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Complete Home & Office Legal Guide
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Complete Home and Office Legal Guide (Chestnut) (1993).ISO
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(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 Comunicación") 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
Artículo 131 de la Constitución Política 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 Artículo 131 de la Constitución
Política 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 Artículo 131 de la Constitución