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Exchange of Notes constituting an Agreement between the Government of Canada and the Government of the United States of America concerning Imports of Broiler Hatching Eggs and Chicks [1990] CATSer 21 (13 September 1990)

E100661 - CTS 1990 No.15

EXCHANGE OF NOTES CONSTITUTING AN AGREEMENT BETWEEN THE GOVERNMENT OF CANADA AND THE GOVERNMENT OF THE UNITED STATES OF AMERICA CONCERNING IMPORTS OF BROILER HATCHING EGGS AND CHICKS

I

The Minister (Economic) of Canada to the Deputy United States Trade Representative

CANADIAN EMBASSY

WASHINGTON, D.C., September 13, 1990

The Honourable Julius L. Katz
Deputy United States Trade Representative
Executive Office of the President
Washington, D.C.

Dear Ambassador Katz,

I have the honour to refer to recent consultations which were held between representatives of the Government of Canada and the Government of The United States of America regarding Canada's import restrictions on broiler hatching eggs and chicks.

As a result of these consultations, officials of both governments have agreed to the terms and conditions contained in the attached document entitled, "Annex: Agreement Between the Government of Canada and the Government of The United States of America Concerning Imports of Broiler Hatching Eggs and Chicks" ("Agreement").

If the terms of the said Agreement are acceptable to your Government then I have the further honour to propose that this letter and its Annex, which are authentic in English and French, together with your confirmatory reply, constitute an Agreement between the Government of Canada and the Government of The United States of America, which shall enter into force on the date of your reply.

Accept, Sir, the renewed assurance of my highest consideration.

Sincerely,

Marc A. Brault

Minister (Economic)
Deputy Head of Mission

ANNEX

AGREEMENT BETWEEN THE GOVERNMENT OF THE UNITED STATES OF AMERICA AND THE GOVERNMENT OF CANADA CONCERNING IMPORTS OF BROILER HATCHING EGGS AND CHICKS

Pursuant to consultations under Article XXII of the General Agreement on Tariffs and Trade (GATT) concerning the imposition of Canadian import controls on broiler hatching eggs^(l) and chicks⁽²⁾, the Government of the United States of America and the Government of Canada ("the Parties") have agreed as follows:

I. ANNUAL ACCESS LEVEL

A. The combined annual access level established by the Government of Canada for imports of broiler hatching eggs and chicks for anyone year shall be 21.1 percent of the estimated Canadian domestic production of broiler hatching eggs for that year. This estimate will be adjusted and finalized on the first of August of each year.

B. This combined annual access level is subdivided into separate and distinct access levels for broiler hatching eggs and for chicks for broiler production such that the annual access level for broiler hatching eggs shall be equivalent to 17.4 percent of Canadian domestic broiler hatching egg production and the annual access level for egg-equivalent chicks shall be 3.7 percent of Canadian domestic broiler hatching egg production⁽³⁾.

C. The Government of Canada shall permit any person who has received an allocation of annual access for broiler hatching eggs to convert any proportion of said allocation into an allocation for chick imports at a conversion rate such that 1.27 broiler hatching eggs are equal to 1 chick. Chick import allocations may not be converted into egg import allocations, unless agreed by both Parties in advance in writing.

II. ACCESS LEVELS FOR 1990

A. The combined annual access for imports of broiler hatching eggs and chicks for calendar year 1990 shall be 21.1 percent of the 1990 Canadian production of broiler hatching eggs. The 1990 domestic production of broiler hatching eggs is estimated at 459,860,000.

B. The combined access levels for broiler hatching eggs and egg-equivalent chicks in 1990 shall be 97,030,046.

C. Taking into account the limited number of months remaining in calendar year 1990, considering especially chick production planning, both Parties have agreed to adjust the access level for egg-equivalent chicks during calendar year 1990 only. Therefore, the adjusted access level for egg-equivalent chicks for calendar year 1990 only shall be 14,385,000, which represents approximately 3.1 percent of domestic production.

D. The adjustment access level during calendar year 1990 only for broiler hatching eggs shall be 82,645,046, which represents approximately 18.0 percent of domestic production.

E. With respect to paragraphs II (C) and (D) above, both Parties agree to monitor closely and share with each other data on the level of trade in chicks during the balance of the 1990 calendar year. If the Government of the United States determines that trade in egg-equivalent chicks is falling short of anticipated levels in 1990, and so notifies the Government of Canada before October 26, then the Parties shall consult and use best efforts to reach agreement before November 9 on measures to ensure that the effective 1990 annual access for broiler hatching eggs and chicks reaches 21.1 percent of the 1990 Canadian production of broiler hatching eggs. If no such agreement can be reached before November 9, then, notwithstanding the provision in the last sentence of paragraph I (C), any proportion of unused 1990 chick import allocations may be converted into 1990 broiler hatching egg import allocations at a conversion rate such that 1 chick equals 1.27 broiler hatching eggs.

III. GATT RIGHTS

A. Except as hereinafter provided, the Parties retain their respective rights under the General Agreement on Tariffs and Trade (GATT). In particular, Canada retains its right to apply measures justifiable under Articles III or XX of the GATT. Except for such measures, Canada shall not apply any new measures that would nullify or impair the annual access provided for in this Agreement.

B. This Agreement and its terms are without prejudice to the legal rights or obligations of either Party, and shall not be construed as indicating that Canada's broiler hatching eggs and chick import controls or annual access levels therefor are consistent or inconsistent with the GATT. However, prior to the effective date of termination in accordance with Paragraph V, the U.S. shall not challenge the consistency with the GATT of Canada's broiler hatching eggs and chicks import controls and annual access levels therefor.

IV. CONSULTATIONS

The Parties shall consult regarding the terms of this Agreement or any matter affecting its operation, upon the request of either Party.

V. TERMINATION

This Agreement may be terminated by either Party for any reason at any time upon 180 days notice in writing.

⁽¹⁾ HTS No. 0407.00.00.10
⁽²⁾ HTS No. 0105.11.90.00
⁽³⁾ "Egg-equivalent chicks" shall be equal to the number of actual chicks imported multiplied by 1.27

II

The Deputy United States Trade Representative to the The Minister (Economic) of Canada

THE UNITED STATES TRADE REPRESENTATIVE

WASHINGTON, D.C., September 13, 1990

The Honorable Marc A. Brault
Minister (Economic) Deputy Head of Mission
Embassy of Canada
Washington, D.C.

Dear Mr. Brault:

I have the honor to acknowledge receipt of your letter and the Annex thereto, dated September 13, 1990, concerning Canada's import restrictions on broiler hatching eggs and chicks.

The Government of the United States of America accepts your proposal on this subject in accordance with the terms set forth in your letter and the Annex thereto.

Therefore, your letter and the Annex thereto together with this reply shall constitute an Agreement between our two governments on this subject to enter into force today.

Accept, Sir, the renewed assurance of my highest consideration.

Sincerely,

Julius L. Katz

Acting