NAFTA TABLE OF CONTENTS

PREAMBLE PART ONE: GENERAL PART

Chapter 1: Objectives Chapter 2: General Definitions PART TWO: TRADE IN GOODS Chapter 3: National Treatment and Market Access Annex 300 - A: Annex 300 - B: Automotive Sector Textiles and Apparel

Chapter 4: Rules of Origin Chapter 5: Customs Procedures Chapter 6: Energy Chapter 7: Agriculture Subchapter A: Subchapter B: Market Access Sanitary and Phytosanitary Measures

Chapter 8: Emergency Action ======================================================================= ====== PART THREE: TECHNICAL BARRIERS TO TRADE Chapter 9: Standards-Related Measures PART FOUR: GOVERNMENT PROCUREMENT Chapter 10: Government Procurement PART FIVE: INVESTMENT, SERVICES AND RELATED MATTERS Chapter 11: Investment Chapter 12: Cross-Border Trade in Services Chapter 13: Telecommunications

Chapter 14: Financial Services Chapter 15: Competition Policy, Monopolies and State Enterprises Chapter 16: Temporary Entry for Business Persons PART SIX: INTELLECTUAL PROPERTY

Chapter 17: Intellectual Property PART SEVEN: ADMINISTRATIVE AND INSTITUTIONAL PROVISIONS Chapter 18: Publication, Notification and Administration of Laws Chapter 19: Review and Dispute Settlement in Antidumping and Countervailing Duty Matters Chapter 20: Institutional Arrangements and Dispute Settlement Procedures PART EIGHT: OTHER PROVISIONS Chapter 21: Exceptions Chapter 22: Final Provisions

ANNEXES I THROUGH VII Reservations: Chapter Eleven (Investment) Chapter Twelve (Cross-Border Trade in Services) Chapter Fourteen (Financial Services)

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

PART ONE GENERAL PART Chapter One Objectives

Article 101:

Establishment of the Free Trade Area

The Parties to this Agreement, consistent with Article XXIV of the General Agreement on Tariffs and Trade, hereby establish a free trade area. Article 102: Objectives

1. The objectives of this Agreement, as elaborated more specifically through its principles and rules, including national treatment, most-favored-nation treatment and transparency are to: (a) eliminate barriers to trade in, and facilitate the cross border movement of, goods and services between the territories of the Parties; (b) promote conditions of fair competition in the free trade area; (c) increase substantially investment opportunities in their territories; (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, and for its joint administration and 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 the provisions of this Agreement and such other agreements, the provisions of this Agreement shall prevail to the extent of the inconsistency, except as otherwise provided in this Agreement. Article 104: Agreements Relation to Environmental and Conservation

1. In the event of any inconsistency between this Agreement and the specific trade obligations set out in: (a) Convention on the International Trade in Endangered Species of Wild Fauna and Flora, done at Washington, March 3, 1973; (b) the Montreal Protocol on Substances that Deplete the Ozone Layer, done at Montreal, September 16, 1987, as amended June 29, 1990; (c) Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal, done at Basel, March 22, 1989, upon 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 the agreements listed 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 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.

\ 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; 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 privatelyowned 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 laws of, or principally carrying on its business in the territory of, a Party; existing means in effect at the time 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; Harmonized System 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; 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 province or state includes local governments. ======================================================================= ====== ANNEX 201.1 Country-Specific Definitions For purposes of this Agreement, unless otherwise specified: national also includes: (a) for Mexico, a national or a citizen according to Articles 30 and 34, respectively, of the Mexican Constitution; and (b) for the United States, "national of the United States" as defined in the existing provisions of the United States 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 laws, 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, (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 laws, 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 laws, the United States may exercise rights with respect to the seabed and subsoil and their natural resources.

PART TWO TRADE IN GOODS

Chapter Three

National Treatment and Market Access for Goods

Subchapter 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 province or state, treatment no less favorable than the most favorable treatment accorded by such province or state 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 shall not apply to the measures set out in Annex 301.3.

Subchapter 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 set out in Annex 302.2 or as otherwise indicated in Annex 300-B. 3. At 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 any two or more Parties to accelerate the elimination of a customs duty on a good shall supersede any prior inconsistent duty rate or staging category in their Schedules for such good when approved by each such Party in

accordance with Article 2202(2) (Amendments). 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 that 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, or 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, by reason of an exportation described in paragraph 1, 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); 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 upon the timely presentation of such evidence under the laws and regulations of the Party. 6. This Article shall 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). Where originating and non-originating fungible goods are commingled and exported in the same form, the origin of the good may be determined on the basis of the inventory methods provided for in the Uniform Regulations; (c) a good imported into the territory of the Party that is deemed to be exported from the territory of a Party, 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 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) a dutiable 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. 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 under tariff provision 8540.xx (cathode-ray color television picture tubes, including video monitor tubes, with a diagonal exceeding 14") 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. 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, upon 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, and thus not generally available to all importers, 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 covered by Article 303 (Restriction on Drawback and Duty Deferral). 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 16 (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 and 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 subparagraph 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 upon entry or final importation, or by another form of security, releasable upon 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 upon 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 subparagraph 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 upon 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 (CrossBorder Trade in Services): (a) each Party shall allow a locomotive, truck, truck tractor, or tractor trailer unit, railway car, other railroad equipment, trailer ("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 bringing a Party into that takes Party. Party may require that the vehicle or carrier container from the territory of another its territory be the same vehicle or carrier such container to the territory of another

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 of, or services provided from, the territory of another Party or non-Party; or (b) such each contain material and form part of advertising materials be imported in packets that no more than one copy of each such that neither such materials nor packets 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 on 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 (Duty Drawback), no Party shall apply a customs duty to a good, regardless of its origin, imported temporarily from the territory of another Party for repair or alteration. 3. Each Party shall act in accordance with Annex 307.3 respecting the repair and rebuilding of vessels. Article 308: Most-Favored-Nation Rates of Duty on Certain Goods 1. Each Party shall act in accordance with Annex 308.1 respecting certain automatic data processing goods and their parts. 2. Each Party shall act in accordance with Annex 308.2 respecting certain color television tubes. 3. Each Party shall accord most-favored-nation duty-free treatment to Local Area Network (LAN) apparatus imported into its territory as set out in each Party's section of Annex 308.3.

Subchapter C - Non-Tariff Measures

Article 309: Import and Export Restrictions 1. Except as otherwise provided in this Agreement, no Party shall 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 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 nonParty 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 nonParty; 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 that non-Party, directly or indirectly, without having been increased in value and improved in condition [subject to review]. 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, upon 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: (a) not apply to the measures set out in Annex 301.3; (b) apply to automotive goods as modified in Annex 300-A (Trade and Investment in the Automotive Sector); and (c) apply to trade in textile and apparel goods, as modified in Annex 300-B (Textile and Apparel Goods).

6. For purposes of this Article, goods of another Party shall mean [under review]. Article 310: Non-Discriminatory Administration of Restrictions (GATT Article XIII) [need for this Article is under review] Article 311: Customs User Fees 1. No Party may adopt any customs user fee of the type referred to in Annex 311 for originating goods. 2. Each Party may maintain existing such fees only in accordance with Annex 311.2. Article 312: Country of Origin Marking Each Party shall comply with Annex 312 with respect to its measures relating to country of origin marking. Article 313: Blending Requirements 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. Article 314: Distinctive Products Each Party shall comply with Annex 314 respecting standards and labelling of the distinctive products set out therein. Article 315: Export Taxes Except as set out in Annex 315 or Article 604 (Energy Export Taxes), 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 316: Other Export Measures 1. Except as set out in Annex 316, a Party may adopt or maintain a restriction otherwise justified under the provisions of 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 adopt any measure, such as a license, fee, tax or minimum price requirement, that has the effect of raising the price for exports of a good to that other Party above the price charged for such good when consumed domestically, except that a measure taken pursuant to subparagraph (a) that only restricts the volume of exports shall not be considered to have such effect; 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.

Subchapter D

Consultations

Article 317: 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 at the request of any Party or the Commission to consider any matter arising under this Chapter. Article 318: 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 anti-dumping 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.

Subchapter E - Definitions Article 319: 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; 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 or 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);

distilled spirits include distilled spirits and distilled spiritcontaining 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 tendigit level set out in a Party's tariff schedule; material means "material" as defined in Chapter Four (Rules of Origin); most-favored-nation rate of duty does not include any other concessionary rate of duty; 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; or (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 developed 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 [subject to review] Section A - Canadian Measures 1. Articles 301 and 309 shall not apply to:

(a) controls by Canada on the export of logs of all species; (b) controls by Canada on the export of unprocessed fish pursuant to the following existing statutes: (i) New Brunswick Fish Processing Act, R.S.N.B. c. F18.01 (1982), as amended, and Fisheries

Development Act, S.N.B. c. F-15.1 (1977), as amended; (ii) Newfoundland Fish Inspection Act, R.S.N. 1970, c. 132, as amended; (iii) Nova Scotia Fisheries Act, S.N.S. 1977, c. 9, as amended; (iv) Prince Edward Island Fish Inspection Act, R.S.P.E.I. 1988, c. F-13, as amended; and (v) Quebec Marine Products Processing Act, No. 38, S.Q. 1987, c. 51, as amended; (c) measures by Canada respecting the importation of certain items on the Prohibited Goods List in Schedule VII of the Customs Tariff, R.S.C. 1985, c. 41 (3rd supp.), as amended, as of July 1, 1991; (d) except as provided in Chapter Seven (Agriculture), measures by Canada respecting the importation of grains taken with respect to the United States, (Canadian Wheat Board Act, R.S.C. 1985, c. C-24, as amended); (e) 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 Export Act, R.S.C. 1985, c. E18, as amended; (f) measures by Canada respecting the importation and distribution of imported liquor by designated government agencies under the existing provisions of Importation of Intoxicating Liquors Act, R.S.C. 1985, c. I-3, as amended, to the extent that it creates an import monopoly consistent with Articles II:4 and XVII of the GATT and Article 31 of the Havana Charter; (g) except as provided in Chapter Seven (Agriculture), measures by Canada respecting preferential freight rates for grain originating in certain Canadian provinces under the existing provisions of Western Grain Transportation Act, R.S.C. 1985, c. W-8, as amended; (h) measures by Canada respecting preferential rates for goods originating in certain Canadian provinces under the existing provisions of Maritime Freight Rate Act, R.S.C. 1985, c. M-1, as amended; (i) Canadian excise taxes on absolute alcohol used in manufacturing under the existing provisions of Excise Tax Act, R.S.C. 1985, c. E-15, as amended; (j) except as provided for in Chapter Seven (Agriculture), import restrictions imposed under Section 5(1)(b) and

(d) of the Export and Import Permits Act, R.S.C. 1985, c. E-19, as amended, as of January 1, 1994, that are in accordance with the provisions of Article XI:2(c)(i) of the GATT; and (k) 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 U.S.C. App. 883) and the Merchant Marine Act of 1936, (46 U.S.C. App. 1171, 1176, 1241 and 1241o) apply with quantitative effect to comparable Canadian origin goods sold or offered for sale into the United States market. 2. Notwithstanding any provision of this Agreement, any measure related to the internal sale and distribution of wine and distilled spirits, other than those covered by Article 313 (Blending Requirements) or Article 314 (Distinctive Products) shall, as between Canada and the United States, 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 this Agreement. 3. In respect of any measure related to the internal sale and distribution of wine and distilled spirits, the provisions of Articles 301 and 309 shall not apply as between Canada and Mexico 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; (c) an amendment to a non-conforming provision of any existing measure to the extent the amendment does not decrease its conformity with the provisions of Article 301 or 309; or (d) measures set out in paragraphs 4 and 5. 4. Further to paragraph 3(d):

(a) 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; (b) Canada may (i) adopt or maintain 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; and (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 Parties, whether or not such wine is bottled in Quebec. 5. As between Canada and Mexico:

(a) any measure related to listing of wine and distilled spirits of the other Party shall (i) conform with Article 301, (ii) be transparent, non-discriminatory and provide for prompt decision on any listing application, prompt written notification of such decision to the applicant, and in the case of a negative decision, provide for a statement of the reason for refusal, (iii) establish administrative appeal procedures for listing decisions that provide for prompt, fair and objective rulings, (iv) be based on normal commercial considerations, (v) not create disguised barriers to trade, and (vi) be published and made generally available to persons of Mexico; (b) where the distributor is a public entity, the entity may charge the actual cost-of-service differential between wine and distilled spirits of the other Party and domestic wine and 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 and distilled spirits of the importing party; (c) notwithstanding Articles 301 and 309, Article I (Definitions), 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 modifications as may be necessary as between

Canada and Mexico; (d) all discriminatory mark-ups on distilled spirits shall be eliminated immediately upon the date of entry into force of this Agreement. Cost-of-service differential mark-ups as described in subparagraph (b) shall be permitted; (e) any other discriminatory pricing measure shall be eliminated upon the date of entry into force of this Agreement; (f) any measure related to distribution of wine or distilled spirits of the other Party shall conform with Article 301; and (g) unless otherwise specifically provided in this Annex, the Parties retain their rights and obligations under the GATT and agreements negotiated under the GATT. (The intention of paragraphs 3, 4, and 5 is to grant Mexico the same concessions granted to the U.S. under the Canada - United States Free Trade Agreement respecting wine and distilled spirits.) ======================================================================= ====== Section B - Mexican Measures 1. Articles 301 and 309 shall not apply to:

(a) controls by Mexico on the export of logs of all species; (b) 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; (c) measures taken in accordance with Annex 300-A (Trade in Automotive Goods) and measures taken in accordance with existing provisions of Articles 1, 4 and 5 of the Mexican Foreign Trade Act ("Ley Reglamentaria del Art?culo 131 de la Constituci?n Pol?tica de los Estados Unidos Mexicanos en Materia de Comercio Exterior") with respect to automotive goods referred to in Annex 300-A (Trade in Automotive Goods); (d) measures taken in accordance with Sections 3 (Import and Export Restrictions), 5 (Bilateral Emergency Actions-Quantitative Restrictions), 6 (Rules of

Origin), and 8 (Trade in Worn Clothing) of Annex 300-B (Textile and Apparel Goods) and measures taken in accordance with existing provisions of Articles 1, 4 and 5 of the Mexican Foreign Trade Act ("Ley Reglamentaria del Art?culo 131 de la Constituci?n Pol?tica de los Estados Unidos Mexicanos en Materia de Comercio Exterior") with respect to textile and apparel goods referred to in Annex 300-B; (e) measures taken in accordance with Articles 703 (Market Access) and Annex (permits for Dairy, Poultry and Eggs) of Chapter Seven (Agriculture) and measures taken in accordance with existing provisions of Articles 1, 4 and 5 of the Mexican Foreign Trade Act ("Ley Reglamentaria del Art?culo 131 de la Constituci?n Pol?tica de los Estados Unidos Mexicanos en Materia de Comercio Exterior") with respect to agricultural goods referred to in Chapter Seven; (f) measures covered by Chapter Six (Energy) and measures taken in accordance with existing provisions of Articles 1, 4 and 5 of the Mexican Foreign Trade Act ("Ley Reglamentaria del Art?culo 131 de la Constituci?n Pol?tica de los Estados Unidos Mexicanos en Materia de Comercio Exterior") with respect to energy and basic petrochemical goods referred to in Chapter 6; (g) export permit measures taken in accordance with existing provisions of Articles 1, 4 and 5 of the Mexican Foreign Trade Act ("Ley Reglamentaria del Art?culo 131 de la Constituci?n Pol?tica de los Estados Unidos Mexicanos en Materia de Comercio Exterior") with respect to goods subject to quantitative restrictions, tariff rate quotas or tariff preference levels adopted or maintained by another Party; and (h) with respect to existing provisions, the continuation or prompt renewal of a non-conforming provision of any of the above provisions or an amendment to a nonconforming provision of any of the above provisions to the extent that the amendment does not decrease its conformity with the provisions of Articles 301 and 309. 2. Notwithstanding Article 309, and without prejudice to other rights and obligations under this Agreement concerning import and export restrictions, for the first 10 years after the date of entry into force of this Agreement, Mexico may require permits for the importation of used goods provided for in the following existing items in the Tariff Schedule of the General Import Duty Act ("Tarifa de la Ley del Impuesto General de Importaci?n"). For purposes of reference, the goods covered by those items are broadly identified next to the corresponding item. Item Description

8407.3499 Gasoline engines of more than 1,000 cm3, except for motorcycles. 8413.11.01 Pumps fitted with a measuring device even if it includes a totalizing mechanism. 8413.40.01 Concrete pumps for liquids, not fitted with a measuring device from 36 up to 60 m3/hr capacity. 8426.12.01 Mobile lifting frames on tires and straddle carriers.

8426.19.01 Other (overhead travelling cranes, transporter cranes, gantry cranes, bridge cranes, mobile lifting frames and straddle carriers. 8426.30.01 Portal or pedestal jib cranes.

8426.41.01 Derricks, cranes and other lifting machinery on tires, self-propelled with mechanical working and carrying capacity less than 55 tons. 8426.41.02 Derricks, cranes and other lifting machinery on tires, self-propelled with hydraulic working and carrying capacity more than 9.9 up to 30 tons. 8426.41.99 Other (Machinery, self propelled, on tires.)

8426.49.01 Derricks, cranes and other lifting machinery (other than on tires), self-propelled with mechanical working and carrying capacity less than 55 tons. 8426.49.02 Derricks, cranes sand other lifting machinery (other than on tires), self-propelled with hydraulic working and carrying capacity more than 9.9 up to 30 tons. 8426.91.01 Derricks, cranes and other lifting machinery except items 8426.91.02, 03 and 04. 8426.91.02 Derricks, cranes and other lifting machinery for mounting on road vehicles, with hydraulical working and carrying capacity up to 9.9 tons. 8426.91.03 Derricks, cranes and other lifting machinery (basket type) for mounting on road vehicles, with carrying capacity up to 1 ton and 15 meters lift. 8426.91.99 Other (machinery designed for mounting on road vehicles).

8426.99.01 Derricks, cranes and other lifting machinery except items 8426.91.02 8426.99.02 Swivel cranes.

8426.99.99 Other (derricks; cranes, including cable cranes; mobile lifting frames, straddle carriers and works trucks fitted with a crane). 8427.10.01 Self-propelled work trucks powered by an electric motor, carrying capacity 3.5 tons. 8427.20.01 Other self-propelled trucks with combustion piston engines, carrying capacity up to 7 tons. 8428.40.99 Other (escalators and moving walkways).

8428.90.99 Other (continuous-action elevators and conveyors, for goods or materials). 8429.11.01 Self-propelled bulldozers and angledozers, for track laying. 8429.19.01 8429.20.01 8429.30.01 8429.40.01 rollers. Other (bulldozers and angledozers). Self-propelled graders and levelers. Self-propelled scrapers. Self-propelled tamping machines and road

8429.51.02 Self-propelled front-end shovel loaders, wheel-type, less than 335 HP. 8429.51.03 Self-propelled front-end shovel loaders, wheel-type, other than item 8429.51.01. 8429.51.99 Other (mechanical shovels, excavators and shovel loaders). 8429.52.02 Self-propelled backhoes, shovels, clamshells and draglines, other than 8429.52.01. 8429.52.99 Other (machinery with a 360 superstructure). 8429.59.01 Excavators. revolving

8429.59.02 Track laying draglines, carrying capacity up to 4 tons. 8429.59.03 Track laying draglines, other than item 8429.59.04.

8429.59.99 Other (self-propelled bulldozers, angledozers, graders, levellers, scrapers, mechanical shovels, excavators, shovel loaders, tamping machines and road rollers). 8430.31.01 Self-propelled tunneling machinery.

8430.31.99 Other (self-propelled coal or rock cutters and tunnelling machinery). 8430.39.01 Sinking or boring shields.

8430.39.99 Other (coal or rock cutters and tunnelling machinery). 8430.41.01 Self-propelled boring or sinking machinery, other than item 8430.41.02. 8430.41.99 Other (self-propelled boring or sinking machinery). 8430.49.99 Other (boring or sinking machinery).

8430.50.01 Self-propelled peat excavators, with frontal carriers and hydraulic mechanism less than 335 hp capacity. 8430.50.02 8430.50.99 8430.61.01 8430.61.02 8430.61.99 8430.62.01 8430.69.01 8430.69.02 Scrapers. Other (machinery self-propelled). Tamping machinery, not self-propelled. Compacting machinery, not self-propelled. Other (machinery, not self-propelled). Scarificationer machine. Threshers or scrapers machine. Trencher machine, other than 8430.69.03.

8430.69.99 Other (moving, grading, levelling, scraping, excavating, tamping, compacting, extracting or boring machinery). 8452.10.01 8452.21.04 and 05. 8452.21.99 8452.29.05 8452.29.06 Sewing machines of the household type. Industrial machines, other than 845221.02, 03 Other (automatic sewing machines). Pending Industrial machines, other than 84522901, 03

and 05. 8452.29.99 8452.90.99 8471.10.01 machines. Other (sewing machines). Other (parts of sewing machines). Analog or hybrid automatic data processing

8471.20.01 Digital automatic data processing machines, containing in the same housing at least a central processing unit and an input and output unit, whether or not combined. 8471.91.01 Numerical or digital units entered with the rest of a system, which may contain in the housing one or two of the following types of units: 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 system. Storage units, including the rest of the

8471.99.01 Other (automatic data processing machines and units thereof). 8474.20.02 Crushing jawbone and grinding millstone.

8474.20.05 Drawer cone crushing, with diameter no more than 1200 millimeters. 8474.20.06 Grinding hammer percussion.

8701.30.01 Track-laying tractors with a net engine power more than 105 h.p. but less than 380 h.p. including pushing blade. 8701.90.02 Rail road tractors, on tires with mechanical mechanism for pavement. 8474.20.01 Crushing and grinding with two or more cylinders. 8474.20.03 8474.20.04 8474.20.99 8474.39.99 8474.80.99 Blades crushing machines. Blades XXX Other (crushing or grinding machines). Other (mixing machines). Other (kneading machines).

8475.10.01 Machines for assembling electric or electronic lamps, tubes. 8477.10.01 Injection-molding machines for working rubber or plastics, up to 5 kg capacity for one molding model. 8711.10.01 Motorcycles, mopeds and cycles fitted with an auxiliary motor with reciprocating internal combustion piston engine not exceeding 50 cm.3. 8711.20.01 Motorcycles, mopeds and cycles fitted with an auxiliary motor with reciprocating internal combustion piston engine over 50 cm.3 but not over 250 cm.3. 8711.30.01 Motorcycles, mopeds and cycles fitted with an auxiliary motor with reciprocating internal combustion piston engine over 250 cm.3 but not over 500 cm.3. 8711.40.01 Motorcycles, mopeds and cycles fitted with an auxiliary motor with reciprocating internal combustion piston engine over 500 cm.3 but less than 550 cm.3. 8711.90.99 Other (motorcycles, mopeds and cycles fitted with an auxiliary motor without an internal combustion piston engine, and sidecars which are not to be used with motocycles and velocipedes of any kind). 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, not mechanically propelled. 8716.31.02 Tanker trailers and tanker semi-trailers for the transport of goods, not mechanically propelled, of the steel-tank type. 8716.31.99 Other (Tanker trailers and tanker semi-trailers for the transport of goods, not mechanically propelled, except of the steel-tank type, and of the thermal type for the transportation of milk). 8716.39.01 Trailers and semi-trailers for the transport of goods, not mechanically propelled, of the platform type (more detailed description pending).

8716.39.02 Trailers and semi-trailers for the transport of vehicles, not mechanically propelled. 8716.39.04 Trailers and semi-trailers for the transport of goods, not mechanically propelled, of the modular-platform type (more detailed description pending). 8716.39.05 Semi-trailers for the transport of goods, not mechanically propelled, of the low-bed type (more detailed description pending). 8716.39.06 Trailers and semi-trailers for the transport of goods, not mechanically propelled, of the closed-box type, including those for refrigeration. 8716.39.07 Trailers and semi-trailers for the transport of goods, not mechanically propelled, of the steel-tank type. 8716.39.99 Other. (Trailers and semi-trailers for the transport of goods, not mechanically propelled, except those referred to in items 87163901, 02, 04, 05, 06 and 07, those with two levels which are recognizable as intended for use exclusively in the transportation of cattle, and carriages with solid rubber wheels). 8716.40.01 Other trailers and semi-trailers, not mechanically propelled. (Other than for the transport of goods). 8716.80.99 Other. (Vehicles not mechanically propelled, except trailers and semi-trailers, hand-wagons, and hand-wagons of hydraulic operation. 3. Notwithstanding Article 309, and without prejudice to other rights and obligations under this Agreement concerning import and export restrictions: (a) for the first five years after the date of entry into force of this Agreement, Mexico may require permits for the importation of new automotive goods provided for in the following existing items in the Tariff Schedule of the General Import Duty Act ("Tarifa de la Ley del Impuesto General de Importaci?n"). For purposes of reference, the goods covered by those items are broadly identified next to the corresponding item; Item Description

8701.20.01 Road Tractors for semi-trailers 8702.10.01 Public-transport type passenger vehicles, with diesel or semi-diesel engine, with body mounted on a chassis. 8702.10.02 Public-transport type passenger vehicles, with diesel or semi-diesel engine, with an integral body. 8702.90.03 Public-transport type passenger vehicles, with gasoline engine, with an integral body. 8703.10.99 Other special vehicles. 8704.22.99 Motor vehicles for the transport of goods with diesel engine and capacity of cargo of more than 5 tons but less than 20 tons. 8704.23.99 Motor vehicles for the transport of goods with diesel engine and capacity of cargo of more than 20 tons. 8704.32.99 Motor vehicles for the transport of goods with gasoline engine and with capacity of cargo of more than 5 tons. 8705.20.01 Mobile drilling derricks. 8705.40.01 Concrete mixers. 8706.00.01 Chassis fitted with gasoline engine. 8706.00.99 Other chassis fitted with gasoline engine. (b) for the first 10 years after the date of entry into force of this Agreement, Mexico may require permits for the importation of new automotive goods provided for in the following existing items in the Tariff Schedule of the General Import Duty Act ("Tarifa de la Ley del Impuesto General de Importaci?n"). For purposes of reference, the goods covered by those items are broadly identified next to the corresponding item; Item Description 8407.34.99 Gasoline engines of more than 1,000 cm3, except for motorcycles. 8702.90.02 Public-transport type passenger vehicles, with gasoline engine, with body mounted on a chassis. 8703.21.01 Passenger motor vehicles with gasoline engine of less than or equal to 1,000 cm3.

8703.22.01 Passenger motor vehicles with gasoline engine of more than 1,000 cm3 but less than 1,500 cm3. 8703.23.01 Passenger motor vehicles with gasoline engine of more than 1,500 cm3 but less than or equal to 3,000 cm3. 8703.24.01 Passenger motor vehicles with gasoline engine of more than 3,000 cm3. 8703.31.01 Passenger motor vehicles with diesel engine of less than or equal to 1,500 cm3. 8703.32.01 Passenger motor vehicles with diesel engine of more than 1,500 cm3 but less than or equal to 2,500 cm3. 8703.33.01 Passenger motor vehicles with diesel engine of more than 2,500 cm3. 8703.90.99 Other passenger vehicles. 8704.21.99 Motor vehicles for the transport of goods with diesel engine and with capacity of cargo of less than or equal to 5 tons. 8704.31.99 Motor vehicles for the transport of goods with gasoline engine and with capacity of cargo of less than or equal to 5 tons. (c) for the first 25 years after the date of entry into force of this Agreement, Mexico may require permits for the importation of used automotive goods provided for in the following existing items in the Tariff Schedule of the General Import Duty Act ("Tarifa de la Ley del Impuesto General de Importaci?n"). As of the 26th year after the date of entry into force of this Agreement, Mexico may require permits for the importation of non-originating automotive goods provided for under such items. For purposes of reference, the goods covered by those items are broadly identified next to the corresponding item. Item Description 8701.20.01 Road Tractors for semi-trailers 8702.10.01 Public-transport type passenger vehicles, with diesel or semi-diesel engine, with body mounted on a chassis. 8702.10.02 Public-transport type passenger vehicles, with diesel or semi-diesel engine, with an integral

body. 8702.90.01 Trolleys. 8702.90.02 Public-transport type passenger vehicles, with gasoline engine, with body mounted on a chassis. 8702.90.03 Public-transport type passenger vehicles, with gasoline engine, with an integral body. 8703.10.01 Special vehicles with electric engine (snowmobiles, golf cart). 8703.10.99 Other special vehicles. 8703.21.01 Passenger motor vehicles with gasoline engine of less than or equal to 1,000 cm3. 8703.22.01 Passenger motor vehicles with gasoline engine of more than 1,000 cm3 but less than 1,500 cm3. 8703.23.01 Passenger motor vehicles with gasoline engine of more than 1,500 cm3 but less than or equal to 3,000 cm3. 8703.24.01 Passenger motor vehicles with gasoline engine of more than 3,000 cm3. 8703.31.01 Passenger motor vehicles with diesel engine of less than or equal to 1,500 cm3. 8703.32.01 Passenger motor vehicles with diesel engine of more than 1,500 cm3 but less than or equal to 2,500 cm3. 8703.33.01 Passenger motor vehicles with diesel engine of more than 2,500 cm3. 8703.90.01 Electrical motor cars. 8703.90.99 Other passenger vehicles. 8704.21.99 Motor vehicles for the transport of goods with diesel engine and with capacity of cargo of less than or equal to 5 tons. 8704.22.99 Motor vehicles for the transport of goods with diesel engine and capacity of cargo of more than 5 tons but less than 20 tons. 8704.23.99 Motor vehicles for the transport of goods with diesel engine and capacity of cargo of more than 20 tons. 8704.31.99 Motor vehicles for the transport of goods with gasoline engine and with capacity of cargo of less than or equal to 5 tons.

8704.32.99 Motor vehicles for the transport of goods with gasoline engine and with capacity of cargo of more than 5 tons. 8705.10.01 Mobile crane vehicles. 8705.20.01 Mobile drilling derricks. 8705.20.99 Other drilling derricks. 8705.40.01 Concrete mixers. 8705.90.01 Spraying vehicles. 8705.90.99 Other special purpose vehicles. 8706.00.01 Chassis fitted with gasoline engine. 8706.00.99 Other chassis fitted with gasoline engine. ======================================================================= ====== Section C - United States Measures Articles 301 and 309 shall not apply to: (a) controls by the United States on the export of logs of all species; (b) 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)); (c) measures under existing provisions of section 27 of the Merchant Marine Act (46 U.S.C. App. 883), the Passenger Vessel Act of 1920 (46 U.S.C. App. 289), the Merchant Ship Sales Act of 1946 (46 U.S.C. App. 292, 316, and 46 U.S.C. 12108); and (d) import restrictions with respect to Canada imposed under existing provisions of section 22 of the Agricultural Adjustment Act of 1933 (7 U.S.C. 624). ======================================================================= ====== 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 5 equal annual stages commencing 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 commencing 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 commencing 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 dutyfree treatment. (other staging categories will be displayed in the tariff schedules of each Party and may be incorporated here.) 2. The base rate of duty and staging category for determining the interim rate of 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 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 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 part of this Agreement, to an originating good provided that: (a) notwithstanding any provision in Chapter Four of this Agreement, 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 the rate applicable under the staging category set out for an item contained in column I of section A of this Annex to an originating good provided that: (a) notwithstanding any provision to the contrary 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 paragraph 5 applies, the applicable rate indicated for an item contained in column II, reduced in accordance with the staging category of column I of section A of this Annex except as otherwise indicated, or where there is a letter "X" (to be replaced with descriptive language) in column II, the applicable rate of duty for the item shall be the higher of: (a) the General Preferential Tariff rate of duty for that item applied on July 1, 1991, reduced in accordance with the applicable staging category set out for that item in column I of its Schedule; or (b) the applicable rate under the staging category for that item set out in Annex 401.2, as amended, of the Canada United States Free Trade Agreement. 7. Paragraphs 4, 5 and 6 shall not apply to goods provided for under Chapters 50 through 63 of the Harmonized System and to other goods identified in Appendix 1.1 of Annex 300-B (Textiles and Apparel Goods). 8. Mexico shall apply the rate applicable under the staging category set out for an item in column II of section B of this Annex to an originating good when the good qualifies to be marked as a good of Canada, pursuant to Annex 312, without regard to whether the good is marked. 9. Mexico shall apply the rate applicable under the staging category set out for an item in column I of section B of this Annex to an originating good when the good qualifies to be marked

as a good of the United States, pursuant to Annex 312, without regard to whether the good is marked. 10. The United States 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 Canada pursuant to Annex 312, without regard to whether the good is marked. 11. The United States shall apply the rate applicable under the staging category set out for an item in section C of this Annex to an originating good when the good qualifies to be marked as a good of Mexico pursuant to Annex 312, whether or not the good is marked. ======================================================================= ====== SECTION A - SCHEDULE OF CANADA (TARIFF SCHEDULE TO BE ATTACHED)

SECTION B - SCHEDULE OF MEXICO (TARIFF SCHEDULE TO BE ATTACHED)

SECTION C - 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. tariff items 5811.00.20 (quilted cotton piece goods), 5811.00.30 (quilted man-made piece goods) or 6307.90.99 (furniture moving pads) that are subject to the most-favored-nation rate of duty when exported to the territory of the other Party; (Canadian tariff items to be added) 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; (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; or (d) substituted by an identical or similar 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 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; (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; or (d) substituted by an identical or similar good that is subsequently exported to the territory of another Party on or after January 1, 2001. Section C - United States For the United States, Article 303 shall apply to a good imported into the territory of the United States that is: (a) subsequently exported to the territory of Canada on or after January 1, 1996, or subsequently exported to the territory of Mexico on or after January 1, 2001; (b) used as a material in that is subsequently exported Canada on or after January 1, material in the production of subsequently exported to the after January 1, 2001; the production of another good to the territory of 1996, or used as a another good that is territory of Mexico on 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; or (d) substituted by an identical or similar good that is subsequently exported to the territory of Canada on or after January 1, 1996, or substituted by an identical or similar good that is subsequently exported to the territory of Mexico on or after January 1, 2001. ======================================================================= ====== ANNEX 303.8 Exception to Article 303(8) For Certain Cathode-Ray Picture Tubes

Mexico Mexico may refund customs duties paid, or waive or reduce the amount of customs duties owed, on goods provided for in subheading 8540.xx 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 goods that would not have been considered to be originating goods had this Agreement been in force during that period, where the goods are: (a) subsequently exported from the territory of Mexico to the territory of the United States, or are used as materials in the production of other goods that are subsequently exported from the territory of Mexico to the territory of the United States, or are substituted by identical or similar goods used as materials in the production of other goods that are 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 goods on which such customs duties may be refunded, waived or reduced in any year shall be reduced, with respect to that year, by the number of such goods qualifying as originating goods 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 used as materials in the production of other goods that are subsequently exported from the territory of Mexico to the territory of Canada, or are substituted by identical or similar goods used as materials in the production of other goods that are subsequently exported to the territory of Canada, 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: (a) Mexico shall not increase the ratio of customs duties waived to customs duties owed relative to the performance required under any such waiver; or (b) Mexico shall not add any type of 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 Waiver Measures For purposes of Article 304(2): (a) Canada may condition on the fulfillment of a performance requirement the waiver of customs duties under any measure in effect on or before September 28, 1988, on any goods entered or withdrawn from warehouse for consumption before January 1, 1998; (b) 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; (c) as between the United States and Canada, Article 405 of the Canada - United States Free Trade Agreement is incorporated and made 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; and (d) Canada may grant duty waivers as set out in Annex 300A. ======================================================================= ====== 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 duty for such goods applicable under its Schedule attached 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 duty for such goods applicable under the Tariff Schedule of Canada attached to Annex 401.2 of the Canada - United States Free Trade Agreement. (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 duty for such goods applicable under its Schedule attached to Annex 401.2 of the Canada - United States Free Trade 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 duty for such goods that would apply if such goods were included in staging category B in the Schedule of Mexico attached 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 duty applicable under the Canada-U.S. Free Trade 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 duty of 50 percent reduced in five equal annual stages commencing 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 [description under review] 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: 1. Cruise ships, excursion boats, ferry-boats, cargo ships, barges and similar vessels for the transport of persons or goods, including: (a) tankers; (b) refrigerated vessels, other than tankers; and (c) other vessels for the transport of goods and other vessels for the transport of both persons and goods, including open vessels. 2. Fishing vessels, including factory ships and other vessels for processing or preserving fishery products of a registered length not exceeding 30.5m. 3. 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, including drilling ships, drilling barges and floating drilling rigs. ======================================================================= ====== 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, no later than the date of entry into force of this Agreement: (d) provide written clarification 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, where possible, clarifications on "jumboizing", vessel conversions, and emergency repairs, and (e) commence a process to define the terms "repairs", "emergency repairs", and "rebuilding" under U.S. maritime legislation, including the Merchant Marine Act of 1920 (codified at 46 U.S.C. App. 883) and the Merchant Marine Act of 1936 (codified at 46 U.S.C. App. 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 the goods provided for under the tariff provisions set out in Tables 308.1.1 and 308.1.2 in section B of this Annex to the rate set out therein, or to such reduced rate as the Parties may agree, in accordance with the Schedule set out in section B of this Annex, or with such accelerated schedule as the Parties may agree. 2. Notwithstanding Chapter 3, 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 of this Annex has been reduced in accordance with 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 of this Annex, or of such accelerated schedule as the Parties may agree, its mostfavored-nation rate of duty applicable to any good provided for under the tariff provisions set out therein, to the rate set out therein or to such reduced rate as the Parties may agree. ======================================================================= ====== Section B - Rates of Duty and Schedule for Reduction

Table 308.1.1 Tariff Rate Schedule Automatic Data Processing Machines (ADP): 8471.10 8471.20 Digital Processing Units: 8471.91 Input or Output Units: Combined Input/Output Units: Canada: 8471.92.90.11 8471.92.90.12 8471.92.90.19 Mexico: 8471.92.h1 3.7% S 3.7% 3.7% 3.7% S S S 3.9% S 3.9% 3.9% S S

United States: 8471.92.10 Display Units: Canada: 8471.92.90.32 8471.92.90.39.a1 3.7% S 3.7% S 8471.92.90.39.a2 3.7% S

Free Mexico:

3.7%

S Free S

8471.92.h2

8471.92.h3 United States: 8471.92.30 8471.92.40.75

Free 3.7%

S S

======================================================================= ====== Other Input or Output Units: Canada: 8471.92.10.20 8471.92.10.90 8471.92.90.20 8471.92.90.40 8471.92.90.50 8471.92.90.91 8471.92.90.99 Mexico: 8471.92.h4 3.7% S 8471.92.h5 Free S Free Free Free Free 3.7% Free Free S S S S S S S

United States: 8471.92.20 8471.92.80 8471.92.90.20 8471.92.90.40 8471.92.90.60 8471.92.90.80 Free S Free S Free S 3.7% S Free S Free S

======================================================================= ====== Storage Units 8471.93 Other Units of Automatic Data Processing Machines 8471.99 Parts of Computers 8473.30 Computer Power Supplies 8504.40.a3 8504.90.a4 Table 308.1.2 Free Free S S Free R Free S Free S

Metal Oxide Varistors: 8533.40.a4 Free R

Diodes, Transistors and Similar Semiconductor Devices; Photosensitive Semiconductor Devices; Light Emitting Diodes; Mounted Piezo-electric Crystals 8541.10 8541.21 8541.29 8541.30 8541.50 8541.60 8541.90 Canada: 8541.20 Mexico: 8541.20 United States: 8541.40.20 8541.40.60 8541.40.70 8541.40.80 8541.40.95 Electronic Integrated Circuits and Microassemblies 8542 Free R Free Free Free Free Free S R R R R Free R Free R Free Free Free Free Free Free Free R R R R R R

======================================================================= ====== ANNEX 308.2 Most-Favored-Nation Rates of Duty on Certain Color Television Picture Tubes 1. Any Party considering the reduction of its most-favorednation rate of customs duty for goods provided for in tariff provision 8540.11.a2 (cathode-ray color television picture tubes, including video monitor cathode-ray tubes, 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, 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 provision set out in its Schedule attached 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 Section A - Canada Canada shall accord most-favored-nation duty-free treatment to goods provided for in item(s) [to be provided] of its tariff schedule. Section B - Mexico Mexico shall accord most-favored-nation duty-free treatment to goods provided for in item(s) [to be provided] of its tariff schedule. Section C - United States The United States shall accord most-favored-nation duty-free treatment to goods provided for in item(s) [to be provided] of its tariff schedule. For purposes of this Annex: 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, errorchecking, control, signal conversion or correction functions for non-voice data to move through a local area network. ======================================================================= ====== ANNEX 311.2 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 by June 30, 1999, eliminate such fee on originating goods. Mexico 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 312, without regard to whether the goods are marked. 2. The United States shall not increase its merchandise processing fee and shall by June 30, 1999, eliminate such fee, on originating goods where those goods qualify to be marked as goods of Mexico pursuant to Annex 312, without regard to whether the goods are marked. ======================================================================= ====== ANNEX 312 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 the purposes of this Annex, Annex 300-B and Annex 302.2, and for such other purposes as may be agreed. 2. Each Party may require that a good of another Party, as determined in accordance with the Marking Rules, imported into its territory bear a country of origin marking 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 administering any measure relating to country of origin marking, minimize the difficulties, costs and inconveniences that such measure may cause to the commerce and industry of the other Parties. 5. Each Party shall:

(a) accept any reasonable method of marking, 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 which (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 an expense which would materially discourage its exportation to the territory of another Party, (iv) cannot be marked without materially impairing its function or substantially detracting from its appearance, (v) is in a container that is marked in a manner that will reasonably indicate the good's origin 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 be processed in the importing Party by the importer, or on its behalf, in a manner that results in a change of origin for marking purposes, 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 an expense that would materially discourage its importation, provided that the failure to mark the good before importation was not for the purpose of avoiding compliance with such requirement, (xii) for the 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 headings 8541 or 8542, and 6904.10. 6. Except for a good described in subparagraphs 5(b)(vi),(vii), (viii), (ix), (x), (xii), (xiii) and (xiv), a Party may provide that, wherever a good is exempted under subparagraph 5(b), its outermost container that ordinarily reaches the ultimate purchaser 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, whenever administratively practicable, permit an importer to mark a good 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 that 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, unless a 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 Chapter Five (Customs Procedures). 11. For purposes of this Annex:

conspicuous means capable of being easily seen with normal handling of the good or container; legible means capable of being easily read;

materially discourage means add a cost to the good that is substantial in relation to its customs value; 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 the Party into which the good is imported 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 314 Distinctive Products 1. Mexico and Canada 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, Mexico and Canada 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. The United States and Mexico shall recognize Canadian Whiskey as a distinctive product of Canada. Accordingly, the United States and Mexico shall not permit the sale of any product as Canadian Whiskey, unless it has been manufactured in Canada in accordance with the laws and regulations of Canada governing the manufacture of Canadian Whiskey for consumption in Canada. 3. The United States and Canada shall recognize Tequila and Mezcal as distinctive products of Mexico. Accordingly, the United States and Canada 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 315

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. ======================================================================= ====== 4. For purposes of paragraph 1, "basic foodstuffs" means: Beans Beef steak or pulp Beef liver Beef remnants and bones ("retazo con hueso") Beer Bread

Brown sugar Canned sardines Canned tuna Canned peppers Chicken broth Condensed milk Cooked ham Corn tortillas Corn flour Corn dough Crackers Eggs Evaporated milk French rolls ("pan blanco") Gelatine Ground beef Instant coffee Low-priced cookies ("galletas dulces populares) Margarine Oat flakes Pasteurized milk Powdered chocolate Powdered milk for children Powdered milk Rice Roasted coffee Salt Soft drinks Soup paste Tomato puree Vegetable oil Vegetable fat Wheat flour White sugar ======================================================================= ====== ANNEX 316 Other Export Measures Article 316 shall not apply as between Mexico and the other Parties.

ANNEX 300-A Trade and Investment in the Automotive Industry Sector

1. Except as provided in this Annex, each Party shall apply this Agreement to automotive goods of another Party and to enterprises of the automotive industry sector in its territory. 2. Except as provided in this Annex, each Party shall promptly accord to existing producers of vehicles in its territory treatment no less favorable than that it accords, in like circumstances, to a new producer of vehicles in its territory regarding measures covered by this Annex. 3. The Parties shall review, no later than December 31, 2003, the status of the North American automotive industry sector and the effectiveness of the measures contained in this Annex to determine actions that could be taken to strengthen the integration and global competitiveness of the industry. ======================================================================= ====== Appendix A: 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 which entered into force on September 16, 1966, in accordance with Article 1001, 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 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 Annex 1002.1, Parts Two (Export-Based Waivers of Customs Duties) and Three (Production-Based Waivers of Customs Duties) of the Canada United States Free Trade Agreement. Canada shall eliminate those measures in accordance with the terms set out in that agreement. Used Vehicles 3. Canada may adopt or maintain prohibitions and restrictions on imports of used vehicles from the territory of Mexico, except as follows:

(a) after January 1, 2009, Canada may not adopt or maintain prohibitions or restrictions on imports from the territory of Mexico of originating used vehicles that are at least 10 years old; (b) after January 1, 2011, Canada may not adopt or maintain prohibitions or restrictions on imports from the territory of Mexico of originating used vehicles that are at least eight years old; (c) after January 1, 2013, Canada may not adopt or maintain prohibitions or restrictions on imports from the territory of Mexico of originating used vehicles that are at least six years old; (d) after January 1, 2015, Canada may not adopt or maintain prohibitions or restrictions on imports from the territory of Mexico of originating used vehicles that are at least four years old; (e) after January 1, 2017, Canada may not adopt or maintain prohibitions or restrictions on imports from the territory of Mexico of originating used vehicles that are at least two years old; and (f) after January 1, 2019, Canada may not adopt or maintain prohibitions or restrictions on imports from the territory of Mexico of originating used vehicles regardless of age. ======================================================================= ====== Appendix B: Mexico

Auto Decree and Auto Decree Implementing Regulations 1. Subject to this Appendix, Mexico may maintain, until January 1, 2004, 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"). Mexico may adopt or maintain any measure respecting automotive goods or manufacturers of automotive goods in its territory provided that such measure is not inconsistent with 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.

2a. For purposes of paragraph 2, "national value added" means the total value of sales of such enterprises (excluding those for the aftermarket) minus the value of its total imports, direct and indirect, excluding those imports incorporated in aftermarket parts and components, as modified by paragraph 3. 3. Mexico may require that a national supplier or an enterprise of the autoparts industry, in calculating its national value added solely for the purposes of paragraph 2, include customs duties in the value of imports incorporated into the parts and components produced by such enterprises. 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. 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"). 4a. For purposes of paragraph 4, "independent maquiladora" means an enterprise registered as an export maquiladora enterprise under the Maquiladora Decree which has no common majority shareholder with any manufacturer, and for which no manufacturer is directly or indirectly a majority shareholder. National Value Added 5. Mexico may provide that a manufacturer ("empresa de la industria terminal") calculate its required national value added from suppliers (VANp) as a percentage of: (a) a manufacturer's reference value as defined in paragraph 8; or (b) a manufacturer's total national value added (VANt), whichever is greater. 6. Mexico shall 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 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 such 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 1992, purchases that such 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 parts and components from any other national supplier or enterprise of the autoparts industry. 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 such manufacturer for that year shall be equal to the manufacturer's total value of sales in Mexico for the year. 9a. For purposes of paragraphs 8 and 9:

(a) "base value" means the average annual value of the manufacturer's production in Mexico for sale in Mexico (VTVd) in model years 1991 and 1992, adjusted for inflation, using the Mexican producer price index for automotive goods published by the Bank of Mexico ("Banco de Mexico"); and (b) "manufacturer's total sales in Mexico in that year" means the invoice value of sales by a manufacturer of vehicles it produced in Mexico for sale in Mexico plus the invoice value of its sales of imported vehicles. 10. In the event an abnormal production disruption affects a manufacturer's production capability, Mexico shall allow such

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 such event. 10a. For purposes of paragraph 10, "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. 11. If, upon the request of a manufacturer, the Intersecretariat Automotive Industry Commission finds that the production capability of such 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 reference value for the manufacturer for that year in an amount commensurate with the disruption, provided that such reduction in that manufacturer's required national value added from suppliers (VANp) that may result from the Commission's determination to lower the manufacturer's reference value shall be fully made up by the manufacturer over the following two model years. 11a. For purposes of paragraph 11, "significant disruption" means a sizable impairment in the manufacturer's production capability that lasts at least six months but no longer than 12 months. Trade Balance 12. Mexico shall 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 parts and components that such manufacturer incorporated into vehicles it has produced 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. For purposes of determining a manufacturer's total national value added (VANt), paragraph 12 shall not apply to the calculation of its trade balance (S). 14. Mexico shall permit 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 value of new vehicles that it may import. 15. Mexico shall provide that in the calculation of a manufacturer's adjustment factor (Y) in its extended trade balance: (a) a manufacturer's total national value added (VANt) be replaced by that manufacturer's reference value in any year in which the manufacturer's total national value added (VANt) is lower than its reference value; and (b) the applicable percentage under paragraphs 6 or 7, as appropriate, be used. 16. In determining the annual amount that a manufacturer may apply to its extended trade balance from surpluses earned prior to model year 1991, Mexico shall in any given year allow such manufacturer to elect: (a) to use the procedures of the existing Auto Decree Implementing Regulation; or (b) to apply up to $US 150 million, adjusted for inflation in accordance with the U.S. GDP Price Deflator or its equivalent in Mexican pesos, until such surpluses have been exhausted. Other Restrictions in the Auto Decree 17. Mexico shall eliminate the restriction set out in the existing Auto Decree that limits the number of vehicles that a manufacturer may import into Mexico in relation to the total number of vehicles that such manufacturer sells in Mexico. Autotransportation Decree and Autotransportation Implementing Regulations 18. Mexico shall eliminate the Mexican Decree for Development and Modernization of the Autotransportation Vehicle Manufacturing Industry (December 1989) ("Decreto para el Fomento y Modernizaci?n de la Industria Manufacturera de Vehiculos de Autotransporte") (the "Autotransportation Decree") and the Resolution that Establishes Rules for the Implementation of the Autotransportation Decree (November 1990) ("Acuerdo que Establece Reglas de Aplicacion del Decreto para el Fomento y Modernizaci?n de la Industria Manufacturera de Veh?culos de Autotransporte") (the "Autotransportation Decree Implementing Regulations").

Mexico may adopt or maintain any measure respecting autotransportation vehicles or manufacturers of autotransportation vehicles in its territory provided that such measure is not inconsistent with this Agreement. Importation of Autotransportation Vehicles 19. Except as provided in paragraphs 20 and 21, Mexico may adopt or maintain a prohibition or restriction on the importation of autotransportation vehicles of another Party until January 1, 1999. 20. 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 such manufacturer produced in Mexico in that year. 20a. For purposes of paragraph 20, "manufacturer of autotransportation vehicles" means an enterprise, established in Mexico, that produces autotransportation vehicles, is registered with the Ministry of Trade and Industrial Development ("Secretar?a de Comercia y Fomento Industrial"), and whose sales in Mexico incorporate at least 40 percent national value added, where national value added is the result of subtracting from the total sales (excluding imports of autotransportation vehicles) of an autotransportation manufacturer the invoice value of its direct and indirect imports of parts and components. 21. 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 them, 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 22. Mexico may adopt or maintain prohibitions and restrictions on imports of used vehicles from the territory of another Party, except as follows: (a) after January 1, 2009, Mexico may not adopt or maintain

prohibitions or restrictions on imports from the territories of Canada or United States of originating used vehicles that are at least ten years old; (b) after January 1, 2011, Mexico may not adopt or maintain prohibitions or restrictions on imports from the territories of Canada or United States of originating used vehicles that are at least eight years old; (c) after January 1, 2013, Mexico may not adopt or maintain prohibitions or restrictions on imports from the territories of Canada or United States of originating used vehicles that are at least six years old; (d) after January 1, 2015, Mexico may not adopt or maintain prohibitions or restrictions on imports from the territories of Canada or United States of originating used vehicles that are at least four years old; (e) after January 1, 2017, Mexico may not adopt or maintain prohibitions or restrictions on imports from the territories of Canada or United States of originating used vehicles that are at least two years old; and (f) after January 1, 2019, Mexico may not adopt or maintain prohibitions or restrictions on imports from the territories of Canada or United States of originating used vehicles, regardless of age. ======================================================================= ====== Appendix B: Definitions Note: (The following terms shall be defined as provided in the Auto Decree and Auto Decree Implementing Regulations, incorporating those specific modifications required by this Appendix. For purposes of transparency, set out below for each term are the corresponding Spanish term, citations to the relevant provisions of the Auto Decree and Auto Decree Implementing Regulations and, where appropriate, the paragraph of this Appendix that modifies the definition in the Auto Decree or Auto Decree Implementing Regulations. English translations of these definitions, amplified for clarity where appropriate, and incorporating modifications required by this Appendix, will be set out here at a later date.) adjustment factor (Y) means "factor de ajuste Y" as defined in rule 18 of the Auto Decree Implementing Regulations and as modified by paragraph 15 of this Appendix; enterprise of the autoparts industry means "empresa de la industria de autopartes" as set out in Article 2, paragraph V of the Auto Decree, as modified by paragraph 2 of this Appendix;

extended trade balance means "balanza comercial ampliada" referred to in rule 28 of the Auto Decree implementing Regulations, and is equal to the numerator (S+W+.3I+Sft+T-Y) of formula (1) in rule 8, of the Auto Decree Implementing Regulations; manufacturer means an "empresa de la industria terminal" as defined in Article 2, paragraph IV of the Auto Decree that produces any of the following classes of vehicles: (a) passenger car: a vehicle for the transportation of up to 10 people or a compact car of popular use, provided for in subheadings (to be specified) of the Harmonized System; (b) commercial truck: a vehicle with or without a chassis, for the transportation of cargo or over 10 people, with a GVW of up to 2,727 kgs., provided for in heading (to be specified) of the Harmonized System; (c) light duty truck: a vehicle with a chassis, for the transportation of cargo or over 10 people, with a GVW of over 2,727 but less than 7,272 kgs., provided for in headings (to be specified); or (d) medium duty truck: a vehicle with a chassis for the transportation of cargo or over ten people, with a GVW of over 7,272 kgs. but less than 8,864 kgs., provided for in headings (to be specified) of the Harmonized System; manufacturer's production in Mexico for sale in Mexico (VTVd) means "valor total de las ventas que realicen las empresas de la industria terminal al mercado domestico, excluyendo vehiculos importados" as set out in rule 18 of the Auto Decree Implementing Regulations; manufacturer's total national value added (VANt) means "valor agregado nacional de la empresa de la industria terminal" as defined in rule 18 of the Auto Decree Implementing Regulations; national supplier means a "proveedor nacional" as defined by article 2 paragraph VII of the Auto Decree, as modified by paragraph 2 of this Appendix; national value added from suppliers (VANp) means "valor agregado nacional de proveedores", as provided in rule 18 of the Auto Decree Implementing Regulations; parts and components means "partes y componentes automotrices" as defined in article 2, paragraph X of the Auto Decree; trade balance (S) means "saldo en balanza comercial de la empresa de la industria terminal", as defined in rule 9 of the Auto Decree Implementing Regulation, as modified by paragraphs 12 and 13 of this Appendix;

autotransportation vehicles means a vehicle included in any of the following types: (a) heavy duty truck: a vehicle with a chassis for the transport of goods or more than ten people with a GVW over 8,864 kgs., provided for in headings (to be specified) of the Harmonized System; (b) truck tractor: a vehicle with 2 or 3 axles for transporting goods by hauling trailers, semi-trailers or containing integrated equipment, provided for in subheading (to be specified) of the Harmonized System; (c) integral bus: a vehicle without a chassis but with an integral body used to transport more than 10 people, provided for in heading (to be specified) of the Harmonized System; and (d) specialty vehicles: special purpose motor vehicles or vehicles modified for the handicapped provided for in heading (to be specified) of the Harmonized System, (as provided for in Article 2 of the Autotransportation Decree). ======================================================================= ====== Appendix C: United States Corporate Average Fuel Economy 1. As provided in paragraph 2, for purposes of the Energy Policy and Conservation Act (October 1975), as amended ("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 such 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 such model year. 2. The United States shall implement the obligation set out in paragraph 1 for all automobiles of a manufacturer sold in the United States, wherever produced and irrespective of car line or truck line, beginning with the next model year after January 1, 2004, except as provided in the following schedule: (a) with respect to a manufacturer that initiated the manufacture of automobiles in Mexico before model year 1992, the enterprise that provides certification 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 such election; (b) with respect to a manufacturer initiating the

manufacture 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 such manufacturer initiates manufacturing automobiles in Mexico, whichever is later; (c) with respect to any other manufacturer of automobiles in the territory of a Party, the enterprise that provides certification 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 such election. If such a manufacturer initiates manufacturing automobiles in Mexico, it shall be subject to subparagraph (b) on the date it initiates such manufacturing; and (d) with respect to all manufacturers of automobiles not manufacturing automobiles in the territory of a Party, paragraph 1 shall apply beginning with the next model year after January 1, 1994. 3. The United States shall make any future changes pertaining to the definition of domestic production in the CAFE Act or its implementing regulations equally applicable to value added in any of the Parties. 4. Nothing in this Appendix shall require the United States to make any changes in its fuel economy requirements for automobiles. 5. For purposes of this Appendix, "automobile" means a motor vehicle that complies with the definition in the CAFE Act and its implementing regulations. ======================================================================= ====== Appendix D: General Definitions

existing producer of vehicles means a producer that was producing in the territory of the relevant Party prior to model year 1992; and automotive goods means all types of motor vehicles, and parts and components intended for use in motor vehicles. Note: (Additional terms may be added where appropriate)

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 the date of entry into force of this Agreement, 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 goods as provided in its Schedule set out in Annex 302.2, in accordance with Appendix 2.1. 2. (a) For purposes of this Annex, a good shall be considered to be an originating good if the applicable change in tariff classification has been satisfied in the territory of one or more of the Parties, as provided by Article 404. (b) For purposes of determining which rate of duty and staging category is applicable to an originating textile or apparel good, a good shall be a good of the Party in which the last substantial transformation occurred, according to each importing Party's regulations, practices or procedures or, in the event of an agreement between the Parties pursuant to Annex 312(1), setting out rules applicable to textile and apparel goods for determining whether a good is a good of a Party ("Marking Rules"), according to such agreement. 3. Each Party shall provide duty-free treatment for the following textile and apparel goods of another Party, provided such goods have been certified by the competent authority of the exporting Party as one of the following:

(a) hand-loomed fabrics of a cottage industry; (b) hand-made cottage industry goods made of such handloomed fabrics; or (c) traditional folklore handicraft goods that have been identified and agreed by the Parties concerned for duty-free treatment. Section 3: Levels Import and Export Restrictions and Consultation

1. Appendix 3.1 sets out certain circumstances and conditions under which prohibitions, restrictions, or consultation levels in effect upon the date of entry into force of this Agreement may be maintained, notwithstanding Article 309. 2. Each Party shall eliminate a restriction or consultation level on a textile or apparel good that otherwise would be permitted under this Annex if the elimination of that restriction is required as a result of integration of that good into the GATT pursuant to commitments undertaken by that Party under any successor agreement to the Multifiber Arrangement. Section 4: Bilateral Emergency Actions (Tariff Actions)

1. During the transition period only, if, as a result of the reduction or elimination of a duty provided for in this Agreement, an originating textile or apparel good, or a good that has been integrated into the GATT pursuant to a commitment undertaken by a Party under any successor agreement to the Multifiber Arrangement and entered under a tariff preference level set out in Appendix 6.0, 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 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 such good; or (b) increase the rate of duty on such 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, or (ii) the MFN applied rate of duty in effect on the day immediately preceding the date of entry into force of this Agreement. 2. In determining serious damage, or actual threat thereof, the

Party shall: (a) examine the effect of increased imports on the particular industry, as reflected in the following factors, none of which is necessarily decisive: changes in such relevant economic variables as output, productivity, utilization of capacity, inventories, market share, exports, wages, employment, domestic prices, profits and investment; and (b) not consider changes in technology or consumer preference as factors supporting a determination of serious damage or actual threat thereof. 3. The following conditions and limitations shall apply to any emergency action taken pursuant to this Section: (a) a Party shall deliver without delay to any Party that may be affected written notice of intent to take such action, and shall enter into consultations with that Party upon request; (b) no action may be maintained for three years or, except with the consent against whose good the action is taken, beyond the expiration of the transition a period exceeding of the Party have effect period;

(c) no action may be taken by a Party against any particular originating good more than once during the transition period; and (d) upon the termination of the action, the rate of duty shall be the rate that, according to the Schedule for that staged elimination of the tariff, would have been in effect a year after the commencement of the action, and commencing 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 schedule in that Party's Schedule in Annex 302.2, or (ii) the tariff shall be eliminated in equal annual stages ending on the date set forth in that Party's Schedule in Annex 302.2 for the elimination of the tariff. 4. A 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 on the other Party, 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 listed in Appendix 1.1, unless the Parties otherwise agree. If the concerned Parties 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 pursuant to this Section. The Party taking such tariff action shall only apply it for the minimum period necessary to achieve such substantially equivalent effects. Section 5: Bilateral Emergency Actions (Quantitative Restrictions) 1. Notwithstanding any other provision of this Agreement except Appendix 5.2, a Party may take bilateral emergency action against non-originating goods of another Party in accordance with this Section and the provisions of Appendix 3.1. 2. If a Party considers that non-originating textile and apparel goods, including goods entered under the tariff preference levels (TPLs) set out in Appendix 6.0, are being imported into its territory from a Party in such increased quantities, in absolute terms or relative to the domestic market, so as to cause serious damage or actual threat thereof, to a domestic industry producing a like or directly competitive good in the importing Party, that Party may request consultations with another 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 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 the provisions of paragraph 2, Section 4. 5. The concerned Parties shall commence consultations within 60 days following 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 the previous levels of trade; and (c) ensure that textile and apparel goods imported from the territory of another Party are accorded equitable treatment as compared with treatment granted to other non-Party suppliers of like textile and apparel goods. 6. If the Parties do not agree on a mutually satisfactory level during the 90-day consultation period, the Party requesting

consultations may impose annual quantitative restrictions on imports of the good from the territory of the other Party for a period no longer than that provided for in paragraph 9, provided that: (a) the measure shall not have effect beyond the transition period; and (b) the quantitative restriction shall not be less than the sum of (i) the quantity of the good imported into its territory from the Party that would be affected by the restriction, as reported in general import statistics, during the first 12 of the most recent 14 months preceding the month in which the request for consultations was made, and (ii) an additional 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. 7. The first term of any quantitative restriction imposed under paragraph 6 shall commence on the day following the request for consultations and terminate at the end of the calendar year in which the quantitative restriction was imposed. Any quantitative restriction that is imposed for a term less than 12 months and the applicable flexibility provisions shall be prorated to correspond to the period of time remaining in the calendar year in which the restriction is imposed. 8. For each successive calendar year that the quantitative restriction imposed under paragraph 6 remains in effect, the Party imposing it shall: (a) increase by 6 percent restrictions on cotton, man-made fiber and non-cotton vegetable fiber textile and apparel goods and by 2 percent restrictions on wool textile and apparel goods; (b) accelerate the growth rate for quantitative restrictions on cotton, man-made fiber and non-cotton vegetable fiber textile and apparel goods if required by any successor agreement to the Multifiber Arrangement; and (c) apply the flexibility provisions set forth in Appendix 3.1, as appropriate. 9. Quantitative restrictions established pursuant to paragraph 6 before July 1 in any given calendar year may remain in place for the initial prorated period in the first calendar year, plus two additional calendar years. Such restrictions established on or after July 1 in any given calendar year may remain in place for the initial prorated period plus three additional calendar years.

10. No Party may take an emergency action under this Section with respect to any textile or apparel non-originating good that is already subject to a quantitative restriction. 11. No party may adopt or maintain a quantitative restriction under this Section on a textile or apparel good if that good has been integrated into the GATT as a result of commitments undertaken by that Party pursuant to any successor agreement to the Multifiber Arrangement. 12. A Party may take a bilateral emergency action after the expiration of the transition period to deal with cases of serious damage to domestic industry arising from the operation of this Agreement only with the consent of the Party against whose good the action would be taken. Section 6: Special Provisions

A Party shall treat the textile or apparel goods of another Party set out in Appendix 6.0 in accordance with the provisions therein. 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 contained in Annex 401.1 applicable to goods of subheading 6212.10. No earlier than 15 months after the date of entry into force of this Agreement, any Party may request consultations to seek a mutually satisfactory solution to any difficulties that it considers results from the application of that rule of origin. (b) If the Parties fail to reach a mutually satisfactory solution through consultations within 90 days of a request for consultations, any Party may request that the rule applicable to subheading 6212.10 be changed to the rule applicable to headings 62.06 through 62.11 of the Harmonized System (HS) with respect to trade with the requesting Party. Any such change shall be effective no earlier than 180 days following the request therefor. The Parties shall take measures to ease any resulting administrative burden on producers. (c) Unless otherwise agreed, at any time after the initial consultations, and within the transition period of this Agreement, any Party may make one request for additional consultations under the same procedures provided in paragraphs (a) and (b). 2. (a) At the request of any Party, the Parties shall consult to consider whether specific goods should be made subject to different rules of origin in order to address issues of availability of supply of fibers,

yarns or fabrics within the free trade area. (b) In the consultations, each Party shall consider all data presented by a Party showing substantial production in its territory for a good submitted for review. A legitimate claim of substantial production of the good in the territory of a Party shall be deemed to exist if that Party can show that its domestic producers are capable of supplying commercial quantities of the good in a timely manner. (c) The Parties shall make every effort to conclude consultations within sixty days. Any agreement between two or more Parties resulting from these consultations shall be considered part of this Agreement. If agreement is not reached, the Parties have recourse to the provisions of paragraph 8(a) of Appendix 6.6. (d) In this context, at the request of any Party, the Parties shall consult to consider whether the rules of origin applicable to the following provisions in Annex 401.1 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, United States tariff item 5407.60.22 and Mexican tariff item 5407.60.02, (ii) provisions (i) through (viii) of the rule for subheadings 6205.20 through 6205.30, (iii) note 2 to Chapter 61, (iv) note 2 to Chapter 62, and (v) Canadian tariff item 6303.92.a1, United States tariff item 6303.92.h1 and Mexican tariff item 6303.92.x1. 3. The Parties shall review the rules of origin applicable to textile and apparel goods within five years after 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 related to textile and apparel production and trade between the Parties and worldwide. Section 8: Labelling Requirements

To facilitate trade in textile and apparel goods between the Parties through the harmonization of domestic labelling requirements and the elimination of unnecessary obstacles to

trade resulting from differences in such requirements, the Subcommittee on Labelling of Textile and Apparel Goods established under Article 913(5) shall perform the functions set out in Annex 913-D. Section 9: Trade in Worn Clothing and Other Worn Articles

1. The Parties hereby establish a Committee on Trade in Worn Clothing comprising representatives of each Party. The purpose of the Committee shall be to assess the potential effects that may result from the elimination of restrictions, maintained by a Party prior to the date of entry into force of this Agreement, on trade in worn clothing and other worn articles as defined in the heading 63.09 of the HS. This Committee shall: (a) include or consult with a broadly representative group from the manufacturing and retailing sectors in each Party; and (b) act in a transparent manner and reach recommendations by consensus of all representatives involved. 2. The Committee shall develop and pursue a work program to consider the potential benefits and risks that may be derived from the elimination of restrictions on trade between the Parties in worn clothing and other worn articles, including the effects on business and employment opportunities, and on the market for textile and apparel goods in each Party. 3. Notwithstanding Article 309 and paragraph 2 of Section 3, a Party may maintain restrictions in effect upon 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: carryforward means the allocation to the present year of a portion of the following year's limit, which must be accounted for by an equivalent decrease in the following year's limit; carryover means the allocation to the present year of an unused portion of the previous year's limit; category means a grouping of textile or apparel goods, as further defined in Appendix 10.1; consensus means, when applied to recommendations of the Committee on Trade in Worn Clothing, a recommendation is approved if no member of the Committee formally objects to its approval;

consultation level ("level"), including designated consultation level, means a level of exports, for a particular textile or apparel good, which may be increased in accordance with the provisions of Appendix 3.1 as a result of consultations requested by the exporting Party, in contrast to a specific limit which is increased by the specific rates provided for in Appendix 3.1; exporting Party means the Party from whose territory textile or apparel goods are exported; flexibility provisions means the provisions set forth in paragraph 7 of Appendix 3.1; importing Party means the Party into whose territory textile or apparel goods are imported; integrated into the GATT, when referring to a textile or apparel good, means that good has become subject to the obligations of the General Agreement on Tariffs and Trade pursuant to any successor agreement to the Multifiber Arrangement; non-wool fabric means fabric in chief weight of any fiber other than wool, except woven fabric in chief weight of cotton or man-made fiber, containing 36 percent or more by weight wool; non-wool made-up textile good means a good in chief weight of any fiber other than wool; oxford cloth means fabrics woven as plain weave except that two or more warp ends are woven as one (taped warp); restriction means any import or export limitation, except for customs duties, taxes or other duties or charges, whether made effective through quotas, licenses, permits, import or export price requirements, or any other measure; specific limit ("limit"), means a level of exports, specified in Appendix 3.1, for a particular textile or apparel good which may be increased only in accordance with the provisions and specific rates set forth in Appendix 3.1; square meters equivalent (SME) means a common unit of measurement for textile and apparel goods; primary units of measure (e.g., units, dozens, kilograms) are converted to SMEs using the conversion factors set forth in Schedule 3.1.3 of Appendix 3.1; tariff preference level (TPL) means a mechanism by which to apply the preferential rate of customs duty to imports of a particular non-originating good up to a specified quantity; transition period means a period of 10 years from the date of entry into force of this Agreement; and wool apparel means: (i) apparel in chief weight of wool,

(ii) woven apparel in chief weight of man-made fibers containing 36 percent or more by weight of wool, and (iii) knitted or crocheted apparel in chief weight of man-made fibers containing 23 percent or more by weight of wool. ======================================================================= ====== 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 Ch. 30 Pharmaceutical Products 3005 90 Wadding, gauze, bandages and the like Ch. 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) Ch. 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) Ch. 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; silkworm 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 Ch. 51 Wool, fine or coarse animal hair, horsehair yarn and fabric 5105 10 Carded wool 5105 21 Combed wool in fragments 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, wool, not for retail sale 5106 20 Yarn of carded, wool, <85% wool, not for retail sale 5107 10 Yarn of combed wool, 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, 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, wool and fine animal hair, 0 g/m2 5111 19 Woven fabric of carded wool or fine animal hair, 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, wool or fine animal hair, g/m2 5112 19 Woven fabric of combed wool or fine animal hair, 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 Ch. 52 Cotton 5203 00 Cotton, carded or combed 5204 11 Cotton sewing thread cotton, not for retail sale 5204 19 Cotton sewing thread, <85% cotton, not for retail sale 5204 20 Cotton sewing thread, for retail sale 5205 11 Cotton yarn, cotton, single, uncombed, .29 decitex, not for retail sale 5205 12 Cotton yarn, cotton, single, uncombed, 714.29 >decitex .56, not for retail sale 5205 13 Cotton yarn, cotton, single, uncombed, 232.56>decitex .31, not for retail sale 5205 14 Cotton yarn, cotton, single, uncombed, 192.31 >decitex , not for retail sale 5205 15 Cotton yarn, cotton, single, uncombed, <125 decitex, not for

retail sale 5205 21 Cotton yarn, cotton, single, combed, .29, not for retail sale 5205 22 Cotton yarn, cotton, single, combed, 714.29 >decitex.56, not for retail sale 5205 23 Cotton yarn, cotton, single, combed, 232.56 >decitex.31, not for retail sale 5205 24 Cotton yarn, cotton, single, combed, 192.31 >decitex, not for retail sale 5205 25 Cotton yarn, cotton, single, combed, <125 decitex, not for retail sale 5205 31 Cotton yarn, cotton, multiple, uncombed, .29 decitex, not for retail sale, nes 5205 32 Cotton yarn, cotton, multiple, uncombed, 714.29 >decitex.56, not for retail sale, nes 5205 33 Cotton yarn, cotton, multiple, uncombed, 232.56 >decitex.31, not for retail sale, nes 5205 34 Cotton yarn, cotton, multiple, uncombed, 192.31 >decitex, not for retail sale, nes 5205 35 Cotton yarn, cotton, multiple, uncombed, <125 decitex, not for retail sale, nes 5205 41 Cotton yarn, cotton, multiple, combed, .29 decitex, not for retail sale, nes 5205 42 Cotton yarn, cotton, multiple, combed, 714.29 >decitex.56, not for retail sale, nes 5205 43 Cotton yarn, cotton, multiple, combed, 232.56 >decitex.31, not for retail sale, nes 5205 44 Cotton yarn, cotton, multiple, combed, 192.31 >decitex, not for retail sale, nes 5205 45 Cotton yarn, cotton, multiple, combed, <125 decitex, not for retail sale, nes 5206 11 Cotton yarn, <85% cotton, single, uncombed, .29, not for retail sale 5206 12 Cotton yarn, <85% cotton, single, uncombed, 714.29 >decitex.56, not for retail sale 5206 13 Cotton yarn, <85% cotton, single, uncombed, 232.56 >decitex.31, not for retail sale 5206 14 Cotton yarn, <85% cotton, single, uncombed, 192.31 >decitex, 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, .29 decitex, not for retail sale 5206 22 Cotton yarn, <85% cotton, single, combed, 714.29 >decitex.56, not for retail sale 5206 23 Cotton yarn, <85% cotton, single, combed, 232.56 >decitex.31, not for retail sale 5206 24 Cotton yarn, <85% cotton, single, combed, 192.31 >decitex, 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, .29, not for retail sale, nes 5206 32 Cotton yarn, <85% cotton, multiple, uncombed, 714.29 >decitex.56, not for retail sale, nes 5206 33 Cotton yarn, <85% cotton, multiple, uncombed, 232.56

>decitex.31, not for retail sale, nes 5206 34 Cotton yarn, <85% cotton, multiple, uncombed, 192.31 >decitex, 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, .29, not for retail sale, nes 5206 42 Cotton yarn, <85% cotton, multiple, combed, 714.29 >decitex.56, not for retail sale, nes 5206 43 Cotton yarn, <85% cotton, multiple, combed, 232.56 >decitex.31, not for retail sale, nes 5206 44 Cotton yarn, <85% cotton, multiple, combed, 192.31 >decitex, 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) cotton, for retail sale 5207 90 Cotton yarn (other than sewing thread) <85% cotton, for retail sale 5208 11 Plain weave cotton fabric, cotton, g/m2, unbleached 5208 12 Plain weave cotton fabric, cotton, >100g/m2, g/m2, unbleached 5208 13 Twill weave cotton fabric, cotton, g/m2, unbleached 5208 19 Woven fabric of cotton, cotton, g/m2, unbleached, nes 5208 21 Plain weave cotton fabric, cotton, g/m2, bleached 5208 22 Plain weave cotton fabric, cotton, >100g/m2, g/m2, bleached 5208 23 Twill weave cotton fabric, cotton, g/m2, bleached 5208 29 Woven fabric of cotton, cotton, g/m2, bleached, nes 5208 31 Plain weave cotton fabric, cotton, g/m2, dyed 5208 32 Plain weave cotton fabric, cotton, >100g/m2, 0g/m2, dyed 5208 33 Twill weave cotton fabric, cotton, g/m2, dyed 5208 39 Woven fabric of cotton, cotton, g/m2, dyed, nes 5208 41 Plain weave cotton fabric, cotton, g/m2, yarn dyed 5208 42 Plain weave cotton fabric, cotton, >100g/m2, g/m2, yarn dyed 5208 43 Twill weave cotton fabric, cotton, g/m2, yarn dyed 5208 49 Woven fabric of cotton, cotton, g/m2, yarn dyed, nes 5208 51 Plain weave cotton fabric, cotton, g/m2, printed 5208 52 Plain weave cotton fabric, cotton, >100g/m2, g/m2, printed 5208 53 Twill weave cotton fabric, cotton, g/m2, printed 5208 59 Woven fabric of cotton, cotton, 0g/m2, printed, nes 5209 11 Plain weave cotton fabric, cotton, >200g/m2, unbleached 5209 12 Twill weave cotton fabric, cotton, >200g/m2, unbleached 5209 19 Woven fabric of cotton, cotton, >200g/m2, unbleached, nes 5209 21 Plain weave cotton fabric, cotton, >200g/m2, bleached 5209 22 Twill weave cotton fabric, cotton, >200g/m2, bleached 5209 29 Woven fabric of cotton, cotton, >200g/m2, bleached, nes 5209 31 Plain weave cotton fabric, cotton, >200g/m2, dyed 5209 32 Twill weave cotton fabric, cotton, >200g/m2, dyed 5209 39 Woven fabric of cotton, cotton, >200g/m2, dyed, nes 5209 41 Plain weave cotton fabric, cotton, >200g/m2, yarn dyed 5209 42 Blue denim fabric of cotton, cotton, >200g/m2 5209 43 Twill weave cotton fabric, other than denim, cotton, >200g/m2, yarn dyed 5209 49 Woven fabric of cotton, cotton, >200g/m2, yarn dyed, nes

5209 51 Plain weave cotton fabric, cotton, >200g/m2, printed 5209 52 Twill weave cotton fabric, cotton, >200g/m2, printed 5209 59 Woven fabric of cotton, cotton, >200g/m2, printed, nes 5210 11 Plain weave cotton fabric, <85% cotton, with man-made fiber, g/m2, unbleached 5210 12 Twill weave cotton fabric, <85% cotton, with man-made fiber, g/m2, unbleached 5210 19 Woven fabric of cotton, <85% cotton, with man-made fiber, g/m2, unbleached, nes 5210 21 Plain weave cotton fabric, <85% cotton, with man-made fiber, g/m2, bleached 5210 22 Twill weave cotton fabric, <85% cotton, with man-made fiber, g/m2, bleached 5210 29 Woven fabric of cotton, <85% cotton, with man-made fiber, g/m2, bleached, nes 5210 31 Plain weave cotton fabric, <85% cotton, with man-made fiber, g/m2, dyed 5210 32 Twill weave cotton fabric, <85% cotton, with man-made fiber, g/m2, dyed 5210 39 Woven fabric of cotton, <85% cotton, with man-made fiber, g/m2, dyed, nes 5210 41 Plain weave cotton fabric, <85% cotton, with man-made fiber, g/m2, yarn dyed 5210 42 Twill weave cotton fabric, <85% cotton, with man-made fiber, g/m2, yarn dyed 5210 49 Woven fabric of cotton, <85% cotton, with man-made fiber, g/m2, yarn dyed, nes 5210 51 Plain weave cotton fabric, <85% cotton, with man-made fiber, g/m2, printed 5210 52 Twill weave cotton fabric, <85% cotton, with man-made fiber, g/m2, printed 5210 59 Woven fabric of cotton, <85% cotton, with man-made fiber, g/m2, printed, nes 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 g/m2, unbleached, nes 5212 12 Woven fabric of cotton, weighing g/m2, bleached, nes 5212 13 Woven fabric of cotton, weighing g/m2, dyed, nes 5212 14 Woven fabric of cotton, g/m2, of yarns of different colors, nes 5212 15 Woven fabric of cotton, weighing g/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 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 Ch. 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, flax, unbleached or bleached 5309 19 Woven fabric, 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 Ch. 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, ex/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 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, decitex, no cross sectional dimension >1 mm 5404 90 Strip and the like of synthetic textile material of an apparent width m 5405 00 Artificial monofil, 67 decitex, cross sectional dimension >1mm; strip of art. tex. mat. width 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, nylon or other polyamide filaments, unbleached or bleached, nes 5407 42 Woven fabric, nylon or other polyamide filaments, dyed, nes 5407 43 Woven fabric, nylon or other polyamide filaments, yarn dyed,

nes 5407 44 Woven fabric, nylon or other polyamide filaments, printed, nes 5407 51 Woven fabric, textured polyester filaments, unbleached or bleached, nes 5407 52 Woven fabric, textured polyester filaments, dyed, nes 5407 53 Woven fabric, textured polyester filaments, yarn dyed, nes 5407 54 Woven fabric, textured polyester filaments, printed, nes 5407 60 Woven fabric, non-textured polyester filaments, nes 5407 71 Woven fabric, synthetic filaments, unbleached or bleached, nes 5407 72 Woven fabric, synthetic filaments, dyed, nes 5407 73 Woven fabric, synthetic filaments, yarn dyed, nes 5407 74 Woven fabric, 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 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, artificial filament or strip, unbleached or bleached, nes 5408 22 Woven fabric, artificial filament or strip, dyed, nes 5408 23 Woven fabric, artificial filament or strip, yarn dyed, nes 5408 24 Woven fabric, 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 Ch.55Man-made staple fibers 5501 10 5501 20 5501 30 5501 90 5502 00 5503 10 combed 5503 20 5503 30 5503 40 5503 90 5504 10 5504 90 combed 5505 10 5505 20 5506 10 Filament tow of nylon or other polyamides Filament tow of polyesters Filament tow of acrylic or modacrylic Synthetic filament tow, nes Artificial filament tow Staple fibers of nylon or other polyamides, not carded or Staple fibers of polyesters, not carded or combed Staple fibers of acrylic or modacrylic, not carded or combed Staple fibers of polypropylene, not carded or combed Synthetic staple fibers, not carded or combed, nes Staple fibers of viscose, not carded or combed Artificial staple fibers, other than viscose, not carded or Waste of synthetic fibers Waste of artificial fibers 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 5509 11 Yarn, nylon or other polyamide staple fibers, single, not for retail sale 5509 12 Yarn, nylon or other polyamide staple fibers, multiple, not for retail sale, nes 5509 21 Yarn, of polyester staple fibers, single, not for retail sale 5509 22 Yarn, of polyester staple fibers, multiple, not for retail sale, nes 5509 31 Yarn, of acrylic or modacrylic staple fibers, single, not for retail sale 5509 32 Yarn, acrylic/modacrylic staple fibers, multiple, not for retail sale, nes 5509 41 Yarn, of other synthetic staple fibers, single, not for retail sale 5509 42 Yarn, 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, of artificial staple fibers, single, not for retail sale 5510 12 Yarn, 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 5511 10 Yarn, 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, of polyester staple fibers, unbleached or

bleached 5512 19 Woven fabric, of polyester staple fibers, other than unbleached or bleached 5512 21 Woven fabric, of acrylic staple fibers, unbleached or bleached 5512 29 Woven fabric, of acrylic staple fibers, other than unbleached or bleached 5512 91 Woven fabric, of other synthetic staple fibers, unbleached or bleached 5512 99 Woven fabric, of other synthetic staple fibers, other than unbleached or bleached 5513 11 Plain weave polyester fabric, <85% syn stple fiber, with cot, g/m2, unbl or bl 5513 12 Twill weave polyester staple fiber fabric, <85% syn. staple fiber, with cotton, g/m2, unbl or bl 5513 13 Woven polyester fabric, <85% synthetic stple fiber, with cotton, g/m2, unbl or bl, nes 5513 19 Woven fabric of other synthetic staple fiber, <85% syn. stpl fib, with cotton, g/m2, unbl or bl 5513 21 Plain weave polyester staple fiber fabric,<85% synthetic staple fiber, with cotton, g/m2, dyed 5513 22 Twill weave polyester staple fiber fabric,<85% synthetic staple fiber, with cotton, g/m2, dyed 5513 23 Woven fabric of polyester staple fiber, <85% syn. staple fiber, with cotton, g/m2, dyed, nes 5513 29 Woven fabric of other synthetic staple fiber, <85% syn. staple fiber, with cotton, g/m2, dyed 5513 31 Plain weave polyester staple fiber fabric, <85% syn. staple fiber, with cotton, g/m2, yarn dyed 5513 32 Twill weave polyester staple fiber fabric, <85% syn. staple fiber, with cotton, g/m2, yarn dyed 5513 33 Woven fabric of polyester staple fiber, <85% syn. staple fiber, with cotton, g/m2, dyed nes 5513 39 Woven fabric of other synthetic staple fiber, <85% syn. staple fiber, with cotton, g/m2, yarn dyed 5513 41 Plain weave polyester staple fiber fabric, <85% syn. stpl fiber, with cotton, g/m2, printed 5513 42 Twill weave polyester staple fiber fabric, <85% syn. staple fiber, with cotton, <=/170g/m2, printed 5513 43 Woven fabric of polyester staple fiber, <85% syn staple fiber, with cotton, g/m2, printed, nes 5513 49 Woven fabric of other synthetic staple fiber, <85% syn. staple fiber, with cotton, g/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 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, artificial staple fiber, unbleached or bleached 5516 12 Woven fabric, artificial staple fiber, dyed 5516 13 Woven fabric, artificial staple fiber, yarn dyed 5516 14 Woven fabric, 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, with man-made fib, printed 5516 31 Woven fabric of artificial staple with wool/fine animal hair, unbl or bl 5516 32 Woven fabric of artificial staple with wool/fine animal hair, dyed 5516 33 Woven fabric of artificial staple with wool/fine animal hair, yarn dyed 5516 34 Woven fabric of artificial staple with wool/fine animal hair, printed 5516 41 Woven fabric of artificial staple fiber, with cotton, unbl or bl 5516 42 Woven fabric of artificial staple fiber, with cotton, dyed 5516 43 Woven fabric of artificial staple fiber, with cotton, yarn dyed 5516 44 Woven fabric of artificial staple fiber, with cotton, printed 5516 91 Woven fabric of artificial staple nes 5516 92 Woven fabric of artificial staple 5516 93 Woven fabric of artificial staple 5516 94 Woven fabric of artificial staple

fiber, <85% artificial staple fiber, <85% art stpl fiber, fiber, <85% art staple fiber, fiber, <85% art staple fiber, fiber, <85% art staple fiber, fiber, <85% artificial staple fiber, <85% artificial staple fiber, <85% artificial staple fiber, <85% artificial staple fiber, unbleached or bleached, fiber, dyed, nes fiber, yarn dyed, nes fiber, printed, nes

Ch. 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 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 Ch.57Carpets 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 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 Ch. 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 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 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 Ch. 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 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 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 Ch. 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 6001 99 Pile knitted or crocheted fabric, of other textile materials, nes 6002 10 Knitted or crocheted textile fabric, w cm, 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, 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 Ch. 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 manmade 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 manmade 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 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 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 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 manmade 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 6110 30 Sweaters, pullovers, sweatshirts, and similar articles of manmade 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, 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 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 Ch. 62 Articles of apparel and clothing accessories, not knitted or crocheted 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 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 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 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 6208 92 Women's or girls' panties, robes, and similar articles of manmade 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 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 Ch. 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 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 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 Ch. 64 Footwear, gaiters, and the like; parts of such articles ex 6405 20 ex 6406 10 material ex 6406 99 Footwear with soles and uppers of wool felt Footwear uppers of which the external surface is textile Leg warmers and gaiters of textile materials

Ch. 65 Headgear and parts thereof 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 Ch. 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 Ch. 70 Glass and glassware ex 7019 10 ex 7019 20 Yarn of fiber glass Woven fabric of fiber glass

Ch. 87 Vehicles other than railway or tramway rolling stock, and parts and accessories thereof 8708 21 Safety seat belts for motor vehicles Ch. 88 Aircraft, spacecraft, and parts thereof 8804 00 Parachutes; their parts and accessories Ch. 91 Clocks and watchs and parts thereof 9113 90 Watch straps, bands and bracelets of textile materials Ch. 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 Ch. 95 Toys, games and sports requisites; parts and accessories thereof 9502 91 Garments for dolls Ch. 96 Miscellaneous manufactured articles ex 9612 10 Woven ribbons, of man-made fibers, other than those <30 mm wide and permanently in cartridges ======================================================================= ====== APPENDIX 2.1 Tariff Elimination Trade Between the United States and Canada 1. The United States and Canada shall progressively eliminate their respective customs duties on originating textile and

apparel goods of each other in accordance with the base rates and schedules set forth in Annex 401.2, as amended, of the CanadaUnited States Free Trade Agreement. Trade Between the United States and Mexico 2. The United States and Mexico shall progressively eliminate their respective customs duties on originating textile and apparel goods of each other, starting from the base rates set forth in the Party's Schedule in 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 dutyfree effective January 1, 1994; (b) duties on textile and apparel goods provided for in the items in staging category B 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 commencing 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 commencing on January 1, 1994, and such goods shall be duty-free effective January 1, 2003; and (d) if the application of the formulas provided in subparagraphs (b) and (c) for staging categories B and C result 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. Exceptions to this provision are specified in Schedule 2.1. 3. In addition, on January 1, 1994, the United States shall eliminate customs duties on textile and apparel goods that are: (a) assembled in Mexico from fabrics wholly formed and cut in the United States; and (b) exported from and reimported into the United States under U.S. tariff item 9802.00.80.10, and shall not adopt or maintain customs duties on textile and apparel goods of Mexico that satisfy the requirements of any successor provision to that U.S. tariff item. Trade Between Canada and Mexico 4. Canada and Mexico shall progressively eliminate their

respective customs duties on originating textile and apparel goods of each other, starting from the base rates set forth in the Party's Schedule in 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 dutyfree effective January 1, 1994; (b) duties on textile and apparel goods provided for in the items in staging category B in a Party's Schedule shall be removed in six equal annual stages commencing 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+ shall be reduced by the following percentages of the base rates, commencing on January 1, 1994, and such goods shall be duty-free effective January 1, 2001: January January January January January January January January 1, 1, 1, 1, 1, 1, 1, 1, 1994, 1995, 1996, 1997, 1998, 1999, 2000, 2001, 20 0 10 10 10 10 10 30 per per per per per per per per cent; cent; cent; cent; cent; cent; cent; cent; and

(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 commencing on January 1, 1994, and such goods shall be duty-free effective January 1, 2003. Trade Between All Parties 5. Originating textile and apparel goods provided for in the items in staging category D in a Party's Schedule shall continue to receive duty-free treatment. ======================================================================= ====== Schedule 2.1 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: Year 1 Year 2 Year 3 25.0% 24.1% 18.0%

Year 4 12.0% Year 5 6.0% Year 6 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, 5112.19.99, as modified to correspond to the U.S. tariff items identified in paragraph 1, during the transition period: Year Year Year Year Year Year 1 15.0% 2 14.5% 3 10.8% 4 7.2% 5 3.6% 6 and thereafter

0.0%

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: Year Year Year Year Year Year 1 25.0% 2 25.0% 3 20.0% 4 13.3% 5 6.7% 6 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: Year Year Year Year Year Year 1 15.0% 2 15.0% 3 12.0% 4 8.0% 5 4.0% 6 and thereafter

0.0%

5. Mexico shall apply the following rates of duty on goods in subheadings 5703.20 and 5703.30 measuring not more than 5.25 square meters in area, other than hand-hooked, of nylon, during the transition period: Year Year Year Year Year 1 2 3 4 5 20.0% 20.0% 10.0% 6.6% 3.3%

Year 6 and thereafter 0.0% ======================================================================= ====== APPENDIX 3.1 Administering Import and Export Restrictions and Consultation Levels General Provisions Applicable Only to Trade Between Mexico and the United States and Between Mexico and Canada 1. A Party applying a restriction or consultation level on nonoriginating goods pursuant to Section 5 or paragraph 8 of this Appendix shall apply it in accordance with this Appendix and its Schedules. 2. An exporting Party whose textile or apparel good is subject to a 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 such restriction or consultation level by controlling its imports. 3. Textile and apparel goods exported subject to restrictions or consultation levels shall be counted against the limits or levels applicable to the year in which exported. Exports in excess of authorized limits or levels in each calendar year shall, if allowed entry into the importing Party, be charged to the limit or level authorized for the succeeding year. 4. Each exporting Party whose goods are subject to a restriction or consultation level shall use its best efforts 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. Upon written request by an exporting Party whose goods are subject to a restriction or consultation level, that Party and the importing Party shall enter into consultations, within 30 days of receipt of the written request therefor, on any question arising from the implementation of this Appendix. If the exporting Party considers that, as a result of a restriction or consultation level applied under this Appendix, it is being placed in an inequitable position in relation to another Party or a non-Party, the consulting Parties shall seek a mutually beneficial solution within 60 days of the request for consultations. 6. The Parties concerned may by mutual agreement adjust annual Designated Consultation Levels (DCLs) as follows: (a) if an 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 to a request is negative, consultations shall take place not later than 15 days after the receipt of the negative response or as soon as mutually convenient. The Parties concerned shall endeavor to reach a mutually satisfactory solution. An exchange of letters shall confirm any agreement reached on any new DCL. 7. The Parties may adjust annual Specific Limits (SLs) as follows: (a) an exporting Party wishing to adjust an SL in accordance with this paragraph shall provide notice to the importing Party of its intent to make such adjustment; (b) that exporting Party may increase any SL by not more than 6 percent (swing); and (c) in addition, exports from that Party may exceed by a maximum of 11 percent any SL by allocating to such limit for that calendar year an unused portion ("shortfall") of the corresponding limit for the previous calendar year ("carryover") or a portion of the corresponding limit for the succeeding calendar year ("carryforward") subject to the following conditions (i) carryover may be utilized as available up to 11 percent of the receiving calendar year's applicable limits, (ii) carryforward may be utilized up to 6 percent of the receiving calendar year's applicable limits and shall be charged against the succeeding calendar year's corresponding limits, (iii) the combination of carryover and carryforward shall not exceed 11 percent of the receiving calendar year's applicable limits in any calendar year, and (iv) carryover of shortfall shall be applied to any specific limit following notice given by the exporting Party and confirmation by the importing Party that sufficient shortfall exists. If the importing Party does not consider that sufficient shortfall exists, it will promptly provide data to support that view. If substantial statistical differences exist between the import and export data upon which shortfall for a given period is computed, the Parties shall work to resolve these differences promptly. Provisions Applicable Only to Trade between Mexico and the United States

8. 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. 9. In addition, on January 1, 1994, the United States shall eliminate restrictions or consultation levels on textile and apparel goods that are: (a) assembled in Mexico from fabrics wholly formed and cut in the United States; and (b) exported from and reimported into the United States under U.S. tariff item 9802.00.80.10, and, notwithstanding Section 5, shall not adopt or maintain prohibitions, restrictions, or consultation levels on textile and apparel goods of Mexico that satisfy the requirements of any successor provision to that U.S. tariff item. 10. Notwithstanding paragraph 8, no Party may apply the restrictions and consultation levels specified in Schedule 3.1.2 to the following textile and apparel goods, provided such goods have been certified by the competent authority of Mexico as one of the following: (a) hand-loomed fabrics of a cottage industry; (b) hand-made cottage industry goods made of such handloomed fabrics; or (c) traditional folklore handicraft goods that have been identified and agreed between the United States and Mexico for exemption from quantitative restrictions. 11. The Bilateral Textile Agreement Between the United States of America and the United Mexican States, signed at Mazatlan February 13, 1988, as amended and extended (the Bilateral

Agreement), shall terminate upon the date of entry into force of this Agreement. 12. Except as otherwise provided in this Annex, the Parties shall eliminate the restrictions and consultation levels listed in Schedule 3.1.2 in accordance with the schedule provided in Schedule 3.1.1. At the request of either Party, the Parties shall consult to consider accelerating the elimination of restrictions or consultation levels on specific textile and apparel goods. An agreement between the Parties to accelerate the elimination of a restriction or consultation level shall be considered part of this Agreement, superseding Schedule 3.1.1. 13. During the first calendar year following the date of entry into force of this Agreement, Mexico may carry over any unused portion of the preceding year's limit specified in the Bilateral Agreement, or apply against the first year's limit specified in this Appendix any exports made during the preceding year in excess of the applicable limit under the Bilateral Agreement, in accordance with the flexibility provisions set forth in paragraph 7. 14. All exports of textiles 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 a bilateral visa arrangement, as amended. 15. At the written request of either Party, both Parties shall consult, within 30 days of receipt of the request, on any questions arising from the implementation of this Appendix. In addition, at the request of either Party, those Parties shall conduct a major review of this Section no later than five years from the date of entry into force of this Agreement. 16. For the purpose of applying restrictions or consultation levels, each Party shall classify a good as being: (a) of 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) of cotton, if not covered by (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) of wool, if not covered by (a) or (b), and the good is in chief weight of wool; and (d) of non-cotton vegetable fiber, if not covered by (a), (b), or (c), and the good is in chief weight of noncotton 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, (ii) if not covered by (d)(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 (d)(i) or (d)(ii) and manmade 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. Schedules To determine which HS provisions are contained in a U.S. category listed in the Schedules in 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), United States 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 Goods Category Category 335 SR Description Staging 1

C W&G Coats, Special Regime

336/636 SR C/MMF Dresses, Special Regime 1 338/339/638/639 SR C/MMF Knit Shirts, Spec. Reg. 1 340/640 SR C/MMF Woven Shirts, Spec. Reg. 1 341/641 SR MMF Blouses, Special Regime 1 342/642 SR C/MMF Skirts, Special Regime 1 347/348/647/648 SR C/MMF Trousers, Spec. Reg. 1 351/651 SR C/MMF Pyjamas, etc. Spec. Reg. 1 352/652 SR C/MMF Underwear, Spec. Regime 1 359-C/659-C SR C/MMF Coveralls, Spec. Regime 1 633 SR MMF Suit Coats, Special Regime 1 635 SR MMF Coats, Special Regime 1 ======================================================================= ====== b. Non-originating Goods Category Category Description Staging

Broadwoven Fabric Group C/MMF 1 218 C/MMF Fabrics/Yarns Diff. Col. 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 2 317 C Twill Fabric 2 326 C Sateen Fabric 1 334/634 C/MMF Men's and Boy's Coats 1 335 NR C Coats, Women's and Girl's 1 336/636 NR C/MMF Dresses 1 338/339/638/639 NR C/MMF Knit Shirts and Blouses 340/640 NR C/MMFWoven 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 3 433 W Men's/Boy's Suit-type Coats 3 435 Women's and Girl's Coats, Wool 1 443 Men's and Boys Suits, Wool 3 604-AAcrylic Spun Yarn 1 604-O/607-O Staple Fiber Yarn 1 611 Artificial Staple Fiber Woven Fab. 3 613 MMF Sheeting Fabric 1 614 MMF Poplin & Broadcloth Fab. 1 615 MMF Printcloth Fabric 1 617 MMF Twill & Sateen Fab. 1

625 MMF Poplin/Broad. Stap/Fil 1 626 MMF Printcloth Stap/Fil 1 627 MMF Sheeting Stap/Fil 1 628 MMF Twill/Sateen Stap/Fil 1 629 MMF Other Stap/Fil Fab. 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-BPolypropylene Bags 1 670 MMF Luggage, Flat Goods Etc. 1 Schedule 3.1.2 Restrictions and Consultation Levels on Exports from Mexico to the United States Unit of Category Form Measure Year 1 Year 2 Year 3 219 DCL SM 9,438,000 9,438,000 9,438,000 313 DCL SM 16,854,000 16,854,000 16,854,000 314 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 397,160 397,160 397,160 338/339/ 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 Year 4 Year 5 Year 6 Year 7 219 9,438,000 9,438 ,000 313 16,854,000 16,854,000 314 6,966,904 6,966,904 6,966,904 9,438,000 9,438,000 16,854,000 16,854,000

6,966,904

315 6,966,904 6,966,904 317 8,427,000 8,427,000 611 1,267,710 1,267,710 410 397,160 397,160 338/339/ 638/639 650,000 650,000 340/640 147,378 189,287 347/348/ 647/648 650,000 650,000 433 11,000 11,000 443 168,730 189,798 633 10,000 10,000 643 155,556 155,556

6,966,904

6,966,904

8,427,000

8,427,000

1,267,710

1,267,710

397,160

397,160

650,000

650,000

160,200

174,137

650,000

650,000

11,000

11,000

175,479

182,498

10,000

10,000

155,556

155,556

Category Year 8 611 1,267,710 410 397,160 433 11,000 443 197,390

Year 9

Year10

1,267,710 397,160 11,000 205,286

1,267,710 397,160 11,000 213,496 Schedule 3.1.3 Conversion Factors

1. This Schedule applies to restrictions and consultation levels applied pursuant to Section 5 and paragraph 8 of Appendix 3.1, and to tariff preference levels (TPLs) applied pursuant to Section 6 and Appendix 6.0. 2. Unless otherwise provided in this Annex, or mutually agreed as between two Parties with respect to trade between those Parties, the rates of conversion into square meters equivalent listed below shall apply in implementing this Annex. 3. For goods covered by a textile category, the following conversion factors shall apply: Primary U.S. Conversion Description Unit of Category Factor Measure 200 KG 201 KG 218 SM 219 SM 220 SM 222 KG 223 KG 224 SM 6.60 6.50 1.00 1.00 1.00 6.00 14.00 1.00 YARN FOR RETAIL SALE, SEWING THREAD SPECIALTY YARNS FABRIC OF YARNS OF DIFFERENT COLORS DUCK FABRIC FABRIC OF SPECIAL WEAVE KNIT FABRIC NON-WOVEN FABRIC PILE & TUFTED FABRIC

225 1.00 BLUE DENIM FABRIC SM 226 1.00 CHEESECLOTH, BATISTE, LAWN & VOILE SM 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 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 KNIT DZ 342 14.90 COTTON SKIRTS DZ ======================================================================= ====== Primary U.S. Conversion Description Unit of

Category Factor Measure 345 DZ 347 DZ 348 DZ 349 DZ 350 DZ 351 DZ 352 DZ 353 DZ 354 DZ 359 KG 360 NO 361 NO 362 NO 363 NO 369 KG 400 KG 410 SM 414 KG 431 DPR 432 DPR 433 DZ 434 DZ 435 DZ 436 DZ 438 DZ 439 KG 440 DZ 30.80 14.90 14.90 4.00 42.60 43.50 9.20 34.50 34.50 8.50 0.90 5.20 5.80 0.40 8.50 3.70 1.00 2.80 1.80 2.30 30.10 45.10 45.10 41.10 12.50 6.30 20.10 COTTON SWEATERS M&B COT. TROUSERS/BREECHES/SHORTS W&G COT. TROUSERS/BREECHES/SHORTS BRASSIERES, OTHER BODY SUPPORT GAR COTTON DRESSING GOWNS, ROBES ETC. COTTON NIGHTWEAR/PAJAMAS COTTON UNDERWEAR M&B COTTON DOWN-FILLED COATS W&G COTTON DOWN-FILLED COATS OTHER COTTON APPAREL COTTON PILLOWCASES COTTON SHEETS OTHER COTTON BEDDING COTTON TERRY & OTHER PILE TOWELS OTHER COTTON MANUFACTURES WOOL YARN WOOL WOVEN FABRIC OTHER WOOL FABRIC WOOL GLOVES/MITTENS WOOL HOSIERY M&B WOOL SUIT-TYPE COATS OTHER M&B WOOL COATS W&G WOOL COATS WOOL DRESSES WOOL KNIT SHIRTS/BLOUSES BABIES' WOOL GARM/CLOTHING ACCESS. WOOL SHIRTS/BLOUSES, NOT-KNIT

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 ======================================================================= ====== Primary U.S. Conversion Description Unit of Category Factor Measure 600 KG 603 604 606 KG 607 KG 611 613 SM 614 SM 615 SM 617 SM 618 SM 619 SM 620 SM 621 KG 6.50 6.30 7.60 20.10 6.50 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 TEXTURED FILAMENT YARN YARN ARTIFICIAL STAPLE FIBER YARN SYNTHETIC STAPLE FIBER NON-TEXTURED FILAMENT YARN OTHER STAPLE FIBER YARN WOVEN FABRIC ARTIF STAPLE MMF SHEETING FABRIC MMF POPLIN & BROADCLOTH FABRIC MMF PRINTCLOTH FABRIC MMF TWILL AND SATEEN FABRIC WOVEN ARTIFICIAL FILAMENT FABRIC POLYESTER FILAMENT FABRIC OTHER SYNTHETIC FILAMENT FABRIC 14.40 IMPRESSION FABRIC SM KG KG

622 SM 624 SM 625 SM 626 SM 627 SM 628 SM 629 SM 630 DZ 631 DPR 632 DPR 633 DZ 634 DZ 635 DZ 636 DZ 638 DZ 639 DZ 640 DZ 641 DZ 642 DZ 643 NO 644 NO 645 DZ 646 DZ 647 DZ 648 DZ 649 DZ 650 DZ 651 DZ

1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.40 2.90 3.80 30.30 34.50 34.50 37.90 15.00 12.50 20.10 12.10 14.90 3.76 3.76 30.80 30.80 14.90 14.90 4.00 42.60 43.50

GLASS FIBER FABRIC WOVEN MMF FABRIC, 15 % TO 36 % WOOL MMF STAP/FIL POPLN & BROADCLTH FAB MMF STAP/FIL PRINTCLOTH FABRIC MMF STAP/FIL SHEETING FABRIC MMF STAPLE/FIL TWILL/SATEEN FABRIC OTHER MMF STAP/FIL FABRIC MMF HANDKERCHIEFS MMF GLOVES AND MITTENS MMF HOSIERY M&B MMF SUIT-TYPE COATS OTHER M&B MMF COATS W&G MMF COATS MMF DRESSES M&B MMF KNIT SHIRTS W&G MMF KNIT SHIRTS & BLOUSES M&B NOT-KNIT MMF SHIRTS W&G NOT-KNIT MMF SHIRTS & BLOUSES MMF SKIRTS M&B MMF SUITS W&G MMF SUITS M&B MMF SWEATERS W&G MMF SWEATERS M&B MMF TROUSERS/BREECHES/SHORTS W&G MMF TROUSERS/BREECHES/SHORTS MMF BRAS & OTHER BODY SUPPORT GARM MMF ROBES, DRESSING GOWNS, ETC. MMF NIGHTWEAR & PAJAMAS

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 ======================================================================= ====== Primary U.S. Conversion Description Unit of Category Factor Measure 665 SM 666 KG 669 KG 670 KG 800 KG 810 SM 831 DPR 832 DPR 833 DZ 834 DZ 835 DZ 836 DZ 838 DZ 839 KG 840 DZ 842 DZ 843 NO 844 NO 845 DZ 846 DZ 1.00 14.40 14.40 3.70 8.50 1.00 2.90 3.80 30.30 34.50 34.50 37.90 11.70 6.30 16.70 14.90 3.76 3.76 30.80 30.80 MMF FLOOR COVERINGS OTHER MMF FURNISHINGS OTHER MMF MANUFACTURES MMF FLAT GOODS, HANDBAGS, LUGGAGE YARN, SILK BLENDS/VEG FIBER WOVEN FAB, SLK BLENDS/VEG FIBER GLOVES & MITTENS, SILK BLEND/ VEG HOSIERY, SILK BLENDS/VEG FIBER M&B SUIT-TYPE COATS, SILK BL/VEG OTHER M&B COATS, SILK BLEND/VEG W&G COATS, SILK BLEND/VEG FIBER DRESSES, SILK BLEND/VEG FIBER KNIT SHIRTS & BLOUSES, SLK BL/VEG BABIES' GARM & CLOTH ACC, SLK/VEG NOT-KNIT SHIRTS & BLOUSES, SLK/VEG SKIRTS, SILK BLENDS/VEG FIBERS M&B SUITS, SILK BLENDS/VEG FIBER W&G SUITS, SILK BLENDS/VEG FIBER SWEATERS, NON-COTTON VEG FIBERS SWEATERS, SILK BLENDS

847 14.90 TROUSERS/BREECHES/SHORTS, SILK/VEG DZ 850 42.60 ROBES, DRESSING GOWNS,ETC, SLK/VEG DZ 851 43.50 NIGHTWEAR & PJ'S, SILK BL/VEG FIB DZ 852 11.30 UNDERWEAR, SILK BLENDS/VEG FIBER DZ 858 6.60 NECKWEAR, SILK BLENDS/VEG FIBER KG 859 12.50 OTHER SILK/VEG FIBER APPAREL KG 863 0.40 TOWELS, SILK BLENDS/VEG FIBERS NO 870 3.70 LUGGAGE, SILK BLENDS/VEG FIBERS KG 871 3.70 HANDBAGS & FLATGOODS, SLK BL/VEG KG 899 11.10 OTHER SILK BLENDS/VEG MANUFACTURES KG ======================================================================= ====== 4. For goods not covered by a textile category, the following conversion factors shall apply: US 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, COTTON G/M2 CERT HAND-LOOM, YARNS OF DIF COLORS 5208.42.1000 1.00 SM WOVEN FABRIC, COTTON 100-200G/M2 CERT HAND-LOOM, YARNS OF DIF COLORS 5208.51.2000 1.00 SM WOVEN FABRIC, 85%> COTTON G/M2 PLAIN WEAVE, CERTIFIED HAND-LOOM, PRINTED 5208.52.1000 1.00 SM WOVEN FABRIC, COTTON 100-200G/M2 PLAIN WEAVE, CERT HANDLOOM, 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, CERT HAND-LOOM, PRINTED

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 FAB, JUTE OR OTHER TEX BAST FIBER (EX FLX/HEMP/RAM), CM WIDE, UNBL 5310.10.0040 1.00 SM WOVEN FAB, JUTE OR OTH TEX BAST FIB (EX FLX/HMP/RM) >130 TO CM WIDE, UNBL 5310.10.0060 1.00 SM WOVEN FAB JUTE OR OTH TEX BAST FIB (EX FLAX/HEMP/RAM), >250 CM WIDE, UNBL 5310.90.0000 1.00 SM WOVEN FABRIC, JUTE OR OTH TEX 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 MULTIFIL YRN, PARTIALLY ORIENTED, UNTWST/TWST <5 TRNS/MET, NOT RTL SALE 5402.41.0020 20.10 KG NYLON MONO/MULTFIL YARN, UNTWST/TWST <5 TURNS/METER, NOT FOR RETAIL SALE, NES 5402.41.0030 20.10 KG NYLON MONO/MULTIFIL YARN, UNTWST/TWIST <5 TURNS/METER, NOT FOR RETAIL SALE 5402.42.0000 20.10 KG POLY YARN, PARTIALLY ORIENTED, UNTWST/ TWST TRNS/METER, NOT RTL SALE 5402.43.0020 20.10 KG POLY YARN, MONOFIL, UNTWST/TWST TURNS/METER, NOT FOR RETAIL SALE 5402.49.0010 20.10 KG POLYETHYLENE/POLYPROPYLENE FIL YARN, UNTWST/TWST <5 TRNS/MET, NOT RTL SALE 5402.49.0050 20.10 KG SYNTHETIC FIL YARN, UNTWST/TWST <5 TURNS/METER, NOT FOR RETAIL SALE, NES 5403.10.3020 20.10 KG VISCOSE RAYON HIGH TENACITY FIL YARN, UNTW/TWST <5 TRNS/MET, NOT RTL SALE 5403.31.0020 20.10 KG VISCOSE RAYON FIL YARN, SINGLE, UNTWST/TWST <5 TURNS/METER, NOT RETAIL SALE 5403.33.0020 20.10 KG CELLULOSE ACETATE FIL YRN, SING, UNTWST/TWST <5 TURNS/MET, NOT RETAIL SALE 5403.39.0020 20.10 KG ARTIFICIAL FIL YARN, UNTWST/TWST <5 TURNS/MET, NOT RETAIL SALE, NES 5404.10.1000 20.10 KG SYNTHETIC MONOFIL RACKET STRINGS,

DECITEX, CROSS-SECT. DIMEMSION >1MM 5404.10.2020 20.10 KG NYLON MONFILAMENT, 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 DECITEX, CROSS-SECTIONAL DIMENSION >1MM, NES 5404.90.0000 20.10 KG SYNTHETIC STRIP WIDTH 5405.00.3000 20.10 KG ARTIFICIAL MONOFIL, DECITEX, CROSS- SECTIONAL DIMENSION M 5405.00.6000 20.10 KG ARTIFICIAL STRIP AND THE LIKE, WIDTH M 5407.30.1000 1.00 SM WOVEN SYN FIL 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 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 5506.30.0000 7.60 KG ACRYLIC/MODOACRYLIC STAPLE FIBER, CARDED/COMBED OR OTHERWISE PROCESSED 5506.90.0000 7.60 KG SYNTHTIC STAPEE 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 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 MATS, 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 MATS, NOT EMBROIDERED, NOT COTTON/MMF 5808.10.2090 11.10 KG BRAIDS IN PIECE FOR HEADWEAR, OTH TEX MATERIALS, NES, NOT KNT OR EMBROIDERED 5808.10.3090 11.10 KG BRAID IN PIECE, NES, NES 5808.90.0090 11.10 KG ORNAMENTAL TRIMMING IN PIECE, TEX MATS, NOT KNT 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 YER TEXTILE MATERIALS, TEXTILE MATERIALS, NES 6001.99.0010 1.00 SM KNIT OR CROCHETED PILE FABRIC SILK OR SILK WASTE 6002.99.0010 11.10 KG KNIT OR CROCHETED FABRIC, NES

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 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, CERT 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 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/CORDAGE/ROPE/CABLES , SORTED, WOOL OR FINE ANIMAL HAIR 6310.10.2010 8.50 KG RAGS/SCRAP/TWINE/CORDAGE/ROPE/CABLES

, SORTED, COTTON 6310.10.2020 14.40 KG RAGS/SCRAP/TWINE/CORDAGE/ROPE/CABLES , SORTED, MMF 6310.10.2030 11.10 KG RAGS/SCRAP/TWINE/CORDAGE/ROPE/CABLES , SORTED, NOT COTTON/MMF 6310.90.1000 3.70 KG RAGS/SCRAP/TWINE/CORDAGE/ROPE/CABLES , NOT SORTED, WOOL OR FINE ANIMAL HAIR 6310.90.2000 8.50 KG RAGS/SCRAP/TWINE/CORDAGE/ROPE/CABLES , NOT SORTED, NOT WOOL 6501.00.30 4.4 DZ HAT FORMS/BODIES, NOT BLOCKED, NO BRIMS, FUR, MENS' AND BOY'S 6501.00.60 4.4 DZ HAT FORMS/BODIES, NOT BLOCKED, NO BRIMS, FUR, WOMENS' AND GIRL'S 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 STRPS, VEG FIB, NOT-SEWED, NOT BL/COL 6502.00.60 18.7 DZ HAT SHAPES, PLAITED OR ASSEMBLED FROM STRIPS, VEG FIB, NOT-SEWED, BL/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 category 666 shall be No and shall be converted into square meters equivalent by the factor of 5.5. 6301.10.0000 6301.40.0010 WOVEN 6301.40.0020 6301.90.0010 6302.10.0020 6302.22.1030 6302.22.1040 6302.22.1050 6302.22.1060 6302.22.2020 6302.22.2030 6302.32.1030 6302.32.1040 6302.32.1050 6302.32.1060 6302.32.2030 6302.32.2040 6302.32.2050 6302.32.2060 6304.11.2000 ELECTRIC BLANKETS BLANKET (NOT ELECTRIC) & TRAVEL RUGS OF SYNTH FIBER, BLANKETS (NOT ELECTRIC) & TRAVEL RUGS OF SYNTH FIBER, NES BLANKETS AND TRAVELING RUGS OF ARTIFICIAL FIBER BED LINEN, KNITTED OR CROCHETED FABRIC, EXCLUDING COTTON SHEETS WITH TRIM, NAPPED, PRINTED, MANMADE FIBER SHEETS WITH TRIM, NOT NAPPED, PRINTED, MANMADE FIBER BOLSTER CASES WITH TRIM, PRINTED, MANMADE FIBER BED LINEN WITH TRIM, PRINTED, MANMADE FIBER, NES SHEETS, NOT TRIMMED, PRINTED, MANMADE FIBER BED LINEN, NOT TRIMMED, PRINTED, MANMADE FIBER, NES SHEETS WITH TRIM, NAPPED, MANMADE FIBER SHEETS WITH TRIM, NOT NAPPED, MANMADE FIBER BOLSTER CASES WITH TRIM, MANMADE FIBER BED LINEN WITH TRIM, MANMADE FIBER, NES SHEETS, NOT TRIMMED, NAPPED, MANMADE FIBER SHEETS NOT TRIMMED, NOT NAPPED, MANMADE FIBER BOLSTER CASES, NOT TRIMMED, MANMADE FIBER BED LINEN NES, MANMADE FIBER BEDSPREADS, KNIT/CROCHETED, MANMADE FIBER

6304.19.1500 6304.19.2000

BEDSPREAD WITH TRIM, MANMADE FIBER, NES BEDSPREAD, MANMADE FIBER, NES

(b) The primary unit of measure for the following tariff items in category 666 shall be No and shall be converted into square meters equivalent by the factor of 0.9. 6302.22.1010 6302.22.1020 6302.22.2010 6302.32.1010 6302.32.1020 6302.32.2010 6302.32.2020 PILLOWCASES WITH TRIM, PRINTED, NAPPED, MANMADE FIBER PILLOWCASES WITH TRIM, PRINTED, NOT NAPPED, MANMADE FIBER PILLOWCASES, NOT TRIMMED, PRINTED, MANMADE FIBER PILLOWCASES WITH TRIM, NAPPED, MANMADE FIBER PILLOWCASES WITH TRIM, NOT NAPPED, MANMADE FIBER PILLOWCASES, NOT TRIMMED, NAPPED, MANMADE FIBER PILLOWCASES NOT TRIMMED, NOT NAPPED, MANMADE FIBER

6. The primary unit of measure for garment parts of subheading 6117.90 and 6217.90 of the HS shall be Kg and shall be converted into square meters equivalent 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

7. The following abbreviations are used herein for primary units of measure: Kg means kilogram; SM means square meter; Dz means dozen; Dpr means dozen pair; and No means number. ======================================================================= ====== APPENDIX 5.2 Bilateral Emergency Actions (Quantitative Restrictions) 1. Section 5 shall not supersede Article 407 of the CanadaUnited States Free Trade Agreement, which is hereby incorporated into and made a part of this Agreement solely for such purpose. ======================================================================= ====== APPENDIX 6.0 A. Rules Applicable to Certain Carpets and Sweaters

For purposes of trade between the United States and Mexico, a good of either Party of Chapter 57 or subheading 6110.30 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, 53.07 through 53.08, 53.11, or any headings of Chapter 54 or 55; 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, 53.07 through 53.08, 53.11, any heading of Chapter 54, or 55.08 through 55.16; (b) a change to 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 goods of those tariff items that are classified as parts of ensembles in tariff item 6103.23.00.30, 6103.23.00.70, 6104.23.00.22 or 6104.23.00.40 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 goods are both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the Parties; 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 goods are 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 as set out in Appendix 2.1, up to the annual quantities specified in Schedule 6.0.1, in square meters equivalent (SME), to apparel goods provided for in Chapters 61 and 62 of the HS 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 of Appendix 3.1. (b) The annual tariff preference levels 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: (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 as set out in Appendix 2.1, up to the annual quantity specified in Schedule 6.0.1, to textile or apparel goods provided for in Chapters 61, 62 and 63 of the HS 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 provision shall terminate on the day that quantitative restrictions established pursuant to the Multifiber Arrangement or successor arrangement are terminated. Exceptions 3. (a) Apparel goods provided for in Chapters 61 and 62 of the HS, in which the fabric that imparts to the good its essential character is classified in one of the following U.S. tariff provisions, shall be ineligible for preferential tariff treatment provided for under the levels established in Schedule 6.0.1. for trade between the United States and Mexico: (i) blue denim: 5514.32.00.10; and 5209.42, 5211.42, 5212.24.60.20, and

(ii) 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. (b) Apparel goods provided for in subheadings 6107.11 and 6109.10 shall be ineligible for preferential tariff treatment provided for under the levels established in Schedule 6.0.1 between the United States and Mexico if they are composed chiefly of circular knit fabric of yarn number equal to or less than 100 metric number. (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 tariff items 6103.23.00.30, 6103.23.00.70, 6104.23.00.22 and 6104.23.00.40 shall be ineligible for preferential tariff treatment provided for under the levels established in Schedule 6.0.1 between the United States and Mexico. Fabric and Made-up Goods 4. (a) Each Party shall apply the rate of duty applicable to originating goods as set out in Appendix 2.1, up to the annual quantities specified in Schedule 6.0.2, in square meters equivalent (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 of the HS 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 that meet other applicable conditions for preferred tariff treatment under this Agreement. The SME shall be determined in accordance with the conversion factors setout in Schedule 3.1.3 of Appendix 3.1. (b) The annual tariff preference level 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 square meters equivalent that will be counted against the tariff preference levels applied to trade between Canada and the United States shall be: (a) for textile goods that do not originate because certain non-originating textile materials do not undergo the applicable change in tariff classification described in Annex 401.1 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 square meters equivalent for that good, determined in accordance with the conversion factors set out in Schedule 3.1.3 of Appendix 3.1; and (b) for textile goods that do not originate because certain non-originating textile materials do not undergo the applicable change in tariff classification described in Annex 401.1 for that good, but where such materials are more than 50 percent by weight of the materials of that good, 100 percent of the square meters equivalent for that good, determined in accordance with the conversion factors set out in Schedule 3.1.3 of Appendix 3.1. Spun Yarn 6. (a) Each Party shall apply the rate of duty applicable to originating goods as set out in Appendix 2.1, up to the annual quantities specified in Schedule 6.0.3, in kilograms (kg), to cotton or man-made fiber yarns provided for in headings 5205 through 5207 or 5509 through 5511 that are spun in a Party from fiber of headings 5201 through 5203 or 5501 through 5507, produced or obtained outside the free trade area and that meet other applicable conditions for preferred tariff treatment under this Agreement. (b) The annual tariff preference level 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 a Party under paragraphs 1, 2, 4, and 6 shall not be considered to be originating goods. Review and Consultations 8. (a) Trade in the goods described in paragraphs 1, 2, 4, and 6 shall be monitored by the Parties with a view to adjusting annual tariff preference levels for imports into Canada from Mexico and the United States, imports into Mexico from Canada and the United States, and imports into the United States from Mexico at the request of a Party based on the ability to obtain supplies of particular fibers, yarns and fabrics, as appropriate, that can be used to produce originating goods. Any adjustment in the tariff preference level would require the mutual consent of the affected Parties. (b) The United States and Canada will decide, in consultations as provided for in paragraph 3 of Section 7, whether to continue to apply annual growth factors to the specified tariff preference levels following the five consecutive years. If a growth factor for a tariff preference level is not continued as a result of the consultations provided for in paragraph 3 of Section 7, the provisions of subparagraph (a) shall also apply to imports from Canada into the United States of goods covered by the tariff preference level. ======================================================================= ====== Schedule 6.0.1 Preferential Tariff Treatment for Non-Originating Apparel and Made-Up Goods

Imports into Canada: Cotton/Manmade apparel apparel From Mexico 6,000,000 SME Wool fiber

From United States

250,000 SME

9,000,000 SME 919,740 SME Imports into Mexico: Cotton/Manmade apparel apparel From Canada 6,000,000 SME From United States 250,000 SME Wool fiber

12,000,000 SME 1,000,000 SME Imports into United States: made apparel apparel under item 9802.00.80.60 From Canada 80,000,000 SME 5,066,948 SME Goods imported U.S. tariff Cotton/Manfiber Wool

n/a From Mexico 45,000,000 SME 1,500,000 SME 25,000,000 SME ======================================================================= ====== Schedule 6.0.2 Preferential Tariff Treatment for Non-Originating Fabric and Made-Up Goods

Imports into Canada From Mexico 7,000,000 SME From United States 2,000,000 SME Imports into Mexico From Canada From United States 7,000,000 SME 2,000,000 SME Imports into United States From Canada From Mexico 65,000,000 SME 24,000,000 SME ======================================================================= ====== Schedule 6.0.3 Preferential Tariff Treatment for Non-Originating

Spun Yarn

Imports into Canada From Mexico 1,000,000 kg From United States 1,000,000 kg Imports into Mexico From Canada From United States 1,000,000 kg 1,000,000 kg Imports into United States From Canada From Mexico 10,700,000 kg 1,000,000 kg ======================================================================= ====== 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.

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 provided that: (a) the good is wholly obtained or produced 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 described in Annex 401.1 as a result of production occurring entirely in the territory of one or more of the Parties, 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) with the exception of 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 parts 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 tariff heading for the good provides for both the good itself and its parts and is not further subdivided into subheadings, or the tariff subheading for the good provides for both the good itself and its parts, provided that the good is the good specifically described by the nomenclature of the heading or subheading and 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 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 described in paragraph 2 or the net cost method described in paragraph 3. 2. The regional value content of a good, where calculated on the basis of the transaction value method, shall be determined as follows: TV - VNM RVC = --------- x 100 TV where: RVC is the regional value content, expressed as a percentage; TV and is the transaction value of the good;

VNM is the value of non-originating materials used by the producer in the production of the good. 3. The regional value content of a good, where calculated on the basis of the net cost method, shall be determined as follows: 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. For purposes of paragraphs 2 and 3, and except as provided in Articles 403(1) and 403(2)(a)(i), the value of non-originating materials used by the producer in the production of the good shall not include the value of non-originating materials used to produce originating materials that are subsequently used in the production of the good. 5. The regional value content of a good shall be calculated solely on the basis of the net cost method described 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 with respect to such goods; (d) the good is (i) identified in Article 403(1) or 403(2), (ii) provided for in headings 64.01 through 64.05, or (iii) provided for in tariff item 8469.10.a1 (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 has been designated as an intermediate material under paragraph 10 and is subject to a regional value-content requirement. 6. If an exporter or producer calculates the regional value content of a good using the transaction value method described 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, or both, is required to be adjusted or is unacceptable under Article 1 of the Customs Valuation Code, the exporter or producer of the good may then calculate the regional value content of the good using the net cost method described in paragraph 3. 7. Nothing in paragraph 6 shall be construed to preclude a review and appeal, pursuant to Chapter Five (Customs Procedures), of an adjustment or rejection of a transaction value for a good or the value of any material used in the production of the good, or both. 8. For purposes of calculating the net cost of a good pursuant to paragraph 3, the producer of the good may use any one of the following methods: (a) calculate the total cost incurred with respect to all goods produced by that producer minus any sales promotion, marketing and after-sales service costs, royalties, shipping and packing costs, and nonallowable interest costs that are included in the total cost of all goods and then reasonably allocate the resulting net cost of those goods to the good; (b) reasonably allocate the total cost incurred with respect to all goods produced by that producer to the good minus any sales promotion, marketing and aftersales service costs, royalties, shipping and packing costs and non-allowable interest costs that are included in the portion of the total cost allocated to the good; or (c) reasonably allocate the individual costs that are 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 nonallowable interest costs, provided that the allocation of all such costs are consistent with the provisions regarding the reasonable allocation of costs set out in the Uniform Regulations. 9. With the exception of an intermediate material described in paragraph 10 and except as provided in Article 403(1) and

(2)(a)(i), the value of a material used in the production of a good shall be: (a) the price actually paid or payable by the producer for the material, provided that the price is acceptable under Article 1 of the Customs Valuation Code; or (b) if the price actually paid or payable is unacceptable under Article 1 of the Customs Valuation Code, the value shall be determined in accordance with the other Articles of the Customs Valuation Code; and (c) when not included under subparagraph (a) or (b) (i) freight, insurance, packing and all other costs incurred in transporting such materials to the location of the producer, (ii) duties, taxes and customs brokerage fees on such materials paid in the territory of one or more of the Parties, (iii) the cost of waste and spoilage resulting from the use or consumption, or both, of such materials, less the value of renewable scrap or by-product, and (iv) the value of goods and services relating to such materials determined in accordance with subparagraph 1(b) of Article 8 of the Customs Valuation Code. 10. Except as provided in Article 403, the producer of a good may designate any self-produced material used in the production of the good as an intermediate material, provided that, when the intermediate material is subject to a regional value-content requirement, no other intermediate material subject to a regional value-content requirement is used in the production of that intermediate material. 11. For purposes of determining the value of an intermediate material, the producer of the intermediate material may use either of the following methods: (a) calculate the total cost incurred with respect to all goods produced by that producer and then reasonably allocate the resulting cost to the intermediate material; or (b) reasonably allocate to the intermediate material the individual costs that are part of the total cost incurred with respect to that intermediate material. Article 403: Automotive Goods 1. Where applying the net cost method under Article 402(3) for

purposes of calculating the regional value content of any one of the following goods: (a) a motor vehicle provided for in subheadings 8702.xx (vehicles for the transport of 15 or fewer persons), 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 subheadings 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 customs values of non-originating materials imported from outside the territories of the Parties under the tariff provisions listed in Annex 403.1. 2. (a) Where applying the net cost method under Article 402(3) with respect to a good identified in subparagraph (b), the producer of the good shall include in the value of non-originating materials used by the producer in the production of the good the sum of (i) for each material used by the producer that is listed in Annex 403.2, at the choice of the producer, either (A) the value of such material that is nonoriginating, or (B) the value of non-originating materials used in the production of such material, and (ii) the value of any non-originating material used by the producer that is not in listed in Annex 403.2. (b) Subparagraph (a) shall apply to the following goods (i) a motor vehicle provided for in heading 8701 or subheading 8702.yy (vehicles for the transport of 16 or more persons), (ii) a motor vehicle provided for in subheadings 8704.10, 8704.22, 8704.23, 8704.32 or 8704.90, (iii) a motor vehicle provided for in headings 8705 or 8706, and (iv) any of the components identified in Annex 403.2 for use in such motor vehicles. 3. A producer may designate a self-produced material used in the production of any material listed in Annex 403.2 as an

intermediate material, provided that, when the intermediate material is subject to a regional value-content requirement, no other intermediate material subject to a regional value-content requirement is used in the production of that intermediate material. 4. In calculating the regional value content of a motor vehicle described in paragraphs 1 and 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) the basis described in Annex 403.4. 5. In calculating the regional value content for any or all goods provided for in a tariff provision listed in Annex 403.1 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, or over any quarter or month, or (ii) over its fiscal year, if the good is sold as an after-market part; (b) calculate the average referred to in subparagraph (a) separately for any or all goods sold to one or more motor vehicle producers; and (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. 6. Notwithstanding Annex 401.1,

(a) the regional value-content requirement shall be, for a producer's fiscal year beginning nearest to January 1, 1998 and thereafter, 56 percent under the net cost method, and for a producers's fiscal year beginning nearest to January 1, 2002 and thereafter, 62.5 percent under the net cost method, for the following (i) a motor vehicle provided for in subheading 8702.xx (vehicles for the transport of 15 or fewer

persons), 8703.21 through 8703.90, 8704.21 or 8704.31, and (ii) a good provided for in heading 8407 or 8408 or subheading 8708.40 which is for use as original equipment in the production of a motor vehicle identified in subparagraph (a)(i); and (b) the regional value-content requirement shall be, for a producer's fiscal year beginning nearest to January 1, 1998 and thereafter, 55 percent under the net cost method, and for a motor vehicle producers's fiscal year beginning nearest to January 1, 2002 and thereafter, 60 percent under the net cost method, for the following (i) a motor vehicle provided for in heading 8701, subheadings 8702.yy (vehicles for the transport of 16 or more persons), 8704.10, 8704.22, 8704.23, 8704.32 and 8704.90, and heading 8705 or 8706, (ii) a good provided for in heading 8407 or 8408 or subheading 8708.40 which is for use as original equipment in the production of a motor vehicle identified in subparagraph (b)(i), and (iii) except for a good identified in subparagraph (a)(ii) or provided for in subheadings 8482.10 through 8482.80 or subheadings 8483.10 through 8483.40, a good identified in Annex 403.1 which is for use as original equipment in the production of a motor vehicle identified in subparagraphs (a)(i) or (b)(i). 7. Notwithstanding paragraph 6,

(a) the regional value content of a motor vehicle referred to in Article 403(1) or 403(2) shall not be less than 50 percent for a period of five years from the date on which the first motor vehicle prototype is produced in a plant by a motor vehicle assembler, provided that (i) it is a motor vehicle of a class, or marque, or, for a motor vehicle identified in Article 403(1)(a), size 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; (b) the regional value content of a motor vehicle referred to in Article 403(1) or 403(2) shall not be less than

50 percent for a period of two years from the date on which the first motor vehicle prototype is produced at a plant following a refit, provided that it is a different motor vehicle of a class, or marque, or, for a motor vehicle identified in Article 403(1)(a), size and underbody, than was assembled by the motor vehicle assembler in the plant before the refit; and (c) for the purposes of subparagraphs (a) and (b) sizes means in the case of a motor vehicle identified in Article 403(1)(a) (i) minicompacts -- less than 85 cubic feet of passenger and luggage volume, (ii) subcompacts -- between 85 and 100 cubic feet of passenger and luggage volume, (iii) compacts -- between 100 and 110 cubic feet of passenger and luggage volume, (iv) midsize -- between 110 and 120 cubic feet of passenger and luggage volume, and (v) large -- between 120 or more cubic feet of passenger and luggage volume. Article 404: Accumulation 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, be considered to have been performed in the territory of a Party by that exporter or producer, provided that: (a) the applicable tariff classification change has occurred, or the regional value-content requirement has been satisfied, or both, entirely in the territory of one or more of the Parties; (b) the good satisfies all other applicable requirements of this Chapter; and (c) the production of the producer that chooses to accumulate its production with that of other producers is deemed to be the production of a single producer for purposes of Article 402(10). Article 405: De Minimis 1. Notwithstanding Article 401(b), 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 the applicable change in tariff classification is not more than seven percent of the transaction value of the good or, if the

transaction value of the good is unacceptable under Article 1 of the Customs Valuation Code, 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 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 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. Paragraphs 1 and 2 shall not apply to:

(a) a material provided for in Chapter 4 of the Harmonized System or tariff item 1901.90.a1 (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 material provided for in Chapter 4 of the Harmonized System or tariff item 1901.90.a1 (dairy preparations containing over 10 percent by weight of milk solids) that is used in the production of a good provided for in heading 21.05, subheading 2202.90, or tariff items 1901.10.a1 (infant preparations containing over 10 percent by weight of milk solids), 1901.20.a1 (mixes and doughs, containing over 25 percent by weight of butterfat, not put up for retail sale), 1901.90.a1 (dairy preparations containing over 10 percent by weight of milk solids), 2106.90.a4 (preparations containing over 10 percent by weight of milk solids) or 2309.90.a1 (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 material provided for in heading 17.01 that is used in the production of a good provided for in headings 17.01 through 17.03; (d) a material provided for in Chapter 15 of the Harmonized System that is used in the production of a good provided for in headings 15.01 through 15.08, 15.12, 15.14 or 15.15; (e) a material provided for in heading 08.05 and subheadings 2009.11 through 2009.30 that is used in the

production of a good provided for in subheadings 2009.11 through 2009.30 or tariff item 2106.90.a2 (concentrated fruit or vegetable juice of any single fruit or vegetable, fortified with minerals or vitamins) or 2202.90.a1 (fruit or vegetable juice of any single fruit or vegetable, fortified with minerals or vitamins); and (f) a material provided for in headings 22.03 through 22.08 that is used in the production of a good provided for in headings 22.07 through 22.08. 4. Paragraph 1 shall not apply for purposes of calculating the volume or weight of: (a) a non-originating material of Chapter 17 of the Harmonized System or heading 18.05 that are used in the production of a good provided for in subheading 1806.10; (b) a non-originating material of Chapter 9 of the Harmonized System that is used in the production of a good provided for in tariff item 2101.10.a1 (instant coffee, not flavored); and (c) a non-originating material of heading 20.09 that is used in the production of a good provided for in subheading 2009.90, or 2106.90.a3 (concentrated mixtures of fruit or vegetable juice, fortified with minerals or vitamins) 2202.90.a2 (mixtures of fruit or vegetable juices, fortified with minerals or vitamins). 5. A good of Chapters 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 gives the good its essential character do not undergo the applicable change in tariff classification described in Annex 401.1 for the good, shall nonetheless be considered to originate if the weight of all such fibers or yarns in the good is not more than seven percent of the weight of that component. 6. Paragraphs 1 and 2 shall not apply to a good of Chapters 1 through 44 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. 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 origin of the materials need not be determined through the identification of any specific fungible material, but may be determined on the basis of any of the

inventory management methods provided for in the Uniform Regulations; and (b) where originating and non-originating fungible goods are commingled and exported in the same form, the origin of the good may be determined on the basis of any of the inventory management methods provided for in the Uniform Regulations. Article 407: Accessories, Spare Parts, or Tools For purposes of determining whether a good, is an originating good, 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 one with the good and shall be disregarded in determining whether all the nonoriginating materials used in the production of the good undergo the applicable change in tariff classification described in Annex 401.1, 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 either originating or non-originating materials 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 as one with the good, be disregarded in determining whether all the nonoriginating materials used in the production of the good undergo the applicable change in tariff classification described in Annex 401.1, 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 in calculating the regional value content of the good. Article 410: Packing Materials and Containers for Shipment For the purpose of determining whether a good is an originating good, 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 the applicable change in tariff classification described in Annex 401.1; 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 virtue 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 virtue of having undergone: (a) mere dilution with water or another substance that does not materially alter the characteristics of the good; or (b) any process, work or pricing practice, or any combination thereof, in respect of which it is demonstrated, on the basis of a preponderance of evidence, that the object was to circumvent the provisions of this Chapter. Article 413: Interpretation For purposes of this Chapter, the following rules of interpretation shall apply: (a) the basis for tariff classification in Article 401 is the Harmonized System; (b) a more specific rule in Annex 401.1 shall take precedence over a general requirement under Article 401; (c) for purposes of applying Article 401(d), when determining whether a tariff heading or subheading provides for both a good and its parts, reference shall be made both to the nomenclature of the heading or subheading and to any legal note provided in the Harmonized System;

(d) the principles of the Customs Valuation Code shall apply to domestic transactions as well as international transactions; (e) in the event of any inconsistency between the provisions of this Chapter and the Customs Valuation Code, the provisions of this Chapter shall prevail to the extent of the inconsistency; (f) in applying Customs Valuation Code under this Chapter, the definitions in Article 415 shall take precedence over the definitions of the Customs Valuation Code to the extent of any difference; and (g) all costs referred to in this Chapter shall be recorded and maintained in accordance with the Generally Accepted Accounting Principles in the territory of the Party in which the good is produced. Article 414: Consultation and Revision 1. The Parties shall consult regularly to ensure that the provisions of this Chapter are administered effectively, uniformly and consistently with the spirit and intent of this Agreement, and shall cooperate in the administration of the provisions of this Chapter in accordance with the provisions of Chapter Five (Customs Procedures). 2. If any Party concludes that the provisions of this Chapter require revision to take into account developments in production processes or other matters, the proposed revision along with supporting rationale and any studies shall be submitted to the other Parties for consideration and any appropriate action pursuant to Chapter Five (Customs Procedures). 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 subheadings 8701.20 and 8702.yy (vehicles for the transport of 16 or more persons), subheadings 8704.22, 8704.23, 8704.32 and 8704.90, and headings 87.05 and 87.06; (b) motor vehicles provided for in subheadings 8701.10 and 8701.30 through 8701.90; (c) motor vehicles provided for in subheadings 8702.xx (vehicles for the transport of 15 or fewer persons) and 8704.21 and 8704.31; or

(d) motor vehicles provided for in subheadings 8703.21 through 8703.90; customs value means the value of a good for the purposes of levying duties of customs on an imported good; 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; identical or similar goods has the same meaning as prescribed for identical goods and similar goods, respectively, 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 used in the maintenance or operation of equipment or buildings 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 by labor or used to operate equipment and buildings, or both; (e) gloves, glasses, footwear, clothing, safety equipment and supplies; (f) equipment, other 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; marque means the trade name used by a separate marketing division of a motor vehicle assembler; material means a good, other than an indirect material, that is used in the production of another good; 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 new construction, including at least the pouring or construction of new foundations and floors, erection of new structure and roof, and installation of new plumbing, electrical and other utilities to house the complete vehicle assembly process (need definition of 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 the good using one of the methods set forth in Article 402 (8) (a); non-allowable interest costs means interest costs actually incurred by the producer in excess of the applicable federal government rate identified in the Uniform Regulations for comparable maturities, plus seven percentage points; non-originating good or non-originating material means a good or material that has not satisfied the rule of origin applicable to the good or material under this Chapter; producer means a person who grows, mines, harvests, manufactures, processes or assembles a good, or any combination thereof; production means growing, mining, harvesting, manufacturing, processing or assembling a good, or any combination thereof; reasonably allocate means to apportion in a manner appropriate to the circumstances; refit means a plant closure for the purposes of plant conversion or retooling that lasts at least three months; related person means persons who are related only if: (a) they are officers or directors of one another's business; (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 per cent or more of the outstanding voting stock or shares of both 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 and 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 aftersales 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 (e.g., 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 customer 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 aftersales service of goods on the financial statements or cost accounts of the producer; and (j) payments by the producer to other persons for warranty repairs; self-produced material means a material that is produced by the producer of the good; shipping and packing costs means the costs incurred in packing the 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; 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 of a good actually paid or payable to the producer of the good, adjusted to a F.O.B. basis and in accordance with the principles of paragraphs 1, 3 and 4 of Article 8 of the Customs Valuation Code; used means used or consumed, or both, in the production of goods; and wholly obtained or produced in the territory of one or more of the Parties means goods that are: (a) mineral goods extracted in the territory of one or more of the Parties; (b) goods 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 (fish, shellfish and other marine life) taken from the sea by vessels registered or recorded with a Party and flying its flag;

(e) goods produced on board factory ships from the goods referred to in subparagraph (d) provided such factory ships are registered or recorded with that Party and fly its flag; (f) 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; (g) 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; and (h) waste and scrap derived from (i) production in the territory of one or more of the Parties, (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, or (iii) goods produced in the territory of one or more of the Parties exclusively from goods referred to in subparagraphs (a) through (h) inclusive or from their derivatives, at any stage of production. ======================================================================= ====== ANNEX 403.1 List of Tariff Provisions for Article 403(1) INTERIM NOTE: The nomenclature that follows the tariff provisions is for illustrative purposes only. 4009 (tubes, pipes and hoses) 4010.10 (rubber belts) 4011 (tires) 4016.93 (rubber, gaskets, washers and other seals) 4016.99.15.xx (seals) 7007.11 and 7007.21 (laminated safety glass) 7009.10 (mirrors) 8301.20 (locks) 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.xx (engines of a cylinder capacity exceeding 1000 cc but not exceeding 2,000 cc); 8407.34.yy (engines of a cylinder capacity exceeding 2000 cc) 8408 (diesel engines)

8409 (parts of engines) 8413.30 (pumps) 8414.59 (turbochargers and supercharges) 8415.81 through 8415.83 (air conditioners) 8481.20, 8481.30 and 8481.80 (valves) 8482.10 through 8482.80 (ball bearings) 8483.10 through 8483.40 (transmission shafts) 8483.50 (flywheels) 8501.10 (electric motors) 8501.20 (electric motors) 8501.31 (electric motors) 8501.32.xx (electric motors that provide primary source for electric powered vehicles of subheading 8703.90) 8507.10.xx, 8507.30.xx, 8507.40.xx and 8507.80.xx (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 (cassette players combined with radios) 8527.29 (radios) 8536.50 (switches) 8536.90 (junction boxes) 8537.10.99.10 (U.S. tariff provision 8537.10.00.40) (motor control centres) 8539.10 (seal beamed headlamps) 8539.21 (tungsten halogen headlamps) 8544.30 (wire harnesses) 8706 (chassis) 8707 (bodies) 8708.10.xx (bumpers but not parts thereof) 8708.21 (safety seat belts) 8708.29.99.10 (U.S. tariff provision 8708.29.00.10) (body stampings) 8708.29.xx (inflators and modules for airbags) 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.xx (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.xx (clutches, but not parts thereof) 8708.94 (steering wheels, steering columns and steering boxes) 8708.99.50.xx (airbags) 8708.99.81 (catalytic convertors) 8708.99.99.11 (half-shafts and drive shafts) 8708.99.99.19 (other parts for powertrains) 8708.99.99.20 (parts for suspension systems) 8708.99.99.49 (parts for steering systems) 8708.99.xx (other parts not included above) 9031.80 (monitoring devices) 9031.80.xx (electronic diagnostics for air bag systems)

9032.89 (automatic regulating instruments) 9401.20 (seats) ======================================================================= ====== ANNEX 403.2 List of Components and Materials for Article 403(2) 1. Component: Engines of heading 8407 or 8408 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) 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 403.4 Regional Value-Content Calculation for CAMI 1. For purposes of Article 403, when determining the origin of motor vehicles produced in the territory of Canada and imported into the territory of the United States, CAMI Automotive, Inc. ("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 a fiscal year that corresponds most closely to CAMI's fiscal year, provided that: (a) 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., and any subsidiary directly or indirectly owned by any of them, or by any combination thereof, ("GM") acquires 75 percent (75 percent) or more by unit of the class of motor vehicles or model line of motor vehicles, as the case may be, that CAMI Automotive Inc. 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 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 described in paragraph 1 only those motor vehicles that are acquired by GM for distribution under the GEO marque or other GM marque. 3. In calculating the regional value content of motor vehicles produced by CAMI in the territory of Canada, CAMI may choose to average the calculation in paragraph 1 or 2 over a period of two fiscal years in the event that any motor vehicle assembly plant operated by CAMI or any motor vehicle assembly plant operated by General Motors of Canada Limited with which CAMI is averaging its regional value content is closed for more than two consecutive months: (a) for the purpose of 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 labour strike, lock-out, labour 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. Such averaging may be for CAMI's fiscal year in which a CAMI or the 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 year, the averaging may be only for those two fiscal years. 4. For the purposes of this Article, where by virtue 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 the same person and a continuation of GM from which it acquired the assets.

Chapter Five Customs Procedures

Subchapter A - Certification of Origin Article 501: Certificate of Origin 1. Upon the date of entry into force of this Agreement, the Parties shall establish 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 provide that a Certificate of Origin for a good imported into its territory be completed in a language required under its laws or regulations. 3. Each Party shall provide that:

(a) an exporter in its territory shall complete and sign a Certificate of Origin for any exportation of a good for which an importer may claim preferential tariff treatment upon importation of the good into the territory of another Party; and (b) where an exporter in its territory is not the producer of the good, such exporter may complete and sign a Certificate on the basis of (i) its knowledge of whether the good qualifies as an originating good, (ii) reasonable reliance upon 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:

(a) 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 (i) a single importation of a good into its territory, or (ii) multiple importations of identical goods imported into its territory within any specified period, not exceeding 12 months, set out therein by the exporter or producer, shall be accepted by its customs administration for a period of four years after the date on which the Certificate was signed; and (b) require an exporter or a producer in its territory that completes and signs a Certificate pursuant to subparagraph (a) to notify in writing all persons to whom such Certificate was given of any change that could affect its accuracy or validity. Article 502: Obligations Regarding Importations 1. Except as otherwise provided in this Chapter, each Party, with respect to an importer in its territory that claims preferential tariff treatment for a good imported into its territory from the territory of another Party, shall provide that:

(a) the importer shall make a written declaration, based on a valid Certificate of Origin, that the good qualifies as an originating good; (b) the importer shall have the Certificate in its possession at the time such declaration is made; (c) the importer shall provide, upon the request of that Party's customs administration, a copy of the Certificate; (d) if the importer fails to comply with any requirement set out in this Chapter, that Party may deny preferential tariff treatment to the good; (e) the importer, where the importer has reason to believe that a Certificate on which a declaration was based contains information that is not correct, shall promptly make a corrected declaration and pay any duties owing; and (f) the importer, who voluntarily makes a corrected declaration pursuant to subparagraph (e), shall not be subject to penalties for the making of an incorrect declaration. 2. 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, within one year of 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, upon presentation of: (a) a written declaration that the good qualifies as an originating good at the time of importation; (b) a copy of the Certificate of Origin to the same effect; 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 the amount of (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 such importation include a statement certifying that such goods qualify as

originating goods; (b) a non-commercial importation of a good whose value does not exceed the amount of (US)$1000 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 such 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 set out in Articles 501 and 502. Article 504: Obligations Regarding Exportations Each Party shall provide that: (a) upon the request of its customs administration, an exporter in its territory, or a producer in its territory that has provided a copy of a Certificate of Origin to such exporter pursuant to Article 501(3)(b)(iii), shall provide a copy of the Certificate to its customs administration; (b) 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 with respect to a contravention of its customs laws and regulations regarding the making of a false statement or representation; (c) where an exporter or a producer in its territory fails to comply with any of the requirements set out in this Chapter, it may apply such measures as the circumstances may warrant; (d) 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 of any change that could affect the accuracy or validity of the Certificate; and (e) an exporter or a producer who voluntarily provides written notification pursuant to subparagraph (d) shall not be subject to penalties with respect to the making of an incorrect certification.

Subchapter B - Administration and Enforcement Article 505: Records 1. 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 a period of five years from the date the Certificate was signed or for such longer period as such 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, and (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 a period of five years from the date of importation of the good or for such longer period as the Party may specify, a copy of the Certificate and all other required documentation 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 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 such visit; (i) to the exporter or producer whose premises are to be visited, (ii) to the customs administration of the Party in whose territory the visit is to occur, and (iii) to, if requested by the Party in whose territory the visit is to occur, the embassy of such 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 subject to 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, it may, within 15 days from the date of receipt of such 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 otherwise 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 such visit, provided that: (a) the observers do not participate in a manner other than as observers; and (b) the failure of such 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 subject to 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, such Party may withhold preferential tariff treatment to identical goods exported or produced by such person until that person establishes compliance with the provisions of 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 customs value applied by the Party to one or more materials used in the production of the good, which differs from the tariff classification or customs value applied to such 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, provided that: (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 customs value of such materials, or has given consistent treatment to the entry of such materials under the tariff classification or customs 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. Where 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, provided that 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 customs 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 laws and regulations, the confidentiality of confidential business information collected pursuant to this Chapter and shall protect that business 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(1)(d) and (f), 504(e) and 506(6) shall be construed to prevent a Party from applying such measures as the circumstances may warrant. Subchapter 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 the territory of a nonParty undergo, as a result of production in the territory of one or more of the Parties, the applicable change in tariff classification under Chapter Four (Rules of Origin) to qualify as an originating good;

(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) the appropriate basis or method for customs 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, in calculating the transaction value of a good, or the value of materials used in the production of a good, for which an advance ruling is requested, for the purpose of determining whether the good satisfies a regional value-content requirement under Chapter Four; (d) 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 a good, or the value of an intermediate material, for which an advance ruling is requested, for the purposes of determining whether the good satisfies a regional value-content requirement under Chapter Four; (e) 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); (f) whether the proposed or actual marking of a good satisfies country of origin marking requirements under Article 312 (Country of Origin Marking); or (g) whether a good to be imported qualifies as a good of a Party under Annexes 300-B or 302.2. 2. Each Party shall provide that an advance ruling issued pursuant to paragraph 1 shall be based on: (a) for the purpose of determining the origin of a good, Chapter Four (Rules of Origin), the principles of the Customs Valuation Code and the Uniform Regulations; (b) for the purpose of determining country of origin marking, Article 312 (Country of Origin Marking); and (c) for the purpose of determining whether a good qualifies as a good of a Party, Annex 302.2. 3. 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. 4. 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) after it has obtained all necessary information from the person requesting an advance ruling, shall issue the ruling in accordance with the time periods specified in the Uniform Regulations; and (c) where the advance ruling is unfavorable to the person requesting it, shall provide that person with a full explanation of the reasons for the ruling. 5. Subject to paragraph 7, each Party shall apply an advance ruling to importations into its territory of the good for which the ruling was requested, commencing on the date of its issuance or such later date as may be specified therein. 6. Each Party shall provide to any person requesting an advance ruling the same treatment, including the same interpretation and application of the provisions of Chapter Four (Rules of Origin) regarding a determination of origin of a good, 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. 7. 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 the materials subject to the ruling, (iii) in the application of a regional valuecontent requirement under Chapter Four (Rules of Origin), or (iv) in the application of the rules for determining whether a good qualifies as a good of a Party under Annexes 300-B or 302.2; (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) and Chapter Four (Rules of Origin); (c) if there is a change in the material facts or circumstances on which the ruling is based; (d) to conform with an amendment of Chapter Three, Chapter Four, Marking Rules or Uniform Regulations; or (e) to conform with a judicial decision or a change in its domestic law.

8. 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. 9. Notwithstanding paragraph 8, 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 in good faith relied to its detriment on that ruling. 10. 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 with respect to an approved basis or method of customs value under Article 509(1)(c), or with respect to an approved basis or method for reasonably allocating costs under Article 509(1)(d), or with respect to whether a good qualifies for duty-free treatment under Article 509(1)(e), it may 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 upon which the advance ruling is based; and (c) the supporting data and computations used in applying the basis or method of customs valuation were correct in all material respects. 11. Each Party shall provide that where its customs administration determines that any requirement in paragraph 10 has not been satisfied, it may modify or revoke the advance ruling as the circumstances may warrant. 12. Each Party shall provide that, where a person can demonstrate that it used reasonable care and acted in good faith in presenting the facts and circumstances on which an advance ruling was based, and where the customs administration of a Party determines that the ruling was based on incorrect information, the person to whom such advance ruling was issued shall not be subject to penalties. 13. Where a Party issues an advance ruling to a person that has misrepresented or omitted material facts or circumstances upon which the ruling is based or has failed to act in accordance with the terms and conditions of such ruling, it may apply such measures as the circumstances may warrant. Subchapter 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 origins 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 subject to a determination of origin; (b) whose good has been subject to a country of origin marking determination pursuant to Article 312 (Country of Origin Marking); or (c) who has received an advance ruling pursuant to Article 509(1). 2. Further to Articles 1804 (Administrative Proceedings) and 1805 (Review and Appeal), each Party shall provide that the rights of review and appeal referred to in paragraph 1 shall include access to: (a) at least one level of administrative review, independent of the official or office responsible for the determination under review; and (b) in accordance with its domestic law, judicial or quasijudicial review of the determination or decision taken at the final level of administrative review. Subchapter E - Uniform Regulations Article 511: Uniform Regulations 1. Upon the date of entry into force of this Agreement, the Parties shall establish, and implement through their respective domestic laws or regulations, Uniform Regulations regarding the interpretation, application and administration of the provisions of Chapter Four (Rules of Origin). 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. Subchapter 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 such Party is aware is contrary to: (i) a ruling issued by the customs administration of another Party with respect to the tariff classification or customs 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 customs 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(1). 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 agreements 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 such 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 other procedures as the Parties may agree; (c) to the extent practicable, for purposes of facilitating the flow of trade between their territories, in customs-related matters, such 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, 308 and 312, Chapter Four (Rules of Origin), this Chapter, the Marking Rules and the Uniform Regulations; and (b) the effective administration of the customs-related aspects of Chapter Three (National Treatment and Market Access). 2. The Working Group shall meet at least four times a year and at 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 312, Chapter Four, this Chapter, the Marking Rules and the Uniform Regulations to ensure their uniform interpretation; (b) endeavor to agree, upon the request of any Party, on any proposed modification of or addition to Articles 303, 308 and 312, Chapter Four, this Chapter, the Marking Rules and 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 Articles 303, 308 and 312, Chapter Three, Chapter Four, this Chapter, the Marking Rules, the Uniform Regulations or other provision of this Agreement as 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 after the Commission agrees on any such modification or addition. 5. If the Working Group fails to resolve a matter referred to it pursuant to paragraph 2(f) within 30 days of such referral, any Party may request a meeting of the Commission pursuant to Article 2007. 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 a year and on the request of any Party and shall: (a) endeavor to agree on (i) the uniform interpretation, application and administration of the provisions of Articles 303, 308 and 312, 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 Chapter Three, 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 could 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 after the matter was referred 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 related to a matter under consideration by the Customs Subgroup or the Working Group or from taking such other action as it considers necessary pending a resolution of the matter pursuant to this Agreement. Article 514: Definitions For purposes of this Chapter: advance ruling means a written interpretation issued by the customs administration of a Party on the application of a measure to a given set of facts and circumstances regarding a prospective importation of a good into its territory; 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 domestic law of a Party for the administration of customs laws and regulations; customs value means "customs value" as defined in Article 415; determination of origin means a determination as to whether a good qualifies as an originating good in accordance with Chapter Four (Rules of Origin); exporter in the territory of a Party includes an exporter located in the territory of a Party or 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 the determination of origin of such goods under Chapter Four (Rules of Origin); importer in the territory of a Party includes an importer located in the territory of a Party or an importer required under this Chapter to maintain records in the territory of that Party regarding importations of a good; preferential tariff treatment means the duty rate applicable to an originating good; and producer includes a person that grows, mines, harvests, manufactures, processes, or assembles a good, or any combination thereof.

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 play in the North American region 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 services associated with such energy and basic petrochemical 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) Chapter 27 (excluding: subheadings 2707.10, 2707.20, 2707.30, 2707.40, 2707.60, 2707.91, 2707.99 (except solvent naphtha, rubber extender oils and carbon black feedstocks), and in subheading 2710.00 (only normal paraffin mixtures in the range of C9 to C15), and in heading 2711 (only ethylene, propylene, butylene and butadiene, in purities over 50 percent)); (b) subheading 2612.10; (c) subheadings 2844.10 through 2844.50 (only with respect to uranium compounds classified under those subheadings); (d) subheading 2845.10; (e) subheading: 2901.10 (ethane, butanes, pentanes, hexanes, and heptanes only); 3. Except as otherwise 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 imposes 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 imposes a restriction on imports of an energy or basic petrochemical good from non-Party countries, the Parties, upon 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. Parties may administer a system of import and export licensing for energy and 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. In addition, the Parties recognize the provisions of Annex 603.6. Article 604: Export Taxes No Party shall maintain or introduce any tax, duty, or charge on the export of any energy or basic petrochemical good to the territory of any other Party, unless such tax, duty, or charge is also maintained or introduced on such energy or basic petrochemical good when destined for domestic consumption. Article 605: Other Export Measures A Party may maintain or introduce a restriction otherwise justified under the provisions of Articles XI:2(a) and XX(g), (i) and (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 a specific energy or basic petrochemical good made available to such 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 involved may agree; (b) the Party does not impose a higher price for exports of an energy or basic petrochemical good to such other Party than the price charged for such energy 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 which 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 such other Party or normal proportions among specific energy or basic petrochemical goods supplied to the 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; or (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 1. No Party shall maintain or introduce 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. 2. The Parties recognize the provisions of Annex 607.2.

Article 608: Miscellaneous Provisions 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. 2. 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. 3. Canada and the United States intend no inconsistency between the provisions of this Chapter and the Agreement on an International Energy Program (IEP). In the event of any unavoidable inconsistency between the IEP and this Chapter, the provisions of the IEP shall prevail to the extent of that inconsistency as between Canada and the United States. 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; restriction means any limitation, whether made effective through quotas, licenses, permits, minimum or maximum price requirements or any other means; energy regulatory measure means any measure by federal or subfederal entities that directly affects the transportation, transmission or distribution, purchase or sale, of an energy or basic petrochemical good; first hand sale refers to the first commercial transaction affecting the good in question; Independent Power Producer (IPP) means a facility that is used for the generation of electric energy exclusively for sale to an electric utility for further resale; investment means investment as defined in Chapter Eleven (Investment); total supply means shipments to domestic users and foreign users from: (a) domestic production; (b) domestic inventory; and (c) other imports, as appropriate; and total export shipments means the total shipments from total supply to users located in the territory of the other Party.

======================================================================= ====== ANNEX 602.3 1. The Mexican State reserves to itself the following strategic activities and investment 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; and (b) 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 this Chapter obtained from the refining or processing of crude oil and natural gas; and basic petrochemicals. 2. In the event of an inconsistency between Annex 602.3, paragraphs 1, 5(a) and 6, and another provision of this Agreement, the provisions of Annex 602.3, paragraphs 1, 5(a) and 6, shall prevail to the extent of that inconsistency. 3. Natural Gas and Petrochemical Feedstock Trade

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, the Parties agree that such end-users and suppliers, and state enterprises of the Parties as may be required under their domestic law, shall have the right to negotiate supply contracts. The modalities of implementing such arrangements are left to the end-users, suppliers and state enterprises of the Parties as may be required under their domestic law and 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. 4. Performance Contracts

The Parties shall allow state enterprises to negotiate performance clauses in their service contracts. 5. Electricity

(a) In Mexico the supply of electricity as a public service is a strategic area reserved to the State. Except as provided in subparagraph (b) below the activities encompassed by the supply of electricity as a public service in Mexico include the generation, transmission, transformation, distribution and sale of electricity. (b) The opportunities for private investment in Mexico in

electricity generating facilities include: (i) Production for Own Use Enterprises of the other Parties may acquire, establish, and/or operate an electrical generating facility to meet its own supply needs. Electricity generated in excess of the enterprise's own supply requirements must be sold to CFE and CFE shall purchase such electricity under terms and conditions agreed to by CFE and the enterprise. (ii) Co-generation Enterprises of the other Parties may acquire, establish, and/or operate co-generation facilities which generate electricity using heat, steam or other energy sources associated with an industrial process. Owners of the industrial facility need not be the owners of the co-generating facility. Electricity generated in excess of the enterprise's own supply requirements must be sold to CFE and CFE shall purchase such electricity under terms and conditions agreed to by CFE and the enterprise. (iii) Independent Power Production Enterprises of the other Parties may acquire, establish, and/or operate electricity generating facilities for independent power production (IPP) in Mexico. Electricity generated by IPP facilities 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 crossborder trade in electricity may be in their interest, the Parties agree that these entities and CFE shall have the right to negotiate the terms and conditions of power purchase and power sale contracts. The modalities of implementing such supply arrangements is left to the end-users, suppliers and CFE and may take the form of individual contracts between the state enterprise and each of the other entities. Such contracts shall be subject to regulatory approval. 6. Nuclear

The generation of nuclear energy; the exploration, exploitation and processing of radioactive minerals; the nuclear fuel cycle; the use and reprocessing of nuclear fuels and the regulation of their applications for other purposes; the transportation and storage of nuclear wastes; and the production of heavy water, are reserved to the Mexican state.

7. Pursuant to Article 1101(3), private investment is not permitted in reserved activities listed above in paragraphs 1, 5(a) and 6. Chapter Twelve (Cross Border Trade in Services) shall only apply to activities involving the provision of services covered in paragraphs 1, 5(a) and 6 when Mexico permits a contract to be granted in respect of such activities and only to the extent of that contract. ======================================================================= ====== ANNEX 603.6

United Mexican States: 1. 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% 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% 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 obtained from bituminous materials. 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. 2. Notwithstanding any other provision of this Chapter, the provisions of Article 605 shall not apply as between the other Parties and Mexico. ======================================================================= ====== ANNEX 607.2

1. The provisions of Article 607(1) shall impose no obligations and confer no rights on Mexico. 2. Nothwithstanding Article 607(1), the provisions of Article 2102 (National Security) shall apply as between the other Parties and Mexico.

Chapter Seven Agriculture

Article 701: Scope 1. This Chapter applies to trade in agricultural goods and to sanitary and phytosanitary measures. Subchapter A - Market access Article 702: Scope 1. Further to Article 102 (Objectives), the provisions of this Subchapter address import barriers, domestic support, export subsidies, and grading and marketing standards and measures that affect trade of agricultural goods between the Parties.

2. To the extent of any inconsistency in this Agreement with the provisions of this Subchapter, this Subchapter shall prevail. Article 703: International obligations 1. Each Party shall comply with Annex 703.1 with respect to its agricultural trade under other international agreements, to the extent set out in that Annex. 2. When a Party desires to adopt a measure pursuant to any international commodity agreement with respect to an agricultural good, it shall consult with the other Parties in order to avoid nullification or impairment of a concession granted by such Party in its Schedule set out in Annex 302.2. 3. Each Party shall comply with Annex 703.3 with respect to actions taken pursuant to any international coffee agreement. Article 704: Market Access General Provisions 1. In order to facilitate trade in agricultural goods, the Parties shall work together to improve access to their respective markets through the reduction or elimination of import barriers. Tariffs and Quantitative Restrictions 2. Each Party shall comply with Annex 704.2 with respect to tariffs and quantitative restrictions, including GATT market access requirements and trade in sugar. Agricultural Grading and Marketing Standards 3. Each Party shall comply with Annex 704.3 with respect to agricultural grading and marketing standards. Special Safeguard Provisions 4. Each Party may, during the applicable period of transition, adopt or maintain special safeguards in the form of tariff quotas on specific agricultural goods, as specified in its Schedule set out in Annex 302.2, and further described in Annex 704.4. 5. A Party may not apply, at the same time, measures under paragraph 4 and Chapter 8 (Emergency Action) with respect to the same agricultural good. Article 705: Domestic Support

The Parties recognize that domestic support measures can be of crucial importance to their agricultural sectors but may also have trade distorting effects and effects on production. The

Parties further recognize that domestic support commitments may result from the agriculture negotiations in the Uruguay Round of multilateral trade negotiations under the GATT. Accordingly, to the extent a Party decides to support its agricultural producers, such Party should endeavor to move toward domestic support policies that: (a) have minimal or no trade distortion effects or effects on production; or (b) are exempt from domestic support reduction commitments under the GATT. The Parties further recognize that the domestic support mechanisms of each Party, including those that are subject to reduction commitments, may be changed at the Party's discretion so long as such change is in compliance with its GATT rights and obligations. Article 706: Export Subsidies 1. The Parties recognize that export subsidies may have serious prejudicial effects on importing and exporting Parties, and the Parties share the objective of achieving the multilateral elimination of export subsidies for agricultural goods. The Parties shall cooperate in an effort to achieve an agreement in the General Agreement on Tariffs and Trade which eliminates export subsidies on agricultural goods. 2. The Parties also recognize that export subsidies may cause disruption in the market of an importing Party. Accordingly, the Parties affirm that it is inappropriate for a Party to provide export subsidies for the export of an agricultural good to the territory of another Party when there are no other subsidized imports of that good into that other Party. 3. Except as provided in Annex 703.1, where an exporting Party considers that a non-Party is exporting an agricultural good into the territory of another Party with the benefit of export subsidies, the exporting Party may request consultations with the importing Party with a view toward agreeing on measures that the importing Party could adopt to counter the effect of such subsidized imports. If the importing Party adopts the agreed-upon measures, the exporting Party shall refrain from applying, or immediately cease to apply, any export subsidy to exports of such good into the territory of the importing Party. 4. Except as provided in Annex 703.1, a Party proposing to introduce an export subsidy on exports of an agricultural good to the territory of another Party shall notify such Party at least three days in advance, and shall upon request consult with such Party, within 72 hours of receipt of the request, with a view to eliminating the subsidy or minimizing any adverse impact on the importing Party's market for that good. Another Party may request to join such consultations.

5. Each Party shall take into account the interests of the other Parties in the use of any export subsidy on an agricultural good exported to a Party or non-Party, recognizing that such subsidies may have prejudicial effects on the interests of the other Parties. 6. The Parties shall establish a Working Group on Agricultural Subsidies which shall meet at least semi-annually, or at such other times as the Parties may agree, to work toward elimination of all export subsidies in connection with trade in agricultural goods between the Parties. The functions of the Working Group on Agricultural Subsidies shall include: (a) monitoring the volume and price of imports of agricultural goods that have benefitted from export subsidies into the territory of any Party; (b) providing a forum for the Parties to develop mutually acceptable criteria and procedures for reaching agreement on the limitation or elimination of the provision of export subsidies in connection with importation of agricultural goods into the territories of the Parties; and (c) reporting annually to the Committee on Agricultural Trade, established under Article 708, with respect to implementation of this Article. 7. Notwithstanding any other provision of this Article:

(a) if the Parties agree to a particular export subsidy measure on an agricultural good for export to the territory of a Party, the exporting Party may adopt or maintain such measure; and (b) each Party shall retain its rights to apply countervailing duties to subsidized imports from any source. Article 707: Resolution of Private Commercial Disputes Regarding Transactions in Agricultural Goods The advisory committee established pursuant to Article 2022(4) shall work toward a system for resolving private commercial disputes that arise in connection with transactions in agricultural goods. The system of each Party shall be designed to achieve prompt and effective resolution of such disputes with attention to special circumstances, including the perishability of the goods involved. Article 708: Committee on Agricultural Trade 1. The Parties hereby establish a Committee on Agricultural Trade, comprising representatives of each Party.

2.

The Committee's functions shall include:

(a) monitoring and promoting cooperation on the implementation and administration of this Subchapter; (b) providing a forum for the Parties to consult at least semi-annually and at such other times as the Parties may agree on issues related to this Subchapter; and (c) reporting annually to the Commission on the implementation of this Subchapter. Article 709: Definitions For purposes of this Subchapter: agricultural goods means: (i) HS Chapters 1 to 24 less fish and fish products, plus

(ii) HS Code 29.05.43 (manitol) HS Code 29.05.44 (sorbitol) HS Heading 33.01 (essential oils) HS Headings 35.01 to 35.05 (albuminoidal substances, modified starches, glues) HS Code 38.09.10 (finishing agents) HS Code 38.23.60 (sorbitol n.e.p.) HS Headings 41.01 to 41.03 (hides and skins) HS Heading 43.01 (raw furskins) HS Headings 50.01 to 50.03 (raw silk and silk waste) HS Headings 51.01 to 51.03 (wool and animal hair) HS Headings 52.01 to 52.03 (raw cotton, waste and cotton carded or combed) HS Heading 53.01 (raw flax) HS Heading 53.02 (raw hemp); fish and fish products for purposes of the definition of agricultural goods means fish or crustaceans, molluscs or other aquatic invertebrates, marine mammals, and their products within the following headings of the Harmonized System: HS Heading 05.07 (tortoise-shell, whalebone and whalebone hair and those fish or crustaceans, molluscs or other aquatic invertebrates, marine mammals, and their products within this heading) (all goods (coral and similar materials)) (all goods (natural sponges of animal origin)) (products of fish or crustaceans,molluscs or aquatic invertebrates; dead animals of Chapter

other 3)

HS Heading HS Heading HS Heading

05.08 05.09 05.11

of

HS Heading HS Heading HS Heading HS Heading

15.04 16.03 16.04 16.05

(all goods (fats and oils and their fractions, fish or marine mammals)) ("non-meat" extracts and juices) (all goods (prepared or preserved fish)) (all goods (prepared preserved crustaceans, molluscs and other aquatic invertebrates));

net production surplus means the quantity by which a Party's domestic production of sugar exceeds its total consumption of sugar for a marketing year; net surplus producer means that a Party has been determined to have a net production surplus in accordance with Schedule 704.2(I)(B)(3); plantation white sugar means crystalline sugar which has not been refined and is intended for human consumption without further processing or refining; raw value means the equivalent of a quantity of sugar in terms of raw sugar testing 96 degrees by the polariscope, determined as follows: (a) the raw value of plantation white sugar equals the number of kilograms thereof multiplied by 1.03; (b) the raw value of liquid sugar and invert sugar equals the number of kilograms of the total sugars thereof multiplied by 1.07; and (c) the raw value of other imported sugar and syrup goods equals the number of kilograms thereof multiplied by the greater of 0.93, or 1.07 less 0.0175 for each degree of polarization under 100 degrees (and fractions of a degree in proportion); sugar means raw or refined sugar derived directly or indirectly from sugar cane or sugar beets, including liquid refined sugar; and sugar and syrup goods means "sugar and syrup goods" as defined in Annex 709. ANNEX 703.1 Incorporation of Trade Provisions

1. Articles 701.1, 701.2, 701.3, 701.5, 702, 704, 705, 706, 707, 708.1, 708.4 710 and 711 [subject to review] of the Canada U.S. Free Trade Agreement shall apply to trade in "agricultural goods", as that term is defined in Article 711 of that Agreement, between Canada and the United States, which Articles are hereby incorporated into and made a part of this Agreement for such purpose. 2. For purposes of this incorporation, any reference to Chapter

18 of the Canada - U.S. Free Trade Agreement shall be deemed to be a reference to Chapter 20 of this Agreement. ANNEX 703.3 International Coffee Agreement Neither Canada nor Mexico shall take actions pursuant to any international coffee agreement and measures authorized thereunder to restrict trade in coffee between them. ANNEX 704.2 Market Access Each Party shall comply with Sections I and II. Section I Mexico and the United States 1. This Section shall apply only between the United States and Mexico. 2. Each Party shall comply with Appendices A and B. Appendix A Tariffs, Quantitative Restrictions and GATT Market Access 1. The Parties recognize that, upon the date of entry into force of the Agreement, each Party, in accordance with the rights and obligations set forth in Chapter 3, will not adopt or maintain measures regarding quantitative restrictions on the importation of agricultural goods originating in each other's territory, but may apply tariff quotas as set forth in its Schedule set out in Annex 302.2. The Parties further recognize that the over-quota tariff rate applied by a Party in connection with such tariff quotas will be progressively eliminated in the manner set forth in its Schedule set out in Annex 302.2. 2. Each Party agrees to waive its rights under Article XI.2(c) of the General Agreement on Tariffs and Trade with respect to any measure taken in connection with the importation of agricultural goods originating in the territory of the other. 3. Except as provided in paragraph 4, to the extent a tariff applied by a Party in accordance with a tariff quota as set forth in its Schedule set out in Annex 302.2 at any time exceeds the applicable bound rate of duty for that agricultural good as set forth in its GATT Schedule of Tariff Concessions as of June 12, 1991, the other Party hereby waives its rights with respect to the applicable bound rate of duty under GATT Article II, notwithstanding the provisions of Article 103 of this Agreement.

4. If the GATT Uruguay Round Agreement on Agriculture enters into force with respect to a Party, pursuant to which that Party has agreed to convert its quantitative restrictions into tariff quotas, that Party shall ensure that the over-quota tariff rates it applies to agricultural goods of the other Party are not greater than the lower of (a) the applicable over-quota tariff rates set out in its Schedule set out in Annex 302.2 or (b) the applicable over-quota tariff rates set out in its GATT Schedule of Tariff Concessions. 5. Market access afforded by a Party in accordance with its Schedule set out in Annex 302.2 and applied to imports of agricultural goods of another Party shall count, as between the Parties, toward the satisfaction of market access commitments which have been agreed upon under its GATT Schedule of Tariff Concessions or which may be undertaken by the importing Party as a result of any GATT agreement entering into force as to that Party during the applicable transition period under this Agreement. 6. Neither Party shall seek a voluntary restraint agreement from the other Party with respect to the exportation of meat originating in the territory of that other Party. 7. Notwithstanding the provisions of Chapter 3 (Market Access), goods of subheading 2008.11 of the Harmonized System (HS) that originate in the territory of Mexico shall be subject upon importation into the territory of the United States to the rate of duty provided in the Schedule set out in Annex 302.2 for the United States only if all agricultural goods within heading 12.02 of the HS used in the production of such goods originate in the territory of one or more of the Parties. 8. is: A good provided for in item 1806.10.a1 or 2106.90.a1 that

(a) imported into the territory of the United States from the territory of Mexico; or (b) imported into the territory of Mexico from the territory of the United States, shall be eligible for the rate of duty provided in Annex 302.2 only if all agricultural materials provided for in subheading 1701.99 used in the production of such good are originating materials. 9. The United States shall not adopt or maintain, with respect to imports into its territory of agricultural goods originating in the territory of Mexico, any fee applied pursuant to Section 22 of the Agricultural Adjustment Act of 1933, or any successor statute. 10. Agricultural goods entered into maquiladoras or foreigntrade zones and re-exported, including subsequent to processing, shall not count toward the fulfillment of market access commitments under a Party's Schedule set out in Annex 302.2.

Appendix B Trade in Sugar 1. The United States and Mexico recognize the importance of liberalizing trade in sugar and syrup goods while avoiding conditions of entry that may result in displacement of the consumption of such goods originating in the territories of the United States and Mexico by imports from non-Parties. Accordingly, the United States and Mexico have agreed to the following provisions to govern trade between them in sugar and syrup goods. 2. The over quota customs duty for imports into the territory of the United States of sugar and syrup goods originating in the territory of Mexico shall be reduced to zero during a period of 15 years after the date of entry into force of this Agreement as follows: (a) from the first to the sixth year after the date of entry into force of this Agreement, the customs duty shall be reduced by a total of 15 percent in equal annual stages; (b) from the seventh to the fifteenth year after the date of entry into force of this Agreement, the customs duty shall be removed entirely in equal annual stages; and (c) after the end of the sugar transition period, the duty on all imports of sugar and syrup goods from Mexico shall be zero. 3. In addition to the customs duty reductions provided for under paragraph 2, imports into the territory of the United States of sugar and syrup goods originating in the territory of Mexico shall be duty free for a quantity, on a marketing year (October 1 - September 30) basis, to be determined as follows: (a) for each upcoming marketing year in which Mexico is not projected to be a net surplus producer, the quantity shall be the greater of 7,258 metric tons raw value or the quota allocated by the United States for a nonParty 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 subsection (a), or (ii) Mexico's projected net production surplus, but not greater than a maximum quantity as

follows (i) for each of the first through sixth marketing years after the date of entry into force of this Agreement, 25,000 metric tons raw value, (ii) for the seventh marketing year after the date of entry into force of this Agreement, 150,000 metric tons raw value, and (iii) for each of the eighth through fifteenth marketing years after the date of entry into force of this Agreement, 110 percent of the previous marketing year's maximum quantity; (c) in any year after the sixth year after the date of entry into force of this Agreement, the quantity of imports of sugar and syrup goods originating in the territory of Mexico shall not be subject to the limitations set out in subparagraph (b) if (i) Mexico has been a net surplus producer for any two consecutive marketing years, or (ii) Mexico has been a net surplus producer during the previous marketing year, and Mexico is projected to be a net surplus producer of sugar, in accordance with subparagraph (d), in the upcoming marketing year, unless Mexico ultimately is not a net surplus producer in that marketing year; and (d) prior to the beginning of each marketing year, Mexico shall make projections of its domestic production and total consumption of sugar. Mexico and the United States shall consult by July 1 of each year to jointly determine whether Mexico is projected to be a net surplus producer in the upcoming marketing year, in accordance with the methodology and sources of information set out in Schedule 704.2(I)(B)(3). 4. Mexico shall implement a tariff quota to be applied on a Most Favored Nation basis for sugar and syrup goods with customs duties equal to those of the United States no later than six years after the date of entry into force of this Agreement. Mexico shall thereafter progressively eliminate its over quota customs duty for imports of sugar and syrup goods originating in the territory of the United States, in identical fashion as the reductions provided for United States customs duties in paragraph 2. Mexico shall establish the quantities of imports of sugar and syrup goods originating in the territory of the United States that shall be duty-free pursuant to the same procedure by which the United States shall establish such quantities with respect to imports of such goods originating in the territory of Mexico in accordance with sub-paragraph 3(b). The United States shall make projections of its domestic production and consumption, and the United States and Mexico shall consult and make the determination whether the United States is projected to be a net surplus

producer, on the same terms as provided for in subparagraph 3(d). 5. If the United States eliminates its tariff quota for sugar and syrup goods imported from non-Parties, at such time the United States shall grant to Mexico the better of the treatment, as determined by Mexico, of: (a) the treatment provided for in paragraph 3; or (b) the Most-Favored-Nation treatment granted by the United States to non-Parties. 6. The measurement of the quantity imported shall be based on the actual weight of the imported sugar and syrup goods, converted as appropriate to raw value, without regard to the packaging in which the goods are imported or their presentation. 7. With respect to imports into the territory of Mexico of sugar and syrup goods, and products containing sugar or syrup, from the territory of the United States, (a) Mexico shall accord preferential treatment in accordance with this Agreement when the following conditions apply (i) with respect to sugar and syrup goods no benefits under any re-export program or any like program have been or will be granted in connection with the export of those goods, and (ii) with respect to products containing sugar and syrup goods, no benefits under any re-export program or any like program have been or will be granted in connection with the export of those products; (b) the United States shall provide notification to Mexico of any export to Mexico, within two days of such export, for which the benefits of any re-export program or any other like program have been or will be claimed by the exporter; and (c) except as provided for in paragraph 8, Mexico shall accord Most Favored Nation treatment to all imports from the territory of the United States of sugar and syrup goods with respect to which benefits under any re-export program or any like program shall have been claimed. 8. Notwithstanding any other provision of this Article:

(a) the United States shall grant duty-free treatment to imports of (i) raw sugar originating in the territory of Mexico that will be refined within the territory of the United States and re-exported to the territory of

Mexico, and (ii) refined sugar originating in the territory of Mexico that has been refined from raw sugar previously produced within, and exported from, the territory of the United States; (b) Mexico shall grant duty-free treatment to imports of (i) raw sugar originating in the territory of the United States that will be refined within the territory of Mexico and re-exported to the territory of the United States, and (ii) refined sugar originating in the territory of the United States that has been refined from raw sugar previously produced within, and exported from, the territory of Mexico; and (c) imports qualifying for duty-free treatment pursuant to subparagraphs (a) and (b) of this paragraph shall not be subject to, or counted under, any quota of the importing Party.

Schedule 704.2(I)(B)(3) Net Production Surplus Determination 1. Methodology

(a) The size of a Party's net production surplus, shall be determined in accordance with the following formula: (i) If a net production surplus has not been projected for any previous year, the formula shall be: NPS = (PPy - CPy) (ii) If a Party is projected to be a net surplus producer and has been projected to be a net surplus producer in a previous year, the Party's projected net production surplus shall be adjusted, to account for an underestimate or overestimate, as follows: NPS = (PPy - CPy) - ((PPys - CPys) - (PAys - CAys)) where: NPS = Net production surplus PP = Projected Domestic Production of sugar CP = Projected Total Consumption of sugar

y = upcoming marketing year ys = most recent previous marketing year in which a net production surplus was projected PA = Actual Domestic Production of sugar CA = Actual Total Consumption of sugar (b) The net production surplus shall be determined in metric tons raw value. (c) For purpose of determining whether a Party is a net surplus producer, imported sugar shall not be treated as part of domestic production. (d) The domestic production of a Party shall not include sugar, that has been either processed or refined from sugar beets or sugar cane grown, or sugar processed or refined, outside of the territory of such Party. (e) When making projections of its net production surplus, each Party shall consider adjustments, in appropriate circumstances, to such projections to take into account a change in stocks for the current marketing year exceeding an upper bound calculated in accordance with the following formula: where: B = upper bound, expressed as a percentage F = the absolute value of the change in stocks from the beginning of the marketing year to the end of the marketing year, expressed as a percentage of beginning stocks and calculated in accordance with the following formula: F = ? Sb - Se ? x ? Sb ? 100 ?

Sb = beginning stocks Se = ending stocks N = previous marketing year, ranging from 1 (first preceding year) to 5 (fifth preceding year) 2. Sources of Information

(a) For Mexico, statistics on production, consumption and stocks shall be provided by the Secretaria de Agricultura y Recursos Hidraulicos, the Secretaria de Comercio y Fomento Industrial, and the Secretaria de Hacienda y Credito Publico.

(b) For the United States, statistics on production, consumption and stocks shall be provided by the United States Department of Agriculture (USDA). (c) Each Party shall permit representatives from the other Party to observe and comment on the methodology it uses to prepare its data. Section II Mexico and Canada 1. 2. This Section shall apply only between Canada and Mexico. 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. is: A good provided for in item 1806.10.a1 or 2106.90.a1 that

(a) imported into the territory of Canada from the territory of Mexico; or (b) imported into the territory of Mexico from the territory of Canada, shall be eligible for the rate of duty provided in Annex 302.2 only if all materials provided in subheading 1701.99 used in the production of such good are originating materials. Schedule 704.2(II)(A)(5) Dairy, Poultry and Egg Goods For Canada: a dairy, poultry or egg good under one of the following subheadings: Note: "X" indicates that a new tariff subheading will be established for this item 0105.11.90X Broiler chicks for domestic production, <185G

0105.91.00 0105.99.00 0207.10.00 0207.21.00 0207.22.00 0207.39.00 0207.41.00 0207.42.00 0209.00.20 0210.90.10 0401.10.00 0401.20.00 0401.30.00 0402.10.00 0402.21.10 0402.21.20 0402.29.10 0402.29.20 0402.91.00 0402.99.00 0403.10.00 0403.90.10 0403.90.90 0404.10.10 0404.10.90 0404.90.00 0405.00.10 0405.00.90

Poultry, >185g Ducks, geese, turkeys, etc, Poultry not cut in pieces, >185g fresh or chilled

Poultry, not in pieces, frozen Turkey, not in pieces, frozen Poultry cuts & offal, fresh Poultry cuts & offal, frozen Turkey cuts & offal, frozen Poultry fat Poultry meat, salted, dried, Milk & cream, fat <1% Milk & cream, fat > 1% < 6% Milk & cream, fat > 6% Skim milk powder Whole milk powder Whole cream powder Milk powder fat > 1.5% Cream powder fat < 1.5% Milk & cream, conc., n.s. Milk & cream, not solid, added sweetener Yogurt Powdered buttermilk Curdled milk & cream, etc. Whey powder Whey, not powdered Other Butter Fats & oils derived from milk etc.

0406.10.00 0406.20.10 0406.20.90 0406.30.00 0406.40.00 0406.90.10 0406.90.90 0407.00.00 0408.11.00 0408.19.00 0408.91.00 0408.99.00 1601.00.10X poultry 1602.31.10 1602.31.91 turkeys,

Fresh cheese Cheddar cheese Cheeses, not cheddar Processed cheese Blue-veined cheese Cheddar cheese, not processed Cheese, not cheddar, not processed Bird's eggs, in shell Dried egg yolks Egg yolks, not dried Bird's eggs, not in shell, dried Bird's eggs, not in shell, not dried Sausages or similar products of poultry meat, meat offal or blood, in air tight containers Prep. meals, of meat or meat offal of turkeys Prep. or preserved meat, meat offal or blood, of other than sausages or prep. meals, in air-tight containers

1602.31.99 turkeys,

Prep. or preserved meat, meat offal or blood, of other than sausages or prep. meals, other than in air-tight containers Prep. meals containing meat or meat offal of fowls of species (Gallus domesticus) ducks, geese or guinea incl. mixtures

the

1602.39.10

fowls, 1602.39.91 fowls of

Prep. or preserved meat, meat offal or blood, of the species (Gallus domesticus), ducks, geese or guinea fowls, other than sausages, liver or prep. meals, in air-tight containers

1602.39.99 ducks,

Prep. or preserved meat, meat offal or blood, of geese, etc., other than sausages, liver or prep. meals, in other than air-tight containers

2105.00.00 2106.90.70 preps. 2106.90.90X 2309.90.91X concentrates, 3501.10.00 3501.90.00 3502.10.10 3502.10.90 For Mexico:

Ice cream & other edible ice, containing cocoa or not Food preps. not elsewhere specified or incl. Egg Ice cream or ice milk mixes Complete feeds & feed supplements, incl. containing more than 50% by weight of dairy products Casein Caseinates & other casein derivatives; casein glues Egg albumin, dried, evaporated, desiccated or powdered Egg albumin, nes

a dairy, poultry or egg good under one of the following subheadings:

Note: "X" indicates that a new tariff subheading item will be established for this item MEXICO HTS NUMBER 0105.11.01 0105.91.01 0105.91.99 0105.99.99 0207.10.01 0207.21.01 0207.22.01 0207.39.01 0207.39.99 0207.41.0X 0207.41.0Y 0207.41.0Z 0207.41.ZZ DESCRIPTION Day old chickens without being fed during its transportation Game cocks Other Other poultry Poultry, not cut into pieces, fresh or chilled Chickens Turkey Chicken offals except liver Other, poultry cut and offals Chicken cuts, frozen Chicken offals, frozen Chicken meat mechanically deboned, frozen Chicken meat mechanically deboned, fresh or chilled

0207.42.0X 0207.42.0Y 0207.42.0Z 0207.42.ZY 0207.50.01 0209.00.0Z 0210.90.99 0401.10.01 0401.10.99 0401.20.01 0401.20.99 0401.30.01 0401.30.99 0402.10.01 0402.10.99 0402.21.01 0402.21.99 0402.29.99 0402.91.01 0402.91.99 0402.99.01 0402.99.99 0403.10.01 0403.90.01

Turkey cuts, frozen Turkey offals Turkey meat, mechanically deboned, frozen Turkey meat, mechanically deboned, fresh or chilled Poultry livers, frozen Chicken or turkey bacon and lean parts Other In hermetic containers milk not concentrated Other In hermetic containers; Other In hermetic containers; Other Milk powder Other Milk powder Other Other Evaporated milk Other Condensed milk Other Yogurt Powdered milk whey with a protein content less than or equal to 12 percent Other butter whey

0403.90.99

0404.10.01 0404.90.99 0405.00.01

Whey, concentrated, sweetened Other Butter, including the immediate container, with a weight less than or equal to 1kg Butter, including the immediate container, with a weight over 1 kg Butiric fat, dehydrated Other Fresh cheese, including whey cheese Cheese, grated or powdered Melted cheese, not grated or powdered Other, melted cheese Blue veined cheese Hard paste cheese called sardo Hard paste reggi cheese Soft paste cologne cheese 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 nonfat matter content by weight over 47 percent without exceeding 72 percent (called "danloo, edam, fontan, fontina, fynbo, gouda, Avarti, maribo, samsoe, esron, italico, kernhem, saintnactarie, saint paulin, or talegi?l) Petit suisse cheese Egmont cheese Other hard and semihard cheese

0405.00.02

0405.00.03 0405.00.99 0406.10.01 0406.20.01 0406.30.01 0406.30.99 0406.40.01 0406.90.01 0406.90.02 0406.90.03 0406.90.04

0406.90.05 0406.90.06 0406.90.99

0407.00.01 0407.00.02 0407.00.99 0408.11.01 0408.19.99 0408.91.01 0408.91.99 0408.99.01 0408.99.99 1601.00.9X 1602.20.0X 1602.31.01 2105.00.01 2106.90.9X 2309.90.9X 3501.10.01 3501.90.01 3501.90.02 3501.90.99 3502.10.01

Fresh birds eggs, fertile Frozen eggs Other poultry eggs Dried yolks Other Frozen or powdered Other Frozen or powdered Other Chicken and turkey sausages Homogenized preparations of chickens or turkey livers Prepared or preserved turkey meat Ice cream and similar products Egg preparations Preparations containing over 50 percent of milk products Casein Casein glues Caseinates Other Egg albumin

Appendix B Trade in Sugar 1. Mexico's customs duty for imports of sugar and syrup goods originating in the territory of Canada shall be equal to its Most-Favored-Nation over-quota customs duty. 2. Canada may apply a customs duty on sugar and syrup goods originating in the territory of Mexico equal to the customs duty

applied by Mexico on such goods originating in the territory of Canada. ANNEX 704.3 Agricultural Grading and Marketing Standards Each Party shall comply with Sections I and II. Section I United States and Mexico 1. When either the United States or Mexico adopts or maintains a measure regarding the classification, grading or marketing of a domestic agricultural good, it shall, with respect to the like agricultural good imported from the territory of the other destined for processing, accord treatment no less favorable than the treatment it accords under the measure to the domestic agricultural good destined for processing. The importing Party may also adopt or maintain measures to ensure that such imported good is processed. 2. Paragraph 1 shall be without prejudice to the rights of either the United States or Mexico under the GATT or under Article 301 of this Agreement with respect to measures concerning the classification, grading or marketing of an agricultural good (whether or not destined for processing). 3. Mexico and the United States agree to form a Working Group to review, in coordination with the Committee on Standards-Related Measures established under Chapter 9, the operation of grade and quality standards regarding agricultural goods as they affect the other Parties to this Agreement, and to resolve issues which may arise. This Working Group shall report to the Committee on Agriculture established under Article 708, and shall meet at least once a year or as otherwise agreed by the two Parties. Section II Canada and Mexico Mexico and Canada agree to form a Working Group to review, in coordination with the Committee on Standards-Related Measures established under Chapter Nine (Standards-Related Measures), the operation of grade and quality standards regarding agricultural goods as they affect the other Parties to this Agreement, and to resolve issues which may arise. This Working Group shall report to the Committee on Agriculture established under Article 708, and shall meet at least once a year or as otherwise agreed by the two Parties.

ANNEX 704.4 Special Safeguards Section I Mexican Special Safeguard Goods MEXICO HTS NUMBER 0103.91.99 DESCRIPTION

Live swine, weighing less than 50 kilograms each, except purebred breeding animals and those with pedigree or selected breed certificate Live swine, weighing 50 kilograms or more each, except purebred breeding animals and those with pedigree or selected breed certificate Meat of swine, carcasses and half-carcasses, fresh or chilled Hams, shoulders or cuts thereof, with bone in, fresh or chilled Other swine meat, fresh or chilled Meat of swine, carcasses and half-carcasses, frozen Hams, shoulders and cuts thereof, with bone in, frozen Other swine meat, frozen Hams, shoulders and cuts thereof with bone in, salted, in brine, dried or smoked Bellies (streaky) and cuts thereof, salted, in brine, dried or smoked Other swine meat, salted, in brine, dried or smoked Potatoes, uncooked or cooked by steaming or boiling in water, frozen Dried potatoes, whole cut,

0103.92.99

0203.11.01

0203.12.01

0203.19.99 0203.21.01 0203.22.01 0203.29.99 0210.11.01

0210.12.01

0210.19.99 0710.10.01

0712.10.01

sliced, broken or in powder, but not further prepared 0808.10.01 2004.10.01 Apples, fresh Potatoes prepared or preserved otherwise than by vinegar or acetic acid, frozen Potatoes prepared or preserved otherwise than by vinegar or acetic acid, not frozen Extracts, essences or concentrates, of coffee, and preparations with a basis of these extracts, essences or concentrates or with a basis of coffee Section II U.S. Special Safeguard Goods U.S. HTS NUMBER Note: DESCRIPTION

2005.20.01

2101.10.01

A new U.S. HTS number will be established for each item Tomatoes (except cherry tomatoes), fresh or chilled; if entered during the period from November 15 to the last day of the following February, inclusive Tomatoes (except cherry tomatoes), fresh or chilled; if entered during the period from March 1 to July 14, inclusive 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 Eggplants (aubergines), fresh or chilled, if entered during the period from April 1 to June 30, inclusive "Chili" peppers; if entered during the period from October 1 to July 31, inclusive

0702.00.XX

0702.00.XX

0703.10.XX

0709.30.XX

0709.60.XX

(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 Watermelons, fresh; if entered during the period from May 1 to September 30, inclusive Section III Canadian Special Safeguard Goods Canadian HTS NUMBER 0603.10.90 0702.00.91 0703.10.31 0707.00.91 0710.80.20 0811.10.10 0811.10.90 2002.90.00 DESCRIPTION

0807.10.XX

Fresh cut flowers Tomatoes n.e.s., fresh or chilled (dutiable period) Onions or shallots, green (dutiable period), fresh Cucumber, fresh or chilled, n.e.s. (dutiable period) Broccoli and cauliflowers, blanched or not, frozen Strawberries, for processing, frozen Strawberries, frozen, other than for processing Tomatoes, other than whole (tomato paste) ANNEX 709 Country-Specific Definitions

For purposes of this Subchapter, sugar and syrup goods means: (a) for imports into Mexico, goods classifiable under current subheadings 1701.11.01, 1701.11.99, 1701.12.01, 1701.12.99, 1701.91 (except those that contain added flavoring matter), 1701.99.01, 1701.99.99, 1702.90.01, 1806.10.01 (except those with a sugar content less than 90 per cent) and 2106.90.05 (except those that contain flavoring matter) of the Mexican Tariff Schedules; (b) for imports into the United States, goods classifiable under current subheadings 1701.11.03, 1701.12.02, 1701.91.22, 1701.99.02, 1702.90.32, 1806.10.42, and 2106.90.12 of the U.S. Harmonized Tariff Schedule, without regard to the quantity imported; and (c) for imports into Canada, goods classifiable under current subheadings 1701.11.10, 1701.11.20, 1701.11.30, 1701.11.40, 1701.11.50, 1701.12.00, 1701.91.00,

1701.99.00, 1702.90.31, 1702.90.32, 1702.90.33, 1702.90.34, 1702.90.35, 1702.90.36, 1702.90.37, 1702.90.38, 1702.90.40, 1806.10.00 (except those with a sugar content less than 90 per cent) and 2106.90.20 (except those that contain flavoring matter) of the Canadian Tariff Schedule. Subchapter B - Sanitary and Phytosanitary Measures

Article 751: Scope In order to establish a framework of rules and disciplines to guide the development, adoption and enforcement of sanitary and phytosanitary measures, this Subchapter applies to any such measure of a Party that may, directly or indirectly, affect trade between the Parties. Article 752: Relation to Other Chapters Articles 301 (National Treatment), 309 (Import and Export Restrictions) and 310 (Non-Discriminatory Administration of Restrictions), and the provisions of Article XX(b) of the GATT as incorporated into Article 2101(1), do not apply to any sanitary or phytosanitary measure. Article 753: Reliance on Non-Governmental Entities Each Party shall ensure that any non-governmental entity on which it relies in applying a sanitary or phytosanitary measure acts in a manner consistent with this Subchapter. Article 754: Basic Rights and Obligations Right to Take Sanitary and Phytosanitary Measures 1. Each Party may, in accordance with this Subchapter, adopt, maintain or apply any sanitary or phytosanitary measure necessary for the protection of human, animal or plant life or health in its territory, including a measure more stringent than an international standard, guideline or recommendation. Right to Establish Level of Protection 2. Notwithstanding any other provision of this Subchapter, each Party may, in protecting human, animal or plant life or health, establish its appropriate level of protection in accordance with Article 757. Scientific Principles 3. Each Party shall ensure that any sanitary or phytosanitary measure that it adopts, maintains or applies is:

(a) based on scientific principles, taking into account relevant factors including, where appropriate, different geographic conditions; (b) not maintained where there is no longer a scientific basis for it; and (c) based on a risk assessment, as appropriate to the circumstances. Non-Discriminatory Treatment 4. Each Party shall ensure that a sanitary or phytosanitary measure that it adopts, maintains or applies does not arbitrarily or unjustifiably discriminate between its goods and like goods of another Party, or between goods of another Party and like goods of any other country, where identical or similar conditions prevail. Unnecessary Obstacles 5. Each Party shall ensure that any sanitary or phytosanitary measure that it adopts, maintains or applies is applied only to the extent necessary to achieve its appropriate level of protection, taking into account technical and economic feasibility. Disguised Restrictions 6. No Party may adopt, maintain or apply any sanitary or phytosanitary measure with a view to, or with the effect of, creating a disguised restriction to trade between the Parties. Article 755: International Standards and Standardizing Organizations 1. Without reducing the level of protection of human, animal, or plant life or health, each Party shall use, as a basis for its sanitary and phytosanitary measures, relevant international standards, guidelines or recommendations with the objective, among others, of making its sanitary and phytosanitary measures equivalent or, where appropriate, identical to those of the other Parties. 2. A Party's sanitary or phytosanitary measure that conforms to a relevant international standard, guideline or recommendation shall be presumed to be consistent with Article 754. A measure that results in a level of sanitary or phytosanitary protection different from that which would be achieved by a measure based on a relevant international standard, guideline or recommendation shall not for that reason alone be presumed to be inconsistent with this Subchapter. 3. Notwithstanding paragraph 1 and in accordance with the other provisions of this Subchapter, a Party may adopt, maintain or apply a sanitary or phytosanitary measure that is more stringent

than the relevant international standard, guideline or recommendation. 4. Where a Party has reason to believe that a sanitary or phytosanitary measure of another Party is adversely affecting or may adversely affect its exports and the measure is not based on a relevant international standard, guideline or recommendation, it may request, and the other Party shall provide in writing, the reasons for such measure. 5. Each Party shall, to the greatest extent practicable, participate in relevant international and North American standardizing organizations, including the Codex Alimentarius Commission, the International Office of Epizootics, the International Plant Protection Convention, and the North American Plant Protection Organization, with a view to promoting the development and periodic review of international standards, guidelines and recommendations. Article 756: Equivalence 1. Without reducing the level of protection of human, animal, or plant life or health, the Parties shall, to the greatest extent practicable and in accordance with this Subchapter, pursue equivalence of their respective sanitary or phytosanitary measures. 2. Each importing Party:

(a) shall treat a sanitary or phytosanitary measure adopted or maintained by an exporting Party as equivalent to its own where the exporting Party, in cooperation with the importing Party, provides to the importing Party scientific evidence or other information, in accordance with risk assessment methodologies agreed upon by those Parties, to demonstrate objectively, subject to subparagraph (b), that the exporting Party's measure achieves the importing Party's appropriate level of protection; (b) may, where it has a scientific basis, determine that the exporting Party's measure does not achieve the importing Party's appropriate level of protection; and (c) shall, upon the request of the exporting Party, provide its reasons in writing for a determination under subparagraph (b). 3. For purposes of establishing equivalency, each exporting Party shall, upon the request of an importing Party, take such reasonable measures as may be available to it to facilitate access in its territory for inspection, testing, and other relevant procedures. 4. Each Party should, in the development of a sanitary or phytosanitary measure, consider relevant actual or proposed

sanitary or phytosanitary measures of the other Parties. Article 757: Risk Assessment and Appropriate Level of Protection 1. In conducting a risk assessment, each Party shall take into account: (a) relevant risk assessment techniques and methodologies developed by international or North American standardizing organizations; (b) relevant scientific evidence; (c) relevant processes and production methods; (d) relevant inspection, sampling, and testing methods; (e) the prevalence of relevant diseases or pests, including the existence of pest-free or disease-free areas or areas of low pest or disease prevalence; (f) relevant ecological and other environmental conditions; and (g) relevant treatments, such as quarantines. 2. Further to paragraph 1, each Party shall, in establishing its appropriate level of protection regarding the risk associated with the introduction, establishment or spread of an animal or plant pest or disease, and in assessing such risk, also take into account the following economic factors, where relevant: (a) loss of production or sales that may result from such pest or disease; (b) costs of control or eradication of the pest or disease in its territory; and (c) the relative cost-effectiveness of alternative approaches to limiting risks. 3. Each Party, in establishing its appropriate level of protection: (a) should take into account the objective of minimizing negative trade effects; and (b) shall, with the objective of achieving consistency in such levels, avoid arbitrary or unjustifiable distinctions in such levels in different circumstances, where such distinctions result in arbitrary or unjustifiable discrimination against a good of another Party or constitute a disguised restriction on trade between the Parties.

4. Notwithstanding paragraphs (1) through (3) and Article 754(3)(c), where a Party conducting a risk assessment determines that available relevant scientific evidence or other information is insufficient to complete the assessment, it may adopt a provisional sanitary or phytosanitary measure on the basis of available relevant information, including from international or North American standardizing organizations and from sanitary or phytosanitary measures of other Parties. Such Party shall, within a reasonable period after information sufficient to complete the assessment is presented to it, complete its assessment, review and where appropriate revise the provisional measure in light of such assessment. 5. Where a Party is able to achieve its appropriate level of protection through the phased application of a sanitary or phytosanitary measure, it may, upon the request of another Party and in accordance with this Subchapter, allow for such a phased application, or grant specified exceptions for limited periods from such measure, taking into account the requesting Party's export interests. Article 758: Adaptation to Regional Conditions 1. Each Party shall adapt any of its sanitary or phytosanitary measures relating to the introduction, establishment, or spread of an animal or plant pest or disease, to the sanitary or phytosanitary characteristics of the area where a good subject to such measure is produced and the area in its territory to which such good is destined, taking into account any relevant conditions, including those relating to transportation and handling, between such areas. In assessing such characteristics of an area, including whether an area is, and is likely to remain, a pest-free or disease-free area or an area of low pest or disease prevalence, each Party shall take into account, among other factors: (a) the prevalence of relevant pests or diseases in that area; (b) the existence of eradication or control programs in that area; and (c) any relevant international standard, guideline or recommendation. 2. Further to paragraph 1, each Party shall, in determining whether an area is a pest-free or disease-free area or an area of low pest or disease prevalence, base such determination on factors such as geography, ecosystems, epidemiological surveillance, and the effectiveness of sanitary or phytosanitary controls in that area. 3. Each importing Party shall recognize that an area in the territory of the exporting Party is, and is likely to remain, a pest-free or disease-free area or an area of low pest or disease prevalence, where the exporting Party provides to the importing

Party scientific evidence or other information sufficient to so demonstrate to the satisfaction of the importing Party. For this purpose, each exporting Party shall provide reasonable access in its territory to the importing Party for inspection, testing and other relevant procedures. 4. Each Party may, in accordance with this Subchapter:

(a) adopt, maintain or apply a different risk assessment procedure for a pest-free or disease-free area than for an area of low pest or disease prevalence; or (b) make a different final determination for the disposition of a good produced in a pest-free or disease-free area than for a good produced in an area of low pest or disease prevalence, taking into account any relevant conditions, including those relating to transportation and handling. 5. Each Party shall, in adopting, maintaining or applying a sanitary or phytosanitary measure relating to the introduction, establishment, or spread of an animal or plant pest or disease, accord a good produced in a pest-free or disease-free area in the territory of another Party no less favorable treatment than it accords a good produced in a pest-free or disease-free area, in another country, that poses the same level of risk. Such Party shall use equivalent risk assessment techniques to evaluate relevant conditions and controls in the pest-free or disease-free area and in the area surrounding that area and take into account any relevant conditions, including those relating to transportation and handling. 6. Each importing Party shall pursue an agreement with an exporting Party, upon request, on specific requirements the fulfillment of which allows a good produced in an area of low pest or disease prevalence in the territory of an exporting Party to be imported into the territory of the importing Party and achieves the importing Party's appropriate level of protection. 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 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 such applicant may take any necessary corrective action, (iii) where the application is deficient, proceeds as far as practicable with such procedure if the applicant so requests, and (iv) informs the applicant, upon request, status of the application and the reasons for delay; of the any

(d) shall limit the information the applicant is required to supply to that necessary for conducting such procedure; (e) shall accord confidential or proprietary information arising from, or supplied in connection with, such procedure 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 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 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 complaints concerning the operation of such 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 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 of Information 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 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, upon request, discuss such comments and take the comments and the results of such 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 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 a Party 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 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 755 and 756; (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 upon such experts and expert bodies as it considers appropriate; (c) shall report annually to the Commission on the implementation of this Subchapter; (d) shall meet upon 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 765: Technical Consultations 1. A Party may request consultations with another Party on any matter covered by this Subchapter. 2. Each Party should use the good offices of relevant international and North American standardizing organizations, including those referred to in Article 755(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 Subchapter to a Party's sanitary or phytosanitary measure, and so notifies the Committee, the Committee may facilitate such 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, such consultations shall, upon the agreement of the Parties involved, constitute consultations conducted for purposes of Article 2006 (Consultations). 6. The Parties confirm that a Party asserting that a sanitary or phytosanitary measure of another Party is inconsistent with the provisions of this Subchapter shall have the burden of establishing such inconsistency. Article 766: Definitions For purposes of this Subchapter: 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 such additive or the marketing of a food, beverage or feedstuff containing such 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 coperation with the North American Plant Protection Organization; or (d) established by or developed under any other international organization agreed upon 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) to 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, (d) prevent or limit other damage in its territory arising from the introduction, establishment or spread of a pest, including end product criteria; a product-related processing or production method; a testing, inspection, certification or approval procedure; a relevant statistical method; a sampling procedure; a method of risk assessment; a packaging and labelling requirement directly related to food safety; and a quarantine treatment, such as a relevant requirement associated with the transportation of animals or plants or with material necessary for their survival during transportation; and scientific basis means a reason based on data or information derived using scientific methods.

Chapter Eight Emergency Action

Article 801:

Bilateral Actions

1. Subject to paragraphs 2, 3 and 4 and Annex 801, 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 so that the imports of such 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 such good; (b) increase the rate of duty on such 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, or (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 such 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 commence not later than one year from the date of institution of the proceeding; (c) no action shall 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 Tariff Schedule 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 commencement 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 shall 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) upon the termination of the action, the rate of duty shall be the rate that, according to the original Schedule for the staged elimination of the tariff, would have been in effect a year after the commencement of the action, and commencing 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 schedule in the Tariff Schedule of the Party, or (ii) the tariff shall be eliminated in equal annual stages ending on the date set forth in the Tariff Schedule of the Party 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 pursuant to 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 to the other Party, or equivalent to the value of the additional duties expected to result from the action. If the Parties are unable to agree upon compensation, the Party against whose good the action is taken may take tariff action having trade effects substantially equivalent to the action taken under paragraph 1. The Party taking such tariff action shall apply the action only for the minimum period necessary to achieve such 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 shall retain 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 such 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, such imports normally shall not be considered to account for a substantial share of total imports if such 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 of 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 of the other Party or Parties undermines the effectiveness of such 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. In no case shall a Party 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 such 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 to that Party or Parties or equivalent to the value of the additional duties expected to result from the action. If such Parties are unable to agree upon 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 respective 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. 4. This Article does not apply to emergency actions respecting goods covered by 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 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 804; 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 within the territory of a Party; emergency action means any emergency action proceeding instituted after the date of entry into force of this Agreement; 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 commencing on the date of the entry into force of this Agreement, except where the good against which the action is taken is provided for in the items in staging category C+ of the Tariff Schedule 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 Bilateral Actions Notwithstanding Article 801, bilateral emergency actions between Canada and the United States on goods originating in the territory of either Party shall be governed in accordance with the terms of Article 1101 of the Canada-U.S. Free Trade Agreement, which is hereby incorporated into and made a part of this Agreement for such purpose. ======================================================================= ====== ANNEX 803 Administration of Emergency Action Proceedings

1.

Institution of a Proceeding:

(a) 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. (b) A Party may institute a proceeding on its own motion or request the competent investigating authority to conduct a proceeding. 2. Contents of a petition or complaint. When 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 and other sources, and best estimates and the basis therefore if such information is not available:

(a) Product description. The name and description of the imported good concerned, the tariff subheading under which such 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; (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; (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. 3. Petitions or complaints, except to the extent they contain confidential business information, shall promptly be made available for public inspection upon being filed. 4. 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 6 without first assessing carefully that the petition or complaint meets the requirements of paragraph 4, including representativeness. 5. Notice requirement. Upon instituting an emergency action proceeding, the competent investigating authority shall publish notice of the institution of the proceeding in the official journal of the Party. The notice shall identify: the petitioner or other requester; the imported good that is the subject of the proceeding and its tariff subheading; the nature and timing of the determination to be made; the time and place of the public hearing; dates of deadlines for filing briefs, statements, and other documents; the place at which the petition and any other documents filed in the course of the proceeding may be inspected; and the name, address and telephone number of the office to be contacted for more information. 6. Public hearing. In the course of each such 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. 7. Confidential information. 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 if they indicate that such information cannot be summarized, the reasons why a summary cannot be provided. 8. Evidence of injury and causation:

(a) In conducting its proceeding the competent investigating authority shall gather, to the best of its ability, all relevant information appropriate to the determination it must make. It shall evaluate all relevant factors of an objective and quantifiable nature having a bearing on the situation of that industry, in particular, the rate and amount of the increase in imports of the good concerned, in absolute and relative terms, 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; (b) 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. When 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; 9. Time period for deliberation. Except in critical circumstances and in global actions involving perishable agricultural products, 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. 10. The competent investigating authority shall publish promptly a report, including a summary thereof, in the official journal of the Party setting forth 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 forth the basis for the determination, including a description of: the domestic industry seriously injured or threatened with serious injury; 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, if provided for by domestic law, any finding or recommendation regarding the appropriate remedy and the basis therefor. In its report, the competent investigating authority shall not disclose any confidential information provided pursuant to any undertakings concerning confidential information that may have been made in the course of the proceedings. ======================================================================= ====== ANNEX 804 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.

PART THREE TECHNICAL BARRIERS TO TRADE Chapter Nine Standards-Related Measures

Article 901: Scope 1. This Chapter applies to any standards-related measure of a Party, other than those covered by Chapter Seven, Subchapter B (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. Purchasing 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 provincial or state 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 104, 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 such 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 and apply standards-related measures, including those relating to safety, the protection of human, animal and plant life and health, the environment, and consumers, and measures to ensure their 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 such measures or to complete its 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(3). Non-Discriminatory Treatment 3. Each Party shall, in respect of its standards-related measures, accord to goods or 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 if: (a) the demonstrable purpose of such measure is to achieve a legitimate objective; and (b) such 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, 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. Paragraph 1 shall not 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 such measure were based on an international standard. Article 906: Compatibility and Equivalence 1. Recognizing the crucial role of standards-related measures in promoting and protecting 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 standardsrelated measures, so as to facilitate trade in a good or service between the Parties. 3. Further to Articles 902 and 905, a Party shall, upon the 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, upon 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 such 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 acceptance of 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 such assessment, a Party may consider, 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 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 light of such assessment. 3. Where a Party pursuant to Article 904(2) establishes the 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, if such 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. 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 to the greatest extent practicable such procedures. 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 such bodies in its

territory. 3. With respect to a Party's conformity assessment procedure, such Party shall: (a) not adopt or maintain any such procedure that is stricter, nor apply such 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 such 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 upon request; (e) ensure that the competent body (i) upon 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 such applicant may take any necessary corrective action, (iii) where the application is deficient, proceeds as far as practicable with such procedure if the applicant so requests, and (iv) informs the applicant, upon 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 such procedure and to determine appropriate fees; (g) accord confidential or proprietary information arising from, or supplied in connection with, the conduct of such 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 such Party or a service provided by a person of such 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 such 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 such procedure, for a good or service modified subsequent to a determination that such good or service conforms to the applicable technical regulation or standard, to that necessary to determine that such good or service continues to conform to such 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 appropriate modifications, the relevant provisions of paragraph 3 to its approval procedures. 5. Each Party shall, upon the 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 such technical regulation, 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 such measure, except that in the case of any such measure related to perishable goods, each Party shall, to the greatest extent practicable, publish such notice and provide such notification at least 30 days prior to the

adoption or modification of such measure, but no later than when notification is provided to domestic producers; (b) identify in such notice and notification the good or service to which the proposed measure would apply, and shall provide a brief description of the objective of, and reasons for, such 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, upon request, discuss such comments and take such comments and the results of such 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 paragraphs 1 (a) and (b); and (b) observe paragraphs 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 paragraphs 1 (a) and (b) are made prior to their adoption; and (b) observance of paragraphs 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 paragraphs 1 or 3, provided that upon 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 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. 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 such 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 standardsrelated measures no later than the time at which it notifies nongovernmental 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 provincial or state government, and by non-governmental standardizing bodies in its territory. 9. 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. 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, provincial, or state government level; (b) the membership and participation of such Party, or its relevant federal, provincial or state 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 such systems and arrangements; (c) the location of notices published pursuant to Article 909, or where such information can be obtained;

(d) the location of the inquiry points referred to in paragraph 3; and (e) such Party's procedures for assessment of risk, factors it considers in conducting such 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 enquiry 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 enquiry point that is able to answer all reasonable enquiries 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 nongovernmental 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, upon the 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 its standardizing bodies to cooperate with the standardizing bodies 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 as requiring a Party 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 913: Committee on Standards-Related Measures 1. The Parties hereby establish a Committee on StandardsRelated 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 enquiry 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; (e) considering non-governmental, regional and multilateral developments regarding standards-related measures, including under the GATT; and (f) reporting annually to the Commission on the implementation of this Chapter. 3. The Committee shall meet upon the request of any Party and, unless the Parties otherwise agree, at least once each year.

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 such 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 or working groups (i) Land Transportation Standards Subcommittee, in accordance with Annex 913-A, (ii) Telecommunications Standards Subcommittee, in accordance with Annex 913-B, (iii) Automotive Standards Council, in accordance with Annex 913-C, and (iv) Subcommittee on Labelling of Textile and Apparel Goods, in accordance with Annex 913-D; (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, upon the request of another Party, take such reasonable measures as may be available to it to provide for the participation in the work of the Committee, where and as appropriate, of representatives of provincial or state governments in the activities of the Committee. 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 Party's standards-related measure, and so notifies the Committee, the Committee may facilitate such 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, such consultations shall, if agreed by the Parties involved, constitute consultations under Article 2006 (Consultations). 4. The Parties confirm that a Party asserting that a standardsrelated measure of another Party is inconsistent with the provisions of this Chapter shall have the burden of establishing such inconsistency. Article 915: Definitions 1. For purposes of this Chapter:

approval procedure means any registration, notification, or other mandatory administrative procedure for obtaining 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 relevant 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 Telecommunications 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); or

(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 telecommunication services; standard means a document, approved by a recognized body, that provides, for common and repeated use, rules, guidelines or characteristics for products, 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 product, 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 product characteristics or their related processes and production methods, or for services or 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 product, process or production or operating method; telecommunication service means a service provided by means of the transmission and reception of signals by any electromagnetic means. 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 - A Land Transportation Standards Subcommittee 1. The Land Transportation Standards Subcommittee, established under Article 913, 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) motor carrier operations, (i) no later than one and one-half years from 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 from the date of entry into force of this Agreement, for medical standards-related measures respecting drivers, (iii) no later than three years from the date of entry into force of this Agreement, for standardsrelated 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 work program established under Annex 913-C, (iv) no later than three years from the date of entry into force of this Agreement, for standardsrelated measures respecting each Party's supervision of motor carriers' safety compliance, and

(v) no later than three years from the date of entry into force of this Agreement, for standardsrelated measures respecting road signs; (b) rail operations, (i) no later than one year from the date of entry into force of this Agreement, for standardsrelated measures respecting operating personnel that are relevant to cross-border operations, and (ii) no later than one year from the date of entry into force of this Agreement, for standardsrelated measures respecting locomotives and other rail equipment; and (c) transportation of dangerous goods, no later than six years from 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 - B Telecommunications Standards Subcommittee 1. The Telecommunications Standards Subcommittee, established under Article 913, 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 the Parties' standards-related measures for authorized equipment as defined in Chapter 13 (Telecommunications). 3. The Subcommittee may address other appropriate standardsrelated 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 nongovernmental standardizing bodies. ======================================================================= ====== ANNEX 913 - C Automotive Standards Council

1. The Automotive Standards Council, established under Article 913, 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 other related issues. 3. To facilitate its objectives, the Council may establish subgroups, consultation procedures and other appropriate operational mechanisms. With the agreement of all the Parties, the Council may include state and provincial government or private sector representatives in its subgroups. 4. All Council recommendations shall require agreement of all the Parties. When the adoption of a new law is not required for a Party, the Council's recommendations shall be implemented by the Party within a reasonable period of time in accordance with the legal and procedural requirements and international obligations of the Party. Where the adoption of a new law is required for a Party, the Party shall make best efforts to secure the passage of such legislation and shall implement any new legislation within a reasonable period of time. 5. Recognizing the existing disparity in standards-related measures, the Council shall develop its work program for making compatible the national standards-related measures that apply to automotive goods and other related issues 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 such disparity. In developing its work program, the Council may address other closely related issues, including emissions from on-road and non-road mobile sources. 6. Each Party shall take such reasonable measures as may be available to it to promote the objectives of this Annex with respect to standards-related measures that are developed or maintained by state, provincial and local authorities and private sector organizations. The Council shall make every effort to assist these entities with these activities, especially the identification of priorities and the establishment of work schedules. ======================================================================= ====== ANNEX 913 - D Subcommittee on Labelling of Textile and Apparel Goods

1. The Subcommittee on Labelling of Textile and Apparel Goods, established under Article 913, shall comprise representatives of each Party. 2. This 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 agenda for this Work Program should include the following issues: (a) pictograms and symbols to replace required written information where possible 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 other Parties of each Party's national registration numbers for manufacturers or importers of textile and apparel goods.

Chapter Ten Government Procurement

Article 1001: Objectives The Parties shall strive to achieve the liberalization of their measures regarding government procurement, as specified by the obligations in this Chapter, so as to provide balanced, non-discriminatory, predictable and transparent government procurement opportunities for the suppliers of each Party. Article 1002: Scope and Coverage 1. Subject to Annexes 1002.1 through 1002.7, this Chapter applies to any measure regarding the procurement of goods or services or any combination thereof, by any entity listed in Annex 1002.1 (Federal Government Entities), Annex 1002.3 (Government Enterprises) and, when completed, Annex 1002.2 (State and Provincial Government Entities), where the value of the contract to be awarded is estimated, at the time of publication of a notice in accordance with Article 1010 (Invitation to Participate), to equal or exceed the applicable threshold as set forth in paragraph 3. 2. Where the contract to be awarded by the entity is not covered by this Chapter, this Chapter shall not be construed to cover any good or service component of that contract. However, no Party shall prepare, design or otherwise structure any procurement contract in order to avoid the obligations of this Chapter. 3. Subject to Annex 1002-A, the applicable thresholds in U.S. dollars are: (a) for entities listed in Annex 1002.1 (Federal Government Entities), (i) $50,000 for goods contracts, (ii) $50,000 for services contracts, except for construction services contracts, and (iii) $6.5 million for construction services contracts; and (b) for entities listed in Annex 1002.3 (Government Enterprises) (i) $250,000 for goods contracts, (ii) $250,000 for services contracts, except for construction services contracts, and

(iii) $8.0 million for construction services contracts. 4. Threshold values are denominated in real terms and therefore shall incorporate the inflation rate of the United States. The United States shall, every two years, calculate and notify to the other Parties the threshold values denominated in nominal terms according to of Annex 1002.8 (1) (Indexation and Conversion of Thresholds). 5. Each Party shall comply with Annex 1002.8 with respect to the calculation and conversion of the value of thresholds into national currencies. 6. For purposes of this Chapter, procurement includes procurement by such methods as purchase, lease or rental, with or without an option to buy, in accordance with the thresholds and coverage applicable in this Chapter. Procurement does not include the acquisition of fiscal agency or depository services, liquidation and management services for regulated financial institutions and sale and distribution services for government debt. 7. As between any Parties who are also party to the GATT Agreement on Government Procurement or any successor agreement to which such Parties are party, this Chapter shall prevail to the extent of any inconsistency between the provisions of such agreement and this Chapter. Article 1003: Valuation of Contracts 1. Each Party shall ensure that its entities, in determining whether any contract is subject to this Chapter, apply paragraphs 2 through 6 in calculating the value of that contract. 2. An entity, in calculating the value of a contract, shall take into account all forms of remuneration, including premiums, fees, commissions and interest. 3. An entity shall not select a valuation method, or divide procurement requirements into separate contracts, to avoid the application of this Chapter. 4. Where an individual requirement for a procurement results in: (a) the award of more than one contract, or (b) in contracts being awarded in separate parts, the basis for valuation shall be either: (c) the actual value of similar recurring contracts concluded over the previous fiscal year or 12 months adjusted, where possible, for anticipated changes in quantity and value over the subsequent twelve months; or (d) the estimated value of recurring contracts in the fiscal

year or 12 months subsequent to the initial contract. 5. 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 forth in subparagraph (b). 6. In cases in which tender documentation specifies the need for optional purchases, the basis for valuation shall be the total value of the maximum permissible procurement, inclusive of all possible optional purchases. Article 1004: National Treatment and Non-discrimination 1. With respect to all measures regarding government procurement covered by this Chapter, each Party shall accord to goods of any other Party, as determined in accordance with the rules of origin referred to in Article 1005(1) (Rules of Origin), to services of any other Party, as determined in accordance with Article 1005(2), and to the suppliers of such goods or services, treatment no less favorable than the most favorable treatment that it accords to: (a) goods, services and suppliers of that Party; and (b) goods, services and suppliers of any other Party. 2. With respect to all measures regarding government procurement 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 if the goods or services offered by that supplier for the particular procurement are goods or services of any other Party. 3. Paragraph 1 does not apply to customs duties and charges of any kind imposed on or in connection with importation, the method of levying such duties and charges, and other import regulations, including restrictions and formalities. 4. Each Party reserves the right to deny to an enterprise of any other Party the benefits of this Chapter in accordance with the

provisions of Article 1113 (Denial of Benefits), except subparagraph (a). Article 1005: Rules of Origin 1. No Party shall apply to goods that are imported from any other Party for purposes of government procurement covered by this Chapter, rules of origin that are different from or inconsistent with the rules of origin the Party applies in the normal course of trade, which will be the non-preferential rules set out in Chapter Three (for country of origin marking purposes) at such time as they become the rules of origin applied in the normal course of trade. 2. Notwithstanding any other provision of this Chapter, a Party may deny to an enterprise that is a supplier of services of another Party the benefits of this Chapter if: (a) nationals of any non-Party own or control that enterprise; and (b) that enterprise has no substantial business activities in the territory of the Party under whose laws it is constituted. Article 1006: Prohibition of Offsets Each Party shall ensure that its entities do not, in the qualification and selection of suppliers, goods or services, or in the evaluation of bids and the award of contracts, consider, seek or impose offsets. Article 1007: Technical Specifications 1. Each Party shall ensure that its entities do not, with the purpose or the effect of creating unnecessary obstacles to trade, prepare, adopt or apply any technical specification laying down: (a) the characteristics of the goods or services to be procured such as quality, performance, safety and dimensions, symbols, terminology, packaging, marking and labelling; (b) the processes and methods for their production related to the goods characteristics; or (c) requirements relating to conformity assessment. 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 service provider 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. Article 1008:Tendering Procedures 1. Each Party shall ensure that the tendering procedures of its entities: (a) are applied in a non-discriminatory manner; and (b) are consistent with the provisions of this Article and with Articles 1009 (Qualification of Suppliers) through 1016 (Limited Tendering). 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. No entity of a Party may, in the process of qualifying suppliers in tendering procedures, 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 of a Party shall be consistent with the following: (a) any 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) any 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 and its activity, if any, in the territory of the Party of the procuring entity; (d) no entity may misuse the process of, including the time required for, qualification in order to exclude suppliers of any other Party from a suppliers' list or from being considered for a particular procurement; (e) an entity shall recognize as qualified suppliers those suppliers of any other Party that meet the conditions for participation in a particular procurement; (f) an entity shall consider for a particular procurement those suppliers of any other 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 any such list or of their removal from it; (h) if, after publication of a notice in accordance with Article 1010 (Invitation to Participate), 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, upon 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, upon request of any other Party, to demonstrate such need; and (b) make efforts to minimize differences in the qualification procedures of its entities. 4. Nothing in paragraphs 2 and 3 shall prevent an entity from excluding any supplier on grounds such as bankruptcy or false declarations. Article 1010: Invitation to Participate 1. An entity shall, in accordance with paragraphs 2, 3 and 5, publish an invitation to participate for all procurements, except as otherwise provided for in Article 1016 (Limited Tendering), in the appropriate publication listed in Annex 1010.1 (Publications). 2. The invitation to participate shall take the form of a notice of proposed procurement, which notice 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 the timing when such options may be exercised, and (ii) in the case of recurring contracts, an estimate of the timing of the subsequent tender notices for the goods or services to be procured; (b) a statement as to whether the procedure is open or selective and whether it will involve negotiation; (c) any date for starting delivery, or completion of delivery, of 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 such an 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 and technical requirements to

be met 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, or more than one of these methods. 3. Notwithstanding paragraph 2, any entity listed in Annex 1002.2 (State and Provincial Government Entities) or Annex 1002.3 (Government Enterprises) may use, as an invitation to participate, a notice of planned procurement, which shall contain as much of the information referred to in paragraph 2 as is available to the entity but which 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 an application to be invited to tender; (c) the address at which requests for documents relating to the procurement should be made; (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. Any 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 information shall include at least the information referred to in paragraph 2. 5. Notwithstanding paragraph 2, any entity listed in Annex 1002.2 (State and Provincial Government Entities) or Annex 1002.3 (Government Enterprises) may use, as an invitation to participate, a notice regarding a qualification system. Any entity that uses such a notice shall, subject to the considerations referred to Article 1015 (8) (Submission, Receipt and Opening of Tenders and Awarding of Contracts), 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 contained in the notices referred to in paragraph 2. Information provided to one interested supplier shall be provided in a non-discriminatory manner to all other interested suppliers. 6. In the case of selective tendering procedures, any entity that maintains a permanent list of qualified suppliers shall publish annually in one of the publications listed in Annex 1010.1

(Publications) a notice containing the following information: (a) an enumeration of any 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 referred to in subparagraph (a) 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. If, 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 one supplier with respect to a particular procurement shall be given simultaneously to all other suppliers concerned and sufficiently in advance so as to provide all suppliers concerned adequate time to consider such information and to respond to it. 8. An entity shall indicate, in the notices referred to in this Article or in the publication in which the notices appear, that the procurement is covered by this Chapter. Article 1011: Selective Tendering Procedures 1. To ensure optimum effective competition between the suppliers of all Parties under selective tendering procedures, an entity of a Party 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, any 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 any selection, the entity shall provide for equitable opportunities for suppliers on the list. 3. Subject to Article 1009 (2)(f) (Qualification of Suppliers), an entity shall allow any 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. If an entity does not invite or admit a supplier to tender, the entity shall, upon 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 of a Party shall:

(a) in prescribing any time limit, provide adequate time to allow suppliers of the other Parties to prepare and submit tenders before the closing of the tendering procedures; (b) in determining any 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 procedures, the period for the receipt of tenders is no less than 40 days from the date of publication of the notice referred to in Article 1010 (Invitation to Participate); (b) in selective 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 the notice referred to in Article 1010 (Invitation to Participate), 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 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. If the date of initial issuance of invitations to tender does not coincide with the date of publication of the notice referred to in Article 1010 (Invitation to Participate), 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) (Invitation to Participate) 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) (Invitation to Participate), 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 the notice referred to in Article 1010 (Invitation to Participate); or (d) where an entity listed in Annex 1002.2 (State and Provincial Government Entities) or Annex 1002.3 (Government Enterprises) is using as an invitation to participate a notice referred to in of Article 1010 (5) (Invitation to Participate), 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 which shall be sufficiently long to enable responsive bidding and shall not be less than 10 days. 4. An entity shall, in establishing any 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 of procurement, except for Article 1010 (2)(h) (Invitation to Participate). It must also include the following information: (a) the address of the entity to which tenders should be sent; (b) the address where requests for supplementary information should be sent; (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 any tender 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 and technical requirement to be met and of any financial guarantee, information and documents required from suppliers; (g) a complete description of the goods or services required and any requirements to be fulfilled, 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 transport, insurance and inspection costs, and in the case of goods or services of any other Party, customs duties and other import charges, taxes and currency of payment; (i) the terms of payment; and (j) any other terms or conditions. 2. An entity shall:

(a) forward tender documentation at the request of any supplier that is participating in open procedures or has requested to participate in selective 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:

(a) in the context of procurements in which the entity has, in the notice referred to in Article 1010 (Invitation to Participate), indicated its intent to negotiate; or (b) when it appears from the evaluation of the tenders that no one tender is obviously the most advantageous in terms of the specific evaluation criteria set forth in the notices or tender documentation. 2. Negotiations shall be used primarily to identify the strengths and weaknesses in the tenders. 3. An entity shall treat all tenders in confidence. In particular, an entity may not provide to any person information intended to assist any supplier to bring its tender up to the level of any other tender.

4. An entity may not, in the course of negotiations, discriminate between different suppliers. In particular, an entity shall: (a) carry out any elimination of suppliers in accordance with the criteria set forth in the notices and tender documentation; (b) provide in writing all modifications to the criteria or to the 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 revised 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) if 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, conditions and provisions 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 permitted to give rise to any discriminatory practice. 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. An entity may not 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 procedures shall be received and opened under procedures and conditions guaranteeing the regularity of the openings. The entity shall retain the information on the opening of tenders and the information shall remain at the disposal of the competent authorities of the respective Party so that it may be used if required under the procedures of Article 1017 (Bid Challenge), Article 1019 (Provision of Information) 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 enquire 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 tender or the tender that in terms of the specific evaluation criteria set forth in the notices or tender documentation is determined to be the most advantageous; (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 the provisions of this Chapter.

5. No entity of a Party shall 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 within the territory of that Party. 6. An entity shall:

(a) upon request, promptly inform suppliers participating in tendering procedures of decisions on contract awards and, if so requested, inform them in writing; and (b) upon 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 and the characteristics and relevant advantages of the tender selected, as well as the name of the winning supplier. 7. An entity shall publish a notice in the appropriate publication listed in Annex 1010.1 (Publications) no later than 72 days after the award of a contract, which notice 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 and lowest tenders considered in the process of awarding the contract; and (f) the tendering procedure used. 8. Notwithstanding any other provision of this Article, an entity may withhold certain information on the award of a contract, where disclosure of such information would impede law enforcement or otherwise be contrary to the public interest or would prejudice the legitimate commercial interest of a particular person, or might prejudice fair competition between suppliers. Article 1016: Limited Tendering 1. An entity of a Party may, in the circumstances and subject to the conditions specified in paragraph 2, deviate from the provisions of Articles 1008 (Tendering Procedures) through 1015 (Submission, Receipt and Opening of Tenders and Awarding of Contracts), provided that such limited tendering is 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 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 when the tenders submitted either have resulted from collusion or do not conform to the essential requirements of the tender documentation, or when the tenders submitted come from suppliers who 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) when, for works of art or for reasons connected with the protection of patents, copyrights or other exclusive rights, proprietary information, confidential consulting services or, when 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 when, 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, when 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) when 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. When such contracts have been fulfilled, subsequent procurements of goods or services shall be subject to Articles 1008 (Tendering Procedures) through 1015 (Submission, Receipt and Opening of Tenders and Awarding of Contracts). 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. It does not extend to 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. This provision is intended to cover unusual disposals by firms which are not normally suppliers; or disposal of assets of businesses in liquidation or receivership. It is not intended to cover routine purchases from regular suppliers; and (h) for a contract awarded to the winner of an architectural design contest, on condition that the contest (i) has been organized in a manner that is consistent with the principles of this Chapter, notably as regards the publication, in the sense of Article 1010 (Invitation to Participate), of an invitation to suitably qualified suppliers to participate in the contest, (ii) has been organized with a view to awarding the design contract to the winner, and (iii) is to be judged by an independent jury. 3. An entity shall prepare a report in writing on each contract awarded by it under the provisions of 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. Each report shall remain with the entity concerned at the disposal of the competent authorities of the respective Party, so that it may be used if required under the procedures of Article 1017 (Bid Challenge), Article 1019 (Provision of Information) or Chapter 20 (Institutional Arrangements and Dispute Settlement Procedures). 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 procurements covered by this Chapter in accordance with the following: (a) each Party shall allow suppliers of any good or service of another Party to submit bid challenges concerning any aspect of the procurement process, which for purposes of this Article begins after an entity has decided on its procurement requirement, leading up to and including 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 upon an unsuccessful attempt at such a resolution, no Party shall prevent the supplier from initiating a bid challenge or seeking any other relief available to such supplier; (e) a Party may require a supplier to notify the entity upon 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) upon receipt of a bid challenge, the reviewing authority shall expeditiously investigate the challenge, and may be required to limit its considerations to the challenge itself; (i) 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 such a delay would be contrary to the public interest; (j) the reviewing authority shall issue a recommendation to resolve the challenge, which may include directing the entity to reevaluate offers, terminate or re-compete the contract in question; (k) entities normally shall follow the recommendations of the reviewing authority; (l) each Party should authorize its reviewing authority, following the conclusion of a bid challenge, 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 the obligations of this Chapter; (m) 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 all interested persons; (n) each Party shall specify in writing and shall make

generally available all its bid challenge procedures; and (o) each Party shall ensure that each of its entities maintains complete documentation concerning 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 the obligations of 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. If a Party imposes such a requirement, the 10 working day period described in paragraph 1(f) shall begin not earlier than the date that the notice is published or the tender documentation is made available. Article 1018: Exceptions 1. Notwithstanding Article 2102 (National Security), for purposes of this Chapter nothing 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. 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 listed in Annex 1010.1 (Publications). 2. Each Party shall:

(a) be prepared, upon request, to explain to any other Party its government procurement procedures; and (b) ensure that its entities, upon request from a supplier, promptly explain their procurement practices and procedures. 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 and further to Article 1015(6) (Submission, Receipt and Opening of Tenders and Awarding Contracts). To this end, the Party of the procuring entity shall provide information on both the characteristics and relative advantages of the winning tender and the contract price. In cases where release of this information would prejudice competition in future tenders, the information shall not be released except after consultation with and agreement of the Party which gave the information to the requesting Party. 4. Each Party shall provide, upon request, to any other 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 shall 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 each year an annual report in accordance with the following reporting requirements, unless the Parties unanimously agree to modify such requirements: (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 covered by this Chapter above the applicable threshold values, broken down by entities, categories of goods or services according to uniform classification systems to be determined by the Parties, and country of origin of the contract; (c) statistics, broken down by entities, and by categories of goods or services, on the number and total value of contracts awarded under each use of the procedures

described in Article 1016 (Limited Tendering), and country of origin of the contract; and (d) statistics, broken down by entities, on the number and total value of contracts awarded under derogations to the Chapter listed in the appropriate annexes. 8. With respect to the reports described in paragraph 7 that pertain to entities listed in Annex 1002.2 (State and Provincial Government Entities), each Party may organize such reports by state or province. 9. Each Party shall give favorable consideration, where appropriate, to a request from any other Party for the exchange of additional information on a reciprocal basis. 10. The Parties shall undertake and complete by the date of entry into force of this Agreement further technical work to make available the complete goods and services classification list to be used by their entities in procuring goods and services under this Chapter and develop concordances between each of these systems, and, if necessary, the agreed uniform system. 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 such programs as it conducts. 3. The training and orientation programs referred to in paragraph 2 include: (a) training of personnel directly involved in government procurement procedures; (b) training of suppliers interested in pursuing government procurement opportunities; (c) explanation and description of specific elements of each Party's government procurement system, such as the bid challenge mechanism; and (d) information about government procurement market opportunities. 4. Each Party shall establish at least one contact point to provide the information regarding the training and orientation programs pertaining to its government procurement system.

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 no less than once a 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 their government procurement procedures; (b) identification of small businesses interested in becoming trading partners of small businesses in the territory of any other Party; (c) development of data bases of small businesses in the territory of each Party for use by entities of any other Party wishing to procure from small businesses; (d) consultations regarding the factors that each Party uses in establishing its criteria for eligibility for small business programs, if any; and (e) actions to address any related matter. Article 1022: Rectifications or Modifications 1. A Party may make modifications to its coverage under this Chapter only in exceptional circumstances. 2. Where a Party makes modifications to 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 its schedule of the appropriate Annex; and (c) propose to the other Parties appropriate compensatory adjustments to its coverage in order to maintain a comparable level of coverage as existed prior to the modification. The other Parties shall consider whether any proposed adjustment made pursuant to subparagraph (c) is adequate to maintain a comparable level of the mutually agreed coverage under this Chapter. Where any Party does not agree that the proposed adjustment is sufficient, it may have recourse to dispute

settlement procedures under Chapter Twenty (Institutional Arrangements and Dispute Settlement Procedures). 3. Notwithstanding paragraphs 1 and 2, a Party may make rectifications of a purely formal nature and minor amendments to its Annexes 1002.1 through 1002.7, provided that it notifies such rectifications to the other Parties and its Section of the Secretariat, and any other Party does not object to such proposed rectification within 30 days. In such cases, subparagraph 2(c) shall not apply. If a Party does object that the proposed rectification would result in a substantive change in the balance of coverage under this Chapter, it may have recourse to dispute settlement procedures under Chapter Twenty (Institutional Arrangements and Dispute Settlement Procedures). 4. Notwithstanding any other provision of this Chapter, a Party may undertake legitimate 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, subparagraph 2(c) shall not apply. No Party shall undertake such reorganizations or programs to avoid the obligations of this Chapter. If a Party objects to the withdrawal on the grounds that the functions continue to be performed by a government entity, that 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 subject to the obligations of this Chapter. 2. If, upon the public offering of shares of an entity listed in Annex 1002.3 (Government Enterprises), or through other methods, such entity is no longer subject to federal government control, the respective Party may delete the entity from Annex 1002.3 (Government Enterprises), and withdraw the entity from the obligations of the Chapter, upon notification to the other Parties. 3. If 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 towards the substantial liberalization of their respective procurement markets. The Parties recognize that such liberalization would ensure more competitive opportunities for all suppliers of the Parties in their respective procurement markets.

2. The Parties will review all features of government procurement practices for the purposes of: (a) assessing the workings of the procurement system; (b) seeking to expand the coverage of this Chapter; (c) including within the obligations of this Chapter (i) government enterprises, and (ii) legislated and administrative exceptions; and (d) reviewing thresholds. 3. Prior to the review endeavor to consult with with a view to obtaining basis, to include within procurement by state and enterprises. specified in paragraph 2, the Parties will their state and provincial governments commitments, on a voluntary and reciprocal the obligations of this Chapter provincial government entities and

4. If the negotiations pursuant to Article 96B of the GATT Agreement on Government Procurement (the Code) are completed prior to the new review specified in paragraph 2, 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 the obligations of 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 no later than December 31, 1998, on the subject of electronic transmission of tender information with a view to exploring the feasibility of amending this Chapter to permit electronic transmission as an additional or alternate means of publication. Article 1025: Definitions For purposes of this Chapter: construction services contract means a contract which has as its objective the realization by whatever means of civil or building works, as specified in the Appendix of Annex 1002.5 (Construction Services); entity means an entity listed in Annexes 1002.1 (Federal Government Entities), Annex 1002.2 (State and Provincial Government Entities) or Annex 1002.3 (Government Enterprises) to this Chapter;

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, and can involve requirements of local content, licensing of technology, investment, counter-trade or similar requirements. services includes construction services contracts, unless otherwise specified; supplier means a person that has provided or could provide goods or services in response to an entity's call for tender; and tendering procedures means: (a) open tendering procedures, being those procedures under which all interested suppliers may submit a tender; (b) selective tendering procedures, being those procedures under which, consistent with Article 1011 (3) (Selective Tendering Procedures), those suppliers invited to do so by an entity may submit a tender; and (c) limited tendering procedures, being those procedures where an entity contacts suppliers individually, only in the circumstances and under the conditions specified in Article 1016 (Limited Tendering). ANNEX 1002.1 Federal Government Entities Schedule of Canada 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. Department of Agriculture Department of Communications Department of Consumer and Corporate Affairs Department of Employment and Immigration Immigration and Refugee Board Canada Employment and Immigration Commission Department of Energy, Mines and Resources Atomic Energy Control Board National Energy Board Department of the Environment Department of External Affairs Canadian International Development Agency (on its own account) Department of Finance Office of the Superintendent of Financial Institutions Canadian International Trade Tribunal Municipal Development and Loan Board Department of Fisheries and Oceans Department of Forestry Department of Indian Affairs and Northern Development Department of Industry, Science and Technology Science Council of Canada National Research Council of Canada Natural Sciences and Engineering Research Council of Canada Department of Justice

25. Canadian Human Rights Commission 26. Statute Revision Commission 27. Supreme Court of Canada 28. Department of Labour 29. Canada Labour Relations Board 30. Department of National Health and Welfare 31. Medical Research Council 32. Department of National Revenue 33. Department of Public Works 34. Department of Secretary of State of Canada 35. Social Sciences and Humanities Research Council 36. Office of the Co-ordinator, Status of Women 37. Public Service Commission 38. Department of the Solicitor General 39. Correctional Service of Canada 40. National Parole Board 41. Department of Supply and Services (on its own account) 42. Canadian General Standards Board 43. Department of Transport (Pursuant to 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. Multiculturalism and Citizenship 67. The National Archives of Canada 68. National Farm Products Marketing Council 69. The National Library 70. National Transportation Agency 71. Northern Pipeline Agency 72. Patented Medicine Prices Review Board 73. Petroleum Monitoring Agency 74. Privy Council Office 75. Canadian Intergovernmental Conference Secretariat 76. Commissioner of Official Languages

77. Economic Council of Canada 78. Public Service Staff Relations Office 79. Office of the Secretary to the Governor General 80. Office of the Chief Electoral Officer 81. Federal Provincial Relations Office 82. Procurement Review Board 83. Royal Commission on Electoral Reform and Party Financing 84. Royal Commission on National Passenger Transportation 85. Royal Commission on New Reproductive Technologies 86. Royal Commission on the Future of the Toronto Waterfront 87. Statistics Canada 88. Tax Court of Canada, Registry of the 89. Agricultural Stabilization Board 90. Canadian Aviation Safety Board 91. Canadian Centre for Occupational Health and Safety 92. Canadian Transportation Accident Investigation and Safety Board 93. Director of Soldier Settlement 94. Director, The Veterans' Land 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 The following goods purchased by the Department of National Defence and the Royal Canadian Mounted Police are included in the coverage of this Chapter, subject to the provisions of Article 1018(1) (Exceptions). (Numbers refer to the Federal Supply Classification code) 22. Railway equipment 23. Motor vehicles, trailers and cycles (except buses in 2310, 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 (except 4220 Marine Life-saving and diving equipment, 4230 Decontaminating and impregnating equipment) 43. Pumps and compressors 44. Furnace, steam plant, drying equipment and nuclear

reactors 45. Plumbing, heating and sanitation equipment 46. Water purification and sewage treatment equipment 47. Pipe, tubing, hose and fittings 48. Valves 49. Maintenance and repair shop equipment 52. Measuring tools 53. Hardware and abrasives 54. Prefabricated structures and scaffolding 55. Lumber, millwork, plywood and veneer 56. Construction and building materials 61. Electric wire and power and distribution equipment 62. Lighting fixtures and lamps 63. Alarm and signal systems 65. Medical, dental and veterinary equipment and supplies 66. Instruments and laboratory equipment (except 6615: Automatic pilot mechanisms and airborne Gyro components 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 (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 (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 93. Non-metallic fabricated materials 94. Non-metallic crude materials 96. Ores, minerals and their primary products 99. Miscellaneous Notes: 1. Notwithstanding anything in this Annex, this Chapter does not apply to procurements in respect of:

(a) the Departments of Transport Canada, Communications Canada and Fisheries and Oceans respecting FSCs 70 (automatic data processing equipment, software supplies and support equipment), 74 (office machines, text processing systems and visible record equipment) and 36 (special industry machinery); and

(b) agricultural products made in furtherance of agricultural support programs or human feeding programs. 2. The General Notes for Canada as set out in Annex 1002.7 apply to this Annex. ======================================================================= ====== ANNEX 1002.1 Schedule of Mexico 1. Secretar?a de Gobernaci?n - Centro Nacional de Estudios Municipales - Comisi?n Calificadora de Publicaciones y Revistas Ilustradas - Consejo Nacional de Poblaci?n - Archivo General de la Naci?n - Instituto Nacional de Estudios Hist?ricos de la Revoluci?n Mexicana - Patronato de Asistencia para la Reincorporaci?n Social - Centro Nacional de Prevenci?n de Desastres - Consejo Nacional de Radio y Televisi?n - Comisi?n Mexicana de Ayuda a Refugiados Secretar?a de Relaciones Exteriores - Secci?n Mexicana de la Comisi?n Intercional de L?mites y Aguas M?xico-EEUU - Secci?n Mexicana de la Comisi?n Internacional de L?mites y Aguas M?xico-Guatemala Secretar?a de Hacienda y Cr?dito P?blico - Comisi?n Nacional Bancaria - Comisi?n Nacional de Valores - Comisi?n Nacional de Seguros y Fianzas - Instituto Nacional de Estadistica , Geograf?a e Inform?tica Secretar?a de Agricultura y Recursos Hidraulicos - Instituto Mexicano de Tecnolog?a del Agua - Instituto Nacional de Investigaciones Forestales y Agropecuarias - Apoyos a Servicios a la Comercializaci?n Agropecuaria, Aserca Secretar?a de Comunicaciones y Transportes (including the Instituto Mexicano de Comunicaciones and the Instituto Mexicano de Transporte) - Comisi?n Nacional Coordinadora de Puertos Secretar?a de Comercio y Fomento Industrial Secretar?a de Educaci?n P?blica - Instituto Nacional de Antropolog?a e Historia - Instituto Nacional de Bellas Artes y Literatura - Radio Educaci?n

2.

3.

4.

5.

6. 7.

- Centro de Ingenier?a y Desarrollo Industrial - Consejo Nacional para la Cultura y las Artes - Comisi?n Nacional del Deporte 8. Secretar?a de Salud - Administraci?n del Patrimonio de la Beneficencia P?blica - Centro Nacional de la Transfusi?n Sanguinea - Gerencia General de Farmacias - Gerencia General de Biol?gicos y Reactivos - Consejo Interno del Centro de Obras y Equipamiento en Salud - Instituto de la Comunicaci?n Humana Dr. Andr?s Bustamante Gurr?a - Instituto Nacional de Medicina de la Rehabilitaci?n - Instituto Nacional de Ortopedia - Consejo Nacional para la Prevenci?n y Control del S?ndrome de la Inmunodeficiencia Adquirida, Conasida Secretar?a del Trabajo y Previsi?n Social - Procuradur?a Federal de la Defensa del Trabajo - Unidad Coordinadora del Empleo, Capacitaci?n y Adiestramiento Secretar?a de la Reforma Agraria - Instituto de Capacitaci?n Agraria Secretar?a de Pesca - Instituto Nacional de la Pesca Procuradur?a General de la Rep?blica Secretar?a de Energia Minas e Industria Paraestatal - Comisi?n Nacional de Seguridad Nuclear y Salvaguardias - Centro de Promoci?n y Evaluaci?n de Proyectos - Centro Nacional de Ahorro Energ?tico Secretar?a de Desarrollo Social Secretar?a de Turismo Secretar?a de la Contralor?a General de La Federaci?n Comisi?n Nacional de Zonas Aridas Comisi?n Nacional de Libros de Texto Gratuito Comisi?n Nacional de Derechos Humanos Consejo Nacional de Fomento Educativo Secretar?a de la Defensa Nacional Secretar?a de Marina The following products 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

9.

10. 11. 12. 13.

14. 15. 16. 17. 18. 19. 20. 21. 22.

paragraph 1 in Article 1018(1) (Exceptions). (Numbers refer to the Federal Supply Classification Code, FSC) 22. Railway equipment 23. Motor vehicles, trailers and cycles (except buses in 2310, 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 machinery 35. Service and trade equipment 36. Special industry machinery 37. Agricultural machinery and equipment 38. Construction, mining, excavating and highway maintenance equipment 39. Materials handling equipment 40. Rope, cable, chain and fittings 41. Refrigeration and air conditioning equipment 42. Fire fighting, rescue and safety equipment 43. Pumps and compressors 44. Furnace, steam plant, drying equipment and nuclear reactors 45. Plumbing, heating and sanitation equipment 46. Water purification and sewage treatment equipment 47. Pipe, tubing, hose and fittings 48. Valves 49. Maintenance and repair shop equipment 52. Measuring tools 53. Hardware and abrasives 54. Prefabricated structures and scaffolding 55. Lumber, millwork, plywood and veneer 56. Construction and building materials 61. Electric wire and power and distribution equipment 62. Lighting fixtures and lamps 63. Alarm and signal systems 65. Medical, Dental, and Veterinary Equipment and Supplies 66. Instruments and laboratory equipment 67. Photographic equipment 68. Chemicals and chemical products 69. Training aids and devices 70. General purpose ADPE, software, supplies and support equipment 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 (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 93. Non-metallic fabricated materials 94. Non-metallic crude materials 96. Ores, minerals and their primary products (except 9620: minerals, natural and synthetic) 99. Miscellaneous Notes: 1. National security exceptions include procurements made in support of safeguarding nuclear materials or technology. 2. The General Notes for Mexico as set out in Annex 1002.7 apply to this Annex. ======================================================================= ====== ANNEX 1002.1 Schedule of the United States 1. Department of Agriculture (This Chapter does not apply to procurement of agricultural products 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 products and services 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 suppliers of goods and services of Canada, the obligations of this Chapter will apply to procurements by the Bureau of Reclamation of the Department of Interior only at such time as the obligations of this Chapter take effect for procurements by Canadian Provincial 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 (Pursuant to 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 (This Chapter does not apply, pursuant to Article 1018, to national security procurements made in support of safeguarding nuclear materials or technology and entered into under the authority of the Atomic Energy Act; and to oil purchases related to the Strategic Petroleum Reserve.)

14. 51 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 41. 42. 43. 44. 45. 46. 47. 48. 49. 50. 51. 52. 53. 54. 55. 56.

General Services Administration (except Federal Supply Groups and 52 and Federal Supply Class 7340) National Aeronautics and Space Administration The Department of Veterans Affairs Environmental Protection Agency United States Information Agency National Science Foundation Panama Canal Commission Executive Office of the President Farm Credit Administration National Credit Union Administration Merit Systems Protection Board ACTION United States Arms Control and Disarmament Agency The Office of Thrift Supervision The Federal Housing Finance Board National Labor Relations Board National Mediation Board Railroad Retirement Board American Battle Monuments Commission Federal Communications Commission Federal Trade Commission Inter-State Commerce Commission Securities and Exchange Commission Office of Personnel Management United States International Trade Commission Export-Import Bank of the United States Federal Mediation and Conciliation Service Selective Service System Smithsonian Institution Federal Deposit Insurance Corporation Consumer Product Safety Commission Equal Employment Opportunity Commission Federal Maritime Commission National Transportation Safety Board Nuclear Regulatory Commission Overseas Private Investment Corporation Administrative Conference of the United States Board for International Broadcasting Commission on Civil Rights Commodity Futures Trading Commission The Peace Corps National Archives and Records Administration Department of Defense, including the Army Corps of Engineers This Chapter will not apply to the following purchases of the DOD:

(a) Federal Supply Classification (FSC) 83 - all elements of this classification 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) speciality 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 per cent; silicon, 0.60 per cent; or copper, 0.06 per cent; or which contains more than 0.25 per cent of any of the following elements: aluminium, chromium, cobalt, columbium, olybdenum, nickel, titanium, tungsten, or vanadium; (2) metal alloys consisting of nickel, ironnickel and cobalt base alloys containing a total of other alloying metals (except iron) in excess of 10 per cent; (3) titanium and titanium alloys; or (4) zirconium base alloys; (f) FSC 19 and 20 - that part of these classifications 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) (Exceptions): 10, 12, 13, 14, 15, 16, 17, 19, 20, 28, 31, 58, 59 and 95. This Chapter will generally apply to DOD purchases of the following FSC categories subject to United States Government determinations under the provisions of Article 1018(1) (Exceptions): 22. Railway Equipment 23. Motor Vehicles, Trailers, and Cycles (except buses in 2310) 24. Tractors 25. Vehicular Equipment Components 26. Tires and Tubes 29. Engine Accessories 30. Mechanical Power Transmission Equipment 32. Woodworking Machinery and Equipment 34. Metalworking Machinery 35. Service and Trade Equipment 36. Special Industry Machinery 37. Agricultural Machinery and Equipment 38. Construction, Mining, Excavating, and Highway Maintenance Equipment 39. Materials Handling Equipment 40. Rope, Cable, Chain and Fittings 41. Refrigeration and Air Conditioning Equipment 42. Fire Fighting, Rescue and Safety Equipment 43. Pumps and Compressors 44. Furnace, Steam Plant, Drying Equipment and Nuclear Reactors 45. Plumbing, Heating and Sanitation Equipment 46. Water Purification and Sewage Treatment Equipment 47. Pipe, Tubing, Hose and Fittings 48. Valves 49. Maintenance and Repair Shop Equipment 52. Measuring Tools 53. Hardware and Abrasives 54. Prefabricated Structures and Scaffolding 55. Lumber, Millwork, Plywood and Veneer 56. Construction and Building Materials

61. Electric Wire, and Power and Distribution Equipment 62. Lighting Fixtures and Lamps 63. Alarm and Signal Systems 65. Medical, Dental, and Veterinary Equipment and Supplies 66. Instruments and Laboratory Equipment 67. Photographic Equipment 68. Chemicals and Chemical Products 69. Training Aids and Devices 70. General Purpose ADPE, Software, Supplies and Support Equipment 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 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 93. Non-metallic Fabricated Materials 94. Non-metallic Crude Materials 96. Ores, Minerals and their Primary Products 99. Miscellaneous Note: The General Notes for the United States as set out in Annex 1002.7 apply to this Annex. ======================================================================= ====== ANNEX 1002.2 State and Provincial Government Entities Coverage under this Annex will be addressed following consultations with state and provincial governments under the terms and conditions set out in Article 1024 (Further Negotiations). Note: The General Notes as set out in Annex 1002.7 apply to this Annex. ======================================================================= ====== ANNEX 1002.3 Government Enterprises

Schedule of Canada 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. Canada Post Corporation National Capital Commission St. Lawrence Seaway Authority Royal Canadian Mint Canadian National Railways Via Rail Canadian Museum of Civilization Canadian Museum of Nature National Gallery of Canada National Museum of Science and Technology Defence Construction (1951) Ltd.

Notes: 1. With respect to procurements by Canadian National Railways, St. Lawrence Seaway Authority and Via Rail, coverage is subject to Article 1019(5) (Provision of Information), respecting the protection of the commercial confidentiality of information provided. 2. The General Notes for Canada as set out in Annex 1002.7 apply to this Annex. Schedule of Mexico Printing and Editorial 1. Talleres Gr?ficos de la Naci?n 2. Productora e Importadora de Papel S.A de C.V., Pipsa Communications and Transportation 3. Aeropuertos y Servicios Auxiliares, ASA 4. Caminos y Puentes Federales de Ingreso y Servicios Conexos, Capufe 5. Puertos Mexicanos 6. Servicio Postal Mexicano 7. Ferrocarriles Nacionales de M?xico, Ferronales 8. Telecomunicaciones de M?xico, Telecom Industry 9. Petr?leos Mexicanos, Pemex (This Chapter does not apply to procurement of fuels and gas.) 10. Comisi?n Federal de Electricidad, CFE 11. Consejo de Recursos Minerales 12. Comisi?n de Fomento Minero Commerce 13. Compa??a Nacional de Subsistencias Populares, Conasupo (This Chapter does not apply to procurement of agricultural products made in furtherance of agricultural support programmes or human feeding programmes.) 14. Bodegas Rurales Conasupo, S.A. de C.V. 15. Distribuidora e Impulsora de Comercio, Diconsa 16. Leche Industrializada Conasupo, S.A. de C.V., Liconsa (This

Chapter does not apply to procurement of agricultural products made in furtherance of agricultural support programmes or human feeding programmes.) 17. Procuradur?a Federal del Consumidor 18. Instituto Nacional del Consumidor 19. Laboratorios Nacionales de Fomento Industrial 20. Servicio Nacional de Informaci?n de Mercados Social Security 21. Instituto de Seguridad y Servicios Sociales de los Trabajadores del Estado, ISSSTE 22. Instituto Mexicano del Seguro Social, IMSS 23. Sistema Nacional para el Desarrollo Integral de la Familia, DIF (This Chapter does not apply to procurement of agricultural products made in furtherance of agricultural support programmes or human feeding programmes.) 24. Servicios Asistenciales de la Secretar?a de Marina 25. Instituto de Seguridad Social para las Fuerzas Armadas Mexicanas 26. Instituto Nacional Indigenista, INI 27. Instituto Nacional Para la Educaci?n de los Adultos 28. Centros de Integraci?n Juvenil 29. Instituto Nacional de la Senectud Others 30. Comite Administrador del Programa Federal de Construcci?n de Escuelas, Capfce 31. Comisi?n Nacional del Agua, CNA 32. Comisi?n Para la Regularizaci?n de la Tenencia de la Tierra 33. Consejo Nacional de Ciencia y Tecnolog?a, Conacyt 34. Notimex, S.A . de C.V. 35. Instituto Mexicano de Cinematograf?a 36. Loter?a Nacional para la Asistencia P?blica 37. Pron?sticos Deportivos Notes: 1. National security exceptions include procurements made in support of safeguarding nuclear materials or technology. 2. The General Notes for Mexico as set out in Annex 1002.7 apply to this Annex. Schedule of the United States 1. 2. Tennessee Valley Authority Power Marketing Administrations of the Department of Energy - Bonneville Power Administration - Western Area Power Administration - Southeastern Power Administration - Southwestern Power Administration - Alaska Power Administration St. Lawrence Seaway Development Corporation

3.

Notes:

1. For suppliers of goods and services of Canada, the obligations of this Chapter will apply to procurements by the Tennessee Valley Authority and the Power Marketing Administrations of the Department of Energy only at such time as the obligations of this Chapter take effect for procurements by Canadian Provincial Hydro utilities. 2. The General Notes for the United States as set out in Annex 1002.7 apply to this Annex. ======================================================================= ====== ANNEX 1002.4 Services I. General Provisions

1. Except for the services listed in Part II of this Annex, all services procured by the entities listed in Annex 1002.1 (Federal Government Entities) and Annex 1002.3 (Government Enterprises) are subject to this Chapter. 2. Contracts for construction services are subject to this Chapter as specified in Annex 1002.5 (Construction Services). 3. The Parties shall adopt a universal list of services for reporting purposes, which is indicative of the services procured by the entities of the Parties, and is contained in the Appendix to this Annex. 4. The Parties shall update, as appropriate, the list of universal services included in the Appendix to this Annex at such time as they mutually agree. 5. Notwithstanding paragraph 1, for Mexico only the services included in the Temporary Schedule of Mexico will be subject to this Chapter, until such time as Mexico has completed its schedule under Part II pursuant to paragraph 6. 6. Mexico will develop and, after consultations with the other Parties, complete its list of services set out under the Schedule of Mexico in Part II of this Annex no later than July 1, 1995. Temporary Schedule of Mexico: Services Included (Based on the United Nations Central Product Classification, CPC) Professional Services 863 Taxation services (excluding legal services) 8671 Architectural services 86711 Advisory and pre-design architectural services 87612 Architectural design services 87713 Contract administration services 86714 Combined architectural design and contract

administration services 86719 Other architectural services 8672 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 8673 Integrated engineering services 86731 Integrated engineering services for transportation, infrastructure turnkey projects 86732 Integrated engineering and project management services for water supply and sanitation works turnkey projects 86733 Integrated engineering services for the construction of manufacturing turnkey projects 86739 Integrated engineering services for other turnkey projects 8674 Urban planning and landscape architectural services Computer and Related Services 841 Consultancy services related to the installation of computer hardware 842 Software implementation services, including systems and software consulting services, systems analysis, design, programming and maintenance services 843 Data processing services, including processing, tabulation and facilities management services 844 Data base services 845 Maintenance and repair services of office machinery and equipment including computers 849 Other computer services Real Estate Services 821 Real estate services involving own or leased property 822 Real estate services on a fee or contract basis Rental/Leasing Services without Operators 831 Leasing or rental services concerning machinery and equipment without operator, including computers 832 Leasing or rental services concerning personal and household goods (excluding in 83201, the rental of prerecorded records, sound cassettes, CD's and excluding 83202, rental services concerning video tapes) Other Business Services 865 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 5115 Site preparation for mining 8675 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 663 Repair services of personal and household goods 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 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 642/3 Food and beverage serving services Travel agency and tour operators services 7471 Travel agency and tour operator services II. Services Excluded from Coverage [Subject to review] The following services contracts are excluded in their entirety by the Parties: Schedule of Canada (Based on the United Nations Central Product Classification, CPC) CPC 1. 71 72

Transport, storage and communication services - Land Transport services - Water Transport services

73

- Air Transport Services

- Supporting and Auxiliary Transport services (except 7471: Travel Agencies and Tour Operator services) 74 - Post and Telecommunication services (except 7512: Courier services and 7523: Data Transmission services) 75 Note: All transportation services, including related repair and overhaul and launching services and transportation services, where incidental to procurement contracts, are not subject to this Chapter. 2. Business services; agricultural, mining and manufacturing services - Financial, Intermediation services and Auxiliary services therefor 81 - Leasing or rental services concerning televisions, radios, video cassette recorders and related equipment and accessories 83201 - Leasing or rental services concerning video tapes 83202 - Research and Development services 85 - Legal services (except: Advisory services on Foreign Law) 861 - Legal services incidental to Taxation Services 863 - Market Research and Public Opinion Polling services 864 - Financial Management consulting services (except corporate tax) 86502 - Public relations services 86506 - Services related to management consulting 866 - Related scientific and technical consulting services 8675 - Business Services, n.e.c. (except 8740: Building cleaning services and 8760: Packaging services) 87 - Services incidental to agriculture, hunting and forestry (except 8814: services incidental to forestry and logging; and 8830: services incidental to mining) 881 - Services incidental to fishing 882 - Services incidental to manufacturing, except to the manufacture of metal products, machinery and

equipment 884 - Services incidental to the manufacture of metal products, machinery and equipment (except 8852: Manufacture of fabricated metal products, except machinery and equipment on a fee or contract basis) 885 - Repair services, n.e.c. of motor vehicles, trailers and semi-trailers, on a fee or contract basis 8867 - Repair services of other transport equipment, on a fee or contract basis 8868 - Services incidental to energy distribution 887 - Intangible assets 89 3. 92 93 95 96 97 Community, Social and Professional Services - Education services - Health and Social Services - Services of Membership Organizations - Recreation, cultural and sporting services - Other services

- Services provided by extraterritorial organizations and bodies 99 4. Contracts of the departments of Transport Canada, Communications Canada and Fisheries and Oceans respecting FSCs 70 (automatic data processing equipment, software supplies and support equipment), 74 (office machines, text processing systems and visible record equipment), 36 (special industry machinery). Research and development services. Dredging. All services purchased in support of military forces located overseas. Management and operation contracts awarded to federally-funded research and development centers or related to carrying out government sponsored research programs. Public utilities services. Printing and publishing.

5. 6. 7. 8.

9. 10. Note:

The General Notes for Canada as set out in Annex 1002.7 apply to this Annex. Schedule of Mexico (Based on the United Nations Central Product Classification, CPC) CPC 1. 71 72 73 74 75

All transportation services, including transportation services incidental to procurement contracts: - Land transportation Water transport Air transport Supporting and auxiliary transport

- Post and telecommunication

- Repair services of other transport equipment, on a fee or contract basis 8868 2. 3. 4. All risk-sharing contracts by Pemex. Public utilities services (including telecommunications, transmission, water or energy services). Management and operation contracts awarded to federally-funded research and development centers or related to carrying out government sponsored research programs. Financial services Research and development services Confidential consulting services (provided that they are not used with a view to avoiding maximum possible competition or in a manner that would constitute a means of discrimination among suppliers of the other Parties or protection to Mexican suppliers). The General Notes for Mexico as set out in Annex 1002.7 apply to this Annex. Schedule of the United States (Based on the Procurement Data System Services Codes) FSC

5. 6. 7.

Note:

1. V JO19 J999 KO19

Transportation and related services (except V231: Lodging and Hotel/Motel; and V302: travel agent) - Transportation - Maintenance, Repair and Rebuilding of Ships - Non-nuclear Ship Repair - Modification of Ships In addition, transportation services, where incidental to procurement contracts, are not subject to this Chapter. J998 and

2. Dredging Y216 3. 4. All services purchased in support of military forces overseas.

Management and operation contracts awarded to - federally-funded research and development centers (FFRDCs) or related to carrying out government-sponsored research programs (classification to be clarified) M181-184 - by DOD, DOE, and NASA M 5. S1 D304 D305 D316 Public utilities and telecommunications services: - Utilities - ADP Telecommunications and Transmission Services - ADP Teleprocessing and Timesharing Services - Telecommunications Network Management Services

- Automated News Services, Data Services, or other information D317 - Other ADP and Telecommunications services D399 6. A Research and Development services

Note: The General Notes for the United States as set out in Annex 1002.7 apply to this Annex. Appendix to ANNEX 1002.4 Universal List of Services ANNEX 1002.5 Construction Services

I.

General Provisions

1. Except for the construction services listed in Part II of this Annex, all construction services as specified in the Appendix to this Annex, which are procured by the entities listed in Annex 1002.1 (Federal Government Entities) and Annex 1002.3 (Government Enterprises) are subject to this Chapter. 2. The Parties will update, as appropriate, the list of construction services included in the Appendix at such time as they mutually agree. II. Construction Services Excluded from Coverage

The following services contracts are excluded in their entirety by the Parties: Schedule of Canada 1. Dredging.

2. Construction contracts tendered by or on behalf of Department of Transport. Note: The General Notes for Canada as set out in Annex 1002.7 apply to this Annex. Schedule of Mexico All risk-sharing contracts by Pemex. Notes: The General Notes for Mexico as set out in Annex 1002.7 apply to this Annex. Schedule of the United States Dredging. Notes: 1. In accordance with the obligations of this Chapter, buy national requirements on articles, supplies, and materials acquired for use in construction contracts subject to the obligations of this Chapter will not apply to products of Canada or Mexico. 2. The General Notes for the United States as set out in Annex 1002.7 apply to this Annex. Appendix to ANNEX 1002.5

List of Construction Services List of contracts for construction services which are subject to the obligations of this Chapter, except as otherwise provided: (Based on the United Nations Central Product Classification, CPC) Division 51 Construction work 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 5116 Scaffolding work 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 5126 For hotel, restaurant and similar buildings 5127 For educational buildings 5128 For health buildings 5129 For other buildings

512

513

Construction work for civil engineering 5131 For highways (except elevated highways), streets, roads, railways and airfield runways 5132 For bridges, elevated highways, tunnels and subways 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 5139 For engineering works n.e.c. 5140 Assembly and erection of prefabricated constructions 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 Installation work 5161 Heating, ventilation and air conditioning work 5162 Water plumbing and drain laying work 5163 Gas fitting construction work 5164 Electrical work

514 515

516

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 Glating work and window glass installation work 5172 Plastering work 5173 Painting work 5174 Floor and wall tilling work 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 5180 Renting services related to equipment for construction or demolition of buildings or civil engineering works, with operator ======================================================================= ====== ANNEX 1002.6 Transition Provisions for Mexico Notwithstanding any other provision of this Chapter, Annexes 1002.1 through 1002.5 are subject to the following: Pemex, CFE and Non-Energy Construction 1. The obligations of this Chapter shall not apply to:

(a) 50 percent of the total annual procurement above thresholds of goods, services and construction services by Pemex; (b) 50 percent of the total annual procurement above thresholds of goods, services and construction services by CFE; and (c) 50 percent of the total annual procurement above thresholds of construction services, excluding construction services procured by Pemex and CFE. 2. Loans from regional and multilateral financial institutions will not be included for purposes of calculating the reservations specified in paragraph 1 or subject to other restrictions. 3. As of January 1st, 1994, the reservation specified in paragraph 1 will decrease according to the following schedule: 1994 1995 1996 1997 1998 50% 45% 45% 40% 40% 1999 2000 2001 2002 2003 and thereafter 35% 35% 30% 30% 0%

4. For Pemex and CFE, no more than 10 percent of their respective reserved procurement under paragraphs 1 and 3 shall be applied within a single Federal Supply Classification (FSC) class (or other classification system as agreed by all Parties) in a single year. 5. After December 31, 1998, Pemex and reasonable efforts to assure that their reservation in each FSC class (or other agreed by all Parties) shall not exceed Pharmaceuticals 6. The provisions of this Chapter shall not apply to drugs whose patents have expired or are not currently patented (FSC class 6505) procured by the Secretar?a de Salud, IMSS, ISSSTE, Secretar?a de Defensa and the Secretar?a de Marina. This exception shall be eliminated after 8 years from the date of entry into force of this Agreement. Procurement of biologicals and patented drugs shall not be exempted under any other provision of the Annexes of this Chapter. Nothing in this Chapter shall be interpreted in a way which will impair the protection provided by Chapter 17 (Intellectual Property) of this Agreement. Time Limits for Tendering and Delivery 7. Upon the date of entry into force of this Agreement in January 1, 1994, Mexico will make best efforts to comply with the provisions of Article 1012 (Time Limits for Tendering and Delivery) with respect to the 40 day time limits. However, Mexico will fully comply with such obligations as from 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 the obligations of this Chapter. The Parties also recognize that Mexico may encounter difficulties in making the transition to procurement systems that facilitate full compliance with the obligations of this Chapter. 9. The Parties shall, therefore, consult on an annual basis for the first five years that the Agreement is in effect 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. In addition, the United States and Canada shall cooperate with Mexico to provide technical assistance, as appropriate and mutually agreed pursuant to Article 1020 (Technical Cooperation) of this Chapter, to aid Mexico's transition. 11. Notwithstanding any other provision of this Annex, each Party CFE each will make all respective total classification system as 50 percent in a single year.

shall assume all of its obligations specified in this Chapter upon the date of entry into force of this Agreement. Note: The General Notes for Mexico as set out in Annex 1002.7 apply to this Annex. ======================================================================= ====== ANNEX 1002.7 General Notes Schedule of Canada 1. Notwithstanding any other provision of this Chapter, 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) pursuant to Article 1018 national security exemptions include oil purchases related to any strategic reserve requirements; and (f) national security exceptions include procurements made in support of safeguarding nuclear materials or technology. 2. Procurement in terms of Canadian coverage is defined as contractual transactions to acquire property or services for the direct benefit or use of the government. It does not include non-contractual agreements or any form of government assistance, including but not limited to, cooperative agreements, grants, loans, equity infusions, guarantees, fiscal incentives, and government provision of goods and services, given to individuals, firms, private institutions, and sub-central governments. Schedule of Mexico 1. Notwithstanding any other provision of this Chapter, 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); and (c) between entities.

2. Notwithstanding any other provision in this Chapter, Mexico may allocate a non-specific sector set-aside as follows: (a) upon the date of entry into force of this Agreement, up to the equivalent in real terms of $1.0 billion USD of 1994 shall annually be available to all procurements of entities subject to this Chapter, except Pemex and CFE and construction services procured by other entities subject to this Chapter as well as those procurements of goods in FSC class 6505; (b) after December 31, 2002, up to the equivalent in real terms of $1.2 billion USD of 1994 shall annually be available to all procurement of entities subject to this Chapter, except Pemex and CFE and construction services procured by other entities subject to this Chapter as well as those procurements of goods of FSC class 6505; (c) after December 31, 2002, up to the equivalent in real terms of $300 million USD of 1994 shall annually be availble to Pemex and CFE combined; and (d) for purposes of this paragraph (i) no more than 10 percent of the total procurement reserved shall be applied within a single FSC category (or other classification system as agreed by all Parties) in a single year, and (ii) no more than 20 percent may be used by a single entity. These values shall remain constant in real terms. 3. Notwithstanding any other provision of this Chapter, the entities subject to this Chapter may impose a local content requirement of no more than: (a) 40 percent, for labor intensive turnkey or major integrated projects; and (b) 25 percent, for capital intensive turnkey or major integrated projects. For purposes of these provisions, 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 subject to this Chapter with respect to which: (c) the prime contractor is vested with the authority to select the general contractors or subcontractors; (d) Mexico does not fund the project itself;

(e) the person bears the risk of performance; and (f) the facility will be operated by an entity subject to this Chapter or through a procurement contract of that entity. 4. Regardless of the thresholds, Pemex shall apply the disciplines of Article 1004 regarding national treatment and non-discrimination to: (a) procurements of oil and gas field supplies and equipment, when such supplies and equipment are procured at the location where works pursued by Pemex are being performed; and (b) the selection of suppliers, when such suppliers are established at the location where works pursued by Pemex are being performed. 5. If the obligations of the procurements covered by this Chapter are not met, the Parties may seek compensation in the form of more market opportunities during the following year, or through reliance of Chapter 20 (Institutional Arrangements and Dispute Settlement Procedures). 6. Procurement in terms of the Mexican coverage is defined as contractual transactions to acquire property or services for the direct benefit or use of the government. It does not include non-contractual agreements or any form of government assistance, including, but not limited to, cooperative agreements, grants, loans, equity infusions, guarantees, fiscal incentives, and governmental provisions of goods and services, given to individuals, firms, private institutions and state governments. Schedule of the United States 1. Notwithstanding any other provision of this Chapter, this Chapter does not apply to set asides on behalf of small and minority businesses. 2. Procurement in terms of U.S. coverage is defined as contractual transactions to acquire property or services for the direct benefit or use of the government. It does not include non-contractual agreements or any form of government assistance, including, but not limited to, cooperative agreements, grants, loans, equity infusions, guarantees, fiscal incentives, and governmental provision of goods and services, given to individuals, firms, private institutions, and subcentral governments. ======================================================================= ====== ANNEX 1002.8 Indexation and Conversion of Thresholds

1. The calculations described in Article 1002(4) (Scope and Coverage) shall be made in accordance with the following: (a) the United States inflation rate shall be measured by the the Producer Price Index for Finished Goods published by the United States Department of Commerce; and (b) the inflationary adjustment shall be estimated according to the following formula T0 x (1+ pi) = T1 T0= threshold value at base period pi= 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 specified in paragraph 3 into their national currencies using the conversion formulas 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 not less than one month before the respective thresholds take effect. 3. Canada shall base the 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 dollars in terms of the U.S. dollars over the period October 1, 1992 through September 30, 1993. For each subsequent two-year period, beginning January 1, 1996, the 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 Banco de M?xico. The conversion rate shall be the existing value of the Mexican peso in terms of the US dollar as of December 1 and June 1 of each year, or the 1st working day after. 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 1002-A Country-Specific Thresholds As between Canada and the United States, a) for covered federal entities, thresholds on procurement between Canada and the United States are as follows:

i) goods and services: goods -- US$25,000; services -US$50,000. Canada and the United States shall consult

regarding these threshold values, and ii) Construction: b) US$6,500,000; and

for covered government enterprises, thresholds on procurement between Canada and the United States are as follows i) goods and services: ii) construction: US$250,000, and

US$8,000,000.

======================================================================= ====== ANNEX 1010.1 Publications I. Publications for Notices of Procurement in Accordance with Article 1010 (Invitation to Participate) Schedule of Canada 1. 2. Government Business Opportunities (GBO). Open Bidding Service, ISM Publishing. Schedule of Mexico 1. Major daily newspapers of national circulation.

2. Mexico will endeavor to establish a specialized publication for purposes of notices of procurement. When such publication is ready, it will substitute those referred to in paragraph 1. Schedule of United States Commerce Business Daily (CBD). II. Publications for Measures in Accordance with Article 1019 (Provision of Information) Schedule of Canada 1. Precedential judicial decisions regarding government procurement: (a) Dominion Law Reports; (b) Supreme Court Reports; (c) Federal Court Reports; (d) National Reporter. 2. Administrative rulings and procedures regarding government procurement:

(a) Government Business Opportunities; and (b) Canada Gazette. 3. Laws and regulations: (a) Revised Statutes of Canada; (b) Canada Gazette. Schedule of Mexico 1. Diario Oficial de la Federaci?n.

2. Semanario Judicial de la Federaci?n (for precedential judicial decisions only). 3. Mexico will endeavor to establish a specialized publication for administrative rulings of general application and any procedure, including standard contract clauses. Schedule of United States 1. All United States 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 published as a part of the United States Code of Federal Regulations (CFR). The DFARS and the FAR are published in title 48 of CFR. Copies may be purchased from the Government Printing Office. These regulations are also published in loose-leaf versions that are available by subscription from the Government Printing Office. Changes are provided to subscribers as they are issued. 2. For those who wish to consult original sources, the following published sources are provided: Material Publication Name United States Laws U.S. Statutes at Large

Decisions: - United States Supreme Court U.S. Reports - Circuit Court of Appeals Federal Reporter - 2nd - District Courts Federal Supplement Reporter - Court of Claims Court of Claims Reports Decisions: - Boards of Contract Appeals Clearing House

Series

Unofficial publication by Commerce

Decisions: -Comptroller General of the Those not officially United States published as decisions of the Comptroller General are published unofficially by Federal Publications, Inc.

Chapter Eleven Subchapter A - Investment

Article 1101: Scope 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 existing at the date of entry into force of this Agreement as well as to investments made or acquired thereafter by such investors; and (c) with respect to Article 1106, all investments in the territory of the Party existing at the date of entry into force of this Agreement as well as to investments made or acquired thereafter. 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 Chapter Fourteen (Financial Services) except to the extent specifically provided therein. 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 such 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 shall:

(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 another 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 another 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: Non-discriminatory 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 ("non-discriminatory treatment"). 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 (8) (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 maintains or adopts relating to losses suffered by investments in its territory owing to armed conflict or civil strife. 3. Paragraph 2 shall not apply to existing measures related to

subsidies or grants that are inconsistent with Article 1102. Article 1106: Performance Requirements 1. A Party shall not impose 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 (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 requirement that an investment use a technology to meet generally applicable health, safety or environmental standards-related measures, as defined in Article 915, shall not be construed to be inconsistent with paragraph 1(f). For greater certainty, Articles 1102, 1103 and 1104 shall apply to such requirements. 3. A Party shall not condition the receipt or continued receipt of an advantage, in connection with investments in its territory of investors of a Party or of a non-Party, on compliance with any of the following requirements: (a) to purchase, use or accord a preference to goods produced in its territory, or to purchase goods from

producers in its territory; (b) to achieve a given level or percentage of domestic content; (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 investments in its territory of investors 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 requirements other than the requirements listed in those paragraphs. Article 1107: Senior Management and Boards of Directors 1. A Party shall not require that an enterprise of the 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 the 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. by: (i) a Party at the federal level, as described 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 described by a Party in its Schedule to Annex I, or Articles 1102, 1103, 1106 and 1107 do not apply to: (a) any existing non-conforming measure that is maintained

(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. A Party shall have two years from the date of entry into force of this Agreement to describe in its Schedule to Annex I any existing non-conforming measure maintained by a state or province. 3. A Party shall not be required to describe in its Schedule to Annex I any existing non-conforming measure that is maintained by a local government. 4. To the extent indicated by a Party in its Schedule to Annex II, Articles 1102, 1103, 1106 and 1107 do not apply to any measure adopted or maintained by a Party with respect to the sectors, subsectors or activities as described therein. 5. Any measure adopted by a Party in a manner consistent with paragraph 4 shall not 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. 6. Articles 1102 and 1103 do not apply to any measure that is an exception to, or derogation from, the obligations under Article 1703 (National Treatment) as specifically provided for in that Article. 7. Article 1103 does not apply to treatment accorded by a Party pursuant to agreements or with respect to sectors described in Annex IV. 8. Articles 1102, 1103 and 1107 do not apply to:

(a) procurement of goods or services by a Party or a state enterprise; or (b) subsidies and grants provided by a Party or a state enterprise, including government-supported loans, guarantees and insurance. 9. 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 of goods or services 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 related to the content of goods necessary to qualify for preferential tariffs or preferential quotas. Article 1109: Transfers 1. Each Party shall permit all transfers and international payments ("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 Subchapter 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 shall require its investors to transfer, or penalize its investors who fail to transfer, the income, earnings, profits or other amounts derived from, or attributable to, an investment 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. A Party may restrict transfers of returns in kind only in circumstances in which it could otherwise restrict such transfers under this Agreement. Article 1110: Expropriation and Compensation 1. No Party shall 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 the general principles of treatment provided in Article 1105; and (d) upon payment of compensation in accordance with paragraphs 2 to 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 thereof. 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. Upon 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 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 clarity, a nondiscriminatory 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 and regulations of the Party, provided that such formalities do not impair the substance of the benefits of any of the provisions in this Chapter. 2. Notwithstanding Articles 1102 and 1103, a Party may require, from an investor of another Party or its investment, routine business information, to be used solely for informational or statistical purposes, concerning that investment in its territory. The Party shall protect such business information as is confidential from disclosure that would prejudice the investor's or the investment's competitive position. Nothing in this paragraph shall preclude a Party from otherwise obtaining or disclosing information in connection with the equitable and good faith application of its laws. Article 1112: Relationship to Other Chapters 1. In the event of any inconsistency between a provision of this Chapter and a provision of another Chapter, the provision of 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 shall apply to that Party's treatment of the posted bond or financial security.

Article 1113: Denial of Benefits 1. Each Party reserves the right to deny to an investor of another Party that is an enterprise of such Party and to investments of such investor the benefits of this Chapter if investors of a non-Party own or control the enterprise and: (a) the denying Party does not maintain diplomatic relations with the non-Party; 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 or to its investments. 2. Subject to prior notification and consultation in accordance with Articles 1803 (Notification and Provision of Information) and 2006 (Consultations), respectively, each Party reserves the right to deny to an investor of another Party that is an enterprise of such Party and to investments of such investors the benefits of this Chapter 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 laws 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. ======================================================================= ====== Subchapter B SETTLEMENT OF DISPUTES BETWEEN A PARTY AND AN INVESTOR OF ANOTHER PARTY

Article 1115: Purpose This Subchapter 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 Behalf of Itself 1. An investor of a Party may submit to arbitration under this Subchapter a claim that another Party has breached: (a) a provision of Subchapter A; or (b) Article 1502(3)(a) (Monopolies and State Enterprises) or Article 1503(2) (State Enterprises) where the alleged breach pertains to the obligations of Subchapter 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 Subchapter a claim that the other Party has breached: (a) a provision of Subchapter A; or (b) Article 1502 (3)(a) (Monopolies and State Enterprises) or Article 1503(2) (State Enterprises) where the alleged breach pertains to the obligations of Subchapter 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 which 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 pursuant to Article 1125, 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 Subchapter.

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 give 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; (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 Subchapter. 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 provisions of this Subchapter; and (b) both the investor and an enterprise of another Party that is a juridical person that the investor owns or controls directly or indirectly, waive their right to initiate or continue before any administrative tribunal or court under the domestic law of any Party any proceedings with respect to the measure of the disputing Party that is alleged to be a breach of Subchapter A of this Chapter, Article 1502(3)(a) (Monopolies and State Enterprises) or Article 1503(2) (State Enterprises), except for proceedings for injunctive, declaratory or other extraordinary relief, not involving the payment of damages, before an administrative tribunal or court under the domestic 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 provisions of this Subchapter; and (b) waive their right to initiate or continue before any administrative tribunal or court under the domestic law of any Party any proceedings with respect to the measure of the disputing Party that is alleged to be a breach of Subchapter A of this Chapter, Article 1502(3)(a) (Monopolies and State Enterprises) or Article 1503(2) (State Enterprises), except for proceedings for injunctive, declaratory or other extraordinary relief, not involving the payment of damages, before an administrative tribunal or court under the domestic law of the disputing Party. 3. A consent and waiver required by this Article shall be in writing, shall be given to the disputing Party, and shall be included in the submission of a claim to arbitration. Article 1122: Consent to Arbitration 1. Each Party consents to the submission of a claim to arbitration in accordance with the provisions of this Subchapter. 2. The consent given by paragraph 1 and the submission by a disputing investor of a claim to arbitration in accordance with the provisions of this Subchapter shall satisfy the requirement of: (a) Chapter II of the ICSID Convention (Jurisdiction of the Center) 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 Subject to Article 1125, and unless the disputing parties agree otherwise, the Tribunal shall consist of three arbitrators. One arbitrator shall be appointed by each of the disputing parties. The third, who shall be the presiding arbitrator, shall be appointed by agreement of the disputing parties. Article 1124: Constitution of 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 of ICSID shall serve as appointing authority for an arbitration under this Subchapter. 2. If a Tribunal has not been constituted within 90 days from the date that a claim is submitted to arbitration, the SecretaryGeneral, at the request of either disputing party: (a) shall appoint the arbitrator or arbitrators not yet appointed in his discretion, except for the presiding arbitrator; and (b) shall appoint the presiding arbitrator in accordance with paragraph 3. 3. The Secretary-General shall appoint the presiding arbitrator from the list of presiding arbitrators described in paragraph 4. In the event that no such presiding arbitrator is available to serve, the Secretary-General shall appoint a presiding arbitrator who is not a national of any of the Parties from the ICSID Panel of Arbitrators. 4. As of the date of entry into force of this Agreement, the Parties shall have jointly designated, without regard to nationality, 45 presiding arbitrators meeting the qualifications of the rules referred to in Article 1120 and experienced in international law and investment. 5. Subject to paragraph 8, where a disputing investor submits a claim to arbitration under the ICSID Convention or the Additional Facility Rules, each Party agrees: (a) to the appointment by the investor of a national of the Party of the investor as an arbitrator; and (b) to the appointment by the Secretary-General of a national of the Party of the investor as an arbitrator or as a presiding arbitrator. 6. Subject to paragraph 8, a disputing investor described in

Article 1116 may submit a claim to arbitration, or continue a claim, under the ICSID Convention or the Additional Facility Rules, only on the following conditions: (a) where the disputing Party appoints a national of the disputing Party as an arbitrator, the investor agrees in writing to the appointment; and (b) where the Secretary-General appoints a national of the disputing Party as an arbitrator or as a presiding arbitrator, the investor agrees in writing to the appointment. 7. Subject to paragraph 8, a disputing investor described in Article 1117(1) may submit a claim to arbitration, or continue a claim, under the ICSID Convention or the Additional Facility Rules, only on the following conditions: (a) where the disputing Party appoints a national of the disputing Party as an arbitrator, the investor and the enterprise agree in writing to the appointment; and (b) where the Secretary-General appoints a national of the disputing Party as an arbitrator or as a presiding arbitrator, the investor and the enterprise agree in writing to the appointment. 8. A disputing party:

(a) in the case of a claim submitted to arbitration under the ICSID Convention, may propose, under Article 57 of the Convention, the disqualification of a member of the Tribunal on account of any fact indicating a manifest lack of the qualities required by paragraph 1 of Article 14 of the Convention; and (b) in the case of a claim submitted to arbitration under the Additional Facility Rules, may propose, under Article 14 of the Rules, the disqualification of a member of the Tribunal on account of any fact indicating a manifest lack of the qualities required by Article 9 of the Rules. Article 1125: 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 Subchapter. 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, order that the Tribunal:

(a) shall assume jurisdiction over, and hear and determine together, all or part of the claims; or (b) shall 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 of ICSID to establish a Tribunal and shall specify in the request: (a) the name of the disputing Party or disputing parties 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 give to the disputing Party or disputing parties against which the order is sought a copy of the request. 5. Within 60 days of receipt of the request, the SecretaryGeneral of ICSID shall establish a Tribunal consisting of three arbitrators. The Secretary-General shall appoint the presiding arbitrator from the roster described in paragraph 4 of Article 1124. In the event that no such presiding arbitrator is available to serve, the Secretary-General shall appoint a presiding arbitrator, who is not a national of any of the Parties, from the ICSID Panel of Arbitrators. The SecretaryGeneral shall appoint the two other members from the roster described in paragraph 4 of Article 1124, 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 the Party of the disputing investors. 6. Where a Tribunal has been established under this Article, a disputing party 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 party's name and address; (b) the nature of the order sought; and (c) the grounds on which the order is sought. 7. A disputing party described in paragraph 6 shall give a copy of its request to the 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. A disputing Party shall give to the Secretariat of the Commission, 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 for arbitration made under Article 2 of the Additional Facility Rules; or (c) a notice of arbitration given under the UNCITRAL Arbitration Rules. 10. A disputing Party shall give to the Secretariat of the Commission a copy of a request made under paragraph 3 of this Article: (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. 11. A disputing Party shall give to the Secretariat of the Commission a copy of a request made under paragraph 6 of this Article within 15 days of receipt of the request. 12. The Secretariat of the Commission shall maintain a public register consisting of the documents referred to in paragraphs 9, 10 and 11. Article 1126: Notice A disputing Party shall deliver to the other Parties: (a) written notice of a claim that has been submitted to arbitration within 30 days from the date that the claim is submitted; and (b) copies of all pleading filed in the arbitration. Article 1127: 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 1128: Documents A Party shall be entitled to receive from the disputing Party at the cost of the requesting Party:

(a) a copy of the evidence that has been tendered to the Tribunal; and (b) a copy of the written argument of the disputing parties. Article 1129: Place of Arbitration Unless the disputing parties agree otherwise, a Tribunal shall hold an arbitration in the territory of a Party which is a party to the New York Convention, selected in accordance with: (a) the Additional Facility Rules if the arbitration is under those rules or the ICSID Arbitration Rules; or (b) the UNCITRAL Arbitration Rules if the arbitration is under those rules. Article 1130: Governing Law A Tribunal established under this Subchapter shall decide the issues in dispute in accordance with this Agreement and applicable rules of international law. Article 1131: Interpretation of Annexes 1. Where a disputing Party asserts as a defense that the measure alleged to be a breach of this Chapter is within the scope of an exception set forth 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 this question. The Commission shall have 60 days to submit its interpretation in writing to the Tribunal. 2. If the Commission submits to the Tribunal an agreed interpretation, the interpretation shall be binding on the Tribunal. If the Commission fails to submit an agreed interpretation or fails to submit an agreed interpretation within such 60 day period, the Tribunal shall decide the issue of interpretation of the exception. Article 1132: Report from an Expert 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 1133: Interim Measures of Protection A Tribunal may take such measures as it deems necessary to preserve the respective rights of the disputing parties, or to ensure that the Tribunal's jurisdiction is made fully effective. Such measures may include, but are not limited to, orders to preserve evidence in the possession or control of a disputing party, or to protect the Tribunal's jurisdiction. An interim measure of protection may not include an order of attachment or an order to enjoin the application of the measure alleged to be the breach of Subchapter A of this Chapter, Article 1502(3)(a) (Monopolies and State Enterprises) or Article 1503(2) (State Enterprises). For purposes of this paragraph, an order includes a recommendation. Article 1134: Final Award 1. Where a Tribunal makes a final award against a Party, the Tribunal may award only: (a) monetary damages, and any applicable interest; or (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. 2. Subject to paragraph 1, where a claim is made under paragraph 1 of Article 1117: (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 1135: Finality and Enforcement of Award 1. An award made by a Tribunal is binding on the disputing parties but shall have no binding force except between the disputing parties and in respect of the particular case. 2. Subject to paragraph 3, 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 Additional Facility Rules of ICSID or the UNCITRAL Arbitration Rules: (i) 3 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. 5. Each Party undertakes to provide for the enforcement in its territory of an award. 6. If a Party fails to abide by or comply with the terms of a final award under this Subchapter, the Commission provided for in Chapter Twenty (Institutional Arrangements and Dispute Settlement Procedures) shall, upon delivery of a request by any other Party whose investor was party to the investment dispute, establish a panel under Article 2008(1). The requesting Party may seek in such proceedings: (a) a determination that the failure to abide by and comply with the terms of the final award is inconsistent with the obligations of this Agreement; and (b) a recommendation that the defaulting Party abide by or comply with the terms of the final award. 7. 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 6. 8. A claim that is submitted to arbitration 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 1136: General 1. Time when a Claim is Submitted to Arbitration: A claim is

submitted to arbitration under this Subchapter when: (a) the notice of registration of the request to institute arbitration proceedings has been dispatched by the Secretary-General of ICSID in accordance with paragraph 3 of Article 36 of the ICSID Convention; (b) the certificate of registration of the notice for arbitration has been dispatched by the SecretaryGeneral of ICSID in accordance with Article 4 of Schedule C of the Additional Facility Rules; or (c) the notice of arbitration given under the UNCITRAL Arbitration Rules is received by the disputing Party. 2. Receipts under Insurance or Guarantee Contracts: In an arbitration under this Subchapter, a Party shall not assert, as a defense, counterclaim, right of set off or otherwise, that the investor concerned has received or will receive, pursuant to an insurance or guarantee contract, indemnification or other compensation for all or part of its alleged damages. Article 1137: Exclusions 1. Without prejudice to the applicability or non-applicability of the dispute settlement provisions of this Subchapter 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 Subchapter and of Chapter Twenty shall not apply to the matters described in Annex 1137.2. Article 1138: Definitions For purposes of this Chapter: disputing Party means a Party against which a claim is made under Subchapter B; disputing party means the disputing investor or the disputing Party; disputing parties means the disputing investor and the disputing Party; enterprise means an "enterprise" as defined in Article 201, except that it shall also include a branch; enterprise of a Party means an enterprise constituted or organized under the laws and regulations of a Party, and a

branch; equity or debt securities includes voting and non-voting shares, bonds, convertible debentures, stock options and warrants; G7 Currency means the currency of Canada, Germany, France, Italy, Japan, the United States or the United Kingdom of Great Britain and Northern Ireland; ICSID Convention means the Convention on the Settlement of Investment Disputes between States and Nationals of other States done at Washington, March 18, 1965; ICSID means the International Centre for Settlement of Investment Disputes; 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) that 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) that 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 the income or profits; (f) an interest in an enterprise that entitles the owner to share in the assets on dissolution, other than a debt security or a loan excluded from sub-paragraph (c) or (d); (g) real estate or other property (tangible and intangible) acquired in the expectation or used for the purpose of economic benefit or other business purposes;

(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 the 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 one 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 sub-paragraph (d), or (j) any other claims to money, which 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, makes or has made an investment; investor of a non-Party means an investor other than an investor of a Party, that makes, seeks to make 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; Tribunal means an arbitration tribunal established under Article 1120 or 1125; 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 Claims to Arbitration 1. An investor of another Party may not allege that Mexico has breached: (a) a provision of Subchapter A; or (b) Article 1502(3)(a) (Monopolies and State Enterprises) or Article 1503(2) (State Enterprises) where the alleged breach pertains to the obligations of Subchapter A, both in an arbitration under this Subchapter and in proceedings before a Mexican court or administrative tribunal. 2. 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: (a) a provision of Subchapter A; or (b) Article 1502(3)(a) (Monopolies and State Enterprises) or Article 1503(2) (State Enterprises) where the alleged breach pertains to the obligations of Subchapter A, the investor may not allege the breach in an arbitration under this Subchapter. ======================================================================= ====== ANNEX 1137.2 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 Subchapter 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-7, 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 Subchapter B or of Chapter Twenty (Institutional Arrangements and Dispute Settlement Procedures).

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, payment or use of 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) services associated with energy and basic petrochemical goods to the extent provided in Chapter Six (Energy and Basic Petrochemicals); and (c) air services, including domestic and international air transportation, whether scheduled or non-scheduled, and related activities 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. 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 such access or employment; (b) impose any obligation or confer any right on a Party with respect to any procurement by a Party or a state

enterprise; (c) impose any obligation or confer any right on a Party with respect to subsidies and grants, including governmentsupported loans, guarantees and insurance provided by a Party or a state enterprise; or (d) 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 such state or province to service providers of the Party of 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 another Party or of a nonParty. Article 1204: Non-Discriminatory Treatment

Each Party shall accord to service providers of another Party the better of the treatment required by Articles 1202 and 1203. Article 1205: Local Presence

A Party shall not require a service provider of another Party to establish or maintain a representative office, branch 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: 1. by: Reservations

Articles 1202, 1203 and 1205 do not apply to: (a) any existing non-conforming measure that is maintained

(i) a Party at the federal level, as described 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 described by a Party in its Schedule to Annex I, 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. A Party shall have two years from the date of entry into force of this Agreement to describe in its Schedule to Annex I any existing non-conforming measure maintained by a state or province. 3. A Party shall not be required to describe in its Schedule to Annex I any existing non-conforming measure that is maintained by a local government. 4. To the extent indicated by a Party in its Schedule to Annex II, Articles 1202, 1203 and 1205 do not apply to any measure adopted or maintained by a Party with respect to the sectors, subsectors or activities described therein. Article 1207: Quantitative Restrictions

1. The Parties shall periodically, but in any event at least every two years, endeavor to negotiate the liberalization or removal of: (a) any existing quantitative restrictions maintained by (i) a Party at the federal level, as described in its Schedule to Annex V, or (ii) a state or province, as described by a Party in its Schedule to Annex V; and (b) any quantitative restriction adopted by a Party after the date of entry into force of this Agreement. 2. Each Party shall have one year from the date of entry into force of this Agreement to describe in its Schedule to Annex V any quantitative restriction maintained by a state or province. 3. Each Party shall notify the other Parties of any quantitative restriction that it adopts or amends after the date of entry into force of this Agreement and shall describe any such quantitative

restriction in its Schedule to Annex V. 4. A Party shall not be required to describe in its Schedule to Annex V, or to notify, any quantitative restriction adopted or maintained by a local government. Article 1208: Liberalization of Non-Discriminatory Measures

Each Party shall describe in its Schedule to Annex VI commitments to liberalize quantitative restrictions, licensing requirements, performance requirements or other non-discriminatory measures relating to the cross-border provision of a service. Article 1209: Procedures

The Commission shall establish procedures for: (a) the notification and description by a Party of (i) state or provincial measures that it intends to describe in its Schedule to Annex I pursuant to Article 1206(2), (ii) quantitative restrictions that it intends to describe in it Schedule to Annex V pursuant to Article 1207(2), (iii) commitments that it intends to describe in its Schedule to Annex VI pursuant to Article 1208, and (iv) amendments of measures in accordance with Article 1206(1)(c); and (b) consultations between Parties with a view to removing any state or provincial measure described by a Party in its Schedule to Annex I after the date of entry into force of this Agreement. Article 1210: Licensing and Certification

1. With a view to ensuring that any measure adopted or maintained by a Party relating to the licensing and 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 restriction on the cross-

border provision of a service. 2. Notwithstanding Article 1203, a Party shall not be required to extend to a service provider of another Party the benefits of recognition of education, experience, licenses or certifications obtained in another country, whether such recognition was accorded unilaterally or by arrangement or agreement with that other country. The Party according such recognition shall afford any interested 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 negotiate and enter into an agreement or arrangement of comparable effect. 3. Two years after the date of entry into force of this Agreement, a Party shall eliminate any citizenship or permanent residency requirement for the licensing and certification of professional service providers in its territory. Where a Party does not comply with this provision with respect to a particular sector, any other Party may maintain an equivalent requirement or reinstate any such requirement eliminated pursuant to this Article, only in the affected sector, for such period as the non-complying Party retains the requirement. 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 and certification of nationals of the other Parties. 5. Each Party shall implement the provisions of Annex 1210. Denial of Benefits

Article 1211:

1. A Party may deny the benefits of this Chapter to a service provider of another Party where the Party establishes that: (a) such 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 has imposed measures against the non-Party that prohibit transactions with such enterprise or that would be violated or circumvented by the activities of such enterprise; and (b) with respect to the cross-border provision of a transportation service covered by this Chapter, the service 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), respectively, a Party may deny the benefits of this Chapter to a service provider of another Party where the

Party establishes that such service is being provided by an enterprise of another Party that is owned or controlled by persons of a non-Party and that has no substantial business activities in the territory of any Party. 3. The Party denying benefits pursuant to paragraph 1 or 2 shall have the burden of establishing that such action is in accordance with such paragraph. Article 1212: Sectoral Annex

Each Party shall comply with Annex 1212. 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 such government. 2. For purposes of this Chapter:

cross-border trade in services or cross-border provision of a service 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 person 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 1138 (Investment Definitions), in that territory; enterprise means "enterprise" as defined in Article 201, except that it shall also include a branch; enterprise of a Party means an enterprise constituted or organized under the laws and regulations of a Party, including a branch; 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 measures adopted or maintained by a Party, but does not include services provided by trades-persons and 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 numerical quota, monopoly or a requirement for 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 the requirement of an economic needs test or by any other quantitative means; service provider of a Party means a person of a Party that 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 Professional Services Section A - General Provisions Scope and Coverage 1. This Annex applies to measures adopted or maintained by a Party relating to the licensing and certification of professional service providers. Processing of Applications for Licenses and Certification 2. Each Party shall ensure that its competent authorities, within a reasonable period after the submission of an application for licensing or certifications by a national of another Party: (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 its domestic law. Development of Mutually Acceptable Professional Standards and Criteria 3. The Parties shall encourage the relevant bodies in their respective territories to develop mutually acceptable professional standards and criteria for licensing and certification of professional service providers and to provide recommendations on mutual recognition to the Commission. 4. Such standards and criteria may be developed with regard to

the following matters: (a) education - accreditation of schools or academic programs where professional service providers obtain formal education; (b) examinations - qualifying examinations for the purpose of licensing professional service providers, including alternative methods of assessment such as oral examinations and interviews; (c) experience - length and nature of experience required for a professional service provider to be licensed; (d) conduct and ethics - standards of professional conduct and the nature of disciplinary action for non-conformity with those standards by professional service providers; (e) professional development and re-certification continuing education for professional service providers, and ongoing requirements to maintain professional certification; (f) scope of practice - extent of, or limitations on, field of permissible activities of professional services providers; (g) territory-specific knowledge - requirements for knowledge by professional service providers of such matters as local laws, regulations, language, geography or climate; and (h) consumer protection - alternatives to residency, including bonding, professional liability insurance and client restitution funds to provide for the protection of consumers of professional services. 5. Upon receipt of the recommendations of the relevant bodies, the Commission shall review the recommendations within a reasonable period to determine whether they are consistent with this Agreement. 6. Based upon the Commission's review, the Parties shall encourage their respective competent authorities, where appropriate, to adopt those recommendations within a mutually agreed period. Temporary Licensing 7. Where the Parties agree, each Party shall encourage the relevant bodies in its territory to develop procedures for temporary licensing of professional service providers of another Party. Review 8. The Commission shall periodically, and at least once every

three years, review progress in the implementation of this Annex. Section B - Foreign Legal Consultants 1. In implementing its commitments regarding foreign legal consultants, set out in its Schedules to Annexes I and VI in accordance with Article 1206 and 1208, each Party shall ensure, subject to its reservations set out in its Schedules to Annexes I and II in accordance with Article 1206, that a foreign legal consultant is permitted to practice or advise on the law of the country in which such consultant is authorized to practice as a lawyer. Consultations With Relevant Professional Bodies 2. Each Party shall undertake consultations with its relevant professional bodies for the purpose of obtaining their recommendations on: (a) the forms of association and 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) any other issues related to the provision of foreign legal consultancy services. 3. Each Party shall encourage its relevant professional bodies to meet with the relevant professional bodies designated by each of the other Parties to exchange views regarding the development of joint recommendations on the issues described in paragraph 2 prior to initiation of consultations under that paragraph. Future Liberalization 4. Each Party shall establish a work program aimed at developing common procedures throughout its territory for the licensing and certification of lawyers licensed in the territory of another Party as foreign legal consultants. 5. With a view to meeting this objective, each Party shall, upon receipt of the recommendations of the relevant professional bodies, encourage its competent authorities to bring applicable measures into conformity with such recommendations. 6. Each Party shall report to the Commission within one year after the date of entry into force of this Agreement, and each year thereafter, on progress achieved in implementing the work program. 7. The Parties shall meet within one year from the date of entry into force of the this Agreement with a view to: (a) assessing the work that has been done under paragraphs 2

through 6; (b) as appropriate, amending or removing the remaining reservations on foreign legal consultancy services; and (c) determining any future work that might be appropriate relating to foreign legal consultancy services. Section C - Temporary Licensing of Engineers 1. The Parties shall meet within one year after the date of entry into force of this Agreement to establish a work program to be undertaken by each Party, in conjunction with relevant professional bodies specified by that Party, to provide for the temporary licensing in its territory of engineers licensed in the territory of another Party. 2. With a view to meeting this objective, each Party shall undertake consultations with its relevant professional bodies for the purpose of obtaining their recommendations on: (a) the development of procedures for the temporary licensing of engineers licensed in the territory of another Party to permit them to practice their engineering specialties in each jurisdiction in its territory that regulates engineers; (b) the development of model procedures, in conformity with Article 1210 and Section A of this Annex, for adoption by the competent authorities throughout its territory to facilitate the temporary licensing of engineers; (c) the engineering specialties to which priority should be given in developing temporary licensing procedures; and (d) any other issues relating to the temporary licensing of engineers identified by the Party through its consultations with the relevant professional bodies. 3. The relevant professional bodies shall be requested to make recommendations on the matters specified in paragraph 2 to their respective Parties within two years after the date of 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 expeditious development of joint recommendations on matters specified in paragraph 2. The relevant professional bodies shall be encouraged to develop such recommendations within two years after 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 such recommendations. 5. Upon receipt of the recommendations described in paragraphs 3 and 4, the Parties shall review them to ensure their consistency

with the provisions of the Agreement and, if consistent, encourage their respective competent authorities to implement such recommendations within one year. 6. Pursuant to paragraph 5 of Section A, within two years after the date of entry into force of this Agreement, the Commission shall review progress made in implementing the objectives set out in this Section. 7. Appendix 1210-C shall apply to engineering specialties.

======================================================================= ====== ANNEX 1212 Land Transportation Contact Points for Land Transportation Services 1. Further to Article 1801 (Contact Points), each Party shall designate contact points to provide information relating to land transportation services published by that Party on operating authority, safety requirements, taxation, data and studies and technology, as well as assistance in contacting its relevant government agencies. Review Process for Land Transportation Services 2. The Commission shall, during the fifth year after the date of entry into force of this Agreement and thereafter during every second year of the period of liberalization for bus and truck transportation set out in the Schedule of each Party to Annex I of this Chapter, receive and consider a report from the Parties that assesses progress respecting such liberalization, including: (a) the effectiveness of such liberalization; (b) specific problems for, or unanticipated effects on, each Party's bus and truck transportation industry arising from such liberalization; and (c) modifications to such period of liberalization. The Commission shall endeavor to resolve in a mutually satisfactory manner any matter arising from its consideration of such reports. 3. The Parties shall consult, no later than seven years after the date of entry into force of this Agreement, to determine the possibilities for further liberalization commitments. ======================================================================= ====== Appendix 1210 - C Civil Engineers

Mexico will undertake the commitments of this Section only with respect to civil engineers ("ingenieros civiles").

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 such 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 such persons; and (c) perform switching, signalling and processing functions; (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 such 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 such 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 such 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 such 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. A Party shall not 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 nondiscriminatory. 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-B. 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, 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 such 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 public telecommunications transport network; and (e) notification, permit, registration or licensing requirements. Article 1307: Relationship to other Chapters In the event of any inconsistency between a provision of this Chapter and the provision of another Chapter, the provision of this Chapter shall prevail to the extent of such 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 such standards through the work of relevant international bodies, including the International Telecommunications 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 any procedure used, directly or indirectly, to determine that a relevant 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; 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 usage;

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 customersupplied information between two or more points without any endto-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.

Chapter Fourteen Financial Services

Article 1401: Scope 1. This Chapter shall apply 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. Only Articles 1109 (Transfers), 1110 (Expropriation and Compensation), 1111 (Special Formalities and Information Requirements), 1113 (Denial of Benefits), 1114 (Environmental Measures) and Articles 1115 to 1136 (Settlement of Disputes Between a Party and an Investor of Another Party) of Chapter Eleven (Investment) and Article 1211 (Denial of Benefits) of Chapter Twelve (Cross-Border Trade in Services) shall apply to this Chapter. Article 1802(2) (Publication) shall not apply to this Chapter. 3. In the event of any inconsistency between a provision of this Chapter and any other provision of this Agreement, the former shall prevail to the extent of the inconsistency. This paragraph does not apply to Article 2103 (Taxation). 4. Nothing in this Chapter shall prevent a Party from being the exclusive service provider in its territory with respect to the following: (a) activities forming part of a public retirement plan or statutory system of social security; and (b) activities conducted by a public entity for the account or with the guarantee or using the financial resources of the government or of any other public entity. 5. Article 1407 shall not apply to the granting by a Party to a financial service provider of an exclusive right to provide a financial service referred to in paragraph 4(a). 6. Each Party shall comply with Annex 1401.6.

Article 1402: Self-Regulatory Organizations

Where a Party requires financial service providers of another Party to be members of, participate in, or have access to, a self-regulatory organization to provide a financial service in the territory of that Party, the Party shall ensure observance by such organization of this Chapter. Article 1403: Regulatory Measures 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 service provider or financial institution; (b) the maintenance of the safety, soundness, integrity or financial responsibility of financial service providers or financial institutions; 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 (Performance Requirements), Article 1109 (Transfers) and Article 2104 (Balance of Payments). Article 1404: Establishment 1. The Parties recognize the principle that financial service providers of a Party should be permitted to establish financial institutions in the territory of another Party in the juridical form determined by the provider. 2. The Parties also recognize the principle that financial service providers of a Party should be permitted to participate widely in the market of another Party through the ability: (a) to provide in that other Party's territory a range of financial services through separate financial institutions as may be required by that Party; (b) to expand geographically within that territory; and (c) to own financial institutions without the application of ownership requirements specific to foreign financial institutions. 3. Each Party shall permit financial service providers of another Party that are not already established in its territory to establish financial institutions in the Party's territory. A

Party may: (a) require such financial service providers to incorporate such financial institutions under its laws; or (b) impose other terms, conditions and procedures on establishment that are consistent with Article 1407. 4. At such time as the United States liberalizes its existing measures to permit commercial banks of another Party located in its territory to expand throughout significantly all the United States market either through subsidiaries or direct branches, the Parties shall review and assess market access in each Party, subject to Annex 1404.4, with respect to the principles in paragraphs 1 and 2 with a view to adopting arrangements permitting investor choice as to juridical form of establishment by commercial banks. 5. Each Party shall permit financial institutions of another Party to transfer and process information outside the territory of the Party in electronic or other form as is necessary for the conduct of ordinary business of such institutions. Article 1405: Cross-Border Trade 1. No Party may adopt any measure restricting any type of cross-border trade in financial services by financial service providers of another Party that is permitted on the date of entry into force of this Agreement, except to the extent set out in Part 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 financial service providers of another Party located in the territory of that other Party or another Party, provided that the Party is not required, in order to fulfill this obligation, to permit such providers to do business or solicit in its territory. Subject to paragraph 1, each Party may, for this purpose, define "doing business" and "solicitation." 3. Without prejudice to prudential regulation by other means, a Party may require registration of financial service providers of another Party and financial instruments. 4. The Parties shall consult on future liberalization of crossborder trade in financial services, as set out in Annex 1405.4. Article 1406: New Financial Services 1. Each Party shall permit a financial institution of another Party to provide any new financial service of a type similar to those that the Party permits its financial institutions, in like circumstances, to provide under its domestic law. A Party may determine the institutional and juridical form through which such service may be provided.

2. A Party may require authorization for the provision in its territory of a financial service referred to in paragraph 1. Where such authorization is required, a decision shall be made within a reasonable period of time and may only be refused for prudential reasons. Article 1407: National Treatment 1. Each Party shall accord to investors of another Party and financial service providers of another Party national treatment with respect to the establishment, acquisition, expansion, management, conduct, operation and sale or other disposition of investments in financial institutions in its territory. 2. Each Party shall accord to the financial institutions of another Party national treatment. 3. Where a Party permits the cross-border provision of a financial service, it shall accord national treatment to financial service providers of another Party in the provision of such cross-border service. 4. "National treatment" means treatment no less favorable than that accorded by a Party to its own investors, financial service providers and financial institutions in like circumstances. 5. A measure of a Party, whether it accords to financial service providers or financial institutions of another Party different or identical treatment compared to that it accords to its own providers or institutions in like circumstances, shall be deemed to be consistent with paragraph 4, if it accords equal competitive opportunities. 6. A measure accords equal competitive opportunities if it does not disadvantage financial service providers of another Party in their ability to provide financial services as compared with the ability of domestic financial service providers in like circumstances to provide financial services. 7. Differences in market share, profitability or size shall not by themselves constitute denial of equal competitive opportunities, but shall not be precluded from being used as evidence regarding the issue of whether a Party's measure accords equal competitive opportunities. 8. With respect to measures of a province or state, paragraph 4 means: (a) treatment no less favorable than the most favorable treatment accorded in like circumstances by such province or state to financial service providers of the Party of which it forms a part, including that province or state; or (b) in the case of a financial service provider of another

Party established in another province or state of the Party, treatment no less favorable than it accords in like circumstances to a financial service provider of the Party established in such other province or state. Article 1408: Most-Favored-Nation Treatment 1. Each Party shall accord to investors of another Party, investments of such investors and financial service providers of another Party treatment no less favorable than that it accords to investors, investments of investors and financial service providers of any other Party or non-Party in like circumstances. 2. Each Party may recognize prudential measures of another Party or non-Party in determining how the Party's measures relating to financial services shall be applied. Such recognition, which may be achieved through harmonization or otherwise, may be based upon an agreement or arrangement with the Party concerned or may be accorded unilaterally. 3. A Party recognizing measures by means of an agreement or arrangement referred to in paragraph 2 shall afford adequate opportunity for another Party to negotiate its accession to such an agreement or arrangement, or to negotiate a comparable one under circumstances in which there would be equivalent regulation, oversight, implementation of such regulation, and, if appropriate, procedures concerning the sharing of information between the Parties. Where a Party accords recognition unilaterally, it shall afford adequate opportunity for another Party to demonstrate that such circumstances exist. Article 1409: Staffing 1. No Party may require financial institutions of another Party to engage, as top managerial or other essential personnel, individuals of any particular nationality. 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 1410: Transparency 1. 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 upon 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 shall make available to interested persons the information that applications affecting the provision of financial services must contain. 3. At the request of an applicant, the competent regulatory authority shall provide information concerning the status of an application. If such authority requires additional information from the applicant, it shall notify the applicant without undue delay. 4. Each Party shall make an administrative decision on a completed application of a financial service provider of another Party 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 competent authority shall notify the applicant without undue delay and shall endeavor to make the decision within a reasonable time thereafter. 5. Nothing in this Agreement requires a Party to disclose information related to the affairs and accounts of individual customers or any confidential or proprietary information the disclosure of which would impede law enforcement or otherwise be contrary to the public interest, or prejudice legitimate commercial interests. 6. Each Party shall ensure that inquiry points exist, at the latest 180 days after the date of entry into force of this Agreement, to which all reasonable inquiries from interested persons may be directed regarding any measures of general application taken by that Party with respect to this Chapter. Responses shall be provided in writing as soon as practicable. Article 1411: Transfers Without prejudice to other provisions of this Agreement that would permit such actions to be taken, a Party may prevent or limit transfers by a financial service provider or a financial institution to, or for the benefit of, an affiliate of or person related to such provider or institution, through the equitable, non-discriminatory and good faith application of its measures relating to maintenance of the safety and soundness of its financial institutions. Article 1412: Schedules 1. by: Articles 1404 through 1409 do not apply to: (a) any existing non-conforming measure that is maintained

(i) a Party at the federal level, as set out in Part A of its Schedule to Annex VII; (ii) a state or province, as set out by a Party in Part A of its Schedule to Annex VII within the period referred to in that Part; or (iii) a local government; (b) the continuation or prompt renewal of any nonconforming 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 1404 through 1409. 2. A Party shall set out any non-conforming measure maintained at the state or provincial level in Part A of its Schedule to Annex VII within the periods provided therein. 3. Articles 1404 through 1409 do not apply to any measure adopted or maintained by a Party that is consistent with the terms set out by the Party in Part B of its Schedule to Annex VII. 4. A Party shall describe in Part C of its Schedule to Annex VII any specific commitment it is making to any other Party. 5. For the purposes of Article 1413(2), each Party shall specify in Part D of its Schedule to Annex VII its governmental agency responsible for financial services. 6. A Party shall describe in Part E of its Schedule to Annex VII any terms and conditions that an enterprise of another Party must meet to be considered an enterprise of such other Party for the purposes of restrictions specified in that Part. 7. Any reservation or exception set out by a Party in Annexes I through VI under this Part shall be deemed to constitute reservations or exceptions for purposes of Articles 1404 through 1409. Article 1413: Consultations 1. Any Party may request consultations with another Party at any time regarding any matter arising under this Agreement that affects financial services. The other Party shall give sympathetic consideration to such a request. The results of consultations under this Article shall be reported during the annual meeting of the Committee provided for in Article 1414. 2. Consultations under this Article shall be conducted by officials of the governmental agencies responsible for financial services specified in Part D of each Party's Schedule to Annex

VII. 3. A Party may request that regulatory authorities of another Party participate in consultations under this Article to discuss that other Party's measures of general application that may affect the operations of financial service providers in the requesting Party's territory. 4. Such regulatory authorities shall not be required 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 service provider in another Party's territory, it may approach the competent regulatory authority in the other Party's territory to seek the information. 6. Each Party shall comply with Annex 1413.6.

Article 1414: Financial Services Committee 1. The Parties hereby establish the Financial Services Committee. The principal representative of each Party shall be the officials referred to in Article 1413(2). 2. Subject to Article 2001(2)(d) (The 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; (c) participate in the dispute settlement procedure pursuant to Article 1416; and (d) examine technical issues under this Chapter, including interpretation of this Chapter. 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 1415: Dispute Settlement 1. Disputes arising under this Chapter shall be resolved in accordance with the procedures of Chapter 20 (Institutional Arrangements and Dispute Settlement Procedures) and this Article. 2. In addition to the roster established under Article 2009 (Roster), the Parties shall establish 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 have expertise or experience in financial services law or practice, which may include the regulation of financial institutions, and shall be chosen strictly on the basis of objectivity, reliability and sound judgment. Such members shall also meet the qualifications set out in Article 2009(2)(b) and (c). 4. Where a Party alleges that a dispute arises under this Chapter, Article 2011 (Panel Selection) applies to the selection of panelists, except that: (a) the panel shall be composed entirely of panelists meeting the qualifications in paragraph 3, where the disputing Parties agree; (b) in any case other than that set out in subparagraph (a) (i) each disputing Party may select panelists meeting the qualifications of Article 2010(1) (Qualifications of Panelists) or paragraph 3 of this Article, as the Party deems appropriate, and (ii) if the Party complained against alleges Article 1403 as a defense in the dispute, the chair of the panel must meet the qualifications of paragraph 3 of this Article. 5. Notwithstanding Article 2019(2) (Non-Implementation Suspension of Benefits), 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 equivalent effect as the measure or matter complained of has in the 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 1416: Investment Disputes in Financial Services 1. Where an investor of another Party submits a claim under Articles 1116 or 1117 to arbitration under Section B of Chapter Eleven (Settlement of Disputes Between a Party and an Investor of

Another Party) against a Party and the disputing Party alleges Article 1403 as a defense, on request of the disputing Party, the Tribunal shall refer the matter to the Committee for a decision. The Tribunal may not proceed pending receipt of a decision or report under this Article. 2. The Committee shall decide the issue of whether and to what extent Article 1403 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. If 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 a panel pursuant to Article 2008(1) to decide the issue. The matter shall proceed as a dispute under Article 1415. The panel shall transmit its final report to the Committee and to the Tribunal. The report shall be binding on the Tribunal. 4. If no request for the establishment of a panel pursuant to paragraph 3 has been made within 10 days following the expiration of the 60-day period referred to in paragraph 3, the Tribunal may proceed to decide the matter. Article 1417: Definitions For purposes of this Chapter: cross-border trade in services and cross-border provision of a service means "cross-border trade in services" and "cross-border provision of a service" as defined in Article 1213 (Definitions); 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 laws of the Party in whose territory it is located; financial institution of another Party means a financial institution in the territory of a Party that is controlled by nationals or enterprises of another Party; financial service means any service of a financial nature, including insurance, and any service incidental or auxiliary to a service of a financial nature; financial service provider of another Party means any national or enterprise of a Party that is engaged in the business of providing financial services in the territory of a Party and that is providing or intends to provide financial services through an investment in the territory of another Party or through crossborder provision into the territory of another Party; investment means "investment" as defined in Article 1138 (Definitions), except that:

(a) where regardless of shall only be as regulatory

the loan is extended to a financial institution, the original maturity of the loan, it an investment to the extent it is treated capital; or

(b) where the loan is granted by a financial service provider or a financial institution, the loan shall only be an investment if it is made on a cross-border basis and it has an original maturity of at least three years (other than a loan to a Party or state enterprise thereof); new financial service means a service of a financial nature, including a service related to an existing service or the manner in which a product is delivered, that is not provided by any financial service provider in the territory of a Party but which is provided a financial service provider in the territory of another Party; public entity means a Party, a central bank or monetary authority of a Party, or any financial institution owned or controlled by a Party; service provider of a Party means "service provider of a Party" as defined in Chapter 12 (Cross-Border Trade in Services); 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 regulatory or supervisory authority over financial service providers or financial institutions that are members or participants thereof, or that have access thereto. ======================================================================= ====== ANNEX 1401.6 Country Specific Commitments Articles 1702(1) and (2) of the Canada - United States Free Trade Agreement are incorporated into this Agreement and Canada and the United States agree to act in accordance with and be governed by those Articles. ======================================================================= ====== ANNEX 1404.4 Review of Market Access The review of market access referred to in Article 1404(4) shall not include the market access limitations specified in Part B of the Schedule of Mexico to Annex VII. ======================================================================= ======

ANNEX 1405.4 Consultations on Liberalization of Cross-Border Trade By January 1, 2000, the Parties shall consult on further liberalization of cross-border trade in financial services. Such consultations shall include the possibility of allowing a wider range of insurance services to be provided on a cross-border basis in the territory of each Party. With respect to Mexico, such consultations on cross-border insurance services shall determine whether the limitations on cross-border insurance services specified in Part A of the Schedule of Mexico to Annex VII shall be maintained, modified, or eliminated. ======================================================================= ====== ANNEX 1413.6 Future 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 Part 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 Part B of the Schedule of Mexico to Annex VII), measured as a percentage of the aggregate capital of all commercial banks in Mexico, reaches 25 percent, then 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. 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 various provisions agreed under this Chapter to protect the Mexican payments system. 3. If no consensus is achieved through consultations, which shall be completed in an expeditious time frame, a panel shall be convened under the procedures of Article 2008 (Request for an Arbitral Panel) of the Agreement to render a non-binding

recommendation to the Parties no later than 60 days after the panel is convened.

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 shall 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 regarding this Article. Article 1502: Monopolies and State Enterprises 1. Nothing in this Agreement shall 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 designation such conditions on the operation of the monopoly as will minimize or eliminate any nullification or impairment of benefits under this Agreement, in the sense of Annex 2004. 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 whenever such

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, 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 shall not apply to the procurement by governmental agencies of a good or service for governmental purposes and not with a view to commercial resale or with a view to use in the production of goods or provisions of services for commercial sale. Article 1503: State Enterprises 1. Nothing in this Agreement shall 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 Chapter Eleven (Investment) 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 nondiscriminatory 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 after the date of entry into force of the 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: in accordance with commercial considerations means consistent with normal business practices of privately-held enterprises in the relevant business or industry; 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 parent, subsidiary, or other enterprise with common ownership more favorably than an unaffiliated enterprise, or treating 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; market means the geographic and commercial market for a good or service; monopoly means an entity, including any 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 any entity that has been granted an exclusive intellectual property right solely by reason of such grant; non-discriminatory treatment means the better of national or most-favored-nation treatment, and state enterprise means, except as set out in Annex 1505.1, an enterprise owned, or controlled through ownership interests, by a Party. ======================================================================= ====== ANNEX 1505.1 State Enterprises

For purposes of Article 1503(3), "state enterprise" means, with respect to Canada, a Crown Corporation within the meaning of the Financial Administration Act (Canada) or a Crown corporation within the meaning of any comparable provincial legislation or that is incorporated under other applicable provincial legislation.

Chapter Sixteen Temporary Entry for Business Persons

Article 1601: General Principles Further to Article 102 (Objectives), the provisions of this Chapter reflect 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 such 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 including otherwise to public Party shall grant, in accordance with this Chapter, Annex 1603, temporary entry to business persons who are qualified for entry under applicable measures relating health and safety and national security.

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 the provisions of this Chapter; and (b) not 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 to 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 that 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 a 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 Sections B, C, or D of Annex 1603; and (d) proposed modifications of or additions to this

Chapter. Article 1606: Dispute Settlement A Party may not initiate proceedings under Article 2007 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 available administrative remedies regarding the particular matter, provided that such remedies 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 Chapter One (Objectives), Chapter Two (General Definitions), Chapter Twenty (Institutional Arrangements and Dispute Settlement), Chapter Twenty-Two (Final Provisions) and Articles 1801 through 1804, no provision of any other Chapter shall impose any obligation upon 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 the trade in goods, the provision of services or the conduct of investment activities; citizen means "citizen" as defined in Annex 1608; existing means "existing" as defined in Annex 1608; 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 Schedule I, without requiring that person to obtain an employment authorization, provided that the business person otherwise complies with existing immigration measures applicable to temporary entry, upon 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. If 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 Schedule I, without requiring that person to obtain an employment authorization, on a basis no less favorable than that provided under the existing provisions of the measure set out in Appendix 1603.A, provided that the business person otherwise complies with existing immigration measures applicable to temporary entry. 4. No Party shall:

(a) as a condition for temporary entry under paragraphs 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 paragraphs 1 or 3. 5. Notwithstanding paragraph 4, a Party may require a business person seeking temporary entry under this Part to obtain a visa or its equivalent prior to entry. Before imposing a visa

requirement, such 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, at the request of a Party whose business persons are subject to the requirement, consult with that Party 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 shall:

(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 Part 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 that such business person shall have been employed continuously by such enterprise for one year within the three-year period immediately preceding the date of the application for admission.

2.

No Party shall:

(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 Part to obtain a visa or its equivalent prior to entry. Before imposing a visa requirement, such 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, at the request of a Party whose business persons are subject to the requirement, consult with that Party with a view to its removal. Section D - Professionals 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 Schedule II, if the business person otherwise complies with existing immigration measures applicable to temporary entry, upon 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 shall:

(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 Part to obtain a visa or its equivalent prior to entry. Before imposing a visa requirement, such 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, upon the request of a Party whose business persons are subject to the requirement, consult with that Party 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 Schedule III, 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 Schedule II, if the Parties concerned have not agreed otherwise prior to the entry into force of this Agreement for such Parties. In establishing such a limit, such 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 Schedule III by an amount to be established in consultation with the other Party concerned, taking into account the demand for temporary entry under this Part; (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 such 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 such Parties. 6. Nothing in paragraphs 4 or 5 shall be construed so as 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 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 the United States and Mexico, in effect upon the date of entry into force of this Agreement; and (b) Canada and the United States, in effect on January 1, 1989. ======================================================================= ====== Appendix 1603.A Existing Immigration Measures

1. In the case of Canada, the Immigration Act, R.S.C. 1985 c.I2, as amended, and subsection 19(1) of the Immigration Regulations, 1978, 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. ======================================================================= ====== Schedule I Research and Design - Technical, scientific, and statistical researchers conducting independent research, or research for an enterprise located in the territory of another Party. Growth, Manufacture and Production - Harvester owner supervising a harvesting crew admitted under applicable law. - Purchasing and production management personnel conducting commercial transactions for an enterprise located in the territory of another Party. Marketing - Market researchers and analysts conducting independent research or analysis, or research or analysis for an enterprise located in

the territory of another Party. - Trade fair and promotional personnel attending a trade convention. Sales - Sales representatives and agents taking orders or negotiating contracts for goods or services for an enterprise located in the territory of another Party but not delivering goods or providing services. - Buyers purchasing for an enterprise located in the territory of another Party. Distribution - Transportation operators transporting goods or passengers to the territory of a Party from the territory of another Party or loading and transporting goods or passengers from the territory of a Party to the territory of another Party, with no loading and delivery within the territory of the Party into which entry is sought of goods located in or passengers boarding in that territory. - 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 consulting 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 such 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 Schedule II.

- Management and supervisory personnel engaging in a commercial transaction for an enterprise located in the territory of another Party. - Financial services personnel (insurers, bankers or investment brokers) engaging in commercial transactions for an enterprise located in the territory of another Party. - Public relations and advertising personnel consulting with business associates, and 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 such 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 Schedule: 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. ======================================================================= ====== Schedule II

PROFESSION

Accountant

Architect Computer Systems Analyst

MINIMUM EDUCATION REQUIREMENTS AND ALTERNATIVE CREDENTIALS Baccalaureate or Licenciatura Degree; or C.P.A., C.A., C.G.A., C.M.A. Baccalaureate or Licenciatura Degree; or state/provincial license Baccalaureate or Licenciatura Degree; or Post-Secondary Diploma or Post-Secondary Certificate, and three years experience

Disaster Relief Insurance Claims Adjuster (claims adjuster employed by an insurance company located in the territory of a Party, or an independent claims adjuster)

Economist

Engineer Forester Graphic Designer

Hotel Manager

Industrial Designer

Interior Designer

Land Surveyor Baccalaureate or Licenciatura Degree, and successful completion of training in the appropriate areas of insurance adjustment pertaining to disaster relief claims; or three years of experience in claims adjustment, and successful completion of training in the appropriate areas of insurance adjustment pertaining to disaster relief claims Baccalaureate or Licenciatura Degree Baccalaureate or Licenciatura Degree; or state/provincial license Baccalaureate or Licenciatura Degree; or state/provincial license Baccalaureate or Licenciatura Degree; or Post-Secondary Diploma or Post-Secondary Certificate, and three years

experience 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 Baccalaureate or Licenciatura Degree; or Post-Secondary Diploma or Post-Secondary Certificate, and three years experience

Landscape Architect Lawyer (including Notary in the Province of Quebec) Librarian

Management Consultant

Mathematician (including Statistician) MEDICAL/ALLIED PROFESSIONAL Dentist

Dietitian Baccalaureate or Licenciatura Degree LL.B., J.D., LL.L., B.C.L., or

Licenciatura Degree (five years); or membership in a state/provincial bar M.L.S. or B.L.S. (for which another Baccalaureate or Licenciatura Degree was a prerequisite) 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 Baccalaureate or Licenciatura Degree

D.D.S., D.M.D., Doctor en Odontologia, or Doctor en Cirugia Dental; or state/provincial license Baccalaureate or Licenciatura Degree; or state/provincial license ======================================================================= ====== Medical Laboratory Technologist (Canada)/Medical Technologist (United States and Mexico) Nutritionist Occupational Therapist

Pharmacist Physician (teaching or

research only) Physiotherapist/Physical Therapist Psychologist Recreational Therapist Registered Nurse Veterinarian

Research Assistant (Working in a post-secondary Baccalaureate or Licenciatura Degree; or Post-Secondary Diploma or Post-Secondary Certificate, and three years experience Baccalaureate or Licenciatura Degree Baccalaureate or Licenciatura Degree; or state/provincial license Baccalaureate or Licenciatura Degree; or state/provincial license M.D. or Doctor en Medicina; or state/provincial license Baccalaureate or Licenciatura Degree; or state/provincial license State/provincial license or Licenciatura Degree Baccalaureate or Licenciatura Degree

State/provincial license or Licenciatura Degree D.V.M., D.M.V., or Doctor en Veterinaria; or state/provincial license

Range Manager/ Range Conservationalist Research Assistant (Working in a post-secondary educational institution) Scientific Technician/Technologist

SCIENTIST Agriculturist (including Agronomist) Animal Breeder Animal Scientist Apiculturist

Baccalaureate or Licenciatura Degree

Baccalaureate or Licenciatura Degree

Possession of: (a) theoretical knowledge of any of the following disciplines: agricultural sciences, astronomy, biology, chemistry, engineering, forestry, geology, geophysics, meteorology or physics; and (b) the ability to solve practical problems in any of such disciplines, or the ability to apply principles of any of such disciplines to basic or applied research

Baccalaureate or Licenciatura Degree Baccalaureate or Licenciatura Degree Baccalaureate or Licenciatura Degree

Astronomer Biochemist Biologist Chemist Dairy Scientist Entomologist Epidemiologist Geneticist

Geologist Geochemist Geophysicist (including Oceanographer in Mexico and the United States) Horticulturist Meteorologist Pharmacologist Baccalaureate or Licenciatura Degree Baccalaureate or Licenciatura Degree Baccalaureate or Licenciatura Degree Baccalaureate or Licenciatura Degree Baccalaureate or Licenciatura Degree Baccalaureate or Licenciatura Degree Baccalaureate or Licenciatura Degree Baccalaureate or Licenciatura Degree Baccalaureate or Licenciatura Degree Baccalaureate or Licenciatura Degree

Baccalaureate or Licenciatura Degree Baccalaureate or Licenciatura Degree

Pharmacologist Physicist (including Oceanographer in Canada) Plant Breeder Poultry Scientist Soil Scientist Zoologist Social Worker Sylviculturist (including Forestry Specialist) TEACHER College Seminary University Baccalaureate or Licenciatura Degree Baccalaureate or Licenciatura Degree

Baccalaureate or Licenciatura Degree Baccalaureate or Licenciatura Degree Baccalaureate or Licenciatura Degree Baccalaureate or Licenciatura Degree Baccalaureate or Licenciatura Degree Baccalaureate or Licenciatura Degree

Baccalaureate or Licenciatura Degree Baccalaureate or Licenciatura Degree Baccalaureate or Licenciatura Degree

======================================================================= ====== Technical Publications Writer

Urban Planner (including Geographer) Vocational Counsellor Baccalaureate or Licenciatura Degree; or Post-Secondary

Diploma or Post-Secondary Certificate, and three years experience Baccalaureate or Licenciatura Degree Baccalaureate or Licenciatura Degree ======================================================================= ====== Schedule III United States of America 1. Commencing 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 Schedule II. 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 amended, including the worldwide numerical limit established by Section 214(g)(1)(A) of such Act; or (d) an admission under any other provision of Section 101(a)(15) of such 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 or non-Party; or (b) 10 years after the date of entry into force of this Agreement as between such Parties, whichever period is shorter.

Chapter Sixteen Temporary Entry for Business Persons

Article 1601: General Principles Further to Article 102 (Objectives), the provisions of this Chapter reflect 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 such 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 including otherwise to public Party shall grant, in accordance with this Chapter, Annex 1603, temporary entry to business persons who are qualified for entry under applicable measures relating health and safety and national security.

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 the provisions of this Chapter; and (b) not 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 to 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 that 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 a 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 Sections B, C, or D of Annex 1603; and (d) proposed modifications of or additions to this Chapter.

Article 1606: Dispute Settlement A Party may not initiate proceedings under Article 2007 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 available administrative remedies regarding the particular matter, provided that such remedies 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 Chapter One (Objectives), Chapter Two (General Definitions), Chapter Twenty (Institutional Arrangements and Dispute Settlement), Chapter Twenty-Two (Final Provisions) and Articles 1801 through 1804, no provision of any other Chapter shall impose any obligation upon 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 the trade in goods, the provision of services or the conduct of investment activities; citizen means "citizen" as defined in Annex 1608; existing means "existing" as defined in Annex 1608; 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 Schedule I, without requiring that person to obtain an employment authorization, provided that the business person otherwise complies with existing immigration measures applicable to temporary entry, upon 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. If 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 Schedule I, without requiring that person to obtain an employment authorization, on a basis no less favorable than that provided under the existing provisions of the measure set out in Appendix 1603.A, provided that the business person otherwise complies with existing immigration measures applicable to temporary entry. 4. No Party shall:

(a) as a condition for temporary entry under paragraphs 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 paragraphs 1 or 3. 5. Notwithstanding paragraph 4, a Party may require a business person seeking temporary entry under this Part to obtain a visa or its equivalent prior to entry. Before imposing a visa requirement, such 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, at the request of a Party whose business persons are subject to the requirement, consult with that Party 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 shall:

(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 Part 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 that such business person shall have been employed continuously by such enterprise for one year within the three-year period immediately preceding the date of the application for admission. 2. No Party shall:

(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 Part to obtain a visa or its equivalent prior to entry. Before imposing a visa requirement, such 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, at the request of a Party whose business persons are subject to the requirement, consult with that Party with a view to its removal. Section D - Professionals 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 Schedule II, if the business person otherwise complies with existing immigration measures applicable to temporary entry, upon 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 shall:

(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 Part to obtain a visa or its equivalent prior to entry. Before imposing a visa requirement, such 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, upon the request of a Party whose business persons are subject to the requirement, consult with that Party 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 Schedule III, 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 Schedule II, if the Parties concerned have not agreed otherwise prior to the entry into force of this Agreement for such Parties. In establishing such a limit, such 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 Schedule III by an amount to be established in consultation with the other Party concerned, taking into account the demand for temporary entry under this Part; (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 such 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 such Parties. 6. Nothing in paragraphs 4 or 5 shall be construed so as 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 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 the United States and Mexico, in effect upon the date of entry into force of this Agreement; and (b) Canada and the United States, in effect on January 1, 1989. ======================================================================= ====== Appendix 1603.A Existing Immigration Measures

1. In the case of Canada, the Immigration Act, R.S.C. 1985 c.I2, as amended, and subsection 19(1) of the Immigration Regulations, 1978, 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. ======================================================================= ====== Schedule I Research and Design - Technical, scientific, and statistical researchers conducting independent research, or research for an enterprise located in the territory of another Party. Growth, Manufacture and Production - Harvester owner supervising a harvesting crew admitted under applicable law. - Purchasing and production management personnel conducting commercial transactions for an enterprise located in the territory of another Party. Marketing - Market researchers and analysts conducting independent research or analysis, or research or analysis for an enterprise located in the territory of another Party.

- Trade fair and promotional personnel attending a trade convention. Sales - Sales representatives and agents taking orders or negotiating contracts for goods or services for an enterprise located in the territory of another Party but not delivering goods or providing services. - Buyers purchasing for an enterprise located in the territory of another Party. Distribution - Transportation operators transporting goods or passengers to the territory of a Party from the territory of another Party or loading and transporting goods or passengers from the territory of a Party to the territory of another Party, with no loading and delivery within the territory of the Party into which entry is sought of goods located in or passengers boarding in that territory. - 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 consulting 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 such 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 Schedule II.

- Management and supervisory personnel engaging in a commercial transaction for an enterprise located in the territory of another Party. - Financial services personnel (insurers, bankers or investment brokers) engaging in commercial transactions for an enterprise located in the territory of another Party. - Public relations and advertising personnel consulting with business associates, and 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 such 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 Schedule: 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. ======================================================================= ====== Schedule II

PROFESSION

Accountant

Architect Computer Systems Analyst

MINIMUM EDUCATION REQUIREMENTS AND ALTERNATIVE CREDENTIALS Baccalaureate or Licenciatura Degree; or C.P.A., C.A., C.G.A., C.M.A. Baccalaureate or Licenciatura Degree; or state/provincial license Baccalaureate or Licenciatura Degree; or Post-Secondary Diploma or Post-Secondary Certificate, and three years experience

Disaster Relief Insurance Claims Adjuster (claims adjuster employed by an insurance company located in the territory of a Party, or an independent claims adjuster)

Economist

Engineer Forester Graphic Designer

Hotel Manager

Industrial Designer

Interior Designer

Land Surveyor Baccalaureate or Licenciatura Degree, and successful completion of training in the appropriate areas of insurance adjustment pertaining to disaster relief claims; or three years of experience in claims adjustment, and successful completion of training in the appropriate areas of insurance adjustment pertaining to disaster relief claims Baccalaureate or Licenciatura Degree Baccalaureate or Licenciatura Degree; or state/provincial license Baccalaureate or Licenciatura Degree; or state/provincial license Baccalaureate or Licenciatura Degree; or Post-Secondary Diploma or Post-Secondary Certificate, and three years experience

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 Baccalaureate or Licenciatura Degree; or Post-Secondary Diploma or Post-Secondary Certificate, and three years experience

Landscape Architect Lawyer (including Notary in the Province of Quebec) Librarian

Management Consultant

Mathematician (including Statistician) MEDICAL/ALLIED PROFESSIONAL Dentist

Dietitian Baccalaureate or Licenciatura Degree LL.B., J.D., LL.L., B.C.L., or Licenciatura Degree (five

years); or membership in a state/provincial bar M.L.S. or B.L.S. (for which another Baccalaureate or Licenciatura Degree was a prerequisite) 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 Baccalaureate or Licenciatura Degree

D.D.S., D.M.D., Doctor en Odontologia, or Doctor en Cirugia Dental; or state/provincial license Baccalaureate or Licenciatura Degree; or state/provincial license ======================================================================= ====== Medical Laboratory Technologist (Canada)/Medical Technologist (United States and Mexico) Nutritionist Occupational Therapist

Pharmacist Physician (teaching or research only)

Physiotherapist/Physical Therapist Psychologist Recreational Therapist Registered Nurse Veterinarian

Research Assistant (Working in a post-secondary Baccalaureate or Licenciatura Degree; or Post-Secondary Diploma or Post-Secondary Certificate, and three years experience Baccalaureate or Licenciatura Degree Baccalaureate or Licenciatura Degree; or state/provincial license Baccalaureate or Licenciatura Degree; or state/provincial license M.D. or Doctor en Medicina; or state/provincial license Baccalaureate or Licenciatura Degree; or state/provincial license State/provincial license or Licenciatura Degree Baccalaureate or Licenciatura Degree

State/provincial license or Licenciatura Degree D.V.M., D.M.V., or Doctor en Veterinaria; or state/provincial license

Range Manager/ Range Conservationalist Research Assistant (Working in a post-secondary educational institution) Scientific Technician/Technologist

SCIENTIST Agriculturist (including Agronomist) Animal Breeder Animal Scientist Apiculturist

Baccalaureate or Licenciatura Degree

Baccalaureate or Licenciatura Degree

Possession of: (a) theoretical knowledge of any of the following disciplines: agricultural sciences, astronomy, biology, chemistry, engineering, forestry, geology, geophysics, meteorology or physics; and (b) the ability to solve practical problems in any of such disciplines, or the ability to apply principles of any of such disciplines to basic or applied research

Baccalaureate or Licenciatura Degree Baccalaureate or Licenciatura Degree Baccalaureate or Licenciatura Degree

Astronomer Biochemist Biologist Chemist Dairy Scientist Entomologist Epidemiologist Geneticist

Geologist Geochemist Geophysicist (including Oceanographer in Mexico and the United States) Horticulturist Meteorologist Pharmacologist Baccalaureate or Licenciatura Degree Baccalaureate or Licenciatura Degree Baccalaureate or Licenciatura Degree Baccalaureate or Licenciatura Degree Baccalaureate or Licenciatura Degree Baccalaureate or Licenciatura Degree Baccalaureate or Licenciatura Degree Baccalaureate or Licenciatura Degree Baccalaureate or Licenciatura Degree Baccalaureate or Licenciatura Degree

Baccalaureate or Licenciatura Degree Baccalaureate or Licenciatura Degree

Pharmacologist Physicist (including Oceanographer in Canada) Plant Breeder Poultry Scientist Soil Scientist Zoologist Social Worker Sylviculturist (including Forestry Specialist) TEACHER College Seminary University Baccalaureate or Licenciatura Degree Baccalaureate or Licenciatura Degree

Baccalaureate or Licenciatura Degree Baccalaureate or Licenciatura Degree Baccalaureate or Licenciatura Degree Baccalaureate or Licenciatura Degree Baccalaureate or Licenciatura Degree Baccalaureate or Licenciatura Degree

Baccalaureate or Licenciatura Degree Baccalaureate or Licenciatura Degree Baccalaureate or Licenciatura Degree

======================================================================= ====== Technical Publications Writer

Urban Planner (including Geographer) Vocational Counsellor Baccalaureate or Licenciatura Degree; or Post-Secondary Diploma or Post-Secondary

Certificate, and three years experience Baccalaureate or Licenciatura Degree Baccalaureate or Licenciatura Degree ======================================================================= ====== Schedule III United States of America 1. Commencing 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 Schedule II. 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 amended, including the worldwide numerical limit established by Section 214(g)(1)(A) of such Act; or (d) an admission under any other provision of Section 101(a)(15) of such 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 or non-Party; or (b) 10 years after the date of entry into force of this Agreement as between such Parties, whichever period is shorter.

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. Paragraph 2 shall apply, except as provided in Annex 1701.3.

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. Each Party shall comply with the requirements set out in Annex 1705.7. 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: (a) make it 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) make it 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 are 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 shall 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 words, at designate which the Party shall prohibit the registration as a trademark of least in English, French or Spanish, that generically goods or services or types of goods or services to 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 the 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, upon 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 26 May 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. This Article shall apply, except as provided in Annex 1710.9.

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 upon a marketing approval granted by another Party, the reasonable period of exclusive use of the data submitted in connection with obtaining the approval relied upon shall commence with the date of the first marketing approval relied upon. 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 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 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 and in Articles 1715 through 1718 shall 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 covered by 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 date of 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 date of 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 competent 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, upon 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, upon 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 ten working days after the applicant under paragraph 1 has been served notice of the suspension: (a) the customs administration has not been informed that 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 the 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, the provisions of 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 its 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 upon 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 are 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. This Article shall apply, except as provided in Annex 1718.14. 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, but not be limited to, 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 of contact points in its federal government and shall exchange information concerning trade in infringing goods. Article 1720: Protection of Existing Subject Matter 1. Other than the provisions of 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 which is protected in a Party on the said date, or which meets or comes subsequently to meet 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 paragraph 2, a Party shall not 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. Any acts in respect of specific objects embodying protected subject matter which become infringing under the terms of legislation in conformity with this Agreement, and which were commenced or in respect of which a significant investment was made, before the date of ratification of this Agreement by 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 the 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 the provisions of Article 1705(2)(d) or Article 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 upon 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 the provisions of this Agreement. Such amendments shall not include new matter. Article 1721: Definitions For purposes of this Agreement: confidential information includes trade secrets, privileged information and other materials exempted from disclosure under the Party's domestic law; 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; 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

in any event no later than three years after the date of signature of this Agreement.

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. Upon 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 procedures and administrative rulings respecting any matter covered by this published or otherwise made available enable interested persons and Parties them. 2. laws, regulations, of general application Agreement shall be promptly in such a manner as to to become acquainted with

To the extent possible, each Party shall:

(a) publish in advance any such measure that it proposes to adopt; and (b) provide a reasonable opportunity for comment by interested persons and Parties on such proposed measures. Article 1803: Notification and Provision of Information 1. Each Party shall, to the maximum extent possible, notify any other Party with an interest in the matter of any proposed or actual measure that it considers might materially affect the operation of this Agreement or otherwise substantially affect another Party's interests under this Agreement. 2. Upon request of another Party, a Party shall promptly provide information and respond to questions pertaining to any actual or proposed measure, whether or not previously notified. 3. Notification and provision of information 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 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) whenever 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, such 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 rather than adjudicating with respect to a particular act or practice, but, does not include 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.

Chapter Nineteen Review and Dispute Settlement in Antidumping and Countervailing Duty Matters

Article 1901: General Provisions 1. The provisions of Article 1904 shall apply 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 the purposes of Articles 1903 and 1904, panels shall be established in accordance with the provisions of Annex 1901.2. 3. With the exception of Article 2203 (Entry into Force), no provision of any other chapter of this Agreement shall be construed as imposing obligations on the Parties with respect to the Parties' 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 the Parties to this Agreement; (b) the amending Party notifies any Party to which the amendment applies in writing of the amending statute as far in advance as possible of the date of enactment of such statute; (c) following notification, the amending Party, upon

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 another 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 successor agreements 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 among 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 upon 60-day written notice to that Party. Article 1904: Review of Final Antidumping and Countervailing Determinations 1. As provided in this Article, the Parties 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 upon the administrative record, a final antidumping or countervailing duty determination of a competent investigating authority of a 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 this Agreement. 3. The panel shall apply the standard of review described in Article 1909 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, upon 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 forth in this Article. No Party shall provide in its domestic legislation for an appeal from a panel decision to its domestic courts. 12. The provisions of 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 forth 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, upon 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, with respect to goods of the other Parties, amend their 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. In particular, without limiting the generality of the foregoing: (a) each Party shall 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) each Party shall 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) each Party shall 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) Each Party shall make the further amendments set forth in Annex 1904.15(d). 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 court or panel of competent jurisdiction that is independent of the competent investigating authorities, that examines the basis for the investigating authorities' determination and whether the 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, that 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 the provisions of this Chapter. 4. The roster for special committees shall be that established pursuant to Annex 1904.13.1. 5. The special committee shall comprise three members selected

in accordance with the procedures set out in Annex 1904.13.1. 6. The Parties shall establish rules of procedure in accordance with the principles set out in Annex 1905.7. 7. If the special committee makes an affirmative finding in respect of one of the grounds specified in paragraph 1, the complaining Party and the Party complained against shall begin consultations within 10 days, 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: (a) suspend the operation of Article 1904 with respect to the Party complained against; or (b) suspend the application to the Party complained against of such benefits under this Agreement as may be appropriate under the circumstances. 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. If either Party decides to suspend the operation of Article 1904, it shall provide written notice of such suspension to the other Party. 10. The special committee may reconvene at any time, at the request of the Party complained against, to determine: (a) whether the suspension of benefits by the complaining Party pursuant to subparagraph 8(b) is manifestly excessive; or (b) whether 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 paragraphs 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 decision:

(a) binational panel or extraordinary challenge committee review under Article 1904 shall be stayed (i) with respect to 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 of this Article and in no case later than 150 days prior to an affirmative finding by the special committee, or (ii) with respect to 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 for requesting panel or committee review under Article 1904 shall be tolled. 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) with respect to 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) with respect to 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 party 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 time period tolled under Paragraph 11(b) of this Article shall resume. If such suspension does not become effective, panel or committee review stayed under paragraph 11(a), and any time period tolled under paragraph 8(b), shall resume. Article 1906: Prospective Application The provisions of 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, if appropriate. In the context of these consultations, the Parties agree that it is desirable in the administration of anti-dumping and countervailing duty laws to: (a) publish notice of initiation of investigations in the importing country's official journal, setting forth the nature of the proceeding, the legal authority under which the proceeding is initiated, and a description of the product 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, including foreign interests, and reasonable time to respond to requests for information; (d) accord reasonable access to information (i) "reasonable access" in this context 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 forth 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, (ii) "access to information" in this context 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 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 the opportunity for interested parties, including foreign interests, 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 authorities 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 upon which any preliminary or final determination of dumping or of subsidization is based, within a reasonable time after a request by interested parties, including foreign interests. Such information shall include an explanation of the calculation or the methodology used to determine the margin of dumping or the amount of subsidy; (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 paragraphs (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 and the work of panels or committees that may be convened pursuant to this Chapter. 2. The secretaries of the Secretariat established pursuant to Article 2002 shall act jointly to service all meetings of panels or committees established pursuant to this Chapter. The secretary 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 the permanent offices. Such secretary shall upon request provide to the secretary 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 of the 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. Each secretary shall forward to the secretary of the other involved Party copies of all official letters, documents or other papers received or filed with the Secretariat 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 of an involved Party shall provide upon request to the secretary of the Party that is not an involved Party in the proceeding a copy of such public documents as are requested. 5. The remuneration of panelists or committee members, their travel and lodging expenses, and all general expenses of the panels or committees shall be borne equally by the involved Parties. Each panelist or committee member shall keep a record and render a final account of the person's time and expenses, and the panel or committee shall keep a record and render a final account of all general expenses. The Commission shall establish amounts of remuneration and expenses that will be paid to the panelists and committee members. 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 Upon request, the competent investigating authority of a Party shall provide the other Party or Parties with copies of all public information submitted to it for the purposes of an investigation with respect to goods of that other Party or Parties. 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" 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" as defined in Annex 1911; domestic law for the 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" 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; importing Party means the Party that issued the final determination; 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 standards set out in Annex 1911, as may be amended from time to time by a Party. ======================================================================= ====== ANNEX 1901.2 Establishment of Binational Panels 1. Prior to the date of entry into force of this Agreement, the Parties shall develop a roster of individuals to serve as panelists in disputes under this Chapter. The roster shall include sitting or retired 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, the United States or Mexico. 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. Judges shall not be considered to be affiliated with 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. 4. Upon 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 upon 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. Upon 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 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 19O3.2 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 upon the arguments and submissions of the two Parties. 2. Unless the Parties 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. 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 Partie's shall decide by lot which of them shell 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 upon 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(d) Amendments to Domestic Laws Part A - Schedule of Canada 1. Canada shall amend sections 56 and 58 of the Special Import Measures Act, as amended, to allow the United States or 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 the Mexico and the United States; 5. Canada shall amend Part II of the Special Import Measures Act, as amended, to provide for definitions related to this Agreement, as may be required; 6. Canada shall amend Part II 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; 7. Canada shall amend Part II of Special Import Measures Act, as amended, to provide for the establishment of panels requested to review final determinations in respect of goods of Mexico and

goods of the United States; 8. Canada shall amend Part II of Special Import Measures Act, as amended, to provide for the conduct of review of a final determination in accordance with Chapter XX of this Agreement; 9. Canada shall amend Part II of the Special Import Measures Act, as amended, to provide for request and conduct of an extraordinary challenge proceeding in accordance with Article 1904 of this Agreement; 10. Canada shall amend Part II of the Special Import Measures Act, as amended, to provide for a code of conduct, immunity, disclosure undertakings respecting confidential information and remuneration for members of panels established pursuant to this Agreement; and 11. Canada shall make such amendments as are necessary to establish a Canadian Secretariat for this Agreement and generally to facilitate the operation of Chapter 19 of this Agreement. Part B - 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: 1. elimination of the possibility of imposing duties within the five day period after the acceptance of a petition; substitution of the term Resoluci?n de Inicio for Resoluci?n Provisional and the term Resoluci?n Provisional for Resoluci?n que revisa a la Resoluci?n Provisional; 2. full participation in the administrative process for interested parties, including foreign interests, 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; 3. elimination of the possibility of imposing provisional duties before the issuance of a preliminary determination; 4. the right to immediate access to review of final determinations by binational panels, to interested parties, including foreign interests, without the need to exhaust first the administrative appeal; 5. explicit and adequate timetables for determinations of the competent investigating authority and for the submission of questionnaires, evidence and comments by interested parties, including foreign interests, 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; 6. written notice to interested parties, including foreign interests, of any of the actions or resolutions rendered by the competent investigating authority, including initiation of an administrative review as well as its conclusion; 7. disclosure meetings by the competent investigating authority with interested parties, including foreign interests, in investigations and reviews, within seven calendar days after the date of publication in the Diario Oficial de la Federacion of preliminary and final determinations, to explain the margins of dumping and the amount of subsidies calculations and to provide them with copies of sample calculations and, if used, computer programs; 8. timely access by eligible counsel of interested parties, including foreign interests, 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; 9. timely access by interested parties, including foreign interests, during the course of the proceeding, to all nonconfidential 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; 10. 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; 11. 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, such documents must be disclosed to a party's representative under an undertaking to ensure confidentiality; 12. 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; 13. informing interested parties, including foreign interests,

in writing of all data and information the administering authority requires them to submit for the investigation, review, product coverage proceeding, or other antidumping and countervailing duty proceedings; 14. the right to an annual individual review on request by the interested parties, including foreign interests, 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; 15. application of determinations issued as a result of judicial, administrative, or panel review, to the extent they are relevant to interested parties, including foreign interests, in addition to the plaintiff, so that all interested parties will benefit; 16. issuance of binding decisions by the competent investigating authority if an interested party, including a foreign interest, seeks clarification outside the context of an antidumping or countervailing duty investigation or review as to whether a particular product is covered by an antidumping or countervailing duty order; 17. a detailed statement of reasons and legal basis concerning final determinations in a manner sufficient to permit interested parties, including foreign interests, 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; 18. written notice to interested parties, including foreign interests, and publication in the Diario Oficial de la Federacion of initiation of investigations setting forth the nature of the proceeding, the legal authority under which the proceeding is initiated, and a description of the product at issue; 19. documentation in writing of all advisory bodies' decisions or recommendations, including the basis for the decision, and release of such written decision 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 20. a standard of review to be applied by binational panels as defined in Article 1911. Part C - 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, 19 U.S.C. section 2112 note, 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 chapter 19 of this Agreement; 3. The United States shall amend section 405(b) of the United States-Canada Free-Trade Agreement Implementation Act of 1988, 19 U.S.C. section 2112 note, to provide that panelists selected to serve on panels or committees convened pursuant to chapter XX of this Agreement, 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, 19 U.S.C. section 2112 note, to provide that panelists selected to serve on panels or committees convened pursuant to chapter XX of this Agreement, 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 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; 5. The United States shall amend section 405(d) of the United States-Canada Free-Trade Agreement Implementation Act of 1988, 19 U.S.C. section 2112 note, to establish a United States Secretariat to facilitate, inter alia, the operation of chapter XX of this Agreement and the work of the binational panels, extraordinary challenge committees, and special committees convened under that chapter; 6. The United States shall amend section 407 of the United States-Canada Free-Trade Agreement Implementation Act of 1988, 19 U.S.C. section 2112 note, to provide on that an extraordinary challenge committee convened pursuant to chapter XX of this Agreement 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, 19 U.S.C. section 2112 note, 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 of this Agreement shall be deemed, upon receipt of the request by the Secretary, to be a request for binational panel review within the meaning of Article 1904.4 of that Agreement; 8. The United States shall amend section 516A of the Tariff Act of 1930 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 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 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 to provide, in accordance with the terms of this Agreement, 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 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 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; and 13. The United States shall amend section 777 of the Tariff Act of 1930 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 1905.7 Special Committee Procedures

1. 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 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, or the Deputy Minister's successor; (b) in the case of the United States; (i) the International Trade Administration of the United States Department of Commerce, or its successor, or (ii) the United States International Trade Commission, or its successor; and (c) in the case of Mexico, the designated authority within the Secretar?a de Comercio y Fomento Industrial, or its successor. countervailing duty statute means: (a) in the case of Canada, the relevant provisions of the Special Import Measures Act, as amended, and any successor statutes; (b) in the case of the United States, section 303 and the relevant provisions of Title VII of the Tariff Act of 1930, as amended, and any successor statutes; (c) in the case of Mexico, Ley Reglamentaria del Art?culo Pol?tica de los Estados Unidos Comercio Exterior, as amended, statutes; and the relevant provisions of the 131 de la Constituci?n Mexicanos en Materia de and any successor

(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, 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 pursuant to section 41 of the Special Import Measures Act, (iv) a re-determination by the Deputy Minister pursuant to section 59 of the Special Import Measures Act, (v) a decision by the Canadian International Trade Tribunal pursuant to subsection 76(3) of the Special Import Measures Act 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, and (vii) a review by the Deputy Minister of an undertaking pursuant to section 53(1) of the Special Import Measures Act; (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, not to review a determination based upon 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 anti-dumping or countervailing duties investigations by the Secretar?a de Comercio y Fomento Industrial, 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, as amended, (ii) a final resolution regarding an annual administrative review of anti-dumping or countervailing duties by the Secretar?a de Comercio y Fomento Industrial, as described in Article 1904.15(q)(xiv), and (iii) a final resolution by the Secretaria de Comercio y Fomento Industrial as to whether a particular type of merchandise is within the class or kind of merchandise described in an existing antidumping or countervailing duty resolution. standard of review means: (a) in the case of Canada, the grounds set forth in section 18.1(4) of the Federal Court Act with respect to all final determinations; (b) in the case of the United States, (i) the standard set forth 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 forth 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 forth in Article 238 of the C?digo Fiscal de la Federaci?n, or

any successor statutes, based solely on the administrative record.

Chapter Twenty Institutional Arrangements and Dispute Settlement Procedures Subchapter 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 Nineteen (Review and Dispute Settlement in Antidumping and Countervailing Duty Matters), in accordance with the procedures established pursuant to Article 1908, and (ii) panels established under this Chapter, in accordance with procedures established pursuant to Article 2012; and (c) as the Commission may direct: (i) support the work of other committees and groups established under this Agreement, and (ii) otherwise facilitate the operation of this Agreement.

Subchapter B - Dispute Settlement Article 2003: Cooperation The Parties shall at all times endeavor to agree on the

interpretation and application of this Agreement, and shall make every attempt through cooperation and consultations to arrive at a mutually satisfactory resolution of any matter that might affect its operation. Article 2004: Recourse to Dispute Settlement Procedures Except as otherwise provided in this Agreement, the dispute settlement provisions of this Chapter shall apply with respect to the avoidance or settlement of all disputes between the Parties regarding the interpretation or application of this Agreement or wherever a Party considers that an actual or proposed measure of another Party is or would be inconsistent with the obligations of this Agreement or cause nullification or impairment in the sense of Annex 2004. Article 2005: GATT Dispute Settlement 1. Subject to paragraphs 2, 3 and 4, disputes regarding any matter arising under both this Agreement and the General Agreement on Tariffs and Trade, any agreement negotiated thereunder, or any successor agreement (GATT), may be settled in either forum at the discretion of the complaining Party. 2. Before a Party initiates a dispute settlement proceeding in the GATT against another Party on grounds that are substantially equivalent to those available to that Party under this Agreement, that Party shall notify any third Party of its intention. If a third Party wishes to have recourse to dispute settlement procedures under this Agreement regarding the matter, it shall inform promptly the notifying Party and those Parties shall consult with a view to agreement on a single forum. If those Parties cannot agree, the dispute normally shall be settled under this Agreement. 3. In any dispute referred to in paragraph 1 where the responding Party claims that its action is subject to Article 104 (Relation to Environmental and Conservation Agreements) and requests in writing that the matter be considered under this Agreement, the complaining Party may, in respect of that matter, thereafter have recourse to dispute settlement procedures solely under this Agreement. 4. In any dispute referred to in paragraph 1 that arises under Subchapter Seven-B (Sanitary and Phytosanitary Measures) or Chapter Nine (Standards-Related Measures). (a) concerning a measure adopted or maintained by a Party to protect its human, animal, or plant life or health, or to protect its environment; and (b) that raises factual issues concerning the environment, health, safety or conservation, including directly related scientific matters,

where the responding Party requests in writing that the matter be considered under this Agreement, the complaining Party may, in respect of that matter, thereafter have recourse to dispute settlement procedures solely under this Agreement. 5. The responding Party shall deliver a copy of a request made pursuant to paragraph 3 or 4 to the other Parties and to its Section of the Secretariat. Where the complaining Party has initiated dispute settlement proceedings regarding any matter subject to paragraph 3 or 4, the responding Party shall deliver its request no later than 15 days thereafter. Upon receipt of such request, the complaining Party shall promptly withdraw from participation in those proceedings and may initiate dispute settlement procedures under Article 2007. 6. Once dispute settlement procedures have been initiated under Article 2007 or dispute settlement proceedings have been initiated under the GATT, the forum selected shall be used to the exclusion of the other, unless a Party makes a request pursuant to paragraph 3 or 4. 7. For purposes of this Article, dispute settlement proceedings under the GATT are deemed to be initiated by a Party's request for a panel, such as under Article XXIII:2 of the General Agreement on Tariffs and Trade 1947, or for a committee investigation, such as under Article 20.1 of the Customs Valuation Code. Consultations Article 2006: Consultations 1. Any Party may request in writing consultations with any other Party regarding any actual or proposed measure or any other matter that it considers might affect the operation of this Agreement. 2. The requesting Party shall deliver the request to the other Parties and to its Section of the Secretariat. 3. Unless the Commission otherwise provides in its rules and procedures established under Article 2001(4), a third Party that considers it has a substantial interest in the matter shall be entitled to participate in the consultations on delivery of written notice to the other Parties and to its Section of the Secretariat. 4. Consultations on matters regarding perishable agricultural goods shall commence within 15 days of the date of delivery of the request. 5. The consulting Parties shall make every attempt to arrive at a mutually satisfactory resolution of any matter through consultations under this Article or other consultative provisions of this Agreement. To this end, the consulting Parties shall:

(a) provide sufficient information to enable a full examination of how the actual or proposed measure or other matter might affect the operation of this Agreement; (b) treat any confidential or proprietary information exchanged in the course of consultations on the same basis as the Party providing the information; and (c) seek to avoid any resolution that adversely affects the interests under this Agreement of any other Party. Initiation of Procedures Article 2007: Commission - Good Offices, Conciliation and Mediation 1. If the consulting Parties fail to resolve a matter pursuant to Article 2006 within: (a) 30 days of delivery of a request for consultations; (b) 45 days of delivery of such request if any other Party has subsequently requested or has participated in consultations regarding the same matter; (c) 15 days of delivery of a request for consultations in matters regarding perishable agricultural goods; or (d) such other period as they may agree, any such Party may request in writing a meeting of the Commission. 2. A Party may also request in writing a meeting of the Commission where: (a) it has initiated dispute settlement proceedings under the GATT regarding any matter subject to Article 2005(3) or (4), and has received a request pursuant to Articles 2005(5) for recourse to dispute settlement procedures under this Chapter; or (b) consultations have been held pursuant to Article 513 (Working Group on Rules of Origin), Article 765 (Sanitary and Phytosanitary Measures - Technical Consultations) and Article 914 (Standards-Related Measures - Technical Consultations). 3. The requesting Party shall state in the request the measure or other matter complained of and indicate the provisions of this Agreement that it considers relevant, and shall deliver the request to the other Parties and to its Section of the Secretariat. 4. Unless it decides otherwise, the Commission shall convene

within 10 days of delivery of the request and shall endeavor to resolve the dispute promptly. 5. The Commission may:

(a) call on such technical advisers or create such working groups or expert groups as it deems necessary; (b) have recourse to good offices, conciliation, mediation or such other dispute resolution procedures; or (c) make recommendations, as may assist the consulting Parties to reach a mutually satisfactory resolution of the dispute. 6. Unless it decides otherwise, the Commission shall consolidate two or more proceedings before it pursuant to this Article regarding the same measure. The Commission may consolidate two or more proceedings regarding other matters before it pursuant to this Article that it determines are appropriate to be considered jointly. Panel Proceedings Article 2008: Request for an Arbitral Panel

1. If the Commission has convened pursuant to Article 2007(4), and the matter has not been resolved within: (a) 30 days thereafter; (b) 30 days after the Commission has convened in respect of the matter most recently referred to it, where proceedings have been consolidated pursuant to Article 2007(6); or (c) such other period as the consulting Parties may agree, any consulting Party may request in writing the establishment of an arbitral panel. The requesting Party shall deliver the request to the other Parties and to its Section of the Secretariat. 2. Upon delivery of the request, the Commission shall establish an arbitral panel. 3. A third Party that considers it has a substantial interest in the matter shall be entitled to join as a complaining Party, on delivery of written notice of its intention to participate to the disputing Parties and its Section of the Secretariat. Such notice shall be delivered at the earliest possible time, and in any event no later than seven days after the date of delivery of a request by a Party for the establishment of a panel. 4. If such Party does not join as a complaining Party in

accordance with paragraph 3, it normally shall refrain thereafter from initiating or continuing: (a) a dispute settlement procedure under this Agreement; or (b) a dispute settlement proceeding in the GATT on grounds that are substantially equivalent to those available to that Party under this Agreement, regarding the same matter in the absence of a significant change in economic or commercial circumstances. 5. Unless otherwise agreed by the disputing Parties, the panel shall be established and perform its functions in a manner consistent with the provisions of this Chapter. Article 2009: Roster 1. The Parties shall establish and maintain a roster of up to 30 individuals who are willing and able to serve as panelists. The roster members shall be appointed by consensus for terms of three years, and may be reappointed. 2. Roster members shall:

(a) have expertise or experience in law, international trade, other matters covered by this Agreement, or the resolution of disputes arising under international trade agreements, and shall be chosen strictly on the basis of objectivity, reliability and sound judgment; (b) be independent of, and not be affiliated with or take instructions from, any Party; and (c) comply with a code of conduct to be established by the Commission. Article 2010: Qualifications of Panelists 1. All panelists shall meet the qualifications set out in Article 2009(2). 2. Individuals may not serve as panelists for a dispute in which they have participated pursuant to Article 2007(5). Article 2011: Panel Selection 1. Where there are two disputing Parties, the following procedures shall apply: (a) The panel shall comprise five members. (b) The disputing Parties shall endeavor to agree on the

chair of the panel within 15 days of the delivery of the request for the establishment of the panel. If the disputing Parties are unable to agree on the chair within this period, the disputing Party chosen by lot shall select within five days as chair an individual who is not a citizen of that Party. (c) Within 15 days of selection of the chair, each disputing Party shall select two panelists who are citizens of the other disputing Party. (d) If a disputing Party fails to select its panelists within such period, such panelists shall be selected by lot from among the roster members who are citizens of the other disputing Party. 2. Where there are more than two disputing Parties, the following procedures shall apply: (a) The panel shall comprise five members. (b) The disputing Parties shall endeavor to agree on the chair of the panel within 15 days of the delivery of the request for the establishment of the panel. If the disputing Parties are unable to agree on the chair within this period, the Party or Parties on the side of the dispute chosen by lot shall select within 10 days a chair who is not a citizen of such Party or Parties. (c) Within 15 days of selection of the chair, the Party complained against shall select two panelists, one of whom is a citizen of a complaining Party, and the other of whom is a citizen of another complaining Party. The complaining Parties shall select two panelists who are citizens of the Party complained against. (d) If any disputing Party fails to select a panelist within such period, such panelist shall be selected by lot in accordance with the citizenship criteria of subparagraph (c). 3. Panelists shall normally be selected from the roster. Any disputing Party may exercise a peremptory challenge against any individual not on the roster who is proposed as a panelist by a disputing Party within 15 days after the individual has been proposed. 4. If a disputing Party believes that a panelist is in violation of the code of conduct, the disputing Parties shall consult and if they agree, the panelist shall be removed and a new panelist shall be selected in accordance with this Article. Article 2012: Rules of Procedure 1. The Commission shall establish Model Rules of Procedure, in accordance with the following principles:

(a) The procedures shall assure a right to at least one hearing before the panel as well as the opportunity to provide initial and rebuttal written submissions. (b) The panel's hearings, deliberations and initial report, and all written submissions to and communications with the panel shall be confidential. 2. Unless the disputing Parties otherwise agree, the panel shall conduct its proceedings in accordance with the Model Rules of Procedure. 3. Unless the disputing Parties otherwise agree within 20 days from the date of the delivery of the request for the establishment of the panel, the terms of reference shall be: "To examine, in the light of the relevant provisions of the NAFTA, the matter referred to the Commission (as set out in the request for a Commission meeting) and to make findings, determinations and recommendations as provided in Article 2016(2)." 4. If a complaining Party wishes to argue that a matter has nullified or impaired benefits, the terms of reference shall so indicate. 5. If a disputing Party wishes the panel to make findings as to the degree of adverse trade effects on any Party of any measure found not to conform with the obligations of the Agreement or to have caused nullification or impairment in the sense of Annex 2004, the terms of reference shall so indicate. Article 2013: Third Party Participation A Party that is not a disputing Party, on delivery of a written notice to the disputing Parties and to its Section of the Secretariat, shall be entitled to attend all hearings, to make written and oral submissions to the panel and to receive written submissions of the disputing Parties. Article 2014: Role of Experts At the request of a disputing Party, or on its own initiative, the panel may seek information and technical advice from any person or body that it deems appropriate, provided that the disputing Parties so agree and subject to such terms and conditions as such Parties may agree. Article 2015: Scientific Review Boards 1. At the request of a disputing Party or, unless the disputing Parties disapprove, on its own initiative, the panel may request a written report of a scientific review board on any factual issue concerning environmental, health, safety or other

scientific matters raised by a disputing Party in a proceeding, subject to such terms and conditions as such Parties may agree. 2. The board shall be selected by the panel from among highly qualified, independent experts in the scientific matters, after consultations with the disputing Parties and the scientific bodies set out in the Model Rules of Procedure established pursuant to Article 2012(1). 3. The participating Parties shall be provided:

(a) advance notice of, and an opportunity to provide comments to the panel on, the proposed factual issues to be referred to the board; and (b) a copy of the board's report and an opportunity to provide comments on the report to the panel. 4. The panel shall take the board's report and any comments by the Parties thereon into account in the preparation of its report. Article 2016: Initial Report 1. Unless the disputing Parties otherwise agree, the panel shall base its report on the submissions and arguments of the Parties and on any information before it pursuant to Article 2014 or 2015. 2. Unless the disputing Parties otherwise agree, the panel shall, within 90 days after the last panelist is selected or such other period as the Model Rules of Procedure established pursuant to Article 2012(1) may provide, present to the disputing Parties an initial report containing: (a) findings of fact, including any findings pursuant to a request under Article 2012(5); (b) its determination as to whether the measure at issue is or would be inconsistent with the obligations of this Agreement or cause nullification or impairment in the sense of Annex 2004, or any other determination requested in the terms of reference; and (c) its recommendations, if any, for resolution of the dispute. 3. Panelists may furnish separate opinions on matters not unanimously agreed. 4. A disputing Party may submit written comments to the panel on its initial report within 14 days of presentation of the report. 5. In such an event, and after considering such written comments, the panel, on its own initiative or at the request of

any disputing Party, may: (a) request the views of any participating Party; (b) reconsider its report; and (c) make any further examination that it considers appropriate. Article 2017: Final Report 1. The panel shall present to the disputing Parties a final report, including any separate opinions on matters not unanimously agreed, within 30 days of presentation of the initial report, unless the disputing Parties otherwise agree. 2. No panel may, either in its initial report or its final report, disclose which panelists are associated with majority or minority opinions. 3. The disputing Parties shall transmit to the Commission the final report of the panel, including any report of a scientific review board established under Article 2015, as well as any written views that a disputing Party desires to be appended, on a confidential basis within a reasonable period of time after it is presented to them. 4. Unless the Commission decides otherwise, the final report of the panel shall be published 15 days after it is transmitted to the Commission. Implementation of Panel Reports Article 2018: Implementation of Final Report 1. On receipt of the Parties shall agree on normally shall conform recommendations of the the Secretariat of any final report of a panel, the disputing the resolution of the dispute, which with the determinations and panel, and shall notify their Sections of agreed resolution of any dispute.

2. Whenever possible, such resolution shall be non-implementation or removal of a measure not conforming with this Agreement or causing nullification or impairment in the sense of Annex 2004 or, failing such a resolution, compensation. Article 2019: Non-Implementation - Suspension of Benefits 1. If in its final report a panel has determined that a measure is inconsistent with the obligations of this Agreement or causes nullification or impairment in the sense of Annex 2004 and the Party complained against has not reached agreement with any complaining Party on a mutually satisfactory resolution pursuant to Article 2018(1) within 30 days of receiving the final report,

such complaining Party may suspend the application to the Party complained against of benefits of equivalent effect until such time as they have reached agreement on a resolution of the dispute. 2. In considering what benefits to suspend pursuant to paragraph 1: (a) a complaining Party should first seek to suspend benefits in the same sector or sectors as that affected by the measure or other matter that the panel has found to be inconsistent with the obligations of this Agreement or to have caused nullification or impairment by the non-complying Party in the sense of Annex 2004; and (b) a complaining Party that considers it is not practicable or effective to suspend benefits in the same sector or sectors may suspend benefits in other sectors. 3. On the written request of any disputing Party delivered to the other Parties and its Section of the Secretariat, the Commission shall establish a panel to determine whether the level of benefits suspended by a Party pursuant to paragraph 1 is manifestly excessive. 4. The panel proceedings shall be conducted in accordance with the Model Rules of Procedure. The panel shall present its determination within 60 days after the last panelist is selected or such other period as the disputing Parties may agree.

Subchapter C - Domestic Proceedings and Private Commercial Dispute Settlement Article 2020: Referrals of Matters from Judicial or Administrative Proceedings 1. If an issue of interpretation or application of this Agreement arises in any domestic judicial or administrative proceeding of a Party that any Party considers would merit its intervention, or if a court or administrative body solicits the views of a Party, that Party shall notify the other Parties and its Section of the Secretariat. The Commission shall endeavor to agree on an appropriate response as expeditiously as possible. 2. The Party in whose territory the court or administrative body is located shall submit any agreed interpretation of the Commission to the court or administrative body in accordance with the rules of that forum. 3. If the Commission is unable to agree, any Party may submit its own views to the court or administrative body in accordance with the rules of that forum.

Article 2021: Private Rights No Party may provide for a right of action under its domestic law against any other Party on the ground that a measure of another Party is inconsistent with this Agreement. Article 2022: Disputes Alternative Dispute Resolution of Commercial

1. Each Party shall, to the maximum extent possible, encourage and facilitate the use of arbitration and other means of alternative dispute resolution for the settlement of international commercial disputes between private parties in the free trade area. 2. To this end, each Party shall provide appropriate procedures to ensure observance of agreements to arbitrate and for the recognition and enforcement of arbitral awards in such disputes. 3. A Party shall be deemed to be in compliance with paragraph 2 if it is a party to and is in compliance with the 1958 United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards or the 1975 Inter-American Convention on International Commercial Arbitration. 4. The Commission shall establish an Advisory Committee on Private Commercial Disputes comprising persons with expertise or experience in the resolution of private international commercial disputes. The Committee shall report and provide recommendations to the Commission on general issues referred to it by the Commission respecting the availability, use and effectiveness of arbitration and other procedures for the resolution of such disputes in the free trade area. ======================================================================= ====== ANNEX 2001.2 Committees and Working Groups A. Committees: 1. Committee on Trade in Goods (Article 317) 2. Committee on Trade in Worn Clothing (Annex 300-B, Section 9.1) 3. Committee on Agricultural Trade (Article 708) 4. Committee on Sanitary and Phytosanitary Measures (Article 764)

5. Committee on Standards-Related Measures (Article 913) (a) Land Transportation Services Standards Subcommittee (Article 913(5)) (b) Telecommunications Standards Subcommittee (Article 913(5)) (c) Automotive Standards Council (Article 913(5)) (d) Subcommittee on Labelling of Textile and Apparel Goods (Article 913(5)) 6. Committee on NAFTA Small Business (Article 7. Financial Services Committee (Article 1414) 8. Advisory Committee on Private Commercial Disputes (Article 2022) B. Working Groups: 1. Working Group on Rules of Origin (Article 513) (a) Customs Subgroup (Article 513(5)) 2. Working Group on Agricultural Subsidies (Article 706(6)) I) II) 5. Working Group on Trade and Competition (Article 1504) 6. Temporary Entry Working Group (Article 1605) C. Other Committees and Working Groups established under this Agreement 3. Mexican-American Working Group (Article 704(3), Section 4. Mexican-Canadian Working Group (Article 704(3), Section 1021)

======================================================================= ====== ANNEX 2002.2 Remuneration and Payment of Expenses 1. The Commission shall establish the amounts of remuneration and expenses that will be paid to the panelists, committee members and members of scientific review boards. 2 The remuneration of panelists or committee members and their

assistants, members of scientific review boards, their travel and lodging expenses, and all general expenses of panels, committees or scientific review boards shall be borne equally by: (a) in the case of panels or committees established under Chapter Nineteen (Review and Dispute Settlement in Antidumping and Countervailing Duty Matters), the involved Parties, as they are defined in Article 1911; or (b) in the case of panels and scientific review boards established under this Chapter, the disputing Parties. 3. Each panelist shall keep a record and render a final account of the person's time and expenses, and the panel, committee or scientific review board shall keep a record and render a final account of all general expenses. ======================================================================= ====== ANNEX 2004 Nullification and Impairment 1. If any Party considers that any benefit it could reasonably have expected to accrue to it under any provision of: (a) Part Two (Trade in Goods), except for those provisions of Annex 300-A (Automotive Sector) or Chapter Six (Energy) relating to investment, (b) Part Three (Technical Barriers to Trade), (c) Chapter Twelve (Cross-Border Trade in Services), or (d) Part Six (Intellectual Property), is being nullified or impaired as a result of the application of any measure that is not inconsistent with this Agreement, the Party may have recourse to dispute settlement under this Chapter. 2. A Party may not invoke:

(a) paragraph (1)(a) or (b), to the extent that the benefit arises from any cross-border trade in services provision of Part Two, or (b) paragraph (1)(c) or (d), with respect to any measure subject to an exception under Article 2101 (General Exceptions).

PART NINE 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, or

3. 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 Article 1106(1)(b) or (c) or (3)(a) or (b) (Performance Requirements) 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 2102: National Security 1. Subject to Articles 607 (Energy) and 1018 (Government Procurement), 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 the provisions of this Agreement and any such convention, the provisions of 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 315 (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 1407 (Financial Services National Treatment) shall apply to taxation measures on income, capital gains or on the taxable capital of corporations, and to those taxation measures set out in Annex 2103.4 that relate to the purchase or consumption of particular services, and (b) Articles 1102 and 1103 (Investment - National Treatment and MFN), Articles 1202 and 1203 (Cross-Border Trade in Services - National Treatment and MFN) and Articles 1407 and 1408 (Financial Services - National Treatment and MFN) and shall apply to all taxation measures, other than those on income, capital gains or on the taxable capital of corporations and those taxes listed in 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 nonconforming 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 set out in Annex 2103.4. 5. Subject to paragraph 2 and without prejudice to the rights and obligations of the Parties, Article 1106(3), (4), (5) and (6) (Performance Requirements) shall apply to taxation measures. 6. Article 1110 (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 2104.6 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 after such referral, the investor may submit its claim to arbitration under Article 1120. Article 2104: Balance of Payments 1. Nothing in this Agreement shall prevent a Party from adopting or maintaining measures that restrict international transactions or related international transfers and payments ("transfers") where the Party experiences serious balance of payments difficulties, or the threat thereof, and such restrictions are: (a) consistent with paragraphs 4 through 8 when imposed on cross-border trade in financial services; or (b) consistent with paragraphs 2 through 6 when imposed on any other transaction or transfer. 2. Restrictions imposed on transactions or transfers other than cross-border trade in financial services shall: (a) when imposed on payments for current international transactions, be consistent with Article VIII(3) of the Articles of Agreement of the International Monetary Fund ("IMF"); (b) when imposed on international capital transactions, be consistent with Article VI of the Articles of Agreement of the IMF and imposed only in conjunction with measures imposed on current international transactions under paragraphs 2(a) and 4(a); and

(c) when imposed on transfers covered by Article 1109 (Investment - Transfers) and transfers related to trade in goods, be made in a freely usable currency at a market rate of exchange such that the payments and transfers are not substantially impeded. 3. No Party may adopt or maintain measures such as tariff surcharges, quotas or licenses under this Article. 4. As soon as practicable after imposing a restriction under this Article, the Party imposing the restriction shall: (a) submit any current account exchange restrictions to the IMF for review under Article VIII of the Articles of Agreement of the IMF; and (b) enter into good faith consultations with the IMF on economic adjustment measures to address the fundamental underlying economic problems causing the difficulties and receive endorsement of such measures by the IMF. 5. Each Party shall ensure that any measure that it adopts or maintains under this Article shall: (a) avoid unnecessary damage to the commercial, economic and 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 situation improves; (d) be consistent with any economic adjustment measures endorsed by the IMF under paragraph 4(b) and consistent with the Articles of Agreement of the IMF; and (e) be applied on a national treatment and most-favored-nation treatment basis. 6. A Party may adopt or maintain a measure under this Article that gives priority to services which are more essential to its economic program, provided that, except as specifically approved under an IMF-endorsed adjustment program in effect under paragraph 4, no such measure is imposed for the purpose of protecting a specific industry or sector. 7. A Party imposing a restriction on cross-border trade in financial services shall: (a) not impose more than one measure on any given transaction and its related transfer, except as specifically approved under an IMF-endorsed adjustment program; (b) promptly notify the other Parties; and

(c) consult promptly 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 and external financial difficulties of the Party, (ii) the external economic and trading environment of the Party, and (iii) alternative corrective measures that may be available. 8. In consultations under paragraph 7(c), the Parties shall:

(a) consider if measures adopted under this Article comply with paragraph 5, in particular subparagraph 5(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 and external financial situation of 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 laws protecting personal privacy. Article 2106: Cultural Industries Annex 2106 applies to cultural industries. Article 2107: Definitions For purposes of this Chapter: cultural industries means any person 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) radio communication 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; 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; and taxes and taxation measures do not include: (a) a "customs duty" as defined in Article 319; or (b) the measures listed in exceptions (b), (c), (d) and (e) of that definition. ======================================================================= ====== ANNEX 2103.4 Specific Taxation Measures 1. Article 2103(4)(a) (Taxation) shall apply to an asset tax under the Asset Tax Law ("Ley del Impuesto al Activo") of Mexico. 2. Article 2103(4)(a) and (b) shall not apply to 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 2104.6 Competent Authorities 1. The competent authority for Canada is the Assistant Deputy Minister for Tax Policy, Department of Finance.

2. The competent authority for Mexico is the Deputy Minister of Revenue of the Ministry of Finance and Public Credit. (Secretaria de Hacienda y Credito Publico) 3. The competent authority for the United States is the Assistant Secretary of the Treasury (Tax Policy), U.S. Department of the Treasury. ======================================================================= ====== ANNEX 2106 Cultural Industries Notwithstanding any other provision of this Agreement, as between the United States and Canada, 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 exclusively in accordance with the terms 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.

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, upon an exchange of written notifications certifying the completion of necessary legal procedures. Article 2204: 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 2205: 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 approval 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 2206: Authentic Texts

The English, French and Spanish texts of this Agreement are equally authentic.

Annex 401.1 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 apply to a particular heading, subheading, or tariff item is set out immediately adjacent to the heading, subheading, or tariff item; 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; a requirement of a change in tariff classification shall apply only to non-originating materials; the expression: heading means the first four digits in the tariff classification number under the Harmonized System; subheading means the first six digits in the tariff classification number under the Harmonized System; tariff item means the first eight digits in the tariff classification number under the Harmonized System as implemented by each Party. SPECIFIC RULES OF ORIGIN SECTION I Live Animals; Animal Products (Ch. 1-5) Chapter 1 01.01-01.06 Live Animals A change to headings 01.01 through 01.06 from any other chapter. Meat and Edible Meat Offal A change to headings 02.01 through 02.10 from any other chapter.

b)

c) d)

Chapter 2 02.01-02.10

Chapter 3 03.01-03.07

Fish and Crustaceans, Molluscs and Other Aquatic Invertebrates A change to headings 03.01 through 03.07 from any other chapter. Dairy Produce; Birds' Eggs; Natural Honey; Edible Products of Animal Origin, Not Elsewhere Specified or Included A change to headings 04.01 through 04.10 from any other chapter, except from Canadian tariff item 1901.90.31, U.S. tariff item 1901.90.31, 1901.90.41 or 1901.90.81, Mexican tariff item 1901.90.03. Products of Animal Origin, Not Elsewhere Specified or Included A change to headings 05.01 through 05.11 from any other chapter.

Chapter 4

04.01-04.10

Chapter 5 05.01-05.11

SECTION II Vegetable Products (Ch. 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 country not a Party to this Agreement. Chapter 6 06.01-06.04 Live Trees and Other Plants; Bulbs, Roots and the Like; Cut Flowers and Ornamental Foliage A change to headings 06.01 through 06.04 from any other chapter. Edible Vegetables and Certain Roots and Tubers A change to headings 07.01 through 07.14 from any other chapter. Edible Fruit and Nuts; Peel of Citrus Fruit or Melons A change to headings 08.01 through 08.14 from any other chapter. Coffee, Tea, Mat? and Spices A change to headings 09.01 through 09.10 from any other chapter.

Chapter 7 07.01-07.14

Chapter 8 08.01-08.14

Chapter 9 09.01-09.10

Chapter 10 10.01-10.08

Cereals A change to headings 10.01 through 10.08 from any other chapter. Products of the Milling Industry; Malt; Starches; Insulin; Wheat Gluten A change to headings 11.01 through 11.09 from any other chapter. Oil Seeds and Oleaginous Fruits; Miscellaneous Grains, Seeds and Fruit; Industrial or Medicinal Plants; Straw and Fodder A change to headings 12.01 through 12.14 from any other chapter. Lac; Gums, Resins and Other Vegetable Saps and Extracts A change to headings 13.01 through 13.02 from any other chapter. Vegetable Plaiting Materials; Vegetable Products Not Elsewhere Specified or Included A change to headings 14.01 through 14.04 from any other chapter.

Chapter 11 11.01-11.09

Chapter 12

12.01-12.14

Chapter 13 13.01-13.02 Chapter 14 14.01-14.04

SECTION III Animal or Vegetable Fats and Oils and Their Cleavage Products; Prepared Edible Fats; Animal or Vegetable Waxes (Ch. 15) Chapter 15 Animal or Vegetable Fats and Oils and Their Cleavage Products; Prepared Edible Fats; Animal or Vegetable Waxes A change to headings 15.01 through 15.18 from any other chapter. A change to subheadings 1519.11 through 1519.13 from any other heading, except from heading 15.20. A change to subheading 1519.19 from any other subheading. A change to subheading 1519.20 from any other heading, except from heading 15.20. A change to subheading 1520.10 from any other

15.01-15.18 1519.11-1519.13

1519.19 1519.20 1520.10

heading, except from heading 15.19. 1520.90 15.21-15.22 A change to subheading 1520.90 from any other subheading. A change to headings 15.21 through 15.22 from any other chapter.

SECTION IV Prepared Foodstuffs; Beverages, Spirits, and Vinegar; Tobacco and Manufactured Tobacco Substitutes (Ch. 16-24) Chapter 16 Preparations of Meat, of Fish or of Crustaceans, Molluscs or Other Aquatic Invertebrates A change to headings 16.01 through 16.05 from any other chapter. Sugars and Sugar Confectionery A change to headings 17.01 through 17.03 from any other chapter. A change to heading 17.04 from any other heading. Cocoa and Cocoa Preparations A change to headings 18.01 through 18.05 from any other chapter.

16.01-16.05

Chapter 17 17.01-17.03 17.04

Chapter 18 18.01-18.05 1806.10 1806.10.10

A change to Canadian tariff item 1806.10.10, U.S. tariff item 1806.10.41 or 1806.10.42, Mexican tariff item 1806.10.01 from any other heading. A change to subheading 1806.10 from any other heading, provided that the non-originating sugar of Chapter 17 constitutes no more than 35% by weight of the sugar and provided that the non-originating cocoa powder of heading 18.05 constitutes no more than 35% by weight of the cocoa powder. A change to subheading 1806.20 from any other heading. A change to subheading 1806.31 from any other subheading. A change to subheading 1806.32 from any other

1806.10

1806.20 1806.31 1806.32

heading. 1806.90 Chapter 19 1901.10 1901.10.31 A change to Canadian tariff item 1901.10.31, U.S. tariff item 1901.10.10, Mexican tariff item 1901.10.01 from any other chapter, except from Chapter 4. A change to subheading 1901.10 from any other chapter. A change to subheading 1806.90 from any other subheading. Preparations of Cereals, Flour, Starch or Milk; Pastrycooks' Products

1901.10 1901.20 1901.20.11

A change to Canadian tariff item 1901.20.11 or 1901.20.21, U.S. tariff item 1901.20.10, Mexican tariff item 1901.20.01 from any other chapter, except from Chapter 4. A change to subheading 1901.20 from any other

1901.20 chapter. 1901.90 1901.90.31

A change to Canadian tariff item 1901.90.31, U.S. tariff item 1901.90.31, 1901.90.41 or 1901.90.81, Mexican tariff item 1901.90.03 from any other chapter, except from Chapter 4. A change to subheading 1901.90 from any other chapter. A change to headings 19.02 through 19.05 from any other chapter. Preparations of Vegetables, Fruit, Nuts or Other Parts of Plants

1901.90 19.02-19.05 Chapter 20

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 in natural juices, or by roasting, either dry or in oil (including processing incidental to freezing, packing or roasting), shall be treated as a good of the country in which the fresh good was produced. 20.01-20.07 2008.11 A change to headings 20.01 through 20.07 from any other chapter.

2008.11.a1

A change to Canadian tariff item 2008.11.a1, U.S. tariff item 2008.11.h1, Mexican tariff item 2008.11.x1 from any other heading, except from heading 12.02. A change to subheading 2008.11 from any other chapter. A change to subheadings 2008.19 through 2008.99 from any other chapter. A change to subheadings 2009.11 through 2009.30 from any other chapter, except from heading 08.05. A change to subheadings 2009.40 through 2009.80 from any other chapter. A change to subheading 2009.90 from any other chapter; or A change to subheading 2009.90 from any other subheading within Chapter 20, whether or not there is also a change from any other chapter, provided that a single juice ingredient, or juice ingredients from a single non-Party, constitute in single strength form no more than 60% by volume of the product.

2008.11 2008.19-2008.99 2009.11-2009.30

2009.40-2009.80 2009.90

Chapter 21 21.01 2101.10.11

Miscellaneous Edible Preparations

A change to Canadian tariff item 2101.10.11, U.S. tariff item 2101.10.25, Mexican tariff item 2101.10.01 from any other chapter, provided that the nonoriginating coffee of Chapter 9 constitutes no more than 60 percent by weight. A change to heading 21.01 from any other chapter. A change to heading 21.02 from any other chapter. A change to subheading 2103.10 from any other chapter.

21.01 21.02 2103.10 2103.20 2103.20.10

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

2002.90. 2103.20 2103.30-2103.90 21.04 21.05 A change to subheading 2103.20 from any other chapter. A change to subheadings 2103.30 through 2103.90 from any other chapter. A change to heading 21.04 from any other chapter. 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 1901.90.31, 1901.90.41 or 1901.90.81, Mexican tariff item 1901.90.03. 2106.90.a2 A change to Canadian tariff item 2106.90.a2, U.S. tariff items 2106.90.16 through 2106.90.19A, Mexican tariff item 2106.90.x2 from any other chapter, except from heading 08.05 or 20.09 or Canadian tariff item 2202.90.a1 , U.S. tariff item 2202.90.30, 2202.90.35 or 2202.90.39A, Mexican tariff item 2202.90.x1. A change to Canadian tariff item 2106.90.a3, U.S. tariff item 2106.90.19B, Mexican tariff item 2106.90.x3 from any other chapter, except from subheading 2009.90 or Canadian tariff item 2202.90.a2, U.S. tariff item 2202.90.39B, Mexican tariff item 2202.90.x2; or A change to Canadian tariff item 2106.90.a3, U.S. tariff item 2106.90.19B, Mexican tariff item 2106.90.x3 from any other subheading within Chapter 21, 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% by volume of the product. 2106.90.a4 A change to Canadian tariff item 2106.90.a4, U.S. tariff item 2106.90.h4, Mexican tariff item 2106.90.x4 from any other chapter, except from Chapter 4 or tariff item 1901.90.a1. A change to heading 21.06 from any other chapter.

21.06

2106.90.a3

21.06

Chapter 22 22.01 2202.10 2202.90 2202.90.a1

Beverages, Spirits and Vinegar A change to heading 22.01 from any other chapter. A change to subheading 2202.10 from any other chapter. A change to Canadian tariff item 2202.90.a1, U.S. tariff items 2202.90.30 through 2202.90.39A, Mexican tariff item 2202.90.x4 from any other chapter, except from heading 08.05 or 20.09 or Canadian tariff item 2106.90.a2, U.S. tariff item 2106.90.16 or 2106.90.19A, Mexican tariff item 2106.90.x2. A change to Canadian tariff item 2202.90.a2, U.S. tariff item 2202.90.39B, Mexican tariff item 2202.90.x2 from any other chapter, except from subheading 2009.90 or Canadian tariff item 2106.90.a3, U.S. tariff item 2106.90.19B, Mexican tariff item 2106.90.x3; or A change to Canadian tariff item 2202.90.a2, U.S. tariff item 2202.90.39B, Mexican tariff item 2202.90.x2 from any other subheading within Chapter 22, 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% by volume of the product.

2202.90.a2

2202.90.9x

A change to Canadian tariff item 2202.90.9x, U.S. tariff item 2202.90.10 or 2202.90.20, Mexican tariff item 2202.90.02 from any other chapter, except from Chapter 4 or Canadian tariff item 1901.90.31, U.S. tariff item 1901.90.31, 1901.90.41 or 1901.90.81, Mexican tariff item 1901.90.03. A change to subheading 2202.90 from any other chapter. A change to headings 22.03 through 22.09 from any other heading outside that group. Residues and Waste From the Food Industries; Prepared Animal Fodder

2202.90 22.03-22.09

Chapter 23

23.01-23.08 2309.10 2309.90 2309.90.a1

A change to headings 23.01 through 23.08 from any other chapter. A change to subheading 2309.10 from any other heading.

A change to Canadian tariff item 2309.90.a1, U.S. tariff item 2309.90.h1, Mexican tariff item 2309.90.x1 from any other heading, except from Chapter 4 or tariff item 1901.90.a1. A change to subheading 2309.90 from any other heading. Tobacco and Manufactured Tobacco Substitutes A change to headings 24.01 through 24.03 from any other chapter or from Canadian tariff item 2401.10.10 or 2403.91.a1, U.S. tariff item 2401.10.h1 or 2403.91.20, Mexican tariff item 2401.10.x1 or 2403.91.x1.

2309.90

Chapter 24 24.01-24.03

SECTION V Mineral Products (Ch. 25-27) Chapter 25 25.01-25.30 Salt; Sulphur; Earths and Stone; Plastering Materials, Lime and Cement A change to headings 25.01 through 25.30 from any other chapter.

Chapter 26 26.01-26.21

Ores, Slag and Ash A change to headings 26.01 through 26.21 from any other chapter.

Chapter 27

Mineral Fuels, Mineral Oils and Products of Their Distillation; Bituminous Substances; Mineral Waxes A change to headings 27.01 through 27.03 from any other chapter. A change to heading 27.04 from any other heading.

27.01-27.03 27.04

27.05-27.09 27.10-27.15

A change to headings 27.05 through 27.09 from any other chapter. A change to headings 27.10 through 27.15 from any other heading outside that group. A change to heading 27.16 from any other heading.

27.16

SECTION VI Products of the Chemical or Allied Industries (Ch. 28-38) Chapter 28 Inorganic Chemicals; Organic or Inorganic Compounds of Precious Metals, of RareEarth Metals, of Radioactive Elements or of Isotopes A change to subheadings 2801.10 through 2824.90 from any other chapter, except from Chapters 28 through 38; or A change to subheadings 2801.10 through 2824.90 from any other subheading within Chapters 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) b) used. 2825.10-2825.60 A change to subheadings 2825.10 through 2825.60 from any other chapter, except from Chapters 28 through 38; or A change to subheadings 2825.10 through 2825.60 from any other subheading within Chapters 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) b) 2825.70 2825.80-2825.90 60% where the transaction value method is used, or 50% where the net cost method is used. 60% where the transaction value method is used, or 50% where the net cost method is

28.01-28.24

A change to subheading 2825.70 from any other subheading, except from subheading 2613.10. A change to subheadings 2825.80 through

2825.90 from any chapter, except from Chapters 28 through 38; or A change to subheadings 2825.80 through 2825.90 from any other subheading within Chapters 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 must be not less than: a) b) 28.26-28.29 60% where the transaction value method is used, or 50% where the net cost method is used.

A change to subheadings 2826.11 through 2829.90 from any other chapter, except from Chapters 28 through 38; or A change to subheadings 2826.11 through 2829.90 from any other subheading within Chapters 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) b) 60% where the transaction value method is used, or 50% where the net cost method is used.

2830.10-2830.30

A change to subheadings 2830.10 through 2830.30 from any other chapter, except from Chapters 28 through 38; or A change to subheadings 2830.10 through 2830.30 from any other subheading within Chapters 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) b) 60% where the transaction value method is used, or 50% where the net cost method is used.

2830.90 28.31-28.40

A change to subheading 2830.90 from any other subheading, except from subheading 2613.90. A change to subheadings 2831.10 through 2840.30 from any other chapter, except from Chapters 28 through 38; or

A change to subheadings 2831.10 through 2840.30 from any other subheading within Chapters 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) b) 2841.10-2841.60 60% where the transaction value method is used, or 50% where the net cost method is used.

A change to subheadings 2841.10 through 2841.60 from any other chapter, except from Chapters 28 through 38; or A change to subheadings 2841.10 through 2841.60 from any other subheading within Chapters 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) b) 60% where the transaction value method is used, or 50% where the net cost method is used.

2841.70 2841.80-2841.90

A change to subheading 2841.70 from any other subheading, except from subheading 2613.10. A change to subheadings 2841.80 through 2841.90 from any other chapter, except from Chapters 28 through 38; or A change to subheadings 2841.80 through 2841.90 from any other subheading within Chapters 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) b) 60% where the transaction value method is used, or 50% where the net cost method is used.

28.42-28.51

A change to subheadings 2842.10 through 2851.00 from any other chapter, except from Chapters 28 through 38; or A change to subheadings 2842.10 through 2851.00 from any other subheading within Chapters 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) b) 60% where the transaction value method is used, or 50% where the net cost method is used.

Chapter 29 29.01-29.42

Organic Chemicals A change to subheadings 2901.10 through 2942.00 from any other chapter, except from Chapters 28 through 38; or A change to subheadings 2901.10 through 2942.00 from any other subheading within Chapters 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) b) 60% where the transaction value method is used, or 50% where the net cost method is used.

Chapter 30 30.01

Pharmaceutical Products A change to subheadings 3001.10 through 3001.90 from any other heading; or A change to subheadings 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) b) 60% where the transaction value method is used, or 50% where the net cost method is used.

30.02

A change to subheadings 3002.10 through 3002.90 from any other heading; or A change to subheadings 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) b) 30.03

60% where the transaction value method is used, or 50% where the net cost method is used.

A change to subheadings 3003.10 through 3003.90 from any other heading; or A change to subheadings 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) b) 60% where the transaction value method is used, or 50% where the net cost method is used.

30.04

A change to subheadings 3004.10 through 3004.90 from any other heading, except from heading 30.03; or A change to subheadings 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) b) 60% where the transaction value method is used, or 50% where the net cost method is used.

30.05

A change to subheadings 3005.10 through 3005.90 from any other heading; or A change to subheadings 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) b) 60% where the transaction value method is used, or 50% where the net cost method is used.

30.06

A change to subheadings 3006.10 through 3006.60 from any other heading; or A change to subheadings 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) b)

60% where the transaction value method is used, or 50% where the net cost method is used.

Chapter 31 31.01-31.05

Fertilisers A change to subheadings 3101.00 through 3105.90 from any other chapter; or A change to subheadings 3101.00 through 3105.90 from any other subheading within Chapter 31, whether or not there is also a change from any other chapter, provided there is a regional value content of not less than: a) b) 60% where the transaction value method is used, or 50% 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 A change to subheadings 3201.10 through 3203.00 from any other chapter, except from Chapters 28 through 38; or A change to subheadings 3201.10 through 3203.00 from any other subheading within Chapters 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) b) 60% where the transaction value method is used, or 50% where the net cost method is used.

32.01-32.03

3204.11-3204.16

A change to subheadings 3204.11 through 3204.16 from any other chapter, except from Chapters 28 through 38; or A change to subheadings 3204.11 through 3204.16 from any other subheading within Chapters 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) b) 3204.17

60% where the transaction value method is used, or 50% where the net cost method is used.

For any colour, as defined under the Colour Index, identified in the List of Colours below, a change to subheading 3204.17 from any other subheading. List of Colours pigment yellow: 1, 3, 16, 55, 61, 62, 73, 74, 75, 81, 97, 120, 151, 152, 154, 156, and 175 pigment orange: 4, 5, 13, 34, 36, 60, 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

65,

and

For any colour, as defined under the Colour Index, not identified in the List of Colours above: 1) a change to subheading 3204.17 from any other subheading, except from Chapter 29; or 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: a) b) 3204.19-3204.90 60% where the transaction value method is used, or 50% where the net cost method is used.

2)

A change to subheadings 3204.19 through 3204.90 from any other chapter, except from Chapters 28 through 38; or A change to subheadings 3204.19 through 3204.90 from any other subheading within

Chapters 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) b) 32.05 32.06-32.07 60% where the transaction value method is used, or 50% where the net cost method is used.

A change to heading 32.05 from any other heading. A change to subheadings 3206.10 through 3207.40 from any other chapter, except from Chapters 28 through 38; or A change to subheadings 3206.10 through 3207.40 from any other subheading within Chapters 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) b) 60% where the transaction value method is used, or 50% where the net cost method is used.

32.08-32.10

A change to headings 32.08 through 32.10 from any other heading outside that group. A change to headings 32.11 through 32.12 from any other heading outside that group. A change to headings 32.13 through 32.15 from any other heading outside that group, except from headings 32.08 through 32.10. Essential Oils and Resinoids; Perfumery, Cosmetics or Toilet Preparations A change to subheadings 3301.11 through 3301.90 from any other chapter; or A change to subheadings 3301.11 through 3301.90 from any other subheading 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:

32.11-32.12

32.13-32.15

Chapter 33 33.01

a) b) 33.02

60% where the transaction value method is used, or 50% where the net cost method is used.

A change to heading 33.02 from any other heading, except from headings 22.07 through 22.08. 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) b) 60% where the transaction value method is used, or 50% where the net cost method is used.

33.03

33.04-33.07

A change to subheadings 3304.10 through 3307.90 from any other heading outside that group; or A change to subheadings 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) b) 60% where the transaction value method is used, or 50% 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 A change to subheadings 3401.11 through 3401.20 from any other heading; or A change to subheadings 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:

34.01

a) b) 3402.11-3402.19

65% where the transaction value method is used, or 50% where the net cost method is used.

A change to subheadings 3402.11 through 3402.19 from any other heading; or A change to subheadings 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) b) 65% where the transaction value method is used, or 50% where the net cost method is used.

3402.20-3402.90

A change to subheadings 3402.20 through 3402.90 from any other subheading outside that group; or A change to subheadings 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) b) 65% where the transaction value method is used, or 50% where the net cost method is used.

34.03

A change to subheadings 3403.11 through 3403.99 from any other heading; or A change to subheadings 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) b) 65% where the transaction value method is used, or 50% where the net cost method is used.

34.04

A change to subheadings 3404.10 through 3404.90 from any other heading; or A change to subheadings 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) b) 34.05 65% where the transaction value method is used, or 50% where the net cost method is used.

A change to subheadings 3405.10 through 3405.90 from any other heading; or A change to subheadings 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) b) 65% where the transaction value method is used, or 50% where the net cost method is used.

34.06-34.07

A change to headings 34.06 through 34.07 from any other heading, including another heading within that group. Albuminoidal Substances; Modified Starches; Glues; Enzymes A change to subheadings 3501.10 through 3501.90 from any other heading; or A change to subheadings 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) b) 65% where the transaction value method is used, or 50% where the net cost method is used.

Chapter 35 35.01

35.02

A change to subheadings 3502.10 through 3502.90 from any other heading; or A change to subheadings 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) b) 65% where the transaction value method is used, or 50% where the net cost method is used.

35.03-35.04

A change to headings 35.03 through 35.04 from any other heading, including another heading within that group. A change to subheadings 3505.10 through 3505.20 from any other heading; or A change to subheadings 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) b) 65% where the transaction value method is used, or 50% where the net cost method is used.

35.05

35.06

A change to subheadings 3506.10 through 3506.99 from any other heading; or A change to subheadings 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) b) 65% where the transaction value method is used, or 50% where the net cost method is used.

35.07

A change to subheadings 3507.10 through 3507.90 from any other heading; or A change to subheadings 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) b) 65% where the transaction value method is used, or 50% where the net cost method is used.

Chapter 36

Explosives; Pyrotechnic Products; Matches; Pyrophoric Alloys; Certain Combustible Preparations A change to headings 36.01 through 36.03 from any other heading, including another heading within that group. A change to subheadings 3604.10 through

36.01-36.03

36.04

3604.90 from any other heading; or A change to subheadings 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) b) 36.05 36.06 65% where the transaction value method is used, or 50% where the net cost method is used.

A change to heading 36.05 from any other heading. A change to subheadings 3606.10 through 3606.90 from any other heading; or A change to subheadings 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) b) 65% where the transaction value method is used, or 50% where the net cost method is used.

Chapter 37 37.01-37.03 37.04 37.05-37.06

Photographic or Cinematographic Goods A change to headings 37.01 through 37.03 from any other chapter. A change to heading 37.04 from any other heading. A change to headings 37.05 through 37.06 from any other heading outside that group. A change to subheadings 3707.10 through 3707.90 from any other chapter; or A change to subheadings 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) b) 65% where the transaction value method is used, or 50% where the net cost method is

37.07

used. Chapter 38 38.01-38.07 Miscellaneous Chemical Products A change to subheadings 3801.10 through 3807.00 from any other chapter, except from Chapters 28 through 38; or A change to subheadings 3801.10 through 3807.00 from any other subheading within Chapters 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) b) 38.08 Note: 60% where the transaction value method is used, or 50% where the net cost method is used.

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 rates provided for most-favoured-nations; or the good is exported to the territory of the United States of America and such material would, if imported into the territory of the United States of America, be free of duty under a trade agreement that is not subject to a competitive need limitation.

b)

A change to heading 38.08 from any other heading, provided there is a regional value content of not less than: a) 60% where the transaction value method is used, or 80% where the transaction value method is used and the goods contain more than one active ingredient; or 50% where the net cost method is used, or 70% where the net cost method is used and the goods contain more than one active ingredient.

b)

38.09-38.23

A change to subheadings 3809.10 through 3823.90 from any other chapter, except from Chapters 28 through 38; or A change to subheadings 3809.10 through 3823.90 from any other subheading within Chapters 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) b) 60% where the transaction value method is used, or 50% where the net cost method is used.

SECTION VII Plastics and Articles Thereof; Rubber and Articles Thereof (Ch. 39-40) Chapter 39 39.01-39.20 Plastics and Articles Thereof A change to headings 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) b) 3921.11-3921.13 60% where the transaction value method is used, or 50% where the net cost method is used.

A change to subheadings 3921.11 through 3921.13 from any other heading, provided there is a regional value content of not less than: a) b) 60% where the transaction value method is used, or 50% 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) b) 60% where the transaction value method is used, or 50% 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) b) 60% where the transaction value method is used, or 50% 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) b) 60% where the transaction value method is used; or 50% 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) b) 60% where the transaction value method is used, or 50% where the net cost method is used.

3923.10-3923.21

A change to subheadings 3923.10 through 3923.21 from any other heading, provided there is a regional value content of not less than: a) b) 60% where the transaction value method is used, or 50% 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) b) 60% where the transaction value method is used; or 50% where the net cost method is used.

3923.30-3923.90

A change to subheadings 3923.30 through 3923.90 from any other heading, provided there is a regional value content of not less than: a) b) 60% where the transaction value method is used, or 50% where the net cost method is used.

39.24-39.26

A change to headings 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) b) 60% where the transaction value method is used, or 50% where the net cost method is used.

Chapter 40 40.01-40.06

Rubber and Articles Thereof A change to headings 40.01 through 40.06 from any other chapter; or A change to headings 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) b) 60% where the transaction value method is used, or 50% where the net cost method is us

40.07-40.08

A change to headings 40.07 through 40.08 from any other heading outside that group. A change to subheadings 4009.10 through 4009.40 from any other heading, except from headings 40.10 through 40.17. A change to tubes, pipes or hoses of subheading 4009.50, of a kind used for motor vehicles of heading 87.02 for the transport of 15 or fewer persons, motor cars or other motor vehicles of heading 87.03, motor vehicles of subheading 8704.21 or 8704.31 or motorcycles of heading 87.11, from any other heading, except from headings 40.10 through 40.17; or A change to tubes, pipes or hoses of subheading 4009.50, of a kind used for motor vehicles of heading 87.02 for the transport of 15 or fewer persons, motor cars or other motor vehicles of heading 87.03, motor vehicles of subheading 8704.21 or 8704.31 or motorcycles of heading 87.11, from subheadings 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:

4009.10-4009.40

4009.50

a) b)

60% where the transaction method is used, or 50% 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 used for motor vehicles of heading 87.02 for the transport of 15 or fewer persons, motor cars or other motor vehicles of heading 87.03, motor vehicles of subheading 8704.21 or 8704.31 or motorcycles of heading 87.11 from any other heading, except from headings 40.10 through 40.17 40.10-40.11 A change to headings 40.10 through 40.11 from any other heading, except from headings 40.09 through 40.17. A change to subheading, 4012.20.20, 4012.20.18, subheading 4012.10 from any other except from Canadian tariff item U.S. tariff item 4012.20.15 or Mexican tariff item 4012.20.01.

4012.10

4012.20-4012.90

A change to subheadings 4012.20 through 4012.90 from any other heading, except from headings 40.09 through 40.17. A change to headings 40.13 through 40.15 from any other heading, except from headings 40.09 through 40.17. A change to subheadings 4016.10 through 4016.92 from any other heading, except from headings 40.09 through 40.17.

40.13-40.15

4016.10-4016.92

4016.93 4016.93.10 A change to Canadian tariff item 4016.93.10, U.S. tariff item 4016.93.10, 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 4008.19.05 or 4008.29.10, Mexican tariff item 4008.19.01 or 4008.29.01. A change to subheading 4016.93 from any other heading, except from headings 40.09 through 40.17. A change to subheadings 4016.94 through 4016.95 from any other heading, except from headings 40.09 through 40.17.

4016.93

4016.94-4016.95

4016.99 4016.99.a1 A change to Canadian tariff item 4016.99.a1, U.S. tariff item 4016.99.h1, Mexican tariff item 4016.99.x1 from any other subheading, provided there is a regional value content of not less than 50% under the net cost method. A change to subheading 4016.99 from any other heading, except from headings 40.09 through 40.17. A change to heading 40.17 from any other heading, except from headings 40.09 through 40.16.

4016.99

40.17

SECTION VIII Raw Hides and Skins, Leather, Furskins and Articles Thereof; Saddlery and Harness; Travel Goods, Handbags, and Similar Containers; Articles of Animal Gut (Other Than Silkworm Gut) (Ch.41-43) Chapter 41 41.01-41.03 41.04 Raw Hides and Skins (Other Than Furskins) and Leather A change to headings 41.01 through 41.03 from any other chapter. A change to heading 41.04 from any other heading, except from headings 41.05 through 41.11. A change to heading 41.05 from Canadian tariff item 4105.19.10, U.S. tariff item 4105.19.10, Mexican tariff item 4105.19.01, headings 41.01 through 41.03 or any other chapter. A change to heading 41.06 from Canadian tariff item 4106.19.10, U.S. tariff item 4106.19.10, Mexican tariff item 4106.19.01, headings 41.01 through 41.03 or any other chapter. A change to heading 41.07 from Canadian tariff item 4107.10.10, U.S. tariff item 4107.10.10, Mexican tariff item 4107.10.02, headings 41.01 through 41.03 or any other chapter. A change to headings 41.08 through 41.11 from any other heading, except from headings 41.04 through 41.11.

41.05

41.06

41.07

41.08-41.11

Chapter 42

Articles of Leather; Saddlery and Harness; Travel Goods, Handbags and Similar Containers; Articles of Animal Gut (Other Than Silk-Worm Gut) A change to heading 42.01 from any other chapter. A change to subheading 4202.11 from any other chapter. A change to subheading 4202.12 from any other chapter, except from headings 54.07, 54.08 or 55.12 through 55.16. A change to subheadings 4202.19 through 4202.21 from any other chapter. A change to subheading 4202.22 from any other chapter, except from headings 54.07, 54.08 or 55.12 through 55.16. A change to subheadings 4202.29 through 4202.31 from any other chapter. A change to subheading 4202.32 from any other chapter, except from headings 54.07, 54.08 or 55.12 through 55.16. A change to subheadings 4202.39 through 4202.91 from any other chapter. A change to subheading 4202.92 from any other chapter, except from headings 54.07, 54.08 or 55.12 through 55.16. A change to subheading 4202.99 from any other chapter. A change to headings 42.03 through 42.06 from any other chapter. Furskins and Artificial Fur; Manufactures Thereof A change to heading 43.01 from any other chapter. A change to heading 43.02 from any other heading. A change to headings 43.03 through 43.04 from any other heading outside that group.

42.01 4202.11 4202.12

4202.19-4202.21 4202.22

4202.29-4202.31 4202.32

4202.39-4202.91 4202.92

4202.99 42.03-42.06

Chapter 43 43.01 43.02 43.03-43.04

SECTION IX Wood and Articles of Wood; Wood Charcoal; Cork and Articles of Cork; Manufactures of Straw, of Esparto or of Other Plaiting Materials; Basketware and Wickerwork (Ch. 44-46) Chapter 44 44.01-44.21 Wood and Articles of Wood; Wood Charcoal A change to headings 44.01 through 44.21 from any other heading, including another heading within that group. Cork and Articles of Cork A change to headings 45.01 through 45.02 from any other chapter. A change to headings 45.03 through 45.04 from any other heading outside that group. Manufactures of Straw, of Esparto or of Other Plaiting Materials; Basketware and Wickerwork A change to heading 46.01 from any other chapter. A change to heading 46.02 from any other heading.

Chapter 45 45.01-45.02 45.03-45.04

Chapter 46

46.01 46.02

SECTION X Pulp of Wood or of other Fibrous Cellulosic Material; Waste and Scrap of Paper or Paperboard; Paper and Paperboard and Articles Thereof (Ch. 47-49) Chapter 47 Pulp of Wood or of Other Fibrous Cellulosic Material; Waste and Scrap of Paper or Paperboard A change to headings 47.01 through 47.07 from any other chapter. Paper and Paperboard; Articles of Paper Pulp, of Paper or of Paperboard A change to headings 48.01 through 48.07 from any other chapter. A change to headings 48.08 through 48.09 from any other heading outside that group.

47.01-47.07

Chapter 48 48.01-48.07 48.08-48.09

48.10-48.13 48.14-48.15

A change to headings 48.10 through 48.13 from any other chapter. A change to headings 48.14 through 48.15 from any other heading outside that group. A change to heading 48.16 from any other heading, except from heading 48.09. A change to headings 48.17 through 48.23 from any other heading outside that group. Printed Books, Newspapers, Pictures and Other Products of the Printing Industry; Manuscripts, Typescripts and Plans A change to headings 49.01 through 49.11 from any other chapter.

48.16 48.17-48.23

Chapter 49

49.01-49.11

SECTION XI Textiles and Textile Articles (Ch. 50-63) Note: For purposes of the textiles provisions, the term "wholly" is interpreted to mean that the product is made entirely or solely of the named material. Silk A change to headings 50.01 through 50.03 from any other chapter. A change to headings 50.04 through 50.06 from any other heading outside that group. A change to heading 50.07 from any other heading. Wool, Fine or Coarse Animal Hair; Horsehair Yarn and Woven Fabric A change to headings 51.01 through 51.05 from any other chapter. A change to headings 51.06 through 51.10 from any other heading outside that group.

Chapter 50 50.01-50.03 50.04-50.06

50.07

Chapter 51 51.01-51.05 51.06-51.10

51.11-51.13

A change to headings 51.11 through 51.13 from any other heading outside that group, except from headings 51.06 through 51.10, 52.05 through 52.06, 54.01 through 54.04, or 55.09 through 55.10. Cotton A change to headings 52.01 through 52.07 from any other chapter, except from headings 54.01 through 54.05 or 55.01 through 55.07. A change to headings 52.08 through 52.12 from any other heading outside that group, except from headings 51.06 through 51.10, 52.05 through 52.06, 54.01 through 54.04, or 55.09 through 55.10. Other Vegetable Textile Fibres; Paper Yarn and Woven Fabrics of Paper Yarn A change to headings 53.01 through 53.05 from any other chapter. A change to headings 53.06 through 53.08 from any other heading outside that group. A change to heading 53.09 from any other heading, except from headings 53.07 through 53.08. A change to headings 53.10 through 53.11 from any other heading outside that group, except from headings 53.07 through 53.08. Man-Made Filaments A change to headings 54.01 through 54.06 from any other chapter, except from headings 52.01 through 52.03 or 55.01 through 55.07. A change to Canadian tariff item 5407.60.10, U.S. tariff item 5407.60.22, Mexican tariff item 5407.60.02 from any other chapter or from Canadian tariff item 5402.43.10 or 5402.52.10, U.S. tariff item 5402.43.10 or 5402.52.10, Mexican tariff item 5402.43.01 or 5402.52.02, except from headings 51.06

Chapter 52 52.01-52.07

52.08-52.12

Chapter 53 53.01-53.05 53.06-53.08

53.09

53.10-53.11

Chapter 54 54.01-54.06

54.07 5407.60.10

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 headings 51.06 through 51.10, 52.05 through 52.06 or 55.09 through 55.10. A change to heading 54.08 from any other chapter, except from headings 51.06 through 51.10, 52.05 through 52.06 or 55.09 through 55.10. Man-Made Staple Fibres A change to headings 55.01 through 55.11 from any other chapter, except from headings 52.01 through 52.03 or 54.01 through 54.05. A change to headings 55.12 through 55.16 from any other heading outside that group, except from headings 51.06 through 51.10, 52.05 through 52.06, 54.01 through 54.04 or 55.09 through 55.10. Wadding, Felt and Nonwovens; Special Yarns; Twine; Cordage, Ropes and Cables and Articles Thereof A change to headings 56.01 through 56.09 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, or Chapters 54 through 55. Carpets and Other Textile Floor Coverings A change to headings 57.01 through 57.05 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.08, 53.11, 55.08 through 55.16, or Chapter 54. Special Woven Fabrics; Tufted Textile Fabrics; Lace; Tapestries; Trimmings; Embroidery A change to headings 58.01 through 58.11 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, or Chapters 54 through 55.

54.08

Chapter 55 55.01-55.11

55.12-55.16

Chapter 56

56.01-56.09

Chapter 57 57.01-57.05

Chapter 58

58.01-58.11

Chapter 59

Impregnated, Coated, Covered or Laminated Textile Fabrics; Textile Articles of a Kind Suitable For Industrial Use A change to heading 59.01 from any other chapter, except from headings 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. A change to heading 59.02 from any other heading, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.06 through 53.11, or Chapters 54 through 55. A change to headings 59.03 through 59.08 from any other chapter, except from headings 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. A change to heading 59.09 from any other chapter, except from headings 51.11 through 51.13, 52.08 through 52.12, 53.10 through 53.11, 55.12 through 55.16, or Chapter 54. A change to heading 59.10 from any other heading, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, or Chapters 54 through 55. A change to heading 59.11 from any other chapter, except from headings 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. Knitted or Crocheted Fabrics A change to headings 60.01 through 60.02 from any other chapter, except from headings 51.06 through 51.13, 53.07 through 53.08, 53.10 through 53.11, or Chapters 52, 54 through 55. 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:

59.01

59.02

59.03-59.08

59.09

59.10

59.11

Chapter 60 60.01-60.02

Chapter 61

51.11-51.12, 5208.31-5208.59, 5209.31-5209.59, 5210.31-5210.59, 5211.31-5211.59, 5212.13-5212.15, 5212.23-5212.25, 5407.42-5407.44, 5407.52-5407.54, 5407.60, 5407.72-5407.74, 5407.82-5407.84, 5407.92-5407.94, 5408.22-5408.24 (excluding Canadian tariff item 5408.22.10, 5408.23.10 or 5408.24.10, U.S. tariff item 5408.22.h1, 5408.23.h1 or 5408.24.h1, Mexican tariff item 5408.22.x1, 5408.23.x1 or 5408.24.x1), 5408.32-5408.34, 5512.19, 5512.29, 5512.99, 5513.21-5513.49, 5514.21-5515.99, 5516.12-5516.14, 5516.22-5516.24, 5516.32-5516.34, 5516.42-5516.44, 5516.92-5516.94, 6001.10, 6001.92, 6002.43, or 6002.91-6002.93, from any other heading outside that group. Note 2: Apparel products of this Chapter shall be considered to originate in the territory of a Party if they are both cut and sewn or otherwise assembled in the territory of one or more of the Parties and if the outer shell, exclusive of collars or cuffs, is wholly of fabrics of Canadian tariff item 6002.92.a1, U.S. tariff item 6002.92.10, Mexican tariff item 6002.92.01. For the purpose of determining the origin of a good of this Chapter, the rule applicable to that good shall only apply to the fabric which imparts to the good its essential character and such fabric 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, 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. A change to subheadings 6101.10 through 6101.30 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 60.01 through 60.02, or Chapter 54; provided the goods are both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the Parties, and visible lining fabrics listed in Note 1 satisfy the tariff change requirements provided therein.

Note 3:

6101.10-6101.30

6101.90

A change to subheading 6101.90 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 60.01 through 60.02, or Chapter 54; provided the goods are both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the Parties. A change to subheadings 6102.10 through 6102.30 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 60.01 through 60.02, or Chapter 54; provided the goods are both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the Parties, and visible lining fabrics listed in Note 1 satisfy the tariff change requirements provided therein. A change to subheading 6102.90 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 60.01 through 60.02, or Chapter 54; provided the goods are both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the Parties. A change to subheadings 6103.11 through 6103.12 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 60.01 through 60.02, or Chapter 54; provided the goods are both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the Parties, and visible lining fabrics listed in Note 1 satisfy the tariff change requirements provided therein.

6102.10-6102.30

6102.90

6103.11-6103.12

6103.19 6103.19.90 A change to Canadian tariff item 6103.19.90, U.S. tariff item 6103.19.40, Mexican tariff item 6103.19.02 or 6103.19.99 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 60.01 through 60.02, or Chapter 54; provided the goods are 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 headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 60.01 through 60.02, or Chapter 54; provided the goods are both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the Parties, and visible lining fabrics listed in Note 1 satisfy the tariff change requirements provided therein. A change to subheadings 6103.21 through 6103.29 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 60.01 through 60.02, or Chapter 54; provided the goods are both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the Parties and, with the additional requirement that garments described in heading 61.01 or jackets or blazers described in heading 61.03, of wool, fine animal hair, cotton or man-made fibres, imported as part of the ensembles of these subheadings, the visible lining fabrics listed in Note 1 satisfy the tariff change requirements provided therein. A change to subheadings 6103.31 through 6103.33 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 60.01 through 60.02, or Chapter 54; provided the goods are both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the Parties, and visible lining fabrics listed in Note 1 satisfy the tariff change requirements provided therein.

6103.21-6103.29

6103.31-6103.33

6103.39 6103.39.90 A change to Canadian tariff item 6103.39.90, U.S. tariff item 6103.39.20, Mexican tariff item 6103.39.02 or 6103.39.99 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 60.01 through 60.02, or Chapter 54; provided the goods are 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 headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 60.01 through 60.02, or Chapter 54; provided the goods are both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the Parties, and visible lining fabrics listed in Note 1 satisfy the tariff change requirements provided therein. A change to subheadings 6103.41 through 6103.49 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 60.01 through 60.02, or Chapter 54; provided the goods are both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the Parties. A change to subheadings 6104.11 through 6104.13 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 60.01 through 60.02, or Chapter 54; provided the goods are both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the Parties, and visible lining fabrics listed in Note 1 satisfy the tariff change requirements provided therein.

6103.41-6103.49

6104.11-6104.13

6104.19 6104.19.90 A change to Canadian tariff item 6104.19.90, U.S. tariff item 6104.19.20, Mexican tariff item 6104.19.02 or 6104.19.99 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 60.01 through 60.02, or Chapter 54; provided the goods are both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the Parties. A change to subheading 6104.19 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 60.01 through 60.02, or Chapter 54; provided the goods are both cut (or knit to

6104.19

shape) and sewn or otherwise assembled in the territory of one or more of the Parties, and visible lining fabrics listed in Note 1 satisfy the tariff change requirements provided therein. 6104.21-6104.29 A change to subheadings 6104.21 through 6104.29 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 60.01 through 60.02, or Chapter 54; provided the goods are both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the Parties and, with the additional requirement that garments described in heading 61.02, jackets or blazers described in heading 61.04, or skirts described in heading 61.04, of wool, fine animal hair, cotton or man-made fibres, imported as part of the ensembles of these subheadings, the visible lining fabrics listed in Note 1 satisfy the tariff change requirements provided therein. A change to subheadings 6104.31 through 6104.33 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 60.01 through 60.02, or Chapter 54; provided the goods are both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the Parties, and visible lining fabrics listed in Note 1 satisfy the tariff change requirements provided therein.

6104.31-6104.33

6104.39 6104.39.90 A change to Canadian tariff item 6104.39.90, U.S. tariff item 6104.39.20, Mexican tariff item 6104.39.02 or 6104.39.99 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 60.01 through 60.02, or Chapter 54; provided the goods are both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the Parties. A change to subheading 6104.39 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through

6104.39

55.16, 60.01 through 60.02, or Chapter 54; provided the goods are both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the Parties, and visible lining fabrics listed in Note 1 satisfy the tariff change requirements provided therein. 6104.41-6104.49 A change to subheadings 6104.41 through 6104.49 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 60.01 through 60.02, or Chapter 54; provided the goods are both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the Parties. A change to subheadings 6104.51 through 6104.53 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 60.01 through 60.02, or Chapter 54; provided the goods are both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the Parties, and visible lining fabrics listed in Note 1 satisfy the tariff change requirements provided therein.

6104.51-6104.53

6104.59 6104.59.90 A change to Canadian tariff item 6104.59.90, U.S. tariff item 6104.59.20, Mexican tariff item 6104.59.02 or 6104.59.99 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 60.01 through 60.02, or Chapter 54; provided the goods are both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the Parties. A change to subheading 6104.59 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 60.01 through 60.02, or Chapter 54; provided the goods are both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the Parties, and visible lining fabrics listed in Note 1 satisfy the tariff change requirements provided therein.

6104.59

6104.61-6104.69

A change to subheadings 6104.61 through 6104.69 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 60.01 through 60.02, or Chapter 54; provided the goods are both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the Parties. A change to headings 61.05 through 61.17 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 60.01 through 60.02, or Chapter 54; provided the goods are both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the Parties.

61.05-61.17

Chapter 62 Crocheted Note 1:

Articles of Apparel and Clothing Accessories, Not Knitted or

A change to any of the following headings or subheadings for visible lining fabrics: 51.11-51.12, 5208.31-5208.59, 5209.31-5209.59, 5210.31-5210.59, 5211.31-5211.59, 5212.13-5212.15, 5212.23-5212.25, 5407.42-5407.44, 5407.52-5407.54, 5407.60, 5407.72-5407.74, 5407.82-5407.84, 5407.92-5407.94, 5408.22-5408.24 (excluding Canadian tariff item 5408.22.10, 5408.23.10 or 5408.24.10, U.S. tariff item 5408.22.h1, 5408.23.h1 or 5408.24.h1, Mexican tariff item 5408.22.x1, 5408.23.x1 or 5408.24.x1), 5408.32-5408.34, 5512.19, 5512.29, 5512.99, 5513.21-5513.49, 5514.21-5515.99, 5516.12-5516.14, 5516.22-5516.24, 5516.32-5516.34, 5516.42-5516.44, 5516.92-5516.94, 6001.10, 6001.92, 6002.43, or 6002.91-6002.93, from any other heading outside that group.

Note 2:

Apparel products 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 outer shell, exclusive of collars or cuffs, is wholly of one or more of the following fabrics: (i) Velveteen fabrics of subheading 5801.23,

containing 85 per cent or more by weight of cotton; (ii) Corduroy fabrics of subheading 5801.22, containing 85 per cent or more by weight of cotton and containing more than 7.5 wales per centimetre; 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; Fabrics of subheading 5112.30, weighing not more than 340 grams per square metre, 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 fibres; 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 centimetre, of a weight not exceeding 110 grams per square metre.

(iii)

(iv)

(v)

Note 3:

For the purpose of determining the origin of a good of this Chapter, the rule applicable to that good shall only apply to the fabric which imparts to the good its essential character and such fabric 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, 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. A change to subheadings 6201.11 through 6201.13 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 58.01 through 58.02, 60.01 through 60.02, or Chapter 54; provided the goods are both cut and sewn or otherwise assembled in the territory of one or more of the

6201.11-6201.13

Parties, and visible lining fabrics listed in Note 1 satisfy the tariff change requirements provided therein. 6201.19 A change to subheading 6201.19 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 58.01 through 58.02, 60.01 through 60.02, or Chapter 54; provided the goods are both cut and sewn or otherwise assembled in the territory of one or more of the Parties. A change to subheadings 6201.91 through 6201.93 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 58.01 through 58.02, 60.01 through 60.02, or Chapter 54; provided the goods are both cut and sewn or otherwise assembled in the territory of one or more of the Parties, and visible lining fabrics listed in Note 1 satisfy the tariff change requirements provided therein. A change to subheading 6201.99 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 58.01 through 58.02, 60.01 through 60.02, or Chapter 54; provided the goods are both cut and sewn or otherwise assembled in the territory of one or more of the Parties. A change to subheadings 6202.11 through 6202.13 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 58.01 through 58.02, 60.01 through 60.02, or Chapter 54; provided the goods are both cut and sewn or otherwise assembled in the territory of one or more of the Parties, and visible lining fabrics listed in Note 1 satisfy the tariff change requirements provided therein. A change to subheading 6202.19 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 58.01 through 58.02, 60.01 through 60.02, or Chapter 54; provided the goods are both cut and sewn or otherwise assembled in the territory of one or more of the Parties.

6201.91-6201.93

6201.99

6202.11-6202.13

6202.19

6202.91-6202.93

A change to subheadings 6202.91 through 6202.93 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 58.01 through 58.02, 60.01 through 60.02, or Chapter 54; provided the goods are both cut and sewn or otherwise assembled in the territory of one or more of the Parties, and visible lining fabrics listed in Note 1 satisfy the tariff change requirements provided therein. A change to subheading 6202.99 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 58.01 through 58.02, 60.01 through 60.02, or Chapter 54; provided the goods are both cut and sewn or otherwise assembled in the territory of one or more of the Parties. A change to subheadings 6203.11 through 6203.12 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 58.01 through 58.02, 60.01 through 60.02, or Chapter 54; provided the goods are both cut and sewn or otherwise assembled in the territory of one or more of the Parties, and visible lining fabrics listed in Note 1 satisfy the tariff change requirements provided therein.

6202.99

6203.11-6203.12

6203.19 6203.19.90 A change to Canadian tariff item 6203.19.90, U.S. tariff item 6203.19.40, Mexican tariff item 6203.19.02 or 6203.19.99 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 58.01 through 58.02, 60.01 through 60.02, or Chapter 54; provided the goods are both cut and sewn or otherwise assembled in the territory of one or more of the Parties. A change to subheading 6203.19 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 58.01 through 58.02, 60.01 through 60.02, or Chapter 54; provided the goods are both cut and sewn or otherwise assembled in

6203.19

the territory of one or more of the Parties, and visible lining fabrics listed in Note 1 satisfy the tariff change requirements provided therein. 6203.21-6203.29 A change to subheadings 6203.21 through 6203.29 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 60.01 through 60.02, or Chapter 54; provided the goods are both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the Parties and, with the additional requirement that garments described in heading 62.01 or jackets or blazers described in heading 62.03, of wool, fine animal hair, cotton or man-made fibres, imported as part of the ensembles of these subheadings, the visible lining fabrics listed in Note 1 satisfy the tariff change requirements provided therein. A change to subheadings 6203.31 through 6203.33 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 58.01 through 58.02, 60.01 through 60.02, or Chapter 54; provided the goods are both cut and sewn or otherwise assembled in the territory of one or more of the Parties, and visible lining fabrics listed in Note 1 satisfy the tariff change requirements provided therein.

6203.31-6203.33

6203.39 6203.39.a1 A change to Canadian tariff item 6203.39.a1, U.S. tariff item 6203.39.40, Mexican tariff item 6203.39.02 or 6203.39.99 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 58.01 through 58.02, 60.01 through 60.02, or Chapter 54; provided the goods are both cut and sewn or otherwise assembled in the territory of one or more of the Parties. A change to subheading 6203.39 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 58.01 through 58.02, 60.01 through

6203.39

60.02, or Chapter 54; provided the goods are both cut and sewn or otherwise assembled in the territory of one or more of the Parties, and visible lining fabrics listed in Note 1 satisfy the tariff change requirements provided therein. 6203.41-6203.49 A change to subheadings 6203.41 through 6203.49 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 58.01 through 58.02, 60.01 through 60.02, or Chapter 54; provided the goods are both cut and sewn or otherwise assembled in the territory of one or more of the Parties. A change to subheadings 6204.11 through 6204.13 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 58.01 through 58.02, 60.01 through 60.02, or Chapter 54; provided the goods are both cut and sewn or otherwise assembled in the territory of one or more of the Parties, and visible lining fabrics listed in Note 1 satisfy the tariff change requirements provided therein.

6204.11-6204.13

6204.19 6204.19.a1 A change to Canadian tariff 6204.19.a1, U.S. tariff item 6204.19.30, Mexican tariff item 6204.19.02 or 6204.19.99 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 58.01 through 58.02, 60.01 through 60.02, or Chapter 54; provided the goods are both cut and sewn or otherwise assembled in the territory of one or more of the Parties. A change to subheading 6204.19 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 58.01 through 58.02, 60.01 through 60.02, or Chapter 54; provided the goods are both cut and sewn or otherwise assembled in the territory of one or more of the Parties, and visible lining fabrics listed in Note 1 satisfy the tariff change requirements provided therein.

6204.19

6204.21-6204.29

A change to subheadings 6204.21 through 6204.29 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 60.01 through 60.02, or Chapter 54; provided the goods are both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the Parties and, with the additional requirement that garments described in heading 62.02, jackets or blazers described in heading 62.04, or skirts described in heading 62.04, of wool, fine animal hair, cotton or man-made fibres, imported as part of the ensembles of these subheadings, the visible lining fabrics listed in Note 1 satisfy the tariff change requirements provided therein. A change to subheadings 6204.31 through 6204.33 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 58.01 through 58.02, 60.01 through 60.02, or Chapter 54; provided the goods are both cut and sewn or otherwise assembled in the territory of one or more of the Parties, and visible lining fabrics listed in Note 1 satisfy the tariff change requirements provided therein.

6204.31-6204.33

6204.39 6204.39.90 A change to Canadian tariff item 6204.39.90, U.S. tariff item 6204.39.60 or 6204.39.80, Mexican tariff item 6204.39.02 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 58.01 through 58.02, 60.01 through 60.02, or Chapter 54; provided the goods are both cut and sewn or otherwise assembled in the territory of one or more of the Parties. A change to subheading 6204.39 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 58.01 through 58.02, 60.01 through 60.02, or Chapter 54; provided the goods are both cut and sewn or otherwise assembled in the territory of one or more of the Parties, and visible lining fabrics listed in Note 1

6204.39

satisfy the tariff change requirements provided therein. 6204.41-6204.49 A change to subheadings 6204.41 through 6204.49 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 58.01 through 58.02, 60.01 through 60.02, or Chapter 54; provided the goods are both cut and sewn or otherwise assembled in the territory of one or more of the Parties. A change to subheadings 6204.51 through 6204.53 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 58.01 through 58.02, 60.01 through 60.02, or Chapter 54; provided the goods are both cut and sewn or otherwise assembled in the territory of one or more of the Parties, and visible lining fabrics listed in Note 1 satisfy the tariff change requirements provided therein.

6204.51-6204.53

6204.59 6204.59.90 A change to Canadian tariff item 6204.59.90, U.S. tariff item 6204.59.40, Mexican tariff item 6204.59.02 or 6204.59.99 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 58.01 through 58.02, 60.01 through 60.02, or Chapter 54; provided the goods are both cut and sewn or otherwise assembled in the territory of one or more of the Parties. A change to subheading 6204.59 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 58.01 through 58.02, 60.01 through 60.02, or Chapter 54; provided the goods are both cut and sewn or otherwise assembled in the territory of one or more of the Parties, and visible lining fabrics listed in Note 1 satisfy the tariff change requirements provided therein. A change to subheadings 6204.61 through 6204.69 from any other chapter, except from headings 51.06 through 51.13, 52.04

6204.59

6204.61-6204.69

through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 58.01 through 58.02, 60.01 through 60.02, or Chapter 54; provided the goods are 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 headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 58.01 through 58.02, 60.01 through 60.02, or Chapter 54; provided the goods are both cut and sewn or otherwise assembled in the territory of one or more of the Parties. Note: Men's or boys' shirts of cotton or man-made fibres 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 outer shell, exclusive of collars or cuffs, is wholly of one or more of the following fabrics: (i) 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 number exceeding 135 metric; Fabrics of subheading 5513.11 or 5513.21, not of square construction, containing more than 70 warp ends and filling picks per square centimetre, of average yarn number exceeding 70 metric; Fabrics of subheading 5210.21 or 5210.31, not of square construction, containing more than 70 warp ends and filling picks per square centimetre, of average yarn number exceeding 70 metric; Fabrics of subheading 5208.22 or 5208.32, not of square construction, containing more than 75 warp ends and filling picks per square centimetre, of average yarn number exceeding 65 metric; Fabrics of subheading 5407.81, 5407.82 or 5407.83, weighing less than 170 grams per square metre, having a dobby weave created by a dobby attachment; Fabrics of subheading 5208.42 or 5208.49, not of square construction, containing

6205.20-6205.30

(ii)

(iii)

(iv)

(v)

(vi)

more than 85 warp ends and filling picks per square centimetre, of average yarn number exceeding 85 metric; (vii) Fabrics of subheading 5208.51, of square construction, containing more than 75 warp ends and filling picks per square centimetre, made with single yarns, of average yarn number 95 or greater metric; Fabrics of subheading 5208.41, of square construction, with a gingham pattern, containing more than 85 warp ends and filling picks per square centimetre, 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.

(viii)

A change to subheadings 6205.20 through 6205.30 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 58.01 through 58.02, 60.01 through 60.02, or Chapter 54; provided the goods are 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 headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 58.01 through 58.02, 60.01 through 60.02, or Chapter 54; provided the goods are both cut and sewn or otherwise assembled in the territory of one or more of the Parties. A change to headings 62.06 through 62.11 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 58.01 through 58.02, 60.01 through 60.02, or Chapter 54; provided the goods are both cut and sewn or otherwise assembled in the territory of one or more of the Parties. A change to subheading 6212.10 from any other chapter; provided the goods are both cut and sewn or otherwise assembled in the territory of one or more of the Parties.

62.06-62.11

6212.10

6212.20-6212.90

A change to subheadings 6212.20 through 6212.90 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 58.01 through 58.02, 60.01 through 60.02, or Chapter 54; provided the goods are both cut and sewn or otherwise assembled in the territory of one or more of the Parties. A change to headings 62.13 through 62.17 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, 55.08 through 55.16, 58.01 through 58.02, 60.01 through 60.02, or Chapter 54; provided the goods are both cut and sewn or otherwise assembled in the territory of one or more of the Parties. Other Made Up Textile Articles; Sets; Worn Clothing and Worn Textile Articles; Rags

62.13-62.17

Chapter 63

Note 1:

For the purpose of determining the origin of a good of this Chapter, the rule applicable to that good shall only apply to the fabric which imparts to the good its essential character and such fabric must satisfy the tariff change requirements set out in the rule for that good. A change to headings 63.01 through 63.02 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, Chapters 54 through 55, headings 58.01 through 58.02 or 60.01 through 60.02; provided the goods are both cut and sewn (or knit to shape) or otherwise assembled in the territory of one or more of the Parties.

63.01-63.02

63.03 6303.92.a1 A change to Canadian tariff item 6303.92.a1, U.S. tariff item 6302.92.h1, Mexican tariff item 6302.92.x1 from any other chapter or from Canadian tariff item 5402.43.10 or 5402.52.10, U.S. tariff item 5402.43.10 or 5402.52.10, Mexican tariff item 5402.43.01 or 5402.52.02, except from headings 51.06

through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, Chapters 54 through 55, headings 58.01 through 58.02, 60.01 or 60.02; provided the goods are 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 headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, Chapters 54 through 55, headings 58.01 through 58.02 or 60.01 through 60.02; provided the goods are both cut and sewn (or knit to shape) or otherwise assembled in the territory of one or more of the Parties. A change to headings 63.04 through 63.10 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 53.10 through 53.11, Chapters 54 through 55, headings 58.01 through 58.02 or 60.01 through 60.02; provided the goods are both cut and sewn (or knit to shape) or otherwise assembled in the territory of one or more of the Parties.

63.04-63.10

SECTION XII Footwear, Headgear, Umbrellas, Sun Umbrellas, Walking-Sticks, SeatSticks, Whips, Riding-Crops and Parts Thereof; Prepared Feathers and Articles Made Therewith; Artificial Flowers; Articles of Human Hair (Ch. 64-67) Chapter 64 6401.10-6406.10 Footwear, Gaiters and the Like; Parts of Such Articles A change to subheadings 6401.10 through 6406.10 from any other subheading outside that group, provided there is a regional value content of not less than 55% under the net cost method. A change to subheadings 6406.20 through 6406.99 from any other chapter. Headgear and Parts Thereof A change to headings 65.01 through 65.02 from any other chapter. A change to headings 65.03 through 65.07 from any heading outside that group.

6406.20-6406.99

Chapter 65 65.01-65.02 65.03-65.07

Chapter 66

Umbrellas, Sun Umbrellas, Walking-Sticks, Seat-Sticks, Whips, Riding-Crops and Parts Thereof A change to heading 66.01 from any other heading, except from a combination of both: a) b) subheading 6603.20; and headings 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.

66.01

66.02 66.03

A change to heading 66.02 from any other heading. A change to heading 66.03 from any other chapter. Prepared Feathers and Down and Articles Made of Feathers or of Down; Artificial Flowers; Articles of Human Hair

Chapter 67

67.01 6701.00.10 A change to Canadian tariff item 6701.00.10, U.S. tariff item 6701.00.10, Mexican tariff item 6701.00.01 or 6701.00.02 from any other tariff item. A change to heading 67.01 from any other chapter. A change to heading 67.02 from any other heading. A change to heading 67.03 from any other chapter. A change to heading 67.04 from any other heading.

67.01 67.02 67.03 67.04

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

68.01-68.11 6812.10 6812.20 6812.30-6812.40

A change to headings 68.01 through 68.11 from any other chapter. A change to subheading 6812.10 from any other chapter. A change to subheading 6812.20 from any other subheading. A change to subheadings 6812.30 through 6812.40 from any other subheading outside that group. A change to subheading 6812.50 from any other subheading. A change to subheadings 6812.60 through 6812.90 from any other subheading outside that group. A change to heading 68.13 from any other heading. A change to headings 68.14 through 68.15 from any other chapter. Ceramic Products A change to headings 69.01 through 69.14 from any other chapter. Glass and Glassware A change to headings 70.01 through 70.02 from any other chapter. A change to headings 70.03 through 70.09 from any other heading outside that group. A change to headings 70.10 through 70.20 from any other heading, except from headings 70.07 through 70.20.

6812.50 6812.60-6812.90

68.13 68.14-68.15

Chapter 69 69.01-69.14

Chapter 70 70.01-70.02 70.03-70.09

70.10-70.20

SECTION XIV Natural or Cultured Pearls, Precious or Semiprecious Stones, Precious Metals, Metals Clad with Precious Metal, and Articles Thereof; Imitation Jewellery; Coin (Ch. 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 (Ch. 71)

71.01-71.12 71.13-71.18 Note:

A change to headings 71.01 through 71.12 from any other chapter. Pearls, temporarily or permanently strung but without the addition of clasps or other ornamental features of precious metals or stones, shall be treated as a good of the country in which the pearls were obtained.

A change to headings 71.13 through 71.18 from any other heading outside that group. SECTION XV Base Metals and Articles of Base Metal (Ch. 72-83) Chapter 72 72.01 7202.11-7202.60 7202.70 7202.80-7202.99 72.03-72.05 72.06-72.07 Iron and Steel A change to heading 72.01 from any other chapter. A change to subheadings 7202.11 through 7202.60 from any other chapter. A change to subheading 7202.70 from any other chapter, except from subheading 2613.10. A change to subheadings 7202.80 through 7202.99 from any other chapter. A change to headings 72.03 through 72.05 from any other chapter. A change to headings 72.06 through 72.07 from any other heading outside that group. A change to headings 72.08 through 72.16 from any other heading outside that group. A change to heading 72.17 from any other heading, except from headings 72.13 through 72.15. A change to headings 72.18 through 72.22 from any other heading outside that group. A change to heading 72.23 from any other heading, except from headings 72.21 through 72.22. A change to headings 72.24 through 72.28 from any other heading outside that

72.08-72.16

72.17

72.18-72.22

72.23

72.24-72.28

group. 72.29 A change to heading 72.29 from any other heading, except from headings 72.27 through 72.28. Articles of Iron or Steel A change to headings 73.01 through 73.03 from any other chapter. A change to subheadings 7304.10 through 7304.39 from any other chapter. A change to Canadian tariff item 7304.41.10, U.S. tariff item 7304.41.10, Mexican tariff item 7304.41.02 or 7304.41.03 from subheading 7304.49 or from any other chapter. A change to subheading 7304.41 from any other chapter. A change to subheadings 7304.49 through 7304.90 from any other chapter. A change to headings 73.05 through 73.07 from any other chapter. 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; adding attachments or weldments for composite construction; adding attachments for handling purposes; adding weldments, connectors or attachments to H-sections or Isections; 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 painting, galvanizing, or otherwise coating; or adding a simple base plate without stiffening elements, individually or

Chapter 73 73.01-73.03 7304.10-7304.39 7304.41 7304.41.10

7304.41 7304.49-7304.90 73.05-73.07 73.08

b) c) d)

e) f)

in combination with drilling, punching, notching, or cutting, to create an article suitable as a column. 73.09-73.11 A change to headings 73.09 through 73.11 from any other heading outside that group. A change to headings 73.12 through 73.14 from any other heading, including another heading within that group. A change to subheadings 7315.11 through 7315.12 from any other heading; or A change to subheadings 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) b) 7315.19 7315.20-7315.89 60% where the transaction value method is used, or 50% where the net cost method is used.

73.12-73.14

7315.11-7315.12

A change to subheading 7315.19 from any other heading. A change to subheadings 7315.20 through 7315.89 from any other heading; or A change to subheadings 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) b) 60% where the transaction value method is used, or 50% where the net cost method is used.

7315.90 73.16

A change to subheading 7315.90 from any other heading. A change to heading 73.16 from any other heading, except from heading 73.12 or 73.15. A change to headings 73.17 through 73.18 from any other heading outside that group. A change to headings 73.19 through 73.20

73.17-73.18

73.19-73.20

from any other heading outside that group. 7321.11 7321.11.19 A change to Canadian tariff item 7321.11.19, U.S. tariff item 7321.11.30, Mexican tariff item 7321.11.02 or 7321.11.03 from any other subheading, except from Canadian tariff item 7321.90.51, 7321.90.52 or 7321.90.53, U.S. tariff item 7321.90.32, 7321.90.34 or U.S. tariff item 7321.90.36, Mexican tariff item 7321.90.05, 7321.90.06 or 7321.90.07. A change to subheading 7321.11 from any other heading; or A change 7321.90, from any regional a) b) 7321.12-7321.83 to subheading 7321.11 from subheading whether or not there is also a change other heading, provided there is a value content of not less than: 60% where the transaction value method is used, or 50% where the net cost method is used.

7321.11

A change to subheadings 7321.12 through 7321.83 from any other heading; or A change to subheadings 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) b) 60% where the transaction value method is used, or 50% where the net cost method is used.

7321.90 7321.90.51 A change to Canadian tariff item 7321.90.51, U.S. tariff item 7321.90.32, Mexican tariff item 7321.90.05 from any other tariff item. A change to Canadian tariff item 7321.90.52, U.S. tariff item 7321.90.34, Mexican tariff item 7321.90.06 from any other tariff item. A change to Canadian tariff item 7321.90.53, U.S. tariff item 7321.90.36,

7321.90.52

7321.90.53

Mexican tariff item 7321.90.07 from any other tariff item. 7321.90 73.22-73.23 A change to subheading 7321.90 from any other heading. A change to headings 73.22 through 73.23 from any other heading outside that group. A change to subheadings 7324.10 through 7324.29 from any other heading; or A change to subheadings 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) b) 7324.90 73.25-73.26 60% where the transaction value method is used, or 50% where the net cost method is used.

7324.10-7324.29

A change to subheading 7324.90 from any other heading. A change to headings 73.25 through 73.26 from any other heading outside that group.

Chapter 74 74.01-74.02 74.03

Copper and Articles Thereof A change to headings 74.01 through 74.02 from any other chapter. A change to heading 74.03 from any other chapter; or A change to heading 74.03 from any of Canadian tariff item 7404.00.11, 7404.00.21 or 7404.11.91, U.S. tariff item 7404.00.10, Mexican tariff item 7404.00.01 or 7404.11.02, heading 74.01 or 74.02, whether or not there is also a change from any other chapter, provided there is a regional value content of not less than: a) b) 60% where the transaction value method is used, or 50% where the net cost method is used.

74.04

A change to heading 74.04 from any other chapter.

74.05-74.07

A change to headings 74.05 through 74.07 from any other chapter; or A change to headings 74.05 through 74.07 from any of Canadian tariff item 7404.00.11, 7404.00.21 or 7404.00.91, U.S. tariff item 7404.00.10, Mexican tariff item 7404.00.01 or 7404.00.02, heading 74.01 or 74.02, whether or not there is also a change from any other chapter, provided there is a regional value content of not less than: a) b) 60% where the transaction value method is used, or 50% where the net cost method is used.

7408.11 7408.11.11 A change to Canadian tariff item 7408.11.11 or 7408.11.21, U.S. tariff item 7408.11.60, Mexican tariff item 7408.11.01 from any other chapter; or A change to Canadian tariff item 7408.11.11 or 7408.11.21, U.S. tariff item 7408.11.60, Mexican tariff item 7408.11.01 from any of Canadian tariff item 7404.00.11, 7404.00.21 or 7404.00.91, U.S. tariff item 7404.00.10, Mexican tariff item 7404.00.01 or 7404.00.02, or heading 74.01 or 74.02, whether or not there is also a change from any other chapter, provided there is a regional value content of not less than: a) b) 7408.11 60% where the transaction value method is used, or 50% where the net cost method is used.

A change to subheading 7408.11 from any other heading, except from heading 74.07. A change to subheadings 7408.19 through 7408.29 from any other heading, except from heading 74.07. A change to heading 74.09 from any other heading. A change to heading 74.10 from any other heading, except from heading 74.09. A change to heading 74.11 from any other heading, except from heading 74.09 or

7408.19-7408.29

74.09 74.10 74.11

Canadian tariff item 7407.10.13, 7407.10.22, 7407.21.13, 7407.21.22, 7407.22.13, 7407.22.22, 7407.29.13, or 7407.29.22, U.S. tariff item 7407.10.20, 7407.21.20, 7407.22.20 or 7407.29.20, Mexican tariff item 7407.10.02, 7407.21.02, 7407.22.02 or 7407.29.02. 74.12 74.13 A change to heading 74.12 from any other heading, except from heading 74.11. A change to heading 74.13 from any other heading, except from headings 74.07 through 74.08; or A change to heading 74.13 from any of headings 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) b) 74.14-74.18 60% where the transaction value method is used, or 50% where the net cost method is used.

A change to headings 74.14 through 74.18 from any other heading, including another heading within that group. A change to subheading 7419.10 from any other heading, except from heading 74.07. A change to subheadings 7419.91 through 7419.99 from any other heading. Nickel and Articles Thereof A change to headings 75.01 through 75.04 from any other chapter. A change to heading 75.05 from any other heading.

7419.10 7419.91-7419.99

Chapter 75 75.01-75.04 75.05 75.06 7506.10.22

A change to Canadian tariff item 7506.10.22, U.S. tariff item 7506.10.50, Mexican tariff item 7506.10.01 from any other tariff item. A change to Canadian tariff item 7506.20.92, U.S. tariff item 7506.20.50, Mexican tariff item 7506.20.01 from any other tariff item.

7506.20.92

75.06 75.07-75.08

A change to heading 75.06 from any other heading. A change to headings 75.07 through 75.08 from any other heading outside that group. Aluminum and Articles Thereof A change to headings 76.01 through 76.03 from any other chapter. A change to headings 76.04 through 76.06 from any other heading outside that group. A change to heading 76.07 from any other heading. A change to headings 76.08 through 76.09 from any other heading outside that group. A change to headings 76.10 through 76.13 from any other heading, including another heading within that group. A change to heading 76.14 from any other heading, except from headings 76.04 through 76.05. A change to headings 76.15 through 76.16 from any other heading, including another heading within that group.

Chapter 76 76.01-76.03 76.04-76.06

76.07 76.08-76.09

76.10-76.13

76.14

76.15-76.16

Chapter 78 78.01-78.02 78.03-78.06

Lead and Articles Thereof A change to headings 78.01 through 78.02 from any other chapter. A change to headings 78.03 through 78.06 from any other chapter; or A change to headings 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) b) 60% where the transaction value method is used, or 50% where the net cost method is

used. Chapter 79 79.01-79.03 79.04-79.07 Zinc and Articles Thereof A change to headings 79.01 through 79.03 from any other chapter. A change to headings 79.04 through 79.07 from any other chapter; or A change to headings 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) b) 60% where the transaction value method is used, or 50% where the net cost method is used.

Chapter 80 80.01-80.02 80.03-80.04 80.05-80.07

Tin and Articles Thereof A change to headings 80.01 through 80.02 from any other chapter. A change to headings 80.03 through 80.04 from any other heading outside that group. A change to headings 80.05 through 80.07 from any other heading outside that group. Other Base Metals; Cermets; Articles Thereof A change to subheadings 8101.10 through 8101.91 from any other chapter. A change to subheading 8101.92 from any other subheading. A change to subheading 8101.93 from any other chapter. A change to subheading 8101.99 from any other subheading. A change to subheadings 8102.10 through 8102.91 from any other chapter. A change to subheading 8102.92 from any other subheading.

Chapter 81 8101.10-8101.91 8101.92 8101.93 8101.99 8102.10-8102.91 8102.92

8102.93

A change to subheading 8102.93 from any other subheading, except from Canadian tariff item 8102.92.10, U.S. tariff item 8102.92.10, Mexican tariff item 8102.92.01. A change to subheading 8102.99 from any other subheading. A change to subheading 8103.10 from any other chapter. A change to subheading 8103.90 from any other subheading. A change to subheadings 8104.11 through 8104.30 from any other chapter. A change to subheading 8104.90 from any other subheading. A change to subheading 8105.10 from any other chapter. A change to subheading 8105.90 from any other subheading. A change to heading 81.06 from any other chapter. A change to subheading 8107.10 from any other chapter. A change to subheading 8107.90 from any other subheading. A change to subheading 8108.10 from any other chapter. A change to subheading 8108.90 from any other subheading. A change to subheading 8109.10 from any other chapter. A change to subheading 8109.90 from any other subheading. A change to heading 81.10 from any other chapter.

8102.99 8103.10 8103.90 8104.11-8104.30 8104.90 8105.10 8105.90 81.06 8107.10 8107.90 8108.10 8108.90 8109.10 8109.90 81.10 81.11 8111.00.21

A change to Canadian tariff item 8111.00.21. 8111.00.22, 8111.00.40, U.S. tariff item 8111.00.60, Mexican tariff item 8111.00.01 from any other tariff

item. 81.11 A change to heading 81.11 from any other chapter. A change to headings 81.12 through 81.13 from any other chapter. Tools, Implements, Cutlery, Spoons and Forks, of Base Metal; Parts Thereof of Base Metal A change to headings 82.01 through 82.15 from any other chapter. Miscellaneous Articles of Base Metal A change to subheadings 8301.10 through 8301.50 from any chapter; or A change to subheadings 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) b) 8301.60-8301.70 83.02-83.04 8305.10-8305.20 60% where the transaction value method is used, or 50% where the net cost method is used.

81.12-81.13

Chapter 82 82.01-82.15

Chapter 83 8301.10-8301.50

A change to subheadings 8301.60 through 8301.70 from any other chapter. A change to headings 83.02 through 83.04 from any other chapter. A change to subheadings 8305.10 through 8305.20 from any other chapter; or A change to subheadings 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) b) 60% where the transaction value method is used, or 50% where the net cost method is used.

8305.90 83.06-83.07

A change to subheading 8305.90 from any other chapter. A change to headings 83.06 through 83.07

from any other chapter.; or A change to headings 83.06 through 83.07 from within headings 83.06 through 83.07, whether or not there is also a change from any other chapter, provided there is a regional value content of not less than: a) b) 8308.10-8308.20 60% the transaction value method is used, or 50% where the net cost method is used.

A change to subheadings 8308.10 through 8308.20 from any other chapter; or A change to subheadings 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) b) 60% where the transaction value method is used, or 50% where the net cost method is used.

8308.90 83.09-83.10 8311.10-8311.30

A change to subheading 8308.90 from any other chapter. A change to headings 83.09 through 83.10 from any other chapter. A change to subheadings 8311.10 through 8311.30 from any other chapter; or A change to subheadings 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) b) 60% where the transaction value method is used, or 50% where the net cost method is used.

8311.90

A change to subheading 8311.90 from any other chapter.

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 (Ch. 84-85)

Note:

For purposes of this Section, the term, "printed circuit assembly", means goods 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.

Chapter 84

Nuclear Reactors, Boilers, Machinery and Mechanical Appliances; Parts Thereof Note X: (1) Tariff item 8473.30.a3 covers the following parts of printers: Control or command assemblies for printers of subheading 8471.92, incorporating at least two of the following: printed circuit assembly; hard or flexible (floppy) disc drive; keyboard; user interface; Light source assemblies for printers of subheading 8471.92, incorporating at least two of the following: light emitting diode assembly; gas laser; mirror polygon assembly; base casting; Laser imaging assemblies for the printers of subheading 8471.92, incorporating at least two of the following: photoreceptor belt or cylinder; toner receptacle unit; toner developing unit; charge/discharge unit; cleaning unit; Image fixing assemblies for the printers of subheading 8471.92, incorporating at least two of the following: fuser; pressure roller; heating element; release oil dispenser; cleaning unit; electrical control; Ink jet marking assemblies for the printers of subheading 8471.92, incorporating at least two of the following: thermal print head; ink dispensing unit; nozzle and reservoir unit; ink heater; Maintenance/sealing assemblies for the printers of subheading 8471.92, incorporating at least two of the following: vacuum unit; ink jet covering

(2)

(3)

(4)

(5)

(6)

unit; sealing unit; purging unit; (7) Paper handling assemblies for the printers of subheading 8471.92, incorporating at least two of the following: paper transport belt; roller; print bar; carriage; gripper roller; paper storage unit; exit tray; Thermal transfer imaging assemblies for the printers of subheading 8471.92, incorporating at least two of the following: thermal print head; cleaning unit; supply or take-up roller; Ionographic imaging assemblies for the printers of subheading 8471.92, 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; and Combinations of the above specified assemblies. A change to subheadings 8401.10 through 8401.30 from any other heading; or A change to subheadings 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) b) 8401.40 8402.11-8402.20 60% where the transaction value method is used; or 50% where the net cost method is used.

(8)

(9)

(10)

8401.10-8401.30

A change to subheading 8401.40 from any other heading. A change to subheadings 8402.11 through 8402.20 from any other heading; or A change to subheadings 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% where the transaction value

b) 8402.90

method is used; or 50% where the net cost method is used.

A change to subheading 8402.90 from any other heading; or A change to subheading 8402.90 from within 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) b) 60% where the transaction value method is used; or 50% where the net cost method is used.

8403.10

A change to subheading 8403.10 from any other heading; or A change 8403.90, from any regional a) b) to subheading 8403.10 from subheading whether or not there is also a change other heading, provided there is a value content of not less than: 60% where the transaction value method is used; or 50% where the net cost method is used.

8403.90 8404.10-8404.20

A change to subheading 8403.90 from any other heading. A change to subheadings 8404.10 through 8404.20 from any other heading; or A change to subheadings 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) b) 60% where the transaction value method is used; or 50% where the net cost method is used.

8404.90 8405.10

A change to subheading 8404.90 from any other heading. A change to subheading 8405.10 from any other heading; or A change to subheadings 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) b) 8405.90 8406.11-8406.19 60% where the transaction value method is used; or 50% where the net cost method is used.

A change to subheading 8405.90 from any other heading. A change to subheadings 8406.11 through 8406.19 from any other subheading outside that group, except from Canadian tariff item 8406.90.32 or 8406.90.34, U.S. tariff item 8406.90.20, 8406.90.40, 8406.90.50 or 8406.90.70, Mexican tariff item 8406.90.x1 or 8406.90.x2.

8406.90 8406.90.a1 A change to Canadian tariff item 8406.90.32, U.S. tariff item 8406.90.20, Mexican tariff item 8406.90.x1 from Canadian tariff item 8406.90.31, U.S. tariff item 8406.90.30 or 8406.90.60, Mexican tariff item 8406.90.x3 or any other heading. A change to U.S. tariff item 8406.90.50 from Canadian tariff item 8406.90.31, U.S. tariff item 8406.90.30 or 8406.90.60, Mexican tariff item 8406.90.x3 or any other heading. A change to Canadian tariff item 8406.90.34, U.S. tariff item 8406.90.40, Mexican tariff item 8406.90.x2 from any other tariff item. A change to Canadian tariff item 8406.90.31, U.S. tariff item 8406.90.30, Mexican tariff item 8406.90.x3 from any other tariff item. A change to U.S. tariff item 8406.90.60 from any other tariff item. A change to U.S. tariff item 8406.90.70 from any other tariff item. A change to subheading 8406.90 from any other heading. A change to headings 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

US8406.90.50

8406.90.a2

8406.90.a3

US8406.90.60 US8406.90.70 8406.90 84.07-84.08

than: a) b) 8409.10 8409.91 60% where the transaction value method is used; or 50% where the net cost method is used.

A change to subheading 8409.10 from any other heading. A change to subheading 8409.91 from any other heading; or A change to subheading 8409.91 from within subheading 8409.91, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) b) 60% where the transaction value method is used; or 50% where the net cost method is used.

8409.99

A change to subheading 8409.99 from any other heading; or A change to subheading 8409.99 from within subheading 8409.99, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) b) 60% where the transaction value method is used; or 50% where the net cost method is used.

8410.11-8410.13

A change to subheadings 8410.11 through 8410.13 from any other heading; or A change to subheadings 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) b) 60% where the transaction value method is used; or 50% where the net cost method is used.

8410.90 8411.11-8411.82

A change to subheading 8410.90 from any other heading. A change to subheadings 8411.11 through 8411.82 from any other heading; or

A change to subheadings 8411.11 through 8411.82 from any of subheadings 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) b) 8411.91-8411.99 8412.10-8412.80 60% where the transaction value method is used; or 50% where the net cost method is used.

A change to subheadings 8411.91 through 8411.99 from any other heading. A change to subheadings 8412.10 through 8412.80 from any other heading; or A change to subheadings 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) b) 60% where the transaction value method is used; or 50% where the net cost method is used.

8412.90 8413.11-8413.82

A change to subheading 8412.90 from any other heading. A change to subheadings 8413.11 through 8413.82 from any other heading; or A change to subheadings 8413.11 through 8413.82 from any of subheadings 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) b) 60% where the transaction value method is used; or 50% where the net cost method is used.

8413.91 8413.92

A change to subheading 8413.91 from any other heading. A change to subheading 8413.92 from any other heading; or A change to subheading 8413.92 from within subheading 8409.92, whether or not there is also a change from any other heading, provided

there is a regional value content of not less than: a) b) 8414.10-8414.20 60% where the transaction value method is used; or 50% where the net cost method is used.

A change to subheadings 8414.10 through 8414.20 from any other heading; or A change to subheadings 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) b) 60% where the transaction value method is used; or 50% 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 8414.90.20, Mexican tariff item 8414.90.x1. A change to subheadings 8414.40 through 8414.80 from any other heading; or A change to subheadings 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) b) 60% where the transaction value method is used; or 50% where the net cost method is used.

8414.40-8414.80

8414.90

A change to subheading 8414.90 from any other heading; or A change to subheading 8414.90 from within 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) b) 60% where the transaction value method is used; or 50% 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.a1, U.S. tariff item 8415.90.h1, Mexican tariff item 8415.90.x1 or from assemblies incorporating at least two of the following: compressor, condenser,evaporator, connecting tubing. 8415.81-8415.83 A change to subheadings 8415.81 through 8415.83 from any other subheading outside that group, except from Canadian tariff item 8415.90.a1, U.S. tariff item 8415.90.h1, Mexican tariff item 8415.90.x1 or from assemblies for goods of subheadings 8415.10 through 8415.83, incorporating at least two of the following: compressor, condenser,evaporator, connecting tubing; or A change to subheadings 8415.81 through 8415.83 from any of Canadian tariff item 8415.90.a1, U.S. tariff item 8415.90.h1, Mexican tariff item 8415.90.x1 or assemblies for goods of subheadings 8415.10 through 8415.83, 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) b) 8415.90 8415.90.a1 A change to Canadian tariff item 8415.90.a1, U.S. tariff item 8415.90.h1, Mexican tariff item 8415.90.x1 from any other tariff item. A change to subheading 8415.90 from any other heading. A change to subheadings 8416.10 through 8416.30 from any other heading; or A change to subheadings 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: a) b) 60% where the transaction value method is used; or 50% where the net cost method is 60% where the transaction value method is used; or 50% where the net cost method is used.

8415.90 8416.10-8416.30

used. 8416.90 8417.10-8417.80 A change to subheading 8416.90 from any other heading. A change to subheadings 8417.10 through 8417.80 from any other heading; or A change to subheadings 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) b) 8417.90 8418.10-8418.21 60% where the transaction value method is used; or 50% where the net cost method is used.

A change to subheading 8417.90 from any other heading. A change to subheadings 8418.10 through 8418.21 from any other subheading, except from subheading 8418.91 or Canadian tariff item 8418.99.a1, U.S. tariff item 8418.99.h1, Mexican tariff item 8418.99.x1, or from assemblies incorporating at least two of the following: compressor, condenser, evaporator, connecting tubing. A change to subheading 8418.22 from any other heading; or A change to subheadings 8418.22 from any of subheadings 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) b) 60% where the transaction value method is used; or 50% where the net cost method is used.

8418.22

8418.29-8418.40

A change to subheadings 8418.29 through 8418.40 from any other subheading outside that group, except from subheading 8418.91 or Canadian tariff item 8418.99.a1, U.S. tariff item 8418.99.h1, Mexican tariff item 8418.99.x1, or from assemblies incorporating at least two of the following: compressor, condenser, evaporator, connecting tubing. A change to subheadings 8418.50 through

8418.50-8418.69

8418.69 from any other heading; or A change to subheadings 8418.50 through 8418.69 from any of subheadings 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) b) 8418.91 8418.99 8418.99.a1 A change to Canadian tariff item 8418.99.a1, U.S. tariff item 8418.99.h1, Mexican tariff item 8418.99.x1 from any other tariff item. A change to subheading 8418.99 from any other heading. A change to subheadings 8419.11 through 8419.89 from any other heading; or A change to subheadings 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) b) 8419.90 60% where the transaction value method is used; or 50% where the net cost method is used. 60% where the transaction value method is used; or 50% where the net cost method is used.

A change to subheading 8418.91 from any other subheading.

8418.99 8419.11-8419.89

A change to subheading 8419.90 from any other heading; or A change to subheading 8419.90 from within 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) b) 60% where the transaction value method is used; or 50% where the net cost method is used.

8420.10

A change to subheading 8420.10 from any other heading; or

A change to subheadings 8420.10 from any of subheadings 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) b) 8420.91-8420.99 8421.11 60% where the transaction value method is used; or 50% where the net cost method is used.

A change to subheadings 8420.91 through 8420.99 from any other heading. A change to subheading 8421.11 from any other heading; or A change 8421.91, from any regional a) b) to subheading 8421.11 from subheading whether or not there is also a change other heading, provided there is a value content of not less than: 60% where the transaction value method is used; or 50% 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.a1, 8421.91.a2 or 8537,10.a1, U.S. tariff item 8421.91.h1, 8421.91.h2 or 8537.10.h1, Mexican tariff item 8421.91.x1, 8421.91.x2 or 8537.10.x1. A change to subheadings 8421.19 through 8421.39 from any other heading; or A change to subheadings 8421.19 through 8421.39 from any of subheadings 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) b) 60% where the transaction value method is used; or 50% where the net cost method is used.

8421.19-8421.39

8421.91 8421.91.a1 A change to Canadian tariff item 8421.91.a1, U.S. tariff item 8421.91.h1, Mexican tariff item 8421.91.x1 from any other tariff item.

8421.91.a2

A change to Canadian tariff item 8421.91.a2, U.S. tariff item 8421.91.h2, Mexican tariff item 8421.91.x2 from any other tariff item. A change to subheading 8421.91 from any other heading. A change to subheading 8421.99 from any other heading; or A change to subheading 8421.99 from within subheading 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) b) 60% where the transaction value method is used; or 50% where the net cost method is used.

8421.91 8421.99

8422.11

A change to subheading 8422.11 from any other subheading, except from Canadian tariff item 8422.90.a1, 8422.90.a2 or 8537.10.a1, U.S. tariff item 8422.90.h1, 8422.90.h2 or 8537.10.h1, Mexican tariff item 8422.90.x1. 8422.90.x2 or 8537.10.x1, or from water circulation systems incorporating a pump, whether or not motorized, and auxiliary apparatus for controlling, filtering, or dispersing a spray. A change to subheadings 8422.19 through 8422.40 from any other heading; or A change to subheadings 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) b) 60% where the transaction value method is used; or 50% where the net cost method is used.

8422.19-8422.40

8422.90 8422.90.a1 A change to Canadian tariff item 8422.90.a1, U.S. tariff item 8422.90.h1, Mexican tariff item 8422.90.x1 from any other tariff item. A change to Canadian tariff item 8422.90.a2, U.S. tariff item 8422.90.h2, Mexican tariff item 8422.90.h2 from any

8422.90.a2

other tariff item. 8422.90 8423.10-8423.89 A change to subheading 8422.90 from any other heading. A change to subheadings 8423.10 through 8423.89 from any other heading; or A change to subheadings 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) b) 8423.90 8424.10-8424.89 60% where the transaction value method is used; or 50% where the net cost method is used.

A change to subheading 8423.90 from any other heading. A change to subheadings 8424.10 through 8424.89 from any other heading; or A change to subheadings 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) b) 60% where the transaction value method is used; or 50% where the net cost method is used.

8424.90 84.25-84.26

A change to subheading 8424.90 from any other heading. A change to headings 84.25 through 84.26 from any other heading, except from heading 84.31; or A change to headings 84.25 through 84.26 from heading 84.31, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) b) 60% where the transaction value method is used; or 50% where the net cost method is used.

8427.10 8427.10.a1 A change to Canadian tariff item

8427.10.a1, U.S. tariff item 8427.10.h1, Mexican tariff item 8427.10.x1 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 8427.10.a1, U.S. tariff item 8427.10.h1, Mexican tariff item 8427.10.x1 from any of headings 84.07 or 84.08 or subheadings 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) b) 8427.10 60% where the transaction value method is used; or 50% where the net cost method is used.

A change to subheading 8427.10 from any other heading, except from subheading 8431.20; or A change 8431.20, from any regional a) b) to subheading 8427.10 from subheading whether or not there is also a change other heading, provided there is a value content of not less than: 60% where the transaction value method is used; or 50% where the net cost method is used.

8427.20 8427.20.a1 A change to Canadian tariff item 8427.20.a1, U.S. tariff item 8427.20.h1, Mexican tariff item 8427.20.x1 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.a1, U.S. tariff item 8427.20.h1, Mexican tariff item 8427.20.x1 from any of headings 84.07 or 84.08 or subheadings 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) b) 8427.20 60% where the transaction value method is used; or 50% where the net cost method is used.

A change to subheading 8427.20 from any other heading, except from subheading 8431.20; or

A change 8431.20, from any regional a) b) 8427.90

to subheading 8427.20 from subheading whether or not there is also a change other heading, provided there is a value content of not less than: 60% where the transaction value method is used; or 50% where the net cost method is used.

A change to subheading 8427.90 from any other heading, except from subheading 8431.20; or A change 8431.20, from any regional a) b) to subheading 8427.90 from subheading whether or not there is also a change other heading, provided there is a value content of not less than: 60% where the transaction value method is used; or 50% where the net cost method is used.

84.28-84.30

A change to headings 84.28 through 84.30 from any other heading outside that group, except from heading 84.31; or A change to headings 84.28 through 84.30 from heading 84.31, 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) b) 60% where the transaction value method is used; or 50% where the net cost method is used.

8431.10

A change to subheading 8431.10 from any other heading; or A change to subheading 8431.10 from within subheading 8431.10, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) b) 60% where the transaction value method is used; or 50% where the net cost method is used.

8431.20 8431.31

A change to subheading 8431.20 from any other heading outside that group. A change to subheading 8431.31 from any other heading; or

A change to subheading 8431.31 from within subheading 8431.31, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) b) 60% where the transaction value method is used; or 50% where the net cost method is used.

8431.39

A change to subheading 8431.39 from any other heading; or A change to subheading 8431.39 from within subheading 8431.39, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) b) 60% where the transaction value method is used; or 50% where the net cost method is used.

8431.41-8431.42 8431.43

A change to subheadings 8431.41 through 8431.42 from any other heading. A change to subheading 8431.43 from any other heading; or A change to subheading 8431.43 from within subheading 8431.43, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) b) 60% where the transaction value method is used; or 50% where the net cost method is used.

8431.49

A change to subheading 8431.49 from any other heading; or A change to subheading 8431.49 from within subheading 8431.49, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) b) 60% where the transaction value method is used; or 50% 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 subheadings 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) b) 60% where the transaction value method is used; or 50% where the net cost method is used.

8432.90 8433.11-8433.60

A change to subheading 8432.90 from any other heading. A change to subheadings 8433.11 through 8433.60 from any other heading; or A change to subheadings 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) b) 60% where the transaction value method is used; or 50% where the net cost method is used.

8433.90 8434.10-8434.20

A change to subheading 8433.90 from any other heading. A change to subheadings 8434.10 through 8434.20 from any other heading; or A change to subheadings 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) b) 60% where the transaction value method is used; or 50% where the net cost method is used.

8434.90 8435.10

A change to subheading 8434.90 from any other heading. 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) b) 8435.90 8436.10-8436.80 60% where the transaction value method is used; or 50% where the net cost method is used.

A change to subheading 8435.90 from any other heading. A change to subheadings 8436.10 through 8436.80 from any other heading; or A change to subheadings 8436.10 through 8436.80 from any of subheadings 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) b) 60% where the transaction value method is used; or 50% where the net cost method is used.

8436.91-8436.99 8437.10-8437.80

A change to subheadings 8436.91 through 8436.99 from any other heading. A change to subheadings 8437.10 through 8437.80 from any other heading; or A change to subheadings 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) b) 60% where the transaction value method is used; or 50% where the net cost method is used.

8437.90 8438.10-8438.80

A change to subheading 8437.90 from any other heading. A change to subheadings 8438.10 through 8438.80 from any other heading; or A change to subheadings 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% where the transaction value method is used; or

b) 8438.90 8439.10-8439.30

50% where the net cost method is used.

A change to subheading 8438.90 from any other heading. A change to subheadings 8439.10 through 8439.30 from any other heading; or A change to subheadings 8439.10 through 8439.30 from any of subheadings 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) b) 60% where the transaction value method is used; or 50% where the net cost method is used.

8439.91-8439.99 8440.10

A change to subheadings 8439.91 through 8439.99 from any other heading. A change to subheading 8440.10 from any other heading; or A change 8440.90, from any regional a) b) to subheading 8440.10 from subheading whether or not there is also a change other heading, provided there is a value content of not less than: 60% where the transaction value method is used; or 50% where the net cost method is used.

8440.90 8441.10-8441.80

A change to subheading 8440.90 from any other heading. A change to subheadings 8441.10 through 8441.80 from any other heading; or A change to subheadings 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) b) 60% where the transaction value method is used; or 50% where the net cost method is used.

8441.90

A change to subheading 8441.90 from any other heading; or

A change to subheading 8441.90 from within 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) b) 8442.10-8442.30 60% where the transaction value method is used; or 50% where the net cost method is used.

A change to subheadings 8442.10 through 8442.30 from any other heading; or A change to subheadings 8442.10 through 8442.30 from any of subheadings 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) b) 60% where the transaction value method is used; or 50% where the net cost method is used.

8442.40-8442.50 8443.11-8443.50

A change to subheadings 8442.40 through 8442.50 from any other heading. A change to subheadings 8443.11 through 8443.50 from any other heading; or A change to subheadings 8443.11 through 8443.50 from any of subheadings 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) b) 60% where the transaction value method is used; or 50% where the net cost method is used.

8443.60

A change to subheading 8443.60 from any other heading; or A change 8443.90, from any regional a) b) to subheading 8443.60 from subheading whether or not there is also a change other heading, provided there is a value content of not less than: 60% where the transaction value method is used; or 50% 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 headings 84.44 through 84.47 from any other heading outside that group, except from heading 84.48; or A change to headings 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) b) 8448.11-8448.19 60% where the transaction value method is used; or 50% where the net cost method is used.

A change to subheadings 8448.11 through 8448.19 from any other heading; or A change to subheadings 8448.11 through 8448.19 from any of subheadings 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) b) 60% where the transaction value method is used; or 50% where the net cost method is used.

8448.20-8448.59 84.49 8450.11-8450.20

A change to subheadings 8448.20 through 8448.59 from any other heading. A change to heading 84.49 from any other heading. A change to subheadings 8450.11 through 8450.20 from any other subheading outside that group, except from Canadian tariff item 8450.90.a1, 8450.90.a2 or 8537.10.a1, U.S. tariff item 8450.90.h1, 8450.90.h2 or 8537.10.h1, Mexican tariff item 8450.90.x1, 8450.90.x2 or 8537.10.x1, or from washer assemblies incorporating at least two of the following: agitator, motor, transmission, clutch.

8450.90 8450.90.a1 A change to Canadian tariff item 8450.90.a1, U.S. tariff item 8450.90.h1, Mexican tariff item 8450.90.x1 from any other tariff item. A change to Canadian tariff item

8450.90.a2

8450.90.a2, U.S. tariff item 8450.90.h2, Mexican tariff item 8450.90.x2 from any other tariff item. 8450.90 8451.10 A change to subheading 8450.90 from any other heading. A change to subheading 8451.10 from any other heading; or A change to subheadings 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) b) 60% where the transaction value method is used; or 50% where the net cost method is used.

8451.21-8451.29

A change to subheadings 8451.21 through 8451.29 from any other subheading outside that group, except from Canadian tariff item 8451.90.a1 or 8451.90.a2, U.S. tariff item 8451.90.h1 or 8451.90.h2, Mexican tariff item 8451.90.x1 or 8451.90.x2, or subheading 8537.10. A change to subheadings 8451.30 through 8451.80 from any other heading; or A change to subheadings 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) b) 60% where the transaction value method is used; or 50% where the net cost method is used.

8451.30-8451.80

8451.90 8451.90.a1 A change to Canadian tariff item 8451.90.a1, U.S. tariff item 8451.90.h1, Mexican tariff item 8451.90.x1 from any other tariff item. A change to Canadian tariff item 8451.90.a2, U.S. tariff item 8451.90.h2, Mexican tariff item 8451.90.x2 from any other tariff item. A change to subheading 8451.90 from any other

8451.90.a2

8451.90

heading. 8452.10-8452.30 A change to subheadings 8452.10 through 8452.30 from any other heading; or A change to subheadings 8452.10 through 8452.30 from any of subheadings 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) b) 8452.40-8452.90 8453.10-8453.80 60% where the transaction value method is used; or 50% where the net cost method is used.

A change to subheadings 8452.40 through 8452.90 from any other heading. A change to subheadings 8453.10 through 8453.80 from any other heading; or A change to subheadings 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) b) 60% where the transaction value method is used; or 50% where the net cost method is used.

8453.90 8454.10-8454.30

A change to subheading 8453.90 from any other heading. A change to subheadings 8454.10 through 8454.30 from any other heading; or A change to subheadings 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) b) 60% where the transaction value method is used; or 50% where the net cost method is used.

8454.90 8455.10-8455.22

A change to subheading 8454.90 from any other heading. A change to subheadings 8455.10 through 8455.22 from any other subheading outside that group, except from Canadian tariff item 8455.90.a1, U.S. tariff item

8455.90.h1, Mexican tariff item 8455.90.x1. 8455.30 A change to subheading 8455.30 from any other heading; or A change to subheadings 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) b) 8455.90 8456.10 60% where the transaction value method is used; or 50% where the net cost method is used.

A change to subheading 8455.90 from any other heading. A change to subheading 8456.10 from any other heading, except from more than one of the following: o o o Canadian tariff item 8466.93.a1, U.S. tariff 8466.93.h1, Mexican tariff item 8466.93.x1, subheading 8537.10, subheading 9013.20.

8456.20-8456.90

A change to subheadings 8456.20 through 8456.90 from any other heading, except from more than one of the following: o o o o subheadings 8413.50 through 8413.60, Canadian tariff item 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1, 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: o o o o subheadings 8413.50 through 8413.60, Canadian tariff item 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1, 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: o subheadings 8413.50 through 8413.60,

o o o 8458.19

Canadian tariff item 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1, subheading 8501.32 or 8501.52, subheading 8537.10.

A change to subheading 8458.19 from any other heading, except from Canadian tariff 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1 or subheading 8501.32 or 8501.52. A change to subheading 8458.91 from any other heading, except from more than one of the following: o o o o subheadings 8413.50 through 8413.60, Canadian tariff item 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1, subheading 8501.32 or 8501.52, subheading 8537.10.

8458.91

8458.99

A change to subheading 8458.99 from any other heading, except from Canadian tariff 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1 or subheading 8501.32 or 8501.52. A change to subheading 8459.10 from any other heading, except from Canadian tariff 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1 or subheading 8501.32 or 8501.52. A change to subheading 8459.21 from any other heading, except from more than one of the following: o o o o subheadings 8413.50 through 8413.60, Canadian tariff item 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1, subheading 8501.32 or 8501.52, subheading 8537.10; or

8459.10

8459.21

A change to subheading 8459.21 from more than one of the following: o o o o subheadings 8413.50 through 8413.60, Canadian tariff item 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1, 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) b) 8459.29 60% where the transaction value method is used; or 50% where the net cost method is used.

A change to subheading 8459.29 from any other heading, except from Canadian tariff 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1 or subheading 8501.32 or 8501.52. A change to subheading 8459.31 from any other heading, except from more than one of the following: o o o o subheadings 8413.50 through 8413.60, Canadian tariff item 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1, subheading 8501.32 or 8501.52, subheading 8537.10; or

8459.31

A change to subheading 8459.31 from more than one of the following: o o o o subheadings 8413.50 through 8413.60, Canadian tariff item 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1, 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) b) 8459.39 60% where the transaction value method is used; or 50% where the net cost method is used.

A change to subheading 8459.39 from any other heading, except from Canadian tariff 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1 or subheading 8501.32 or 8501.52. A change to subheadings 8459.40 through 8459.51 from any other heading, except from more than one of the following: o o subheadings 8413.50 through 8413.60, Canadian tariff item 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican

8459.40-8459.51

o o

tariff item 8466.93.x1, subheading 8501.32 or 8501.52, subheading 8537.10; or

A change to subheadings 8459.40 through 8459.51 from more than one of the following: o o o o subheadings 8413.50 through 8413.60, Canadian tariff item 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1, 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) b) 8459.59 60% where the transaction value method is used; or 50% where the net cost method is used.

A change to subheading 8459.59 from any other heading, except from Canadian tariff 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1 or subheading 8501.32 or 8501.52. A change to subheading 8459.61 from any other heading, except from more than one of the following: o o o o subheadings 8413.50 through 8413.60, Canadian tariff item 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1, subheading 8501.32 or 8501.52, subheading 8537.10; or

8459.61

A change to subheading 8459.61 from more than one of the following: o o o o subheadings 8413.50 through 8413.60, Canadian tariff item 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1, 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) b) 60% where the transaction value method is used; or 50% 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.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1 or subheading 8501.32 or 8501.52.

8459.70 8459.70.a1 A change to Canadian tariff item 8459.70.a1, U.S. tariff item 8459.70.h1, Mexican tariff item 8459.70.x1 from any other heading, except from more than one of the following: o o o o subheadings 8413.50 through 8413.60, Canadian tariff item 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1, subheading 8501.32 or 8501.52, subheading 8537.10; or

A change to Canadian tariff item 8459.70.a1, U.S. tariff item 8459.70.h1, Mexican tariff item 8459.70.x1 from more than one of the following: o o o o subheadings 8413.50 through 8413.60, Canadian tariff item 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1, 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) b) 8459.70 60% where the transaction value method is used; or 50% where the net cost method is used.

A change to subheading 8459.70 from any other heading, except from Canadian tariff 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1 or subheading 8501.32 or 8501.52. A change to subheading 8460.11 from any other heading, except from more than one of the following: o o subheadings 8413.50 through 8413.60, Canadian tariff item 8466.93.a1,

8460.11

o o 8460.19

U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1, subheading 8501.32 or 8501.52, subheading 8537.10.

A change to subheading 8460.19 from any other heading, except from Canadian tariff 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1 or subheading 8501.32 or 8501.52. A change to subheading 8460.21 from any other heading, except from more than one of the following: o o o o subheadings 8413.50 through 8413.60, Canadian tariff item 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1, subheading 8501.32 or 8501.52, subheading 8537.10.

8460.21

8460.29

A change to subheading 8460.29 from any other heading, except from Canadian tariff 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1 or subheading 8501.32 or 8501.52. A change to subheading 8460.31 from any other heading, except from more than one of the following: o o o o subheadings 8413.50 through 8413.60, Canadian tariff item 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1, subheading 8501.32 or 8501.52, subheading 8537.10.

8460.31

8460.39

A change to subheading 8460.39 from any other heading, except from Canadian tariff 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1 or subheading 8501.32 or 8501.52.

8460.40 8460.40.a1 A change to Canadian tariff item 8460.40.a1, U.S. tariff item 8460.40.h1, Mexican tariff item 8460.40.x1 from any other heading, except from more than one of the following: o o subheadings 8413.50 through 8413.60, Canadian tariff item 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1,

o o 8460.40

subheading 8501.32 or 8501.52, subheading 8537.10.

A change to subheading 8460.40 from any other heading, except from Canadian tariff 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1 or subheading 8501.32 or 8501.52.

8460.90 8460.90.a1 A change to Canadian tariff item 8460.90.a1, U.S. tariff item 8460.90.h1, Mexican tariff item 8460.90.x1 from any other heading, except from more than one of the following: o o o o 8460.90 subheadings 8413.50 through 8413.60, Canadian tariff item 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1, subheading 8501.32 or 8501.52, subheading 8537.10.

A change to subheading 8460.90 from any other heading, except from Canadian tariff 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1 or subheading 8501.32 or 8501.52.

8461.10 8461.10.a1 A change to Canadian tariff item 8461.10.a1, U.S. tariff item 8461.10.h1, Mexican tariff item 8461.10.x1 from any other heading, except from more than one of the following: o o o o 8461.10 subheadings 8413.50 through 8413.60, Canadian tariff item 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1, subheading 8501.32 or 8501.52, subheading 8537.10.

A change to subheading 8461.10 from any other heading, except from Canadian tariff item 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.83.x1.

8461.20 8461.20.a1 A change to Canadian tariff item 8461.20.a1, US. tariff item 8461.20.h1, Mexican tariff item 8461.20.x1 from any other heading, except from more than one of the following:

o o o o 8461.20

subheadings 8413.50 through 8413.60, Canadian tariff item 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1, subheading 8501.32 or 8501.52, subheading 8537.10.

A change to subheading 8461.20 from any other heading, except from Canadian tariff item 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.83.x1.

8461.30 8461.30.a1 A change to Canadian tariff item 8461.30.a1, U.S. tariff item 8461.30.h1, Mexican tariff item 8461.30.x1 from any other heading, except from more than one of the following: o o o o 8461.30 subheadings 8413.50 through 8413.60, Canadian tariff item 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1, subheading 8501.32 or 8501.52, subheading 8537.10.

A change to subheading 8461.30 from any other heading, except from Canadian tariff item 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1. A change to subheading 8461.40 from any other heading, except from Canadian tariff item 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1.

8461.40

8461.50 8461.50.a1 A change to Canadian tariff item 8461.50.a1, U.S. tariff item 8461.50.h1, Mexican tariff item 8461.50.x1 from any other heading, except from more than one of the following: o o o o 8461.50 subheadings 8413.50 through 8413.60, Canadian tariff item 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1, subheading 8501.32 or 8501.52, subheading 8537.10.

A change to subheading 8461.50 from any other heading, except from Canadian tariff item 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1.

8461.90 8461.90.a1 A change to Canadian tariff item 8461.90.a1, U.S. tariff item 8461.90.h1, Mexican tariff item 8461.90.x1 from any other heading, except from more than one of the following: o o o o 8461.90 subheadings 8413.50 through 8413.60, Canadian tariff item 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1, subheading 8501.32 or 8501.52, subheading 8537.10.

A change to subheading 8461.90 from any other heading, except from Canadian tariff item 8466.93.a1, U.S. tariff item 8466.93.h1, Mexican tariff item 8466.93.x1. A change to subheading 8462.10 from any other heading, except from Canadian tariff item 8466.94.a1, U.S. tariff item 8466.94.h1, Mexican tariff item 8466.94.x1. A change to subheading 8462.21 from any other heading, except from more than one of the following: o o o o subheadings 8413.50 through 8413.60, Canadian tariff item 8466.94.a1, U.S. tariff item 8466.94.h1, Mexican tariff item 8466.94.x1, subheading 8501.32 or 8501.52, subheading 8537.10.

8462.10

8462.21

8462.29

A change to subheading 8462.29 from any other heading, except from Canadian tariff item 8466.94.a1, U.S. tariff item 8466.94.h1, Mexican tariff item 8466.94.x1. A change to subheading 8462.31 from any other heading, except from more than one of the following: o o o o subheadings 8413.50 through 8413.60, Canadian tariff item 8466.94.a1, U.S. tariff item 8466.94.h1, Mexican tariff item 8466.94.x1, subheading 8501.32 or 8501.52, subheading 8537.10.

8462.31

8462.39

A change to subheading 8462.29 from any other heading, except from Canadian tariff item 8466.94.a1, U.S. tariff item 8466.94.h1, Mexican tariff item 8466.94.x1.

8462.41

A change to subheading 8462.41 from any other heading, except from more than one of the following: o o o o subheadings 8413.50 through 8413.60, Canadian tariff item 8466.94.a1, U.S. tariff item 8466.94.h1, Mexican tariff item 8466.94.x1, 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.a1, U.S. tariff item 8466.94.h1, Mexican tariff item 8466.94.x1.

8462.91 8462.91.a1 A change to Canadian tariff item 8462.91.a1, U.S. tariff item 8462.91.h1, 8462.91.x1 from any other heading, except from more than one of the following: o o o o 8462.91 subheadings 8413.50 through 8413.60, Canadian tariff item 8466.94.a1, U.S. tariff item 8466.94.h1, Mexican tariff item 8466.94.x1, subheading 8501.32 or 8501.52, subheading 8537.10.

A change to subheading 8462.91 from any other heading, except from Canadian tariff item 8466.94.a1, U.S. tariff item 8466.94.h1, Mexican tariff item 8466.94.x1.

8462.99 8462.99.a1 A change to Canadian tariff item 8462.99.a1, U.S. tariff item 8462.99.h1, Mexican tariff item 8462.99.x1 from any other heading, except from more than one of the following: o o o o 8462.99 subheadings 8413.50 through 8413.60, Canadian tariff item 8466.94.a1, U.S. tariff item 8466.94.h1, Mexican tariff item 8466.94.x1, subheading 8501.32 or 8501.52, subheading 8537.10.

A change to subheading 8462.99 from any other heading, except from Canadian tariff item 8466.94.a1, U.S. tariff item 8466.94.h1, Mexican tariff item 8466.94.x1. A change to heading 84.63 from any other

84.63

heading, except from Canadian tariff 8466.94.a1, U.S. tariff item 8466.94.h1, Mexican tariff item 8466.94.x1 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 8466.91, from any regional a) b) 84.65 to heading 84.64 from subheading whether or not there is also a change other heading, provided there is a value content of not less than: 60% where the transaction value method is used; or 50% where the net cost method is used.

A change to heading 84.65 from any other heading, except from subheading 8466.92; or A change 8466.92, from any regional a) b) to heading 84.65 from subheading whether or not there is also a change other heading, provided there is a value content of not less than: 60% where the transaction value method is used; or 50% where the net cost method is used.

84.66 8467.11-8467.89

A change to heading 84.66 from any other heading. A change to subheadings 8467.11 through 8467.89 from any other heading; or A change to subheadings 8467.11 through 8467.89 from any of subheadings 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) b) 60% where the transaction value method is used; or 50% where the net cost method is used.

8467.91-8467.99 8468.10-8468.80

A change to subheadings 8467.91 through 8467.99 from any other heading. A change to subheadings 8468.10 through 8468.80 from any other heading; or

A change to subheadings 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) b) 8468.90 84.69 8469.10.a1 A change to Canadian tariff item 8469.10.20, U.S.tariff item 8469.10.h1, Mexican tariff item 8469.10.x1 from any other heading, except from heading 84.73; or A change to Canadian tariff item 8469.10.a1, U.S. tariff item 8469.10.h1, Mexican tariff item 8469.10.x1 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% under the net cost method. 84.69 A change to headings 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) b) 84.70 60% where the transaction value method is used; or 50% where the net cost method is used. 60% where the transaction value method is used; or 50% where the net cost method is used.

A change to subheading 8468.90 from any other heading.

A change to headings 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) b) 60% where the transaction value method is used; or 50% 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) b) 8471.20-8471.91 60% where the transaction value method is used; or 50% where the net cost method is used.

A change to subheadings 8471.20 through 8471.91 from any other subheading outside that group.

8471.92 8471.92.a1 A change to Canadian tariff item 8471.92.a1, U.S. tariff item 8471.92.h1, Mexican tariff item 8471.92.x1 from any other subheading, except from subheading 8540.30. A change to Canadian tariff item 8471.92.a2, U.S. tariff item 8471.92.h2, Mexican tariff item 8471.92.x2 from any other tariff item, except from Canadian tariff item 8473.30.a3, 8473.30.a1 or 8548.00.a1, U.S. tariff item 8473.30.h3, 8473.30.h1 or 8548.00.h1, Mexican tariff item 8473.30.x3, 8473.30.x1 or 8548.00.x1. A change to Canadian tariff item 8471.92.a3, U.S. tariff item 8471.92.h3, Mexican tariff item 8471.92.x3 from any other tariff item, except from Canadian tariff item 8473.30.a1 or 8548.00.a1, U.S. tariff item 8473.30.h1 or 8548.00.h1, Mexican tariff item 8473.30.x1 or 8548.00.x1. A change to Canadian tariff item 8471.92.a4, U.S. tariff item 8471.92.h4, Mexican tariff item 8471.92.x4 from any other tariff item, except from Canadian tariff item 8473.30.a3, 8473.30.a1 or 8548.00.a1, U.S. tariff item 8473.30.h3, 8473.30.h1 or 8548.00.h1, Mexican tariff item 8473.30.x3, 8473.30.x1 or 8548.00.x1. A change to Canadian tariff item 8471.92.a5, U.S. tariff item 8471.92.h5, Mexican tariff item 8471.92.x5 from any other tariff item, except from Canadian tariff item 8473.30.a3, U.S. tariff item

8471.92.a2

8471.92.a3

8471.92.a4

8471.92.a5

8473.30.h3, Mexican tariff item 8473.30.x3. 8471.92.a6 A change to Canadian tariff item 8471.92.a6, U.S. tariff item 8471.92.h6, Mexican tariff item 8471.92.x6 from any other tariff item, except from Canadian tariff item 8473.30.a3, U.S. tariff item 8473.30.h3, Mexican tariff item 8473.30.x3. A change to Canadian tariff item 8471.92.a7, U.S. tariff item 8471.92.h7, Mexican tariff item 8471.92.x7 from any other tariff item, except from Canadian tariff item 8473.30.a3, U.S. tariff item 8473.30.h3, Mexican tariff item 8473.30.x3. A change to subheading 8471.92 from any other subheading. A change to subheading 8471.93 from any other subheading.

8471.92.a7

8471.92 8471.93 8471.99 8471.99.a1

A change to Canadian tariff item 8471.99.a1, U.S. tariff item 8471.99.15, Mexican tariff item 8471.99.x1 from any other tariff item. A change to Canadian tariff item 8471.99.a2, U.S. tariff item 8471.99.32 or 8471.99.34, Mexican tariff item 8471.99.x2 from any other tariff item. A change to Canadian tariff item 8471.99.a3, U.S. tariff item 8471.99.60, Mexican tariff item 8471.99.x3 from any other tariff item. A change to any tariff item within subheading 8471.99 from any other tariff item, including another tariff item within that subheading. 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) b) 60% where the transaction value method is used; or 50% where the net cost method is

8471.99.a2

8471.99.a3

8471.99

84.72

used. 8473.10 8473.10.a1 A change to Canadian tariff item 8473.10.a1, U.S. tariff item 8473.10.h1, Mexican tariff item 8473.10.x1 from any other heading. A change to Canadian tariff item 8473.10.a2, U.S. tariff item 8473.10.h2, Mexican tariff item 8473.10.x2 from any other heading; or A change to Canadian tariff item 8473.10.a2, U.S. tariff item 8473.10.h2, Mexican tariff item 8473.10.x2 from within Canadian tariff item 8473.10.a2, U.S. tariff item 8473.10.h2, Mexican tariff item 8473.10.x2, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) b) 8473.21 60% where the transaction value method is used; or 50% where the net cost method is used.

8473.10.a2

A change to subheading 8473.21 from any other heading; or A change to subheading 8473.21 from within subheading 8473.21, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) b) 60% where the transaction value method is used; or 50% where the net cost method is used.

8473.29

A change to subheading 8473.29 from any other heading; or A change to subheading 8473.29 from within subheading 8473.29, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) b) 60% where the transaction value method is used; or 50% where the net cost method is used.

8473.30

8473.30.a1

A change to Canadian tariff item 8473.30.a1, U.S. tariff item 8473.30.h1, Mexican tariff item 8473.30.x1 from any other tariff item. A change to Canadian tariff item 8473.30.a2, U.S. tariff item 8473.30.h2, Mexican tariff item 8473.30.x2 from any other tariff item. A change to Canadian tariff item 8473.30.a3, U.S. tariff item 8473.30.h3, Mexican tariff item 8473.30.x3 from any other tariff item. A change to subheading 8473.30 from any other heading. A change to subheading 8473.40 from any other heading; or A change to subheading 8473.40 from within heading 8473.40, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) b) 60% where the transaction value method is used; or 50% where the net cost method is used.

8473.30.a2

8473.30.a3

8473.30 8473.40

8474.10-8474.80

A change to subheadings 8474.10 through 8474.80 from any other heading; or A change to subheadings 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) b) 60% where the transaction value method is used; or 50% where the net cost method is used.

8474.90

A change to subheading 8474.90 from any other heading; or A change to subheading 8474.90 from within 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) b)

60% where the transaction value method is used; or 50% where the net cost method is used.

8475.10-8475.20

A change to subheadings 8475.10 through 8475.20 from any other heading; or A change to subheadings 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) b) 60% where the transaction value method is used; or 50% where the net cost method is used.

8475.90 8476.11-8476.19

A change to subheading 8475.90 from any other heading. A change to subheadings 8476.11 through 8476.19 from any other heading; or A change to subheadings 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) b) 60% where the transaction value method is used; or 50% where the net cost method is used.

8476.90 8477.10

A change to subheading 8476.90 from any other heading. A change to subheading 8477.10 from any other subheading, except from Canadian tariff item 8477.90.a1, U.S. tariff item 8477.90.h1, Mexican tariff item 8477.90.x1 or from more than one of the following: o Canadian tariff item 8477.90.a2, U.S. tariff item 8477.90.h2, Mexican tariff item 8477.x2, Canadian tariff item 8537.10.a1, U.S. tariff item 8537.10.h1, Mexican tariff item 8537.10.x1.

8477.20

A change to subheading 8477.20 from any other subheading, except from Canadian tariff item

8477.90.a1, U.S. tariff item 8477.90.h1, Mexican tariff item 8477.90.x1 or from more than one of the following: o o Canadian tariff item 8477.90.a2, U.S. tariff item 8477.90.h2, Mexican tariff item 8477.x2, Canadian tariff item 8537.10.a1, U.S. tariff item 8537.10.h1, Mexican tariff item 8537.10.x1.

8477.30

A change to subheading 8477.30 from any other subheading, except from Canadian tariff item 8477.90.a1, U.S. tariff item 8477.90.h1, Mexican tariff item 8477.90.x1 or from more than one of the following: o Canadian tariff item 8477.90.a3, U.S. tariff item 8477.90.h3, Mexican tariff item 8477.90.x3, Canadian tariff item 8537.10.a1, U.S. tariff item 8537.10.h1, Mexican tariff item 8537.10.x1.

8477.40-8477.80

A change to subheadings 8477.40 through 8477.80 from any other heading; or A change to subheadings 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) b) 60% where the transaction value method is used; or 50% where the net cost method is used.

8477.90 8478.10

A change to subheading 8477.90 from any other heading. 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) b) 60% where the transaction value method is used; or 50% where the net cost method is used.

8478.90 8479.10-8479.81

A change to subheading 8478.90 from any other heading. A change to subheadings 8479.10 through 8479.81 from any other heading; or A change to subheadings 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) b) 60% where the transaction value method is used; or 50% where the net cost method is used.

8479.82 8479.82.x1 A change to Mexican tariff item 8479.82.x1 from any other tariff item, except from Canadian tariff item 8479.90.a1, 8479.90.a2, 8479.90.a3 or 8479.90.a4, U.S. tariff item 8479.90.h1, 8479.90.h2, 8479.90.h3 or 8479.90.h4, Mexican tariff item 8479.90.x1, 8479.90.x2, 8479.90.x3 or 8479.90.x4, or combinations thereof. 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) b) 8479.89 8479.89.a1 A change to Canadian tariff item 8479.89.a1, U.S. tariff item 8479.89.h1 from any other tariff item, except from Canadian tariff item 8479.90.a1, 8479.90.a2, 8479.90.a3 or 8479.90.a4, U.S. tariff item 8479.90.h1, 8479.90.h2, 8479.90.h3 or 8479.90.h4, Mexican tariff item 8479.90.x1, 8479.90.x2, 8479.90.x3 or 8479.90.x4, or combinations thereof. A change to subheading 8479.89 from any other heading; or 60% where the transaction value method is used; or 50% where the net cost method is used.

8479.82

8479.89

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) b) 8479.90 8479.90.a1 A change to Canadian tariff item 8479.90.a1, U.S. tariff item 8479.90.h1, Mexican tariff item 8479.90.x1 from any other tariff item. A change to Canadian tariff item 8479.90.a2, U.S. tariff item 8479.90.h2, Mexican tariff item 8479.90.x2 from any other tariff item. A change to Canadian tariff item 8479.90.a3, U.S. tariff item 8479.90.h3, Mexican tariff item 8479.90.x3 from any other tariff item. A change to Canadian tariff item 8479.90.a4, U.S. tariff item 8479.90.h4, Mexican tariff item 8479.90.x4 from any other tariff item. A change to subheading 8479.90 from any other heading. A change to heading 84.80 from any other heading. A change to subheadings 8481.10 through 8481.80 from any other heading; or A change to subheadings 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) b) 8481.90 60% where the transaction value method is used; or 50% where the net cost method is used. 60% where the transaction value method is used; or 50% where the net cost method is used.

8479.90.a2

8479.90.a3

8479.90.a4

8479.90 84.80 8481.10-8481.80

A change to subheading 8481.90 from any other heading.

8482.10-8482.80

A change to subheadings 8482.10 through 8482.80 from any other subheading outside that group, except from Canadian tariff item 8482.99.a1, U.S. tariff item 8482.99.h1, Mexican tariff item 8482.99.x1; or A change to subheadings 8482.10 through 8482.80 from Canadian tariff item 8482.99.a1, U.S. tariff item 8482.99.h1, Mexican tariff item 8482.99.x1, whether or not there is also a change from any other subheading, provided there is a regional value content of not less than: a) b) 60% where the transaction value method is used; or 50% where the net cost method is used.

8482.91-8482.99 8483.10

A change to subheadings 8482.91 through 8482.99 from any other heading. A change to subheading 8483.10 from any other heading; or A change to subheadings 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) b) 60% where the transaction value method is used; or 50% where the net cost method is used.

8483.20

A change to subheading 8483.20 from any other subheading, except from subheadings 8482.10 through 8482.80, Canadian tariff item 8482.99.a1, U.S. tariff item 8482.90.h1, Mexican tariff item 8482.90.x1 or subheading 8483.90; or A change to subheadings 8483.20 from any of subheadings 8482.10 through 8482.80, Canadian tariff item 8482.99.a1, U.S. tariff item 8482.90.h1, Mexican tariff item 8482.90.x1 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) b) 60% where the transaction value method is used; or 50% where the net cost method is used.

8483.30

A change to subheading 8483.30 from any other heading; or A change to subheadings 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) b) 60% where the transaction value method is used; or 50% where the net cost method is used.

8483.40-8483.60

A change to subheadings 8483.40 through 8483.60 from any other subheading, except from subheadings 8482.10 through 8482.80, Canadian tariff item 8482.99.a1, U.S. tariff item 8482.99.h1, Mexican tariff item 8482.99.x1 or subheading 8483.90; or A change to subheadings 8483.40 through 8483.60 from any of subheadings 8482.10 through 8482.80, Canadian tariff item 8482.99.a1, U.S. tariff item 8482.99.h1, Mexican tariff item 8482.99.x1 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) b) 60% where the transaction value method is used; or 50% where the net cost method is used.

8483.90 84.84-84.85

A change to subheading 8483.90 from any other heading. A change to headings 84.84 through 84.85 from any other heading, including another heading within that group. 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 Canadian tariff item 8517.90.a3, U.S. tariff item 8517.90.h3, Mexican tariff item 8517.90.x3 covers the following parts of facsimile machines: (1) Control or command assemblies,

Chapter 85

Note X:

incorporating at least two of the following: printed circuit assembly; modem; hard or flexible (floppy) disc drive; keyboard; user interface; (2) Optics module assemblies, incorporating at least two of the following: optics lamp; charge couples device and appropriate optics; lenses; mirror; 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; Ink jet marking assemblies, incorporating at least two of the following: thermal print head; ink dispensing unit; nozzle and reservoir unit; ink heater; Thermal transfer imaging assemblies, incorporating at least two of the following: thermal print head; cleaning unit; supply or take-up roller; 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; Image fixing assemblies, incorporating at least two of the following: fuser; pressure roller; heating element; release oil dispenser; cleaning unit; electrical control; Paper handling assemblies, incorporating at least two of the following: paper transport belt; roller; print bar; carriage; gripper roller; paper storage unit; exit tray; Combinations of the above specified assemblies.

(3)

(4)

(5)

(6)

(7)

(8)

(9)

Note Y:

For the purposes of this Chapter, references to "high definition" as it applies to television receivers and cathode-ray tubes refers to goods having:

(1) (2)

an aspect ratio of the screen equal to or greater than 16:9; and a viewing screen capable of displaying more than 700 scanning lines.

For the purposes of this Chapter, 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 Z: Canadian tariff item 8529.90.a3, U.S. tariff item 8529.90.h3, Mexican tariff item 8529.90.x3 covers the following parts of television receivers: (1) (2) (3) (4) (5) Video intermediate (IF) amplifying and detecting systems; Video processing and amplification systems; Synchronizing and deflection circuitry; Tuners and tuner control systems; Audio detection and amplification systems.

Note XX:

For the purposes of Canadian tariff item 8540.91.a1, U.S. tariff item 8540.91.h1, Mexican tariff item 8540.91.x1, 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 colour 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. A change to heading 85.01 from any other heading, except from Canadian tariff item 8503.00.a1, U.S. tariff item 8503.00.h1, Mexican tariff item 8503.00.x1; or A change to heading 85.01 from Canadian tariff item 8503.00.a1, U.S. tariff item 8503.00.h1, Mexican tariff item 8503.00.x1, whether or not there is also a change from any other heading, provided there is a regional value content of not less than:

85.01

a) b) 85.02

60% where the transaction value method is used; or 50% where the net cost method is used.

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 any of headings 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) b) 60% where the transaction value method is used; or 50% where the net cost method is used.

85.03 8504.10-8504.34

A change to heading 85.03 from any other heading. A change to subheadings 8504.10 through 8504.34 from any other heading; or A change to subheadings 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) b) 60% where the transaction value method is used; or 50% where the net cost method is used.

8504.40.a1

A change to Canadian tariff item 8504.40.a1, U.S. tariff item 8504.40.h1, Mexican tariff item 8504.40.x1 from any other subheading. A change to Canadian tariff item 8504.40.a2, U.S. tariff item 8504.40.h2, Mexican tariff item 8504.40.x2 from any other subheading, except from Canadian tariff item 8504.90.a1, U.S. tariff item 8504.40.h1, Mexican tariff item 8504.40.x1. A change to subheading 8504.40 from any other heading; or A change to subheadings 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

8504.40.a2

8504.40

not less than: a) b) 8504.50 60% where the transaction value method is used; or 50% where the net cost method is used.

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) b) 60% where the transaction value method is used; or 50% where the net cost method is used.

8504.90 8504.90.a2 A change to Canadian tariff item 8504.90.a2, U.S. tariff item 8504.90.h2, Mexican tariff item 8504.90.x2 from any other tariff item. A change to subheading 8504.90 from any other heading. A change to subheadings 8505.11 through 8505.30 from any other heading;or A change to subheadings 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) b) 8505.90 8506.11-8506.20 60% where the transaction value method is used; or 50% where the net cost method is used.

8504.90 8505.11-8505.30

A change to subheading 8505.90 from any other heading. A change to subheadings 8506.11 through 8506.20 from any other heading; or A change to subheadings 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) b) 8506.90 8507.10-8507.80

60% where the transaction value method is used; or 50% where the net cost method is used.

A change to subheading 8506.90 from any other heading. A change to subheadings 8507.10 through 8507.80 from any other heading; or A change to subheadings 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) b) 60% where the transaction value method is used; or 50% where the net cost method is used.

8507.90 8508.10-8508.80

A change to subheading 8507.90 from any other heading. A change to subheadings 8508.10 through 8508.80 from any other subheading outside that group, except from heading 85.01 or Canadian tariff item 8508.90.a1, U.S. tariff item 8508.90.h1, Mexican tariff item 8508.90.x1; or A change to subheadings 8508.10 through 8508.80 from any of heading 85.01 or Canadian tariff item 8508.90.a1, U.S. tariff item 8508.90.h1, Mexican tariff item 8508.90.x1, whether or not there is also a change from any other subheading, provided there is a regional value content of not less than: a) b) 60% where the transaction value method is used; or 50% where the net cost method is used.

8508.90 8509.10-8509.40

A change to subheading 8508.90 from any other heading. A change to subheadings 8509.10 through 8509.40 from any other subheading outside that group, except from heading 85.01 or Canadian tariff item 8509.90.a1, U.S. tariff item 8509.90.h1, Mexican tariff item 8509.90.x1; or

A change to subheadings 8509.10 through 8509.40 from any of heading 85.01 or Canadian tariff item 8509.90.a1, U.S. tariff item 8509.90.h1, Mexican tariff item 8509.90.x1, whether or not there is also a change from any other subheading, provided there is a regional value content of not less than: a) b) 8509.80 60% where the transaction value method is used; or 50% where the net cost method is used.

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) b) 60% where the transaction value method is used; or 50% where the net cost method is used.

8509.90 8510.10-8510.20

A change to subheading 8509.90 from any other heading. A change to subheadings 8510.10 through 8510.20 from any other heading; or A change to subheadings 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) b) 60% where the transaction value method is used; or 50% where the net cost method is used.

8510.90 8511.10-8511.80

A change to subheading 8510.90 from any other heading. A change to subheadings 8511.10 through 8511.80 from any other heading; or A change to subheadings 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% where the transaction value

b) 8511.90 8512.10-8512.40

method is used; or 50% where the net cost method is used.

A change to subheading 8511.90 from any other heading. A change to subheadings 8512.10 through 8512.40 from any other heading; or A change to subheadings 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) b) 60% where the transaction value method is used; or 50% where the net cost method is used.

8512.90 8513.10

A change to subheading 8512.90 from any other heading. 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) b) 60% where the transaction value method is used; or 50% where the net cost method is used.

8513.90 8514.10-8514.40

A change to subheading 8513.90 from any other heading. A change to subheadings 8514.10 through 8514.40 from any other heading; or A change to subheadings 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 content of not less than: a) b) 60% where the transaction value method is used; or 50% 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 subheadings 8515.11 through 8515.80 from any other heading; or A change to subheadings 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) b) 60% where the transaction value method is used; or 50% where the net cost method is used.

8515.90 8516.10-8516.29

A change to subheading 8515.90 from any other heading. A change to subheadings 8516.10 through 8516.29 from subheading 8516.80 or any other heading; or A change to subheadings 8516.10 through 8516.29 from subheading 8516.90, whether or not there is also a change from any of subheading 8516.80 or any other heading, provided there is a regional value content of not less than: a) b) 60% where the transaction value method is used; or 50% 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. A change to subheading 8516.32 from subheading 8516.80 or from any other heading; or A change to subheading 8516.32 from subheading 8516.90, whether or not there is also a change from any of subheading 8516.80 or any other heading, provided there is a regional value content of not less than: a) b) 60% where the transaction value method is used; or 50% where the net cost method is used.

8516.32

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.a1, U.S. tariff item 8516.90.h1,

Mexican tariff item 8516.90.x1. 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.a2, U.S. tariff item 8516.90.h2, Mexican tariff item 8516.90.x2. A change to subheading 8516.50 from any other subheading, except from Canadian tariff item 8516.90.a3 or 8516.90.a4, U.S. tariff item 8516.90.h3 or 8516.90.h4, Mexican tariff item 8516.90.x3 or 8516.90.x4.

8516.50

8516.60 8516.60.a1 A change to Canadian tariff item 8516.60.a1, U.S. tariff item 8516.60.h1, Mexican tariff item 8516.60.x1 from any other tariff item, except from Canadian tariff item 8516.90.a5, 8516.90.a6, 8516.90.a7 or 8537.10.a1, U.S. tariff item 8516.90.h5, 8516.90.h6, 8516.90.h7 or 8537.10.h1, Mexican tariff item 8516.90.x5, 8516.90.x6, 8516.90.x7 or 8537.10.x1. A change to subheading 8516.60 from any other subheading. A change to subheading 8516.71 from subheading 8516.80 or from any other heading; or A change to subheading 8516.71 from subheading 8516.90, whether or not there is also a change from any of subheading 8516.80 or any other heading, provided there is a regional value content of not less than: a) b) 8516.72 60% where the transaction value method is used; or 50% where the net cost method is used.

8516.60 8516.71

A change to subheading 8516.72 from any other subheading, except from Canadian tariff item 8516.90.a8, U.S. tariff item 8516.90.h8, Mexican tariff item 8516.90.x8 or subheading 9032.10; or A change to subheading 8516.72 from any of Canadian tariff item 8516.90.a8, U.S. tariff item 8516.90.h8, Mexican tariff item 8516.90.x8 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) b) 8516.79 60% where the transaction value method is used; or 50% where the net cost method is used.

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 any of subheading 8516.80 or any other heading, provided there is a regional value content of not less than: a) b) 60% where the transaction value method is used; or 50% 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) b) 60% where the transaction value method is used; or 50% where the net cost method is used.

8516.90 8516.90.a3 A change to Canadian tariff item 8516.90.a3, U.S. tariff item 8516.90.h3, Mexican tariff item 8516.90.x3 from any other tariff item. A change to Canadian tariff item 8516.90.a4, U.S. tariff item 8516.90.h4, Mexican tariff item 8516.90.x4 from any other tariff item. A change to Canadian tariff item 8516.90.a5, U.S. tariff item 8516.90.h5, Mexican tariff item 8516.90.x5 from any other tariff item. A change to Canadian tariff item 8516.90.a6, U.S. tariff item 8516.90.h6, Mexican tariff item 8516.90.x6 from any other tariff item.

8516.90.a4

8516.90.a5

8516.90.a6

8516.90.a7

A change to Canadian tariff item 8516.90.a7, U.S. tariff item 8516.90.h7, Mexican tariff item 8516.90.x7 from any other tariff item. A change to subheading 8516.90 from any other heading. A change to subheading 8517.10 from any other subheading, except from Canadian tariff item 8517.90.a1, U.S. tariff item 8517.90.04, Mexican tariff item 8517.90.x1. A change to subheading 8517.20 from any other subheading, provided that, with respect to printed circuit assemblies (PCAs) of Canadian tariff item 8517.90.a1 or 8473.30.a1, U.S. tariff item 8517.90.04 or 8473.30.h1, Mexican tariff item 8517.90.x1 or 8473.30.x1: 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 if the good contains less than three PCAs, all of the PCAs must be originating PCAs.

8516.90 8517.10

8517.20

b)

8517.30

A change to subheading 8517.30 from any other subheading, provided that, with respect to printed circuit assemblies (PCAs) of Canadian tariff item 8517.90.a1 or 8473.30.a1, U.S. tariff item 8517.90.04 or 8473.30.h1, Mexican tariff item 8517.90.x1 or 8473.30.x1: 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 if the good contains less than three PCAs, all of the PCAs must be originating PCAs.

b)

8517.40 8517.40.a2 A change to Canadian tariff item 8517.40.a2, U.S. tariff item 8517.40.h2, Mexican tariff item 8517.40.x2 from any other subheading, provided that, with respect to printed circuit assemblies

(PCAs) of Canadian tariff item 8517.90.a1 or 8473.30.a1, U.S. tariff item 8517.90.04 or 8473.30.h1, Mexican tariff item 8517.90.x1 or 8473.30.x1: 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 if the good contains less than three PCAs, all of the PCAs must be originating PCAs.

b)

8517.40 8517.81 8517.81.x1

A change to subheading 8517.40 from any other subheading.

A change to Mexican tariff item 8517.81.x1 from any other tariff item, except from Canadian tariff item 8517.90.a3, U.S. tariff item 8517.90.h3, Mexican tariff item 8517.90.x3. A change to subheading 8517.81 from any other subheading, provided that, with respect to printed circuit assemblies (PCAs) of Canadian tariff item 8517.90.a1 or 8473.30.a1, U.S. tariff item 8517.90.04 or 8473.30.h1, Mexican tariff item 8517.90.x1 or 8473.30.x1: 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 if the good contains less than three PCAs, all of the PCAs must be originating PCAs.

8517.81

b)

8517.82 8517.82.a2 A change to Canadian tariff item 8517.82.a2, U.S. tariff item 8517.82.h2 from any other tariff item, except from Canadian tariff item 8517.90.a3, U.S. tariff item 8517.90.h3, Mexican tariff item 8517.90.x3. A change to subheading 8517.82 from any other subheading.

8517.82

8517.90 8517.90.a1 A change to Canadian tariff item 8517.90.a1, U.S. tariff item 8517.90.h1, Mexican tariff item 8517.90.x1 from any other tariff item, except from Canadian tariff item 8517.90.a5, U.S. tariff item 8517.90.h5, Mexican tariff item 8517.90.x5. A change to Canadian tariff item 8517.90.a2, U.S. tariff item 8517.90.h2, Mexican tariff item 8517.90.x2 from any other tariff item, provided that, with respect to printed circuit assemblies (PCAs) of Canadian tariff item 8517.90.a1 or 8473.30.a1, U.S. tariff item 8517.90.04 or 8473.30.h1, Mexican tariff item 8517.90.x1 or 8473.30.x1: 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 if the good contains less than three PCAs, all of the PCAs must be originating PCAs.

8517.90.a2

b)

8517.90.a3

A change to Canadian tariff item 8517.90.a3, U.S. tariff item 8517.90.h3, Mexican tariff item 8517.90.x3 from any other tariff item. A change to Canadian tariff item 8517.90.a4, U.S. tariff item 8517.90.h4, Mexican tariff item 8517.90.x4 from any other tariff item. A change to Canadian tariff item 8517.90.a5, U.S. tariff item 8517.90.h5, Mexican tariff item 8517.90.x5 from any other tariff item. A change to Canadian tariff item 8517.90.a6, U.S. tariff item 8517.90.h6, Mexican tariff item 8517.90.x6 from any other heading. A change to Canadian tariff item 8517.90.a7, U.S. tariff item 8517.90.h7, Mexican tariff item 8517.90.x7 from Canadian tariff item 8517.90.a6, U.S. tariff item 8517.90.h6, Mexican tariff item 8517.90.x6 or from any other

8517.90.a4

8517.90.a5

8517.90.a6

8517.90.a7

heading. 8517.90 8518.10-8518.21 A change to subheading 8517.90 from any other heading. A change to subheadings 8518.10 through 8518.21 from any other heading; or A change to subheadings 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) b) 8518.22 60% where the transaction value method is used; or 50% where the net cost method is used.

A change to subheading 8518.22 from any other heading; or A change to subheading 8518.22 from any of 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) b) 60% where the transaction value method is used; or 50% 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) b) 60% where the transaction value method is used; or 50% where the net cost method is used.

8518.30 8518.30.a1 A change to Canadian tariff item 8518.30.a1, U.S. tariff item 8518.30.10, Mexican tariff item 8518.30.x1 from any other tariff item. A change to subheading 8518.30 from any other heading; or

8518.30

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) b) 8518.40-8518.50 60% where the transaction value method is used; or 50% where the net cost method is used.

A change to subheadings 8518.40 through 8518.50 from any other heading; or A change to subheadings 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) b) 60% where the transaction value method is used; or 50% where the net cost method is used.

8518.90 8519.10-8519.99

A change to subheading 8518.90 from any other heading. A change to subheadings 8519.10 through 8519.99 from any other subheading, including another subheading within that group, except from Canadian tariff item 8522.90.a1, U.S. tariff item 8522.90.h1, 8522.90.x1. A change to subheadings 8520.10 through 8520.90 from any other subheading, including another subheading within that group, except from Canadian tariff item 8522.90.a1, U.S. tariff item 8522.90.h1, 8522.90.x1. A change to subheadings 8521.10 through 8521.90 from any other subheading, including another subheading within that group, except from Canadian tariff item 8522.90.a1, U.S. tariff item 8522.90.h1, 8522.90.x1. A change to heading 85.22 from any other heading. A change to headings 85.23 through 85.24 from any other heading, including another heading within that group. A change to subheadings 8525.10 through

8520.10-8520.90

8521.10-8521.90

85.22 85.23-85.24

8525.10-8525.20

8525.20 from any other subheading, provided that, with respect to printed circuit assemblies (PCAs) of Canadian tariff item 8529.90.a1, U.S. tariff item 8529.90.h1, Mexican tariff item 8529.90.x1: 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

if the good contains less than three PCAs, all of the PCAs must be originating PCAs. 8525.30 8525.30.a 1 A change to Canadian tariff item 8525.30.a1, U.S. tariff item 8525.30.h1, Mexican tariff item 8525.30.x1 from any other tariff item, except from Canadian tariff item 8525.30.a2, U.S. tariff item 8525.30.h2, Mexican tariff item 8525.30.x2. A change to subheading 8525.30 from any other subheading, except from Canadian tariff item 8529.90.a1, U.S. tariff item 8529.90.h1, Mexican tariff item 8529.90.x1. A change to subheading 8526.10 from any other subheading, except from subheading 8525.20, Canadian tariff item 8529.90.a2, U.S. tariff item 8529.90.h2, Mexican tariff item 8529.90.x2 or from more than two of the following: o o o subheading 8529.10, radar display unit, Canadian tariff item 8529.90.a1, U.S. tariff item 8529.90.h1, Mexican tariff item 8529.90.x1.

b)

8525.30

8526.10

8526.91-8526.92

A change to subheadings 8526.91 through 8526.92 from any other heading, except from heading 85.29; or A change to subheadings 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% where the transaction value

b) 8527.11-8527.39

method is used; or 50% where the net cost method is used.

A change to subheadings 8527.11 through 8527.39 from any other subheading, including another subheading within that group, except from Canadian tariff item 8529.90.a1, U.S. tariff item 8529.90.h1, Mexican tariff item 8529.90.x1. 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.a1, U.S. tariff item 8529.90.h1, Mexican tariff item 8529.90.x1: 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 if the good contains less than three PCAs, all of the PCAs must be originating PCAs.

8527.90

b)

8528.10 8528.10.a1 A change to Canadian tariff item 8528.10.a1, U.S. tariff item 8528.10.h1, Mexican tariff item 8528.10.x1 from any other heading, except from Canadian tariff item 8529.90.a1, U.S. tariff item 8529.90.h1, Mexican tariff item 8529.90.x1. A change to Canadian tariff item 8528.10.a2, U.S. tariff item 8528.10.h2, Mexican tariff item 8528.10.x2 from any other heading, except from Canadian tariff 8540.11.a1, U.S. tariff item 8540.11.h1, Mexican tariff item 8540.11.x1. Note: Commencing on January 1, 1999, the above rule of origin for tariff item 8528.10.a2 shall be replaced by the following: A change to Canadian tariff item 8528.10.a2, U.S. tariff item 8528.10.h2, Mexican tariff item 8528.10.x2 from any other heading, except from Canadian tariff 8540.11.a1, U.S. tariff item 8540.11.h1, Mexican tariff item

8528.10.a2

8528.10.a2

8540.11.x1 or a combination of all the specified parts of television receivers, as listed in Note Z to Chapter 85, plus a power supply. 8528.10.a3 A change to Canadian tariff item 8528.10.a3, U.S. tariff item 8528.10.h3, Mexican tariff item 8528.10.x3 from any other heading, except from Canadian tariff item 8540.12.a1, U.S. tariff item 8540.12.h1, 8540.12.x1. A change to Canadian tariff item 8528.10.a4, U.S. tariff item 8528.10.h4, Mexican tariff item 8528.10.x4 from any other heading, except from Canadian tariff 8540.11.a2, Mexican tariff 8540.11.h2, U.S. 8540.11.x2. In addition, no more than half by unit of the semiconductors of Canadian tariff item 8542.11.a1, U.S. tariff item 8542.11.h1, Mexican tariff item 8542.11.x1 may be non-originating; or A change to Canadian tariff item 8528.10.a4, U.S. tariff item 8528.10.h4, Mexican tariff item 8528.10.x4 from any other heading, except from Canadian tariff 8540.11.a2, Mexican tariff 8540.11.h2, U.S. 8540.11.x2. In addition, the regional value content must be not less than: a) b) 8528.10.a5 60% where the transaction value method is used; or 50% where the net cost method is used.

8528.10.a4

A change to Canadian tariff item 8528.10.a5, U.S. tariff item 8528.10.h5, Mexican tariff item 8528.10.x5 from any other heading, except from Canadian tariff item 8540.12.a2, Mexican tariff item 8540.12.h2, U.S. tariff item 8540.12.x2. In addition, no more than half by unit of the semiconductors of Canadian tariff item 8542.11.a1, U.S. tariff item 8542.11.h1, Mexican tariff item 8542.11.x1 may be non-originating; or A change to Canadian tariff item 8528.10.a5, U.S. tariff item 8528.10.h5, Mexican tariff item 8528.10.x5 from any other heading, except from Canadian tariff item 8540.12.a2, Mexican tariff item 8540.12.h2, U.S. tariff item 8540.12.x2. In addition, the regional value content must be not less than:

a) b) 8528.10.a6

60% where the transaction value method is used; or 50% where the net cost method is used.

A change to Canadian tariff item 8528.10.a6, U.S. tariff item 8528.10.h6, Mexican tariff item 8528.10.x6 from any other heading, except from Canadian tariff item 8529.90.a5, U.S. tariff item 8529.90.h5, Mexican tariff item 8529.90.x5. A change to subheading 8528.10 from any other heading, provided there is a regional valuecontent percentage is not less than: a) b) 60% where the transaction value method is used; or 50% where the net cost method is used.

8528.10

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.a1, U.S. tariff item 8529.90.10, Mexican tariff item 8529.90.x1: 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 if the good contains less than three PCAs, all of the PCAs must be originating PCAs.

b)

8529.10 8529.90 8529.90.a1

A change to subheading 8529.10 from any other heading.

A change to Canadian tariff item 8529.90.a1, U.S. tariff item 8529.90.h1, Mexican tariff item 8529.90.x1 from any other tariff item. A change to Canadian tariff item 8529.90.a2, U.S. tariff item 8529.90.h2, Mexican tariff item 8529.90.x2 from any other tariff item. A change to Canadian tariff item 8529.90.a3, U.S. tariff item 8529.90.h3,

8529.90.a2

8529.90.a3

Mexican tariff item 8529.90.x3 from any other tariff item. 8529.90.a4 A change to Canadian tariff item 8529.90.a4, U.S. tariff item 8529.90.h4, Mexican tariff item 8529.90.x4 from any other tariff item. A change to Canadian tariff item 8529.90.a5, U.S. tariff item 8529.90.h5, Mexican tariff item 8529.90.x5 from any other tariff item. A change to Canadian tariff item 8529.90.a6, U.S. tariff item 8529.90.h6, Mexican tariff item 8529.90.x6 from any other tariff item. A change to Canadian tariff item 8529.90.a7, U.S. tariff item 8529.90.h7, Mexican tariff item 8529.90.x7 from any other heading; or A change to Canadian tariff item 8529.90.a7, U.S. tariff item 8529.90.h7, Mexican tariff item 8529.90.x7 from within Canadian tariff item 8529.90.a7, U.S. tariff item 8529.90.h7, Mexican tariff item 8529.90.x7, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) b) 8529.90 8530.10-8530.80 60% where the transaction value method is used; or 50% where the net cost method is used.

8529.90.a5

8529.90.a6

8529.90.a7

A change to subheading 8529.90 from any other heading. A change to subheadings 8530.10 through 8530.80 from any other heading; or A change to subheadings 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 not less than: a) b) 60% where the transaction value method is used; or 50% 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.a1, U.S. tariff item 8531.90.h1, Mexican tariff item 8531.90.x3. 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) b) 60% where the transaction value method is used; or 50% where the net cost method is used.

8531.20

8531.80 8531.80.h1 A change to U.S. tariff item 8531.80.h1 from any other subheading, provided that, with respect to printed circuit assemblies (PCAs) of Canadian tariff item 8531.90.a1, U.S. tariff item 8531.90.h1, Mexican tariff item 8531.90.x1: 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 if the good contains less than three PCAs, all of the PCAs must be originating PCAs.

b)

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) b) 60% where the transaction value method is used; or 50% 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) b) 60% where the transaction value method is used; or 50% where the net cost method is used.

8532.21-8532.30

A change to subheadings 8532.21 through 8532.30 from any other subheading, including another subheading within that group. A change to subheading 8532.90 from any other heading. A change to subheadings 8533.10 through 8533.39 from any other subheading, including another subheading within that group. A change to subheading 8533.40 from any other subheading, except from Canadian tariff item 8533.90.a1, U.S. tariff item 8533.90.h1, Mexican tariff item 8533.90.x1. A change to subheading 8533.90 from any other heading. A change to heading 85.34 from any other heading.

8532.90 8533.10-8533.39

8533.40

8533.90 85.34 85.35 8535.90.a1

A change to Canadian tariff item 8535.90.a1, U.S. tariff item 8535.90.h1, Mexican tariff item 8535.90.x1 from any other tariff item, except from Canadian tariff item 8538.90.a1, U.S. tariff item 8538.90.h1, Mexican tariff item 8538.90.x1; or A change to Canadian tariff item 8535.90.a1, U.S. tariff item 8535.90.h1, Mexican tariff item 8535.90.x1 from Canadian tariff item 8535.90.a1, U.S. tariff item 8535.90.h1, Mexican tariff item 8538.90.x1, 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) b) 85.35

60% where the transaction value method is used; or 50% where the net cost method is used.

A change to heading 85.35 from any other heading, except from Canadian tariff item 8538.90.a2 or 8538.90.a3, U.S. tariff item 8538.90.h2 or 8538.90.h3, Mexican tariff item 8538.90.x2 or 8538.90.x3; or A change to heading 85.35 from any of Canadian tariff items 8538.90.a2 or 8538.90.a3, U.S. tariff items 8538.90.h2 or 8538.90.h3, Mexican tariff items 8538.90.x2 or 8538.90.x3, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) b) 60% where the transaction value method is used; or 50% where the net cost method is used.

85.36 8536.30.a1 A change to Canadian tariff item 8536.30.a1, U.S. tariff item 8536.30.h1, Mexican tariff item 8536.30.x1 from any other tariff item, except from Canadian tariff item 8538.90.a1, U.S. tariff item 8538.90.h1, Mexican tariff item 8538.90.x1; or A change to Canadian tariff item 8536.30.a1, U.S. tariff item 8536.30.h1, Mexican tariff item 8536.30.x1 from Canadian tariff item 8538.90.a1, U.S. tariff item 8538.90.h1, Mexican tariff item 8538.90.x1, 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) b) 8536.50.a1 60% where the transaction value method is used; or 50% where the net cost method is used.

A change to Canadian tariff item 8536.50.a1, U.S. tariff item 8536.50.h1, Mexican tariff item 8536.50.x1 from any other tariff item, except from Canadian tariff item 8538.90.a1, U.S. tariff item 8538.90.h1, Mexican tariff item 8538.90.x1; or

A change to Canadian tariff item 8536.50.a1, U.S. tariff item 8536.50.h1, Mexican tariff item 8536.50.x1 from Canadian tariff item 8538.90.a1, U.S. tariff item 8538.90.h1, Mexican tariff item 8538.90.x1, 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) b) 8536.90.x1 60% where the transaction value method is used; or 50% where the net cost method is used.

A change to Mexican tariff item 8536.90.x1 from any other tariff item, except from Canadian tariff item 8538.90.a1, U.S. tariff item 8538.90.h1, Mexican tariff item 8538.90.x1; or A change to Mexican tariff item 8536.90.x1 from Canadian tariff item 8538.90.a1, U.S. tariff item 8538.90.h1, Mexican tariff item 8538.90.x1, 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) b) 60% where the transaction value method is used; or 50% 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.a2 or 8538.90.a3, U.S. tariff item 8538.90.h2 or 8538.90.h3, Mexican tariff item 8538.90.x2 or 8538.90.x3; or A change to heading 85.36 from any of Canadian tariff items 8538.90.a2 or 8538.90.a3, U.S. tariff items 8538.90.h2 or 8538.90.h3, Mexican tariff items 8538.90.x2 or 8538.90.x3, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) b) 60% where the transaction value method is used; or 50% where the net cost method is used.

85.37

A change to heading 85.37 from any other heading, except from Canadian tariff item 8538.90.a2 or 8538.90.a3, U.S. tariff item 8538.90.h2 or 8538.90.h3,

Mexican tariff item 8538.90.x2 or 8538.90.x3; or A change to heading 85.37 from any of Canadian tariff items 8538.90.a2 or 8538.90.a3, U.S. tariff items 8538.90.h2 or 8538.90.h3, Mexican tariff items 8538.90.x2 or 8538.90.x3, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) b) 85.38 8539.10-8539.40 60% where the transaction value method is used; or 50% where the net cost method is used.

A change to heading 85.38 from any other heading. A change to subheadings 8539.10 through 8539.40 from any other heading; or A change to subheadings 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) b) 60% where the transaction value method is used; or 50% where the net cost method is used.

8539.90 8540.11 8540.11.a1

A change to subheading 8539.90 from any other heading.

A change to Canadian tariff item 8540.11.a1, U.S. tariff item 8540.11.h1, Mexican tariff item 8540.11.x1 from any other subheading, except from more than one of the following: o Canadian tariff item 8540.91.a1, U.S. tariff item 8540.91.11, Mexican tariff item 8540.91.x1 Canadian tariff item 7011.20.a1, U.S. tariff item 7011.20.11, Mexican tariff item 7011.20.x1.

8540.11.a2

A change to Canadian tariff item 8540.11.a2, U.S. tariff item 8540.11.h2, Mexican tariff item 8540.11.x2 from any other subheading, except from Canadian

tariff item 8540.91.a1, U.S. tariff item 8540.91.h1, Mexican tariff item 8540.91.x1. 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) b) 8540.12 8540.12.a1 A change to Canadian tariff item 8540.12.a1, U.S. tariff item 8540.12.h1, Mexican tariff item 8540.12.x1 from any other subheading, except from more than one of the following: o o Canadian tariff item 8540.91.a1, U.S. tariff item 8540.91.11, Mexican tariff item 8540.91.x1, Canadian tariff item 7011.21.a1, U.S. tariff item 7011.21.11, Mexican tariff item 7011.21.x1. 60% where the transaction value method is used; or 50% where the net cost method is used.

8540.12.a2

A change to Canadian tariff item 8540.12.a2, U.S. tariff item 8540.12.h2, Mexican tariff item 8540.12.x2 from any other subheading, except from Canadian tariff item 8540.91.a1, U.S. tariff item 8540.91.h1, Mexican tariff item 8540.91.x1. 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) b) 60% where the transaction value method is used; or 50% where the net cost method is used.

8540.12

8540.20

A change to subheading 8540.20 from any other heading; or

A change to subheading 8540.20 from any of subheadings 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) b) 8540.30 60% where the transaction value method is used; or 50% where the net cost method is used.

A change to subheading 8540.30 from any other subheading, except from Canadian tariff item 8540.91.a1, U.S. tariff item 8540.91.h1, Mexican tariff item 8540.91.x1. A change to subheadings 8540.41 through 8540.49 from any other subheading outside of that group, except from Canadian tariff item 8540.99.a1, U.S. tariff item 8540.99.h1, Mexican tariff item 8540.99.x1. A change to subheadings 8540.81 through 8540.89 from any other subheading, including another subheading within that group.

8540.41-8540.49

8540.81-8540.89

8540.91 8540.91.a1 A change to Canadian tariff item 8540.91.a1, U.S. tariff item 8540.91.11, Mexican tariff item 8540.91.x1 from any other tariff item. A change to subheading 8540.91 from any other heading.

8540.91 8540.99 8540.99.a1

A change to Canadian tariff item 8540.99.a1, U.S. tariff item 8540.99.h1, Mexican tariff item 8540.99.x1 from any other tariff item. A change to subheading 8540.99 from any other heading. Note: Notwithstanding Article 410 (Transshipment), goods qualifying under the rule below as originating goods 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

8540.99 85.41-85.42

Party, provided that such further production did not result in a change to a subheading outside of headings 85.41 and 85.42. A change to subheadings 8541.10 through 8542.90 from any other subheading, including another subheading within that group. 8543.10-8543.30 A change to subheadings 8543.10 through 8543.30 from any other heading; or A change to subheadings 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) b) 8543.80 8543.80.a1 A change to Canadian tariff item 8543.80.a1, U.S. tariff item 8543.80.h1, Mexican tariff item 8543.80.x1 from any other subheading, except from subheading 8504.40 or Canadian tariff item 8543.90.a1, U.S. tariff item 8543.90.h1, Mexican tariff item 8543.90.x1; or A change to Canadian tariff item 8543.80.a1, U.S. tariff item 8543.80.h1, Mexican tariff item 8543.80.x1 from any of subheading 8504.40 or Canadian tariff item 8543.90.a1, U.S. tariff item 8543.90.h1, Mexican tariff item 8543.90.x1, whether or not there is also a change from any other subheading, provided there is a regional value content of not less than: a) b) 8543.80 60% where the transaction value method is used; or 50% where the net cost method is used. 60% where the transaction value method is used; or 50% where the net cost method is used.

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) b) 8543.90 8544.11-8544.60

60% where the transaction value method is used; or 50% where the net cost method is used.

A change to subheading 8543.90 from any other heading. A change to subheadings 8544.11 through 8544.60 from any other subheading, except from heading 74.08, 74.13, 76.05 or 76.14; or A change to subheadings 8544.11 through 8544.60 from any of headings 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) b) 60% where the transaction value method is used; or 50% 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 any of headings 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) b) 60% where the transaction value method is used; or 50% where the net cost method is used.

85.45-85.48

A change to headings 85.45 through 85.48 from any other heading, including another heading within that group.

SECTION XVII Vehicles, Aircraft, Vessels and Associated Transport Equipment (Ch. 86-89) Chapter 86 Railway or Tramway Locomotives, RollingStock and Parts Thereof; Railway or Tramway Track Fixtures and Fittings and Parts Thereof; Mechanical (Including

Electro-Mechanical) Traffic Signalling Equipment of all Kinds 86.01-86.06 A change to headings 86.01 through 86.06 from any other heading, including another heading within that group, except from heading 86.07; or A change to headings 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) b) 8607.11-8607.12 8607.19 8607.19.11 A change to Canadian tariff item 8607.19.11, U.S. tariff item 8607.19.12, 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 8607.19.12, Mexican tariff item 8607.19.02 or 8607.19.06 from Canadian tariff item 8607.19.14, U.S. tariff item 8607.19.16, Mexican tariff item 8607.19.99, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: a) b) 8607.19.12 60% where the transaction value method is used, or 50% where the net cost method is used. 60% where the transaction value method is used, or 50% where the net cost method is used.

A change to subheadings 8607.11 through 8607.12 from any other heading.

A change to Canadian tariff item 8607.19.12, U.S. tariff item 8607.19.22, Mexican tariff item 8607.19.03 from any other heading; or A change to Canadian tariff item 8607.19.12, U.S. tariff item 8607.19.22, Mexican tariff item 8607.19.03 from Canadian tariff item 8607.19.14, U.S. tariff item 8607.19.26, Mexican tariff item 8607.19.99, 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% where the transaction value

b) 8607.19 8607.21-8607.30 8607.91-8607.99 86.08-86.09

method is used, or 50% where the net cost method is used.

A change to subheading 8607.19 from any other heading. A change to subheadings 8607.21 through 8607.30 from any other heading. A change to subheadings 8607.91 through 8607.99 from any other heading. A change to headings 86.08 through 86.09 from any other heading, including another heading within that group. Vehicles Other Than Railway or Tramway Rolling-Stock, and Parts and Accessories Thereof A change to heading 87.01 from any other heading, provided there is a regional value content of not less than 50% under the net cost method.

Chapter 87

87.01

87.02 8702.10.a1 A change to tariff item 8702.10.a1 from any other heading, provided there is a regional value content of not less than 50% under the net cost method. A change to tariff item 8702.10.a2 from any other heading, provided there is a regional value content of not less than 50% under the net cost method. A change to tariff item 8702.90.a1 from any other heading, provided there is a regional value content of not less than 50% under the net cost method. A change to tariff item 8702.90.a2 from any other heading, provided there is a regional value content of not less than 50% under the net cost method. A change to subheading 8703.10 from any other heading, provided there is a regional value content of not less than: a) b) 60% where the transaction value method is used, or 50% where the net cost method is

8702.10.a2

8702.90.a1

8702.90.a2

8703.10

used. 8703.21-8703.90 A change to subheadings 8703.21 through 8703.90 from any other heading, provided there is a regional value content of not less than 50% under the net cost method. A change to subheading 8704.10 from any other heading, provided there is a regional value content of not less than 50% under the net cost method. A change to subheading 8704.21 from any other heading, provided there is a regional value content of not less than 50% under the net cost method. A change to subheadings 8704.22 through 8704.23 from any other heading, provided there is a regional value content of not less than 50% under the net cost method. A change to subheading 8704.31 from any other heading, provided there is a regional value content of not less than 50% under the net cost method. A change to subheadings 8704.32 through 8704.90 from any other heading, provided there is a regional value content of not less than 50% under the net cost method. A change to heading 87.05 from any other heading, provided there is a regional value content of not less than 50% under the net cost method.

8704.10

8704.21

8704.22-8407.23

8704.31

8704.32-8407.90

87.05

87.06 8706.00.a1 A change to subheading 8706.00.a1 from any other chapter, provided there is a regional value content of not less than 50% under the net cost method. A change to subheading 8706.00.a2 from any other chapter, provided there is a regional value content of not less than 50% under the net cost method. 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% under the net cost method.

8706.00.a2

87.07

8708.10

A change to subheading 8708.10 from any other heading; or A change to subheading 8707.10 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% under the net cost method.

8708.21

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% under the net cost method.

8708.29

A change to subheading 8708.29 from any other heading; or A change to subheading 8708.29 from within subheading 8708.29 or 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% under the net cost method.

8708.31

A change to subheading 8708.31 from any other heading; or A change to subheading 8708.31 from any of subheadings 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% under the net cost method.

8708.39

A change to subheading 8708.39 from any other heading; or A change to subheading 8708.39 from any of subheadings 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% under the net cost method.

8708.40

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% under the net cost method.

8708.50 8708.50.a1 A change to Canadian tariff item 8708.50.a1, U.S. tariff item 8708.50.50, Mexican tariff item 8708.50.x1 from any other heading, except from subheadings 8482.10 through 8482.80; or A change to Canadian tariff item 8708.50.a1, U.S. tariff item 8708.50.50, Mexican tariff item 8708.50.x1 from any of subheadings 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% 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% under the net cost method. 8708.60 8708.60.a1 A change to Canadian tariff item 8708.60.a1, U.S. tariff item 8708.60.h1, Mexican tariff item 8708.60.x1 from any other heading, except from subheadings 8482.10 through 8482.80; or A change to Canadian tariff item 8708.60.a1, U.S. tariff item 8708.60.h1, Mexican tariff item 8708.60.x1 from any of subheadings 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% 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% under the net cost method. 8708.70 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% under the net cost method. 8708.80 8708.80.a1 A change to Canadian tariff item 8708.80.a1, U.S. tariff item 8708.80.h1, Mexican tariff item 8708.80.x1 from any other subheading, provided there is a regional value content of not less than 50% under the net cost method. 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% of the net cost method. 8708.91 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% of the net cost method. 8708.92 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% under the net cost method. 8708.93 A change to subheading 8708.93 from any other heading; or 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% under the net cost method. 8708.94 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

8708.80

not less than 50% under the net cost method. 8708.99 8708.99.a1 A change to Canadian tariff item 8708.99.a1, U.S. tariff item 8708.99.40, Mexican tariff item 8708.99.x1 from any other subheading, provided there is a regional value content of not less than 50% under the net cost method. A change to Canadian tariff item 8708.99.a2, U.S. tariff item 8708.99.h2, Mexican tariff item 8708.99.x2 from any other heading, except from subheadings 8482.10 through 8482.80 or Canadian tariff item 8482.99.a1, U.S. tariff item 8482.99.h1, Mexican tariff item 8482.99.x1; or A change to Canadian tariff item 8708.99.a2, U.S. tariff item 8708.99.h2, Mexican tariff item 8708.99.x2 from any other tariff item, whether or not there is also a change from any other heading, provided there is a regional value content of not less than 50% under the net cost method. 8708.99 A change to subheading 8708.99 from any other heading; or A change to subheading 8708.99 from within 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% under the net cost method. 8709.11-8709.19 A change to subheadings 8709.11 through 8709.29 from any other heading; or A change to subheadings 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) b) 8709.90 87.10 60% where the transaction value method is used, or 50% where the net cost method is used.

8708.99.a2

A change to subheading 8709.90 from any other heading. 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) b) 60% where the transaction value method is used, or 50% 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) b) 60% where the transaction value method is used, or 50% 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) b) 60% where the transaction value method is used, or 50% where the net cost method is used.

87.14 87.15 8716.10-8716.80

A change to heading 87.14 from any other heading. A change to heading 87.15 from any other heading. A change to subheadings 8716.10 through 8716.80 from any other heading; or A change to subheadings 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% where the transaction value method is used, or

b) 8716.90

50% where the net cost method is used.

A change to subheading 8716.90 from any other heading. Aircraft, Spacecraft, and Parts Thereof A change to subheadings 8801.10 through 8803.90 from any other subheading, including another subheading within that group. A change to headings 88.04 through 88.05 from any other heading, including another heading within that group. Ships, Boats and Floating Structures A change to headings 89.01 through 89.02 from any other chapter; or A change to headings 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) b) 60% where the transaction value method is used, or 50% where the net cost method is used.

Chapter 88 8801.10-8803.90

88.04-88.05

Chapter 89 89.01-89.02

89.03

A change to heading 89.03 from any other heading, provided there is a regional value content of not less than: a) b) 60% where the transaction value method is used, or 50% where the net cost method is used.

89.04-89.05

A change to headings 89.04 through 89.05 from any other chapter; or A change to headings 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% where the transaction value method is used, or

b)

50% where the net cost method is used.

89.06-89.08

A change to headings 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 (Ch. 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 printed circuit 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 other semiconductor devices, whether or not photosensitive, of heading 85.41, and integrated circuits and microassemblies of heading 85.42. 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. Canadian tariff item 9009.90.a1, U.S. tariff item 9009.90.h1, Mexican tariff item 9009.90.x1 covers the following parts of photo-copying apparatus: (1) Imaging assemblies for the machines of subheading 9009.12, 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; Optics assemblies for machines of subheading 9009.12, incorporating at

Note 2:

Note X:

(2)

least two of the following: lens; mirror; illumination source; document exposure glass; (3) User control assemblies for machines of subheading 9009.12, 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); Image fixing assemblies for machines of subheading 9009.12, incorporating at least two of the following: fuser; pressure roller; heating element; release oil dispenser; cleaning unit; electrical control; and Combinations of the above specified assemblies.

(4)

(5)

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 percentage of not less than: a) b) 60% where the transaction value method is used, or 50% where the net cost method is used.

9001.20-9002.90

A change to subheadings 9001.20 through 9002.90 from any other heading, including another heading within that group. A change to subheadings 9003.11 through 9003.19 from any other heading; or A change to subheadings 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 percentage of not less than: a) b) 60% where the transaction value method is used, or 50% where the net cost method is used.

9003.11-9003.19

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 within Chapter 90, whether or not there is also a change from any other chapter, provided there is a regional value content percentage of not less than: a) b) 60% where the transaction value method is used, or 50% where the net cost method is used.

9005.10-9005.80

A change to subheadings 9005.10 through 9005.80 from any other subheading, except from headings 90.01 through 90.02. A change to subheading 9005.90 from any other heading. A change to subheadings 9006.10 through 9006.69 from any other heading; or A change to subheadings 9006.10 through 9006.69 from any of subheadings 9006.91 or 9006.99, whether or not there is also a change from any other heading, provided there is a regional value content percentage of not less than: a) b) 60% where the transaction value method is used, or 50% where the net cost method is used.

9005.90 9006.10-9006.69

9006.91-9006.99 9007.11

A change to subheadings 9006.91 through 9006.99 from any other heading. 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 percentage of not less than: a) b) 60% where the transaction value method is used, or 50% where the net cost method is used.

9007.19 9007.19.a1 A change to Canadian tariff item 9007.19.a1, U.S. tariff item 9007.19.h1,

Mexican tariff item 9007.19.x1 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 percentage of not less than: a) b) 9007.21-9007.29 60% where the transaction value method is used, or 50% where the net cost method is used.

A change to subheadings 9007.21 through 9007.29 from any other heading; or A change to subheadings 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 percentage of not less than: a) b) 60% where the transaction value method is used, or 50% where the net cost method is used.

9007.91 9007.92

A change to subheading 9007.91 from any other heading. A change to subheading 9007.92 from any other heading; or A change to subheading 9007.92 from within subheading 9007.92, whether or not there is also a change from any other heading, provided there is a regional value content percentage of not less than: a) b) 60% where the transaction value method is used, or 50% where the net cost method is used.

9008.10-9008.40

A change to subheadings 9008.10 through 9008.40 from any other heading; or A change to subheadings 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 percentage of not less than:

a) b) 9008.90 9009.11 9009.12

60% where the transaction value method is used, or 50% where the net cost method is used.

A change to subheading 9008.90 from any other heading. A change to subheading 9009.11 from any other subheading. A change to subheading 9009.12 from any other tariff item, except from Canadian tariff item 9009.90.a1. A change to subheadings 9009.21 through 9009.30 from any other subheading, including another subheading within that group.

9009.21-9009.30

9009.90 9009.90.a1 A change to Canadian tariff item 9009.90.a1, U.S. tariff item 9009.90.h1, Mexican tariff item 9009.90.x1 from Canadian tariff item 9009.90.a2, U.S. tariff item 9009.90.h2, Mexican tariff item 9009.90.x2 or from any other heading, provided that at least one of the components of such assembly named in the Legal Note is originating. A change to subheading 9009.90 from any other heading. A change to subheadings 9010.10 through 9010.30 from any other heading; or A change to subheadings 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 percentage of not less than: a) b) 9010.90 9011.10-9011.80 60% where the transaction value method is used, or 50% where the net cost method is used.

9009.90 9010.10-9010.30

A change to subheading 9010.90 from any other heading. A change to subheadings 9011.10 through 9011.80 from any other heading; or A change to subheadings 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 percentage of not less than: a) b) 9011.90 9012.10 60% where the transaction value method is used, or 50% where the net cost method is used.

A change to subheading 9011.90 from any other heading. 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 percentage of not less than: a) b) 60% where the transaction value method is used, or 50% where the net cost method is used.

9012.90 9013.10-9013.80

A change to subheading 9012.90 from any other heading. A change to subheadings 9013.10 through 9013.80 from any other heading; or A change to subheadings 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 percentage of not less than: a) b) 60% where the transaction value method is used, or 50% where the net cost method is used.

9013.90 9014.10-9014.80

A change to subheading 9013.90 from any other heading. A change to subheadings 9014.10 through 9014.80 from any other heading; or A change to subheadings 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 percentage of not less than: a) 60% where the transaction value method is used, or

b) 9014.90 9015.10-9015.80

50% where the net cost method is used.

A change to subheading 9014.90 from any other heading. A change to subheadings 9015.10 through 9015.80 from any other heading; or A change to subheadings 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 percentage of not less than: a) b) 60% where the transaction value method is used, or 50% where the net cost method is used.

9015.90

A change to subheading 9015.90 from any other heading; or A change to subheading 9015.90 from within subheading 9015.90, whether or not there is also a change from any other heading, provided there is a regional value content percentage of not less than: a) b) 60% where the transaction value method is used, or 50% where the net cost method is used.

90.16 9017.10-9017.80

A change to heading 90.16 from any other heading. A change to subheadings 9017.10 through 9017.80 from any other heading; or A change to subheadings 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 percentage of not less than: a) b) 60% where the transaction value method is used, or 50% where the net cost method is used.

9017.90 9018.11 9018.11.a1

A change to subheading 9017.90 from any other heading.

A change to Canadian tariff item

9018.11.a1, U.S. tariff item 9018.11.h1, Mexican tariff item 9018.11.x1 from any other tariff item, except from Canadian tariff item 9018.11.a2, U.S tariff item 9018.11 h2, Mexican tariff item 9018.11.x2. 9018.11 9018.19 9018.19.a1 A change to Canadian tariff item 9018.19.a1, U.S. tariff item 9018.19.h1, Mexican tariff item 9018.19.x1 from any other tariff item, except from Canadian tariff item 9018.19.a2, U.S tariff item 9018.19.h2, Mexican tariff item 9018.19.x2. A change to subheading 9018.19 from any other heading. A change to subheadings 9018.20 through 9018.50 from any other heading. A change to Canadian tariff item 9018.90.a1, U.S. tariff item 9018.90.h1, Mexican tariff item 9018.90.x1 from any other tariff item, except from Canadian tariff item 9018.90.a2, U.S tariff item 9018.90.h2, Mexican tariff item 9018.90.x2. A change to subheading 9018.90 from any other heading. A change to headings 90.19 through 90.21 from any other heading. A change to subheading 9022.11 from any other subheading, except from Canadian tariff item 9022.90.a1, U.S. tariff item 9022.90.h1, Mexican tariff item 9022.90.x1. A change to subheading 9022.19 from any other subheading, except from subheading 9022.30 or 9022.90.a1, U.S. tariff item 9022.90.h1, Mexican tariff item 9022.90.x1. A change to subheading 9022.21 from any other subheading, except from Canadian tariff item 9022.90.a2, U.S. tariff item 9022.90.h2, Mexican tariff item 9022.90.x2. A change to subheadings 9022.29 through A change to subheading 9018.11 from any other heading.

. 9018.19 9018.20-9018.50 9018.90 9018.90.a1

9018.90 90.19-90.21 9022.11

9022.19

9022.21

9022.29-9022.30

9022.30 from any other heading; or A change to subheadings 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 percentage of not less than: a) b) 9022.90 9022.90.a1 A change to Canadian tariff item 9022.90.a1, U.S. tariff item 9022.90.h1, Mexican tariff item 9022.90.x1 from any other tariff item. A change to subheading 9022.90 from any other heading; or A change to subheading 9022.90 from within subheading 9022.90, whether or not there is also a change from any other heading, provided there is a regional value content percentage of not less than: a) b) 90.23 9024.10-9024.80 60% where the transaction value method is used, or 50% where the net cost method is used. 60% where the transaction value method is used, or 50% where the net cost method is used.

9022.90

A change to heading 90.23 from any other heading. A change to subheadings 9024.10 through 9024.80 from any other heading; or A change to subheadings 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 percentage of not less than: a) b) 60% where the transaction value method is used, or 50% where the net cost method is used.

9024.90 9025.11-9025.80

A change to subheading 9024.90 from any other heading. A change to subheadings 9025.11 through 9025.80 from any other heading; or

A change to subheadings 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 percentage of not less than: a) b) 9025.90 9026.10-9026.80 60% where the transaction value method is used, or 50% where the net cost method is used.

A change to subheading 9025.90 from any other heading. A change to subheadings 9026.10 through 9026.80 from any other heading; or A change to subheadings 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 percentage of not less than: a) b) 60% where the transaction value method is used, or 50% where the net cost method is used.

9026.90 9027.10-9027.50

A change to subheading 9026.90 from any other heading. A change to subheadings 9027.10 through 9027.50 from any other heading; or A change to subheadings 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 percentage of not less than: a) b) 60% where the transaction value method is used, or 50% where the net cost method is used.

9027.80 9027.80.a1 A change to Canadian tariff item 9027.80.a1, U.S. tariff item 9027.80.h1, Mexican tariff item 9027.80.x1 from any other subheading, except from subheading 8505.19 or Canadian tariff item 9027.90.a1, U.S. tariff item 9027.90.h1, Mexican tariff item 9027.90.x1. A change to subheading 9027.80 from any

9027.80

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 percentage of not less than: a) b) 9027.90 9028.10-9028.30 60% where the transaction value method is used, or 50% where the net cost method is used.

A change to subheading 9027.90 from any other heading. A change to subheadings 9028.10 through 9028.30 from any other heading; or A change to subheadings 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 percentage of not less than: a) b) 60% where the transaction value method is used, or 50% where the net cost method is used.

9028.90 9029.10-9029.20

A change to subheading 9028.90 from any other heading. A change to subheadings 9029.10 through 9029.20 from any other heading; or A change to subheadings 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 percentage of not less than: a) b) 60% where the transaction value method is used, or 50% where the net cost method is used.

9029.90 9030.10

A change to subheading 9029.90 from any other heading. 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

percentage of not less than: a) b) 9030.20-9030.39 60% where the transaction value method is used, or 50% where the net cost method is used.

A change to subheadings 9030.20 through 9030.39 from any other subheading, including another subheading within that group, except from Canadian tariff item 9030.90.a1, U.S. tariff item 9030.90.h1, Mexican tariff item 9030.90.x1. A change to subheadings 9030.40 through 9030.89 from any other heading; or A change to subheadings 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 percentage of not less than: a) b) 60% where the transaction value method is used, or 50% where the net cost method is used.

9030.40-9030.89

9030.90 9031.10-9031.40

A change to subheading 9030.90 from any other heading. A change to subheadings 9031.10 through 9031.40 from any other heading; or A change to subheadings 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 percentage of not less than: a) b) 60% where the transaction value method is used, or 50% where the net cost method is used.

9031.80 9031.80.a1 A change to Canadian tariff item 9031.80.a1, U.S. tariff item 9031.80.h1, Mexican tariff item 9031.80.x1 from any other tariff item, except from subheading 8537.10 or Canadian tariff item 9031.90.a1, U.S. tariff item 9031.90.h1, Mexican tariff item 9031.90.x1.

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 percentage of not less than: a) b) 60% where the transaction value method is used, or 50% where the net cost method is used.

9031.90 9032.10-9032.89

A change to subheading 9031.90 from any other heading. A change to subheadings 9032.10 through 9032.89 from any other heading; or A change to subheadings 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 percentage of not less than: a) b) 60% where the transaction value method is used, or 50% where the net cost method is used.

9032.90 90.33

A change to subheading 9032.90 from any other heading. A change to heading 90.33 from any other heading. Clocks and Watches and Parts Thereof A change to headings 91.01 through 91.07 from any other chapter; or A change to headings 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) b) 60% where the transaction value method is used, or 50% where the net cost method is used.

Chapter 91 91.01-91.07

91.08-91.13

A change to headings 91.08 through 91.13 from any other heading, including another heading within that group, provided there

is a regional value content of not less than: a) b) 91.14 60% where the transaction value method is used, or 50% where the net cost method is used.

A change to heading 91.14 from any other heading. Musical Instruments; Parts and Accessories of Such Articles A change to headings 92.01 through 92.08 from any other chapter; or A change to headings 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) b) 60% where the transaction value method is used, or 50% where the net cost method is used.

Chapter 92 92.01-92.08

92.09

A change to heading 92.09 from any other heading.

SECTION XIX Arms and Ammunition; Parts and Accessories Thereof (Ch. 93) Chapter 93 93.01-93.04 Arms and Ammunition; Parts and Accessories Thereof A change to headings 93.01 through 93.04 from any other chapter; or A change to headings 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) b) 93.05 93.06-93.07 60% where the transaction value method is used, or 50% where the net cost method is used.

A change to heading 93.05 from any other heading. A change to headings 93.06 through 93.07 from any other chapter.

SECTION XX Miscellaneous Manufactured Articles (Ch. 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 A change to heading 94.01 from any other chapter; or A change to heading 94.01 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) b) 94.02 9403.10-9403.80 60% where the transaction value method is used, or 50% where the net cost method is used.

94.01

A change to heading 94.02 from any other chapter. A change to subheadings 9403.10 through 9403.80 from any other chapter; or A change to subheadings 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) b) 60% where the transaction value method is used, or 50% where the net cost method is used.

9403.90 9404.10-9404.30 9404.90

A change to subheading 9403.90 from any other heading. A change to subheadings 9404.10 through 9404.30 from any other chapter. A change to subheading 9404.90 from any other chapter, except from headings 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. A change to subheadings 9405.10 through 9405.60 from any other chapter; or A change to subheadings 9405.10 through

9405.10-9405.60

9405.60 from any of subheadings 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) b) 9405.91-9405.99 94.06 60% where the transaction value method is used, or 50% where the net cost method is used.

A change to subheadings 9405.91 through 9405.99 from any other heading. A change to heading 94.06 from any other chapter. Toys, Games and Sports Requisites; Parts and Accessories Thereof A change to heading 95.01 from any other chapter. A change to subheading 9502.10 from any other chapter; or A change to subheading 9502.10 from any of subheadings 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) b) 60% where the transaction value method is used, or 50% where the net cost method is used.

Chapter 95 95.01 9502.10

9502.91-9502.99 95.03-95.05 9506.11-9506.29 9506.31

A change to subheadings 9502.91 through 9502.99 from any other heading. A change to headings 95.03 through 95.05 from any other chapter. A change to subheadings 9506.11 through 9506.29 from any other chapter. 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% where the transaction value

b) 9506.32 9506.39 9506.39.x1

method is used, or 50% where the net cost method is used.

A change to subheading 9506.32 from any other chapter.

A change to Mexican tariff item 9506.39.x1 from any other chapter; or A change to Mexican tariff item 9506.39.x1 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) b) 60% where the transaction value method is used, or 50% where the net cost method is used.

9506.39 9506.40-9506.99 95.07-95.08

A change to subheading 9506.39 from any other chapter. A change to subheadings 9506.40 through 9506.99 from any other chapter. A change to headings 95.07 through 95.08 from any other chapter. Miscellaneous Manufactured Articles A change to headings 96.01 through 96.05 from any other chapter. A change to subheading 9606.10 from any other chapter. A change to subheadings 9606.21 through 9606.29 from any other chapter; or A change to subheadings 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) b) 60% where the transaction value method is used, or 50% where the net cost method is used.

Chapter 96 96.01-96.05 9606.10 9606.21-9606.29

9606.30

A change to subheading 9606.30 from any other

heading. 9607.11-9607.19 A change to subheadings 9607.11 through 9607.19 from any other chapter; or A change to subheadings 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) b) 9607.20 9608.10-9608.50 60% where the transaction value method is used, or 50% where the net cost method is used.

A change to subheading 9607.20 from any other heading. A change to subheadings 9608.10 through 9608.50 from any other chapter; or A change to subheadings 9608.10 through 9608.50 from any of subheadings 9608.91 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) b) 60% where the transaction value method is used, or 50% where the net cost method is used.

9608.60-9608.99 96.09-96.12 9613.10-9613.80

A change to subheadings 9608.50 through 9608.99 from any other heading. A change to headings 96.09 through 96.12 from any other chapter. A change to subheadings 9613.10 through 9613.80 from any other chapter; or A change to subheadings 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) b) 60% where the transaction value method is used, or 50% where the net cost method is used.

9613.90

A change to subheading 9613.90 from any other heading.

9614.10 9614.20 9614.90 9615.11-9615.19

A change to subheading 9614.10 from any other chapter. A change to subheading 9614.20 from any other subheading, except from subheading 9614.90. A change to subheading 9614.90 from any other heading. A change to subheadings 9615.11 through 9615.19 from any other chapter; or A change to subheadings 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) b) 60% where the transaction value method is used, or 50% where the net cost method is used.

9615.90 96.16-96.18

A change to subheading 9615.90 from any other heading. A change to headings 96.16 through 96.18 from any other chapter.

SECTION XXI Works of Art, Collectors' Pieces and Antiques (Ch. 97) Chapter 97 97.01-97.06 Works of Art, Collectors' Pieces and Antiques A change to headings 97.01 through 97.06 from any other chapter.

ANNEX I
1. The Schedule of a Party sets out the reservations taken by that Party, pursuant to Articles 1108(1) and 1206(2), with respect to existing, non-conforming measures that derogate from an obligation relating to: (a) national treatment, pursuant to Article 1102 (Investment) or 1202 (Services);

(b) most-favored-nation treatment, pursuant to Article 1103 (Investment) or 1203 (Services); (c) local presence, pursuant to Article 1205 (Services); (d) performance requirements, pursuant to Article 1106 (Investment); or (e) nationality requirements for senior management or members of boards of directors, pursuant to Article 1107 (Investment). 2. Each reservation sets out the following elements (ftnt 1):

(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 to the activity, where applicable, 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 the Party is taking the reservation; (f) LEGAL CITATION identifies the specific existing measures, where applicable, for which the reservation is taken; (ftnt 2) (g) DESCRIPTION describes the non-conforming aspects of the existing measures for which the reservation is taken and, where applicable, commitments for liberalization upon entry into force of this Agreement; and (h) DURATION sets out the period for which the reservation is taken and the phase-in of commitments for liberalization. 3. In the interpretation of a reservation, all elements of the reservation should be considered. Where the DURATION does not provide for liberalization, the LEGAL CITATION shall govern to the extent of any inconsistency with any other element. Where the DURATION provides for liberalization upon or after entry into force of this Agreement, the DURATION shall govern to the extent of any inconsistency with any other element. 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 Articles 1202, 1203 or 1205 taken with respect to that measure shall operate as a reservation for Articles 1102 or 1103 with respect to the effect of that measure on the

ability of the service provider to establish an investment. 5. For purposes of this Annex:

CMAP means Clasificaci?n Mexicana de Actividades y Productos; 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 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 laws of Mexico; Mexican national means a national of Mexico, as defined by the Constitution of Mexico; person of a Party means a national or an enterprise of a Party; 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. FOOTNOTE 1: The reservations are current as of September 5, 1992. The three delegations understand that where a Party adopts liberalizing measures prior to the date of entry into force of this Agreement, such measures will be considered to be existing measures. FOOTNOTE 2: The three delegations are considering the need for inclusion of language to the effect that measures set out in the LEGAL CITATION shall be deemed to include existing administrative decisions, interpretations and practices pursuant to the measure cited.

ANNEX II
1. The Schedule of a Party sets out the reservations taken by that Party, pursuant to Articles 1108(4) and 1206(4), with respect to specific sectors, sub-sectors or activities for which it may maintain existing, non-conforming measures or adopt new or more restrictive measures. Such measures may derogate from an obligation relating to: (a) national treatment, pursuant to Article 1102 (Investment) or 1202 (Services);

(b) most-favored-nation treatment, pursuant to Article 1103 (Investment) or 1203 (Services); (c) local presence, pursuant to Article 1205 (Services); (d) performance requirements, pursuant to Article 1106 (Investment); or (e) nationality requirements for senior management or members of boards of directors, pursuant to Article 1107 (Investment). 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 to the activity, where appropriate, 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 describes the scope of the sector, sub-sector or activities covered by the reservation; and (f) LEGAL CITATION OF EXISTING MEASURES identifies 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 should be considered. In the event of any inconsistency between DESCRIPTION and any other element of the reservation, the DESCRIPTION shall govern to the extent of the inconsistency. 4. For purposes of this Annex:

CMAP means Clasificaci?n Mexicana de Actividades y Productos; CPC means Central Product Classification numbers as set out in Statistical Office of the United Nations, Statistical Papers, Series M, No. 77, Provisional Central Product Classification, 1991; Mexican enterprise means an enterprise constituted under the laws of Mexico; Mexican national means a national of Mexico, as defined by the Constitution of Mexico; person of a Party means a national or an enterprise of a Party; 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.

ANNEX IV
The Schedule of a Party sets out the reservations taken by that Party pursuant to Article 1108(7) with respect to Article 1103 (Most-Favored-Nation Treatment). Each reservation sets out the sector, subsector or activities to which it applies.

ANNEX I Schedule of Canada

SECTOR: Agriculture SUB-SECTOR: INDUSTRY CLASSIFICATION: TYPE OF RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal

LEGAL CITATION: Farm Credit Act, R.S.C. 1985, c. F-2 as amended by R.S.C. 1985, c. 1 (4th Supp.); S.C. 1991, c. 5, 53 Farm Credit Regulations, C.R.C. 1978, c. 644 as amended by SOR/81-560; SOR/82-495; SOR/83-198 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 of whose members are Canadian citizens or permanent residents. DURATION: Indeterminate ======================================================================= ====== ANNEX I Schedule of Canada SECTOR: All Sectors SUB-SECTOR: INDUSTRY CLASSIFICATION: TYPE OF RESERVATION: National Treatment (Article 1102) Performance Requirements (Article 1106) Senior Management (Article 1107) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Investment Canada Act, R.S.C. 1985, c. 28, as amended by S.C.1988, c. 65 Investment Canada Regulations, SOR/85-611, as amended by SOR/189-69 An Act to Amend the Investment Canada Act, (Bill C-89, introduced in Parliament on 18 June 1992) DESCRIPTION: Investment 1. Under the Investment Canada Act,

the following acquisitions of Canadian businesses by "non-Canadians" are subject to review by Investment Canada: (1) all direct acquisitions of Canadian businesses with assets of $5 million or more; (2) all indirect acquisitions of Canadian businesses with assets of $50 million or more; and (3) indirect acquisitions of Canadian businesses with assets between $5 million and $50 million which represent more than 50 percent of the value, calculated in the prescribed manner, of the assets of all the entities the control of which is being acquired, directly or indirectly, in the transaction in question. 2. "Canadian business", "Canadian" and "non-Canadian" are defined in the Investment Canada Act. A "nonCanadian" is an individual, government or agency thereof or an entity which is not "Canadian". 3. In addition, specific acquisitions or new businesses in designated types of business activities related 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. Investments subject to review under the Investment Canada Act are not to 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. 5. These factors are 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; (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. 6. 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. 7. The establishment or acquisition of Canadian businesses by nonCanadians, other than those described above, are to be notified to the agency administering the Act,

Investment Canada. 8. Review of "acquisition of control", as defined in the Investment Canada Act, of a Canadian business by an American or Mexican will take place if the value of the gross assets of the Canadian business is not less than the applicable thresholds, effective on the date of entry into force of this Agreement and adjusted on each anniversary thereof. The calculation of the applicable review threshold is set out in the Duration section below. 9. The review threshold applicable to American and Mexican investors is higher than those set out above. However, this higher review threshold does not apply in the following sectors: uranium production and ownership of uranium producing properties; oil and gas; financial services; transportation services and cultural businesses. 10. Indirect "acquisitions of control", as defined in the Investment Canada Act, of Canadian businesses by "American" and "Mexican" investors are not reviewable. Notwithstanding the definition of "investor of a Party" in Chapter Eleven, only investors who are nationals, or entities controlled by nationals, (as defined in the Investment Canada Act) of the United States or Mexico, may benefit from the higher review threshold. 11. Notwithstanding Article 1106(1), Canada reserves the right to 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 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 pursuant to the Investment Canada Act. 12. Except for requirements, commitments or undertakings related to

technology transfer as set out above, Article 1106(1) shall apply to requirements, commitments or undertakings imposed or enforced under the Investment Canada Act. However, 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. DURATION: Paragraphs 10, 11 and 12 of the Description setting out Canada's reservations and commitments with respect to Articles 1102, 1106(1), and 1138 shall govern. For American and Mexican investors, the applicable threshold for the review of a direct acquisition of control of a Canadian business shall be: (a) for the twelve month period commencing on the date of entry into force of this Agreement, such monetary amount as determined in accordance with Annex 1607.3 of the Canada-United State Free Trade Agreement; (b) commencing on the first anniversary of 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 shall be determined in January of each year after 1994 using the most recently available data as published by Statistics Canada and using the following formula: Ann ual 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 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 shall be rounded to the nearest million dollars. ======================================================================= ====== ANNEX I Schedule of Canada SECTOR: All Sectors SUB-SECTOR: INDUSTRY CLASSIFICATION: TYPE OF RESERVATION: National Treatment (Article 1102) Senior Management (Article 1107) LEVEL OF GOVERNMENT: Federal Provincial LEGAL CITATION: DESCRIPTION: Investment When selling or disposing of its equity interests in, or the assets of, an existing state enterprise or an existing governmental entity, Canada and each province reserve the right to 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 non-Party or their investments. In addition, Canada and each province reserve the right to adopt or maintain any measure relating to the nationality of senior management or members of the board of directors. For the purposes of this reservation: (a) any measure maintained, or adopted after the entry into force of this Agreement, prohibiting or imposing limitations on the ownership of equity interests or assets or nationality requirements described in this reservation shall be deemed to be an existing measure; and (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. DURATION: The Description shall govern on entry into force of this Agreement. Indeterminate. ======================================================================= ====== ANNEX I Schedule of Canada

SECTOR: All Sectors SUB-SECTOR: INDUSTRY CLASSIFICATION: TYPE OF RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal

LEGAL CITATION: Canada Business Corporations Act, R.S.C. 1985, C. I-44, as amended by R.S.C. 1985, c. 27 (2nd Supp.), R.S.C. 1985, c. 1 (4th Supp.); S.C. 1990, c. 17; S.C. 1991, c. 45, 46, 47 Canada Corporations Act, R.S.C. 1970, C. C-32, as amended by R.S.C. 1970, c. C-10 (1st Supp.); S.C. 1970-71-72, c. 43, 63; S.C. 1972, c. 17; S.C. 1974-75-76, c. 33; S.C. 1978-79, c. 11; S.C. 1985, c. 26; S.C. 1986, c. 26, 35 Canada Business Corporations Act Regulations SOR/79-316, as amended by SOR/79-513, SOR/79-728, SOR/80-873, SOR/81-3, SOR/81-189, SOR/81-868, SOR/82-187, SOR/83-511, SOR/83781, SOR/83-817, SOR/85-384, SOR/86-365, SOR/86-366, SOR/86-421, SOR/86-983, SOR/87-248, SOR/87-629, SOR/8863, SOR/88-491, SOR/89-159, SOR/89-323, SOR/90-660, SOR/91-567 DESCRIPTION: Investment The cited laws and regulations permit constraints to be placed on issue, transfer and ownership of shares in federally incorporated business corporations. The object is to permit corporations to meet Canadian ownership requirements, under certain laws as prescribed in the regulations, in sectors where such ownership is required as a condition to operate. In order to maintain certain "Canadian" ownership levels, corporations are permitted to sell shareholders' shares without the consent of those shareholders, and to purchase the corporation's own shares on the open market. "Canadian" is defined in the regulations. DURATION: Indeterminate ======================================================================= ====== ANNEX I Schedule of Canada SECTOR: All Sectors

SUB-SECTOR: INDUSTRY CLASSIFICATION: TYPE OF RESERVATION: Senior Management (Article 1107) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Canada Business Corporations Act, R.S.C. 1985, c. I-44 as amended R.S.C. 1985, c. 27 (2nd Supp.), R.S.C. 1985, c. 1 (4th Supp.); S.C. 1990, c. 17; S.C. 1991, c. 45, 46, 47 Canada Business Corporations Act Regulations, SOR/79-316, as amended SOR/79-513, SOR/79-728, SOR/80-873, SOR/81-3, SOR/81-189, SOR/81-868, SOR/82-187, SOR/83-511, SOR/83-781, SOR/83-817, SOR/85-384, SOR/86-365, SOR/86-366, SOR/86-421, SOR/86-983, SOR/87-248, SOR/87-629, SOR/88-63, SOR/88-491, SOR/89-159, SOR/89-323, SOR/90-660, SOR/91-567 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 members of the board of directors, or of a committee thereof, of a federally-incorporated company must be resident Canadians. For the purposes of the Act the term "resident Canadian" is defined as an individual who is a Canadian citizen ordinarily resident in Canada, a citizen who is a member of a class as set out in the regulations, or a permanent resident as defined in the Immigration Act except a person 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 1/3 of the directors need be resident Canadians if the earnings in Canada of the holding corporation and its subsidiaries are less than 5% 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 residents of Canada and citizens of a Commonwealth country. This requirement applies to every joint stock company incorporated subsequent to 22 June 1869 by any Special Act of Parliament and any subsequent amendments to such Acts. DURATION: Indeterminate ======================================================================= ====== ANNEX I Schedule of Canada

SECTOR: All Sectors SUB-SECTOR: INDUSTRY CLASSIFICATION: TYPE OF RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Citizenship Act, R.S.C. 1985, c. C-29 as amended by R.S.C. 1985 c. 28 (1st Supp.); c. 30 (3rd Supp.); c. 44 (3rd Supp.); c. 28 (4th Supp.) Foreign Ownership of Land Regulations, SOR/79-416; SOR/79-514; SOR/80-156; SOR/82-544 DESCRIPTION: Investment Under the Citizenship Act, a province is authorized to prohibit or restrict acquisitions of real property located in that province by non-Canadians. 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 2 parcels containing, in the aggregate, not more than 20 acres. An "ineligible person" is (1) an individual who is not a Canadian citizen or permanent resident; (2) a foreign government or agency thereof; or (3) a corporation incorporated elsewhere than in Canada. "Controlled land" means land in Alberta but does not include (1) land other than land owned by the Crown; (2) land within a city, town, new town, village, or summer village and (3) mines or minerals. DURATION: Indeterminate ======================================================================= ====== ANNEX I Schedule of Canada SECTOR: SUB-SECTOR: INDUSTRY CLASSIFICATION: TYPE OF RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: 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

Non-residents may not own more than a specified percentage of the voting shares of the corporation to which each Act applies. For each company the restrictions are as follows: Air Canada: 25% Canada Development Corporation: 25% Petro-Canada Inc: 25% Canadian Arsenals Limited: 25% Eldorado Nuclear Limited: ownership not restricted but voting rights restricted to 25% of votes cast at meetings Nordion Limited: 25% Theratronics Limited: 49% Cooperative Energy Corporation: 49% Non-resident is defined in the cited laws to generally mean: (a) an individual, other than a Canadian citizen, who is not ordinarily resident in Canada; (b) a corporation incorporated, formed or otherwise organized outside Canada; (c) the government of a foreign state or any political subdivision thereof, or a person empowered to perform a function or duty on behalf of such a government; (d) a corporation that is controlled directly or indirectly by non-residents as defined in any of paragraphs (a) to (c); (e) a trust (i) established by a non-resident as defined in any of paragraphs (b) to (d), other than a trust for the administration of a pension fund for the benefit of individuals a majority of whom are residents, or (ii) in which non-residents as defined in any of paragraphs (a) to (d) have more than fifty per cent of the beneficial interest; or (f) a corporation that is controlled directly or indirectly by a trust described in paragraph (e). DURATION: Indeterminate

======================================================================= ====== ANNEX I Schedule of Canada

SECTOR: All Sectors SUB-SECTOR: INDUSTRY CLASSIFICATION: TYPE OF RESERVATION: Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Export and Import Permits Act, R.S.C., 1985, c. E-19 DESCRIPTION: Cross-Border Services Only natural persons ordinarily resident in Canada, enterprises having their head office in Canada or branch offices in Canada of a foreign enterprise may apply for and be issued import or export permits or a transit authorization certificate for goods and related services subject to controls pursuant to regulations of the Export and Import Permits Act. DURATION: Indeterminate ======================================================================= ====== ANNEX I Schedule of Canada SECTOR: Automotive SUB-SECTOR: INDUSTRY CLASSIFICATION: TYPE OF RESERVATION: LEVEL OF GOVERNMENT: Performance Requirements (Article 1106) Federal LEGAL CITATION: Canada-United-States Free Trade Agreement Implementation Act

DESCRIPTION: Investment Article 1106(3) shall not apply to the granting of waivers of customs duties conditioned, explicitly or implicitly, upon the fulfillment of performance requirements by those manufacturers of automotive goods: (a) set out in Part One of Annex 1002.1 of the Canada - UnitedStates 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. DURATION: (a) Indeterminate

(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 Schedule of Canada

SECTOR: Business Service Industries SUB-SECTOR: Customs Brokerages and Brokers INDUSTRY CLASSIFICATION: SIC 7794 Customs Brokerages and Brokers TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) Local Presence (Article 1205) Senior Management (Article 1107) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Customs Act, R.S.C., 1985, c. 41 (2nd Supp.) Customs Brokers Licensing Regulations, SOR/86-1067 DESCRIPTION: Cross-Border Services and Investment

1. To be a licensed customs broker in Canada, an individual must be a Canadian citizen or permanent resident. 2. To be a licensed customs brokerage in Canada: (a) a corporation must be incorporated in Canada with a majority of its directors being Canadian citizens or permanent residents; and (b) 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. DURATION: Indeterminate ======================================================================= ====== ANNEX I Schedule of Canada

SECTOR: Business Service Industries SUB-SECTOR: Duty Free Shops INDUSTRY CLASSIFICATION: SIC 6599 Other Retail Stores, Not Elsewhere Classified TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Customs Act, R.S.C., 1986, c.1 (2nd Supp.) Duty Free Shop Regulations, SOR/86-1072, as amended 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 licence. 2. To be a licensed duty free shop operator at a 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. DURATION: Indeterminate ======================================================================= ====== ANNEX I Schedule of Canada

SECTOR: Business Service Industries SUB-SECTOR: Examination Services relating to the Export and Import of Cultural Property INDUSTRY CLASSIFICATION: SIC 990 Other Services TYPE OF RESERVATION: Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Cultural Property Export and Import Act, R.S.C. 1985, c. C-51 DESCRIPTION: Cross-Border Services For purposes of the Cultural Property Export and Import Act an "expert examiner" of cultural property must be either a natural person who ordinarily resides 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.

DURATION: Indeterminate ======================================================================= ====== ANNEX I Schedule of Canada

SECTOR: Business Service Industries SUB-SECTOR: Patent Agents and Agencies INDUSTRY CLASSIFICATION: SIC 7499 Other Financial Intermediaries, Not Elsewhere Classified (Limited to Holders of Intellectual Property Rights) TYPE OF RESERVATION: National Treatment (Article 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Patent Act, R.S.C., 1985, c. P-4 Patent Rules, CRC, Vol. XIII, c. 1250, p.10053 Patent Cooperation Treaty Regulations, SOR/89-453 DESCRIPTION: Cross-Border Services 1. To be able 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 a resident of Canada and registered by the Patent Office. 2. To prosecute an application for a patent in Canada a registered patent agent who is not a resident of Canada must appoint a registered patent agent who is a resident of Canada as an associate to prosecute the application. 3. Any firm may be added to the patent register provided that it has at least one member who is also on the register. DURATION: Indeterminate

======================================================================= ====== ANNEX I Schedule of Canada

SECTOR: Business Service Industries SUB-SECTOR: Trade-Mark Agents INDUSTRY CLASSIFICATION: SIC 7499 Other Financial Intermediaries, Not Elsewhere Classified (Limited to Holders of intellectual Property Rights) TYPE OF RESERVATION: National Treatment (Article 1202) Most-Favored-Nation Treatment (Article 1203) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Trade-Marks Act, R.S.C., 1985, c. T-13 Trade-Marks Regulations, CRC, Vol. XVIII, c. 1559, p. 13803, as amended DESCRIPTION: Cross-Border Services 1. To be able 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 a resident of Canada and registered by the Trade-Mark Office. 2. To prosecute an application for a trade-mark in Canada, 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 the application. 3. Trade-mark agents who reside, and are registered (in good standing), in a Commonwealth country or the United States may be added to the register of trade-mark agents. DURATION: Indeterminate ======================================================================= ======

ANNEX I Schedule of Canada SECTOR: Energy SUB-SECTOR: Oil and Gas INDUSTRY CLASSIFICATION: [To be provided] TYPE OF RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Canada Petroleum Resources Act, R.S.C. 1985, c. 36 (2nd Supp.) as amended by R.S.C. 1985, c. 21 (4th Supp.), S.C. 1990, c. 8, 41., S.C. 1991, c. 10 (partly in force), 24 (not in force), 46 (not in force) Territorial Lands Act, R.S.C. 1985, c.T-7 as amended by R.S.C. 1985, c. 7 (3rd Supp.)(partly in force); S.C. 1991, c. 2, 24 (not in force), 50 (not in force) Public Lands Grants Act, R.S.C. 1985, c. P-30 as amended R.S.C. 1985, c. 13 (1st Supp.); S.C. 1991, c. 24 (not in force). Act repealed S.C. 1991, c. 50 (repealing legislation not in force) Canada-Newfoundland Atlantic Accord Implementation Act, S.C. 1987, c. 3 as amended by S.C. 1988, c. 28, S.C. 1990, c. 41; S.C. 1991, c. 46 (not in force), 49, 50 (not in force) Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act, S.C. 1988, c. 28 as amended by S.C. 1990, c. 28, 41; S.C. 1991, c. 46 (not in force), 49, 50 (not in force) Canada Oil and Gas Land Regulations, C.R.C. c. 1518 as amended SOR/80-590; SOR/82-663; SOR/89-144 DESCRIPTION: Investment Canadian legislation contains certain qualifications for holders of oil and gas production licenses for discoveries made after March 5, 1982. These qualifications ensure that holders of such licenses, or shares

therein, are Canadian citizens ordinarily resident in Canada, permanent residents or corporations incorporated in Canada. Notwithstanding qualification to hold a production license, no production license shall 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 interest-owner in relation to the production license on the date of issuance would not be less than 50%. "Interest-owner" is defined in the Canada Petroleum Resources Act to mean "an interest holder who holds the interest or a group of interest holders who hold all the shares of the interest". With respect to production licenses for discoveries made prior to March 5, 1982, the Canadian ownership requirements are as set out in the Canada Oil and Gas Land Regulations. These qualifications and Canadian ownership requirements are in respect of production licenses issued on "frontier lands" and the "offshore areas" (areas not under provincial jurisdiction) as defined in the legislation. DURATION: Indeterminate ======================================================================= ====== ANNEX I Schedule of Canada SECTOR: Energy SUB-SECTOR: Uranium INDUSTRY CLASSIFICATION: [To be provided] TYPE OF RESERVATION: National Treatment (Article 1102) Most-Favored-Nation Treatment (Article 1103) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Investment Canada Act, R.S.C. 1985, c.

28, as amended by S.C.1988, c.65 Investment Canada Regulations, SOR/85611 as amended by SOR/189-69 An Act to Amend the Investment Canada Act, (Bill C-89, introduced in Parliament on 18 June 1992) Policy on Non-resident Ownership in the Uranium Mining Sector, 1987 DESCRIPTION: Investment Non-resident ownership of a uranium mining property is limited to 49% 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 allowed, subject to Cabinet approval, only in cases where Canadian participants in the ownership of the property cannot be found. Investments in properties by "non-Canadians", as defined in the Investment Canada Act, prior to December 23, 1987, beyond the permitted ownership level, are allowed to remain in place; however no increase in non-Canadian ownership is permitted. DURATION: Indeterminate ======================================================================= ====== ANNEX I Schedule of Canada SECTOR: Fisheries SUB-SECTOR: Fish Harvesting and Processing INDUSTRY CLASSIFICATION: [To be provided] TYPE OF RESERVATION: National Treatment (Article 1102) Most-Favored-Nation Treatment (Article 1103) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Coastal Fisheries Protection Act, R.S.C. 1985, c. C-33 as amended by

R.S.C. 1985, c. 31 (1st Supp.); R.S.C. 1985, c. 39 (2nd Supp.); S.C. 1990, c. 44 Fisheries Act, R.S.C. 1985, c. F-14 as amended by R.S.C. 1985, c. 31 (1st Supp.); R.S.C. 1985, c. 35 (1st Supp.); R.S.C. 1985, c. 40 (4th Supp.); S.C. 1990, c. 16; S.C. 1990, c. 17 Policy on Foreign Investment in the Canadian Fisheries Sector, 1985 Commercial Fisheries Licensing Policy Coastal Fisheries Protection Regulations, C.R.C., 1978, c. 413 DESCRIPTION: Investment Under the Coastal Fisheries Protection Act, "foreign" fishing vessels are prohibited from entering Canada's 200 mile fishing 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 a discretionary authority with respect to the issuance of licenses. Fish processing companies which have a foreign ownership level of more than 49% are prohibited from holding Canadian commercial fishing licenses. DURATION: Indeterminate ======================================================================= ====== ANNEX I Schedule of Canada

SECTOR: Fisheries SUB-SECTOR: Fishing-Related Services INDUSTRY CLASSIFICATION: SIC 032 Services Incidental to Fishing

TYPE OF RESERVATION: National Treatment (Article 1202) Most-Favored-Nation Treatment (Article 1203)

LEVEL OF GOVERNMENT: Federal LEGAL CITATION: 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 Fisheries Zone (EFZ), 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 countries with which it has favorable fishery relations, based primarily on adherence by the foreign country to Canadian and international conservation practices and policies. Exceptions to this general rule are allowed in cases of emergency ("force majeure") and where the specific provisions of bilateral fisheries treaties apply. DURATION: Indeterminate ======================================================================= ====== ANNEX I Schedule of Canada SECTOR: Government Finance SUB-SECTOR: Securities INDUSTRY CLASSIFICATION: [To be provided] TYPE OF RESERVATION: National Treatment (Article 1202) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Financial Administrative Act, R.S.C., 1985, Chap. F-11 and annual Orders-inCouncil DESCRIPTION: Investment Canada Savings Bonds are issued

annually pursuant to the Financial Administration Act. Terms and conditions are set by Orders-inCouncil. Sale of Canada Savings Bonds is restricted to individuals who are Canadian nationals. DURATION: Indeterminate ======================================================================= ====== ANNEX I Schedule of Canada SECTOR: Transportation SUB-SECTOR: Air Transportation INDUSTRY CLASSIFICATION: [To be provided] TYPE OF RESERVATION: National Treatment (Article 1102) Most Favored Nation Treatment (Article 1103) Senior Management (Article 1107) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: National Transportation Act, 1987, R.S.C. 1985, c. 28 (3rd Supp.), as amended by R.S.C. 1985, c. 29 (3rd Supp.); R.S.C. 1985 c. 19 (4th Supp.); R.S.C. 1985, c. 32 (4th Supp.) Aeronautics Act, R.S.C. 1985, c. A-2 as amended by R.S.C.1985, c. 33 (1st Supp.); R.S.C. 1985, c. 28 (3rd Supp.) Air Regulations, C.R.C. 1978, c. 2 Aircraft Marking and Registration Regulations, SOR/90-591, as amended by SOR/91-504 DESCRIPTION: Investment The following "commercial air services" are reserved to Canadian air carriers or operators: domestic air transportation services (cabotage); international scheduled air transportation services reserved by bilateral agreements to Canadian airlines; and international non-scheduled air transportation services between Canada and a country other than a foreign air carrier's state of registry ("fifth freedom

charters"). For specialty air services, see Schedule of Canada, Annex I, p.I-C-42 and Schedule of Canada, Annex II, p.II-C-9. Only qualified persons may provide commercial air services reserved to Canadian air carriers or operators. Non-Canadian investment in voting stock of enterprises providing commercial air services that are reserved to Canadian air carriers or operators is limited to 25% or to a lesser percentage where control in fact of the enterprise is otherwise considered not to be held by Canadians. Non-Canadians are not permitted, through voting interests or other forms of investment, to control Canadian air carriers or operators. Aircraft other than state aircraft may only be registered in Canada by qualified persons. Aircraft not registered in Canada are limited by regulation concerning the period during which they may be operated in Canada by Canadians. A qualified person is a Canadian citizen or permanent resident, or a corporation incorporated by or under the laws of Canada or a province and of which: (a) not less than 75 % of the voting interest is in fact owned and controlled by Canadian citizens or permanent residents or by a corporation meeting the requirements on Canadian ownership and control; (b) not less than 2/3 of its directors are Canadian citizens or permanent residents; (c) the executive head is a Canadian citizen or permanent resident; and (d) the principal place of business is in Canada. A corporation incorporated by or under the laws of Canada or a province but that does not meet the Canadian ownership and control requirements may

only register a private aircraft when the corporation is the sole owner and subject to other limitations and requirements of the Air Regulations. The Air Regulations also have the effect of limiting "non-Canadian" corporations operating foreign registered private aircraft within Canada to the carriage of their own employees. A "non-Canadian" corporation is a corporation which does not meet the Canadian ownership and control requirements. All commercial air services operating in Canada require a Canadian operating certificate to ensure their safety and security. An operating certificate authorizing the provision of commercial air services reserved to Canadian operators or air carriers is only issued to qualified persons. DURATION: Indeterminate ======================================================================= ====== ANNEX I Schedule of Canada

SECTOR: Transportation SUB-SECTOR: Air Transportation INDUSTRY CLASSIFICATION: SIC 4513 Non-Scheduled Air Transport, Specialty Industry TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) Local Presence (Article 1205) Senior Management (Article 1107) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Aeronautics Act, R.S.C., 1985, c. A-2, section 4.2 Air Regulations, C.R.C., Vol. I, c. 2, sections 700 and 702 Air Regulations Series 2, No. 2 (Aircraft Marking and Registration Regulations), SOR/90-591, section 19 DESCRIPTION: Cross-Border Services and Investment

1. A person requires a Canadian operating certificate issued by the Department of Transport 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 such services, subject to compliance by such person with Canadian safety requirements. 2. Such 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" as defined in the applicable regulations (a Canadian national or a corporation incorporated and having its principal place of business in Canada, its chief executive officer and not fewer than 2/3 of its directors as Canadian nationals, and not less than 75% of its voting interest owned and controlled by persons otherwise meeting these requirements). 3. A person of Mexico or of the United States may obtain an operating certificate, subject to compliance by such 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. DURATION: Cross-Border Services Paragraph 3 of the Description shall govern upon entry into force of this Agreement. A person of Mexico or of the United States will be permitted to obtain an operating certificate, subject to compliance with Canadian safety requirements, for the provision of the following specialty air services: (a) two years after the entry into force of this Agreement, aerial construction and heli-logging

services; (b) three years after the entry into force of this Agreement, aerial inspection, aerial surveillance, flight training, and aerial sightseeing services; and (c) six years after the entry into force of this Agreement, aerial spraying services. ======================================================================= ====== ANNEX I Schedule of Canada

SECTOR: Transportation SUB-SECTOR: Air Transportation INDUSTRY CLASSIFICATION: SIC 4523 Aircraft Servicing Industry SIC 3211 Aircraft and Aircraft Parts Industry TYPE OF RESERVATION: Most-Favored-Nation Treatment (Article 1203) Local Presence (1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Aeronautics Act, R.S.C., 1985, c. A-2, section 4.9 Air Regulations, Series 2, No.11 [ ] Airworthiness Manual, chapters 573 and 575 [ ] Agreement Concerning Airworthiness Certification, Exchange of Letters between Canada and the United States, dated August 31, 1984, CTS______. DESCRIPTION: Cross-Border Services Aircraft repair, overhaul and maintenance activities which are required to maintain the airworthiness of Canadian-registered aircraft must be performed by Canadian-certified persons. Such certifications are not provided for enterprises located

outside Canada, except suborganizations 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, maintenance and overhaul activities performed by U.S.certified persons, including the individual performing the work, located in the United States. DURATION: Indeterminate ======================================================================= ====== ANNEX I Schedule of Canada

SECTOR: Transportation SUB-SECTOR: Land Transportation INDUSTRY CLASSIFICATION: SIC 456 Truck Transport Industries SIC 4572 Interurban and Rural Transit Systems Industry SIC 4573 School Bus Operations Industry SIC 4574 Charter and Sightseeing Bus Services Industry TYPE OF RESERVATION: National Treatment (Article 1202) Local Presence (Article 1205) LEGAL CITATION: 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.), subsection 19(1) DESCRIPTION: Cross-Border Services Only persons of Canada, using Canadian-built or duty-paid trucks or

buses, may provide truck or bus services between points in the territory of Canada. DURATION: Indeterminate ======================================================================= ====== ANNEX I Schedule of Canada

SECTOR: Transportation SUB-SECTOR: Water Transportation INDUSTRY CLASSIFICATION: SIC 4541 Freight and Passenger Water 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 RESERVATION: National Treatment (Articles 1102, 1202) Most-Favored-Nation Treatment (Articles 1103, 1203) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Canada Shipping Act, R.S.C., 1985, c. S-9, sections 6 and 7 DESCRIPTION: Cross-Border Services and Investment To register a ship in Canada for the purpose of providing international maritime transportation services, the owner of the ship 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, p.II-C-10. DURATION: Indeterminate ======================================================================= ====== ANNEX I Schedule of Canada

SECTOR: Transportation SUB-SECTOR: Water Transportation INDUSTRY CLASSIFICATION: SIC 4541 Freight and Passenger Water 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 RESERVATION: National Treatment (Article 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Canada Shipping Act, R.S.C., 1985, c. S-9, Part II DESCRIPTION: Cross-Border Services Masters, mates, and engineers are required to be certified by the Department of Transport as ship's officers while engaged on a Canadianregistered vessel. Only Canadian nationals may be certified as ship's officers. DURATION: Indeterminate

======================================================================= ====== ANNEX I Schedule of Canada

SECTOR: Transportation SUB-SECTOR: Water Transportation INDUSTRY CLASSIFICATION: SIC 4554 Piloting Service, Water Transport Industry TYPE OF RESERVATION: National Treatment (Article 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Pilotage Act, R.S.C., 1985, c. P-14 General Pilotage Regulations, C.R.C., Vol. XIII c. 1263 Atlantic Pilotage Authority Regulations, C.R.C. Vol. XIII, c. 1264 Laurentian Pilotage Authority Regulations, C.R.C., Vol. XIII, c. 1268 Great Lakes Pilotage Regulations, C.R.C., Vol. XIII, c. 1266 Pacific Pilotage Regulations, C.R.C., Vol. XIII, c. 1270 DESCRIPTION: Cross-Border Services A licence issued by the Department of Transport is required to provide pilotage services in Canada. Only Canadian citizens or permanent residents may obtain such licence. A permanent resident of Canada who has been issued a pilot's licence must become a Canadian citizen within five years of receipt of such licence in order to retain it. DURATION: Indeterminate ======================================================================= ====== ANNEX I Schedule of Canada

SECTOR: Transportation SUB-SECTOR: Water Transportation INDUSTRY CLASSIFICATION: SIC 454 Water Transport Industry TYPE OF RESERVATION: Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Shipping Conference Exemption Act, 1987, R.S.C., 1985, c.17 (3rd Supp.), section 18 DESCRIPTION: Cross-Border Services Members of a shipping conference shall 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 such carriers of goods by water. DURATION: Indeterminate ======================================================================= ====== ANNEX I Schedule of Canada

SECTOR: Transportation SUB-SECTOR: Water Transportation INDUSTRY CLASSIFICATION: SIC 4541 Freight and Passenger Water Transport Industry SIC 4542 Ferry Industry SIC 4543 Marine Towing Industry TYPE OF RESERVATION: Most-Favored-Nation Treatment (Article 1203) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Coasting Trade Act, S.C., 1992, c. 31, subsection 3(5) DESCRIPTION: Cross-Border Services

The prohibitions under the Coasting Trade Act set out in Schedule of Canada, Annex II, p. II-C-10 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. DURATION: Indeterminate ======================================================================= ====== ANNEX I Schedule of Canada

SECTOR: Energy SUB-SECTOR: Oil and Gas INDUSTRY CLASSIFICATION: [To be provided] TYPE OF RESERVATION: Performance Requirements (Article 1106) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Canada Oil and Gas Operations Act (in force as of September 1, 1992) Hibernia Development Project Act DESCRIPTION: 1. The terms and conditions of government assistance for the Hibernia project require that certain goods and services be sourced in Newfoundland and in Canada and that the project operator undertakes, on a "best efforts" basis, to achieve specific Canadian and Newfoundland content levels. 2. In addition, Canada reserves the right to impose 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, in connection with the Hibernia project. DURATION: For purposes of this entry, paragraph 2 of the Description shall govern with respect to Canada's reservation to the

obligations of Article 1106(1) (f). Indeterminate ======================================================================= ====== ANNEX I Schedule of Canada

SECTOR: Energy SUB-SECTOR: Oil and Gas INDUSTRY CLASSIFICATION: [To be provided] TYPE OF RESERVATION: Performance Requirements (Article 1106) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Canada Oil and Gas Operation Act, (in force as of September 1, 1992) Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act, S.C. 1988, c.28 Canada-Newfoundland Atlantic Accord, S.C. 1987, c.3 Yukon Oil and Gas Accord (under negotiation) Northwest Territories Oil and Gas Accord (under negotiation) DESCRIPTION: 1. Under the Canada Oil and Gas Operations Act, the Minister of Energy, Mines and Resources requires the applicant to submit a "benefits plan". Approval of the benefits plan is required to receive authorization to proceed with any oil and gas development project. 2. A "benefits plan" means 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 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. Similar provisions will be included in the Yukon and Northwest Territories Accords. 3. The Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act and the CanadaNewfoundland Atlantic Accord Implementation Act have the same requirement for a "benefits plan" but also require that the "benefits plan" ensure that: (a) before carrying out any work or activity in the offshore area the corporation or other body submitting the plan shall establish in the Province an office where appropriate levels of decision-making are to take place; (b) expenditures shall 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 shall 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 in the benefits plan.

5. In addition, Canada reserves the right to impose 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, in connection with the approval of development projects under the Acts cited above. DURATION: For purposes of this entry, paragraph 5 of the Description shall govern with respect to Canada's reservation to the obligations of Article 1106(1) (f). For purposes of this entry, the Yukon Oil and Gas Accord and the Northwest Territories Oil and Gas Accord shall be deemed to be existing measures, upon completion of their negotiation. Indeterminate

ANNEX II Schedule of Canada

SECTOR: Aboriginal Affairs SUB-SECTOR: INDUSTRY CLASSIFICATION: TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) Most-Favored-Nation Treatment (Articles 1103, 1203)

Local Presence (Article 1205) Performance Requirements (Article 1106) Senior Management (Article 1107) DESCRIPTION:Investment and Cross-Border Services 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. LEGAL CITATION OF EXISTING MEASURES: [Constitution Act, 1982 and any relevant legislation or policy] ======================================================================= ====== ANNEX II Schedule of Canada SECTOR: Social Services SUB-SECTOR: INDUSTRY CLASSIFICATION: TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) Local Presence (Article 1205) Senior Management (Article 1107) DESCRIPTION: Investment and Cross-Border Services 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. LEGAL CITATION OF EXISTING MEASURES: ======================================================================= ====== ANNEX II Schedule of Canada

SECTOR: Communications SUB-SECTOR: Telecommunications Transport Networks and Services, Radiocommunications and Submarine Cables INDUSTRY CLASSIFICATION: CPC 752 Telecommunications Services

TYPE OF RESERVATION: National Treatment (Article 1102) Most-Favored-Nation Treatment (Article 1103) Senior Management (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 Value-Added Networks (CPC 752323) and Other Message Services (CPC 752329) whose underlying telecommunications transmission facilities are leased from providers of public telecommunications transport networks. LEGAL CITATION OF 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, R.S.C. 1985, c.T-4 Telesat Canada Act, R.S.C. 1985, c.T-6 Radiocommunication Act, R.S.C. 1985, c.R-2; as amended by S.C.1989 c.1, c.17 Telegraphs Act R.S.C. 1985, c.T-5 Telecommunications Policy Framework, 1987 Telecommunications Act (Bill C-62)

======================================================================= ====== ANNEX II Schedule of Canada

SECTOR: Communications SUB-SECTOR: Telecommunications Transport Networks and Services, Radiocommunications and Submarine Cables INDUSTRY CLASSIFICATION: CPC 752 Telecommunication Services (not including CPC 752323 value-Added Network Service or CPC 752329 Other Message Services) TYPE OF RESERVATION: National Treatment (Article 1202) 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 radio-communications, submarine cables, and the provision of telecommunications transport networks and telecommunications transport services. These measures 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 of telecommunications transport networks and telecommunications transport services, radio communication and submarine cables, on a cross-border basis. 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 wire, radiocommunication 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. LEGAL CITATION OF 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; as amended by S.C. 1989, c.1, c.17 Telegraphs Act, R.S.C. 1985, c.T-5 Telecommunications Policy Framework, 1987 Telecommunications Act (Bill C-62) CRTC Decisions, including (85-19), (90-3), (91-10), (91-21), (92-11), (92-12) ======================================================================= ====== Annex II Schedule of Canada SECTOR: Government Finance SUB-SECTOR: Securities INDUSTRY CLASSIFICATION: TYPE OF RESERVATION: National Treatment (Article 1102) DESCRIPTION: Investment Canada reserves the right to adopt or maintain any measure relating to the acquisition or sale or other disposition of bonds, treasury bills, or other kinds of debt securities issued by the Government of Canada, a province or local government by nationals of another Party. LEGAL CITATION OF EXISTING MEASURES: Financial Administrative Act, R.S.C., 1985, Chap. F-11

======================================================================= ===== ANNEX II Schedule of Canada SECTOR: minority Affairs SUB-SECTOR: INDUSTRY CLASSIFICATION: TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) Local Presence (Article 1205) Performance Requirements (Article 1106) Senior Management (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. LEGAL CITATION OF EXISTING MEASURES: None ======================================================================= ====== ANNEX II Schedule of Canada SECTOR: Transportation SUB-SECTOR: Air Transportation INDUSTRY CLASSIFICATION: SIC 4513 Non-Scheduled Air Transport, Specialty Industry TYPE OF RESERVATION: National Treatment (Article 1102) Most-Favored-Nation Treatment (Article 1103) Senior Management (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 2/3 of its directors as Canadian nationals, and not less than 75% of its voting interest owned and

controlled by persons otherwise meeting these requirements. LEGAL CITATION OF EXISTING MEASURES: Aeronautics Act, R.S.C., 1985, c. A-2 Air Regulations, C.R.C., Vol.I, c.2 Air Regulations Series 2, No.2 (Aircraft Marking and Registration Regulations), SOR/90-591 ======================================================================= ====== ANNEX II Schedule of Canada SECTOR: Transportation SUB-SECTOR: Water Transportation INDUSTRY CLASSIFICATION: 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 SIC 4553 Marine Salvage Industry SIC 4554 Piloting Service, Water Transport Industry SIC 4559 Other Service Industries Incidental to Water Transport TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) Most-Favored-Nation Treatment (Articles 1103, 1203) Local Presence (Article 1205) Performance Requirements (Article 1106) Senior Management (Article 1107) DESCRIPTION: Cross-Border Services and Investment Canada reserves the right to adopt or maintain any measure relating to the 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 the Exclusive Economic Zone; (b) with respect to waters above the continental shelf, the transportation of goods in relation to the 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 the 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 nonliving 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, the criteria for the issuance of a temporary cabotage license to foreign vessels, and limits on the number of cabotage licenses issued to foreign vessels. LEGAL CITATION OF 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 Schedule of Canada

SECTOR: Transportation SUB-SECTOR: Water Transportation INDUSTRY CLASSIFICATION: SIC 4541 Freight and Passenger Water Transport Industry SIC 4542 Ferry Industry SIC 4543 Marine Towing Industry SIC 4549 Other Marine Transport Industries SIC 4551 Marine Cargo Handling Industry SIC 4552 Harbour and Port OperationIndustry SIC 4553 Marine Salvage Industry SIC 4554 Piloting Service, Water Transport Industry SIC 4559 Other Service Industries Incidental to Water Transport TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) Most-Favored-Nation Treatment (Articles 1103, 1203) Local Presence (Article 1205) Performance Requirements (Article 1106) Senior Management (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 equivalent to those subject to the maritime services reservation inscribed in page II-U-8. LEGAL CITATION OF EXISTING MEASURES: None ======================================================================= ====== ANNEX II Schedule of Canada SECTOR: Transportation

SUB-SECTOR: Water Transportation INDUSTRY CLASSIFICATION: SIC 4541 Freight and Passenger Water Transport Industry SIC 4542 Ferry Industry SIC 4543 Marine Towing Industry SIC 4549 Other Marine Transport Industries SIC 4551 Marine Cargo Handling Industry SIC 4552 Harbour and Port Operation Industry SIC 4553 Marine Salvage Industry SIC 4554 Piloting Service, Water Transport Industry SIC 4559 Other Service Industries Incidental to Water Transport TYPE OF RESERVATION: National Treatment (Article 1202) 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 the implemention 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. LEGAL CITATION OF EXISTING MEASURES: United States Wreckers Act, R.S.C. 1985, c. U-3 Various Agreements and Arrangements, including: (a) Memorandum or Arrangement on

Great Lakes Pilotage; (b) Canada-United-States Joint Marine Pollution Circumpolar Agreement; (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.

ANNEX IV Schedule of Canada

Canada takes an exception to Article 1103 for all international agreements (bilateral and multilateral) in force or signed prior to the date of entry into force of this Agreement. As for international agreements other than those in force or signed prior to the date of entry into force of this Agreement, Canada takes an exception to Article 1103 for those agreements

involving: 1. 2. 3. 4. Aviation; Fisheries; Maritime matters, including salvage; or Telecommunications.

With respect to provincial measures not yet described in Annex I, pursuant to paragraph 2 of Article 1108, Canada takes an exception for international agreements signed within two years of the entry into force of this Agreement. For greater certainty, the Parties note that 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.

ANNEX V Schedule of Canada

SECTOR: Communication Industries SUB-SECTOR: Postal Services INDUSTRY CLASSIFICATION: SIC 4841 Postal Service Industry LEVEL OF GOVERNMENT: Federal

LEGAL CITATION: 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 the territory of Canada, and its assent is required in order for other persons to sell stamps. ======================================================================= ====== ANNEX V Schedule of Canada

SECTOR: Communications SUB-SECTOR: Radiocommunications INDUSTRY CLASSIFICATION: CPC 752 Telecommunication LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Radiocommunication Act, R.S.C. 1985, c.R-2; as amended by S.C 1989 c.1, c.17, ss. 5, 6 DESCRIPTION: A person desiring to operate a private radio transmission system must obtain a licence from the Department of Communications. The issuance of such licence is subject to spectrum availability and policies regarding its use. In general, priority is given to the use of spectrum for the purpose of developing non-private networks. ======================================================================= ====== ANNEX V Schedule of Canada

SECTOR: Energy SUB-SECTOR: Electricity Transmission

INDUSTRY CLASSIFICATION: [To be provided] LEVEL OF GOVERNMENT: Federal LEGAL CITATION: National Energy Board Act, R.S.C., 1985, c. N-6 DESCRIPTION: Under Part III of the Act, construction and operation of international electricity transmission lines may require approval by the National Energy Board. ======================================================================= ====== ANNEX V Schedule of Canada

SECTOR: Energy SUB-SECTOR: Oil and Gas Transportation INDUSTRY CLASSIFICATION: [To be provided] LEVEL OF GOVERNMENT: Federal LEGAL CITATION: National Energy Board Act R.S.C., 1985 c. N-6 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 extension of pipelines must be approved by the Board. Part IV of the Act requires that all tolls for the transmission of oil and gas on NEB-regulated pipelines and all tariff matters shall be filed with or approved by the NEB. A public hearing may be held in considering toll and tariff matters.

======================================================================= ====== ANNEX V Schedule of Canada

SECTOR: Food, Beverages and Drug Industries, Retail SUB-SECTOR: Liquor, Wine and Beer Stores INDUSTRY CLASSIFICATION: 6021 Liquor Stores 6022 Wine Stores 6023 Beer Stores LEVEL OF GOVERNMENT: Federal LEGAL CITATION: 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 Schedule of Canada

SECTOR: Transportation SUB-SECTOR: Land Transportation INDUSTRY CLASSIFICATION: SIC 457 Public Passenger Transit Systems

LEVEL OF GOVERNMENT: Federal (administration delegated to provinces) LEGAL CITATION: 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.

ANNEX VI Schedule of Canada

SECTOR: Professional Services SUB-SECTOR: Lawyers INDUSTRY CLASSIFICATION: SIC [To be provided]

LEVEL OF GOVERNMENT: Provincial LEGAL CITATION: [To be provided] DESCRIPTION: Lawyers authorized to practise 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.

ANNEX VII PART A Schedule of Canada SECTOR: Financial Services SUB-SECTOR: Insurance

TYPE OF RESERVATION: Article 1404 (Cross-Border Trade) MEASURE: Limitation on purchase of reinsurance from non-resident reinsurers LEVEL OF GOVERNMENT: Federal LEGAL CITATION: The 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 nonresident reinsurer is limited to no more than 25 percent of the risks undertaken by the insurer purchasing the reinsurance. DURATION: Indeterminate ======================================================================= ====== ANNEX VII PART A Schedule of Canada Canada shall set out any existing non-conforming measure maintained at the provincial level by the date of entry into force of this Agreement. ======================================================================= ====== ANNEX VII PART B Schedule of Canada Canada reserves the right to derogate from Article 1405(1) for the securities sector. With respect to this Article, Canada reserves the right to adopt and maintain new measures affecting cross-border trade in securities services that are more restrictive than such measures existing on the entry into force of this Agreement. ======================================================================= ====== ANNEX VII PART C

Schedule of Canada

For the purposes of restrictions that limit foreign ownership of Canadian-controlled financial institutions and for the purposes of limitations on total domestic assets of foreign bank subsidiaries in Canada, Canada commits to 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. Canada commits to 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. ======================================================================= ====== ANNEX VII PART D Schedule of Canada

For the purposes of Article 1413(2), Canada designates the Department of Finance of Canada as its governmental agency responsible for financial services. ======================================================================= ====== ANNEX VII PART E Schedule of Canada

For the purposes of restrictions that limit foreign ownership of Canadian-controlled financial institutions and for the purposes of restrictions on total domestic assets of foreign bank subsidiaries in Canada, an enterprise of another Party, to be considered an enterprise of such other Party must meet the terms and conditions of being controlled by one or more residents of the other Party. 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 fifty 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 fifty 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 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, (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.

Mexico
ANNEX I Schedule of Mexico
SECTOR: All sectors

SUB-SECTOR: All sub-sectors INDUSTRY CLASSIFICATION: Not applicable TYPE OF RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Constituci?n Pol?tica de los Estados Unidos Mexicanos (United Mexican States Political Constitution). T?tulo I Cap?tulo I. Ley de Nacionalidad y Naturalizaci?n (Nationality and Naturalization Law). Cap?tulo VI (Disposiciones generales) Ley Org?nica de la Fracci?n I del Art?culo 27 de la Constituci?n (Organic Law of the First Section of Article 27 of the United Mexican States Political Constitution). Ley para Promover la Inversi?n Mexicana y Regular la Inversi?n Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment). Cap?tulos I y IV (Objeto y Fideicomisos en frontera y litorales) Reglamento de la Ley para Promover la Inversi?n Mexicana y Regular la Inversi?n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment). T?tulo III Cap?tulo I y T?tulo III Cap?tulo III. (Inversi?n extranjera mediante fideicomisos) DESCRIPTION: Investment Foreigners and foreign enterprises, as defined in the Constituci?n Pol?tica de los Estados Unidos Mexicanos; and Mexican enterprises without a foreigners' exclusion clause may not acquire "direct dominion" (dominio directo) over land and water in a 100 kilometers strip along the country's borders or in a 50 kilometers strip inland from its coasts (the Restricted Zone). Nevertheless, foreigners, foreign enterprises and Mexican enterprises may acquire "Certificados de

Participaci?n Ordinaria" (CPO's). Such CPO's grant to the beneficiaries the right to use and enjoy the real estate and to receive the profits that it may obtain from the profitable use of the property. The CPO'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 tourist activities in the Restricted Zone for a period not to exceed 30 years. The trust is renewable if: (a) The beneficiaries of the trust which is to be extinguished or terminated will be beneficiaries of the new trust; (b) the new trust is to be executed under the same terms and conditions as the trust which is to be extinguished or terminated, in respect of the purposes of the trust, the use of real estate and its characteristics; (c) the respective permits are requested within a period of 360 to 181 days prior to the trust be extinguished or terminated; and (d) the provisions of the Ley para Promover la Inversi?n Mexicana y Regular la Inversi?n Extranjera and its regulations are observed. DURATION: Indeterminate ======================================================================= ====== ANNEX I Schedule of Mexico

SECTOR: All sectors SUB-SECTOR: All sub-sectors INDUSTRY CLASSIFICATION: Not applicable TYPE OF RESERVATION: National Treatment (Article 1102)

LEGAL CITATION: Ley Para Promover la Inversi?n Mexicana y Regular la Inversi?n Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment). Reglamento de la Ley Para Promover la Inversi?n Mexicana y Regular la Inversi?n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment). DESCRIPTION: Investment The Comisi?n Nacional de Inversiones Extranjeras in order to evaluate the applications submitted to 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;

(c) In general its contribution to increase the Mexican industrial production and competitiveness. The Comisi?n Nacional de Inversiones Extranjeras may impose performance requirements which are not prohibited by Article 1106 of the Investment Chapter. DURATION: Description shall govern upon entry into force of this Agreement. ======================================================================= ====== ANNEX I Schedule of Mexico

SECTOR: All sectors SUB-SECTOR: All sub-sectors INDUSTRY CLASSIFICATION: Not applicable TYPE OF RESERVATION: National Treatment (Article 1102)

LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Para Promover la Inversi?n Mexicana y Regular la Inversi?n Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment). Reglamento de la Ley Para Promover la Inversi?n Mexicana y Regular la Inversi?n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment). DESCRIPTION: Investment Mexico will review the acquisition, whether directly or indirectly, of more than 49% of the ownership interest of a Mexican enterprise in an unrestricted sector, that is owned or controlled by Mexican nationals, directly or indirectly, by an investor of another Party if the value of the gross assets of the Mexican enterprise is not less than the applicable thresholds, effective on the date of entry into force of this Agreement and adjusted on each anniversary thereof. The calculation of the applicable review thresholds is set out in the following section below. DURATION: Description shall govern upon entry into force of this Agreement. The basis for calculating the threshold will be: (a) USD 25 million, for the three year period commencing on the date of entry into force of this Agreement; (b) USD 50 million, for the three year period commencing on the fourth year after the date of entry into force of this Agreement; (c) USD 75 million, for the three year period commencing on the seventh year after the entry into force of this Agreement; (d) USD 150 million, for the tenth year after entry into force of this Agreement.

Beginning with the Agreement's second year these thresholds shall be adjusted for cumulative inflation based on the US GDP price deflator from the date of entry into force of this Agreement. Beginning with year eleven after entry into force of this Agreement, the threshold will be adjusted for growth in nominal Mexican GDP--but in no case will the threshold to be applied exceed that of Canada. ======================================================================= ====== ANNEX I Schedule of Mexico

SECTOR: All sectors SUB-SECTOR: All sub-sectors INDUSTRY CLASSIFICATION: Not applicable TYPE OF RESERVATION: National Treatment (Article 1102) Senior Management (Article 1107) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Constituci?n Pol?tica de los Estados Unidos Mexicanos (United Mexican States Political Constitution). Ley General de Sociedades Cooperativas (General Law of Cooperative Companies). T?tulo I Cap?tulo I y 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 foreigners. Foreigners cannot engage in general administrative functions. DURATION: Indeterminate ======================================================================= ======

ANNEX I Schedule of Mexico

SECTOR: All sectors SUB-SECTOR: All sub-sectors INDUSTRY CLASSIFICATION: Not applicable TYPE OF RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Federal para el Fomento de la Microindustria (Law to Promote the Microindustry). DESCRIPTION: Investment Only Mexican nationals and Mexican enterprises with foreigners' exclusion clause may qualify as microindustry enterprises. DURATION: Indeterminate ======================================================================= ====== ANNEX I Schedule of Mexico

SECTOR: Agriculture, Livestock, Forestry, and Lumber Activities SUB-SECTOR: Agriculture, Livestock or Forestry INDUSTRY CLASSIFICATION: CMAP 1111 Agriculture CMAP 1112 Livestock CMAP 120011 Forestry CMAP 120012 Exploitation of Forest Nurseries CMAP 120030 Collection of Forest Products CMAP 120040 Falling Trees TYPE OF RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Constituci?n Pol?tica de los Estados Unidos Mexicanos (United Mexican States Political Constitution). Ley Agraria (Agrarian Law). T?tulo VI, DESCRIPTION: Investment

All enterprises constituted in Mexico which own land for agriculture, livestock or forestry purposes, must issue a special type of shares ("T" shares) which represent the value of the aforementioned land at the time of its acquisition. Investors of another Party and their investments may own up to 49 percent of such "T" shares. DURATION: Indeterminate ======================================================================= ====== ANNEX I Schedule of Mexico

SECTOR: Communications SUB-SECTOR: Entertainment Services (Broadcasting and Multipoint Distribution Systems, (MDS), and Cable Television) INDUSTRY CLASSIFICATION: CMAP 941104 Private Production and Transmission of Radio Programs (Limited to Production and Transmission of Radio Programs, MDS and uninterrupted music) CMAP 941105 Private Services of Production, Transmission and Repetition of Television Programming (Limited to Production, Transmission and Repetition of Television Programs, MDS, Direct Broadcasting Systems, and High Definition Television and Cable Television) TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) LEVEL OF GOVERNMENT: Federal

LEGAL CITATION: Ley Federal de Radio y Televisi?n (Radio and Television Federal Law), T?tulo IV (Funcionamiento), Cap?tulo III (Programaci?n) 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 (Regulations of the Radio and Television Federal Law and Motion Picture Industry Law relating

to Radio o Television Content), T?tulo III (Programaci?n)

Reglamento del Servicio de Televisi?n por Cable, (Cable Television Regulations) Cap?tulo VI (Programaci?n) DESCRIPTION: Cross-Border Services For the protection of copyrights a holder of a concession for a commercial broadcast station or for a cable television system in Mexico is 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 of such programming within Mexico. The authorization will be granted if the request includes documentation showing that the foreign government, sponsoring international organization, or the private entrepreneur or organizer has granted the license ("derechos") to retransmit or distribute by cable such program. ======================================================================= ====== ANNEX I Schedule of Mexico

SECTOR: Communications SUB-SECTOR: Entertainment Services (Cable Television) INDUSTRY CLASSIFICATION: CMAP 941105 Private Services of Production, Transmission and Retransmission of Television Programming (Limited to cable television) TYPE OF RESERVATION: National Treatment (Articles Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Constituci?n Pol?tica de los Estados Unidos Mexicanos(United Mexican States Political Constitution), Article 32 1102, 1202)

Ley de V?as Generales de Comunicaci?n (General Means of Communication Law), Libro I Cap?tulo III (Concesiones, Permisos y Contratos) Ley Federal de Radio y Televisi?n (Radio and Television Federal Law), T?tulo III, (Concesiones, Permisos e Instalaciones) Ley para Promover la Inversi?n Mexicana y Regular la Inversi?n Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment) Reglamento del Servicio de Televisi?n por Cable (Cable Television Regulations), Cap?tulo II (Concesiones) Reglamento de la Ley para Promover la Inversi?n Mexicana y Regular la Inversi?n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment) DESCRIPTION: Cross-Border Services 1. A concession granted by the Secretar?a de Comunicaciones y Transportes is required to construct and operate, or to operate, cable television systems. Such concession is granted only to Mexican nationals or Mexican enterprises. Investment: 2. Investors of another Party and their investments may own, directly or indirectly, up to 49 percent of an enterprise established or to be established in Mexico which owns or operates a cable television systems or provides cable television services. DURATION: Cross-Border Services Indeterminate. Investment Paragraph 2 of the description shall govern upon entry into force of this Agreement; subject to discussion by the Parties five years after the entry into force of this Agreement.

======================================================================= ====== ANNEX I Schedule of Mexico

SECTOR: Communications SUB-SECTOR: Entertainment Services INDUSTRY CLASSIFICATION: CMAP 941103 Private Exhibition of Films (cinema) TYPE OF RESERVATION: National Treatment (Article 1202) Performance Requirements (Article 1106) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley de la Industria Cinematogr?fica (Motion Picture Industry Law) Reglamento de la Ley de la Industria Cinematogr?fica (Regulations of the Motion Picture Industry) DESCRIPTION: Cross-Border Services and Investment On an annual basis, 30 percent of the screen time of every theater may be reserved for films produced, either within or outside Mexico, by Mexican enterprises. DURATION: The description shall govern upon entry into force of this Agreement. Indeterminate ======================================================================= ====== ANNEX I Schedule of Mexico SECTOR: Communications SUB-SECTOR: Entertainment Services (Broadcasting, Multipoint Distribution Systems (MDS), and Cable Television) INDUSTRY CLASSIFICATION: CMAP 941104 Private Production and 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 Programs, MDS, Direct Broadcasting Systems, High-Definition Television and Cable Television) TYPE OF RESERVATION: National Treatment (Article 1202) Performance Requirement (Article 1106) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Federal de Radio y Televisi?n, (Radio and Television Federal Law), T?tulo IV (Funcionamiento), Cap?tulo III (Programaci?n) 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 (Regulation of Radio and Television Federal Law and Regulations of the Motion Picture Industry Law relating to Broadcasting Content), T?tulo III (Programaci?n) Reglamento del Servicio de Televisi?n por Cable (Cable Television Regulations), Cap?tulo VI (Programaci?n) 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 Secretar?a de Gobernaci?n authorizes the use of another language. A majority of personnel involved in the production and performance of a live broadcast programming activity must be Mexican nationals. To perform in Mexico, a radio and television announcer or presentor who is not a Mexican national must obtain an authorization from the Secretar?a de Gobernaci?n.

DURATION: Indeterminate ======================================================================= ====== ANNEX I Schedule of Mexico

SECTOR: Communications SUB-SECTOR: Entertainment Services (Broadcasting, and Multipoint Distribution Systems and Cable Television) INDUSTRY CLASSIFICATION: CMAP 941105 Private Services of Production, Transmission and Retransmission of Television Programming (Limited to Broadcasting, Cable Television and Multipoint Distribution Systems) TYPE OF RESERVATION: National Treatment (Article 1202) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Federal de Radio y Televisi?n, (Radio and Television Federal Law), T?tulo IV (Funcionamiento), Cap?tulo III (Programaci?n) 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 (Regulations of the Radio and Television Federal Law and Regulation of the Motion Picture Industry Law relating to Broadcasting Content), T?tulo III (Programaci?n) Reglamento del Servicio de Televisi?n por Cable, (Cable Television Regulations), Cap?tulo VI (Programaci?n) DESCRIPTION: Cross-Border Services and Investment The use of the Spanish language or Spanish subtitles is required for advertising broadcast or distributed in Mexico. Advertising included in programs transmitted directly from outside Mexico may not be broadcast in such programs when they are retransmitted or distributed in Mexico

DURATION: Indeterminate ======================================================================= ====== ANNEX I Schedule of Mexico

SECTOR: Communications SUB-SECTOR: Telecommunications (Enhanced or Value-Added Services) INDUSTRY CLASSIFICATION: CMAP 720006 Other Telecomunications Services (Limited to Enhanced or Value-Added Services) TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley de V?as Generales de Comunicaci?n (General Means of Communication Law), Libro Primero, Cap?tulo III (Concesiones, Permisos y Contratos) Reglamento de Telecomunicaciones (Telecommunications Regulations), Cap?tulo 4, (Permisos) Ley para Promover la Inversi?n Mexicana y Regular la Inversi?n Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment) Reglamento de la Ley para Promover la Inversi?n Mexicana y Regular la Inversi?n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment) 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 cross-border basis. Investment 1. Investors of another Party and their investments may own 100 percent of an enterprise established or to be established in Mexico that provides any telecommunication enhanced or value-added service, other than videotext or enhanced packet switching services. 2. Investors of another Party and their investments may own, directly or indirectly, up to 49 percent of an enterprise established or to be established in Mexico that provides videotext or enhanced packet switching services. DURATION: Cross-border Services Paragraphs 2 and 3 of the description shall govern upon entry into force of this Agreement. Commencing July 1, 1995, a person of Canada or the United States may provide videotext or enhanced packet switching services without the need to establish a local presence in Mexico. Investment Paragraph 1 of the description shall govern upon entry into force of this Agreement. Commencing July 1, 1995, investors of another Party and their investments may own 100 percent of an enterprise established or to be established in Mexico that provides videotext or enhanced packet switching services. ======================================================================= ====== ANNEX I Schedule of Mexico

SECTOR: Communications

SUB-SECTOR: Transport Telecommunications General Means of Communication INDUSTRY CLASSIFICATION: CMAP 7200 Communications CMAP 7100 Transport CMAP 9411 Radio and Television TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley de V?as Generales de Comunicaci?n (General Means of Communication Law) Ley Federal de Radio y Televisi?n, (Radio and Television Federal Law) Reglamento del Servicio de Televisi?n por Cable (Cable Television Regulations) Reglamento de Telecomunicaciones (Telecommunications Regulations) DESCRIPTION: Investment Foreign Governments and Foreign state enterprises or their investments may not invest, directly or indirectly, in a Mexican enterprise providing services related to the general means of communication set out herein. DURATION: Indeterminate ======================================================================= ====== ANNEX I Schedule of Mexico

SECTOR: Construction SUB-SECTOR: INDUSTRY CLASSIFICATION: CMAP 501101 Residential or Housing Construction CMAP 501102 Non-residential Construction Projects CMAP 501200 Construction of Urbanization 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 Installations in CMAP 502001 Hydraulic and Sanitation Buildings CMAP 502002 Electrical Installations in Buildings CMAP 502003 Telecommunications Installations CMAP 502004 Other Special Installations CMAP 503001 Earth Movement 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 RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley para Promover la Inversi?n Mexicana y Regular la Inversi?n Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment), Cap?tulos II y III Reglamento de la Ley para Promover la

Inversi?n Mexicana y Regular la Inversi?n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment). 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 interests of an enterprise established or to be established in Mexico that carry out construction activities as set out in the classification mentioned above. DURATION: Five years after the entry into force of this Agreement, investors of another Party and their investments may own 100 percent of the ownership interests of such enterprises without Comisi?n Nacional de Inversiones Extranjeras' prior approval. ======================================================================= ====== ANNEX I Schedule of Mexico

SECTOR: Construction SUB-SECTOR: Not applicable INDUSTRY CLASSIFICATION: CMAP 503008 Exploration and drilling works and services done by specialized contractors excluding the case when these same works and services are done by personnel of PEMEX in the activities classified under industrial classification 220000. TYPE OF RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Constituci?n Pol?tica de los Estados Unidos Mexicanos (United Mexican States Political Constitution), T?tulo I Cap?tulo I. Ley Reglamentaria del Art?culo 27 Constitucional en el Ramo del Petr?leo (Regulatory Law of Article 27 of the

United Mexican States Political Constitution in matters related with Petroleum) Ley para Promover la Inversi?n Mexicana y Regular la Inversi?n Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment) Cap?tulo I Reglamento de la Ley para Promover la Inversi?n Mexicana y Regular la Inversi?n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment) DESCRIPTION: Investment Risk-sharing services contracts are prohibited. Prior approval of the Comisi?n Nacional de Inversiones Extranjeras is required for investors of another Party and their investments to own, directly or indirectly, more than 49 percent of the ownership interests of an enterprise established or to be established in Mexico involved in "non-risk sharing" service contracts for the drilling of petroleum and gas wells. DURATION: Indeterminate ======================================================================= ====== ANNEX I Schedule of Mexico

SECTOR: Educational Services SUB-SECTOR: Private Schools INDUSTRY CLASSIFICATION: CMAP 921101 Preschool Private Educational Services CMAP 921102 Primary School Private Educational Services CMAP 921103 Secondary School Private Educational Services CMAP 921104 Middle High School Private Educational Services

CMAP 921105 Higher Private Educational Services CMAP 921106 Private Educational Services that Combine Preschool, Primary, Secondary, Middle High and Higher Instruction TYPE OF RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley para Promover la Inversi?n Mexicana y Regular la Inversi?n Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment) Reglamento de la Ley para Promover la Inversi?n Mexicana y Regular la Inversi?n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment) Ley Para la Coordinaci?n de la Educaci?n Superior (Law for the Coordination of the Higher Education), Cap?tulo II Ley Federal de Educaci?n (Education Law), Cap?tulo III 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 interests of an enterprise established or to be established in Mexico that operates educational services as set out in the classification mentioned above. DURATION: Indeterminate ======================================================================= ====== ANNEX I Schedule of Mexico

SECTOR: Energy

SUB-SECTOR: Commercialization of Petroleum Products INDUSTRY CLASSIFICATION: CMAP 623050 Retail Sales of Gas of liquified petroleum gas (LPG), including the installation of fixed deposits when the facilities are built by the same establishment. TYPE OF RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Reglamentaria del Art?culo 27 Constitucional en el Ramo del Petr?leo (Regulatory Law of Article 27 of the United Mexican States Political Constitution related to Oil). Ley para Promover la Inversi?n Mexicana y Regular la Inversi?n Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment). Cap?tulo I Reglamento de la Ley Reglamentaria del Art?culo 27 Constitucional en el Ramo de Petr?leo (Reglamentation of the Regulatory Law of Article 27 of the United Mexican States Political Constitution related to Oil) Reglamento de la Distribuci?n de Gas.(Regulations of the Distribution of LPG). Cap?tulos I y II (Autorizaciones y permisos) Reglamento de la Ley para Promover la Inversi?n Mexicana y Regular la Inversi?n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment). DESCRIPTION: Investment Only Mexican nationals and Mexican enterprises with foreigners' exclusion clause may engage in the distribution of liquified Petroleum gas. DURATION: Indeterminate ======================================================================= ====== ANNEX I Schedule of Mexico

SECTOR: Energy SUB-SECTOR: Commercialization of Petroleum Products INDUSTRY CLASSIFICATION: CMAP 6260000 Retail Outlets of Gasoline and Diesel. Includes Lubricants, Oils and Additives for Resale in these Retail Outlets. TYPE OF RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Reglamentaria del Art?culo 27 Constitucional en el Ramo del Petr?leo (Regulatory Law of Article 27 of the United Mexican States Political Constitution related to Oil) Reglamento de la Ley Reglamentaria del Art?culo 27 Constitucional en el Ramo del Petr?leo (Reglamentation of the Regulatory Law of Article 27 of the United Mexican States Political Constitution related to Oil). DESCRIPTION: Only Mexican nationals and Mexican enterprises with foreigners' exclusion clause may acquire, establish and operate retail outlets engaged in the resale of gasoline, diesel, lubricants, oils and additives. DURATION: The description shall govern upon entry into force of this Agreement ======================================================================= ====== ANNEX I Schedule of Mexico

SECTOR: Fishing SUBECTOR: Fishing INDUSTRY CLASSIFICATION: CMAP 130011 Fishing on the High Seas CMAP 130012 Coastal Fishing CMAP 130013 Fresh Water Fishing CMAP 130014 Fishing in the Economic Exclusive Zone

TYPE OF RESERVATION: National Treatment (Article 1102) Most-Favored-Nation Treatment (Article 1103) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley de Pesca (Fishing Law) Cap?tulo I. Ley de Navegaci?n y Comercio Mar?timo (Navigation and Maritime Commerce Law), Libro II T?tulo Unico Cap?tulo V Ley Federal del Mar (Federal Sea Law) Ley Federal de Aguas (Federal Law of Water) Ley para Promover la Inversi?n Mexicana y Regular la Inversi?n Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment). Reglamento de la Ley para Promover la Inversi?n Mexicana y Regular la Inversi?n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment). DESCRIPTION: Investment With respect to enterprises established or to be established in Mexico performing coastal fishing, fresh water fishing and fishing in the exclusive economic zone, investors of another Party and their investments may own, directly or indirectly, up to 49 percent of the ownership interest of such enterprises. With respect to enterprises established or to be established in Mexico performing fishing on the high seas, prior approval of the Comision 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 interests of enterprises established or to be established in Mexico performing fishing on the high seas. DURATION: Indeterminate

======================================================================= ====== ANNEX I Schedule of Mexico

SECTOR: Manufacturing and Assembly of Goods SUB-SECTOR: Auto Parts Industry INDUSTRY CLASSIFICATION: CMAP 383103 Manufacturing of Parts and Accessories for Electrical Automotive Systems CMAP 384121 Manufacture and Assembly of Car and Truck Bodies and Tows CMAP 384122 Manufacture of Car and Trucks 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 RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Annex 300-A (Trade and Investment in the Automotive Industry Sector) of this Agreement. Ley Para Promover la Inversi?n Mexicana y Regular la Inversi?n Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment). Reglamento de la Ley Para Promover la Inversi?n Mexicana y Regular la Inversi?n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment). Decreto para el fomento y modernizaci?n de la Industria Automotriz (Decree for the Development and Modernization of the Automotive

Industry) ("Auto Decree"). Decreto que Determina Reglas para la Aplicaci?n del Decreto para el Fomento y Modernizaci?n de la Industria Automotriz (Resolution that Establishes Rules for the Implementation of the Auto Decree) ("Auto Decree Implementing Regulations"). DESCRIPTION: Investors of another Party and their investments may own, directly or indirectly, up to 49 percent of the ownwership interests of an enterprise established or to be established in Mexico and engaged in the auto parts industry. Investors of another Party and their investments that qualify as "national suppliers" may own 100% of an enterprise established or to be established in Mexico engaged in the manufactured of specified auto parts. To qualify as "national supplier", the enterprise must: (a) obtain a national value added calculated as set out in the "Auto Decree Implementing Regulations" of at least 20%; and (b) not be controlled or related, directly or indirectly, to a manufacturer of motor vehicles. DURATION: Annex 300-A (Trade and Investment in the Automotive Sectors) of Chapter Three (National Treatment and Market Access) shall govern. Commencing on the sixth year after the entry into force of this Agreement, investors of another Party and their investments may own 100 percent of the ownership interests of an enterprise established or to be established in Mexico engaged in auto parts industry. (See also page I-M-39 of this Schedule - performance requirements) ======================================================================= ======

ANNEX I Schedule of Mexico

SECTOR: Manufacture of Goods SUB-SECTOR: Automotive Industry INDUSTRY CLASSIFICATION: CMAP 383103 Manufacturing of Parts and 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 Trucks 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 RESERVATION: Performance Requirements (Article 1106) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Annex 300-A (Trade and Investment in the Automotive Sector) of Chapter Three (Market Access) of this Agreement Decreto para el fomento y modernizaci?n de la Industria Automotriz (Decree for the Development and Modernization of the Automotive Industry) ("Auto Decree") Decreto que Determina Reglas para la Aplicaci?n del Decreto para el Fomento y Modernizaci?n de la Industria Automotriz (Resolution that Establishes Rules for the Implementation of the Auto Decree) ("Auto Decree Implementing Regulations")

DESCRIPTION: Investment Annex 300-A (Trade and Investment in the Automotive Sector) of Chapter Three (Market Access) shall govern. A summary of performance requirements in the automotive industry follows: (a) National value added shall constitute at least 20% of the total value of sales of an enterprise of the autoparts industry or of a "National Supplier". In calculating the national value added, custom duties shall be included in the value of imports. (b) A manufacturer of motor vehicles must attain specified levels of national value added from suppliers of Mexican parts (enterprises of the autoparts industry and national suppliers) and must comply with specified trade balance requirements in order to receive permits for the importation of new motor vehicles. (c) Manufacturers of autotransportation vehicles may only import the types of autotransportation vehicles it produces in Mexico and in a quantity not exceed 50% of the number of such vehicles it produces in Mexico in a year. DURATION: Annex 300-A (Trade and Investment in the Automotive Sector) of Chapter Three (Market Access) shall govern upon entry into force of this Agreement Commencing on the sixth year after entry into force of this Agreement Mexico will eliminate restrictions on the number of an autotransportation vehicles that a manufacture autotransportation vehicles may import. Commencing on the eleventh year after the entry into force of this Agreement, Mexico will eliminate all

performance requirements in the Auto Decree and the "Auto Decree Implementing Regulations". ======================================================================= ====== ANNEX I Schedule of Mexico

SECTOR: Manufacture of Goods SUB-SECTOR: Maquiladora Industry INDUSTRY CLASSIFICATION: Not applicable TYPE OF RESERVATION: Performance Requirements (Article 1106) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Aduanera (Customs Law) Decreto para el Fomento y Operaci?n de la Industria Maquiladora de Exportaci?n (Decree for the Promotion and Operation of Maquiladora Industry for Export) 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 50% of the total value of its exports. DURATION: Domestic market may not exceed: (a) during the first year of entry into force of this Agreement, 55% of the total value of its exports; (b) during the second year after the date of entry into force of this Agreement, 60% of the total value of its exports; (c) during the third year after the date of entry into force of this Agreement, 65% of the total value of its exports;

(d) during the fourth year after the date of entry into force of this Agreement, 70% of the total value of its exports; (e) during the fifth year after the date of entry into force of this Agreement, 75% of the total value of its exports; (f) during the sixth year after the date of entry into force of this Agreement, 80% of the total value of its exports; (g) during the seventh year after the date of entry into force of this Agreement, 85% of the total value of its exports; (h) from the eighth year after the date of entry into force of this Agreement and thereafter, persons may not be subject to this requirement. ======================================================================= ====== ANNEX I Schedule of Mexico

SECTOR: Manufacture of Goods SUB-SECTOR: Not applicable INDUSTRY CLASSIFICATION: Not applicable TYPE OF RESERVATION: Performance Requirements (Article 1106) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Reglamentaria del Art?culo 131 de la Constituci?n Pol?tica de los Estados Unidos Mexicanos en Materia de Comercio Exterior (Mexican Foreign Trade Act) Decreto para el Fomento y Operaci?n de las Empresas Altamente Exportadoras" (Decree for the Promotion and Operation of High-Export Firms) DESCRIPTION: Investment 1. "Direct exporters" authorized by

the Secretar?a de Comercio y Fomento Industrial to operate under the "ALTEX Decree" must export at least 40% of their total sales or $2,000,000. U.S. dollars. 2. "Indirect exporters" authorized by the Secretar?a de Comercio y Fomento Industrial to operate under the "ALTEX Decree" must export at least 50% of their total sales. DURATION: Seven years after the entry into force of this Agreement, direct and indirect exporters will not be subject to the above mencioned percentage. ======================================================================= ====== ANNEX I Schedule of Mexico SECTOR: Manufacture of Goods SUB-SECTOR: Not applicable INDUSTRY CLASSIFICATION: Not applicable TYPE OF RESERVATION: Performance Requirements (Article 1106) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Reglamentaria del Art?culo 131 de la Constituci?n Pol?tica de los Estados Unidos Mexicanos en Materia de Comercio Exterior (Mexican Foreign Trade Act). Ley Aduanera (Customs Law). Programa de Importaci?n Temporal para Producir Art?culos de Exportaci?n (Temporal Import Program to Produce Export Goods). DESCRIPTION: Investment Persons authorized by Secretar?a de Comercio y Fomento Industrial to operate under the "PITEX Decree" are required to: (a) export at least 30% of their total production for the temporary entry of machinery,

equipment, instruments, molds and durable tools used in the manufacturing process; equipment used to handle materials directly related to exported such goods; and research, industrial security, quality control, communication, training personnel, computer and environmental devices, equipment and accessories or others related with the process of the goods exported. (b) export at least 10% of their total production or $500,000 U.S.dollars for the temporary import of raw materials, parts and components totally used as inputs on the export merchandise, packages, bottles, containers and trailer's containers which are fully used to contain export merchandise; fuel, lubricants, auxiliary materials, reparation of tools and equipment consumed in the export process. DURATION: As from the eighth year after the date of entry into force of this Agreement such persons will not be subject to the above mentioned percentages. ======================================================================= ====== ANNEX I Schedule of Mexico

SECTOR: Manufacturing Industry SUB-SECTOR: Artificial explosives, fireworks, firearms and cartridges INDUSTRY CLASSIFICATION: CMAP 352236 Manufacturing of Artificial Explosives and Fireworks CMAP 382208 Manufacturing of Firearms and Cartridges TYPE OF RESERVATION: National Treatment (Article 1102) Senior Management (Article 1107) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Federal de Armas de Fuego y

Explosivos (Federal Law of Firearms and Explosives) T?tulo III Cap?tulo I Ley para Promover la Inversi?n Mexicana y Regular la Inversi?n Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment) Reglamento de la Ley Federal de Armas de Fuego y Explosivos (Regulations of the Federal Law of Firearms and Explosives) Cap?tulo IV Reglamento de la Ley para Promover la Inversi?n Mexicana y Regular la Inversi?n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment) DESCRIPTION: Investment Investors of another Party and their investments may own, directly or indirectly, up to 49 percent of the ownership interest of an enterprise established or to be established in Mexico that manufacture artificial explosives and fireworks, and ammunition as set out in the classification mentioned above. Foreigners cannot appoint directors nor become members of the board of directors of such enterprises. DURATION: Indeterminate ======================================================================= ====== ANNEX I Schedule of Mexico

SECTOR: Mining SUB-SECTOR: Extraction and Exploitation of Minerals INDUSTRY CLASSIFICATION: CMAP 210000 Exploitation of Mineral Carbon 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 other Gravels for construction and

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 RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Minera (Mining Law) Ley Para Promover la Inversi?n Mexicana y Regular la Inversi?n Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment)

Reglamento de la Ley Minera (Mining Law Regulations) Reglamento de la Ley Para Promover la Inversi?n Mexicana y Regular la Inversi?n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment) 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 interests of an enterprise established or to be established in Mexico engaged in the extraction or exploitation of all kind of minerals. DURATION: The description shall govern upon the entry into force of this Agreement. Commencing on the sixth year after the entry into force of this Agreement investors of another Party and their investments may own 100 percent of ownership interests of an enterprise established or to be established in Mexico engaged in such activities. ======================================================================= ====== ANNEX I Schedule of Mexico

SECTOR: Printing, Editing and Associated Industries SUB-SECTOR: Newspaper Publishing INDUSTRY CLASSIFICATION: CMAP 342001 Newspaper Publishing TYPE OF RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Para Promover la Inversi?n Mexicana y Regular la Inversi?n Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment)

Reglamento de la Ley para Promover la Inversi?n Mexicana y Regular la Inversi?n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment) DESCRIPTION: Investment Investors of another Party and their investments may own 100 percent of an enterprise established or to be established in Mexico engaged in the simultaneous printing and distribution in Mexico of a daily newspaper that is published outside of Mexico. Investors of another Party and their investments may own, directly or indirectly, up to 49 percent of an enterprise established or to be established in Mexico engaged in the publication of daily newspapers written primarily for a Mexican audience and distributed in Mexico. For purposes of this reservation, daily newspapers are those published at least five days a week. DURATION: The description shall govern upon entry into force of this Agreement. ======================================================================= ====== ANNEX I Schedule of Mexico

SECTOR: Professional, Technical and Specialized Services and Other Services Provider by natural persons SUB-SECTOR: Medical Doctors INDUSTRY CLASSIFICATION: CMAP 9231 Private Medical, Odontological and Veterinary Services (limited to medical and odontological services) TYPE OF RESERVATION: National Treatment (Article 1202) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Federal del Trabajo (Federal Labor Law) DESCRIPTION: Cross-Border Services

Only Mexican nationals licensed as doctors in Mexico may provide medical in-house services in Mexican enterprises. DURATION: Indeterminate ======================================================================= ====== ANNEX I Schedule of Mexico

SECTOR: Professional, Technical and Specialized Services and Services Provider by natural persons SUB-SECTOR: Specialized Personnel INDUSTRY CLASSIFICATION: CMAP 951012 Custom Brokers and Representation Agency Services (limited to shippers' export declarations) TYPE OF RESERVATION: National Treatment (Article 1202) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Aduanera, (Customs Law) Cap?tulo Unico, T?tulo Noveno 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 the representative (apoderado aduanal) employed by the exporter and authorized by the Secretar?a de Hacienda y Cr?dito P?blico for this purpose. DURATION: Indeterminate; subject to discussion by the Parties five years after the entry into force of this Agreement. ======================================================================= ====== ANNEX I Schedule of Mexico

SECTOR: Professional, Technical and Specialized Services and Other Services Provider by natural persons

SUB-SECTOR: Professional Services INDUSTRY CLASSIFICATION: CMAP 9510 Professional, Technical and Specialized Services (limited to Professional Services) TYPE OF RESERVATION: National Treatment (Article 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal and State LEGAL CITATION: Ley Reglamentaria del Art?culo 5o. Constitucional, relativo al ejercicio de las profesiones en el Distrito Federal y sus regulaciones (Regulatory Law of Article 5 of the United Mexican States Political Constitution in relation to Professional Services and its regulations) Cap?tulo III, Secci?n Tercera, Cap?tulos IV y V Equivalent State Laws Ley General de Poblaci?n (General Population Law) Cap?tulo III DESCRIPTION: Cross-Border Services Only Mexican nationals may be licensed at the federal level, in the Distrito Federal, and in the States of Baja California Sur, Colima, Chihuahua, Durango, Jalisco, Estado de M?xico, Morelos, Nayarit, Nuevo Le?n, Puebla, Quer?taro, Sonora, Tabasco and Veracruz in professions that require a "c?dula professional". Only a permanent resident (inmigrado or inmigrante) in Mexico may be granted a waiver of the citizenship requirement by the Supreme Court to be licensed as a professional at the federal level. DURATION: Citizenship and permanent residency requirements are subject to removal within two years after the entry into force of this Agreement in accordance with Article 1210(3). Upon removal of these requirements, a foreign professional will be required to have non-immigrant visitor status and an address in Mexico.

With respect to legal services see Mexico's Schedule in Annex II, p. M10. ======================================================================= ====== ANNEX I Schedule of Mexico

SECTOR: Professional, Technical and Specialized Services and Services Provided by natural persons SUB-SECTOR: Professional Services INDUSTRY CLASSIFICATION: CMAP 951002 Legal Services and Foreign Legal Consultants TYPE OF RESERVATION: National Treatment (Article 1102 and 1202) Most-Favored-Nation Treatment (Articles 1103 and 1203) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal and State LEGAL CITATION: Ley Reglamentaria del Art?culo 5o. Constitucional, relativo al ejercicio de las profesiones en el Distrito Federal (Regulatory Law of Article 5' of the United Mexican States Political Constitution in relation to Professional Services), Cap?tulo I, Cap?tulo III, Secci?n Tercera Reglamento de la Ley para Promover la Inversi?n Mexicana y Regular la Inversi?n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment) 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 Mexico. Lawyers licensed in a Canadian province that allows partnerships between lawyers licensed in that province 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, shall not exceed the number of lawyers licensed in Mexico serving as partners, and their ownership interest in the partnership. A lawyer licensed in Canada shall not be allowed to practice or advise on Mexican law. A law firm established in Mexico resulting from the 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 the regime for foreign legal consultants established in page M-2 of Schedule VI. DURATION: The description shall govern upon entry into force of this Agreement. ======================================================================= ====== ANNEX I Schedule of Mexico

SECTOR: Professional, Technical and Specialized Services and Services Provided by natural persons SUB-SECTOR: Professional Services INDUSTRY CLASSIFICATION: CMAP 951003 Accounting and Auditing Services (limited to accounting services) TYPE OF RESERVATION: National Treatment (Article 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: C?digo Fiscal de la Federaci?n, (Federal Tax Code), T?tulo Tercero, Cap?tulo Unico Reglamento del C?digo Fiscal de la Federaci?n, (Regulations of the Federal Tax Code) Reglamento de la Ley Para Promover la Inversi?n Mexicana y Regular la Inversi?n Extranjera (Regulations of the Law to Promote Mexican Investment

and to Regulate Foreign Investment) 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 the following: (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. DURATION: Citizenship and permanent residency requirements are subject to removal within two years after the entry into force of this Agreement in accordance with Article 1210(3). Upon removal of these requirements, a foreign professional will be required to have non-immigrant visitor status and an address in Mexico. ======================================================================= ====== ANNEX I Schedule of Mexico

SECTOR: Professional, Technical and Specialized Services and Services Provided by natural persons SUB-SECTOR: Specialized Services INDUSTRY CLASSIFICATION: CMAP 951001 Notary Public (limited to Corredores P?blicos) TYPE OF RESERVATION: National Treatment (Articles 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal and State LEGAL CITATION: C?digo de Comercio (Commerce Code), Libro Primero, T?tulo Tercero Reglamento de la Ley para Promover la Inversi?n Mexicana y Regular la

Inversi?n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment) Ley para Promover la Inversi?n Mexicana y Regular la Inversi?n Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment) DESCRIPTION: Cross-Border Services 1. Only a Mexican by birth may be licensed to be a commercial notary public. 2. A commercial notary public may not have any business affiliations with any person to provide commercial notary public services. DURATION: 1. Citizenship and permanent residency requirements are subject to removal within two years after the entry into force of this Agreement in accordance with Article 1210(3). Upon removal of these requirements, a foreign professional will be required to have non-immigrant visitor status and an address in Mexico. 2. Indeterminate ======================================================================= ====== ANNEX I Schedule of Mexico

SECTOR: Professional, Technical and Specialized Services and Services Provided by Natural Persons SUB-SECTOR: Specialized Services INDUSTRY CLASSIFICATION: CMAP 951001 Notary Public TYPE OF RESERVATION: National Treatment (Article 1102, 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal and State LEGAL CITATION: Ley del Notariado del Distrito Federal (Notary Law of the Federal District, and its equivalents at state laws) Ley para Promover la Inversi?n

Mexicana y Regular la Inversi?n Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment) Reglamento de la Ley para Promover la Inversi?n Mexicana y Regular la Inversi?n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment) DESCRIPTION: Cross-Border Services and Investment Only Mexicans by birth may be licensed to be notaries public. A notary public may not have any business affiliations with any person to provide notary public services. DURATION: Indeterminate ======================================================================= ====== ANNEX I Schedule of Mexico

SECTOR: Professional, Technical and Specialized Services and Services Provided by Natural Persons SUB-SECTOR: Specialized Services INDUSTRY CLASSIFICATION: CMAP 923121 Private Veterinary Services to Cattle TYPE OF RESERVATION: National Treatment (Article 1202) LEVEL OF GOVERNMENT: Federal, State and Local LEGAL CITATION: Reglamento de Control de Productos Qu?mico-Farmac?uticos, Biol?gicos, Alimenticios, Equipos y Servicios para Animales, (Chemical Products Control Regulations) Cap?tulos IV y V DESCRIPTION: Cross-Border Services Veterinarians responsible for enterprises managing chemical, pharmaceutical and biological goods for application to animals must be Mexican nationals. A Mexican national who is a licensed professional must be responsible for the laboratories of such enterprises.

DURATION: Citizenship and permanent residency requirements are subject to removal within two years after the entry into force of this Agreement in accordance with Article 1210(3). Upon removal of these requirements, a foreign professional will be required to have non-immigrant visitor status and an address in Mexico. ======================================================================= ====== ANNEX I Schedule of Mexico

SECTOR: Retail Commerce SUB-SECTOR: Sales of Non-Food Products in Specialized Establishment INDUSTRY CLASSIFICATION: CMAP 623087 Sales of Firearms, Cartridges and Ammunition CMAP 612024 Wholesale Commerce, not elsewhere Classified (limited to a firearms, cartridges and ammunition) TYPE OF RESERVATION: National Treatment (Article 1102) Senior Managment (Article 1107) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Federal de Armas de Fuego y Explosivos (Federal Law of Firearms and Explosives), T?tulo Tercero, Cap?tulo I Reglamento de la Ley de Armas de Fuego y Explosivos (Regulation of the Federal Law of Firearms and Explosives), Cap?tulo IV Ley para Promover la Inversi?n Mexicana y Regular la Inversi?n Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment) Reglamento de la Ley para Promover la Inversi?n Mexicana y Regular la Inversi?n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment) DESCRIPTION: Investment

Investors of another Party and their investments may own, directly and indirectly, up to 49 percent of the ownership interest of an enterprise established or to be established in Mexico that sells firearms, cartridges and ammunition as set out in the classification mentioned above Foreigners cannot appoint or elect members to be directors nor become members of the board of directors of such enterprises. DURATION: Indeterminate ======================================================================= ====== ANNEX I Schedule of Mexico

SECTOR: Religious Services SUB-SECTOR: Not applicable INDUSTRY CLASSIFICATION: CMAP 929001 Religious Services TYPE OF RESERVATION: Senior Management (Article 1107) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley de Asociaciones Religiosas y Culto Privado (Religious Associations Law). T?tulo II, Cap?tulo II DESCRIPTION: Investment The representatives of the religious associations in Mexico must be Mexican nationals. DURATION: Indeterminate ======================================================================= ====== ANNEX I Schedule of Mexico

SECTOR: Services to Agriculture and Cattle SUB-SECTOR: Services to Agriculture INDUSTRY CLASSIFICATION: CMAP 971010 Agriculture Services Supply

TYPE OF RESERVATION: National Treatment (Article 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Constituci?n Pol?tica de los Estados Unidos Mexicanos, (United Mexican States Political Constitution) Article 32 Reglamento de la Ley de Sanidad Fitopecuaria (Regulation of the Phitosanitary Law), 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 concession. DURATION: The requirement of a concession will be replaced with a permit requirement, and the citizenship requirement will be eliminated, in accordance with the schedule of liberalization for specialty air services. ======================================================================= ====== ANNEX I Schedule of Mexico

SECTOR: Transportation SUBECTOR: Air Transportation INDUSTRY CLASSIFICATION: CMAP 713001 Transportation Services on Mexican-Registered Aircraft CMAP 713002 Air Taxi Transportation Services TYPE OF RESERVATION: National Treatment (Article 1102) Senior Management (Article 1107) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Para Promover la Inversi?n Mexicana y Regular la Inversi?n Extranjera(Law to Promote Mexican

Investment and to Regulate Foreign Investment), Cap?tulo I Reglamento de la Ley Para Promover la Inversi?n Mexicana y Regular la Inversi?n Extranjera(Regulation of the Law to Promote Mexican Investment and to Regulate Foreign Investment) Ley de V?as Generales de Comunicaci?n(General Means of Communications Law), Libro Cuarto, Cap?tulo I-XII DESCRIPTION: Investment Investors of another Party and their investments may own directly or indirectly, up to 25 percent of the voting interest in an enterprise established or to be established in Mexico that provides commercial air services. The chairman and at least two-thirds of the board of directors and two-thirds of managing officers of such enterprises must be Mexican nationals. DURATION: Description shall govern upon entry into force of this Agreement. ======================================================================= ====== ANNEX I Schedule of Mexico

SECTOR: Transportation SUBECTOR: Air Transportation INDUSTRY CLASSIFICATION: CMAP 973303 Specialty Air Services TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) Local Presence (Article 1205) Senior Management (Article 1107) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley de V?as Generales de Comunicaci?n (General Means of Communication Law), Libro Cuarto, Cap?tulo XII 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. Such permit may be issued to a person of Canada and the United States to provide services related to flight training, forest fire-management, fire-fighting, glider towing, and parachute jumping in Mexico, subject to compliance with national safety rules. 3. Such permit may not be issued to a person of Canada or the United States to provide: aerial advertising, aerial sightseeing services, aerial construction, heli-logging, inspection (surveillance), mapping, photography, surveying and aerial spraying services. Investment Investors of another Party and their investments may own, directly or indirectly, up to 25 percent of the voting interest in an enterprise established or to be established in Mexico that provides specialty air services. The chairman and at least two-thirds of the board of directors and two-thirds of managing officers of such enterprises must be Mexican nationals. DURATION: Cross-Border Services Paragraphs 2 and 3 of the description shall govern upon entry into force of this Agreement. A person of Canada or the United States will be issued a permit by SCT to provide, subject to compliance with safety requirements, the following specialty air services: (a) three years after entry into force of the Agreement, aerial advertising, aerial sightseeing services, aerial construction and heli-logging. (b) six years after entry into force

of this Agreement, inspection (surveillance), mapping, photography, surveying and aerial spraying services. Investment Description shall govern upon entry into force of this Agreement ======================================================================= ====== ANNEX I Schedule of Mexico

SECTOR: Transportation SUBECTOR: Air Transportation INDUSTRY CLASSIFICATION: CMAP 384205 Aircraft Building, Assembly and Repair (limited to aircraft repair) TYPE OF RESERVATION: National Treatment (Article 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Constituci?n Pol?tica de los Estados Unidos Mexicanos (United Mexican States Political Constitution), Art?culo 32 Ley de V?as Generales de Comunicaci?n (General Means of Communication Law), Libro Cuarto, Cap?tulo XV Reglamento de Talleres Aeron?uticos (Aeronautical Workshops Regulation) Article 8 DESCRIPTION: Cross-Border Services A concession granted by the Secretar?a de Comunicaciones y Transportes is required to establish and operate an aircraft repair facility. Only Mexican nationals and Mexican enterprises may obtain such concession. DURATION: Indeterminate ======================================================================= ====== ANNEX I

Schedule of Mexico

SECTOR: Transportation SUBECTOR: Air Transportation INDUSTRY CLASSIFICATION: CMAP 973301 Air Navigation Services CMAP 973302 Airport and Heliport Administration Services TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Constituci?n Pol?tica de los Estados Unidos Mexicanos (United Mexican States Political Constitution), Art?culo 32 Ley de V?as Generales de Comunicaci?n (General Means of Communication Law), Libro Primero, Cap?tulo II y II, Libro Cuarto, Cap?tulo IX Ley para Promover la Inversi?n Mexicana y Regular la Inversi?n Extranjera(Law to Promote Mexican Investment and to Regulate Foreign Investment) Libro Primero, Cap?tulo II y III, Libro Cuarto, Cap?tulo IX Reglamento de la Ley para Promover la Inversi?n Mexicana y Regular la Inversi?n Extranjera(Regulation of the Law to Promote Mexican Investment and to Regulate Foreign Investment) 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 concession. 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 of an enterprise established or to be established in 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. DURATION: Indeterminate ======================================================================= ====== ANNEX I Schedule of Mexico

SECTOR: Transportation SUBECTOR: Land Transportation INDUSTRY CLASSIFICATION: CMAP 973101 Bus and Truck Station Administration and Ancillary Services (main bus and truck terminals and bus and truck stations) TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley de V?as Generales de Comunicaci?n (General Means of Communication Law), Libro Primero, Cap?tulo II y III, Libro Segundo, T?tulo Segundo, Cap?tulos I y II, T?tulo Tercero, Cap?tulo Unico Reglamento para el Aprovechamiento del Derecho de V?a de las Carreteras Federales y Zonas Aleda?as (Regulations for the Use of the Right of Way of Federal Roads and their Adjacent Areas), Cap?tulos II y IV Reglamento del Autotransporte Federal de Pasajeros, (Regulations of the Federal Transport of Passengers), and 34 Cap?tulo IV

DESCRIPTION: Cross-Border Services 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 permit. Investment Foreign investment is not permitted in an enterprise established or to be established in Mexico engaged in the establishment or operation of bus or truck station or terminals as described in the industry classification mentioned above. DURATION: Cross-Border Services Description shall govern upon entry into force of this Agreement. Three years after signature of this Agreement, such permit may be obtained by Mexican nationals and Mexican enterprises. Investment With respect to enterprises established or to be established in Mexico providing such service investors of another Party and their investment may own: (a) three years after the signature of this Agreement, up to 49 percent of ownership interest of the enterprise; (b) seven years after the entry into force of this Agreement, up to 51 percent of the ownership interest of the enterprise; and (c) ten years after the entry into force of this Agreement, up to 100 percent of the enterprise. ======================================================================= ====== ANNEX I

Schedule of Mexico

SECTOR: Transportation SUBECTOR: Land Transportation INDUSTRY CLASSIFICATION: CMAP 973102 Road and Bridge Administration Services and Ancillary Services TYPE OF RESERVATION: National Treatment (Article 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Constituci?n Pol?tica de los Estados Unidos Mexicanos (United Mexican States Political Constitution), Art?culo 32 Ley de V?as Generales de Comunicaci?n (General Means of Communication Law), Libro Primero, Cap?tulos I, II y III, Libro Segundo, T?tulo Segundo, Cap?tulo II, T?tulo Tercero, Cap?tulo Unico 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 concession. DURATION: Indeterminate ======================================================================= ====== ANNEX I Schedule of Mexico

SECTOR: Transportation SUBECTOR: Land Transportation INDUSTRY CLASSIFICATION: CMAP 711312 Urban and Suburban Passenger Transportation Service by Bus CMAP 711315 Collective Automobile

Transportation Service CMAP 711316 Established Route Automobile Transportation Service CMAP 711317 Automobile Transportation Service from a Specific Station CMAP 711318 School and Tourist Transportation Service (limited to school transportation service) TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) LEVEL OF GOVERNMENT: Federal and State LEGAL CITATION: Ley para Promover la Inversi?n Mexicana y Regular la Inversi?n Extranjera (Law to Promote General Investment and to Regulate Foreign Investment) Ley de V?as Generales de Comunicaci?n (General Means of Communication Law) Reglamento de la Ley para Promover la Inversi?n Mexicana y Regular la Inversi?n Extranjera (Regulation of the Law to Promote General Investment and to Regulate Foreign Investment) Reglamento para el Autotransporte Federal de Pasajeros (Regulations of the Federal Transport of Passengers) State laws [to be provided] 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. DURATION: Indeterminate ======================================================================= ====== ANNEX I Schedule of Mexico

SECTOR: Transportation

SUBECTOR: Land Transportation INDUSTRY CLASSIFICATION: CMAP 711201 Road Transport Services for 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 RESERVATION: National Treatment (Article 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: State LEGAL CITATION: Constituci?n Pol?tica de los Estados Unidos Mexicanos (United Mexican States Political Constitution), Art?culo 32 State laws and its regulations equivalent to Ley de V?as Generales de Comunicaci?n (General Means of Communication Law) [to be provided] Libro Primero, T?tulo Segundo, Cap?tulo II, Libro Primero, Cap?tulo III DESCRIPTION: Cross-Border Services In each state, a concession is required to provide intrastate bus and truck services on roads under the jurisdiction of such state. Such concession is provided on the basis of economic needs tests. Preferences in the granting of such concessions by states is accorded to natural persons born in such states and enterprises constitued by persons born in such states, including the states of Michoac?n, San Luis Potos?, Tamaulipas, Tlaxcala and Zacatecas. DURATION: Indeterminate ======================================================================= ====== ANNEX I

Schedule of Mexico

SECTOR: Transportation SUBECTOR: Land Transportation INDUSTRY CLASSIFICATION: CMAP 711201 Road Transport Services for 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 RESERVATION: National Treatment (Articles 1102, 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley de V?as Generales de Comunicaci?n (General Means of Communication Law), and its regulations [to be provided] Ley para Promover la Inversi?n Mexicana y Regular la Inversi?n Extranjera, (Law to Promote General Investment and to Regulate Foreign Investment) 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, (Memorandum of Understanding Between the United States of America and the United Mexican States on Facilitation of Charter/Tour Bus Service) Reglamento de la Ley para Promover la Inversi?n Mexicana y Regular la Inversi?n Extranjera, (Regulation of the Law to Promote General Investment and to Regulate Foreign Investment) DESCRIPTION: Cross-Border Services

A permit issued by the Secretar?a de Comunicaciones y Transportes is required to provide bus or truck services for the transportation of goods or passengers to or from the territory of Mexico. Only Mexican nationals and Mexican enterprises with a foreigners' exclusion clause may provide such services, except that a person of Canada or the United States may be granted permanent operating authority to provide international charter or tour bus services into the territory of Mexico. Only Mexican nationals, and Mexican enterprises with a foreigners' exclusion clause, using Mexican registered equipment and drivers who are Mexican nationals, may provide bus and truck services for the transportation of goods and passangers between two points in the territory of Mexico. Investment Foreign investment is not permitted in an enterprise established or to be established in Mexico engaged in bus or truck transportation services as described in the industry classification mentioned above. DURATION: Cross-Border Services Description shall govern upon entry into force of this Agreement. A person of Canada or of the United States will be permitted to provide: (a) three years after signature of this Agreement, cross-border truck services to or from the territory of border states (Baja California, Sonora, Chihuahua, Coahuila, Tamaulipas and Nuevo Le?n), and such person will be permitted to enter and depart Mexico through different ports of entry in such states; (b) three years after signature of this Agreement, only Mexican nationals and Mexican

enterprises, using Mexican-registered equipment and drivers who are Mexican nationals, may provide bus and truck services for the transportation of goods and passengers between two points in the territory of Mexico. (c) three years after entry into force of this Agreement, cross-border scheduled bus services to or from the territory of Mexico; and (d) six years after entry into force of this Agreement, cross-border truck services to or from the territory of Mexico. Investment With respect to enterprises established or to be established in Mexico providing such services, investors of another Party may own: (a) three years after signature of this Agreement, up to 49 percent of ownership of an enterprise providing bus services, tourist transportation services and truck services for the transportation of international cargo, between points in the territory of Mexico; (b) seven years after entry into force of this Agreement, up to 51 percent of the ownership interest of an enterprise providing bus services, tourist transportation services or truck services for the transportation of international cargo, between points in the territory of Mexico; and (c) ten years after entry into force of this Agreement, up to 100 percent ownership interest of an enterprise providing bus services, tourist services and truck services for the transportation of international cargo, between points in the territory of Mexico.

Foreign ownership in enterprises providing truck services for the carriage of domestic cargo will not be permitted. Indeterminate. ======================================================================= ====== ANNEX I Schedule of Mexico

SECTOR: Transportation SUB-SECTOR: Land Transportation and Water Transportation INDUSTRY CLASSIFICATION: CMAP 501421 Marine and River Works CMAP 501422 Construction of Roads for Land Transportation TYPE OF RESERVATION: National Treatment (Article 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Constituci?n Pol?tica de los Estados Unidos Mexicanos, (Political Constitution of the United Mexican States) Art?culo 32 Ley de V?as Generales de Comunicaci?n (General Means of Communications Law) Libro Primero, Cap?tulos I, Libro Segundo, 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, marine and river works and roads for land transportation. Such concession may be granted only to Mexican nationals and Mexican enterprises. DURATION: Indeterminate ======================================================================= ====== ANNEX I Schedule of Mexico

SECTOR: Transportation SUBECTOR: Non-energy pipelines INDUSTRY CLASSIFICATION: Not applicable TYPE OF RESERVATION: National Treatment (Article 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Constituci?n Pol?tica de los Estados Unidos Mexicanos (United Mexican States Political Constitution) Ley de V?as Generales de Comunicaci?n (General Means of Communication Law), Articles 8, 12 and 5 Ley Federal de Aguas(Waters Federal Law) 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 non-energy goods, excluding basic petrochemicals. Only Mexican nationals and Mexican enterprises may obtain such concession. DURATION: Indeterminate ======================================================================= ====== ANNEX I Schedule of Mexico

SECTOR: Transportation SUBECTOR: Freight and Passenger Water Transportation INDUSTRY CLASSIFICATION: CMAP 712011 International Maritime Transportation Services CMAP 712012 Cabotage Maritime Services CMAP 712013 International and Cabotage Towing Services CMAP 712021 River and Lake Transportation Services

CMAP 712022 Internal Port Water Transportation Services TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) Most-Favored-Nation (Articles 1103, 1203) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley de V?as Generales de Comunicaci?n (General Means of Communication Law), Cap?tulo III, Libro Tercero Ley para el Desarrollo de la Marina Mercante (Law for the Development of the Merchant Navy), Cap?tulos I y III Ley de Navegaci?n y Comercio Mar?timos (Navigation and Maritime Navigation Law) Libro Segundo, T?tulo Unico, Cap?tulos I y IIILey Para Promover la Inversi?n Mexicana y Regular la Inversi?n Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment) 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 when 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 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. When such towing vessels are not able to provide such services, the Secretar?a de Comunicaciones y Transporte may provide a permit 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. 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 the 49 percent of the ownership interest of an enterprise established or to be established in Mexico operating foreign-flagged vessels providing international maritime transport services. DURATION: Indeterminate ======================================================================= ====== ANNEX I Schedule of Mexico

SECTOR: Transportation SUB-SECTOR: Specialized Personnel INDUSTRY CLASSIFICATION: CMAP 951012 Customs Brokers (Agentes Aduanales) TYPE OF RESERVATION: National Treatment (Article 1102) LEGAL CITATION: Constituci?n Pol?tica de los Estados Unidos Mexicanos (United Mexican States Political Constitution) Ley Aduanera (Customs Law) DESCRIPTION: Investment Only Mexican nationals by birth may serve as customs brokers. DURATION: Indeterminate ======================================================================= ====== ANNEX I Schedule of Mexico

SECTOR: Transportation SUBECTOR: Water Transportation

INDUSTRY CLASSIFICATION: CMAP 1300 Fishing TYPE OF RESERVATION: National Treatment (Article 1202) Most-Favored-Nation (Article 1203) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Constituci?n Pol?tica de los Estados Unidos Mexicanos (United Mexican Stated Political Constitution), Art?culo 32 Ley de Pesca (Fishing Law), Cap?tulos I y II Ley de Navegaci?n y Comercio Mar?timo (Navigation and Maritime Commerce Law) Libro Segundo, T?tulo Unico, Cap?tulo I 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 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 (EEZ). 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 installation, recollection from the natural milieu of larvae, post-larvae, eggs, seeds or alevines, for research or acuaculture purposes, introduction of live species into Mexican jurisdictional waters, and for educational fishing in accordance with the programmes of the fishing educational institutions. DURATION: Indeterminate ======================================================================= ======

ANNEX I Schedule of Mexico

SECTOR: Transportation SUBECTOR: Water Transportation INDUSTRY CLASSIFICATION: CMAP 384201 Shipbuilding and Ship Repairs TYPE OF RESERVATION: National Treatment (Article 1202) Local Presence (Article 1205) Performance Requirement (Article 1106) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Constituci?n Pol?tica de los Estados Unidos Mexicanos (United Mexican Stated Political Constitution), Art?culo 32 Ley de V?as Generales de Comunicaci?n (General Means of Communication Law) Cap?tulo XV, Libro Tercero Ley Para el Desarrollo de la Marina Mercante (Law for the Development of the Merchant Navy), Cap?tulo IV DESCRIPTION: Cross-Border Services and Investment A concession granted by the Secretar?a de Comunicaciones y Transportes is required to establish and operate a shipyard. Only Mexican nationals and Mexican enterprises may obtain such concession. 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, such person must carry out repair and maintenance operations in shipyards and repair facilities in Mexico. DURATION: Indeterminate ======================================================================= ====== ANNEX I Schedule of Mexico

SECTOR: Transportation SUBECTOR: Water Transportation INDUSTRY CLASSIFICATION: CMAP 973203 Maritime and Inland (Lake and Rivers) Ports Administration TYPE OF RESERVATION: National Treatment (Article 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley de Navegaci?n y Comercio Mar?timo (Navigation and Maritime Commerce Law), Libro Segundo, Cap?tulo II Secciones A y B, T?tulo Unico Ley de V?as Generales de Comunicaci?n (General Means of Communication Law), Cap?tulo XI DESCRIPTION: Cross-Border Services All port workers must be Mexican nationals. DURATION: Indeterminate ======================================================================= ====== ANNEX I Schedule of Mexico

SECTOR: Transportation SUBECTOR: Water Transportation INDUSTRY CLASSIFICATION: CMAP 973201 Loading and Unloading Services 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 wharfs; waterfront terminal operations) TYPE OF RESERVATION: National Treatment (Article 1102, 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal

LEGAL CITATION: Constituci?n Pol?tica de los Estados Unidos Mexicanos (United Mexican States Political Constitution), Art?culo 32 Ley de Navegaci?n y Comercio Mar?timo (Navigation and Maritime Commerce Law), Libro Primero, T?tulo Unico, Cap?tulo I, Libro Segundo, T?tulo Segundo Ley Org?nica de la Administraci?n P?blica Federal (Federal Public Administration Law) Ley de V?as Generales de Comunicaci?n (General Means of Communication Law) Libro Tercero, Cap?tulo II Reglamento del Servicio de Maniobras en las Zonas Federales de Puertos, Articles 1, 2, 13 and 14 (Operation Services in the Federal Port Zones Regulation), Libro Primero, T?tulo Unico, Cap?tulo I, Libro Segundo, T?tulo Unico, Cap?tulo II, Secci?n A y Libro Cuarto, T?tulo Unico Reglamento para el Uso y Aprovechamiento del Mar Territorial, V?as Navegables, Playas, Zona Federal Mar?timo Terrestre y Terrenos Ganados al Mar, (Regulation for the Use of the Territorial Sea, Navigable Ways, Beaches, Maritime and Terrestrial Federal Zones) 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 dock, cranes and related facilities. Only Mexican nationals and Mexican enterprises may obtain such 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 permit. 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 of an enterprise established or to be established in 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. DURATION: Cross-Border Services Indeterminate Investment Description shall govern upon entry into force of this Agreement.

ANNEX II Schedule of Mexico

SECTOR: All sectors SUB-SECTOR: All sub-sectors INDUSTRY CLASSIFICATION: TYPE OF RESERVATION: National Treatment (Articles 1102, 1202)

DESCRIPTION: Cross-Border Services and Investment Mexico reserves the right to adopt or maintain any measure restricting the ownership of bonds, treasury bills or any other kind of debt or security issued by the federal, state or local governments except with respect to ownership by financial institutions of another Party, as such term is defined in Chapter Fourteen (Financial Services). LEGAL CITATION OF EXISTING MEASURES: ======================================================================= ====== ANNEX II Schedule of Mexico

SECTOR: Communications SUB-SECTOR: Entertainment Services (Broadcasting and Multipoint Distribution Systems (MDS)) INDUSTRY CLASSIFICATION: CMAP 941104 Private Production and Transmission of Radio Programs (Limited to Transmission of Radio Programs, MDS and uninterrupted music) CMAP 941105 Private Services of Production, Transmission and Repetition of Television Programming (Limited to Transmission and Repetition of Television Programs, MDS, and High-Definition Television) TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) Most-Favored-Nation (Articles 1103, 1203) Local Presence (Article 1205) Senior Management (Article 1106) 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. LEGAL CITATION OF EXISTING MEASURES: Constituci?n Pol?tica de los Estados

Unidos Mexicanos (United Mexican States Political Constitution) Ley de V?as Generales de Comunicaci?n (General Means of Communication Law) Ley Federal de Radio y Televisi?n (Radio and Television Federal Law) Ley Para Promover la Inversi?n Mexicana y Regular la Inversi?n Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment) ======================================================================= ====== ANNEX II Schedule of Mexico

SECTOR: Communications SUB-SECTOR: Telecommunications INDUSTRY CLASSIFICATION: CMAP 720006 Other Telecommunications Services (Limited to Aeronautical Mobile and Fixed Services) TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) Most-Favored-Nation (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, flight control and other telecommunication services relating to air navigation services. LEGAL CITATION OF EXISTING MEASURES: Constituci?n Pol?tica de los Estados Unidos Mexicanos (United Mexican States Political Constitution) Ley de V?as Generales de Comunicaci?n (General Means of Communication Law) Decree creating the entity "Servicios a la navegaci?n en el espacio a?reo

mexicano" (SENEAM) (Air Services in the Mexican Air Space), 3 de octubre de 1978 Ley para Promover la Inversi?n Mexicana y Regular la Inversi?n Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment) Reglamento de la Ley para Promover la Inversi?n Mexicana y Regular la Inversi?n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment) ======================================================================= ====== ANNEX II Schedule of Mexico

SECTOR: Communications SUB-SECTOR: Telecommunications Transport Networks INDUSTRY CLASSIFICATION: CMAP 720003 Telephone Services CMAP 720004 Telephone Booth Services CMAP 720006 Other Telecommunications Services (Not Including Enhanced or Value-Added Services) CMAP 502003 Telecommunications installations TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) Most-Favored-Nation (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 telecommunication 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 telecommunication 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. LEGAL CITATION OF EXISTING MEASURES: Constituci?n Pol?tica de los Estados Unidos Mexicanos (United Mexican States Political Constitution) Ley de V?as Generales de Comunicaci?n (General Means of Communication Law) Reglamento de Telecomunicaciones (Telecommunications Regulations) Reglamento de la Ley para Promover la Inversi?n Mexicana y Regular la Inversi?n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment) ======================================================================= ====== ANNEX II Schedule of Mexico

SECTOR: Communications and Transportation SUB-SECTOR: Postal Services, Telecommunications, Railroads INDUSTRY CLASSIFICATION: CMAP 720001 Postal Services CMAP 720005 Telegraphic Services, Radiotelegraphic Services, Wireless Telegraphy CMAP 720006 Other Telecommunications services (limited to satellite communications) CMAP 711101 Railway Transportation Service (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 RESERVATION: National Treatment (Article 1202) Most-favored-Nation Treatment (Article 1203) Local Presence (Article 1205) DESCRIPTION: Cross-Border Services Mexico reserves the right to adopt or mantain any measure related to the provision of the following services: postal services (operation, administration and organization of first class mail), telegraph, radiotelegraphy, satellite communications (establishment, ownership and operation of satellite systems, and establishment, ownership and operation of earth stations with international links), and railroads (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). LEGAL CITATION OF EXISTING MEASURES: Constituci?n Pol?tica de los Estados Unidos Mexicanos, (United Mexican States Political Constitution) Article 28 Ley de V?as Generales de Comunicaci?n (General Means of Communications Law and its regulations) Ley Org?nica de Ferrocarriles Nacionales de M?xico (Mexican National Railroad Law) Ley del Servicio Postal Mexicano (Mexican Postal Services Law and its regulations) ======================================================================= ====== ANNEX II Schedule of Mexico

SECTOR: Professional, Technical and Specialized Services and Other Services Provided by Natural Persons SUB-SECTOR: Professional Services INDUSTRY CLASSIFICATION: CMAP 951002 Legal Services/Foreign Legal Consultants TYPE OF RESERVATION: National Treament (Article 1102, 1202) Most-Favored-Nation Treatment (Article 1103, 1203) Local Presence (Article 1205) Senior Management (Article 1107) DESCRIPTION: Cross-Border Services and Investment Subject to 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 person of the United States. LEGAL CITATION OF EXISTING MEASURES: Ley Reglamentaria del Art?culo 5o. Constitucional, relativo al ejercicio de las profesiones en el Distrito Federal (Regulatory Law of Article 5' of the United Mexican States Political Constitution in relation to Professional Services) Reglamento de la Ley para Promover la Inversi?n Mexicana y Regular la Inversi?n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment). ======================================================================= ====== ANNEX II Schedule of Mexico

SECTOR: Social Services SUB-SECTOR: Not applicable INDUSTRY CLASSIFICATION: TYPE OF RESERVATION: National Treatment (Article 1102, 1202) Local Presence (Article 1205) Senior Management (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. LEGAL CITATION OF EXISTING MEASURES: ======================================================================= ====== ANNEX II Schedule of Mexico

SECTOR: Transportation SUB-SECTOR: Specialized Personnel INDUSTRY CLASSIFICATION: 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 and aircraft (Personal que tripule cualquier embarcaci?n o aeronave con bandera o insignia mercante mexicana) TYPE OF RESERVATION: National Treament (Article 1202) Most-Favored-Nation Treatment (Article 1203) Local Presence (Article 1205) DESCRIPTION: Cross-Border Services Only Mexicans by birth may serve as captains, pilots, ship masters, machinists, mechanics and crew members manning vessels or aircraft under the Mexican flag; as harbor pilots, harbor masters and airport administrators; and as customs brokers. LEGAL CITATION OF EXISTING MEASURES:

Constituci?n Pol?tica de los Estados Unidos Mexicanos, (Political Constitution of United Mexican States)

ANNEX III Schedule of Mexico

I. The Mexican State 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 obtained from the refining or processing of crude oil and natural gas; and basic petrochemicals. (b) Legal citation: Constituci?n Pol?tica de los Estados Unidos Mexicanos, Articles 25, 27 and 28 (United Mexican States Political Constitution, Articles 25, 27 and 28). Ley Reglamentaria del Art?culo 27 Constitucional en el Ramo del Petr?leo y sus reglamentos (Regulatory Law of Article 27 of the United Mexican States Constitution related to Oil, and its regulations). Ley Org?nica de Petr?leos Mexicanos y Organismos Subsidiarios (Statutory Law of Petr?leos Mexicanos and its Subsidiaries). ======================================================================= ====== ANNEX III Schedule of Mexico

2.

Electricity

(a) Description of activities: the supply of electricity as a public service in Mexico, including, except as provided in Annex 602.3 of the Energy Chapter, the generation, transmission, transformation, distribution and sale of electricity. (b) Legal citation: Constituci?n Pol?tica de los Estados Unidos Mexicanos, Articles 25 and 28 (United Mexican States Political Constitution, Articles 25 and 28). Ley del Servicio P?blico de Energ?a El?ctrica y su reglamento (Public Service of Electric Energy Law, and its Regulations) 3. Nuclear Power and Treatment of Radioactive Minerals

(a) Description of activities: the generation of nuclear energy; the exploration, exploitation and processing of radioactive minerals; the nuclear fuel cycle; the use and reprocessing of nuclear fuels and the regulation of their applications for other purposes; the transportation and storage of nuclear wastes; and the production of heavy water. (b) Legal citation: Constituci?n Pol?tica de los Estados Unidos Mexicanos, Articles 25, 27 and 28 (United Mexican Constitution, Article 25, 27 and 28). Ley Reglamentaria del Art?culo 27 Constitucional en Materia de Energ?a Nuclear (Regulatory Law of the Aticle 27 of the United Mexican Constitution related to Atomic Energy). ======================================================================= ====== ANNEX III Schedule of Mexico

4.

Satellite Communications

(a) Description of activities: the establishment, operation and ownership of satellite systems and earth stations with international links. (b) Legal citation: Constituci?n Pol?tica de los Estados Unidos Mexicanos, Articles 25 and 28 (United Mexican States, Articles 25 and 26). Ley de V?as Generales de Comunicaci?n y sus reglamentos (General Means of Communication Law) 5. Telegraph Services Legal citation: Constituci?n Pol?tica de los Estados Unidos Mexicanos, Articles 25 and 28 (United Mexican States, Articles 25 and 28) Ley de V?as Generales de Comunicaci?n y sus reglamentos (General Means Communication Law) 6. Radiotelegraph Services

Legal citation: Constituci?n Pol?tica de los Estados Unidos Mexicanos, Articles 25 and 28 (United Mexican States Political Constitution, Article 25 and 28) Ley de V?as Generales de Comunicaci?n y sus reglamentos (Genral Means of Communication Law). ======================================================================= ====== ANNEX III Schedule of Mexico

7.

Postal Services

(a) Description of activities: operation, administration and organization of first class mail. (b) Legal citation: Constituci?n Pol?tica de los Estados Unidos Mexicanos, Articles 25 and 28 (United Mexican States Political Constitution, Articles 25 and 28). Ley del Servicio Postal Mexicano (Mexican Postal Service Law) 8. Railroads

(a) Description of activities: the 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) Legal citation: Constituci?n Pol?tica de los Estados Unidos Mexicanos, Articles 25 and 28 (United Mexican States Political Constitution, Articles 25 y 28). Ley Org?nica de Ferrocarriles Nacionales de M?xico (Statutory Law of Mexican Railroads). 9. Issuance of Bills (currency) and Minting of Coinage Legal citation: Constituci?n Pol?tica de los Estados Unidos Mexicanos, Articles 25 and 28 (United Mexican States Political Constitution, Articles 25 and 28). ======================================================================= ======

ANNEX III Schedule of Mexico

Ley Org?nica del Banco de M?xico (Statutory Law of Banco de M?xico). Ley Org?nica de la Casa de Moneda de M?xico (Statutory Law of the Mexican Coining Agency). 10. Control, Inspection and Surveillance of Maritime and Inland (Lake and River) Ports Legal citation: Ley de Navegaci?n y Comercio Mar?timo (Commercial and Navigation Law), Articles 43 and 47. Ley de V?as Generales de Comunicaci?n (General Means of Communication Law) Article 272. 11. Control, Inspection and Surveillance of Airports and Heliports Legal citation: Ley de V?as Generales de Comunicaci?n (General Means of Communication) Article 327. The legal citations are provided only for transparency purposes. II. Deregulation of Activities Reserved to the State

1. The activities set out in Section I are reserved to the Mexican State, and private equity investment is prohibited under Mexican Law. Where Mexico allows private investment to participate in such activities through service contracts, 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. 2. If Mexican laws or regulations are amended to allow private equity investment in an activity set out in Section I, Mexico may impose restrictions on foreign investment ======================================================================= ====== ANNEX III Schedule of Mexico

participation notwithstanding Article 1102 and describe them in Annex I. Mexico may also impose derogations from 1102 on foreign equity investment participation when selling an asset or ownership interest in an enterprise in activities set out in

Section I and describe them in Annex I. III. Activities Formerly Reserved to the Mexican State

Where an activity was reserved to the Mexican State on January 1, 1992 and is not reserved to the Mexican State upon entry into force of this Agreement, Mexico may restrict the initial sale of a state-owned asset or an ownership interest in a state enterprise that performs that activity to enterprises with majority ownership by Mexican nationals, as defined by the Mexican Constitution. For a period not to exceed three years from the initial sale, Mexico may restrict the transfer of such asset or ownership interest to other enterprises with majority ownership by Mexican nationals, as defined by the Mexican Constitution. Upon expiration of the three year period , the obligations of national treatment set out in Article 1102 (National Treatment) shall apply. This provision is subject to Article 1108 (Reservations and exceptions).

Title: NAFTA - ANNEX IV: Schedule of Mexico

ANNEX IV Schedule of Mexico

Mexico takes an exception to Article 1103 for all international agreements (bilateral and multilateral) in force or signed prior to the date of entry into force of this Agreement.

As for international agreements other than those in force or signed prior to the date of entry into force of this Agreement, Mexico takes an exception to Article 1103 for those agreements involving: 1. 2. 3. 4. Aviation; Fisheries; Maritime matters, including salvage; or Telecommunications.

With respect to state measures not yet described in Annex I, pursusant to paragraph 2 of Article 1108, Mexico takes an exception to Article 1103 for international agreements signed within two years of the entry into force of this Agreement. For greater certainty, the Parties note that 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.

ANNEX V Schedule of Mexico

SECTOR: Communications SUB-SECTOR: Telecommunications INDUSTRY CLASSIFICATION: CMAP 720006 Other Telecommunications Services (Limited to Private Networks) LEVEL OF GOVERNMENT: Federal

LEGAL CITATION: Ley de V?as Generales de Comunicaci?n (General Means of Communication Law), Libro Primero, Cap?tulo III (Concesiones, Permisos y Contratos) Reglamento de Telecomunicaciones (Telecommunications Regulations), Cap?tulo 2 Cap?tulo 4 (Permisos) DESCRIPTION: Cross-Border Services Resale of circuit capacity of a private network may not exceed 30 percent of such capacity. ======================================================================= ====== ANNEX V Schedule of Mexico

SECTOR: Private Educational Services SUB-SECTOR: INDUSTRY CLASSIFICATION: CMAP 921101 Preschool Private Educational Services CMAP 921102 Primary School Private Educational Services CMAP 921103 Secondary School Private Educational Services CMAP 921104 Middle High (Preparatory) School Private Educational Services CMAP 921105 Higher Private Educational Services CMAP 921106 Private Educational Services that Combine Preschool, Primary, Secondary, Middle High and Higher School Instruction LEVEL OF GOVERNMENT: Federal and State LEGAL CITATION: Constituci?n Pol?tica de los Estados Unidos Mexicanos (United Mexican States Political Constitution)T?tulo Primero, Cap?tulo I Ley Federal de Educaci?n (Federal Education Law) Cap?tulos I, II, III y IV

Ley para la Coordinaci?n de la Educaci?n Superior (Higher Education Coordination Law) Cap?tulos I y II Ley Reglamentaria del Art?culo 5 Constitucional relativo al ejercicio de las profesiones en el Distrito Federal, (Regulatory Law of Article 5 of the United Mexican States Political Constitution in relation to Professional Services) Article 1, related articles and its Regulation Art. 12, Cap?tulos I y III, Secciones I y III Reglamento de la Ley Reglamentaria del Art?culo 5 Constitucional relativo al ejercicio de las profesiones en el Distrito Federal, (Regulation of the Regulatory Law of Article 5 of the United Mexican States Political Constitution in relation to Professional Services) Cap?tulo V DESCRIPTION: Cross-Border Services and Investment For the provision of primary, secondary, normal and workers or peasants educational services, prior and express authorization granted by the Secretar?a de Educaci?n P?blica or corresponding state authorities is required. Such authorization is granted on a case-by-case basis in accordance with public convenience and necessity. ======================================================================= ====== ANNEX V Schedule of Mexico

SECTOR: Transportation SUBECTOR: Land Transportation INDUSTRY CLASSIFICATION: CMAP 973103 Vehicle Parking services) Services (Parking and garage CMAP 973104 Weight Scale Services for Transportation. CMAP 973105 Towing Services for Vehicles.

CMAP 973106 Other Services Related to Land Transportation not mentioned in sections 9731, 7112 and 7113 of the CMAP LEVEL OF GOVERNMENT: Federal and State LEGAL CITATION: Ley de V?as Generales de Comunicaci?n (General Means of Communication Law) State laws [to be provided] DESCRIPTION: A permit issued by the Secretar?a de Comunicaciones y Transportes is required to provide services related to land transportation. In some states such permits are granted on a basis of the public convenience and necessity.

Title: NAFTA - ANNEX VI: Schedule of Mexico ANNEX VI Schedule of Mexico

SECTOR: Communications SUB-SECTOR: Entertainment Services (Cinema) INDUSTRY CLASSIFICATION: CMAP 941102 Private Services of Distribution and Films Rental

LEGAL CITATION: Ley de la Industria Cinematogr?fica (Motion Picture Industry Law) Reglamento de la Ley de la Industria Cinematogr?fica. (Regulations of the Motion Picture Industry Law) 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 of each five film titles imported by such distributor into Mexico. ======================================================================= ====== ANNEX VI Schedule of Mexico

SECTOR: Professional, Technical and Specialized Services and Services Provided by Natural Persons SUB-SECTOR: Professional Services INDUSTRY CLASSIFICATION: CMAP 951002 Legal Services and Foreign Legal Consultants LEVEL OF GOVERNMENT: Federal and State LEGAL CITATION: [to be provided] DESCRIPTION: 1. Mexico will ensure that:

(a) a lawyer authorized to practice in a province of Canada or a state of the United States of America who seeks to practice as a foreign legal consultant in Mexico shall 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 of America that seeks to establish in Mexico to provide legal services through licensed foreign legal consultants shall 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 of America 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 rules and procedures regarding the practice of foreign legal consultants in Mexico, including matters related to association and hiring of lawyers licensed in Mexico. ======================================================================= ====== ANNEX VI Schedule of Mexico

SECTOR: Transportation SUBSECTOR: Land Transportation INDUSTRY CLASSIFICATION: CMAP 711201 Road Transport Services for 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) LEGAL CITATION: Federal regulations will be established in relation to leasing and rental operations.

DESCRIPTION: An enterprise authorized in Mexico to provide bus or truck transportation services may use equipment of its own, leased vehicles with option to purchase (financial leasing), leased vehicles (operational leasing), or short-term rental vehicles.

ANNEX VII PART A Schedule of Mexico

SECTOR: Financial Services

SUB-SECTOR: Financial Holding Companies INDUSTRY CLASSIFICATION: Not applicable

TYPE OF RESERVATION: Articles 1404, 1407 (Establishment, National Treatment) MEASURE: Aggregate limits on foreign ownership LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley para Regular las Agrupaciones Financieras (Law Regulating Financial Groups), Art. 18 DESCRIPTION: Aggregate foreign investments in financial holding companies are limited to 30% of common stock capital (capital ordinario). These limits do not apply to financial holding companies established pursuant to Parts B and C of the Schedule of Mexico. DURATION: Indeterminate ======================================================================= ====== ANNEX VII PART A Schedule of Mexico SECTOR: Financial Services SUB-SECTOR: Commercial Banks (Instituciones de Cr?dito) INDUSTRY CLASSIFICATION: 811030 TYPE OF RESERVATION: Articles 1404, 1407 (Establishment, National Treatment) MEASURE: Aggregate limits on foreign ownership LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley de Instituciones de Cr?dito (Law of the Credit Institutions), Arts. 11 y 15 DESCRIPTION: Aggregate foreign investments in commercial banks are limited to 30% of common stock capital (capital ordinario). These limits do not apply to Foreign Financial Affiliates established pursuant to Part B of the Schedule of Mexico. DURATION: Indeterminate ======================================================================= ====== ANNEX VII PART A Schedule of Mexico

SECTOR: Financial Services SUB-SECTOR: Securities Firms (Casas de Bolsa) INDUSTRY CLASSIFICATION: 812001 TYPE OF RESERVATION: Articles 1404, 1407 (Establishment, National Treatment) MEASURE: Limitations on foreign ownership LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley del Mercado de Valores (Law of the Stock Market), Art. 17-II DESCRIPTION: Aggregate foreign investments in securities firms are limited to 30% of capital (capital social) and individual foreign investments are limited to 10% of capital, while individual investments by Mexicans may, with approval from the Ministry of Finance and Public Credit, rise to 15% of capital. These limits do not apply to Foreign Financial Affiliates established pursuant to Part B of the Schedule of Mexico. DURATION: Indeterminate ======================================================================= ====== ANNEX VII PART A Schedule of Mexico SECTOR: Financial Services SUB-SECTOR: Securities Specialists (Especialistas Burs?tiles) INDUSTRY CLASSIFICATION: 812001 TYPE OF RESERVATION: Articles 1404, 1407 (Establishment, National Treatment) MEASURE: Limitations on foreign ownership LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley del Mercado de Valores (Law of the Stock Market), Art. 17-II DESCRIPTION: Aggregate foreign investments in securities specialists are limited to 30% of capital (capital social) and

individual foreign investments are limited to 10% of capital, while individual investments by Mexicans may, with approval from the Ministry of Finance and Public Credit, rise to 15% of capital. These limits do not apply to Foreign Financial Affiliates established pursuant to Part B of the Schedule of Mexico. DURATION: Indeterminate ======================================================================= ====== ANNEX VII PART A Schedule of Mexico SECTOR: Financial Services SUB-SECTOR: General Deposit Warehouses (Almacenes Generales de Dep? sito) INDUSTRY CLASSIFICATION: 811042 TYPE OF RESERVATION: Articles 1404, 1407 (Establishment, National Treatment) MEASURE: Aggregate limits on foreign ownership LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley General de Organizaciones y Actividades Auxiliares del Cr?dito (General Law of Auxiliary Credit Organizations and Activities), Art. 8-III-1 DESCRIPTION: Foreign participation must be less than 50% of paid-in capital (capital pagado). These limits do not apply to Foreign Financial Affiliates established pursuant to Part B of the Schedule of Mexico. DURATION: Indeterminate ======================================================================= ====== ANNEX VII PART A Schedule of Mexico SECTOR: Financial Services SUB-SECTOR: Financial Leasing Companies (Arrendadoras Financieras)

INDUSTRY CLASSIFICATION: 811043 TYPE OF RESERVATION: Articles 1404, 1407 (Establishment, National Treatment) MEASURE: Aggregate limits on foreign ownership LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley General de Organizaciones y Actividades Auxiliares del Cr?dito (General Law of Auxiliary Credit Organizations and Activities), Art. 8-III-1 DESCRIPTION: Foreign participation must be less than 50% of paid-in capital (capital pagado). These limits do not apply to Foreign Financial Affiliates established pursuant to Part B of the Schedule of Mexico. DURATION: Indeterminate ======================================================================= ====== ANNEX VII PART A Schedule of Mexico SECTOR: Financial Services SUB-SECTOR: Financial Factoring Companies (Empresas de Factoraje Financiero) INDUSTRY CLASSIFICATION: Not applicable TYPE OF RESERVATION: Articles 1404, 1407 (Establishment, National Treatment) MEASURE: Aggregate limits on foreign ownership LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley General de Organizaciones y Actividades Auxiliares del Cr?dito (General Law of Auxiliary Credit Organizations and Activities), Art. 8-III-1 DESCRIPTION: Foreign participation must be less than 50% of paid-in capital (capital pagado). These limits do not apply to Foreign Financial Affiliates established pursuant to Part B of the Schedule of Mexico. DURATION: Indeterminate

======================================================================= ====== ANNEX VII PART A Schedule of Mexico SECTOR: Financial Services SUB-SECTOR: Credit Unions (Uniones de Cr?dito) INDUSTRY CLASSIFICATION: 811041 TYPE OF RESERVATION: Articles 1404, 1407 (Establishment, National Treatment) MEASURE: Limitation on foreign ownership LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley General de Organizaciones y Actividades Auxiliares del Cr?dito (General Law of Auxiliary Credit Organizations and Activities), Art. 8-III-1 DESCRIPTION: Foreign capital investment in these entities is prohibited. This limitation does not apply to Foreign Financial Affiliates established pursuant to Part B of the Schedule of Mexico. DURATION: Indeterminate ======================================================================= ====== ANNEX VII PART A Schedule of Mexico SECTOR: Financial Services SUB-SECTOR: Foreign Exchange Firms (Casas de Cambio) INDUSTRY CLASSIFICATION: 811044 TYPE OF RESERVATION: Articles 1404, 1407 (Establishment, National Treatment) MEASURE: Limitation on foreign ownership LEVEL OF GOVERNMENT: Federal

LEGAL CITATION: Ley General de Organizaciones y Actividades Auxiliares del Cr?dito (General Law of Auxiliary Credit Organizations and Activities), Art. 82-III DESCRIPTION: Foreign investors may not participate in the capital of these entities. This limitation does not apply to Foreign Financial Affiliates established pursuant to Part B of the Schedule of Mexico. DURATION: Indeterminate ======================================================================= ====== ANNEX VII PART A Schedule of Mexico SECTOR: Financial Services SUB-SECTOR: Financial Agents (Comisionistas Financieros) INDUSTRY CLASSIFICATION: 811045 TYPE OF RESERVATION: Articles 1404, 1407 (Establishment, National Treatment) MEASURE: Limitation on foreign ownership LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley de Instituciones de Cr?dito (Law of Credit Institutions), Art. 92 Reglas de SHCP (Regulations of the Ministry of Finance and Public Credit) DESCRIPTION: Foreign investors may not participate in the capital of these entities. This limitation does not apply to Foreign Financial Affiliates established pursuant to Part B of the Schedule of Mexico. DURATION: Indeterminate ======================================================================= ====== ANNEX VII PART A Schedule of Mexico

SECTOR: Financial Services SUB-SECTOR: Bonding Companies (Instituciones de Fianzas) INDUSTRY CLASSIFICATION: 813001 TYPE OF RESERVATION: Articles 1404, 1407 (Establishment, National Treatment) MEASURE: Aggregate limits on foreign ownership LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Federal de Instituciones de Fianzas (Federal Law of Bonding Companies), Art. 15-XIII DESCRIPTION: Foreign participation must be less than 50% of paid-in capital (capital pagado). These limits do not apply to Foreign Financial Affiliates established pursuant to Part B of the Schedule of Mexico. DURATION: Indeterminate ======================================================================= ====== ANNEX VII PART A Schedule of Mexico SECTOR: Financial Services SUB-SECTOR: Insurance Companies (Instituciones de Seguros) INDUSTRY CLASSIFICATION: 813002 TYPE OF RESERVATION: Articles 1404, 1407 (Establishment, National Treatment) MEASURE: Aggregate limits on foreign ownership LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley General de Instituciones y Sociedades Mutualistas de Seguros (General Law on Insurance Institutions and Mutual Societies), Art. 29-I DESCRIPTION: Foreign participation must be less than 50% of paid-in capital (capital pagado). These limits do not apply to Foreign Financial Affiliates established pursuant to Part B of the

Schedule of Mexico. DURATION: Indeterminate ======================================================================= ====== ANNEX VII PART A Schedule of Mexico SECTOR: Financial Services SUB-SECTOR: Financial Holding Companies INDUSTRY CLASSIFICATION: Not applicable TYPE OF RESERVATION: Limitation on foreign ownership MEASURE: Articles 1404, 1407 (Establishment, National Treatment) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley para Regular las Agrupaciones Financieras (Law Regulating Financial Groups), Art. 18 DESCRIPTION: Foreign governments and foreign state enterprises or their investments may not invest, directly or indirectly, in a financial holding company. DURATION: Indeterminate ======================================================================= ====== ANNEX VII PART A Schedule of Mexico SECTOR: Financial Services SUB-SECTOR: Commercial Banks (Instituciones de Cr?dito) INDUSTRY CLASSIFICATION: 811030 TYPE OF RESERVATION: Articles 1404, 1407 (Establishment, National Treatment) MEASURE: Limitation on foreign ownership LEVEL OF GOVERNMENT: Federal

LEGAL CITATION: Ley de Instituciones de Cr?dito (Law of Credit Institutions), Art. 15 DESCRIPTION: Foreign entities that exercise governmental functions may not invest, directly or indirectly, in a commercial bank. DURATION: Indeterminate ======================================================================= ====== ANNEX VII PART A Schedule of Mexico SECTOR: Financial Services SUB-SECTOR: Securities Firms (Casas de Bolsa) INDUSTRY CLASSIFICATION: 812001 TYPE OF RESERVATION: Articles 1404, 1407 (Establishment, National Treatment) MEASURE: Limitation on foreign ownership LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley del Mercado de Valores (Law of the Stock Market), Art. 17-II-b DESCRIPTION: Foreign governments and foreign state enterprises or their investments may not invest, directly or indirectly, in a securities firm. DURATION: Indeterminate ======================================================================= ====== ANNEX VII PART A Schedule of Mexico SECTOR: Financial Services SUB-SECTOR: Securities Specialists (Especialistas Burs?tiles) INDUSTRY CLASSIFICATION: Not applicable

TYPE OF RESERVATION: Articles 1404, 1407 (Establishment, National Treatment) MEASURE: Limitation on foreign ownership LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley del Mercado de Valores (Law of the Stock Market), Art. 17-II DESCRIPTION: Foreign governments and foreign state enterprises or their investments may not invest, directly or indirectly, in a securities specialist. DURATION: Indeterminate ======================================================================= ====== ANNEX VII PART A Schedule of Mexico SECTOR: Financial Services SUB-SECTOR: General Deposit Warehouses (Almacenes Generales de Dep?sito) INDUSTRY CLASSIFICATION: 811042 TYPE OF RESERVATION: Articles 1404, 1407 (Establishment, National Treatment) MEASURE: Limitation on foreign ownership LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley General de Organizaciones y Actividades Auxiliares del Cr?dito (General Law of Auxiliary Credit Organizations and Activities), Art. 8-III-1 DESCRIPTION: Foreign governments and foreign state enterprises or their investments may not invest, directly or indirectly, in a general deposit warehouse. DURATION: Indeterminate ======================================================================= ====== ANNEX VII

PART A Schedule of Mexico SECTOR: Financial Services SUB-SECTOR: Financial Leasing Companies (Arrendadoras Financieras) INDUSTRY CLASSIFICATION: 811043 TYPE OF RESERVATION: Articles 1404, 1407 (Establishment, National Treatment) MEASURE: Limitation on foreign ownership LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley General de Organizaciones y Actividades Auxiliares del Cr?dito (General Law of Auxiliary Credit organizations and Activities), Art. 8-III-1 DESCRIPTION: Foreign governments and foreign state enterprises or their investments may not invest, directly or indirectly, in a financial leasing company. DURATION: Indeterminate ======================================================================= ====== ANNEX VII PART A Schedule of Mexico SECTOR: Financial Services SUB-SECTOR: Financial Factoring Companies (Empresas de Factoraje Financiero) INDUSTRY CLASSIFICATION: Not applicable TYPE OF RESERVATION: Articles 1404, 1407 (Establishment, National Treatment) MEASURE: Limitation on foreign ownership LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley General de Organizaciones y Actividades Auxiliares del Cr?dito (General Law of Auxiliary Credit Organizations and Activities), Art. 8-III-1

DESCRIPTION: Foreign governments and foreign state enterprises or their investments may not invest, directly or indirectly, in a financial factoring company. DURATION: Indeterminate ======================================================================= ====== ANNEX VII PART A Schedule of Mexico SECTOR: Financial Services SUB-SECTOR: Savings and Loan Companies (Sociedades de stamo) INDUSTRY CLASSIFICATION: 811046 TYPE OF RESERVATION: Articles 1404, 1407 (Establishment, National Treatment) MEASURE: Limitation on foreign ownership LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley General de Organizaciones y Actividades Auxiliares del Cr?dito (General Law of Auxiliary Credit Organizations and Activities), Art. 38-G DESCRIPTION: Foreign governments and foreign state enterprises or their investments may not invest, directly or indirectly, in a savings and loan company. DURATION: Indeterminate ======================================================================= ====== ANNEX VII PART A Schedule of Mexico SECTOR: Financial Services SUB-SECTOR: Managing Companies of Investment Companies (Sociedades Operadoras de Sociedades de Inversi?n) Ahorro y Pr?

INDUSTRY CLASSIFICATION: 812003 TYPE OF RESERVATION: Articles 1404, 1407 (Establishment, National Treatment) MEASURE: Limitation on foreign ownership LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley de Sociedades de Inversi?n (Law of Investment Companies), Art. 29-VI DESCRIPTION: Foreign governments and foreign state enterprises or their investments may not invest, directly or indirectly, in an operator of an investment company. DURATION: Indeterminate ======================================================================= ====== ANNEX VII PART A Schedule of Mexico SECTOR: Financial Services SUB-SECTOR: Investment Companies (Sociedades de Inversi?n) INDUSTRY CLASSIFICATION: 812002 TYPE OF RESERVATION: Articles 1404, 1407 (Establishment, National Treatment) MEASURE: Limitation on foreign ownership LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley de Sociedades de Inversi?n (Law of Investment Companies), Art. 9-III DESCRIPTION: Foreign governments and foreign state enterprises or their investments may not invest, directly or indirectly, in an investment company. DURATION: Indeterminate ======================================================================= ====== ANNEX VII

PART A Schedule of Mexico SECTOR: Financial Services SUB-SECTOR: Bonding Companies (Instituciones de Fianzas) INDUSTRY CLASSIFICATION: 813001 TYPE OF RESERVATION: Articles 1404, 1407 (Establishment, National Treatment) MEASURE: Limitation on foreign ownership LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Federal de Instituciones de Fianzas (Federal Law of Bonding Companies), Art. 15 bis-IV-a DESCRIPTION: Foreign governments and foreign state enterprises or their investments may not invest, directly or indirectly, in a bonding company. DURATION: Indeterminate ======================================================================= ====== ANNEX VII PART A Schedule of Mexico SECTOR: Financial Services SUB-SECTOR: Insurance Companies (Instituciones de Seguros) INDUSTRY CLASSIFICATION: 813002 TYPE OF RESERVATION: Articles 1404, 1407 (Establishment, National Treatment) MEASURE: Limitation on foreign ownership LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley General de Instituciones y Sociedades de Mutualistas de Seguros (General Law on Insurance Institutions and Mutual Societies), Art. 29-I

DESCRIPTION: Foreign governments and foreign state enterprises or their investments may not invest, directly or indirectly, in an insurance company. DURATION: Indeterminate ======================================================================= ====== ANNEX VII PART A Schedule of Mexico SECTOR: Financial Services SUB-SECTOR: Insurance INDUSTRY CLASSIFICATION: 813002 TYPE OF RESERVATION: Article 1405 (Cross-Border Trade) MEASURE: Restrictions on cross-border insurance LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley General de Instituciones y Sociedades Mutualistas de Seguros (General Law on Insurance Institutions and Mutual Societies), Art. 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 non-resident insurance companies of another Party, the following types of insurance: (a) tourist insurance (including travel accident and motor vehicle insurance for nonresident tourists, but not insurance of risks of liability to third parties) for individuals, purchased without solicitation via physical mobility of such

individuals; (b) cargo insurance to and from each Party purchased without solicitation for goods in international transit from point of origin to final destination and for the vehicle during the period of its use in transportation of such goods, 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 (a) and (b) without solicitation. DURATION: For greater clarity, this reservation does not apply to reinsurance. ======================================================================= ====== ANNEX VII PART A Schedule of Mexico SECTOR: Financial Services SUB-SECTOR: Banking INDUSTRY CLASSIFICATION: 811021 811030 TYPE OF RESERVATION: Articles 1404, 1405, 1407 (Establishment, CrossBorder Trade, National Treatment) MEASURE: Activities reserved for development banks LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Org?nica de Nacional Financiera (Organic Law of Nacional Financiera), Art. 7; Ley Org?nica del Banco Nacional del Ej?rcito, la Fuerza A?rea y la Armada (Organic Law of the National Bank of the Army, Air Force and Navy) DESCRIPTION: The following activities are reserved

solely to Mexican development banks: (1) 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 confiscated according to Mexican measures; (2) 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. DURATION: Indeterminate ANNEX VII ======================================================================= ====== PART B Schedule of Mexico TRANSITIONAL EXCEPTIONS Reservations to Articles 1404 and 1407 1. The provisions of paragraphs 2 through 10 of this Part B of the Schedule of Mexico shall apply during the Transition Period, except as otherwise specifically provided in paragraphs 9 and 10 of this Part B. 2. For the types of financial institutions listed in the chart in this paragraph 2, the maximum capital to be authorized 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 2: Type of Financial Institution Maximum Individual Capital to be Authorized (Percentage of the Aggregate Capital of all Institutions of the same type) Commercial Banks Securities Firms Insurance Companies 1.5% 4.0%

Casualty Life and Health

1.5% 1.5%

In the case of an acquisition by a financial service provider 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 2. This paragraph 2 will not apply to new or existing Mexican insurance companies invested in by insurance providers of another Party (or their affiliates) pursuant to paragraph 7 of this Part 3 or paragraph 4 of Part C of the Schedule of Mexico. 3. For purposes of the proper administration of the capital limits in the Schedule of Mexico, the following provisions shall apply: i. Each Foreign Financial Affiliate shall have a paid-in capital not less than that authorized by Mexico at the time of approval of its establishment. The authorized capital shall be determined by Mexico. 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. ii. 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 the Schedule of Mexico. This subparagraph does not apply to bona fide transfers of funds to make overnight deposits or bona fide transfers of banking liabilities. 4. A Foreign Financial Affiliate shall not issue subordinated debentures, except to its parent outside of Mexico. 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 5 for that type of institution, except for the case of insurance which is addressed in paragraph 6 of this Part B. Beginning one year after the entry into force of the Agreement, these initial limits shall increase annually in equal increments so as to reach the final limits specified in the chart in this paragraph 5 at the beginning of the last year of the Transition Period. Type of Financial Institution Percentage of Total Capital Initial Final

Limit Commercial banks Securities firms Factoring companies Leasing companies 8% 10% 10% 10%

Limit 15% 20% 20% 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 the Schedule of Mexico. 6. In the case of insurance, 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 6 for the respective one-year periods beginning on each of the following dates: Date January January January January January January 1, 1, 1, 1, 1, 1, 1994 1995 1996 1997 1998 1999 Percentage of Total Capital 6% 8% 9% 10% 11% 12%

If the entry into force of the 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 entry into force of the 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 entry into force of the Agreement occurs on a date after January 1, 1994, the dates and corresponding limits in this chart shall nonetheless not be changed. The individual and aggregate capital limits described in paragraphs 2 and 6 of this Part B 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. Insurance providers of another Party may elect an alternative procedure for entering Mexico through phasing-in an equity interest in a new or existing Mexican insurance company, and thereby exempt such Mexican company from the capital limits of paragraphs 2 and 6 of this Part B. In order to qualify, the percentage of the Mexican insurance company's voting common stock that is owned by Mexican persons must not be less than the levels set forth in the chart in this paragraph 7 for the respective one-year periods beginning on each of the following dates: Date Mexican Interest

January January January January January January

1, 1, 1, 1, 1, 1,

1994 1995 1996 1997 1998 1999

70% 65% 60% 55% 49% 25%

If the entry into force of the 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 entry into force of the 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 entry into force of the 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 entry into force of the 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 7 shall no longer apply. This paragraph 7 is further modified by paragraph 4 of Part C of the Schedule of Mexico 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 Part C of the Schedule of Mexico shall not exceed 3% of the sum of (1) the aggregate assets of all commercial banks in Mexico plus (2) the aggregate assets of all types of limited scope financial institutions in Mexico. Lending by affiliates of automobile manufacturing companies with respect to their vehicles shall not be subject to or taken into account in determining compliance with this 3% limit. 9. The capital limits in paragraphs 2, 5, 6 and 8 of this Part B 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 9 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 Securities firms 25% 30%

If applied, such a restriction will have a duration not to exceed a period of 3 years. 10. No additional license to establish a Foreign Financial Affiliate shall be granted during the Transition Period (and, in the case of paragraph 9 of this Part B, 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 Part B. OTHER EXCEPTIONS 11. The provisions of the following paragraphs 12 through 15 of this Part B shall apply immediately upon the entry into force of the 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 Part B shall not decrease the conformity of the measure, as it existed immediately before such amendment or modification, with Articles 1404 to 1409 of the Agreement. Reservation to Article 1407 12. Mexico may require that a Foreign Financial Affiliate (other than a Foreign Insurance Affiliate) be wholly-owned by a financial service provider of another Party (except for directors' nominal qualifying shares). 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. Reservations to Articles 1404 and 1407 13. Following the Transition Period, acquisition of a commercial bank established in Mexico, or of the assets or liabilities thereof, by a financial service provider 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 authorized capital of the acquired commercial bank and the authorized capital of any commercial bank in Mexico already controlled by the acquiror would not exceed 4% of the aggregate capital of all commercial banks in Mexico. 14. Mexico may adopt measures that (i) limit eligibility to establish a Foreign Financial Affiliate in Mexico to a financial service provider 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 (ii) limit such provider (together with its affiliates) to no more than one institution of the same type in Mexico. In determining what types of operations a financial service provider 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. Reservation to Articles 1404, 1405 and 1407 15. The existing activities and operations of 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 1404, 1405 and 1407 for so long as such firm is controlled by the government of Mexico and for a commercially reasonable time after such governmental control ceases. Reservation to Article 1405 16. In order not to impair the conduct of Mexico's monetary and exchange rate policies, non-resident financial service providers of another Party shall not be permitted to provide financial services into the territory of Mexico or to residents of Mexico, and residents of Mexico may not purchase financial services from non-resident financial service providers of another Party, if such transactions are denominated in Mexican pesos. Reservation to Articles 1404-1409 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 upon conversion shall be covered by this Agreement. 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 in the event of conversion. Definitions For purposes of Part B of Mexico's schedule: capital means the following, as defined in Mexican measures, applied on a national treatment basis: Type of Financial Institution Concept of "Capital"

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 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 a financial service provider of another Party; Foreign Insurance Affiliate means a Foreign Financial Affiliate that is an insurance company; and Transition Period means the period beginning with the entry into force of the Agreement and ending on the earlier of i) January 1, 2000, or ii) six years from the entry into force of the Agreement. ======================================================================= ====== ANNEX VII PART C Schedule of Mexico 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 has a commercial presence 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 commercial corporation are 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 has no commercial presence 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 financial service providers 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 firms 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 entry into force of the Agreement, Mexico shall conduct a study of the desirability 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 would be prudential considerations and opportunities for investment in the securities sector. As part of the second annual meeting of the Committee required under Article 1414, 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. 4. Notwithstanding Part B (paragraph 7) of the Schedule of Mexico, an insurance provider of another Party, together with its affiliates, that as of July 1, 1992 collectively have an active investment or ownership interest that has been specifically approved by the Mexico of 10% or more in a Mexican insurance company may: (1) exercise any contract right or option in existence as of July 1, 1992 with respect to ownership interests in such Mexican insurance company; and (2) effective the earlier of January 1, 1996 or two years following the date of entry into force of the Agreement, acquire a controlling interest of up to 100% in such Mexican insurance company. Before the effective date described in clause (2) of the preceding sentence, an insurance provider of another Party (together with its affiliates) described in that sentence may exercise any existing contract right or option described in clause (1) of that sentence, and choose to maintain its existing interest or expand its interest in such Mexican insurance company to the extent consistent with Part B (paragraph 7) of the Schedule of Mexico. Mexico shall maintain discretion to permit acceleration of the schedule for equity participation in a Mexican insurance company by an insurance provider of another Party described in the first sentence of this paragraph. 5. A bank or securities provider of another Party that is authorized to and establishes or acquires a commercial bank or securities firm, respectively, 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 (as defined in Part B of the Schedule of Mexico) in a manner that does not deny the benefits of the liberalization of existing measures described in the Schedule of Mexico to enterprises of another Party ultimately controlled by nationals of that Party. ======================================================================= ====== ANNEX VII PART D Schedule of Mexico The agency of the government of Mexico responsible for financial services is the Secretar?a de Hacienda y Cr?dito

P?blico.

TARIFF
DRAFT NAFTA TARIFF PHASING DESCRIPTIONS Four main staging categories exist for tariff elimination under NAFTA: A - tariff elimination immediately upon implementation of the Agreement, i.e., January 1, 1994.

B - tariff to be eliminated in five equal annual stages, beginning January 1, 1994 and ending January 1, 1998. C - tariff to be eliminated in ten equal annual stages, beginning January 1, 1994 and ending January 1, 2003. D - tariff already MFN free. In addition to the above general phasing categories, the following categories exist for specific cases: Ex - excluded from tariff elimination. This category applies to supply-managed goods (dairy, poultry, eggs) and to several tariff items for sugar. Bl - tariff to be eliminated in six equal annual stages, beginning January 1, 1994 and ending January 1, 1999. (Applies to 43 items in textile tariffs.) B+ - tariff to be eliminated in seven stages as follows: 20% reduction on January 1, 1994, zero reduction on January 1, 1995, 10% reduction per year for years January 1, 1996 to January 1, 2000 and 30% reduction on January 1, 2001. (Applies to most textile tariffs as well as 3902.1000 and 6403.5900.) B8 - tariff to be eliminated in two stages as follows: reduction on January 1, 1998 and 50% reduction on January 1, 2001. (Applies to four Mexican tariff items in the paper sector.) 50%

Ba - tariff to be eliminated in five stages as follows: 50% reduction on January 1, 1994 with remaining 50% to be phased out in four equal annual reductions ending January 1, 1998. (Applies to two light truck items.) Bg- tariff to be eliminated in five stages as follows: reduction to the FTA rate on January 1, 1994 and then follow the FTA C phasing schedule ending January 1, 1998. (Applies to Canadian agricultural tariff items for Mexico).

Bp- tariff to be eliminated in three stages as follows: 20% reduction on January 1, 1997; 10% reduction on January 1, 1998 and 70% reduction on January 1, 1999. BM - tariff to be eliminated according to B staging. For joint Mexican-U.S. production (goods subject to paragraph 8 of Annex 402.2 of the Agreement), phasing to start from the MFN rate. ABM - tariff to be eliminated immediately. For goods subject to paragraph 8 of Annex 402.2 of the Agreement, tariff to be eliminated according to B staging and phasing to start from the MFN rate.

ACM - tariff to be eliminated immediately. For goods subject to paragraph 8 of Annex 402.2 of the Agreement, tariff to be eliminated according to C staging and phasing to start from the MFN rate. CM - tariff to be eliminated according to C staging. For goods subject to paragraph 8 of Annex 402.2 of the Agreement, phasing to start from the MFN rate. Ca - tariff to be eliminated in 10 stages as follows: 50% reduction on January 1, 1994; remaining 50% to be eliminated in nine equal annual stages ending January 1, 2003. (Applies to passenger vehicles in heading 8703.) C10 - tariff to be eliminated in nine stages as follows: 20% reduction on January 1, 1994; no reduction year 2; remaining 80% to be reduced in eight annual equal stages ending January 1, 2003. (Applies to one footwear item for Canada, numerous footwear items for the U.S. and Mexico, several items in heading 3204 (paints and dyes) for the U.S. and Mexico, and several U.S. ceramic items.) Cm - tariff to be eliminated in three stages as follows: 40% reduction on January 1, 1994; freeze years 2, 3, and 4; 20% reduction year 5; freeze years 6, 7, 8, and 9; 40% reduction on January 1, 2003. (Applies to several Mexican furniture tariff items.) C8 - tariff to be eliminated in eight stages as follows: 10% reduction per year starting January 1, 1994 for seven years; 30% reduction on January 1, 2001. (Applies to several Mexican and U.S. glass items.) Cb+ 30% reduction 2000; and 50% item for corn tariff to be eliminated in three stages as follows: on January 1, 1994; 20% reduction on January 1, reduction on January 1, 2005. (Applies to one U.S. brooms.)

C+ - tariff to be eliminated in 15 equal annual stages starting January 1, 1994 and ending January 1, 2008. Cz+ - tariff to be eliminated in 13 stages as follows: 20% reduction on January 1, 1994; freeze years 2 and 3; remaining 80% to be phased out equally over remaining 12 years ending January 1, 2008. (Applies to several U.S. ceramic items.) Cq - for the following tariff items, the quantities specified below imported by Mexico shall enter free of duty. For quantities above these levels, the rate of duty shall be reduced according to the staging category C. From the U.S. Canada From (metric tonnes)

4401.2101 4403.1001 4407.1001 4407.1002 4407.1003 4407.9101 4407.9999

66,500 14,250 9,500 119,700 950 3,325 2,470 130

3,500 750 500 6,300 50 175

Ctq - tariff to be eliminated in ten equal stages begining on January 1, 1994 and accompanied by the application of tariff rate quotas. (Applies to certain agricultural products). CAg - tariff to be eliminated in ten stages as follows: six annual reductions of 4% begining January 1, 1994 the remaining 76% being eliminated in four equal, annual steps ending on January 1, 2003. (Applies to some Mexican agricultural tariff items). C+Ag - tariff to be eliminated in 15 steps as follows: six annual reductions of 4% begining January 1, 1994 the remaining 76% being eliminated in nine equal, annual steps ending on January 1, 2008. (Applies to some Mexican agricutural tariff items). Sug - refers to special considerations which apply to certain tariff items for sugar and sugar products as outlined in notes appended to the draft agreement. Pro - refers to a small number of Mexican tariff items for prohibited goods. The following phasing codes relate to textile tariff items between the U.S. and Mexico only. They are: B6 - tariff to be eliminated in six stages as follows: on January 1, 1994 a reduction equal in percentage terms to the base rate; six equal annual reductions of 20% of the rate in effect on January 1, 1994 starting January 1, 1995 and ending January 1, 1999. Bw - tariff to be eliminated in six stages as follows: rate of duty on January 1, 1994 will be 15%; on January 1, 1995, rate of duty will be 14.5%; on January 1, 1996, rate of duty will be 10.8%; on January 1, 1997, 7.2%; on January 1, 1998, 3.6%; and zero on January 1, 1999. Bo of duty on January 1, 1997, rate will be 4% - tariff to be eliminated in six stages as follows: rate January 1, 1994 and January 1, 1995 will be 15%; on 1996, the rate of duty will be 12%; on January 1, of duty will be 8%; on January 1, 1998, rate of duty and zero on January 1, 1999.

Bf - tariff to be eliminated in six stages as follows: rate of duty on January 1, 1994 and January 1, 1995 will be 20%; rate of duty on January 1, 1996 will be 10%; rate of duty on January

1, 1997 will be 6.6%; rate of duty on January 1, 1998 3.3% and zero on January 1, 1999.

will be

NOTE:The 6-Digit tariff description presented in the following pages is an abbreviated one. For full description, see the Candian Customs Tariffs, Revenue Canada Customs and Excise.

United States
ANNEX I Schedule of the United States SECTOR: Energy

SUB-SECTOR: Atomic Energy

INDUSTRY CLASSIFICATION: Not Applicable TYPE OF RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Atomic Energy Act of 1954, 42 U.S.C. 2133-2134 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 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 utilization or production 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)). DURATION: Indeterminate ======================================================================= ====== ANNEX I Schedule of the United States SECTOR: Business Services SUB-SECTOR: Export Intermediaries INDUSTRY CLASSIFICATION: 7389 Business Services, Not Elsewhere Classified TYPE OF RESERVATION: National Treatment (Article 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Export Trading Company Act of 1982, Public Law 97-290, 96 Stat. 1233, 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 calls for the issuance of a certificate of review if 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. The term "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." A foreign national or enterprise can 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) which 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." DURATION:Indeterminate ======================================================================= ====== ANNEX I Schedule of United States

SECTOR:Business Services SUB-SECTOR:Export Intermediaries INDUSTRY CLASSIFICATION:7389 Business Services, Not Elsewhere Classified TYPE OF RESERVATION: National Treatment (Article 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: 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, United States 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. DURATION: Indeterminate ======================================================================= ====== ANNEX I Schedule of United States SECTOR: Communications SUB-SECTOR: Telecommunications (Enhanced or Value-Added Services) INDUSTRY CLASSIFICATION: CPC 752323 Value-Added Network Services CPC 752329 Other Message Services

TYPE OF RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: 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 (1991) (Definition of enhanced or valueadded 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 any refusal of a foreign government to grant it an operating agreement. For purposes of this rule, a service provider is generally considered "foreign owned" if 20 percent or more of its stock is owned by persons that are not U.S. citizens. DURATION: Indeterminate ======================================================================= ====== ANNEX I Schedule of the United States SECTOR: Manufacturing SUB-SECTOR: Agricultural Chemicals INDUSTRY CLASSIFICATION: SIC 2879 Pesticides and Agricultural Chemicals, not Elsewhere Classified TYPE OF RESERVATION: National Treatment (Article 1102) LEGAL CITATION: Federal Insecticide, Fungicide, and Rodenticide Act, as amended, 7 U.S.C. 136 et seq. DESCRIPTION:Investment 7 U.S.C. 135h(g) prevents the Administrator of the Environmental

Protection Agency from knowingly disclosing information submitted by an applicant or registrant under the Act (without consent) to any person 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 such foreign or multinational business or entity. DURATION: Indeterminate ======================================================================= ====== ANNEX I Schedule of the United States SECTOR: Mining and Materials SUB-SECTOR: Minerals Mining INDUSTRY CLASSIFICATION: TYPE OF RESERVATION: National Treatment (Article 1102) Most-FavoredNation Treatment (Article 1103) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Mineral Lands Leasing Act of 1920; 30 U.S.C. Chapter 3; 10 U.S.C. 7435 DESCRIPTION: Investment 1. Under the Mineral Lands Leasing Act of 1920, aliens and corporations with foreign stockholders may not acquire rights-of-way for oil or gas pipelines, or pipelines carrying products refined from them, across onshore federal lands, or acquire leases or interests in certain minerals, such as coal or oil. However, 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 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

(30 U.S.C. 181, 183(a)). 2. Nationalization is not considered to be denial of similar or like privileges. 3. See also 10 U.S.C. 7435, which restricts foreign citizens, or corporations controlled by them, from obtaining access to leases on Naval Petroleum Reserves, should the laws, customs or regulations of their country deny the privilege of leasing public lands to citizens or corporations of the United States. DURATION: Indeterminate. ======================================================================= ====== ANNEX I Schedule of United States SECTOR: Professional Services SUB-SECTOR: Patent Attorneys and Patent Agents and other Practice before the Patent and Trademark Office INDUSTRY CLASSIFICATION: [to be provided] TYPE OF RESERVATION: National Treatment (Article 1202) Most-FavoredNation Treatment (Article 1203) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: 35 USC Chapter 3 (Practice Before 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 another country that accords equivalent treatment to attorneys licensed in the United States, or an agent registered to practice in such a country (37 C.F.R. 10.14(a)-(c)). DURATION: Citizenship and permanent residency requirements subject to removal within two years after entry into force of this Agreement in accordance with Article 1210(3). ======================================================================= ====== ANNEX I Schedule of the United States SECTOR: Public Administration SUB-SECTOR: INDUSTRY CLASSIFICATION: TYPE OF RESERVATION: National Treatment (Article 1102) Most-FavoredNation Treatment (Article 1103) LEGAL CITATION: 22 U.S.C. 2194(a), 2194(b) and 2198(c) LEVEL OF GOVERNMENT: Federal DESCRIPTION: Investment The Overseas Private Investment Corporation (OPIC) insurance and loan guarantees under 22 U.S.C. 2194(a), 2194(b) and 2198(c) are not available to certain aliens, foreign enterprises, or foreign controlled domestic enterprises. DURATION: Indeterminate ======================================================================= ======

ANNEX I Schedule of the United States SECTOR: Transportation SUB-SECTOR: Air Transportation INDUSTRY CLASSIFICATION: SIC 3721 Aircraft Repair and Rebuilding on a Factory Basis SIC 4581 Aircraft Repair (Except on a Factory Basis) TYPE OF RESERVATION: Most-Favored-Nation Treatment (Article 1203) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: 49 U.S.C. App. 1354, 1421-1430 14 C.F.R. Parts 43 and 145 Agreement Concerning Airworthiness Certification, Exchange of Letters between U.S. and Canada dated August 31, 1984, Treaties and International Agreement Service 11023 DESCRIPTION: Cross-Border For major aircraft repair, overhaul or maintenance activities, 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 a bilateral airworthiness agreement dated August 31, 1984, as amended, between the United States and Canada, the United States recognizes the certifications and oversight provided by Canada for all repair stations and individuals performing the work located in Canada. DURATION: Indeterminate ======================================================================= ====== ANNEX I Schedule of the United States SECTOR: Transportation

SUB-SECTOR: Air Transportation INDUSTRY CLASSIFICATION: 4512 Air Transportation Scheduled 4522 Air Transportation Non-scheduled 4513 Air Courier Services TYPE OF RESERVATION: National Treatment (Article 1102) Most-Favored-Nation Treatment (Article 1103) Senior Management (Article 1107) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Federal Aviation Act of 1958, as amended; 14 C.F.R. For purposes of this entry, the Description governs. DESCRIPTION: Investment Whether an entity is a U.S. citizen determines the type of commercial air services company that it can own or control. Under the Federal Aviation Act of 1958 (49 U.S.C. App. Ch. 20), "citizens" include (1) individuals who are citizens; (2) a partnership in which each member is a citizen of the U.S.; or (3) 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 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. Nevertheless, the Department has provided guidance as to some lines of demarcation. For example, total foreign equity investment of up to 49 percent (with a maximum of 25 percent being voting stock), taken alone, is not construed as indicative of foreign control. (See Department of Transportation Order 91-1-41, January 23, 1991.)

Only air carriers that are U.S. citizens are permitted to operate domestic air services or operate international air services as a "U.S." carrier; non-U.S. citizens may own and control foreign air carriers that operate between the U.S. and foreign points. See Sections 401, 402, 417(b)(7) and 1108 of the Federal Aviation Act. The different rights of each type of air carrier are usually spelled out in the applicable aviation bilateral agreement. Certain distinctions based on citizenship also exist with regard to other types of air services providers, such as air freight forwarders (14 C.F.R. 297), charter operators (14 C.F.R. 380), and intermodal operators (14 C.F.R. 222). Air freight forwarders may be "U.S. citizens" (defined as indicated above) which use the services of (inter alia) direct air carriers (with a Department of Transportation certificate, regulation, order or permit) to transport property. 14 C.F.R. Part 296. They may also be "foreign air freight forwarders", which similarly use direct air carriers to transport property. 14 C.F.R. Part 296. There is no "U.S. citizenship" requirement for "foreign air freight forwarders." 14 C.F.R. 297.3(d). Foreign air freight forwarders may obtain the same operating exemptions available to U.S. citizens. They must, however, apply for registration with the Department of Transportation. Their application can be rejected "for reasons relating to the failure of effective reciprocity, or if the Department finds that it is in the public interest to do so." 14 C.F.R. 297.22. Charter operators may be "public charter operators", which inter alia must be "U.S. citizens" (defined as indicated above) or "foreign charter operators," for which there is not a citizenship requirement. 14 C.F.R. 380.2. Unlike domestic charter operators, "foreign charter operators"

wishing to operate charters which originate in the U.S. must register with the Department of Transportation. 14 C.F.R. 380.61. The Department of Transportation may reject a registration application "for reasons relating to the failure of effective reciprocity or if the Department finds it would be in the public interest to do so." 14 C.F.R. 380.64. A direct foreign air carrier may engage in the surface transport of property (which it has carried by air) in a zone extending 35 miles from the boundary of the airport or city it is authorized to serve. There is no such geographic limitation on a direct U.S. air carrier, or on a U.S. or foreign indirect air carrier. DURATION: Indeterminate ======================================================================= ====== ANNEX I Schedule of the United States SECTOR: Transportation SUB-SECTOR: Air Transportation INDUSTRY CLASSIFICATION: SIC 0721 Crop Planting, Cultivating, and Protecting (limited to aerial dusting and spraying, dusting crops, with or without fertilizing, spraying crops, with or without fertilizing) sightseeing SIC 4522 Air Transportation, services,

airplane services) SIC 7319 Advertising, Not Elsewhere Classified (limited to aerial advertising, sky writing) SIC 7335 Commercial Photography (limited to aerial photographic service, mapmaking) Classified pipeline SIC 7389 Business Services, Not Elsewhere (limited to mapmaking, including aerial,

except

firefighting

and powerline inspection services, service, other than forestry or public) 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 RESERVATION: National Treatment (Articles 1102, 1202) Most-Favored-Nation Treatment (Articles 1103, 1203) Local Presence (Article 1205) Senior Management (Article 1107) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Federal Aviation Act of 1958, as amended; 49 U.S.C. App. 1508(b); 14 C.F.R. 375. For purposes of this entry, paragraph 3 of the Description governs. 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 such 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 be authorized 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. Specialty air enterprises are required to comply with the same

requirements as those set out in the exception for air transportation carriers described in the investment exception for air transportation. DURATION:Cross-Border Paragraph 2 of the Description governs on entry into force. A person of Canada or Mexico may 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 entry into force of the Agreement, aerial construction and heli-logging; (b) three years after entry into force of the Agreement, aerial sightseeing, flight training and aerial inspection and surveillance services; and (c) six years after entry into force of the Agreement, aerial spraying services. Investment: Indeterminate ======================================================================= ====== ANNEX I Schedule of the United States SECTOR: Transportation SUB-SECTOR: Land Transportation INDUSTRY CLASSIFICATION: SIC 4213 Trucking, Except Local 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 RESERVATION: National Treatment (Articles 1102, 1202) Most-Favored-Nation Treatment (Articles 1103, 1203) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Bus Regulatory Reform Act of 1982, as amended, section 6,

49 49 49 49 19

U.S.C. U.S.C. U.S.C. C.F.R. U.S.C.

10922(l) (1) and (2) 10530 (3) 10329, 10330 and 11705 and 1044 1202

Memorandum of Understanding Between the United States of America and the United Mexican States on Facilitation of Charter/Tour Bus Service, December 3, 1990. DESCRIPTION: Cross-Border Services 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 has been imposed on new grants of operating authority for persons of Mexico, except for provision of cross-border charter or tour bus services. 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 in the ICC Border Commercial Zones. Persons of Mexico providing bus service are not required to obtain an ICC certificate of registration to provide such service within the ICC Border Commercial Zones. A person providing bus or truck service between points in the United States is required to use United States-registered and either U.S.built or duty-paid equipment. Investment 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.

DURATION: On entry into force of this Agreement, the Description shall govern. Cross-Border Services A person of Mexico will be permitted to obtain operating authority to provide: (a) three years after 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 entry into force of this Agreement, cross-border scheduled bus services; and (c) six years after 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 signature of this Agreement, truck services for the distribution of international cargo between points in the United States; and (b) seven years after entry into force of this Agreement, bus services between points in the United States. Indeterminate: 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 Schedule of United States

SECTOR: Transportation Services SUB-SECTOR: Customs Brokers INDUSTRY CLASSIFICATION: SIC 4731 Arrangement of Transportation of Freight and Cargo TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: 19 U.S.C. 1641(b)

DESCRIPTION: Cross-Border Services and Investment Only U.S. citizens may obtain a customs broker's license, which is required to conduct customs business on behalf of another person. A corporation, association, or partnership established under the laws 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. DURATION: Indeterminate ======================================================================= ====== ANNEX I Schedule of the United States SECTOR: All SUB-SECTOR: TYPE OF RESERVATION: National Treatment (Article 1102) Most-Favored-Nation Treatment (Article 1103) LEGAL CITATION: Securities Act of 1933, Rules 251 and 405, 17 C.F.R. 240.251 and 240.405 U.S.C. Securities Exchange Act of 1934, Section 12(b)(2), 15 1(b)(2) and the Rules thereunder. DESCRIPTION: Investment Foreign issuers, except for certain

Canadian issuers, may not use the small business forms under the Securities Act of 1933 to register securities. DURATION: Indeterminate ======================================================================= ====== ANNEX I Schedule of the United States SECTOR: SUBSECTOR: INDUSTRY CLASSIFICATION: SIC 4952 Sewerage System TYPE OF RESERVATION: Performance Requirements (Article 1106) LEGAL CITATION: 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, e.g., if the cost of the articles in question is unreasonable. 33 U.S.C. 1295. DURATION: Indeterminate