Text of Labor Side Agreement to NAFTA (Sept 1993)
  _________________________________________________
 
             NORTH AMERICAN AGREEMENT ON LABOR COOPERATION
                    SUPPLEMENTAL AGREEMENT
          TO THE NAFTA RELEASED SEPTEMBER 14, 1993.
 
    PREAMBLE
 
    The Government of the United States of America, the Government
 of Canada and the Government of the United Mexican States:
 
    RECALLING their resolve in the North American Free Trade
 Agreement (NAFTA) to:
    -- create an expanded and secure market  for the goods and
 services produced in their territories,
    -- enhance the competitiveness of their firms in global markets,
    -- create new employment opportunities and improve working
conditions and living standards in their respective territories, and
    -- protect, enhance and enforce basic workers' rights;
 
    AFFIRMING their continuing respect for each Party's
 constitution and law;
 
    DESIRING to build on their respective international
 commitments and to strengthen their cooperation on labor matters;
 
    RECOGNIZING that their mutual prosperity depends on the
 promotion of competition based on innovation and rising levels of
 productivity and quality; SEEKING to complement the economic
 opportunities created by the NAFTA with the human resource
 development, labor-management cooperation and continuous learning
 that characterize high-productivity economies;
 
    ACKNOWLEDGING that protecting basic workers' rights will
 encourage firms to adopt high-productivity competitive
 strategies;
 
    RESOLVED to promote, in accordance with their respective laws,
 high-skill, high-productivity economic development in North
 America by:
    -- investing in continuous human resource
 development, including for entry intothe workforce and during
 periods of unemployment;
    -- promoting employment security and
 career opportunities for all workers through referral and other
 employment services;
    -- strengthening labor-management
 cooperation to promote greater dialogue between worker
 organizations and employers and to foster creativity and
 productivity in the workplace;
    -- promoting higher living
 standards as productivity increases;
    -- encouraging consultation
 and dialogue between labor, business and governmentboth in each
 country and in North America;
    -- fostering investment with due
 regard for the importance of labor laws and principles;
    -- encouraging employers and employees in each country to comply
 with labor laws and to work together in maintaining a
 progressive, fair, safe and healthy working 
 
    BUILDING on existing institutions and mechanisms in Canada,
 Mexico and the United States to achieve the preceding economic
 and social goals; and
 
    CONVINCED of the benefits to be gained from further
 cooperation between them on labor matters;
 
    HAVE AGREED as follows:
 
    PART ONE OBJECTIVES
 
    Article 1: Objectives
 
    The objectives of this Agreement are to:
     (a) improve working conditions and living standards in each
 Party's territory;
     (b) promote, to the maximum extent possible, the labor
 principles set out in Annex 1;
     (c) encourage cooperation to promote innovation and rising
 levels of productivity and quality;
     (d) encourage publication and exchange of information, data
 development and coordination, and joint studies to enhance
 mutually beneficial understanding of the laws and institutions
 governing labor in each Party's territory;
     (e) pursue cooperative labor-related activities on the basis
 of mutual benefit;
     (f) promote compliance with, and effective enforcement by
 each Party of, its labor law; and
     (g) foster transparency in the administration of labor law.
 
    PART TWO OBLIGATIONS
 
    Article 2: Levels of Protection
 
    Affirming full respect for each Party's constitution, and
 recognizing the right of each Party to establish its own domestic
 labor standards, and to adopt or modify accordingly its labor
 laws and regulations, each Party shall ensure that its labor laws
 and regulations provide for high labor standards, consistentwith
 high quality and productivity workplaces, and shall continue to
 strive to improve those standards in that light.
 
    Article 3: Government Enforcement Action
 
    1. Each Party shall promote compliance with and effectively
 enforce its laborlaw through appropriate government action,
 subject to Article 42, such as:
     (a) appointing and training inspectors;
     (b) monitoring compliance and investigating suspected
 violations, including through on-site inspections;
     (c) seeking assurances of voluntary compliance;
     (d) requiring record keeping and reporting;
     (e) encouraging the establishment of worker-management
 committees to address labor regulation of the workplace;
     (f) providing or encouraging mediation, conciliation and
 arbitration services; or
     (g) initiating, in a timely manner, proceedings to seek
 appropriate sanctions or remedies for violations of its labor
 law.
 
    2. Each Party shall ensure that its competent authorities give
 due consideration in accordance with its law to any request by an
 employer, employeeor their representatives, or other interested
 person, for an investigation of analleged violation of the
 Party's labor law.
 
    Article 4: Private Action 1. 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, judicial or labor tribuna1s for the enforcement
 of the Party's labor law.
 
    2. Each Party's law shall ensure that such persons may have
 recourse to, as appropriate, procedures by which rights arising
 under:
     (a) its labor law, including in respect of occupational
 safety and health, employment standards, industrial relations and
 migrant workers, and
     (b) collective agreements, can be enforced.
 
    Article 5: Procedural Guarantees
 
    1. Each Party shall ensure that its administrative, quasi-
 judicial, judicial and labor tribunal proceedings for the
 enforcement of its labor law are fair, equitable and transparent
 and, to this end, each Party shall provide that:
     (a) such proceedings comply with due process of law;
     (b) any hearings in such proceedings are open to the public,
 except where the administration of justice otherwise requires;
     (c) the parties to such proceedings are entitled to support
 or defend their respective positions and to present information
 or evidence; and
     (d) such proceedings are not unneccessarily complicated and
 do not entail unreasonable charges or time 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 proceedingshave 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.
 
    5. Each Party shall provide that the parties to
 administrative, quasi-judicial, judicial or labor tribunal
 proceedings may seek remedies to ensure the enforcement of their
 labor rights. Such remedies may include, as appropriate, orders,
 compliance agreements, fines, penalties, imprisonment,
 injunctions or emergency workplace closures.
 
    6. Each Party may, as appropriate, adopt or maintain labor
 defense offices torepresent or advise workers or their
 organizations.
 
    7. Nothing in this Article shall be construed to require a
 Party to establish, or to prevent a Party from establishing, a
 judicial system for the enforcement of its labor law distinct
 from its system for the enforcement of laws in general. 8. For
 greater certainty, decisions by each Party's administrative,
 quasi-judicial, judicial or labor tribunals, or pending
 decisions, as well as related proceedings shall not be subject to
 revision or reopened under the provisions of this Agreement.
 
    Article 6: 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. When so established by its law, each Party shall:
     (a) publish in advance any such measure that it proposes to
 adopt; and
     (b) provide interested persons a reasonable opportunity to
 comment on such proposed measures.
 
    Article 7: Public Information and Awareness 1. Each Party
 shall promote public awareness of its labor law, including by:
     (a) ensuring that public information is available related to
 its labor law and enforcement and compliance procedures; and
     (b) promoting public education regarding its labor law.
 
    PART THREE COMMISSION FOR LABOR COOPERATION
 
    Article 8: The Commission
 
    1. The Parties hereby establish the Commission for Labor
 Cooperation.
 
    2. The Commission shall comprise a ministerial Council and a
 secretariat. TheCommission shall be assisted by the National
 Administrative Office of each Party.   Section A: The Council
 
    Article 9: Council Structure and Procedures 1. The Council
 shall comprise labor ministers 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 may hold public sessions to report on
 appropriate matters.
 
    5. The Council may:
     (a) establish, and assign responsibilities to, committees,
 working groups or expert groups; and
     (b) seek the advice of independent experts. 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.
 
    Article 10: Council Functions
 
    The Council shall be the governing body of the Commission and
 shall:
     (a) oversee the implementation and develop recommendations on
 the further elaboration of this Agreement and, to this end, the
 Council shall, within four years after the date of entry into
 force of this Agreement, review its operationand effectiveness in
 the light of experience;
     (b) direct the work and activities of the Secretariat and of
 any committees or working groups convened by the Council;
     (c) establish priorities for cooperative action and, as
 appropriate, develop technical assistance programs on the matters
 set out in Article 11;
     (d) approve the annual plan of activities and budget of the
 Commission;
    (e) approve for publication, subject to such terms or
 conditions as it may impose, reports and studies prepared by the
 Secretariat, independent experts or working groups;
     (f) facilitate Party-to-Party consultations, including
 through the exchange of information;
     (g) address questions and differences that may arise between
 the Parties regarding the interpretation or application of this
 Agreement; and
     (h) promote the collection and publication of comparable data
 on enforcement, labor standards and labor market indicators.
 
    2. The Council may consider any other matter within the scope
 of this Agreement and take such other action in the exercise of
 its functions as the Parties may agree.
 
    Article 11: Cooperative Activities
 
    The Council shall promote cooperative activities between the
 Parties, as appropriate, regarding: (a) occupational safety and
 health;
     (b) child labor;
     (c) migrant workers of the Parties;
     (d) human resource development;
     (e) labor statistics;
     (f) work benefits;
     (g) social programs for workers and their families;
     (h) programs, methodologies and experiences regarding
 productivity improvement;   (i) labor-management relations and
 collective bargaining procedures;
     (j) employment standards and their implementation;
     (k) compensation for work-related injury or illness;
     (l) legislation relating to the formation and operation of
 unions, collective bargaining and the resolution of labor
 disputes, and its implementation;
     (m) the equality of women and men in the workplace;
     (n) forms of cooperation among workers, management and
 government;
     (o) the provision of technical assistance, at the request of
 a Party, for the development of its labor standards; and
     (p) such other matters as the Parties may agree.
 
    2. In carrying out the activities referred to in paragraph 1,
 the Parties may, commensurate with the availability of resources
 in each Party, cooperate through:
     (a) seminars, training sessions, working groups and
 conferences;
     (b) joint research projects, including sectoral studies;
     (c) technical assistance; and
     (d) such other means as the Parties may agree.
 
    3. The Parties shall carry out the cooperative activities
 referred to in paragraph 1 with due regard for the economic,
 social, cultural and legislative differences between them.
 
 
 Section B: The Secretariat Article 12: 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;
     (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 number of staff positions shall initially be set at 15
 and may be changed thereafter by the Council.
 
    4. 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.
 
    5. 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.
 
    6. The Secretariat shall safeguard:
     (a) from disclosure information it receives that could
 identify an organizationor person if the person or organization
 so requests or the Secretariat otherwiseconsiders it appropriate;
 and
     (b) from public disclosure any information it receives from
 any organization orperson where the information is designated by
 that organization or person as confidential or proprietary.
 
    7. The Secretariat shall act under the direction of the
 Council in accordancewith Article 10(1)(b).
 
    Article 13: Secretariat Functions
     1. The Secretariat shall assist the Council in exercising its
 functions and shall provide such other support as the Council may
 direct.
 
    2. The Executive Director shall submit for the approval of the
 Council the annual plan of activities and budget for the
 Commission, including provision forcontingencies and proposed
 cooperative activities.
 
    3. The Secretariat shall report to the Council annually on its
 activities andexpenditures.
 
    4. The Secretariat shall periodically publish a list of
 matters resolved under Part Four or referred to Evaluation
 Committees of Experts.
 
    Article 14: Secretariat Reports and Studies
 
    The Secretariat shall periodically prepare background reports
 setting out publicly available information supplied by each Party
 on:
     (a) labor law and administrative procedures;
     (b) trends and administrative strategies related to the
 implementation and enforcement of labor law;
     (c) labor market conditions such as employment rates, average
 wages and labor productivity; and (d) human resource development
 issues such as training and adjustment programs.    2. The
 Secretariat shall prepare a study on any matter as the Council
 may request. The Secretariat shall prepare any such study in
 accordance with terms of reference established by the Council,
 and may
     (a) consider any relevant information;
     (b) where it does not have specific expertise in the matter,
 engage one or moreindependent experts of recognieed experience;
 and
     (c) include proposals on the matter.
 
    3. The Secretariat shall submit a draft of any report or study
 that it prepares pursuant to paragraph 1 or 2 to the Council. If
 the Council considers that a report or study is materially
 inaccurate or otherwise deficient, the Council may remand it to
 the Secretariat for reconsideration or other disposition.
 
    4. Secretariat reports and studies shall be made public 45
 days after their approval by the Council, unless the Council
 otherwise decides.   Section C: National Administrative Offices
 
    Article 15: National Administrative Office Structure
 
    1. Each Party shall establish a National Administrative Office
 (NAO) at the federal government level and noti the Secretariat
 and the other Parties of its location.
 
    2. Each Party shall designate a Secretary for its NAO, who
 shall be responsible for its administration and management.
 
    3. Each Party shall be responsible for the operation and costs
 of its NAO. Article 16: NAO Functions 1. Each NAO shall serve as
 a point of contact with: (a) governmental agencies of that Party;
     (b) NAOs of the other Parties; and (c) the Secretariat.
 
    2. Each NAO shall promptly provide publicly available
 information requested by:
     (a) the Secretariat for reports under Article 14(1);
     (b) the Secretariat for studies under Article 14(2);
     (c) a NAO of another Party; and
     (d) an ECE.
 
    3. Each NAO shall provide for the submission and receipt, and
 periodically publish a list, of public communications on labor
 law matters arising in the territory of another Party. Each NAO
 shall review such matters, as appropriate, in accordance with
 domestic procedures.   Section D: National Committees
 
    Article 17: National Advisory Committee
 
    Each Party may convene a national advisory committee,
 comprising members of its public, including representatives of
 its labor and business organizations and other persons, to advise
 it on the implementation and further elaboration ofthis
 Agreement.
 
    Article 18: Govermnental Committee
 
    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 E: Official
 Languages
 
    Article 19: Official Languages The official languages of the
 Commission shall be English, French and Spanish. The Council
 shall establish rules and procedures regarding interpretation and
 translation. PART FOUR COOPERATIVE CONSULTATIONS AND EVALUATIONS
 
    Article 20: Cooperation
 
    The Parties shall at all times endeavor to agree on the
 interpretation and application of this Agreement, and shall make
 every attempt through cooperation and consultations to resolve
 any matter that might affect its operation.   Section A:
 Cooperative Consultations
 
    Article 21: Consultations between NAOs
 
    1. A NAO may request consultations, to be conducted in
 accordance with the procedures set out in paragraph 2, with
 another NAO in relation to the other Party's labor law, its
 administration, or labor market conditions in its territory. The
 requesting NAO shall notify the NAOs of the other Parties and
 theSecretariat of its request.
    2. In such consultations, the requested NAO shall promptly
 provide such publicly available data or information, including:
     (a) descriptions of its laws, regulations, procedures,
 policies or practices,
     (b) proposed changes to such procedures, policies or
 practices, and
     (c) such clarifications and explanations related to such
 matters, as may assistthe consulting NAOs to better understand
 and respond to the issues raised.
 
    3. Any other NAO shall be entitled to participate in the
 consultations on notice to the other NAOs and the Secretariat.
 
    Article 22: Ministerial Consultations
 
    1. Any Party may request in writing consultations with another
 Party at the ministerial level regarding any matter within the
 scope of this Agreement. The requesting Party shall provide
 specific and sufficient information to allow the requested Party
 to respond.
 
    2. The requesting Party shall promptly notify the other
 Parties of the request. A third Party that considers it has a
 substantial interest in the matter shall be entitled to
 participate in the consultations on notice to the other Parties.
 
    3. The consulting Parties shall make every attempt to resolve
 the matter through consultations under this Article, including
 through the exchange of sufficient publicly available information
 to enable a full examination of the matter.   Section B:
 Evaluations
 
    Article 23: Evaluation Committee of Experts
 
    1. If a matter has not been resolved after ministerial
 consultations pursuantto Article 22, any consulting Party may
 request in writing the establishment of an Evaluation Committee
 of Experts (BCE). The requesting Party shall deliver therequest
 to the other Parties and to the Secretariat. Subject to
 paragraphs 3 and4, the Council shall establish an ECE on delivery
 of the request.
 
    2. The ECE shall analyze, in the light of the objectives of
 this Agreement and in a non-adversarial manner, patterns of
 practice by each Party in the enforcement of its occupational
 safety and health or other technical labor standards as they
 apply to the particular matter considered by the Parties
 underArticle 22.
 
    3. No ECE may be convened if a Party obtains a ruling under
 Annex 23 that thematter:
     (a) is not trade-related; or
     (b) is not covered by mutually recognized labor laws.
 
    4. No ECE may be convened regarding any matter that was
 previously the subject of an ECE report in the absence of such
 new information as would warranta further report.
 
    Article 24: Rules of Procedure
 
    1. The Council shall establish rules of procedure for ECEs,
 which shall applyunless the Council otherwise decides. The rules
 of procedure shall provide that:
     (a) an ECE shall normally comprise three members;
     (b) the chair shall be selected by the Council from a roster
 of experts developed in consultation with the ILO pursuant to
 Article 45 and, where possible, other members shall be selected
 from a roster developed by the Parties;
     (c) ECE members shall
     (i) have expertise or experience in labor matters or other
 appropriate disciplines,
     (ii) be chosen strictly on the basis of objectivity,
 reliability and sound judgment,
     (iii) be independent of, and not be affiliated with or take
 instructions from,any Party or the Secretariat, and
     (iv) comply with a code of conduct to be established by the
 Council; (d) an ECE may invite written submissions from the
 Parties and the public; (e) an ECE may consider, in preparing its
 report, any information provided by (i) the Secretariat,
     (ii) the NAO of each Party,
     (iii) organizations, institutions and persons with relevant
 expertise, and
     (iv) the public; and (f) each Party shall have a reasonable
 opportunity to review and comment on information that the ECE
 receives and to make written submissions to the ECE.
 
    2. The secretariat and the NAOs shall provide appropriate
 administrative assistance to an ECE, in accordance with the rules
 of procedure established by the Council under paragraph 1.
 
    Article 25: Draft Evaluation Reports
    1. Within 120 days after it is established, or such other
 period as the Council may decide, the ECE shall present a draft
 report for consideration by the Council, which shall contain:
     (a) a comparative assessment of the matter under
 consideration;
     (b) its conclusions; and
     (c) where appropriate, practical recommendations that may
 assist the Parties inrespect of the matter.
 
    2. Each Party may submit written views to the ECE on its draft
 report. The ECE shall take such views into account in preparing
 its final report. Article 26: Final Evaluation Reports
 
    1. The ECE shall present a final report to the Council within
 60 days after presentation of the draft report, unless the
 Council otherwise decides.
 
    2. The final report shall be published within 30 days after
 its presentation to the Council, unless the Council otherwise
 decides. 3. The Parties shall provide to each other and the
 Secretariat written responses to the recommendations contained in
 the ECE report within 90 days of its publication.
 
    4. The final report and such written responses shall be tabled
 for consideration at the next regular session of the Council. The
 Council may keep the matter under review.
 
    PART FIVE RESOLUTION OF DISPUTES
 
    Article 27: Consultations
 
    1. Following presentation to the Council under Article 26(1)
 of an ECE final report that addresses the enforcement of a
 Party's occupational safety and health, child labor or minimum
 wage technical labor standards, 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 such standards in respect of the general
 subject matter addressed in thereport.
 
    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 28: Initiation of Procedures
 
    1. If the consulting Parties fail to resolve the matter
 pursuant to Article 27 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 writing a 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 29: Request for an Arbitral Panel
     1. If the matter has not been resolved within 69 days alter
 the Council has convened pursuant to Article 28, 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 occupational
 safety and health, child labor or minimum wage technical labor
 standards is:
     (a) trade-related; and
     (b) covered by mutually recognized labor laws.
 
    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 30: Roster
 
    1. The Council shall establish and maintain a roster of up to
 45 individuals who are wi1ing 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 labor law or its
 enforcement, or in the resolution of disputes arising under
 international agreements, or other relevantscientific, 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 or the Secretariat; and
     (d) comply with a code of conduct to be established by the
 Council.
 
    Article 31: Qualifications of Panelists
 
    1. All panelists shall meet the qualifications set out in
 Article 30.
 
    2. Individuals may not serve as panelists for a dispute where:
     (a) they have participated pursuant to Article 28(4) or
 participated as membersof an ECE that addressed the matter; or
     (b) they have, or a person or organization with which they
 are affiliated has, an interest in the matter, as set out in the
 code of conduct established under Article 30(2)(d).
 
    Article 32: 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 panelistshall be removed and a
 new panelist shall be selected in accordance with this Article.
 Article 33: 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 assoiated
 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
 occupational safety and health, child labor or minimum wage
 technical labor standards, and tomake findings, determinations
 and recommendations in accordance with Article 36(2)."
 
    Article 34: Third Party Participation
 
    A Party that is not a disputing Party, on delivery of a
 written notice to thedisputing Parties and 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 35: 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 36: Initial Report 1. Unless the disputing Parties
 otherwise agree, the panel shall base its report on the
 submissions and arguments of the disputing Parties and on any
 information before it pursuant to Article 35.
 
    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 occupational safety and health, child
 labor or minimum wage technical labor standards in a matter that
 is trade-related and covered by mutually recognized labor laws,
 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 37: 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 38: 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 occupational safety and
 health, child labor or minimum wage technical labor standards,
 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 39: 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 occupational safety and
 health, child labor or minimum wage technical labor standards,
 and:
     (a) the disputing Parties have not agreed on an action plan
 under Article 38 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 38,
     (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, any disputing Party may request that the panel be
 reconvened. The requesting Party shall deliver the request in
 writing to the other Parties and to the Secretariat. The Council
 shall reconvene the panel on delivery of the request tothe
 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 of
 the final report, or such other period as the disputing Parties
 may agree, shall be deemed to 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 38,
     (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 39, 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) the 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 39, within 60
 days after it has been reconvened or such other period as the
 disputing Prrties 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 40: Further
 Proceeding
 
    A complaining Party may, at any time beginning 180 days after
 a panel determination under Article 39(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 41: Suspension of Benefits
 
    1. Subject to Annex 41A, where a Party fails to pay a monetary
 enforcement assessment within 180 days after it is imposed by a
 panel: (a) under Article 39(4)(b), or
     (b) under Article 39(5)(b), except where benefits may be
 suspended under paragraph 2(a), any complaining Party or Parties
 may suspend, in accordance withAnnex 41B, the application to the
 Party complained against of NASA benefits in an amount no greater
 than that sufficient to collect the monetary enforcement
 assessment.
 
    2. Subject to Annex 41A, where a panel has made a
 determination under Article39(5)(b) and the panel:
     (a) has previously imposed a monetary enforcement assessment
 under Article 39(4)(b) or established an action plan under
 Article 39(4)(a)(ii), or
     (b) has subsequently determined under Article 40 that a Party
 is not fully implementing an action plan, the complaining Party
 or Parties may, in accordancewith Annex 41B, 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 39(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 Party 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 42: Enforcement Principle
 
    Nothing in this Agreement shall be construed to empower a
 Party's authoritiesto undertake labor law enforcement activities
 in the territory of another Party.  Article 43: Private Rights
 
    No Party may provide for a right of action under its domestic
 law against anyother Party on the ground that another Party has
 acted in a manner inconsistent with this Agreement.
 
    Article 44: Protection of Information
 
    1. If a Patty provides confidential or proprietary information
 to another Party, including its NAO, the Council or the
 Secretariat, the recipient shall treat the information on the
 same basis as the Party providing the information. 2.
 Confidential or proprietary information provided by a Party to an
 BCE or apanel under this Agreement shall be treated in accordance
 with the rules of procedure established under Articles 24 and 33.
 
    Article 45: Cooperation with the ILO
 
    The Parties shall seek to establish cooperative arrangements
 with the ILO to enable the Council and Parties to draw on the
 expertise and experience of the ILO for purposes of implementing
 Article 24(1).
 
    Article 46: Extent of Obligations
 
    Annex 46 applies to the Parties specified in that Annex.
 
    Article 47: Funding of the Commission
 
    Each Patty 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 Patty in respect of an annual budget.
 
    Article 48: Privileges and Immunities
 
    The Executive Director and staff of the Secretariat shall
 enjoy in the territory of each of the Parties such privileges and
 immunities as are necessaryfor the exercise of their functions.
 
    Article 49: Definitions
 
    1. For purposes of this Agreement:
 
    A Party had not failed to "effectively enforce its
 occupational safety and health, child labor or minimum wage
 technical labor standards" or comply with Article 3(1) in a
 particular case where the action or inaction by agencies or
 officials of that Patty:
     (a) reflects a reasonable exercise of the agency's or the
 official's discretionwith respect to investigatory,
 prosecutorial, regulatory or compliance matters; or
     (b) results from bonaflde decisions to allocate resources to
 enforcement in respect of other labor matters determined to have
 higher priorities;"labor law" means laws and regulations, or
 provisions thereof, that are directly related to:
     (a) freedom of association and protection of the right to
 organize;
     (b) the right to bargain collectively;
     (c) the right to strike;
     (d) prohibition of forced labor;
     (e) labor protections for children and young persons;
     (f) minimum employment standards, such as minimum wages and
 overtime pay, covering wage earners, including those not covered
 by collective agreements;
     (g) elimination of employment discrimination on the basis of
 grounds such as race, religion, age, sex, or other grounds as
 determined by each Party's domestic laws;
     (h) equal pay for men and women; (i) prevention of
 occupational injuries and illnesses;
     (j) compensation in cases of occupational injuries and
 illnesses;
     (k) protection of migrant workers;"mutually recognized labor
 laws" means laws of both a requesting Party and the Party whose
 laws were the subject of ministerial consultations under Article
 22 that address the same general subjectmatter in a manner that
 provides enforceable rights, protections or standards;"pattern of
 practice" means a course of action or inaction begining after the
 date of entry into force of the Agreement, and does not include a
 single instance or case;"persistent pattern" means a sustained or
 recurring pattern of practice;"province" means a province of
 Canada, and includes the Yukon Territory and the Northwest
 Territories and their successors;"publicly available information"
 means information to which the public has a legal right under the
 statutory laws of the Party;"technical labor standards" means
 laws andregulations, or specific provisions thereof, that are
 directly related to subparagraphs (d) through (k) of the
 definition of labor law. For greater certainty and consistent
 with the provisions of this Agreement, the setting of all
 standards and levels in respect of minimum wages and labor
 protections for children and young persons by each Party shall
 not be subject to obligations under this Agreement. Each Party's
 obligations under this Agreement pertain to enforcing the level
 of the general minimum wage and child labor age limits
 established by that Party;"territory" means for a Party the
 territory of that Party as set out in Annex 49; and"trade-
 related" means related 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 whose labor
 law was the subjectof ministerial consultations under Article 22,
 with goods or services produced or provided by persons of another
 Party.
 
 
  PART SEVEN FINAL PROVISIONS
 
    Article 50: Annexes
 
    The Annexes to this Agreement constitute an integral part of
 the Agreement. Article 51: 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
 52: 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 53: 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 54: 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 the remaining Parties.
 
    Article 55: 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 1 LABOR PRINCIPLES
 
    The following are guiding principles that the Parties are
 committed to promote, subject to each Party's domestic law, but
 do not establish common minimum standards for their domestic law.
 They indicate broad areas of concern where the Parties have
 developed, each in its own way, laws, regulations, procedures and
 practices that protect the rights and interests of their
 respective workforces.   1. Freedom of association and protection
 of the right to organize The right of workers exercised freely
 and without impediment to establish andjoin organizations of
 their own choosing to further and defend their interests.   2.
 The right to bargain collectively
 
    The protection of the right of organized workers to freely
 engage in collective bargaining on matters concerning the terms
 and conditions of employment.   3. The right to strike
 
    The protection of the right of workers to strike in order to
 defend their collective interests.   4. Prohibition of forced
 labor
 
    The prohibition and suppression of all forms of forced or
 compulsory labor, except for types of compulsory work generally
 considered acceptable by the Parties, such as compulsory military
 service, certain civic obligations, prison labor not for private
 purposes and work exacted in cases of emergency.
 
    5. Labor protections for children and young persons
 
    The establishment of restrictions on the employment of
 children and young persons that may vary taking into
 consideration relevant factors likely to jeopardize the full
 physical, mental and moral development of young persons,
 including schooling and safety requirements.   6. Minimum
 employment standards
 
    The establishment of minimum employment standards, such as
 minimum wages and overtime pay, for wage earners, including those
 not covered by collective agreements.   7. Elimination of
 employment discrimination
 
    Elimination of employment discrimination on such grounds as
 race, religion, age, sex or other grounds, subject to certain
 reasonable exceptions, such as, where applicable, bona fide
 occupational requirements or qualifications and established
 practices or rules governing retirement ages, and special
 measures of protection or assistance for particular groups
 designed to take into account the effects of discrimination. 8.
 Equal pay for women and men
 
    Equal wages for women and men by applying the principle of
 equal pay for equal work in the same establishment.   9.
 Prevention of occupational injuries and illnesses
 
    Prescribing and implementing standards to minimize the causes
 of occupationalinjuries and lllnesses.   10. Compensation in
 cases of occupational injuries and illnesses
 
    The establishment of a system providing benefits and
 compensation to workers or their dependents in cases of
 occupational injuries, accidents or fatalities arising out of,
 linked with or occurring in the course of employment.   11.
 Protection of migrant workers
 
    Providing migrant workers in a Party's territory with the same
 legal protection as the Party's nationals in respect of working
 conditions.
 
 ANNEX 23 INTERPRETIVE RULING
 
    1. Where a Party has requested the Council to convene an BCE,
 the Council shall, on the written request of any other Party,
 select an independent expert to make a ruling concerning whether
 the matter is:
     (a) trade-related; or (b) covered by mutually recognized
 labor laws.
 
    2. The Council shall establish rules of procedure for the
 selection of the expert and for submissions by the Parties.
 Unless the Council decides otherwise,the expert shall present a
 ruling within 15 days after the expert is selected.
 
 ANNEX 39 MONETARY ENFORCEMENT ASSESSMENTS 1. For the first year
 after the date of entry into force of this Agreement, any
 monetary enforcement assessment shallbe no greater than 20
 million dollars (U.S.) or its equivalent in the currency of the
 Party complained against. Thereafter, any monetary enforcement
 assessmentshall be no greater than .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) the pervasiveness and duration of the Party's persistent
 pattern of failureto effectively enforce its occupational safety
 and health, child labor or minimum wage technical labor
 standards;
     (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 nonenforcement after the final report of the panel; and
     (e) any other relevant lactors.
 
    3. All monetary enforcement assessments shall be paid in 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 labor law enforcement in the Party complained against,
 consistent with its law.
 
 
  ANNEX 41A CANADIAN DOMESTIC ENFORCEMENT AND COLLECTION
 
    1. For the purposes of this Annex, "panel determination"
 means:
     (a) a determination by a panel under Article 39(4)(b) or 5(b)
 that provides that Canada shall pay a monetary enforcement
 assessment; and
     (b) a determination by a panel under Article 39(5)(b) that
 provides that Canadashall fully implement an action plan where
 the panel:
     (i) has previously established an action plan under Article
 39(4)(a)(ii) or imposed a monetary enforcement assessment under
 Article 39(4)(b); or
     (ii) has subsequently determined under Article 40 that Canada
 is not fully implementing an action plan.
 
    2. Canada shall adopt and maintain procedures that provide
 that:
 
    (a) subject to subparagraph (b), the Commission, at the
 request of a complaining Party, may in its own name file in a
 court of competent jurisdictiona certified copy 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 46;
     (e) procedings to enforce a panel determination that has been
 made an order of the court shall be conducted by way of summary
 procedings;
     (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 the court, 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 41 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 41B 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 notto 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 41(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 occupational safety and
 health, child labor or minimum wage technical labor standards;
 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 46 EXTENT OF OBLIGATIONS 1. On the date of signature of
 this Agreement, orof the exchange of written notifications under
 Article 51, Canada shall set out in a declaration a list of any
 provinces for which Canada is to be bound in respect of matters
 within their jurisdiction. The declaration shall be effectiveon
 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 to its declaration.
 
    2. Unless a communication relates to a matter that would be
 under federal jurisdiction if it were to arise within the
 territory of Canada, the Canadian NAO shall identify the province
 of residence or establishment of the author of any communication
 regarding the labor law of another Party that it forwards to the
 NAO of another Party. That NAO may choose not to respond if that
 province isnot included in the declaration made under paragraph
 1.
 
    3. Canada may not request consultations under Article 22, the
 establishment of an Evaluation Committee of Experts under Article
 23, consultations under Article 27, the initiation of procedures
 under Article 28 or the establishment of a panel or join as a
 complaining Party under Article 29 at the instance, or primarily
 for the benefit, of any government of a province not included in
 the declaration made under paragraph 1.
 
    4. Canada may not request consultations under Article 22, the
 establishment of an Evaluation Committee of Experts under Article
 23, consultations under Article 27, the initiation of procedures
 under Article 28 or the establishment of a panel or join as a
 complaining Party under Article 29, unless Canada statesin
 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 federal government and the provinces included in the
 declaration account for at least 35 percent of Canada's labor
 force for the most recent yearin which data are available, and
 (c) where the matter concerns a specific industry or sector, at
 least 55 percent of the workers concerned are employed in
 provinces included in Canada's declaration under paragaph 1. 5.
 No other Party may request consultations under Article 22, the
 establishment of an Evaluation Committee of Experts under Article
 23, consultations under Article 27, the initiation of procedures
 under Article 28 orthe establishment of a panel or join as a
 complaining Party under Article 29, concerning a matter related
 to a labor law of a province unless that province isincluded in
 the declaration made under paragraph 1 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 29 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 39(4) or (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 the Agreement
 applicable to as many of its provinces as possible.
 
    8. Two years 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 49 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 Pacffic 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 repectto the seabed and subsoil
 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 may exercise rights with respect
 to the seabed and subsoil and their natural resources.
  UNDERSTANDING BETWEEN THE PARTIES TO THE NORTH AMERICAN FREE
 TRADE AGREEMENT CONCERNING CHAPTER EIGHT--EMERGENCY ACTION
 
    Article 1: Objective
 
    The objectives of this Understanding are to establish
 additional procedures to facilitate the effective use of Chapter
 Eight of the North American Free Trade Agreement (NAFTA).
 
    Article 2: Working Group on Emergency Action
 
    l. The Parties hereby establish a Working Group on Emergency
 Action comprising one representative of each Party to the NAFTA.
 The Working Group shall be deemed to be a working group
 established under Article 2001(2)(d) of the NAFTA.
 
    2. The Working Group shall report to the Free Trade Commission
 established under the NAFTA, and shall be subject to the
 supervision of the Commission.
 
    3. The NAFTA Secretariat shall provide technical support to
 the Working Group.
 
    4. The Working Group shall meet at least annually, unless the
 Parties otherwise agree, and on reguest of any Party.
 
    5. The Working Group may call on the assistance of such
 experts and advisers as it deems appropriate.
 
    6. All decisions of the Working Group shall be taken by
 consensus, except as otherwise agreed or provided for in this
 Understanding.
 
    Article 3: Functions of the Working Group
 
    1. The Working Group shall consider any issue related to
 recourse to Chapter Eight of the NAFTA and may make
 recommendations to the Commission.
 
    2. The Working Group shall consider any recourse to Article
 XIX of the  by any Party
 to the NAFTA, and, at the request of any Party, may serve as a
 forum for consultations before or during any such use of Article
 XIX.
 
    3. The Parties may consult in the Working Group on the request
 of a Party where a Party considers that:
     (a) in accordance with Article 801 or 802, goods originating
 in the territory of another Party are being imported in such
 increased quantities as to constitute a substantial cause of, or
 contribute importantly to, serious injury,or threat thereof, to
 its domestic industry, as evidenced by the factors set outin
 Annex 803.3(9) of the NAFTA, including trade, productivity, and
 employment; or
     (b) another Party is contemplating having recourse to Chapter
 Eight. Any consultations under this paragraph shall be without
 prejudice as to whether any subsequent emergency action
 proceeding is consistent with the NAFTA.
 
    4. The Parties may agree that consultations under paragraph C
 shall constitute consultations under Article 801(2) or 802(5) of
 the NAFTA. 5. Subject to the rights and obligations of the
 Parties under the NAFTA, the Working Group shall serve as a forum
 for examining, at the request of any Party and with the agreement
 of two-thirds of the Parties, trade, productivity, employment and
 other economic factors with respect to any good, provided that
 such discussions shall not serve as a justification for
 restricting or prohibiting trade in any manner inconsistent with
 Chapter Eight.
 
    6. The Working Group may make recommendations to the
 Commission for any improvements to Chapter Eight of the NAFTA
 that the Working Group deems appropriate, consistent with the
 objectives of the NAFTA and of this Understanding.
 
    Article 4: Definitions
 
    Unless otherwise specified, all terms of this Understanding
 shall have the meaning assigned to them in the NAFTA.
 
    End of Text