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CHAPTER NINE

(STANDARDS-RELATED MEASURES)

OF THE

NORTH AMERICAN FREE TRADE AGREEMENT (NAFTA)

What is Chapter Nine of the NAFTA and what does it do?

Who benefits from Chapter Nine of the NAFTA?

How can Chapter Nine of the NAFTA help me or my company?

Can the U.S. Government help me if I have a problem?

How can I get more information?

What is Chapter Nine of the NAFTA and what does it do?

Chapter Nine of the North American Free Trade Agreement (NAFTA) requires the three NAFTA countries - the United States, Canada and Mexico - to apply standards-related measures (standards, technical regulations and conformity assessment procedures) in a non-discriminatory manner, ensuring that they do not create unnecessary obstacles to trade. It states that the three countries shall, to the greatest extent practicable, make their standards-related measures compatible, without reducing levels of safety or protection for human, animal or plant life or health. It provides for the mutual accreditation of the bodies that test or monitor products to determine whether a standard or technical regulation has been fulfilled. It also establishes open and transparent procedures for the adoption or modification of standards-related measures by each NAFTA country in which interested persons and companies from other NAFTA countries can participate.

The NAFTA entered into force on January 1, 1994. It has no expiration date.

Who benefits from Chapter Nine of the NAFTA?

Any U.S. company interested in supplying goods or services to Canada and Mexico that may be subject to standards or technical regulations can benefit from the open, non-discriminatory rules and procedures set forth in Chapter Nine.

How can Chapter Nine of the NAFTA help me or my company?

Non-Discrimination

Chapter Nine recognizes the basic right of NAFTA countries to adopt, maintain and apply standards-related measures, including those relating to safety, the protection of human, animal or plant life or health, the environment, and consumers. In doing so, however, each NAFTA country shall accord national and most-favored-nation (MFN) treatment to goods imported from, and services provided by, other NAFTA countries. (National treatment is treatment that is no less favorable than that accorded to domestic goods and services; MFN treatment is treatment that is no less favorable than that accorded to goods and services imported from any other country.) No standards-related measures may be prepared, adopted, maintained or applied with the intent or effect of creating an unnecessary obstacle to trade among the NAFTA countries.

Compatibility and Equivalence

Chapter Nine's provisions relating to compatibility and equivalence make it less likely that U.S. companies will be faced with the costly and time-consuming burden of adapting their products to different standards in the three NAFTA countries. Chapter Nine states that the NAFTA countries shall, to the greatest extent practicable, make their standards-related measures compatible so as to facilitate trade. With respect to standards and comformity accessment procedures, each NAFTA country shall, on request, seek to promote the compatibility of a specific standard or conformity assessment procedure with standards or conformity assessment procedures maintained by the requesting country. With respect to technical regulations, Chapter Nine states that each importing country shall treat regulations maintained by an exporting country as equivalent to its own where the exporting country can demonstrate that its regulations adequately fulfill the importing country's legitimate objectives.

Conformity Assessment

Conformity assessment is defined in Chapter Nine as any procedure used to determine whether a standard or technical regulation has been fulfilled, including sampling, testing, inspection, evaluation, verification or monitoring.

Chapter Nine states that each NAFTA country shall accredit, approve, license or otherwise recognize the conformity assessment bodies of the other NAFTA countries on terms no less favorable that those accorded to its own conformity assessment bodies. This would enable an American company to use a single U.S. laboratory to test a product that it wishes to sell, or a service that it wishes to provide, in all three NAFTA countries. Chapter Nine also sets forth procedures that NAFTA countries should use to ensure that conformity assessment is carried out in a transparent, non-discriminatory and expeditious manner.

Notification, Publication and Provision of Information

The notification procedures in Chapter Nine ensure that American companies will not be surprised by new standards-related measures or modifications of existing ones in Canada and Mexico. They will have an opportunity to comment on how standards and conformity assessment procedures that are not based on international standards and that may affect international trade, and how technical regulations that may materially affect the operation of the NAFTA, are formulated or changed. According to Chapter Nine, each NAFTA country proposing to adopt or modify a technical regulation shall publish a notice and notify the other NAFTA countries of its proposed measure 60 days in advance, and shall do so "at an early appropriate stage" for standards or conformity assessment procedures. Without discrimination, a NAFTA government shall allow the other NAFTA governments and interested parties to make comments in writing and to have the opportunity to discuss these comments. The comments and results of the discussions must be taken into account. Each government shall establish inquiry points to answer all reasonable inquiries from the other governments and from interested parties.

The Committee/Technical Consultations

Chapter Nine provides for the establishment of a Committee on Standards-Related Measures, composed of representatives of the three NAFTA governments. Its functions include monitoring and facilitating the implementation and administration of the Chapter's provisions. The Committee has established a variety of subcommittees and working groups which can include representatives of non-governmental standards organizations, scientists and technical experts.

A NAFTA government may ask the Committee for technical consultations when it believes that a standards-related measure of another government is inconsistent with Chapter Nine. The Committee can refer the matter to a subcommittee or working group, and it is obliged to provide any technical advice or recommendations that it develops or receives promptly to the governments concerned.

Can the U.S. Government help me if I have a problem?

Yes. If you believe, in the course of conducting business with Canada or Mexico, that the Canadian or Mexican government has failed to comply with the provisions of Chapter Nine of the NAFTA regarding standards-related measures, contact the Office of Trade Agreements Negotiations and Compliance's hotline at the U.S. Department of Commerce. The Center can help you understand your rights under Chapter Nine and the other NAFTA countries' obligations, and can alert the relevant U.S. Government officials to help you resolve your problem. The U.S. Government can, if appropriate, raise the particular facts of your situation with Canadian or Mexican authorities and ask them to review the matter.

How can I get more information?

The complete text of Chapter Nine (Standards-Related Measures) of the NAFTA is available on the Office of Trade Agreements Negotiations and Compliance's web site.

If you have questions about Chapter Nine or how to use it, you can e-mail the Office of Trade Agreements Negotiations and Compliance (TANC) which will forward your message to the Commerce Department's Designated Monitoring Officer for this NAFTA Chapter. You can also contact the Designated Monitoring Officer at the following address:

Designated Monitoring Officer -

NAFTA Chapter 9 (Standards-Related Measures)

Office of North America

U.S. Department of Commerce

14th Street & Constitution Avenue, N.W.

Washington, D.C. 20230

Phone: (202) 482 - 7406

Fax: (202) 482 - 5865

Other useful information is available on:

The NAFTA Facts web site of the Office of NAFTA and Inter-American Affairs at the U.S. Department of Commerce, which contains documents and background information on NAFTA and on doing business in Canada and Mexico.