Chapter Seven: Agriculture and Sanitary and Phytosanitary Measures
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.
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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