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ARTICLES

LEGAL RESOURSES

Exchange rate:

$ 17.14

    • Appendix 703.2.A.13: Determination and Adjustment of Net Production Surplus

    1. For purposes of Section A(14)(c), where the Parties project a net production surplus for a Party for the next marketing year, the projected surplus shall be:

  • Increased by the amount, if any, by which the actual net production surplus exceeds the projected net production surplus in the most recent marketing year for which the Parties projected a net production surplus for that Party; or

    •  

  • Decreased by the amount, if any, by which the projected net production surplus exceeds the actual net production surplus in the most recent marketing year for which the Parties projected a net production surplus for that Party; as further demonstrated by the following formulas:

    •  

    ANPS = (PPy - CPy) + CF

     

    Where:

     

    ANPS = adjusted net production surplus

     

    PP = projected domestic production of sugar

     

    CP = projected total consumption of sugar

     

    CF = correction factor

     

    y = next marketing year,

     

    And

     

    CF = (PAys - CAys) - (PPys - CPys)

     

    Where:

     

    PA = actual domestic production of sugar

     

    CA = actual total consumption of sugar

     

    ys = most recent previous marketing year for which the Parties projected a net production surplus for that Party.

    2. For purposes only of paragraph 1, neither the projected net production surplus (PPys -CPys) nor the actual net production surplus (PAys - CAys) in the most recent marketing year for which the Parties projected a net production surplus for that Party may be considered to:

  • Exceed the quantity, if any, in Section A(15) applicable to that year; or
  • Be lower than the greater of

    •  

  • 7,258 metric tons raw value, or

    •  

  • The quantity in paragraph 14(b) of Section A applicable to that year.

    • 3. In appropriate circumstances, a Party shall consider adjustments to projections of its net production surplus when:

    Fc greater than (B + 10 %)

    Where

    F is the percentage change in stocks from the beginning to the end of a marketing year z, expressed as a positive percentage

    C is current marketing year

    F is calculated in accordance with the following formula:

    F = ((Sb-Se)/Sb)) x 100

    Where

    Sb: beginning stocks in marketing year z

    Se: ending stocks in marketing year z

    B: the average annual percentage change in stocks over the previous 5 marketing years, calculated in accordance with the following formula:

    B = (N=1) / 5

    {5/FN}

    N: previous marketing years, ranging from 1 (first preceding year) to 5 (fifth preceding year).

    4. For purposes of determining net production surplus or projected net production surplus:

  • Domestic production means all sugar and syrup goods derived from sugar cane or sugar beets grown in a Party's territory; and

    •  

  • Total consumption means all sugar and syrup goods consumed directly, or indirectly in the form of a good containing such goods, in the territory of a Party.

    • 5. Each Party shall permit representatives from the other Party to observe and comment on its statistics on production, consumption, trade and stocks and on the methodology it uses to prepare such statistics.

    6. Statistics on production, consumption, trade and stocks shall be provided by:

  • The Secretaría de Agricultura y Recursos Hidráulicos, the Secretaría de Comercio y Fomento Industrial, and the Secretaría de Hacienda y Crédito Público; and

    •  

  • The U.S. Department of Agriculture (USDA).