North American Free Trade Agreement

Part Two: Trade in Goods

a) subheading 2612.10;

b) headings 27.01 through 27.06;

c) subheading 2707.50;

d) subheading 2707.99 (only with respect to solvent naphtha, rubber extender oils and carbon black feedstocks);

e) headings 27.08 and 27.09;

f) heading 27.10 (except for normal paraffin mixtures in the range of C9 to C15);

g) heading 27.11 (except for ethylene, propylene, butylene and butadiene in purities over 50 percent);

h) headings 27.12 through 27.16;

i) subheadings 2844.10 through 2844.50 (only with respect to uranium compounds classified under those subheadings);

j) subheading 2845.10; and

k) subheading 2901.10 (only with respect to ethane, butanes, pentanes, hexanes, and heptanes).

a) limiting or prohibiting the importation from the territory of any Party of such energy or basic petrochemical good of the nonParty; or

b) requiring as a condition of export of such energy or basic petrochemical good of the Party to the territory of any other Party that the good be consumed within the territory of the other Party.

a) exports of any such good to the territory of all other Parties; and

b) any such good when destined for domestic consumption.

a) the restriction does not reduce the proportion of the total export shipments of the specific energy or basic petrochemical good made available to that other Party relative to the total supply of that good of the Party maintaining the restriction as compared to the proportion prevailing in the most recent 36month period for which data are available prior to the imposition of the measure, or in such other representative period on which the Parties may agree;

b) the Party does not impose a higher price for exports of an energy or basic petrochemical good to that other Party than the price charged for such good when consumed domestically, by means of any measure such as licenses, fees, taxation and minimum price requirements. The foregoing provision does not apply to a higher price that may result from a measure taken pursuant to subparagraph (a) that only restricts the volume of exports; and

c) the restriction does not require the disruption of normal channels of supply to that other Party or normal proportions among specific energy or basic petrochemical goods supplied to that other Party, such as, for example, between crude oil and refined products and among different categories of crude oil and of refined products.

a) national treatment, as provided in Article 301;

b) import and export restrictions, as provided in Article 603; and

c) export taxes, as provided in Article 604.

a) supply a military establishment of a Party or enable fulfillment of a critical defense contract of a Party;

b) respond to a situation of armed conflict involving the Party taking the measure;

c) implement national policies or international agreements relating to the non-proliferation of nuclear weapons or other nuclear explosive devices; or

d) respond to direct threats of disruption in the supply of nuclear materials for defense purposes.

a) domestic production;

b) domestic inventory; and

c) other imports, as appropriate.

a) exploration and exploitation of crude oil and natural gas; refining or processing of crude oil and natural gas; and production of artificial gas, basic petrochemicals and their feedstocks and pipelines;

b) foreign trade; transportation, storage and distribution, up to and including the first hand sales of the following goods:

(i) crude oil,

(ii) natural and artificial gas,

(iii) goods covered by this Chapter obtained from the refining or processing of crude oil and natural gas, and

(iv) basic petrochemicals;

c) the supply of electricity as a public service in Mexico, including, except as provided in paragraph 5, the generation, transmission, transformation, distribution and sale of electricity; and

d) exploration, exploitation and processing of radioactive minerals, the nuclear fuel cycle, the generation of nuclear energy, the transportation and storage of nuclear waste, the use and reprocessing of nuclear fuel and the regulation of their applications for other purposes and the production of heavy water.

An enterprise of another Party may acquire, establish, and/or operate an electrical generating facility in Mexico to meet the enterprise's own supply needs. Electricity generated in excess of such needs must be sold to the Federal Electricity Commission (Comisi n Federal de Electricidad) (CFE) and CFE shall purchase such electricity under terms and conditions agreed to by CFE and the enterprise.

b) Co-generation

An enterprise of another Party may acquire, establish, and/or operate a co-generation facility in Mexico that generates electricity using heat, steam or other energy sources associated with an industrial process. Owners of the industrial facility need not be the owners of the co-generating facility. Electricity generated in excess of the industrial facility's supply requirements must be sold to CFE and CFE shall purchase such electricity under terms and conditions agreed to by CFE and the enterprise.

c) Independent Power Production

An enterprise of another Party may acquire, establish, and/or operate an electricity generating facility for independent power production (IPP) in Mexico. Electricity generated by such a facility for sale in Mexico shall be sold to CFE and CFE shall purchase such electricity under terms and conditions agreed to by CFE and the enterprise. Where an IPP located in Mexico and an electric utility of another Party consider that cross-border trade in electricity may be in their interests, each relevant Party shall permit these entities and CFE to negotiate terms and conditions of power purchase and power sale contracts. The modalities of implementing such supply contracts are left to the end users, suppliers and CFE and may take the form of individual contracts between CFE and each of the other entities. Each relevant Party shall determine whether such contracts are subject to regulatory approval.

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