Each Party shall endeavour to administer the Agreement Concerning Automotive Products between the Government of Canada and the Government of the United States of America that entered into force definitively on September 16, 1966 in the best interests of employment and production in both countries.

1. Neither Party shall grant a waiver of otherwise applicable customs duties to a recipient other than those recipients listed in Annex 1002.1, nor shall either Party expand the extent or application of, or extend the duration of, any waiver granted to any such recipient with respect to:

2. Waivers of customs duties granted to the recipients listed in Part Two of Annex 1002.1, where the amount of duty waived depends on exports, shall:

3. Waivers of customs duties granted to the recipients listed in Part Three of Annex 1002.1, where the amount of duty waived depends on Canadian value added contained in production in Canada, shall terminate not later than:

4. Whenever the other Party can show that a waiver or combination of waivers of customs duties granted with respect to automotive goods for commercial use by a designated person has an adverse impact on the commercial interests of a person of the other Party, or of a person owned or controlled by a person of the other Party that is located in the territory of the Party granting the waiver of customs duties, or on the other Party's economy, the Party granting the waiver either shall cease to grant it or shall make it generally available to any importer. The provisions of this paragraph shall not apply to the waivers of customs duties to those recipients listed in Part One of Annex 1002.1 in accordance with the headnote to that Part or to the waivers of customs duties referred to in paragraphs 2 and 3 for the periods during which such waiver of customs duties may be conditioned upon the fulfillment of performance requirements set forth in paragraphs 2 and 3.

Canada shall phase out the import restriction on used automobiles set out in tariff item 99215-1 of Schedule C to the Customs Tariff, or its successor, in five annual stages commencing on January 1, 1989 in accordance with the following schedule:

The Parties recognize the continued importance of automotive trade and production for the respective economies of the two countries and the need to ensure that the industry in both countries should prosper in the future. As the worldwide industry is evolving very rapidly, the Parties shall establish a select panel consisting of a group of informed persons to assess the state of the North American industry and to propose public policy measures and private initiatives to improve its competitiveness in domestic and foreign markets. The Parties shall also cooperate in the Uruguay Round of multilateral trade negotiations to create new export opportunities for North American automotive goods.

1. Chapter Three (Rules of Origin for Goods) applies to:

2. In determining whether a vehicle originates in the territory of either Party or both Parties under paragraph 4 of Section XVII of Annex 301.2, instead of a calculation based on each vehicle, the manufacturer may elect to average its calculation over a 12-month period on the same class of vehicles or sister vehicles (station wagons and other body styles in the same car line), assembled in the same plant.

3. The provisions of Article 405 apply to the waiver of customs duties affecting automotive goods except where otherwise provided in this Chapter.

4. The list of recipients in Annex 1002.1 and the definition "class of vehicles" may be modified by agreement between the Parties.

For purposes of this Chapter:

automotive goods means motor vehicles and those goods used or intended for use in motor vehicles;

Canadian manufacturer means a person who manufactures automotive goods within the territory of Canada;

class of vehicles means any one of the following

NOTE: A vehicle that may have more than one possible use (e.g., vans, jeeps) would be defined as either an automobile or truck based on whether it is designed and marketed principally for the transport of passengers or the transport of cargo;

comparable arrangement means arrangements whereby waivers of customs duties are granted to Canadian manufacturers upon the fulfillment of conditions comparable to those described in the agreement referred to in Article 1001;

customs duty has the same meaning as in Article 410;

performance requirements has the same meaning as in Article 410;

used automobiles means used or second-hand automobiles and used or second-hand motor vehicles of all kinds that are manufactured prior to the calendar year in which importation into the territory of Canada is sought to be made; and

waiver of customs duties has the same meaning as in Article 410.

AMI Stego Limited

Advance Engineered Products Ltd.

Alforge Metals Corporation Limited

Almac Industries Ltd.

Amalgamated Metal Industries

American Motors (Canada) Inc.

American Motors (Canada) Limited

American Motors (Canada) Ltd.

Amertek Inc.

Atelier Gérard Laberge Inc.

Atlantic Truck and Trailer Limited

Atlas 2,000 Inc.

Atlas Hoist and Body Inc.

Aurora Cars Limited

Aurora Cars, a Division of Grove Ridge Industries Limited

B.K. & B. Truck Bodies Limited

B.T.L. Body Inc.

Babcock Motor Bodies Limited

Back Motor Bodies Ltd.

Belgium Standard Industries, A Division of Amertek Inc.

Bevcam Inc.

Boîtes de Camion Alco Inc.

Boîtes de Camion GAM Inc.

Boîtes de Camion Saguenay (1987) Inc.

Bombardier Inc., Logistic Equipment Division

Bricklin Canada Limited

Burke Canada Inc.

CAMI Automotive Inc.

Canadian Blue Bird Coach Ltd.

Canadian Disposal Equipment Co. Ltd.

Canadian Kenworth Ltd.

Canassen Limited

Capital Disposal Equipment Inc.

Capital Truck Bodies

Care Equipment Manufacturing Co. Ltd.

Central Truck Body Co. Ltd.

Champion Truck Bodies Limited

Childs Truck Bodies Ltd.

Chrysler Canada Ltd.

Collins Manufacturing Company Limited

Commercial Truck Bodies

Commercial Vans Inc.

Consolidated Dynamics Limited

Contran Manufacturing Ltd.

County Truck & Trailer, a Division of Peterson Vans Inc.

Cusco Industries, Division of Cusco Fabricators Ltd.

D. & C. Roussy Industries Ltd.

DEL Equipment Limited, Division of Diesel Equipment Limited

Deluxe Van & Body Ltd.

Dempster Systems Limited

Dependable Truck and Tank Repairs Ltd.

Diesel Equipment Limited

Dominion Truck Bodies Ltd.

Dresser Canada, Inc.

Durabody & Trailer Limited

Dynamic Fiber Ltd.

Dynatel Inc.

Eastern Steel Products/ Frink Canada, Division of Compro Limited

Eastway Tank, Pump and Meter Co. Ltd.

Edmonton Truck Body Ltd.

Elcombe Engineering Ltd.

Equipement Labrie Ltée

F.A.D. Industries Inc.

F.W.D. Corporation

Fabricants de Boîtes de Camions BEL (1986) Inc.

Fanotech Industries Inc.

Fawcett Van & Stake Ltd.

Fleet Truck Bodies

Ford Motor Company of Canada Limited

Forman Tank & Welding, Ltd.

Fort Garry Industries Ltd.

Freightliner of Canada Ltd.

G. G. Cargo Trailer Industries Ltd.

G. & G. Welding

G.R. Patstone Ltd.

General Motors of Canada Limited

George C. Doerr Body and Trailer Co.

Girardin Corporation

Greyhound Canada Inc.

H.E. Brown Supply Co.

Hal-Vey Industries Ltd.

Hayes Manufacturing Company Limited

Hutchinson Industries

Ideal Body Limited

IMT Cranes Canada, Ltd.

Intercontinental Truck Body B.C. Inc.

Intercontinental Truck Body Ltd.

Intermeccanica International Inc.

J.H. Corbeil Inc.

Jauvin Truck Bodies Limited

Jean-Marc Vigeant Inc.

Kaiser Jeep of Canada Limited

Kamloops Allweld Aluminum Service Limited

L. Knight & Co. Ltd.

Lennoxvan (1986) Inc.

Les Carrosseries Fontaine (1979) Ltée

Les Entreprises Michel Corbeil Inc.

Les Industries Savard Inc.

Mack Trucks Manufacturing Company of Canada Limited

Marathon Electric Vehicles Inc.

McEwan-Tougard Industries Limited

MCI Limited

Minoru Truck Bodies Ltd.

Mond Industries Limited

Morrison & Co. Ltd.

Motor Coach Industries Limited

Multi-Vans Inc.

Navistar International Corporation Canada

New Flyer Industries Limited

Off-Highway Vehicles: Ceco Sales Limited

Off-Highway Vehicles: Cypress Equipment Ltd.

Off-Highway Vehicles: Euclid Canada

Off-Highway Vehicles: General Motors of Canada Limited
Off-Highway Vehicles: General Motors of Canada Limited, Diesel Division

Off-Highway Vehicles: Mack Trucks Manufacturing Company of Canada Limited

Off-Highway Vehicles: Paccar Canada Ltd.

Off-Highway Vehicles: Pacific Truck & Trailer Ltd.

Off-Highway Vehicles: Ume Canada

Off-Highway Vehicles: Unit Rig & Equipment Co. (Canada) Ltd.

Off-Highway Vehicles: Wabco Equipment of Canada

Ontario Bus Industries Limited

Ontario Fiberglass Production O/B 536794 Ont. Ltd.

Ottawa Truck Bodies Ltée/Ltd.

Paccar Canada Ltd.

Parco-Hesse Corporation Inc.

Peabody Myers (Canada), Division of Peabody International

Canada Ltd.

Pettibone Canada Limited

Phil Larochelle (1977)

Phil Larochelle Equipment Inc.

Philwood Industries Ltd.

Pitman Manufacturing Co. Inc.

PK Welding & Fabricators Limited

Pollock Truck Bodies, Division of Pollock Rentals Limited

Prevost Car Inc.

Québec Truck Bodies Boîtes de Camions Inc.

R & M Manufacturing Ltd.

Raytel Equipment Ltd.

Rebel Steel Industries Ltd.

Red Top Equipment Company Limited

Réfrigération Thermo King Montréal Inc.

Reliance Truck and Equipment

Remtec Inc.

Roberts Truck Equipment Ltd.

Rubber Railway Company Ltd.

Sentinal Vehicles Limited

Sheller-Globe of Canada Limited

Sicard Inc.

SMI Industries Canada Ltd.

SMI Industries Limited

Soudure G. & G. Ltée

Sturdy Truck Body (1972) Limited

Superior Bus Mfg. Ltd.

Supravan Ltée

Swartz Motor Bodies Limited

Teal Manufacturing Ltd.

The Electric & Gas Welding Co. Limited

Thermo King Western (Calgary) Ltd.

Thermo King Western Ltd.

Thomas Built Buses of Canada Limited

Tipping Motor Bodies Limited

Toronto Kitchen Equipment Limited

Tor Truck Corporation

Trailmobile Group of Companies Ltd.

Transit Van Bodies Inc.

Triangle Truck Equipment Ltd.

Triple E Industries Ltd.

Truck Equipment & Service Co. Ltd.

UTDC Inc.

Universal Carrier Manufacturing Ltd.

Universal Handling Equipment Co.

Universal Sales Limited

Universal Truck Body Ltd.

Univision Industries Limited

V. Lacasse Ltée

Vennes Boîte de Camion Inc.

Volvo Canada Ltd.

Vulcan Equipment Company Limited

W.H. Olsen Manufacturing Co. Ltd.

Wajax UEC Limited

Walinga Body & Coach Limited

Walter Canada Inc.

Walter Motor Trucks of Canada Limited

Welles Corporation Limited

Westank-Willock, a Division of Willock Industries Ltd.

Western Rock Bit Company Limited

Western Star Trucks Inc.

Western Utilities Equipment Co. Ltd.

Wheels, Brakes and Equipment Limited

White Motor Corporation of Canada Limited

Wilcox Bodies Limited

Wilson Motor Bodies Ltd.

Wilson's Truck Bodies, a Division of L & A Machine (N.S.) Limited

Wilson's Truck Body Shop Ltd.

Wiltsie Truck Bodies Ltd.

The following Canadian manufacturers have qualified for export-based waivers of customs duties or, on the basis of available information and projections, may be reasonably expected to qualify by the date of entry into force of this Agreement. Canada shall provide the United States of America with the final list of those companies on this list that have qualified as of the date of entry into force of this Agreement.

BMW Canada Inc.

Fiat Canada

Honda Canada Inc.

Hyundai Auto Canada Inc.

Jaguar Canada Inc.

Mazda Canada Inc.

Mercedes-Benz of Canada Inc.

Nissan Automobile Company (Canada) Ltd.

Peugeot Canada Ltée/Ltd.

Saab-Scania Canada Inc.

Subaru Auto Canada Limited

Toyota Canada Inc.

Volkswagen Canada Inc.

The following Canadian manufacturers have qualified for production-based waivers of customs duties or, on the basis of available information and projections, may be reasonably expected to qualify by the date of entry into force of this Agreement. The final list of those companies covered by the list below that so qualify will be provided by Canada to the United States of America within 90 days after the end of the 1989 model year.

Honda Canada Inc./Honda of Canada Mfg., Inc.

Hyundai Auto Canada Inc.

Toyota Motor Manufacturing Canada Inc.