Trade in Sugar
1. The United States and Mexico recognize the importance of liberalizing trade in sugar and syrup goods while avoiding conditions of entry that may result in displacement of the consumption of such goods originating in the territories of the United States and Mexico by imports from non-Parties. Accordingly, the United States and Mexico have agreed to the following provisions to govern trade between them in sugar and syrup goods.
2. The over quota customs duty for imports into the territory of the United States of sugar and syrup goods originating in the territory of Mexico shall be reduced to zero during a period of 15 years after the date of entry into force of this Agreement as follows:
(a) from the first to the sixth year after the date of entry into force of this Agreement, the customs duty shall be reduced by a total of 15 percent in equal annual stages;
(b) from the seventh to the fifteenth year after the dateof entry into force of this Agreement, the customs dutyshall be removed entirely in equal annual stages; and
(c) after the end of the sugar transition period, the dutyon all imports of sugar and syrup goods from Mexicoshall be zero.
3. In addition to the customs duty reductions provided for under paragraph 2, imports into the territory of the United States of sugar and syrup goods originating in the territory of Mexico shall be duty free for a quantity, on a marketing year (October 1 - September 30) basis, to be determined as follows:
(a) for each upcoming marketing year in which Mexico is not projected to be a net surplus producer, the quantity shall be the greater of 7,258 metric tons raw value or the quota allocated by the United States for a non- Party within the category designated "other specified countries and areas" under paragraph (b)(i) of additional U.S. note 3 to chapter 17 of the Harmonized Tariff Schedule of the United States;
(b) for each upcoming marketing year in which Mexico is projected to be a net surplus producer of sugar, in accordance with sub-paragraph (d), the quantity shall be the greater of (i) the amount specified in sub- section (a), or (ii) Mexico's projected net production surplus, but not greater than a maximum quantity as follows
(i) for each of the first through sixth marketingyears after the date of entry into force of thisAgreement, 25,000 metric tons raw value,
(ii) for the seventh marketing year after the date ofentry into force of this Agreement, 150,000 metrictons raw value, and
(iii) for each of the eighth through fifteenth marketing years after the date of entry into force of this Agreement, 110 percent of the previous marketing year's maximum quantity;
(c) in any year after the sixth year after the date of entry into force of this Agreement, the quantity of imports of sugar and syrup goods originating in the territory of Mexico shall not be subject to the limitations set out in subparagraph (b) if
(i) Mexico has been a net surplus producer for any two consecutive marketing years, or
(ii) Mexico has been a net surplus producer during the previous marketing year, and Mexico is projected to be a net surplus producer of sugar, in accordance with subparagraph (d), in the upcoming marketing year, unless Mexico ultimately is not a net surplus producer in that marketing year; and
(d) prior to the beginning of each marketing year, Mexico shall make projections of its domestic production and total consumption of sugar. Mexico and the United States shall consult by July 1 of each year to jointly determine whether Mexico is projected to be a net surplus producer in the upcoming marketing year, in accordance with the methodology and sources of information set out in Schedule 704.2(I)(B)(3).
4. Mexico shall implement a tariff quota to be applied on a Most Favored Nation basis for sugar and syrup goods with customs duties equal to those of the United States no later than six years after the date of entry into force of this Agreement. Mexico shall thereafter progressively eliminate its over quota customs duty for imports of sugar and syrup goods originating in the territory of the United States, in identical fashion as the reductions provided for United States customs duties in paragraph 2. Mexico shall establish the quantities of imports of sugar and syrup goods originating in the territory of the United States that shall be duty-free pursuant to the same procedure by which the United States shall establish such quantities with respect to imports of such goods originating in the territory of Mexico in accordance with sub-paragraph 3(b). The United States shall make projections of its domestic production and consumption, and the United States and Mexico shall consult and make the determination whether the United States is projected to be a net surplus producer, on the same terms as provided for in subparagraph 3(d).
5. If the United States eliminates its tariff quota for sugar and syrup goods imported from non-Parties, at such time the United States shall grant to Mexico the better of the treatment, as determined by Mexico, of:
(a) the treatment provided for in paragraph 3; or
(b) the Most-Favored-Nation treatment granted by the United States to non-Parties.
6. The measurement of the quantity imported shall be based on the actual weight of the imported sugar and syrup goods, converted as appropriate to raw value, without regard to the packaging in which the goods are imported or their presentation.
7. With respect to imports into the territory of Mexico of sugar and syrup goods, and products containing sugar or syrup, from the territory of the United States,
(a) Mexico shall accord preferential treatment in accordance with this Agreement when the following conditions apply
(i) with respect to sugar and syrup goods no benefits under any re-export program or any like program have been or will be granted in connection with the export of those goods, and
(ii) with respect to products containing sugar andsyrup goods, no benefits under any re-exportprogram or any like program have been or will begranted in connection with the export of thoseproducts;
(b) the United States shall provide notification to Mexicoof any export to Mexico, within two days of suchexport, for which the benefits of any re-export programor any other like program have been or will be claimedby the exporter; and
(c) except as provided for in paragraph 8, Mexico shall accord Most Favored Nation treatment to all imports from the territory of the United States of sugar and syrup goods with respect to which benefits under any re-export program or any like program shall have been claimed.
8. Notwithstanding any other provision of this Article:
(a) the United States shall grant duty-free treatment to imports of
(i) raw sugar originating in the territory of Mexicothat will be refined within the territory of theUnited States and re-exported to the territory ofMexico, and
(ii) refined sugar originating in the territory ofMexico that has been refined from raw sugarpreviously produced within, and exported from, theterritory of the United States;
(b) Mexico shall grant duty-free treatment to imports of
(i) raw sugar originating in the territory of theUnited States that will be refined within theterritory of Mexico and re-exported to theterritory of the United States, and
(ii) refined sugar originating in the territory of theUnited States that has been refined from raw sugarpreviously produced within, and exported from, theterritory of Mexico; and
(c) imports qualifying for duty-free treatment pursuant to subparagraphs (a) and (b) of this paragraph shall not be subject to, or counted under, any quota of the importing Party.
Schedule 704.2(I)(B)(3)
Net Production Surplus Determination
1. Methodology
(a) The size of a Party's net production surplus, shall bedetermined in accordance with the following formula:
(i) If a net production surplus has not been projectedfor any previous year, the formula shall be:
NPS = (PPy - CPy)
(ii) If a Party is projected to be a net surplus producer and has been projected to be a net surplus producer in a previous year, the Party's projected net production surplus shall be adjusted, to account for an underestimate or overestimate, as follows:
NPS = (PPy - CPy) - ((PPys - CPys) - (PAys - CAys))
where:
NPS = Net production surplusPP = Projected Domestic Production ofsugarCP = Projected Total Consumption ofsugary = upcoming marketing yearys = most recent previous marketing yearin which a net production surpluswas projectedPA = Actual Domestic Production of sugarCA = Actual Total Consumption of sugar
(b) The net production surplus shall be determined in metric tons raw value.
(c) For purpose of determining whether a Party is a net surplus producer, imported sugar shall not be treated as part of domestic production.
(d) The domestic production of a Party shall not include sugar, that has been either processed or refined from sugar beets or sugar cane grown, or sugar processed or refined, outside of the territory of such Party.
(e) When making projections of its net production surplus, each Party shall consider adjustments, in appropriate circumstances, to such projections to take into account a change in stocks for the current marketing year exceeding an upper bound calculated in accordance with the following formula:
where:
B = upper bound, expressed as a percentage
F = the absolute value of the change in stocks from the beginning of the marketing year to the end of the marketing year, expressed as a percentage of beginning stocks and calculated in accordance with the following formula:
³ Sb - Se ³F = ÃÄÄÄÄÄÄÄÄÄÄÄ´ x 100³ Sb ³
Sb = beginning stocks
Se = ending stocks
N = previous marketing year, ranging from 1 (first preceding year) to 5 (fifth preceding year)
2. Sources of Information
(a) For Mexico, statistics on production, consumption and stocks shall be provided by the Secretaria de Agricultura y Recursos Hidraulicos, the Secretaria de Comercio y Fomento Industrial, and the Secretaria de Hacienda y Credito Publico.
(b) For the United States, statistics on production,consumption and stocks shall be provided by the UnitedStates Department of Agriculture (USDA).
(c) Each Party shall permit representatives from the otherParty to observe and comment on the methodology it usesto prepare its data.
Mexico and Canada
1. This Section shall apply only between Canada and Mexico.
2. Each Party shall comply with Appendices A and B.
Appendix A
Tariffs, Quantitative Restrictions and GATT Market Access
1. Subject to the provisions of this Section, the Parties recognize that, upon the date of entry into force of this Agreement, each Party, in accordance with the rights and obligations set forth in Chapter 3, will not adopt or maintain measures regarding quantitative restrictions on the importation of agricultural goods originating in each other's territory, but may apply tariff quotas as set forth in its Schedule set out in Annex 302.2. The Parties further recognize that the over-quota tariff rate applied by a Party in connection with such tariff quotas will be progressively eliminated in the manner set forth in its Schedule set out in Annex 302.2.
2. Except as provided in paragraph 3, to the extent a tariff applied by a Party in accordance with a tariff quota as set forth in its Schedule set out in Annex 302.2 at any time exceeds the applicable bound rate of duty for that agricultural good as set forth in its GATT Schedule of Tariff Concessions as of June 12, 1991, the other Party hereby waives its rights with respect to the applicable bound rate of duty under GATT Article II, notwithstanding the provisions of Article 103.
3. If the GATT Uruguay Round Agreement on Agriculture enters into force with respect to a Party, pursuant to which that Party has agreed to convert its quantitative restrictions into tariff quotas, that Party shall ensure that the over-quota tariff rates it applies to agricultural goods of the other Party are not greater than the lower of (a) the applicable over-quota tariff rates set out in its Schedule set out in Annex 302.2 or (b) the applicable over-quota tariff rates set out in its GATT Schedule of Tariff Concessions.
4. Market access afforded by a Party in accordance with its Schedule set out in Annex 302.2 and applied to imports of agricultural goods of another Party shall count, as between the Parties, toward the satisfaction of market access commitments which have been agreed upon under its GATT Schedule of Tariff Concessions or which may be undertaken by the importing Party as a result of any GATT agreement entering into force as to that Party during the applicable transition period under this Agreement.
5. In respect of the dairy, poultry and egg goods designated in Schedule 704.2(II)(A)(5), either Party may adopt or maintain quantitative restrictions or tariffs consistent with its rights and obligations under the GATT, with respect to such goods originating in the territory of the other Party.
6. Without prejudice to the provisions of Chapter 8 of this Agreement and paragraph 5, neither Party shall introduce, maintain or seek any quantitative restriction or any other measure having equivalent effect on any agricultural goods covered under this Subchapter originating in the territory of the other Party.
7. Subject to this Section, Canada and Mexico incorporate their respective rights and obligations with respect to agricultural goods under the General Agreement on Tariffs and Trade (GATT) and agreements negotiated under the GATT, including the rights and obligations under GATT Article XI.
8. Notwithstanding paragraph 7 and Annex 301.3(A)(1)(j), the rights and obligations contained in Article XI:2(c)(i) of the GATT shall apply only to dairy, poultry and egg goods of Canada and Mexico designated in Schedule 704.2(II)(A)(5).
9. A good provided for in item 1806.10.a1 or 2106.90.a1 that is:
(a) imported into the territory of Canada from theterritory of Mexico; or
(b) imported into the territory of Mexico from theterritory of Canada,
shall be eligible for the rate of duty provided in Annex 302.2 only if all materials provided in subheading 1701.99 used in the production of such good are originating materials.
Schedule 704.2(II)(A)(5)
Dairy, Poultry and Egg Goods
For Canada: a dairy, poultry or egg good under one of the following subheadings:
Note: "X" indicates that a new tariff subheadingwill be established for this item
0105.11.90X Broiler chicks for domesticproduction, <185G
0105.91.00 Poultry, >185g
0105.99.00 Ducks, geese, turkeys, etc, >185g
0207.10.00 Poultry not cut in pieces, fresh or chilled
0207.21.00 Poultry, not in pieces, frozen
0207.22.00 Turkey, not in pieces, frozen
0207.39.00 Poultry cuts & offal, fresh
0207.41.00 Poultry cuts & offal, frozen
0207.42.00 Turkey cuts & offal, frozen
0209.00.20 Poultry fat
0210.90.10 Poultry meat, salted, dried, etc.
0401.10.00 Milk & cream, fat <1%
0401.20.00 Milk & cream, fat > 1% < 6%
0401.30.00 Milk & cream, fat > 6%
0402.10.00 Skim milk powder
0402.21.10 Whole milk powder
0402.21.20 Whole cream powder
0402.29.10 Milk powder fat > 1.5%
0402.29.20 Cream powder fat < 1.5%
0402.91.00 Milk & cream, conc., n.s.
0402.99.00 Milk & cream, not solid, added sweetener
0403.10.00 Yogurt
0403.90.10 Powdered buttermilk
0403.90.90 Curdled milk & cream, etc.
0404.10.10 Whey powder
0404.10.90 Whey, not powdered
0404.90.00 Other
0405.00.10 Butter
0405.00.90 Fats & oils derived from milk
0406.10.00 Fresh cheese
0406.20.10 Cheddar cheese
0406.20.90 Cheeses, not cheddar
0406.30.00 Processed cheese
0406.40.00 Blue-veined cheese
0406.90.10 Cheddar cheese, not processed
0406.90.90 Cheese, not cheddar, not processed
0407.00.00 Bird's eggs, in shell
0408.11.00 Dried egg yolks
0408.19.00 Egg yolks, not dried
0408.91.00 Bird's eggs, not in shell, dried
0408.99.00 Bird's eggs, not in shell, not dried
1601.00.10X Sausages or similar products of poultry meat, poultry meat offal or blood, in air tight containers
1602.31.10 Prep. meals, of meat or meat offal of turkeys
1602.31.91 Prep. or preserved meat, meat offal or blood, of turkeys,other than sausages or prep. meals, in air-tightcontainers
1602.31.99 Prep. or preserved meat, meat offal or blood, of turkeys,other than sausages or prep. meals, other than inair-tight containers
1602.39.10 Prep. meals containing meat or meat offal of fowls of thespecies (Gallus domesticus) ducks, geese or guinea fowls,incl. mixtures
1602.39.91 Prep. or preserved meat, meat offal or blood, of fowls of the species (Gallus domesticus), ducks, geese or guinea fowls, other than sausages, liver or prep. meals, in air-tight containers
1602.39.99 Prep. or preserved meat, meat offal or blood, of ducks, geese, etc., other than sausages, liver or prep. meals, in other than air-tight containers
2105.00.00 Ice cream & other edible ice, containing cocoa or not
2106.90.70 Food preps. not elsewhere specified or incl. Egg preps.
2106.90.90X Ice cream or ice milk mixes
2309.90.91X Complete feeds & feed supplements, incl. concentrates, containing more than 50% by weight of dairy products
3501.10.00 Casein
3501.90.00 Caseinates & other casein derivatives; casein glues
3502.10.10 Egg albumin, dried, evaporated, desiccated or powdered
3502.10.90 Egg albumin, nes
For Mexico: a dairy, poultry or egg good under one of the followingsubheadings:
Note: "X" indicates that a new tariff subheading item will beestablished for this item
0105.11.01 Day old chickens without being fed during its transportation
0105.91.01 Game cocks
0105.91.99 Other
0105.99.99 Other poultry
0207.10.01 Poultry, not cut into pieces, fresh or chilled
0207.21.01 Chickens
0207.22.01 Turkey
0207.39.01 Chicken offals except liver
0207.39.99 Other, poultry cut and offals
0207.41.0X Chicken cuts, frozen
0207.41.0Y Chicken offals, frozen
0207.41.0Z Chicken meat mechanicallydeboned, frozen
0207.41.ZZ Chicken meat mechanicallydeboned, fresh or chilled
0207.42.0X Turkey cuts, frozen
0207.42.0Y Turkey offals
0207.42.0Z Turkey meat, mechanicallydeboned, frozen
0207.42.ZY Turkey meat, mechanicallydeboned, fresh or chilled
0207.50.01 Poultry livers, frozen
0209.00.0Z Chicken or turkey bacon and lean parts
0210.90.99 Other
0401.10.01 In hermetic containers milk not concentrated
0401.10.99 Other
0401.20.01 In hermetic containers;
0401.20.99 Other
0401.30.01 In hermetic containers;
0401.30.99 Other
0402.10.01 Milk powder
0402.10.99 Other
0402.21.01 Milk powder
0402.21.99 Other
0402.29.99 Other
0402.91.01 Evaporated milk
0402.91.99 Other
0402.99.01 Condensed milk
0402.99.99 Other
0403.10.01 Yogurt
0403.90.01 Powdered milk whey with a protein content less than or equal to 12 percent
0403.90.99 Other butter whey
0404.10.01 Whey, concentrated, sweetened
0404.90.99 Other
0405.00.01 Butter, including theimmediate container, with aweight less than or equal to 1kg
0405.00.02 Butter, including theimmediate container, with aweight over 1 kg
0405.00.03 Butiric fat, dehydrated
0405.00.99 Other
0406.10.01 Fresh cheese, including whey cheese
0406.20.01 Cheese, grated or powdered
0406.30.01 Melted cheese, not grated or powdered
0406.30.99 Other, melted cheese
0406.40.01 Blue veined cheese
0406.90.01 Hard paste cheese called sardo
0406.90.02 Hard paste reggi cheese
0406.90.03 Soft paste cologne cheese
0406.90.04 Hard or semi-hard cheeses witha fat content by weight lessthan or equal to 40 percent,and with a water content byweight in non-fat matter lessthan or equal to 47 percent(called "grana", "parmigiana"or "reggiano,") or with a non-fat matter content by weightover 47 percent withoutexceeding 72 percent (called"danloo, edam, fontan,fontina, fynbo, gouda, Avarti,maribo, samsoe, esron,italico, kernhem, saint-nactarie, saint paulin, ortalegil)
0406.90.05 Petit suisse cheese
0406.90.06 Egmont cheese
0406.90.99 Other hard and semihard cheese
0407.00.01 Fresh birds eggs, fertile
0407.00.02 Frozen eggs
0407.00.99 Other poultry eggs
0408.11.01 Dried yolks
0408.19.99 Other
0408.91.01 Frozen or powdered
0408.91.99 Other
0408.99.01 Frozen or powdered
0408.99.99 Other
1601.00.9X Chicken and turkey sausages
1602.20.0X Homogenized preparations ofchickens or turkey livers
1602.31.01 Prepared or preserved turkeymeat
2105.00.01 Ice cream and similar products
2106.90.9X Egg preparations
2309.90.9X Preparations containing over 50 percent of milk products
3501.10.01 Casein
3501.90.01 Casein glues
3501.90.02 Caseinates
3501.90.99 Other
3502.10.01 Egg albumin
Appendix B
Trade in Sugar
1. Mexico's customs duty for imports of sugar and syrup goods originating in the territory of Canada shall be equal to its Most-Favored-Nation over-quota customs duty.
2. Canada may apply a customs duty on sugar and syrup goods originating in the territory of Mexico equal to the customs duty applied by Mexico on such goods originating in the territory of Canada.
Agricultural Grading and Marketing Standards
Each Party shall comply with Sections I and II.
United States and Mexico
1. When either the United States or Mexico adopts or maintains a measure regarding the classification, grading or marketing of a domestic agricultural good, it shall, with respect to the like agricultural good imported from the territory of the other destined for processing, accord treatment no less favorable than the treatment it accords under the measure to the domestic agricultural good destined for processing. The importing Party may also adopt or maintain measures to ensure that such imported good is processed.
2. Paragraph 1 shall be without prejudice to the rights of either the United States or Mexico under the GATT or under Article 301 of this Agreement with respect to measures concerning the classification, grading or marketing of an agricultural good (whether or not destined for processing).
3. Mexico and the United States agree to form a Working Group to review, in coordination with the Committee on Standards-Related Measures established under Chapter 9, the operation of grade and quality standards regarding agricultural goods as they affect the other Parties to this Agreement, and to resolve issues which may arise. This Working Group shall report to the Committee on Agriculture established under Article 708, and shall meet at least once a year or as otherwise agreed by the two Parties.
Canada and Mexico
Mexico and Canada agree to form a Working Group to review, in coordination with the Committee on Standards-Related Measures established under Chapter Nine (Standards-Related Measures), the operation of grade and quality standards regarding agricultural goods as they affect the other Parties to this Agreement, and to resolve issues which may arise. This Working Group shall report to the Committee on Agriculture established under Article 708, and shall meet at least once a year or as otherwise agreed by the two Parties. ANNEX 704.4
Special Safeguards
Mexican Special Safeguard Goods
0103.91.99 Live swine, weighing less than50 kilograms each, exceptpurebred breeding animals andthose with pedigree orselected breed certificate
0103.92.99 Live swine, weighing 50kilograms or more each, exceptpurebred breeding animals andthose with pedigree orselected breed certificate
0203.11.01 Meat of swine, carcasses andhalf-carcasses, fresh orchilled
0203.12.01 Hams, shoulders or cutsthereof, with bone in, freshor chilled
0203.19.99 Other swine meat, fresh orchilled
0203.21.01 Meat of swine, carcasses andhalf-carcasses, frozen
0203.22.01 Hams, shoulders and cutsthereof, with bone in, frozen
0203.29.99 Other swine meat, frozen
0210.11.01 Hams, shoulders and cutsthereof with bone in, salted,in brine, dried or smoked
0210.12.01 Bellies (streaky) and cutsthereof, salted, in brine,dried or smoked
0210.19.99 Other swine meat, salted, in brine, dried or smoked
0710.10.01 Potatoes, uncooked or cookedby steaming or boiling inwater, 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 preservedotherwise than by vinegar oracetic acid, frozen
2005.20.01 Potatoes prepared or preservedotherwise than by vinegar oracetic acid, not frozen
2101.10.01 Extracts, essences or concentrates, of coffee, and preparations with a basis of these extracts, essences or concentrates or with a basis of coffee
U.S. Special Safeguard Goods
Note: A new U.S. HTS number will be established for each item
0702.00.XX Tomatoes (except cherry tomatoes), fresh or chilled; if entered during the period from November 15 to the last day of the following February, inclusive
0702.00.XX Tomatoes (except cherry tomatoes), fresh or chilled; if entered during the period from March 1 to July 14, inclusive
0703.10.XX Onions and shallots, fresh or chilled (not including onion sets and not including pearl onions not over 16 mm in diameter) if entered January 1 to April 30, inclusive
0709.30.XX Eggplants (aubergines), fresh or chilled, if entered during the period from April 1 to June 30, inclusive
0709.60.XX "Chili" peppers; if entered during the period from October 1 to July 31, inclusive (current 0709.60.00.20)
0709.90.XX Squash, fresh or chilled; if entered during the period from October 1 to the following June 30, inclusive
0807.10.XX Watermelons, fresh; if entered during the period from May 1 to September 30, inclusive
Canadian Special Safeguard Goods
Canadian HTS NUMBER DESCRIPTION
0603.10.90 Fresh cut flowers0702.00.91 Tomatoes n.e.s., fresh orchilled (dutiable period)0703.10.31 Onions or shallots, green(dutiable period), fresh0707.00.91 Cucumber, fresh or chilled,n.e.s. (dutiable period)0710.80.20 Broccoli and cauliflowers,blanched or not, frozen0811.10.10 Strawberries, for processing,frozen0811.10.90 Strawberries, frozen, otherthan for processing2002.90.00 Tomatoes, other than whole(tomato paste)
Country-Specific Definitions
For purposes of this Subchapter, sugar and syrup goods means:
(a) for imports into Mexico, goods classifiable under current subheadings 1701.11.01, 1701.11.99, 1701.12.01, 1701.12.99, 1701.91 (except those that contain added flavoring matter), 1701.99.01, 1701.99.99, 1702.90.01, 1806.10.01 (except those with a sugar content less than 90 per cent) and 2106.90.05 (except those that contain flavoring matter) of the Mexican Tariff Schedules;
(b) for imports into the United States, goods classifiable under current subheadings 1701.11.03, 1701.12.02, 1701.91.22, 1701.99.02, 1702.90.32, 1806.10.42, and 2106.90.12 of the U.S. Harmonized Tariff Schedule, without regard to the quantity imported; and
(c) for imports into Canada, goods classifiable under current subheadings 1701.11.10, 1701.11.20, 1701.11.30, 1701.11.40, 1701.11.50, 1701.12.00, 1701.91.00, 1701.99.00, 1702.90.31, 1702.90.32, 1702.90.33, 1702.90.34, 1702.90.35, 1702.90.36, 1702.90.37, 1702.90.38, 1702.90.40, 1806.10.00 (except those with a sugar content less than 90 per cent) and 2106.90.20 (except those that contain flavoring matter) of the Canadian Tariff Schedule.
Subchapter B - Sanitary and Phytosanitary Measures
Article 751: Scope
In order to establish a framework of rules and disciplines to guide the development, adoption and enforcement of sanitary and phytosanitary measures, this Subchapter applies to any such measure of a Party that may, directly or indirectly, affect trade between the Parties.
Article 752: Relation to Other Chapters
Articles 301 (National Treatment), 309 (Import and Export Restrictions) and 310 (Non-Discriminatory Administration of Restrictions), and the provisions of Article XX(b) of the GATT as incorporated into Article 2101(1), do not apply to any sanitary or phytosanitary measure.
Article 753: Reliance on Non-Governmental Entities
Each Party shall ensure that any non-governmental entity on which it relies in applying a sanitary or phytosanitary measure acts in a manner consistent with this Subchapter.
Article 754: Basic Rights and Obligations
Right to Take Sanitary and Phytosanitary Measures
1. Each Party may, in accordance with this Subchapter, adopt, maintain or apply any sanitary or phytosanitary measure necessary for the protection of human, animal or plant life or health in its territory, including a measure more stringent than an international standard, guideline or recommendation.
Right to Establish Level of Protection
2. Notwithstanding any other provision of this Subchapter, each Party may, in protecting human, animal or plant life or health, establish its appropriate level of protection in accordance with Article 757.
Scientific Principles
3. Each Party shall ensure that any sanitary or phytosanitary measure that it adopts, maintains or applies is:
(a) based on scientific principles, taking into account relevant factors including, where appropriate, different geographic conditions;
(b) not maintained where there is no longer a scientificbasis for it; and
(c) based on a risk assessment, as appropriate to thecircumstances.
Non-Discriminatory Treatment
4. Each Party shall ensure that a sanitary or phytosanitary measure that it adopts, maintains or applies does not arbitrarily or unjustifiably discriminate between its goods and like goods of another Party, or between goods of another Party and like goods of any other country, where identical or similar conditions prevail.
Unnecessary Obstacles
5. Each Party shall ensure that any sanitary or phytosanitary measure that it adopts, maintains or applies is applied only to the extent necessary to achieve its appropriate level of protection, taking into account technical and economic feasibility.
Disguised Restrictions
6. No Party may adopt, maintain or apply any sanitary or phytosanitary measure with a view to, or with the effect of, creating a disguised restriction to trade between the Parties.
Article 755: International Standards and StandardizingOrganizations
1. Without reducing the level of protection of human, animal, or plant life or health, each Party shall use, as a basis for its sanitary and phytosanitary measures, relevant international standards, guidelines or recommendations with the objective, among others, of making its sanitary and phytosanitary measures equivalent or, where appropriate, identical to those of the other Parties.
2. A Party's sanitary or phytosanitary measure that conforms to a relevant international standard, guideline or recommendation shall be presumed to be consistent with Article 754. A measure that results in a level of sanitary or phytosanitary protection different from that which would be achieved by a measure based on a relevant international standard, guideline or recommendation shall not for that reason alone be presumed to be inconsistent with this Subchapter.
3. Notwithstanding paragraph 1 and in accordance with the other provisions of this Subchapter, a Party may adopt, maintain or apply a sanitary or phytosanitary measure that is more stringent than the relevant international standard, guideline or recommendation.
4. Where a Party has reason to believe that a sanitary or phytosanitary measure of another Party is adversely affecting or may adversely affect its exports and the measure is not based on a relevant international standard, guideline or recommendation, it may request, and the other Party shall provide in writing, the reasons for such measure.
5. Each Party shall, to the greatest extent practicable, participate in relevant international and North American standardizing organizations, including the Codex Alimentarius Commission, the International Office of Epizootics, the International Plant Protection Convention, and the North American Plant Protection Organization, with a view to promoting the development and periodic review of international standards, guidelines and recommendations.
Article 756: Equivalence
1. Without reducing the level of protection of human, animal, or plant life or health, the Parties shall, to the greatest extent practicable and in accordance with this Subchapter, pursue equivalence of their respective sanitary or phytosanitary measures.
2. Each importing Party:
(a) shall treat a sanitary or phytosanitary measure adopted or maintained by an exporting Party as equivalent to its own where the exporting Party, in cooperation with the importing Party, provides to the importing Party scientific evidence or other information, in accordance with risk assessment methodologies agreed upon by those Parties, to demonstrate objectively, subject to subparagraph (b), that the exporting Party's measure achieves the importing Party's appropriate level of protection;
(b) may, where it has a scientific basis, determine thatthe exporting Party's measure does not achieve theimporting Party's appropriate level of protection; and
(c) shall, upon the request of the exporting Party, provideits reasons in writing for a determination undersubparagraph (b).
3. For purposes of establishing equivalency, each exporting Party shall, upon the request of an importing Party, take such reasonable measures as may be available to it to facilitate access in its territory for inspection, testing, and other relevant procedures.
4. Each Party should, in the development of a sanitary or phytosanitary measure, consider relevant actual or proposed sanitary or phytosanitary measures of the other Parties.
Article 757: Risk Assessment and Appropriate Level ofProtection
1. In conducting a risk assessment, each Party shall take into account:
(a) relevant risk assessment techniques and methodologies developed by international or North American standardizing organizations;
(b) relevant scientific evidence;
(c) relevant processes and production methods;
(d) relevant inspection, sampling, and testing methods;
(e) the prevalence of relevant diseases or pests, including the existence of pest-free or disease-free areas or areas of low pest or disease prevalence;
(f) relevant ecological and other environmental conditions; and
(g) relevant treatments, such as quarantines.
2. Further to paragraph 1, each Party shall, in establishing its appropriate level of protection regarding the risk associated with the introduction, establishment or spread of an animal or plant pest or disease, and in assessing such risk, also take into account the following economic factors, where relevant:
(a) loss of production or sales that may result from suchpest or disease;
(b) costs of control or eradication of the pest or diseasein its territory; and
(c) the relative cost-effectiveness of alternativeapproaches to limiting risks.
3. Each Party, in establishing its appropriate level of protection:
(a) should take into account the objective of minimizing negative trade effects; and
(b) shall, with the objective of achieving consistency in such levels, avoid arbitrary or unjustifiable distinctions in such levels in different circumstances, where such distinctions result in arbitrary or unjustifiable discrimination against a good of another Party or constitute a disguised restriction on trade between the Parties.
4. Notwithstanding paragraphs (1) through (3) and Article 754(3)(c), where a Party conducting a risk assessment determines that available relevant scientific evidence or other information is insufficient to complete the assessment, it may adopt a provisional sanitary or phytosanitary measure on the basis of available relevant information, including from international or North American standardizing organizations and from sanitary or phytosanitary measures of other Parties. Such Party shall, within a reasonable period after information sufficient to complete the assessment is presented to it, complete its assessment, review and where appropriate revise the provisional measure in light of such assessment.
5. Where a Party is able to achieve its appropriate level of protection through the phased application of a sanitary or phytosanitary measure, it may, upon the request of another Party and in accordance with this Subchapter, allow for such a phased application, or grant specified exceptions for limited periods from such measure, taking into account the requesting Party's export interests.
Article 758: Adaptation to Regional Conditions
1. Each Party shall adapt any of its sanitary or phytosanitary measures relating to the introduction, establishment, or spread of an animal or plant pest or disease, to the sanitary or phytosanitary characteristics of the area where a good subject to such measure is produced and the area in its territory to which such good is destined, taking into account any relevant conditions, including those relating to transportation and handling, between such areas. In assessing such characteristics of an area, including whether an area is, and is likely to remain, a pest-free or disease-free area or an area of low pest or disease prevalence, each Party shall take into account, among other factors:
(a) the prevalence of relevant pests or diseases in thatarea;
(b) the existence of eradication or control programs inthat area; and
(c) any relevant international standard, guideline orrecommendation.
2. Further to paragraph 1, each Party shall, in determining whether an area is a pest-free or disease-free area or an area of low pest or disease prevalence, base such determination on factors such as geography, ecosystems, epidemiological surveillance, and the effectiveness of sanitary or phytosanitary controls in that area.
3. Each importing Party shall recognize that an area in the territory of the exporting Party is, and is likely to remain, a pest-free or disease-free area or an area of low pest or disease prevalence, where the exporting Party provides to the importing Party scientific evidence or other information sufficient to so demonstrate to the satisfaction of the importing Party. For this purpose, each exporting Party shall provide reasonable access in its territory to the importing Party for inspection, testing and other relevant procedures.
4. Each Party may, in accordance with this Subchapter:
(a) adopt, maintain or apply a different risk assessment procedure for a pest-free or disease-free area than for an area of low pest or disease prevalence; or
(b) make a different final determination for the disposition of a good produced in a pest-free or disease-free area than for a good produced in an area of low pest or disease prevalence,
taking into account any relevant conditions, including those relating to transportation and handling.
5. Each Party shall, in adopting, maintaining or applying a sanitary or phytosanitary measure relating to the introduction, establishment, or spread of an animal or plant pest or disease, accord a good produced in a pest-free or disease-free area in the territory of another Party no less favorable treatment than it accords a good produced in a pest-free or disease-free area, in another country, that poses the same level of risk. Such Party shall use equivalent risk assessment techniques to evaluate relevant conditions and controls in the pest-free or disease-free area and in the area surrounding that area and take into account any relevant conditions, including those relating to transportation and handling.
6. Each importing Party shall pursue an agreement with an exporting Party, upon request, on specific requirements the fulfillment of which allows a good produced in an area of low pest or disease prevalence in the territory of an exporting Party to be imported into the territory of the importing Party and achieves the importing Party's appropriate level of protection.
Article 759: Control, Inspection and Approval Procedures
1. Each Party, with respect to any control or inspection procedure that it conducts:
(a) shall initiate and complete such procedure as expeditiously as possible and in no less favorable manner for a good of another Party than for a good of such Party or a like good of any other country;
(b) shall publish the normal processing period for each such procedure or communicate the anticipated processing period to the applicant upon request;
(c) shall ensure that the competent body
(i) upon receipt of an application, promptly examinesthe completeness of the documentation and informsthe applicant in a precise and complete manner ofany deficiency,
(ii) transmits to the applicant as soon as possible theresults of the procedure in a form that is preciseand complete so that such applicant may take anynecessary corrective action,
(iii) where the application is deficient, proceedsas far as practicable with such procedure ifthe applicant so requests, and
(iv) informs the applicant, upon request, of thestatus of the application and the reasons for anydelay;
(d) shall limit the information the applicant is requiredto supply to that necessary for conducting suchprocedure;
(e) shall accord confidential or proprietary informationarising from, or supplied in connection with, suchprocedure conducted for a good of another Party
(i) treatment no less favorable than for a good of such Party, and
(ii) in any event, treatment that protects theapplicant's legitimate commercial interests, tothe extent provided under the Party's law;
(f) shall limit any requirement regarding individualspecimens or samples of a good to that which isreasonable and necessary;
(g) should not impose a fee for conducting such procedure that is higher for a good of another Party than is equitable in relation to any such fee it imposes for its like goods or for like goods of any other country, taking into account communication, transportation and other related costs;
(h) should use criteria for selecting the location of facilities at which a procedure is conducted that do not cause unnecessary inconvenience to an applicant or its agent;
(i) shall provide a mechanism to review complaintsconcerning the operation of such procedure and to takecorrective action when a complaint is justified;
(j) should use criteria for selecting samples of goods thatdo not cause unnecessary inconvenience to an applicantor its agent; and
(k) shall limit such procedure, for a good modified subsequent to a determination that such good fulfills the requirements of the applicable sanitary or phytosanitary measure, to that necessary to determine that such good continues to fulfill the requirements of such measure.
2. Each Party shall apply, with such modifications as may be necessary, paragraphs 1(a) through (i) to its approval procedures.
3. Where an importing Party's sanitary or phytosanitary measure requires the conduct of a control or inspection procedure at the level of production, an exporting Party shall, upon the request of the importing Party, take such reasonable measures as may be available to it to facilitate access in its territory and to provide assistance necessary to facilitate the conduct of the importing Party's control or inspection procedure.
4. A Party maintaining an approval procedure may require its approval for the use of an additive, or its establishment of a tolerance for a contaminant, in a food, beverage or feedstuff, under such procedure, prior to granting access to its domestic market for a food, beverage or feedstuff containing such additive or contaminant. Where such Party so requires, it shall consider using a relevant international standard, guideline or recommendation as the basis for granting access until it completes such procedure.
Article 760: Notification, Publication and Provision ofInformation
1. Further to Articles 1802 and 1803, each Party proposing to adopt or modify a sanitary or phytosanitary measure of general application at the federal level shall:
(a) at least 60 days prior to the adoption or modification of such measure, other than a law, publish a notice and notify in writing the other Parties of the proposed measure and provide to the other Parties and publish the full text of the proposed measure, in such a manner as to enable interested persons to become acquainted with the proposed measure;
(b) identify in such notice and notification the good to which the proposed measure would apply, and provide a brief description of the objective and reasons for such measure;
(c) provide a copy of such proposed measure to any Party orinterested person that so requests and, whereverpossible, identify any provision that deviates insubstance from relevant international standards,guidelines or recommendations; and
(d) without discrimination, allow other Parties andinterested persons to make comments in writing andshall, upon request, discuss such comments and take thecomments and the results of such discussions intoaccount.
2. Each Party shall seek, through appropriate measures, to ensure, with respect to a sanitary or phytosanitary measure of a state or provincial government:
(a) that, at an early appropriate stage, a notice and notification of the type referred to in paragraphs 1(a) and (b) are made prior to their adoption; and
(b) observance of paragraphs 1(c) and (d).
3. Where a Party considers it necessary to address an urgent problem relating to sanitary and phytosanitary protection, it may omit any step set out in paragraph 1 or 2, provided that, upon adoption of a sanitary or phytosanitary measure, it shall:
(a) immediately provide to the other Parties a notification of the type referred to in paragraph 1(b), including a brief description of the urgent problem;
(b) provide a copy of such measure to any Party or interested person that so requests; and
(c) without discrimination, allow other Parties and interested persons to make comments in writing and shall, upon request, discuss such comments and take such comments and the results of such discussions into account.
4. Except where necessary to address an urgent problem referred to in paragraph 3, each Party shall allow a reasonable period between the publication of a sanitary or phytosanitary measure of general application and the date that it becomes effective to allow time for interested persons to adapt to such measure.
5. Each Party shall designate a government authority responsible for the implementation at the federal level of the notification provisions of this Article, and shall notify the other Parties thereof. Where a Party designates two or more government authorities for such purpose, it shall provide to the other Parties complete and unambiguous information on the scope of responsibility of each such authority.
6. Where an importing Party denies entry into its territory of a good of another Party because it does not comply with a sanitary or phytosanitary measure, the importing Party shall provide a written explanation to the exporting Party, upon request, that identifies the applicable measure and the reasons that the good is not in compliance.
Article 761: Inquiry Points
1. Each Party shall ensure that there is one inquiry point that is able to answer all reasonable enquiries from other Parties and interested persons, and to provide relevant documents, regarding:
(a) any sanitary or phytosanitary measure of general application, including any control or inspection procedure or approval procedure, proposed, adopted or maintained in its territory at the federal, provincial, or state government level;
(b) such Party's risk assessment procedures and factors it considers in conducting such assessment and in establishing its appropriate levels of protection;
(c) the membership and participation of such Party, or its relevant federal, provincial or state government authorities in international and regional sanitary and phytosanitary organizations and systems, and in bilateral and multilateral arrangements within the scope of this Subchapter, and the provisions of such systems and arrangements; and
(d) the location of notices published pursuant to this Subchapter or where such information can be obtained.
2. Each Party shall ensure that where copies of documents are requested by another Party or by interested persons in accordance with this Subchapter, they are supplied at the same price, apart from the actual cost of delivery, as the price for domestic purchase.
Article 762: Technical Cooperation
1. Each Party shall, upon the request of another Party, facilitate the provision of technical advice, information and assistance, on mutually agreed terms and conditions, to enhance that Party's sanitary and phytosanitary measures and related activities, including research, processing technologies, infrastructure and the establishment of national regulatory bodies. Such assistance may include credits, donations and grants, for the purpose of acquiring technical expertise, training and equipment to allow the Party to adjust to and comply with a Party's sanitary or phytosanitary measure.
2. Each Party shall, on the request of another Party:
(a) provide to that Party information on its technical cooperation programs regarding sanitary or phytosanitary measures relating to specific areas of interest; and
(b) consult with the other Party during the development of, or prior to the adoption or change in the application of, any sanitary or phytosanitary measure.
Article 763: Limitations on the Provision of Information
Nothing in this Subchapter shall be construed as requiring aParty to:
(a) communicate, publish texts or provide particulars or copies of documents other than in an official language of such Party; or
(b) furnish any information the disclosure of which would impede law enforcement or otherwise be contrary to the public interest or would prejudice the legitimate commercial interests of particular enterprises.
Article 764: Committee on Sanitary and Phytosanitary Measures