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GGD-93-14R 1 (1993-03-18)

handle is hein.gao/gaobackgh0001 and id is 1 raw text is: iGAO GA General Accounting Ofice Wshington, D.C. 20S General Government Division B-252686 March 18, 1993 The Honorable Bob Graham United States Senate l4B757 Dear Senator Graham: This letter responds to your request that we review the snapback tariff provision for fresh fruits and vegetables (article 702) of the Canadian-U.S. Free Trade Agreement (CFTA) and the agricultural safeguard provisions between the United States and Mexico under the North American Free Trade Agreement (NAFTA).1 Specifically, our objectives were to (1) explain the CFTA snapback mechanism and how it works; (2) discuss the NAFTA safeguard mechanism and how it fits in with the NAFTA transitional tariff system; (3) determine the criteria on which U.S. agriculture officials selected certain fruits and vegetables to be safeguarded; and (4) describe the protection that the NAFTA safeguard affords U.S. commercial fruit and vegetable growers. SCOPE AND METHODOLOGY To obtain data on the U.S. government's implementation of the CFTA snapback mechanism and its efficacy, we interviewed officials at the U.S. Department of Agriculture (USDA) and the U.S. Customs Service. In addition, USDA and Customs officials provided information on the process for collecting import price data needed to apply the snapback mechanism. We obtained Canadian government data on their use of the snapback mechanism from the appropriate officials in 'The CFTA snapback tariff provision provides for conditional, temporary tariffs to protect the importing country's domestic growers of fresh fruits and vegetables against surges in unusually low-priced imports. It will expire at the end of 2008. The NAFTA safeguard mechanism also applies to fruits and vegetables but its trigger will be based upon import volume rather than price. GAO/GGD-93-14R CFTA/NAFTA Agricultural Safeguards

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