NAFTA AGRICULTURE FACT SHEET:
Special Agricultural Safeguard Provision

Why it was included in the NAFTA:

• A special agricultural safeguard provision is included in the North American Free Trade Agreement (NAFTA) to provide added protection against import surges of certain import-sensitive products while tariffs are being phased-out.

How it works:

• Under this provision, a designated quantity of imports will be allowed to enter at the NAFTA preferential tariff rate. This quantity is generally based on the high annual import volume during the 1989-91 period.
• Once this "trigger" level is met, the importing country may apply the tariff rate in effect at the time the agreement went into effect or the then-current most-favored-nation (MFN) rate, whichever is lower.
• The "trigger" level will grow at a 3-percent annual compounded rate (5 percent for the Canadian-Mexican safeguard) throughout the transition period of 10 years.
• The tariff assessed on this "in-quota" volume is being phased out over the 10-year transition period. For example, a 10-percent tariff is being reduced to 9 percent in year one of the agreement, 8 percent in year two, and so on.
• There will be no phaseout of the "over-quota" tariff, until the tenth year of the agreement, at which point the in-quota and over-quota tariffs are eliminated.
• For Mexico's safeguard products, the safeguard trigger is a calendar year. For U.S. safeguard products, the safeguard trigger is in place for the designated season.

Products Eligible:

• The United States applies the special agricultural safeguard on seasonal imports from Mexico of fresh tomatoes, eggplant, chili peppers, squash, watermelon and onions.
• Mexico applies the special agricultural safeguard on imports from the United States and Canada of live swine, pork and potato products, fresh apples, and coffee extract.
• Canada applies the special agricultural safeguard on imports from Mexico of fresh cut flowers and certain fresh/frozen fruits and vegetables.

Relation to the "snap-back" provision in the U.S.-Canada FTA:

• The snap-back provision in the U.S.-Canada FTA remains in force for those designated fresh fruits and vegetables traded between the United States and Canada until 2008.

U.S. NAFTA SAFEGUARD PRODUCTS, FOR IMPORTS FROM MEXICO, WITH INITIAL QUANTITIES

INITIAL				DESCRIPTION
QUANTITY
(mt)

172,300	    Tomatoes, fresh or chilled, minus cherry tomatoes, if entered during the 
            period from November 15, to the last day of the following February, inclusive

165,500	    Tomatoes, fresh or chilled, minus cherry tomatoes, if entered during the 
            period from March 1 to July 14, inclusive

130,700	    Onions and shallots, fresh or chilled, not including onion sets and not 
            including pearl onions not over 16 mm in diameter, if entered January 1 to 
            April 30, inclusive

3,700	    Eggplants (aubergines), fresh or chilled, if entered during the period 
            from April 1 to June 30, inclusive

29,900	    "Chili" peppers, if entered during the period from October 1 to July 31, 
            inclusive

120,800	    Squash, fresh or chilled, if entered during the period from October 1 to the 
            following June 30, inclusive

54,400	    Watermelons, fresh, if entered during the period from May 1 to September 30, 
            inclusive

MEXICO'S SAFEGUARD PRODUCTS, FOR IMPORTS FROM THE U.S., 
WITH INITIAL QUANTITIES

INITIAL		DESCRIPTION
Quantity
(mt)

46,900 (HEAD)	Live swine, weighing less than 50 kilograms each, except purebred 
                breeding animals and those with pedigree or selected breed certificate.

324,300 (HEAD)	Live swine, weighing 50 kilograms or more each, except purebred breeding 
                animals and those with pedigree or selected breed certificate.

5,000	        Meat of swine, carcasses and half-carcasses, fresh or chilled

17,300	        Hams, shoulders and cuts thereof, with bone in, fresh or chilled

2,100	        Other swine meat, fresh or chilled

2,800	        Meat of swine, carcasses and half-carcasses, frozen

15,200	        Hams, shoulders and cuts thereof, with bone in, frozen

21,000	        Other swine meat, frozen

300	        Hams, shoulders and cuts thereof, with bone in, salted, in brine, 
                dried or smoked

3,300	        Bellies (streaky) and cuts thereof, salted, in brine, dried or smoked

1,500	        Other swine meat, salted, in brine, dried or smoked

1,800	        Potatoes, uncooked or cooked by steaming or boiling in water, frozen

200	        Dried potatoes, whole cut, sliced, broken or in powder, but not 
                further prepared

55,000	        Apples, fresh

3,100	        Potatoes prepared or preserved otherwise than by vinegar or acetic acid, 
                frozen

5,400	        Potatoes, prepared or preserved otherwise than by vinegar or acetic acid, 
                not frozen

200	        Extracts, essences and concentrates, of coffee, and preparations with a 
                basis of these extracts, essences or concentrates or with a basis of coffee

Last modified: Friday, November 18, 2005