[Federal Register Volume 63, Number 112 (Thursday, June 11, 1998)]
[Notices]
[Pages 32036-32037]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-15291]


=======================================================================
-----------------------------------------------------------------------

OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE


Implementation of the Second Round of Accelerated Tariff 
Eliminations Under Provisions of the North American Free Trade 
Agreement

AGENCY: Office of the United States Trade Representative.

ACTION: Notification of articles proposed for accelerated tariff 
elimination under the North American Free Trade Agreement.

-----------------------------------------------------------------------

SUMMARY: Section 201(b) of the North American Free Trade Agreement 
Implementation Act of 1993 (``the Act'') grants the President, subject 
to the consultation and lay-over requirements of section 103(a) of the 
Act, the authority to proclaim any accelerated schedule for duty 
elimination that may be agreed to by the United States, Mexico and 
Canada under Article 302(3) of the North American Free Trade Agreement 
(``the NAFTA''). This notice is intended to inform the public of those 
articles on which the United States has provisionally agreed to 
accelerate the elimination of duties as a result of the second round of 
talks.

FOR FURTHER INFORMATION CONTACT: Office of Western Hemisphere Affairs, 
Office of the United States Trade Representative, Room 522, 600 17th 
Street, NW., Washington, DC 20508; telephone: (202) 395-3412; fax: 
(202) 395-9517. The list of products for which the United States will 
accelerate tariff elimination, as well as the lists for Mexico and 
Canada and can be obtained from the USTR Internet Web Page, at 
www.ustr.gov under ``Reports.''.

SUPPLEMENTARY INFORMATION: Two Federal Register notices provide 
information on the second round. A notice soliciting petitions appeared 
May 12, 1997 (62 FR 25992) and a request for comments on the list of 
products to be considered appeared October 21, 1997, (62 FR 54671).
    Article 302 of the NAFTA provides that the Parties may consider and 
agree to accelerate the elimination of customs duties on goods of a 
Party. Pursuant to this provision, the United States, Canada and Mexico 
solicited requests from interested parties in May 1997. As a result, 
approximately 1,500 8-digit tariff subheadings were considered by the 
three Parties. For trade between the United States and Canada, all 
duties subject to tariff reductions were eliminated on January 1, 1998. 
Therefore, this acceleration round resulted in two parallel agreements, 
one between the United States and Mexico and another between Mexico and 
Canada.
    Section 201 of the Act authorizes the President to proclaim such 
modifications in NAFTA duty treatment as the President determines to be 
necessary or appropriate to maintain the general level of reciprocal 
and mutually advantageous concessions provided in the NAFTA, subject to 
the consultation and layover requirements of section 103 of the Act. 
Pursuant to section 103, on May 29, 1998, a report was submitted to the 
House Ways and Means and Senate Finance Committees that sets forth the 
proposed action to be proclaimed, the reasons therefore, and the advice 
obtained from the International Trade Commission and appropriate 
advisory committees. After expiration of the 60-day consultation and 
layover period, the President may proclaim the proposed changes in 
NAFTA duty treatment.
    As a part of the process, USTR requested the advice of the United 
States International Trade Commission (USITC) and consulted with 
private sector trade advisory groups. As was the practice under the 
first NAFTA tariff acceleration and the three rounds conducted under 
the provisions of the United States-Canada Free Trade Agreement, the 
United States did not agree to provide accelerated tariff elimination 
for those products subject to negative advice. In a similar manner, the 
governments of Canada and Mexico declined to agree to acceleration for 
products subject to negative comments by their interested parties.
    The Parties agreed to accelerated tariff elimination on the 
remaining products, involving all or parts of approximately 600 8-digit 
tariff lines for which one or more of the Parties have provisionally 
agreed to eliminate duties at the conclusion of the necessary domestic 
procedures.
    As noted above, the relevant private sector advisory committees 
were consulted throughout this process, and have expressed no objection 
to eliminating tariffs for the products appearing in the Annex. In 
addition, the USITC provided a report to USTR indicating that the 
proposed eliminations would have no harmful impact on the United 
States.
    The attached list shows the tariff subheadings for which the United 
States proposes to eliminate the remaining tariffs on imports of NAFTA-
qualifying goods from Mexico, effective August 1, 1998.
    Regarding future tariff acceleration activity, trilateral work to 
date has brought about a positive process of consultations and 
communication among the private sectors of the NAFTA

[[Page 32037]]

countries. To encourage this process of industry cooperation, the 
Governments of the three NAFTA countries have agreed to keep this 
consultation process open, so that if consensus is reached among the 
industries for particular items which were included in the Federal 
Register notice of October 21, 1997, and equivalent notices published 
by Mexico and Canada, the Governments will proceed with the appropriate 
internal procedures to implement acceleration for such items. A further 
Federal Register notice will be published in the near future providing 
information on procedures regarding such industry consensus, as well as 
those for new NAFTA accelerated tariff reduction requests.
Jon Huenemann,
Assistant U.S. Trade Representative for North America.

NAFTA Tariff Acceleration--Second Round Annex: List of Subheadings 
for Which the United States Has Provisionally Agreed To Accelerate 
Elimination of Duties for NAFTA Qualifying Goods of Mexico

2909.49.10, 2909.49.15, 2915.90.14, 2915.90.18, 2916.39.03, 
2916.39.06, 2916.39.45, 2916.39.75, 2917.39.70, 2921.22.10, 
2922.49.27, 2924.29.75, 2933.40.08, 2933.40.15, 2933.40.20, 
2933.40.26, 2933.40.60, 2933.40.70, 2933.90.13, 2934.90.05, 
2934.90.06, 2934.90.08, 2934.90.39, 2934.90.44, 3808.30.50, 
3811.90.00, 3822.00.50, 3824.90.28, 3824.90.45, 3824.90.90, 
5112.11.10, 5112.19.20, 5208.11.20, 5208.11.40, 5208.11.60, 
5208.11.80, 5208.12.40, 5208.12.60, 5208.12.80, 5208.19.40, 
5208.19.60, 5208.19.80, 5208.21.20, 5208.21.40, 5208.21.60, 
5208.22.40, 5208.22.60, 5208.22.80, 5208.29.40, 5208.29.60, 
5208.29.80, 5208.31.40, 5208.31.60, 5208.31.80, 5208.32.30, 
5208.32.40, 5208.32.50, 5208.39.40, 5208.39.60, 5208.39.80, 
5208.41.40, 5208.41.60, 5208.41.80, 5208.42.30, 5208.42.40, 
5208.42.50, 5208.43.00, 5208.49.20, 5208.49.40, 5208.49.60, 
5208.49.80, 5208.51.40, 5208.51.60, 5208.51.80, 5208.52.30, 
5208.52.40, 5208.52.50, 5208.59.40, 5208.59.60, 5208.59.80, 
5209.11.00, 5209.21.00, 5209.29.00, 5209.31.60, 5209.39.00, 
5209.41.60, 5209.43.00, 5209.49.00, 5209.51.60, 5209.59.00, 
5210.11.40, 5210.11.60, 5210.11.80, 5210.19.40, 5210.19.60, 
5210.19.80, 5210.21.40, 5210.21.60, 5210.21.80, 5210.29.40, 
5210.29.60, 5210.29.80, 5210.31.40, 5210.31.60, 5210.31.80, 
5210.39.40, 5210.39.60, 5210.39.80, 5210.41.40, 5210.41.60, 
5210.41.80, 5210.42.00, 5210.49.20, 5210.49.40, 5210.49.60, 
5210.49.80, 5210.51.40, 5210.51.60, 5210.51.80, 5210.59.40, 
5210.59.60, 5210.59.80, 5211.11.00, 5211.19.00, 5211.21.00, 
5211.29.00, 5211.31.00, 5211.39.00, 5211.41.00, 5211.43.00, 
5211.49.00, 5211.51.00, 5211.59.00, 5212.11.10, 5212.11.60, 
5212.12.10, 5212.12.60, 5212.13.10, 5212.13.60, 5212.14.10, 
5212.14.60, 5212.15.10, 5212.15.60, 5212.21.10, 5212.21.60, 
5212.22.10, 5212.22.60, 5212.23.10, 5212.23.60, 5212.24.10, 
5212.24.60, 5212.25.10, 5212.25.60, 5402.10.30, 5402.10.60, 
5402.31.30, 5402.31.60, 5402.32.30, 5402.32.60, 5402.33.30, 
5402.33.60, 5402.39.30, 5402.39.60, 5402.41.90, 5402.43.10, 
5402.43.90, 5402.59.00, 5402.61.00, 5402.62.00, 5402.69.00, 
5403.10.30*, 5403.20.60, 5403.31.00*, 5403.39.00, 5403.49.00, 
5404.10.80, 5405.00.30, 5406.10.00, 5406.20.00, 5407.10.00, 
5407.20.00, 5407.30.10, 5407.30.90, 5407.42.00, 5407.43.10, 
5407.43.20, 5407.44.00, 5407.53.10, 5407.53.20, 5407.61.11, 
5407.61.19, 5407.61.21, 5407.61.29, 5407.61.91, 5407.61.99, 
5407.69.10, 5407.69.20, 5407.69.30, 5407.69.40, 5407.69.90, 
5407.71.00, 5407.72.00, 5407.73.10, 5407.73.20, 5407.74.00, 
5407.81.00, 5407.82.00, 5407.83.00, 5407.84.00, 5407.91.05, 
5407.91.10, 5407.91.20, 5407.92.05, 5407.92.10, 5407.92.20, 
5407.93.05, 5407.93.10, 5407.93.15, 5407.93.20, 5407.94.05, 
5407.94.10, 5407.94.20, 5408.10.00, 5408.21.00, 5408.22.10, 
5408.22.90, 5408.23.11, 5408.23.19, 5408.23.21, 5408.23.29, 
5408.24.10, 5408.24.90, 5408.31.05, 5408.31.10, 5408.31.20, 
5408.32.05, 5408.32.10, 5408.32.30, 5408.32.90, 5408.33.05, 
5408.33.10, 5408.33.15, 5408.33.30, 5408.33.90, 5408.34.05, 
5408.34.10, 5408.34.30, 5408.34.90, 5501.10.00, 5502.00.00, 
5503.40.00, 5503.90.90, 5506.90.00, 5512.11.00, 5512.19.00, 
5512.91.00, 5512.99.00, 5513.11.00, 5513.12.00, 5513.13.00, 
5513.19.00, 5513.21.00, 5513.22.00, 5513.23.00, 5513.29.00, 
5513.31.00, 5513.32.00, 5513.33.00, 5513.39.00, 5513.41.00, 
5513.42.00, 5513.43.00, 5513.49.00, 5514.11.00, 5514.12.00, 
5514.13.00, 5514.19.00, 5514.21.00, 5514.22.00, 5514.23.00, 
5514.29.00, 5514.31.00, 5514.32.00, 5514.33.00, 5514.39.00, 
5514.41.00, 5514.42.00, 5514.43.00, 5514.49.00, 5515.11.00, 
5515.12.00, 5515.13.05, 5515.19.00, 5515.21.00, 5515.22.05, 
5515.29.00, 5515.91.00, 5515.92.05, 5515.92.10, 5515.99.00, 
5516.21.00, 5516.22.00, 5516.23.00, 5516.24.00, 5516.31.05, 
5516.32.05, 5516.33.05, 5516.34.05, 5516.34.10, 5516.41.00, 
5516.42.00, 5516.43.00, 5516.44.00, 5516.91.00, 5516.92.00, 
5516.93.00, 5516.94.00, 5602.21.00, 5603.11.00, 5603.12.00, 
5603.13.00, 5603.14.30, 5603.14.90, 5603.91.00, 5603.92.00, 
5603.93.00, 5603.94.10, 5603.94.30, 5603.94.90, 5604.20.00, 
5604.90.00, 5607.50.25, 5608.11.00, 5608.19.10, 5608.19.20, 
5608.90.10, 5609.00.10, 5801.10.00, 5801.21.00, 5801.23.00, 
5801.24.00, 5801.26.00, 5801.31.00, 5801.33.00, 5801.34.00, 
5801.36.00, 5802.11.00, 5802.19.00, 5802.20.00, 5802.30.00, 
5803.10.00, 5803.90.11, 5803.90.12, 5803.90.20, 5803.90.30, 
5803.90.40, 5811.00.10, 5811.00.20, 5811.00.30, 5811.00.40, 
5901.10.10, 5901.10.20, 5901.90.20, 5901.90.40, 5903.20.10, 
5903.20.18, 5903.20.25, 5903.20.30, 5903.90.25, 5903.90.30, 
5905.00.90, 5906.91.10, 5906.91.25, 5906.91.30, 5906.99.10, 
5906.99.25, 5906.99.30, 5907.00.15, 5907.00.35, 5907.00.60, 
5907.00.80, 5908.00.00, 5909.00.20, 5910.00.90, 5911.31.00, 
5911.32.00, 6210.10.50, 6302.21.30, 6302.21.50, 6302.21.70, 
6302.21.90, 6302.22.10, 6302.22.20, 6302.29.00, 6302.31.30, 
6302.31.50, 6302.31.70, 6302.31.90, 6302.32.10, 6302.32.20, 
6302.39.00, 6302.91.00, 6304.19.05, 6304.19.10, 6304.19.15, 
6304.19.20, 6304.19.30, 6307.90.30, 6307.90.40, 6307.90.50, 
6307.90.60, 6307.90.68, 6307.90.72, 6307.90.75, 6307.90.89, 
6505.90.15, 6505.90.20, 6505.90.25, 6505.90.30, 6505.90.40, 
6505.90.50, 6505.90.60, 6505.90.70, 6505.90.80, 6505.90.90, 
7216.22.00, 7219.21.00, 7219.22.00, 7220.11.00, 7223.00.10, 
7223.00.50, 7223.00.90, 7229.10.00, 8544.51.90, 9101.11.40, 
9101.11.80, 9102.11.10, 9102.11.25, 9102.11.30, 9102.11.45, 
9102.11.50, 9102.11.65, 9102.11.70, 9102.11.95, 9102.91.40, 
9102.91.80, 9108.11.40, 9108.11.80

* = Only portions of the subheading as described below will have 
duty elimination accelerated:
for 5403.10.00: Solution dyed viscose rayon yarn certified by the 
importer to be solution dyed (provided for in subheading 5403.10.00)
for 5403.31.00: Solution dyed viscose rayon yarn certified by the 
importer to be solution dyed (provided for in subheading 5403.31.00)

[FR Doc. 98-15291 Filed 6-10-98; 8:45 am]
BILLING CODE 3190-01-P