Home | Databases | WorldLII | Search | Feedback Canadian Treaty Series

Exchange of Letters constituting an Agreement between the Government of Canada and the Government of the United States of America to amend Schedule 2 of Annex 705.4 as amended, of the Free Trade Agreement [1992] CATSer 14 (14 May 1992)

E100664 - CTS 1992 No. 25

EXCHANGE OF LETTERS CONSTITUTING AN AGREEMENT BETWEEN THE GOVERNMENT OF CANADA AND THE GOVERNMENT OF THE UNITED STATES OF AMERICA TO AMEND SCHEDULE 2 OF ANNEX 705.4 AS AMENDED, OF THE FREE TRADE AGREEMENT

I

The Ambassador of Canada to the United States to the United States Trade Representative

CANADIAN EMBASSY

WASHINGTON, D.C., May 14, 1992

The Honourable Carla Hills
United States Trade Representative
Washington, D.C.

Dear Ambassador Hills:

I have the honour to refer to recent discussions between officials of our two Governments in the Working Group established pursuant to Annex 705.4 of the Canada-United States Free Trade Agreement on the Levels of Government Support for Wheat, Oats, and Barley.

I have the further honour to propose, pursuant to paragraphs 5 and 6 of the Annex, that our Governments agree to include under Schedule 2 "Canadian Government Support Programs", Part A "Direct Payments", of the Annex the following program and agreed-to-methodology:

5.3 Payments Pursuant to the Special Income Assistance Program (SIAP)

The support provided by the federal government to producers of barley through the SIAP is the total amount paid to producers of barley for that calendar year. The support is computed in accordance with the following formula:

	10
A =	∑Bi
	i=1

where:

A =	The support provided by the federal and provincial governments to producers of barley through the SIAP for that calendar year

10	=		The summation of the support provided in each province by the federal and provincial governments to producers of barley through the SIAP for that calendar year
∑Bi
i=1

where:

Bi =

(Ci

+

Di )

*

Ei Fi

where:

Ci =	the support provided by the federal government to that province through the SIAP for that calendar year
Di =	the direct support provided by the provincial government through the SIAP for that calendar year
Ei =	the basis for payment in that province for barley
Fi =	the basis for payment in that province for all eligible commodities.

5.4 Payments Pursuant to the Net Income Stabilization Program (NISA)

The support provided by the federal and provincial governments to producers of barley through the Net Income Stabilization Account is the amount of the total support provided under the program to producers of barley. The support is computed in accordance with the following formula:

A

=

B

*

C D

where:

A =	the support provided by the federal and provincial governments to producers of barley through the NISA for that calendar year
B =	the support provided by the federal and provincial governments through the NISA for that calendar year
C =	cash receipts of barley for that calendar year
D =	total cash receipts of all eligible commodities under the NISA for that calendar year.

I also have the honour to propose, pursuant to paragraphs 5 and 6 of the Annex, that our Governments agree to include under Schedule 2 "Canadian Government Support Programs", Part B "Other Support", of the Annex the following programs and agreed-to-methodology:

10.1 Payments Pursuant to the Cash Flow Enhancement Program (CFEP)

The support provided by the federal government to producers of barley through the CFEP is the total amount paid to producers of barley for that crop year. The support is computed in accordance with the following formula:

A=

(

Bi

*

Ci Di

)

+

(

Bii

*

Cii Dii

)

where:

A =	the support provided by the federal government to producers of barley through the CFEP for that crop year
Bi =	the interest cost of the funds advanced to producers of all eligible crops under the Prairie Grain Advance Payments Act for that crop year
Ci =	the value of advance made for barley through the Prairie Grain Advance Payments Act for that crop year
Di =	the value of advances made for all eligible crops under the Prairie Grain Advance Payments Act for that crop year
Bii =	the interest cost of the funds advanced to producers of all eligible crops under the Advance Payments for Crops Act for that crop year
Cii =	the value of advance made for barley through the Advance Payments for Crops Act for that crop year
Dii =	the value of advances made for all eligible crops under the Advance Payments for Crops Act for that crop year.

I have the additional honour to propose, pursuant to paragraphs 5 and 6 of the Annex, that our Governments agree to include under Schedule 1 "United States Government Support Programs", Part A "Direct Payments" of the Annex the following program and agreed-to-methodology:

5.3 Payments Pursuant to appropriations under the Dire Emergency Supplemental Appropriations and Transfers for Relief from the Effects of Natural Disasters, for Other Urgent Needs, and for Incremental Cost of "Operation Desert Shield/Desert Storm" Act of 1992

The support provided by the federal government to producers of barley pursuant to appropriations under the Dire Emergency Supplemental Appropriations and Transfers for Relief from the Effects of Natural Disasters, for Other Urgent Needs, and for Incremental Cost of "Operation Desert Shield/Desert Storm" Act of 1992 is the total additional amount paid to producers of barley for the 1990-91 crop year.

I have the further honour to propose, if you agree, that this letter, which is authentic in English and in French, together with your reply, shall constitute an Agreement between our two Governments, to enter into force on this date and that the above referenced proposals shall become an integral part of the Canada-United States Free Trade Agreement.

Yours sincerely,

Derek H. Burney

Ambassador

II

The United States Trade Representative to the Ambassador of Canada to the United States

EXECUTIVE OFFICE OF THE PRESIDENT

WASHINGTON, D.C., May 14, 1992

The Honorable D. H. Burney
Ambassador
Embassy of Canada
Washington, DC

Dear Ambassador Burney:

I am pleased to receive your letter of today's date, which reads as follows:

(See Canadian Letter of May 14, 1992)

I have the honor to confirm on behalf of the Government of the United States that the above proposals are acceptable to my Government and to agree that this letter and your reply shall constitute an agreement between our two Governments.

Sincerely,

Carla A. Hills