to include provisions permitting the implementation of such duty-free treatment retroactively to the earliest date administratively possible following the date upon which the Canadian Government has accorded duty-free treatment. As mentioned above, the Canadian Government accorded duty-free treatment on January 18, 1965. The U.S. Government is obligated to accord duty-free treatment promptly after the entry into force of such legislation, if enacted.

ARTICLE III

This article permits either Government to take action consistent with its obligations under Part II (arts. III through XXIII) of the General Agreement on Tariffs and Trade. Such actions include antidumping duties, escape clause measures, and national security actions.

ARTICLE IV

Paragraph (a) is a general consultation provision enabling either Government to request consultations on any matter relating to the Agreement.

Paragraph (b), without limiting paragraph (a), recognizes that special consultations may be needed with respect to problems of U.S. automotive producers which do not at present have facilities in Canada. Paragraph 3 of Annex A recognizes that Canada may designate such a manufacturer as being eligible for the benefits of the dutyfree treatment with regard to the products of the United States described in Annex A.

Paragraph (b) also recognizes that special consultations may be needed with respect to the implications for the operation of the Agreement of new automotive producers becoming established in Canada. This provision is intended to provide a safeguard against firms becoming established in Canada without being required to undertake significant production in Canada and thus becoming a conduit enabling third-country products to secure duty-free entry into the United States. The Canadian content requirement for duty-free entry into the United States embodied in paragraph 3 of Annex B also provides a safeguard against this occurrence.

Paragraph (c) provides for a comprehensive review no later than January 1, 1968, of the progress toward achieving the three objectives stated in Article I. During this review, the Governments will consider such further steps as may be necessary or desirable for the full achievement of these objectives. This paragraph is intended to provide for future possible arrangements and other matters which may arise after the 3-year transitional period has expired.

ARTICLE V

This article provides that access to United States and Canadian markets of the kind provided by the Agreement may by agreement be accorded on similar terms to other countries. This permits either country or both countries to conclude similar agreements with third countries.

ARTICLE VI

This article provides for the provisional entry into force of the Agreement on the date of signature and its definitive entry into force when notes are exchanged between the two Governments giving notice that the appropriate action in their respective legislatures has been completed. Appropriate action by the United States would be enactment of the proposed Automotive Products Trade Act of 1965. Appropriate action for the Canadian Government would be consideration of the Agreement by the Canadian Parliament.

ARTICLE VII

This article establishes an unlimited duration for the Agreement. However, each Government is given the right to terminate the Agreement, effective after 12 months' written notice to the other Government of an intention to terminate.

ANNEX A

Paragraph 1 describes the products to be accorded duty-free treatment by the Canadian Government. A supplementary exchange of notes dated March 9, 1965, confirmed that automobile truck tractors are included among these products.

Paragraph 2 defines certain terms used in the description of the products to be accorded duty-free treatment and in other definitions. Paragraph 3 relates to the designation of manufacturers not coming within the definition of "manufacturer" (as that term is defined in par. 2) as being eligible for the benefits of duty-free treatment.

ANNEX B

Paragraph (1) describes the motor vehicles and chassis to be accorded duty-free treatment by the Government of the United States. A supplementary exchange of notes dated March 9, 1965, confirmed that automobile truck tractors are included among these products.

Paragraph (2) describes the other articles to be accorded duty-free treatment under the Agreement.

Paragraph (3) makes clear that the articles described in paragraphs (1) and (2) include articles whether unfinished or in finished state but do not include articles which have less than 50 percent Canadian value added (40 percent for vehicles and chassis described in par. (1) until January 1, 1968).

AUTOMOTIVE PRODUC

ORDER IN COUNCIL ESTABLISHING REBATE P

At the Govern Tuesday, the 22n

PRESENT:

His Excellency, the GOVERNOR General in C

His Excellency the Governor General in Section 22 of the Financial Administration Ac order as follows, in accordance with the followin ury Board:

The Board recommends that Your Excellenc to order as follows:

1. (1) In this Order,

ORDER

(a) "designated period" means any foll (i) November 1, 1963 to October 31 1, 1964 to October 31, 1965, or (iii) October 31, 1966;

(b) "motor vehicle" means vehicles t Canada, would be classified under any of 424 and 438a;

(c) "motor vehicle parts" means parts Canada, would be classified under any of 424 and 438a to 438u inclusive, and includ vehicle parts and accessories, namely, ba radios, heaters, die castings of zinc, electric parts of which the component material of rubber, but does not include tires or tubes (2) A reference in this Order to the value for of any goods shall be construed as a reference to duty purposes of such of those goods as were sub specified in Schedule A to the Customs Tariff.

2. All Customs duties specified in Schedule A payable in respect of the following goods, name

(a) motor vehicles imported or taken o motor vehicle manufacturer in Canada d period, and

(b) motor vehicle parts for use as orgina vehicles, imported or taken out of wareho such manufacturer during that designated are remitted to the extent of the duties so paya value for Customs duty purposes of those goods amount (hereinafter referred to as the "excess

(c) the Canadian content value, as established to the satisfaction of the Minister of National Revenue, of motor vehicles and motor vehicle parts exported by such manufacturer during that designated period,

exceeds

(d) the Canadian content value, as established to the satisfaction of the Minister of National Revenue, of motor vehicles and motor vehicle parts exported by such manufacturer during the period November 1, 1961 to October 31, 1962,

and where the excess value exceeds the value for Customs duty purposes of the goods so imported or taken out of warehouse during that designated period, the amount of such excess may be added to the Canadian content value, as established to the satisfaction of the Minister of National Revenue, of motor vehicles and motor vehicle parts exported by such manufacturer during the immediately preceding period of twelve months in determining the amount of Customs duties specified in Schedule A to the Customs Tariff that may be remitted under this Order or under Order in Council P.C. 1962-1/1536 in respect of goods imported or taken out of warehouse during that preceding period.

3. For the purposes of this Order,

(a) a manufacturer is a motor vehicle manufacturer in Canada during any relevant period only if such manufacturer produces in Canada during that period motor vehicles the total number of which so produced is not less than forty percent of the total number of motor vehicles sold by such manufacturer during that period;

(b) motor vehicle parts that are produced in Canada by a parts manufacturer and exported and that can be identified, as being for use in the manufacture, repair or maintenance of motor vehicles produced by an affiliate outside Canada of a motor vehicle manufacturer in Canada may be considered to have been exported by such motor vehicle manufacturer; and

(c) motor vehicle parts exported for incorporation into motor vehicles to be shipped to Canada shall be deemed not to have been exported if the value of such parts may be taken into account for Customs duty remission purposes under any Order other than this Order upon the subsequent importation of such vehicles.

ORDER IN COUNCIL AMENDING REBATE PLAN P.C. 1964-1506

At the Government House at Ottawa Thursday, the 24th day of September 1964

PRESENT:

HIS EXCELLENCY THE GOVERNOR GENERAL IN COUNCIL:

His Excellency the Governor General in Council, on the recommendation of the Minister of Industry, is pleased hereby to order as follows:

1. Section 3 of Order in Council P.C. 1963-1/1544 of 22d October 1963, is amended by deleting the word "and" after paragraph (b)