Chapter Two

                            General Definitions



Article 201: Definitions of General Application

1.   For purposes of this Agreement, unless otherwise specified:

Commission means the Free Trade Commission established under
Article 2001;

Customs Valuation Code means the Agreement on Implementation of
Article VII of the General Agreement on Tariffs and Trade,
including its interpretative notes;

days means calendar days, including weekends and holidays;

enterprise means any entity constituted or organized under
applicable law, whether or not for profit, and whether privately-
owned or governmentally-owned, including any corporation, trust,
partnership, sole proprietorship, joint venture or other
association;

enterprise of a Party means an enterprise constituted or
organized under the laws of, or principally carrying on its
business in the territory of, a Party;

existing means in effect at the time of entry into force of this
Agreement;

Generally Accepted Accounting Principles means the recognized
consensus or substantial authoritative support in the territory
of a Party with respect to the recording of revenues, expenses,
costs, assets and liabilities, disclosure of information and
preparation of financial statements.  These standards may be
broad guidelines of general application as well as detailed
standards, practices and procedures;

Harmonized System means the Harmonized Commodity Description and
Coding System, and its legal notes, as adopted and implemented by
the Parties in their respective tariff laws;

measure includes any law, regulation, procedure, requirement or
practice;

national means a natural person who is a citizen or permanent
resident of a Party and any other natural person referred to in
Annex 201.1;

originating means qualifying under the rules of origin set out in
Chapter Four (Rules of Origin);

person means a natural person or an enterprise; 

person of a Party means a national, or an enterprise of a Party; 

state enterprise means an enterprise that is owned, or controlled
through ownership interests, by a Party; and

territory means for a Party the territory of that Party as set
out in Annex 201.1.

2.   For purposes of this Agreement, unless otherwise specified,
a reference to province or state includes local governments.

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                                ANNEX 201.1

                       Country-Specific Definitions


For purposes of this Agreement, unless otherwise specified:

national also includes:

     (a) for Mexico, a national or a citizen according to
 Articles 30 and 34, respectively, of the Mexican
 Constitution; and

     (b) for the United States, "national of the United States"
 as defined in the existing provisions of the United
 States Immigration and Nationality Act;

territory means:

     (a) with respect to Canada, the territory to which its
 customs laws apply, including any areas beyond the
 territorial seas of Canada within which, in accordance
 with international law and its domestic laws, Canada
 may exercise rights with respect to the seabed and
 subsoil and their natural resources;

     (b) with respect to Mexico,

     (i) the states of the Federation and the Federal
 District,

     (ii) the islands, including the reefs and keys, in
 adjacent seas,

     (iii) the islands of Guadalupe and Revillagigedo
 situated in the Pacific Ocean,

     (iv) the continental shelf and the submarine shelf of
 such islands, keys and reefs,

     (v) the waters of the territorial seas, in accordance
 with international law and its interior maritime
 waters,

     (vi) the space located above the national territory, in
 accordance with international law,

     (vii) any areas beyond the territorial seas of
 Mexico within which, in accordance with
 international law, including the United
 Nations Convention on the Law of the Sea, and
 its domestic laws, Mexico may exercise rights
 with respect to the seabed and subsoil and
 their natural resources; and

     (c) with respect to the United States,

     (i) the customs territory of the United States, which
 includes the 50 states, the District of Columbia
 and Puerto Rico,

     (ii) the foreign trade zones located in the United
 States and Puerto Rico, and

     (iii) any areas beyond the territorial seas of the
 United States within which, in accordance
 with international law and its domestic laws,
 the United States may exercise rights with
 respect to the seabed and subsoil and their
 natural resources.