Agreement on Internal Trade

Interpretive note number 2

Scope and Coverage of Chapter Nine

  1. Paragraph 2 of Article 902 provides that nothing in Chapter Nine shall be construed to prevent a Party from adopting or maintaining measures relating to supply management systems regulated by federal and provincial governments, and provincially regulated marketing boards, that are not technical measures.
  2. Paragraph 2 of article 902 specifies that such measures include those relating to the right to invest in the production of, or to produce:
    1. poultry and eggs or any other farm products regulated pursuant to the Farm Products Agencies Act; and
    2. milk and dairy products regulated pursuant to the Canadian Dairy Commission Act and the Agricultural Products Marketing Act.
  3. The Parties recognize that Article 902.2 includes, but is not limited to:
    1. measures that govern supply such as the fixing and allocation of production quotas;
    2. measures that govern price setting such as the establishment of price fixing methods;
    3. measures that govern single-desk selling such as production, marketing, joint offer for sale and transportation conditions;
    4. terms and conditions of payment of the sale price;
    5. measures that govern the direction of raw product to processors such as sale requirements between a producer and a board of producers or a buyer, or between such a board and a buyer.
  4. Nothing in this Interpretive Note shall alter the definition of technical measure in Article 907 of Chapter Nine or the application of Chapter Nine to a technical measure.
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