Article 4-01. Definitions.
For the purposes of this chapter, the following definitions shall apply:
model year: the period from November 1 of one year to October 31 of the following year.
integral buses: vehicles without chassis (frame) and with integrated bodywork, intended for the transport of more than 16 persons, including the driver, and which are classified in heading 8702 (self-supporting buses).
automotive goods: goods classified in annexes 1 and 2 to article 4-02.
trucks and tractor-trailers of more than 15 tons gross vehicle weight: vehicles with a chassis (frame) for the transport of goods, with a gross vehicle weight of 15,000 kilograms or more and which are classified in subheading 8701.20 or in heading 8704.
gross vehicle weight: the actual weight of the vehicle expressed in kilograms, plus its maximum load capacity according to the manufacturer's specifications and its full fuel tank.
used motor vehicle: one vehicle:
a) sold, leased or lent;
b) managed by more than:
i) 200 kilometers, in the case of vehicles with a gross vehicle weight of less than five tons;
ii) 2,000 kilometers, in the case of vehicles with a gross vehicle weight equal to or greater than five tons; or
c) manufactured prior to the current model year and that at least sixty days have elapsed since the date of manufacture.
Article 4-02. Scope of Application.
1. The provisions of this chapter apply only to automotive goods that are classified under the tariff codes specified in Annex 1 to this article and to automotive goods that are classified under the tariff codes specified in Annex 2 to this article, provided that the latter are used in the automotive goods referred to in Annex 1 to this article.
2. Inthe event of any inconsistency between any provision of this Chapter and any other provision of this Agreement, the provisions of this Chapter shall prevail to the extent of the inconsistency.
Article 4-03. Automotive Sector Committee.
1. The Parties establish the Automotive Sector Committee, composed of representatives of the Parties. The Committee shall be advised by representatives of the private sector.
2. It shall be the responsibility of the Committee:
a) submit to the Commission at the end of the first year following the entry into force of this Treaty, a proposal on:
i) a compensated exchange mechanism to promote trade in this sector;
ii) a methodology for the definition of the origin of automotive goods, taking into account the criteria of change of tariff classification or regional content value, as well as their percentage;
iii) any modification to the scope of application of this chapter; and
iv) any acceleration in the reduction of import duties on automotive goods, taking into account the differences in the degree of development of the automotive industries located in the territory of each Party.
b) to analyze the evolution of trade in the automotive sector and to propose to the Commission the mechanisms that will lead to a better development of this sector;
c) to analyze the automotive industry policies applied by each Party and make the pertinent recommendations to the Commission in order to achieve the elimination of barriers to trade and greater economic complementation in this sector; and
d) to ensure compliance with the provisions of this chapter and to make such recommendations as it deems pertinent to the Commission.
Article 4-04. Elimination of Import Taxes.
1. Each Party shall eliminate its import duties on trucks and tractor-trailers over 15 tons gross vehicle weight and on integral buses originating in a Party in accordance with the following:
(a) may maintain the prime rates or tariff rates set forth in Annex 1 to Article 3-04 for a period of two years following the entry into force of this Agreement; and
(b) eliminate them in eleven equal annual reductions beginning January 1, 1997, to be completely eliminated as of January 1, 2007.
2. Each Party shall eliminate its import duties on automotive goods originating in the other Parties not covered in paragraph 1, no earlier than January 1, 1997, in accordance with the following:
(a) if the Commission reaches agreement on the provisions of Article 4-03, paragraph 2(a)(i) and (ii), the Parties shall eliminate the prime rates or tariff rates set out in Annex 1 to Article 3- 04 in equal annual stages beginning on a date to be determined by the Commission, so that such prime rates or tariff rates are completely eliminated on January 1, 2007; or
(b) if the Commission does not reach agreement on the provisions of Article 4-03, paragraph 2(a)(i) and (ii), the Parties may maintain the prime rates or tariff rates set out in Annex 1 to Article 3-04, but shall eliminate them completely on January 1, 2007, unless the Parties agree to a longer period.
Article 4-05. Rules of Origin.
Notwithstanding the provisions of the Annex to Article 6-03 and Article 6-19, for the goods referred to in Annexes 1 and 2 to Article 4-02, the rules of origin established in Resolution 78 of the ALADI Committee of Representatives shall apply, as long as the Parties do not agree on different rules of origin for the aforementioned goods, in accordance with the provisions of Article 4-03, paragraph 2, subparagraph a), numeral ii).
Article 4-06. Performance Requirements.
1. Notwithstanding the provisions of Articles 3-03 and 17-04, the Parties may maintain or modify the performance requirements for the automotive industry.
2. Notwithstanding the provisions of Article 3-09, the Parties may adopt or maintain import permit measures to administer the requirements referred to in paragraph 1.
3. The Parties shall eliminate the measures referred to in paragraph 2 no later than January 1, 2007.
Article 4-07. Used Automotive Goods.
The Parties may adopt or maintain prohibitions or restrictions on the importation of used motor vehicles and other used, rebuilt or reconditioned automotive goods. Such goods are excluded from the Duty-Free Program.
Article 4-08. Extension of the PAR.
In the event that a Party grants PAR to a non-Party, it shall extend it to the other Parties under the same access conditions.
Chapter V. Agricultural Sector and Phytosanitary and Zoosanitary Measures
Section A. Agricultural Sector
Article 5-01. Definitions.
For the purposes of this section, the following definitions shall apply:
tariff-quota: that which is established by applying a certain rate or tariff rate to imports of a good up to a certain quantity (in-quota quantity) and a higher rate to imports of that good in excess of that quantity (over-quota).
sugar:
a) for imports into Mexico, the goods included in the following tariff items of the Tariff of the Mexican General Import Tax Law: 1701.11.01, 1701.11.99, 1701.12.01, 1701.12.99, 1701.91 (except those containing flavorings), 1701.99.01 and 1701.99.99;
b) for imports into Colombia and Venezuela, the goods included in the following tariff items of their respective Customs Tariff: 1701.11.10, 1701.11.90, 1701.12.00, 1701.91.00 and 1701.99.00. Agricultural good: good included in any of the following chapters, headings or subheadings of the Harmonized
System:
(a) Chapters 1 to 24, except fish and fish products; and
b) goods covered by the following headings or subheadings. The corresponding descriptions are provided for reference purposes only.
item or subheading / description
2905.43 mannitol
2905.44 sorbitol
33.01 essential oils
35.01 to 35.05 albuminoidal substances, starch products or modified starch
3809.10 Finishing agents and finishing products
3823.60 sorbitol n.o.s.
41.01 to 41.03 hides, skins and leather
43.01 raw furskins
44.01 to 44.07 wood
50.01 to 50.03 raw silk and silk waste
51.01 to 51.03 wool and fur
52.01 to 52.03 unginned cotton, cotton waste and cotton waste backcombing or combing
53.01 raw flax
53.02 raw hemp
53.03 to 53.05 jute, sisal, coconut and abaca fibers
fish and fish products: fish or crustaceans, mollusks or any other aquatic invertebrates, marine mammals and their derivatives, included in any of the following chapters, headings or subheadings of the Harmonized System: Descriptions are provided for reference purposes only.
chapter, description / heading or subheading
03 fish and crustaceans, mollusks and other invertebrates aquatic
05.07 ivory, tortoise shell, marine mammals, horns, antlers, hooves, hoofs, nails, claws and beaks, and their products
05.08 coral and similar products
05.09 natural sponges of animal origin
05.11 products of fish or crustaceans, mollusks, or any other invertebrate marine; the dead animals of chapter 3
15.04 fats and oils and their fractions, of fish or mammalian origin seafarers
16.03 non-meat extracts and juices
16.04 prepared or preserved fish
16.05 prepared or preserved crustaceans or mollusks and other marine invertebrates
2301.20 flours, meals, pellets, fish pellets
export subsidy:
a) the granting, by a government or public agency, to an industry, to producers of an agricultural good, to a cooperative or other association of such producers, to a marketing board or to any other type of enterprise, of direct subsidies, including payments in kind, contingent upon export performance;
b) the sale or placement for export, by a government or public agency, of non-commercial stocks of agricultural sector goods at a price lower than the comparable price charged for a similar good to buyers in the domestic market;
c) payments for the export of agricultural sector goods financed by virtue of governmental action, whether or not such payments involve a charge on the public budget, including those financed out of revenue from a levy imposed on the agricultural sector good in question or on the agricultural sector good from which the exported good is obtained;
d) the provision of subsidies to reduce the costs of marketing exports of agricultural goods, except for generally available export promotion and advisory services, including handling costs, and international transportation and freight costs;
e) internal transportation and freight costs for export shipments, established or imposed by a government on more favorable terms than for domestic shipments; or
f) subsidies on agricultural sector goods subject to their incorporation into exported goods.
Article 5-02. Scope of Application.
1. This section applies to measures adopted or maintained by a Party relating to trade in agricultural goods.
2. Inthe event of any inconsistency between any provision of this Section and any other provision of this Agreement, the provisions of this Section shall prevail to the extent of the inconsistency.
Article 5-03. Intergovernmental Agreements.
A Party shall, before taking a measure under an intergovernmental agreement on an agricultural good under Article XX(h) of the GATT that may affect trade in an agricultural good between the Parties, consult with the other Parties to avoid nullifying or impairing a concession granted by that Party in its Schedule.
Article 5-04. Access to Markets.
1. The Parties shall facilitate access to their respective markets by reducing or eliminating import and export barriers to reciprocal trade in agricultural goods, such as: import restrictions, import taxes, and agricultural technical and marketing standards.
2. The Parties renounce the use of quantitative import restrictions, price bands or price stabilization mechanisms and variable tariffs for the goods included in the Duty-Free Program in their reciprocal trade, without prejudice to the provisions of Annex 1 to this Article.
3. The Parties exempt from the Duty-Free Program the goods of the agricultural sector in accordance with Annex 2 to this Article.
4. Once a year after the entry into force of this Agreement, the Committee on Agricultural Trade established in Article 5-10 shall review the possibility of incorporating the agricultural sector goods contained in Annex 2 to this Article into the Duty-Free Program and shall make the pertinent recommendations to the Parties. This incorporation may be carried out in accordance with the methodologies described in Annex 1 to this Article.
5. Trade in the goods included in Annexes 3 and 4 to this article shall be governed by the provisions thereof.
Article 5-05. Special Safeguards.
1. Mexico and Venezuela may, in accordance with their Schedule to the Schedule to the Schedule, maintain or adopt a special safeguard in the form of a tariff rate quota on an agricultural good listed in their Section of the Annex to this Article. Notwithstanding Article 3-04, a Party may not apply an over- quota tariff rate or rate of duty under a special safeguard that exceeds the lesser of the following:
(a) the most-favored-nation rate or tariff in effect at the time of entry into force of this Agreement; and
b) the most favored nation rate or tariff prevailing at that time.
2. With respect to the same agricultural good and the same Party, no Party may simultaneously apply an over-quota tariff rate or tariff rate under paragraph 1 and take a safeguard measure under Chapter VIII.
Article 5-06. Refund of Import Taxes on Products Exported Under Identical or Similar Conditions.
From the date of entry into force of this Agreement, no Party may refund the amount of import taxes paid, or exempt or reduce the amount of import taxes due, on any agricultural good imported into its territory that is:
(a) replaced by an identical or similar good of the agricultural sector of that Party subsequently exported to the territory of another Party;
(b) replaced by an identical or similar good of the agricultural sector of that Party used as a material in the production of another good subsequently exported to the territory of another Party.
Article 5-07. Internal Support Measures.
1. The Parties recognize the existence of domestic support measures for the agricultural sector and that such measures may distort trade and affect production. They further recognize that commitments on reduction of domestic support may arise in the multilateral agricultural negotiations under the GATT.
Therefore, when a Party decides to support its agricultural producers, it will endeavor to move towards domestic support policies that:
(a) have no or minimal trade or production distorting effects; or
b) are exempt from any commitment to reduce domestic support that may be negotiated under the GATT.
2. Any Party may modify its domestic support measures, including those that may be subject to reduction commitments, in accordance with its rights and obligations under the GATT.
Article 5-08. Export Subsidies.
1. The Parties share the objective of achieving the multilateral elimination of export subsidies on agricultural goods and will cooperate in the effort to reach agreements within the framework of the GATT.
2. The Parties shall gradually eliminate export subsidies for agricultural sector goods incorporated into the Duty-Free Program in the following manner:
a) upon the incorporation of an agricultural good into the Tax Relief Program, the Parties may maintain the export subsidy prevailing in the year prior to its incorporation for up to three years;
b) as from the fourth year after the agricultural sector good has been incorporated into the relief program, the corresponding export subsidies will be eliminated in equal stages until reaching zero at the end of the relief of that good.
3. Once the relief has been completed, neither Party may maintain or introduce export subsidies on agricultural goods in its reciprocal trade. Likewise, the Parties waive their rights under the GATT to use export subsidies on agricultural goods in their reciprocal trade, as well as any rights with respect to the use of such subsidies that may result from multilateral negotiations on agricultural matters within the framework of the GATT.
4. Notwithstanding the provisions of paragraphs 2 and 3, a Party may, if so requested by another Party and there is agreement between them, adopt or maintain an export subsidy on an agricultural good exported to that other Party.
Article 5-09. Technical and Agricultural Marketing Standards.
1. The Parties establish a Working Group on Agricultural Technical and Marketing Standards composed of representatives of each Party, which shall meet annually or as otherwise agreed. The Working Group shall review the application and effects of technical or marketing standards for agricultural goods affecting trade between the Parties, and recommend possible solutions to issues that may arise in connection therewith. The Working Group shall report to the Committee on Agricultural Trade after each meeting.
2. Each Party shall accord to goods imported from another Party treatment no less favorable than that accorded to its goods in the application of technical or marketing standards to goods of the agricultural sector with respect to packaging, grades, quality and size of goods.
Article 5-10. Agricultural Trade Committee.
1. The Parties establish a Committee on Agricultural Trade, composed of representatives of each Party.
2. It shall be the responsibility of the Committee:
a) monitoring and promoting cooperation in the implementation and administration of this chapter;
b) the establishment of a forum for the Parties to consult on matters related to this chapter; c) the submission of an annual report to the Commission on the implementation of this section.
3. The Committee shall meet at least once a year and when so agreed.
Section B. Phytosanitary and Zoosanitary Measures
Article 5-11. Definitions.
For the purposes of this section, the following definitions shall apply:
animal: among others, domestic animals, fish and wildlife;
good: animals, vegetables, their products and by-products.
contaminant: among others, pesticide and veterinary drug residues and other foreign substances. disease: the more or less serious alteration of the animal body.
risk assessment: an evaluation of:
a) the probability of introduction, establishment and spread of a pest or disease and the potential biological and economic consequences;
b) the likelihood of adverse effects on human and animal life or health arising from the presence of an additive, contaminant, toxin, or disease-causing organism in a food or feed.
scientific information: data or information derived from the use of scientific principles and methods.
phytosanitary or animal health measure: a measure, including a criterion relating to the final good; a process or production method directly related to the good; a test, inspection, certification or approval procedure; a relevant statistical method; a sampling procedure; a risk assessment method; a packaging and labeling requirement directly related to food safety; and a quarantine regime, such as a relevant requirement associated with the transport of animals or plants, or with material necessary for their survival during transport, that a Party adopts, maintains or applies for:
a) protect animal life and health and plant health in its territory from risks arising from the introduction, establishment or spread of a pest or disease;
b) to protect human and animal life and health in its territory from risks arising from the presence of an additive, contaminant, toxin or disease-causing organism in food or feed;
c) to protect human life and health within its territory from the risks arising from a disease-causing organism or a pest carried by an animal or plant or a derivative thereof; or
d) prevent or limit other damage in its territory resulting from the introduction, establishment and spread of a pest or disease.
appropriate level of phytosanitary or animal health protection: the level of protection deemed appropriate by the Party establishing the phytosanitary or animal health measure to protect human, animal or plant life or health in its territory.
international standard, guideline or recommendation: a standard, guideline or recommendation, in relation to:
a) food safety, that established by the Codex Alimentarius Commission, including that related to product decomposition, elaborated by the Codex Alimentarius Committee on Fish and Fishery Products, food additives, contaminants, hygienic practices and methods of analysis and sampling;
b) animal health and zoonoses, that prepared under the auspices of the Office International des Epizooties;