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Chapter Seven: Agriculture and Sanitary and Phytosanitary Measures

Annex 703.2: Market Access

Section B - Canada and Mexico

1. This Section applies only as between Canada and Mexico.

Customs Duties and Quantitative Restrictions

2. With respect to agricultural goods, Article 309(1) and (2) (Import and Export Restrictions) applies only to qualifying goods.

3. Except with respect to a good set out in Sections A or B of Annex 703.3., where a Party applies an over-quota tariff rate to a qualifying good pursuant to a tariff rate quota set out in its Schedule to Annex 302.2 or increases a customs duty for a sugar or syrup good to a rate that exceeds the rate of customs duty for that good set out in its GATT Schedule of Tariff Concessions as of July 1, 1991, the other Party waives its rights under the GATT with respect to the application of that rate of customs duty.

4. Notwithstanding Article 302(2) (Tariff Elimination), where an agreement resulting from agricultural multilateral trade negotiations under the GATT enters into force with respect to a Party pursuant to which it has agreed to convert a prohibition or restriction on its importation of an agricultural good into a tariff rate quota or a customs duty, that Party may not apply to such good that is a qualifying good an over-quota tariff rate that is higher than the lower of the over-quota tariff rate in:

a) its Schedule to Annex 302.2, and

b) that agreement,

and paragraph 3 shall no longer apply to the other Party with respect to that good.

5. Each Party may count the in-quota quantity under a tariff rate quota applied to a qualifying good in accordance with its Schedule to Annex 302.2 toward the satisfaction of commitments regarding an in-quota quantity of a tariff rate quota or level of access under a restriction on the importation of that good:

a) that have been agreed under the GATT, including as set out in its GATT Schedule of Tariff Concessions; or

b) undertaken by the Party as a result of any agreement resulting from agricultural multilateral trade negotiations under the GATT.

6. Subject to this Section and for purposes of this Section, Canada and Mexico incorporate their respective rights and obligations with respect to agricultural goods under the GATT and agreements negotiated under the GATT, including their rights and obligations under Article XI of the GATT.

7. Notwithstanding paragraph 6 and Article 309:

a) the rights and obligations of the Parties under Article XI:2(c)(i) of the GATT and those rights as incorporated by Article 309 shall apply with respect to trade in agricultural goods only to the dairy, poultry and egg goods set out in Appendix 703.2.B.7; and

b) with respect to such dairy, poultry and egg goods that are qualifying goods, either Party may adopt or maintain a prohibition or restriction or a customs duty on the importation of such good consistent with its rights and obligations under the GATT.

8. Without prejudice to Chapter Eight (Emergency Action), neither Party may seek a voluntary restraint agreement from the other Party with respect to the exportation of a qualifying good.

9. Notwithstanding Chapter Four (Rules of Origin), Mexico may treat a good provided for in Mexican tariff item 1806.10.01 (except those with a sugar content less than 90 percent) or 2106.90.05 (except those that contain added flavoring matter) that is exported from the territory of Canada as non- originating for purposes of applying a rate of customs duty to that good, if any material provided for in HS subheading 1701.99 used in the production of such good is not a qualifying good.

10. Notwithstanding Chapter Four (Rules of Origin), Canada may treat a good provided for in Canadian tariff item 1806.10.10 or 2106.90.21 that is exported from the territory of Mexico as non-originating for purposes of applying a rate of customs duty to that good, if any material provided for in HS subheading 1701.99 used in the production of such good is not a qualifying good.

Trade in Sugar

11. Mexico shall apply a rate of customs duty equal to its most-favored-nation over-quota tariff rate to a sugar or syrup that is a qualifying good.

12. Canada may apply a rate of customs duty on a sugar or syrup good that is a qualifying good equal to the rate of customs duty applied by Mexico pursuant to paragraph 11.

Agricultural Grading and Marketing Standards

13. The Parties hereby establish a Working Group, comprising representatives of Canada and Mexico, which shall meet annually or as otherwise agreed. The Working Group shall review, in coordination with the Committee on Standards-Related Measures established under Article 913 (Committee on Standards-Related Measures), the operation of agricultural grade and quality standards as they affect trade between the Parties, and shall resolve issues that may arise regarding the operation of the standards. This Working Group shall report to the Committee on Agricultural Trade established under Article 706.

Definitions

14. For purposes of this Section:

qualifying good means an originating good that is an agricultural good except that, in determining whether such good is an originating good, operations performed in or material obtained from the United States shall be considered as if they were performed in or obtained from a non-Party.

Section C - Definitions

For purposes of this Annex:

sugar or syrup good means:

a) for imports into Canada, a good provided for in any of the current tariff items 1701.11.10, 1701.11.20, 1701.11.30, 1701.11.40, 1701.11.50, 1701.12.00, 1701.91.00, 1701.99.00, 1702.90.31, 1702.90.32, 1702.90.33, 1702.90.34, 1702.90.35, 1702.90.36, 1702.90.37, 1702.90.38, 1702.90.40, 1806.10.10 and 2106.90.21 of the Canadian Tariff Schedule;

b) for imports into Mexico, a good provided for in any of the current tariff items 1701.11.01, 1701.11.99, 1701.12.01, 1701.12.99, 1701.91 (except those that contain added flavoring matter), 1701.99.01, 1701.99.99, 1702.90.01, 1806.10.01 (except those with a sugar content less than 90 percent) and 2106.90.05 (except those that contain flavoring matter) of the General Import Duty Act ("Ley del Impuesto General de Importación"); and

c) for imports into the United States, a good provided for in any of the current tariff items 1701.11.03, 1701.12.02, 1701.91.22, 1701.99.02, 1702.90.32, 1806.10.42, and 2106.90.12 of the U.S. Harmonized Tariff Schedule, without regard to the quantity imported.

Appendix 703.2.A.4: Goods not Subject to Annex 703.2.A.4

Note: (For purposes of reference only, descriptions are provided next to the corresponding tariff provision).

Schedule of Mexico

Mexican Tariff Item

Description

2009.11.01

Orange juice, frozen

2009.19.01

Orange juice, with a grade of concentration not greater than 1.5
(single-strength orange juice)

Schedule of the United States

U.S. Tariff Item

Description

2009.11.00

Orange juice, frozen

2009.19.20

Orange juice, not frozen, not concentrated (single-strength orange juice

Appendix 703.2.A.13: Determination and Adjustment of Net Production Surplus

1. For purposes of Section A(14)(c), where the Parties project a net production surplus for a Party for the next marketing year, the projected surplus shall be:

a) increased by the amount, if any, by which the actual net production surplus exceeds the projected net production surplus in the most recent marketing year for which the Parties projected a net production surplus for that Party; or

b) decreased by the amount, if any, by which the projected net production surplus exceeds the actual net production surplus in the most recent marketing year for which the Parties projected a net production surplus for that Party; as further demonstrated by the following formulas:

ANPS = (PPy - CPy) + CF

where:

ANPS = adjusted net production surplus

      PP = projected domestic production of sugar

      CP = projected total consumption of sugar

      CF = correction factor

      y = next marketing year,

and

CF = (PAys - CAys) - (PPys - CPys)

where:

PA = actual domestic production of sugar

CA = actual total consumption of sugar

ys = most recent previous marketing year for which the Parties projected a net production surplus for that Party.

2. For purposes only of paragraph 1, neither the projected net production surplus (PPys -CPys) nor the actual net production surplus (PAys - CAys) in the most recent marketing year for which the Parties projected a net production surplus for that Party may be considered to:

a) exceed the quantity, if any, in Section A(15) applicable to that year; or

b) be lower than the greater of

(i) 7,258 metric tons raw value, or

(ii) the quantity in paragraph 14(b) of Section A applicable to that year.

3. In appropriate circumstances, a Party shall consider adjustments to projections of its net production surplus when:

Fc greater than (B + 10 %)

where

F

is the percentage change in stocks from the beginning to the end of a marketing year z, expressed as a positive percentage

c

is current marketing year

F

is calculated in accordance with the following formula:

 

          Sb - Se
F  =  ------------   x   100
              Sb

Sb

beginning stocks in marketing year z

Se

ending stocks in marketing year z

B

the average annual percentage change in stocks over the previous 5 marketing years, calculated in accordance with the following formula:

N

previous marketing years, ranging from 1 (first preceding year) to 5 (fifth preceding year).

4. For purposes of determining net production surplus or projected net production surplus:

a) domestic production means all sugar and syrup goods derived from sugar cane or sugar beets grown in a Party's territory; and

b) total consumption means all sugar and syrup goods consumed directly, or indirectly in the form of a good containing such goods, in the territory of a Party.

5. Each Party shall permit representatives from the other Party to observe and comment on its statistics on production, consumption, trade and stocks and on the methodology it uses to prepare such statistics.

6. Statistics on production, consumption, trade and stocks shall be provided by:

a) the Secretaría de Agricultura y Recursos Hidráulicos, the Secretaría de Comercio y Fomento Industrial, and the Secretaría de Hacienda y Crédito Público; and

b) the U.S. Department of Agriculture (USDA).

Appendix 703.2.B.7: Dairy, Poultry and Egg Goods

Note: (For purposes of reference only, descriptions are provided next to the corresponding tariff provision).

Schedule of Canada

For Canada, a dairy, poultry or egg good is a good provided for in one of the following Canadian tariff items:

Canadian
Tariff Items

Description

0105.11.20

Broilers of the species Gallus domesticus for domestic production, weighing not more than 185 g.

0105.91.00

Live fowls of the species Gallus domesticus, weighing 185g. or more.

0105.99.00

Live ducks, geese, turkeys and guinea fowls, weighing 185g. or more.

0207.10.00

Meat of poultry of heading No. 01.05, not cut in pieces, fresh or chilled.

0207.21.00

Meat of fowls of the species Gallus domesticus, not cut in pieces, frozen.

0207.22.00

Meat of turkeys, not cut in pieces, frozen.

0207.39.00

Cut meat and edible offal (including livers other than fatty livers of geese or ducks), of the poultry of heading No. 01.05, fresh or chilled.

0207.41.00

Cut meat and edible offal, other than livers, of fowls of the species Gallus domesticus, frozen.

0207.42.00

Cut meat and edible offal, other than livers, of turkeys, frozen.

0207.50.00

Livers of poultry of heading No. 01.05, frozen.

0209.00.20

Poultry fat (not rendered), fresh, chilled, frozen, salted, in brine, dried or smoked.

0210.90.10

Meat of poultry, salted, in brine, dried or smoked.

0401.10.00

Milk and cream, not concentrated nor containing added sugar or other sweetening matter of a fat content, by weight, not exceeding 1 percent.

0401.20.00

Milk and cream, not concentrated nor containing added sugar or other sweetening matter of a fat content, by weight, exceeding 1 percent but not exceeding 6 percent.

0401.30.00

Milk and cream, not concentrated nor containing added sugar or other sweetening matter, of a fat content, by weight, exceeding 6 percent.

0402.10.00

Milk and cream, concentrated or containing added sugar or other sweetening matter, in powder, granules or other solid forms, of a fat content, by weight, not exceeding 1.5 percent.

0402.21.10

Milk, concentrated, not containing added sugar or other sweetening matter, in powder, granules or other solid forms, of a fat content, by weight, exceeding 1.5 percent.

0402.21.20

Cream, concentrated, not containing added sugar or other sweetening matter, in powder, granules or other solid forms, of a fat content, by weight, exceeding 1.5 percent.

0402.29.10

Milk, whether or not concentrated, containing added sugar or other sweetening matter, in powder, granules or other solid forms, of a fat content, by weight, exceeding 1.5 percent.

0402.29.20

Cream, whether or not concentrated, containing added sugar or other sweetening matter, in powder, granules or other solid forms, of a fat content, by weight, exceeding 1.5 percent.

0402.91.00

Milk and cream, concentrated, not containing added sugar or other sweetening matter, not in powder, granules or other solid forms.

0402.99.00

Milk and cream, whether or not concentrated, containing added sugar or other sweetening matter, not in powder, granules or other solid forms.

0403.10.00

Yogurt.

0403.90.10

Powdered buttermilk.

0403.90.90

Liquid buttermilk, curdled milk and cream, kephir and other fermented or acidified milk and cream, whether or not concentrated or containing added sugar or other sweetening matter or flavored or containing added fruit, nuts or cocoa.

0404.10.10

Whey powder and modified whey powder, whether or not concentrated or containing added sugar or other sweetening matter.

0404.10.90

Whey and modified whey, not in powder, whether or not concentrated or containing added sugar or other sweetening matter.

0404.90.00

Products consisting of natural milk constituents, whether or not containing added sugar or other sweetening matter, not elsewhere specified or included.

0405.00.10

Butter.

0405.00.90

Fats and oils derived from milk, other than butter.

0406.10.00

Fresh (unripened or uncured) cheese, including whey cheese, and curd.

0406.20.10

Cheddar cheese and cheddar types of cheese, grated or powdered.

0406.20.90

Grated or powdered cheese of all kinds, other than cheddar and cheddar types.

0406.30.00

Processed cheese, not grated or powdered.

0406.40.00

Blue-veined cheese.

0406.90.10

Cheddar cheese and cheddar types of cheese, not grated, powdered or processed.

0406.90.90

Other cheese not elsewhere specified or included.

0407.00.00

Birds' eggs, in shell, fresh, preserved or cooked.

0408.11.00

Dried egg yolks, whether or not containing added sugar or other sweetening matter.

0408.19.00

Egg yolks, fresh, cooked by steaming or by boiling in water, moulded, frozen or otherwise preserved, whether or not containing added sugar or other sweetening matter.

0408.91.00

Bird's eggs, not in shell, dried, whether or not containing added sugar or other sweetening matter.

0408.99.00

Birds' eggs, not in shell, fresh, cooked by steaming or by boiling in water, moulded, frozen or otherwise preserved, whether or not containing added sugar or other sweetening matter.

1601.00.11

Sausages and similar products of meat, meat offal or blood of poultry of heading No. 01.05 or food preparation based on these products, in airtight containers.

1602.10.10

Homogenized preparations of chicken or turkey.

1602.20.20

Poultry liver paste.

1602.31.10

Prepared meals of prepared or preserved turkey meat, meat offal or blood, other than sausages and similar products.

1602.31.91

Prepared or preserved turkey meat, meat offal or blood, other than sausages and similar products, and other than prepared meals, in air-tight containers.

1602.31.99

Prepared or preserved turkey meat, meat offal of blood, other than sausages and similar products, other than prepared meals, not in air-tight containers.

1602.39.10

Prepared meals of prepared or preserved meat, meat offal or blood of poultry of heading No. 01.05 other than turkey (i.e., Gallus domesticus, ducks, geese or guinea fowls), other than sausages and similar products.

1602.39.91

Prepared or preserved meat, meat offal or blood of poultry of heading No. 01.05 other than turkey (i.e., Gallus domesticus, ducks, geese or guinea fowls), other than sausages and similar products, and other than prepared meals, in air-tight containers.

1602.39.99

Prepared or preserved meat, meat offal or blood, of poultry of heading No. 01.05 other than turkey (i.e., Gallus domesticus, ducks, geese or guinea fowls), other than sausages and similar products, other than prepared meals, not in air-tight containers.

1901.90.31

Food preparations of goods of headings Nos. 04.01 to 04.04, not containing cocoa powder or containing cocoa powder in a proportion by weight of less than 10 percent, not elsewhere specified or included, containing more than 10 percent on a dry weight basis of milk solids.

2105.00.00

Ice cream and other edible ice, whether or not containing cocoa.

2106.90.70

Egg preparations not elsewhere specified or included.

2309.90.31

Complete feeds and feed supplements, including concentrates, containing over 50 percent by weight in the dry state of milk solids.

3501.10.00

Casein.

3501.90.00

Caseinates and other casein derivatives; casein glues.

3502.10.10

Egg albumin, dried, evaporated, desiccated or powdered.

3502.10.90

Other egg albumin.

Schedule of Mexico
For Mexico, a dairy, poultry or egg good is a good provided for in one of the following tariff items:

Mexican
Tariff Items

Description

0105.11.01

Day old chickens without being fed during its transportation

0105.91.01

Game cocks

0105.91.99

Other

0105.99.99

Other poultry

0207.10.01

Turkey

0207.10.99

Other

0207.21.01

Chickens

0207.22.01

Turkey

0207.39.01

Mechanically deboned of poultry or turkey (not provided for in heading 16.01 or 16.02)

0207.39.02

Turkey

0207.39.99

Other

0207.41.01

Mechanically deboned of poultry or turkey (not provided for in heading 16.01 or 16.02)

0207.41.99

Other

0207.42.01

Mechanically deboned of poultry or turkey (not provided for in heading 16.01 or 16.02)

0207.42.99

Other

0207.50.01

Poultry livers, frozen

0209.00.01

Chicken or turkey fat

0210.90.99

Other

0401.10.01

In hermetic containers milk not concentrated

0401.10.99

Other

0401.20.01

In hermetic containers

0401.20.99

Other

0401.30.01

In hermetic containers

0401.30.99

Other

0402.10.01

Milk powder

0402.10.99

Other

0402.21.01

Milk powder

0402.21.99

Other

0402.29.99

Other

0402.91.01

Evaporated milk

0402.91.99

Other

0402.99.01

Condensed milk

0402.99.99

Other

0403.10.01

Yogurt

0403.90.01

Powdered milk whey with a protein content less than or equal to 12 percent

0403.90.99

Other butter whey

0404.10.01

Whey, concentrated, sweetened

0404.90.99

Other

0405.00.01

Butter, including the immediate container, with a weight less than or equal to 1 kg

0405.00.02

Butter, including the immediate container, with a weight over 1 kg

0405.00.03

Butiric fat, dehydrated

0405.00.99

Other

0406.10.01

Fresh cheese, including whey cheese

0406.20.01

Cheese, grated or powdered

0406.30.01

Melted cheese, not grated or powdered

0406.30.99

Other, melted cheese

0406.40.01

Blue veined cheese

0406.90.01

Hard paste cheese called sardo

0406.90.02

Hard paste reggi cheese

0406.90.03

Soft paste cologne cheese

0406.90.04

Hard or semi-hard cheeses with a fat content by weight less than or equal to 40 percent, and with a water content by weight in non-fat matter less than or equal to 47 percent (called "grana", "parmigiana" or "reggiano,") or with a non-fat matter content by weight over 47 percent without exceeding 72 percent (called "danloo, edam, fontan, fontina, fynbo, gouda, Avarti, maribo, samsoe, esron, italico, kernhem, Saint-Nectaire, Saint-Paulin, or talegi ")

0406.90.05

Petit suisse cheese

0406.90.06

Egmont cheese

0406.90.99

Other hard and semihard cheese

0407.00.01

Fresh birds eggs, fertile

0407.00.02

Frozen eggs

0407.00.99

Other poultry eggs

0408.11.01

Dried yolks

0408.19.99

Other

0408.91.01

Frozen or powdered

0408.91.99

Other

0408.99.01

Frozen or powdered

0408.99.99

Other

1601.00.01

Sausages or similar products of poultry or turkey

1602.10.01

Homogenized preparations of poultry or turkey

1602.20.01

Prepared or preserved liver of poultry or turkey

1602.31.01

Prepared or preserved turkey meat

1602.39.99

Other

1901.90.03

Food preparations containing over 10 percent, by weight, of milk solids

2105.00.01

Ice cream and similar products

2106.90.09

Egg preparations

2309.90.11

Preparations containing over 50 percent by weight of milk solids

3501.10.01

Casein

3501.90.01

Casein glues

3501.90.02

Caseinates

3501.90.99

Other

3502.10.01

Egg albumin

Annex 703.3: Special Safeguard Goods

Note: (For purposes of reference only, descriptions are provided next to the corresponding tariff provision).

Section A - Canadian Special Safeguard Goods

Canadian
Tariff Items

Description

0603.10.90

Fresh cut flowers and flower buds, other than orchids, of a kind suitable for bouquets or for ornamental purposes.

0702.00.91

Tomatoes, fresh or chilled, not for processing, (dutiable period).

0703.10.31

Onions or shallots, green, fresh or chilled (dutiable period).

0707.00.91

Cucumbers or gherkins, fresh or chilled, not for processing (dutiable period).

0710.80.20

Broccoli and cauliflowers, uncooked or cooked by steaming or boiling in water, frozen.

0811.10.10

Strawberries, uncooked or cooked by steaming or boiling in water, frozen, whether or not containing added sugar or other sweetening matter, for processing.

0811.10.90

Strawberries, uncooked or cooked by steaming or boiling in water, frozen, whether or not containing added sugar or other sweetening matter, other than for processing.

2002.90.00

Tomatoes prepared or preserved otherwise than by vinegar or acetic acid, other than whole or in pieces.

Section B - Mexico

Mexican
Tariff Items

Description

0103.91.99

Live swine, weighing less than 50 kilograms each, except purebred breeding animals and those with pedigree or selected breed certificate

0103.92.99

Live swine, weighing 50 kilograms or more each, except purebred breeding animals and those with pedigree or selected breed certificate

0203.11.01

Meat of swine, carcasses and half- carcasses, fresh or chilled

0203.12.01

Hams, shoulders or cuts thereof, with bone in, fresh or chilled

0203.19.99

Other swine meat, fresh or chilled

0203.21.01

Meat of swine, carcasses and half- carcasses, frozen

0203.22.01

Hams, shoulders and cuts thereof, with bone in, frozen

0203.29.99

Other swine meat, frozen

0210.11.01

Hams, shoulders and cuts thereof with bone in, salted, in brine, dried or smoked

0210.12.01

Bellies (streaky) and cuts thereof, salted, in brine, dried or smoked.

0210.19.99

Other swine meat, in brine, dried or smoked

0710.10.01

Potatoes, uncooked or cooked by steaming or boiling in water, frozen

0712.10.01

Dried potatoes, whole cut, sliced, broken or in powder, but not further prepared

0808.10.01

Apples, fresh

2004.10.01

Potatoes prepared or preserved otherwise than by vinegar or acetic acid, frozen

2005.20.01

Potatoes prepared or preserved otherwise than by vinegar or acetic acid, not frozen

2101.10.01

Extracts, essences or concentrates, of coffee, and preparations with a basis of these extracts, essences or concentrates or with a basis of coffee

Section C - United States

U.S.
Tariff Items

Description

0702.00.06

Tomatoes (except cherry tomatoes), fresh or chilled; if entered during the period from November 15 to the last day of the following February, inclusive

0702.00.20

Tomatoes (except cherry tomatoes), fresh or chilled; if entered during the period from March 1 to July 14, inclusive

0703.10.40

Onions and shallots, fresh or chilled (not including onion sets and not including pearl onions not over 16 mm in diameter) if entered January 1 to April 30, inclusive

0709.30.20

Eggplants (aubergines), fresh or chilled, if entered during the period from April 1 to June 30, inclusive

0709.60.00

"Chili" peppers; if entered during the period from October 1 to July 31, inclusive (current 0709.60.00.20)

0709.90.20

Squash, fresh or chilled; if entered during the period from October 1 to the following June 30, inclusive

0807.10.40

Watermelons, fresh; if entered during the period from May 1 to September 30, inclusive.

Continue on to Article 709: Scope and Coverage


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