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Exchange of Letters constituting an Agreement between the Government of Canada and the Government of the United States of America amending Schedules 1 and 2 of Annex 705.4 of the Free Trade Agreement [1990] CATSer 9 (2 May 1990)

E100662 - CTS 1990 No. 50

EXCHANGE OF LETTERS CONSTITUTING AN AGREEMENT BETWEEN THE GOVERNMENT OF CANADA AND THE GOVERNMENT OF THE UNITED STATES OF AMERICA AMENDING SCHEDULES 1 AND 2 OF ANNEX 705.4 OF THE FREE TRADE AGREEMENT

I

The Ambassador of Canada to the acting United States Trade Representative

WASHINGTON, D.C. May 1, 1990

The Honourable S. Linn Williams
Acting United States Trade Representative
Washington, D.C.

Dear Ambassador Williams,

I have the honour to refer to recent discussions between officials of our two Governments in the Working Group established pursuant to Annex 705(4) of the Canada-United States Free Trade Agreement on the Levels of Government Support for Wheat, Oats and Barley.

I have the further honour to propose pursuant to paragraphs 5 and 6 of the Annex that our Governments agree to add certain new programs to Schedules 1 and 3 of the Annex and to correct one omission in the text, as set out below:

(a) to include under Schedule 1 “United States Government Support Programs”, Part A “Direct Payments”, the following program and agreed-to methodology:

5.1 Payments Pursuant to the Disaster Assistance Act of 1988

The support provided by the federal government to producers of wheat and barley through the Disaster Assistance Act of 1988 is the total amount paid to producers of such grain for the crop year.

(b) to include under Schedule 2 “Canadian Government Support Programs”, Part A “Direct Payments”, the following programs and agreed-to methodologies:

5.1 Payments Pursuant to the Canadian Crop Drought Assistance Program

The support provided by the federal government to producers of wheat and barley through the Canadian Crop Drought Assistance Program is the total amount paid to producers of such grain for the crop year.

5.2 Two-Price Wheat Assistance Payments for 1988-89

The support provided by the Federal government to producers of wheat through Two-Price Wheat Assistance Payments for 1988-89 is the total amount paid to producers for the crop year.

(c) to correct an omission in the text of Schedule 1 “United States Government Support Programs”, paragraph 10, subparagraph vii, whereby the formula will be revised as follows:

(A - B) x C / D x E, where E = Value of Loans.

I have the further honour to propose, if you agree, that this letter, which is authentic upon verification in English and French, together with your reply, shall constitute an Agreement between our two Governments, to enter into force on May 2, 1990 and that the above-referenced proposals shall become an integral part of the Canada-United States Free Trade Agreement.

Yours sincerely,

D. H. Burney,
Ambassador

II

The Acting United States Trade Representative to the Ambassador of Canada

His Excellency Derek Burney
Ambassador of Canada
Washington, D.C.

Dear Mr. Ambassador:

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

"I have the honour to refer to recent discussions between officials of our two Governments in the Working Group established pursuant to Annex 705(4) of the Canada-United States Free Trade Agreement on the Levels of Government Support for Wheat, Oats and Barley.

"I have the further honour to propose pursuant to paragraphs 5 and 6 of the Annex that our Governments agree to add certain new programs to Schedules 1 and 3 of the Annex and to correct one omission in the text, as set out below:

"(a) to include under Schedule 1 “United States Government Support Programs”, Part A “Direct Payments”, the following program and agreed-to methodology:

5.1 Payments Pursuant to the Disaster Assistance Act of 1988

The support provided by the federal government to producers of wheat and barley through the Disaster Assistance Act of 1988 is the total amount paid to producers of such grain for the crop year.

"(b) to include under Schedule 2 “Canadian Government Support Programs”, Part A “Direct Payments”, the following programs and agreed-to methodologies:

5.1 Payments Pursuant to the Canadian Crop Drought Assistance Program

The support provided by the federal government to producers of wheat and barley through the Canadian Crop Drought Assistance Program is the total amount paid to producers of such grain for the crop year.

5.2 Two-Price Wheat Assistance Payments for 1988-89

The support provided by the Federal government to producers of wheat through Two-Price Wheat Assistance Payments for 1988-89 is the total amount paid to producers for the crop year.

"(c) to correct an omission in the text of Schedule 1 “United States Government Support Programs”, paragraph 10, subparagraph vii, whereby the formula will be revised as follows:

(A - B) x C / D x E, where E = Value of Loans.

"I have the further honour to propose, if you agree, that this letter, which is authentic upon verification in English and French, together with your reply, shall constitute an Agreement between our two Governments, to enter into force on May 2, 1990 and that the above-referenced proposals shall become an integral part of the Canada-United States Free Trade Agreement."

I have the honor to confirm on behalf of the Government of the United States that the above proposals are acceptable to my Government and to agree that your letter and this reply shall constitute an agreement between our two Governments.

Very truly yours,

S. Linn Williams
Acting