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MEMORANDUM OF UNDERETANDINC BETWEEN
THE GOVERNMENT OF THE UNITED MEXICAN STATES AND THE GOVERNMENT
OF CANADA REGARDING APPLICATION
OF PROVISIONAL SAFEGUARD MEAEURES ON CERTAIN STEEL PRODUCTS

THE GOVERNMENT OF THE UNITED MEXICAN STATES AND THE GOVERNMENT
OF CANADA, through the Ministry of the Economy and the Department of Finance,
respectively, hereinafter referred to as the ?Participants?,

RECOGNIEINC that Canada has established as of October 25, 2018 provisional
safeguard measures on certain steel goods pursuant to the Order Imposing a Sorter on the
Importation ofCen?nI'n Steel Goods: (the ?Order");

RECOGNIEING that the Participants have a strong bilateral relationship in trade;

RECOGNIEING that the Participants have rights and obligations with respect to the
imposition of global safeguards pursuant to the North American Free Trade Agreement
and

RECOGNIEING that this Memorandum of Understanding is without prejudice to
each Participant?s rights and obligations under the World Trade Organization (WTO)
covered agreements and the NAFTA with respect to the ?nal global safeguard measures;

HAVE COME to the following understanding:

1. PURPOSE
The purpOSe of this Memorandum of Understanding (MOU) is to re?ect the

understanding of the Participants with respect to the provisional safeguard
measures that were established by the Order.

2. DEFINITIONS

Energy Tabular Products means goods set out in Class 3 in the Schedule
of the Order; and

Wire Rod means goods set out in Class 7 in the Schedule of the Order.

 PROVISIONAL SAFEGUARD MEASURES





For Energy Tubular Products, Canada will provide to Mexico an exclusive
tariff-rate quota of "?2,320 tonnes for imports of Energy Tubular Products
for the 200-day period during which provisional safeguards apply. This
volume is equal to approximately 28% of the total provisional safeguard
quota established by the Order. The breakdown of the EDD-day quota

into 50-day segments as set out in the Order will not apply to imports
from Mexico. Canada will administer this tariff?rate quota on a

?rst-come ?rst-served basis.

For Wire Rod, Canada will provide to Mexico an exclusive tariff rate
quota of 16,776 tonnes for imports of Wire Rod for the ZED-day period
during which provisional safeguards apply. This volume is equal to
approximately 36% of the total provisional safeguard quota established by
the Order. The breakdown of the EGG-day quota into 50-day segments will
not apply to imports from Mexico. Canada will administer this tariff-rate
quota on a ?rst-come ?rst-served basis.

DIFFERENCE IN INTERPRETATION AND APPLICATION

(81)



The Participants will resolve any difference in interpretation and
application of this MOU amicably through consultation.

Mexico will not initiate any dispute settlement proceedings under the
WTO or NAFTA in respect of Canada?s provisional safeguard measures.

CANADIAN STEEL EXPORTS

Mexico will take steps to immediately attend to any backlog of Canadian steel
experts at the Mexican border and ensure that Canadian steel exports to Mexico
that comply with the applicable laws and regulations of Mexico are not unduly
delayed. Canadian steel exports will continue to bene?t from applicable trusted
trader programs.

APPLICATION

In order to give effect to this MOU, Canada will amend the Order at the earliest
opportunity in 2019 to re?ect the revised provisional safeguard measures set out
in this MOU as they apply to Mexico in accordance with Canada?s domestic
regulations-making processes.

 FINAL PROVISIONS

This MUU is effective from tlte date of its last signature by the
Participants.

01} This MOU may be modi?ed anytime by mutual consent of the
Participants. The amendments will he formalized in waiting and specify
the date in which they become effective.

This MOU can be terminated upon request by any Participant through
written noti?cation to the other Participant with at least 30 days in
advance.

SIGNED in on this ?0 day of 2019,
and in eat, on this M. H. day of :1??er 2019, in two
copies, in English, French and Spanish languages, each version being equally valid.

FOR THE GOVERNMENT FOR THE GOVERNMENT OF CANADA
OF THE UNITED MEXICAN STATES

W- 

Ministry of the Economy Hedwh?cnf'df Finance