TREATIES AND OTHER INTERNATIONAL ACTS SERIES 03-725 

________________________________________________________________________ 

TRADE 

 Agreement between the 

UNITED STATES OF AMERICA 

and MEXICO 

Effected by Exchange of Letters at 

Mexico City and Washington July 24 and 25, 2003 
 NOTE BY THE DEPARTMENT OF STATE 

 Pursuant to Public Law 89—497, approved July 8, 1966 

(80 Stat. 271; 1 U.S.C. 113)—

“. . .the Treaties and Other International Acts Series issued 

under the authority of the Secretary of State shall be competent 

 evidence . . . of the treaties, international agreements other than 

treaties, and proclamations by the President of such treaties and 

international agreements other than treaties, as the case may be, 

therein contained, in all the courts of law and equity and of maritime 

jurisdiction, and in all the tribunals and public offices of the 

United States, and of the several States, without any further proof 

or authentication thereof.” 
MEXICO 

Trade 

Agreement effected by exchange of letters at 

 Mexico City and Washington July 24 and 25, 2003; 

 Entered into force July 25, 2003. 
Mexico City, July 24 2003

THE HONORABLE ROBERT B. ZOELLICK

United States Trade Representative

600 17th Street, N.W.

Washington, DC 20508

The Mexican Ministry of Economy has determined that, as a result of the elimination of duties

pursuant to the North American Free Trade Agreement ("NAFTA"), chicken leg quarters, or parts

thereof, originating in the United States of America ("United States") classified under subheadings

0207.13.03 (chicken legs, thighs, or legs attached to thighs, fresh or chilled) and 0207.14.04

(chicken legs, thighs, or legs attached to thighs, frozen) of the Mexican tariff schedule ("U.S. chicken

leg quarters") are being imported into the United Mexican States ("Mexico") in such increased

quantities, in absolute terms, and under such conditions that those imports alone constitute a

substantial cause of threat of serious injury to the Mexican poultry industry. In light of this

determination, Mexico has determined to apply a safeguard measure on imports of such U.S.

chicken leg quarters.

Safeguard Measure

1. Mexico will apply the safeguard measure on imports of U.S. chicken leg quarters beginning

July 22, 2003. The safeguard measure, which will expire no later than December 31, 2007, will take

the form of a tariff-rate quota, administered through the use of import licenses allocated in the

same manner as described in Acuerdo por el que se da a conocer el cupo para importar en el afio

2003, dentro del arancel-cupo establecido piernas, muslos o piernas unidas at muslo, de polo,

originarias de los Estados Unidos de Arndt-Ica, published in the Diario Oficial de la FederaciOn Diario

Oficial') on January 31, 2003, with the following terms:

(a) For the period July 22, 2003, to December 31, 2003, Mexico shall issue import

licenses no later than nine business days after the date of this letter providing duty

free access for at least 46,950 metric tons of U.S. chicken leg quarters to be

imported into the northern border zone (Franja Fronteriza Norte y Region

Fronteriza), as defined under the Decreto por e/ que se establece el impuesto

general de importaciOn para la Region Fronteriza y la Franja Fronteriza Norte

published in the Diario Oficial on December 31, 2002. Mexico shall not impose or

apply any licensing requirements or quantitative or other restriction on any imports

of U.S. chicken leg quarters in excess of the duty free quantity established in this

subparagraph; Mexico may apply a maximum tariff of 98.8 percent ad valorem on

such imports.

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(b) For calendar year 2004, Mexico shall issue import licenses no later than January 1,

2004, providing duty free access for at least 101,000 metric tons of U.S. chicken leg

quarters to be imported into the northern border zone. Mexico will not impose or

apply any licensing requirements or quantitative or other restriction on any imports

of U.S. chicken leg quarters in excess of the duty free quantity established in this

subparagraph; Mexico may apply a maximum tariff of 79.0 percent ad valorem on

such imports.

(c) For calendar year 2005, Mexico shall issue import licenses no later than January 1,

2005, providing duty free access for at least 102,010 metric tons of U.S. chicken leg

quarters to be imported into the northern border zone. Mexico will not impose or

apply any licensing requirements or quantitative or other restriction on any imports

of U.S. chicken leg quarters in excess of the duty free quantity established in this

subparagraph; Mexico may apply a maximum tariff of 59.3 percent ad valorem on

such imports.

(d) For calendar year 2006, Mexico shall issue import licenses no later than January 1,

2006, providing duty free access for at least 103,030 metric tons of U.S. chicken leg

quarters to be imported into the northern border zone. Mexico will not impose or

apply any licensing requirements or quantitative or other restriction on any imports

of U.S. chicken leg quarters in excess of the duty free quantity established in this

subparagraph; Mexico may apply a maximum tariff of 39.5 percent ad valorem on

such imports.

(e) For calendar year 2007, Mexico shall issue import licenses no later than January 1,

2007, providing duty free access for at least 104,060 metric tons of U.S. chicken leg

quarters to be imported into the northern border zone. Mexico will not impose or

apply any licensing requirements or quantitative or other restriction on any imports

of U.S. chicken leg quarters in excess of the duty free quantity established in this

subparagraph; Mexico may apply a maximum tariff of 19.8 percent ad valorem on

such imports.

2. Mexico shall allow any imports of U.S. chicken leg quarters in excess of the duty free

quantities established in the preceding subparagraphs to be sold throughout Mexico.

3. Effective no later than January 1, 2008, Mexico shall provide full duty free access and

eliminate import license requirements for U.S. chicken leg quarters.

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Compensation

4. Pursuant to Article 801 of the NAFTA, we would like to confirm the following understanding

reached between the Government of Mexico and the Government of the United States concerning

Mexico's imposition of the safeguard measure.

5. Beginning July 22, 2003, Mexico shall provide to the United States mutually agreed trade

liberalizing compensation as set forth below:

(a) Except as provided in subparagraph (b) below, Mexico shall not impose any import

restriction on U.S. poultry meat, poultry products (except eggs and egg products), or

live birds, including, but not limited to, quantitative import restrictions or technical

barriers to trade, bilateral or global safeguard measures, antidumping duties, or

countervailing duties.

(b) Mexico shall notify and consult with the Office of the United States Trade

Representative C'USTR") and the United States Department of Agriculture ("USDA")

at least 60 days before imposing any food safety or sanitary measure on U.S. poultry

meat, poultry products, or live birds, except that Mexico may notify and consult with

USTR and USDA within seven calendar days after imposing a measure necessary to

address a sanitary emergency. To the extent possible, consultations under this

paragraph shall take place under the auspices of the U.S.-Mexico Consultative

Committee on Agriculture. Mexico shall ensure that any such measure that it

imposes is consistent with Chapter Seven of the NAFTA and the World Trade

Organization ("WTO") Agreement on the Application of Sanitary and Phytosanitary

Measures ("SPS Agreement").

(c) Mexico confirms that with the elimination of NOM 16-Z00-2002, effective May 23,

2003, imports of U.S. poultry meat, poultry products, and live birds into Mexico will

not be subject to any Hemagglutination Inhibition testing requirement. Further,

through publication of a notice in the Diario Oficial, Mexico shall remove its

prohibition due to Low Pathenogenic Avian Influenza C'LPAI") on imports of U.S.

poultry meat, poultry products, and live birds originating in Maine, North Carolina,

Pennsylvania, Texas, Virginia, and West Virginia. Mexico shall expeditiously review

and publish a decision in the Diario Oficia/ regarding the status of LPAI in California

and Connecticut after it receives a response to its LPAI questionnaire from USDA's

Animal and Plant Health Inspection Service ("APHIS"). APHIS shall notify Mexico of

any official U.S. regulatory action to restrict the spread of LPAI.

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NANDO CANALES CLARIOND

Secretary of the Economy

4

(d) Through publication of a notice in the Diario Oficial, Mexico shall eliminate all testing

requirements on imports of U.S. poultry meat, poultry products, and live birds for

Exotic Newcastle Disease ("END') and shall remove its prohibition on imports of U.S.

poultry meat, poultry products, and live birds originating in Oregon, Idaho, Utah,

Colorado, and New Mexico. Upon review of documentation from APHIS that U.S.

Federal quarantines for END applicable to the quarantined areas of Arizona,

California, Nevada and Texas were removed no later than July 1, 2003, Mexico,

through publication of a notice in the Diario Oficial, shall remove its END prohibition

on imports of poultry meat, poultry products, and live birds originating in the

quarantined areas of those states. APHIS shall notify Mexico of the status of any

other END quarantine in the United States.

(e) Mexico shall work with the United States toward establishing a framework for

recognizing the equivalence of their respective sanitary measures in accordance with

Article 714 of the NAFTA and Article 4 of the SPS Agreement.

(f) Mexico shall notify and consult with USTR before imposing any other bilateral or

global safeguard measure on a U.S. agricultural product.

Consent

6. Mexico acknowledges that Article 801(2)(c)(ii) of the NAFTA provides that no bilateral

safeguard measure may be maintained beyond the expiration of the transition period, except with

the consent of the Party against whose good the measure is taken. The transition period for U.S.

chicken leg quarters ends on December 31, 2003. The United States consents to the application of

the safeguard measure on U.S. chicken leg quarters beyond the expiration of the transition period

on the basis of the terms specified in paragraphs one through five of this letter. Mexico

acknowledges that the United States may withdraw its consent if the United States determines that

Mexico is not fulfilling any of these terms. The United States shall notify Mexico at least ten days

before the United States withdraws its consent.

We propose that this letter and your letter of confirmation in reply shall constitute an agreement

between our two governments.

Sincerely,

JAVIER BERNARD AGA ARROYO

Secretary culture, Livestock,

Rural D- pment, and Fisheries
EXECUTIVE OFFICE OF THE PRESIDENT

THE UNITED STATES TRADE REPRESENTATIVE

WAS H I N GTO N, D.C. 20508

JUL 2 5 2003

His Excellency Fernando Canales Clariond

Secretary of the Economy

Alfonso Reyes 30

Col. Condesa

06140 Mexico, D.F.

His Excellency Javier Bernardo Usabiaga Arroyo

Secretary of Agriculture, Livestock,

Rural Development and Fisheries

Avenida Municipio Libre 377

Col. Santa Cruz Atoyac

03310 Mexico, D.F.

Dear Secretary Canales and Secretary Usabiaga:

I am pleased to refer to your letter of July 24, 2003, which reads as follows:

"The Mexican Ministry of Economy has determined that, as a result of the elimination of

duties pursuant to the North American Free Trade Agreement ("NAFTA"), chicken leg

quarters, or parts thereof, originating in the United States of America ("United States")

classified under subheadings 0207.13.03 (chicken legs, thighs, or legs attached to thighs,

fresh or chilled) and 0207.14.04 (chicken legs, thighs, or legs attached to thighs, frozen)

of the Mexican tariff schedule ("U.S. chicken leg quarters") are being imported into the

United Mexican States ("Mexico") in such increased quantities, in absolute terms, and

under such conditions that those imports alone constitute a substantial cause of threat of

serious injury to the Mexican poultry industry. In light of this determination, Mexico has

determined to apply a safeguard measure on imports of such U.S. chicken leg quarters.

Safeguard Measure

1. Mexico will apply the safeguard measure on imports of U.S. chicken leg quarters

beginning July 22, 2003. The safeguard measure, which will expire no later than

December 31, 2007, will take the form of a tariff-rate quota, administered through the use

of import licenses allocated in the same manner as described in Acuerdo por el que se da

a conocer el cupo para importar en el alio 2003, dentro del arancel-cupo establecido

piernas, muslos o piernas unidas al muslo, de polio, originarias de los Estados Unidos de

America, published in the Diario Oficial de la FederaciOn ("Diario Oficial") on January

31, 2003, with the following terms.
(a) For the period July 22, 2003, to December 31, 2003, Mexico shall issue

import licenses no later than nine business days after the date of this letter

providing duty free access for at least 46,950 metric tons of U.S. chicken

leg quarters to be imported into the northern border zone (Franja

Fronteriza Norte y Region Fronteriza), as defined under the Decreto por

el que se establece el impuesto general de importaciOn para la Region

Fronteriza y la Franja Fronteriza Norte published in the Diario Oficial on

December 31, 2002. Mexico shall not impose or apply any licensing

requirements or quantitative or other restriction on any imports of U.S.

chicken leg quarters in excess of the duty free quantity established in this

subparagraph; Mexico may apply a maximum tariff of 98.8 percent ad

valorem on such imports.

(b) For calendar year 2004, Mexico shall issue import licenses no later than

January 1, 2004, providing duty free access for at least 101,000 metric

tons of U.S. chicken leg quarters to be imported into the northern border

zone. Mexico will not impose or apply any licensing requirements or

quantitative or other restriction on any imports of U.S. chicken leg

quarters in excess of the duty free quantity established in this

subparagraph; Mexico may apply a maximum tariff of 79.0 percent ad

valorem on such imports.

(c) For calendar year 2005, Mexico shall issue import licenses no later than

January 1, 2005, providing duty free access for at least 102,010 metric

tons of U.S. chicken leg quarters to be imported into the northern border

zone. Mexico will not impose or apply any licensing requirements or

quantitative or other restriction on any imports of U.S. chicken leg

quarters in excess of the duty free quantity established in this

subparagraph; Mexico may apply a maximum tariff of 59.3 percent ad

valorem on such imports.

(d) For calendar year 2006, Mexico shall issue import licenses no later than

January 1, 2006, providing duty free access for at least 103,030 metric

tons of U.S. chicken leg quarters to be imported into the northern border

zone. Mexico will not impose or apply any licensing requirements or

quantitative or other restriction on any imports of U.S. chicken leg

quarters in excess of the duty free quantity established in this

subparagraph; Mexico may apply a maximum tariff of 39.5 percent ad

valorem on such imports.

(e) For calendar year 2007, Mexico shall issue import licenses no later than

January 1, 2007, providing duty free access for at least 104,060 metric

tons of U.S. chicken leg quarters to be imported into the northern border

zone. Mexico will not impose or apply any licensing requirements or

quantitative or other restriction on any imports of U.S. chicken leg
quarters in excess of the duty free quantity established in this

subparagraph; Mexico may apply a maximum tariff of 19.8 percent ad

valorem on such imports.

2. Mexico shall allow any imports of U.S. chicken leg quarters in excess of the duty

free quantities established in the preceding subparagraphs to be sold throughout Mexico.

3. Effective no later than January 1, 2008, Mexico shall provide full duty free access

and eliminate import license requirements for U.S. chicken leg quarters.

Compensation

4. Pursuant to Article 801 of the NAFTA, we would like to confirm the following

understanding reached between the Government of Mexico and the Government of the

United States concerning Mexico's imposition of the safeguard measure.

5. Beginning July 22, 2003, Mexico shall provide to the United States mutually

agreed trade liberalizing compensation as set forth below:

(a) Except as provided in subparagraph (b) below, Mexico shall not impose

any import restriction on U.S. poultry meat, poultry products (except eggs

and egg products), or live birds, including, but not limited to, quantitative

import restrictions or technical barriers to trade, bilateral or global

safeguard measures, antidumping duties, or countervailing duties.

(b) Mexico shall notify and consult with the Office of the United States Trade

Representative ("USTR") and the United States Department of Agriculture

("USDA") at least 60 days before imposing any food safety or sanitary

measure on U.S. poultry meat, poultry products, or live birds, except that

Mexico may notify and consult with USTR and USDA within seven

calendar days after imposing a measure necessary to address a sanitary

emergency. To the extent possible, consultations under this paragraph

shall take place under the auspices of the U.S.-Mexico Consultative

Committee on Agriculture. Mexico shall ensure that any such measure

that it imposes is consistent with Chapter Seven of the NAFTA and the

World Trade Organization ("WTO") Agreement on the Application of

Sanitary and Phytosanitary Measures ("SPS Agreement").

(c) Mexico confirms that with the elimination of NOM 16-ZOO-2002,

effective May 23, 2003, imports of U.S. poultry meat, poultry products,

and live birds into Mexico will not be subject to any Hemagglutination

Inhibition testing requirement. Further, through publication of a notice in

the Diario Oficial, Mexico shall remove its prohibition due to Low

Pathenogenic Avian Influenza ("LPAI") on imports of U.S. poultry meat,

poultry products, and live birds originating in Maine, North Carolina,

3
Pennsylvania, Texas, Virginia, and West Virginia. Mexico shall

expeditiously review and publish a decision in the Diario Oficial

regarding the status of LPAI in California and Connecticut after it receives

a response to its LPAI questionnaire from USDA's Animal and Plant

Health Inspection Service ("APHIS"). APHIS shall notify Mexico of any

official U.S. regulatory action to restrict the spread of LPAI.

(d) Through publication of a notice in the Diario Oficial, Mexico shall

eliminate all testing requirements on imports of U.S. poultry meat, poultry

products, and live birds for Exotic Newcastle Disease ("END") and shall

remove its prohibition on imports of U.S. poultry meat, poultry products,

and live birds originating in Oregon, Idaho, Utah, Colorado, and New

Mexico. Upon review of documentation from APHIS that U.S. Federal

quarantines for END applicable to the quarantined areas of Arizona,

California, Nevada and Texas were removed no later than July 1, 2003,

Mexico, through publication of a notice in the Diario Oficial, shall remove

its END prohibition on imports of poultry meat, poultry products, and live

birds originating in the quarantined areas of those states. APHIS shall

notify Mexico of the status of any other END quarantine in the United

States.

(e) Mexico shall work with the United States toward establishing a framework

for recognizing the equivalence of their respective sanitary measures in

accordance with Article 714 of the NAFTA and Article 4 of the SPS

Agreement.

(f) Mexico shall notify and consult with USTR before imposing any other

bilateral or global safeguard measure on a U.S. agricultural product.

Consent

6. Mexico acknowledges that Article 801(2)(c)(ii) of the NAFTA provides that no

bilateral safeguard measure may be maintained beyond the expiration of the transition

period, except with the consent of the Party against whose good the measure is taken.

The transition period for U.S. chicken leg quarters ends on December 31, 2003. The

United States consents to the application of the safeguard measure on U.S. chicken leg

quarters beyond the expiration of the transition period on the basis of the terms specified

in paragraphs one through five of this letter. Mexico acknowledges that the United States

may withdraw its consent if the United States determines that Mexico is not fulfilling any

of these terms. The United States shall notify Mexico at least ten days before the United

States withdraws its consent.

We propose that this letter and your letter of confirmation in reply shall constitute an

agreement between our two governments."

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I confirm that the United States shares the understanding set forth in your letter, and that your

letter and this reply constitute an agreement between our respective governments.

Sincerely,

Robert B. Zoelli

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