toms value of the article imported into the customs territory of the United States; and (b) with regard to chassis of the kinds described in paragraph (1), and articles of the kinds described in paragraph (2), more than 50 percent of the appraised customs value of the article imported into the customs territory of the United States. TEXT OF SUPPLEMENTARY EXCHANGE OF NOTES UNITED STATES NOTE MARCH 9, 1965. His Excellency the Right Honorable CHARLES S. A. RITCHIE, I have the honor to refer to the Agreement concerning Automotive Products between the Government of the United States of America and the Government of Canada signed on January 16, 1965. It is the understanding of my Government that automobile truck tractors are included within the articles to be accorded duty-free entry by our two Governments pursuant to Article II and the Annexes of the Agreement. I have further the honor to request you to confirm the foregoing understanding on behalf of the Government of Canada. Accept, Excellency, the renewed assurance of my highest consideration. I have the honor to acknowledge receipt of your Note of March 9, 1965, which reads as follows: "I have the honor to refer to the Agreement concerning Automotive Products between the Government of the United States of America and the Government of Canada signed on January 16, 1965. "It is the understanding of my Government that automobile truck tractors are included within the articles to be accorded duty-free entry by our two Governments pursuant to Article II and the Annexes of the Agreement. "I have further the honor to request you to confirm the foregoing understanding on behalf of the Government of Canada. "Accept, Excellency, the renewed assurance of my highest consideration." I have further the honor to confirm the foregoing understanding on behalf of the Government of Canada. Please accept, Sir, the renewed assurances of my highest consideration. (S) C. S. A. RITCHIE ARTICLE-BY-ARTICLE ANALYSIS OF AGREEMENT PREAMBLE The preamble of the Agreement sets out the principles underlying the Agreement. The Governments state their determination to strengthen the economic relations between the two countries. They recognize that this can best be achieved through the stimulation of economic growth and the expansion of markets available to producers in both countries within the framework of their established policy of promoting multilateral trade. They further recognize that expansion of trade can best be achieved through the reduction or elimination of tariffs and other barriers to trade operating to impede or distort the full and efficient development of each country's trade and industrial potential. Finally, they recognize the important place of the automotive industry in both countries and the interests of industry, labor and consumers in sustaining high levels of efficient production and continued growth in this industry. ARTICLE I This article sets out the three objectives of the Agreement. The first objective is the creation of a broader market for automotive products to permit achievement of the full benefits of specialization and large-scale production. The second objective is the liberalization of United States and Canadian automotive trade in respect to tariff barriers and other factors tending to impede this trade, with a view to enabling the industries of both countries to participate in the expanding total market of the two countries on a fair and equitable basis. The third objective is the development of conditions in which market forces may operate effectively to attain the most economic pattern of investment, production and trade. In this article, the Governments agree to avoid actions which would frustrate the achievement of these objectives. ARTICLE II Paragraph (a) requires the Canadian Government to accord dutyfree treatment to imports of the products of the United States described in Annex A. This treatment is required to be given no later than the entry into force of the United States legislation according the same treatment to imports of the products of Canada described in Annex B. In fact, the Canadian Government began giving duty-free treatment to imports of the United States products on January 18, 1965. Paragraph (b) requires the U.S. Government to seek, in this session of the Congress, enactment of legislation which would authorize the President to proclaim the duty-free treatment of imports of the products of Canada described in Annex B. The authority sought is 53-383 0-653 |