Text of Environmental Side Agreement to NAFTA (Sept 1993)

The following is the text of the NAFTA draft side accord on the
environment.  It is over 1500 lines long.
[Text follows]
_________________________________________________________

          NORTH AMERICAN FREE TRADE AGREEMENT
            DRAFT SIDE ACCORD ON ENVIRONMENT
                  SEPT. 10, 1993 (TEXT)

  BODY:

      NORTH AMERICAN AGREEMENT ON ENVIRONMENTAL COOPERATION
 BETWEEN THE GOVERNMENT OF CANADA, THE GOVERNMENT OF THE UNITED
 MEXICAN STATES AND THE GOVERNMENT OF THE UNITED STATES OF AMERICA
 1993 DRAFT

 PREAMBLE

    The Government of Canada, the Government of the United Mexican
 States and the Government of the United States of America:

     CONVINCED of the importance of the conservation, protection
 and enhancement of the environment in their territories and the
 essential role of cooperation in these areas in achieving
 sustainable development for the well-being of present and future
 generations;

     REAFFIRMING the sovereign right of States to exploit their
 own resources pursuant to their own environmental and development
 policies and their responsibility to ensure that activities
 within their jurisdiction or control donot cause damage to the
 environment of other States or of areas beyond the limits of
 national jurisdiction;

     RECOGNIZING the interrelationship of their environments;

     ACKNOWLEDGING the growing economic and social links between
 them, including theNorth American Free Trade Agreement (NAFTA);

 RECONFIRMING the importance of the environmental goals and
 objectives of the NAFTA, including enhanced levels of
 environmental protection;

     EMPHASIZING the importance of public participation in
 conserving, protecting and enhancing the environment;

     NOTING the existence of differences in their respective
 natural endowments, climatic and geographical conditions, and
 economic, technological and infrastructural capabilities;

     REAFFIRMING the Stockholm Declaration on the Human
 Environment of 1972 and the Rio Declaration on Environment and
 Development of 1992;

     RECALLING their tradition of environmental cooperation and
 expressing their desire to support and build on international
 environmental agreements and existing policies and laws in order
 to promote cooperation between them; and

     CONVINCED of the benefits to be derived from a framework,
 including a Commission, to facilitate effective cooperation on
 the conservation, protection and enhancement of the environment
 in their territories; HAVE AGREED AS FOLLOWS:   PART ONE
 OBJECTIVES   Article 1: Objectives

    The objectives of this Agreement are to:

     (a) foster the protection and improvement of the environment
 in the territories of the Parties for the well-being of present
 and future generations;   (b) promote sustainable development
 based on cooperation and mutually supportive environmental and
 economic policies;

     (c) increase cooperation between the Parties to better
 conserve, protect, and enhance the environment, including wild
 flora and fauna;

     (d) support the environmental goals and objectives of the
 NAFTA;

     (e) avoid creating trade distortions or new trade barriers;

     (f) strengthen cooperation on the development and improvement
 of environmental laws, regulations, procedures, policies and
 practices;

     (g) enhance compliance with, and enforcement of,
 environmental laws and regulations;

     (h) promote transparency and public participation in the
 development of environmental laws, regulations and policies;

     (i) promote economically efficient and effective
 environmental measures; and

     (j) promote pollution prevention policies and practices.
 PART TWO OBLIGATIONS   Article 2: General Commitments

    1. Each Party shall, with respect to its territory:

     (a) periodically prepare and make publicly available reports
 on the state of the environment; (b) develop and review
 environmental emergency preparedness measures;

     (c) promote education in environmental matters, including
 environmental law;

     (d) further scientific research and technology development in
 respect of environmental matters;

     (e) assess, as appropriate, environmental impacts; and

     (f) promote the use of economic instruments for the efficient
 achievement of environmental goals.

    2. Each Party shall consider implementing in its law any
 recommendation developed by the Council under Article 10(5)(b).

    3. Each Party shall consider prohibiting the export to the
 territories of theother Parties of a pesticide or toxic substance
 whose use is prohibited within the Party's territory. When a
 Party adopts a measure prohibiting or severely restricting the
 use of a pesticide or toxic substance in its territory, it
 shallnotify the other Parties of the measure, either directly or
 through an appropriate international organization.   Article 3:
 Levels of Protection

    Recognizing the right of each Party to establish its own
 levels of domestic environmental protection and environmental
 development policies and priorities, and to adopt or modify
 accordingly its environmental laws and regulations, each Party
 shall ensure that its laws and regulations provide for high
 levels of environmental protection and shall strive to continue
 to improve those laws and regulations.   Article 4: Publication

    1. Each Party shall ensure that its laws, regulations,
 procedures and administrative rulings of general application
 respecting any matter covered by this Agreement are promptly
 published or otherwise made available in such a manner as to
 enable interested persons and Parties to become acquainted with
 them.

    2. To the extent possible, each Party shall:

 (a) publish in advance any such measure that it proposes to
 adopt; and

     (b) provide interested persons and Parties a reasonable
 opportunity to comment on such proposed measures.
 Article 5: Government Enforcement Action

    1. With the aim of achieving high levels of environmental
 protection and compliance with its environmental laws and
 regulations, each Party shall effectively enforce its
 environmental laws and regulations through appropriate
 governmental action, subject to Article 37, much as:

     (a) appointing and training inspectors;

     (b) monitoring compliance and investigating suspected
 violations, including through on-site inspections;

     (c) seeking assurances of voluntary compliance and compliance
 agreements;

     (d) publicly releasing noncompliance information;

 (e) issuing bulletins or other periodic statements on enforcement
 procedures;

     (f) promoting environmental audits;

     (g) requiring record keeping and reporting;

     (h) providing or encouraging mediation and arbitration
 services;

     (i) using licenses, permits or authorizations;

     (j) initiating, in a timely manner, judicial, quasi-judicial
 or administrative proceedings to seek appropriate sanctions or
 remedies for violations of its environmental laws and
 regulations:

     (k) providing for search, seizure or detention; or

     (l) issuing administrative orders, including orders of a
 preventative, curativeor emergency nature.

    2. Each Party shall ensure that judicial, quasi-judicial or
 administrative enforcement proceedings are available under its
 law to sanction or remedy violations of its environmental laws
 and regulations.

    3. Sanctions and remedies provided for a violation of a
 Party's environmentallaws and regulations shall, as appropriate:

     (a) take into consideration the nature and gravity of the
 violation, any economic benefit derived from the violation by the
 violator, the economic condition of the violator, and other
 relevant factors; and

     (b) include compliance agreements, fines, imprisonment,
 injunctions, the closure of facilities, and the cost of
 containing or cleaning up pollution.   Article 6: Private Access
 to Remedies

    1. Each Party shall ensure that interested persons may request
 the Party's competent authorities to investigate alleged
 violations of its environmental laws and regulations and shall
 give such requests due consideration in accordance with law.

    2. Each Party shall ensure that persons with a legally
 recognized interest under its law in a particular matter have
 appropriate access to administrative, quasi-judicial or judicial
 proceedings for the enforcement of the Party's environmental laws
 and regulations.

    3. Private access to remedies shall include rights, in
 accordance with the Party's law, such as:

     (a) to sue another person under that Party's jurisdiction for
 damages;

     (b) to seek sanctions or remedies such as monetary penalties,
 emergency closures or orders to mitigate the consequences of
 violations of its environmental laws and regulations;

     (c) to request the competent authorities to take appropriate
 action to enforce that Party's environmental laws and regulations
 in order to protect the environment or to avoid environmental
 harm; or

     (d) to seek injunctions where a person suffers, or may
 suffer, loss, damage or injury as a result of conduct by another
 person under that Party's jurisdiction contrary to that Party's
 environmental laws and regulations or from tortious conduct.

 Article 7: Procedural Guarantees

    1. Each Party shall ensure that its administrative, quasi-
 judicial and judicial proceedings referred to in Articles 5(2)
 and 6(2) are fair, open and equitable, and to this end shall
 provide that such proceedings:

     (a) comply with due process of law;

     (b) are open to the public, except where the administration
 of justice otherwise requires;

     (c) entitle the parties to the proceedings to support or
 defend their respective positions and to present information or
 evidence; and

     (d) are not unnecessarily complicated and do not entail
 unreasonable charges ortime limits or unwarranted delays.

    2. Each Party shall provide that final decisions on the merits
 of the case insuch proceedings are:

     (a) in writing and preferably state the reasons on which the
 decisions are based;

     (b) made available without undue delay to the parties to the
 proceedings and, consistent with its law, to the public; and

     (c) based on information or evidence in respect of which the
 parties were offered the opportunity to be heard.

    3. Each Party shall provide, as appropriate that parties to
 such proceedings have the right, in accordance with its law, to
 seek review and. where warranted.correction of final decisions
 issued in such proceedings.

    4. Each Party shall ensure that tribunals that conduct or
 review such proceedings are impartial and independent and do not
 have any substantial interest in the outcome of the matter.
 PART THREE COMMISSION FOR ENVIRONMENTAL COOPERATION   Article 8:
 The Commission

 1. The Parties hereby establish the Commission for Environmental
 Cooperation.

     2. The Commission shall comprise a Council, a Secretariat and
 a Joint Public Advisory Committee.   Section A: The Council
 Article 9: Council Structure and Procedures

    1. The Council shall comprise cabinet-level or equivalent
 representatives of the Parties, or their designees.

    2. The Council shall establish its rules and procedures.

    3. The Council shall convene:

     (a) at least once a year in regular session; and

     (b) in special session at the request of any Party. Regular
 sessions shall be chaired successively by each Party. 4. The
 Council shall hold public meetings in the course of all regular
 sessions. Other meetings held in the course of regular or special
 sessions shallbe public where the Council so decides.

    5. The Council may:

     (a) establish, and assign responsibilities to, ad hoc or
 standing committees, working groups or expert groups;

     (b) seek the advice of non-governmental organizations or
 persons, including independent experts; and

     (c) take such other action in the exercise of its functions
 as the Parties may agree.

    6. All decisions and recommendations of the Council shall be
 taken by consensus, except as the Council may otherwise decide or
 as otherwise provided in this Agreement.

    7. All decisions and recommendations of the Council shall be
 made public, except as the Council may otherwise decide or as
 otherwise provided in this Agreement.   Article 10: Council
 Functions

    1. The Council shall be the governing body of the Commission
 and shall:

     (a) serve as a forum for the discussion of environmental
 matters within the scope of this Agreement;

     (b) oversee the implementation and develop recommendations on
 the further elaboration of this Agreement;

     (c) oversee the Secretariat;

     (d) address questions and differences that may arise between
 the Parties regarding the interpretation or application of this
 Agreement;

     (e) approve the annual program and budget of the Commission;
 and

     (f) promote and facilitate cooperation between the Parties
 with respect to environmental matters. 2. The Council may
 consider, and develop recommendations regarding:

     (a) comparability of techniques and methodologies for data
 gathering and analysis, data management and electronic data
 communications on matters covered by this Agreement;

     (b) pollution prevention techniques and strategies;

     (c) approaches and common indicators for reporting on the
 state of the environment:

     (d) the use of economic instruments for the pursuit of
 domestic and internationally agreed environmental objectives;

     (e) scientific research and technology development in respect
 of environmental matters;

     (f) promotion of public awareness regarding the environment;

     (g) transboundary and border environmental issues, such as
 the long-range transport of air and marine pollutants; (h) exotic
 species that may be harmful;

     (i) the conservation and protection of wild flora and fauna
 and their habitat, and specially protected natural areas;

     (j) the protection of endangered and threatened species;

     (k) environmental emergency preparedness and response
 activities;

     (l) environmental matters as they relate to economic
 development;

     (m) the environmental implications of goods throughout their
 life cycles;

     (n) human resource training and development in the
 environmental field;

     (o) the exchange of environmental scientists and officials;

     (p) approaches to environmental compliance and enforcement;

     (q) ecologically sensitive national accounts; (r) eco-
 labelling; and

     (s) other matters as it may decide.

    3. The Council shall strengthen cooperation on the development
 and continuingimprovement of environmental laws and regulations
 including by:

     (a) promoting the exchange of information on criteria and
 methodologies used inestablishing domestic environmental
 standards; and

     (b) without reducing levels of environmental protection,
 establishing a processfor developing recommendations on greater
 compatibility of environmental technical regulations, standards
 and conformity assessment procedures in a manner consistent with
 the NAFTA.

    4. The Council shall encourage:

     (a) effective enforcement by each Party of its environmental
 laws and regulations;

 (b) compliance with those laws and regulations; and

     (c) technical cooperation between the Parties.

    5. The Council shall promote and, as appropriate, develop
 recommendations regarding:

     a) public access to information concerning the environment
 that is held by public authorities of each Party, including
 information on hazardous materials and activities in its
 communities, and opportunity to participate in decision-making
 processes related to such public access; and

     b) appropriate limits for specific pollutants, taking into
 account differences in ecosystems.

    6. The Council shall cooperate with the NAFTA Free Trade
 Commission to achieve the environmental goals and objectives of
 the NAFTA by:

     (a) acting as a point of inquiry and receipt for comments
 from non-governmentalorganizations and persons concerning those
 goals and objectives;

 (b) providing assistance in consultations under Article 1114 of
 the NAFTA where a Party considers that another Party is waiving
 or derogating from, or offering to waive or otherwise derogate
 from. an environmental measure as an encouragement to establish,
 acquire, expand or retain an investment of an investor, with a
 view to avoiding any such encouragement;

     (c) contributing to the prevention or resolution of
 environment-related tradedisputes by:

      (i) seeking to avoid disputes between the Parties,

      (ii) making recommendations to the Free Trade Commission
 with respect to the avoidance of such disputes, and

      (iii) identifying experts able to provide information or
 technical advice to NAFTA committees, working groups and other
 NAFTA bodies;

     (d) considering on an ongoing basis the environmental effects
 of the NAFTA; and

     (e) otherwise assisting the Free Trade Commission in
 environment-related matters.

    7. Recognizing the significant bilateral nature of many
 transboundary environmental issues, the Council shall, with a
 view to agreement between the Parties pursuant to this Article
 within three years on obligations, consider anddevelop
 recommendations with respect to:

     a) assessing the environmental impact of proposed projects
 subject to decisionsby a competent government authority and
 likely to cause significant adverse transboundary effects,
 including a full evaluation of comments provided by otherParties
 and persons of other Parties;

     b) notification, provision of relevant information and
 consultation between Parties with respect to such projects; and

     c) mitigation of the potential adverse effects of such
 projects.

    8. The Council shall encourage the establishment by each Party
 of appropriateadministrative procedures pursuant to its
 environmental laws to permit another Party to seek the reduction.
 elimination or mitigation of transboundary pollution on a
 reciprocal basis. 9. The Council shall consider and, as
 appropriate, develop recommendations onthe provision by a Party,
 on a reciprocal basis, of access to and rights and remedies
 before its courts and administrative agencies for persons in
 another Party's territory who have suffered or are likely to
 suffer damage or injury caused by pollution originating in its
 territory as if the damage or injury weresuffered in its
 territory.   Section B: The Secretariat   Article 11: Secretariat
 Structure and Procedures

    1. The Secretariat shall be headed by an Executive Director,
 who shall be chosen by the Council for a three-year term, which
 may be renewed by the Councilfor one additional three-year term.
 The position of Executive Director shall rotate consecutively
 between nationals of each Party. The Council may remove
 theExecutive Director solely for cause.

    2. The Executive Director shall appoint and supervise the
 staff of the Secretariat, regulate their powers and duties and
 fix their remuneration in accordance with general standards to be
 established by the Council. The general standards shall provide
 that: (a) staff shall be appointed and retained, and their
 conditions of employment shall be determined, strictly on the
 basis of efficiency, competence and integrity;

     (b) in appointing staff, the Executive Director shall take
 into account lists of candidates prepared by the Parties and by
 the Joint Public Advisory Committee;

     (c) due regard shall be paid to the importance of recruiting
 an equitable proportion of the professional staff from among the
 nationals of each Party; and   (d) the Executive Director shall
 inform the Council of all appointments.

    3. The Council may decide, by a two-thirds vote, to reject any
 appointment that does not meet the general standards. Any such
 decision shall be made and held in confidence.

    4. In the performance of their duties, the Executive Director
 and the staff shall not seek or receive instructions from any
 government or any other authority external to the Council. Each
 Party shall respect the international character of the
 responsibilities of the Executive Director and the staff and
 shall not seek to influence them in the discharge of their
 responsibilities.

    5. The Secretariat shall provide technical, administrative and
 operational support to the Council and to committees and groups
 established by the Council, and such other support as the Council
 may direct.

    6. The Executive Director shall submit for the approval of the
 Council the annual program and budget of the Commission,
 including provision for proposed cooperative activities and for
 the Secretariat to respond to contingencies.

    7. The Secretariat shall, as appropriate, provide the Parties
 and the public information on where they may receive technical
 advice and expertise with respect to environmental matters.

    3. The Secretariat shall safeguard:

     (a) form disclosure information it receives that could
 identify a non-governmental Organization or person making a
 submission if the person or organization so requests or the
 Secretariat otherwise considers it appropriate; and (b) from
 public disclosure any information it receives from any non-
 governmental organization or person where the information is
 designated by that non-governmental organization or person as
 confidential or proprietary.   Article 12: Annual Report of the
 Commission

    1. The Secretariat shall prepare an annual report of the
 Commission in accordance with instructions from the Council. The
 Secretariat shall submit a draft of the report for review by the
 Council. The final report shall be released publicly.

    2. The report shall cover:

     (a) activities and expenses of the Commission during the
 previous year;

     (b) the approved program and budget of the Commission for the
 subsequent year;

     (c) the actions taken by each Party in connection with its
 obligations under this Agreement, including data on the Party's
 environmental enforcement activities; (d) relevant views and
 information submitted by non-governmental organizations and
 persons, including summary data regarding submissions, and any
 other relevant information the Council deems appropriate;

     (e) recommendations made on any matter within the scope of
 this Agreement; and

     (f) any other matter that the Council instructs the
 Secretariat to include.

    3. The report shall periodically address the state of the
 environment in the territories of the Parties.   Article 13:
 Secretariat Reports

    1. The Secretariat may prepare a report for the Council on any
 matter within the scope of the annual program. Should the
 Secretariat wish to prepare a reporton any other environmental
 matter related to the cooperative functions of this Agreement, it
 shall notify the Council and may proceed unless, within 30 days
 ofsuch notification, the Council objects by a two-thirds vote to
 the preparation of the report. Such other environmental matters
 shall not include issues relatedto whether a Party has failed to
 enforce its environmental laws and regulations. Where the
 Secretariat does not have specific expertise in the matter under
 review, it shall obtain the assistance of one or more independent
 experts of recognized experience in the matter to assist in the
 preparation of the report.

    2. In preparing such a report, the Secretariat may draw upon
 any relevant technical, scientific or other information,
 including information:

     (a) that is publicly available;

     (b) submitted by interested non-governmental organizations
 and persons;

     (c) submitted by the Joint Public Advisory Committee;

     (d) furnished by a Party;

     (e) gathered through public consultations, such as
 conferences, seminars and symposia; or

     (f) developed by the Secretariat, or by independent experts
 engaged pursuant toparagraph l. 3. The Secretariat shall submit
 its report to the Council, which shall make it publicly
 available, normally within 60 days following its submission,
 unless the Council otherwise decides.   Article 14: Submissions
 on Enforcement Matters

    1. The Secretariat may consider a submission from any non-
 governmental organization or person asserting that a Party is
 failing to effectively enforce its environmental law, if the
 Secretariat finds that the submission:

     (a) is in writing in a language designated by that Party in a
 notification to the Secretariat;

     (b) clearly identifies the person or organization making the
 submission;

     (c) provides sufficient information to allow the Secretariat
 to review the submission, including any documentary evidence on
 which the submission may be based;

     (d) appears to be aimed at promoting enforcement rather than
 at harassing industry; (e) indicates that the matter has been
 communicated in writing to the relevant authorities of the Party
 and indicates the Party's response, if any; and

     (f) is filed by a person or organization residing or
 established in the territory of a Party.

    2. Where the Secretariat determines that a submission meets
 the criteria set out in paragraph 1, the Secretariat shall
 determine whether the submission merits requesting a response
 from the Party. In deciding whether to request a response, the
 Secretariat shall be guided by whether:

     (a) the submission alleges harm to the person or organization
 making the submission;

     (b) the submission, alone or in combination with other
 submissions, raises matters whose further study in this process
 would advance the goals of this Agreement;

     (c) private remedies available under the Party's law have
 been pursued; and

 (d) he submission is drawn exclusively from mass media reports.
 Where the Secretariat makes such a request, it shall forward to
 the Party a copy of the submission and any supporting information
 provided with the submission.

    3. The Party shall advise the Secretariat within 30 days or,
 in exceptional circumstances and on notification to the
 Secretariat, within 60 days of deliveryof the request:

     (a) whether the matter is the subject of a pending judicial
 or administrative proceeding, in which case the Secretariat shall
 proceed no further; and

     (b) of any other information that the Party wishes to submit,
 such as

      i) whether the matter was previously the subject of a
 judicial or administrative proceeding, and

      ii) whether private remedies in connection with the matter
 are available to the person or organization making the submission
 and whether they have been pursued.   Article 15: Factual Record
 1. If the Secretariat considers that the submission, in the light
 of any response provided by the Party. warrants developing a
 factual record the Secretariat shall so inform the Council and
 provide its reasons.

    2. The Secretariat shall prepare a factual record if the
 Council, by a two-thirds vote, instructs it to do so.

    3. The preparation of a factual record by the Secretariat
 pursuant to this Article shall be without prejudice to any
 further steps that may be taken with respect to any submission.

    4. In preparing a factual record, the Secretariat shall
 consider any information furnished by a Party and may consider
 any relevant technical, scientific or other information:

     (a) that is publicly available;

     (b) submitted by interested non-governmental organizations or
 persons;

     (c) submitted by the Joint Public Advisory Committee; or

 (d) developed by the Secretariat or by independent experts.

    5. The Secretariat shall submit a draft factual record to the
 Council. Any Party may provide comments on the accuracy of the
 draft within 45 days thereafter.

    6. The Secretariat shall incorporate, as appropriate, any such
 comments in the final factual record and submit it to the
 Council.

    7. The Council may, by a two-thirds vote, make the final
 factual record publicly available, normally within 60 days
 following its submission.   Section C: Advisory Committees
 Article 16: Joint Public Advisory Committee

    1. The Joint Public Advisory Committee shall comprise 15
 members, unless the Council otherwise decides. Each Party or, if
 the Party so decides, its National Advisory Committee convened
 under Article 17, shall appoint an equal number of members. 2.
 The Council shall establish the rules of procedure for the Joint
 Public Advisory Committee, which shall choose its own chair.

    3. The Joint Public Advisory Committee shall convene at least
 once a year at the time of the regular session of the Council and
 at such other times as the Council, or the Committee's chair with
 the consent of a majority of its members,may decide.

    4. The Joint Public Advisory Committee may provide advice to
 the Council on any matter within the scope of this Agreement,
 including on any documents provided to it under paragraph 6. and
 on the implementation and further elaboration of this Agreement,
 and may perform such other functions as the Council may direct.

    5. The Joint Public Advisory Committee may provide relevant
 technical, scientific or other information to the Secretariat,
 including for purposes of developing a factual record under
 Article 15. The Secretariat shall forward to the Council copies
 of any such information.

    6. The Secretariat shall provide to the Joint Public Advisory
 Committee at the time they are submitted to the Council copies of
 the proposed annual program and budget of the Commission. the
 draft annual report, and any report the Secretariat prepares
 pursuant to Article 13.

    7. The Council may, by a two-thirds vote, make a factual
 record available to the Joint Public Advisory Committee.
 Article 17: National Advisory Committees

    Each Party may convene a national advisory committee,
 comprising members of its public, including representatives of
 non-governmental organizations and persons, to advise it on the
 implementation and further elaboration of this Agreement.
 Article 18: Governmental Committees

    Each Party may convene a governmental committee, which may
 comprise or include representatives of federal and state or
 provincial governments, to advise it on the implementation and
 further elaboration of this Agreement.   Section D: Official
 Languages

 Article 19: Official Languages

    The official languages of the Corn mission shall be English,
 French and Spanish. All annual reports under Article 12, reports
 submitted to the Council under Article 13, factual records
 submitted to the Council under Article 15 (6) and panel reports
 under Part Five shall be available in each official language at
 the time they are made public. The Council shall establish rules
 and procedures regarding interpretation and translation.   PART
 FOUR COOPERATION AND PROVISION OF INFORMATION   Article 20:
 Cooperation

    1. The Parties shall at all times endeavor to agree on the
 interpretation andapplication of this Agreement and shall make
 every attempt through cooperation and consultations to resolve
 any matter that might affect its operation.

    2. To the maximum extent possible, each Party shall notify any
 other Party with an interest in the matter of any proposed or
 actual environmental measure that the Party considers might
 materially affect the operation of this Agreementor otherwise
 substantially affect that other Party's interests under this
 Agreement.

    3. On request of any other Party, a Party shall promptly
 provide information and respond to questions pertaining to any
 such actual or proposed environmentalmeasure, whether or not that
 other Party has been previously notified of that measure.

    4. Any Party may notify any other Party of, and provide to
 that Party, any credible information regarding possible
 violations of its environmental law, specific and sufficient to
 allow the other Party to inquire into the matter. Thenotified
 Party shall take appropriate steps in accordance with its law to
 so inquire and to respond to the other Party.   Article 21:
 Provision of Information

    1. On request of the Council or the Secretariat each Party
 shall, in accordance with its law, provide such information as
 the Council or the Secretariat may require, including:

     (a) promptly making available any information in its
 possession required for the preparation of a report or factual
 record, including compliance and enforcement data; and

     (b) taking all reasonable steps to make available any other
 such information requested.

    2. if a Party considers that a request for information from
 the Secretariat is excessive or otherwise unduly burdensome, it
 may so notify the Council. The Secretariat shall revise the scope
 of its request to comply with any limitationsestablished by the
 Council by a two-thirds vote.

    3. if a Party does not make available information requested by
 the Secretariat, as may be limited pursuant to paragraph 2, it
 shall promptly advisethe Secretariat of its reasons in writing.
 PART FIVE CONSULTATION AND RESOLUTION OF DISPUTES   Article 22:
 Consultations

    1. Any Party may request in writing consultations with any
 other Party regarding whether there has been a persistent pattern
 of failure by that other Party to effectively enforce its
 environmental law. 2. The requesting Party shall deliver the
 request to the other Parties and tothe Secretariat.

    3. Unless the Council otherwise provides in its rules and
 procedures established under Article 9(2). a third Party that
 considers it has a substantial interest in the matter shall be
 entitled to participate in the consultations on delivery of
 written notice to the other Parties and to the Secretariat.

    4. The consulting Parties shall make every attempt to arrive
 at a mutually satisfactory resolution of the matter through
 consultations under this Article.   Article 23: Initiation of
 Procedures

    1. If the consulting Parties fail to resolve the matter
 pursuant to Article 22 within 60 days of delivery of a request
 for consultations, or such other period as the consulting Parties
 may agree any such Party may request in writinga special session
 of the Council.

    2. The requesting Party shall state in the request the matter
 complained of and shall deliver the request to the other Parties
 and to the Secretariat. 3. Unless it decides otherwise, the
 Council shall convene within 20 days of delivery of the request
 and shall endeavor to resolve the dispute promptly.

    4. The Council may:

     (a) call on such technical advisers or create such working
 groups or expert groups as it deems necessary,

     (b) have recourse to good offices, conciliation, mediation or
 such other dispute resolution procedures, or

     (c) make recommendations, as may assist the consulting
 Parties to reach a mutually satisfactory resolution of the
 dispute. Any such recommendations shall be made public if the
 Council, by a two-thirds vote, so decides.

    5. Where the Council decides that a matter is more properly
 covered by another agreement or arrangement to which the
 consulting Parties are party, it shall refer the matter to those
 Parties for appropriate action in accordance with such other
 agreement or arrangement.   Article 24: Request far an Arbitral
 Panel 1. If the matter has not been resolved within 60 days after
 the Council has convened pursuant to Article 23, the Council
 shall, on the written request of any consulting Party and by a
 two-thirds vote, convene an arbitral panel to consider the matter
 where the alleged persistent pattern of failure by the
 Partycomplained against to effectively enforce its environmental
 law relates to a situation involving workplaces, firms, companies
 or sectors that produce goods or provide services:

     (a) traded between the territories of the Parties; or

     (b) that compete, in the territory of the Party complained
 against, with goods or services produced or provided by persons
 of another Party.

    2. A third Party that considers it has a substantial interest
 in the matter shall be entitled to join as a complaining Party on
 delivery of written notice of its intention to participate to the
 disputing Parties and the Secretariat. The notice shall be
 delivered at the earliest possible time, and in any event nolater
 than seven days after the date of the vote of the Council to
 convene a panel.

 3. Unless otherwise agreed by the disputing Parties, the panel
 shall be established and perform its functions in a manner
 consistent with the provisionsof this Part.   Article 25: Roster

    1. The Council shall establish and maintain a roster of up to
 45 individuals who are willing and able to serve as panelists.
 The roster members shall be appointed by consensus for terms of
 three years, and may be reappointed.

    2. Roster members shall:

     (a) have expertise or experience in environmental law or its
 enforcement, or inthe resolution of disputes arising under
 international agreements, or other relevant scientific, technical
 or professional expertise or experience;

     (b) be chosen strictly on the basis of objectivity,
 reliability and sound judgment;

     (c) be independent of, and not be affiliated with or take
 instructions from, any Party, the Secretariat or the Joint Public
 Advisory Committee; and (d) comply with a code of conduct to be
 established by the Council.   Article 26: Qualifications of
 Panelists

    1. All panelists shall meet the qualifications set out in
 Article 25(2).

    2. Individuals may not serve as panelists for a dispute in
 which:

     (a) they have participated pursuant to Article 23(4); or

     (b) they have, or a person or organization with which they
 are affiliated has, an interest, as set out in the code of
 conduct established under Article 25(2)(d).   Article 27: Panel
 Selection

    1. Where there are two disputing Parties, the following
 procedures shall apply:

     (a) The panel shall comprise five members. (b) The disputing
 Parties shall endeavor to agree on the chair of the panel within
 15 days after the Council votes to convene the panel. If the
 disputing Parties are unable to agree on the chair within this
 period, the disputing Partychosen by lot shall select within five
 days a chair who is not a citizen of thatParty.

     (c) Within 15 days of selection of the chair, each disputing
 Party shall selecttwo panelists who are citizens of the other
 disputing Party.

     (d) If a disputing Party fails to select its panelists within
 such period, suchpanelists shall be selected by lot from among
 the roster members who are citizens of the other disputing Party.

    2. Where there are more than two disputing Parties, the
 following procedures shall apply:

     (a) The panel shall comprise five members.

     (b) The disputing Parties shall endeavor to agree on the
 chair of the panel within 15 days after the Council votes to
 convene the panel. If the disputing Parties are unable to agree
 on the chair within this period, the Party or Parties on the side
 of the dispute chosen by lot shall select within 10 days a chair
 who is not a citizen of such Party or Parties.

     (c) Within 30 days of selection of the chair, the Party
 complained against shall select two panelists, one of whom is a
 citizen of a complaining Party, andthe other of whom is a citizen
 of another complaining Party. The complaining Parties shall
 select two panelists who are citizens of the Party complained
 against.

     (d) If any disputing Party fails to select a panelist within
 such period, such panelist shall be selected by lot in accordance
 with the citizenship criteria ofsubparagraph (c).

    3. Panelists shall normally be selected from the roster. Any
 disputing Party may exercise a peremptory challenge against any
 individual not on the roster whois proposed as a panelist by a
 disputing Party within 30 days after the individual has been
 proposed'.

    4. If a disputing Party believes that a panelist is in
 violation of the code of conduct, the disputing Parties shall
 consult and if they agree, the panelist shall be removed and a
 new panelist shall be selected in accordance with this Article.
 Article 28: Rules of Procedure

    1. The Council shall establish Model Rules of Procedure. The
 procedures shallprovide:

     (a) a right to at least one hearing before the panel;

     (b) the opportunity to make initial and rebuttal written
 submissions; and

     (c) that no panel may disclose which panelists are associated
 with majority or minority opinions.

    2. Unless the disputing Parties otherwise agree, panels
 convened under this Part shall be established and conduct their
 proceedings in accordance with the Model Rules of Procedure.

    3. Unless the disputing Parties otherwise agree within 20 days
 after the Council votes to convene the panel, the terms of
 reference shall be: "To examine, in light of the relevant
 provisions of the Agreement, including those contained in Part
 Five, whether there has been a persistent pattern of failure by
 the Party complained against to effectively enforce its
 environmentallaw, and to make findings, determinations and
 recommendations in accordance withArticle 31(2)."   Article 29:
 Third Party Participation

    A Party that is not a disputing Party, on delivery of a
 written notice to thedisputing Parties and to the Secretariat,
 shall be entitled to attend all hearings, to make written and
 oral submissions to the panel and to receive written submissions
 of the disputing Parties.   Article 30: Role of Experts

    On request of a disputing Party, or on its own initiative, the
 panel may seekinformation and technical advice from any person or
 body that it deems appropriate, provided that the disputing
 Parties so agree and subject to such terms and conditions as such
 Parties may agree.

 Article 31: Initial Report

    1. Unless the disputing Parties otherwise agree, the panel
 shall base its report on the submissions and arguments of the
 Parties and on any information before it pursuant to Article 30.

    2. Unless the disputing Parties otherwise agree, the panel
 shall, within 180 days after the last panelist is selected,
 present to the disputing Parties an initial report containing:

     (a) findings of fact;

     (b) its determination as to whether there has been a
 persistent pattern of failure by the Party complained against to
 effectively enforce its environmentallaw, or any other
 determination requested in the terms of reference; and

     (c) in the event the panel makes an affirmative determination
 under subparagraph (b), its recommendations, if any, for the
 resolution of the dispute, which normally shall be that the Party
 complained against adopt and implement an action plan sufficient
 to remedy the pattern of non-enforcement. 3. Panelists may
 furnish separate opinions on matters not unanimously agreed.

     4. A disputing Party may submit written comments to the panel
 on its initial report within 30 days of presentation of the
 report.

    5. In such an event, and after considering such written
 comments, the panel, on its own initiative or on the request of
 any disputing Party, may:

     (a) request the views of any participating Party;

     (b) reconsider its report; and

     (c) make any further examination that it considers
 appropriate.   Article 32: Final Report

    1. The panel shall present to the disputing Parties a final
 report, includingany separate opinions on matters not unanimously
 agreed, within 60 days of presentation of the initial report,
 unless the disputing Parties otherwise agree. 2. The disputing
 Parties shall transmit to the Council the final report of the
 panel, as well as any written views that a disputing Party
 desires to be appended, on a confidential basis within 15 days
 after it is presented to them.



      3. The final report of the panel shall be published five
 days after it is transmitted to the Council.   Article 33:
 Implementation of Final Report

    If, in its final report, a panel determines that there has
 been a persistent pattern of failure by the Party complained
 against to effectively enforce its environmental law, the
 disputing Parties may agree on a mutually satisfactory action
 plan, which normally shall conform with the determinations and
 recommendations of the panel. The disputing Parties shall
 promptly notify the Secretariat and the Council of any agreed
 resolution of the dispute.   Article 34: Review of Implementation

    1. If, in its final report, a panel determines that there has
 been a persistent pattern of failure by the Party complained
 against to effectively enforce its environmental law, and: (a)
 the disputing Parties have not agreed on an action plan under
 Article 33 within 60 days of the date of the final report, or

     (b) the disputing Parties cannot agree on whether the Party
 complained against is fully implementing

      (i) an action plan agreed under Article 33,

      (ii) an action plan deemed to have been established by a
 panel under paragraph2, or

      (iii) an action plan approved or established by a panel
 under paragraph 4, anydisputing Party may request that the panel
 be reconvened. The requesting Party shall deliver the bequest in
 writing to the other Parties and to the Secretariat. The Council
 shall reconvene he panel on delivery of the request to the
 Secretariat.

    2. No Party may make a request under paragraph 1(a) earlier
 than 60 days, or later than 120 days, after the date of the final
 report. If the disputing Parties have not agreed to an action
 plan and if no request was made under paragraph 1(a), the last
 action plan, if any, submitted by the Party complained against to
 the complaining Party or Parties within 60 days of the date the
 finalreport, or such other period as the disputing Parties may
 agree, shall be deemedto have been established by the panel 120
 days after the date of the final report.

    3. A request under paragraph 1(b) may be made no earlier than
 180 days after an action plan has been:

     (a) agreed under Article 33;

     (b) deemed to have been established by a panel under
 paragraph 2; or

     (c) approved or established by a panel under paragraph 4; and
 only during the term of any such action plan.

    4. Where a panel has been reconvened under paragraph 1(a), it:

     (a) shall determine whether any action plan proposed by the
 Party complained against is sufficient to remedy the pattern of
 non-enforcement and

 (i) if so, shall approve the plan, or

      (ii) if not, shall establish such a plan consistent with the
 law of the Party complained against, and

     (b) may, where warranted, impose a monetary enforcement
 assessment in accordance with Annex 34, within 90 days after the
 panel has been reconvened or such other period as the disputing
 Parties may agree.

    5. Where a panel has been reconvened under paragraph 1(b), it
 shall determineeither that:

     (a) the Party complained against is fully implementing the
 action plan, in which case the panel may not impose a monetary
 enforcement assessment, or

     (b) he Party complained against is not fully implementing the
 action plan, in which case the panel shall impose a monetary
 enforcement assessment in accordance with Annex 34, within 60
 days after it has been reconvened or such other period as the
 disputing Parties may agree.

 6. A panel reconvened under this Article shall provide that the
 Party complained against shall fully implement any action plan
 referred to in paragraph 4(a)(ii) or 5(b), and pay any monetary
 enforcement assessment imposed under paragraph 4(b) or 5(b), and
 any such provision shall be final.   Article 35: Further
 Proceeding

    A complaining Party may, at any time beginning 180 days after
 a panel determination under Article 34(5)(b), request in writing
 that a panel be reconvened to determine whether the Party
 complained against is fully implementing the action plan. On
 delivery of the request to the other Parties and the Secretariat,
 the Council shall reconvene the panel. The panel shall makethe
 determination within 60 days after it has been reconvened or such
 other period as the disputing Parties may agree.   Article 36:
 Suspension of Benefits

    1. Subject to Annex 36A, where a Party fails to pay a monetary
 enforcement assessment within 180 days after it is imposed by a
 panel:

     (a) under Article 34(4)(b), or (b) under Article 34(5)(b),
 except where benefits may be suspended under paragraph 2(a), any
 complaining Party or Parties may suspend, in accordance withAnnex
 36B, the application to the Party complained against of NAFTA
 benefits in an amount no greater than that sufficient to collect
 the monetary enforcementassessment. 2. Subject to Annex 36A,
 where a panel has made a determination under Article 34(5)(b) and
 the panel:

     (a) has previously imposed a monetary enforcement assessment
 under Article 34(4)(b) or established an action plan under
 Article 34(4)(a)(ii); or

     (b) has subsequently determined under Article 35 that a Party
 is not fully implementing an action plan; the complaining Party
 or Parties may, in accordancewith Annex 36B, suspend annually the
 application to the Party complained againstof NAFTA benefits in
 an amount no greater than the monetary enforcement assessment
 imposed by the panel under Article 34(5)(b).

    3. Where more than one complaining Party suspends benefits
 under paragraph 1 or 2, the combined suspension shall be no
 greater than the amount of the monetary enforcement assessment.
 4. Where a Party has suspended benefits under paragraph 1 or 2,
 the Council shall, on the delivery of a written request by the
 Party complained against to the other Parties and the Secretariat
 reconvene the panel to determine whether the monetary enforcement
 assessment has been paid or collected, or whether the Party
 complained against is fully implementing the action plan. as the
 case may be. The panel shall submit its report within 45 days
 after it has been reconvened. If the panel determines that the
 assessment has been paid or collected, or that the Parry
 complained against is fully implementing the actionplan, the
 suspension of benefits under paragraph 1 or 2, as the case may
 be, shall be terminated.

    5. On the written request of the Party complained against,
 delivered to the other Parties and the Secretariat, the Council
 shall reconvene the panel to determine whether the suspension of
 benefits by the complaining Party or Partiespursuant to paragraph
 1 or 2 is manifestly excessive. Within 45 days of the request,
 the panel shall present a report to the disputing Parties
 containing its determination.   PART SIX GENERAL PROVISIONS
 Article 37: Enforcement Principle Nothing in this Agreement shall
 be construed to empower a Party's authoritiesto undertake
 environmental law enforcement activities in the territory of
 another Party.   Article 38: Private Rights

    No Party may provide for a right of action under its law
 against any other Party on the ground that another Party has
 acted in a manner inconsistent with this Agreement.   Article 39:
 Protection of Information

    1. Nothing in this Agreement shall be construed to require a
 Party to make available or allow access to information:

     (a) the disclosure of which would impede its environmental
 law enforcement; or

     (b) that is protected from disclosure by its law governing
 business or proprietary information, personal privacy or the
 confidentiality of governmentaldecision making. 2. If a Party
 provides confidential or proprietary information to another Party
 the Council, the Secretariat or the Joint Public Advisory
 Committee, the recipient shall treat the information on the same
 basis as the Party providing the information.

    3. Confidential or proprietary information provided by a Party
 to a panel under this Agreement shall be treated in accordance
 with the rules of procedure established under Article 28.
 Article 40: Relation to Other Environmental Agreements

    Nothing in this Agreement shall be construed to affect the
 existing rights and obligations o: the Parties under other
 international environmental agreements, including conservation
 agreements, to which such Parties are party.   Article 41: Extent
 of Obligations

    Annex 41 applies to the Parties specified in that Annex
 Article 42: National Security Nothing in this Agreement shall be
 construed:

     (a) to require any Party to make available or provide access
 to information thedisclosure of which it determines to be
 contrary to its essential security interests; or

     (b) to prevent any Party from taking any actions that it
 considers necessary for the protection of its essential security
 interests relating to

      (i) arms, ammunition and implements of war, or

      (ii) the implementation of national policies or
 international agreements respecting the non-proliferation of
 nuclear weapons or other nuclear explosive devices.   Article 43:
 Funding of the Commission

    Each Party shall contribute an equal share of the annual
 budget of the Commission, subject to the availability of
 appropriated funds in accordance withthe Party's legal
 procedures. No Party shall be obligated to pay more than any
 other Party in respect of an annual budget. Article 44:
 Privileges and Immunities

    The Executive Director and staff of the Secretariat shall
 enjoy in the territory of each Party such privileges and
 immunities as are necessary for the exercise of their functions.
 Article 45: Definitions

    1. For purposes of this Agreement:

     A Party has not failed to "effectively enforce its
 environmental law" or to comply with Article 5(1) in a particular
 case where the action or inaction in question by agencies or
 officials of that Party:

      (a) reflects a reasonable exercise of their discretion in
 respect of investigatory, prosecutorial, regulatory or compliance
 matters; or

      (b) results from bonafide decisions to allocate resources to
 enforcement in respect of other environmental matters determined
 to have higher priorities;

 "non-governmental organization" means any scientific,
 professional, business, non-profit, or public interest
 organization or association which is neither affiliated with, nor
 under the direction of a government:

     "persistent pattern" means a sustained or recurring course of
 action or inaction beginning after the date of entry into force
 of this Agreement:

     "province" means a province of Canada, and includes the Yukon
 Territory and theNorthwest Territories and their successors; and

     "territory" means for a Party the territory of that Party as
 set out in Annex 45.

    2. For purposes of Article 14(1) and Part Five:

     (a) "environmental law" means any statute or regulation of a
 Party, or provision thereof, the primary purpose of which is the
 protection of the environment, or the prevention of a danger to
 human life or health, through

      (i) the prevention, abatement or control of the release,
 discharge, or emission of pollutants or environmental
 contaminants, (ii) the control of environmentally hazardous or
 toxic chemicals, substances, materials and wastes, and the
 dissemination of information related thereto, or

      iii) the protection of wild flora or fauna, including
 endangered species, their habitat, and specially protected
 natural areas

     in the Party's territory, but does not include any statute or
 regulation, or provision thereof, directly related to worker
 safety or health.

     (b) For greater certainty, the term "environmental law" does
 not include any Statute or regulation, or provision thereof, the
 primary purpose of which is managing the commercial harvest or
 exploitation, or subsistence or aboriginal harvesting, of natural
 resources.

     (c) The primary purpose of a particular statutory or
 regulatory provision for purposes of subparagraphs (a) and (b)
 shall be determined by reference to its primary purpose, rather
 than to the primary purpose of the statute or regulationof which
 it is part.

 3. For purposes of Article 14 (3), "judicial or administrative
 proceeding" means:

     (a) a domestic judicial, quasi-judicial or administrative
 action pursued by theParty in a timely fashion and in accordance
 with its law. Such actions comprise:mediation; arbitration; the
 process of issuing a license, permit, or authorization; seeking
 an assurance of voluntary compliance or a compliance agreement;
 seeking sanctions or remedies in an administrative or judicial
 forum;and the process of issuing an administrative order; and

     (b) an international dispute resolution proceeding to which
 the Party is party.  PART SEVEN FINAL PROVISIONS   Article 46:
 Annexes

    The Annexes to this Agreement constitute an integral part of
 the 'Agreement.   Article 47: Entry into Force

 This Agreement shall enter into force on January 1, 1994,
 immediately after entry into force of the NAFTA, on an exchange
 of written notifications certifying the completion of necessary
 legal procedures.   Article 48: Amendments

    1. The Parties may agree on any modification of or addition to
 this Agreement.

    2. When so agreed, and approved in accordance with the
 applicable legal procedures of each Party. a modification or
 addition shall constitute an integral part of this Agreement.
 Article 49: Accession

    Any country or group of countries may accede to this Agreement
 subject to such terms and conditions as may be agreed between
 such country or countries andthe Council and following approval
 in accordance with the applicable legal procedures of each
 country.   Article 50: Withdrawal A Party may withdraw from this
 Agreement six months after it provides writtennotice of
 withdrawal to the other Parties. If a Party withdraws, the
 Agreement shall remain in force for he remaining Parties.
 Article 51: Authentic Texts

    The English, French, and Spanish texts of this Agreement are
 equally authentic.

    IN WITNESS WHEREOF, the undersigned, being duly authorized by
 the respective Governments. have signed this Agreement.   ANNEX
 34 MONETARY ENFORCEMENT ASSESSMENTS

    1. For the first year after the date of entry into force of
 this Agreement, any monetary enforcement assessment shall be no
 greater than 20 million dollars (U.S.) or its equivalent in the
 currency of the Party complained against. Thereafter, any
 monetary enforcement assessment shall be no greater that .007
 percent of total trade in goods between the Parties during the
 most recent year for which data are available. 2. In determining
 the amount of the assessment, the panel shall take into account:

     (a) she pervasiveness and duration of the Party's persistent
 pattern of failureto effectively enforce its environmental law;

     (b) the level of enforcement that could reasonably be
 expected of a Party givenits resource constraints;

     (c) the reasons, if any, provided by the Party for not fully
 implementing an action plan;

     (d) efforts made by the Party to begin remedying the pattern
 of non-enforcementafter the final report of the panel; and

     (e) any other relevant factors.

    3. All monetary enforcement assessments shall be paid n the
 currency of the Party complained against into a fund established
 in the name of the Commission by the Council and shall be
 expended at the direction of the Council to improve or enhance
 the environment or environmental law enforcement in the Party
 complained against, consistent with its law.   ANNEX 36A CANADIAN
 DOMESTIC ENFORCEMENT AND COLLECTION

    l. For the purposes of this Annex, panel determination means:

     (a) a determination by a panel under Article 34(4)(b) or 5(b)
 that provides that Canada shall pay a monetary enforcement
 assessment; and

     (b) a determination by a panel under Article 34(5)(b) that
 provides that Canadashall fully implement an action plan where
 the panel:

      (i) has previously established an action plan under Article
 34(4)(a)(ii) or imposed a monetary enforcement assessment under
 Article 34(4)(b); or

      (ii) has subsequently determined under Article 35 that
 Canada is not fully implementing an action plan.

    2. Canada shall adopt and maintain procedures that provide
 that:

     (a) subject to paragraph (b), the Commission, at the request
 of a complaining Party, may in its own name file in a court of
 competent jurisdiction a certifiedcopy of a panel determination;

     (b) the Commission may file in court a panel determination
 that is a panel determination described in paragraph 1(a) only if
 Canada has failed to comply with the determination within 180
 days of when the determination was made;

     (c) when filed, the panel determination, for purposes of
 enforcement, shall become an order of the court:

     (d) the Commission may take proceedings for enforcement of a
 panel determination that is made an order of the court, in that
 court, against the person against whom the panel determination is
 addressed in accordance with paragraph 6 of Annex 41;

     (e) proceedings to enforce a panel determination that has
 been made an order ofthe court shall be conducted by way of
 summary proceedings;

     (f) in proceedings to enforce a panel determination that is a
 panel determination described in paragraph 1(b) and that has been
 made an order of thecourt, the court shall promptly refer any
 question of fact or any question of interpretation of the panel
 determination to the panel that made the panel determination, and
 the decision of the panel shall be binding on the court;

     (g) a panel determination that has been made an order of the
 court shall not besubject to domestic review or appeal; and

     (h) an order made by the court in proceedings to enforce a
 panel determination that has been made an order of the court
 shall not be subject to review or appeal.

    3. Where Canada is the Party complained against, the
 procedures adopted and maintained by Canada under this Annex
 shall apply and the procedures set out in Article 36 shall not
 apply.

    4. Any change by Canada to the procedures adopted and
 maintained by Canada under this Annex that have the effect of
 undermining the provisions of this Annex shall be considered a
 breach of this Agreement.   ANNEX 36B SUSPENSION OF BENEFITS

 1. Where a complaining Party suspends NAFTA tariff benefits in
 accordance with this Agreement the Party may increase the rates
 of duty on originating goods of the Party complained against to
 levels not to exceed the lesser of:

     (a) the rate that was applicable to those goods immediately
 prior to the date of entry into force of the NAFTA, and

     (b) the Most-Favored-Nation rate applicable to those goods on
 the date the Party suspends such benefits, and such increase may
 be applied only for such time as is necessary to collect, through
 such increase, the monetary enforcementassessment.

    2. In considering what tariff or other benefits to suspend
 pursuant to Article 36(1) or (2):

     (a) a complaining Party shall first seek to suspend benefits
 in the same sectoror sectors as that in respect of which there
 has been a persistent pattern of failure by the Party complained
 against to effectively enforce its environmentallaw; and

     (b) a complaining Party that considers it is not practicable
 or effective to suspend benefits in the same sector or sectors
 may suspend benefits in other sectors.   ANNEX 41 EXTENT OF
 OBLIGATIONS

    1. On the date of signature of this Agreement, or of the
 exchange of written notifications under Article 47, Canada shall
 set out in a declaration a list of any provinces for which Canada
 is to be bound in respect of matters within theirjurisdiction.
 The declaration shall be effective on delivery to the other
 Parties, and shall carry no implication as to the internal
 distribution of powers within Canada. Canada shall notify the
 other Parties six months in advance of any modification of its
 declaration.

    2. When considering whether to instruct the Secretariat to
 prepare a factual record pursuant to Article 15, the Council
 shall take into account whether the submission was made by a non-
 governmental organization or enterprise incorporated or otherwise
 organized under the laws of a province listed in the declaration
 made under paragraph 1.

    3. Canada may not request consultations under Article 22 or a
 Council meetingunder Article 23 or request the establishment of a
 panel or join as a complaining Party under Article 24 against
 another Party at the instance, or primarily for the benefit, of
 any provincial government not listed in the declaration made
 under paragraph 1.

    4. Canada may not request a Council meeting under Article 23,
 or request the establishment of a panel or join as a complaining
 Party under Article 24 concerning whether there has been a
 persistent pattern of failure by another Party to effectively
 enforce its environmental law, unless Canada states in writing
 that the matter would be under federal jurisdiction if it were to
 arise within the territory of Canada, or:

     (a) Canada states in writing that the matter would be under
 provincial jurisdiction if it were to arise within the territory
 of Canada, and

     (b) the provinces listed in the declaration account for at
 least 55 percent of Canada's Gross Domestic Product (GDP) for the
 most recent year in which data areavailable, and

     (c) where the matter concerns a specific industry or sector,
 at least 55 percent of total Canadian production in that industry
 or sector is accounted forby the provinces listed in the
 declaration for the most recent year in which data are available.

    5. No other Party may request a Council meeting under Article
 23 or request the establishment of a panel or join as a
 complaining Party under Article 24 concerning whether
 establishment of a panel or join as a complaining Party
 underArticle 24 concerning whether there has been a persistent
 failure to effectivelyenforce an environmental law of a province
 unless that province is included in the declaration made under
 paragraph l and the requirements of subparagraphs 4(b) and (c)
 have been met.

    6. Canada shall, no later than the date on which an arbitral
 panel is convened pursuant to Article 24 respecting a matter
 within the scope of paragraph 5 of this Annex, notify in writing
 the complaining Parties and the Secretariat of whether any
 monetary enforcement assessment or action plan imposed by a panel
 under Article 34(4) or 34(5) against Canada shall be addressed to
 Her Majesty in right of Canada or Her Majesty in right of the
 province concerned.

    7. Canada shall use its best efforts to make this Agreement
 applicable to as many of its provinces as possible. 8. Two bears
 after the date of entry into force of this Agreement, the Council
 shall review the operation of this Annex and, in particular,
 shall consider whether the Parties should amend the thresholds
 established in paragraph 4.

    ANNEX 45 COUNTRY-SPECIFIC DEFINITIONS   For purposes of this
 Agreement:

    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

      (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 sub
 soil and their natural resources; and

     (c) with respect to the United States,

      (i) the customs territory of the United States, which
 includes the 50 states, the District of Columbia and Puerto Rico,

      (ii) the foreign trade zones located in the United States
 and Puerto Rico, and

     (iii) any areas beyond the territorial seas of the United
 States within which,in accordance with international law and its
 domestic law, the United States mayexercise rights with respect
 to the seabed and subsoil and their natural resources.

 End of Text