Agreement on Internal Trade
Interpretive note number 2
Scope and Coverage of Chapter Nine
- 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.
- Paragraph 2 of article 902 specifies that such measures include those relating to the right to invest in the production of, or to produce:
- poultry and eggs or any other farm products regulated pursuant to the Farm Products Agencies Act; and
- milk and dairy products regulated pursuant to the Canadian Dairy Commission Act and the Agricultural Products Marketing Act.
- The Parties recognize that Article 902.2 includes, but is not limited to:
- measures that govern supply such as the fixing and allocation of production quotas;
- measures that govern price setting such as the establishment of price fixing methods;
- measures that govern single-desk selling such as production, marketing, joint offer for sale and transportation conditions;
- terms and conditions of payment of the sale price;
- 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.
- 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.