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Exchange of Letters between the Government of Canada and the Government of the United States of America constituting an Agreement, relating to Article 2008 of the Free-Trade Agreement, on Plywood Standards [1988] CATSer 3 (2 January 1988)

E100660 - CTS 1988 No. 48

EXCHANGE OF LETTERS BETWEEN THE GOVERNMENT OF CANADA AND THE GOVERNEMENT OF THE UNITED STATES OF AMERICA CONSITUTING AN AGREEMENT RELATING TO ARTICLE 2008 OF THE FREE-TRADE AGREEMENT, ON PLYWOOD STANDARDS

I

The Minister for International Trade for Canada to the United States Trade Representative

OTTAWA, ONTARIO
January 2, 1988

The Honourable Clayton Yeutter
United States Trade Representative
Washington, D.C.

Dear Mr. Yeutter,

I have the honour to confirm the following understanding reached between the delegations of Canada and of the United States of America in the course of negotiations regarding Article 2008 of the Free-Trade Agreement between our two Governments signed this day:

1. No later than March 15, 1988, the Canada Mortgage and Housing Corporation (CMHC), or its successor, shall evaluate C-D grade plywood and decide whether to approve its use in housing financed by CMHC.

2. If the CMHC grants approval for the use of C-D grade plywood in CMHC-financed housing, the Parties shall begin tariff reductions on January 1, 1989 for plywood tariff linkage categories.

3. If the CMHC does not grant approval for the use of C-D grade plywood in CMHC-financed housing, or grants approval only in part, the Parties shall not begin tariff reduction for plywood tariff linkage categories until completion of a review of the CMHC evaluation by an impartial panel of experts acceptable to both Parties.

a. The review shall examine whether the findings in the CMHC report and its evaluation of the American Plywood Association's application for CMHC approval of C-D grade plywood are unbiased and technically accurate.

b. If the panel agrees that the CMHC findings and evaluation are unbiased and technically accurate, the Parties shall begin tariff reductions on January 1, 1989 for plywood tariff linkage categories.

c. If the panel does not complete its review by January 1, 1989 or does not agree with the CMHC findings and evaluation, the provisions of Article 2008 shall apply.

4. for purposes of this letter: "C-D grade plywood" shall mean C-D grade plywood with exterior glue as described in U.S. Product Standard PS-1 for Construction and Industrial Plywood, that is marked by a grading organization such as the American Plywood Association.

I have the honour to propose that this understanding be treated as an integral part of the Free-Trade Agreement.

I further have the honour to propose that this letter, which is authentic in English and French, and your letter of confirmation in reply constitute an agreement between our two Governments, to enter into force on this day.

Yours sincerely,

Pat Carney

The Honorable Pat Carney
Minister of International Trade
Ottawa, Ontario

Dear Mrs. Carney:

I am pleased to receive your letter of today's date, which reads as follows:

"I have the honour to confirm the following understanding reached between the delegations of Canada and of the United States of America in the course of negotiations regarding Article 2008 of the Free-Trade Agreement between our two Governments signed this day:

"1. No later than March 15, 1988, the Canada Mortgage and Housing Corporation (CMHC), or its successor, shall evaluate C-D grade plywood and decide whether to approve its use in housing financed by CMHC.

"2. If the CMHC grants approval for the use of C-D grade plywood in CMHC-financed housing, the Parties shall begin tariff reductions on January 1, 1989 for plywood tariff linkage categories.

"3. If the CMHC does not grant approval for the use of C-D grade plywood in CMHC-financed housing, or grants approval only in part, the Parties shall not begin tariff reduction for plywood tariff linkage categories until completion of a review of the CMHC evaluation by an impartial panel of experts acceptable to both Parties.

"a. The review shall examine whether the findings in the CMHC report and its evaluation of the American Plywood Association's application for CMHC approval of C-D grade plywood are unbiased and technically accurate.

"b. If the panel agrees that the CMHC findings and evaluation are unbiased and technically accurate, the Parties shall begin tariff reductions on January 1, 1989 for plywood tariff linkage categories.

"c. If the panel does not complete its review by January 1, 1989 or does not agree with the CMHC findings and evaluation, the provisions of Article 2008 shall apply.

"4. for purposes of this letter: "C-D grade plywood" shall mean C-D grade plywood with exterior glue as described in U.S. Product Standard PS-1 for Construction and Industrial Plywood, that is marked by a grading organization such as the American Plywood Association.

"I have the honour to propose that this understanding be treated as an integral part of the Free-Trade Agreement.

"I further have the honour to propose that this letter, which is authentic in English and French, and your letter of confirmation in reply constitute an agreement between our two Governments, to enter into force on this day."

I have the honor to confirm that the understandings expressed in your letter are shared by my Government, and that your letter and this reply shall constitute an agreement between our respective Governments, to enter into force on this day.

Sincerely,

Clayton Yeutter