Appendix 2.1: Tariff Elimination

For purposes of this Appendix, each Party shall apply Section 2(2) to determine whether a textile or apparel good is an originating good of a particular Party.

A. Trade between Canada and the United States

As required by Article 302 (TLCAN: Art. 302), Canada and the United States each shall progressively eliminate its respective customs duties on originating textile and apparel goods of the other Party in accordance with Annex 401.2, as amended, of the Canada United States Free Trade Agreement, as incorporated into Annex 302.2 (TLCAN: Anexo 302.2) and as set out in each Party's Schedule to that Annex.

B. Trade between Mexico and the United States

Except as provided in Schedule 2.1.B, and as required by Article 302 (TLCAN: Art. 302), Mexico and the United States each shall progressively eliminate its respective customs duties on originating textile and apparel goods of the other Party, in accordance with its respective Schedule to Annex 302.2 (TLCAN: Anexo 302.2), as follows:

C. Trade between Canada and Mexico

As required by Article 302 (TLCAN: Art. 302), Canada and Mexico each shall progressively eliminate its respective customs duties on originating textile and apparel goods of the other Party, in accordance with its respective Schedule to Annex 302.2 (TLCAN: Anexo 302.2), as follows:

D. Trade between All Parties

Originating textile and apparel goods provided for in the items in staging category D in a Party's Schedule to Annex 302.2 (TLCAN: Anexo 302.2) shall continue to receive dutyfree treatment.

Schedule 2.1.B: Exceptions to Tariff Phaseout Formula Specified in Appendix 2.1

1. The United States shall apply the following rates of duty on tariff items 5111.11.70, 5111.19.60, 5112.11.20 and 5112.19.90 during the transition period:

2. Mexico shall apply the following rates of duty on tariff items 5111.11.01, 5111.19.99, 5112.11.01 and 5112.19.99, as modified to correspond to the U.S. tariff items identified in paragraph 1, during the transition period:

3. The United States shall apply the following rates of duty on tariff items 5111.20.90, 5111.30.90, 5112.20.30, 5112.30.30, 5407.91.05, 5407.92.05, 5407.93.05, 5407.94.05, 5408.31.05, 5408.32.05, 5408.33.05, 5408.34.05, 5515.13.05, 5515.22.05, 5515.92.05, 5516.31.05, 5516.32.05, 5516.33.05 and 5516.34.05 during the transition period:

4. Mexico shall apply the following rates of duty on tariff items 5111.20.99, 5111.30.99, 5112.20.01, 5112.30.01, 5407.91.99, 5407.92.99, 5407.93.99, 5407.94.99, 5408.31.99, 5408.32.99, 5408.33.99, 5408.34.99, 5515.13.01, 5515.22.01, 5515.92.01, 5516.31.01, 5516.32.01, 5516.33.01 and 5516.34.01, as modified to correspond to the U.S. tariff items identified in paragraph 3, during the transition period:

5. Mexico shall apply the following rates of duty on goods of subheadings 5703.20 and 5703.30 measuring not more than 5.25 square meters in area, other than nylon handhooked, during the transition period: