Michigan State University Extension
Extenstion International Trade Res. - 09079503
03/31/96

Part One General Part Chapter One


Objectives                                                  
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.                         

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 their territories;                                       

     (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, and       
for its joint administration and 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.                                                        


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 the          
provisions of this Agreement and such other agreements,     
the provisions of this Agreement shall prevail to the       
extent of the inconsistency,except as otherwise provided    
in this Agreement.                                          


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) Convention on the International Trade in           
Endangered Species of Wild Fauna and Flora, done at         
Washington, March 3, 1973;                                  

     (b) the Montreal Protocol on Substances that           
Deplete the Ozone Layer, done at Montreal, September 16,    
1987, as amended June 29, 1990;                             

     (c) Basel Convention on the Control of                 
Transboundary Movements of Hazardous Wastes and Their       
Disposal, done at Basel, March 22, 1989, upon 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 the agreements listed     
in paragraph 1,and any other environmental or               
conservation agreement.                                     


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.             

========================================================    

                     ANNEX 104                              
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.                                            
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