With reference to the proposed reciprocal trade agreement between the
United States of America and the United Mexican States, there [Page 493] is attached a draft of general
provisions for the proposed agreement.
Should it be found necessary by the Government of the United States to
grant certain concessions to the Mexican Government on a basis whereby
the United States would have the right to withdraw such concessions
after the close of the present war, there would probably be included in
the agreement a special list of such items, which might, as in the case
of the trade agreement concluded in October 1941 between the United
States of America and the Argentine Republic, be denominated Schedule
III.
The Government of the United States expects, during the forthcoming
negotiations, to request certain assurances regarding Mexican export
duties and taxes on articles on which concessions may be offered by the
United States.
[Enclosure]
Draft of General Provisions14
[Preamble same as in final text, printed as Department of State
Executive Agreement Series No. 311, or 57 Stat. 833.]
Article I
[Same as in final text except change of phrase “affecting the sale,
taxation or use of imported articles” to “affecting the taxation,
sale, distribution or use of imported articles”.]
Article II
[Same as in final text with slight verbal change.]
Article III
- 1.
- No prohibition or restriction of any kind shall be imposed by
the Government of the United States of America or the Government
of the United Mexican States on the importation, sale,
distribution or use of any article the growth, produce or
manufacture of the other country, or upon the exportation of any
article destined for the territory of the other country, unless
the importation, sale, distribution or use of the like article
the growth, produce or manufacture of all third countries, or
the exportation of the like article to all third countries,
respectively, is similarly prohibited or restricted.
- 2.
- If the Government of the United States of America or the
Government of the United Mexican States imposes any restriction
on the importation or exportation of any article, or on the
sale, distribution [Page 494] or
use of any imported article, it shall as a general rule give
public notice of the total quantity or value of such article
permitted to be imported, exported, sold, distributed or used
during a specified period, and of any change in such quantity or
value. Furthermore, if the Government of the United States of
America or the Government of the United Mexican States allots a
share of such total quantity or value to any third country, it
shall as a general rule allot to the other country, with respect
to any article in which the latter has an important interest, a
share based upon the proportion of the total quantity or value
supplied by, or in the case of exports a share based upon the
proportion exported to, such other country during a previous
representative period.
- 3.
- The provisions of this Article relating to imported articles
shall also apply in respect of the quantity or value of any
article permitted to be imported at a specified rate of
duty.
Article IV
[Same as in final text.]
Article V
- 1.
- If the Government of the United States of America or the
Government of the United Mexican States establishes or maintains
a monopoly for the importation, sale, distribution or production
of any article or grants exclusive privileges to any agency to
import, sell, distribute or produce any article, the commerce of
the other country shall be accorded fair and equitable treatment
in respect of the foreign purchases of such monopoly or agency.
To this end such monopoly or agency shall, in making its foreign
purchases of any article, be influenced solely by
considerations, such as price, quality, marketability and terms
of sale, which would ordinarily be taken into account by a
private commercial enterprise interested solely in purchasing
such article on the most favorable terms.
- 2.
- The Government of the United States of America and the
Government of the United Mexican States, in the awarding of
contracts for public works and generally in the purchase of
supplies, shall accord fair and equitable treatment to the
commerce of the other country as compared with the treatment
accorded to the commerce of any third country.
Article VI
[Same as in final text except that in paragraph 5 the final text has
the added words “as soon as practicable,” which do not appear in the
draft, with respect to the submission of recommendations by the
committee of technical experts.]
Article VII
[Same as in final text.]
[Page 495]
Article VIII
[Same as in final text except that draft was amended to cover
Schedule III as well as Schedule II.]
Article IX
[Same as in final text.]
Article X
1. Subject to the provisions of the second paragraph of this Article
and to the provisions of Article XI, no prohibition, restriction or
any other form of quantitative regulation, whether or not operated
in connection with any agency of centralized control, shall be
imposed by the United Mexican States on the importation or sale of
any article the growth, produce or manufacture of the United States
of America enumerated and described in Schedule I, or by the United
States of America on the importation or sale of any article the
growth, produce or manufacture of the United Mexican States
enumerated and described in Schedule II.
[Paragraphs 2 and 3 the same as in final text.]
Article XI
[Same as in final text except that draft was amended to cover
Schedule III as well as Schedule II.]
Article XII
If the Government of the United States of America or the Government
of the United Mexican States should consider that any measure
adopted by the other Government, even though it does not conflict
with the terms of this agreement, has the effect of nullifying or
impairing any object of the agreement, such other Government shall
give sympathetic consideration to such written representations or
proposals as may be made with a view to effecting a mutually
satisfactory adjustment of the matter. If agreement is not reached
with respect to the matter within thirty days after such
representations or proposals are received, the Government which made
them shall be free, within fifteen days after the expiration of the
aforesaid period of thirty days, to terminate this agreement in
whole or in part on thirty days’ written notice.
Article XIII
[Same as Article XV in final text.]
Article XIV
[Same as Article XVI in final text.]
[Page 496]
Article XV
[Paragraph I same as Article XVII in final text.]
2. The provisions of this Agreement relating to the sale, taxation or
use of imported articles within the United States of America are
understood to be subject to the constitutional limitations on the
authority of the Federal Government.
Article XVI
- 1.
- This Agreement shall be proclaimed by the President of the
United States of America and shall be ratified by the Government
of the United Mexican States in conformity with the laws of the
respective countries. It shall enter into full force on the
thirtieth day after the exchange of the proclamation and the
instrument of ratification which shall take place at the City of
Mexico as soon as possible, and, subject to the provisions of
Article X, Article XI, and Article XII, shall remain in force
for a period of three years thereafter.
- 2.
- Unless six months before the expiration of the aforesaid
period of three years the Government of the United States of
America or the Government of the United Mexican States shall
have given to the other Government notice of intention to
terminate this Agreement upon the expiration of the aforesaid
period, the Agreement shall remain in force thereafter, subject
to the provisions of Article X, Article XI, and Article XII,
until six months from the date on which notice of intention to
terminate it shall have been given by either Government.
In witness whereof [etc.]
