PREAMBLE

PREAMBLE The Government of Canada, the Government of the United Mexican States and
the Government of the United States of America, resolved to:
STRENGTHEN the special bonds of friendship and cooperation among their
nations;
CONTRIBUTE to the harmonious development and expansion of world trade
and provide a catalyst to broader international cooperation;
CREATE an expanded and secure market for the goods and services
produced in their territories;
REDUCE distortions to trade;
ESTABLISH clear and mutually advantageous rules governing their trade;
ENSURE a predictable commercial framework for business planning and
investment;
BUILD on their respective rights and obligations under the General
Agreement on Tariffs and Trade and other multilateral and bilateral
instruments of cooperation;
ENHANCE the competitiveness of their firms in global markets;
FOSTER creativity and innovation, and promote trade in goods and
services that are the subject of intellectual property rights;
CREATE new employment opportunities and improve working conditions and
living standards in their respective territories;
UNDERTAKE each of the preceding in a manner consistent with
environmental protection and conservation;
PRESERVE their flexibility to safeguard the public welfare;
PROMOTE sustainable development;
STRENGTHEN the development and enforcement of environmental laws and
regulations; and
PROTECT, enhance and enforce basic workers' rights;
HAVE AGREED as follows:
Article 101: Establishment of the Free Trade Area
The Parties to this Agreement, consistent with Article XXIV of the General
Agreement on Tariffs and Trade, hereby establish a free trade area.
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Article 102: Objectives
1. The objectives of this Agreement, as elaborated more specifically
through its principles and rules, including national treatment, most-
favored-nation treatment and transparency, are to:
a) eliminate barriers to trade in, and facilitate the cross-border
movement of, goods and services between the territories of the
Parties;
b) promote conditions of fair competition in the free trade area;
c) increase substantially investment opportunities in the territories
of the Parties;
d) provide adequate and effective protection and enforcement of
intellectual property rights in each Party's territory;
e) create effective procedures for the implementation and application
of this Agreement, for its joint administration and for the resolution
of disputes; and
f) establish a framework for further trilateral, regional and
multilateral cooperation to expand and enhance the benefits of this
Agreement.
2. The Parties shall interpret and apply the provisions of this Agreement
in the light of its objectives set out in paragraph 1 and in accordance
with applicable rules of international law.
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Article 103: Relation to Other Agreements
1. The Parties affirm their existing rights and obligations with respect to
each other under the General Agreement on Tariffs and Trade and other
agreements to which such Parties are party.
2. In the event of any inconsistency between this Agreement and such other
agreements, this Agreement shall prevail to the extent of the
inconsistency, except as otherwise provided in this Agreement.
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Article 104: Relation to Environmental and Conservation Agreements
1. In the event of any inconsistency between this Agreement and the
specific trade obligations set out in:
a) the Convention on International Trade in Endangered Species of Wild
Fauna and Flora, done at Washington, March 3, 1973, as amended June
22, 1979,
b) the Montreal Protocol on Substances that Deplete the Ozone Layer,
done at Montreal, September 16, 1987, as amended June 29, 1990,
c) the Basel Convention on the Control of Transboundary Movements of
Hazardous Wastes and Their Disposal, done at Basel, March 22, 1989, on
its entry into force for Canada, Mexico and the United States, or
d) the agreements set out in Annex 104.1,
such obligations shall prevail to the extent of the inconsistency, provided
that where a Party has a choice among equally effective and reasonably
available means of complying with such obligations, the Party chooses the
alternative that is the least inconsistent with the other provisions of
this Agreement.
2. The Parties may agree in writing to modify Annex 104.1 to include any
amendment to an agreement referred to in paragraph 1, and any other
environmental or conservation agreement.
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Article 105: Extent of Obligations
The Parties shall ensure that all necessary measures are taken in order to
give effect to the provisions of this Agreement, including their
observance, except as otherwise provided in this Agreement, by state and
provincial governments. [pic]Annex 104.1
Bilateral and Other Environmental and Conservation Agreements 1. The Agreement Between the Government of Canada and the Government of the
United States of America Concerning the Transboundary Movement of Hazardous
Waste, signed at Ottawa, October 28, 1986.
2. The Agreement Between the United States of America and the United
Mexican States on Cooperation for the Protection and Improvement of the
Environment in the Border Area, signed at La Paz, Baja California Sur,
August 14, 1983.
Article 201: Definitions of General Application
1. For purposes of this Agreement, unless otherwise specified:
Commission means the Free Trade Commission established under Article
2001(1) (The Free Trade Commission);
Customs Valuation Code means the Agreement on Implementation of Article VII
of the General Agreement on Tariffs and Trade, including its interpretative
notes;
days means calendar days, including weekends and holidays;
enterprise means any entity constituted or organized under applicable law,
whether or not for profit, and whether privately-owned or governmentally-
owned, including any corporation, trust, partnership, sole proprietorship,
joint venture or other association;
enterprise of a Party means an enterprise constituted or organized under
the law of a Party;
existing means in effect on the date of entry into force of this Agreement; Generally Accepted Accounting Principles means the recognized consensus or
substantial authoritative support in the territory of a Party with respect
to the recording of revenues, expenses, costs, assets and liabilities,
disclosure of information and preparation of financial statements. These
standards may be broad guidelines of general application as well as
detailed standards, practices and procedures;
goods of a Party means domestic products as these are understood in the
General Agreement on Tariffs and Trade or such goods as the Parties may
agree, and includes originating goods of that Party;
Harmonized System (HS) means the Harmonized Commodity Description and
Coding System, and its legal notes, and rules as adopted and implemented by
the Parties in their respective tariff laws;
measure includes any law, regulation, procedure, requirement or practice;
national means a natural person who is a citizen or permanent resident of a
Party and any other natural person referred to in Annex 201.1;
originating means qualifying under the rules of origin set out in Chapter
Four (Rules of Origin);
person means a natural person or an enterprise;
person of a Party means a national, or an enterprise of a Party;
Secretariat means the Secretariat established under Article 2002(1) (The
Secretariat);
state enterprise means an enterprise that is owned, or controlled through
ownership interests, by a Party; and
territory means for a Party the territory of that Party as set out in Annex
201.1.
2. For purposes of this Agreement, unless otherwise specified, a reference
to a state or province includes local governments of that state or
province. [pic] Annex 201.1
Country-Specific Definitions For purposes of this Agreement, unless otherwise specified:
national also includes:
a) with respect to Mexico, a national or a citizen according to
Articles 30 and 34, respectively, of the Mexican Constitution; and
b) with respect to the United States, "national of the United States"
as defined in the existing provisions of the Immigration and
Nationality Act;
territory means:
a) with respect to Canada, the territory to which its customs laws
apply, including any areas beyond the territorial seas of Canada
within which, in accordance with international law and its domestic
law, Canada may exercise rights with respect to the seabed and subsoil
and their natural resources;
b) with respect to Mexico,
(i) the states of the Federation and the Federal District,
(ii) the islands, including the reefs and keys, in adjacent
seas,
(iii) the islands of Guadalupe and Revillagigedo situated in the
Pacific Ocean,
(iv) the continental shelf and the submarine shelf of such
islands, keys and reefs,
(v) the waters of the territorial seas, in accordance with
international law, and its interior maritime waters,
(vi) the space located above the national territory, in
accordance with international law, and Annex 201.1
(vii) any areas beyond the territorial seas of Mexico within
which, in accordance with international law, including the
United Nations Convention on the Law of the Sea, and its
domestic law, Mexico may exercise rights with respect to the
seabed and subsoil and their natural resources; and
c) with respect to the United States,
(i) the customs territory of the United S