers, between 
            affiliated and non-affiliated firms, and cross-subsidization 
            are not in themselves inconsistent with this provision; rather, 
            they are subject to this subparagraph when they are used as 
            instruments of anticompetitive behavior by the monopoly firm. 
 
            46.  Article 2005(2) (GATT Dispute Settlement):  this 
            obligation is not intended to be subject to dispute settlement 
            under this Chapter. 

Title:Annex 4011 - Specific Rules of Origin
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:671079

                                       Annex 4011 
 
                                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), 
                                             ____________________ 
 
                 1    The  new tariff items created for purposes of Chapter 
                      Four are shown in the table following Section B. 
 
 
                           2106.90.cc (concentrated mixtures of 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 or vitamins), 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 and 
                           less than 6 percent by weight of grain or grain 
                           products) 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 of 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 50 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 first 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              A change to heading 02.01 through 
                                     02.10 from any other chapter. 
 
 
            Chapter 3           Fish and Crustaceans, Molluscs and Other 
                                Aquatic Invertebrates 
 
            03.01-03.07              A change to heading 03.01 through 
                                     03.07 from any other chapter. 
 
 
            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 Mexican 
                                     tariff item 1901.90.03. 
 
 
            Chapter 5           Products of Animal Origin, Not Elsewhere 
                                Specified or Included 
 
            05.01-05.11              A change to heading 05.01 through 
                                     05.11 from any other chapter. 
 
            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 or bulbs 
            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              A change to heading 06.01 through 
                                     06.04 from any other chapter. 
 
            Chapter 7           Edible Vegetables and Certain Roots and 
                                Tubers 
 
            07.01-07.14              A change to heading 07.01 through 
                                     07.14 from any other chapter. 
 
 
            Chapter 8           Edible Fruit and Nuts; Peel of Citrus Fruit 
                                or Melons 
 
            08.01-08.14              A change to heading 08.01 through 
                                     08.14 from any other chapter. 
 
 
            Chapter 9           Coffee, Tea, Mat  and Spices 
 
            09.01-09.10              A change to heading 09.01 through 
                                     09.10 from any other chapter. 
 
 
            Chapter 10               Cereals 
 
            10.01-10.08              A change to heading 10.01 through 
                                     10.08 from any other chapter. 
 
 
            Chapter 11               Products of the Milling Industry; 
                                     Malt; Starches; Inulin; Wheat Gluten 
              
            11.01-11.09              A change to heading 11.01 through 
                                     11.09 from any other chapter. 
 
 
            Chapter 12               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 13               Lac; Gums, Resins and Other Vegetable 
                                     Saps and Extracts 
 
            13.01-13.02              A change to heading 13.01 through 
                                     13.02 from any other chapter. 
 
 
            Chapter 14               Vegetable Plaiting Materials; 
                                     Vegetable Products Not Elsewhere 
                                     Specified or Included 
 
            14.01-14.04              A change to heading 14.01 through 
                                     14.04 from any other chapter. 
 
 
            Section III    -    Animal or Vegetable Fats and Oils and Their 
                                Cleavage Products; Prepared Edible Fats; 
                                Animal or Vegetable Waxes (Chapter 15) 
 
            Chapter 15               Animal or Vegetable Fats and Oils and 
                                     Their Cleavage Products; Prepared 
                                     Edible Fats; Animal or Vegetable Waxes 
 
            15.01-15.18              A change to heading 15.01 through 
                                     15.18 from any other chapter. 
 
                 2   See  also  Annex  703.2, Section  A(10)  and (11)  and 
            Section B(9) and (10) for heading 12.02. 
 
            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             A change to subheading 1520.10 from any 
                                other heading, except from heading 15.19. 
 
            1520.90             A change to subheading 1520.90 from any 
                                other subheading. 
 
            15.21-15.22              A change to heading 15.21 through 
                                     15.22 from any other chapter. 
 
 
            Section IV     -    Prepared Foodstuffs; Beverages, Spirits and 
                                Vinegar; Tobacco and Manufactured Tobacco 
                                Substitutes (Chapter 16-24) 
 
            Chapter 16               Preparations of Meat, of Fish or of 
                                     Crustaceans, Molluscs or Other Aquatic 
                                     Invertebrates 
 
            16.01-16.05              A change to heading 16.01 through 
                                     16.05 from any other chapter. 
 
 
            Chapter 17               Sugars and Sugar Confectionery 
 
            17.01-17.03              A change to heading 17.01 through 
                                     17.03 from any other chapter. 
 
            17.04                    A change to heading 17.04 from any 
                                     other heading. 
 
 
            Chapter 18               Cocoa and Cocoa Preparations 
 
            18.01-18.05              A change to heading 18.01 through 
                                     18.05 from any other chapter. 
 
            1806.10 
 
                 1806.10.aa3         A change to Canadian tariff item 
                                     1806.10.10, U.S. tariff item 
                                     1806.10.41 or 1806.10.42 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 of the cocoa powder.   
 
 
                 3   See  also  Annex  703.2, Section  A(10)  and (11)  and 
            Section B(9) and (10). 
 
            1806.20             A change to subheading 1806.20 from any 
                                other heading. 
 
            1806.31             A change to subheading 1806.31 from any 
                                other subheading. 
 
            1806.32             A change to subheading 1806.32 from any 
                                other heading. 
 
            1806.90             A change to subheading 1806.90 from any 
                                other subheading. 
 
 
            Chapter 19               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        A change to subheading 1901.20 from any 
                                other chapter. 
 
            1901.90 
 
                 1901.90.aa          A change to 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 from any other chapter, 
                                     except from Chapter 4. 
 
                 1901.90        A change to subheading 1901.90 from any 
                                other chapter. 
 
            19.02-19.05              A change to heading 19.02 through 
                                     19.05 from any other chapter. 
 
            Chapter 20               Preparations of Vegetables, Fruit, 
                                     Nuts or Other Parts of Plants 
 
                           Note:     Fruit, nut and vegetable preparations 
                                     of Chapter 20 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              A change to heading 20.01 through 
                                     20.07 from any other chapter. 
 
            2008.11 
 
                 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. 
 
                 2008.114       A change to subheading 2008.11 from any 
                                other chapter. 
 
            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          A change to subheading 2009.40 through 
                                     2009.80 from any other chapter. 
 
            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 
                                             ____________________ 
 
                 4   See  also  Annex  703.2, Section  A(10)  and (11)  and 
            Section B(9) and (10). 
 
                                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 21          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          A change to heading 21.02 from any other 
                                chapter. 
 
            2103.10             A change to subheading 2103.10 from any 
                                other chapter. 
 
            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        A change to subheading 2103.20 from any 
                                other chapter. 
 
            2103.30-2103.90     A change to subheading 2103.30 through 
                                2103.90 from any other chapter. 
 
            21.04               A change to heading 21.04 from any other 
                                chapter. 
 
            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 
                                Mexican tariff item 1901.90.03. 
 
            21.06 
 
                 2106.90.bb     A change to Canadian tariff item 
                                2106.90.91, U.S. tariff item 2106.90.16, 
                                2106.90.19A, 2106.90.19B, 2106.90.19C, 
                                2106.90.19D, 2106.90.19E, 2106.90.19F, 
                                2106.90.19G, 2106.90.19H, 2106.90.19I or 
                                2106.90.19J 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 
                                2202.90.30, 2202.90.35, 2202.90.39A, 
                                2202.90.39B, 2202.90.39C, 2202.90.39D, 
                                2202.90.39E, 2202.90.39F, 2202.90.39G, 
                                2202.90.39H, 2202.90.39I or 2202.90.39J or 
                                Mexican tariff item 2202.90.02. 
 
                 2106.90.cc     A change to Canadian tariff item 
                                2106.90.92, U.S. tariff item 2106.90.19K or 
                                2106.90.19L 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 2202.90.39K or 
                                2202.90.39L or Mexican tariff item 
                                2202.90.03; or 
 
                                A change to Canadian tariff item 
                                2106.90.92, U.S. tariff item 2106.90.19K or 
                                2106.90.19L or Mexican tariff item 
                                2106.90.07 from any other subheading within 
                                Chapter 21, heading 20.09 or Canadian 
                                tariff item 2202.90.32, U.S. tariff item 
                                2202.90.39K or 2202.90.39L 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     A change to Canadian tariff item 
                                2106.90.32, U.S. tariff item 2106.90.05, 
                                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 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 1901.90.81 or Mexican tariff 
                                item 1901.90.03. 
 
                 21.065         A change to heading 21.06 from any other 
                                chapter. 
 
 
            Chapter 22          Beverages, Spirits and Vinegar 
 
            22.01               A change to heading 22.01 from any other 
                                chapter. 
 
            2202.10             A change to subheading 2202.10 from any 
                                other chapter. 
 
            2202.90 
 
                 2202.90.aa     A change to Canadian tariff item 
                                2202.90.31, U.S. tariff item 2202.90.30, 
                                2202.90.35, 2202.90.39A, 2202.90.39B, 
                                2202.90.39C, 2202.90.39D, 2202.90.39E, 
                                2202.90.39F, 2202.90.39G, 2202.90.39H, 
                                2202.90.39I or 2202.90.39J 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 2106.90.16, 2106.90.19A, 
                                2106.90.19B, 2106.90.19C, 2106.90.19D, 
                                2106.90.19E, 2106.90.19F, 2106.90.19G, 
                                2106.90.19H, 2106.90.19I or 2106.90.19J or 
                                             ____________________ 
 
                 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. 
 
                                Mexican tariff item 2106.90.06. 
 
                 2202.90.bb     A change to Canadian tariff item 
                                2202.90.32, U.S. tariff item 2202.90.39K or 
                                2202.90.39L or Mexican tariff item 
                                2202.90.03 from any other chapter, except 
                                from heading 20.09 or Canadian tariff item 
                                2106.90.92, U.S. tariff item 2106.90.19K or 
                                2106.90.19L or Mexican tariff item 
                                2106.90.07; or 
 
                                A change to Canadian tariff item 
                                2202.90.32, U.S. tariff item 2202.90.39K or 
                                2202.90.39L or Mexican tariff 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 
                                2106.90.19K or 2106.90.19L or Mexican 
                                tariff item 2106.90.07, 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 or 
                                2202.90.20 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        A change to subheading 2202.90 from any 
                                other chapter. 
 
            22.03-22.09         A change to heading 22.03 through 22.09 
                                from any other heading outside that group. 
 
 
            Chapter 23          Residues and Waste From the Food 
                                Industries; Prepared Animal Fodder 
 
            23.01-23.08         A change to heading 23.01 through 23.08 
                                from any other chapter. 
 
            2309.10             A change to subheading 2309.10 from any 
                                other heading. 
 
            2309.90 
 
                 2309.90.aa     A change to Canadian tariff item 
                                2309.90.32, U.S. tariff item 2309.90.30A, 
                                2309.90.30B or 2309.90.30C or Mexican 
                                tariff item 2309.90.10 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 Mexican tariff item 
                                1901.90.03. 
 
                 2309.90        A change to subheading 2309.90 from any 
                                other heading. 
 
 
            Chapter 24          Tobacco and Manufactured Tobacco 
                                Substitutes 
 
            24.01-24.036        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. 
 
 
                 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". 
 
            Section V -    Mineral Products (Chapter 25-27) 
 
            Chapter 25          Salt; Sulphur; Earths and Stone; Plastering 
                                Materials, Lime and Cement 
 
            25.01-25.30         A change to heading 25.01 through 25.30 
                                from any other chapter. 
 
 
            Chapter 26          Ores, Slag and Ash 
 
            26.01-26.21         A change to heading 26.01 through 26.21 
                                from any other chapter. 
 
 
            Chapter 27          Mineral Fuels, Mineral Oils and Products of 
                                Their Distillation; Bituminous Substances; 
                                Mineral Waxes 
 
            27.01-27.03         A change to heading 27.01 through 27.03 
                                from any other chapter. 
 
            27.04               A change to heading 27.04 from any other 
                                heading. 
 
            27.05-27.09         A change to heading 27.05 through 27.09 
                                from any other chapter. 
 
            27.10-27.15         A change to heading 27.10 through 27.15 
                                from any other heading outside that group. 
 
            27.16               A change to heading 27.16 from any other 
                                heading. 
 
 
            Section VI     -    Products of the Chemical or Allied 
                                Industries (Chapter 28-38) 
 
            Chapter 28          Inorganic Chemicals; Organic or Inorganic 
                                Compounds of Precious Metals, of Rare-Earth 
                                Metals, of Radioactive Elements or of 
                                Isotopes 
 
            28.01-28.24         A change to subheading 2801.10 through 
                                2824.90 from any other chapter, except from 
                                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     A change to subheading 2825.10 through 
                                2825.60 from any other chapter, except from 
                                Chapter 28 through 38; or 
 
                                A change to subheading 2825.10 through 
                                2825.60 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. 
 
            2825.70             A change to subheading 2825.70 from any 
                                other subheading, except from subheading 
                                2613.10. 
 
            2825.80-2825.90          A change to subheading 2825.80 through 
                                     2825.90 from any other chapter, except 
                                     from Chapter 28 through 38; or 
 
                                A change to subheading 2825.80 through 
                                2825.90 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. 
 
            28.26-28.29         A change to subheading 2826.11 through 
                                2829.90 from any other chapter, except from 
                                Chapter 28 through 38; or 
 
                                A change to subheading 2826.11 through 
                                2829.90 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. 
 
            2830.10-2830.30     A change to subheading 2830.10 through 
                                2830.30 from any other chapter, except from 
                                Chapter 28 through 38; or 
 
                                A change to subheading 2830.10 through 
                                2830.30 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. 
 
            2830.90             A change to subheading 2830.90 from any 
                                other subheading, except from subheading 
                                2613.90. 
 
            28.31-28.40         A change to subheading 2831.10 through 
                                2840.30 from any other chapter, except from 
                                Chapter 28 through 38; or 
 
                                A change to subheading 2831.10 through 
                                2840.30 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. 
 
            2841.10-2841.60     A change to subheading 2841.10 through 
                                2841.60 from any other chapter, except from 
                                Chapter 28 through 38; or 
 
                                A change to subheading 2841.10 through 
                                2841.60 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. 
 
            2841.70             A change to subheading 2841.70 from any 
                                other subheading, except from subheading 
                                2613.10. 
 
            2841.80-2841.90     A change to subheading 2841.80 through 
                                2841.90 from any other chapter, except from 
                                Chapter 28 through 38; or 
 
                                A change to subheading 2841.80 through 
                                2841.90 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. 
 
            28.42-28.51         A change to subheading 2842.10 through 
                                2851.00 from any other chapter, except from 
                                Chapter 28 through 38; or 
 
                                A change to subheading 2842.10 through 
                                2851.00 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. 
 
 
            Chapter 29          Organic Chemicals 
 
            29.01-29.42         A change to subheading 2901.10 through 
                                2942.00 from any other chapter, except from 
                                Chapter 28 through 38; or 
 
                                A change to subheading 2901.10 through 
                                2942.00 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. 
 
 
            Chapter 30          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: 
 
                                (a)  60 percent where the transaction value 
                                     method is used, or 
                                (b)  50 percent where the net cost method 
                                     is used. 
 
            30.02               A change to subheading 3002.10 through 
                                3002.90 from any other heading; or 
 
                                A change to subheading 3002.10 through 
                                3002.90 from any other subheading within 
                                heading 30.02, 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 value 
                                     method is used, or 
                                (b)  50 percent where the net cost method 
                                     is used. 
 
            30.03               A change to subheading 3003.10 through 
                                3003.90 from any other heading; or 
 
                                A change to subheading 3003.10 through 
                                3003.90 from any other subheading within 
                                heading 30.03, 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 value 
                                     method is used, or 
                                (b)  50 percent where the net cost method 
                                     is used. 
 
            30.04               A change to subheading 3004.10 through 
                                3004.90 from any other heading, except from 
                                heading 30.03; or 
 
                                A change to subheading 3004.10 through 
                                3004.90 from any other subheading within 
                                heading 30.04, 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 value 
                                     method is used, or 
                                (b)  50 percent where the net cost method 
                                     is used. 
 
            30.05               A change to subheading 3005.10 through 
                                3005.90 from any other heading; or 
 
                                A change to subheading 3005.10 through 
                                3005.90 from any other subheading within 
                                heading 30.05, 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 value 
                                     method is used, or 
                                (b)  50 percent where the net cost method 
                                     is used. 
 
            30.06               A change to subheading 3006.10 through 
                                3006.60 from any other heading; or 
 
                                A change to subheading 3006.10 through 
                                3006.60 from any other subheading within 
                                heading 30.06, 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 value 
                                     method is used, or 
                                (b)  50 percent where the net cost method 
                                     is used. 
 
 
            Chapter 31     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 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. 
 
 
            Chapter 32     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         A change to subheading 3201.10 through 
                                3203.00 from any other chapter, except from 
                                Chapter 28 through 38; or 
 
                                A change to subheading 3201.10 through 
                                3203.00 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. 
 
            3204.11-3204.16     A change to subheading 3204.11 through 
                                3204.16 from any other chapter, except from 
                                Chapter 28 through 38; or 
 
                                A change to subheading 3204.11 through 
                                3204.16 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. 
 
            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 Colours 
 
                                pigment yellow:     1, 3, 16, 55, 61, 62, 
                                                    65, 73, 74, 75, 81, 97, 
                                                    120, 151, 152, 154, 
                                                    156, and 175 
 
                                pigment orange:     4, 5, 13, 34, 36, 60, 
                                                    and 62 
 
                                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 other subheading within Chapter 
                                     29, whether or not there is also a 
                                     change from any other subheading, 
                                     provided there is a regional value 
                                     content of 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     A change to subheading 3204.19 through 
                                3204.90 from any other chapter, except from 
                                Chapter 28 through 38;  or 
 
                                A change to subheading 3204.19 through 
                                3204.90 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. 
 
            32.05               A change to heading 32.05 from any other 
                                heading. 
 
            32.06-32.07         A change to subheading 3206.10 through 
                                3207.40 from any other chapter, except from 
                                Chapter 28 through 38; or 
 
                                A change to subheading 3206.10 through 
                                3207.40 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. 
 
            32.08-32.10         A change to heading 32.08 through 32.10 
                                from any other heading outside that group. 
 
            32.11-32.12         A change to heading 32.11 through 32.12 
                                from any other heading outside that group. 
 
            32.13-32.15         A change to heading 32.13 through 32.15 
                                from any other heading outside that group, 
                                except from heading 32.08 through 32.10. 
 
 
            Chapter 33          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 
 
                                A change to subheading 3301.11 through 
                                3301.90 from any other subheading within 
                                Chapter 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: 
 
                                (a)  60 percent where the transaction value 
                                     method is used, or 
                                (b)  50 percent where the net cost method 
                                     is used. 
 
            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: 
 
                                (a)  60 percent where the transaction value 
                                     method is used, or 
                                (b)  50 percent where the net cost method 
                                     is used. 
 
            33.04-33.07         A change to subheading 3304.10 through 
                                3307.90 from any other heading outside that 
                                group; or 
 
                                A change to subheading 3304.10 through 
                                3307.90 from any other subheading within 
                                that group, whether or not there is also a 
                                change from any other heading outside that 
                                group, 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. 
 
            Chapter 34          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               A change to subheading 3401.11 through 
                                3401.20 from any other heading; or 
 
                                A change to subheading 3401.11 through 
                                3401.20 from any other subheading within 
                                heading 34.01, whether or not there is also 
                                a change from any other heading, provided 
                                there is a regional value content of not 
                                less than: 
 
                                (a)  65 percent where the transaction value 
                                     method is used, or 
                                (b)  50 percent where the net cost method 
                                     is used. 
 
            3402.11-3402.19          A change to subheading 3402.11 through 
                                     3402.19 from any other heading; or 
 
                                A change to subheading 3402.11 through 
                                3402.19 from any other subheading within 
                                heading 34.02, whether or not there is also 
                                a change from any other heading, provided 
                                there is a regional value content of not 
                                less than: 
 
                                (a)  65 percent where the transaction value 
                                     method is used, or 
                                (b)  50 percent where the net cost method 
                                     is used. 
 
            3402.20-3402.90     A change to subheading 3402.20 through 
                                3402.90 from any other subheading outside 
                                that group; or 
 
                                A change to subheading 3402.20 through 
                                3402.90 from any other subheading within 
                                that group, whether or not there is also a 
                                change from any other subheading outside 
                                that group, provided there is a regional 
                                value content of not less than: 
 
                                (a)  65 percent where the transaction value 
                                     method is used, or 
                                (b)  50 percent where the net cost method 
                                     is used. 
 
            34.03               A change to subheading 3403.11 through 
                                3403.99 from any other heading; or 
 
                                A change to subheading 3403.11 through 
                                3403.99 from any other subheading within 
                                heading 34.03, whether or not there is also 
                                a change from any other heading, provided 
                                there is a regional value content of not 
                                less than: 
 
                                (a)  65 percent where the transaction value 
                                     method is used, or 
                                (b)  50 percent where the net cost method 
                                     is used. 
 
            34.04               A change to subheading 3404.10 through 
                                3404.90 from any other heading; or 
 
                                A change to subheading 3404.10 through 
                                3404.90 from any other subheading within 
                                heading 34.04, whether or not there is also 
                                a change from any other heading, provided 
                                there is a regional value content of not 
                                less than: 
 
                                (a)  65 percent where the transaction value 
                                     method is used, or 
                                (b)  50 percent where the net cost method 
                                     is used. 
 
            34.05               A change to subheading 3405.10 through 
                                3405.90 from any other heading; or 
 
                                A change to subheading 3405.10 through 
                                3405.90 from any other subheading within 
                                heading 34.05, whether or not there is also 
                                a change from any other heading, provided 
                                there is a regional value content of not 
                                less than: 
 
                                (a)  65 percent where the transaction value 
                                     method is used, or 
 
                                (b)  50 percent where the net cost method 
                                     is used. 
 
            34.06-34.07         A change to heading 34.06 through 34.07 
                                from any other heading, including another 
                                heading within that group. 
 
 
            Chapter 35     Albuminoidal Substances; Modified Starches; 
                           Glues; Enzymes 
 
            35.01               A change to subheading 3501.10 through 
                                3501.90 from any other heading; or 
 
                                A change to subheading 3501.10 through 
                                3501.90 from any other subheading within 
                                heading 35.01, whether or not there is also 
                                a change from any other heading, provided 
                                there is a regional value content of not 
                                less than: 
 
                                (a)  65 percent where the transaction value 
                                     method is used, or 
                                (b)  50 percent where the net cost method 
                                     is used. 
 
            35.02               A change to subheading 3502.10 through 
                                3502.90 from any other heading; or 
 
                                A change to subheading 3502.10 through 
                                3502.90 from any other subheading within 
                                heading 35.02, whether or not there is also 
                                a change from any other heading, provided 
                                there is a regional value content of not 
                                less than: 
 
                                (a)  65 percent where the transaction value 
                                     method is used, or 
                                (b)  50 percent where the net cost method 
                                     is used. 
 
            35.03-35.04         A change to heading 35.03 through 35.04 
                                from any other heading, including another 
                                heading within that group. 
 
            35.05               A change to subheading 3505.10 through 
                                3505.20 from any other heading; or 
 
                                A change to subheading 3505.10 through 
                                3505.20 from any other subheading within 
                                heading 35.05, whether or not there is also 
                                a change from any other heading, provided 
                                there is a regional value content of not 
                                less than: 
 
                                (a)  65 percent where the transaction value 
                                     method is used, or 
                                (b)  50 percent where the net cost method 
                                     is used. 
 
            35.06               A change to subheading 3506.10 through 
                                3506.99 from any other heading; or 
 
                                A change to subheading 3506.10 through 
                                3506.99 from any other subheading within 
                                heading 35.06, whether or not there is also 
                                a change from any other heading, provided 
                                there is a regional value content of not 
                                less than: 
 
                                (a)  65 percent where the transaction value 
                                     method is used, or 
                                (b)  50 percent where the net cost method 
                                     is used. 
 
            35.07               A change to subheading 3507.10 through 
                                3507.90 from any other heading; or 
 
                                A change to subheading 3507.10 through 
                                3507.90 from any other subheading within 
                                heading 35.07, whether or not there is also 
                                a change from any other heading, provided 
                                there is a regional value content of not 
                                less than: 
 
                                (a)  65 percent where the transaction value 
                                     method is used, or 
                                (b)  50 percent where the net cost method 
                                     is used. 
 
 
            Chapter 36          Explosives; Pyrotechnic Products; Matches; 
                                Pyrophoric Alloys; Certain Combustible 
                                Preparations 
 
            36.01-36.03         A change to heading 36.01 through 36.03 
                                from any other heading, including another 
                                heading within that group. 
 
            36.04               A change to subheading 3604.10 through 
                                3604.90 from any other heading; or 
 
                                A change to subheading 3604.10 through 
                                3604.90 from any other subheading within 
                                heading 36.04, whether or not there is also 
                                a change from any other heading, provided 
                                there is a regional value content of not 
                                less than: 
 
                                (a)  65 percent where the transaction value 
                                     method is used, or 
                                (b)  50 percent where the net cost method 
                                     is used. 
 
            36.05               A change to heading 36.05 from any other 
                                heading. 
 
            36.06               A change to subheading 3606.10 through 
                                3606.90 from any other heading; or 
 
                                A change to subheading 3606.10 through 
                                3606.90 from any other subheading within 
                                heading 36.06, whether or not there is also 
                                a change from any other heading, provided 
                                there is a regional value content of not 
                                less than: 
 
                                (a)  65 percent where the transaction value 
                                     method is used, or 
                                (b)  50 percent where the net cost method 
                                     is used. 
 
 
            Chapter 37          Photographic or Cinematographic Goods 
 
            37.01-37.03         A change to heading 37.01 through 37.03 
                                from any other chapter. 
 
            37.04               A change to heading 37.04 from any other 
                                heading. 
 
            37.05-37.06         A change to heading 37.05 through 37.06 
                                from any heading outside that group. 
 
            37.07               A change to subheading 3707.10 through 
                                3707.90 from any other chapter; or 
 
                                A change to subheading 3707.10 through 
                                3707.90 from any other subheading within 
                                Chapter 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: 
 
                                (a)  65 percent where the transaction value 
                                     method is used, or 
                                (b)  50 percent where the net cost method 
                                     is used. 
 
            Chapter 38     Miscellaneous Chemical Products 
 
            38.01-38.07         A change to subheading 3801.10 through 
                                3807.00 from any other chapter, except from 
                                Chapter 28 through 38; or 
 
                                A change to subheading 3801.10 through 
                                3807.00 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. 
 
            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, or 
                                     80 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, or 70 
                                     percent where the net cost method is 
                                     used and the good contains more than 
                                     one active ingredient. 
 
            38.09-38.23         A change to subheading 3809.10 through 
                                3823.90 from any other chapter, except from 
                                Chapter 28 through 38; or 
 
                                A change to subheading 3809.10 through 
                                3823.90 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. 
 
            Section VII    -    Plastics and Articles Thereof; Rubber and 
                                Articles Thereof              (Chapter 39- 
                                40) 
 
            Chapter 39               Plastics and Articles Thereof 
 
            39.01-39.20         A change to heading 39.01 through 39.20 
                                from any other heading, including another 
                                heading within that group, 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. 
 
            3921.11-3921.13     A change to subheading 3921.11 through 
                                3921.13 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, or 
                                (b)  50 percent where the net cost method 
                                     is used. 
 
            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: 
 
                                (a)  60 percent where the transaction value 
                                     method is used, or 
                                (b)  50 percent where the net cost method 
                                     is used. 
 
            3921.19             A change to subheading 3921.19 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, or 
                                (b)  50 percent where the net cost method 
                                     is used. 
 
            3921.90             A change to subheading 3921.90 from any 
                                other heading, except from subheading 
                                3920.20 or 3920.71.  In addition, the 
                                regional value content percentage must be 
                                not less than: 
 
                                (a)  60 percent where the transaction value 
                                     method is  used, or 
                                (b)  50 percent where the net cost method 
                                     is used. 
 
            39.22                    A change to heading 39.22 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, or 
                                (b)  50 percent where the net cost method 
                                     is used. 
 
            3923.10-3923.21          A change to subheading 3923.10 through 
                                     3923.21 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, or 
                                (b)  50 percent where the net cost method 
                                     is used. 
 
            3923.29             A change to subheading 3923.29 from any 
                                other heading, except from subheading 
                                3920.20 or 3920.71.  In addition, the 
                                regional value content percentage must be 
                                not less than: 
 
                                (a)  60 percent where the transaction value 
                                     method is used, or 
                                (b)  50 percent where the net cost method 
                                     is used. 
 
            3923.30-3923.90     A change to subheading 3923.30 through 
                                3923.90 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, or 
                                (b)  50 percent where the net cost method 
                                     is used. 
 
            39.24-39.26         A change to heading 39.24 through 39.26 
                                from any other heading, including another 
                                heading within that group, 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. 
 
            Chapter 40     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: 
 
                                (a)  60 percent where the transaction value 
                                     method is used, or 
                                (b)  50 percent where the net cost method 
                                     is used. 
 
          40.07-40.08         A change to heading 40.07 through 40.08 from 
                              any heading outside that group. 
 
          4009.10-4009.407    A change to subheading 4009.10 through 
                              4009.40 from any other heading, except from 
                              heading 40.10 through 40.17. 
 
          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,  
                                             ____________________ 
 
                 7    If the good is for use  in a motor vehicle of Chapter 
                      87, the provisions of Article 403 may apply. 
 
                 8    If  the good is for use in a motor vehicle of Chapter 
                      87, the provisions of Article 403 may apply. 
 
 
                              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. 
 
          40.10-40.119        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     A change to subheading 4012.20 through 
                              4012.90 from any other heading, except from 
                              heading 40.09 through 40.17. 
 
          40.13-40.15         A change to heading 40.13 through 40.15 from 
                              any other heading, except from heading 40.09 
                              through 40.17. 
 
          4016.10-4016.92     A change to subheading 4016.10 through 
                              4016.92 from any other heading, except from 
                              heading 40.09 through 40.17. 
 
                 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. 
 
             4016.9310 
 
               4016.93.aa     A change to Canadian tariff item 4016.93.10, 
                              U.S. tariff item 4016.93.00B or Mexican 
                              tariff 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     A change to subheading 4016.94 through 
                              4016.95 from any other heading, except from 
                              heading 40.09 through 40.17. 
 
          4016.9911 
 
               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        A change to subheading 4016.99 from any other 
                              heading, except from heading 40.09 through 
                              40.17. 
 
          40.17               A change to heading 40.17 from any other 
                              heading, except from heading 40.09 through 
                              40.16. 
 
 
                 10   If the good is for use  in a motor vehicle of Chapter 
                      87, the provisions of Article 403 may apply. 
 
                 11   If  the good is for use in a motor vehicle of Chapter 
                      87, the provisions of Article 403 may apply. 
 

          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 41     Raw Hides and Skins (Other Than Furskins) and 
                         Leather 
 
          41.01-41.03         A change to heading 41.01 through 41.03 from 
                              any other chapter. 
 
          41.04               A change to heading 41.04 from any other 
                              heading, except from heading 41.05 through 
                              41.11. 
 
          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               A change to heading 41.06 from heading 41.01 
                              through 41.03, Canadian tariff item 
                              4106.19.10, U.S. tariff item 4106.19.00A or 
                              Mexican tariff item 4106.19.01, or any other 
                              chapter. 
 
          41.07               A change to heading 41.07 from heading 41.01 
                              through 41.03, Canadian tariff item 
                              4107.10.10, U.S. tariff item 4107.10.00B or 
                              Mexican tariff item 4107.10.02, or any other 
                              chapter. 
 
          41.08-41.11         A change to heading 41.08 through 41.11 from 
                              any other heading, except from heading 41.04 
                              through 41.11. 
 
 
          Chapter 42          Articles of Leather; Saddlery and Harness; 
                              Travel Goods, Handbags and Similar 
                              Containers; Articles of Animal Gut (Other 
                              Than Silk-Worm Gut)  
          42.01               A change to heading 42.01 from any other 
                              chapter. 
 
          4202.11             A change to subheading 4202.11 from any other 
                              chapter. 
 
          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. 
 
          4202.19-4202.21     A change to subheading 4202.19 through 
                              4202.21 from any other chapter. 
 
          4202.22             A change to subheading 4202.22 from any other 
                              chapter, except from heading 54.07, 54.08 or 
                              55.12 through 55.16. 
 
          4202.29-4202.31     A change to subheading 4202.29 through 
                              4202.31 from any other chapter. 
 
          4202.32             A change to subheading 4202.32 from any other 
                              chapter, except from heading 54.07, 54.08 or 
                              55.12 through 55.16. 
 
          4202.39-4202.91     A change to subheading 4202.39 through 
                              4202.91 from any other chapter. 
 
          4202.92             A change to subheading 4202.92 from any other 
                              chapter, except from heading 54.07, 54.08 or 
                              55.12 through 55.16. 
 
          4202.99             A change to subheading 4202.99 from any other 
                              chapter.  
 
          42.03-42.06         A change to heading 42.03 through 42.06 from 
                              any other chapter. 
 
 
          Chapter 43          Furskins and Artificial Fur; Manufactures 
                              Thereof 
 
          43.01               A change to heading 43.01 from any other 
                              chapter. 
 
          43.02               A change to heading 43.02 from any other 
                              heading. 
 
          43.03-43.04         A change to heading 43.03 through 43.04 from 
                              any heading outside that group. 
 
 
          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 44          Wood and Articles of Wood; Wood Charcoal 
  
          44.01-44.21         A change to heading 44.01 through 44.21 from 
                              any other heading, including another heading 
                              within that group. 
 
 
          Chapter 45          Cork and Articles of Cork 
 
          45.01-45.02         A change to heading 45.01 through 45.02 from 
                              any other chapter. 
 
          45.03-45.04         A change to heading 45.03 through 45.04 from 
                              any heading outside that group. 
 
 
          Chapter 46          Manufactures of Straw, of Esparto or of Other 
                              Plaiting Materials; Basketware and Wickerwork 
 
          46.01               A change to heading 46.01 from any other 
                              chapter. 
 
          46.02               A change to heading 46.02 from any other 
                              heading. 
 
          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 47          Pulp of Wood or of Other Fibrous Cellulosic 
                              Material; Waste and Scrap of Paper or 
                              Paperboard 
 
          47.01-47.07         A change to heading 47.01 through 47.07 from 
                              any other chapter. 
 
 
          Chapter 48     Paper and Paperboard; Articles of Paper Pulp, of 
                         Paper or of Paperboard 
 
          48.01-48.07         A change to heading 48.01 through 48.07 from 
                              any other chapter. 
 
          48.08-48.09         A change to heading 48.08 through 48.09 from 
                              any heading outside that group. 
 
          48.10-48.13         A change to heading 48.10 through 48.13 from 
                              any other chapter. 
 
          48.14-48.15         A change to heading 48.14 through 48.15 from 
                              any heading outside that group. 
 
          48.16               A change to heading 48.16 from any other 
                              heading, except from heading 48.09. 
 
          48.17-48.23         A change to heading 48.17 through 48.23 from 
                              any heading outside that group. 
 
 
          Chapter 49          Printed Books, Newspapers, Pictures and Other 
                              Products of the Printing Industry; 
                              Manuscripts, Typescripts and Plans 
 
          49.01-49.11         A change to heading 49.01 through 49.11 from 
                              any other chapter. 
 
          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 50     Silk                                               

                                                                       
          50.01-50.03         A change to heading 50.01 through 50.03 from 
                              any other chapter. 
 
          50.04-50.06         A change to heading 50.04 through 50.06 from 
                              any heading outside that group. 
 
          50.07               A change to heading 50.07 from any 
                              other heading. 
 
 
          Chapter 51     Wool, Fine or Coarse Animal Hair; Horsehair Yarn 
                         and Woven Fabric             
          51.01-51.05         A change to heading 51.01 through 51.05 from 
                              any other chapter.   
 
          51.06-51.10         A change to heading 51.06 through 51.10 from 
                              any heading outside that group. 
 
          51.11-51.13         A change to heading 51.11 through 51.13 from 
                              any heading outside that group, except from 
                              heading 51.06 through 51.10, 52.05 through 
                              52.06, 54.01 through 54.04 or 55.09 through 
                              55.10. 
 
 
          Chapter 52     Cotton                                             

 
          52.01-52.07         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. 
 
          52.08-52.12         A change to heading 52.08 through 52.12 from 
                              any heading outside that group, except from 
                              heading 51.06 through 51.10, 52.05 through 
                              52.06, 54.01 through 54.04 or 55.09 through 
                              55.10. 
 
 
          Chapter 53          Other Vegetable Textile Fibers; Paper Yarn 
                              and Woven Fabrics of Paper Yarn               

          53.01-53.05         A change to heading 53.01 through 53.05 from 
                              any other chapter. 
 
          53.06-53.08         A change to heading 53.06 through 53.08 from 
                              any heading outside that group. 
 
          53.09               A change to heading 53.09 from any other 
                              heading, except from heading 53.07 through 
                              53.08. 
 
          53.10-53.11         A change to heading 53.10 through 53.11 from 
                              any heading outside that group, except from 
                              heading 53.07 through 53.08. 
 
 
          Chapter 54     Man-Made Filaments                                 

                                                             
          54.01-54.06         A change to heading 54.01 through 54.06 from 
                              any other chapter, except from heading 52.01 
                              through 52.03 or 55.01 through 55.07. 
 
          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               A change to heading 54.08 from any other 
                              chapter, except from heading 51.06 through 
                              51.10, 52.05 through 52.06 or 55.09 through 
                              55.10. 
 
 
          Chapter 55     Man-Made Staple Fibers                             

                                                         
 
          55.01-55.11         A change to heading 55.01 through 55.11 from 
                              any other chapter, except from heading 52.01 
                              through 52.03 or 54.01 through 54.05. 
 
          55.12-55.16         A change to heading 55.12 through 55.16 from 
                              any heading outside that group, except from 
                              heading 51.06 through 51.10, 52.05 through 
                              52.06, 54.01 through 54.04 or 55.09 through 
                              55.10. 
 
 
          Chapter 56     Wadding, Felt and Nonwovens; Special Yarns; Twine, 
                         Cordage, Ropes and Cables and Articles Thereof     

                                                         
          56.01-56.09         A change to heading 56.01 through 56.09 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, or 
                              Chapter 54 through 55. 

         Chapter 5712   Carpets and Other Textile Floor Coverings          

                                                     
 
          57.01-57.05         A change to heading 57.01 through 57.05 from 
                              any other chapter, except from heading 51.06 
                              through 51.13, 52.04 through 52.12, 53.08 or 
                              53.11, Chapter 54, or heading 55.08 through 
                              55.16. 
 
 
          Chapter 58          Special Woven Fabrics; Tufted Textile 
                              Fabrics; Lace; Tapestries; Trimmings; 
                              Embroidery                                    

                                                          
 
          58.01-58.11         A change to heading 58.01 through 58.11 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, or 
                              Chapter 54 through 55. 
 
 
          Chapter 59          Impregnated, Coated, Covered or Laminated 
                              Textile Fabrics; Textile Articles of a Kind 
                              Suitable For Industrial Use                   

                                             
 
          59.01               A change to heading 59.01 from any other 
                              chapter, except from heading 51.11 through 
                              51.13, 52.08 through 52.12, 53.10 through 
                              53.11, 54.07 through 54.08 or 55.12 through 
                              55.16. 
 
          59.02               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. 
 
          59.03-59.08         A change to heading 59.03 through 59.08 from 
                              any other chapter, except from heading 51.11 
                              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               A change to heading 59.09 from any other 
                              chapter, except from heading 51.11 through 
                              51.13, 52.08 through 52.12 or 53.10 through 
                                             ____________________ 
 
                 12   See  also Annex  300-B (Textile  and  Apparel Goods), 
                      Appendix 6(A). 
 
                              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               A change to heading 59.11 from any other 
                              chapter, except from heading 51.11 through 
                              51.13, 52.08 through 52.12, 53.10 through 
                              53.11, 54.07 through 54.08 or 55.12 through 
                              55.16. 

          Chapter 60     Knitted or Crocheted Fabrics                       

                                                          
 
          60.01-60.02         A change to heading 60.01 through 60.02 from 
                              any other chapter, except from heading 51.06 
                              through 51.13, Chapter 52, heading 53.07 
                              through 53.08 or 53.10 through 53.11, or 
                              Chapter 54 through 55. 
 
 
          Chapter 6113        Articles of Apparel and Clothing Accessories, 
                              Knitted or Crocheted    
 
 
                    Note 1:   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 
                                   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, 
                                   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:   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 
                                             ____________________ 
 
                 13   See  also Annex  300-B (Textile  and  Apparel Goods), 
                      Appendix 6(A). 
 
 
                              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 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.   
 
          6101.10-6101.30     A change to subheading 6101.10 through 
                              6101.30 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:  
 
                              (a)  the good is both cut (or knit to shape) 
                                   and sewn or otherwise assembled in the 
                                   territory of 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 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. 
 
          6102.10-6102.30     A change to subheading 6102.10 through 
                              6102.30 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:  
 
                              (a)  the good is both cut (or knit to shape) 
                                   and sewn or otherwise assembled in the 
                                   territory of 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. 
 
          6102.90             A change to subheading 6102.90 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 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     A change to subheading 6103.11 through 
                              6103.12 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:  
 
                              (a)  the good is both cut (or knit to shape) 
                                   and sewn or otherwise assembled in the 
                                   territory of 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. 
 
          6103.19 
 
               6103.19.aa     A change to Canadian tariff item 6103.19.90, 
                              U.S. tariff item 6103.19.40 or Mexican tariff 
                              item 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 55.08 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. 
 
 
               6103.19        A change to subheading 6103.19 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:  
 
                              (a)  the good is both cut (or knit to shape) 
                                   and sewn or otherwise assembled in the 
                                   territory of 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. 
 
          6103.21-6103.29     A change to subheading 6103.21 through 
                              6103.29 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:  
 
                              (a)  the good is both cut (or knit to shape) 
                                   and sewn or otherwise assembled in the 
                                   territory of one or more of the Parties, 
                                   and  
 
                              (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     A change to subheading 6103.31 through 
                              6103.33 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:  
 
                              (a)  the good is both cut (or knit to shape) 
                                   and sewn or otherwise assembled in the 
                                   territory of 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. 
 
          6103.39 
 
               6103.39.aa     A change to Canadian tariff item 6103.39.90, 
                              U.S. tariff item 6103.39.20 or 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        A change to subheading 6103.39 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:  
 
                              (a)  the good is both cut (or knit to shape) 
                                   and sewn or otherwise assembled in the 
                                   territory of 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. 
 
          6103.41-6103.49     A change to subheading 6103.41 through 
                              6103.49 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. 
 
          6104.11-6104.13     A change to subheading 6104.11 through 
                              6104.13 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:  
 
                              (a)  the good is both cut (or knit to shape) 
                                   and sewn or otherwise assembled in the 
                                   territory of 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. 
 
          6104.19 
 
               6104.19.aa     A change to Canadian tariff item 6104.19.90, 
                              U.S. tariff item 6104.19.20 or Mexican tariff 
                              item 6104.19.02 or 6104.19.99 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 55.08 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. 
 
               6104.19        A change to subheading 6104.19 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:  
 
                              (a)  the good is both cut (or knit to shape) 
                                   and sewn or otherwise assembled in the 
                                   territory of 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. 
 
          6104.21-6104.29     A change to subheading 6104.21 through 
                              6104.29 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:  
 
                              (a)  the good is both cut (or knit to shape) 
                                   and sewn or otherwise assembled in the 
                                   territory of one or more of the Parties, 
                                   and 
 
                              (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     A change to subheading 6104.31 through 
                              6104.33 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: 
 
                              (a)  the good is both cut (or knit to shape) 
                                   and sewn or otherwise assembled in the 
                                   territory of 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. 
 
          6104.39 
 
               6104.39.aa     A change to Canadian tariff item 6104.39.90, 
                              U.S. tariff item 6104.39.20 or Mexican tariff 
                              item 6104.39.02 or 6104.39.99 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. 
 
               6104.39        A change to subheading 6104.39 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: 
 
                              (a)  the good is both cut (or knit to shape) 
                                   and sewn or otherwise assembled in the 
                                   territory of 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. 
 
          6104.41-6104.49     A change to subheading 6104.41 through 
                              6104.49 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. 
 
          6104.51-6104.53     A change to subheading 6104.51 through 
                              6104.53 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: 
 
                              (a)  the good is both cut (or knit to shape) 
                                   and sewn or otherwise assembled in the 
                                   territory of 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. 
 
          6104.59 
 
               6104.59.aa     A change to Canadian tariff item 6104.59.90, 
                              U.S. tariff item 6104.59.20 or Mexican tariff 
                              item 6104.59.02 or 6104.59.99 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 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. 
 
               6104.59        A change to subheading 6104.59 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: 
 
                              (a)  the good is both cut (or knit to shape) 
                                   and sewn or otherwise assembled in the 
                                   territory of 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. 
 
          6104.61-6104.69     A change to subheading 6104.61 through 
                              6104.69 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. 
 
          61.05-61.06         A change to heading 61.05 through 61.06 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. 
 
          6107.11-6107.19     A change to subheading 6107.11 through 
                              6107.19 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. 
 
          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 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 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     A change to subheading 6107.22 through 
                              6107.99 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. 
 
          6108.11-6108.19     A change to subheading 6108.11 through 
                              6108.19 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. 
 
          6108.21             A change to subheading 6108.21 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 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 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. 
 
          6108.22-6108.29     A change to subheading 6108.22 through 
                              6108.29 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. 
 
          6108.31             A change to subheading 6108.31 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, 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 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. 
 
          6108.32-6108.39     A change to subheading 6108.32 through 
                              6108.39 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. 
 
          6108.91-6108.99     A change to subheading 6108.91 through 
                              6108.99 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. 
 
          61.09-61.11         A change to heading 61.09 through 61.11 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. 
 
          6112.11-6112.19     A change to subheading 6112.11 through 
                              6112.19 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. 
 
          6112.20             A change to subheading 6112.20 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: 
 
                              (a)  the good is both cut (or knit to shape) 
                                   and sewn or otherwise assembled in the 
                                   territory of 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 the tariff change 
                                   requirements provided therein. 
 
          6112.31-6112.49     A change to subheading 6112.31 through 
                              6112.49 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. 
 
          61.13-61.17         A change to heading 61.13 through 61.17 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. 
 
 
          Chapter 62          Articles of Apparel and Clothing Accessories, 
                              Not Knitted or Crocheted                      

                                                                            

                                           
                    Note 1:   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 
                                   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 
                                   of cotton; 
 
                              (b)  Corduroy fabrics of subheading 5801.22, 
                                   containing 85 per cent or more by weight 
                                   of cotton and containing more than 7.5 
                                   wales per centimeter; 
 
                              (c)  Fabrics of subheading 5111.11 or 
                                   5111.19, if hand-woven, with a loom 
                                   width of less than 76 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 man-made 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:   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 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     A change to subheading 6201.11 through 
                              6201.13 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: 
 
                              (a)  the good is both cut and sewn or 
                                   otherwise assembled in the territory of 
                                   one or more of the Parties, and  
 
                              (b)  the visible lining fabric listed in Note 
                                   1 to Chapter 62 satisfies the tariff 
                                   change requirements provided therein. 
 
          6201.19             A change to subheading 6201.19 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. 
 
          6201.91-6201.93     A change to subheading 6201.91 through 
                              6201.93 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: 
 
                              (a)  the good is both cut and sewn or 
                                   otherwise assembled in the territory of 
                                   one or more of the Parties, and  
 
                              (b)  the visible lining fabric listed in Note 
                                   1 to Chapter 62 satisfies the tariff 
                                   change requirements provided therein. 
 
          6201.99             A change to subheading 6201.99 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. 
 
          6202.11-6202.13     A change to subheading 6202.11 through 
                              6202.13 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: 
 
                              (a)  the good is both cut and sewn or 
                                   otherwise assembled in the territory of 
                                   one or more of the Parties, and  
 
                              (b)  the visible lining fabric listed in Note 
                                   1 to Chapter 62 satisfies the tariff 
                                   change requirements provided therein. 
 
          6202.19             A change to subheading 6202.19 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. 
 
          6202.91-6202.93     A change to subheading 6202.91 through 
                              6202.93 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: 
 
                              (a)  the good is both cut and sewn or 
                                   otherwise assembled in the territory of 
                                   one or more of the Parties, and  
 
                              (b)  the visible lining fabric listed in Note 
                                   1 to Chapter 62 satisfies the tariff 
                                   change requirements provided therein. 
 
          6202.99             A change to subheading 6202.99 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. 
 
          6203.11-6203.12     A change to subheading 6203.11 through 
                              6203.12 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: 
 
                              (a)  the good is both cut and sewn or 
                                   otherwise assembled in the territory of 
                                   one or more of the Parties, and  
 
                              (b)  the visible lining fabric listed in Note 
                                   1 to Chapter 62 satisfies the tariff 
                                   change requirements provided therein. 
 
               6203.19 
 
               6203.19.aa     A change to Canadian tariff item 6203.19.90, 
                              U.S. tariff item 6203.19.40 or Mexican tariff 
                              item 6203.19.02 or 6203.19.99 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 55.08 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. 
 
               6203.19        A change to subheading 6203.19 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: 
 
                              (a)  the good is both cut and sewn or 
                                   otherwise assembled in the territory of 
                                   one or more of the Parties, and  
 
                              (b)  the visible lining fabric listed in Note 
                                   1 to Chapter 62 satisfies the tariff 
                                   change requirements provided therein. 
 
          6203.21-6203.29     A change to subheading 6203.21 through 
                              6203.29 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: 
 
                              (a)  the good is both cut and sewn or 
                                   otherwise assembled in the territory of 
                                   one or more of the 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 the tariff change requirements 
                                   provided therein. 
 
          6203.31-6203.33     A change to subheading 6203.31 through 
                              6203.33 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: 
 
                              (a)  the good is both cut and sewn or 
                                   otherwise assembled in the territory of 
                                   one or more of the Parties, and  
 
                              (b)  the visible lining fabric listed in Note 
                                   1 to Chapter 62 satisfies the tariff 
                                   change requirements provided therein. 
 
          6203.39 
 
               6203.39.aa     A change to Canadian tariff item 6203.39.90, 
                              U.S. tariff item 6203.39.40 or Mexican tariff 
                              item 6203.39.02 or 6203.39.99 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, 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. 
 
               6203.39        A change to subheading 6203.39 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: 
 
                              (a)  the good is both cut and sewn or 
                                   otherwise assembled in the territory of 
                                   one or more of the Parties, and  
 
                              (b)  the visible lining fabric listed in Note 
                                   1 to Chapter 62 satisfies the tariff 
                                   change requirements provided therein. 
 
          6203.41-6203.49     A change to subheading 6203.41 through 
                              6203.49 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. 
 
          6204.11-6204.13     A change to subheading 6204.11 through 
                              6204.13 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: 
 
                              (a)  the good is both cut and sewn or 
                                   otherwise assembled in the territory of 
                                   one or more of the Parties, and  
 
                              (b)  the visible lining fabric listed in Note 
                                   1 to Chapter 62 satisfies the tariff 
                                   change requirements provided therein. 
 
          6204.19 
 
               6204.19.aa     A change to Canadian tariff item 6204.19.90, 
                              U.S. tariff item 6204.19.30 or Mexican tariff 
                              item 6204.19.02 or 6204.19.99 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 55.08 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. 
 
               6204.19        A change to subheading 6204.19 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: 
 
                              (a)  the good is both cut and sewn or 
                                   otherwise assembled in the territory of 
                                   one or more of the Parties, and  
 
                              (b)  the visible lining fabric listed in Note 
                                   1 to Chapter 62 satisfies the tariff 
                                   change requirements provided therein. 
 
          6204.21-6204.29     A change to subheading 6204.21 through 
                              6204.29 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: 
 
                              (a)  the good is both cut and sewn or 
                                   otherwise assembled in the territory of 
                                   one or more of the 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     A change to subheading 6204.31 through 
                              6204.33 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: 
 
                              (a)  the good is both cut and sewn or 
                                   otherwise assembled in the territory of 
                                   one or more of the Parties, and  
 
                              (b)  the visible lining fabric listed in Note 
                                   1 to Chapter 62 satisfies the tariff 
                                   change requirements provided therein. 
 
          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 
                              Mexican tariff item 6204.39.02 or 6204.39.99 
                              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, 
                              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. 
 
               6204.39        A change to subheading 6204.39 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: 
 
                              (a)  the good is both cut and sewn or 
                                   otherwise assembled in the territory of 
                                   one or more of the Parties, and  
 
                              (b)  the visible lining fabric listed in Note 
                                   1 to Chapter 62 satisfies the tariff 
                                   change requirements provided therein. 
 
          6204.41-6204.49     A change to subheading 6204.41 through 
                              6204.49 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. 
 
          6204.51-6204.53     A change to subheading 6204.51 through 
                              6204.53 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: 
 
                              (a)  the good is both cut and sewn or 
                                   otherwise assembled in the territory of 
                                   one or more of the Parties, and  
 
                              (b)  the visible lining fabric listed in Note 
                                   1 to Chapter 62 satisfies the tariff 
                                   change requirements provided therein. 
 
          6204.59 
 
               6204.59.aa     A change to Canadian tariff item 6204.59.90, 
                              U.S. tariff item 6204.59.40 or Mexican tariff 
                              item 6204.59.02 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        A change to subheading 6204.59 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: 
 
                              (a)  the good is both cut and sewn or 
                                   otherwise assembled in the territory of 
                                   one or more of the Parties, and  
 
                              (b)  the visible lining fabric listed in Note 
                                   1 to Chapter 62 satisfies the tariff 
                                   change requirements provided therein. 
 
          6204.61-6204.69     A change to subheading 6204.61 through 
                              6204.69 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. 
 
          6205.10             A change to subheading 6205.10 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. 
 
          6205.20-6205.30    
                    Note:     Men's or boys' shirts of cotton or man-made 
                              fibers shall be considered to originate if 
                              they are both cut and 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)  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 
                                   number14 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 than 70 warp ends and 
                                   filling picks per square centimeter, of 
                                   average yarn number exceeding 70 metric; 
 
 
                              (d)  Fabrics of subheading 5208.22 or 
                                   5208.32, not of square construction, 
                                   containing more than 75 warp ends and 
                                   filling picks per square centimeter, of 
                                   average yarn number exceeding 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 than 85 warp ends and 
                                   filling picks per square centimeter, of 
                                   average yarn number exceeding 85 metric; 
                                             ____________________ 
 
                 14  For definition of "average yarn number" see Annex 300- 
            B, Section 10. 
 
                              (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, of 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. 
 
                              A change to subheading 6205.20 through 
                              6205.30 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. 
 
          6205.90             A change to subheading 6205.90 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 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. 
 
          62.06-62.10         A change to heading 62.06 through 62.10 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. 
 
          6211.11-6211.12     A change to subheading 6211.11 through 
                              6211.12 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. 
 
          6211.20             A change to subheading 6211.20 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: 
 
                              (a)  the good is both cut and sewn or 
                                   otherwise assembled in the territory of 
                                   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 62 satisfies the tariff change 
                                   requirements provided therein. 
 
          6211.31-6211.49     A change to subheading 6211.31 through 
                              6211.49 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. 
 
          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     A change to subheading 6212.20 through 
                              6212.90 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 
                              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. 
 
          62.13-62.17         A change to heading 62.13 through 62.17 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. 
 
 
          Chapter 63     Other Made Up Textile Articles; Sets; Worn 
                         Clothing and Worn Textile Articles; Rags           

                                                      
 
                    Note 1:   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.   
             
 
          63.01-63.02         A change to heading 63.01 through 63.02 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 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. 
 
          63.03 
 
               6303.92.aa     A change to Canadian tariff item 6303.92.10, 
                              U.S. tariff item 6303.92.00A or 6303.92.00B 
                              or 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 assembled in the territory 
                              of one or more of the Parties. 
 
               63.03          A change to heading 63.03 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 
                              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         A change to heading 63.04 through 63.10 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 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. 
 
          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 of Human Hair (Chapter 64- 
                              67) 
 
          Chapter 64     Footwear, Gaiters and the Like; Parts of Such 
                         Articles 
 
          64.01-64.05         A change to heading 64.01 through 64.05 from 
                              any heading outside that group, except from 
                              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     A change to subheading 6406.20 through 
                              6406.99 from any other chapter. 
 
 
          Chapter 65     Headgear and Parts Thereof 
 
          65.01-65.02         A change to heading 65.01 through 65.02 from 
                              any other chapter. 
 
          65.03-65.07         A change to heading 65.03 through 65.07 from 
                              any heading outside that group. 
 
 
          Chapter 66          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               A change to heading 66.02 from any other 
                              heading. 
 
          66.03               A change to heading 66.03 from any other 
                              chapter. 
 
 
          Chapter 67     Prepared Feathers and Down and Articles Made of 
                         Feathers or of Down; Artificial Flowers; Articles 
                         of Human Hair 
 
          67.01 
 
               6701.00.aa     A change to Canadian tariff item 6701.00.10, 
                              U.S. tariff item 6701.00.00A or Mexican 
                              tariff item 6701.00.01 or 6701.00.02 from any 
                              other tariff item. 
 
               67.01          A change to heading 67.01 from any other 
                              chapter. 
 
          67.02               A change to heading 67.02 from any other 
                              heading. 
 
          67.03               A change to heading 67.03 from any other 
                              chapter. 
 
          67.04               A change to heading 67.04 from any other 
                              heading. 
 
 
          Section XIII   -    Articles of Stone, Plaster, Cement, Asbestos, 
                              Mica or Similar Materials; Ceramic Products; 
                              Glass and Glassware (Chapter 68-70) 
 
          Chapter 68     Articles of Stone, Plaster, Cement, Asbestos, Mica 
                         or Similar Materials 
 
          68.01-68.11         A change to heading 68.01 through 68.11 from 
                              any other chapter. 
 
          6812.10             A change to subheading 6812.10 from any other 
                              chapter. 
 
 
          6812.20             A change to subheading 6812.20 from any other 
                              subheading. 
 
          6812.30-6812.40     A change to subheading 6812.30 through 
                              6812.40 from other subheading outside that 
                              group. 
 
          6812.50             A change to subheading 6812.50 from any other 
                              subheading. 
 
          6812.60-6812.90     A change to subheading 6812.60 through 
                              6812.90 from any subheading outside that 
                              group. 
 
          68.13               A change to heading 68.13 from any other 
                              heading. 
 
          68.14-68.15         A change to heading 68.14 through 68.15 from 
                              any other chapter. 
 
 
          Chapter 69     Ceramic Products 
 
          69.01-69.14         A change to heading 69.01 through 69.14 from 
                              any other chapter. 
 
 
          Chapter 70     Glass and Glassware 
 
          70.01-70.02         A change to heading 70.01 through 70.02 from 
                              any other chapter. 
 
          70.03-70.0915       A change to heading 70.03 through 70.09 from 
                              any heading outside that group. 
 
          70.10-70.20         A change to heading 70.10 through 70.20 from 
                              any other heading, except from heading 70.07 
                              through 70.20. 
 
                 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. 
 
 
          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 71) 
 
          Chapter 71     Natural or Cultured Pearls, Precious or Semi- 
                         Precious Stones, Precious Metals, Metals Clad with 
                         Precious Metal, and Articles Thereof; Imitation 
                         Jewellery; Coin (Chapter 71) 
 
          71.01-71.12         A change to heading 71.01 through 71.12 from 
                              any other chapter. 
 
          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. 
 
                              A change to heading 71.13 through 71.18 from 
                              any heading outside that group. 
 
 
          Section XV     -    Base Metals and Articles of Base Metal 
                              (Chapter 72-83) 
 
          Chapter 72     Iron and Steel 
 
          72.01               A change to heading 72.01 from any other 
                              chapter. 
 
          7202.11-7202.60     A change to subheading 7202.11 through 
                              7202.60 from any other chapter. 
 
          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 from any other chapter. 
 
          72.03-72.05         A change to heading 72.03 through 72.05 from 
                              any other chapter. 
 
          72.06-72.07         A change to heading 72.06 through 72.07 from 
                              any heading outside that group. 
 
          72.08-72.16         A change to heading 72.08 through 72.16 from 
                              any heading outside that group. 
  
          72.17               A change to heading 72.17 from any other 
                              heading, except from heading 72.13 through 
                              72.15. 
 
          72.18-72.22         A change to heading 72.18 through 72.22 from 
                              any heading outside that group. 
 
          72.23               A change to heading 72.23 from any other 
                              heading, except from heading 72.21 through 
                              72.22. 
 
          72.24-72.28         A change to heading 72.24 through 72.28 from 
                              any heading outside that group. 
 
          72.29               A change to heading 72.29 from any other 
                              heading, except from heading 72.27 through 
                              72.28. 
 
 
          Chapter 73     Articles of Iron or Steel 
 
          73.01-73.03         A change to heading 73.01 through 73.03 from 
                              any other chapter. 
 
          7304.10-7304.39     A change to subheading 7304.10 through 
                              7304.39 from any other chapter. 
 
          7304.41 
 
               7304.41.aa     A change to Canadian tariff item 7304.41.10, 
                              U.S. tariff item 7304.41.00A or 7304.41.00B 
                              or Mexican tariff item 7304.41.02 from 
                              subheading 7304.49 or any other chapter. 
             
               7304.41        A change to subheading 7304.41 from any other 
                              chapter. 
 
          7304.49-7304.90     A change to subheading 7304.49 through 
                              7304.90 from any other chapter. 
 
          73.05-73.07         A change to heading 73.05 through 73.07 from 
                              any other chapter. 
 
          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 attachments 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         A change to heading 73.09 through 73.11 from 
                              any heading outside that group. 
 
          73.12-73.14         A change to heading 73.12 through 73.14 from 
                              any other heading, including another heading 
                              within that group. 
 
          7315.11-7315.12     A change to subheading 7315.11 through 
                              7315.12 from any other heading; or 
 
                              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: 
 
                              (a)  60 percent where the transaction value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          7315.19             A change to subheading 7315.19 from any other 
                              heading. 
 
          7315.20-7315.89     A change to subheading 7315.20 through 
                              7315.89 from any other heading; or  
                              A change to subheading 7315.20 through 
                              7315.89 from subheading 7315.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          7315.90             A change to subheading 7315.90 from any other 
                              heading. 
 
          73.16               A change to heading 73.16 from any other 
                              heading, except from heading 73.12 or 73.15. 
 
          73.17-73.18         A change to heading 73.17 through 73.18 from 
                              any heading outside that group. 
 
          73.19-73.20         A change to heading 73.19 through 73.20 from 
                              any heading outside that group. 
 
          7321.11 
 
               7321.11.aa     A change to Canadian tariff item 7321.11.19, 
                              U.S. tariff item 7321.11.30 or Mexican tariff 
                              item 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: 
 
                              (a)  60 percent where the transaction value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
  
          7321.12-7321.83     A change to subheading 7321.12 through 
                              7321.83 from any other heading; or 
 
                              A change to subheading 7321.12 through 
                              7321.83 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: 
 
                              (a)  60 percent where the transaction value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
          7321.90 
 
               7321.90.aa     A change to Canadian tariff item 7321.90.51, 
                              U.S. tariff item 7321.90.30A or Mexican 
                              tariff item 7321.90.05 from any other tariff 
                              item. 
 
               7321.90.bb     A change to Canadian tariff item 7321.90.52, 
                              U.S. tariff item 7321.90.30B or Mexican 
                              tariff item 7321.90.06 from any other tariff 
                              item. 
 
               7321.90.cc     A change to Canadian tariff item 7321.90.53, 
                              U.S. tariff item 7321.90.30C or Mexican 
                              tariff item 7321.90.07 from any other tariff 
                              item. 
 
               7321.90        A change to subheading 7321.90 from any other 
                              heading. 
 
          73.22-73.23         A change to heading 73.22 through 73.23 from 
                              any heading outside that group. 
 
          7324.10-7324.29     A change to subheading 7324.10 through 
                              7324.29 from any other heading; or 
            
                              A change to subheading 7324.10 through 
                              7324.29 from subheading 7324.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          7324.90             A change to subheading 7324.90 from any other 
                              heading. 
 
          73.25-73.26         A change to heading 73.25 through 73.26 from 
                              any other heading outside that group. 
 
 
          Chapter 74     Copper and Articles Thereof 
 
          74.01-74.02         A change to heading 74.01 through 74.02 from 
                              any other chapter. 
 
          74.03               A change to heading 74.03 from any other 
                              chapter; or 
 
                              A change to heading 74.03 from heading 74.01 
                              or 74.02 or Canadian tariff item 7404.00.11, 
                              7404.00.21 or 7404.11.91, 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 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. 
 
          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 
                              any other chapter; or 
 
                              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 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 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. 
 
          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 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. 
 
               7408.11        A change to subheading 7408.11 from any other 
                              heading, except from heading 74.07. 
 
          7408.19-7408.29     A change to subheading 7408.19 through 
                              7408.29 from any other heading, except from 
                              heading 74.07. 
 
          74.09               A change to heading 74.09 from any other 
                              heading. 
 
          74.10               A change to heading 74.10 from any other 
                              heading, except from heading 74.09. 
 
          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               A change to heading 74.12 from any other 
                              heading, except from heading 74.11. 
 
          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 
                              change 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, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          74.14-74.18         A change to heading 74.14 through 74.18 from 
                              any other heading, including another heading 
                              within that group. 
 
          7419.10             A change to subheading 7419.10 from any other 
                              heading, except from heading 74.07. 
 
          7419.91-7419.99     A change to subheading 7419.91 through 
                              7419.99 from any other heading. 
 
 
          Chapter 75     Nickel and Articles Thereof 
 
          75.01-75.04         A change to heading 75.01 through 75.04 from 
                              any other chapter. 
 
          75.05               A change to heading 75.05 from any other 
                              heading. 
 
          75.06 
 
               7506.10.aa     A change to Canadian tariff item 7506.10.22, 
                              U.S. tariff item 7506.10.50A or Mexican 
                              tariff item 7506.10.01 from any other tariff 
                              item. 
 
               7506.20.aa     A change to Canadian tariff item 7506.20.92, 
                              U.S. tariff item 7506.20.50A or Mexican 
                              tariff item 7506.20.01 from any other tariff 
                              item. 
 
               75.06          A change to heading 75.06 from any other 
                              heading. 
 
          75.07-75.08         A change to heading 75.07 through 75.08 from 
                              any heading outside that group. 
 
          Chapter 76     Aluminum and Articles Thereof 
 
          76.01-76.03         A change to heading 76.01 through 76.03 from 
                              any other chapter. 
 
          76.04-76.06         A change to heading 76.04 through 76.06 from 
                              any heading outside that group. 
 
          76.07               A change to heading 76.07 from any other 
                              heading. 
 
          76.08-76.09         A change to heading 76.08 through 76.09 from 
                              any heading outside that group. 
 
          76.10-76.13         A change to heading 76.10 through 76.13 from 
                              any other heading, including another heading 
                              within that group. 
 
          76.14               A change to heading 76.14 from any other 
                              heading, except from heading 76.04 through 
                              76.05. 
 
          76.15-76.16         A change to heading 76.15 through 76.16 from 
                              any other heading, including another heading 
                              within that group. 
 
 
          Chapter 78     Lead and Articles Thereof 
 
          78.01-78.02         A change to heading 78.01 through 78.02 from 
                              any other chapter. 
 
          78.03-78.06         A change to heading 78.03 through 78.06 from 
                              any other chapter; or 
 
                              A change to heading 78.03 through 78.06 from 
                              any other heading within Chapter 78, 
                              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:  
 
                              (a)  60 percent where the transaction value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
 
          Chapter 79          Zinc and Articles Thereof 
 
          79.01-79.03         A change to heading 79.01 through 79.03 from 
                              any other chapter. 
 
          79.04-79.07         A change to heading 79.04 through 79.07 from 
                              any other chapter; or 
 
                              A change to heading 79.04 through 79.07 from 
                              any other heading within Chapter 79, 
                              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:  
 
                              (a)  60 percent where the transaction value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
 
          Chapter 80     Tin and Articles Thereof 
 
          80.01-80.02         A change to heading 80.01 through 80.02 from 
                              any other chapter. 
 
          80.03-80.04         A change to heading 80.03 through 80.04 from 
                              any heading outside that group. 
 
          80.05-80.07         A change to heading 80.05 through 80.07 from 
                              any heading outside that group. 
 
 
          Chapter 81          Other Base Metals; Cermets; Articles Thereof 
 
          8101.10-8101.91     A change to subheading 8101.10 through 
                              8101.91 from any other chapter. 
 
          8101.92             A change to subheading 8101.92 from any other 
                              subheading. 
 
          8101.93             A change to subheading 8101.93 from any other 
                              chapter. 
 
          8101.99             A change to subheading 8101.99 from any other 
                              subheading. 
 
          8102.10-8102.91     A change to subheading 8102.10 through 
                              8102.91 from any other chapter. 
 
          8102.92             A change to subheading 8102.92 from any other 
                              subheading. 
 
          8102.93             A change to subheading 8102.93 from any other 
                              subheading, except from Canadian tariff item 
                              8102.92.10, U.S. tariff item 8102.92.00A or 
                              Mexican tariff item 8102.92.01. 
 
          8102.99             A change to subheading 8102.99 from any other 
                              subheading. 
 
          8103.10             A change to subheading 8103.10 from any other 
                              chapter.  
 
          8103.90             A change to subheading 8103.90 from any other 
                              subheading. 
 
          8104.11-8104.30     A change to subheading 8104.11 through 
                              8104.30 from any other chapter. 
 
          8104.90             A change to subheading 8104.90 from any other 
                              subheading. 
 
          8105.10             A change to subheading 8105.10 from any other 
                              chapter. 
 
          8105.90             A change to subheading 8105.90 from any other 
                              subheading. 
 
          81.06               A change to heading 81.06 from any other 
                              chapter. 
 
          8107.10             A change to subheading 8107.10 from any other 
                              chapter. 
 
          8107.90             A change to subheading 8107.90 from any other 
                              subheading. 
 
          8108.10             A change to subheading 8108.10 from any other 
                              chapter. 
 
          8108.90             A change to subheading 8108.90 from any other 
                              subheading. 
 
          8109.10             A change to subheading 8109.10 from any other 
                              chapter. 
 
          8109.90             A change to subheading 8109.90 from any other 
                              subheading. 
 
          81.10               A change to heading 81.10 from any other 
                              chapter. 
  
          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          A change to heading 81.11 from any other 
                              chapter. 
 
          81.12-81.13         A change to heading 81.12 through 81.13 from 
                              any other chapter. 
 
 
          Chapter 82     Tools, Implements, Cutlery, Spoons and Forks, of 
                         Base Metal; Parts Thereof of Base Metal 
 
          82.01-82.15         A change to heading 82.01 through 82.15 from 
                              any other chapter. 
 
 
          Chapter 83     Miscellaneous Articles of Base Metal 
 
          8301.10-8301.50     A change to subheading 8301.10 through 
                              8301.50 from any chapter; or 
 
                              A change to subheading 8301.10 through 
                              8301.50 from subheading 8301.60, 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. 
 
          8301.60-8301.70          A change to subheading 8301.60 through 
                                   8301.70 from any other chapter. 
 
          83.02-83.04              A change to heading 83.02 through 83.04 
                                   from any other heading, including 
                                   another heading within that group. 
 
          8305.10-8305.20          A change to subheading 8305.10 through 
                                   8305.20 from any other chapter; or 
 
                              A change to subheading 8305.10 through 
                              8305.20 from subheading 8305.90, 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. 
 
          8305.90             A change to subheading 8305.90 from any other 
                              heading. 
 
          83.06-83.07              A change to heading 83.06 through 83.07 
                                   from any other chapter. 
 
          8308.10-8308.20          A change to subheading 8308.10 through 
                                   8308.20 from any other chapter; or 
 
                              A change to subheading 8308.10 through 
                              8308.20 from subheading 8308.90, 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. 
 
          8308.90             A change to subheading 8308.90 from any other 
                              heading. 
 
          83.09-83.10              A change to heading 83.09 through 83.10 
                                   from any other chapter. 
 
          8311.10-8311.30          A change to subheading 8311.10 through 
                                   8311.30 from any other chapter; or 
 
                              A change to subheading 8311.10 through 
                              8311.30 from subheading 8311.90, 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. 
 
          8311.90             A change to subheading 8311.90 from any other 
                              heading. 
 
          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 of 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 at least two of the 
                                   following:  printed circuit assembly; 
                                   hard or flexible (floppy) disc drive; 
                                   keyboard; user interface; 
 
                              (b)  light source assemblies, incorporating 
                                   at least two of the following:  light 
                                   emitting diode assembly; gas laser; 
                                   mirror polygon assembly; base casting; 
 
                              (c)  laser imaging assemblies, incorporating 
                                   at least two of the following:  
                                   photoreceptor belt or cylinder; toner 
                                   receptacle unit; toner developing unit; 
                                   charge/discharge unit; cleaning unit; 
 
                              (d)  image fixing assemblies, incorporating 
                                   at least two of the following:  fuser; 
                                   pressure roller; heating element; 
                                   release oil dispenser; cleaning unit; 
                                   electrical control; 
 
                              (e)  ink jet marking assemblies, 
                                   incorporating at least two of the 
                                   following:  thermal print head; ink 
                                   dispensing unit; nozzle and reservoir 
                                   unit; ink heater; 
 
                              (f)  maintenance/sealing assemblies, 
                                   incorporating at least two of the 
                                   following:  vacuum unit; ink jet 
                                   covering unit; sealing unit; purging 
                                   unit; 
 
                              (g)  paper handling assemblies, incorporating 
                                   at least two of the following:  paper 
                                   transport belt; roller; print bar; 
                                   carriage; gripper roller; paper storage 
                                   unit; exit tray; 
 
                              (h)  thermal transfer imaging assemblies, 
                                   incorporating at least two of the 
                                   following:  thermal print head; cleaning 
                                   unit; supply or take-up roller; 
 
                              (i)  ionographic imaging assemblies, 
                                   incorporating at least two 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          A change to subheading 8401.10 through 
                                   8401.30 from any other heading; or 
 
                              A change to subheading 8401.10 through 
                              8401.30 from subheading 8401.40, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8401.40             A change to subheading 8401.40 from any other 
                              heading. 
 
          8402.11-8402.20          A change to subheading 8402.11 through 
                                   8402.20 from any other heading; or 
 
                              A change to subheading 8402.11 through 
                              8402.20 from subheading 8402.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8402.90             A change to subheading 8402.90 from any other 
                              heading; or 
 
                              No required change in tariff classification 
                              to subheading 8402.90, 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. 
 
          8403.10             A change to subheading 8403.10 from any other 
                              heading; or 
 
                              A change to subheading 8403.10 from 
                              subheading 8403.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8403.90             A change to subheading 8403.90 from any other 
                              heading. 
 
          8404.10-8404.20          A change to subheading 8404.10 through 
                                   8404.20 from any other heading; or 
 
                              A change to subheading 8404.10 through 
                              8404.20 from subheading 8404.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8404.90             A change to subheading 8404.90 from any other 
                              heading. 
 
          8405.10             A change to subheading 8405.10 from any other 
                              heading; or 
 
                              A change to subheading 8405.10 from 
                              subheading 8405.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8405.90             A change to subheading 8405.90 from any other 
                              heading. 
 
          8406.11-8406.19          A change to subheading 8406.11 through 
                                   8406.19 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 8406.90.20, 
                                   8406.90.40, 8406.90.50 or 8406.90.70 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 item 8406.90.10B 
                                   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        A change to subheading 8406.90 from any other 
                              heading. 
 
          84.07-84.0816            A change to heading 84.07 through 
                                   84.08 from any other heading, including 
                                   another heading within that group, 
                                   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. 
 
          8409.1017           A change to subheading 8409.10 from any 
                              other heading. 
 
          8409.9118           A change to subheading 8409.91 from any 
                              other heading; or 
 
                              No required change in tariff classification 
                              to subheading 8409.91, provided there is a 
                              regional value content of not less than: 
 
                                         ____________________ 
 
               16   If the good is  for use in  a motor vehicle of  Chapter 
                    87, the provisions of Article 403 may apply. 
 
               17   If the  good is for use  in a motor vehicle  of Chapter 
                    87, the provisions of Article 403 may apply. 
 
               18   If  the good is for  use in a  motor vehicle of Chapter 
                    87, the provisions of Article 403 may apply. 
 
                              (a)  60 percent where the transaction value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8409.9919           A change to subheading 8409.99 from any 
                              other heading; or 
 
                              No required change in tariff classification 
                              to subheading 8409.99, 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. 
 
          8410.11-8410.13          A change to subheading 8410.11 through 
                                   8410.13 from any other heading; or 
 
 
               19   If  the good is for  use in a  motor vehicle of Chapter 
                    87, the provisions of Article 403 may apply. 
 
                              A change to subheading 8410.11 through 
                              8410.13 from subheading 8410.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8410.90             A change to subheading 8410.90 from any other 
                              heading. 
 
          8411.11-8411.82          A change to subheading 8411.11 through 
                                   8411.82 from any other heading; or 
 
                              A change to subheading 8411.11 through 
                              8411.82 from subheading 8411.91 through 
                              8411.99, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8411.91-8411.99          A change to subheading 8411.91 through 
                                   8411.99 from any other heading. 
 
          8412.10-8412.80          A change to subheading 8412.10 through 
                                   8412.80 from any other heading; or 
 
                              A change to subheading 8412.10 through 
                              8412.80 from subheading 8412.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8412.90             A change to subheading 8412.90 from any other 
                              heading. 
 
          8413.11-8413.8220        A change to subheading 8413.11 through 
                                   8413.82 from any other heading; or 
 
                              A change to subheading 8413.11 through 
                              8413.82 from subheading 8413.91 through 
                              8413.92, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
                              
          8413.91             A change to subheading 8413.91 from any other 
                              heading. 
 
          8413.92             A change to subheading 8413.92 from any other 
                              heading; or 
 
                              No required change in tariff classification 
                              to subheading 8413.92, 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. 
 
          8414.10-8414.20          A change to subheading 8414.10 through 
                                   8414.20 from any other heading; or 
 
                              A change to subheading 8414.10 through 
                              8414.20 from subheading 8414.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8414.30             A change to subheading 8414.30 from any other 
                              subheading, except from Canadian tariff item 
                              8414.90.21 or 8414.90.51, U.S. tariff item 
                              8414.90.20A or 8414.90.20B or Mexican tariff 
                                         ____________________ 
 
               20   If  the good is for  use in a  motor vehicle of Chapter 
                    87, the provisions of Article 403 may apply. 
 
                              item 8414.90.14. 
 
          8414.40-8414.8021        A change to subheading 8414.40 through 
                                   8414.80 from any other heading; or 
 
                              A change to subheading 8414.40 through 
                              8414.80 from subheading 8414.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8414.90             A change to subheading 8414.90 from any other 
                              heading; or 
 
                              No required change in tariff classification 
                              to subheading 8414.90, 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. 
 
          8415.10             A change to subheading 8415.10 from any other 
                              subheading, 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 or 
                              8415.90.00B or Mexican tariff item 8415.90.01 
                              or from assemblies incorporating at least two 
                              of the following:  compressor, condenser, 
                              evaporator, connecting tubing. 
 
               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. 
 
          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 
                                   or 8415.90.00B or Mexican tariff item 
                                   8415.90.01 or from assemblies 
                                   incorporating at least two 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 assemblies 
                              incorporating at least two 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 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. 
 
          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        A change to subheading 8415.90 from any other 
                              heading. 
 
          8416.10-8416.30          A change to subheading 8416.10 through 
                                   8416.30 from any other heading; or 
 
                              A change to subheading 8416.10 through 
                              8416.30 from subheading 8416.90, whether or 
                              not there is also a change from any other 
                              heading, provided there is a regional value 
                              content of not less than: 

               22   If  the good is for  use in a  motor vehicle of Chapter 
                    87, the provisions of Article 403 may apply. 
 
                              (a)  60 percent where the transaction value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8416.90             A change to subheading 8416.90 from any other 
                              heading. 
 
          8417.10-8417.80          A change to subheading 8417.10 through 
                                   8417.80 from any other heading; or 
 
                              A change to subheading 8417.10 through 
                              8417.80 from subheading 8417.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8417.90             A change to subheading 8417.90 from any other 
                              heading. 
 
          8418.10-8418.21          A change to subheading 8418.10 through 
                                   8418.21 from any subheading outside that 
                                   group, except from subheading 8418.91 or 
                                   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, or 
                                   from assemblies incorporating at least 
                                   two of the following:  compressor, 
                                   condenser, evaporator, connecting 
                                   tubing.  
 
          8418.22             A change to subheading 8418.22 from any other 
                              heading; or 
 
                              A change to subheading 8418.22 from 
                              subheading 8418.91 through 8418.99, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8418.29-8418.40          A change to subheading 8418.29 through 
                                   8418.40 from any subheading outside that 
                                   group, except from subheading 8418.91 or 
                                   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, or 
                                   from assemblies incorporating at least 
                                   two of the following:  compressor, 
                                   condenser, evaporator, connecting 
                                   tubing. 
 
          8418.50-8418.69          A change to subheading 8418.50 through 
                                   8418.69 from any other heading; or 
 
                              A change to subheading 8418.50 through 
                              8418.69 from subheading 8418.91 through 
                              8418.99, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8418.91             A change to subheading 8418.91 from any other 
                              subheading. 
 
          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        A change to subheading 8418.99 from any other 
                              heading. 
 
          8419.11-8419.89          A change to subheading 8419.11 through 
                                   8419.89 from any other heading; or 
 
                              A change to subheading 8419.11 through 
                              8419.89 from subheading 8419.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8419.90             A change to subheading 8419.90 from any other 
                              heading; or 
 
                              No required change in tariff classification 
                              to subheading 8419.90, 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. 
 
          8420.10             A change to subheading 8420.10 from any other 
                              heading; or 
 
                              A change to subheading 8420.10 from 
                              subheading 8420.91 through 8420.99, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8420.91-8420.99          A change to subheading 8420.91 through 
                                   8420.99 from any other heading. 
 
          8421.11             A change to subheading 8421.11 from any other 
                              heading; or 
 
                              A change to subheading 8421.11 from 
                              subheading 8421.91, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8421.12             A change to subheading 8421.12 from any other 
                              subheading, except from Canadian tariff item 
                              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        A change to subheading 8421.19 through 
                                   8421.39 from any other heading; or 
 
                              A change to subheading 8421.19 through 
                              8421.39 from subheading 8421.91 through 
                              8421.99, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
            
          8421.91 
 
               8421.91.aa          A change to Canadian tariff item 
                                   8421.91.11, U.S. tariff item 8421.91.00A 
                                   or Mexican tariff item 8421.91.02 from 
                                   any other tariff item. 
 
               8421.91.bb          A change to Canadian tariff item 
                                   8421.91.12, U.S. tariff item 8421.91.00B 
                                   or Mexican tariff item 8421.91.03 from 
                                   any other tariff item. 
 
               8421.91        A change to subheading 8421.91 from any other 
                              heading. 
 
          8421.99             A change to subheading 8421.99 from any other 
                              heading; or 
 
                              No required change in tariff classification 
                                         ____________________ 
 
               23   If the good  provided for in subheading 8421.39  is for 
                    use in a motor vehicle of Chapter 87, the provisions of 
                    Article 403 may apply. 
 
                              to subheading 8421.99, 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. 
 
          8422.11             A change to subheading 8422.11 from any other 
                              subheading, except from Canadian tariff item 
                              8422.90.11, 8422.90.12, 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          A change to subheading 8422.19 through 
                                   8422.40 from any other heading; or 
 
                              A change to subheading 8422.19 through 
                              8422.40 from subheading 8422.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8422.90 
 
               8422.90.aa          A change to Canadian tariff item 
                                   8422.90.11 or 8422.90.22, U.S. tariff 
                                   item 8422.90.05A or 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 Mexican tariff item 
                                   8422.90.06 from any other tariff item. 
 
               8422.90        A change to subheading 8422.90 from any other 
                              heading. 
 
          8423.10-8423.89          A change to subheading 8423.10 through 
                                   8423.89 from any other heading; or 
 
                              A change to subheading 8423.10 through 
                              8423.89 from subheading 8423.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
            
          8423.90             A change to subheading 8423.90 from any other 
                              heading. 
 
          8424.10-8424.89          A change to subheading 8424.10 through 
                                   8424.89 from any other heading; or 
 
                              A change to subheading 8424.10 through 
                              8424.89 from subheading 8424.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
            
          8424.90             A change to subheading 8424.90 from any other 
                              heading. 
 
          84.25-84.26              A change to heading 84.25 through 84.26 
                                   from any other heading, including 
                                   another heading 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 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. 
            
          8427.10 
 
               8427.10.aa          A change to Canadian tariff item 
                                   8427.10.10, U.S. tariff item 8427.10.00A 
                                   or Mexican tariff 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  
 
                              A change to Canadian tariff item 8427.10.10, 
                              U.S. tariff item 8427.10.00A or Mexican 
                              tariff 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 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. 
            
               8427.10        A change to subheading 8427.10 from any other 
                              heading, except from subheading 8431.20; or 
 
                              A change to subheading 8427.10 from 
                              subheading 8431.20, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
         8427.20 
 
               8427.20.aa          A change to Canadian tariff item 
                                   8427.20.10, U.S. tariff item 8427.20.00A 
                                   or Mexican tariff 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 
 
                              A change to Canadian tariff item 8427.20.10, 
                              U.S. tariff item 8427.20.00A or Mexican 
                              tariff item 8427.20.04 or 8427.20.05 from 
                              heading 84.07 or 84.08 or subheading 8431.20 
                              or 8483.40, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
               8427.20        A change to subheading 8427.20 from any other 
                              heading, except from subheading 8431.20; or 
 
                              A change to subheading 8427.20 from 
                              subheading 8431.20, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8427.90             A change to subheading 8427.90 from any other 
                              heading, except from subheading 8431.20; or 
 
                              A change to subheading 8427.90 from 
                              subheading 8431.20, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          84.28-84.30              A change to heading 84.28 through 84.30 
                                   from any heading outside that group, 
                                   except from heading 84.31; or 
 
                              A change to heading 84.28 through 84.30 from 
                              heading 84.31, 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: 
 
                              (a)  60 percent where the transaction value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8431.10             A change to subheading 8431.10 from any other 
                              heading; or 
 
                              No required change in tariff classification 
                              to subheading 8431.10, 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. 
 
          8431.20             A change to subheading 8431.20 from any other 
                              heading. 
 
          8431.31             A change to subheading 8431.31 from any other 
                              heading; or 
 
                              No required change in tariff classification 
                              to subheading 8431.31, 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. 
 
          8431.39             A change to subheading 8431.39 from any other 
                              heading; or 
 
                              No required change in tariff classification 
                              to subheading 8431.39, 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. 
 
          8431.41-8431.42          A change to subheading 8431.41 through 
                                   8431.42 from any other heading. 
 
          8431.43             A change to subheading 8431.43 from any other 
                              heading; or 
 
                              No required change in tariff classification 
                              to subheading 8431.43, 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. 
 
          8431.49             A change to subheading 8431.49 from any other 
                              heading; or 
 
                              No required change in tariff classification 
                              to subheading 8431.49, 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. 
 
          8432.10-8432.80          A change to subheading 8432.10 through 
                                   8432.80 from any other heading; or 
 
                              A change to subheading 8432.10 through 
                              8432.80 from subheading 8432.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
            
          8432.90             A change to subheading 8432.90 from any other 
                              heading. 
 
          8433.11-8433.60          A change to subheading 8433.11 through 
                                   8433.60 from any other heading; or 
 
                              A change to subheading 8433.11 through 
                              8433.60 from subheading 8433.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
            
          8433.90             A change to subheading 8433.90 from any other 
                              heading. 
 
          8434.10-8434.20          A change to subheading 8434.10 through 
                                   8434.20 from any other heading; or 
 
                              A change to subheading 8434.10 through 
                              8434.20 from subheading 8434.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
            
          8434.90             A change to subheading 8434.90 from any other 
                              heading. 
 
          8435.10             A change to subheading 8435.10 from any other 
                              heading; or 
 
                              A change to subheading 8435.10 from 
                              subheading 8435.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
            
          8435.90             A change to subheading 8435.90 from any other 
                              heading. 
 
          8436.10-8436.80          A change to subheading 8436.10 through 
                                   8436.80 from any other heading; or 
 
                              A change to subheading 8436.10 through 
                              8436.80 from subheading 8436.91 through 
                              8436.99, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
            
          8436.91-8436.99          A change to subheading 8436.91 through 
                                   8436.99 from any other heading. 
 
          8437.10-8437.80          A change to subheading 8437.10 through 
                                   8437.80 from any other heading; or 
 
                              A change to subheading 8437.10 through 
                              8437.80 from subheading 8437.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8437.90             A change to subheading 8437.90 from any other 
                              heading. 
 
          8438.10-8438.80          A change to subheading 8438.10 through 
                                   8438.80 from any other heading; or 
 
                              A change to subheading 8438.10 through 
                              8438.80 from subheading 8438.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8438.90             A change to subheading 8438.90 from any other 
                              heading. 
 
          8439.10-8439.30          A change to subheading 8439.10 through 
                                   8439.30 from any other heading; or 
 
                              A change to subheading 8439.10 through 
                              8439.30 from subheading 8439.91 through 
                              8439.99, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8439.91-8439.99          A change to subheading 8439.91 through 
                                   8439.99 from any other heading. 
 
          8440.10             A change to subheading 8440.10 from any other 
                              heading; or 
 
                              A change to subheading 8440.10 from 
                              subheading 8440.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8440.90             A change to subheading 8440.90 from any other 
                              heading. 
 
          8441.10-8441.80          A change to subheading 8441.10 through 
                                   8441.80 from any other heading; or 
 
                              A change to subheading 8441.10 through 
                              8441.80 from subheading 8441.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8441.90             A change to subheading 8441.90 from any other 
                              heading; or 
 
                              No required change in tariff classification 
                              to subheading 8441.90, 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. 
 
          8442.10-8442.30          A change to subheading 8442.10 through 
                                   8442.30 from any other heading; or 
 
                              A change to subheading 8442.10 through 
                              8442.30 from subheading 8442.40 through 
                              8442.50, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8442.40-8442.50          A change to subheading 8442.40 through 
                                   8442.50 from any other heading. 
 
          8443.11-8443.50          A change to subheading 8443.11 through 
                                   8443.50 from any other heading; or 
 
                              A change to subheading 8443.11 through 
                              8443.50 from subheading 8443.60 or 8443.90, 
                              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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8443.60             A change to subheading 8443.60 from any other 
                              heading; or 
 
                              A change to subheading 8443.60 from 
                              subheading 8443.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
            
          8443.90             A change to subheading 8443.90 from any other 
                              heading. 
 
          84.44-84.47              A change to heading 84.44 through 84.47 
                                   from any heading outside that group, 
                                   except from heading 84.48; or 
 
                              A change to heading 84.44 through 84.47 from 
                              heading 84.48, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8448.11-8448.19          A change to subheading 8448.11 through 
                                   8448.19 from any other heading; or 
 
                              A change to subheading 8448.11 through 
                              8448.19 from subheading 8448.20 through 
                              8448.59, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8448.20-8448.59          A change to subheading 8448.20 through 
                                   8448.59 from any other heading. 
 
          84.49                    A change to heading 84.49 from any other 
                                   heading. 
 
          8450.11-8450.20          A change to subheading 8450.11 through 
                                   8450.20 from any subheading outside that 
                                   group, except from Canadian tariff item 
                                   8450.90.11, 8450.90.12, 8450.90.21, 
                                   8450.90.22, 8450.90.31, 8450.99.32, 
                                   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 at least two of the 
                                   following:  agitator, motor, 
                                   transmission, clutch. 
 
          8450.90 
 
               8450.90.aa          A change to Canadian tariff item 
                                   8450.90.11, 8450.90.21, 8450.90.31 or 
                                   8450.90.41, U.S. tariff item 8450.90.00A 
                                   or Mexican tariff item 8450.90.01 from 
                                   any other tariff item. 
 
               8450.90.bb          A change to Canadian tariff item 
                                   8450.90.12, 8450.90.22, 8450.90.32 or 
                                   8450.90.42, U.S. tariff item 8450.90.00B 
                                   or Mexican tariff item 8450.90.02 from 
                                   any other tariff item. 
 
               8450.90        A change to subheading 8450.90 from any other 
                              heading. 
 
          8451.10             A change to subheading 8451.10 from any other 
                              heading; or 
 
                              A change to subheading 8451.10 from 
                              subheading 8451.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8451.21-8451.29          A change to subheading 8451.21 through 
                                   8451.29 from any subheading outside that 
                                   group, 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          A change to subheading 8451.30 through 
                                   8451.80 from any other heading; or 
 
                              A change to subheading 8451.30 through 
                              8451.80 from subheading 8451.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          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          A change to Canadian tariff item 
                                   8451.90.12, 8451.90.22 or 8451.90.32, 
                                   U.S. tariff item 8451.90.00B or Mexican 
                                   tariff item 8451.90.02 from any other 
                                   tariff item. 
 
               8451.90        A change to subheading 8451.90 from any other 
                              heading. 
 
          8452.10-8452.30          A change to subheading 8452.10 through 
                                   8452.30 from any other heading; or 
 
                              A change to subheading 8452.10 through 
                              8452.30 from subheading 8452.40 or 8452.90, 
                              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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8452.40-8452.90          A change to subheading 8452.40 through 
                                   8452.90 from any other heading. 
 
          8453.10-8453.80          A change to subheading 8453.10 through 
                                   8453.80 from any other heading; or 
 
                              A change to subheading 8453.10 through 
                              8453.80 from subheading 8453.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8453.90             A change to subheading 8453.90 from any other 
                              heading. 
 
          8454.10-8454.30          A change to subheading 8454.10 through 
                                   8454.30 from any other heading; or 
 
                              A change to subheading 8454.10 through 
                              8454.30 from subheading 8454.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8454.90             A change to subheading 8454.90 from any other 
                              heading. 
 
          8455.10-8455.22          A change to subheading 8455.10 through 
                                   8455.22 from any subheading outside that 
                                   group, except from Canadian tariff item 
                                   8455.90.10, U.S. tariff item 8455.90.00A 
                                   or Mexican tariff item 8455.90.01. 
 
          8455.30             A change to subheading 8455.30 from any other 
                              heading; or 
 
                              A change to subheading 8455.30 from 
                              subheading 8455.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8455.90             A change to subheading 8455.90 from any other 
                              heading. 
 
          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 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, 
                              -    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 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 
                                   from more than one of the following: 
 
                              -    subheading 8413.50 through 8413.60, 
                              -    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 8501.32 or 8501.52, 
                              -    subheading 8537.10. 
 
          8458.11             A change to subheading 8458.11 from any other 
                              heading, except from more than one of the 
                              following:  
 
                              -    subheading 8413.50 through 8413.60, 
                              -    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 8501.32 or 8501.52, 
                              -    subheading 8537.10. 
 
          8458.19             A change to subheading 8458.19 from any other 
                              heading, except from Canadian tariff 
                              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             A change to subheading 8458.91 from any other 
                              heading, except from more than one of the 
                              following: 
 
                              -    subheading 8413.50 through 8413.60, 
                              -    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 8501.32 or 8501.52, 
                              -    subheading 8537.10. 
 
          8458.99             A change to subheading 8458.99 from any other 
                              heading, except from Canadian tariff 
                              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. 
 
          8459.10             A change to subheading 8459.10 from any other 
                              heading, except from Canadian tariff 
                              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. 
 
          8459.21             A change to subheading 8459.21 from any other 
                              heading, except from more than one of the 
                              following: 
 
                              -    subheading 8413.50 through 8413.60, 
                              -    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 8501.32 or 8501.52, 
                              -    subheading 8537.10; or 
 
                              A change to subheading 8459.21 from more than 
                              one of the following:  
 
                              -    subheading 8413.50 through 8413.60, 
                              -    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 8501.32 or 8501.52, 
                              -    subheading 8537.10, 
 
                              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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8459.29             A change to subheading 8459.29 from any other 
                              heading, except from Canadian tariff 
                              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. 
 
          8459.31             A change to subheading 8459.31 from any other 
                              heading, except from more than one of the 
                              following: 
 
                              -    subheading 8413.50 through 8413.60, 
                              -    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 8501.32 or 8501.52, 
                              -    subheading 8537.10; or 
 
                              A change to subheading 8459.31 from more than 
                              one of the following:   
                              -    subheading 8413.50 through 8413.60, 
                              -    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 8501.32 or 8501.52, 
                              -    subheading 8537.10, 
 
                              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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8459.39             A change to subheading 8459.39 from any other 
                              heading, except from Canadian tariff 
                              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. 
 
 
          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:  
 
                              -    subheading 8413.50 through 8413.60, 
                              -    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 8501.32 or 8501.52, 
                              -    subheading 8537.10; or 
 
                              A change to subheading 8459.40 through 
                              8459.51 from more than one of the following:  
 
 
                              -    subheading 8413.50 through 8413.60, 
                              -    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 8501.32 or 8501.52, 
                              -    subheading 8537.10, 
 
                              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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8459.59             A change to subheading 8459.59 from any other 
                              heading, except from Canadian tariff 
                              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. 
 
          8459.61             A change to subheading 8459.61 from any other 
                              heading, except from more than one of the 
                              following:   
 
                              -    subheading 8413.50 through 8413.60, 
                              -    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 8501.32 or 8501.52, 
                              -    subheading 8537.10; or 
 
                              A change to subheading 8459.61 from more than 
                              one of the following: 
             
                              -    subheading 8413.50 through 8413.60, 
                              -    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 8501.32 or 8501.52, 
                              -    subheading 8537.10, 
 
                              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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8459.69             A change to subheading 8459.69 from any other 
                              heading, except from Canadian tariff 
                              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. 
 
          8459.70 
 
               8459.70.aa          A change to Canadian tariff item 
                                   8459.70.10, U.S. tariff item 8459.70.00A 
                                   or Mexican tariff item 8459.70.03 from 
                                   any other heading, except from more than 
                                   one of the following:   
 
                              -    subheading 8413.50 through 8413.60, 
                              -    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 8501.32 or 8501.52, 
                              -    subheading 8537.10; or 
 
                              A change to Canadian tariff item 8459.70.10, 
                              U.S. tariff item 8459.70.00A or Mexican 
                              tariff item 8459.70.03 from more than one of 
                              the following: 
 
                              -    subheading 8413.50 through 8413.60, 
                              -    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 8501.32 or 8501.52, 
                              -    subheading 8537.10, 
 
                              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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
               8459.70        A change to subheading 8459.70 from any other 
                              heading, except from Canadian tariff 
                              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. 
 
          8460.11             A change to subheading 8460.11 from any other 
                              heading, except from more than one of the 
                              following:  
 
                              -    subheading 8413.50 through 8413.60, 
                              -    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 8501.32 or 8501.52, 
                              -    subheading 8537.10. 
 
          8460.19             A change to subheading 8460.19 from any other 
                              heading, except from Canadian tariff 
                              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. 
 
          8460.21             A change to subheading 8460.21 from any other 
                              heading, except from more than one of the 
                              following:  
 
                              -    subheading 8413.50 through 8413.60, 
                              -    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 8501.32 or 8501.52, 
                              -    subheading 8537.10. 
 
          8460.29             A change to subheading 8460.29 from any other 
                              heading, except from Canadian tariff 
                              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. 
 
          8460.31             A change to subheading 8460.31 from any other 
                              heading, except from more than one of the 
                              following:  
 
                              -    subheading 8413.50 through 8413.60, 
                              -    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 8501.32 or 8501.52, 
                              -    subheading 8537.10. 
 
          8460.39             A change to subheading 8460.39 from any other 
                              heading, except from Canadian tariff 
                              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. 
 
          8460.40 
 
               8460.40.aa          A change to Canadian tariff item 
                                   8460.40.10, U.S. tariff item 8460.40.00A 
                                   or Mexican tariff item 8460.40.02 from 
                                   any other heading, except from more than 
                                   one of the following:  
 
                              -    subheading 8413.50 through 8413.60, 
                              -    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 8501.32 or 8501.52, 
                              -    subheading 8537.10. 
 
               8460.40        A change to subheading 8460.40 from any other 
                              heading, except from Canadian tariff 
                              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. 
 
          8460.90 
 
               8460.90.aa          A change to Canadian tariff item 
                                   8460.90.11 or 8460.90.91, U.S. tariff 
                                   item 8460.90.00A or Mexican tariff item 
                                   8460.90.03 from any other heading, 
                                   except from more than one of the 
                                   following:  
 
                              -    subheading 8413.50 through 8413.60, 
                              -    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 8501.32 or 8501.52, 
                              -    subheading 8537.10. 
 
               8460.90        A change to subheading 8460.90 from any other 
                              heading, except from Canadian tariff 
                              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. 
 
          8461.10 
 
               8461.10.aa          A change to Canadian tariff item 
                                   8461.10.10, U.S. tariff item 8461.10.00A 
                                   or Mexican tariff item 8461.10.03 from 
                                   any other heading, except from more than 
                                   one of the following:  
 
                              -    subheading 8413.50 through 8413.60, 
                              -    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 8501.32 or 8501.52, 
                              -    subheading 8537.10. 
 
               8461.10        A change to subheading 8461.10 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. 
 
          8461.20 
 
               8461.20.aa          A change to Canadian tariff item 
                                   8461.20.11 or 8461.20.21, US. tariff 
                                   item 8461.20.00A or Mexican tariff item 
                                   8461.20.01 from any other heading, 
                                   except from more than one of the 
                                   following:  
 
                              -    subheading 8413.50 through 8413.60, 
                              -    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 8501.32 or 8501.52, 
                              -    subheading 8537.10. 
 
               8461.20        A change to subheading 8461.20 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. 
 
          8461.30 
 
               8461.30.aa          A change to Canadian tariff item 
                                   8461.30.10, U.S. tariff item 8461.30.00A 
                                   or Mexican tariff item 8461.30.01 from 
                                   any other heading, except from more than 
                                   one of the following:  
 
                              -    subheading 8413.50 through 8413.60, 
                              -    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 8501.32 or 8501.52, 
                              -    subheading 8537.10. 
 
               8461.30        A change to subheading 8461.30 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.  
 
          8461.40             A change to subheading 8461.40 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.  
 
          8461.50 
 
               8461.50.aa          A change to Canadian tariff item 
                                   8461.50.10, U.S. tariff item 8461.50.00A 
                                   or Mexican tariff item 8461.50.03 from 
                                   any other heading, except from more than 
                                   one of the following:  
 
                              -    subheading 8413.50 through 8413.60, 
                              -    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 8501.32 or 8501.52, 
                              -    subheading 8537.10. 
             
               8461.50        A change to subheading 8461.50 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.  
 
          8461.90 
 
               8461.90.aa          A change to Canadian tariff item 
                                   8461.90.11 or 8461.90.91, U.S. tariff 
                                   item 8461.90.00A or Mexican tariff item 
                                   8461.90.02 from any other heading, 
                                   except from more than one of the 
                                   following:  
 
                              -    subheading 8413.50 through 8413.60, 
                              -    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 8501.32 or 8501.52, 
                              -    subheading 8537.10. 
             
               8461.90        A change to subheading 8461.90 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.  
 
          8462.10             A change to subheading 8462.10 from any other 
                              heading, except from 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. 
 
          8462.21             A change to subheading 8462.21 from any other 
                              heading, except from more than one of the 
                              following: 
 
                              -    subheading 8413.50 through 8413.60, 
                              -    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, 
                              -    subheading 8501.32 or 8501.52, 
                              -    subheading 8537.10. 
 
          8462.29             A change to subheading 8462.29 from any other 
                              heading, except from 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. 
 
          8462.31             A change to subheading 8462.31 from any other 
                              heading, except from more than one of the 
                              following:  
 
                              -    subheading 8413.50 through 8413.60, 
                              -    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, 
                              -    subheading 8501.32 or 8501.52, 
                              -    subheading 8537.10. 
             
          8462.39             A change to subheading 8462.39 from any other 
                              heading, except from 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. 
 
          8462.41             A change to subheading 8462.41 from any other 
                              heading, except from more than one of the 
                              following:   
 
                              -    subheading 8413.50 through 8413.60, 
                              -    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, 
                              -    subheading 8501.32 or 8501.52, 
                              -    subheading 8537.10. 
             
          8462.49             A change to subheading 8462.49 from any other 
                              heading, except from 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. 
 
          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 8413.50 through 8413.60, 
                              -    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, 
                              -    subheading 8501.32 or 8501.52, 
                              -    subheading 8537.10. 
             
               8462.91        A change to subheading 8462.91 from any other 
                              heading, except from 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. 
 
          8462.99 
 
               8462.99.aa          A change to Canadian tariff item 
                                   8462.99.10, U.S. tariff item 8462.99.00A 
                                   or Mexican tariff item 8462.99.05 from 
                                   any other heading, except from more than 
                                   one of the following:   
 
                              -    subheading 8413.50 through 8413.60, 
                              -    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, 
                              -    subheading 8501.32 or 8501.52, 
                              -    subheading 8537.10. 
 
               8462.99        A change to subheading 8462.99 from any other 
                              heading, except from 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. 
 
          84.63                    A change to heading 84.63 from any other 
                                   heading, except from Canadian tariff 
                                   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 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: 
 
                              (a)  60 percent where the transaction value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          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 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, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          84.66                    A change to heading 84.66 from any other 
                                   heading. 
 
          8467.11-8467.89          A change to subheading 8467.11 through 
                                   8467.89 from any other heading; or 
 
                              A change to subheading 8467.11 through 
                              8467.89 from subheading 8467.91, 8467.92 or 
                              8467.99, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8467.91-8467.99          A change to subheading 8467.91 through 
                                   8467.99 from any other heading. 
 
          8468.10-8468.80          A change to subheading 8468.10 through 
                                   8468.80 from any other heading; or 
 
                              A change to subheading 8468.10 through 
                              8468.80 from subheading 8468.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8468.90             A change to subheading 8468.90 from any other 
                              heading. 
 
          84.69 
 
               8469.10.aa          A change to Canadian tariff item 
                                   8469.10.20, U.S. tariff item 8469.10.00A 
                                   or Mexican tariff item 8469.10.02 from 
                                   any other heading, except from heading 
                                   84.73; or 
 
                              A change to Canadian tariff item 8469.10.20, 
                              U.S. tariff item 8469.10.00A or Mexican 
                              tariff 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 other heading, 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. 
 
          84.70                    A change to heading 84.70 from any other 
                                   heading, except from heading 84.73; or 
 
                              A change to heading 84.70 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: 
 
                              (a)  60 percent where the transaction value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8471.10             A change to subheading 8471.10 from any other 
                              heading, except from heading 84.73; or 
 
                              A change to subheading 8471.10 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: 
 
                              (a)  60 percent where the transaction value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8471.20-8471.91          A change to subheading 8471.20 through 
                                   8471.91 from any subheading outside that 
                                   group. 
 
          8471.92 
 
               8471.92.aa          A change to Canadian tariff item 
                                   8471.92.31, U.S. tariff item 8471.92.40A 
                                   or 8471.92.40B or Mexican tariff item 
                                   8471.92.02 from any other subheading, 
                                   except from subheading 8540.30 or 
                                   Canadian tariff item 8540.91.10, 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 
                                   8471.92.65G, 8471.92.65H or 8471.92.70D 
                                   or Mexican tariff item 8471.92.05 from 
                                   any other tariff item, except from 
                                   Canadian tariff item 8473.30.10, U.S. 
                                   tariff item 8473.30.40C or Mexican 
                                   tariff item 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 
                                   Canadian tariff item 8473.30.10, U.S. 
                                   tariff item 8473.30.40C or Mexican 
                                   tariff item 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 item 8473.30.02. 
 
               8471.92        A change to subheading 8471.92 from any other 
                              subheading.   
 
          8471.93             A change to subheading 8471.93 from any other 
                              subheading.   
 
          8471.99 
 
               8471.99.aa          A change to Canadian tariff item 
                                   8471.99.91, U.S. tariff item 8471.99.15 
                                   or Mexican tariff item 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 Mexican tariff item 
                                   8471.99.02 from any other tariff item.  
 
               8471.99.cc          A change to Canadian tariff item 
                                   8471.99.98, U.S. tariff item 8471.99.60 
                                   or Mexican tariff item 8471.99.03 from 
                                   any other tariff item.  
 
               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                    A change to heading 84.72 from any other 
                                   heading, except from heading 84.73; or 
 
                              A change to heading 84.72 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: 
 
                              (a)  60 percent where the transaction value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8473.10 
 
               8473.10.aa          A change to Canadian tariff item 
                                   8473.10.91, U.S. tariff item 8473.10.00A 
                                   or Mexican tariff 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 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. 
 
          8473.21             A change to subheading 8473.21 from any other 
                              heading; or 
 
                              No required change in tariff classification 
                              to subheading 8473.21,  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. 
 
          8473.29             A change to subheading 8473.29 from any other 
                              heading; or 
 
                              No required change in tariff classification 
                              to subheading 8473.29, 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. 
 
          8473.30 
 
               8473.30.aa          A change to Canadian tariff item 
                                   8473.30.21 or 8473.30.22, U.S. tariff 
                                   item 8473.30.40A or Mexican tariff item 
                                   8473.30.03 from any other tariff item. 
 
               8473.30.bb          A change to Canadian tariff item 
                                   8473.30.23, U.S. tariff item 8473.30.40B 
                                   or Mexican tariff item 8473.30.04 from 
                                   any other tariff item. 
 
               8473.30.cc          A change to Canadian tariff item 
                                   8473.30.10, U.S. tariff item 8473.30.40C 
                                   or Mexican tariff item 8473.30.02 from 
                                   any other tariff item. 
 
               8473.30        A change to subheading 8473.30 from any other 
                              heading. 
 
          8473.40             A change to subheading 8473.40 from any other 
                              heading; or 
 
                              No required change in tariff classification 
                              to subheading 8473.40, 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. 
 
          8474.10-8474.80          A change to subheading 8474.10 through 
                                   8474.80 from any other heading; or 
 
                              A change to subheading 8474.10 through 
                              8474.80 from subheading 8474.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8474.90             A change to subheading 8474.90 from any other 
                              heading; or 
 
                              No required change in tariff classification 
                              to subheading 8474.90, 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. 
 
          8475.10-8475.20          A change to subheading 8475.10 through 
                                   8475.20 from any other heading; or 
 
                              A change to subheading 8475.10 through 
                              8475.20 from subheading 8475.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8475.90             A change to subheading 8475.90 from any other 
                              heading. 
 
          8476.11-8476.19          A change to subheading 8476.11 through 
                                   8476.19 from any other heading; or 
 
                              A change to subheading 8476.11 through 
                              8476.19 from subheading 8476.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8476.90             A change to subheading 8476.90 from any other 
                              heading. 
 
          8477.10             A change to subheading 8477.10 from any other 
                              subheading, except from Canadian tariff item 
                              8477.90.11 or 8477.90.21, U.S. tariff item 
                              8477.90.00A or Mexican tariff item 8477.90.01 
                              or from 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             A change to subheading 8477.20 from any other 
                              subheading, except from Canadian tariff item 
                              8477.90.11 or 8477.90.21, U.S. tariff item 
                              8477.90.00A or Mexican tariff item 8477.90.01 
                              or from 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. 
 
          8477.30             A change to subheading 8477.30 from any other 
                              subheading, except from Canadian tariff item 
                              8477.90.11 or 8477.90.21, U.S. tariff item 
                              8477.90.00A or Mexican tariff item 8477.90.01 
                              or from more than one of the following:  
 
                              -    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          A change to subheading 8477.40 through 
                                   8477.80 from any other heading; or 
 
                              A change to subheading 8477.40 through 
                              8477.80 from subheading 8477.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8477.90             A change to subheading 8477.90 from any other 
                              heading. 
 
          8478.10             A change to subheading 8478.10 from any other 
                              heading; or 
 
                              A change to subheading 8478.10 from 
                              subheading 8478.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8478.90             A change to subheading 8478.90 from any other 
                              heading. 
 
          8479.10-8479.81          A change to subheading 8479.10 through 
                                   8479.81 from any other heading; or 
 
                              A change to subheading 8479.10 through 
                              8479.81 from subheading 8479.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          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        A change to subheading 8479.82 from any other 
                              heading; or 
 
                              A change to subheading 8479.82 from 
                              subheading 8479.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          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        A change to subheading 8479.89 from any other 
                              heading; or 
 
                              A change to subheading 8479.89 from 
                              subheading 8479.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8479.90 
 
               8479.90.aa          A change to Canadian tariff item 
                                   8479.90.61, U.S. tariff item 8479.90.80B 
                                   or Mexican tariff item 8479.90.17 from 
                                   any other tariff item. 
 
               8479.90.bb          A change to Canadian tariff item 
                                   8479.90.62, U.S. tariff item 8479.90.80C 
                                   or Mexican tariff item 8479.90.18 from 
                                   any other tariff item. 
 
               8479.90.cc          A change to Canadian tariff item 
                                   8479.90.63, U.S. tariff item 8479.90.80D 
                                   or Mexican tariff item 8479.90.19 from 
                                   any other tariff item. 
 
               8479.90.dd          A change to Canadian tariff item 
                                   8479.90.64, U.S. tariff item 8479.90.80E 
                                   or Mexican tariff item 8479.90.20 from 
                                   any other tariff item. 
 
               8479.90        A change to subheading 8479.90 from any other 
                              heading. 
 
          84.80                    A change to heading 84.80 from any other 
                                   heading. 
 
          8481.10-8481.8024        A change to subheading 8481.10 through 
                                   8481.80 from any other heading; or 
 
                              A change to subheading 8481.10 through 
                              8481.80 from subheading 8481.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8481.90             A change to subheading 8481.90 from any other 
                              heading. 
 
          8482.10-8482.8025        A change to subheading 8482.10 through 
                                   8482.80 from any subheading outside that 
                                   group, 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 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 subheading outside that group, 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. 
 
                                         ____________________ 
 
               24   If the good provided for in subheading 8481.20, 8481.30 
                    or 8481.80 is for use in a motor vehicle of Chapter 87, 
                    the provisions of Article 403 may apply. 
 
               25   If  the good is for  use in a  motor vehicle of Chapter 
                    87, the provisions of Article 403 may apply. 
 
          8482.91-8482.99          A change to subheading 8482.91 through 
                                   8482.99 from any other heading. 
 
          8483.1026           A change to subheading 8483.10 from any 
                              other heading; or 
 
                              A change to subheading 8483.10 from 
                              subheading 8483.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          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 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. 
                                         ____________________ 
 
               26   If the  good is for use  in a motor vehicle  of Chapter 
                    87, the provisions of Article 403 may apply. 
 
               27   If  the good is for  use in a  motor vehicle of Chapter 
                    87, the provisions of Article 403 may apply. 
 
 
          8483.3028           A change to subheading 8483.30 from any 
                              other heading; or 
 
                              A change to subheading 8483.30 from 
                              subheading 8483.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
            
          8483.40-8483.6029        A change to subheading 8483.40 through 
                                   8483.60 from any subheading outside that 
                                   group, 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 8483.40 through 
                              8483.60 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 subheading outside 
                              that group, 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. 
 
          8483.90             A change to subheading 8483.90 from any other 
                              heading. 
 
                                         ____________________ 
 
               28   If the good is  for use in a  motor vehicle of  Chapter 
                    87, the provisions of Article 403 may apply. 
 
               29   If  the  good  provided for  in  subheading  8483.40 or 
                    8483.50 is  for use in  a motor vehicle of  Chapter 87, 
                    the provisions of Article 403 may apply. 
 

          84.84-84.85              A change to heading 84.84 through 84.85 
                                   from any other heading, including 
                                   another heading within that group. 
 
 
          Chapter 85               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:        For purposes of this Chapter, the term, 
                                   "printed circuit assembly", means a good 
                                   consisting of 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 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 at least two of the 
                                   following:  printed circuit assembly; 
                                   modem; hard or flexible (floppy) disc 
                                   drive; keyboard; user interface; 
 
                              (b)  optics module assemblies, incorporating 
                                   at least two of the following:  optics 
                                   lamp; charge couples device and 
                                   appropriate optics; lenses; mirror; 
 
                              (c)  laser imaging assemblies, incorporating 
                                   at least two of the following: 
                                   photoreceptor belt or cylinder; toner 
                                   receptacle unit; toner developing unit; 
                                   charge/discharge unit; cleaning unit; 
 
                              (d)  ink jet marking assemblies, 
                                   incorporating at least two of the 
                                   following: thermal print head; ink 
                                   dispensing unit; nozzle and reservoir 
                                   unit; ink heater; 
 
                              (e)  thermal transfer imaging assemblies, 
                                   incorporating at least two of the 
                                   following: thermal print head; cleaning 
                                   unit; supply or take-up roller; 
 
                              (f)  ionographic imaging assemblies, 
                                   incorporating at least two 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 
                                   at least two of the following:  fuser; 
                                   pressure roller; heating element; 
                                   release oil dispenser; cleaning unit; 
                                   electrical control; 
 
                              (h)  paper handling assemblies, incorporating 
                                   at least two 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:        For purposes of this Chapter: 
 
                              (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 8529.90.39, U.S. 
                                   tariff item 8529.90.10, 8529.90.20A or 
                                   8529.90.35A or Mexican tariff item 
                                   8529.90.18 covers the following parts of 
                                   television receivers: 
 
                              (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 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 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. 
 
          85.0130                  A change to heading 85.01 from any other 
                                   heading, except 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; or 
 
                                         ____________________ 
 
               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. 
 
                              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 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. 
 
          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: 
 
                              (a)  60 percent where the transaction value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used.  
 
          85.03                    A change to heading 85.03 from any other 
                                   heading. 
 
          8504.10-8504.34          A change to subheading 8504.10 through 
                                   8504.34 from any other heading; or 
 
                              A change to subheading 8504.10 through 
                              8504.34 from subheading 8504.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8504.40 
 
               8504.40.aa          A change to Canadian tariff item 
                                   8504.40.40, U.S. tariff item 8504.40.00A 
                                   or 8504.40.00B or Mexican tariff item 
                                   8504.40.12 from any other subheading. 
 
               8504.40.bb          A change to Canadian tariff item 
                                   8504.40.50, U.S. tariff item 8504.40.00C 
                                   or 8504.40.00D or 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 or 8504.90.16, U.S. tariff 
                                   item 8504.90.00A or Mexican tariff item 
                                   8504.90.07. 
 
               8504.40        A change to subheading 8504.40 from any other 
                              heading; or 
 
                              A change to subheading 8504.40 from 
                              subheading 8504.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8504.50             A change to subheading 8504.50 from any other 
                              heading; or 
 
                              A change to subheading 8504.50 from 
                              subheading 8504.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8504.90 
 
               8504.90.bb          A change to Canadian tariff item 
                                   8504.90.80, U.S. tariff item 8504.90.00B 
                                   or Mexican tariff item 8504.90.08 from 
                                   any other tariff item. 
 
               8504.90        A change to subheading 8504.90 from any other 
                              heading. 
 
          8505.11-8505.30          A change to subheading 8505.11 through 
                                   8505.30 from any other heading;or 
 
                              A change to subheading 8505.11 through 
                              8505.30 from subheading 8505.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8505.90             A change to subheading 8505.90 from any other 
                              heading. 
 
          8506.11-8506.20          A change to subheading 8506.11 through 
                                   8506.20 from any other heading; or 
 
                              A change to 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: 
 
                              (a)  60 percent where the transaction value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8506.90             A change to subheading 8506.90 from any other 
                              heading. 
 
          8507.10-8507.8031        A change to subheading 8507.10 through 
                                   8507.80 from any other heading; or 
 
                              A change to subheading 8507.10 through 
                              8507.80 from subheading 8507.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8507.90             A change to subheading 8507.90 from any other 
                              heading. 
                                         ____________________ 
 
               31   If  the good is for  use in a  motor vehicle of Chapter 
                    87, the provisions of Article 403 may apply. 
 
          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 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. 
 
          8508.90             A change to subheading 8508.90 from any other 
                              heading. 
 
          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 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; 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: 
 
                              (a)  60 percent where the transaction value 
                                   method is used, or 
 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8509.80             A change to subheading 8509.80 from any other 
                              heading; or 
 
                              A change to subheading 8509.80 from 
                              subheading 8509.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8509.90             A change to subheading 8509.90 from any other 
                              heading. 
 
          8510.10-8510.20          A change to subheading 8510.10 through 
                                   8510.20 from any other heading; or 
 
                              A change to subheading 8510.10 through 
                              8510.20 from subheading 8510.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8510.90             A change to subheading 8510.90 from any other 
                              heading. 
 
          8511.10-8511.8032        A change to subheading 8511.10 through 
                                   8511.80 from any other heading; or 
 
                              A change to subheading 8511.10 through 
                              8511.80 from subheading 8511.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                         ____________________ 
 
               32   If the good provided for in subheading 8511.30, 8511.40 
                    or 8511.50 is for use in a motor vehicle of Chapter 87, 
                    the provisions of Article 403 may apply. 
 
 
                                   used. 
 
          8511.90             A change to subheading 8511.90 from any other 
                              heading. 
 
          8512.10-8512.4033        A change to subheading 8512.10 through 
                                   8512.40 from any other heading; or 
 
                              A change to subheading 8512.10 through 
                              8512.40 from subheading 8512.90, whether or 
                              not there is also a change from any other 
                              heading, provided there is also 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. 
 
          8512.90             A change to subheading 8512.90 from any other 
                              heading. 
 
          8513.10             A change to subheading 8513.10 from any other 
                              heading; or 
 
                              A change to subheading 8513.10 from 
                              subheading 8513.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8513.90             A change to subheading 8513.90 from any other 
                              heading. 
 
          8514.10-8514.40          A change to subheading 8514.10 through 
                                   8514.40 from any other heading; or 
 
                              A change to subheading 8514.10 through 
                              8514.40 from subheading 8514.90, whether or 
                              not there is also a change from any other 
                              heading, provided there is a regional value 
                                         ____________________ 
 
               33   If  the  good  provided for  in  subheading  8512.20 or 
                    8512.40 is  for use in  a motor vehicle of  Chapter 87, 
                    the provisions of Article 403 may apply. 
 
                              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. 
 
          8514.90             A change to subheading 8514.90 from any other 
                              heading. 
 
          8515.11-8515.80          A change to subheading 8515.11 through 
                                   8515.80 from any other heading; or 
 
                              A change to subheading 8515.11 through 
                              8515.80 from subheading 8515.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8515.90             A change to subheading 8515.90 from any other 
                              heading. 
 
          8516.10-8516.29          A change to subheading 8516.10 through 
                                   8516.29 from subheading 8516.80 or any 
                                   other heading; or 
 
                              A change to subheading 8516.10 through 
                              8516.29 from subheading 8516.90, whether or 
                              not there is also a change from subheading 
                              8516.80 or any other heading, 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. 
 
          8516.31             A change to subheading 8516.31 from any other 
                              subheading, except from subheading 8516.80 or 
                              heading 85.01. 
             
          8516.32             A change to subheading 8516.32 from 
                              subheading 8516.80 or any other heading; or 
 
                              A change to subheading 8516.32 from 
                              subheading 8516.90, whether or not there is 
                              also a change from subheading 8516.80 or any 
                              other heading, 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. 
 
          8516.33             A change to subheading 8516.33 from any other 
                              subheading, except from subheading 8516.80, 
                              heading 85.01 or Canadian tariff item 
                              8516.90.21, U.S. tariff item 8516.90.60A or 
                              Mexican tariff item 8516.90.07. 
 
          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 
                              Mexican tariff item 8516.90.08. 
 
          8516.50             A change to subheading 8516.50 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          A change to Canadian tariff item 
                                   8516.60.20, U.S. tariff item 8516.60.40 
                                   or Mexican tariff item 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        A change to subheading 8516.60 from 
                              subheading 8516.80 or any other heading; or 
 
                              A change to subheading 8516.60 from 
                              subheading 8516.90, whether or not there is 
                              also a change from subheading 8516.80 or any 
                              other heading, 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. 
 
          8516.71             A change to subheading 8516.71 from 
                              subheading 8516.80 or any other heading; or 
 
                              A change to subheading 8516.71 from 
                              subheading 8516.90, whether or not there is 
                              also a change from subheading 8516.80 or any 
                              other heading, 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. 
 
          8516.72             A change to subheading 8516.72 from any other 
                              subheading, except 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; 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: 
 
                              (a)  60 percent where the transaction value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8516.79             A change to subheading 8516.79 from 
                              subheading 8516.80 or from any other heading; 
                              or 
 
                              A change to subheading 8516.79 from 
                              subheading 8516.90, whether or not there is 
                              also a change from subheading 8516.80 or any 
                              other heading, 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. 
 
          8516.80             A change to subheading 8516.80 from any other 
                              heading; or 
 
                              A change to subheading 8516.80 from 
                              subheading 8516.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8516.90 
 
               8516.90.cc          A change to Canadian tariff item 
                                   8516.90.42, U.S. tariff item 8516.90.60C 
                                   or Mexican tariff item 8516.90.09 from 
                                   any other tariff item. 
 
               8516.90.dd          A change to Canadian tariff item 
                                   8516.90.41, U.S. tariff item 8516.90.60D 
                                   or Mexican tariff item 8516.90.10 from 
                                   any other tariff item. 
 
               8516.90.ee          A change to Canadian tariff item 
                                   8516.90.51, U.S. tariff item 8516.90.20A 
                                   or Mexican tariff item 8516.90.11 from 
                                   any other tariff item. 
 
               8516.90.ff          A change to Canadian tariff item 
                                   8516.90.52, U.S. tariff item 8516.90.20B 
                                   or Mexican tariff item 8516.90.12 from 
                                   any other tariff item. 
 
               8516.90.gg          A change to Canadian tariff item 
                                   8516.90.53, U.S. tariff item 8516.90.20C 
                                   or Mexican tariff item 8516.90.13 from 
                                   any other tariff item. 
 
               8516.90        A change to subheading 8516.90 from any other 
                              heading. 
 
          8517.10             A change to subheading 8517.10 from any other 
                              subheading, except from Canadian tariff item 
                              8517.90.11, 8517.90.12, 8517.90.13, 
                              8517.90.14 or 8517.90.41, U.S. tariff item 
                              8517.90.30A, 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 8517.90.12 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, 
                                   8517.90.13, 8517.90.14, 8517.90.43 or 
                                   8517.90.44, U.S. tariff item 
                                   8473.30.40A, 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          A change to Canadian tariff item 
                                   8517.40.91, U.S. tariff item 8517.40.50 
                                   or Mexican tariff item 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, 8517.90.13, 8517.90.14 or 
                                   8517.90.43, U.S. tariff item 
                                   8473.30.40A, 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        A change to subheading 8517.40 from any other 
                              subheading. 
 
          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 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 or 8517.90.43, U.S. tariff item 
                              8473.30.40A, 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. 
 
          8517.82 
 
               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 item 
                                   8517.90.31, U.S. tariff item 8517.90.70A 
                                   or Mexican tariff item 8517.90.10. 
 
               8517.82        A change to subheading 8517.82 from any other 
                              subheading. 
 
          8517.90 
 
               8517.90.aa          A change to Canadian tariff item 
                                   8517.90.41, U.S. tariff item 8517.90.30A 
                                   or Mexican tariff 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          A change to Canadian tariff item 
                                   8517.90.43 or 8517.90.44, U.S. tariff 
                                   item 8517.90.05A, 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: 
 
                              (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. 
 
               8517.90.cc          A change to Canadian tariff item 
                                   8517.90.31, U.S. tariff item 8517.90.70A 
                                   or Mexican tariff item 8517.90.10 from 
                                   any other tariff item. 
 
               8517.90.dd          A change to Canadian tariff item 
                                   8517.90.42, 8517.90.45 or 8517.90.46, 
                                   U.S. tariff item 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          A change to 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 from any other tariff item. 
 
               8517.90.ff          A change to 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 from any other heading. 
 
               8517.90.gg          A change to Canadian tariff item 
                                   8517.90.91, 8517.90.92 or 8517.90.93, 
                                   U.S. tariff item 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        A change to subheading 8517.90 from any other 
                              heading. 
 
          8518.10-8518.21          A change to subheading 8518.10 through 
                                   8518.21 from any other heading; or 
 
                              A change to subheading 8518.10 through 
                              8518.21 from subheading 8518.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8518.22             A change to subheading 8518.22 from any other 
                              heading; or 
 
                              A change to subheading 8518.22 from 
                              subheading 8518.29 or 8518.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8518.29             A change to subheading 8518.29 from any other 
                              heading; or 
 
                              A change to subheading 8518.29 from 
                              subheading 8518.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8518.30 
 
               8518.30.aa          A change to Canadian tariff item 
                                   8518.30.10, U.S. tariff item 8518.30.10 
                                   or Mexican tariff item 8518.30.03 from 
                                   any other tariff item. 
 
               8518.30        A change to subheading 8518.30 from any other 
                              heading; or 
 
                              A change to subheading 8518.30 from 
                              subheading 8518.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8518.40-8518.50          A change to subheading 8518.40 through 
                                   8518.50 from any other heading; or 
 
                              A change to subheading 8518.40 through 
                              8518.50 from subheading 8518.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8518.90             A change to subheading 8518.90 from any other 
                              heading. 
 
          8519.10-8519.9934        A change to subheading 8519.10 through 
                                   8519.99 from any other subheading, 
                                   including 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          A change to subheading 8520.10 through 
                                   8520.90 from any other subheading, 
                                   including another subheading within that 
                                   group, except from Canadian tariff item 
                                   8522.90.31, 8522.90.32, 8522.90.33, 
                                   8522.90.34 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. 
                                         ____________________ 
 
               34   If the good  provided for in subheading 8519.91  is for 
                    use in a motor vehicle of Chapter 87, the provisions of 
                    Article 403 may apply. 
 
 
          8521.10-8521.90          A change to subheading 8521.10 through 
                                   8521.90 from any other subheading, 
                                   including another subheading within that 
                                   group, except from Canadian tariff item 
                                   8522.90.31, 8522.90.32, 8522.90.34, 
                                   8522.90.35 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. 
             
          85.22                    A change to heading 85.22 from any other 
                                   heading. 
 
          85.23-85.24              A change to heading 85.23 through 85.24 
                                   from any other heading, including 
                                   another heading within that group. 
 
          8525.10-8525.20          A change to subheading 8525.10 through 
                                   8525.20 from any subheading outside that 
                                   group, provided that, with respect to 
                                   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 8529.90.30A, 
                                   8529.90.35D, 8529.90.40A, 8529.90.45A or 
                                   8529.90.50A or Mexican tariff item 
                                   8529.90.16: 
 
                              (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. 
 
          8525.30 
 
               8525.30.aa          A change to Canadian tariff item 
                                   8525.30.11 or 8525.30.21, U.S. tariff 
                                   item 8525.30.00A or 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        A change to subheading 8525.30 from any other 
                              subheading, except from Canadian tariff item 
                              8529.90.11, 8529.90.12, 8529.90.13 or 
                              8529.90.14, U.S. tariff item 8529.90.30A, 
                              8529.90.35D, 8529.90.40A, 8529.90.40B, 
                              8529.90.45A or 8529.90.50A or Mexican tariff 
                              item 8529.90.16. 
 
          8526.10             A change to subheading 8526.10 from any other 
                              subheading, except from subheading 8525.20, 
                              Canadian tariff item 8529.90.20, U.S. tariff 
                              item 8529.90.40C, 8529.90.40D or 8529.90.45B 
                              or Mexican tariff item 8529.90.17 or from 
                              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 8529.90.30A, 
                                   8529.90.35D, 8529.90.40A, 8529.90.40B, 
                                   8529.90.45A or 8529.90.50A or Mexican 
                                   tariff item 8529.90.16. 
 
          8526.91-8526.92          A change to subheading 8526.91 through 
                                   8526.92 from any other heading, except 
                                   from heading 85.29; or 
 
                              A change to subheading 8526.91 through 
                              8526.92 from heading 85.29, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8527.11-8527.3935        A change to subheading 8527.11 through 
                                   8527.39 from any other subheading, 
                                   including another subheading within that 
                                   group, except from Canadian tariff item 
                                   8529.90.11, 8529.90.12, 8529.90.13 or 
                                   8529.90.14, U.S. tariff item 
                                   8529.90.30A, 8529.90.35D, 8529.90.40A, 
                                   8529.90.40B, 8529.90.45A or 8529.90.50A 
                                   or Mexican tariff item 8529.90.16. 
 
          8527.90             A change to subheading 8527.90 from any other 
                              subheading, provided that, with respect to 
                              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 
                              8529.90.30A, 8529.90.35D, 8529.90.40A, 
                              8529.90.40B, 8529.90.45A or 8529.90.50A or 
                              Mexican tariff item 8529.90.16: 
 
                              (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. 
 
          8528.10 
 
                                         ____________________ 
 
               35   If  the  good  provided for  in  subheading  8527.21 or 
                    8527.29 is  for use in  a motor vehicle of  Chapter 87, 
                    the provisions of Article 403 may apply. 
 
               8528.10.aa          A change to Canadian tariff item 
                                   8528.10.21 or 8528.10.30, U.S. tariff 
                                   item 8528.10.30A or 8528.10.60B or 
                                   Mexican tariff item 8528.10.01 from any 
                                   other heading, except from Canadian 
                                   tariff item 8529.90.11, 8529.90.12, 
                                   8529.90.13, 8529.90.14, 8529.90.31 or 
                                   8529.90.39, U.S. tariff item 8529.90.10, 
                                   8529.90.20A, 8529.90.20B, 8529.90.30A, 
                                   8529.90.35A, 8529.90.35B, 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          A change to Canadian tariff item 
                                   8528.10.22 or 8528.10.40, U.S. tariff 
                                   item 8528.10.30B or 8528.10.60C or 
                                   Mexican tariff item 8528.10.02 from 
                                   Canadian tariff item 8528.10.11 or 
                                   8528.10.19, U.S. tariff item 8528.10.60A 
                                   or Mexican tariff item 8528.10.07 or any 
                                   other heading, except from Canadian 
                                   tariff item 8540.11.22, U.S. tariff item 
                                   8540.11.00A or Mexican tariff item 
                                   8540.11.01 or more than one of the 
                                   following: 
 
                              -    Canadian tariff item 7011.20.10, U.S. 
                                   tariff item 7011.20.00A or Mexican 
                                   tariff item 7011.20.02 or 7011.20.03, 
                              -    Canadian tariff item 8540.91.10, U.S. 
                                   tariff item 8540.91.40A or Mexican 
                                   tariff item 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          A change to Canadian tariff item 
                                   8528.10.22 or 8528.10.40, U.S. tariff 
                                   item 8528.10.30B or Mexican tariff item 
                                   8528.10.02 from any other heading, 
                                   except from Canadian tariff item 
                                   8529.90.31 or 8540.11.22, U.S. tariff 
                                   item 8529.90.20B, 8529.90.35B or 
                                   8540.11.00A or Mexican tariff item 
                                   8529.90.19 or 8540.11.01 or more than 
                                   one of the following: 
 
                              -    Canadian tariff item 7011.20.10, U.S. 
                                   tariff item 7011.20.00A or Mexican 
                                   tariff item 7011.20.02 or 7011.20.03, 
                              -    Canadian tariff item 8540.91.10, U.S. 
                                   tariff item 8540.91.40A or Mexican 
                                   tariff item 8540.91.03. 
 
               8528.10.cc          A change to Canadian tariff item 
                                   8528.10.24 or 8528.10.60, U.S. tariff 
                                   item 8528.10.30C or 8529.10.60D or 
                                   Mexican tariff item 8528.10.03 from 
                                   Canadian tariff item 8528.10.11 or 
                                   8528.10.19, U.S. tariff item 8528.10.60A 
                                   or Mexican tariff item 8528.10.07 or any 
                                   other heading, except from Canadian 
                                   tariff item 8540.12.90, U.S. tariff item 
                                   8540.12.40A or Mexican tariff item 
                                   8540.12.99 or more than one of the 
                                   following: 
 
                              -    Canadian tariff item 7011.20.10, U.S. 
                                   tariff item 7011.20.00A or Mexican 
                                   tariff item 7011.20.02 or 7011.20.03, 
                              -    Canadian tariff item 8540.91.10, U.S. 
                                   tariff item 8540.91.40A or Mexican 
                                   tariff item 8540.91.03. 
 
               8528.10.dd          A change to Canadian tariff item 
                                   8528.10.23 or 8528.10.50, U.S. tariff 
                                   item 8528.10.30D or 8528.10.60E or 
                                   Mexican tariff item 8528.10.04 from 
                                   Canadian tariff item 8528.10.11 or 
                                   8528.10.19, U.S. tariff item 8528.10.60A 
                                   or Mexican tariff item 8528.10.07 or any 
                                   other heading, 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 
 
                              A change to Canadian tariff item 8528.10.23 
                              or 8528.10.50, U.S. tariff item 8528.10.30D 
                              or 8528.10.60E or Mexican tariff item 
                              8528.10.04 from Canadian tariff item 
                              8528.10.11 or 8528.10.19, U.S. tariff item 
                              8528.10.60A or Mexican tariff item 8528.10.07 
                              or any other heading, 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, the regional value content must 
                              be not less than: 
 
                              (a)  60 percent where the transaction value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
               8528.10.ee          A change to Canadian tariff item 
                                   8528.10.25 or 8528.10.70, U.S. tariff 
                                   item 8528.10.30E or 8528.10.60F or 
                                   Mexican tariff item 8528.10.05 from 
                                   Canadian tariff item 8528.10.11 or 
                                   8528.10.19, U.S. tariff item 8528.10.60A 
                                   or Mexican tariff item 8528.10.07 or any 
                                   other heading, except from Canadian 
                                   tariff item 8540.12.10 or 8540.91.10, 
                                   U.S. tariff item 8540.12.40B 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 8542.11.04, used 
                                   in the television receiver component, 
                                   may be non-originating; or 
 
                              A change to Canadian tariff item 8528.10.25 
                              or 8528.10.70, U.S. tariff item 8528.10.30E 
                              or 8528.10.60F or Mexican tariff item 
                              8528.10.05 from Canadian tariff item 
                              8528.10.11 or 8528.10.19, U.S. tariff item 
                              8528.10.60A or Mexican tariff item 8528.10.07 
                              or any other heading, except from Canadian 
                              tariff item 8540.12.10 or 8540.91.10, U.S. 
                              tariff item 8540.12.40B 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: 
 
                              (a)  60 percent where the transaction value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
               8528.10.ff          A change to Canadian tariff item 
                                   8528.10.26 or 8528.10.80, U.S. tariff 
                                   item 8528.10.30F or 8528.10.60G or 
                                   Mexican tariff item 8528.10.06 from 
                                   Canadian tariff item 8528.10.11 or 
                                   8528.10.19, U.S. tariff item 8528.10.60A 
                                   or Mexican tariff item 8528.10.07 or any 
                                   other heading, except from Canadian 
                                   tariff item 8529.90.40, U.S. tariff item 
                                   8529.90.35C or Mexican tariff item 
                                   8529.90.20. 
 
               8528.10.gg          A change to Canadian tariff item 
                                   8528.10.11 or 8528.10.19, U.S. tariff 
                                   item 8528.10.60A or Mexican tariff item 
                                   8528.10.07 from any other heading. 
 
               8528.10        A change to subheading 8528.10 from Canadian 
                              tariff item 8528.10.11 or 8528.10.19, U.S. 
                              tariff item 8528.10.60A or Mexican tariff 
                              item 8528.10.07 or any other heading, 
                              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. 
 
          8528.20             A change to subheading 8528.20 from any other 
                              heading, provided that, with respect to 
                              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 
                              8529.90.30A, 8529.90.35D, 8529.90.40A, 
                              8529.90.40B, 8529.90.45A or 8529.90.50A or 
                              Mexican tariff item 8529.90.16: 
 
                              (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. 
 
          8529.10             A change to subheading 8529.10 from any other 
                              heading. 
 
          8529.90 
 
               8529.90.aa          A change to Canadian tariff item 
                                   8529.90.11, 8529.90.12, 8529.90.13 or 
                                   8529.90.14, U.S. tariff item 
                                   8529.90.30A, 8529.90.35D, 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, 8529.90.40D or 8529.90.45B 
                                   or Mexican tariff item 8529.90.17 from 
                                   any other tariff item. 
 
               8529.90.cc          A change to Canadian tariff item 
                                   8529.90.39, U.S. tariff item 8529.90.10, 
                                   8529.90.20A or 8529.90.35A or Mexican 
                                   tariff item 8529.90.18 from any other 
                                   tariff item. 
 
               8529.90.dd          A change to Canadian tariff item 
                                   8529.90.31, U.S. tariff item 8529.90.20B 
                                   or 8529.90.35B 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 8529.90.35C 
                                   or Mexican tariff item 8529.90.20 from 
                                   any other tariff item. 
 
               8529.90.ff          A change to Canadian tariff item 
                                   8529.90.51, 8529.90.52, 8529.90.53 or 
                                   8529.90.54, U.S. tariff item 
                                   8529.90.30B, 8529.90.35E, 8529.90.40E, 
                                   8529.90.40F, 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, 8529.90.35F 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, 8529.90.35F or 
                              8529.90.50C or Mexican tariff item 
                              8529.90.22, 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. 
 
               8529.90        A change to subheading 8529.90 from any other 
                              heading. 
 
          8530.10-8530.80          A change to subheading 8530.10 through 
                                   8530.80 from any other heading; or 
 
                              A change to subheading 8530.10 through 
                              8530.80 from subheading 8530.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used.  
 
          8530.90             A change to subheading 8530.90 from any other 
                              heading. 
 
          8531.10             A change to subheading 8531.10 from any other 
                              subheading, except from Canadian tariff item 
                              8531.90.11 or 8531.90.21, U.S. tariff item 
                              8531.90.00A or Mexican tariff item 
                              8531.90.03. 
 
          8531.20             A change to subheading 8531.20 from any other 
                              heading; or 
 
                              A change to subheading 8531.20 from 
                              subheading 8531.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          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 8531.90.00A 
                                   or Mexican tariff item 8531.90.03: 
 
                              (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. 
 
               8531.80        A change to subheading 8531.80 from any other 
                              heading; or 
 
                              A change to subheading 8531.80 from 
                              subheading 8531.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8531.90             A change to subheading 8531.90 from any other 
                              heading. 
 
          8532.10             A change to subheading 8532.10 from any other 
                              heading; or 
 
                              A change to subheading 8532.10 from 
                              subheading 8532.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8532.21-8532.30          A change to subheading 8532.21 through 
                                   8532.30 from any other subheading, 
                                   including another subheading within that 
                                   group. 
 
          8532.90             A change to subheading 8532.90 from any other 
                              heading.  
 
          8533.10-8533.39          A change to subheading 8533.10 through 
                                   8533.39 from any other subheading, 
                                   including another subheading within that 
                                   group. 
 
          8533.40             A change to subheading 8533.40 from any other 
                              subheading, except from Canadian tariff item 
                              8533.90.11, U.S. tariff item 8533.90.00A or 
                              Mexican tariff item 8533.90.02. 
 
          8533.90             A change to subheading 8533.90 from any other 
                              heading. 
 
          85.34                    A change to heading 85.34 from any other 
                                   heading. 
 
          85.35 
 
               8535.90.aa          A change to Canadian tariff item 
                                   8535.90.30, U.S. tariff item 8535.90.00A 
                                   or Mexican tariff 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 
 
                              A change to Canadian tariff item 8535.90.30, 
                              U.S. tariff item 8535.90.00A or Mexican 
                              tariff item 8535.90.08, 8535.90.20 or 
                              8535.90.24 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. 
 
               85.35               A change to heading 85.35 from any other 
                                   heading, except 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; 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: 
 
                              (a)  60 percent where the transaction value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          85.3636 
 
               8536.30.aa          A change to Canadian tariff item 
                                   8536.30.12, U.S. tariff item 8536.30.00A 
                                   or Mexican tariff 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 
 
                              A change to Canadian tariff item 8536.30.12, 
                              U.S. tariff item 8536.30.00A or Mexican 
                              tariff item 8536.30.05 from Canadian tariff 
                                         ____________________ 
 
               36   If  the  good  provided for  in  subheading  8536.50 or 
                    8536.90 is  for use in  a motor vehicle of  Chapter 87, 
                    the provisions of Article 403 may apply. 
 
 
                              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. tariff 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: 
 
                              (a)  60 percent where the transaction value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
               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 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. 
 
               85.36               A change to heading 85.36 from any other 
                                   heading, except 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; or 
 
                              A change to heading 85.36 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: 
 
                              (a)  60 percent where the transaction value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          85.3737                  A change to heading 85.37 from any other 
                                   heading, except 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; or 
 
                              A change to heading 85.37 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: 
 
                              (a)  60 percent where the transaction value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          85.38                    A change to heading 85.38 from any other 
                                   heading. 
                                         ____________________ 
 
               37   If the good  provided for in subheading 8537.10  is for 
                    use in a motor vehicle of Chapter 87, the provisions of 
                    Article 403 may apply. 
 
          8539.10-8539.4038        A change to subheading 8539.10 through 
                                   8539.40 from any other heading; or 
 
                              A change to subheading 8539.10 through 
                              8539.40 from subheading 8539.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8539.90             A change to subheading 8539.90 from any other 
                              heading. 
 
          8540.11 
 
               8540.11.aa          A change to Canadian tariff item 
                                   8540.11.22, U.S. tariff item 8540.11.00A 
                                   or Mexican tariff item 8540.11.01 from 
                                   any other subheading, except from more 
                                   than one of the following:   
 
                              -    Canadian tariff item 7011.20.10, U.S. 
                                   tariff item 7011.20.00A or Mexican 
                                   tariff item 7011.20.02 or 7011.20.03, 
                              -    Canadian tariff item 8540.91.10, U.S. 
                                   tariff item 8540.91.40A or Mexican 
                                   tariff item 8540.91.03. 
 
               8540.11.bb          A change to Canadian tariff item 
                                   8540.11.21, U.S. tariff item 8540.11.00B 
                                   or Mexican tariff item 8540.11.02 from 
                                   any other subheading, except from more 
                                   than one of the following:   
 
                              -    Canadian tariff item 7011.20.10, U.S. 
                                   tariff item 7011.20.00A or Mexican 
                                   tariff item 7011.20.02 or 7011.20.03, 
                              -    Canadian tariff item 8540.91.10, U.S. 
                                   tariff item 8540.91.40A or Mexican 
                                   tariff item 8540.91.03. 
 
               8540.11.cc          A change to Canadian tariff item 
                                         ____________________ 
 
               38   If  the  good  provided for  in  subheading  8539.10 or 
                    8539.21 is  for use in  a motor vehicle of  Chapter 87, 
                    the provisions of Article 403 may apply. 
 
                                   8540.11.12, U.S. tariff item 8540.11.00C 
                                   or Mexican tariff 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          A change to Canadian tariff item 
                                   8540.11.11, U.S. tariff item 8540.11.00D 
                                   or Mexican tariff item 8540.11.04 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        A change to subheading 8540.11 from any other 
                              heading; or 
 
                              A change to subheading 8540.11 from 
                              subheading 8540.91, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8540.12 
 
               8540.12.aa          A change to Canadian tariff item 
                                   8540.12.90, U.S. tariff item 8540.12.40A 
                                   or Mexican tariff item 8540.12.99 from 
                                   any other subheading, except from more 
                                   than one of the following: 
 
                              -    Canadian tariff item 7011.20.10, U.S. 
                                   tariff item 7011.20.00A or Mexican 
                                   tariff item 7011.20.02 or 7011.20.03, 
                              -    Canadian tariff item 8540.91.10, U.S. 
                                   tariff item 8540.91.40A or Mexican 
                                   tariff item 8540.91.03. 
 
               8540.12.bb          A change to Canadian tariff item 
                                   8540.12.10, U.S. tariff item 8540.12.40B 
                                   or Mexican tariff item 8540.12.01 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. 
 
               8540.12        A change to subheading 8540.12 from any other 
                              heading; or 
 
                              A change to subheading 8540.12 from 
                              subheading 8540.91, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8540.20             A change to subheading 8540.20 from any other 
                              heading; or 
 
                              A change to subheading 8540.20 from 
                              subheading 8540.91 through 8540.99, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8540.30             A change to subheading 8540.30 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. 
 
          8540.41-8540.49          A change to subheading 8540.41 through 
                                   8540.49 from any subheading outside of 
                                   that group, except from Canadian tariff 
                                   item 8540.99.10, U.S. tariff item 
                                   8540.99.00A or Mexican tariff item 
                                   8540.99.05. 
 
          8540.81-8540.89          A change to subheading 8540.81 through 
                                   8540.89 from any other subheading, 
                                   including another subheading within that 
                                   group. 
 
          8540.91 
 
               8540.91.aa          A change to Canadian tariff item 
                                   8540.91.10, U.S. tariff item 8540.91.40A 
                                   or Mexican tariff item 8540.91.03 from 
                                   any other tariff item. 
 
               8540.91        A change to subheading 8540.91 from any other 
                              heading. 
 
          8540.99 
 
               8540.99.aa          A change to Canadian tariff item 
                                   8540.99.10, U.S. tariff item 8540.99.00A 
                                   or Mexican tariff item 8540.99.05 from 
                                   any other tariff item. 
 
               8540.99        A change to subheading 8540.99 from any other 
                              heading. 
 
          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.  
 
                              A change to subheading 8541.10 through 
                              8542.90 from any other subheading, including 
                              another subheading within that group.   
 
          8543.10-8543.30          A change to subheading 8543.10 through 
                                   8543.30 from any other heading; or 
 
                              A change to subheading 8543.10 through 
                              8543.30 from subheading 8543.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8543.80 
 
               8543.80.aa          A change to Canadian tariff item 
                                   8543.80.60, U.S. tariff item 8543.80.90A 
                                   or Mexican tariff 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 
 
                              A change to Canadian tariff item 8543.80.60, 
                              U.S. tariff item 8543.80.90A or Mexican 
                              tariff 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: 
 
                              (a)  60 percent where the transaction value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
               8543.80        A change to subheading 8543.80 from any other 
                              heading; or 
 
                              A change to subheading 8543.80 from 
                              subheading 8543.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8543.90             A change to subheading 8543.90 from any other 
                              heading. 
 
          8544.11-8544.6039        A change to subheading 8544.11 through 
                                   8544.60 from any subheading outside that 
                                   group, 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, provided there is 
                              also 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. 
 
          8544.70             A change to subheading 8544.70 from any other 
                              subheading, except from heading 90.01 or 
                              70.02; or 
 
                              A change to subheading 8544.70 from heading 
                              90.01 or 70.02, whether or not there is also 
                              a change from any other subheading, 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. 
 
          85.45-85.48              A change to heading 85.45 through 85.48 
                                   from any other heading, including 
                                   another heading within that group.       
 
 
 
          Section XVII - Vehicles, Aircraft, Vessels and Associated 
                         Transport Equipment (Chapter 86-89) 
 
          Chapter 86               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 
                                         ____________________ 
 
               39   If the good  provided for in subheading 8544.30  is for 
                    use in a motor vehicle of Chapter 87, the provisions of 
                    Article 403 may apply. 
 
                                   Equipment of all Kinds 
 
          86.01-86.06              A change to heading 86.01 through 86.06 
                                   from any other heading, including 
                                   another heading within that group, 
                                   except from heading 86.07; or 
 
                              A change to heading 86.01 through 86.06 from 
                              heading 86.07, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8607.11-8607.12          A change to subheading 8607.11 through 
                                   8607.12 from any other heading. 
 
          8607.19 
 
               8607.19.aa          A change to Canadian tariff item 
                                   8607.19.11, U.S. tariff item 8607.19.10A 
                                   or Mexican tariff item 8607.19.02 or 
                                   8607.19.06 from any other heading; or 
 
                              A change to Canadian tariff item 8607.19.11, 
                              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: 
 
                              (a)  60 percent where the transaction value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
               8607.19.cc          A change to Canadian tariff item 
                                   8607.19.12, U.S. tariff item 8607.19.20A 
                                   or Mexican tariff item 8607.19.03 from 
                                   any other heading; or 
 
                              A change to Canadian tariff item 8607.19.12, 
                              U.S. tariff item 8607.19.20A or Mexican 
                              tariff 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: 
 
                              (a)  60 percent where the transaction value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
               8607.19        A change to subheading 8607.19 from any other 
                              heading. 
 
          8607.21-8607.99          A change to subheading 8607.21 through 
                                   8607.99 from any other heading. 
 
          86.08-86.09              A change to heading 86.08 through 86.09 
                                   from any other heading, including 
                                   another heading within that group. 
 
          Chapter 87               Vehicles Other Than Railway or Tramway 
                                   Rolling-Stock, and Parts and Accessories 
                                   Thereof 
 
          87.0140                  A change to heading 87.01 from any other 
                                   heading, provided there is a regional 
                                   value content of not less than 50 
                                   percent under the net cost method. 
 
          87.0241 
 
               8702.10.aa          A change to Canadian tariff item 
                                   8702.10.10, U.S. tariff item 8702.10.00A 
                                   or Mexican tariff 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. 
 
                                 ____________________ 
 
               40   The provisions of Article 403 apply. 
 
               41   The provisions of Article 403 apply. 
 

               8702.10.bb          A change to Canadian tariff item 
                                   8702.10.90, U.S. tariff item 8702.10.00B 
                                   or Mexican tariff item 8702.10.01 or 
                                   8702.10.02 from any other heading, 
                                   provided there is a regional value 
                                   content of not less than 50 percent 
                                   under the net cost method. 
 
               8702.90.aa          A change to Canadian tariff item 
                                   8702.90.10, U.S. tariff item 8702.90.00A 
                                   or Mexican tariff item 8702.90.04 from 
                                   any other heading, provided there is a 
                                   regional value content of not less than 
                                   50 percent under the net cost method. 
 
               8702.90.bb          A change to Canadian tariff item 
                                   8702.90.90, U.S. tariff item 8702.90.00B 
                                   or Mexican tariff 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             A change to subheading 8703.10 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, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8703.21-8703.9042        A change to subheading 8703.21 through 
                                   8703.90 from any other heading, provided 
                                   there is a regional value content of not 
                                   less than 50 percent under the net cost 
                                   method. 
 
          8704.1043           A change to subheading 8704.10 from any 
                              other heading, provided there is a regional 
                              value content of not less than 50 percent 
                              under the net cost method. 
 
          8704.2144           A change to subheading 8704.21 from any 
                                         ____________________ 
 
               42   The provisions of Article 403 apply. 
 
               43   The provisions of Article 403 apply. 
 
               44   The provisions of Article 403 apply. 
 
                              other heading, provided there is a regional 
                              value content of not less than 50 percent 
                              under the net cost method. 
 
          8704.22-8704.2345        A change to subheading 8704.22 through 
                                   8704.23 from any other heading, provided 
                                   there is a regional value content of not 
                                   less than 50 percent under the net cost 
                                   method. 
 
          8704.3146           A change to subheading 8704.31 from any 
                              other heading, provided there is a regional 
                              value content of not less than 50 percent 
                              under the net cost method. 
 
          8704.32-8704.9047        A change to subheading 8704.32 through 
                                   8704.90 from any other heading, provided 
                                   there is a regional value content of not 
                                   less than 50 percent under the net cost 
                                   method. 
 
          87.0548                  A change to heading 87.05 from any other 
                                   heading, provided there is a regional 
                                   value content of not less than 50 
                                   percent under the net cost method. 
 
          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 
                                   content of not less than 50 percent 
                                   under the net cost method. 
 
               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 
                                         ____________________ 
 
               45   The provisions of Article 403 apply. 
 
               46   The provisions of Article 403 apply. 
 
               47   The provisions of Article 403 apply. 
 
               48   The provisions of Article 403 apply. 
 
               49   The provisions of Article 403 apply. 
 
 
                                   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                  A change to heading 87.07 from any other 
                                   chapter; or 
 
                              A change to heading 87.07 from heading 87.08, 
                              whether or not there is also a change from 
                              any other chapter, provided there is a 
                              regional value content of not less than 50 
                              percent under the net cost method. 
 
          8708.1051           A change to subheading 8708.10 from any 
                              other heading; or 
 
                              A change to subheading 8708.10 from 
                              subheading 8708.99, 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. 
 
          8708.2152           A change to subheading 8708.21 from any 
                              other heading; or 
 
                              A change to subheading 8708.21 from 
                              subheading 8708.99, 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. 
 
          8708.2953           A change to subheading 8708.29 from any 
                              other heading; or 
 
                              No required change in tariff classification 
                              to subheading 8708.29, provided there is a 
                              regional value content of not less than 50 
                              percent under the net cost method. 
 
                                         ____________________ 
 
               50   The provisions of Article 403 apply. 
 
               51   The provisions of Article 403 apply. 
 
               52   The provisions of Article 403 apply. 
 
               53   The provisions of Article 403 apply. 
 
          8708.31             A change to subheading 8708.31 from any other 
                              heading; or 
 
                              A change to subheading 8708.31 from 
                              subheading 8708.39 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 than 50 percent under the 
                              net cost method. 
 
          8708.3954           A change to subheading 8708.39 from any 
                              other heading; or 
 
                              A change to subheading 8708.39 from 
                              subheading 8708.31 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 than 50 percent under the 
                              net cost method. 
 
          8708.4055           A change to subheading 8708.40 from any 
                              other heading; or 
 
                              A change to subheading 8708.40 from 
                              subheading 8708.99, 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. 
 
          8708.5056 
 
               8708.50.aa          A change to Canadian tariff item 
                                   8708.50.20, U.S. tariff item 8708.50.50 
                                   or Mexican tariff item 8708.50.06 or 
                                   8708.50.07 from any other heading, 
                                   except from subheading 8482.10 through 
                                   8482.80; or 
 
                              A change to Canadian tariff item 8708.50.20, 
                              U.S. tariff item 8708.50.50 or Mexican tariff 
                              item 8708.50.06 or 8708.50.07 from subheading 
                              8482.10 through 8482.80 or 8708.99, whether 
                              or not there is also a change from any other 
                                         ____________________ 
 
               54   The provisions of Article 403 apply. 
 
               55   The provisions of Article 403 apply. 
 
               56   The provisions of Article 403 apply. 
 
                              heading, provided there is a regional value 
                              content of not less than 50 percent under the 
                              net cost method. 
 
               8708.50        A change to subheading 8708.50 from any other 
                              heading; or 
 
                              A change to subheading 8708.50 from 
                              subheading 8708.99, 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. 
 
          8708.6057 
 
               8708.60.aa          A change to Canadian tariff item 
                                   8708.60.20, U.S. tariff item 8708.60.50 
                                   or Mexican tariff item 8708.60.07 from 
                                   any other heading, except from 
                                   subheading 8482.10 through 8482.80; or 
 
                              A change to Canadian tariff item 8708.60.20, 
                              U.S. tariff item 8708.60.50 or Mexican tariff 
                              item 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 than 50 percent under the 
                              net cost method. 
 
               8708.60        A change to subheading 8708.60 from any other 
                              heading; or 
 
                              A change to subheading 8708.60 from 
                              subheading 8708.99, 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. 
 
          8708.7058           A change to subheading 8708.70 from any 
                              other heading; or 
 
                              A change to subheading 8708.70 from 
                              subheading 8708.99, 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. 
                                         ____________________ 
 
               57   The provisions of Article 403 apply. 
 
               58   The provisions of Article 403 apply. 


          8708.8059 
 
               8708.80.aa          A change to Canadian tariff item 
                                   8708.80.10, U.S. tariff item 8708.80.10A 
                                   or 8708.80.50A or Mexican tariff item 
                                   8708.80.04 from any other subheading, 
                                   provided there is a regional value 
                                   content of not less than 50 percent 
                                   under the net cost method. 
 
               8708.80        A change to subheading 8708.80 from any other 
                              heading; or 
 
                              A change to subheading 8708.80 from 
                              subheading 8708.99, 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 of the net cost 
                              method. 
 
          8708.9160           A change to subheading 8708.91 from any 
                              other heading; or 
 
                              A change to subheading 8708.91 from 
                              subheading 8708.99, 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 of the net cost 
                              method. 
 
          8708.9261           A change to subheading 8708.92 from any 
                              other heading; or 
 
                              A change to subheading 8708.92 from 
                              subheading 8708.99, 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. 
 
          8708.9362           A change to subheading 8708.93 from any 
                              other heading; or 
                                         ____________________ 
 
               59   The provisions of Article 403 apply. 
 
               60   The provisions of Article 403 apply. 
 
               61   The provisions of Article 403 apply. 
 
               62   The provisions of Article 403 apply. 
 

                              A change to subheading 8708.93 from 
                              subheading 8708.99, 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. 
 
          8708.9463           A change to subheading 8708.94 from any 
                              other heading; or 
 
                              A change to subheading 8708.94 from 
                              subheading 8708.99, 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. 
 
          8708.9964 
 
               8708.99.aa          A change to Canadian tariff item 
                                   8708.99.15, 8708.99.25 or 8708.99.96, 
                                   U.S. tariff item 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          A change to Canadian tariff item 
                                   8708.99.16, 8708.99.26 or 8708.99.97, 
                                   U.S. tariff item 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 
 
                                        ____________________ 
 
               63   The provisions of Article 403 apply. 
 
               64   The provisions of Article 403 apply. 
 
                              A change to Canadian tariff item 8708.99.16, 
                              8708.99.26 or 8708.99.97, U.S. tariff item 
                              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        A change to subheading 8708.99 from any other 
                              heading; or 
 
                              No required change in tariff classification 
                              to subheading 8708.99, provided there is a 
                              regional value content of not less than 50 
                              percent under the net cost method. 
 
          8709.11-8709.19          A change to subheading 8709.11 through 
                                   8709.19 from any other heading; or 
 
                              A change to subheading 8709.11 through 
                              8709.19 from subheading 8709.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8709.90             A change to subheading 8709.90 from any other 
                              heading. 
 
          87.10                    A change to heading 87.10 from any other 
                                   heading. 
 
          87.11                    A change to heading 87.11 from any other 
                                   heading, except from heading 87.14; or 
 
                              A change to heading 87.11 from heading 87.14, 
                              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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          87.12                    A change to heading 87.12 from any other 
                                   heading, except from heading 87.14; or 
 
                              A change to heading 87.12 from heading 87.14, 
                              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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          87.13                    A change to heading 87.13 from any other 
                                   heading, except from heading 87.14; or 
 
                              A change to heading 87.13 from heading 87.14, 
                              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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          87.14                    A change to heading 87.14 from any other 
                                   heading. 
 
          87.15                    A change to heading 87.15 from any other 
                                   heading. 
 
          8716.10-8716.80          A change to subheading 8716.10 through 
                                   8716.80 from any other heading; or 
 
                              A change to subheading 8716.10 through 
                              8716.80 from subheading 8716.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          8716.90             A change to subheading 8716.90 from any other 
                              heading. 
 
 
          Chapter 88               Aircraft, Spacecraft, and Parts Thereof 
 
          8801.10-8803.90          A change to subheading 8801.10 through 
                                   8803.90 from any other subheading, 
                                   including another subheading within that 
                                   group.  
 
          88.04-88.05              A change to heading 88.04 through 88.05 
                                   from any other heading, including 
                                   another heading within that group. 
 
 
          Chapter 89               Ships, Boats and Floating Structures 
 
          89.01-89.02              A change to heading 89.01 through 89.02 
                                   from any other chapter; or 
 
                              A change to heading 89.01 through 89.02 from 
                              any other heading within Chapter 89, 
                              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: 
 
                              (a)  60 percent where the transaction value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          89.03                    A change to heading 89.03 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, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          89.04-89.05              A change to heading 89.04 through 89.05 
                                   from any other chapter; or 
 
                              A change to heading 89.04 through 89.05 from 
                              any other heading within Chapter 89, 
                              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: 
 
                              (a)  60 percent where the transaction value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          89.06-89.08              A change to heading 89.06 through 89.08 
                                   from any other heading, including 
                                   another heading within that group. 
 
 
          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 90               Optical, Photographic, Cinematographic, 
                                   Measuring, Checking, Precision, Medical 
                                   or Surgical Instruments and Apparatus; 
                                   Parts and Accessories Thereof 
 
                    Note 1:        For purposes of this Chapter, the term, 
                                   "printed circuit assembly", means a good 
                                   consisting of 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:        The origin of the goods of Chapter 90 
                                   shall be determined without regard to 
                                   the origin of 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:        Canadian tariff item 9009.90.10, U.S. 
                                   tariff item 9009.90.00A or 9009.90.00B 
                                   or Mexican tariff item 9009.90.02 covers 
                                   the following parts for photo-copying 
                                   apparatus of subheading 9009.12: 
 
                              (a)  imaging assemblies, incorporating at 
                                   least two 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 at 
                                   least two of the following:  lens; 
                                   mirror; illumination source; document 
                                   exposure glass; 
 
                              (c)  user control assemblies, incorporating 
                                   at least two 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 
                                   at least two of the following:  fuser; 
                                   pressure roller; heating element; 
                                   release oil dispenser; cleaning unit; 
                                   electrical control; 
 
                              (e)  paper handling assemblies, incorporating 
                                   at least two 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: 
 
                              (a)  60 percent where the transaction value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          9001.20-9001.90          A change to subheading 9001.20 through 
                                   9001.90 from any other heading. 
 
          90.02                    A change to heading 90.02 from any other 
                                   heading, except from heading 90.01. 
 
          9003.11-9003.19          A change to subheading 9003.11 through 
                                   9003.19 from any other heading; or 
 
                              A change to subheading 9003.11 through 
                              9003.19 from subheading 9003.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          9003.90             A change to subheading 9003.90 from any other 
                              heading. 
 
          90.04                    A change to heading 90.04 from any other 
                                   chapter; or 
 
                              A change to heading 90.04 from any other 
                              heading within Chapter 90, 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. 

          9005.10-9005.80          A change to subheading 9005.10 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, U.S. tariff item 
                                   9005.90.00A or Mexican tariff item 
                                   9005.90.03. 
 
          9005.90 
 
               9005.90.aa          A change to Canadian tariff item 
                                   9005.90.11 or 9005.90.91, U.S. tariff 
                                   item 9005.90.00A or Mexican tariff item 
                                   9005.90.03 from any other heading, 
                                   except from heading 90.01 or 90.02. 
 
               9005.90        A change to subheading 9005.90 from any other 
                              heading. 
 
          9006.10-9006.69          A change to subheading 9006.10 through 
                                   9006.69 from any other heading; or 
 
                              A change to subheading 9006.10 through 
                              9006.69 from subheading 9006.91 or 9006.99, 
                              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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          9006.91-9006.99          A change to subheading 9006.91 through 
                                   9006.99 from any other heading. 
 
          9007.11             A change to subheading 9007.11 from any other 
                              heading; or 
 
                              A change to subheading 9007.11 from 
                              subheading 9007.91, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 

        9007.19 
 
               9007.19.aa          A change to Canadian tariff item 
                                   9007.19.10, U.S. tariff item 9007.19.00A 
                                   or Mexican tariff item 9007.19.01 from 
                                   any other tariff item. 
 
                    9007.19   A change to subheading 9007.19 from any other 
                              heading; or 
 
                              A change to subheading 9007.19 from 
                              subheading 9007.91, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          9007.21-9007.29          A change to subheading 9007.21 through 
                                   9007.29 from any other heading; or 
 
                              A change to subheading 9007.21 through 
                              9007.29 from subheading 9007.92, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          9007.91             A change to subheading 9007.91 from any other 
                              heading. 
 
          9007.92             A change to subheading 9007.92 from any other 
                              heading; or 
 
                              No required change in tariff classification 
                              to subheading 9007.92, 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. 
 
          9008.10-9008.40          A change to subheading 9008.10 through 
                                   9008.40 from any other heading; or 
 
                              A change to subheading 9008.10 through 
                              9008.40 from subheading 9008.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          9008.90             A change to subheading 9008.90 from any other 
                              heading. 
 
          9009.11             A change to subheading 9009.11 from any other 
                              subheading. 
 
          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          A change to subheading 9009.21 through 
                                   9009.30 from any other subheading, 
                                   including another subheading within that 
                                   group. 
 
          9009.90 
 
               9009.90.aa          A change to Canadian tariff item 
                                   9009.90.10, U.S. tariff item 9009.90.00A 
                                   or 9009.90.00B or 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 from any other heading, 
                                   provided that at least one of the 
                                   components of such assembly named in 
                                   Note 3 to Chapter 90 is originating. 
 
               9009.90        A change to subheading 9009.90 from any other 
                              heading. 
 
 
          9010.10-9010.30          A change to subheading 9010.10 through 
                                   9010.30 from any other heading; or 
 
                              A change to subheading 9010.10 through 
                              9010.30 from subheading 9010.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          9010.90             A change to subheading 9010.90 from any other 
                              heading. 
 
          9011.10-9011.80          A change to subheading 9011.10 through 
                                   9011.80 from any other heading; or 
 
                              A change to subheading 9011.10 through 
                              9011.80 from subheading 9011.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          9011.90             A change to subheading 9011.90 from any other 
                              heading. 
 
          9012.10             A change to subheading 9012.10 from any other 
                              heading; or 
 
                              A change to subheading 9012.10 from 
                              subheading 9012.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          9012.90             A change to subheading 9012.90 from any other 
                              heading. 
 
          9013.10-9013.80          A change to subheading 9013.10 through 
                                   9013.80 from any other heading; or 
 
                              A change to subheading 9013.10 through 
                              9013.80 from subheading 9013.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          9013.90             A change to subheading 9013.90 from any other 
                              heading. 
 
          9014.10-9014.80          A change to subheading 9014.10 through 
                                   9014.80 from any other heading; or 
 
                              A change to subheading 9014.10 through 
                              9014.80 from subheading 9014.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          9014.90             A change to subheading 9014.90 from any other 
                              heading. 
 
          9015.10-9015.80          A change to subheading 9015.10 through 
                                   9015.80 from any other heading; or 
 
                              A change to subheading 9015.10 through 
                              9015.80 from subheading 9015.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          9015.90             A change to subheading 9015.90 from any other 
                              heading; or 
 
                              No required change in tariff classification 
                              to subheading 9015.90,  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. 
 
          90.16                    A change to heading 90.16 from any other 
                                   heading. 
 
          9017.10-9017.80          A change to subheading 9017.10 through 
                                   9017.80 from any other heading; or 
 
                              A change to subheading 9017.10 through 
                              9017.80 from subheading 9017.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          9017.90             A change to subheading 9017.90 from any other 
                              heading. 
 
          9018.11 
 
               9018.11.aa          A change to Canadian tariff item 
                                   9018.11.10, U.S. tariff item 9018.11.00A 
                                   or Mexican tariff 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        A change to subheading 9018.11 from any other 
                              heading. 
 
          9018.19 
 
               9018.19.aa          A change to Canadian tariff item 
                                   9018.19.10, U.S. tariff item 9018.19.80A 
                                   or Mexican tariff item 9018.19.16 from 
                                   any other tariff item, except from 
                                   Canadian tariff item 9018.19.91, U.S 
                                   tariff item 9018.19.80B or Mexican 
                                   tariff item 9018.19.17. 
 
               9018.19        A change to subheading 9018.19 from any other 
                              heading. 
 
          9018.20-9018.50          A change to subheading 9018.20 through 
                                   9018.50 from any other heading. 
 
          9018.90 
 
               9018.90.aa          A change to Canadian tariff item 
                                   9018.90.10, U.S. tariff item 9018.90.70A 
                                   or Mexican tariff item 9018.90.25 from 
                                   any other tariff item, except from 
                                   Canadian tariff item 9018.90.91, U.S 
                                   tariff item 9018.90.70B or Mexican 
                                   tariff item 9018.90.26. 
 
               9018.90        A change to subheading 9018.90 from any other 
                              heading. 
 
          90.19-90.21              A change to heading 90.19 through 90.21 
                                   from any heading outside that group. 
 
          9022.11             A change to subheading 9022.11 from any other 
                              subheading, except from Canadian tariff item 
                              9022.90.10, U.S. tariff item 9022.90.90A or 
                              Mexican tariff item 9022.90.04. 
 
          9022.19             A change to subheading 9022.19 from any other 
                              subheading, except from subheading 9022.30 or 
                              Canadian tariff item 9022.90.10, U.S. tariff 
                              item 9022.90.90A or Mexican tariff item 
                              9022.90.04. 
 
          9022.21             A change to subheading 9022.21 from any other 
                              subheading, except from Canadian tariff item 
                              9022.90.20, U.S. tariff item 9022.90.90B or 
                              Mexican tariff item 9022.90.05. 
 
          9022.29-9022.30          A change to subheading 9022.29 through 
                                   9022.30 from any other heading; or 
 
                              A change to subheading 9022.29 through 
                              9022.30 from subheading 9022.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          9022.90 
 
               9022.90.aa          A change to Canadian tariff item 
                                   9022.90.10, U.S. tariff item 9022.90.90A 
                                   or Mexican tariff item 9022.90.04 from 
                                   any other tariff item. 
 
               9022.90        A change to subheading 9022.90 from any other 
                              heading; or 
 
                              No required change in tariff classification 
                              to subheading 9022.90, 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. 
 
          90.23                    A change to heading 90.23 from any other 
                                   heading. 
 
          9024.10-9024.80          A change to subheading 9024.10 through 
                                   9024.80 from any other heading; or 
 
                              A change to subheading 9024.10 through 
                              9024.80 from subheading 9024.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          9024.90             A change to subheading 9024.90 from any other 
                              heading. 
 
          9025.11-9025.80          A change to subheading 9025.11 through 
                                   9025.80 from any other heading; or 
 
                              A change to subheading 9025.11 through 
                              9025.80 from subheading 9025.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          9025.90             A change to subheading 9025.90 from any other 
                              heading. 
 
          9026.10-9026.80          A change to subheading 9026.10 through 
                                   9026.80 from any other heading; or 
 
                              A change to subheading 9026.10 through 
                              9026.80 from subheading 9026.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          9026.90             A change to subheading 9026.90 from any other 
                              heading. 
 
          9027.10-9027.50          A change to subheading 9027.10 through 
                                   9027.50 from any other heading; or 
 
                              A change to subheading 9027.10 through 
                              9027.50 from subheading 9027.90, 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 value 
                                   method is used, or 
 
 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          9027.80 
 
               9027.80.aa          A change to Canadian tariff item 
                                   9027.80.20, U.S. tariff item 9027.80.40A 
                                   or Mexican tariff item 9027.80.08 from 
                                   any other subheading, except from 
                                   subheading 8505.19 or Canadian tariff 
                                   item 9027.90.30, U.S. tariff item 
                                   9027.90.44A or Mexican tariff item 
                                   9027.90.04. 
 
               9027.80        A change to subheading 9027.80 from any other 
                              heading; or 
 
                              A change to subheading 9027.80 from 
                              subheading 9027.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          9027.90             A change to subheading 9027.90 from any other 
                              heading. 
 
          9028.10-9028.30          A change to subheading 9028.10 through 
                                   9028.30 from any other heading; or 
 
                              A change to subheading 9028.10 through 
                              9028.30 from subheading 9028.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          9028.90             A change to subheading 9028.90 from any other 
                              heading. 

          9029.10-9029.20          A change to subheading 9029.10 through 
                                   9029.20 from any other heading; or 
 
                              A change to subheading 9029.10 through 
                              9029.20 from subheading 9029.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          9029.90             A change to subheading 9029.90 from any other 
                              heading. 
 
          9030.10             A change to subheading 9030.10 from any other 
                              heading; or 
 
                              A change to subheading 9030.10 from 
                              subheading 9030.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          9030.20-9030.39          A change to subheading 9030.20 through 
                                   9030.39 from any other subheading, 
                                   including another subheading within that 
                                   group, except from Canadian 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 Mexican 
                                   tariff item 9030.90.02. 
 
          9030.40-9030.89          A change to subheading 9030.40 through 
                                   9030.89 from any other heading; or 
 
                              A change to subheading 9030.40 through 
                              9030.89 from subheading 9030.90, 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 value 
                                   method is used, or 
 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          9030.90             A change to subheading 9030.90 from any other 
                              heading. 
 
          9031.10-9031.40          A change to subheading 9031.10 through 
                                   9031.40 from any other heading; or 
 
                              A change to subheading 9031.10 through 
                              9031.40 from subheading 9031.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          9031.8065 
 
               9031.80.aa          A change to Canadian tariff item 
                                   9031.80.40, U.S. tariff item 9031.80.00A 
                                   or 9031.80.00B or Mexican tariff item 
                                   9031.80.06 from any other tariff item, 
                                   except from subheading 8537.10 or 
                                   Canadian tariff item 9031.90.61, U.S. 
                                   tariff item 9031.90.60A or 9031.90.60B 
                                   or Mexican tariff item 9031.90.02. 
 
               9031.80        A change to subheading 9031.80 from any other 
                              heading; or 
 
                              A change to subheading 9031.80 from 
                              subheading 9031.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
               9031.90        A change to subheading 9031.90 from any other 
                              heading. 
                                         ____________________ 
 
               65   If  the good is for  use in a  motor vehicle of Chapter 
                    87, the provisions of Article 403 may apply. 
 
 
          9032.10-9032.8966        A change to subheading 9032.10 through 
                                   9032.89 from any other heading; or 
 
                              A change to subheading 9032.10 through 
                              9032.89 from subheading 9032.90, 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 value 
                                   method is used, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          9032.90             A change to subheading 9032.90 from any other 
                              heading. 
 
          90.33                    A change to heading 90.33 from any other 
                                   heading. 
 
 
          Chapter 91               Clocks and Watches and Parts Thereof 
 
          91.01-91.07              A change to heading 91.01 through 91.07 
                                   from any other chapter; or  
 
                              A change to heading 91.01 through 91.07 from 
                              heading 91.14, 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.  
 
          91.08-91.10              A change to heading 91.08 through 91.10 
                                   from any other heading, including 
                                   another heading within that group, 
                                   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.  
                                         ____________________ 
 
               66   If the good  provided for in subheading 9032.89  is for 
                    use in a motor vehicle of Chapter 87, the provisions of 
                    Article 403 may apply. 
 
 
          9111.10-9111.80          A change to subheading 9111.10 through 
                                   9111.80 from subheading 9111.90 or any 
                                   other heading, 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; or 
 
          9111.90             A change to subheading 9111.90 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, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          9112.10-9112.80          A change to subheading 9112.10 through 
                                   9112.80 from subheading 9112.90 or any 
                                   other heading, 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. 
 
          9112.90             A change to subheading 9112.90 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, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          91.13                    A change to heading 91.13 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, or 
                              (b)  50 percent where the net cost method is 
                                   used. 
 
          91.14                    A change to heading 91.14 from any other 
                                   heading. 
 
 
          Chapter 92               Musical Instruments; Parts and 
                                   Accessories of Such Articles 
 
          92.01-92.08              A change to heading 92.01 through 92.08 
                                   from any other chapter; or 
 
                              A change to heading 92.01 through 92.08 from 
                              heading 92.09, 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.  
 
          92.09                    A change to heading 92.09 from any other 
                                   heading. 
 
 
          Section XIX  - Arms and Ammunition; Parts and Accessories Thereof 
                         (Chapter 93) 
 
          Chapter 93               Arms and Ammunition; Parts and 
                                   Accessories Thereof 
 
          93.01-93.04              A change to heading 93.01 through 93.04 
                                   from any other chapter; or 
 
                              A change to heading 93.01 through 93.04 from 
                              heading 93.05, 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.  
 
          93.05                    A change to heading 93.05 from any other 
                                   heading. 
 
          93.06-93.07              A change to heading 93.06 through 93.07 
                                   from any other chapter. 
 
          Section XX     -    Miscellaneous Manufactured Articles (Chapter 
                              94-96) 
 
          Chapter 94               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        A change to subheading 9401.10 through 
                                   9401.80 from any other chapter; or 
 
                              A change to subheading 9401.10 through 
                              9401.80 from subheading 9401.90, 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.  
 
          9401.90             A change to subheading 9401.90 from any other 
                              heading. 
 
          94.02                    A change to heading 94.02 from any other 
                                   chapter. 
 
          9403.10-9403.80          A change to subheading 9403.10 through 
                                   9403.80 from any other chapter; or 
 
                              A change to subheading 9403.10 through 
                              9403.80 from subheading 9403.90, 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. 
 
          9403.90             A change to subheading 9403.90 from any other 
                                         ____________________ 
 
               67   If the good  provided for in subheading 9401.20  is for 
                    use in a motor vehicle of Chapter 87, the provisions of 
                    Article 403 may apply. 
 
                              heading.  
 
          9404.10-9404.30          A change to subheading 9404.10 through 
                                   9404.30 from any other chapter. 
 
          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          A change to subheading 9405.10 through 
                                   9405.60 from any other chapter; or 
 
                              A change to subheading 9405.10 through 
                              9405.60 from subheading 9405.91 through 
                              9405.99, 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.  
 
          9405.91-9405.99          A change to subheading 9405.91 through 
                                   9405.99 from any other heading. 
 
          94.06                    A change to heading 94.06 from any other 
                                   chapter. 
 
              
          Chapter 95               Toys, Games and Sports Requisites; Parts 
                                   and Accessories Thereof 
 
          95.01                    A change to heading 95.01 from any other 
                                   chapter. 
 
          9502.10             A change to subheading 9502.10 from any other 
                              chapter; or 
 
                              A change to subheading 9502.10 from 
                              subheading 9502.91 through 9502.99, 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. 
 
          9502.91-9502.99          A change to subheading 9502.91 through 
                                   9502.99 from any other heading.  
 
          95.03-95.05              A change to heading 95.03 through 95.05 
                                   from any other chapter. 
 
          9506.11-9506.29          A change to subheading 9506.11 through 
                                   9506.29 from any other chapter. 
 
          9506.3168           A change to subheading 9506.31 from any 
                              other chapter; or 
 
                              A change to subheading 9506.31 from 
                              subheading 9506.39, 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.  
 
          9506.32             A change to subheading 9506.32 from any other 
                              chapter. 
 
          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 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 
                                         ____________________ 
 
               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. 
 
 
                                 used.  
 
               9506.39        A change to subheading 9506.39 from any other 
                              chapter. 
 
          9506.40-9506.99          A change to subheading 9506.40 through 
                                   9506.99 from any other chapter. 
 
          95.07-95.08              A change to heading 95.07 through 95.08 
                                   from any other chapter. 
 
 
          Chapter 96               Miscellaneous Manufactured Articles 
 
          96.01-96.05              A change to heading 96.01 through 96.05 
                                   from any other chapter. 
 
          9606.10             A change to subheading 9606.10 from any other 
                              chapter. 
 
          9606.21-9606.29          A change to subheading 9606.21 through 
                                   9606.29 from any other chapter; or 
 
                              A change to subheading 9606.21 through 
                              9606.29 from subheading 9606.30, 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.  
 
          9606.30             A change to subheading 9606.30 from any other 
                              heading. 
 
          9607.11-9607.19          A change to subheading 9607.11 through 
                                   9607.19 from any other chapter; or 
 
                              A change to subheading 9607.11 through 
                              9607.19 from subheading 9607.20, 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.  
 
 
          9607.20             A change to subheading 9607.20 from any other 
                              heading. 
 
          9608.10-9608.50          A change to subheading 9608.10 through 
                                   9608.50 from any other chapter; or 
 
                              A change to subheading 9608.10 through 
                              9608.50 from subheading 9608.60 through 
                              9608.99, 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.  
 
          9608.60-9608.99          A change to subheading 9608.60 through 
                                   9608.99 from any other heading. 
 
          96.09-96.12              A change to heading 96.09 through 96.12 
                                   from any other chapter. 
 
          9613.10-9613.80          A change to subheading 9613.10 through 
                                   9613.80 from any other chapter; or  
 
                              A change to subheading 9613.10 through 
                              9613.80 from subheading 9613.90, 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.  
 
          9613.90             A change to subheading 9613.90 from any other 
                              heading. 
 
          9614.10             A change to subheading 9614.10 from any other 
                              chapter. 
 
          9614.20             A change to subheading 9614.20 from any other 
                              subheading, except from subheading 9614.90. 
 
          9614.90             A change to subheading 9614.90 from any other 
                              heading. 
 
          9615.11-9615.19          A change to subheading 9615.11 through 
                                   9615.19 from any other chapter; or 
 
                              A change to subheading 9615.11 through 
                              9615.19 from subheading 9615.90, 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.  
 
          9615.90             A change to subheading 9615.90 from any other 
                              heading. 
 
          96.16-96.18              A change to heading 96.16 through 96.18 
                                   from any other chapter. 
 
 
          Section XXI    -    Works of Art, Collectors' Pieces and Antiques 
                              (Chapter 97) 
 
          Chapter 97               Works of Art, Collectors' Pieces and 
                                   Antiques 
 
          97.01-97.06              A change to heading 97.01 through 97.06 
                                   from any other chapter. 
  

                           NEW TARIFF ITEMS FOR NAFTA 
 
 
              TARIFF   CANADA    USA    MEXICO            DESCRIPTION 
               ITEM 
             1806.10  1806.1   1806.1   1806.1  Containing 90 percent or more

             .aa      0.10     0.41     0.01    by weight of sugar 
                               1806.1 
                               0.42 
 
             1901.10  1901.1   1901.1   1901.1  Containing over 10 percent by

             .aa      0.31     0.00A    0.01    weight of milk solids 
                               1901.1 
                               0.00B 
                               1901.1 
                               0.00C 
                               1901.1 
                               0.00D 
 
             1901.20  1901.2   1901.2   1901.2  Containing over 25 percent by

             .aa      0.11     0.00A    0.02    weight of butterfat, not put 
                      1901.2   1901.2           up for retail sale 
                      0.21     0.00B 
                               1901.2 
                               0.00C 
                               1901.2 
                               0.00D 
                               1901.2 
                               0.00E 
                               1901.2 
                               0.00F 
 

 
              TARIFF   CANADA    USA    MEXICO            DESCRIPTION 
               ITEM 
             1901.90  1901.9   1901.9   1901.9  Dairy preparations containing

             .aa      0.31     0.30A    0.03    over 10 percent by weight of 
                               1901.9           milk solids 
                               0.30B 
                               1901.9 
                               0.30C 
                               1901.9 
                               0.30D 
                               1901.9 
                               0.30E 
                               1901.9 
                               0.40A 
                               1901.9 
                               0.40B 
                               1901.9 
                               0.40C 
                               1901.9 
                               0.40D 
                               1901.9 
                               0.80A 
                               1901.9 
                               0.80B 
                               1901.9 
                               0.80C 
                               1901.9 
                               0.80D 
                               1901.9 
                               0.80E 
                               1901.9 
                               0.80F 
                               1901.9 
                               0.80G 
 
             2008.11  2008.1   2008.1   2008.1  Peanuts, blanched  
             .aa      1.20     1.00B    1.01 
                               2008.1 
                               1.00C 
                               2008.1 
                               1.00D 
 
             2101.10  2101.1   2101.1   2101.1  Instant coffee, not flavored 
             .aa      0.11     0.20A    0.01 
             2103.20  2103.2   2103.2   2103.2  Ketchup 
             .aa      0.10     0.20     0.01 
 
 
 
              TARIFF   CANADA    USA    MEXICO            DESCRIPTION 
               ITEM 
                                                Concentrated fruit or 
                                                vegetable juices, fortified 
             2106.90  2106.9   2106.9   2106.9  with minerals or vitamins: 
             .bb      0.91     0.16     0.06         Of any single fruit or 
                               2106.9                vegetable 
                               0.19A2 
                               106.90 
                               .19B 
                               2106.9 
                               0.19C 
                               2106.9 
                               0.19D 
                               2106.9 
                               0.19E 
             2106.90  2106.9   2106.9   2106.9 
             .cc      0.92     0.19F    0.07         Of mixtures of fruit or 
                               2106.9                vegetable juices 
             2106.90  2106.9   0.19G    2106.9 
             .dd      0.32     2106.9   0.08    Containing over 10 percent by

                               0.19H            weight of milk solids 
                               2106.9 
                               0.19I 
                               2106.9 
                               0.19J 
                               2106.9 
                               0.19K 
                               2106.9 
                               0.19L 
                               2106.9 
                               0.05 
                               2106.9 
                               0.15A 
                               2106.9 
                               0.15B 
                               2106.9 
                               0.15C 
                               2106.9 
                               0.15D 
                               2106.9 
                               0.40A 
                               2106.9 
                               0.40B 
                               2106.9 
                               0.40C 
                               2106.9 
                               0.40D 
                               2106.9 
 

              TARIFF   CANADA    USA    MEXICO            DESCRIPTION 
               ITEM 
                                                Fruit or vegetable juices, 
                                                fortified with minerals or 
             2202.90  2202.9   2202.9   2202.9  vitamins: 
             .aa      0.31     0.30     0.02         Of any single fruit or 
                               2202.9                vegetable 
                               0.35 
                               2202.9 
                               0.39A2 
                               202.90 
                               .39B 
                               2202.9 
                               0.39C 
                               2202.9 
                               0.39D 
                               2202.9 
             2202.90  2202.9   0.39E    2202.9 
             .bb      0.32     2202.9   0.03         Of mixtures of fruit or 
                               0.39F                 vegetable juices 
             2202.90  2202.9   2202.9   2202.9 
             .cc      0.40     0.39G    0.04    Beverages containing milk 
                               2202.9 
                               0.39H 
                               2202.9 
                               0.39I 
                               2202.9 
                               0.39J 
                               2202.9 
                               0.39K 
                               2202.9 
                               0.39L 
                               2202.9 
                               0.10 
                               2202.9 
                               0.20 
 
             2309.90  2309.9   2309.9   2309.9  Containing over 10 percent 
             .aa      0.32     0.30A    0.10    but not more than 50 percent 
                               2309.9           by weight of milk solids, and

                               0.30B            less than 6 percent by weight

                               2309.9           of grain or grain products 
                               0.30C 
 
             2401.10  2401.1   2401.1   2401.1  Wrapper tobacco 
             .aa      0.10     0.20A    0.01 
             2403.91  2403.9   2403.9   2403.9  Of a kind used as wrapper 
             .aa      1.10     1.20     1.01    tobacco 
 
 
 
 
              TARIFF   CANADA    USA    MEXICO            DESCRIPTION 
               ITEM 
             4008.19  4008.1   4008.1   4008.1  Profile shapes 
             .aa      9.10     9.10A    9.01 
                               4008.1 
                               9.50A 
 
             4008.29  4008.2   4008.2   4008.2  Profile shapes 
             .aa      9.10     9.00A    9.01 
                               4008.2 
                               9.00B 
 
             4012.20  4012.2   4012.2   4012.2  Of a kind used on vehicles, 
             .aa      0.20     0.20A    0.01    including tractors, for the 
                               4012.2           on-highway transport of 
                               0.50A            passengers or goods, or on 
                                                vehicles of heading 87.05 
             4016.93  4016.9   4016.9   4016.9  Of a kind for use in 
             .aa      3.10     3.00B    3.04    automotive goods of Chapter 
                                                87 
 
             4016.99  4016.9   4016.9   4016.9  Vibration control goods of a 
             .aa      9.30     9.25A    9.10    kind used in the vehicles of 
                               4016.9           heading 87.01 through 87.05 
                               9.50B 
 
             4105.19  4105.1   4105.1   4105.1  Wet blue 
             .aa      9.10     9.00A    9.01 
             4106.19  4106.1   4106.1   4106.1  Wet blue 
             .aa      9.10     9.00A    9.01 
 
             4107.10  4107.1   4107.1   4107.1  Wet blue 
             .aa      0.10     0.00B    0.02 
 
             5402.43  5402.4   5402.4   5402.4  Wholly of polyester, 
             .aa      3.10     3.00A    3.01    measuring not less than 75 
                                                decitex but not more than 80 
                                                decitex, and having 24 
                                                filaments per yarn 
             5402.52  5402.5   5402.5   5402.5  Wholly of polyester, 
             .aa      2.10     2.00A    2.02    measuring not less than 75 
                                                decitex but not more than 80 
                                                decitex, and having 24 
                                                filaments per yarn 
 
 
 
              TARIFF   CANADA    USA    MEXICO            DESCRIPTION 
               ITEM 
             5407.60  5407.6   5407.6   5407.6  Wholly of polyester, of 
             .aa      0.10     0.05A    0.02    single yarns measuring not 
                               5407.6           less than 75 decitex but not 
                               0.10A            more than 80 decitex, having 
                               5407.6           24 filaments per yarn and 
                               0.20A            with a twist of 900 or more 
                                                turns per meter 
 
             5408.22  5408.2   5408.2   5408.2  Of cuprammonium rayon 
             .aa      2.10     2.00A    2.04 
 
             5408.23  5408.2   5408.2   5408.2  Of cuprammonium rayon 
             .aa      3.10     3.10A    3.05 
                               5408.2 
                               3.20A 
             5408.24  5408.2   5408.2   5408.2  Of cuprammonium rayon 
             .aa      4.10     4.00A    4.01 
 
             6002.92  6002.9   6002.9   6002.9  Circular knit, wholly of 
             .aa      2.10     2.00A    2.01    cotton yarns exceeding 100 
                                                metric number per single yarn

 
             6103.19  6103.1   6103.1   6103.1  Of textile materials other 
             .aa      9.90     9.40     9.02    than artificial fibers or 
                                        6103.1  cotton 
                                        9.99 
             6103.39  6103.3   6103.3   6103.3  Of other than artificial 
             .aa      9.90     9.20     9.02    fibers 
                                        6103.3 
                                        9.99 
 
             6104.19  6104.1   6104.1   6104.1  Of other than artificial 
             .aa      9.90     9.20     9.02    fibers 
                                        6104.1 
                                        9.99 
 
             6104.39  6104.3   6104.3   6104.3  Of other than artificial 
             .aa      9.90     9.20     9.02    fibers 
                                        6104.3 
                                        9.99 
             6104.59  6104.5   6104.5   6104.5  Of other than artificial 
             .aa      9.90     9.20     9.02    fibers 
                                        6104.5 
                                        9.99 
 
 
 
              TARIFF   CANADA    USA    MEXICO            DESCRIPTION 
               ITEM 
             6203.19  6203.1   6203.1   6203.1  Of other than cotton or 
             .aa      9.90     9.40     9.02    artificial fibers 
                                        6203.1 
                                        9.99 
 
             6203.39  6203.3   6203.3   6203.3  Of other than artificial 
             .aa      9.90     9.40     9.02    fibers 
                                        6203.3 
                                        9.99 
 
             6204.19  6204.1   6204.1   6204.1  Of other than artificial 
             .aa      9.90     9.30     9.02    fibers 
                                        6204.1 
                                        9.99 
             6204.39  6204.3   6204.3   6204.3  Of other than artificial 
             .aa      9.90     9.60     9.02    fibers 
                               6204.3   6204.3 
                               9.80     9.99 
 
             6204.59  6204.5   6204.5   6204.5  Of other than artificial 
             .aa      9.90     9.40     9.02    fibers 
                                        6204.5 
                                        9.99 
 
             6303.92  6303.9   6303.9   6303.9  Made up from fabrics 
             .aa      2.10     2.00A    2.01    described in Canadian tariff 
                               6303.9           item  5407.60.10, U.S. tariff

                               2.00B            item 5407.60.05A, 5407.60.10A

                                                or 5407.60.20A or Mexican 
                                                tariff item 5407.60.02 
             6701.00  6701.0   6701.0   6701.0  Articles of feathers or down 
             .aa      0.10     0.00A    0.01 
                                        6701.0 
                                        0.02 
 
             7011.20  7011.2   7011.2   7011.2  Cones 
             .aa      0.10     0.00A    0.02 
                                        7011.2 
                                        0.03 
 
             7304.41  7304.4   7304.4   7304.4  Of an external diameter of 
             .aa      1.10     1.00A    1.02    less than 19 mm 
                               7304.4 
                               1.00B 
             7321.11  7321.1   7321.1   7321.1  Stoves or ranges (other than 
             .aa      1.19     1.30     1.02    portable) 
 
 
 
              TARIFF   CANADA    USA    MEXICO            DESCRIPTION 
               ITEM 
                                                Parts: 
                                                     Of stoves or ranges 
             7321.90  7321.9   7321.9   7321.9       (other than portable): 
             .aa      0.51     0.30A    0.05              Cooking chambers, 
                                                          whether or not 
             7321.90  7321.9   7321.9   7321.9            assembled  
             .bb      0.52     0.30B    0.06              Top surface panels 
                                                          with or without 
             7321.90  7321.9   7321.9   7321.9            burners or control 
             .cc      0.53     0.30C    0.07              Door assemblies, 
                                                          incorporating at 
                                                          least two of the 
                                                          following: inner 
                                                          panel, outer panel,

                                                          window, insulation 
 
             7404.00  7404.0   7404.0   7404.0  Spent anodes; waste and scrap

             .aa      0.11     0.00A    0.03    with a copper content of less

                      7404.0                    than 94 percent by weight 
                      0.21 
                      7404.0 
                      0.91 
 
             7407.10  7407.1   7407.1   7407.1  Hollow profiles 
             .aa      0.13     0.10A    0.03 
                      7407.1 
                      0.22 
             7407.21  7407.2   7407.2   7407.2  Hollow profiles 
             .aa      1.13     1.10A    1.03 
                      7407.2 
                      1.22 
 
             7407.22  7407.2   7407.2   7407.2  Hollow profiles 
             .aa      2.14     2.10A    2.03 
                      7407.2 
                      2.22 
 
             7407.29  7407.2   7407.2   7407.2  Hollow profiles 
             .aa      9.13     9.10A    9.03 
                      7407.2 
                      9.22 
             7408.11  7408.1   7408.1   7408.1  With a maximum cross- 
             .aa      1.11     1.60     1.01    sectional dimension not 
                      7408.1                    exceeding 9.5 mm 
                      1.12 
 
 

              TARIFF   CANADA    USA    MEXICO            DESCRIPTION 
               ITEM 
             7506.10  7506.1   7506.1   7506.1  Foil, not exceeding 0.15 mm 
             .aa      0.22     0.50A    0.01    in thickness 
 
             7506.20  7506.2   7506.2   7506.2  Foil, not exceeding 0.15 mm 
             .aa      0.92     0.50A    0.01    in thickness 
 
             8102.92  8102.9   8102.9   8102.9  Bars and rods 
             .aa      2.10     2.00A    2.01 
             8111.00  8111.0   8111.0   8111.0  Manganese powders and 
             .aa      0.21     0.60     0.01    articles of manganese 
                      8111.0 
                      0.22 
                      8111.0 
                      0.40 
 
             8406.90  8406.9   8406.9   8406.9  Rotors, finished for final 
             .aa      0.22     0.10A    0.01    assembly 
                      8406.9   8406.9 
             8406.90  0.32     0.90A    8406.9  Blades, rotating or 
             .bb      8406.9   8406.9   0.02    stationary 
                      0.24     0.10C 
             8406.90  8406.9   8406.9   8406.9  Rotors, not further advanced 
             .cc      0.34     0.90C    0.03    than cleaned or machined for 
                      8406.9   8406.9           removal of fins, gates, 
                      0.21     0.10B            sprues, and risers, or to 
                      8406.9   8406.9           permit location in finishing 
                      0.31     0.90B            machinery 
 
             8407.34  8407.3   8407.3   8407.3  Engines of a cylinder 
             .aa      4.10     4.10A    4.02    capacity exceeding 1000 cc 
                               8407.3           but not exceeding 2000 cc 
                               4.20A 
             8407.34  8407.3   8407.3   8407.3  Engines of a cylinder 
             .bb      4.20     4.90A    4.99    capacity exceeding 2000 cc 
                               8407.3 
                               4.10B 
                               8407.3 
                               4.20B 
                               8407.3 
                               4.90B 
             8414.59  see      8414.5   see     Turbochargers and 
             .aa      8414.8   9.80B    8414.8  superchargers for motor 
                      0.aa              0.aa    vehicles, where not provided 
                                                for under subheading 8414.80 
 
 
 
              TARIFF   CANADA    USA    MEXICO            DESCRIPTION 
               ITEM 
             8414.80  8414.8   8414.8   8414.8  Turbochargers and 
             .aa      0.10     0.10B    0.14    superchargers for motor 
                                                vehicles, where not provided 
                                                for under subheading 8414.59 
 
             8414.90  8414.9   8414.9   8414.9  Stators and rotors of goods 
             .aa      0.21     0.20A    0.14    of subheading 8414.30 
                      8414.9   8414.9 
                      0.51     0.20B 
 
             8415.90  8415.9   8415.9   8415.9  Chassis, chassis bases and 
             .aa      0.11     0.00A    0.01    outer cabinets 
                      8415.9   8415.9 
                      0.21     0.00B 
                      8415.9 
                      0.31 
                      8415.9 
                      0.41 
             8418.99  8418.9   8418.9   8418.9  Door assemblies incorporating

             .aa      9.11     9.00A    9.12    at least two of the 
                      8418.9                    following: inner panel; outer

                      9.21                      panel; insulation; hinges; 
                      8418.9                    handles 
                      9.31 
                      8418.9 
                      9.41 
                      8418.9 
                      9.51 
 
             8421.39  8421.3   8421.3   8421.3  Catalytic converters 
             .aa      9.20     9.00B    9.09 
 
             8421.91  8421.9   8421.9   8421.9  Drying chambers for the goods

             .aa      1.11     1.00A    1.02    of subheading 8421.12 and 
                                                other parts of clothes-dryers

                                                incorporating drying chambers

             8421.91  8421.9   8421.9   8421.9  Furniture designed to receive

             .bb      1.12     1.00B    1.03    the goods of subheading 
                                                8421.12 
 
 
              TARIFF   CANADA    USA    MEXICO            DESCRIPTION 
               ITEM 
             8422.90  8422.9   8422.9   8422.9  Water containment chambers 
             .aa      0.11     0.05A    0.05    for the goods of subheading 
                      8422.9                    8422.11 and other parts of 
                      0.22                      dishwashing machines of the 
                                                household type incorporating 
             8422.90           8422.9   8422.9  water containment chambers 
             .bb      8422.9   0.05B    0.06    Door assemblies for the goods

                      0.12                      of subheading 8422.11 
                      8422.9 
                      0.23 
 
             8427.10  8427.1   8427.1   8427.1  Rider-type, counterbalanced 
             .aa      0.10     0.00A    0.03    fork-lift trucks 
                                        8427.1 
                                        0.04 
 
             8427.20  8427.2   8427.2   8427.2  Rider-type, counterbalanced 
             .aa      0.10     0.00A    0.04    fork-lift trucks 
                                        8427.2 
                                        0.05 
             8450.90  8450.9   8450.9   8450.9  Tubs and tub assemblies 
             .aa      0.11     0.00A    0.01 
                      8450.9 
                      0.21 
                      8450.9                    Furniture designed to receive

             8450.90  0.31     8450.9   8450.9  the goods of subheading 
             .bb      8450.9   0.00B    0.02    8450.11 through 8450.20 
                      0.41 
                      8450.9 
                      0.12 
                      8450.9 
                      0.22 
                      8450.9 
                      0.32 
                      8450.9 
                      0.42 
 

              TARIFF   CANADA    USA    MEXICO            DESCRIPTION 
               ITEM 
             8451.90  8451.9   8451.9   8451.9  Drying chambers for the goods

             .aa      0.11     0.00A    0.01    of subheading 8451.21 or 
                      8451.9                    8451.29 and other parts of 
                      0.21                      drying machines incorporating

             8451.90  8451.9   8451.9   8451.9  drying chambers 
             .bb      0.31     0.00B    0.02    Furniture designed to receive

                      8451.9                    the goods of subheading 
                      0.12                      8451.21 or 8451.29 
                      8451.9 
                      0.22 
                      8451.9 
                      0.32 
 
             8455.90  8455.9   8455.9   8455.9  Castings or weldments, 
             .aa      0.10     0.00A    0.01    individually weighing less 
                                                than 90 tons, for the 
                                                machines of heading 84.55 
 
             8459.70  8459.7   8459.7   8459.7  Numerically controlled 
             .aa      0.10     0.00A    0.03 
             8460.40  8460.4   8460.4   8460.4  Numerically controlled 
             .aa      0.10     0.00A    0.02 
 
             8460.90  8460.9   8460.9   8460.9  Numerically controlled 
             .aa      0.11     0.00A    0.03 
                      8460.9 
                      0.91 
 
             8461.10  8461.1   8461.1   8461.1  Numerically controlled 
             .aa      0.10     0.00A    0.03 
             8461.20  8461.2   8461.2   8461.2  Numerically controlled 
             .aa      0.11     0.00A    0.01 
                      8461.2 
                      0.21 
 
             8461.30  8461.3   8461.3   8461.3  Numerically controlled 
             .aa      0.10     0.00A    0.01 
 
             8461.50  8461.5   8461.5   8461.5  Numerically controlled 
             .aa      0.10     0.00A    0.03 
             8461.90  8461.9   8461.9   8461.9  Numerically controlled 
             .aa      0.11     0.00A    0.02 
                      8461.9 
                      0.91 
 
             8462.91  8462.9   8462.9   8462.9  Numerically controlled 
             .aa      1.10     1.00A    1.05 
 
 

              TARIFF   CANADA    USA    MEXICO            DESCRIPTION 
               ITEM 
             8462.99  8462.9   8462.9   8462.9  Numerically controlled 
             .aa      9.10     9.00A    9.05 
 
             8466.93  8466.9   8466.9   8466.9  Bed, base, table, head, tail,

             .aa      3.11     3.10A    3.04    saddle, cradle, cross slide, 
                      8466.9   8466.9           column, arm, saw arm, 
                      3.91     3.50A            wheelhead, saddle, tailstock,

                               8466.9           headstock, ram, frame, work- 
                               3.70A            arbor support, and C-frame 
                                                castings, weldments or 
                                                fabrications 
 
             8466.94  8466.9   8466.9   8466.9  Bed, base, table, column, 
             .aa      4.11     4.10A    4.02    cradle, frame, bolster, 
                      8466.9   8466.9           crown, slide, fly wheel, rod,

                      4.91     4.50A            tailstock and headstock 
                                                castings, weldments or 
                                                fabrications 
             8469.10  8469.1   8469.1   8469.1  Word processing machines 
             .aa      0.20     0.00A    0.02 
 
 
 
              TARIFF   CANADA    USA    MEXICO            DESCRIPTION 
               ITEM 
             8471.92  8471.9   8471.9   8471.9  Color cathode-ray tube 
             .aa      2.31     2.40A    2.02    monitors 
                               8471.9 
                               2.40B            Printer units: 
                                                     Laser: 
             8471.92  8471.9            8471.9            Capable of 
             .bb      2.21     8471.9   2.03              producing more than

                               2.65A                      20 pages per minute

                               8471.9 
             8471.92  8471.9   2.65B    8471.9            Other 
             .cc      2.22     8471.9   2.08 
                               2.70A 
                               8471.9                Light bar type 
             8471.92  8471.9   2.65C    8471.9       electronic 
             .dd      2.23     8471.9   2.04 
                               2.65D 
                               8471.9                Ink jet 
             8471.92  8471.9   2.70B    8471.9 
             .ee      2.24     8471.9   2.05 
                               2.65E                 Thermal transfer 
                               8471.9 
             8471.92  8471.9   2.65F    8471.9 
             .ff      2.25     8471.9   2.06         Ionographic 
                               2.70C 
                               8471.9 
             8471.92  8471.9   2.65G    8471.9  Combined input/output units 
             .gg      2.26     8471.9   2.07    Display units with monochrome

                               2.65H            cathode-ray tubes; display 
                               8471.9           units with flat panels 
             8471.92  8471.9   2.70D    8471.9  exceeding 30.5 cm; other 
             .hh      2.10     8471.9   2.09    display units excluding 
             8471.92  8471.9   2.65I    8471.9  display units with color 
             .ii      2.32     8471.9   2.10    cathode-ray tubes 
                      8471.9   2.65J            Display units without a 
                      2.34     8471.9           cathode-ray tube having a 
                      8471.9   2.70E            visual display diagonal not 
             8471.92  2.39     8471.9   8471.9  exceeding 30.5 cm 
             .jj               2.65K    2.11    Optical scanners and magnetic

                      8471.9   8471.9           ink recognition devices 
             8471.92  2.33     2.65L    8471.9 
             .kk               8471.9   2.12    Other input or output units 
                      8471.9   2.70F 
             8471.92  2.40     8471.9   8471.9 
             .ll               2.10     2.99 
                      8471.9   8471.9 
                      2.50     2.40C 
                      8471.9   8471.9 
 
 
              TARIFF   CANADA    USA    MEXICO            DESCRIPTION 
               ITEM 
             8471.99  8471.9   8471.9   8471.9  Control or adapter units 
             .aa      9.91     9.15     9.01    Power supplies 
             8471.99  8471.9   8471.9   8471.9 
             .bb      9.92     9.32     9.02    Other units suitable for 
                               8471.9           physical incorporation into 
             8471.99  8471.9   9.34     8471.9  automatic data processing 
             .cc      9.98     8471.9   9.03    machines or units thereof 
                               9.60 
 
             8473.10  8473.1   8473.1   8473.1  Parts for word processing 
             .aa      0.91     0.00A    0.01    machines of heading 84.69 
             8473.10  8473.1   8473.1   8473.1  Parts of other machines of 
             .bb      0.92     0.00B    0.02    heading 84.69 
                      8473.1 
                      0.93 
 
             8473.30  8473.3   8473.3   8473.3  Printed circuit assemblies, 
             .aa      0.21     0.40A    0.03    other than parts for printers

                      8473.3                    specified in Note 2 of 
             8473.30  0.22     8473.3   8473.3  Chapter 84 
             .bb      8473.3   0.40B    0.04    Parts and accessories, 
                      0.23                      including face plates and 
                                                lock latches, of printed 
                                                circuit assemblies of 
                                                Canadian tariff item 
             8473.30           8473.3   8473.3  8473.30.21 or 8473.30.21, 
             .cc      8473.3   0.40C    0.02    U.S. tariff item 8473.30.40A 
                      0.10                      or Mexican tariff item 
                                                8473.30.03, not elsewhere 
                                                classified 
                                                Other parts for printers of 
                                                subheading 8471.92, specified

                                                in Note 2 of Chapter 84 
             8477.90  8477.9   8477.9   8477.9  Base, bed, platen, clamp 
             .aa      0.11     0.00A    0.01    cylinder, ram and injection 
                      8477.9                    castings, weldments, and 
             8477.90  0.21     8477.9   8477.9  fabrications 
             .bb      8477.9   0.00B    0.02    Barrel screws 
                      0.12 
             8477.90  8477.9   8477.9   8477.9  Hydraulic assemblies 
             .cc      0.22     0.00C    0.03    incorporating at least two or

                      8477.9                    more of the following: 
                      0.13                      manifold, valves, pump, oil 
                      8477.9                    cooler 
                      0.23 
 
 
 
              TARIFF   CANADA    USA    MEXICO            DESCRIPTION 
               ITEM 
             8479.82  see      see      8479.8  Trash compactors 
             .aa      8479.8   8479.8   2.03 
                      9.aa     9.aa 
 
             8479.89  8479.8   8479.8   see     Trash compactors 
             .aa      9.91     9.60B    8479.8 
                                        2.aa 
 
             8479.90  8479.9   8479.9   8479.9  Frame assemblies 
             .aa      0.61     0.80B    0.17    incorporating at least two of

                                                the following: baseplate, 
                                                side frames, power screws, 
             8479.90  8479.9   8479.9   8479.9  front plates 
             .bb      0.62     0.80C    0.18    Ram assemblies incorporating 
                                                a ram wrapper and/or ram 
             8479.90  8479.9   8479.9   8479.9  cover 
             .cc      0.63     0.80D    0.19    Container assemblies 
                                                incorporating at least two of

                                                the following: container 
             8479.90  8479.9   8479.9   8479.9  bottom, container wrapper, 
             .dd      0.64     0.80E    0.20    slide track, container front 
                                                Cabinet or cases 
             8482.99  8482.9   8482.9   8482.9  Inner or outer rings or races

             .aa      9.11     9.10A    9.01 
                      8482.9   8482.9   8482.9 
                      9.91     9.30A    9.03 
                               8482.9 
                               9.50A 
                               8482.9 
                               9.70A 
 
             8501.32  8501.3   8501.3   8501.3  Electric motors that provide 
             .aa      2.12     2.40A    2.06    primary source for electric 
                                                powered vehicles of 
                                                subheading 8703.90 
 
 

              TARIFF   CANADA    USA    MEXICO            DESCRIPTION 
               ITEM 
             8503.00  8503.0   8503.0   8503.0  Stators and rotors for the 
             .aa      0.11     0.40A    0.01    goods of heading 85.01 
                      8503.0   8503.0   8503.0 
                      0.12     0.60A    0.05 
                      8503.0   8503.0 
                      0.13     0.60C 
                      8503.0 
                      0.14 
                      8503.0 
                      0.15 
                      8503.0 
                      0.16 
                      8503.0 
                      0.17 
                      8503.0 
                      0.18 
                      8503.0 
                      0.19 
 
             8504.40  8504.4   8504.4   8504.4  Power supplies for the 
             .aa      0.40     0.00A    0.12    automatic data processing 
                               8504.4           machines of heading 84.71  
             8504.40  8504.4   0.00B    8504.4  Speed drive controllers for 
             .bb      0.50     8504.4   0.13    electric motors 
                               0.00C 
                               8504.4 
                               0.00D 
 
             8504.90  8504.9   8504.9   8504.9  Printed circuit assemblies 
             .aa      0.12     0.00A    0.07    for the goods of subheadings 
                      8504.9                    8504.40 and 8504.90. 
                      0.13 
                      8504.9 
                      0.14 
             8504.90  8504.9   8504.9   8504.9  Other parts of power supplies

             .bb      0.15     0.00B    0.08    for automatic data processing

                      8504.9                    machines of heading 84.71 
                      0.16 
                      8504.9 
                      0.80 
             8507.20  8507.2   8507.2   8507.2  Batteries that provide 
             .aa      0.10     0.00B    0.05    primary source for electric 
                                                cars 
 
             8507.30  8507.3   8507.3   8507.3  Batteries that provide 
             .aa      0.10     0.00B    0.04    primary source for electric 
                                                cars 
 
 
 
              TARIFF   CANADA    USA    MEXICO            DESCRIPTION 
               ITEM 
             8507.40  8507.4   8507.4   8507.4  Batteries that provide 
             .aa      0.10     0.00B    0.04    primary source for electric 
                                                cars 
 
             8507.80  8507.8   8507.8   8507.8  Batteries that provide 
             .aa      0.10     0.00B    0.04    primary source for electric 
                                                cars 
 
             8508.90  8508.9   8508.9   8508.9  Housings 
             .aa      0.10     0.00A    0.01 
             8509.90  8509.9   8509.9   8509.9  Housings 
             .aa      0.11     0.20A    0.02 
                      8509.9   8509.9 
                      0.21     0.30A 
                      8509.9   8509.9 
                      0.31     0.40A 
                      8509.9 
                      0.41 
 
             8516.60  8516.6   8516.6   8516.6  Ovens, cooking stoves and 
             .aa      0.20     0.40     0.02    ranges 
 

              TARIFF   CANADA    USA    MEXICO            DESCRIPTION 
               ITEM 
             8516.90  8516.9   8516.9   8516.9  Housings for the goods of 
             .aa      0.21     0.60A    0.07    subheading 8516.33 
             8516.90  8516.9   8516.9   8516.9  Housings and steel bases for 
             .bb      0.71     0.60B    0.08    the goods of subheading 
                                                8516.40 
             8516.90  8516.9   8516.9   8516.9  Assemblies for the goods of 
             .cc      0.42     0.60C    0.09    subheading 8516.50, 
                                                incorporating at least two of

                                                the following: cooking 
                                                chamber; structural 
             8516.90  8516.9   8516.9   8516.9  supporting chassis; door; 
             .dd      0.41     0.60D    0.10    outer  
                                                case 
                                                Printed circuit assemblies 
                                                for the goods of subheading 
                                                8516.50 
             8516.90  8516.9   8516.9   8516.9  For the goods of Canadian 
             .ee      0.51     0.20A    0.11    tariff item 8516.60.20, U.S. 
             8516.90  8516.9   8516.9   8516.9  tariff item 8516.60.40 or 
             .ff      0.52     0.20B    0.12    Mexican tariff item 
                                                8516.60.02: 
             8516.90  8516.9   8516.9   8516.9       Cooking chambers whether

             .gg      0.53     0.20C    0.13         or not assembled 
                                                     Top surface panels with 
                                                     or without heating 
             8516.90  8516.9   8516.9   8516.9       elements or controls 
             .hh      0.61     0.60E    0.03         Door assemblies 
                                                     incorporating at least 
                                                     two of the following: 
                                                     inner panel; outer 
                                                     panel; window; 
                                                     insulation 
                                                Housings for toasters 
 
             8517.40  8517.4   8517.4   8517.4  Modems, of a kind used with 
             .aa      0.10     0.10     0.02    data processing machines of 
                                                heading 84.71 
             8517.40  8517.4   8517.4   8517.4  Other apparatus for carrier- 
             .bb      0.91     0.50     0.03    current line systems, 
                                                telephonic 
             8517.40  8517.4   8517.4   8517.4  Other apparatus for carrier- 
             .cc      0.92     0.70     0.04    current line systems, 
                                                telegraphic 
 
             8517.81  see      see      8517.8  Facsimile machines 
             .aa      8517.8   8517.8   1.05 
                      2.aa     2.aa 
 
 
              TARIFF   CANADA    USA    MEXICO            DESCRIPTION 
               ITEM 
             8517.82  8517.8   8517.8   see     Facsimile machines 
             .aa      2.10     2.00A    8517.8 
                                        1.aa 
 
 
              TARIFF   CANADA    USA    MEXICO            DESCRIPTION 
               ITEM 
                                                Parts of facsimile machines: 
             8517.90  8517.9   8517.9   8517.9       Parts of facsimile 
             .cc      0.31     0.70A    0.10         machines specified in 
                                                     Note 2 to Chapter 85 
             8517.90  8517.9   8517.9   8517.9       Other 
             .hh      0.39     0.70B    0.11    Other parts incorporating 
                                                printed circuit assemblies: 
             8517.90  8517.9   8517.9   8517.9       Parts for telephone sets

             .aa      0.41     0.30A    0.12         Parts for goods of 
             8517.90  8517.9   8517.9   8517.9       subheadings 8517.20, 
             .bb      0.43     0.05A    0.13         8517.30, 8517.81 and 
                      8517.9   8517.9                Canadian tariff item 
                      0.44     0.10A                 8517.40.91, U.S. tariff 
                               8517.9                item 8517.40.50 or 
                               0.15A                 Mexican tariff item 
                               8517.9                8517.40.03 
             8517.90           0.35A    8517.9 
             .dd      8517.9   8517.9   0.14 
                      0.42     0.40A                 Other 
                      8517.9   8517.9 
                      0.45     0.60A 
             8517.90  8517.9   8517.9   8517.9  Other parts: 
             .ee      0.46     0.55A    0.15         Printed circuit 
                               8517.9                assemblies 
                      8517.9   0.70C 
                      0.11     8517.9 
                      8517.9   0.80A 
                      0.12 
                      8517.9   8517.9 
                      0.13     0.05B 
                      8517.9   8517.9 
                      0.14     0.10B 
             8517.90           8517.9   8517.9 
             .ff               0.15B    0.16         Parts, including face 
                               8517.9                plates and lock latches,

                               0.30B                 for printed circuit 
                               8517.9                assemblies 
                               0.35B 
                      8517.9   8517.9 
                      0.21     0.40B 
                      8517.9   8517.9 
                      0.22     0.55B 
                      8517.9   8517.9 
             8517.90  0.23     0.60B    8517.9 
             .gg      8517.9   8517.9   0.99 
                      0.24     0.70D                 Other 
                               8517.9 
 
 
              TARIFF   CANADA    USA    MEXICO            DESCRIPTION 
               ITEM 
             8518.30  8518.3   8518.3   8518.3  Telephone handsets 
             .aa      0.10     0.10     0.03 
 
             8522.90  8522.9   8522.9   8522.9  Printed circuit assemblies 
             .aa      0.31     0.40A    0.14    for the apparatus provided 
                      8522.9   8522.9           for in headings 85.19, 85.20 
                      0.32     0.40B            and 85.21 
                      8522.9   8522.9 
                      0.33     0.60A 
                      8522.9   8522.9 
                      0.34     0.90A 
                      8522.9 
                      0.35 
                      8522.9 
                      0.39 
 
             8525.30  8525.3   8525.3   8525.3  Gyrostabilized television 
             .aa      0.11     0.00A    0.03    cameras 
                      8525.3 
             8525.30  0.21     8525.3   8525.3  Studio television cameras, 
             .bb      8525.3   0.00B    0.04    excluding shoulder-carried 
                      0.12                      and other portable cameras 
                      8525.3 
                      0.22 
             8527.90  8527.9   see      8527.9  Paging alert devices 
             .aa      0.91     8531.8   0.13 
                               0.aa 
 

              TARIFF   CANADA    USA    MEXICO            DESCRIPTION 
               ITEM 
             8528.10  8528.1   8528.1   8528.1  Non-high definition 
             .aa      0.21     0.30A    0.01    television receivers, having 
                      8528.1   8528.1           a single picture tube 
                      0.30     0.60B            intended for direct viewing 
                                                (non-projection type), with
a 
             8528.10                    8528.1  video display diagonal not 
             .bb      8528.1   8528.1   0.02    exceeding 14 inches (35.56 
                      0.22     0.30B            cm) 
                      8528.1   8528.1           Non-high definition 
                      0.40     0.60C            television receivers, having 
             8528.10                    8528.1  a single picture tube 
             .cc                        0.03    intended for direct viewing 
                      8528.1   8528.1           (non-projection type), with
a 
             8528.10  0.24     0.30C    8528.1  video display diagonal 
             .dd      8528.1   8528.1   0.04    exceeding 14 inches (35.56 
                      0.60     0.60D            cm) 
             8528.10  8528.1   8528.1   8528.1  Non-high definition 
             .ee      0.23     0.30D    0.05    television receivers, 
                      8528.1   8528.1           projection type, with 
             8528.10  0.50     0.60E    8528.1  cathode-ray tube 
             .ff      8528.1   8528.1   0.06    High definition television 
                      0.25     0.30E            receivers, non-projection 
             8528.10  8528.1   8528.1   8528.1  type, with cathode-ray tube 
             .gg      0.70     0.60F    0.07    High definition television 
                      8528.1   8528.1           receivers, projection type, 
                      0.26     0.30F            with cathode-ray tube 
                      8528.1   8528.1           Television receivers, with 
                      0.80     0.60G            flat panel screen 
                      8528.1   8528.1 
                      0.11     0.60A            Incomplete or unfinished 
                      8528.1                    television receivers 
                      0.19                      (including assemblies 
                                                consisting of all the parts 
                                                specified in Note 4 to 
                                                Chapter 85 plus a power 
                                                supply), not incorporating a 
                                                cathode-ray tube, flat panel 
                                                screen or similar display 
 
 
 
              TARIFF   CANADA    USA    MEXICO            DESCRIPTION 
               ITEM 
             8529.90  8529.9   8529.9   8529.9  Printed circuit assemblies 
             .aa      0.11     0.30A    0.16    for goods classified under 
                      8529.9   8529.9           heading 85.25 through 85.28, 
                      0.12     0.35D            other than printed circuit 
                      8529.9   8529.9           assemblies of Canadian tariff

                      0.13     0.40A            item 8529.90.31 or 
                      8529.9   8529.9           8529.90.39, U.S. tariff item 
             8529.90  0.14     0.40B    8529.9  8529.90.10, 8529.90.20A, 
             .bb               8529.9   0.17    8529.90.20B, 8529.90.35A or 
                               0.45A            8529.90.35B or Mexican tariff

                      8529.9   8529.9           item 8529.90.18 or 8529.90.19

             8529.90  0.20     0.50A    8529.9  Transceiver assemblies for 
             .cc               8529.9   0.18    the apparatus of subheading 

                               0.40C            8526.10, not elsewhere 
                      8529.9   8529.9           specified 
             8529.90  0.39     0.40D    8529.9 
             .dd               8529.9   0.19    Parts of television receivers

                               0.45B            specified in Note 4 to 
             8529.90  8529.9   8529.9   8529.9  Chapter 85 
             .ee      0.31     0.10     0.20 
                               8529.9           Combinations of parts of 
                      8529.9   0.20A            television receivers 
                      0.40     8529.9           specified in Note 4 to 
             8529.90           0.35A    8529.9  Chapter 85 
             .ff               8529.9   0.21    Flat panel screen assemblies 
                               0.20B            for the goods of Canadian 
                      8529.9   8529.9           tariff item 8528.10.26 or 
                      0.51     0.35B            8528.10.80, U.S. tariff item 
                      8529.9   8529.9           8528.10.30F or 8528.10.60G or

                      0.52     0.35C            Mexican tariff item 
                      8529.9                    8528.10.06 
             8529.90  0.53              8529.9  Parts and accessories, 
             .gg      8529.9            0.22    including face plates and 
                      0.54     8529.9           lock latches, of printed 
                               0.30B            circuit assemblies of 
                               8529.9           Canadian tariff item 
                               0.35E            8529.90.11, 8529.90.12, 
                      8529.9   8529.9           8529.90.13 or 8529.90.14, 
                      0.60     0.40E            U.S. tariff item 8529.90.30A,

                               8529.9           8529.90.35D, 8529.90.40A, 
                               0.40F            8529.90.40B, 8529.90.45A or 
                               8529.9           8529.90.50A or Mexican tariff

                               0.45C            item 8529.90.16, not 
                               8529.9           elsewhere specified 
                               0.50B            Other parts of goods of 
                                                headings 85.25 and 85.27 
                               8529.9           (except parts of cellular 
 
 
              TARIFF   CANADA    USA    MEXICO            DESCRIPTION 
               ITEM 
             8531.80  see      8531.8   see     Paging alert devices 
             .aa      8527.9   0.00A    8527.9 
                      0.aa     8531.8   0.aa 
                               0.00B 
 
             8531.90  8531.9   8531.9   8531.9  Printed circuit assemblies 
             .aa      0.11     0.00A    0.03 
                      8531.9 
                      0.21 
 
             8533.40  8533.4   8533.4   8533.4  Metal oxide varistors 
             .aa      0.10     0.00A    0.07 
             8533.90  8533.9   8533.9   8533.9  For the goods of subheading 
             .aa      0.11     0.00A    0.02    8533.40, of ceramic or 
                                                metallic materials, 
                                                electrically or mechanically 
                                                reactive to changes in 
                                                temperature 
 
             8535.90  8535.9   8535.9   8535.9  Motor starters and motor 
             .aa      0.30     0.00A    0.08    overload protectors 
                                        8535.9 
                                        0.20 
                                        8535.9 
                                        0.24 
 
             8536.30  8536.3   8536.3   8536.3  Motor overload protectors 
             .aa      0.12     0.00A    0.05 
             8536.50  8536.5   8536.5   see     Motor starters 
             .aa      0.21     0.00A    8536.9 
                      8536.5            0.aa 
                      0.29 
 
             8536.90  see      see      8536.9  Motor starters 
             .aa      8536.5   8536.5   0.07 
                      0.aa     0.aa     8536.9 
                                        0.27 
 
 
              TARIFF   CANADA    USA    MEXICO            DESCRIPTION 
               ITEM 
             8537.10  8537.1   8537.1   8537.1  Assembled with outer housing 
             .aa      0.11     0.00A    0.05    or supports, for the goods of

                      8537.1                    heading 84.21, 84.22, 84.50 
                      0.19                      or 85.16 
                      8537.1 
             8537.10  0.41     8537.1   8537.1 
             .bb      8537.1   0.00B    0.06    Motor control centers 
                      0.49 
                      8537.1 
                      0.31 
                      8537.1 
                      0.39 
 
             8538.90  8538.9   8538.9   8538.9  For the goods of Canadian 
             .aa      0.20     0.00B    0.12    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, 
             8538.90  8538.9   8538.9   8538.9  8536.90.07 or 8536.90.27, of 
             .bb      0.30     0.00A    0.13    ceramic or metallic 
             8538.90  8538.9   8538.9   8538.9  materials, electrically or 
             .cc      0.60     0.00C    0.14    mechanically reactive to 
                                                changes in temperature 
                                                Printed circuit assemblies 
                                                Moulded parts 
 
             8540.11  8540.1   8540.1   8540.1  Non-high definition, for non-

             .aa      1.22     1.00A    1.01    projection televisions, 
                                                having a video display 
                                                diagonal exceeding 14 inches 
             8540.11  8540.1   8540.1   8540.1  (35.56 cm) 
             .bb      1.21     1.00B    1.02    Non-high definition, for non-

                                                projection televisions, 
                                                having a video display 
             8540.11  8540.1   8540.1   8540.1  diagonal not exceeding 14 
             .cc      1.12     1.00C    1.03    inches (35.56 cm) 
                                                High definition, having a 
             8540.11  8540.1   8540.1   8540.1  video display diagonal 
             .dd      1.11     1.00D    1.04    exceeding 14 inches (35.56 
                                                cm) 
                                                High definition, having a 
                                                video display diagonal not 
                                                exceeding 14 inches (35.56 
                                                cm) 
 
 
 
              TARIFF   CANADA    USA    MEXICO            DESCRIPTION 
               ITEM 
             8540.12  8540.1   8540.1   8540.1  Non-high definition 
             .aa      2.90     2.40A    2.99    High definition 
             8540.12  8540.1   8540.1   8540.1 
             .bb      2.10     2.40B    2.01 
 
             8540.91  8540.9   8540.9   8540.9  Front panel assemblies 
             .aa      1.10     1.40A    1.03 
 
             8540.99  8540.9   8540.9   8540.9  Electron guns; radio 
             .aa      9.10     9.00A    9.05    frequency (RF) interaction 
                                                structures for microwave 
                                                tubes of subheading 8540.41 
                                                through 8540.49 
             8542.11  8542.1   8542.1   8542.1  Monolithic integrated 
             .aa      1.10     1.00A    1.02    circuits for high definition 
                                                television, having greater 
                                                than 100,000 gates 
 
             8543.80  8543.8   8543.8   8543.8  Microwave amplifiers 
             .aa      0.60     0.90A    0.20 
 
             8543.90  8543.9   8543.9   8543.9  Printed circuit assemblies 
             .aa      0.11     0.40A8   0.01 
                      8543.9   543.90 
                      0.12     .40B 
                      8543.9   8543.9 
                      0.13     0.80A 
                      8543.9 
                      0.14 
             8607.19  8607.1   8607.1   8607.1  Axles 
             .aa      9.11     9.10A    9.02 
                                        8607.1  Parts of axles 
             8607.19  8607.1   8607.1   9.06    Wheels, whether or not fitted

             .bb      9.13     9.10B    8607.1  with axles 
             8607.19  8607.1   8607.1   9.07    Parts of wheels 
             .cc      9.12     9.20A    8607.1 
             8607.19  8607.1   8607.1   9.03 
             .dd      9.13     9.20B    8607.1 
                                        9.07 
 
             8702.10  8702.1   8702.1   8702.1  Designed for the transport of

             .aa      0.10     0.00A    0.03    16 or more persons, including

                                                the driver 
             8702.10  8702.1   8702.1   8702.1  Other 
             .bb      0.90     0.00B    0.01 
                                        8702.1 
                                        0.02 
 

 
              TARIFF   CANADA    USA    MEXICO            DESCRIPTION 
               ITEM 
             8702.90  8702.9   8702.9   8702.9  Designed for the transport of

             .aa      0.10     0.00A    0.04    16 or more persons, including

                                                the driver 
             8702.90  8702.9   8702.9   8702.9  Other 
             .bb      0.90     0.00B    0.01 
                                        8702.9 
                                        0.02 
                                        8702.9 
                                        0.03 
 
             8706.00  8706.0   8706.0   8706.0  Chassis of vehicles of 
             .aa      0.20     0.10A    0.02    heading 87.03 and subheadings

                               8706.0           8704.21 and 8704.31 
             8706.00  8706.0   0.15     8706.0  Chassis for other vehicles 
             .bb      0.10     8706.0   0.99 
                      8706.0   0.10B 
                      0.90     8706.0 
                               0.25 
                               8706.0 
                               0.30 
                               8706.0 
                               0.50 
 
             8708.10  8708.1   8708.1   8708.1  Bumpers, but not parts 
             .aa      0.10     0.00A    0.01    thereof 
             8708.29  8708.2   8708.2   8708.2  Body stampings 
             .aa      9.11     9.00A    9.23 
                      8708.2                    Inflators and modules for 
             8708.29  9.96     8708.2   8708.2  airbags 
             .bb      8708.2   9.00B    9.21    Door assemblies 
             8708.29  9.97     8708.2   8708.2 
             .cc      8708.2   9.00C    9.22    Airbags for use in motor 
                      9.12                      vehicles, where not provided 
             8708.29  8708.2   see      see     for under subheading 8708.99 
             .dd      9.20     8708.9   8708.9 
                      8708.2   9.cc     9.cc 
                      9.98 
 
             8708.50  8708.5   8708.5   8708.5  For vehicles of heading 87.03

             .aa      0.20     0.50     0.06 
                                        8708.5 
                                        0.07 
 
             8708.60  8708.6   8708.6   8708.6  For vehicles of heading 87.03

             .aa      0.20     0.50     0.07 
 
 
 
              TARIFF   CANADA    USA    MEXICO            DESCRIPTION 
               ITEM 
             8708.70  8708.7   8708.7   8708.7  Road wheels, but not parts or

             .aa      0.11     0.10A    0.01    accessories thereof 
                      8708.7   8708.7   8708.7 
                      0.91     0.30A    0.02 
                               8708.7   8708.7 
                               0.80A    0.03 
                                        8708.7 
                                        0.04 
                                        8708.7 
                                        0.05 
                                        8708.7 
                                        0.99 
 
             8708.80  8708.8   8708.8   8708.8  McPherson Struts 
             .aa      0.10     0.10A    0.04 
                               8708.8 
                               0.50A 
 
             8708.93  8708.9   8708.9   8708.9  Clutches, but not parts 
             .aa      3.11     3.10A    3.01    thereof 
                      8708.9   8708.9   8708.9 
                      3.91     3.50A    3.02 
                                        8708.9 
                                        3.03 
                                        8708.9 
                                        3.04 
 

 
 
              TARIFF   CANADA    USA    MEXICO            DESCRIPTION 
               ITEM 
             8708.99  8708.9   8708.9   8708.9  Vibration control goods 
             .aa      9.15     9.10A    9.42    containing rubber 
                      8708.9   8708.9 
                      9.25     9.20A 
             8708.99  8708.9   8708.9   8708.9  Doubled flanged wheel hub 
             .bb      9.96     9.50A    9.43    units incorporating ball 
                      8708.9   8708.9           bearings 
                      9.16     9.10B 
             8708.99  8708.9   8708.9   8708.9  Airbags for use in motor 
             .cc      9.26     9.20B    9.48    vehicles, where not provided 
                      8708.9   8708.9           for under subheading 8708.29 
                      9.97     9.50B 
             8708.99  see      8708.9   8708.9  Half-shafts and drive shafts 
             .dd      8708.2   9.10C    9.44 
                      9.dd     8708.9 
                               9.20C            Other parts for powertrains 
             8708.99  8708.9   8708.9   8708.9 
             .ee      9.11     9.50C    9.45 
                      8708.9   8708.9           Parts for suspension systems 
                      9.21     9.10D 
             8708.99  8708.9   8708.9   8708.9 
             .ff      9.92     9.20D    9.46    Parts for steering systems 
                      8708.9   8708.9 
                      9.12     9.50D 
             8708.99  8708.9   8708.9   8708.9  Other parts and accessories 
             .gg      9.22     9.10E    9.47    not elsewhere classified 
                      8708.9   8708.9           under subheading 8708.99 
                      9.93     9.20E 
             8708.99  8708.9   8708.9   8708.9 
             .hh      9.13     9.50E    9.99 
                      8708.9   8708.9 
                      9.23     9.10F 
                      8708.9   8708.9 
                      9.94     9.20F 
                      8708.9   8708.9 
                      9.14     9.50F 
                      8708.9   8708.9 
                      9.24     9.10G 
                      8708.9   8708.9 
                      9.95     9.20G 
                      8708.9   8708.9 
                      9.19     9.50G 
                      8708.9   8708.9 
                      9.29     9.10H 
                      8708.9   8708.9 
                      9.99     9.20H 
                               8708.9 
 
 
              TARIFF   CANADA    USA    MEXICO            DESCRIPTION 
               ITEM 
             9005.90  9005.9   9005.9   9005.9  Incorporating goods of 
             .aa      0.11     0.00A    0.03    heading 90.01 or 90.02 
                      9005.9 
                      0.91 
 
             9007.19  9007.1   9007.1   9007.1  Gyrostabilized 
             .aa      9.10     9.00A    9.01 
 
             9009.90  9009.9   9009.9   9009.9  Parts of photocopying 
             .aa      0.10     0.00A    0.02    apparatus of subheading 
                               9009.9           9009.12 specified in Note 3 
             9009.90  9009.9   0.00B    9009.9  to Chapter 90 
             .bb      0.90     9009.9   0.99    Other 
                               0.00C 
                               9009.9 
                               0.00D 
             9018.11  9018.1   9018.1   9018.1  Electrocardiographs 
             .aa      1.10     1.00A    1.01    Printed circuit assemblies 
             9018.11  9018.1   9018.1   9018.1 
             .bb      1.91     1.00B    1.02 
 
             9018.19  9018.1   9018.1   9018.1  Patient monitoring systems 
             .aa      9.10     9.80A    9.16    Printed circuit assemblies 
             9018.19  9018.1   9018.1   9018.1  for parameter acquisition 
             .bb      9.91     9.80B    9.17    modules 
 
             9018.90  9018.9   9018.9   9018.9  Defibrillators 
             .aa      0.10     0.70A    0.25    Printed circuit assemblies 
             9018.90  9018.9   9018.9   9018.9  for the goods of Canadian 
             .bb      0.91     0.70B    0.26    tariff item 9018.90.10, U.S. 
                                                tariff item 9018.90.70A or 
                                                Mexican tariff item 
                                                9018.90.25 
             9022.90  9022.9   9022.9   9022.9  Radiation generator units 
             .aa      0.10     0.90A    0.04    Radiation beam delivery units

             9022.90  9022.9   9022.9   9022.9 
             .bb      0.20     0.90B    0.05 
 
             9027.80  9027.8   9027.8   9027.8  Nuclear magnetic resonance 
             .aa      0.20     0.40A    0.08    instruments 
 
             9027.90  9027.9   9027.9   9027.9  Printed circuit assemblies 
             .aa      0.30     0.44A    0.04    for the goods of subheading 
                                                9027.80 
 
 

 
              TARIFF   CANADA    USA    MEXICO            DESCRIPTION 
               ITEM 
             9030.90  9030.9   9030.9   9030.9  Printed circuit assemblies 
             .aa      0.21     0.40A    0.02 
                      9030.9   9030.9 
                      0.23     0.40B 
                               9030.9 
                               0.80A 
                               9030.9 
                               0.80B 
 
             9031.80  9031.8   9031.8   9031.8  Coordinate-measuring machines

             .aa      0.40     0.00A    0.06 
                               9031.8 
                               0.00B 
 
             9031.90  9031.9   9031.9   9031.9  Bases and frames for the 
             .aa      0.61     0.60A    0.02    goods of Canadian tariff item

                               9031.9           9031.80.40, U.S. tariff item 
                               0.60B            9031.80.00A or 9031.80.00B or

                                                Mexican tariff item 
                                                9031.80.06 
             9506.39  see      see      9506.3  Individual golf clubs 
             .aa      9506.3   9506.3   9.01 
                      1        1 
 
Title:Annex Cover Page -- Reservations and Exceptions
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:1649


                                        ANNEXES 
 
                              RESERVATIONS AND EXCEPTIONS 
 
                                          for 
 
                                     Chapter Eleven 
                                      (Investment) 
 
                                     Chapter Twelve 
                            (Cross-Border Trade in Services) 
 
                                    Chapter Fourteen 
                                  (Financial Services) 
 
 
            ANNEX I        Reservations   for    Existing   Measures    and 
                           Liberalization Commitments 
                           (Chapters Eleven, Twelve and Fourteen) 
 
            ANNEX II       Reservations for Future Measures 
                           (Chapters Eleven, Twelve and Fourteen) 
 
            ANNEX III      Activities Reserved to the State 
                           (Chapter Eleven) 
 
            ANNEX IV       Exceptions from Most-Favored-Nation Treatment 
                           (Chapter Eleven) 
 
            ANNEX V        Quantitative Restrictions 
                           (Chapter Twelve) 
 
            ANNEX VI       Miscellaneous Commitments 
                           (Chapter Twelve) 
 
            ANNEX VII      Reservations,  Specific  Commitments  and  Other 
                           Items 
                           (Chapter Fourteen)  
 
 Title:Annex I
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/ascii CHARSET=US-ASCII
Content-Length: 7585

                                        Annex I


            1.   The Schedule of a Party sets out, pursuant to Articles
            1108(1) (Investment), 1206(1) (Cross-Border Trade in Services)
            and 1409(4) (Financial Services), the reservations taken by
            that Party with respect to existing measures that do not
            conform with obligations imposed by:

                 (a)  Article 1102, 1202 or 1405 (National Treatment),

                 (b)  Article 1103, 1203 or 1406 (Most-Favored-Nation
                      Treatment),

                 (c)  Article 1205 (Local Presence),

                 (d)  Article 1106 (Performance Requirements), or

                 (e)  Article 1107 (Senior Management and Boards of
                      Directors), 

            and, in certain cases, sets out commitments for immediate or
            future liberalization. 

            2.   Each reservation sets out the following elements:

                 (a)  Sector refers to the general sector in which the
                      reservation is taken;

                 (b)  Sub-Sector refers to the specific sector in which the
                      reservation is taken;

                 (c)  Industry Classification refers, where applicable, to
                      the activity covered by the reservation according to
                      domestic industry classification codes;

                 (d)  Type of Reservation specifies the obligation referred
                      to in paragraph 1 for which a reservation is taken;

                 (e)  Level of Government indicates the level of government
                      maintaining the measure for which a reservation is
                      taken;

                 (f)  Measures identifies the laws, regulations or other
                      measures, as qualified, where indicated, by the
                      Description element, for which the reservation is
                      taken.  A measure cited in the Measures element 


                                     Annex I

                           (i)  means the measure as amended, continued or
                                renewed as of the date of entry into force
                                of this Agreement, and

                           (ii) includes any subordinate measure adopted or
                                maintained under the authority of and
                                consistent with the measure; 

                 (g)  Description sets out commitments, if any, for
                      liberalization on the date of entry into force of
                      this Agreement, and the remaining non-conforming
                      aspects of the existing measures for which the
                      reservation is taken; and

                 (h)  Phase-Out sets out commitments, if any, for
                      liberalization after the date of entry into force of
                      this Agreement.

            3.   In the interpretation of a reservation, all elements of
            the reservation shall be considered.  A reservation shall be
            interpreted in the light of the relevant provisions of the
            Chapters against which the reservation is taken.  To the extent
            that: 
             
                 (a)  the Phase-Out element provides for the phasing out of
                      non-conforming aspects of measures, the Phase-Out
                      element shall prevail over all other elements;

                 (b)  the Measures element is qualified by a liberalization
                      commitment from the Description element, the Measures
                      element as so qualified shall prevail over all other
                      elements; and

                 (c)  the Measures element is not so qualified, the
                      Measures element shall prevail over all other
                      elements, unless any discrepancy between the Measures
                      element and the other elements considered in their
                      totality is so substantial and material that it would
                      be unreasonable to conclude that the Measures element
                      should prevail, in which case the other elements
                      shall prevail to the extent of that discrepancy.

            4.   Where a Party maintains a measure that requires that a
            service provider be a citizen, permanent resident or resident
            of its territory as a condition to the provision of a service
            in its territory, a reservation for that measure taken with
            respect to Article 1202, 1203 or 1205 or Article 1404, 1405 or
            1406 shall operate as a reservation with respect to Article
            1102, 1103 or 1106 to the extent of that measure.

                                    Annex I 

            5.   For purposes of this Annex:

            CMAP means Clasificaci n Mexicana de Actividades y Productos
            (CMAP) numbers as set out in Instituto Nacional de Estad stica,
            Geograf a e Inform tica, Clasificaci n Mexicana de Actividades
            y Productos, 1988;

            concession means an authorization provided by the State to a
            person to exploit a natural resource or provide a service, for
            which Mexican nationals and Mexican enterprises are granted
            priority over foreigners; 

            CPC means Central Product Classification (CPC) numbers as set
            out in Statistical Office of the United Nations, Statistical
            Papers, Series M, No. 77,  Provisional Central Product
            Classification, 1991;

            foreigners' exclusion clause means the express provision in an
            enterprise's by-laws stating that the enterprise shall not
            allow foreigners, directly or indirectly, to become partners or
            shareholders of the enterprise;

            international cargo means goods that have an origin or
            destination outside the territory of a Party;

            Mexican enterprise means an enterprise constituted under the
            law of Mexico; and

            SIC means:

                 (a)  with respect to Canada, Standard Industrial
                      Classification (SIC) numbers as set out in Statistics
                      Canada, Standard Industrial Classification, fourth
                      edition, 1980; and

                 (b)  with respect to the United States, Standard
                      Industrial Classification (SIC) numbers as set out in
                      the United States Office of Management and Budget,
                      Standard Industrial Classification Manual, 1987. 

Title:Annex II
Author: White House
Document-Date: 29 Sept 1993
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Content-Length: 3793

                                 Annex II


            1.   The Schedule of a Party sets out, pursuant to Articles
            1108(3) (Investment) and 1206(3) (Cross-Border Trade in
            Services), the reservations taken by that Party with respect to
            specific sectors, sub-sectors or activities for which it may
            maintain existing, or adopt new or more restrictive, measures
            that do not conform with obligations imposed by:

                 (a)  Article 1102 or 1202 (National Treatment);

                 (b)  Article 1103 or 1203 (Most-Favored-Nation Treatment);

                 (c)  Article 1205 (Local Presence);

                 (d)  Article 1106 (Performance Requirements); or

                 (e)  Article 1107 (Senior Management and Boards of
                      Directors). 

            2.   Each reservation sets out the following elements:

                 (a)  Sector refers to the general sector in which the
                      reservation is taken;

                 (b)  Sub-Sector refers to the specific sector in which the
                      reservation is taken;

                 (c)  Industry Classification refers, where applicable, to
                      the activity covered by the reservation according to
                      domestic industry classification codes;

                 (d)  Type of Reservation specifies the obligation referred
                      to in paragraph 1 for which a reservation is taken;

                 (e)  Description sets out the scope of the sector, sub-
                      sector or activities covered by the reservation; and

                 (f)  Existing Measures identifies, for transparency
                      purposes, existing measures that apply to the sector,
                      sub-sector or activities covered by the reservation.

            3.   In the interpretation of a reservation, all elements of
            the reservation shall be considered.  The Description element
            shall prevail over all other elements.



                                 Annex II                                   

            4.   For purposes of this Annex:

            CMAP means Clasificaci n Mexicana de Actividades y Productos
            (CMAP) numbers as set out in Instituto Nacional de Estad stica,
            Geograf a e Inform tica, Clasificaci n Mexicana de Actividades
            y Productos, 1988;

            CPC means Central Product Classification (CPC) numbers as set
            out in Statistical Office of the United Nations, Statistical
            Papers, Series M, No. 77, Provisional Central Product
            Classification, 1991; and

            SIC means:

                 (a)  with respect to Canada, Standard Industrial
                      Classification (SIC) numbers as set out in Statistics
                      Canada, Standard Industrial Classification, fourth
                      edition, 1980; and

                 (b)  with respect to the United States, Standard
                      Industrial Classification (SIC) numbers as set out in
                      the United States Office of Management and Budget,
                      Standard Industrial Classification Manual, 1987.

Title:Annex V 
Author: White House
Document-Date: 29 Sept 1993
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                                         Annex V 
 
 
            1.   The Schedule of a Party sets out the non-discriminatory 
            quantitative restrictions maintained by that Party pursuant to 
            Article 1207. 
 
            2.   Each entry sets out the following elements: 
 
                 (a)  Sector refers to the general sector in which the 
                      quantitative restriction is maintained; 
 
                 (b)  Sub-Sector refers to the specific sector in which the 
                      quantitative restriction is maintained; 
 
                 (c)  Industry Classification refers, where applicable, to 
                      the activity covered by the quantitative restriction 
                      according to domestic industry classification codes; 
 
                 (d)  Level of Government indicates the level of government 
                      maintaining the quantitative restriction; 
 
                 (e)  Measures identifies the measures under which the 
                      quantitative restriction is maintained; and 
 
                 (f)  Description sets out the scope of the sector, sub- 
                      sector or activities covered by the quantitative 
                      restriction. 
 
            3.   For purposes of this Annex: 
 
            CMAP means Clasificaci n Mexicana de Actividades y Productos 
            (CMAP) numbers as set out in Instituto Nacional de Estad stica, 
            Geograf a e Inform tica, Clasificaci n Mexicana de Actividades y 
            Productos, 1988; 
 
            CPC means Central Product Classification (CPC) numbers as set out

            in Statistical Office of the United Nations, Statistical Papers, 
            Series M, No. 77,  Provisional Central Product Classification, 
            1991; and 
 
            SIC means: 
 
                 (a)  with respect to Canada, Standard Industrial 
                      Classification (SIC) numbers as set out in Statistics 
                      Canada, Standard Industrial Classification, fourth 
                      edition, 1980; and 
 
                                     Annex V                                
                 
             (b)  with respect to the United States, Standard Industrial 
                  Classification (SIC) numbers as set out in the United 
                  States Office of Management and Budget, Standard 
                  Industrial Classification Manual, 1987. 
 
Title:Annex VI
Author: White House
Document-Date: 29 Sept 1993
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                                Annex VI 
 
 
          1.   The Schedule of a Party sets out the commitments to 
          liberalize non-discriminatory measures undertaken by that Party 
          pursuant to Article 1208. 
 
          2.   Each commitment sets out the following elements: 
 
               (a)  Sector refers to the general sector in which the 
                    commitment to liberalize is undertaken; 
 
               (b)  Sub-Sector refers to the specific sector in which the 
                    commitment to liberalize is undertaken; 
 
               (c)  Industry Classification refers, where applicable, to 
                    the activity covered by the non-discriminatory measure 
                    to be liberalized according to domestic industry 
                    classification codes; 
 
               (d)  Level of Government indicates the level of government 
                    maintaining the non-discriminatory measure to be 
                    liberalized; 
 
               (e)  Measures identifies the non-discriminatory measures to 
                    be liberalized; and 
 
               (f)  Description sets out the commitment undertaken by the 
                    Party to liberalize a non-discriminatory measure. 
 
          3.   In the interpretation of a commitment, all elements of the 
          commitment shall be considered. The Description element shall 
          prevail over all other elements. 
 
          4.   For purposes of this Annex: 
 
          CMAP means Clasificaci n Mexicana de Actividades y Productos 
          (CMAP) numbers as set out in Instituto Nacional de Estad stica, 
          Geograf a e Inform tica, Clasificaci n Mexicana de Actividades y 
          Productos, 1988; 
 
          CPC means Central Product Classification (CPC) numbers as set out 
          in Statistical Office of the United Nations, Statistical Papers, 
          Series M, No. 77,  Provisional Central Product Classification, 
          1991; and 
 
                                    Annex VI                                
               
          SIC means: 
 
               (a)  with respect to Canada, Standard Industrial 
                    Classification (SIC) numbers as set out in Statistics 
                    Canada, Standard Industrial Classification, fourth 
                    edition, 1980; and 
 
               (b)  with respect to the United States, Standard Industrial 
                    Classification (SIC) numbers as set out in the United 
                    States Office of Management and Budget, Standard 
                    Industrial Classification Manual, 1987. 
 
Title:Annex VII 
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:6493
  
 
                                       Annex VII 
 
            1.   Section A of the Schedule of a Party sets out the 
            reservations taken by that Party, pursuant to Article 1409(1) 
            (Financial Services), with respect to existing measures that do 
            not conform with obligations imposed by: 
 
                 (a)  Article 1403 (Establishment of Financial 
                      Institutions); 
 
                 (b)  Article 1404 (Cross-Border Trade); 
 
                 (c)  Article 1405 (National Treatment); 
 
                 (d)  Article 1406 (Most-Favored-Nation Treatment); 
 
                 (e)  Article 1407 (New Financial Services and Data 
                      Processing); or 
 
                 (f)  Article 1408 (Senior Management and Boards of 
                      Directors). 
 
            2.   Each reservation in Section A sets out the following 
            elements: 
 
                 (a)  Sector refers to the general sector in which the 
                      reservation is taken; 
 
                 (b)  Sub-Sector refers to the specific sector in which the 
                      reservation is taken; 
 
                 (c)  Industry Classification refers, where applicable, to 
                      the activity covered by the reservation according to 
                      domestic industry classification codes; 
 
                 (d)  Type of Reservation specifies the obligation referred 
                      to in paragraph 1 for which the reservation is taken; 
 
                 (e)  Level of Government indicates the level of government 
                      maintaining the measure for which the reservation is 
                      taken; 
 
                 (f)  Measures identifies the laws, regulations or other 
                      measures, as qualified by the Description element, 
                      for which the reservation is taken.  A measure cited 
                      in the Measures element 
 
                      (i)  means the measure as amended, continued or 
                           renewed as of the date of entry into force of 
                           this Agreement, and 
 
                      (ii) includes any subordinate measure adopted or 
                           maintained under the authority of and consistent 
                           with the measure; 
 
                 (g)  Description sets out references, if any, for 
                      liberalization on the date of entry into force of 
                      this Agreement pursuant to other sections of a 
                      Party's Schedule to this Annex, and the remaining 
                      non-conforming aspects of the existing measures for 
                      which the reservation is taken; and 
 
                 (h)  Phase-Out sets out commitments, if any, for 
                      liberalization after the date of entry into force of 
                      this Agreement. 
 
            3.   In the interpretation of a reservation, all elements of 
            the reservation shall be considered.  A reservation shall be 
            interpreted in the light of the relevant provisions of the 
            Chapter against which the reservation is taken.  To the extent 
            that: 
 
                 (a)  the Phase-Out element provides for the phasing out of 
                      the non-conforming aspects of measures, the Phase-Out 
                      element shall prevail over all other elements; 
 
                 (b)  the Measures element is qualified by a specific 
                      reference in the Description element, the Measures 
                      element as so qualified shall prevail over all other 
                      elements; and  
 
                 (c)  the Measures element is not so qualified, the 
                      Measures element shall prevail over all other 
                      elements, unless any discrepancy between the Measures 
                      element and the other elements considered in their 
                      totality is so substantial and material that it would 
                      be unreasonable to conclude that the Measures element 
                      should prevail, in which case the other elements 
                      shall prevail to the extent of that discrepancy. 
 
            4.   Section B of the Schedule of a Party sets out reservations 
            taken by the Party, pursuant to Article 1409(2), for measures 
            the Party may adopt or maintain that do not conform with 
            obligations imposed by Article 1403, 1404, 1405, 1406, 1407 or 
            1408. 
 
            5.   Section C of the Schedule of a Party sets out the 
            commitments to liberalize measures undertaken by that Party 
            pursuant to Article 1409(3).   
 
            6.   For purposes of this Annex: 
 
                                  Annex VII                                 

            CMAP means Clasificaci n Mexicana de Actividades y Productos 
            (CMAP) numbers as set out in Instituto Nacional de Estad stica, 
            Geograf a e Inform tica, Clasificaci n Mexicana de Actividades 
            y Productos, 1988; 
 
            CPC means Central Product Classification (CPC) numbers as set 
            out in Statistical Office of the United Nations, Statistical 
            Papers, Series M, No. 77, Provisional Central Product 
            Classification, 1991; and 
 
            SIC means: 
 
                 (a)  with respect to Canada, Standard Industrial 
                      Classification (SIC) number as set out in Statistics 
                      Canada, Standard Industrial Classification, fourth 
                      edition, 1980; and 
 
                 (b)  with respect to the United States, Standards 
                      Industrial Classification (SIC) numbers as set out in 
                      the United States Office of Management and Budget, 
                      Standard Industrial Classification Manual, 1987. 

Title:Annex I -- Schedule of Canada
Author: White House
Document-Date: 29 Sept 1993
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                                       Annex I
                                   Schedule of Canada


            Sector:             Agriculture
            
            Sub-Sector:
            
            Industry
            Classification:
            
            Type of             National Treatment (Article 1102)
            Reservation:
            Level of            Federal
            Government:
            Measures:           Farm Credit Act, R.S.C. 1985, c. F-2

                                Farm Credit Regulations, C.R.C. 1978, c. 644

            Description:        Investment

                                Loans by the Farm Credit Corporation may be
                                made only to:

                                (a)  individuals who are Canadian citizens or
                                     permanent residents;

                                (b)  farming corporations controlled by
                                     Canadian citizens or permanent
                                     residents; or

                                (c)  cooperative farm associations, all
                                     members of which are Canadian citizens
                                     or permanent residents.

            Phase-Out:          None

                               Annex I - Canada


            Sector:             All Sectors

            Sub-Sector:

            Industry
            Classification:

            Type of             National Treatment (Article 1102)
            Reservation:        Performance Requirements (Article 1106)
                                Senior Management and Boards of Directors
                                (Article 1107)
            
            Level of            Federal
            Government:
            Measures:           Investment Canada Act, R.S.C. 1985, c. 28
                                (1st Supp.)

                                Investment Canada Regulations, SOR/85-611

                                As qualified by paragraphs 8 through 12 of
                                the Description element

            Description:        Investment

                                1.   Under the Investment Canada Act, the
                                following acquisitions of Canadian businesses
                                by "non-Canadians" are subject to review by
                                Investment Canada:

                                (a)  all direct acquisitions of Canadian
                                     businesses with assets of C$5 million or
                                     more;

                                (b)  all indirect acquisitions of Canadian
                                     businesses with assets of C$50 million
                                     or more; and

                                (c)  indirect acquisitions of Canadian
                                     businesses with assets between C$5
                                     million and C$50 million that represent
                                     more than 50 percent of the value of the
                                     assets of all the entities the control
                                     of which is being acquired, directly or
                                     indirectly, in the transaction in
                                     question.

                                  Annex I - Canada




                                2.   A "non-Canadian" is an individual,
                                government or agency thereof or an entity
                                that is not "Canadian".  "Canadian" means a
                                Canadian citizen or permanent resident,
                                government in Canada or agency thereof or
                                Canadian-controlled entity as provided for in
                                the Investment Canada Act.

                                3.   In addition, specific acquisitions or
                                new businesses in designated types of
                                business activities relating to Canada's
                                cultural heritage or national identity, which
                                are normally notifiable, may be reviewed if
                                the Governor in Council authorizes a review
                                in the public interest.

                                4.   An investment subject to review under
                                the Investment Canada Act may not be
                                implemented unless the Minister responsible
                                for the Investment Canada Act advises the
                                applicant that the investment is likely to be
                                of net benefit to Canada.  Such a
                                determination is made in accordance with six
                                factors described in the Act, summarized as
                                follows:

                                (a)  the effect of the investment on the
                                     level and nature of economic activity in
                                     Canada, including the effect on
                                     employment, on the utilization of parts,
                                     components and services produced in
                                     Canada, and on exports from Canada;

                                (b)  the degree and significance of
                                     participation by Canadians in the
                                     investment;

                                (c)  the effect of the investment on
                                     productivity, industrial efficiency,
                                     technological development and product
                                     innovation in Canada;

                                (d)  the effect of the investment on
                                     competition within any industry or
                                     industries in Canada;

                                  Annex I - Canada

                                (e)  the compatibility of the investment with
                                     national industrial, economic and
                                     cultural policies, taking into
                                     consideration industrial, economic and
                                     cultural policy objectives enunciated by
                                     the government or legislature of any
                                     province likely to be significantly
                                     affected by the investment; and 

                                (f)  the contribution of the investment to
                                     Canada's ability to compete in world
                                     markets.

                                5.   In making a net benefit determination,
                                the Minister, through Investment Canada, may
                                review plans under which the applicant
                                demonstrates the net benefit to Canada of the
                                proposed acquisition.  An applicant may also
                                submit undertakings to the Minister in
                                connection with any proposed acquisition
                                which is the subject of review.  In the event
                                of noncompliance with an undertaking by an
                                applicant, the Minister may seek a court
                                order directing compliance or any other
                                remedy authorized under the Act.

                                6.   Non-Canadians who establish or acquire
                                Canadian businesses, other than those
                                described above, must notify Investment
                                Canada.

                                7.   Investment Canada will review an
                                "acquisition of control", as defined in the
                                Investment Canada Act, of a Canadian business
                                by an investor of Mexico or of the United
                                States if the value of the gross assets of
                                the Canadian business is not less than the
                                applicable threshold.

                                8.   The review threshold applicable to
                                investors of Mexico or of the United States,
                                calculated as set out in the Phase-Out
                                element, is higher than those described in
                                paragraph 1.  However, this higher review
                                threshold does not apply in the following

                                  Annex I - Canada

                                sectors: uranium production and ownership of
                                uranium producing properties; oil and gas;
                                financial services; transportation services;
                                and cultural businesses.

                                9.   Notwithstanding the definition of
                                "investor of a Party" in Article 1139, only
                                investors who are nationals, or entities
                                controlled by nationals as provided for in
                                the Investment Canada Act, of Mexico or of
                                the United States may benefit from the higher
                                review threshold.

                                10.  An indirect "acquisition of control" of
                                a Canadian business by an investor of Mexico
                                or of the United States is not reviewable.  

                                11.  Notwithstanding Article 1106(1), Canada
                                may impose requirements, or enforce any
                                commitment or undertaking, in connection with
                                the establishment, acquisition, expansion,
                                conduct or operation of an investment of an
                                investor of another Party or of a non-Party
                                for the transfer of technology, production
                                process or other proprietary knowledge to a
                                national or enterprise, affiliated to the
                                transferor, in Canada, in connection with the
                                review of an acquisition of an investment
                                under the Investment Canada Act.

                                12.  Except for requirements, commitments or
                                undertakings relating to technology transfer
                                as set out in paragraph 11, Article 1106(1)
                                shall apply to requirements, commitments or
                                undertakings imposed or enforced under the
                                Investment Canada Act.  Article 1106(1) shall
                                not be construed to apply to any requirement,
                                commitment or undertaking imposed or enforced
                                in connection with a review under the
                                Investment Canada Act, to locate production,
                                carry out research and development, employ or
                                train workers, or to construct or expand
                                particular facilities, in Canada.

            Phase-Out:          For investors of Mexico or of the United

                                  Annex I - Canada

                                States, the applicable threshold for the
                                review of a direct acquisition of control of
                                a Canadian business will be:

                                (a)  for the 12-month period beginning on the
                                     date of entry into force of this
                                     Agreement, the monetary amount as
                                     determined in accordance with Annex
                                     1607.3 of the Canada - United States
                                     Free Trade Agreement; and

                                (b)  beginning one year after the date of
                                     entry into force of this Agreement, the
                                     monetary amount for the preceding year
                                     multiplied by an annual adjustment
                                     representing the increase in nominal
                                     Gross Domestic Product, as set out
                                     below.

                                The calculation of the annual adjustment will
                                be determined in January of each year after
                                1994 using the most recently available data
                                published by Statistics Canada and using the
                                following formula:

                                             Annual Adjustment =

                                     Current nominal GDP at market prices
                                     ----------------------------------------
                                     ---------------
                                     Previous year nominal GDP at market
                                     prices
            
                                "Current nominal GDP at market prices" means
                                the arithmetic mean of the nominal Gross
                                Domestic Product at market prices for the
                                most recent four consecutive quarters
                                (seasonally adjusted at annual rates).

                                "Previous year nominal GDP at market prices"
                                means the arithmetic mean of the nominal
                                Gross Domestic Product at market prices for
                                the four consecutive quarters (seasonally

                                     Annex I - Canada

                                adjusted at annual rates) for the comparable
                                period in the year preceding the year used in
                                calculating the "current nominal GDP at
                                market prices".

                                The amounts determined in this manner will be
                                rounded to the nearest million dollars.

                                Annex I - Canada

            Sector:             All Sectors

            Sub-Sector:

            Industry
            Classification:

            Type of             National Treatment (Article 1102)
            Reservation:        Senior Management and Boards of Directors
                                (Article 1107)
            
            Level of            Federal
            Government:         Provincial
            
            Measures:           As set out in the Description element

            Description:        Investment

                                Canada or any province, when selling or
                                disposing of its equity interests in, or the
                                assets of, an existing state enterprise or an
                                existing governmental entity, may prohibit or
                                impose limitations on the ownership of such
                                interests or assets, and on the ability of
                                owners of such interests or assets to control
                                any resulting enterprise, by investors of
                                another Party or of a non-Party or their
                                investments.  With respect to such a sale or
                                other disposition, Canada or any province may
                                adopt or maintain any measure relating to the
                                nationality of senior management or members
                                of the board of directors.

                                For purposes of this reservation:

                                (a)  any measure maintained or adopted after
                                     the date of entry into force of this
                                     Agreement that, at the time of sale or
                                     other disposition, prohibits or imposes
                                     limitations on the ownership of equity
                                     interests or assets or imposes
                                     nationality requirements described in
                                     this reservation shall be deemed to be
                                     an existing measure; and

                                 Annex I - Canada

                                (b)  "state enterprise" means an enterprise
                                     owned or controlled through ownership
                                     interests by Canada or a province and
                                     includes an enterprise established after
                                     the date of entry into force of this
                                     Agreement solely for the purposes of
                                     selling or disposing of equity interests
                                     in, or the assets of, an existing state
                                     enterprise or governmental entity.
            
            Phase-Out:          None

                                     Annex I - Canada

            Sector:             All Sectors

            Sub-Sector:

            Industry
            Classification:

            Type of             National Treatment (Article 1102)
            Reservation:
            
            Level of            Federal
            Government:

            Measures:           Canada Business Corporations Act, R.S.C.
                                1985, c. C-44

                                Canada Corporations Act, R.S.C. 1970, c. C-32

                                Canada Business Corporations Act Regulations,
                                SOR/79-316

            Description:        Investment

                                "Constraints" may be placed on the issue,
                                transfer and ownership of shares in federally
                                incorporated corporations.  The object is to
                                permit corporations to meet Canadian
                                ownership requirements, under certain laws
                                set out in the Canada Business Corporations
                                Act Regulations, in sectors where ownership
                                is required as a condition to operate or to
                                receive licenses, permits, grants, payments
                                or other benefits.  In order to maintain
                                certain "Canadian" ownership levels, a
                                corporation is permitted to sell
                                shareholders' shares without the consent of
                                those shareholders, and to purchase its own
                                shares on the open market.  "Canadian" is
                                defined in the Canada Business Corporations
                                Act Regulations.
            
            Phase-Out:          None

                               Annex I - Canada


            Sector:             All Sectors

            Sub-Sector:

            Industry
            Classification:

            Type of             Senior Management and Boards of Directors
            Reservation:        (Article 1107)
            
            Level of            Federal
            Government:

            Measures:           Canada Business Corporations Act, R.S.C.
                                1985, c. C-44

                                Canada Business Corporations Act Regulations,
                                SOR/79-316

                                Canada Corporations Act, R.S.C. 1970, c. C-32

                                Special Acts of Parliament incorporating
                                specific companies

            Description:        Investment

                                The Canada Business Corporations Act requires
                                that a simple majority of the board of
                                directors, or of a committee thereof, of a
                                federally-incorporated corporation be
                                resident Canadians.  For purposes of the Act,
                                "resident Canadian" means an individual who
                                is a Canadian citizen ordinarily resident in
                                Canada, a citizen who is a member of a class
                                set out in the Canada Business Corporations
                                Act Regulations, or a permanent resident as
                                defined in the Immigration Act other than one
                                who has been ordinarily resident in Canada
                                for more than one year after he became
                                eligible to apply for Canadian citizenship.

                                In the case of a holding corporation, not
                                more than one-third of the directors need be
                                resident Canadians if the earnings in Canada
                                of the holding corporation and its

                                Annex I - Canada

                                subsidiaries are less than five percent of
                                the gross earnings of the holding corporation
                                and its subsidiaries.

                                Under the Canada Corporations Act, a simple
                                majority of the elected directors of a
                                Special Act corporation must be resident in
                                Canada and citizens of a Commonwealth
                                country.  This requirement applies to every
                                joint stock company incorporated subsequent
                                to June 22, 1869 by any Special Act of
                                Parliament.

            Phase-Out:          None

                             Annex I - Canada

            Sector:             All Sectors

            Sub-Sector:

            Industry
            Classification:

            Type of             National Treatment (Article 1102)
            Reservation:

            Level of            Federal
            Government:
            Measures:           Citizenship Act, R.S.C. 1985, c. C-29 

                                Foreign Ownership of Land Regulations,
                                SOR/79-416

            Description:        Investment

                                The Foreign Ownership of Land Regulations are
                                made pursuant to the Citizenship Act and the
                                Alberta Agricultural and Recreational Land
                                Ownership Act.  In Alberta, an ineligible
                                person or foreign-owned or controlled
                                corporation may only hold an interest in
                                controlled land consisting of not more than
                                two parcels containing, in the aggregate, not
                                more than 20 acres.  An "ineligible person"
                                is:

                                (a)  an individual who is not a Canadian
                                     citizen or permanent resident;

                                (b)  a foreign government or agency thereof;
                                     or

                                (c)  a corporation incorporated elsewhere
                                     than in Canada.

                                "Controlled land" means land in Alberta but
                                does not include:

                                (a)  land other than land owned by the Crown;

                            Annex I - Canada

                                (b)  land within a city, town, new town,
                                     village or summer village; and

                                (c)  mines or minerals.  

            Phase-Out:          None

                            Annex I - Canada


            Sector:             All Sectors

            Sub-Sector:

            Industry
            Classification:

            Type of             National Treatment (Article 1102)
            Reservation:
            
            Level of            Federal
            Government:
            Measures:           Air Canada Public Participation Act, R.S.C.
                                1985, c. 35 (4th Supp.)

                                Canada Development Corporation Reorganization
                                Act, S.C. 1985, c. 49

                                Petro-Canada Public Participation Act, S.C.
                                1991, c. 10

                                Canadian Arsenals Limited Divestiture
                                Authorization Act, S.C. 1986, c. 20

                                Cooperative Energy Act, S.C. 1980-81-82-83,
                                c. 108

                                Eldorado Nuclear Limited Reorganization and
                                Divestiture Act, S.C. 1988, c. 41

                                Nordion and Theratronics Divestiture
                                Authorization Act, S.C. 1990, c. 4

            Description:        Investment

                                A "non-resident" may not own more than a
                                specified percentage of the voting shares of
                                the corporation to which each Act applies. 
                                For each company the restriction is as
                                follows:

                                Air Canada: 25 percent
                                Canada Development Corporation: 25 percent
                                Petro-Canada Inc: 25 percent
                                Canadian Arsenals Limited: 25 percent

                                Nordion Limited: 25 percent                 
                                Eldorado Nuclear Limited: 5 percent         
                      
                           Annex I - Canada

                                Cooperative Energy Corporation: 49 percent

                                "Non-resident" generally means:             
                  Theratronics Limited: 49 percent

                                (a)  an individual, other than a Canadian

            Sub-Sector:

            Sector:             All Sectors                                 
                             
                                citizen, who is not ordinarily resident

                                     (i)  established by a non-resident as  
                             (d)  a corporation that is controlled          
                     (b)  a corporation incorporated, formed or
                                     otherwise organized outside Canada;


                                     political subdivision thereof, or a
                                     person empowered to perform a function

                                (e)  a trust                                
                    (c)  the government of a foreign state or any

                                     through (c);                           
         as defined in any of paragraphs (a)                                
    in Canada;

                                     or duty on behalf of such a government;

                                     directly or indirectly by non-residents

                                          the administration of a pension

                                         in any of paragraphs (a) through   
                                      fund for the benefit of individuals
                                          a majority of whom are residents,

                                          (d) have more than 50 percent of
                                          the beneficial interest; or       
                             (ii) in which non-residents as defined         
                                or

                                     directly or indirectly by a trust      
                         (f)  a corporation that is controlled

                                     referred to in paragraph (e).          
                               defined in any of paragraphs (b)

            Phase-Out:          None      through (d), other than a trust for 
                                                         Annex I - Canada



            Industry
            Classification:

            Type of             Local Presence (Article 1205)
            Reservation:

            Level of            Federal
            Government:

            Measures:           Export and Import Permits Act, R.S.C. 1985,
                                c. E-19
            Description:        Cross-Border Services

                                Only individuals ordinarily resident in
                                Canada, enterprises having their head offices
                                in Canada or branch offices in Canada of
                                foreign enterprises may apply for and be
                                issued import or export permits or transit
                                authorization certificates for goods and
                                related services subject to controls under
                                the Export and Import Permits Act.

            Phase-Out:          None

                                Annex I - Canada

            Sector:             Automotive

            Sub-Sector:

            Industry Classification:
            
            Type of             Performance Requirements (Article 1106)
            Reservation:
                                Federal
            Level of
            Government:
            
            Measures:           Canada - United States Free Trade Agreement
                                Implementation Act, S.C. 1988, c. 65

            Description:        Investment

                                Canada may grant waivers of customs duties
                                conditioned, explicitly or implicitly, on the
                                fulfillment of performance requirements:

                                (a)  to those manufacturers of automotive
                                     goods set out in Part One of Annex
                                     1002.1 of the Canada - United States
                                     Free Trade Agreement, in accordance with
                                     the headnote to that Part; and

                                (b)  for the applicable periods specified in
                                     Article 1002(2) and (3) of the Canada -
                                     United States Free Trade Agreement to
                                     those manufacturers of automotive goods
                                     set out in Parts Two and Three,
                                     respectively, of Annex 1002.1 of that
                                     Agreement.

            Phase-Out:          (a)  None

                                (b)  For Part Two, until January 1, 1998; and
                                     for Part Three, until January 1, 1996 or
                                     such earlier date specified in existing
                                     agreements between Canada and the
                                     recipient of the waiver.

                            Annex I - Canada


            Sector:             Business Service Industries 

            Sub-Sector:         Customs Brokerages and Brokers

            Industry            SIC 7794  Customs Brokers
            Classification:

            Type of             National Treatment (Article 1202)
            Reservation:        Local Presence (Article 1205)
                                Senior Management and Boards of Directors
                                (Article 1107)

            Level of            Federal
            Government:

            Measures:           Customs Act, R.S.C. 1985, c. 1 (2nd Supp.)

                                Customs Brokers Licensing Regulations,
                                SOR/86-1067

            Description:        Cross-Border Services and Investment

                                To be a licensed customs broker or brokerage
                                in Canada:

                                (a)  an individual must be a Canadian citizen
                                     or permanent resident;

                                (b)  a corporation must be incorporated in
                                     Canada with a majority of its directors
                                     being Canadian citizens or permanent
                                     residents; and

                                (c)  a partnership must be composed of
                                     persons who are Canadian citizens or
                                     permanent residents, or corporations
                                     incorporated in Canada with a majority
                                     of their directors being Canadian
                                     citizens or permanent residents.

                                An individual who is not a licensed customs
                                broker but who transacts business as a
                                customs broker on behalf of a licensed
                                customs broker or brokerage must be a
                                Canadian citizen or permanent resident. 

            Phase-Out:          None.  Subject to discussion by the Parties

                                Annex I - Canada

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

                            Annex I - Canada


            Sector:             Business Service Industries

            Sub-Sector:         Duty Free Shops

            Industry            SIC 6599  Other Retail Stores, Not Elsewhere
            Classification:               Classified (limited to duty free
                                          shops)

            Type of             National Treatment (Articles 1102, 1202)
            Reservation:        Local Presence (Article 1205)

            Level of            Federal
            Government:

            Measures:           Customs Act, R.S.C. 1985, c. 1 (2nd Supp.)

                                Duty Free Shop Regulations, SOR/86-1072

            Description:        Cross-Border Services and Investment

                                1.   To be a licensed duty free shop operator
                                     at a land border crossing in Canada, an
                                     individual must:

                                     (a)  be a Canadian citizen or permanent
                                          resident;

                                     (b)  be of good character; 

                                     (c)  be principally resident in Canada;
                                          and

                                     (d)  have resided in Canada for at least
                                          183 days of the year preceding the
                                          year of application for the
                                          license.

                                2.   To be a licensed duty free shop operator
                                     at a land border crossing in Canada, a
                                     corporation must:

                                     (a)  be incorporated in Canada; and

                                     (b)  have all of its shares beneficially
                                          owned by Canadian citizens or
                                          permanent residents who meet the
                                          requirements of paragraph 1.

            Phase-Out:          None

                              Annex I - Canada

            Sector:             Business Service Industries

            Sub-Sector:         Examination Services relating to the Export
                                and Import of Cultural Property

            Industry            SIC 999   Other Services, Not Elsewhere
            Classification:               Classified (limited to cultural
                                          property examination services)

            Type of             Local Presence (Article 1205)
            Reservation:

            Level of            Federal
            Government:

            Measures:           Cultural Property Export and Import Act,
                                R.S.C. 1985, c. C-51

            Description:        Cross-Border Services

                                Only a "resident of Canada" or an
                                "institution" in Canada may be designated as
                                an "expert examiner" of cultural property for
                                purposes of the Cultural Property Export and
                                Import Act.  A "resident" of Canada is an
                                individual who is ordinarily resident in
                                Canada, or a corporation that has its head
                                office in Canada or maintains one or more
                                establishments in Canada to which employees
                                employed in connection with the business of
                                the corporation ordinarily report for work. 
                                An "institution" is an institution that is
                                publicly owned and operated solely for the
                                benefit of the public, that is established
                                for educational or cultural purposes and that
                                conserves objects and exhibits them.

            Phase-Out:          None

                              Annex I - Canada

            Sector:             Business Service Industries

            Sub-Sector:         Patent Agents and Agencies

            Industry            SIC 999   Other Services, Not Elsewhere
            Classification:               Classified (limited to patent
                                          agency)

            Type of             National Treatment (Article 1202)
            Reservation:        Local Presence (Article 1205)

            Level of            Federal
            Government:

            Measures:           Patent Act, R.S.C. 1985, c. P-4

                                Patent Rules, C.R.C. 1978, c. 1250

                                Patent Cooperation Treaty Regulations,
                                SOR/89-453

            Description:        Cross-Border Services

                                To represent persons in the presentation and
                                prosecution of applications for patents or in
                                other business before the Patent Office, a
                                patent agent must be resident in Canada and
                                registered by the Patent Office.

                                A registered patent agent who is not resident
                                in Canada must appoint a registered patent
                                agent who is resident in Canada as an
                                associate to prosecute an application for a
                                patent.

                                An enterprise may be added to the patent
                                register provided that it has at least one
                                member who is also on the register.

            Phase-Out:          Citizenship and permanent residency
                                requirements are subject to removal within
                                two years of the date of entry into force of
                                this Agreement in accordance with Article
                                1210(3).


                               Annex I - Canada

            Sector:             Business Service Industries

            Sub-Sector:         Trade-Mark Agents

            Industry            SIC 999   Other Services, Not Elsewhere
            Classification:               Classified (limited to trade-mark
                                          agency)

            Type of             National Treatment (Article 1202)
            Reservation:        Most-Favored-Nation Treatment (Article 1203)
                                Local Presence (Article 1205)

            Level of            Federal
            Government:

            Measures:           Trade-Marks Act, R.S.C. 1985, c. T-13

                                Trade-Marks Regulations, C.R.C. 1978, c. 1559

            Description:        Cross-Border Services

                                To represent persons in the presentation and
                                prosecution of applications for trade-marks
                                or in other business before the Trade-Mark
                                Office, a trade-mark agent must be resident
                                in Canada and registered by the Trade-Mark
                                Office.

                                A registered trade-mark agent who is not
                                resident in Canada must appoint a registered
                                trade-mark agent who is resident in Canada as
                                an associate to prosecute an application for
                                a trade-mark.

                                Trade-mark agents who are resident, and are
                                registered (in good standing), in a
                                Commonwealth country or the United States may
                                be added to the register of trade-mark
                                agents.

            Phase-Out:          Citizenship and permanent residency
                                requirements are subject to removal within
                                two years of the date of entry into force of
                                this Agreement in accordance with Article
                                1210(3).

                              Annex I - Canada

            Sector:             Energy

            Sub-Sector:         Oil and Gas

            Industry            SIC 071   Crude Petroleum and Natural Gas
            Classification:     Industries

            Type of             National Treatment (Article 1102)
            Reservation:

            Level of            Federal
            Government:
            Measures:           Canada Petroleum Resources Act, R.S.C. 1985,
                                c. 36 (2nd Supp.)

                                Territorial Lands Act, R.S.C. 1985, c. T-7 

                                Public Lands Grants Act, R.S.C. 1985, c. P-30


                                Canada - Newfoundland Atlantic Accord
                                Implementation Act, S.C. 1987, c. 3 

                                Canada - Nova Scotia Offshore Petroleum
                                Resources Accord Implementation Act, S.C.
                                1988, c. 28 

                                Canada Oil and Gas Land Regulations, C.R.C.
                                1978, c. 1518

            Description:        Investment

                                This reservation applies to production
                                licenses issued with respect to "frontier
                                lands" and "offshore areas" (areas not under
                                provincial jurisdiction) as defined in the
                                applicable measures.

                                Persons who hold oil and gas production
                                licenses or shares therein for discoveries
                                made after March 5, 1982 must be Canadian
                                citizens ordinarily resident in Canada,
                                permanent residents or corporations
                                incorporated in Canada.  No production
                                license may be issued for discoveries made
                                after March 5, 1982 unless the Minister of
                                Energy, Mines and Resources is satisfied that
                                the Canadian ownership rate of the

                           Annex I - Canada

                                interest-owner in relation to the production
                                license on the date of issuance would not be
                                less than 50 percent.  "Interest-owner" is
                                defined in the Canada Petroleum Resources Act
                                to mean "the interest holder who owns an
                                interest or the group of interest holders who
                                hold all the shares of an interest".

                                The Canadian ownership requirements for oil
                                and gas production licenses for discoveries
                                made prior to March 5, 1982, are set out in
                                the Canada Oil and Gas Land Regulations.

            Phase-Out:          None

                                 Annex I - Canada

            Sector:             Energy

            Sub-Sector:         Oil and Gas

            Industry            SIC 071  Crude Petroleum and Natural Gas
            Classification:     Industries

            Type of             Performance Requirements (Article 1106)
            Reservation:        Local Presence (Article 1205)

            Level of            Federal
            Government:

            Measures:           Canada Oil and Gas Production and
                                Conservation Act, R.S.C. 1985, c. O-7, as
                                amended by Canada Oil and Gas Operations Act,
                                S.C. 1992, c. 35

                                Canada - Nova Scotia Offshore Petroleum
                                Resources Accord Implementation Act, S.C.
                                1988, c. 28

                                Canada - Newfoundland Atlantic Accord
                                Implementation Act, S.C. 1987, c. 3

                                Measures implementing Yukon Oil and Gas
                                Accord

                                Measures implementing Northwest Territories
                                Oil and Gas Accord

                                As qualified by paragraphs 5 and 6 of the
                                Description element

            Description:        Cross-Border Services and Investment

                                1.   Under the Canada Oil and Gas Operations
                                Act, the approval of the Minister of Energy,
                                Mines and Resources of a "benefits plan" is
                                required to receive authorization to proceed
                                with any oil and gas development project.

                                2.   A "benefits plan" is a plan for the
                                employment of Canadians and for providing
                                Canadian manufacturers, consultants,
                                contractors and service companies with a full
                                and fair opportunity to participate on a
                                competitive basis in the supply of goods and

                                 Annex I - Canada

                                services used in any proposed work or
                                activity referred to in the benefits plan. 
                                The Act permits the Minister to impose an
                                additional requirement on the applicant, as
                                part of the benefits plan, to ensure that
                                disadvantaged individuals or groups have
                                access to training and employment
                                opportunities or can participate in the
                                supply of goods and services used in any
                                proposed work referred to in the benefits
                                plan.

                                3.   The Canada - Nova Scotia Offshore
                                Petroleum Resources Accord Implementation Act
                                and the Canada - Newfoundland Atlantic Accord
                                Implementation Act have the same requirement
                                for a benefits plan but also require that the
                                benefits plan ensure that:

                                (a)  prior to carrying out any work or
                                     activity in the offshore area, the
                                     corporation or other body submitting the
                                     plan establish in the applicable
                                     province an office where appropriate
                                     levels of decision-making are to take
                                     place;

                                (b)  expenditures be made for research and
                                     development to be carried out in the
                                     province, and for education and training
                                     to be provided in the province; and

                                (c)  first consideration be given to goods
                                     produced or services provided from
                                     within the province, where those goods
                                     or services are competitive in terms of
                                     fair market price, quality and delivery.

                                4.   The Boards administering the benefits
                                plan under these Acts may also require that
                                the plan include provisions to ensure that
                                disadvantaged individuals or groups, or
                                corporations owned or cooperatives operated
                                by them, participate in the supply of goods
                                and services used in any proposed work or
                                activity referred to in the plan.

                            Annex I - Canada

                                5.   In addition, Canada may impose any
                                requirement or enforce any commitment or
                                undertaking for the transfer of technology,
a
                                production process or other proprietary
                                knowledge to a person of Canada in connection
                                with the approval of development projects
                                under the applicable Acts.

                                6.   Provisions similar to those set out
                                above will be included in laws or regulations
                                to implement the Yukon Oil and Gas Accord and
                                Northwest Territories Oil and Gas Accord
                                which for purposes of this reservation shall
                                be deemed, once concluded, to be existing
                                measures.

            Phase-Out:          None

                             Annex I - Canada

            Sector:             Energy

            Sub-Sector:         Oil and Gas

            Industry            SIC 071   Crude Petroleum and Natural Gas
            Classification:     Industries

            Type of             Performance Requirements (Article 1106)
            Reservation:

            Level of            Federal
            Government:

            Measures:           Canada - Newfoundland Atlantic Accord
                                Implementation Act, S.C. 1987, c. 3

                                Hibernia Development Project Act, S.C. 1990,
                                c. 41

            Description:        Investment

                                Pursuant to the Hibernia Development Project
                                Act, Canada and the "Hibernia Project Owners"
                                may enter into agreements whereby the Project
                                Owners undertake to perform certain work in
                                Canada and Newfoundland and to use their
                                "best efforts" to achieve specific Canadian
                                and Newfoundland "target levels" in relation
                                to the provisions of any "benefit plan"
                                required under the Canada-Newfoundland
                                Atlantic Accord Implementation Act. 
                                "Benefits plans" are further described in
                                Schedule of Canada, Annex I, page I-C-25.

                                In addition, Canada may impose in connection
                                with the Hibernia project any requirement or
                                enforce any commitment or undertaking for the
                                transfer of technology, a production process
                                or other proprietary knowledge to a national
                                or enterprise in Canada.

            Phase-Out:          None

                          Annex I - Canada


            Sector:             Energy

            Sub-Sector:         Uranium

            Industry            SIC  0616   Uranium Mines
            Classification:

            Type of             National Treatment (Article 1102)
            Reservation:        Most-Favored-Nation Treatment (Article 1103)
            
            Level of            Federal
            Government:
            Measures:           Investment Canada Act, R.S.C. 1985, c. 28
                                (1st Supp.)

                                Investment Canada Regulations, SOR/85-611

                                Policy on Non-Resident Ownership in the
                                Uranium Mining Sector, 1987

            Description:        Investment

                                Ownership by "non-Canadians", as defined in
                                the Investment Canada Act, of a uranium
                                mining property is limited to 49 percent at
                                the stage of first production.   Exceptions
                                to this limit may be permitted if it can be
                                established that the property is in fact
                                "Canadian-controlled" as defined in the
                                Investment Canada Act.

                                Exemptions from the policy are permitted,
                                subject to approval of the Governor in
                                Council, only in cases where Canadian
                                participants in the ownership of the property
                                are not available.  Investments in properties
                                by non-Canadians, made prior to December 23,
                                1987 and that are beyond the permitted
                                ownership level, may remain in place.  No
                                increase in non-Canadian ownership is
                                permitted.

            Phase-Out:          None

                              Annex I - Canada

            Sector:             Fisheries

            Sub-Sector:         Fish Harvesting and Processing

            Industry            SIC 031   Fishing Industry
            Classification:

            Type of             National Treatment (Article 1102)
            Reservation:        Most-Favored-Nation Treatment (Article 1103)

            Level of            Federal
            Government:
            Measures:           Coastal Fisheries Protection Act, R.S.C.
                                1985, c. C-33 

                                Fisheries Act, R.S.C. 1985, c. F-14

                                Coastal Fisheries Protection Regulations,
                                C.R.C. 1978, c. 413

                                Policy on Foreign Investment in the Canadian
                                Fisheries Sector, 1985

                                Commercial Fisheries Licensing Policy

            Description:        Investment

                                Under the Coastal Fisheries Protection Act,
                                foreign fishing vessels are prohibited from
                                entering Canada's Exclusive Economic Zone
                                except under authority of a license or under
                                treaty.  "Foreign" vessels are those which
                                are not "Canadian" as defined in the Coastal
                                Fisheries Protection Act.  Under the
                                Fisheries Act, the Minister of Fisheries and
                                Oceans has discretionary authority with
                                respect to the issuance of licenses.

                                Fish processing enterprises that have a
                                foreign ownership level of more than 49
                                percent are prohibited from holding Canadian
                                commercial fishing licenses.

            Phase-Out:          None

                               Annex I - Canada

            Sector:             Fisheries

            Sub-Sector:         Fishing-Related Services

            Industry            SIC 032   Services Incidental to Fishing
            Classification:

            Type of             National Treatment (Article 1202)
            Reservation:        Most-Favored-Nation Treatment (Article 1203)

            Level of            Federal
            Government:

            Measures:           Coastal Fisheries Protection Act, R.S.C.
                                1985, c. C-33
            Description:        Cross-Border Services

                                Under the Coastal Fisheries Protection Act,
                                the Department of Fisheries and Oceans is
                                responsible for controlling the activities of
                                foreign fishing vessels in Canada's Exclusive
                                Economic Zone, including access to Canadian
                                ports (port privileges).  

                                In general, the Department grants such port
                                privileges, including the purchase of fuel
                                and supplies, ship repair, crew exchanges and
                                transshipment of fish catches, only to
                                fishing vessels from a country with which it
                                has favorable fishery relations, based
                                primarily on adherence by that country to
                                Canadian and international conservation
                                practices and policies.  Exceptions to this
                                general rule are permitted in cases of
                                emergency ("force majeure") and where the
                                specific provisions of bilateral fisheries
                                treaties apply.

            Phase-Out:          None

                               Annex I - Canada

            Sector:             Transportation

            Sub-Sector:         Air Transportation

            Industry            SIC 451   Air Transport Industries
            Classification:
            Type of             National Treatment (Article 1102)
            Reservation:        Most-Favored-Nation Treatment (Article 1103)
                                Senior Management and Boards of Directors
                                (Article 1107)
            
            Level of            Federal
            Government:
            Measures:           National Transportation Act, 1987, R.S.C.
                                1985, c. 28 (3rd Supp.)

                                Aeronautics Act, R.S.C. 1985, c. A-2

                                Air Regulations, C.R.C. 1978, c. 2

                                Aircraft Marking and Registration
                                Regulations, SOR/90-591

            Description:        Investment

                                Only "Canadians" may provide the following
                                commercial air transportation services: 

                                (a)  "domestic services" (air services
                                     between points, or from and to the same
                                     point, in the territory of Canada, or
                                     between a point in the territory of
                                     Canada and a point not in the territory
                                     of another country); 

                                (b)  "scheduled international services"
                                     (scheduled air services between a point
                                     in the territory of Canada and a point
                                     in the territory of another country)
                                     where those services have been reserved
                                     to Canadian carriers under existing or
                                     future bilateral agreements; and 

                                (c)  "non-scheduled international services"
                                     (non-scheduled air services between a
                                     point in the territory of Canada and a
                                     point in the territory of another
                                     country) where those services have been

                                    Annex I - Canada

                                     reserved to Canadian carriers under the
                                     National Transportation Act, 1987.

                                "Canadian" is defined in the National
                                Transportation Act, 1987 to mean a Canadian
                                citizen or permanent resident, a government
                                in Canada or agent thereof or any other
                                person or entity that is controlled in fact
                                by, and of which at least 75 percent of the
                                voting interests are owned and controlled by,
                                persons otherwise meeting these requirements.

                                Regulations made under the Aeronautics Act
                                also require that a Canadian air carrier
                                operate Canadian-registered aircraft.  To be
                                qualified to register aircraft in Canada, a
                                carrier must be a Canadian citizen or
                                permanent resident, or a corporation
                                incorporated and having its principal place
                                of business in Canada, its chief executive
                                officer and not fewer than two-thirds of its
                                directors as Canadian citizens or permanent
                                residents and not less than 75 percent of its
                                voting interest owned and controlled by
                                persons otherwise meeting these requirements.

                                In addition, all commercial air services in
                                Canada require a Canadian operating
                                certificate to ensure their safety and
                                security.  An operating certificate for the
                                provision of services restricted to Canadian
                                carriers is issued only to qualified persons.


                                A corporation incorporated in Canada but that
                                does not meet the Canadian ownership and
                                control requirements may only register a
                                private aircraft when the corporation is the
                                sole owner of the aircraft.  The regulations
                                also have the effect of limiting
                                "non-Canadian" corporations operating
                                foreign-registered private aircraft within
                                Canada to the carriage of their own
                                employees. 

                                For specialty air services, see Schedule of
                                Canada, Annex II, page II-C-10.
                                 
            Phase-Out:          None

                                 Annex I - Canada
                            
            Sector:             Transportation

            Sub-Sector:         Air Transportation

            Industry            SIC 4513   Non-Scheduled Air Transport,
            Classification:     Specialty, Industry

            Type of             National Treatment (Articles 1102, 1202)
            Reservation:        Local Presence (Article 1205)
                                Senior Management and Boards of Directors
                                (Article 1107)

            Level of            Federal
            Government:

            Measures:           Aeronautics Act, R.S.C. 1985, c. A-2
                                  
                                Air Regulations, C.R.C. 1978, c. 2 

                                Aircraft Marking and Registration
                                Regulations, SOR/90-591

                                Foreign Air Carrier Certification Manual, TP
                                11524, and the Personnel Licensing Handbook,
                                TP 193 (Department of Transport)

                                As qualified by paragraph 2 of the
                                Description element

            Description:        Cross-Border Services

                                1.   An operating certificate issued by the
                                Department of Transport is required to
                                provide specialty air services in the
                                territory of Canada.  The Department of
                                Transport will issue an operating certificate
                                to a person applying for authority to provide
                                specialty air services, subject to compliance
                                by that person with Canadian safety
                                requirements.  An operating certificate for
                                the provision of aerial construction, heli-
                                logging, aerial inspection, aerial
                                surveillance, flight training, aerial
                                sightseeing, and aerial spraying services is
                                not issued to a person that is not Canadian

                               Annex I - Canada

                                as provided for in the applicable
                                regulations.  For investment, see Schedule of
                                Canada, Annex II, page II-C-10.

                                2.   A person of Mexico or of the United
                                States may obtain an operating certificate,
                                subject to compliance by that person with
                                Canadian safety requirements, for the
                                provision of aerial mapping, aerial
                                surveying, aerial photography, forest fire
                                management, fire-fighting, aerial
                                advertising, glider towing and parachute
                                jumping services.

            Phase-Out:          Cross-Border Services

                                A person of Mexico or of the United States
                                will be permitted to obtain an operating
                                certificate, subject to compliance by that
                                person with Canadian safety requirements, for
                                the provision of the following specialty air
                                services: 

                                (a)  two years after the date of entry into
                                     force of this Agreement, aerial
                                     construction and heli-logging services;

                                (b)  three years after the date of entry into
                                     force of this Agreement, aerial
                                     inspection, aerial surveillance, flight
                                     training, and aerial sightseeing
                                     services; and

                                (c)  six years after the date of entry into
                                     force of this Agreement, aerial spraying
                                     services.

                                 Annex I - Canada

            Sector:             Transportation

            Sub-Sector:         Air Transportation

            Industry            SIC 4523  Aircraft Servicing Industry
            Classification:     SIC 3211  Aircraft and Aircraft Parts
                                          Industry

            Type of             Most-Favored-Nation Treatment (Article 1203) 
            Reservation:        Local Presence (1205)

            Level of            Federal
            Government:

            Measures:           Aeronautics Act, R.S.C. 1985, c. A-2 

                                Airworthiness Manual, chapters 573 and 575,
                                made under the authority of Air Regulations,
                                C.R.C. 1978, c. 2 

                                Agreement Concerning Airworthiness
                                Certification, Exchange of Letters between
                                Canada and the United States, dated August
                                31, 1984, CTS 1984/26

            Description:        Cross-Border Services

                                Aircraft repair, overhaul or maintenance
                                activities required to maintain the
                                airworthiness of Canadian-registered aircraft
                                must be performed by Canadian-certified
                                persons (approved maintenance organizations
                                and aircraft maintenance engineers). 
                                Certifications are not provided for persons
                                located outside Canada, except sub-
                                organizations of approved maintenance
                                organizations that are themselves located in
                                Canada.  

                                Pursuant to an airworthiness agreement
                                between Canada and the United States, Canada
                                recognizes the certifications and oversight
                                provided by the United States for all repair,
                                overhaul and maintenance facilities and
                                individuals performing the work located in
                                the United States.

            Phase-Out:          None     I-C-38

                             Annex I - Canada

            Sector:             Transportation

            Sub-Sector:         Land Transportation

            Industry            SIC 456   Truck Transport Industries
            Classification:     SIC 4572  Interurban and Rural Transit
                                          Systems Industry
                                SIC 4573  School Bus Operations Industry
                                SIC 4574  Charter and Sightseeing Bus
                                          Services Industry

            Type of             National Treatment (Article 1202)
            Reservation:        Local Presence (Article 1205)

            Measures:           Motor Vehicle Transport Act, 1987, R.S.C.
                                1985, c. 29 (3rd Supp.), Parts I and II
                                 
                                National Transportation Act, 1987, R.S.C.
                                1985, c. 28 (3rd Supp.), Part IV
                                 
                                Customs Tariff, R.S.C. 1985, c. 41 (3rd
                                Supp.) 

            Description:        Cross-Border Services

                                Only persons of Canada, using Canadian-
                                registered and either Canadian-built or duty-
                                paid trucks or buses, may provide truck or
                                bus services between points in the territory
                                of Canada.

            Phase-Out:          None

                               Annex I - Canada

            Sector:             Transportation

            Sub-Sector:         Water Transportation

            Industry            SIC 4541  Freight and Passenger Water
            Classification:               Transport Industry
                                SIC 4542  Ferry Industry
                                SIC 4543  Marine Towing Industry
                                SIC 4549  Other Water Transport Industries
                                SIC 4553  Marine Salvage Industry
                                SIC 4559  Other Service Industries Incidental
                                          to Water Transport

            Type of             National Treatment (Article 1202) 
            Reservation:        Most-Favored-Nation Treatment (Article 1203)
                                Local Presence (Article 1205)

            Level of            Federal
            Government:

            Measures:           Canada Shipping Act, R.S.C. 1985, c. S-9,
                                Part II

            Description:        Cross-Border Services

                                To register a vessel in Canada for purposes
                                of providing international maritime
                                transportation services, the owner of that
                                vessel must be:

                                (a)  a Canadian citizen or a citizen of a
                                     Commonwealth country; or

                                (b)  a corporation incorporated under the
                                     laws of, and having its principal place
                                     of business in, Canada or a Commonwealth
                                     country.

                                For domestic maritime transportation services
                                (cabotage), see Schedule of Canada, Annex II,
                                page II-C-11.

            Phase-Out:          None

                           Annex I - Canada

            Sector:             Transportation

            Sub-Sector:         Water Transportation

            Industry            SIC 4541  Freight and Passenger Water
            Classification:               Transport Industry
                                SIC 4542  Ferry Industry
                                SIC 4543  Marine Towing Industry
                                SIC 4549  Other Water Transport Industries
                                SIC 4553  Marine Salvage Industry
                                SIC 4554  Piloting Service, Water Transport
                                          Industry
                                SIC 4559  Other Service Industries Incidental
                                          to Water Transport

            Type of             National Treatment (Article 1202)
            Reservation:        Local Presence (Article 1205)

            Level of            Federal
            Government:

            Measures:           Canada Shipping Act, R.S.C. 1985, c. S-9,
                                Part II

            Description:        Cross-Border Services

                                Masters, mates, and engineers must be
                                certified by the Department of Transport as
                                ship's officers while engaged on a Canadian-
                                registered vessel.  Only Canadian citizens or
                                permanent residents may be certified as
                                ship's officers.

            Phase-Out:          None

                           Annex I - Canada

            Sector:             Transportation

            Sub-Sector:         Water Transportation

            Industry            SIC 4554   Piloting Service, Water Transport
            Classification:     Industry

            Type of             National Treatment (Article 1202)
            Reservation:        Local Presence (Article 1205)

            Level of            Federal
            Government:

            Measures:           Pilotage Act, R.S.C. 1985, c. P-14

                                General Pilotage Regulations, C.R.C. 1978, c.
                                1263

                                Atlantic Pilotage Authority Regulations,
                                C.R.C. 1978, c. 1264

                                Laurentian Pilotage Authority Regulations,
                                C.R.C. 1978, c. 1268

                                Great Lakes Pilotage Regulations, C.R.C.
                                1978, c. 1266

                                Pacific Pilotage Regulations, C.R.C. 1978, c.
                                1270
            
            Description:        Cross-Border Services

                                Subject to Schedule of Canada, Annex II, page
                                II-C-14, a license issued by the Department
                                of Transport is required to provide pilotage
                                services in the territory of Canada.  Only
                                Canadian citizens or permanent residents may
                                obtain such a license.  A permanent resident
                                of Canada who has been issued a pilot's
                                license must become a Canadian citizen within
                                five years of receipt of the license in order
                                to retain it.

            Phase-Out:          None

                            Annex I - Canada

            Sector:             Transportation

            Sub-Sector:         Water Transportation

            Industry            SIC 454   Water Transport Industries
            Classification:

            Type of             Local Presence (Article 1205)
            Reservation:

            Level of            Federal
            Government:

            Measures:           Shipping Conferences Exemption Act, 1987,
                                R.S.C. 1985, c. 17 (3rd Supp.)

            Description:        Cross-Border Services

                                Members of a shipping conference must
                                maintain jointly an office or agency in the
                                region of Canada where they operate.  A
                                shipping conference is an association of
                                ocean carriers that has the purpose or effect
                                of regulating rates and conditions for the
                                transportation by those carriers of goods by
                                water. 

            Phase-Out:          None

                            Annex I - Canada

            Sector:             Transportation

            Sub-Sector:         Water Transportation

            Industry            SIC 4541  Freight and Passenger Water
            Classification:               Transport Industry
                                SIC 4542  Ferry Industry
                                SIC 4543  Marine Towing Industry

            Type of             Most-Favored-Nation Treatment (Article 1203)
            Reservation:

            Level of            Federal
            Government:

            Measures:           Coasting Trade Act, S.C. 1992, c. 31

            Description:        Cross-Border Services

                                The prohibitions under the Coasting Trade
                                Act, set out in Schedule of Canada, Annex II,
                                page II-C-11, do not apply to any vessel that
                                is owned by the U.S. Government when used
                                solely for the purpose of transporting goods
                                owned by the U.S. Government from the
                                territory of Canada to supply Distant Early
                                Warning sites.

            Phase-Out:          None

Title:Annex II -- Schedule of Canada
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length: 26428

                                        Annex II
                                    Schedule of Canada

              
              Sector:             Aboriginal Affairs
              
              Sub-Sector:
              
              Industry
              Classification:
              
              Type of             National Treatment (Articles 1102, 1202)
              Reservation:        Most-Favored-Nation Treatment (Articles   
                                  1103,
                                  1203)
                                  Local Presence (Article 1205)
                                  Performance Requirements (Article 1106)
                                  Senior Management and Boards of Directors
                                  (Article 1107)

              Description:        Cross-Border Services and Investment

                                  Canada reserves the right to adopt or
                                  maintain any measure denying investors of
                                  another Party and their investments, or
                                  service providers of another Party, any
                                  rights or preferences provided to         
                                  aboriginal
                                  peoples.
              
              Existing Measures:  Constitution Act, 1982, being Schedule B of
                                  the Canada Act 1982 (U.K.), 1982, c. 11

                            Annex II - Canada

          Sector:             All Sectors
          
          Sub-Sector:
          
          Industry
          Classification:
          
          Type of             National Treatment (Article 1102)
          Reservation:

          Description:        Investment

                              Canada reserves the right to adopt or
                              maintain any measure relating to residency
                              requirements for the ownership by investors
                              of another Party, or their investments, of
                              oceanfront land.
          
          Existing Measures:

                       Annex II - Canada

              Sector:             Communications

              Sub-Sector:         Telecommunications Transport Networks and
                                  Services, Radiocommunications and Submarine
                                  Cables

              Industry            CPC 752   Telecommunications Services
              Classification:     CPC 7543  Connection Services 
                                  CPC 7549  Other Telecommunications Services
                                            Not Elsewhere Classified (limited
                                            to telecommunications transport
                                            networks and services)

              Type of             National Treatment (Article 1102)
              Reservation:        Most-Favored-Nation Treatment (Article    
                                  1103)
                                  Senior Management and Boards of Directors
                                  (Article 1107)

              Description:        Investment

                                  Canada reserves the right to adopt or
                                  maintain any measure relating to investment
                                  in telecommunications transport networks  
                                  and
                                  telecommunications transport services,
                                  radiocommunications and submarine cables,
                                  including ownership restrictions and      
                                  measures
                                  concerning corporate officers and directors
                                  and place of incorporation. 

                                  This reservation does not apply to        
                                  providers
                                  of enhanced or value-added services whose
                                  underlying telecommunications transmission
                                  facilities are leased from providers of
                                  public telecommunications transport       
                                  networks.
              
              Existing Measures:  Bell Canada Act, S.C. 1987, c. 19

                                  British Columbia Telephone Company Special
                                  Act, S.C. 1916, c. 66 

                                  Teleglobe Canada Reorganization and
                                  Divestiture Act, 
                                  S.C. 1987, c. 12

                                  Telesat Canada Reorganization and         
                                  Divestiture
                                  Act, 

                              Annex II - Canada

                              S.C 1991, c. 52 

                              Radiocommunication Act, R.S.C. 1985, c. R-2

                              Telegraphs Act, R.S.C. 1985, c. T-5

                              Telecommunications Policy Framework, 1987

                  Annex II - Canada

              Sector:             Communications

              Sub-Sector:         Telecommunications Transport Networks and
                                  Services, Radiocommunications and Submarine
                                  Cables

              Industry            CPC 752   Telecommunications Services (not
              Classification:               including enhanced or value-added
                                            services)
                                  CPC 7543  Connection Services 
                                  CPC 7549  Other Telecommunications Services
                                            Not Elsewhere Classified (limited
                                            to telecommunications transport
                                            networks and services)

              Type of             National Treatment (Article 1202)
              Reservation:        Most-Favored-Nation Treatment (Article
1203)
                                  Local Presence (Article 1205)

              Description:        Cross-Border Services

                                  Canada reserves the right to adopt or
                                  maintain any measure relating to
                                  radiocommunications, submarine cables and
the
                                  provision of telecommunications transport
                                  networks and telecommunications transport
                                  services.  These measures may apply to such
                                  matters as market entry, spectrum
assignment,
                                  tariffs, intercarrier agreements, terms and
                                  conditions of service, interconnection
                                  between networks and services, and routing
                                  requirements that impede the provision on
a
                                  cross-border basis of telecommunications
                                  transport networks and telecommunications
                                  transport services, radiocommunications and
                                  submarine cables.

                                  Telecommunications transport services
                                  typically involve 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, whether or not such services
are
                                  offered to the public generally.  These
                                  services include voice and data services by

                              Annex II - Canada

                              wire, radiocommunications or any other
                              electromagnetic means of transmission.

                              This reservation does not apply to measures
                              relating to the cross-border provision of
                              enhanced or value-added services.

          Existing Measures:  Bell Canada Act, S.C. 1987, c. 19  

                              British Columbia Telephone Company Special
                              Act, S.C. 1916, 
                              c. 66

                              Railway Act, R.S.C. 1985, c. R-3 

                              Radiocommunication Act, R.S.C. 1985, c. R-2

                              Telegraphs Act, R.S.C. 1985, c. T-5 

                              Telecommunications Policy Framework, 1987

                              Telecommunications Decisions, C.R.T.C.,
                              including (85-19), (90-3), (91-10), (91-21),
                              (92-11) and (92-12)

                          Annex II - Canada

              Sector:             Government Finance

              Sub-Sector:         Securities

              Industry            SIC 8152  Finance and Economic
Administration
              Classification:
              
              Type of             National Treatment (Article 1102)
              Reservation:

              Description:        Investment

                                  Canada reserves the right to adopt or
                                  maintain any measure relating to the
                                  acquisition, sale or other disposition by
                                  nationals of another Party of bonds,
treasury
                                  bills or other kinds of debt securities
                                  issued by the Government of Canada, a
                                  province or local government.

              Existing Measures:  Financial Administration Act, R.S.C. 1985,
c.
                                  F-11

                             Annex II - Canada

          Sector:             Minority Affairs

          Sub-Sector:

          Industry
          Classification:
          
          Type of             National Treatment (Articles 1102, 1202)
          Reservation:        Local Presence (Article 1205)
                              Performance Requirements (Article 1106)
                              Senior Management and Boards of Directors
                              (Article 1107)

          Description:        Cross-Border Services and Investment

                              Canada reserves the right to adopt or
                              maintain any measure according rights or
                              preferences to socially or economically
                              disadvantaged minorities.

          Existing Measures:

                      Annex II - Canada

              Sector:             Social Services

              Sub-Sector:

              Industry
              Classification:
              
              Type of             National Treatment (Articles 1102, 1202)
              Reservation:        Most-Favored-Nation Treatment (Article
1203)
                                  Local Presence (Article 1205)
                                  Senior Management and Boards of Directors
                                  (Article 1107)

              Description:        Cross-Border Services and Investment

                                  Canada reserves the right to adopt or
                                  maintain any measure with respect to the
                                  provision of public law enforcement and
                                  correctional services, and the following
                                  services to the extent that they are social
                                  services established or maintained for a
                                  public purpose: income security or
insurance,
                                  social security or insurance, social
welfare,
                                  public education, public training, health,
                                  and child care.
              
              Existing Measures:

                         Annex II - Canada

          Sector:             Transportation

          Sub-Sector:         Air Transportation

          Industry            SIC 4513  Non-Scheduled Air Transport,
          Classification:               Specialty, Industry
          
          Type of             National Treatment (Article 1102)
          Reservation:        Most-Favored-Nation Treatment (Article 1103)
                              Senior Management and Boards of Directors
                              (Article 1107)

          Description:        Investment

                              Canada reserves the right to adopt or
                              maintain any measure that restricts the
                              acquisition or establishment of an investment
                              in Canada for the provision of specialty air
                              services to a Canadian national or a
                              corporation incorporated and having its
                              principal place of business in Canada, its
                              chief executive officer and not fewer than
                              two-thirds of its directors as Canadian
                              nationals, and not less than 75 percent of
                              its voting interest owned and controlled by
                              persons otherwise meeting these requirements.

          Existing Measures:  Aeronautics Act, R.S.C. 1985, c. A-2

                              Air Regulations, C.R.C. 1978, c. 2

                              Aircraft Marking and Registration
                              Regulations, SOR/90-591

                           Annex II - Canada

              Sector:             Transportation
              
              Sub-Sector:         Water Transportation
              
              Industry            SIC 4129  Other Heavy Construction (limited
              Classification:               to dredging)
                                  SIC 4541  Freight and Passenger Water
                                            Transport Industry
                                  SIC 4542  Ferry Industry
                                  SIC 4543  Marine Towing Industry
                                  SIC 4549  Other Water Transport Industries
                                  SIC 4552  Harbour and Port Operation
                                            Industries (limited to berthing,
                                            bunkering and other vessel
                                            operations in a port)
                                  SIC 4553  Marine Salvage Industry
                                  SIC 4554  Piloting Service, Water Transport
                                            Industry
                                  SIC 4559  Other Service Industries
Incidental
                                            to Water Transport (not including
                                            landside aspects of port
                                            activities)

              Type of             National Treatment (Articles 1102, 1202)
              Reservation:        Most-Favored-Nation Treatment (Articles
1103,
                                  1203)
                                  Local Presence (Article 1205)
                                  Performance Requirements (Article 1106)
                                  Senior Management and Boards of Directors
                                  (Article 1107)

              Description:        Cross-Border Services and Investment

                                  Canada reserves the right to adopt or
                                  maintain any measure relating to investment
                                  in or provision of maritime cabotage
                                  services, including:

                                  (a)  the transportation of goods or
                                       passengers by vessel between points in
                                       the territory of Canada and in its
                                       Exclusive Economic Zone;

                                  (b)  with respect to waters above the
                                       continental shelf, the transportation
of
                                       goods or passengers in relation to the

                               Annex II - Canada

                                   exploration, exploitation or
                                   transportation of the mineral or non-
                                   living natural resources of the
                                   continental shelf; and

                              (c)  the engaging by vessel in any maritime
                                   activity of a commercial nature in the
                                   territory of Canada and in its Exclusive
                                   Economic Zone and, with respect to
                                   waters above the continental shelf, in
                                   such other maritime activities of a
                                   commercial nature in relation to the
                                   exploration, exploitation or
                                   transportation of mineral or non-living
                                   natural resources of the continental
                                   shelf.

                              This reservation relates to, among other
                              things, local presence requirements for
                              service providers entitled to participate in
                              these activities, criteria for the issuance
                              of a temporary cabotage license to foreign
                              vessels and limits on the number of cabotage
                              licenses issued to foreign vessels. 

          Existing Measures:  Coasting Trade Act, S.C. 1992, c. 31

                              Canada Shipping Act, R.S.C. 1985, c. S-9 

                              Customs Act, R.S.C. 1985, c. 1 (2nd Supp.)

                              Customs and Excise Offshore Application Act,
                              R.S.C. 1985, 
                              c. C-53

                        Annex II - Canada


             Sector:             Transportation

              Sub-Sector:         Water Transportation

              Industry            SIC 4541  Freight and Passenger Water
              Classification:               Transport Industry
                                  SIC 4542  Ferry Industry
                                  SIC 4543  Marine Towing Industry 
                                  SIC 4549  Other Water Transport Industries
                                  SIC 4551  Marine Cargo Handling Industry
                                  SIC 4552  Harbour and Port Operation
                                            Industries
                                  SIC 4553  Marine Salvage Industry 
                                  SIC 4554  Piloting Service, Water Transport
                                            Industry
                                  SIC 4559  Other Service Industries
Incidental
                                            to Water Transport
              
              Type of             National Treatment (Articles 1102, 1202)
              Reservation:        Most-Favored-Nation Treatment (Articles
1103,
                                  1203)
                                  Local Presence (Article 1205)
                                  Performance Requirements (Article 1106)
                                  Senior Management and Boards of Directors
                                  (Article 1107)

              Description:        Cross-Border Services and Investment

                                  Canada reserves the right to adopt or
                                  maintain any measure denying service
                                  providers or investors of the United
States,
                                  or their investments, the benefits accorded
                                  service providers or investors of Mexico or
                                  any other country, or their investments, in
                                  sectors or activities equivalent to those
                                  subject to Schedule of the United States,
                                  Annex II, page II-U-9.

              Existing Measures:

                           Annex II - Canada

          Sector:             Transportation

          Sub-Sector:         Water Transportation

          Industry            SIC 4541  Freight and Passenger Water
          Classification:               Transport Industry
                              SIC 4542  Ferry Industry
                              SIC 4543  Marine Towing Industry
                              SIC 4549  Other Water Transport Industries
                              SIC 4551  Marine Cargo Handling Industry
                              SIC 4552  Harbour and Port Operation
                                        Industries
                              SIC 4553  Marine Salvage Industry
                              SIC 4554  Piloting Service, Water Transport
                                        Industry
                              SIC 4559  Other Service Industries Incidental
                                        to Water Transport
          
          Type of             Most-Favored-Nation Treatment (Article 1203)
          Reservation:

          Description:        Cross-Border Services

                              Canada reserves the right to adopt or
                              maintain any measure relating to the
                              implementation of agreements, arrangements
                              and other formal or informal undertakings
                              with other countries with respect to maritime
                              activities in waters of mutual interest in
                              such areas as pollution control (including
                              double hull requirements for oil tankers),
                              safe navigation, barge inspection standards,
                              water quality, pilotage, salvage, drug abuse
                              control and maritime communications.

          Existing Measures:  United States Wreckers Act, R.S.C. 1985, c.
                              U-3

                              Various agreements and arrangements,
                              including:

                              (a)  Memorandum of Arrangements on Great
                                   Lakes Pilotage;

                              (b)  Canada - United States Joint Marine
                                   Pollution Contingency Plan;

                               Annex II - Canada

                                  (c)  Agreement with the United States on
                                       Loran "C" Service on the East and West
                                       Coasts; and

                                  (d)  Denmark - Canada Joint Marine        
                                       Pollution
                                       Circumpolar Agreement.

Title:Annex IV -- Schedule of Canada
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:1961                                                         
 
                                        Annex IV  
                                    Schedule of Canada 
 
                  Canada takes an exception to Article 1103 for treatment 
            accorded under all bilateral or multilateral international 
            agreements in force or signed prior to the date of entry into 
            force of this Agreement. 
 
                 For international agreements in force or signed after the 
            date of entry into force of this Agreement, Canada takes an 
            exception to Article 1103 for treatment accorded under those 
            agreements involving: 
 
                 (a)  aviation; 
 
                 (b)  fisheries; 
 
                 (c)  maritime matters, including salvage; or 
 
                 (d)  telecommunications transport networks and 
                      telecommunications transport services (this exception 
                      does not apply to measures covered by Chapter Thirteen 
                      (Telecommunications)). 
 
                 With respect to state measures not yet set out in Annex I 
            pursuant to Article 1108(2), Canada takes an exception to Article

            1103 for international agreements signed within two years of the 
            date of entry into force of this Agreement. 
 
                 For greater certainty, Article 1103 does not apply to any 
            current or future foreign aid program to promote economic 
            development, such as those governed by the Energy Economic 
            Cooperation Program with Central America and the Caribbean (Pacto

            de San Jos ) and the OECD Agreement on Export Credits. 
 
 Title:Annex V -- Schedule of Canada
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:7538

 
                                        Annex V 
                                   Schedule of Canada 
 
             
            Sector:             Communications 
 
            Sub-Sector:         Postal Services 
 
            Industry            SIC 4841   Postal Service Industry 
            Classification: 
 
            Level of            Federal 
            Government: 
 
            Measures:           Canada Post Corporation Act, R.S.C. c. C-10 
 
                                Letter Definition Regulations, SOR/83-481  
 
            Description:        Canada Post Corporation has the exclusive 
                                privilege to collect, transmit and deliver 
                                "letters", as defined in the Letter 
                                Definition Regulations, addressed in Canada, 
                                and its consent is required for other persons

                                to sell stamps. 

                             Annex V - Canada 
 
            Sector:             Communications 
             
            Sub-Sector:         Radiocommunications 
 
            Industry            CPC 752   Telecommunications 
            Classification: 
 
            Level of            Federal 
            Government: 
 
            Measures:           Radiocommunication Act, R.S.C. 1985, c. R-2 
 
            Description:        A person that proposes to operate a private 
                                radio transmission system must obtain a 
                                license from the Department of 
                                Communications.  The issuance of such a 
                                license is subject to spectrum availability 
                                and policies regarding its use.  In general, 
                                priority is given to the use of the spectrum 
                                for the purpose of developing non-private 
                                networks.  
 
                             Annex V - Canada 
 
            Sector:             Energy 
 
            Sub-Sector:         Electricity Transmission  
 
            Industry            SIC 4911   Electric Power Systems Industry 
            Classification: 
 
            Level of            Federal 
            Government: 
 
            Measures:           National Energy Board Act, R.S.C. 1985, c. N-

                                7 
            Description:        The approval of the National Energy Board is 
                                required for the construction and operation 
                                of international electricity transmission 
                                lines.   
 
                            Annex V - Canada 
 
            Sector:             Energy 
 
            Sub-Sector:         Oil and Gas Transportation 
 
            Industry            SIC 461   Pipeline Transport Industry 
            Classification: 
            Level of            Federal 
            Government: 
 
            Measures:           National Energy Board Act, R.S.C. 1985, c. N-

                                7 
            Description:        The approval of the National Energy Board 
                                (NEB) is required for the construction and 
                                operation of all interprovincial or 
                                international pipelines for the transmission 
                                of oil or gas.  A public hearing must be held

                                and a certificate of public convenience and 
                                necessity issued where the pipeline in 
                                question is longer than 40 kilometers.  
                                Pipelines shorter than 40 kilometers may be 
                                authorized by an order without a public 
                                hearing.  All modifications to and extensions

                                of pipelines must be approved by the NEB. 
 
                                All tolls for the transmission of oil and gas

                                on NEB-regulated pipelines and all tariff 
                                matters must be filed with or approved by the

                                NEB.  A public hearing may be held to 
                                consider toll and tariff matters. 
 
                          Annex V - Canada 
 
            Sector:             Food, Beverage and Drug Industries 
 
            Sub-Sector:         Liquor, Wine and Beer Stores 
 
            Industry            6021 Liquor Stores 
            Classification:     6022 Wine Stores 
                                6023 Beer Stores 
 
            Level of            Federal 
            Government: 
 
            Measures:           Importation of Intoxicating Liquors Act, 
                                R.S.C. 1985, c. I-3 
            Description:        The Importation of Intoxicating Liquors Act 
                                gives each provincial government an import 
                                monopoly on any intoxicating liquors entering

                                its territory. 
 
                          Annex V - Canada 
 
            Sector:             Transportation 
 
            Sub-Sector:         Land Transportation  
 
            Industry            SIC 457   Public Passenger Transit Systems 
            Classification: 
 
            Level of            Federal (administration delegated to 
            Government:         provinces) 
 
            Measures:           National Transportation Act, 1987, R.S.C. 
                                1985, c. 28 (3rd Supp.) 
 
            Description:        Provincial transport boards have been 
                                delegated the authority to permit persons to 
                                provide extra-provincial (inter-provincial 
                                and cross-border) bus services in their 
                                respective provinces on the same basis as 
                                local bus services.  All provinces, except 
                                New Brunswick, Prince Edward Island and 
                                Yukon, permit the provision of local and 
                                extra-provincial bus services on the basis of

                                a public convenience and necessity test. 
Title:Annex VI -- Schedule of Canada
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:1813

                                      Annex VI 
                                   Schedule of Canada 
             
            Sector:             Professional Services 
 
            Sub-Sector:         Lawyers  
 
            Industry            SIC 7761   Offices of Lawyers and Notaries 
            Classification: 
 
            Level of            Provincial  
            Government: 
 
            Measures:           British Columbia:   Legal Profession Act, 
                                                    S.B.C. 1987, c. 25 
 
                                Ontario:            Law Society Act, R.S.O. 
                                                    1990,  c. L-8 
 
                                Saskatchewan:  Legal Profession Act, S.Sask. 
                                               1990,  
                                               c. L-10.1 
 
            Description:        Lawyers authorized to practice in Mexico or 
                                the United States and law firms headquartered

                                in Mexico or the United States will be 
                                permitted to provide foreign legal 
                                consultancy services, and to establish for 
                                that purpose, in British Columbia, Ontario 
                                and Saskatchewan, and in any other province 
                                that so permits by the date of entry into 
                                force of this Agreement. 
 
Title:Annex VII -- Schedule of Canada
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:6979
    
                                       Annex VII 
                                   Schedule of Canada 
                                       Section A 
  
            Sector:             Financial Services 
 
            Sub-Sector:         Insurance 
 
            Industrial 
            Classification: 
 
            Type of             Article 1404 (Cross-Border Trade) 
            Reservation: 
 
            Level of            Federal 
            Government: 
            Measures:           Insurance Companies Act, S.C. 1991, c. 47 
 
                                Reinsurance (Canadian Companies) Regulations,

                                SOR/92-298 
 
                                Reinsurance (Foreign Companies) Regulations, 
                                SOR/92-596 
 
            Description:        The purchase of reinsurance services by a 
                                Canadian insurer, other than a life insurer 
                                or a reinsurer, from a non-resident reinsurer

                                is limited to no more than 25 percent of the 
                                risks undertaken by the insurer purchasing 
                                the reinsurance. 
 
            Phase-Out:          None 
  
                           Annex VII(B) - Canada                            
              
                                Section B 
 
             1.   Canada reserves the right to adopt any measure relating to 
            cross-border trade in securities services that derogates from 
            Article 1404(1) or, with respect to the United States, that 
            derogates from Article 1406. 
 
            2.   For purposes of restrictions that limit foreign ownership 
            of Canadian-controlled financial institutions, and for purposes 
            of restrictions on total domestic assets of foreign bank 
            subsidiaries in Canada, Canada reserves the right to adopt or 
            maintain measures that require an enterprise of another Party 
            be controlled by one or more residents of the other Party in 
            order to be entitled to the benefits of this Chapter.  For 
            these purposes: 
 
                 (a)  an enterprise controlled by one or more residents of 
                      another Party means controlled, directly or 
                      indirectly, by such residents; 
 
                 (b)  an enterprise that is a body corporate is controlled 
                      by one or more persons if 
 
                      (i)  securities of the enterprise to which are 
                           attached more than 50 percent of the votes that 
                           may be cast to elect directors of the enterprise 
                           are beneficially owned by the person or persons 
                           and the votes attached to those shares are 
                           sufficient, if exercised, to elect a majority of 
                           the directors of the enterprise, and 
 
                      (ii) the person or persons has or have, directly or 
                           indirectly, control in fact of the enterprise; 
 
                 (c)  an enterprise that is an unincorporated entity is 
                      controlled by one or more persons if 
 
                      (i)  more than 50 percent of ownership interests, 
                           however designated, into which the enterprise is 
                           divided is beneficially owned by the person or 
                           persons and the person or persons is or are able 
                           to direct the business and affairs of the 
                           enterprise, and 
 
                      (ii) the person or persons has or have, directly or 
                           indirectly, control in fact of the enterprise; 
 
 
                   Annex VII(B) - Canada                                    
      
                 (d)  a limited partnership is controlled by the general 
                      partner; 
 
                 (e)  ordinarily resident in a country generally means 
                      sojourning in that country for a period of, or 
                      periods the aggregate of which is, 183 days or more 
                      during the relevant year; and  
 
                 (f)  a person ordinarily resident in another Party means 
 
                      (i)  in the case of an enterprise, an enterprise 
                           legally constituted or organized under the laws 
                           of that Party and controlled, directly or 
                           indirectly, by one or more individuals of that 
                           Party described in clause (ii), and 
 
                      (ii) in the case of an individual, an individual who 
                           is ordinarily resident in the territory of that 
                           Party. 
 
                       Annex VII(C)-Canada                                  
        
                               Section C 
 
 
            1.   For purposes of restrictions that limit foreign ownership 
            of Canadian-controlled financial institutions and for purposes 
            of limitations on total domestic assets of foreign bank 
            subsidiaries in Canada, Canada shall give to Mexico the same 
            treatment that Canada gives under the Bank Act, the Insurance 
            Companies Act (Canada), the Trust and Loan Companies Act 
            (Canada) and the Investment Companies Act, to United States 
            residents and to institutions controlled by United States 
            residents.  
 
            2.   Canada shall exempt foreign bank subsidiaries in Canada 
            controlled by Mexican residents from the requirement to obtain 
            approval of the Minister of Finance prior to opening branches 
            within Canada in the same manner as it exempts foreign bank 
            subsidiaries in Canada controlled by United States residents. 
   
 Title:Annex I -- Schedule of Mexico
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain CHARSET=US-ASCII
Content-Length: 182377

                                   Annex I
                                   Schedule of Mexico


            Sector:             All Sectors

            Sub-Sector:

            Industry
            Classification:
            Type of             National Treatment (Article 1102)
            Reservation:
            Level of            Federal
            Government:
            Measures:           Constituci n Pol tica de los Estados Unidos
                                Mexicanos, Art culo 27

                                Ley de Nacionalidad y Naturalizaci n,
                                Cap tulos IV, VI

                                Ley Org nica de la Fracci n I del Art culo 27
                                de la Constituci n

                                Ley para Promover la Inversi n Mexicana y
                                Regular la Inversi n Extranjera, Cap tulos I,
                                IV, V

                                Reglamento de la Ley para Promover la
                                Inversi n Mexicana y Regular la Inversi n
                                Extranjera, T tulo I; T tulo II, Cap tulos I,
                                II; T tulo III, Cap tulo III;  T tulo VI;
                                T tulo VIII, Cap tulo IV 

            Description:        Investment

                                Foreign nationals or foreign enterprises, or
                                Mexican enterprises without a foreigners'
                                exclusion clause, may not acquire property
                                rights ("dominio directo") over land and
                                water in a 100-kilometer strip along the
                                country's borders or in a 50-kilometer strip
                                inland from its coasts (the Restricted Zone).

                                Lease of land for more than 10 years is
                                deemed to be an acquisition.

                                Foreign nationals, foreign enterprises or


                                Annex I - Mexico
   
                                Mexican enterprises may acquire "Certificados
                                de Participaci n Inmobiliaria" (CPI's). 
                                CPI's grant the beneficiaries the right to
                                use and enjoy property and to receive the
                                profits that it may obtain from the
                                profitable use of property.

                                CPI's are issued by a Mexican credit
                                institution that has been granted
                                authorization to acquire through trust the
                                title to real estate intended for industrial
                                and tourism activities in the Restricted Zone
                                for a period not to exceed 30 years.  The
                                trust is renewable if: 

                                (a)  the beneficiaries of the trust that is
                                     to be extinguished or terminated will be
                                     the beneficiaries of the new trust;

                                (b)  the new trust is to be executed under
                                     the same terms and conditions as the
                                     trust that is to be extinguished or
                                     terminated, in respect of the purposes
                                     of the trust, the use of the property
                                     and its characteristics; 

                                (c)  the respective permits are requested
                                     within a period of 360 to 181 days
                                     preceding the termination or extinction
                                     of the trust; and

                                (d)  the provisions of the Ley para Promover
                                     la Inversi n Mexicana y Regular la
                                     Inversi n Extranjera are observed. 

            Phase-Out:          None

                        Annex I - Mexico                                    

            Sector:             All Sectors

            Sub-Sector:

            Industry
            Classification:
            Type of             National Treatment (Article 1102)
            Reservation:
                                Federal
            Level of
            Government:
            Measures:           Ley para Promover la Inversi n Mexicana y
                                Regular la Inversi n Extranjera, Cap tulos I,
                                II, III, V, VI

                                Reglamento de la Ley para Promover la
                                Inversi n Mexicana y Regular la Inversi n
                                Extranjera, T tulo I; T tulo II, Cap tulos I,
                                III, IV; T tulo IV; T tulo V; T tulo VIII,
                                Cap tulos I-V; T tulo IX, Cap tulos I, II,
                                III

                                As qualified by the Description element

            Description:        Investment

                                The Comisi n Nacional de Inversiones
                                Extranjeras, in order to evaluate
                                applications submitted for its consideration
                                (acquisitions or establishment of investments
                                in restricted activities as set out in this
                                Schedule), shall take into account the
                                following criteria:

                                (a)  its effects on employment and training;

                                (b)  its technological contribution; or

                                (c)  in general, its contribution to increase
                                     Mexican industrial productivity and
                                     competitiveness.

                                The Comisi n Nacional de Inversiones
                                Extranjeras may impose performance
                                requirements that are not prohibited by
                                Article 1106.

            Phase-Out:          None

                             Annex I - Mexico                               

            Sector:             All Sectors

            Sub-Sector:

            Industry
            Classification:
            Type of             National Treatment (Article 1102)
            Reservation:
            Level of            Federal
            Government:
            Measures:           Ley para Promover la Inversi n Mexicana y
                                Regular la Inversi n Extranjera, Cap tulos I,
                                II, III, V, VI

                                Reglamento de la Ley Para Promover la
                                Inversi n Mexicana y Regular la Inversi n
                                Extranjera, T tulo I; T tulo II, Cap tulo I;
                                T tulo IV; T tulo V; T tulo VIII, Cap tulos
                                I-V; T tulo IX, Cap tulos I, II, III

                                As qualified by the Description element

            Description:        Investment

                                The Comisi n Nacional de Inversiones
                                Extranjeras will only review direct or
                                indirect acquisitions by an investor of
                                another Party of more than 49 percent of the
                                ownership interest in a Mexican enterprise in
                                an unrestricted sector, that is directly or
                                indirectly owned or controlled by Mexican
                                nationals, if the value of the gross assets
                                of the Mexican enterprise is not less than
                                the applicable threshold. 

            Phase-Out:          For investors and investments of investors of
                                Canada or the United States, the applicable
                                threshold for the review of an acquisition of
                                a Mexican enterprise will be:

                                (a)  US$25 million, for the three-year period
                                     beginning on the date of entry into
                                     force of this Agreement;


                               Annex I - Mexico                             

                                (b)  US$50 million, for the three-year period
                                     beginning three years after the date of
                                     entry into force of this Agreement;

                                (c)  US$75 million, for the three-year period
                                     beginning six years after the date of
                                     entry into force of this Agreement; and

                                (d)  US$150 million, beginning nine years
                                     after the date of entry into force of
                                     this Agreement.

                                Beginning one year after the date of entry
                                into force of this Agreement, each of these
                                thresholds will be adjusted annually for
                                cumulative inflation from the date of entry
                                into force of this Agreement, based on the
                                implicit price deflator for U.S. Gross
                                Domestic Product (GDP) or any successor index
                                published by the Council of Economic Advisors
                                in "Economics Indicators".

                                The value of a threshold adjusted for
                                cumulative inflation up to January of each
                                year following 1994 shall be equal to the
                                original value of the threshold multiplied by
                                the following ratio:

                                (a)  the implicit GDP price deflator or any
                                     successor index published by the Council
                                     of Economic Advisors in "Economic
                                     Indicators", current as of January of
                                     that year; to 

                                (b)  the implicit GDP price deflator or any
                                     successor index published by the Council
                                     of Economic Advisors in "Economic
                                     Indicators", current as of the date of
                                     entry into force of this Agreement,

                                provided that the implicit GDP price
                                deflators under paragraphs (a) and (b) have
                                the same base year.

                                The resulting adjusted threshold will be
                                rounded to the nearest million dollars.


                               Annex I - Mexico                             
                                 
                                Beginning 10 years after the date of entry
                                into force of this Agreement, the threshold
                                will be adjusted annually by the rate of
                                growth of the nominal Mexican GDP, as
                                published by the Instituto Nacional de
                                Estad stica, Geograf a e Inform tica.
                                Whenever the U.S. dollar amount calculated
                                for the threshold is, at the prevailing
                                market exchange rate, equal to or higher than
                                the amount calculated pursuant to Schedule of
                                Canada, Annex I, page I-C-2, the calculation
                                of the applicable threshold will be made
                                according to the rules established therein. 
                                In no case will the threshold, as converted
                                into U.S. dollars, exceed that of Canada.

                               Annex I - Mexico                             

            Sector:             All Sectors

            Sub-Sector:

            Industry
            Classification:
            Type of             National Treatment (Article 1102)
            Reservation:        Senior Management and Boards of Directors
                                (Article 1107)

            Level of            Federal
            Government:
            Measures:           Constituci n Pol tica de los Estados Unidos
                                Mexicanos, Art culo 25

                                Ley General de Sociedades Cooperativas,
                                T tulo I, Cap tulo I; T tulo II, Cap tulo II

            Description:        Investment

                                No more than 10 percent of the persons
                                participating in a Mexican cooperative
                                production enterprise may be foreign
                                nationals.

                                No foreign national may engage in general
                                administrative functions or perform
                                managerial activities in that enterprise.

            Phase-Out:          None

                                Annex I - Mexico                            

            Sector:             All Sectors

            Sub-Sector:

            Industry
            Classification:
            Type of             National Treatment (Article 1102)
            Reservation:
            Level of            Federal
            Government:
            Measures:           Ley Federal para el Fomento de la
                                Microindustria, Cap tulos I, II, III

            Description:        Investment

                                Only Mexican nationals may apply for a
                                license ("c dula") to qualify as a
                                microindustry enterprise.

                                Mexican "microindustry enterprises" may not
                                have foreign persons as partners.

                                The Ley Federal para el Fomento de las
                                Microindustria defines "microindustry
                                enterprise" as including enterprises with up
                                to fifteen workers and with sales of amounts
                                periodically determined by the Secretar a de
                                Comercio y Fomento Industrial.

            Phase-Out:          None


                               Annex I - Mexico                             

            Sector:             Agriculture, Livestock, Forestry and Lumber
                                Activities

            Sub-Sector:         Agriculture, Livestock or Forestry

            Industry            CMAP 1111 Agriculture
            Classification:     CMAP 1112 Livestock and Game (limited to
                                          livestock)
                                CMAP 1200 Forestry and Felling Trees

            Type of             National Treatment (Article 1102)
            Reservation:
            Level of            Federal
            Government:
            Measures:           Constituci n Pol tica de los Estados Unidos
                                Mexicanos, Art culo 27

                                Ley Agraria, T tulos V, VI

            Description:        Investment

                                Only Mexican nationals or Mexican enterprises
                                may own land for agriculture, livestock or
                                forestry purposes.  Such enterprises must
                                issue a special type of share ("T" shares)
                                representing the value of that land at the
                                time of its acquisition.  Investors of
                                another Party or their investments may only
                                own up to 49 percent of "T" shares. 

            Phase-Out:          None

                              Annex I - Mexico                              

            Sector:             Communications 

            Sub-Sector:         Entertainment Services (Broadcasting,
                                Multipoint Distribution Systems (MDS) and
                                Cable Television)

            Industry            CMAP 941104    Private Production and
            Classification:                    Transmission of Radio Programs
                                               (limited to production and
                                               transmission of radio
                                               programs, MDS and
                                               uninterrupted music)
                                CMAP 941105    Private Services of
                                               Production, Transmission and
                                               Retransmission of Television
                                               Programming (limited to
                                               production, transmission and
                                               retransmission of television
                                               programming, MDS, direct
                                               broadcasting systems and high-
                                               definition television and
                                               cable television)

            Type of             National Treatment (Article 1202)
            Reservation:        Performance Requirements (Article 1106)

            Level of            Federal
            Government:
            Measures:           Ley Federal de Radio y Televisi n, T tulo IV,
                                Cap tulo III

                                Reglamento de la Ley Federal de Radio y
                                Televisi n y de la Ley de la Industria
                                Cinematogr fica Relativo al Contenido de las
                                Transmisiones de Radio y Televisi n, T tulo
                                III 

                                Reglamento del Servicio de Televisi n por
                                Cable, Cap tulo VI 


            Description:        Cross-Border Services and Investment

                                For the protection of copyrights, the holder
                                of a concession for a commercial broadcast
                                station or for a cable television system is


                           Annex I - Mexico                                 
  
                                required to obtain an authorization from the
                                Secretar a de Gobernaci n to import in any
                                form radio or television programming for
                                broadcast or cable distribution within the
                                territory of Mexico.

                                The authorization will be granted if the
                                application for authorization includes
                                documentation showing that the copyright
                                holder has granted the license ("derechos")
                                to broadcast or distribute by cable such
                                programming.

            Phase-Out:          None

                              Annex I - Mexico                              
    
            Sector:             Communications

            Sub-Sector:         Entertainment Services (Broadcasting,
                                Multipoint Distribution Systems (MDS) and
                                Cable Television)

            Industry            CMAP 941104    Private Production and
            Classification:                    Transmission of Radio Programs
                                               (limited to production and
                                               transmission of radio
                                               programs, MDS and
                                               uninterrupted music)
                                CMAP 941105    Private Services of
                                               Production, Transmission and
                                               Retransmission of Television
                                               Programming (limited to
                                               production, transmission and
                                               retransmission of television
                                               programming, MDS, direct
                                               broadcasting systems,
                                               high-definition television and
                                               cable television)

            Type of             National Treatment (Article 1202)
            Reservation:        Performance Requirements (Article 1106)

            Level of            Federal
            Government:
            Measures:           Ley Federal de Radio y Televisi n, T tulo IV,
                                Cap tulo III

                                Reglamento de la Ley Federal de Radio y
                                Televisi n y de la Ley de la Industria
                                Cinematogr fica Relativo al Contenido de las
                                Transmisiones de Radio y Televisi n, T tulo
                                III

                                Reglamento del Servicio de Televisi n por
                                Cable, Cap tulo VI

            Description:        Cross-Border Services and Investment

                                The use of the Spanish language is required
                                for the broadcast, cable or multipoint
                                distribution system distribution of radio or
                                television programming, except when the


                             Annex I - Mexico                               

                                Secretar a de Gobernaci n authorizes the use
                                of another language.

                                A majority of the time of each day's live
                                broadcast programs must feature Mexican
                                nationals.

                                A radio or television announcer or presenter
                                who is not a Mexican national must obtain an
                                authorization from the Secretar a de
                                Gobernaci n to perform in Mexico.

            Phase-Out:          None

                        Annex I - Mexico                                    

            Sector:             Communications

            Sub-Sector:         Entertainment Services (Broadcasting,
                                Multipoint Distribution Systems (MDS) and
                                Cable Television)

            Industry            CMAP 941105    Private Services of
            Classification:                    Production, Transmission and
                                               Retransmission of Television
                                               Programming (limited to
                                               broadcasting, cable television
                                               and MDS)

            Type of             National Treatment (Article 1202)
            Reservation:        Performance Requirements (Article 1106)

            Level of            Federal
            Government:
            Measures:           Ley Federal de Radio y Televisi n, T tulo IV,
                                Cap tulo III

                                Reglamento de la Ley Federal de Radio y
                                Televisi n y de la Ley de la Industria
                                Cinematogr fica Relativo al Contenido de las
                                Transmisiones de Radio y Televisi n, T tulo
                                III

                                Reglamento del Servicio de Televisi n por
                                Cable, Cap tulo VI

            Description:        Cross-Border Services and Investment

                                The use of the Spanish language or Spanish
                                subtitles is required for advertising
                                broadcast or otherwise distributed in the
                                territory of Mexico.

                                Advertising included in programs transmitted
                                directly from outside the territory of Mexico
                                may not be distributed in those programs when
                                they are retransmitted in the territory of
                                Mexico.

            Phase-Out:          None

                           Annex I - Mexico                                 

            Sector:             Communications

            Sub-Sector:         Entertainment Services (Cable Television)

            Industry            CMAP 941105    Private Services of
            Classification:                    Production, Transmission and
                                               Retransmission of Television
                                               Programming (limited to cable
                                               television)

            Type of             National Treatment (Article 1102)
            Reservation:
            Level of            Federal
            Government:
            Measures:           Ley Federal de Radio y Televisi n, T tulo
                                III, Cap tulos I, II, III

                                Ley para Promover la Inversi n Mexicana y
                                Regular la Inversi n Extranjera, Cap tulos I,
                                II, III, V, VI

                                Reglamento del Servicio de Televisi n por
                                Cable, Cap tulo II

                                Reglamento de la Ley para Promover la
                                Inversi n Mexicana y Regular la Inversi n
                                Extranjera,  T tulo I; T tulo II, Cap tulo I;
                                T tulo IV; T tulo V; T tulo VIII, Cap tulos
                                I, II, III, V; T tulo IX, Cap tulo I

                                As qualified by the Description element

            Description:        Investment

                                Investors of another Party or their
                                investments may only own, directly or
                                indirectly, up to 49 percent of the ownership
                                interest in an enterprise, established or to
                                be established in the territory of Mexico,
                                that owns or operates a cable television
                                system or provides cable television services.

            Phase-Out:          None.  Subject to discussion by the Parties
                                five years after the date of entry into force
                                of this Agreement.

                           Annex I - Mexico                                 

            Sector:             Communications

            Sub-Sector:         Entertainment Services (Cable Television)

            Industry            CMAP 941105    Private Services of
            Classification:                    Production, Transmission and
                                               Retransmission of Television
                                               Programming (limited to cable
                                               television)

            Type of             National Treatment (Article 1202)
            Reservation:        Local Presence (Article 1205)

            Level of            Federal
            Government:
            Measures:           Constituci n Pol tica de los Estados Unidos
                                Mexicanos, Art culo 32

                                Ley de V as Generales de Comunicaci n, Libro
                                I, Cap tulo III

                                Ley de Nacionalidad y Naturalizaci n,
                                Cap tulo IV

                                Ley Federal de Radio y Televisi n, T tulo
                                III, Cap tulos I, II, III

                                Reglamento del Servicio de Televisi n por
                                Cable, Cap tulo II

            Description:        Cross-Border Services

                                A concession granted by the Secretar a de
                                Comunicaciones y Transportes is required to
                                construct and operate, or to operate, a cable
                                television system.  Only Mexican nationals
                                and Mexican enterprises may obtain such a
                                concession.

            Phase-Out:          None


                           Annex I - Mexico                                 
 
           Sector:             Communications

            Sub-Sector:         Entertainment Services  (Cinema)

            Industry            CMAP 941103    Private Exhibition of Films 
            Classification:
            Type of             National Treatment (Article 1202)
            Reservation:        Performance Requirements (Article 1106)

            Level of            Federal
            Government:
            Measures:           Ley de la Industria Cinematogr fica

                                Reglamento de la Ley de la Industria
                                Cinematogr fica

                                As qualified by the Description element

            Description:        Cross-Border Services and Investment

                                Thirty percent of the screen time of every
                                theater, assessed on an annual basis, may be
                                reserved for films produced by Mexican
                                persons either within or outside the
                                territory of Mexico.

            Phase-Out:          None

                        Annex I - Mexico                                    

            Sector:             Communications

            Sub-Sector:         Telecommunications (Enhanced or Value-Added
                                Services)

            Industry            CMAP 720006    Other Telecommunications
            Classification:                    Services (limited to enhanced
                                               or value-added services)

            Type of             National Treatment (Articles 1102, 1202)
            Reservation:        Local Presence (Article 1205)

            Level of            Federal
            Government:
            Measures:           Ley de V as Generales de Comunicaci n, Libro
                                I, Cap tulo III 

                                Ley para Promover la Inversi n Mexicana y
                                Regular la Inversi n Extranjera, Cap tulos I,
                                II, III, V, VI

                                Reglamento de Telecomunicaciones, Cap tulo IV

                                Reglamento de la Ley para Promover la
                                Inversi n Mexicana y Regular la Inversi n
                                Extranjera, T tulo I; T tulo II, Cap tulo I;
                                T tulo IV; T tulo V; T tulo VIII, Cap tulos
                                I, II, III, V; T tulo IX, Cap tulo I

                                As qualified by paragraphs 2 and 4 of the
                                Description element

            Description:        Cross-Border Services

                                1.   A provider of enhanced or value-added
                                services must obtain a permit issued by the
                                Secretar a de Comunicaciones y Transportes.

                                2.   Persons of Canada or the United States
                                may provide all enhanced or value-added
                                services, except videotext or enhanced packet
                                switching services, without the need to
                                establish local presence. 

                                3.   Videotext and enhanced packet switching
                                services may not be provided on a

                             Annex I - Mexico                               

                                cross-border basis.

                                Investment

                                4.   Investors of another Party or their
                                investments may own 100 percent of the
                                ownership interest in an enterprise,
                                established or to be established in the
                                territory of Mexico, that provides any
                                enhanced or value-added service, other than
                                videotext or enhanced packet switching
                                services.

                                5.   Investors of another Party or their
                                investments may only own, directly or
                                indirectly, up to 49 percent of the ownership
                                interest in an enterprise, established or to
                                be established in the territory of Mexico,
                                that provides videotext or enhanced packet
                                switching services.

            Phase-Out:          Cross-Border Services

                                Beginning July 1, 1995, a person of Canada or
                                the United States may provide videotext or
                                enhanced packet switching services on a
                                cross-border basis without the need to
                                establish a local presence in the territory
                                of Mexico.

                                Investment

                                Beginning July 1, 1995, investors of another
                                Party or their investments may own 100
                                percent of the ownership interest in an
                                enterprise established or to be established
                                in the territory of Mexico that provides
                                videotext or enhanced packet switching
                                services.

                              Annex I - Mexico                              

            Sector:             Communications

            Sub-Sector:         Transportation and Telecommunications

            Industry            CMAP 7200 Communications (including
            Classification:               telecommunications and postal
                                          services)
                                CMAP 7100 Transportation

            Type of             National Treatment (Article 1102)
            Reservation:
            Level of            Federal
            Government:
            Measures:           Ley de V as Generales de Comunicaci n, Libro
                                I, Cap tulos III, V

                                Reglamento de Telecomunicaciones, Cap tulo
                                III

            DESCRIPTION:        Investment

                                Foreign governments and foreign state
                                enterprises or their investments may not
                                invest, directly or indirectly, in Mexican
                                enterprises engaged in communications,
                                transportation and other general means of
                                communication ("v as generales de
                                comunicaci n") activities, as defined in the
                                Ley de V as Generales de Comunicaci n.

            Phase-Out:          None


                            Annex I - Mexico                                

            Sector:             Construction

            Sub-Sector:

            Industry            CMAP 501101    Residential or Housing
            Classification:                    Construction
                                CMAP 501102    Non-residential Construction
                                CMAP 501200    Construction of Urbanization
                                               Projects
                                CMAP 501311    Construction of Industrial
                                               Plants
                                CMAP 501312    Construction of Electricity
                                               Generation Plants
                                CMAP 501321    Construction and Maintenance
                                               of Electricity Conduction
                                               Lines and Networks
                                CMAP 501411    Mounting or Installing
                                               Concrete Structures
                                CMAP 501412    Mounting or Installing
                                               Metallic Structures
                                CMAP 501421    Marine and River Works
                                CMAP 501422    Construction of Routes for
                                               Land Transportation
                                CMAP 502001    Hydraulic and Sanitation
                                               Installations in Buildings
                                CMAP 502002    Electrical Installations in
                                               Buildings
                                CMAP 502003    Telecommunications
                                               Installations
                                CMAP 502004    Other Special Installations
                                CMAP 503001    Earth Movements
                                CMAP 503002    Cement Works
                                CMAP 503003    Underground Excavations
                                CMAP 503004    Underwater Works
                                CMAP 503005    Installation of Signs and
                                               Warnings
                                CMAP 503006    Demolition
                                CMAP 503007    Construction of Water
                                               Purification or Treatment
                                               Plants
                                CMAP 503009    Drilling Water Wells
                                CMAP 503010    Construction Activities, Not
                                               Elsewhere Classified

            Type of             National Treatment (Article 1102)
            Reservation:

                           Annex I - Mexico                                 

            Level of            Federal
            Government:

            Measures:           Ley para Promover la Inversi n Mexicana y
                                Regular la Inversi n Extranjera, Cap tulos I,
                                II, III, V, VI

                                Reglamento de la Ley para Promover la
                                Inversi n Mexicana y Regular la Inversi n
                                Extranjera, T tulo I; T tulo II, Cap tulo I;
                                T tulo IV; T tulo V; T tulo VIII, Cap tulos
                                I, II, III, V; T tulo IX, Cap tulo I

            Description:        Investment

                                Prior approval of the Comisi n Nacional de
                                Inversiones Extranjeras is required for
                                investors of another Party or their
                                investments to own, directly or indirectly,
                                more than 49 percent of the ownership
                                interest in an enterprise established or to
                                be established in the territory of Mexico
                                that performs construction activities as set
                                out in the Industry Classification element.

            Phase-Out:          Subject to Schedule of Mexico, Annex I, page
                                I-M-4, five years after the date of entry
                                into force of this Agreement, investors of
                                another Party and their investments may own
                                100 percent of the ownership interest in an
                                enterprise established or to be established
                                in the territory of Mexico without prior
                                approval of the Comisi n Nacional de
                                Inversiones Extranjeras.

                              Annex I - Mexico                              

            Sector:             Construction

            Sub-Sector:

            Industry            CMAP 501322    Construction of Means for the
            Classification:                    Transportation of Petroleum
                                               and its   Derivatives (limited
                                               to specialized contractors
                                               only)
                                CMAP 503008    Petroleum and Gas, Exploration
                                               and Drilling Works and
                                               Services (limited to
                                               specialized contractors only)

            Type of             National Treatment (Article 1102)
            Reservation:
            Level of            Federal
            Government:
            Measures:           Constituci n Pol tica de los Estados Unidos
                                Mexicanos, Art culo 27

                                Ley Reglamentaria del Art culo 27
                                Constitucional en el Ramo del Petr leo 

                                Ley para Promover la Inversi n Mexicana y
                                Regular la Inversi n Extranjera, Cap tulos I,
                                II, III, V, VI

                                Reglamento de la Ley Reglamentaria del
                                Art culo 27 Constitucional en el Ramo del
                                Petr leo , Cap tulos I, V, IX, XII

                                Reglamento de la Ley para Promover la
                                Inversi n Mexicana y Regular la Inversi n
                                Extranjera, T tulo I; T tulo II, Cap tulo I;
                                T tulo IV; T tulo V; T tulo VIII, Cap tulos
                                I, II, III, V; T tulo IX, Cap tulo I

            Description:        Investment

                                Risk-sharing contracts are prohibited.

                                Prior approval of the Comisi n Nacional de
                                Inversiones Extranjeras is required for
                                investors of another Party or their
                                investments to own, directly or indirectly,


                              Annex I - Mexico                              

                                more than 49 percent of the ownership
                                interest in an enterprise established or to
                                be established in the territory of Mexico
                                involved in "non-risk sharing" contracts for
                                the exploration and drilling works of
                                petroleum and gas wells and the construction
                                of means for the transportation of petroleum
                                and its derivatives.  See also Schedule of
                                Mexico, Annex III, page III-M-1.

            Phase-Out:          None

                          Annex I - Mexico                                  
  
            Sector:             Educational Services

            Sub-Sector:         Private Schools

            Industry            CMAP 921101    Private Preschool Educational
            Classification:                    Services
                                CMAP 921102    Private Primary School
                                               Educational Services
                                CMAP 921103    Private Secondary School
                                               Educational Services
                                CMAP 921104    Private Middle High
                                               (Preparatory) School
                                               Educational Services
                                CMAP 921105    Private Higher School
                                               Educational Services
                                CMAP 921106    Private Educational Services
                                               that Combine Preschool,
                                               Primary, Secondary, Middle
                                               High and Higher School
                                               Instruction

            Type of             National Treatment (Article 1102)
            Reservation:
            Level of            Federal
            Government:
            Measures:           Ley para Promover la Inversi n Mexicana y
                                Regular la Inversi n Extranjera, Cap tulos I,
                                II, III, V, VI

                                Ley para la Coordinaci n de la Educaci n
                                Superior, Cap tulo II

                                Ley Federal de Educaci n, Cap tulo III

                                Reglamento de la Ley para Promover la
                                Inversi n Mexicana y Regular la Inversi n
                                Extranjera, T tulo I; T tulo II, Cap tulo I;
                                T tulo IV; T tulo V; T tulo VIII, Cap tulos
                                I, II, III, V; T tulo IX, Cap tulo I

            Description:        Investment

                                Prior approval of the Comisi n Nacional de
                                Inversiones Extranjeras is required for
                                investors of another Party or their
                                investments to own, directly or indirectly,

                                Annex I - Mexico                            

                                more than 49 percent of the ownership
                                interest in an enterprise established or to
                                be established in the territory of Mexico
                                that provides preschool, primary, secondary,
                                preparatory, higher, worker or peasant, or
                                "normal" educational services.

            Phase-Out:          None

                              Annex I - Mexico                              

            Sector:             Energy

            Sub-Sector:         Petroleum Products

            Industry            CMAP 623050    Retail Sales of Liquified
            Classification:                    Petroleum Gas (LPG)

            Type of             National Treatment (Article 1102)
            Reservation:
            Level of            Federal
            Government:
            Measures:           Ley Reglamentaria del Art culo 27
                                Constitucional en el Ramo del Petr leo 

                                Ley para Promover la Inversi n Mexicana y
                                Regular la Inversi n Extranjera, Cap tulos I,
                                II, III, V, VI

                                Reglamento de la Ley Reglamentaria del
                                Art culo 27 Constitucional en el Ramo del
                                Petr leo, Cap tulos I, IX, XII

                                Reglamento de la Distribuci n de Gas,
                                Cap tulos I, II

                                Reglamento de la Ley para Promover la
                                Inversi n Mexicana y Regular la Inversi n
                                Extranjera, T tulo I; T tulo II, Cap tulo I;
                                T tulo IV; T tulo V; T tulo VIII, Cap tulos
                                I, II, III, V; T tulo IX, Cap tulo I

            Description:        Investment

                                Only Mexican nationals and Mexican
                                enterprises with a foreigners' exclusion
                                clause may engage in the distribution,
                                transportation, storage, or sale of liquified
                                petroleum gas and the installation of fixed
                                deposits.

            Phase-Out:          None

           
            Sector:             Energy

                              Annex I - Mexico                              

            Sub-Sector:         Petroleum Products 

            Industry            CMAP 626000    Retail Outlets of Gasoline and
            Classification:                    Diesel (including lubricants,
                                               oils and additives for resale
                                               in these retail outlets)

            Type of             National Treatment (Article 1102)
            Reservation:
            Level of            Federal
            Government:
            Measures:           Ley para Promover la Inversi n Mexicana y
                                Regular la Inversi n Extranjera, Cap tulos I,
                                II, III, V, VI

                                Reglamento de la Ley para Promover la
                                Inversi n Mexicana y Regular la Inversi n
                                Extranjera, T tulo I; T tulo II, Cap tulo I;
                                T tulo IV; T tulo V; T tulo VIII, Cap tulos
                                I, II, III, V; T tulo IX, Cap tulo I

                                Reglamento de la Ley Reglamentaria del
                                Art culo 27 Constitucional en el Ramo del
                                Petr leo, Cap tulos I, II, III, V, VII, IX,
                                XII

                                As qualified by the Description element

            Description:        Investment

                                Only Mexican nationals and Mexican
                                enterprises with a foreigners' exclusion
                                clause may acquire, establish or operate
                                retail outlets engaged in the sale or
                                distribution of gasoline, diesel, lubricants,
                                oils or additives.

            Phase-Out:          None

                            Annex I - Mexico                                

            Sector:             Fishing 

            Sub-Sector:

            Industry            CMAP 130011    Fishing on the High Seas
            Classification:     CMAP 130012    Coastal Fishing
                                CMAP 130013    Fresh Water Fishing

            Type of             National Treatment (Article 1102)
            Reservation:        Most-Favored-Nation Treatment (Article 1103)

            Level of            Federal
            Government:
            Measures:           Ley de Pesca, Cap tulos I, II, IV

                                Ley de Navegaci n y Comercio Mar timos, Libro
                                II, T tulo Unico, Cap tulo V

                                Ley Federal del Mar, T tulo I, Cap tulo I

                                Ley Federal de Aguas 

                                Ley para Promover la Inversi n Mexicana y
                                Regular la Inversi n Extranjera, Cap tulos I,
                                II, III, V, VI

                                Reglamento de la Ley para Promover la
                                Inversi n Mexicana y Regular la Inversi n
                                Extranjera, T tulo I; T tulo II, Cap tulo I;
                                T tulo IV; T tulo V; T tulo VIII, Cap tulos
                                I, II, III, V; T tulo IX, Cap tulo I

                                Reglamento de la Ley de Pesca, Cap tulos I,
                                II, III, V, VI, IX, XV

            Description:        Investment

                                With respect to an enterprise established or
                                to be established in the territory of Mexico
                                performing coastal fishing, fresh water
                                fishing and fishing in the exclusive economic
                                zone, investors of another Party or their
                                investments may only own, directly or
                                indirectly, up to 49 percent of the ownership
                                interest in such an enterprise.

                              Annex I - Mexico                              

                                With respect to an enterprise established or
                                to be established in the territory of Mexico
                                performing fishing on the high seas, prior
                                approval of the Comisi n Nacional de
                                Inversiones Extranjeras is required for
                                investors of another Party or their
                                investments to own, directly or indirectly,
                                more than 49 percent of the ownership
                                interest in such an enterprise.

            Phase-Out:          None

                              Annex I - Mexico                              

            Sector:             Manufacturing and Assembly of Goods

            Sub-Sector:         Auto Parts Industry

            Industry            CMAP 383103    Manufacturing of Parts and
            Classification:                    Accessories for Electrical
                                               Automotive Systems
                                CMAP 384121    Manufacture and Assembly of
                                               Car and Truck Bodies and Tows
                                CMAP 384122    Manufacture of Car and Truck
                                               Motors and their Parts
                                CMAP 384123    Manufacture of Car and Truck
                                               Transmission System Parts
                                CMAP 384124    Manufacture of Car and Truck
                                               Suspension System Parts
                                CMAP 384125    Manufacture of Car and Truck
                                               Brake System Parts and
                                               Accessories
                                CMAP 384126    Manufacture of Other Car and
                                               Truck Parts and Accessories

            Type of             National Treatment (Article 1102)
            Reservation:

            Level of            Federal
            Government:
            Measures:           Ley para Promover la Inversi n Mexicana y
                                Regular la Inversi n Extranjera, Cap tulos I,
                                II, III, V, VI

                                Reglamento de la Ley para Promover la
                                Inversi n Mexicana y Regular la Inversi n
                                Extranjera, T tulo I; T tulo II, Cap tulo I;
                                T tulo IV; T tulo V; T tulo VIII, Cap tulos
                                I, II, III, V; T tulo IX, Cap tulo I 

                                Decreto para el Fomento y Modernizaci n de la
                                Industria Automotriz  ("Auto Decree")

                                Acuerdo que Determina Reglas para la
                                Aplicaci n del Decreto para el Fomento y
                                Modernizaci n de la Industria Automotriz

                                As qualified by the Description element
            Description:        Investment

                            Annex I - Mexico                                

                                1.   Investors of another Party or their
                                investments may only own, directly or
                                indirectly, up to 49 percent of the ownership
                                interest in an "enterprise of the autoparts
                                industry", as defined in Annex 300-A,
                                established or to be established in the
                                territory of Mexico.

                                2.   Investors of another Party or their
                                investments that qualify as "national
                                suppliers", as defined in Annex 300-A, may
                                own 100 percent of the ownership interest in
                                an enterprise established or to be
                                established in the territory of Mexico and
                                that engages in the supply of specified
                                autoparts to producers of motor vehicles.

                                3.   Investors of another Party or their
                                investments may own up to 100 percent of the
                                ownership interest in an enterprise producing
                                autoparts established or to be established in
                                the territory of Mexico, provided that the
                                enterprise does not register with the
                                Secretar a de Comercio y Fomento Industrial
                                for purposes of the Auto Decree nor receive
                                benefits under the Auto Decree.  After the
                                five-year transition period set out in the
                                Phase-Out element, such firms shall be
                                eligible to register or to receive benefits
                                set forth in the Auto Decree as modified by
                                Appendix 300-A.2 provided that such
                                enterprise meets the requirements set out
                                therein for national supplier or "enterprise
                                of the autoparts industry" status.

            Phase-Out:          Five years after the date of entry into force
                                of this Agreement, investors of another Party
                                or their investments may own 100 percent of
                                the ownership interest in any enterprise of
                                the autoparts industry established or to be
                                established in the territory of Mexico.

                                See Schedule of Mexico, Annex I, page I-M-33.

                             Annex I - Mexico                               

            Sector:             Manufacture of Goods

            Sub-Sector:         Automotive Industry

            Industry            CMAP 383103    Manufacturing of Parts and
            Classification:                    Accessories for Electrical
                                               Automotive Systems
                                CMAP 3841      Automotive Industry
                                CMAP 384121    Manufacture and Assembly of
                                               Car and Truck Bodies and Tows
                                CMAP 384122    Manufacture of Car and Truck
                                               Motors and their Parts
                                CMAP 384123    Manufacture of Car and Truck
                                               Transmission System Parts
                                CMAP 384124    Manufacture of Car and Truck
                                               Suspension System Parts
                                CMAP 384125    Manufacture of Car and Truck
                                               Brake System Parts and
                                               Accessories
                                CMAP 384126    Manufacture of Other Car and
                                               Truck Parts and Accessories

            Type of             Performance Requirements (Article 1106)
            Reservation:
            Level of            Federal
            Government:
            Measures:           Decreto para el Fomento y Modernizaci n de la
                                Industria Automotriz ("Auto Decree")

                                Acuerdo que Determina Reglas para la
                                Aplicaci n del Decreto para el Fomento y
                                Modernizaci n de la Industria Automotriz

                                As qualified by Description element

            Description:        Investment

                                As set out in Annex 300-A

            Phase-Out:          As set out in Annex 300-A 

            Sector:             Manufacture of Goods

            Sub-Sector:         Maquiladora Industry

            Industry

                             Annex I - Mexico                               


            Classification:
            Type of             Performance Requirements (Article 1106)
            Reservation:
            Level of            Federal
            Government:
            Measures:           Ley Aduanera, T tulo IV, Cap tulos I, III;
                                T tulo V, Cap tulo II; T tulo VI

                                Decreto para el Fomento y Operaci n de la
                                Industria Maquiladora de Exportaci n
                                ("Maquiladora Decree")

                                As qualified by the Description element

            Description:        Investment

                                Persons authorized by the Secretar a de
                                Comercio y Fomento Industrial to operate
                                under the Maquiladora Decree may not sell to
                                the domestic market more than 55 percent of
                                the total value of their annual exports in
                                the previous year. 

            Phase-Out:          Sales of a maquiladora to the domestic market
                                may not exceed:

                                (a)  one year after the date of entry into
                                     force of this Agreement, 60 percent of
                                     the total value of its annual exports in
                                     the previous year;

                                (b)  two years after the date of entry into
                                     force of this Agreement, 65 percent of
                                     the total value of its annual exports in
                                     the previous year;

                                (c)  three years after the date of entry into
                                     force of this Agreement, 70 percent of
                                     the total value of its annual exports in
                                     the previous year;

                                (d)  four years after the date of entry into
                                     force of this Agreement, 75 percent of
                                     the total value of its annual exports in
                                     the previous year;

                             Annex I - Mexico                               


                                (e)  five years after the date of entry into
                                     force of this Agreement, 80 percent of
                                     the total value of its annual exports in
                                     the previous year; and

                                (f)  six years after the date of entry into
                                     force of this Agreement, 85 percent of
                                     the total value of its annual exports in
                                     the previous year.

                                Seven years after the date of entry into
                                force of this Agreement, sales of a
                                maquiladora to the domestic market will not
                                be subject to any percentage requirement.

                        Annex I - Mexico                                    

            Sector:             Manufacture of Goods

            Sub-Sector:

            Industry
            Classification:
            Type of             Performance Requirements (Article 1106)
            Reservation:
            Level of            Federal
            Government:
            Measures:           Ley Reglamentaria del Art culo 131 de la
                                Constituci n Pol tica de los Estados Unidos
                                Mexicanos en Materia de Comercio Exterior,
                                Cap tulo I

                                Decreto para el Fomento y Operaci n de las
                                Empresas Altamente Exportadoras, ("ALTEX
                                Decree")

            Description:        Investment

                                1.   "Direct exporters", as defined in the
                                ALTEX Decree,  authorized by the Secretar a
                                de Comercio y Fomento Industrial to operate
                                under that decree must export at least 40
                                percent of their total sales or US$2,000,000.

                                2.   "Indirect exporters", as defined in
                                ALTEX Decree, authorized by the Secretar a de
                                Comercio y Fomento Industrial to operate
                                under that decree must export at least 50
                                percent of their total sales.

            Phase-Out:          Seven years after the date of entry into
                                force of this Agreement, "direct and indirect
                                exporters" will not be subject to the
                                percentage requirements set out in the
                                Description element.

                             Annex I - Mexico                               

            Sector:             Manufacture of Goods

            Sub-Sector:

            Industry
            Classification:
            Type of             Performance Requirements (Article 1106)
            Reservation:
            Level of            Federal
            Government:
            Measures:           Ley Reglamentaria del Art culo 131 de la
                                Constituci n Pol tica de los Estados Unidos
                                Mexicanos en Materia de Comercio Exterior,
                                Cap tulo I

                                Ley Aduanera, T tulo III, Cap tulo IV; T tulo
                                IV, Cap tulos I, III

                                Decreto que Establece Programas de
                                Importaci n Temporal para Producir Art culos
                                de Exportaci n, ("PITEX Decree")

            Description:        Investment

                                Persons authorized by the Secretar a de
                                Comercio y Fomento Industrial to operate
                                under the PITEX Decree are required to export
                                at least:

                                (a)  30 percent of their total production in
                                     order to be permitted to temporarily
                                     import duty-free 

                                     (i)  machinery, equipment, instruments,
                                          molds and durable tools used in the
                                          manufacturing process, and
                                          equipment used to handle materials
                                          directly related to the exportation
                                          of goods, and

                                     (ii) devices, equipment, accessories or
                                          other items related to the
                                          production of exported goods,
                                          including those used for research,
                                          industrial security, quality
                                          control, communication, training of

                                    Annex I - Mexico                        

                                          personnel, informatics and
                                          environmental purposes; and 

                                (b)  10 percent of their total production or
                                     US$500,000 in order to be permitted to
                                     temporarily import duty-free

                                     (i)  raw materials, parts and components
                                          totally used in the production of
                                          exported goods,

                                     (ii) packages, bottles, containers and
                                          trailer's containers which are
                                          totally used to contain exported
                                          goods, and

                                     (iii)     fuel, lubricants, auxiliary
                                               materials, reparation tools
                                               and equipment consumed in the
                                               production of exported goods.

            Phase-Out:          Seven years after the date of entry into
                                force of this Agreement, such persons will
                                not be subject to the percentage requirements
                                set out in the Description element.

                           Annex I - Mexico                                 

            Sector:             Manufacture of Goods

            Sub-Sector:         Artificial Explosives, Fireworks, Firearms
                                and Cartridges

            Industry            CMAP 352236    Manufacturing of Artificial
            Classification:                    Explosives and Fireworks
                                CMAP 382208    Manufacturing of Firearms and
                                               Cartridges

            Type of             National Treatment (Article 1102)
            Reservation:        Senior Management and Boards of Directors
                                (Article 1107)

            Level of            Federal
            Government:
            Measures:           Ley Federal de Armas de Fuego y Explosivos,
                                T tulo III, Cap tulo I

                                Ley para Promover la Inversi n Mexicana y
                                Regular la Inversi n Extranjera, Cap tulos I,
                                II, III, V, VI 

                                Reglamento de la Ley Federal de Armas de
                                Fuego y Explosivos, Cap tulo IV

                                Reglamento de la Ley Para Promover la
                                Inversi n Mexicana y Regular la Inversi n
                                Extranjera, T tulo I; T tulo II, Cap tulo I,
                                T tulo IV; T tulo V; T tulo VIII, Cap tulos
                                I, II, III, V; T tulo IX, Cap tulo I 

            Description:        Investment

                                Investors of another Party or their
                                investments may only own, directly or
                                indirectly, up to 49 percent of the ownership
                                interest in an enterprise established or to
                                be established in the territory of Mexico
                                that manufactures artificial explosives and
                                fireworks, firearms, cartridges and
                                ammunition.

                                No foreign national may appoint or be
                                appointed a member of the board of directors
                                or an officer of such an enterprise.

            Phase-Out:          None

                             Annex I - Mexico                               

            Sector:             Mining

            Sub-Sector:         Extraction and Exploitation of Minerals

            Industry            CMAP 210000    Exploitation of Mineral Carbon
            Classification:
                                CMAP 231000    Extraction of Minerals
                                               Containing Iron
                                CMAP 232001    Extraction of Minerals
                                               Containing Gold, Silver and
                                               other Precious Minerals and
                                               Metals
                                CMAP 232002    Extraction of Mercury and
                                               Antimony
                                CMAP 232003    Extraction of Industrial
                                               Minerals Containing Lead and
                                               Zinc
                                CMAP 232004    Extraction of Minerals
                                               Containing Copper
                                CMAP 232006    Extraction of other Metallic
                                               Minerals not containing Iron
                                CMAP 291001    Extraction of Sand and Gravel
                                CMAP 291002    Extraction of Marble  and
                                               other Gravels for Construction


                                CMAP 291003    Exploitation of Feldspar
                                CMAP 291004    Extraction of Kaolin, Clay and
                                               Refractory Minerals
                                CMAP 291005    Extraction of Limestones
                                CMAP 291006    Exploitation of Gypsum
                                CMAP 292001    Extraction of Barium Oxide
                                CMAP 292002    Extraction of Phosphoric Rock
                                CMAP 292003    Extraction of Fluorite
                                CMAP 292004    Extraction of Sulphur
                                CMAP 292005    Extraction of other Minerals
                                               in order to Obtain Chemicals
                                CMAP 292006    Extraction of Salt
                                CMAP 292007    Extraction of Graphite
                                CMAP 292008    Extraction of other Non-
                                               Metallic Minerals

            Type of             National Treatment (Article 1102)
            Reservation:
            Level of            Federal
            Government:
            Measures:           Ley Minera, Cap tulos I, II


                           Annex I - Mexico                                 

                                Ley para Promover la Inversi n Mexicana y
                                Regular la Inversi n Extranjera, Cap tulos I,
                                II, III, V, VI

                                Reglamento de la Ley Minera

                                Reglamento de la Ley para Promover la
                                Inversi n Mexicana y Regular la Inversi n
                                Extranjera, T tulo I; T tulo II, Cap tulo I,
                                T tulo IV; T tulo V; T tulo VIII; T tulo IX,
                                Cap tulo I

                                As qualified by the Description element

            Description:        Investment

                                Prior approval of the Comisi n Nacional de
                                Inversiones Extranjeras is required for
                                investors of another Party or their
                                investments to own, directly or indirectly,
                                more than 49 percent of the ownership
                                interest in an enterprise established or to
                                be established in the territory of Mexico
                                engaged in the extraction or exploitation of
                                any mineral.

            Phase-Out:          Subject to Schedule of Mexico, Annex I, page
                                I-M-4, five years after the date of entry
                                into force of this Agreement, investors of
                                another Party or their investments may own
                                100 percent of the ownership interest in an
                                enterprise established or to be established
                                in the territory of Mexico engaged in
                                extraction or exploitation of any mineral,
                                without the prior approval of the Comisi n
                                Nacional de Inversiones Extranjeras.

                            Annex I - Mexico                                

            Sector:             Printing, Editing and Associated Industries

            Sub-Sector:         Newspaper Publishing

            Industry            CMAP 342001    Newspaper Publishing 
            Classification:
            Type of             National Treatment (Article 1102)
            Reservation:
            Level of            Federal
            Government:
            Measures:           Ley para Promover la Inversi n Mexicana y
                                Regular la Inversi n Extranjera, Cap tulos I,
                                II, III, V, VI

                                Reglamento de la Ley para Promover la
                                Inversi n Mexicana y Regular la Inversi n
                                Extranjera, T tulo I; T tulo II, Cap tulo I;
                                T tulo IV; T tulo V; T tulo VIII, Cap tulos
                                I, II, III, V; T tulo IX, Cap tulo I

                                As qualified by the Description element

            Description:        Investment

                                Investors of another Party or their
                                investments may own, directly or indirectly,
                                100 percent of the ownership interest in an
                                enterprise established or to be established
                                in the territory of Mexico engaged in the
                                simultaneous printing and distribution in the
                                territory of Mexico of a daily newspaper that
                                is published outside of the territory of
                                Mexico.

                                Investors of another Party or their
                                investments may only own, directly or
                                indirectly, up to 49 percent of the ownership
                                interest in an enterprise established or to
                                be established in the territory of Mexico
                                engaged in the printing or publication of
                                daily newspapers written primarily for a
                                Mexican audience and distributed in the
                                territory of Mexico.

                                For purposes of this reservation, daily
                                newspapers are those published at least five
                                days a week.

            Phase-Out:          None

                              Annex I - Mexico                              

            Sector:             Professional, Technical and Specialized
                                Services 

            Sub-Sector:         Medical Doctors

            Industry            CMAP 9231 Private Medical, Odontological and
            Classification:               Veterinary Services (limited to
                                          medical and odontological services)

            Type of             National Treatment (Article 1202)
            Reservation:
            Level of            Federal 
            Government:
            Measures:           Ley Federal del Trabajo, Cap tulo I

            Description:        Cross-Border Services

                                Only Mexican nationals licensed as doctors in
                                the territory of Mexico may provide in-house
                                medical services in Mexican enterprises.

            Phase-Out:          None

                          Annex I - Mexico                                  

            Sector:             Professional, Technical and Specialized
                                Services 

            Sub-Sector:         Specialized Personnel

            Industry            CMAP 951012    Customs Brokers and
            Classification:                    Representation Agency Services
                                               (limited to shippers' export
                                               declarations)

            Type of             National Treatment (Article 1202)
            Reservation:
            Level of            Federal
            Government:
            Measures:           Ley Aduanera, T tulo IX, Cap tulo Unico

            Description:        Cross-Border Services

                                A shipper's export declaration must be
                                processed by a Mexican national licensed as
a
                                customs broker ("agente aduanal") or by a
                                representative ("apoderado aduanal") employed
                                by the exporter and authorized by the
                                Secretar a de Hacienda y Cr dito P blico for
                                this purpose.

            Phase-Out:          None.  Subject to discussion by the Parties
                                five years after the date of entry into force
                                of this Agreement.

                             Annex I - Mexico                               

            Sector:             Professional, Technical and Specialized
                                Services

            Sub-Sector:         Professional Services

            Industry            CMAP 9510 Professional, Technical and
            Classification:               Specialized Services (limited to
                                          professional services)

            Type of             National Treatment (Article 1202)
            Reservation:        Local Presence (Article 1205)

            Level of            Federal and State
            Government:
            Measures:           Ley Reglamentaria del Art culo 5o. 
                                Constitucional, Relativo al Ejercicio de las
                                Profesiones en el Distrito Federal, Cap tulo
                                III, Secci n Tercera, Cap tulos IV, V

                                Ley General de Poblaci n,T tulo III, Cap tulo
                                III

                                Reglamento de la Ley Reglamentaria del
                                Art culo 5o. Constitucional, relativo al
                                Ejercicio de las Profesiones en el Distrito
                                Federal, Cap tulo III

            Description:        Cross-Border Services

                                Only Mexican nationals may be licensed in
                                professions that require a professional
                                license ("c dula profesional").

                                An "inmigrado" or an "inmigrante" may seek a
                                judicial order to obtain such a license.

            Phase-Out:          Citizenship and permanent residency
                                requirements are subject to removal within
                                two years of the date of entry into force of
                                this Agreement in accordance with Article
                                1210(3).  On removal of these requirements,
a
                                foreign professional will be required to have
                                an address in Mexico.

                                With respect to legal services, see Schedule
                                of Mexico, Annex I, page I-M-46, Schedule of
                                Mexico Annex II, page II-M-10, and Schedule
                                of Mexico, Annex VI, page VI-M-2.

                         Annex I - Mexico                                   

            Sector:             Professional, Technical and Specialized
                                Services 

            Sub-Sector:         Professional Services

            Industry            CMAP 951002    Legal Services (including
            Classification:                    foreign legal consultancy)

            Type of             National Treatment (Articles 1102, 1202)
            Reservation:        Most-Favored-Nation Treatment (Articles 1103,
                                1203)
                                Local Presence (Article 1205)

            Level of            Federal 
            Government:
            Measures:           Ley Reglamentaria del Art culo 5o. 
                                Constitucional, Relativo al Ejercicio de las
                                Profesiones en el Distrito Federal, Cap tulo
                                I, Cap tulo III, Secci n III

                                Ley para Promover la Inversi n Mexicana y
                                Regular la Inversi n Extranjera, Cap tulos I,
                                II, III, V, VI

                                Reglamento de la Ley Reglamentaria del
                                Art culo 5o. Constitucional, relativo al
                                Ejercicio de las Profesiones en el Distrito
                                Federal, Cap tulos I, II, V

                                Reglamento de la Ley para Promover la
                                Inversi n Mexicana y Regular la Inversi n
                                Extranjera, T tulo I; T tulo II, Cap tulo I;
                                T tulo IV; T tulo V; T tulo VIII, Cap tulos
                                I, II, III, V; T tulo IX, Cap tulo I

                                As qualified by the Description element

            Description:        Cross Border Services and Investment

                                Except as provided for in this reservation,
                                only lawyers licensed in Mexico may have an
                                ownership interest in a law firm established
                                in the territory of Mexico. 

                             Annex I - Mexico                               

                                Lawyers licensed in a Canadian province that
                                permits partnerships between those lawyers
                                and lawyers licensed in Mexico will be
                                permitted to form partnerships with lawyers
                                licensed in Mexico.

                                The number of lawyers licensed in Canada
                                serving as partners, and their ownership
                                interest in the partnership, may not exceed
                                the number of lawyers licensed in Mexico
                                serving as partners, and their ownership
                                interest in the partnership.  A lawyer
                                licensed in Canada may not practice or advise
                                on Mexican law.

                                A law firm established by a partnership of
                                lawyers licensed in Canada and lawyers
                                licensed in Mexico may hire lawyers licensed
                                in Mexico as employees.

                                Lawyers licensed in Canada will be subject to
                                Schedule of Mexico, Annex VI, page VI-M-2.

                                Lawyers licensed in the United States will be
                                subject to Schedule of Mexico, Annex II, page
                                II-M-10 and Schedule of Mexico, Annex VI,
                                page VI-M-2.

            Phase-Out:          None

                            Annex I - Mexico                                

            Sector:             Professional, Technical and Specialized
                                Services 

            Sub-Sector:         Professional Services

            Industry            CMAP 951003    Accounting and Auditing
            Classification:                    Services (limited to
                                               accounting services)

            Type of             National Treatment (Article 1202)
            Reservation:        Local Presence (Article 1205)

            Level of            Federal
            Government:
            Measures:           C digo Fiscal de la Federaci n, T tulo III

                                Reglamento del C digo Fiscal de la
                                Federaci n, Cap tulo II

            Description:        Cross-Border Services

                                Only Mexican nationals who are licensed as
                                accountants in Mexico are authorized to
                                perform audits for tax purposes on behalf of:

                                (a)  state enterprises;

                                (b)  enterprises that are authorized to
                                     receive tax-deductible donations;

                                (c)  enterprises with income, capital stock,
                                     number of employees and operations above
                                     levels specified annually by the
                                     Secretar a de Hacienda y Cr dito
                                     P blico; or

                                (d)  enterprises undergoing a merger or
                                     divestiture.

            Phase-Out:          Citizenship and permanent residency
                                requirements are subject to removal within
                                two years of the date of entry into force of
                                this Agreement in accordance with Article
                                1210(3).  On removal of these requirements,
a
                                foreign professional will be required to have
                                an address in Mexico.

                            Annex I - Mexico                                

            Sector:             Professional, Technical and Specialized
                                Services 

            Sub-Sector:         Specialized Services (Commercial Public
                                Notaries) 

            Industry
            Classification:
            Type of             National Treatment (Articles 1102, 1202)
            Reservation:        Local Presence (Article 1205)

            Level of            Federal 
            Government:
            Measures:           C digo de Comercio, Libro I, T tulo III

                                Ley para Promover la Inversi n Mexicana y
                                Regular la Inversi n Extranjera, Cap tulos I,
                                II, III, V, VI

                                Reglamento de la Ley para Promover la
                                Inversi n Mexicana y 
                                Regular la Inversi n Extranjera, T tulo I;
                                T tulo II, Cap tulo I; T tulo IV; T tulo V;
                                T tulo VIII, Cap tulos I, II, III, V; T tulo
                                II, Cap tulo I

            Description:        Cross-Border Services and Investment

                                1.   Only a Mexican national by birth may be
                                licensed to be a commercial public notary
                                ("corredor p blico").

                                2.   A commercial public notary may not have
                                a business affiliation with any person for
                                the provision of commercial public notary
                                services.

            Phase-Out:          1.   Citizenship and permanent residency
                                requirements are subject to removal within
                                two years of the date of entry into force of
                                this Agreement in accordance with Article
                                1210(3).  On removal of these requirements,
a
                                foreign professional will be required to have
                                an address in Mexico.

                                2.   None

                         Annex I - Mexico                                   
      
            Sector:             Professional, Technical and Specialized
                                Services 

            Sub-Sector:         Specialized Services

            Industry            CMAP 951001    Public Notary 
            Classification:
            Type of             National Treatment (Articles 1102, 1202)
            Reservation:        Local Presence (Article 1205)

            Level of            Federal and State
            Government:
            Measures:           Ley para Promover la Inversi n Mexicana y
                                Regular la Inversi n Extranjera, Cap tulos I,
                                II, III, V, VI

                                Leyes del Notariado para los Estados de:
                                Aguascalientes, Baja California, Baja
                                California Sur, Campeche, Coahuila, Colima,
                                Chiapas, Chihuahua, Distrito Federal,
                                Durango, Guanajuato, Guerrero, Hidalgo,
                                Jalisco, M xico, Michoac n, Morelos, Nayarit,
                                Nuevo Le n, Oaxaca, Puebla, Quer taro,
                                Quintana Roo, San Luis Potos , Sonora,
                                Tabasco, Tamaulipas, Tlaxcala, Veracruz,
                                Yucat n and Zacatecas.

                                Reglamento de la Ley para Promover la
                                Inversi n Mexicana y Regular la Inversi n
                                Extranjera, T tulo I; T tulo II, Cap tulo I;
                                T tulo IV; T tulo V; T tulo VIII, Cap tulos
                                I, II, III, V; T tulo IX, Cap tulo I 

            Description:        Cross-Border Services and Investment

                                Only Mexican nationals by birth may be
                                granted a fiat ("patente") to be public
                                notaries ("notarios p blicos").

                                A public notary may not have a business
                                affiliation with any person for the provision
                                of public notary services.

            Phase-Out:          None


                             Annex I - Mexico                               

            Sector:             Professional, Technical and Specialized
                                Services

            Sub-Sector:         Professional Services

            Industry            CMAP 951023    Other Professional Services
            Classification:                    (limited to private veterinary
                                               services)

            Type of             National Treatment (Article 1202)
            Reservation:
            Level of            Federal
            Government:
            Measures:           Ley de Sanidad Fitopecuaria de los Estados
                                Unidos Mexicanos, T tulo II, Cap tulo IV

                                Reglamento de Control de Productos
                                Qu mico-Farmac uticos, Biol gicos,
                                Alimenticios, Equipos y Servicios para
                                Animales, Cap tulos IV, V

            Description:        Cross-Border Services

                                For enterprises that manage chemical,
                                pharmaceutical and biological goods for
                                application to animals, only a Mexican
                                national may be: 

                                (a)  a veterinarian responsible for
                                     management of such goods; or 

                                (b)  a licensed professional responsible for
                                     laboratories of such enterprises.

            Phase-Out:          Citizenship and permanent residency
                                requirements are subject to removal within
                                two years of the date of entry into force of
                                this Agreement in accordance with Article
                                1210(3).  On removal of these requirements,
a
                                foreign professional will be required to have
                                an address in Mexico.

                            Annex I - Mexico                                

            Sector:             Retail Commerce

            Sub-Sector:         Sale of Non-Food Products in Specialized
                                Establishments

            Industry            CMAP 623087    Sale of Firearms, Cartridges
            Classification:                    and Ammunition
                                CMAP 612024    Wholesale Commerce, Not
                                               Elsewhere Classified (limited
                                               to firearms, cartridges and
                                               ammunition)

            Type of             National Treatment (Article 1102)
            Reservation:        Senior Management and Boards of Directors
                                (Article 1107)

            Level of            Federal
            Government:
            Measures:           Ley Federal de Armas de Fuego y Explosivos,
                                T tulo III, Cap tulo I

                                Ley para Promover la Inversi n Mexicana y
                                Regular la Inversi n Extranjera, Cap tulos I,
                                II, III, V, VI

                                Reglamento de la Ley Federal de Armas de
                                Fuego y Explosivos, Cap tulo IV

                                Reglamento de la Ley para Promover la
                                Inversi n Mexicana y Regular la Inversi n
                                Extranjera, T tulo I; T tulo II, Cap tulo I;
                                T tulo IV; T tulo V; T tulo VIII, Cap tulos
                                I, II, III, V; T tulo IX, Cap tulo I 

            Description:        Investment

                                Investors of another Party or their
                                investments may only own, directly or
                                indirectly, up to 49 percent of the ownership
                                interest in an enterprise established or to
                                be established in the territory of Mexico
                                that sells firearms, cartridges and
                                ammunition.

                                No foreign national may appoint or be
                                appointed a member of the board of directors
                                or managing officer of such an enterprise.

            Phase-Out:          None     I-M-55

                             Annex I - Mexico                               

            Sector:             Religious Services

            Sub-Sector:

            Industry            CMAP 929001    Religious Services
            Classification:
            Type of             Local Presence (Article 1205)
            Reservation:        Senior Management and Boards of Directors
                                (Article 1107)

            Level of            Federal
            Government:
            Measures:           Ley de Asociaciones Religiosas y Culto
                                Privado, T tulo II, Cap tulos I, II

            Description:        Cross-Border Services

                                Religious associations must be associations
                                constituted in accordance with the Ley de
                                Asociaciones Religiosas y Cultos Privados.

                                Investment

                                Representatives of religious associations in
                                Mexico must be Mexican nationals.

            Phase-Out:          None

                             Annex I - Mexico                               

            Sector:             Services to Agriculture 

            Sub-Sector:

            Industry            CMAP 971010    Supply of Agricultural
            Classification:                    Services

            Type of             National Treatment (Article 1202)
            Reservation:        Local Presence (Article 1205)

            Level of            Federal
            Government:
            Measures:           Constituci n Pol tica de los Estados Unidos
                                Mexicanos, Art culo 32 

                                Ley de Sanidad Fitopecuaria de los Estados
                                Unidos Mexicanos, T tulo II

                                Ley de Nacionalidad y Naturalizaci n,
                                Cap tulo IV

                                Reglamento de la Ley de Sanidad Fitopecuaria
                                de los Estados Unidos Mexicanos, Cap tulo VII


            Description:        Cross-Border Services

                                A concession granted by the Secretar a de
                                Agricultura y Recursos Hidr ulicos is
                                required to spray pesticides.

                                Only Mexican nationals or Mexican enterprises
                                may obtain such a concession.

            Phase-Out:          Six years after the date of entry into force
                                of this Agreement, the requirement of a
                                concession will be replaced with a permit
                                requirement and the citizenship requirement
                                will be eliminated.

                            Annex I - Mexico                                

            Sector:             Transportation

            Sub-Sector:         Air Transportation

            Industry            CMAP 713001    Transportation Services on
            Classification:                    Mexican-Registered Aircraft
                                CMAP 713002    Air Taxi Transportation
                                               Services

            Type of             National Treatment (Article 1102)
            Reservation:        Senior Management and Boards of Directors
                                (Article 1107)

            Level of            Federal
            Government:
            Measures:           Ley de V as Generales de Comunicaci n, Libro
                                IV, Cap tulo I, X, XI

                                Ley para Promover la Inversi n Mexicana y
                                Regular la Inversi n Extranjera, Cap tulos I,
                                II, III, V, VI

                                Reglamento de la Ley para Promover la
                                Inversi n Mexicana y Regular la Inversi n
                                Extranjera, T tulo I; T tulo II, Cap tulo I;
                                T tulo IV; T tulo V; T tulo VIII, Cap tulos
                                I, II, III, V; T tulo IX, Cap tulo I 

                                As qualified by the Description element

            Description:        Investment

                                Investors of another Party or their
                                investments may only own, directly or
                                indirectly, up to 25 percent of the voting
                                interest in an enterprise established or to
                                be established in the territory of Mexico
                                that provides commercial air services on
                                Mexican-registered aircraft.  The chairman
                                and at least two-thirds of the board of
                                directors and two-thirds of managing officers
                                of such an enterprise must be Mexican
                                nationals. 

                                Only Mexican nationals and Mexican
                                enterprises in which 75 percent of the voting


                              Annex I - Mexico                              

                                interests is owned or controlled by Mexican
                                nationals and of which the chairman and at
                                least two-thirds of the managing officers are
                                Mexican nationals may register aircraft in
                                Mexico.

                                Only Mexican-registered aircraft may provide
                                the following commercial air transport
                                services:

                                (a)  "domestic services" (air services
                                     between points, or from and to the same
                                     point, in the territory of Mexico, or
                                     between a point in the territory of
                                     Mexico and a point not in the territory
                                     of another country);

                                (b)  "scheduled international services"
                                     (scheduled air services between a point
                                     in the territory of Mexico and a point
                                     in the territory of another country)
                                     where those services have been reserved
                                     to Mexican carriers under existing or
                                     future bilateral agreements; and

                                (c)  "non-scheduled international services"
                                     (non-scheduled air services between a
                                     point in the territory of Mexico and a
                                     point in the territory of another
                                     country) where those services have been
                                     reserved to Mexican carriers under
                                     existing or future bilateral agreements.

            Phase-Out:          None

                              Annex I - Mexico                              

            Sector:             Transportation

            Sub-Sector:         Specialty Air Services

            Industry
            Classification:
            Type of             National Treatment (Articles 1102, 1202)
            Reservation:        Local Presence (Article 1205)
                                Senior Management and Boards of Directors
                                (Article 1107)

            Level of            Federal
            Government:
            Measures:           Ley de V as Generales de Comunicaci n, Libro
                                I, Cap tulos I, II, III; Libro IV, Cap tulo
                                XII

                                As qualified by paragraphs 2, 3 and 4 of the
                                Description element

            Description:        Cross-Border Services

                                1.   A permit issued by the Secretar a de
                                Comunicaciones y Transportes (SCT) is
                                required to provide all specialty air
                                services in the territory of Mexico.

                                2.   A person of Canada or the United States
                                may obtain such a permit to provide flight
                                training, forest fire-management, fire-
                                fighting, glider towing, and parachute
                                jumping services in Mexico, subject to
                                compliance with Mexican safety requirements.

                                3.   Such a permit may not be issued to a
                                person of Canada or the United States to
                                provide aerial advertising, aerial
                                sightseeing, aerial construction,
                                heli-logging, inspection and surveillance,
                                mapping, photography, surveying and aerial
                                spraying services.

                          Annex I - Mexico                                  

                                Investment

                                4.   Investors of another Party or their
                                investments may only own, directly or
                                indirectly, up to 25 percent of the voting
                                interests in an enterprise established or to
                                be established in the territory of Mexico
                                that provides specialty air services using
                                Mexican-registered aircraft.  The chairman
                                and at least two-thirds of the board of
                                directors and two-thirds of managing officers
                                of such an enterprise must be Mexican
                                nationals.  Only Mexican nationals and
                                Mexican enterprises in which 75 percent of
                                the voting interests is owned or controlled
                                by Mexican nationals and of which the
                                chairman and at least two-thirds of the
                                managing officers are Mexican nationals may
                                register aircraft in Mexico.

            Phase-Out:          Cross-Border Services

                                A person of Canada or the United States will
                                be allowed to obtain a permit by SCT to
                                provide, subject to compliance with Mexican
                                safety requirements, the following specialty
                                air services:

                                (a)  three years after the date of entry into
                                     force of this Agreement, aerial
                                     advertising, aerial sightseeing
                                     services, aerial construction and heli-
                                     logging; and

                                (b)  six years after the date of entry into
                                     force of this Agreement, inspection and
                                     surveillance, mapping, photography,
                                     surveying and aerial spraying services.

                                Investment

                                None

                              Annex I - Mexico                              

            Sector:             Transportation

            Sub-Sector:         Air Transportation 

            Industry            CMAP 384205    Aircraft Building, Assembly
            Classification:                    and Repair (limited to
                                               aircraft repair)

            Type of             National Treatment (Article 1202)
            Reservation:        Local Presence (Article 1205)

            Level of            Federal
            Government:
            Measures:           Constituci n Pol tica de los Estados Unidos
                                Mexicanos, Art culo 32

                                Ley de V as Generales de Comunicaci n, Libro
                                I, Cap tulos I, II, III; Libro IV, Cap tulo
                                XV

                                Ley de Nacionalidad y Naturalizaci n,
                                Cap tulo IV

                                Reglamento de Talleres Aeron uticos, Cap tulo
                                I

            Description:        Cross-Border Services

                                A concession granted by the Secretar a de
                                Comunicaciones y Transportes is required to
                                establish and operate, or operate, an
                                aircraft repair facility.  Only Mexican
                                nationals and Mexican enterprises may obtain
                                such a concession.

            Phase-Out:          None

                            Annex I - Mexico                                

            Sector:             Transportation

            Sub-Sector:         Air Transportation

            Industry            CMAP 973301    Air Navigation Services
            Classification:     CMAP 973302    Airport and Heliport
                                               Administration Services

            Type of             National Treatment (Articles 1102, 1202)
            Reservation:        Local Presence (Article 1205)

            Level of            Federal
            Government:
            Measures:           Constituci n Pol tica de los Estados Unidos
                                Mexicanos, Art culo 32

                                Ley de V as Generales de Comunicaci n, Libro
                                I, Cap tulos I, II, III; Libro IV, Cap tulo
                                IX

                                Ley para Promover la Inversi n Mexicana y
                                Regular la Inversi n Extranjera, Cap tulos I,
                                II, III, V, VI

                                Ley de Nacionalidad y Naturalizaci n,
                                Cap tulo IV

                                Reglamento de la Ley para Promover la
                                Inversi n Mexicana y Regular la Inversi n
                                Extranjera, T tulo I; T tulo II, Cap tulo I;
                                T tulo IV; T tulo V; T tulo VIII, Cap tulos
                                I, II, III, V; T tulo IX, Cap tulo I 

            Description:        Cross-Border Services

                                A concession granted by the Secretar a de
                                Comunicaciones y Transportes is required to
                                construct and operate, or operate, airports
                                and heliports and to provide air navigation
                                services. Only Mexican nationals and Mexican
                                enterprises may obtain such a concession.


                             Annex I - Mexico                               

                                Investment

                                Prior approval of the Comisi n Nacional de
                                Inversiones Extranjeras is required for
                                investors of another Party or their
                                investments to own, directly or indirectly,
                                more than 49 percent of the ownership
                                interest in an enterprise established or to
                                be established in the territory of Mexico
                                engaged in the following activities:

                                (a)  construction and operation of airports
                                     or heliports;  

                                (b)  operation of airports or heliports; or

                                (c)  provision of air navigation services.

            Phase-Out:          None

                            Annex I - Mexico                                

            Sector:             Transportation

            Sub-Sector:         Land Transportation

            Industry            CMAP 973101    Bus and Truck Station
            Classification:                    Administration and Ancillary
                                               Services (main bus and truck
                                               terminals and bus and truck
                                               stations)

            Type of             National Treatment (Articles 1102, 1202)
            Reservation:        Local Presence (Article 1205)

            Level of            Federal
            Government:
            Measures:           Ley de V as Generales de Comunicaci n, Libro
                                I, Cap tulo I, II, III; Libro II, T tulo II,
                                Cap tulos I, II; T tulo III, Cap tulo Unico

                                Reglamento para el Aprovechamiento del
                                Derecho de V a de las Carreteras Federales y
                                Zonas Aleda as, Cap tulos II, IV

                                Reglamento del Servicio P blico de
                                Autotransporte Federal de Pasajeros, Cap tulo
                                III, IV

                                As qualified by paragraph 1 of the
                                Description element

            Description:        Cross-Border Services

                                1.   A permit issued by the Secretar a de
                                Comunicaciones y Transportes is required to
                                establish, or operate, a bus or truck station
                                or terminal.  Only Mexican nationals and
                                Mexican enterprises with a foreigners'
                                exclusion clause may obtain such a permit.

                                Investment

                                2.   Investors of another Party or their
                                investments may not own, directly or
                                indirectly, ownership interest in an
                                enterprise established or to be established
                                in the territory of Mexico engaged in the

                           Annex I - Mexico                                 

                                establishment or operation of bus or truck
                                stations or terminals.

            Phase-Out:          Cross-Border Services

                                Three years after the date of signature of
                                this Agreement, such a permit may be obtained
                                by Mexican nationals and Mexican enterprises.

                                Investment

                                With respect to an enterprise established or
                                to be established in the territory of Mexico
                                engaged in the establishment or operation of
                                bus or truck station or terminals, investors
                                of another Party or their investments may
                                own, directly or indirectly:

                                (a)  three years after the date of signature
                                     of this Agreement, only up to 49 percent
                                     of the ownership interest in the
                                     enterprise;

                                (b)  seven years after the date of entry into
                                     force of this Agreement, only up to 51
                                     percent of the ownership interest in the
                                     enterprise; and

                                (c)  ten years after the date of entry into
                                     force of this Agreement, 100 percent of
                                     the ownership interest in the
                                     enterprise.

                               Annex I - Mexico                             

            Sector:             Transportation

            Sub-Sector:         Land Transportation

            Industry            CMAP 711101    Railway Transport Services
            Classification:                    (limited to railway crew)

            Type of             National Treatment (Article 1202)
            Reservation:

            Level of            Federal
            Government:

            Measures:           Ley Federal del Trabajo, Cap tulo I

            Description:        Cross-Border Services

                                Railway crew members must be Mexican
                                nationals.

            Phase-Out:          None

                            Annex I - Mexico                                

            Sector:             Transportation

            Sub-Sector:         Land Transportation

            Industry            CMAP 973102    Road and Bridge Administration
            Classification:                    Services and Ancillary
                                               Services

            Type of             National Treatment (Article 1202)
            Reservation:        Local Presence (Article 1205)

            Level of            Federal
            Government:
            Measures:           Constituci n Pol tica de los Estados Unidos
                                Mexicanos, Art culo 32

                                Ley de V as Generales de Comunicaci n, Libro
                                I, Cap tulos I, II, III; Libro II, T tulo II,
                                Cap tulo II; T tulo III, Cap tulo Unico

                                Ley de Nacionalidad y Naturalizaci n,
                                Cap tulo IV

            Description:        Cross-Border Services

                                A concession granted by the Secretar a de
                                Comunicaciones y Transportes is required to
                                provide road and bridge administration
                                services and ancillary services.  Only
                                Mexican nationals and Mexican enterprises may
                                obtain such a concession.

            Phase-Out:          None

                            Annex I - Mexico                                

            Sector:             Transportation

            Sub-Sector:         Land Transportation

            Industry            CMAP 711312    Urban and Suburban Passenger
            Classification:                    Transportation Service by Bus
                                CMAP 711315    Collective Automobile
                                               Transportation Service
                                CMAP 711316    Established Route Automobile
                                               Transportation Service
                                CMAP 711317    Automobile Transportation
                                               Services from a Specific
                                               Station 
                                CMAP 711318    School and Tourist
                                               Transportation Services
                                               (limited to school
                                               transportation services)

            Type of             National Treatment (Article 1102, 1202)
            Reservation:
            Level of            Federal
            Government:
            Measures:           Ley para Promover la Inversi n Mexicana y
                                Regular la Inversi n Extranjera, Cap tulos I,
                                II, III, V, VI

                                Ley de V as Generales de Comunicaci n, Libro
                                I, Cap tulos I, II, III; Libro II, T tulo II,
                                Cap tulo II

                                Ley de Nacionalidad y Naturalizaci n,
                                Cap tulo IV 

                                Reglamento de la Ley para Promover la
                                Inversi n Mexicana y Regular la Inversi n
                                Extranjera, T tulo I; T tulo II, Cap tulo I;
                                T tulo IV; T tulo V; T tulo VIII, Cap tulos
                                I, II, III, V; T tulo IX, Cap tulo I 

                                Reglamento del Servicio P blico de
                                Autotransporte Federal de Pasajeros, Cap tulo
                                II

                            Annex I - Mexico                                

            Description:        Cross-Border Services and Investment

                                Only Mexican nationals and Mexican
                                enterprises with a foreigners' exclusion
                                clause may provide local bus services, school
                                bus services and taxi and other collective
                                transportation services.

            Phase-Out:          None

                            Annex I - Mexico                                

            Sector:             Transportation

            Sub-Sector:         Land Transportation

            Industry            CMAP 711201    Road Transport Services for
            Classification:                    Construction Materials
                                CMAP 711202    Road Transport Moving Services
                                CMAP 711203    Other Services of Specialized
                                               Cargo Transportation 
                                CMAP 711204    General Trucking Services 
                                CMAP 711311    Inter-City Busing Services
                                CMAP 711318    School and Tourist
                                               Transportation Services
                                               (limited to tourist
                                               transportation services)

            Type of             National Treatment (Articles 1102, 1202)
            Reservation:        Local Presence (Article 1205)

            Level of            Federal
            Government:
            Measures:           Memorandum de Entendimiento entre los Estados
                                Unidos Mexicanos y los Estados Unidos de
                                Norteam rica para la Promoci n de Servicios
                                de Transporte Tur stico de Ruta Fija, 3 de
                                diciembre de 1990

                                Ley de V as Generales de Comunicaci n, Libro
                                I, Cap tulos I, II, III; Libro II, T tulo II,
                                Cap tulo II; T tulo III, Cap tulo Unico

                                Ley para Promover la Inversi n Mexicana y
                                Regular la Inversi n Extranjera, Cap tulos I,
                                II, III, V, VI

                                Reglamento de la Ley para Promover la
                                Inversi n Mexicana y Regular la Inversi n
                                Extranjera, T tulo I; T tulo II, Cap tulo I;
                                T tulo IV; T tulo V; T tulo VIII, Cap tulos
                                I, II, III, V; T tulo IX, Cap tulo I 

                                As qualified by paragraphs 1, 3 and 4 of the
                                Description element.

            Description:        Cross-Border Services

                              Annex I - Mexico                              

                                1.   A permit issued by the Secretar a de
                                Comunicaciones y Transportes is required to
                                provide inter-city bus services, tourist
                                transportation services or truck services for
                                the transportation of goods or passengers to
                                or from the territory of Mexico. 

                                2.   Only Mexican nationals and Mexican
                                enterprises with a foreigners' exclusion
                                clause may provide such services.

                                3.   Notwithstanding paragraph 2, a person of
                                Canada or the United States will be permitted
                                to provide international charter or tour bus
                                services to or from the territory of Mexico.

                                4.   Only Mexican nationals and Mexican
                                enterprises with a foreigners' exclusion
                                clause, using Mexican-registered equipment
                                that is Mexican-built or legally imported and
                                drivers who are Mexican nationals, may
                                provide bus or truck services for the
                                transportation of goods or passengers between
                                points in the territory of Mexico.

                                Investment

                                5. Investors of another Party or their
                                investments may not own directly or
                                indirectly, an ownership interest in an
                                enterprise established or to be established
                                in the territory of Mexico engaged in bus or
                                truck transportation services as set out in
                                the Industry Classification element.

            Phase-Out:          Cross-Border Services

                                A person of Canada or of the United States
                                will be permitted to provide:

                                (a)  three years after the date of signature
                                     of this Agreement, cross-border truck
                                     services to or from the territory of
                                     border states (Baja California,

                                   Annex I - Mexico                         

                                     Chihuahua, Coahuila, Nuevo Le n, Sonora
                                     and Tamaulipas), and such a person will
                                     be permitted to enter and depart Mexico
                                     through different ports of entry in such
                                     states;

                                (b)  three years after the date of entry into
                                     force of this Agreement, cross-border
                                     scheduled bus services to or from the
                                     territory of Mexico; and

                                (c)  six years after the date of entry into
                                     force of this Agreement, cross-border
                                     truck services to or from the territory
                                     of Mexico.

                                Three years after the date of signature of
                                this Agreement, only Mexican nationals and
                                Mexican enterprises, using Mexican-registered
                                equipment that is Mexican-built or legally
                                imported and drivers who are Mexican
                                nationals, may provide bus or truck services
                                for the transportation of international cargo
                                or passengers between points in the territory
                                of Mexico.  For domestic cargo, paragraph 4
                                of the Description element will continue to
                                apply.

                                Investment

                                With respect to an enterprise established or
                                to be established in the territory of Mexico
                                providing inter-city bus services, tourist
                                transportation services, or truck services
                                for the transportation of international cargo
                                between points in the territory of Mexico,
                                investors of another Party or their
                                investments may own, directly or indirectly:

                                (a)  three years after the date of signature
                                     of this Agreement, only up to 49 percent
                                     of ownership interest in such an
                                     enterprise;

                                (b)  only own, seven years after the date of
                                     entry into force of this Agreement, only

                           Annex I - Mexico                                 

                                     up to 51 percent of the ownership
                                     interest in such an enterprise; and

                                (c)  ten years after the date of entry into
                                     force of this Agreement, 100 percent of
                                     the ownership interest in such an
                                     enterprise.

                                Investors of another Party or their
                                investments may not own, directly or
                                indirectly, an ownership interest in an
                                enterprise providing truck services for the
                                carriage of domestic cargo. 


                              Annex I - Mexico                              

            Sector:             Transportation

            Sub-Sector:         Land Transportation and Water Transportation

            Industry            CMAP 501421    Marine and River Works
            Classification:     CMAP 501422    Construction of Roads for Land
                                               Transportation

            Type of             National Treatment (Article 1202)
            Reservation:        Local Presence (Article 1205)

            Level of            Federal
            Government:
            Measures:           Constituci n Pol tica de los Estados Unidos
                                Mexicanos, Art culo 32

                                Ley de V as Generales de Comunicaci n, Libro
                                I, Cap tulos I, II, III; Libro II, T tulo II,
                                Cap tulo II; Libro III, Cap tulos II, XV

                                Ley de Nacionalidad y Naturalizaci n,
                                Cap tulo IV

            Description:        Cross-Border Services

                                A concession granted by the Secretar a de
                                Comunicaciones y Transportes is required to
                                construct and operate, or operate, marine or
                                river works or roads for land transportation.

                                Such a concession may be granted only to
                                Mexican nationals and Mexican enterprises.

            Phase-Out:          None

                          Annex I - Mexico                                  

            Sector:             Transportation

            Sub-Sector:         Non-Energy Pipelines

            Industry
            Classification:
            Type of             National Treatment (Article 1202)
            Reservation:        Local Presence (Article 1205)

            Level of            Federal
            Government:
            Measures:           Constituci n Pol tica de los Estados Unidos
                                Mexicanos, Art culo 32

                                Ley de V as Generales de Comunicaci n, Libro
                                I, Cap tulos I, II, III

                                Ley Federal de Aguas, T tulo I, Cap tulo I

                                Ley de Nacionalidad y Naturalizaci n,
                                Cap tulo IV
            Description:
                                Cross-Border Services

                                A concession granted by the Secretar a de
                                Comunicaciones y Transportes is required to
                                construct and operate, or operate, pipelines
                                carrying goods other than energy or basic
                                petrochemicals.  Only Mexican nationals and
                                Mexican enterprises may obtain such a
                                concession.

            Phase-Out:          None

                            Annex I - Mexico                                

            Sector:             Transportation

            Sub-Sector:         Specialized Personnel

            Industry            CMAP 951012    Customs Brokers 
            Classification:
            Type of             National Treatment (Article 1102)
            Reservation:
            Measures:           Constituci n Pol tica de los Estados Unidos
                                Mexicanos, Art culo 32

                                Ley Aduanera, T tulo II, Cap tulo Unico

                                Ley para Promover la Inversi n Mexicana y
                                Regular la Inversi n Extranjera, Cap tulos I,
                                II, III, V, VI

                                Reglamento de la Ley para Promover la
                                Inversi n Mexicana y Regular la Inversi n
                                Extranjera, T tulo I; T tulo II, Cap tulo I;
                                T tulo IV; T tulo V; T tulo VIII, Cap tulos
                                I, II, III, V; T tulo IX, Cap tulo I 

            Description:        Investment

                                Investors of another Party or their
                                investments may not own, directly or
                                indirectly, an ownership interest in a
                                customs broker enterprise ("agencia
                                aduanal").

            Phase-Out:          None


                             Annex I - Mexico                               

            Sector:             Transportation

            Sub-Sector:         Water Transportation

            Industry            CMAP 1300 Fishing
            Classification:
            Type of             National Treatment (Article 1202)
            Reservation:        Most-Favored-Nation Treatment (Article 1203)
                                Local Presence (Article 1205)

            Level of            Federal
            Government:
            Measures:           Constituci n Pol tica de los Estados Unidos
                                Mexicanos, Art culo 32

                                Ley de Pesca, Cap tulos I, II

                                Ley de Navegaci n y Comercio Mar timos,
                                Libro II, T tulo Unico, Cap tulo I

                                Ley de Nacionalidad y Naturalizaci n,
                                Cap tulo IV

                                Reglamento de la Ley de Pesca, Cap tulo I,
                                III, IV, V, VI, IX, XV

            Description:        Cross-Border Services

                                A concession granted, or permit issued, by
                                the Secretar a de Pesca is required to engage
                                in fishing activities in "Mexican
                                jurisdictional waters".  Only Mexican
                                nationals and Mexican enterprises, using
                                Mexican-flagged vessels, may obtain such a
                                concession or permit.  Permits may
                                exceptionally be issued to persons operating
                                vessels flagged in a foreign country that
                                provides equivalent treatment to
                                Mexican-flagged vessels to engage in fishing
                                activities in the Exclusive Economic Zone. 

                                Only Mexican nationals and Mexican
                                enterprises may obtain authorization from the
                                Secretar a de Pesca for deep sea fishing on
                                Mexican-flagged vessels, fixed rigging
                                installations, recollection from the natural

                             Annex I - Mexico                               

                                milieu of larvae, post-larvae, eggs, seeds or
                                fingerlings, for research or aquaculture
                                purposes, introduction of live species into
                                "Mexican jurisdictional waters", and for
                                educational fishing in accordance with the
                                programs of fishing educational institutions.

            Phase-Out:          None

                             Annex I - Mexico                               

            Sector:             Transportation

            Sub-Sector:         Water Transportation

            Industry            CMAP 384201    Shipbuilding and Ship Repair
            Classification:
            Type of             National Treatment (Article 1202)
            Reservation:        Local Presence (Article 1205)
                                Performance Requirements (Article 1106)

            Level of            Federal
            Government:
            Measures:           Constituci n Pol tica de los Estados Unidos
                                Mexicanos, Art culo 32

                                Ley de V as Generales de Comunicaci n, Libro
                                I, Cap tulos I, II, III; Libro III, Cap tulo
                                XV

                                Ley para el Desarrollo de la Marina Mercante,
                                Cap tulo IV

                                Ley de Nacionalidad y Naturalizaci n,
                                Cap tulo IV

            Description:        Cross-Border Services

                                A concession granted by the Secretar a de
                                Comunicaciones y Transportes is required to
                                establish and operate, or operate, a
                                shipyard.  Only Mexican nationals and Mexican
                                enterprises may obtain such a concession.

                                Cross-Border Services and Investment

                                For the owner of a Mexican-flagged vessel to
                                be eligible for government cargo preferences,
                                subsidies and tax benefits granted under the
                                Ley para el Desarrollo de la Marina Mercante,
                                that owner must carry out repair and
                                maintenance operations in shipyards and
                                repair facilities in the territory of Mexico.


            Phase-Out:          None


                             Annex I - Mexico                               

            Sector:             Transportation

            Sub-Sector:         Water Transportation

            Industry            CMAP 712011    International Maritime
            Classification:                    Transportation Services
                                CMAP 712012    Cabotage Maritime Services
                                CMAP 712013    International and Cabotage
                                               Towing Services
                                CMAP 712022    Internal Port Water
                                               Transportation Services
                                CMAP 712021    River and Lake Transportation
                                               Services



            Type of             National Treatment (Articles 1102, 1202)
            Reservation:        Most-Favored-Nation Treatment (Articles 1103,
                                1203)
                                Senior Management and Boards of Directors
                                (Article 1107)

            Level of            Federal
            Government:
            Measures:           Ley de V as Generales de Comunicaci n, Libro
                                I, Cap tulos I, II y III; Libro III,
                                Cap tulos I-XV

                                Ley para el Desarrollo de la Marina Mercante,
                                Cap tulos I, III

                                Ley de Navegaci n y Comercio Mar timos, Libro
                                II, T tulo Unico, Cap tulos I, III

                                Ley para Promover la Inversi n Mexicana y
                                Regular la Inversi n Extranjera, Cap tulos I,
                                II, III, V, VI

                                Reglamento de la Ley para Promover la
                                Inversi n Mexicana y Regular la Inversi n
                                Extranjera, T tulo I; T tulo II, Cap tulo I;
                                T tulo IV; T tulo V; T tulo VIII, Cap tulos
                                I, II, III, V; T tulo I
                                IX, Cap tulo I 

                            Annex I - Mexico                                

            Description:        Cross-Border Services and Investment

                                Maritime cabotage services, including off-
                                shore maritime services, are reserved to
                                Mexican-flagged vessels.  A waiver may be
                                granted by the Secretar a de Comunicaciones
y
                                Transportes where Mexican-flagged vessels are
                                not able to provide such services.  Only
                                Mexican-flagged vessels may transport cargo
                                owned by the Federal Government.

                                Foreign-flagged vessels may provide
                                international maritime services in the
                                territory of Mexico on the basis of
                                reciprocity with the relevant country.  Only
                                Mexican-flagged towing vessels may provide
                                towing services from Mexican ports to foreign
                                ports.  Where such towing vessels are not
                                able to provide such services, the Secretar
a
                                de Comunicaciones y Transportes may provide
                                permits to foreign-flagged towing vessels. 
                                Only a Mexican national or a Mexican
                                enterprise with a foreigners' exclusion
                                clause may own vessels registered and flagged
                                as Mexican.  All members of the board of
                                directors and managers of such enterprise
                                must be Mexican nationals.

                                Investment

                                Prior approval of the Comisi n Nacional de
                                Inversiones Extranjeras is required for
                                investors of another Party or their
                                investments to own, directly or indirectly,
                                more than the 49 percent of the ownership
                                interest in an enterprise established or to
                                be established in the territory of Mexico
                                operating foreign-flagged vessels providing
                                international maritime transport services.

            Phase-Out:          None

                             Annex I - Mexico                               
          
            Sector:             Transportation

            Sub-Sector:         Water Transportation

            Industry            CMAP 973203    Maritime and Inland (Lake and
            Classification:                    Rivers) Ports Administration 

            Type of             National Treatment (Article 1202)
            Reservation:        Local Presence (Article 1205)

            Level of            Federal
            Government:
            Measures:           Ley de Navegaci n y Comercio Mar timos, Libro
                                II, Cap tulo II

                                Ley de V as Generales de Comunicaci n, Libro
                                III, Cap tulo XI

            Description:        Cross-Border Services

                                All port workers must be Mexican nationals.

            Phase-Out:          None

                             Annex I - Mexico                               

            Sector:             Transportation

            Sub-Sector:         Water Transportation

            Industry            CMAP 973201    Loading and Unloading Services
            Classification:                    Related to Water
                                               Transportation (includes
                                               operation and maintenance of
                                               docks; loading and unloading
                                               of vessels at shore-side;
                                               marine cargo handling;
                                               operation and maintenance of
                                               piers; ship and boat cleaning;
                                               stevedoring; transfer of cargo
                                               between ships and trucks,
                                               trains, pipelines and wharves;
                                               waterfront terminal
                                               operations)

            Type of             National Treatment (Article 1102)
            Reservation:
            Level of            Federal
            Government:
            Measures:           Ley de Navegaci n y Comercio Mar timos, Libro
                                I, T tulo Unico, Cap tulo I; Libro II, T tulo
                                II

                                Ley para Promover la Inversi n Mexicana y
                                Regular la Inversi n Extranjera, Cap tulos I,
                                II, III, V, VI

                                Ley de V as Generales de Comunicaci n, Libro
                                I, Cap tulos I, II, III; Libro III, Cap tulo
                                II

                                Reglamento de la Ley para Promover la
                                Inversi n Mexicana y Regular la Inversi n
                                Extranjera, T tulo I; T tulo II, Cap tulo I;
                                T tulo IV; T tulo V; T tulo VIII, Cap tulos
                                I, II, III, V; T tulo IX, Cap tulo I 

                                Reglamento del Servicio de Maniobras en las
                                Zonas Federales de Puertos, Libro I, T tulo
                                Unico, Cap tulo I; Libro II, T tulo Unico,
                                Cap tulo II, Secci n A; Libro IV, T tulo
                                Unico

                             Annex I - Mexico                               

                                Reglamento para el Uso y Aprovechamiento del
                                Mar Territorial, V as Navegables, Playas,
                                Zona Federal Mar timo Terrestre y Terrenos
                                Ganados al Mar, Cap tulo II, Secci n II

                                As qualified by the Description element

            Description:        Investment

                                Prior approval of the Comisi n Nacional de
                                Inversiones Extranjeras is required for
                                investors of another Party or their
                                investments to own, directly or indirectly,
                                more than 49 percent of the ownership
                                interest in an enterprise, established or to
                                be established in the territory of Mexico
                                providing to third persons the following
                                services: operation and maintenance of docks;
                                loading and unloading of vessels at shore-
                                side; marine cargo handling; operation and
                                maintenance of piers; ship and boat cleaning;
                                stevedoring; transfer of cargo between ships
                                and trucks, trains, pipelines and wharves;
                                and waterfront terminal operations.

            Phase-Out:          None

                            Annex I - Mexico                                

            Sector:             Transportation

            Sub-Sector:         Water Transportation

            Industry            CMAP 973201    Loading and Unloading Services
            Classification:                    Related to Water
                                               Transportation (includes
                                               operation and maintenance of
                                               docks; loading and unloading
                                               of vessels at shore-side;
                                               marine cargo handling;
                                               operation and maintenance of
                                               piers; ship and boat cleaning;
                                               stevedoring; transfer of cargo
                                               between ships and trucks,
                                               trains, pipelines and wharves;
                                               waterfront terminal
                                               operations)

            Type of             National Treatment (Article 1202)
            Reservation:        Local Presence (Article 1205)

            Level of            Federal
            Government:
            Measures:           Constituci n Pol tica de los Estados Unidos
                                Mexicanos, Art culo 32

                                Ley de Navegaci n y Comercio Mar timos, Libro
                                I, T tulo Unico, Cap tulo I; Libro II, T tulo
                                II

                                Ley de V as Generales de Comunicaci n, Libro
                                I, Cap tulos I, II, III; Libro III, Cap tulo
                                II

                                Ley de Nacionalidad y Naturalizaci n,
                                Cap tulo IV

                                Reglamento del Servicio de Maniobras en las
                                Zonas Federales de Puertos, Libro I, T tulo
                                Unico, Cap tulo I, Libro II, T tulo Unico,
                                Cap tulo II, Secci n A; Libro IV, T tulo
                                Unico

                                Reglamento para el Uso y Aprovechamiento del
                                Mar Territorial, V as Navegables, Playas,

                             Annex I - Mexico                    

                                Zona Federal Mar timo Terrestre y Terrenos
                                Ganados al Mar, Cap tulo II, Secci n II


            Description:        Cross-Border Services

                                A concession granted by the Secretar a de
                                Comunicaciones y Transportes is required to
                                construct and operate, or operate, maritime
                                and inland port terminals, including docks,
                                cranes and related facilities.  Only Mexican
                                nationals and Mexican enterprises may obtain
                                such a concession.

                                A permit issued by the Secretar a de
                                Comunicaciones y Transportes is required to
                                provide stevedoring and warehousing services.

                                Only Mexican nationals and Mexican
                                enterprises may obtain such a permit.

            Phase-Out:          None
Title:Annex II -- Schedule of Mexico
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:22635

                                     Annex II
                                  Schedule of Mexico


            Sector:             All Sectors

            Sub-Sector:

            Industry
            Classification:
            Type of             National Treatment (Articles 1102, 1202)
            Reservation:
            Description:        Cross-Border and Investment

                                Mexico reserves the right to adopt or
                                maintain any measure restricting the
                                acquisition, sale or other disposition of
                                bonds, treasury bills or any other kind of
                                debt security issued by the federal, state or
                                local governments, except with respect to
                                ownership by "a financial institution of
                                another Party", as defined in Chapter
                                Fourteen (Financial Services).

            Existing Measures:

                              Annex II - Mexico                             

            Sector:             Communications

            Sub-Sector:         Entertainment Services (Broadcasting and
                                Multipoint Distribution Systems (MDS))

            Industry            CMAP 941104    Private Production and
            Classification:                    Transmission of Radio Programs
                                               (limited to transmission of
                                               radio programs, MDS and
                                               uninterrupted music)
                                CMAP 941105    Private Services of
                                               Production, Transmission and
                                               Retransmission of Television
                                               Programming (limited to
                                               transmission and
                                               retransmission of television
                                               programs, MDS, and
                                               high-definition television)

            Type of             National Treatment (Articles 1102, 1202)
            Reservation:        Most-Favored-Nation Treatment (Articles 1103,
                                1203)
                                Local Presence (Article 1205)
                                Senior Management and Boards of Directors
                                (Article 1107)

            Description:        Cross-Border Services and Investment

                                Mexico reserves the right to adopt or
                                maintain any measure relating to investment
                                in, or provision of, broadcasting, multipoint
                                distribution systems, uninterrupted music and
                                high-definition television services. This
                                reservation does not apply to measures
                                relating to the production, sale or licensing
                                of radio or television programming.

            Existing Measures:  Constituci n Pol tica de los Estados Unidos
                                Mexicanos, Art culo 32

                                Ley de V as Generales de Comunicaci n

                                Ley Federal de Radio y Televisi n

                                Ley para Promover la Inversi n Mexicana y
                                Regular la Inversi n Extranjera

                            Annex II - Mexico                               

            Sector:             Communications

            Sub-Sector:         Telecommunications

            Industry            CMAP 720006    Other Telecommunications
            Classification:                    Services (limited to
                                               aeronautical mobile and fixed
                                               services)

            Type of             National Treatment (Articles 1102, 1202)
            Reservation:        Most-Favored-Nation Treatment (Articles 1103,
                                1203)
                                Local Presence (Article 1205)

            Description:        Cross-Border Services and Investment

                                Mexico reserves the right to adopt or
                                maintain any measure relating to investment
                                in, or provision of, air traffic control,
                                aeronautical meteorology, aeronautical
                                telecommunications, and other
                                telecommunications services relating to air
                                navigation services.

            Existing Measures:  Constituci n Pol tica de los Estados Unidos
                                Mexicanos, Art culo 32

                                Ley de V as Generales de Comunicaci n

                                Ley para Promover la Inversi n Mexicana y
                                Regular la Inversi n Extranjera

                                Decreto que Crea el Organismo Desconcentrado
                                "Servicios a la Navegaci n en el Espacio
                                A reo Mexicano" (SENEAM), 3 de octubre de
                                1978

                            Annex II - Mexico                               

            Sector:             Communications

            Sub-Sector:         Telecommunications Transport Networks

            Industry            CMAP 720003    Telephone Services
            Classification:     CMAP 720004    Telephone Booth Services
                                CMAP 720006    Other Telecommunications
                                               Services (not including
                                               enhanced or value-added
                                               services)
                                CMAP 502003    Telecommunications
                                               Installations

            Type of             National Treatment (Articles 1102, 1202)
            Reservation:        Most-Favored-Nation Treatment (Articles 1103,
                                1203)
                                Local Presence (Article 1205)

            Description:        Cross-Border Services and Investment

                                Mexico reserves the right to adopt or
                                maintain any measure relating to investment
                                in, or provision of, telecommunications
                                transport networks and telecommunications
                                transport services. Telecommunications
                                transport networks include the facilities to
                                provide telecommunications transport services
                                such as local basic telephone services,
                                long-distance telephone services (national
                                and international), rural telephone services,
                                cellular telephone services, telephone booth
                                services, satellite services, trunking,
                                paging, mobile telephony, maritime
                                telecommunications services, air telephone,
                                telex, and data transmission services.
                                Telecommunications transport services
                                typically involve 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, whether or not such services are
                                offered to the public generally.

            Existing Measures:  Constituci n Pol tica de los Estados Unidos
                                Mexicanos, Art culo 32

                             Annex II - Mexico                              

                              Ley de V as Generales de Comunicaci n

                                Ley para Promover la Inversi n Mexicana y
                                Regular la Inversi n Extranjera

                                Reglamento de Telecomunicaciones

                              Annex II - Mexico                             

            Sector:             Communications and Transportation

            Sub-Sector:         Postal Services, Telecommunications and
                                Railroads

            Industry            CMAP 720001    Postal Services
            Classification:     CMAP 720005    Telegraph Services,
                                               Radiotelegraph Services,
                                               Wireless Telegraphy
                                CMAP 720006    Other Telecommunications
                                               Services (limited to satellite
                                               communications)
                                CMAP 711101    Railway Transportation
                                               Services (limited to
                                               operation, administration and
                                               control of traffic within the
                                               Mexican railway system,
                                               supervision and management of
                                               railway rights-of-way,
                                               construction, operation, and
                                               maintenance of basic railway
                                               infrastructure)

            Type of             National Treatment (Article 1202)
            Reservation:        Most-Favored-Nation Treatment (Article 1203)
                                Local Presence (Article 1205)

            Description:        Cross-Border Services

                                Mexico reserves the right to adopt or
                                maintain any measure related to the provision
                                of postal services (operation, administration
                                and organization of first class mail),
                                telegraph services, radiotelegraphy services,
                                satellite communications services
                                (establishment, ownership and operation of
                                satellite systems, and establishment,
                                ownership and operation of earth stations
                                with international links), and railroad
                                services (operation, administration and
                                control of traffic within the Mexican railway
                                system, supervision and management of railway
                                rights-of-way, construction, operation, and
                                maintenance of basic railway infrastructure).

                          Annex II - Mexico                                 

            Existing Measures:  Constituci n Pol tica de los Estados Unidos
                                Mexicanos, Art culo 28

                                Ley de V as Generales de Comunicaci n

                                Ley Org nica de Ferrocarriles Nacionales de
                                M xico

                                Ley del Servicio Postal Mexicano

                          Annex II - Mexico                                 

            Sector:             Energy

            Sub-Sector:         Petroleum and Other Hydrocarbons
                                Basic Petrochemicals 
                                Electricity
                                Nuclear Power
                                Treatment of Radioactive Minerals

            Industry
            Classification:
            Type of             National Treatment (Article 1202)
            Reservation:        Most-Favored-Nation Treatment (Article 1203)
                                Local Presence (Article 1205)

            Description:        Cross-Border Services

                                Subject to Annex 602.3, Mexico reserves the
                                right to adopt or maintain any measure
                                related to services associated with energy
                                and basic petrochemical goods.

            Existing Measures:  Constituci n Pol tica de los Estados Unidos
                                Mexicanos, Art culos 27, 28

                                Ley Reglamentaria del Art culo 27
                                Constitucional en Materia Nuclear

                                Ley Reglamentaria del Art culo 27
                                Constitucional en el Ramo del Petr leo y sus
                                reglamentos

                                Ley Org nica de Petr leos Mexicanos y
                                Organismos Subsidiarios

                          Annex II - Mexico                                 

            Sector:             Minority Affairs

            Sub-Sector:

            Industry
            Classification:
            Type of             National Treatment (Article 1202)
            Reservation:        Local Presence (Article 1205)

            Description:        Cross-Border Services

                                Mexico reserves the right to adopt or
                                maintain any measure according rights or
                                preferences to socially or economically
                                disadvantaged groups.

            Existing Measures:  Constituci n Pol tica de los Estados Unidos
                                Mexicanos, Art culo 4

                             Annex II - Mexico                              

            Sector:             Professional, Technical and Specialized
                                Services

            Sub-Sector:         Professional Services

            Industry            CMAP 951002    Legal Services (including
            Classification:                    foreign legal consultancy)

            Type of             National Treatment (Articles 1102, 1202)
            Reservation:        Most-Favored-Nation Treatment (Articles 1103,
                                1203)
                                Local Presence (Article 1205)
                                Senior Management and Boards of Directors
                                (Article 1107)

            Description:        Cross-Border Services and Investment

                                Subject to Schedule of Mexico, Annex VI, page
                                VI-M-2, Mexico reserves the right to adopt or
                                maintain any measure relating to the
                                provision of legal services and foreign legal
                                consultancy services by persons of the United
                                States.

            Existing Measures:  Ley Reglamentaria del Art culo 5o.
                                Constitucional, relativo al ejercicio de las
                                profesiones en el Distrito Federal

                                Ley para Promover la Inversi n Mexicana y
                                Regular la Inversi n Extranjera

                            Annex II - Mexico                               

            Sector:             Social Services

            Sub-Sector:

            Industry
            Classification:
            Type of             National Treatment (Articles 1102, 1202)
            Reservation:        Local Presence (Article 1205)
                                Senior Management and Boards of Directors
                                (Article 1107)

            Description:        Cross-Border Services and Investment

                                Mexico reserves the right to adopt or
                                maintain any measure with respect to the
                                provision of public law enforcement and
                                correctional services, and the following
                                services to the extent they are social
                                services established or maintained for a
                                public purpose: income security or insurance,
                                social security or insurance, social welfare,
                                public education, public training, health,
                                and child care.

            Existing Measures:  Constituci n Pol tica de los Estados Unidos
                                Mexicanos, Art culos 4, 17, 18, 25, 26, 28,
                                123

                           Annex II - Mexico                                
    
            Sector:             Transportation

            Sub-Sector:         Specialized Personnel

            Industry            CMAP 951023    Other Specialized Services
            Classification:                    (limited to ship captains
                                               (capitanes); aircraft pilots
                                               (pilotos); ship masters
                                               (patrones); ship machinists
                                               (maquinistas); ship mechanics
                                               (mec nicos); airport
                                               administrators (comandantes de
                                               aer dromos); harbor masters
                                               (capitanes de puerto); harbor
                                               pilots (pilotos de puerto);
                                               customs brokers (agentes
                                               aduanales); crew on Mexican-
                                               flagged vessels or aircraft
                                               (personal que tripule
                                               cualquier embarcaci n o
                                               aeronave con bandera o
                                               insignia mercante mexicana))

            Type of             National Treatment (Article 1202)
            Reservation:        Most-Favored-Nation Treatment (Article 1203)
                                Local Presence (Article 1205)

            Description:        Cross-Border Services

                                Only Mexican nationals by birth may serve as:


                                (a)  captains, pilots, ship masters,
                                     machinists, mechanics and crew members
                                     manning vessels or aircraft under the
                                     Mexican flag; 

                                (b)  harbor pilots, harbor masters and
                                     airport administrators; and

                                (c)  customs brokers.

            Existing Measures:  Constituci n Pol tica de los Estados Unidos
                                Mexicanos, Art culo 32

Title:Annex III - Schedule of Mexico
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
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                                      Annex III
                                  Schedule of Mexico


          Section A.     Activities Reserved to the Mexican State

               Mexico reserves  the right  to perform  exclusively, and  to
          refuse  to  permit  the  establishment  of  investments  in,  the
          following activities: 

          1.   Petroleum, Other Hydrocarbons and Basic Petrochemicals

               (a)  Description of activities

                    (i)  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; and

                    (ii) foreign   trade;   transportation,   storage   and
                         distribution up  to and including first hand sales
                         of the  following  goods: crude  oil; natural  and
                         artificial  gas;  goods  covered  by  Chapter  Six
                         (Energy  and Basic  Petrochemicals) obtained  from
                         the  refining    or processing  of  crude  oil and
                         natural gas; and basic petrochemicals.

               (b)  Measures:

                    Constituci n Pol tica de  los Estados Unidos Mexicanos,
                    Art culos 25, 27 y 28

                    Ley  Reglamentaria del Art culo 27 Constitucional en el
                    Ramo del Petr leo 

                    Ley  Org nica  de   Petr leos  Mexicanos  y  Organismos
                    Subsidiarios

          2.   Electricity

               (a)  Description of activities: the supply of electricity as
                    a public  service in Mexico, including, the generation,
                    transmission, transformation, distribution  and sale of
                    electricity.

               (b)  Measures:

                    Constituci n Pol tica de  los Estados Unidos Mexicanos,
                    Art culos 25, 27, 28

                    Ley del Servicio P blico de Energ a El ctrica

          3.   Nuclear Power and Treatment of Radioactive Minerals

               (a)  Description  of  activities:  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.

               (b)  Measures:

                    Constituci n Pol tica de los  Estados Unidos Mexicanos,
                    Art culos 25, 27, 28

                    Ley  Reglamentaria  del Art culo  27  Constitucional en
                    Materia Nuclear

          4.   Satellite Communications

               (a)  Description of activities: the establishment, operation
                    and ownership of  satellite systems and  earth stations
                    with international links. 

               (b)  Measures:

                    Constituci n Pol tica de  los Estados Unidos Mexicanos,
                    Art culos 25, 28

                    Ley de V as Generales de Comunicaci n

          5.   Telegraph Services

               Measures:

               Constituci n  Pol tica  de  los  Estados  Unidos  Mexicanos,
               Art culos 25, 28 

               Ley de V as Generales de Comunicaci n

          6.   Radiotelegraph Services

               Measures:

               Constituci n  Pol tica  de  los  Estados  Unidos  Mexicanos,
               Art culos 25, 28

               Ley de V as Generales de Comunicaci n

          7.   Postal Services

               (a)  Description  of  activities:  operation, administration
                    and organization of first class mail.

               (b)  Measures:

                    Constituci n Pol tica de  los Estados Unidos Mexicanos,
                    Art culos 25, 28

                    Ley del Servicio Postal Mexicano

          8.   Railroads

               (a)  Description  of  activities:  operation, administration
                    and  control  of  traffic  within  the Mexican  railway
                    system;   supervision   and   management   of   railway
                    right-of-way; operation,  construction and  maintenance
                    of basic railway infrastructure.

               (b)  Measures:

                    Constituci n Pol tica de  los Estados Unidos Mexicanos,
                    Art culos 25, 28

                    Ley Org nica de Ferrocarriles Nacionales de M xico

          9.   Issuance of Bills (currency) and Minting of Coinage 

               Measures:

               Constituci n  Pol tica  de  los  Estados  Unidos  Mexicanos,
               Art culos 25, 28

               Ley Org nica del Banco de M xico

               Ley Org nica de la Casa de Moneda de M xico 

               Ley Monetaria de los Estados Unidos Mexicanos

          10.  Control,  Inspection and Surveillance of Maritime and Inland
          Ports

               Measures:

               Ley de Navegaci n y Comercio Mar timos

               Ley de V as Generales de Comunicaci n

          11.  Control,  Inspection   and  Surveillance  of   Airports  and
          Heliports

               Measures:

               Ley de V as Generales de Comunicaci n

          The measures referred  to are provided for  transparency purposes
          and include any  subordinate measure adopted or  maintained under
          the authority of and consistent with such measures.

          1.   The  activities set  out in  Section A  are reserved  to the 
        Section B.     Deregulation of Activities Reserved to the State

          2.   If Mexican law is amended to allow private equity investment 
        Mexican  State, and private equity investment is prohibited under

          participate  in   such  activities  through   service  contracts, 
        Mexican  Law.     Where  Mexico  allows  private   investment  to

          concessions,   lending   arrangements  or   any  other   type  of
          contractual  arrangement,   such  participation   shall  not   be
          construed to affect the State's reservation of those activities.

          in  an  activity  set  out   in  Section  A,  Mexico  may  impose

          enterprise  engaged in  activities  set  out  in Section  A,  and 
        impose derogations from Article 1102 on foreign equity investment

          from the initial  sale, Mexico may restrict the  transfer of such 
        participation when selling an asset  or ownership interest in  an

               Where an  activity  was reserved  to  the Mexican  State  on 
        Section C.     Activities Formerly Reserved to the Mexican State    
     describe them in Annex I.


         date of entry  into force of this Agreement,  Mexico may restrict  
       January 1, 1992 and  is not reserved to the Mexican  State on the

          the initial sale of a  state-owned asset or an ownership interest


          Mexican Constitution.   For  a period not  to exceed  three years 
        with majority ownership by  Mexican nationals, as defined by  the   
      in a state enterprise that performs that activity to  enterprises     
    restrictions on foreign  investment participation notwithstanding
          Article 1102,  and describe  them in  Annex I.   Mexico  may also

         asset  or ownership interest  to other enterprises  with majority

          obligations of national treatment set  out in Article 1102 apply.
          This provision is subject to Article 1108.          ownership  by 
Mexican  nationals,  as  defined  by  the  Mexican
          Constitution.   On  expiration  of  the  three-year  period,  the
Title:Annex IV -- Schedule of Mexico
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:2069
 
                                        Annex IV 
                                   Schedule of Mexico 
 
                 Mexico takes an exception to Article 1103 for treatment 
            accorded under all bilateral or multilateral international 
            agreements in force or signed prior to the date of entry into 
            force of this Agreement. 
 
                 For international agreements in force or signed after the 
            date of entry into force of this Agreement, Mexico takes an 
            exception to Article 1103 for treatment accorded under those 
            agreements involving: 
 
                 (a)  aviation; 
 
                 (b)  fisheries; 
 
                 (c)  maritime matters, including salvage; or 
 
                 (d)  telecommunications transport networks and 
                      telecomunications transport services (this exception 
                      does not apply to measures covered by Chapter 
                      Thirteen (Telecommunications) or to the production, 
                      sale or licensing of radio or television 
                      programming). 
 
                 With respect to state measures not yet set out in Annex I 
            pursuant Article 1108(2), Mexico takes an exception to Article 
            1103 for international agreements signed within two years of 
            the date of entry into force of this Agreement. 
 
                 For greater certainty, Article 1103 does not apply to any 
            current or future foreign aid programs to promote economic 
            development, such as those governed by the Energy Economic 
            Cooperation Program with Central America and the Caribbean 
            (Pacto de San Jos ) and the OECD Agreement on Export Credits.  
 
Title:Annex V -- Schedule of Mexico
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:6400

                                       Annex V 
                                   Schedule of Mexico 
 
 
            Sector:             Communications 
 
            Sub-Sector:         Telecommunications 
 
            Industry            CMAP 720006    Other Telecommunications 
            Classification:                    Services (limited to private 
                                               networks) 
 
            Level of            Federal 
            Government: 
 
            Measures:           Ley de V as Generales de Comunicaci n, Libro 
                                I, Cap tulo III 
 
                                Reglamento de Telecomunicaciones, Cap tulo 
                                II, Cap tulo IV  
 
            Description:        Resale of circuit capacity of a private 
                                network may not exceed 30 percent of such 
                                capacity. 
 
                      Annex V - Mexico                                      

            Sector:             Private Educational Services 
 
            Sub-Sector: 
 
            Industry            CMAP 921101    Private Preschool Educational 
            Classification:                    Services 
                                CMAP 921102    Private Primary School 
                                               Educational Services 
                                CMAP 921103    Private Secondary School 
                                               Educational Services 
                                CMAP 921104    Private Middle High 
                                               (Preparatory) School  
                                               Educational Services 
                                CMAP 921105    Private Higher School 
                                               Educational Services 
                                CMAP 921106    Private Educational Services 
                                               that combine Preschool, 
                                               Primary, Secondary, Middle 
                                               High and Higher School 
                                               Instruction 
 
            Level of            Federal and State 
            Government: 
 
            Measures:           Constituci n Pol tica de los Estados Unidos 
                                Mexicanos, Art culos 3, 5 
 
                                Ley Federal de Educaci n Cap tulos I, II, III

                                y IV 
 
                                Ley para la Coordinaci n de la Educaci n 
                                Superior, Cap tulos I y II 
 
                                Ley Reglamentaria del Art culo 5o. 
                                Constitucional relativo al Ejercicio de las 
                                Profesiones en el Distrito Federal, 
                                Cap tulos I, III, Secciones I, III 
 
                                Reglamento de la Ley Reglamentaria del 
                                Art culo 5o. Constitucional relativo al 
                                Ejercicio de las Profesiones en el Distrito 
                                Federal, Cap tulo V 
 
            Description:        For the provision of primary, secondary, 
                                "normal" or  worker or peasant educational 
                                services, prior and express authorization 
 
                            Annex V - Mexico                                
 
                                granted by the Secretar a de Educaci n 
                                P blica or the state competent authority is 
                                required. Such authorization is granted or 
                                canceled on a case-by-case basis in 
                                accordance with public convenience and 
                                necessity, at the discretion of the 
                                Secretar a de Educaci n P blica or the state 
                                competent authority. 
 
                                No legal remedy is available under Mexican 
                                law for the denial or revocation of such 
                                authorization. 
 
                             Annex V - Mexico                               
            
            Sector:             Transportation 
 
            Sub-Sector:         Land Transportation 
 
            Industry            CMAP 973103    Vehicle Parking Services 
            Classification:                    (parking and garage services) 

                                CMAP 973104    Weight Scale Services for 
                                               Transportation 
                                CMAP 973105    Towing Services for Vehicles 
                                CMAP 973106    Other Services Related to Land

                                               Transportation (not mentioned 
                                               in CMAP 9731, 7112 and 7113) 
 
            Level of            Federal 
            Government: 
 
            Measures:           Ley de V as Generales de Comunicaci n 
 
            Description:        A permit issued by the Secretar a de 
                                Comunicaciones y Transportes is required to 
                                provide services related to land 
                                transportation.  
 
Title:Annex VI -- Schedule of Mexico
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:6548

                                        Annex VI 
                                   Schedule of Mexico 
 
 
            Sector:             Communications  
 
            Sub-Sector:         Entertainment Services (Cinema) 
 
            Industry            CMAP 941102    Private Services of 
            Classification:                    Distribution and Films Rental 
 
            Measures:           Ley de la Industria Cinematogr fica 
 
                                Reglamento de la Ley de la Industria 
                                Cinematogr fica 
 
            Description:        Cross-Border Services 
 
                                A "distributor" of films produced outside of 
                                Mexico is required to provide to the Cineteca

                                Nacional no more than one copy of two film 
                                titles for each five film titles imported by 
                                the distributor into Mexico. 

                             Annex VI - Mexico                              
 
            Sector:             Professional, Technical and Specialized 
                                Services 
 
            Sub-Sector:         Professional Services 
 
            Industry            CMAP 951002    Legal Services (limited to 
            Classification:                    foreign legal consultancy) 
 
            Level of            Federal and State 
            Government: 
            Measures: 
 
            Description:        1.   Mexico will ensure that: 
 
                                (a)  a lawyer authorized to practice in a 
                                     province of Canada or a state of the 
                                     United States who seeks to practice as
a 
                                     foreign legal consultant in Mexico will 
                                     be granted a license to do so if lawyers

                                     licensed in Mexico are accorded 
                                     equivalent treatment in such province or

                                     state; and 
 
                                (b)  a law firm headquartered in a province 
                                     of Canada or a state of the United 
                                     States that seeks to establish in Mexico

                                     to provide legal services through 
                                     licensed foreign legal consultants will 
                                     be authorized to do so if law firms 
                                     headquartered in Mexico are accorded 
                                     equivalent treatment in such province or

                                     state. 
 
                                2.   Mexico will, pursuant to paragraph 1(a),

                                deny benefits to foreign lawyers employed by 
                                or associated with foreign legal consultancy 
                                firms established in Mexico, pursuant to 
                                paragraph 1(b), if such lawyers are not 
                                authorized to practice in a province of 
                                Canada or a state of the United States that 
                                authorizes lawyers licensed in Mexico to 
                                practice as foreign legal consultants in its 
                                territory. 
 
                                3.   Subject to paragraphs 1 and 2, Mexico 
                                will adopt measures regarding the practice of

                                foreign legal consultants in the territory of

                                Mexico, including matters related to 
                                association with and hiring of lawyers 
 
                            Annex VI - Mexico                               

                                licensed in Mexico. 
 
                            Annex VI - Mexico                               

            Sector:             Transportation 
 
            Sub-Sector:         Land Transportation 
 
            Industry            CMAP 711201    Road Transport Services for 
            Classification:                    Construction Materials 
                                CMAP 711202    Road Transport Moving Services

                                CMAP 711203    Other Services of Specialized 
                                               Cargo Transportation  
                                CMAP 711204    General Trucking Services  
                                CMAP 711311    Inter-City Busing Services 
                                CMAP 711318    School and Tourist 
                                               Transportation Services 
                                               (limited to tourist 
                                               transportation services) 
 
            Measures: 
 
            Description:        An enterprise authorized in Mexico to provide

                                bus or truck transportation services may use 
                                equipment of its own, leased vehicles with an

                                option to purchase (financial leasing), 
                                leased vehicles (operational leasing), or 
                                short-term rental vehicles. 
 
                                Federal measures will be established in 
                                relation to leasing and rental operations. 
 
  Title:Annex VII -- Schedule of Mexico
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:54040

                             Annex VII(A) - Mexico                          
                
                                      Annex VII 
                                  Schedule of Mexico 
                                      Section A 
 
 
          Sector:                    Financial Services 
 
          Sub-Sector:                Holding Companies (Sociedades 
                                     Controladoras) 
                                     Commercial Banks (Instituciones de 
                                     Cr dito) 
 
          Industry Classification:   Holding Companies (Not applicable) 
                                     CMAP 811030    Commercial Banks 
 
          Type of Reservation:       Establishment of Financial 
                                     Institutions (Article 1403) 
                                     National Treatment  (Article 1405) 
 
          Level of Government:       Federal 
 
          Measures:                  Ley para Regular las Agrupaciones 
                                     Financieras, Art culo 18 
 
                                     Ley de Instituciones de Cr dito, 
                                     Art culos 11, 15 
 
          Description:               Aggregate foreign investments in 
                                     holding companies and in commercial 
                                     banks are limited to 30 percent of 
                                     common stock capital ("capital 
                                     ordinario").  These percentage limits 
                                     do not apply to investments in foreign 
                                     financial affiliates as such term is 
                                     defined in, and subject to terms and 
                                     conditions under, Sections B and C of 
                                     this Schedule. 
 
          Phase-Out:                 None 
 
                               Annex VII(A) - Mexico                        
 
          Sector:                    Financial Services 
 
          Sub-Sector:                Securities Firms (Casas de Bolsa) 
                                     Securities Specialists (Especialistas 
                                     Burs tiles) 
 
          Industry Classification:   CMAP 812001    Securities Firms 
                                                    Securities Specialists 
                                                    (Not Applicable) 
 
          Type of Reservation:       Establishment of Financial 
                                     Institutions (Article 1403) 
                                     National Treatment (Article 1405) 
 
          Level of Government:       Federal 
 
          Measures:                  Ley del Mercado de Valores, Art culo 
                                     17-II 
 
          Description:               Aggregate foreign investments in 
                                     securities firms and securities 
                                     specialists are limited to 30 percent 
                                     of capital ("capital social") and 
                                     individual foreign investments are 
                                     limited to 10 percent of capital, 
                                     while individual investments by 
                                     Mexicans may, with approval from the 
                                     Secretar a de Hacienda y Cr dito 
                                     P blico, rise to 15 percent of 
                                     capital.  These percentage limits do 
                                     not apply to investments in foreign 
                                     financial affiliates as such term is 
                                     defined in, and subject to terms and 
                                     conditions under, Sections B and C of 
                                     this Schedule. 
 
          Phase-Out:                 None 
 
                           Annex VII(A) - Mexico                            
 
          Sector:                    Financial Services 
 
          Sub-Sector:                General Deposit Warehouses (Almacenes 
                                     Generales de Dep sito) 
                                     Financial Leasing Companies 
                                     (Arrendadoras Financieras) 
                                     Financial Factoring Companies 
                                     (Empresas de Factoraje Financiero) 
                                     Bonding Companies (Instituciones de 
                                     Fianzas) 
 
          Industry Classification:   CMAP 811042    General Deposit 
                                                    Warehouses 
                                     CMAP 811043    Financial Leasing 
                                                    Companies Financial 
                                                    Factoring Companies 
                                                    (Not Applicable) 
                                     CMAP 813001    Bonding Companies 
 
          Type of Reservation:       Establishment of Financial Intitutions 
                                     (Article 1403) 
                                     National Treatment (Article 1405) 
 
          Level of Government:       Federal 
 
          Measures:                  Ley General de Organizaciones y 
                                     Actividades Auxiliares del Cr dito, 
                                     Art culo 8-III-1 
 
                                     Ley Federal de Instituciones de 
                                     Fianzas, Art culo 15-XIII 
 
          Description:               Aggregate foreign investments in 
                                     general deposit warehouses, financial 
                                     leasing companies, financial factoring 
                                     companies and bonding companies must 
                                     be less than 50 percent of paid-in 
                                     capital ("capital pagado").  These 
                                     percentage limits do not apply to 
                                     investments in foreign financial 
                                     affiliates as such term is defined in, 
                                     and subject to terms and conditions 
                                     under, Section B of this Schedule. 
 
          Phase-Out:                 None 
 
                                 Annex VII(A) - Mexico                      
 
          Sector:                    Financial Services 
 
          Sub-Sector:                Credit Unions (Uniones de Cr dito) 
                                     Financial Agents (Comisionistas 
                                     Financieros) 
                                     Foreign Exchange Firms (Casas de 
                                     Cambio) 
 
          Industry Classification:   CMAP 811041    Credit Unions 
                                                    Financial Agents (Not 
                                                    Applicable) 
                                     CMAP 811044    Foreign Exchange Firms 
 
          Type of Reservation:       Establishment of Financial 
                                     Institutions (Article 1403) National 
                                     Treatment (Article 1405) 
 
          Level of Government:       Federal 
 
          Measures:                  Ley General de Organizaciones y 
                                     Actividades Auxiliares del Cr dito, 
                                     Art culos 8-III-1, 82-III 
 
                                     Ley de Instituciones de Cr dito, 
                                     Art culo 92 
 
                                     Reglas de la Secretar a de Hacienda y 
                                     Cr dito P blico  
          Description:               Foreign investments in credit unions, 
                                     financial agents and foreign exchange 
                                     firms are not allowed.  This 
                                     limitation does not apply to 
                                     investments in foreign financial 
                                     affiliates as such term is defined in, 
                                     and subject to terms and conditions 
                                     under, Section B of this Schedule. 
 
          Phase-Out:                 None 
 
 
          Sector:                    Financial Services 
 
                             Annex VII(A) - Mexico                          
 
          Sub-Sector:                Development Banks (Bancos de 
                                     Desarrollo) 
 
          Industry Classification:   CMAP 811021    Development Banks 
 
          Type of Reservation:       Establishment of Financial 
                                     Institutions (Article 1403) National 
                                     Treatment (Article 1405) 
 
          Level of Government:       Federal 
 
          Measures:                  Ley de Instituciones de Cr dito, 
                                     Art culo 33 
 
          Description:               Foreign investments in development 
                                     banks are not allowed.  
 
          Phase-Out:                 None 
 
                                Annex VII(A) - Mexico                       
 
          Sector:                    Financial Services 
 
          Sub-Sector:                Insurance Companies (Instituciones de 
                                     Seguros) 
 
          Industry Classification:   CMAP 813002    Insurance Companies 
 
          Type of Reservation:       Establishment of Financial 
                                     Institutions (Article 1403) National 
                                     Treatment (Article 1405) 
 
          Level of Government:       Federal 
 
          Measures:                  Ley General de Instituciones y 
                                     Sociedades Mutualistas de Seguros, 
                                     Art culo 29-I 
 
          Description:               Aggregate foreign investments in 
                                     insurance companies must be less than 
                                     50 percent of paid-in capital 
                                     ("capital pagado").  This percentage 
                                     limit does not apply to investments in 
                                     foreign financial affiliates as such 
                                     term is defined in Sections B and C of 
                                     this Schedule, or in insurance 
                                     companies, in both cases subject to 
                                     terms and conditions under Sections B 
                                     and C of this Schedule. 
 
          Phase-Out:                 None 
 
                              Annex VII(A) - Mexico                         
 
          Sector:                    Financial Services 
 
          Sub-Sector:                Holding Companies (Sociedades 
                                     Controladoras) 
                                     Securities Firms (Casas de Bolsa) 
                                     Securities Specialists (Especialistas 
                                     Burs tiles) 
                                     General Deposit Warehouses (Almacenes 
                                     Generales de Dep sito) 
                                     Financial Leasing Companies 
                                     (Arrendadoras Financieras) 
                                     Financial Factoring Companies 
                                     (Empresas de Factoraje Financiero) 
                                     Savings and Loan Companies (Sociedades 
                                     de Ahorro y Pr stamo) 
                                     Managing Companies of Investment 
                                     Companies (Sociedades Operadoras de 
                                     Sociedades de Inversi n) 
                                     Investment Companies (Sociedades de 
                                     Inversi n) 
                                     Bonding Companies (Instituciones de 
                                     Fianzas) 
                                     Insurance Companies (Instituciones de 
                                     Seguros)   
 
          Industry Classification:                  Holding Companies (Not 
                                                    Applicable) 
                                     CMAP 812001    Securities Firms  
                                                    Securities Specialists 
                                                    (Not Applicable) 
                                     CMAP 811042    General Deposit 
                                                    Warehouses 
                                     CMAP 811043    Financial Leasing 
                                                    Companies 
                                                    Financial Factoring 
                                                    Companies (Not 
                                                    Applicable) 
                                                    Saving and Loans 
                                                    Companies (Not 
                                                    Applicable) 
                                     CMAP 812003    Managing Companies of 
                                                    Investment Companies 
                                     CMAP 812002    Investment Companies 
                                     CMAP 813001    Bonding Companies 
                                     CMAP 813002    Insurance Companies 
 
          Type of Reservation:       Establishment of Financial 
                                     Institutions (Article 1403) 
                                     National Treatment (Article 1405) 
 
                            Annex VII(A) - Mexico                           
 
          Level of Government:       Federal 
 
          Measures:                  Ley para Regular las Agrupaciones 
                                     Financieras, Art culo 18 
 
                                     Ley del Mercado de Valores, Art culo 
                                     17-II 
 
                                     Ley General de Organizaciones y 
                                     Actividades Auxiliares del Cr dito, 
                                     Art culos 8-III-1, 38-G 
 
                                     Ley de Sociedades de Inversi n, 
                                     Art culos 9-III, 29-VI 
 
                                     Ley Federal de Instituciones de 
                                     Fianzas, Art culo 15-XIII 
 
                                     Ley General de Instituciones y 
                                     Sociedades  Mutualistas de Seguros, 
                                     Art culo 29-I 
 
          Description:               Foreign governments and foreign state 
                                     enterprises may not invest, directly 
                                     or indirectly, in holding companies, 
                                     securities firms, securities 
                                     specialists, general deposit 
                                     warehouses, financial leasing 
                                     companies, financial factoring 
                                     companies, savings and loan companies, 
                                     managing companies of investment 
                                     companies, investment companies, 
                                     bonding companies or insurance 
                                     companies. 
 
          Phase-Out:                 None 
 
                           Annex VII(A) - Mexico                            

          Sector:                    Financial Services 
 
          Sub-Sector:                Commercial Banks (Instituciones de 
                                     Cr dito) 
 
          Industry Classification:   CMAP 811030    Commercial Banks 
 
          Type of Reservation:       Establishment of Financial 
                                     Institutions (Article 1403) National 
                                     Treatment (Article 1405) 
 
          Level of Government:       Federal 
 
          Measures:                  Ley de Instituciones de Cr dito, 
                                     Art culo 15 
 
          Description:               Foreign entities that exercise 
                                     governmental functions may not invest, 
                                     directly or indirectly, in commercial 
                                     banks. 
 
          Phase-Out:                 None 
 
                               Annex VII(A) - Mexico                        

 
          Sector:                    Financial Services 
 
          Sub-Sector:                Insurance 
 
          Industry Classification:   CMAP 813002    Insurance 
 
          Type of Reservation:       Cross-Border Trade (Article 1404) 
                                     National Treatment (Article 1405) 
 
          Level of Government:       Federal 
 
          Measures:                  Ley General de Instituciones y 
                                     Sociedades Mutualistas de Seguros, 
                                     Art culo 3 
 
          Description:               Mexico reserves its existing 
                                     prohibitions and restrictions on 
                                     cross-border trade in insurance 
                                     services, which do not now include 
                                     restrictions on the right of 
                                     individuals to purchase, by physical 
                                     mobility, life and health insurance.  
                                     Mexico is not reserving its present 
                                     restrictions with respect to the 
                                     ability of residents of Mexico to 
                                     purchase from cross-border insurance 
                                     providers of another Party the 
                                     following types of insurance: 
 
                                     (a)  tourist insurance (including 
                                          travel accident and motor vehicle 
                                          insurance for non-resident 
                                          tourists, but not insurance of 
                                          risks of liability to third 
                                          parties) for individuals, 
                                          purchased without solicitation 
                                          via physical mobility of such 
                                          individuals;  
 
                                     (b)  (i)  cargo insurance to and from 
                                               each Party, purchased 
                                               without solicitation, for 
                                               goods in international 
                                               transit from point of origin 
                                               to final destination, and  
 
                                          (ii) insurance purchased without 
                                               solicitation for a vehicle 
                                               during the period of its use 
 
                                 Annex VII(A) - Mexico                      
          
                                               in transportation of cargo 
                                               (other than insurance of 
                                               risks of liabilities to 
                                               third parties), provided 
                                               such vehicle is licensed and 
                                               registered outside Mexico 
                                               (including vehicles in 
                                               maritime shipping, 
                                               commercial aviation, space 
                                               launching and freight 
                                               (including satellites)); and 
 
                                     (c)  intermediary services incidental 
                                          to subparagraphs (a) and (b) 
                                          purchased without solicitation. 
 
                                     For greater clarity, this reservation 
                                     does not apply to reinsurance. 
 
          Phase-Out:                 None 
 
                             Annex VII(A) - Mexico                          
 
          Sector:                    Financial Services 
 
          Sub-Sector:                Banking 
 
          Industry Classification:   CMAP 811021    Development Banks 
                                     CMAP 811030    Commercial Banks 
 
          Type of Reservation:       Establishment of Financial 
                                     Institutions (Article 1403) Cross- 
                                     Border Trade (Article 1404) 
                                     National Treatment (Article 1405) 
 
          Level of Government:       Federal 
 
          Measures:                  Ley Org nica de Nacional Financiera, 
                                     Art culo 7 
 
                                     Ley Org nica del Banco Nacional del 
                                     Ej rcito, la Fuerza A rea y la Armada 
 
          Description:               The following activities are reserved 
                                     solely to Mexican development banks: 
 
                                     (a)  acting as custodians of 
                                          securities and cash funds 
                                          deposited by or in the 
                                          administrative or judiciary 
                                          authorities, and acting as 
                                          custodian of goods that have been 
                                          seized according to Mexican 
                                          measures; and 
 
                                     (b)  managing the savings funds, 
                                          retirement plans and any other 
                                          funds or property of the 
                                          personnel of the Secretar a de la 
                                          Defensa Nacional, Secretar a de 
                                          Marina and the Mexican armed 
                                          forces, and performing other 
                                          financial activities pertaining 
                                          to the financial resources of 
                                          such personnel. 
 
          Phase-Out:                 None 
 
                            Annex VII(B) - Mexico                           
 
                                      Section B 
 
                Establishment and Operation of Financial Institutions 
 
 
          Type of Reservation:     Establishment of Financial Institutions 
                                   (Article 1403) 
                              National Treatment (Article 1405) 
 
          1.   The provisions of paragraphs 2 through 10 of this Section 
          shall apply during the transition period, except as otherwise 
          specifically provided in paragraphs 9 and 10 of this Section. 
 
          2.   For the types of financial institutions listed in the chart 
          in this paragraph, the maximum capital to be authorized by Mexico 
          for a foreign financial affiliate, measured as a percentage of 
          the aggregate capital of all financial institutions of the same 
          type in Mexico, shall not exceed the percentage set forth in the 
          chart in this paragraph: 
 
               Type of Financial Institution Maximum Individual Capital to  
            
_____________________________ _____________________________ 
                                             Be Authorized (Percentage of   
                                       
  _____________ 
                                             the Aggregate Capital of All 
                                             Institutions of the Same Type) 
 
               Commercial Banks                             1.5% 
               Securities Firms                             4.0% 
               Insurance Companies 
                    Casualty                           1.5% 
                    Life and Health                         1.5% 
 
          In the case of an acquisition by an investor of another Party of 
          a financial institution established in Mexico, the sum of the 
          authorized capital of the acquired institution and the authorized 
          capital of any foreign financial affiliate already controlled by 
          the acquiror may not, at the time of acquisition or at any time 
          thereafter during the transition period, exceed the applicable 
          limit set forth in the chart in this paragraph. 
 
          This paragraph will not apply to new or existing Mexican 
          insurance companies invested in by insurance investors of another 
          Party (or their affiliates) pursuant to paragraph 7 of this 
          Section or paragraph 4 of Section C of this Schedule. 
 
                             Annex VII(B) - Mexico                          
  
          3.   For purposes of the proper administration of the capital 
          limits in this Section, the following provisions shall apply: 
 
               (a)  Each foreign financial affiliate shall have an 
                    authorized capital determined by Mexico, and the paid- 
                    in capital of such an institution shall not be less 
                    than that authorized at the time of approval of its 
                    establishment.  After the time of establishment, Mexico 
                    may permit authorized capital to exceed paid-in 
                    capital.  Authorized capital shall not be reduced by 
                    any measure of Mexico (other than prudential measures) 
                    below paid-in capital.  The maximum size of the 
                    operations of each foreign financial affiliate shall be 
                    determined, on a national treatment basis, as a 
                    function of the lesser of its capital or its authorized 
                    capital. 
 
               (b)  Mexico reserves the right to impose limitations on 
                    transfers of assets or liabilities by foreign financial 
                    affiliates that have the effect of evading the capital 
                    limits set forth in this Schedule.  This subparagraph 
                    does not apply to bona fide transfers of funds to make  
                             
      ____ ____ 
                    overnight deposits or bona fide transfers of banking    
                               
      ____ ____ 
                    liabilities. 
 
          4.   No foreign financial affiliate may issue subordinated 
          debentures, other than to the investor of another Party that owns 
          and controls the affiliate.   
 
          5.   The aggregate of the authorized capital of all foreign 
          financial affiliates of the same type, measured as a percentage 
          of the aggregate capital of all financial institutions of such 
          type in Mexico, shall not exceed the percentage set forth in the 
          chart in this paragraph for that type of institution, except for 
          insurance companies as set out in paragraph 6 of this Section.  
          Beginning one year after the date of entry into force of this 
          Agreement, these initial limits shall increase annually in equal 
          increments so as to reach the final limits specified in the chart 
          in this paragraph at the beginning of the last year of the 
          transition period: 
 
 
          Type of Financial Institution      Percentage of Total Capital    
     
_____________________________      ___________________________ 
                                       Initial Limit        Final Limit 
 
               Commercial banks                 8%                    15% 
 
                        Annex VII(B) - Mexico                               
  
               Securities firms                10%                    20% 
               Factoring companies             10%                    20% 
               Leasing companies               10%                    20% 
 
          Any capital in existence as of the date of signature of this 
          Agreement of a foreign bank branch established in Mexico prior to 
          such date shall be excluded from each of the aggregate capital 
          limits referred to in this Schedule. 
 
          6.   The aggregate of the authorized capital of all foreign 
          insurance affiliates, measured as a percentage of the aggregate 
          capital of all insurance companies in Mexico, shall not exceed 
          the percentage set forth in the chart in this paragraph for the 
          respective one-year periods beginning on each of the following 
          dates: 
 
                    Date                     Percentage of Total Capital    
                ____                
    ___________________________ 
 
               January 1, 1994                            6% 
               January 1, 1995                            8% 
               January 1, 1996                            9% 
               January 1, 1997                           10% 
               January 1, 1998                           11% 
               January 1, 1999                           12% 
 
          If the date of entry into force of this Agreement occurs on a 
          date prior to January 1, 1994, that date shall become the initial 
          date for purposes of this chart, and each succeeding anniversary 
          of the date of entry into force of this Agreement shall become 
          the next succeeding date in this chart, with the percentages 
          listed in this chart applying to each of the respective periods 
          as so adjusted.  If the date of entry into force of this 
          Agreement occurs on a date after January 1, 1994, the dates and 
          corresponding limits in this chart shall not be changed. 
 
          The individual and aggregate capital limits described in 
          paragraphs 2 and 6 of this Section shall be measured separately 
          (through separate accounting) for life and non-life insurance 
          operations, but both types of insurance operations may be 
          conducted either by a single or separate foreign financial 
          affiliates.   
 
          7.   An insurance investor of another Party may elect an 
          alternative procedure for investment in Mexico through phasing-in 
          an equity interest in a new or existing Mexican insurance 
          company, and thereby exempt such Mexican company from the capital 
 
                              Annex VII(B) - Mexico                         
  
          limits in paragraphs 2 and 6 of this Section.  In order to 
          qualify, the percentage of the Mexican insurance company's common 
          voting stock that is owned by Mexican persons must not be less 
          than the levels set forth in the chart in this paragraph for the 
          respective one-year periods beginning on each of the following 
          dates: 
 
                    Date                Mexican Interest                    
 
               January 1, 1994                 70% 
               January 1, 1995                 65% 
               January 1, 1996                 60% 
               January 1, 1997                 55% 
               January 1, 1998                 49% 
               January 1, 1999                 25% 
 
          If the date of entry into force of this Agreement occurs on a 
          date prior to January 1, 1994, that date shall become the initial 
          date for purposes of this chart, and each succeeding anniversary 
          of the date of entry into force of this Agreement shall become 
          the next succeeding date in this chart, with the percentages 
          listed in this chart applying to each of the respective periods 
          as  adjusted.  If the date of entry into force of this Agreement 
          occurs on a date after January 1, 1994, the dates and 
          corresponding limits in this chart shall nonetheless not be 
          changed. 
 
          On and after January 1, 2000 (or, if the date of entry into force 
          of this Agreement occurs on a date prior to January 1, 1994, on 
          and after the sixth anniversary of such date), the percentage 
          requirement of Mexican ownership set forth in this paragraph 
          shall no longer apply. 
 
          This paragraph is further modified by paragraph 4 of Section C of 
          this Schedule to the extent set forth therein.   
 
          8.   The aggregate assets of foreign financial affiliates that 
          are limited scope financial institutions within the meaning of 
          paragraph 2 of Section C of this Schedule shall not exceed three 
          percent of the sum of: 
 
               (a)  the aggregate assets of all commercial banks in Mexico; 
                    plus 
 
               (b)  the aggregate assets of all types of limited scope 
                    financial institutions in Mexico.   
 
                       Annex VII(B) - Mexico                                
 
          Lending by affiliates of automobile manufacturing companies with 
          respect to the manufacturers' vehicles shall not be subject to or 
          taken into account in determining compliance with this three 
          percent limit.   
 
          9.   The limits in paragraphs 2, 5, 6 and 8 of this Section shall 
          be removed at the end of the transition period.  If the sum of 
          the authorized capital of foreign financial affiliates, measured 
          as a percentage of the aggregate capital of all financial 
          institutions of such type in Mexico, reaches the percentage set 
          forth in the chart in this paragraph for such type of 
          institutions, then Mexico shall have the right, once during the 
          four years following the end of the transition period, to freeze 
          such aggregate capital percentage at its then-existing level: 
 
               Commercial banks                    25% 
               Securities firms                    30% 
 
          If applied, such a restriction will have a duration not to exceed 
          a period of three years.   
 
          10.  Mexico may deny a license to establish a foreign financial 
          affiliate during the transition period (and, in the case of 
          paragraph 9 of this Section, during the additional periods 
          described in that paragraph) if after such issuance the sum of 
          the authorized capital of all foreign financial affiliates of the 
          same type would exceed the applicable percentage limit for that 
          type of institution in paragraph 5, 6, 8 or 9 of this Section. 
 
          11.  The provisions of paragraphs 12 through 17 of this Section 
          shall apply immediately upon the date of entry into force of this 
          Agreement and at all times thereafter, except as otherwise 
          specifically provided in such paragraphs.  Any amendment or 
          modification to a measure adopted or maintained pursuant to 
          paragraphs 12 through 15 of this Section shall not decrease the 
          conformity of the measure, as it existed immediately before such 
          amendment or modification, with Articles 1403 through 1408. 
 
          12.  Mexico may require that a foreign financial affiliate (other 
          than a foreign insurance affiliate) be wholly-owned by an 
          investor of another Party.  Mexico may also restrict any foreign 
          financial affiliate from establishing agencies, branches, or 
          other direct or indirect subsidiaries in the territory of any 
          other country.   
 
          13.  Following the transition period, acquisition of a commercial 
 
                               Annex VII(B) - Mexico                        

 
          bank established in Mexico, or of the assets or liabilities 
          thereof, by an investor of another Party will only be authorized 
          by Mexico, subject to reasonable prudential considerations on a 
          case-by-case basis, if the sum of the capital of the acquired 
          commercial bank and the capital of any foreign commercial bank 
          affiliate already controlled by the acquiror would not exceed 
          four percent of the aggregate capital of all commercial banks in 
          Mexico.   
 
          14.  Mexico may adopt measures that (a) limit eligibility to 
          establish a foreign financial affiliate in Mexico to an investor 
          of another Party that is, directly or through any of its 
          affiliates, engaged in the same general type of financial 
          services in the territory of the other Party; and (b) limit such 
          investor (together with its affiliates) to no more than one 
          institution of the same type in Mexico.  In determining what 
          types of operations an investor of another Party is engaged in 
          for purposes of the preceding sentence, all types of insurance 
          shall be considered to be only one type of financial service; but 
          both life and non-life insurance operations may be conducted 
          either by a single or separate foreign financial affiliates.   
 
                           Governmental Insurance Programs 
 
          Type of Reservation:     Establishment of Financial Institutions 
                                   (Articles 1403) 
                              Cross-Border Trade (Article 1404) 
                              National Treatment (Article 1405) 
 
          15.  The activities and operations of the existing Mexican 
          governmental insurance programs conducted by Aseguradora 
          Mexicana, S.A. or Aseguradora Hidalgo, S.A. (including insurance 
          for government employees, agencies, instrumentalities and public 
          entities) are excluded from Articles 1403, 1404 and 1405 for so 
          long as such firm is controlled by the Government of Mexico and 
          for a commercially reasonable time after such governmental 
          control ceases. 
 
                                  Cross-Border Trade 
 
          Type of Reservation:     Cross-Border Trade (Article 1404) 
 
          16.  In order to avoid impairment of the conduct of Mexico's 
          monetary and exchange rate policies, cross-border financial 
          service providers of another Party shall not be permitted to 
          provide financial services into the territory of Mexico or to 
 
                   Annex VII(B) - Mexico                                    
 
          residents of Mexico, and residents of Mexico may not purchase 
          financial services from cross-border financial service providers 
          of another Party, if such transactions are denominated in Mexican 
          pesos. 
 
                       Annex VII(B) - Mexico                                

 
                   Existing Operations of Foreign Commercial Banks 
 
          Type of Reservation:     Establishment of Financial Institutions 
                                   (Article 1403) 
                              National Treatment (Article 1405) 
                              Most-Favored-Nation Treatment (Article 1406) 
                              New Financial Services and Data Processing 
                              (Article 1407) 
                              Senior Management and Boards of Directors 
                              (Article 1408) 
 
          17.  The benefits of this Agreement shall not be extended to a 
          foreign bank branch existing in Mexico on the date of entry into 
          force of this Agreement.  The existing legal regime will continue 
          to apply to such a branch for so long as it operates in that 
          form.  Such a branch shall be permitted to convert to a 
          subsidiary pursuant to the terms of this Schedule, and on 
          conversion shall be covered by this Agreement.  In the event of 
          conversion the existing capital of such branch on the date of 
          signature of this Agreement shall not be counted against such 
          foreign commercial bank affiliate's individual capital limit, or 
          the aggregate capital limits for commercial banks. 
 
 
                    Annex VII(C) - Mexico                                   

                                      Section C 
 
                                 Specific Commitments 
 
 
          1.   Mexico shall retain discretion to approve, on a case-by-case 
          basis, any affiliation of a commercial bank or securities firm 
          with a commercial or industrial corporation that is established 
          in Mexico, if Mexico determines that such affiliation is harmless 
          and, in the case of banking, either (a) not substantial, or (b) 
          the financial-related activities of the commercial or industrial 
          corporation account for at least 90 percent of its annual income 
          worldwide, and the non-financial activities of such commercial or 
          industrial corporation are of a type that Mexico determines to be 
          acceptable.  Affiliation with a non-resident commercial or 
          industrial corporation that is not established in Mexico will not 
          be a reason for denial of an application to establish or acquire 
          a commercial bank or securities firm in Mexico. 
 
          2.   Non-bank investors of another Party shall be permitted to 
          establish one or more limited scope financial institutions in 
          Mexico to provide separately consumer lending, commercial 
          lending, mortgage lending or credit card services on terms no 
          less favorable than those applied to like domestic firms under 
          Mexican measures.  Mexico may permit lending services closely 
          related to the principal authorized business of a limited scope 
          financial institution to be carried out by that institution.  
          Such institutions shall be provided the opportunity to raise 
          funds in the securities market for business operations subject to 
          normal terms and conditions.  Mexico may restrict such limited 
          scope financial institutions from taking deposits. 
 
          3.   Within two years of the date of entry into force of this 
          Agreement, Mexico shall conduct a study of the desirability of 
          and, if desirable, the possible methods of establishing limited 
          scope securities firms which would have more limited powers than 
          current securities firms.  Such limited scope securities firms 
          would be subject to differing capital requirements, depending on 
          the type and extent of business conducted, that would permit 
          lower minimum capital requirements than those currently 
          applicable to Mexican securities firms.  The basis of the study 
          will be prudential considerations and opportunities for 
          investment in the securities sector.  As part of the second 
          annual meeting of the Committee required under Article 1412,  
          Mexico shall report to the other Parties on the outcome of the 
          study, including any plans for the establishment of new 
          categories of securities firms. 
 
                        Annex VII(C) - Mexico                               
           
 
          4.   Notwithstanding paragraph 7 of Section B of this Schedule, 
          an insurance investor of another Party that together with its 
          affiliates had as of July 1, 1992 an active investment or 
          ownership interest of 10 percent or more in a Mexican insurance 
          company that was specifically approved by Mexico, may:  (a) 
          exercise any contract right or option in existence as of July 1, 
          1992 with respect to ownership interests in such Mexican 
          insurance company; and (b) effective the earlier of January 1, 
          1996 or two years following the date of entry into force of this 
          Agreement, acquire a controlling interest of up to 100 percent in 
          such Mexican insurance company.  Before the effective date 
          described in clause (b) of the preceding sentence, an insurance 
          investor of another Party (together with its affiliates) 
          described in that sentence may exercise any existing contract 
          right or option described in clause (a) of that sentence, and 
          choose to expand its interest in such Mexican insurance company 
          to the extent consistent with paragraph 7 of Section B of this 
          Schedule, or maintain its existing interest.  Mexico shall 
          maintain discretion to permit acceleration of the schedule for 
          equity participation in a Mexican insurance company by an 
          insurance investor of another Party described in the first 
          sentence of this paragraph. 
 
          5.   An investor of another Party that in accordance with Section 
          B is authorized to establish or acquire, and establishes or 
          acquires, a commercial bank or securities firm in Mexico may also 
          establish a financial holding company in Mexico, and thereby 
          establish or acquire other types of financial institutions in 
          Mexico, under the terms of Mexican measures. 
 
          6.   Mexico shall administer its licensing and approval 
          procedures during the transition period in a manner that does not 
          deny the benefits of the liberalization of existing measures 
          described in its Schedule to enterprises of another Party that 
          are ultimately controlled by nationals of that Party. 
 
 
                                     Definitions 
 
 
          For purposes of Sections B and C of this Schedule: 
 
          capital means the following, as defined in Mexican measures, 
          applied on a national treatment basis: 
 
             Type of Financial Institution     Concept of "Capital"         
   
                            Annex VII(C) - Mexico                           
               
               commercial banks              capital neto 
               securities firms              capital global 
               insurance companies 
                    casualty            requerimiento bruto 
                                             de solvencia (allocation to 
                                             casualty insurance) 
                    life and health          requerimiento bruto 
                                             de solvencia (allocation to 
                                             life and health insurance) 
               factoring companies           capital contable 
               leasing companies             capital contable; 
 
          investor of another Party means an investor of another Party as 
          defined in Article 1403(5); 
 
          foreign commercial bank affiliate means a foreign financial 
          affiliate that is a commercial bank; 
 
          foreign financial affiliate means a financial institution 
          established in Mexico and owned and controlled by an investor of 
          another Party; 
 
          foreign insurance affiliate means a foreign financial affiliate 
          that is an insurance company;  
 
          insurance investor of another Party means an investor of another 
          Party that is an insurance company; and 
 
          transition period means the period beginning with the date of 
          entry into force of this Agreement and ending on the earlier of 
          January 1, 2000, or six years from the date of entry into force 
          of this Agreement.   
 Title:Annex I -- United States
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain CHARSET=US-ASCII
Content-Length: 51566

                                        Annex I
                             Schedule of the United States

            Sector:             Energy

            Sub-Sector:         Atomic Energy

            Industry
            Classification:

            Type of             National Treatment (Article 1102)
            Reservation:

            Level of            Federal
            Government:

            Measures:           Atomic Energy Act of 1954, 42 U.S.C.    2011
                                et seq.

            Description:        Investment

                                A license is required for any person in the
                                United States to transfer, manufacture,
                                produce, use or import any facilities that
                                produce or use nuclear materials.  Such a
                                license may not be issued to any entity known
                                or believed to be owned, controlled or
                                dominated by an alien, a foreign corporation
                                or a foreign government (42 U.S.C.    2133,
                                2134).  The issuance of a license is also
                                prohibited for "production or utilization
                                facilities" for such uses as medical therapy
                                or research and development activities to any
                                corporation or other entity owned, controlled
                                or dominated by one of the foreign persons
                                described above (42 U.S.C.   2134(d)).

            Phase-Out:          None

                         Annex I - United States                            

            Sector:             Business Services

            Sub-Sector:         Export Intermediaries

            Industry            SIC 7389  Business Services, Not Elsewhere
            Classification:               Classified

            Type of             National Treatment (Article 1202)
            Reservation:        Local Presence (Article 1205)

            Level of            Federal
            Government:

            Measures:           Export Trading Company Act of 1982, 15 U.S.C.
                                   4011-4021

                                15 C.F.R. Part 325

            Description:        Cross-Border Services

                                Title III of the Export Trading Company Act
                                of 1982 authorizes the Secretary of Commerce
                                to issue "certificates of review" with
                                respect to export conduct.  The Act provides
                                for the issuance of a certificate of review
                                where the Secretary determines, and the
                                Attorney General concurs, that the export
                                conduct specified in an application will not
                                have the anticompetitive effects proscribed
                                by the Act.  A certificate of review limits
                                the liability under federal and state
                                antitrust laws in engaging in the export
                                conduct certified.

                                Only a "person" as defined by the Act can
                                apply for a certificate of review.  "Person"
                                means "an individual who is a resident of the
                                United States; a partnership that is created
                                under and exists pursuant to the laws of any
                                State or of the United States; a State or
                                local government entity; a corporation,
                                whether organized as a profit or nonprofit
                                corporation, that is created under and exists
                                pursuant to the laws of any State or of the
                                United States; or any association or
                                combination, by contract or other
                                arrangement, between such persons."

                         Annex I - United States                            

                                A foreign national or enterprise may receive
                                the protection provided by a certificate of
                                review by becoming a "member" of a qualified
                                applicant.  The regulations define "member"
                                to mean "an entity (U.S. or foreign) that is
                                seeking protection under the certificate with
                                the applicant.  A member may be a partner in
                                a partnership or a joint venture; a
                                shareholder of a corporation; or a
                                participant in an association, cooperative,
                                or other form of profit or nonprofit
                                organization or relationship, by contract or
                                other arrangement."

            Phase-Out:          None

                          Annex I - United States                           


            Sector:             Business Services

            Sub-Sector:         Export Intermediaries

            Industry            SIC 7389  Business Services, Not Elsewhere
            Classification:               Classified
            
            Type of             National Treatment (Article 1202)
            Reservation:        Local Presence (Article 1205)

            Level of            Federal
            Government:

            Measures:           Export Administration Act of 1979, Pub. L.
                                96-72, as amended

                                Export Administration Regulations, 15 C.F.R.
                                Parts 768 through 799

            Description:        Cross-Border Services

                                With some limited exceptions, the export from
                                the United States of all commodities, and all
                                technical data, requires either a general
                                license or a validated license or other
                                authorization granted by the Office of Export
                                Licensing, U.S. Department of Commerce.  A
                                general license requires no application or
                                documentation and is generally available for
                                use by all persons.

                                An application for a validated license may be
                                made only by a person subject to the
                                jurisdiction of the United States who is in
                                fact the exporter, or by his duly authorized
                                agent.  An application may be made on behalf
                                of a person not subject to the jurisdiction
                                of the United States by an authorized agent
                                in the United States, who then becomes the
                                applicant.

            Phase-Out:          None

                          Annex I - United States                           

            Sector:             Communications
            
            Sub-Sector:         Telecommunications (Enhanced or Value-Added
                                Services)

            Industry            CPC 7523  Data and Message Transmission
            Classification:               Services
                                CPC 75299 Other Telecommunications Services
                                          Not Elsewhere Classified (limited
                                          to enhanced or value-added
                                          services)

            Type of             National Treatment (Article 1102)
            Reservation:

            Level of            Federal
            Government:

            Measures:           F.C.C. Decision, International Communications
                                Policies Governing Designation of Recognized
                                Private Operating Agencies, 104 F.C.C. 2d
                                208, n. 123, n. 126 (1986)

                                47 C.F.R.   64.702 (definition of enhanced or
                                value-added services)

            Description:        Investment

                                If a U.S.-based foreign-owned enhanced
                                service provider obtains voluntary Recognized
                                Private Operating Agency certification from
                                the U.S. Department of State for purposes of
                                negotiating operating agreements with
                                governments other than the U.S. Government,
                                it must submit copies of all operating
                                agreements granted to it by foreign
                                governments and evidence of any refusal of a
                                foreign government to grant it an operating
                                agreement.  For purposes of this rule, a
                                service provider is generally considered to
                                be "foreign owned" if 20 percent or more of
                                its stock is owned by persons who are not
                                U.S. citizens.

            Phase-Out:          None
             
                        Annex I - United States                             

            Sector:             Manufacturing

            Sub-Sector:         Agricultural Chemicals

            Industry            SIC 2879  Pesticides and Agricultural
            Classification:               Chemicals, Not Elsewhere Classified

            Type of             National Treatment (Article 1102)
            Reservation:

            Measures:           Federal Insecticide, Fungicide, and
                                Rodenticide Act, 7 U.S.C.    136 et seq.

            Description:        Investment

                                The Administrator of the Environmental
                                Protection Agency may not knowingly disclose
                                information submitted by an applicant or
                                registrant under the Federal Insecticide,
                                Fungicide, and Rodenticide Act, without
                                consent, to any foreign or multinational
                                business or entity, or any employee or agent
                                of such business or entity, engaged in the
                                production, sale or distribution of
                                pesticides in countries other than the United
                                States or to any person who intends to
                                deliver such data to that business, entity,
                                employee or agent (7 U.S.C.   136h(g)).

            Phase-Out:          None

                       Annex I - United States                              

            Sector:             Mining

            Sub-Sector:          

            Industry
            Classification:

            Type of             National Treatment (Article 1102)
            Reservation:        Most-Favored-Nation Treatment (Article 1103)

            Level of            Federal
            Government:

            Measures:           Mineral Lands Leasing Act of 1920, 30 U.S.C.
                                Chapter 3A 

                                43 C.F.R.   3102

                                43 C.F.R.   2882.2-1

                                10 U.S.C.   7435 

            Description:        Investment

                                Under the Mineral Lands Leasing Act of 1920,
                                aliens and foreign corporations may not
                                acquire rights-of-way for oil or gas
                                pipelines, or pipelines carrying products
                                refined from oil and gas, across on-shore
                                federal lands or acquire leases or interests
                                in certain minerals on on-shore federal
                                lands, such as coal or oil.  Non-U.S.
                                citizens may own a 100 percent interest in a
                                domestic corporation that acquires a right-
                                of-way for oil or gas pipelines across on-
                                shore federal lands, or that acquires a lease
                                to develop mineral resources on on-shore
                                federal lands, unless the foreign investor's
                                home country denies similar or like
                                privileges for the mineral or access in
                                question to U.S. citizens or corporations, as
                                compared with the privileges it accords to
                                its own citizens or corporations or to the
                                citizens or corporations of other countries
                                (30 U.S.C.    181, 185(a)). 

                                Nationalization is not considered to be

                            Annex I - United States                         

                                denial of similar or like privileges.  

                                Foreign citizens, or corporations controlled
                                by them, are restricted from obtaining access
                                to federal leases on Naval Petroleum Reserves
                                if the laws, customs or regulations of their
                                country deny the privilege of leasing public
                                lands to citizens or corporations of the
                                United States (10 U.S.C.   7435).

            Phase-Out:          None

                            Annex I - United States                         

            Sector:             Professional Services

            Sub-Sector:         Patent Attorneys and Patent Agents and other
                                Practice before the Patent and Trademark
                                Office

            Industry            SIC 7389  Business Services, Not Elsewhere
            Classification:               Classified 
                                SIC 8111  Legal Services

            Type of             National Treatment (Article 1202)
            Reservation:        Most-Favored-Nation Treatment (Article 1203)
                                Local Presence (Article 1205)

            Level of            Federal
            Government:

            Measures:           35 U.S.C. Chapter 3 (practice before the U.S.
                                Patent and Trademark Office)

                                37 C.F.R. Part 10 (representation of others
                                before the U.S. Patent and Trademark Office)

            Description:        Cross-Border Services

                                As a condition to be registered to practice
                                for others before the U.S. Patent and
                                Trademark Office (USPTO):

                                (a)  a patent attorney must be a U.S. citizen
                                     or an alien lawfully residing in the
                                     United States (37 C.F.R.   10.6(a));

                                (b)  a patent agent must be a U.S. citizen,
                                     an alien lawfully residing in the United
                                     States or a non-resident who is
                                     registered to practice in a country that
                                     permits patent agents registered to
                                     practice before the USPTO to practice in
                                     that country (37 C.F.R.   10.6(c)); and

                                (c)  a practitioner in trademark and non-
                                     patent cases must be an attorney
                                     licensed in the United States, a
                                     "grandfathered" agent, an attorney
                                     licensed to practice in a country that
                                     accords equivalent treatment to

                        Annex I - United States                             

                                     attorneys licensed in the United States,
                                     or an agent registered to practice in
                                     such a country (37 C.F.R.   10.14(a)-
                                     (c)).

            Phase-Out:          Citizenship and permanent residency
                                requirements are subject to removal within
                                two years of the date of entry into force of
                                this Agreement in accordance with Article
                                1210(3).

                              Annex I - United States                       

            Sector:             Public Administration

            Sub-Sector:

            Industry
            Classification:

            Type of             National Treatment (Article 1102)
            Reservation:        Most-Favored-Nation Treatment (Article 1103)
            
            Level of            Federal
            Government:

            Measures:           22 U.S.C.    2194(a) and (b) and 2198(c)

            Description:        Investment

                                The Overseas Private Investment Corporation
                                insurance and loan guarantees are not
                                available to certain aliens, foreign
                                enterprises or foreign-controlled domestic
                                enterprises.

            Phase-Out:          None

                          Annex I - United States                           
_
            Sector:             Transportation

            Sub-Sector:         Air Transportation

            Industry            SIC 3721  Aircraft Repair and Rebuilding on
a
            Classification:               Factory Basis
                                SIC 4581  Aircraft Repair (Except on a
                                          Factory Basis)

            Type of             Most-Favored-Nation Treatment (Article 1203) 
            Reservation:
            
            Level of            Federal
            Government:

            Measures:           49 U.S.C. App.    1354, 1421-1430 

                                14 C.F.R.    43 and 145

                                Agreement Concerning Airworthiness
                                Certification, Exchange of Letters between
                                the United States and Canada dated August 31,
                                1984,  TIAS 11023, as amended

            Description:        Cross-Border Services

                                For aircraft repair, overhaul or maintenance
                                activities performed outside the territory of
                                the United States, during which an aircraft
                                is withdrawn from service, U.S. measures
                                require that, in order to perform work on
                                U.S.-registered aircraft, foreign air repair
                                stations must be certified by the Federal
                                Aviation Administration with continuing
                                oversight provided by the Federal Aviation
                                Administration.  

                                Pursuant to an airworthiness agreement
                                between the United States and Canada, the
                                United States recognizes the certifications
                                and oversight provided by Canada for all
                                repair and maintenance facilities and
                                individuals performing the work located in
                                Canada.

            Phase-Out:          None

                        Annex I - United States                             

            Sector:             Transportation

            Sub-Sector:         Air Transportation

            Industry            SIC 4512  Air Transportation Scheduled
            Classification:     SIC 4513  Air Courier Services
                                SIC 4522  Air Transportation Non-scheduled

            Type of             National Treatment (Article 1102)
            Reservation:        Most-Favored-Nation Treatment (Article 1103)
                                Senior Management and Boards of Directors
                                (Article 1107)
            
            Level of            Federal
            Government:

            Measures:           Federal Aviation Act of 1958, 49 U.S.C. App.
                                Ch. 20

            Description:        Investment 

                                Only air carriers that are "citizens of the
                                United States" may operate aircraft in
                                domestic air service (cabotage) and may
                                provide international scheduled and non-
                                scheduled air service as U.S. air carriers.

                                U.S. citizens also have blanket authority to
                                engage in indirect air transportation
                                activities (air freight forwarding and
                                charter activities other than as actual
                                operators of the aircraft).  In order to
                                conduct such activities, non-U.S. citizens
                                must obtain authority from the Department of
                                Transportation.  Applications for such
                                authority may be rejected for reasons
                                relating to the failure of effective
                                reciprocity, or if the Department of
                                Transportation finds that it is in the public
                                interest to do so.  

                                Under the Federal Aviation Act of 1958, a
                                "citizen of the United States" means:  


                                (a)  an individual who is a U.S. citizen; 

                             Annex I - United States                        

                                (b)  a partnership in which each member is a
                                     U.S. citizen; or


                                (c)  a U.S. corporation of which the
                                     president and at least two-thirds of the
                                     board of directors and other managing
                                     officers are U.S. citizens, and at least
                                     75 percent of the voting interest in the
                                     corporation is owned or controlled by
                                     U.S. citizens (49 U.S.C. App.  
                                     1301(16)).

                                In addition, this statutory requirement has
                                historically been interpreted by the
                                Department of Transportation (and the Civil
                                Aeronautics Board before it) to require that
                                an air carrier in fact be under the actual
                                control of U.S. citizens.  The Department of
                                Transportation makes this determination on a
                                case-by-case basis, and has provided guidance
                                as to certain lines of demarcation.  For
                                example, total foreign equity investment of
                                up to 49 percent (with a maximum of 25
                                percent being voting stock), by itself, is
                                not construed as indicative of foreign
                                control.  See Department of Transportation
                                Order 91-1-41, January 23, 1991.
                                 
            Phase-Out:          None

                          Annex I - United States                           
            
            Sector:             Transportation

            Sub-Sector:         Air Transportation

            Industry            SIC 0721  Crop Planting, Cultivating, and
            Classification:               Protecting (limited to aerial
                                          dusting and spraying, dusting
                                          crops, with or without fertilizing,
                                          spraying crops, with or without
                                          fertilizing)
                                SIC 0851  Forestry Services (limited to
                                          aerial fire fighting)
                                SIC 4522  Air Transportation, Nonscheduled
                                          (limited to air taxi services,
                                          sightseeing airplane services)
                                SIC 7319  Advertising, Not Elsewhere
                                          Classified (limited to aerial
                                          advertising, sky writing)
                                SIC 7335  Commercial Photography (limited to
                                          aerial photographic service, except
                                          mapmaking)
                                SIC 7389  Business Services, Not Elsewhere
                                          Classified (limited to mapmaking,
                                          including aerial; pipeline and
                                          powerline inspection services; and
                                          firefighting service, other than
                                          forestry)
                                SIC 7997  Membership Sports & Recreation
                                          Clubs (limited to aviation clubs,
                                          membership)
                                SIC 8299  Schools & Education Services, Not
                                          Elsewhere Classified (limited to
                                          flying instruction)
                                SIC 8713  Surveying Services (limited to
                                          aerial surveying)

            Type of             National Treatment (Articles 1102, 1202)
            Reservation:        Most-Favored-Nation Treatment (Articles 1103,
                                1203)
                                Local Presence (Article 1205)
                                Senior Management and Boards of Directors
                                (Article 1107)

            Level of            Federal
            Government:
            
                        Annex I - United States                             

            Measures:           Federal Aviation Act of 1958, 49 U.S.C. App.
                                Ch. 20 

                                14 C.F.R.   375

                                As qualified by paragraph 2 of the
                                Description element

                   Annex I - United States                                  



            Description:        Cross-Border Services

                                1.   Authorization from the Department of
                                Transportation is required for the provision
                                of specialty air services in the territory of
                                the United States.  A person of Canada or
                                Mexico that provides aerial construction,
                                heli-logging, aerial sightseeing, flight
                                training, aerial inspection and surveillance
                                and aerial spraying services may not be
                                authorized to provide those services if there
                                is inadequate reciprocity on the part of the
                                country of the applicant, or if approval
                                would otherwise not be in the public
                                interest. 

                                2.   A person of Mexico or Canada may obtain
                                such authorization to provide, subject to
                                compliance by that person with U.S. safety
                                regulations, aerial mapping, aerial
                                surveying, aerial photography, forest fire
                                management, fire fighting, aerial
                                advertising, glider towing and parachute
                                jumping.

                                Investment

                                3.   "Foreign civil aircraft" require
                                authority from the Department of
                                Transportation to conduct specialty air
                                services in the territory of the United
                                States.  "Foreign civil aircraft" are
                                aircraft of foreign registry or aircraft of
                                U.S. registry that are owned, controlled or
                                operated by persons who are not citizens or
                                permanent residents of the Unites States (14
                                C.F.R.   375.1).  Under the Federal Aviation
                                Act of 1958, a "citizen of the United States"
                                means:  

                                (a)  an individual who is a U.S. citizen;

                                (b)  a partnership in which each member is a
                                     U.S. citizen; or

                                (c)  a U.S. corporation of which the
                                     president and at least two-thirds of the

                          Annex I - United States                           

                                     board of directors and other managing
                                     officers are U.S. citizens, and at least
                                     seventy-five percent of the voting
                                     interest in the corporation is owned or
                                     controlled by U.S. citizens (49 U.S.C.
                                     App.   1301(16)).

                                In addition, this statutory requirement has
                                historically been interpreted by the
                                Department of Transportation (and the Civil
                                Aeronautics Board before it) to require that
                                an air carrier in fact be under the actual
                                control of U.S. citizens.  The Department of
                                Transportation makes this determination on a
                                case-by-case basis, and has provided guidance
                                as to certain lines of demarcation.  For
                                example, total foreign equity investment of
                                up to 49 percent (with a maximum of 25
                                percent being voting stock), by itself, is
                                not construed as indicative of foreign
                                control.  See Department of Transportation
                                Order 91-1-41, January 23, 1991.
                                 
            Phase-Out:          Cross-Border Services

                                A person of Canada or Mexico will be
                                permitted to obtain, subject to compliance
                                with U.S. safety requirements, authorization
                                to provide the following specialty air
                                services in the territory of the United
                                States:

                                (a)  two years after the date of entry into
                                     force of this Agreement, aerial
                                     construction and heli-logging;  

                                (b)  three years after the date of entry into
                                     force of this Agreement, aerial
                                     sightseeing, flight training and aerial
                                     inspection and surveillance services;
                                     and

                                (c)  six years after the date of entry into
                                     force of this Agreement, aerial spraying
                                     services.

                                Investment  

                             Annex I - United States                        
  
                                None

                             Annex I - United States                        

            Sector:             Transportation

            Sub-Sector:         Land Transportation

            Industry            SIC 4213  Trucking, Except Local
            Classification:     SIC 4215  Courier Services, Except by Air
                                SIC 4131  Intercity and Rural Bus
                                          Transportation
                                SIC 4142  Bus Charter Service, Except Local
                                SIC 4151  School Buses (limited to interstate
                                          transportation not related to
                                          school activity)

            Type of             National Treatment (Articles 1102, 1202)
            Reservation:        Most-Favored-Nation Treatment (Articles 1103,
                                1203)
                                Local Presence (Article 1205)

            Level of            Federal
            Government:

            Measures:           49 U.S.C.   10922(l)(1) and (2)

                                49 U.S.C.   10530(3)

                                49 U.S.C.    10329, 10330 and 11705 

                                19 U.S.C.   1202

                                49 C.F.R.   1044 

                                Memorandum of Understanding Between the
                                United States of America and the United
                                Mexican States on Facilitation of
                                Charter/Tour Bus Service, December 3, 1990

                                As qualified by paragraph 2 of the
                                Description element

                             Annex I - United States                        

            Description:        Cross-Border Services

                                1.   Operating authority from the Interstate
                                Commerce Commission (ICC) is required to
                                provide interstate or cross-border bus or
                                truck services in the territory of the United
                                States.  A moratorium remains in place on new
                                grants of operating authority for persons of
                                Mexico.  

                                2.   The moratorium does not apply to the
                                provision of cross-border charter or tour bus
                                services.

                                3.   Under the moratorium, persons of Mexico
                                without operating authority may operate only
                                within ICC Border Commercial Zones, for which
                                ICC operating authority is not required. 
                                Persons of Mexico providing truck services,
                                including for hire, private, and exempt
                                services, without operating authority are
                                required to obtain a certificate of
                                registration from the ICC to enter the United
                                States and operate to or from the ICC Border
                                Commercial Zones.  Persons of Mexico
                                providing bus services are not required to
                                obtain an ICC certificate of registration to
                                provide these services to or from the ICC
                                Border Commercial Zones.

                                4.   Only persons of the United States, using
                                U.S.-registered and either U.S.-built or
                                duty-paid trucks or buses, may provide truck
                                or bus service between points in the
                                territory of the United States.

                                Investment

                                5.   The moratorium has the effect of being
                                an investment restriction because enterprises
                                of the United States providing bus or truck
                                services that are owned or controlled by
                                persons of Mexico may not obtain ICC
                                operating authority.

                        Annex I - United States                             

            Phase-Out:          Cross-Border Services

                                A person of Mexico will be permitted to
                                obtain operating authority to provide:

                                (a)  three years after the date of signature
                                     of this Agreement, cross-border truck
                                     services to or from border states
                                     (California, Arizona, New Mexico and
                                     Texas), and such persons will be
                                     permitted to enter and depart the
                                     territory of United States through
                                     different ports of entry;

                                (b)  three years after the date of entry into
                                     force of this Agreement, cross-border
                                     scheduled bus services; and

                                (c)  six years after the date of entry into
                                     force of this Agreement, cross-border
                                     truck services.

                                Investment

                                A person of Mexico will be permitted to
                                establish an enterprise in the United States
                                to provide:

                                (a)  three years after the date of signature
                                     of this Agreement, truck services for
                                     the transportation of international
                                     cargo between points in the United
                                     States; and

                                (b)  seven years after the date of entry into
                                     force of this Agreement, bus services
                                     between points in the United States.

                                The moratorium will remain in place on grants
                                of authority for the provision of truck
                                services by persons of Mexico between points
                                in the United States for the transportation
                                of goods other than international cargo.

                         Annex I - United States                            

            Sector:             Transportation Services

            Sub-Sector:         Customs Brokers

            Industry            SIC 4731  Arrangement of Transportation of
            Classification:               Freight and Cargo

            Type of             National Treatment (Articles 1102, 1202)
            Reservation:        Local Presence (Article 1205)

            Level of            Federal
            Government:

            Measures:           19 U.S.C.   1641(b)

            Description:        Cross-Border Services and Investment

                                A customs broker's license is required to
                                conduct customs business on behalf of another
                                person.  Only U.S. citizens may obtain such 
                                a
                                license.  A corporation, association or
                                partnership established under the law of any
                                state may receive a customs broker's license
                                if at least one officer of the corporation or
                                association, or one member of the
                                partnership, holds a valid customs broker's
                                license.

            Phase-Out:          None.  Subject to discussion by the Parties
                                five years after the date of entry into
                                force.

                        Annex I - United States                             

            Sector:             All Sectors

            Sub-Sector:

            Type of             National Treatment (Article 1102)
            Reservation:        Most-Favored-Nation Treatment (Article 1103)

            Level of            Federal
            Government:

            Measures:           Securities Act of 1933, 15 U.S.C.    77C(b),
                                77f, 77g, 77h, 77j and 77s(a)

                                17 C.F.R.    230.251 and 230.405

                                Securities Exchange Act of 1934, 15 U.S.C.  

                                78l, 78m, 78o(d) and 78w(a)

                                17 C.F.R.   240.12b-2 

            Description:        Investment

                                Foreign firms, except for certain Canadian
                                issuers, may not use the small business
                                registration forms under the Securities Act
                                of 1933 to register securities that the firms
                                issue or qualify to use the less costly
                                standards under the rules.

            Phase-Out:          None

                           Annex I - United States                          

            Sector:             Waste Management

            Sub-Sector:

            Industry            SIC 4952  Sewerage System
            Classification:

            Type of             Performance Requirements (Article 1106)
            Reservation:

            Level of            Federal
            Government:

            Measures:           Clean Water Act, 33 U.S.C.    1251 et seq.

            Description:        Investment

                                The Clean Water Act authorizes grants for the
                                construction of treatment plants for
                                municipal sewage or industrial waste.  Grant
                                recipients may be privately-owned
                                enterprises.  The Act provides that grants
                                shall be made for treatment works only if
                                such articles, materials and supplies as have
                                been manufactured, mined or produced in the
                                United States will be used in the treatment
                                works.  The Administrator of the
                                Environmental Protection Agency has authority
                                not to apply this provision, for example, if
                                the cost of the articles in question is
                                unreasonable (33 U.S.C.   1295).

            Phase-Out:          None

Title:Annex II -- Schedule of United States
Author: White House 
Document-Date: 29 Sept 1993 
Content-Type: text/plain; CHARSET=US-ASCII 
Content-Length:28125 
 
                                       Annex II 
                               Schedule of United States  
 
             
            Sector:             All Sectors 
 
            Sub-Sector: 
 
            Industry 
            Classification: 
            Type of             National Treatment (Article 1102) 
            Reservation:        Most-Favored-Nation Treatment (Article 1103) 
 
            Description:        Investment 
 
                                The United States reserves the right to adopt

                                or maintain any measure relating to residency

                                requirements for the ownership by investors 
                                of Canada, or their investments, of 
                                oceanfront land. 
             
            Existing Measures: 
             
                            Annex II - United States                        
         
            Sector:             Communications 
 
            Sub-Sector:         Cable Television 
 
            Industry            CPC 753   Radio and Television Cable Services

            Classification: 
            Type of             National Treatment (Article 1102) 
            Reservation:        Most-Favored-Nation Treatment (Article 1103) 
 
            Description:        Investment 
 
                                Subject to Article 2106, the United States 
                                reserves the right to adopt or maintain any 
                                measure that accords equivalent treatment to 
                                persons of any country that limits ownership 
                                by persons of the United States in an 
                                enterprise engaged in the operation of a 
                                cable television system in that country. 
             
            Existing Measures: 
                             Annex II - United States                       
  
            Sector:             Communications 
 
            Sub-Sector:         Telecommunications Transport Networks and 
                                Services and Radiocommunications  
 
            Industry            CPC 752   Telecommunications Services (not 
            Classification:               including enhanced or value-added 
                                          services) 
                                CPC 7543  Connection Services  
                                CPC 7549  Other Telecommunications Services 
                                          Not Elsewhere Classified (limited 
                                          to telecommunications transport 
                                          networks and services) 
 
            Type of             National Treatment (Articles 1102, 1202) 
            Reservation:        Most-Favored-Nation Treatment (Articles 1103,

                                1203) 
                                Local Presence (Article 1205) 
                                Senior Management and Boards of Directors 
                                (Article 1107) 
 
            Description:        Cross-Border Services and Investment 
 
                                The United States reserves the right to adopt

                                or maintain any measure relating to 
                                investment in, or the provision of, 
                                telecommunications transport networks, 
                                telecommunications transport services or 
                                radiocommunications.  These measures may 
                                apply to such matters as market entry, 
                                spectrum assignment, tariffs, intercarrier 
                                agreements, terms and conditions of service, 
                                and interconnection between networks and 
                                services.  Telecommunications transport 
                                services typically involve the real-time 
                                transmission of customer-supplied information

                                between two or more points without end-to-end

                                change in the form or content of the 
                                customer's information, whether or not such 
                                services are offered to the public generally.

                                These services include voice and data 
                                services provided by any electromagnetic 
                                means.  Radiocommunications include all 
                                communications by radio, including 
 
                      Annex II - United States                              
 
                                broadcasting.  This reservation does not 
                                apply to measures relating to enhanced or 
                                value-added services or to the production, 
                                sale or licensing of radio or television 
                                programming.   
 
            Existing Measures:  Communications Act of 1934, 47 U.S.C.    151 
                                et seq., see particularly    310(a), (b) 
                                (radio licenses for common carrier, 
                                aeronautical en route, aeronautical fixed, 
                                and broadcasting services)  
 
                                F.C.C. Decision, International Competitive 
                                Carrier, 102 F.C.C. 2d 812 (1985), as 
                                modified in Regulation of International 
                                Common Carrier Services, CC Docket No. 91- 
                                360, FCC 92-463 (released November 6, 1992) 
 
                                Submarine Cable Landing Act, 47 U.S.C.   34- 
                                9, see particularly   35 (undersea cables) 
 
                                Communications Satellite Act of 1962, 47 
                                U.S.C.    701-57  
                                  
                                Telegraph Act, 47 U.S.C.   17 (telegraph 
                                cables serving Alaska) 
 
                                Children's Television Act of 1990, 47 U.S.C. 
                                  303a  
 
                                Television Program Improvement Act of 1990, 
                                47 U.S.C.   303c 
 
                             Annex II - United States                       
 
            Sector:             Social Services 
 
            Sub-Sector: 
 
            Industry 
            Classification: 
            Type of             National Treatment (Articles 1102, 1202)  
            Reservation:        Local Presence (Article 1205) 
                                Senior Management and Boards of Directors 
                                (Article 1107) 
 
            Description:        Cross-Border Services and Investment 
 
                                The United States reserves the right to adopt

                                or maintain any measure with respect to the 
                                provision of public law enforcement and 
                                correctional services, and the following 
                                services to the extent they are social 
                                services established or maintained for a 
                                public purpose:  income security or 
                                insurance, social security or insurance, 
                                social welfare, public education, public 
                                training, health, and child care. 
 
            Existing Measures: 
 
                           Annex II - United States                         
 
            Sector:             Minority Affairs 
 
            Sub-Sector: 
 
            Industry Classification: 
             
            Type of             National Treatment (Articles 1102, 1202) 
            Reservation:        Local Presence (Article 1205) 
                                Performance Requirements (Article 1106) 
                                Senior Management and Boards of Directors 
                                (Article 1107) 
 
            Description:        Cross-Border Services and Investment 
 
                                The United States reserves the right to adopt

                                or maintain any measure according rights or 
                                preferences to socially or economically 
                                disadvantaged minorities, including 
                                corporations organized under the laws of the 
                                State of Alaska in accordance with the Alaska

                                Native Claims Settlement Act. 
 
            Existing Measures:  Alaska Native Claims Settlement Act, 43 
                                U.S.C.    1601 et seq. 
 
                           Annex II - United States                         
 
            Sector:             Professional Services 
 
            Sub-Sector:         Legal Services 
 
            Industry            SIC 8111  Legal Services 
            Classification: 
             
            Type of             National Treatment (Articles 1102, 1202) 
            Reservation:        Most-Favored-Nation Treatment (Articles 1103,

                                1203) 
                                Local Presence (Article 1205) 
                                Senior Management and Boards of Directors 
                                (Article 1107) 
 
            Description:        Cross-Border Services and Investment 
 
                                Subject to Schedule of the United States, 
                                Annex VI, page  
                                VI-U-2, the United States reserves the right 
                                to adopt or maintain any measure relating to 
                                the provision of legal services, including 
                                foreign legal consultancy services, by 
                                persons of Mexico. 
 
            Existing Measures: 
 
                       Annex II - United States                             
 
            Sector:             Publishing 
 
            Sub-Sector:         Newspaper Publishing 
 
            Industry            SIC 2711  Newspapers:  Publishing, or 
            Classification:               Publishing and Printing 
 
            Type of             National Treatment (Article 1102) 
            Reservation:        Most-Favored-Nation Treatment (Article 1103) 
 
            Description:        Investment 
 
                                Subject to Article 2106, the United States 
                                reserves the right to adopt or maintain any 
                                measure that accords equivalent treatment to 
                                persons of any country that limits ownership 
                                by persons of the United States in an 
                                enterprise engaged in the publication of 
                                daily newspapers primarily written for 
                                audiences and distributed in that country. 
 
                                For purposes of this reservation, daily 
                                newspapers are newspapers published at least 
                                five days each week. 
 
            Existing Measures: 

                         Annex II - United States                           
 
            Sector:             Transportation 
 
            Sub-Sector:         Water Transportation 
 
            Industry            SIC 091   Commercial Fishing (limited to 
            Classification:               fishing vessels and fishing 
                                          operations within the Exclusive 
                                          Economic Zone)   
                                SIC 1629  Heavy Construction, Not Elsewhere 
                                          Classified (limited to marine 
                                          dredging) 
                                SIC 4412  Deep Sea Foreign Transportation of 
                                          Freight (limited to promotional 
                                          programs for U.S.-flagged  vessels)

                                SIC 4424  Deep Sea Domestic Transportation of

                                          Freight (includes coastwise 
                                          transportation of freight, deep sea

                                          domestic freight transportation, 
                                          intercoastal transportation of 
                                          freight, water transportation of 
                                          freight to noncontiguous 
                                          territories)   
                                SIC 4432  Freight Transportation on the Great

                                          Lakes and St. Lawrence Seaway 
                                SIC 4449  Water Transportation of Freight, 
                                          Not Elsewhere Classified (includes 
                                          canal barge operations, canal 
                                          freight transportation, 
                                          intracoastal freight 
                                          transportation, lake freight 
                                          transportation except on the Great 
                                          Lakes, log rafting and towing, 
                                          river freight transportation except

                                          on the St. Lawrence Seaway, 
                                          transportation of freight on bays 
                                          and sounds of the oceans) 
                                SIC 4481  Deep Sea Transportation of 
                                          Passengers, Except by Ferry 
                                          (limited to promotional programs 
                                          for U.S.-flagged vessels) 
                                SIC 4482  Ferries  
                                SIC 4489  Water Transportation of Passengers,

                                          Not Elsewhere Classified (includes 
                                          airboats, swamp buggy rides, 
                                          excursion boat operations, 
 
                             Annex II - United States                       
 
                                          passenger water transportation on 
                                          rivers and canals, sightseeing 
                                          boats, water taxis) 
                                SIC 4491  Marine Cargo Handling (limited to 
                                          crew activities aboard vessels 
                                          transporting supplies and cargo 
                                          within U.S. territorial waters and 
                                          longshore work performed by crew 
                                          affected by reciprocity 
                                          restrictions)  
                                SIC 4492  Towing and Tugboat Services 
                                SIC 4499  Water Transportation Services, Not 
                                          Elsewhere Classified (limited to 
                                          cargo salvaging, chartering of 
                                          commercial boats, lighterage, 
                                          bunkering, marine salvage, 
                                          pilotage, steamship leasing, cable 
                                          laying) 
             
            Type of             National Treatment (Articles 1102, 1202) 
            Reservation:        Most-Favored-Nation Treatment (Articles 1103,

                                1203) 
                                Local Presence (Article 1205) 
                                Performance Requirements (Article 1106) 
                                Senior Management and Boards of Directors 
                                (Article 1107) 
 
            Description:        Cross-Border Services and Investment  
 
                                The United States reserves the right to adopt

                                or maintain any measure relating to the 
                                provision of maritime transportation services

                                and the operation of U.S.-flagged vessels, 
                                including the following: 
 
                                (a)  requirements for investment in, 
                                     ownership and control of, and operation 
                                     of vessels and other marine structures, 
                                     including drill rigs, in maritime 
                                     cabotage services, including maritime 
                                     cabotage services performed in the 
                                     domestic offshore trades, the coastwise 
                                     trades, U.S. territorial waters, waters 
                                     above the continental shelf and in the 
                                     inland waterways; 
 
                              Annex II - United States                      
 
                                (b)  requirements for investment in, 
                                     ownership and control of, and operation 
                                     of U.S.-flagged vessels in foreign 
                                     trades; 
 
                                (c)  requirements for investment in, 
                                     ownership or control of, and operation 
                                     of vessels engaged in fishing and 
                                     related activities in U.S. territorial 
                                     waters and the Exclusive Economic Zone; 
 
                                (d)  requirements related to documenting a 
                                     vessel under the U.S. flag; 
 
                                (e)  promotional programs, including tax 
                                     benefits, available for shipowners, 
                                     operators and vessels meeting certain 
                                     requirements; 
 
                                (f)  certification, licensing and citizenship

                                     requirements for crew members on 
                                     U.S.-flagged vessels; 
 
                                (g)  manning requirements for U.S.-flagged 
                                     vessels; 
 
                                (h)  all matters under the jurisdiction of 
                                     the Federal Maritime Commission; 
 
                                (i)  negotiation and implementation of 
                                     bilateral and other international 
                                     maritime agreements and understandings; 
 
                                (j)  limitations on longshore work performed 
                                     by crew members; 
 
                                (k)  tonnage duties and light money 
                                     assessments for entering U.S. waters; 
                                     and 
 
                                (l)  certification, licensing and citizenship

                                     requirements for pilots performing 
                                     pilotage services in U.S. territorial 
                                     waters. 
 
                               Annex II - United States                     
 
                                The following activities are not included in 
                                this reservation: 
 
                                (a)  vessel construction and repair; and 
 
                                (b)  landside aspects of port activities, 
                                     including operation and maintenance of 
                                     docks, loading and unloading of vessels 
                                     directly to or from land, marine cargo 
                                     handling, operation and maintenance of 
                                     piers, ship cleaning, stevedoring, 
                                     transfer of cargo between vessels and 
                                     trucks, trains, pipelines and wharves, 
                                     waterfront terminal operations, boat 
                                     cleaning, canal operation, dismantling 
                                     of vessels, operation of marine railways

                                     for drydocking, marine surveyors, except

                                     cargo, marine wrecking of vessels for 
                                     scrap and ship classification societies.

 
            Existing Measures:  Merchant Marine Act of 1920,    19 and 27, 46

                                App. U.S.C.   876 and   883 et seq.  
 
                                Jones Act Waiver Statute, 64 Stat 1120, 46 
                                U.S.C. App., note preceding Section 1 
 
                                Shipping Act of 1916, 46 U.S.C. App.    802 
                                and 808 
 
                                Merchant Marine Act of 1936, 46 U.S.C. App. 
                                   1151 et seq., 1160-61, 1171 et seq., 
                                1241(b), 1241-1, 1244, and 1271 et seq. 
 
                                Merchant Ship Sales Act of 1946, 50 U.S.C. 
                                App.   1738 
 
                                46 App. U.S.C.    121, 292 and 316 
 
                                46 U.S.C.    12101 et seq. and 31301 et seq. 
 
                                46 U.S.C.    8904 and 31328(2) 
 
                                Passenger Vessel Act, 46 App. U.S.C.   289 
 
                        Annex II - United States                            
 
                                42 U.S.C.   9601 et seq.; 33 U.S.C.   2701 et

                                seq.; 33 U.S.C.   1251 et seq. 
 
                                46 U.S.C.    3301 et seq., 3701 et seq., 8103

                                and 12107(b) 
 
                                Shipping Act of 1984, 46 App. U.S.C.    1708 
                                and 1712 
 
                                Nicholson Act, 46 App. U.S.C.    251 
 
                                Commercial Fishing Industry Vessel 
                                Anti-Reflagging Act of 1987, 46 U.S.C.   2101

                                and 46 U.S.C.   12108 
 
                                43 U.S.C.   1841 
 
                                22 U.S.C.   1980 
 
                                Intercoastal Shipping Act, 46 U.S.C. App.   
                                843 
 
                                46 U.S.C.   9302, 46 U.S.C.   8502; Agreement

                                Governing the Operation of Pilotage on the 
                                Great Lakes, Exchange of Notes at Ottawa, 
                                August 23, 1978, and March 29, 1979, TIAS 
                                9445 
 
                                Magnuson Fishery Conservation and Management 
                                Act, 16 U.S.C.    1801 et seq. 
 
                                19 U.S.C.   1466 
 
                                North Pacific Anadramous Stocks Convention 
                                Act of 1972, P.L. 102-587; Oceans Act of 
                                1992, Title VII 
 
                                Tuna Convention Act, 16 U.S.C.   951 et seq. 
 
                                South Pacific Tuna Act of 1988, 16 U.S.C.   
                                973 et seq. 
 
                                Northern Pacific Halibut Act of 1982, 16 
                                U.S.C.   773 et seq. 
 
                        Annex II - United States                            

                                Atlantic Tunas Convention Act, 16 U.S.C.   
                                971 et seq. 
 
                                Antarctic Marine Living Resources Convention 
                                Act of 1984, 16 U.S.C.   2431 et seq. 
 
                                Pacific Salmon Treaty Act of 1985, 16 U.S.C. 
                                  3631 et seq. 
Title:Annex IV -- Schedule of the United States
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:2096
 
 
                                       Annex IV  
                             Schedule of the United States 
 
 
                 The United States takes an exception to Article 1103 for 
            treatment accorded under all bilateral or multilateral 
            international agreements in force or signed prior to the date 
            of entry into force of this Agreement. 
 
                 For international agreements in force or signed after the 
            date of entry into force of this Agreement, the United States 
            takes an exception to Article 1103 for treatment accorded under 
            those agreements involving: 
 
                 (a)  aviation; 
 
                 (b)  fisheries; 
 
                 (c)  maritime matters, including salvage; or 
 
                 (d)  telecommunications transport networks and 
                      telecommunications transport services (this exception 
                      does not apply to measures covered by Chapter 
                      Thirteen (Telecommunications) or the production, sale 
                      or licensing of radio or television programming). 
 
                 With respect to state measures not yet set out in Annex I 
            pursuant to Article 1108(2), the United States takes an 
            exception to Article 1103 for international agreements signed 
            within two years of the date of entry into force of this 
            Agreement. 
 
                 For greater certainty, Article 1103 does not apply to any 
            current or future foreign aid program to promote economic 
            development, such as those governed by the Energy Economic 
            Cooperation Program with Central America and the Caribbean 
            (Pacto de San Jos ) and the OECD Agreement on Export Credits. 
 
Title:Annex V -- Schedule of United State
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:17641
                                          
                                        Annex V 
                               Schedule of United States 
 
             
            Sector:             Communications 
 
            Sub-Sector:         Telecommunications (Radiocommunications) 
 
            Industry            CPC 752   Telecommunications Services 
            Classification: 
 
            Level of            Federal 
            Government: 
 
            Measures:           Communications Act of 1934, 47 U.S.C.    151 
                                et seq.  
 
            Description:        Any person wishing to engage in 
                                communications by radio within the United 
                                States and between the United States and 
                                points outside the United States must obtain 
                                a license from the Federal Communications 
                                Commission (FCC) for the use, but not the 
                                ownership, of all channels of 
                                radiocommunications.    
                                Such a license shall not be construed to 
                                create any right beyond the terms, conditions

                                and periods of the license. 
 
                                The Communications Act of 1934 requires the 
                                FCC, in granting radio station licenses, to 
                                determine if such a license would serve the 
                                public interest, convenience and necessity 
                                and empowers the FCC to impose conditions 
                                pursuant to this determination.  The FCC must
                                deny applications for radio licenses where it
                                is unable to find that such grant would serve
                                the public interest, convenience and 
                                necessity. 
 
                            Annex V - United States                         
 
            Sector:             Communications 
 
            Sub-Sector:         Cable Television Services 
 
            Industry            CPC 753   Radio and Television Cable Services

            Classification: 
 
            Level of            Federal 
            Government: 
 
            Measures:           Communications Act of 1934, 47 U.S.C.    151 
                                et seq.  
 
                                Federal Communications Commission Rules,    
                                76.501, 74.931(e)(5), 63.54 and 21.912  
 
                                The Cable Television Consumer Protection and 
                                Competition Act of 1992, Pub. L. No. 102-385,

                                106 Stat. 1460 (1992) 
 
                                47 C.F.R.    76.501, 74.931(e)(5), 63.54 and 
                                21.912 
 
            Description:        A cable television system is not allowed to 
                                carry any television broadcast signal if the 
                                cable system owns, operates, controls or has 
                                an interest in a television broadcast station

                                whose Grade B contour overlaps the service 
                                area of such cable system  
                                (  76.501(a)). 
 
                                A cable television system may directly or 
                                indirectly own, operate, control or have an 
                                interest in a national television network, 
                                such as ABC, CBS or NBC, only if such system 
                                does not pass more than:  
 
                                (a)  10 percent of homes passed on a 
                                     nationwide basis when aggregated with 
                                     all other cable systems in which the 
                                     network holds such a cognizable 
                                     interest; and  
 
                                (b)  50 percent of homes passed within any 
                                     one Arbitron Area of Dominant Influence 
 
                             Annex V - United States                        
 
                                     (ADI), except that a cable television 
                                     system facing a competing system will 
                                     not be counted toward this 50 percent 
                                     limit (  76.501(b)). 
 
 
                                A cable television company may not lease 
                                excess transmission time or capacity from a 
                                licensee of an Instructional Television Fixed

                                Service (ITFS) station (television services 
                                intended for use in educational institutions)

                                if the ITFS station is located within 20 
                                miles of that cable television company's 
                                franchise area  
                                (  74.931(e)(5)). 
 
                                A telephone common carrier may not engage in 
                                the provision (for example, ownership, 
                                control or production) of video programming 
                                directly to the viewing public in its 
                                telephone service area, but may distribute 
                                such programming on a common carrier basis 
                                and may only have up to a five percent non- 
                                controlling financial interest in video 
                                programmers (  63.54(a) and (e)). 
 
                                A telephone common carrier may not provide 
                                channels of communications or pole line 
                                conduit space, or other rental arrangements 
                                to any entity that is directly or indirectly 
                                owned, operated or controlled by, or under 
                                common control with, such telephone common 
                                carrier, where such facilities or 
                                arrangements are to be used for, or in 
                                connection with, the provision of video 
                                programming to the viewing public in the 
                                telephone service area of the telephone 
                                common carrier (  63.54(b)). 
 
                                A telephone common carrier may not acquire 
                                cable facilities in its service area and use 
                                those facilities to provide video dialtone 
                                services or to engage in activities related 
                                to the provision of video programming 
                                directly to subscribers (  63.54(d)(3)). 

                        Annex V - United States                             
 
                                In cable television franchise areas served by 
                                a single cable operator, that operator may 
                                not be authorized to use frequencies assigned

                                to the Multichannel Multipoint Distribution 
                                Service (MMDS) (the 2150-2165 MHz and 2596- 
                                2644 MHz bands), if a portion of an MMDS 
                                station's protected service area lies within 
                                that cable television operator's franchise 
                                area (  21.912). 
 
                                A cable operator may not hold a license for 
                                multichannel multipoint distribution or 
                                satellite master antenna television service, 
                                apart from the franchised service, in the 
                                same area in which it holds a cable system 
                                franchise (The Cable Television Consumer 
                                Protection and Competition Act of 1992 ("1992

                                Cable Act"), section 11). 
 
                                A cable operator may not set or otherwise 
                                transfer its ownership in a cable system 
                                within three years following the acquisition 
                                or initial construction of such system (1992 
                                Cable Act, section 13). 
 
                             Annex V - United States                        
      
            Sector:             Energy 
 
            Sub-Sector:         Natural Gas Transportation 
 
            Industry            SIC 4922  Natural Gas Transmission 
            Classification:     SIC 4923  Natural Gas Transmission and 
                                          Distribution 
                                SIC 4924  Natural Gas Distribution 
 
            Measures:           15 U.S.C.   717f 
 
                                18 C.F.R.   157 
 
            Description:        A natural gas company, or a person that will 
                                be a natural gas company upon completion of 
                                proposed construction or extension of 
                                transportation facilities, is required to 
                                obtain a certificate of public convenience 
                                and necessity to construct, extend, acquire 
                                or operate such facilities.  In addition, a 
                                certificate is required to transport or sell 
                                for resale natural gas in interstate 
                                commerce. 
 
                                The Federal Energy Regulatory Commission 
                                (FERC) is required to hold hearings on 
                                applications for permanent certificates and 
                                to give interested persons notice of such 
                                hearings.  Notices of applications are 
                                published in the Federal Register. 
 
                                The FERC does not require a certificate of 
                                public convenience and necessity for certain 
                                replacement construction, maintenance, 
                                emergency facilities, auxiliary installations

                                and certain types of taps. 
 
                                Natural gas services for drilling oil wells 
                                or for testing or purging new natural gas 
                                pipeline facilities are exempt from the 
                                certificate requirement. 
 
                                Certain "emergency" sales, transportation or 
                                exchanges are exempt from the certificate 
                                requirement.  Where a certificate is 
                                required, the FERC may grant a temporary 
                                certificate for sale or transportation in 
                                emergency circumstances, pending the 
 
                          Annex V - United States                           
 
                                determination on a permanent certificate. 
 
                          Annex V - United States                           
  
            Sector:             Postal Services 
 
            Sub-Sector: 
 
            Industry            SIC 4311  United States Postal Service 
            Classification: 
 
            Level of            Federal 
            Government: 
 
            Measures:           39 U.S.C.    401 et seq. 
 
                                18 U.S.C.   1693 
 
                                39 C.F.R.    310 and 320 
 
            Description:        The U.S. Postal Service is generally 
                                authorized to "receive, transmit, and deliver

                                throughout the United States, its territories

                                and possessions . . . written and printed 
                                matter, parcels and like materials."  The 
                                Postal Service also has the exclusive 
                                authority to "provide and sell postage 
                                stamps." 
 
                                A carrier other than the U.S. Postal Service 
                                may carry letters if, among other things, 
                                each letter is enclosed in an envelope, 
                                proper postage has been paid in stamps, the 
                                stamp is canceled by the sender and the 
                                carrier endorses the envelope. 
 
                                The postal regulations define "letters" to 
                                exclude telegrams, books and magazines, and 
                                other materials.  The regulations also permit

                                letters to be carried accompanying cargo, by 
                                the sender, by others without compensation 
                                and by special messengers.  The Postal 
                                Service has suspended its regulations with 
                                respect to private "express mail" services. 
 
                         Annex V - United States                            
 
            Sector:             Recreation 
 
            Sub-Sector:         National Parks Concessions 
 
            Industry            SIC 7999  Amusement and Recreation Services, 
            Classification:               Not Elsewhere Classified 
 
            Level of            Federal 
            Government: 
 
            Measures:           16 U.S.C.    20 and 20a 
 
            Description:        A concession is required to operate hotels, 
                                restaurants, gift shops, snack bars, 
                                equipment rentals, horseback riding services,

                                guide services, fishing guide services, 
                                mountain climbing services, bus 
                                transportation and other services in U.S. 
                                national parks.  The National Park Service 
                                regulates all aspects of these services, 
                                including building specifications, rates for 
                                the services, and hours of operation. 
 
                                The National Park Service awards concessions 
                                only where they are determined to be 
                                "necessary and appropriate".  In developing 
                                its plans for the operation of a national 
                                park, the Park Service determines what 
                                operations, including concessions, are 
                                "necessary and appropriate".  As a result of 
                                this determination, the Park Service may 
                                determine that a given concession is not 
                                needed. 
 
 Title:Annex VI -- Schedule of United States
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:6807

                                       Annex VI 
                               Schedule of United States 
 
             
            Sector:             Communications 
 
            Sub-Sector:         Broadcasting 
 
            Industry            CPC 7524  Program Transmission Services 
            Classification: 
 
            Level of            Federal 
            Government: 
 
            Measures:           Communications Act of 1934, 47 U.S.C.    309,

                                325  
 
            Description:        The United States will ensure that in 
                                considering applications for a grant of 
                                authority to transmit programming to foreign 
                                stations for retransmission into the United 
                                States under section 325 of the 
                                Communications Act of 1934 ("the Act"), the 
                                Federal Communications Commission (FCC) will 
                                not consider the nationality of the affected 
                                stations for the purpose of favoring a U.S. 
                                station that is competing with a Mexican 
                                station for affiliation with a U.S. 
                                programmer.  Rather, the FCC will apply the 
                                criteria for the grant of such a permit in 
                                the same manner as they would be applied to 
                                a 
                                domestic broadcast station application under 
                                section 309 of the Act.  
 
                                In addition, the term of the section 325 
                                permit shall be extended from one year to 
                                five years in all situations where it can be 
                                assured that the retransmitting station is 
                                and will be in full compliance with 
                                applicable treaties.  In assessing the public

                                interest, convenience and necessity required 
                                by the Act for the grant of authorization 
                                under section 325, the primary criterion will

                                be avoiding the creation or maintenance of 
                                electrical interference to U.S. broadcast 
                                stations that violates applicable treaty 
                                provisions.  In evaluating this and any other

                          Annex VI - United States                          
 
                                criterion permitted under section 309, the 
                                United States will ensure that the section 
                                325 process is not conducted in a manner that

                                would constitute an unnecessary restriction 
                                on trade. 
 
                           Annex VI - United States                         
 
            Sector:             Professional Services 
 
            Sub-Sector:         Legal Services 
 
            Industry            SIC 8111  Legal Services 
            Classification: 
 
            Level of            State 
            Government: 
 
            Measures:           Alaska Bar R. 44.1 
 
                                California R. Ct. 988 
 
                                Connecticut Pract. Book   24A 
 
                                D.C. Ct. App. R. 46(c)(4) (Washington, D.C.) 
 
                                Rules Regulating the Florida Bar, Chapter 16,

                                as adopted in Amendment to Rules Regulating 
                                the Florida Bar,_____ Fla. L. Weekly ____, 
                                1992 Fla. LEXIS 1398 (Case No. 79,288, 
                                decided on July 23, 1992) 
 
                                Rules and Regulations of the State Bar of 
                                Georgia, Part II, Rule 2-101, Part D 
 
                                Hawaii Sup. Ct. R. 14 
 
                                Illinois Rev. Stat. Ch. 110A, par. 712 (Sup. 
                                Ct. R. 712) 
 
                                Michigan Bd. of Law Examiners R. 5(E) 
 
                                New Jersey Sup. Ct. R. 1:21-9 
 
                                New York Admn. Code tit. 22, Section 521 
 
                                Ohio Sup. Ct. R. for the Government of the 
                                Bar XI 
 
                                Rules Regulating Admission to Practice Law in

                                Oregon, Chapter 10 
 
                                Texas R. Governing Admission to the Bar of 
                                Texas XVI 
 
                         Annex VI - United States                           
 
                                Wash. R. of Ct. 14 
 
            Description:        Lawyers authorized to practice in Canada or 
                                Mexico and law firms headquartered in Canada 
                                or Mexico will be permitted to provide 
                                foreign legal consultancy services, and to 
                                establish for that purpose, in Alaska, 
                                California, Connecticut, District of 
                                Columbia, Florida, Georgia, Hawaii, Illinois,

                                Michigan, New Jersey, New York, Ohio, Oregon,

                                Texas and Washington, or in any other state 
                                that so permits by the date of entry into 
                                force of this Agreement. 
 
Title:Annex VII -- Schedule of the United States
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:23112

                            Annex VII(A) - United States                    
                    
 
                                      Annex VII 
                            Schedule of the United States 
                                      Section A 
 
 
          Sector:             Financial Services 
 
          Sub-Sector:         Banking 
 
          Industry            SIC 6021  National Commercial Banks 
          Classification: 
          Type of             Senior Management and Boards of Directors 
          Reservation:        (Article 1408) 
           
          Level of            Federal 
          Government: 
 
          Measures:           The National Bank Act, 12 U.S.C.   72 
 
          Description:        All directors of a national bank must be 
                              citizens of the United States.  Because the 
                              president of a national bank must be a 
                              director, the president of a national bank 
                              must be a citizen of the United States.  An 
                              exception exists for a national bank 
                              affiliated with or owned by a foreign bank.  
                              Such a bank need only have U.S. citizens 
                              constitute a simple majority of the board and 
                              thus need not employ a U.S. citizen as its 
                              president. 
 
                              Two-thirds of the directors of a national 
                              bank must (a) have resided for one year prior 
                              to their election, and (b) continue to 
                              reside, in the state in which the bank is 
                              located or within 100 miles of the bank. 
           
          Phase-Out:          None 
 
                       Annex VII(A) - United States                         
 
          Sector:             Financial Services 
 
          Sub-Sector:         Banking 
 
          Industry            SIC 6021  National Commercial Banks 
          Classification:     SIC 6022  State Commercial Banks 
                              SIC 6029  Other Commercial Banks 
                              SIC 6081  Branches and Agencies of Foreign 
                                        Banks 
                              SIC 6712  Bank Holding Companies 
                                        Foreign Banks (Not Applicable) 
 
          Type of             National Treatment (Article 1405) 
          Reservation: 
 
          Level of            Federal 
          Government: 
 
          Measures:           Bank Holding Company Act of 1956, 12 U.S.C. 
                                1842(d) 
 
                              International Banking Act of 1978, 12 U.S.C.  
                                3103(a)(5) 
 
          Description:        Federal authorities may not approve the 
                              establishment of, or acquisition of an 
                              interest in, a bank subsidiary within a state 
                              ("the target state") by a foreign bank that 
                              has a full-service branch in the United 
                              States, unless the measures of the target 
                              state expressly permit such an establishment 
                              or acquisition by domestic bank holding 
                              companies with their principal place of 
                              banking operations (as that term is described 
                              under the Bank Holding Company Act) in the 
                              foreign bank's "home state" (as that term is 
                              defined in the International Banking Act).   
 
                              Federal authorities also may not approve the 
                              establishment of, or acquisition of an 
                              interest in, a bank subsidiary within a state 
                              ("the target state") by a bank holding 
                              company, including a foreign bank, that 
                              maintains its principal place of banking 
                              operations in another state, as defined under 
                              the Bank Holding Company Act, unless the 
                              measures of the target state expressly permit 
                              the establishment and acquisition by bank 
 
                      Annex VII(A) - United States                          
 
                              holding companies from the state of the 
                              company's or bank's principal place of 
                              banking operations.   
 
                              Due to these Federal measures and certain 
                              state measures, foreign banks with direct 
                              deposit-taking branches or bank subsidiaries 
                              in the United States are not permitted to 
                              establish or acquire interests in banks 
                              located in some states on the same basis as 
                              domestic bank holding companies from the 
                              state of the foreign bank's principal place 
                              of banking operations or the foreign bank's 
                              home state.  The following types of measures, 
                              among others, fall into this category:   
 
                              (a)  foreign banks are expressly excluded 
                                   from the authority to own banks under 
                                   certain regional holding company laws; 
 
                              (b)  foreign banks are implicitly excluded 
                                   from the definition of an eligible owner 
                                   under certain state laws that require a 
                                   majority of a banking company's deposits 
                                   to be in the United States, in a 
                                   particular region of the United States 
                                   or in a particular state; 
 
                              (c)  foreign banks that do not already own a 
                                   banking subsidiary in the United States 
                                   are interpreted as not qualifying as an 
                                   eligible "bank holding company" entitled 
                                   to own a bank in the United States; and 
 
                              (d)  where a foreign bank's principal place 
                                   of business is in a state which is 
                                   different from its home state and the 
                                   measures of the target state accord 
                                   better treatment to bank holding 
                                   companies from one of these states, the 
                                   foreign bank will be subject to the more 
                                   restrictive rule. 
 
          Phase-Out:          None  
 
                       Annex VII(A) - United States                         
 
          Sector:             Financial Services 
 
          Sub-Sector:         Banking 
 
          Industry            SIC 6082  Foreign Trade and International 
          Classification:               Banking Institutions 
            
          Type of             National Treatment (Article 1405) 
          Reservation: 
 
          Level of            Federal 
          Government: 
 
          Measures:           Federal Reserve Act, 12 U.S.C.   619 
 
          Description:        Edge corporations (specialized international 
                              banking companies chartered under Federal 
                              law) may be owned by domestically-owned banks 
                              and bank holding companies, and by domestic 
                              non-bank companies willing to restrict their 
                              business activities to those closely related 
                              to banking.  Foreign ownership of Edge 
                              corporations is limited to foreign banks and 
                              U.S. subsidiaries of foreign banks.  Other 
                              foreign persons may not directly or 
                              indirectly own Edge corporations. 
 
          Phase-Out:          None 
 
                        Annex VII(A) - United States                        
 
          Sector:             Financial Services 
 
          Sub-Sector:         Banking 
 
          Industry            SIC 6081  Branches of Foreign Banks 
          Classification: 
 
          Type of             National Treatment (Article 1405) 
          Reservation: 
 
          Level of            Federal 
          Government: 
 
          Measures:           International Banking Act of 1978, 12 U.S.C. 
                               3104(c) 
 
          Description:        In order to accept or maintain domestic 
                              retail deposit accounts having balances of 
                              less than $100,000, a foreign bank must 
                              establish an insured banking subsidiary.  
                              This prohibition does not apply to a foreign 
                              bank branch that was engaged in insured 
                              deposit-taking activities on December 19, 
                              1991. 
 
          Phase-Out:          None 
 
                         Annex VII(A) - United States                       
 
          Sector:             Financial Services 
 
          Sub-Sector:         Banking 
 
          Industry            SIC 6081  Branches and Agencies of Foreign 
          Classification:               Banks 
 
          Type of             National Treatment (Article 1405) 
          Reservation: 
 
          Level of            Federal 
          Government: 
 
          Measures:           Federal Reserve Act, 12 U.S.C.    221, 302, 
                              321 
 
          Description:        Foreign banks with branches or agencies in 
                              the United States may not be members of the 
                              Federal Reserve System, and thus may not vote 
                              for directors of a Federal Reserve Bank. 
 
          Phase-Out:          None 
 
                    Annex VII(A) - United States                            
 
          Sector:             Financial Services 
 
          Sub-Sector:         Banking and Securities 
 
          Industry            SIC 6021  National Commercial Banks 
          Classification:     SIC 6022  State Commercial Banks 
                              SIC 6029  Other Commercial Banks 
                              SIC 6081  Branches and Agencies of Foreign 
                                        Banks 
                              SIC 6211  Security Brokers, Dealers and 
                                        Flotation Companies 
 
          Type of             National Treatment (Article 1405) 
          Reservation:        Most-Favored-Nation Treatment (Article 1406) 
 
          Level of            Federal 
          Government: 
 
          Measures:           The Primary Dealers Act of 1988, 22 U.S.C. 
                                 5341-5342 
 
          Description:        The Primary Dealers Act of 1988 prohibits a 
                              foreign firm from being designated as a 
                              primary dealer in U.S. government debt 
                              obligations unless the home country of the 
                              foreign firm accords to U.S. firms the same 
                              competitive opportunities as are accorded to 
                              domestic firms in the underwriting and 
                              distribution of government debt instruments 
                              in the firm's home country. 
 
          Phase-Out:          None 
 
                         Annex VII(A) - United States                       

          Sector:             Financial Services 
 
          Sub-Sector:         Banking and Securities 
 
          Industry            SIC 6289  Services Allied with the Exchange 
          Classification:               of Securities or Commodities 
 
          Type of             Cross-Border Trade (Article 1404) 
          Reservation:        National Treatment (Article 1405) 
                              Most-Favored-Nation Treatment (Article 1406) 
                              Senior Management and Boards of Directors 
                              (Article 1408) 
 
          Level of            Federal 
          Government: 
 
          Measures:           Trust Indenture Act of 1939, 15 U.S.C. 
                                77jjj(a)(1) 
 
          Description:        Under the Trust Indenture Act of 1939, a 
                              foreign firm located outside the United 
                              States may be prohibited from acting as the 
                              sole trustee under an indenture for debt 
                              securities sold in the United States if U.S. 
                              institutional trustees cannot act as sole 
                              trustees for securities sold in the foreign 
                              firm's home country. 
 
          Phase-Out:          None 
 
                       Annex VII(A) - United States                         
 
          Sector:             Financial Services 
 
          Sub-Sector:         Banking and Securities 
 
          Industry            SIC 6211  Security Brokers, Dealers and 
          Classification:               Flotation Companies 
 
          Type of             Most-Favored-Nation Treatment (Article 1406) 
          Reservation: 
 
          Level of            Federal 
          Government: 
 
          Measures:           Securities Exchange Act of 1934, 15 U.S.C.   
                              78o(c) 
 
                              17 C.F.R.   240.15c3-3 
 
          Description:        A broker-dealer that maintains its principal 
                              place of business in Canada may maintain its 
                              required reserves at a bank in Canada subject 
                              to supervision by an authority of Canada.  A 
                              broker-dealer that maintains its principal 
                              place of business in any other foreign 
                              country must maintain reserves in the United 
                              States. 
 
          Phase-Out:          None 
 
                       Annex VII(A) - United States                         
 
          Sector:             Financial Services 
 
          Sub-Sector:         Commodity Futures and Options  
 
          Industry            SIC 6221  Commodity Contracts Broker and 
          Classification:               Dealers 
                              SIC 6231  Commodity Exchanges 
                              SIC 6282  Investment Advice 
                              SIC 6289  Services Allied with the Exchange 
                                        of Commodities 
 
          Type of             Cross-Border Trade (Article 1404) 
          Reservation:        New Financial Services and Data Processing 
                              (Article 1407) 
 
          Level of            Federal 
          Government: 
 
          Measures:           Commodity Exchange Act, 7 U.S.C.    2, 13-1 
 
          Description:        Federal law prohibits the offer or sale of 
                              futures contracts on onions, options 
                              contracts on onions and options on futures 
                              contracts on onions in the United States and 
                              services related thereto. 
 
          Phase-Out:          None 
 
                    Annex VII(A) - United States                            
 
          Sector:             Financial Services 
 
          Sub-Sector:         Insurance 
 
          Industry            SIC 6351  Surety Insurance 
          Classification: 
 
          Type of             Cross-Border Trade (Article 1404) 
          Reservation:        National Treatment (Article 1405) 
 
          Level of            Federal 
          Government: 
 
          Measures:           31 U.S.C.   9304 
 
          Description:        Branches of foreign insurance companies are 
                              not permitted to provide surety bonds for 
                              U.S. Government contracts. 
 
          Phase-Out:          None 
  
                        Annex VII(A) - United States                        

          Sector:             Financial Services 
 
          Sub-Sector:         Banking and Securities 
 
          Industry            SIC 6081  Branches and Agencies of Foreign 
          Classification:     Banks 
                              SIC 6282  Investment Advice 
 
          Type of             National Treatment (Article 1405) 
          Reservation: 
 
          Level of            Federal 
          Government: 
 
          Measures:           Investment Advisers Act of 1940, 15 U.S.C.    
                              80b-2, 80b-3 
 
          Description:        Foreign banks are required to register as 
                              investment advisers under the Investment 
                              Advisers Act of 1940 to engage in securities 
                              advisory services in the United States, while 
                              domestic banks are exempt from registration. 
 
          Phase-Out:          None 
 
                     Annex VII(B) - United States                           
 
                                      Annex VII 
                            Schedule of the United States 
                                      Section B 
 
 
               With respect to Canada, the United States reserves the right 
          to adopt any measure relating to cross-border trade in securities 
          services that derogates from Article 1404(1) or 1406. 
 
                            Annex VII(C) - United States                    
     
                                      Annex VII 
                            Schedule of the United States 
                                      Section C 
 
 
               The United States commits to permit an eligible grupo 
          financiero that, in formation of the grupo in Mexico before the 
          date of entry into force of this Agreement, lawfully acquires an 
          eligible Mexican bank and a Mexican securities firm which owns or 
          controls a securities company in the United States, to continue 
          to engage through the U.S. securities company in the activities 
          in which that securities company was engaged on the date of 
          acquisition by the grupo for a time period of five years from the 
          date of that acquisition.  The U.S. securities company:   
 
               (a)  shall not be permitted to expand through acquisition in 
                    the United States during such period; and 
 
               (b)  shall be subject to measures consistent with national 
                    treatment that restrict transactions between the 
                    company and its affiliates.   
 
          For purposes of this Section:  an "eligible grupo financiero" is 
          a Mexican financial group that has not previously benefitted from 
          this commitment; and an "eligible Mexican bank" means any Mexican 
          instituci n de cr dito that owned or controlled a subsidiary 
          bank, or operated a branch or agency, in the United States on 
          January 1, 1992. 

 