EO 12889
Effective Date: December 27, 1993

Responsible Office: Office of Policy Coordination and International Relations


     By the authority vested in me as President by the
Constitution and the laws of the United States of America,
including the North American Free Trade Agreement Implementation
Act (Public Law 103-182, 107 Stat. 2057)(the NAFTA Implementation
Act) and section 302 of title 3, United States Code, and in order
to implement the North American Free Trade Agreement (NAFTA), it
is hereby ordered:
     Section 1. Establishment of United States Section of the
NAFTA Secretariat.  Pursuant to section 105(a) of the NAFTA
Implementation Act, a United States section of the NAFTA
Secretariat shall be established within the Department of
Commerce and shall carry out the functions set out in that
     Sec. 2. Acceptance by the President of Panel and Committee
Decisions.  Pursuant to subparagraph 516A(g)(7)(B) of the Tariff
Act of 1930, as amended, 19 U.S.C. 1516a(g)(7)(B), in the event
that the provisions of that subparagraph take effect, 1 accept,
as a whole, all decisions of binational panels and extraordinary
challenge committees.
     Sec. 3. Implementation of Safeguard Provisions for Textile
and Apparel Goods.  Pursuant to section 201 of the NAFTA
Implementation Act, the Committee for the Implementation of
Textile Agreements (the Committee) shall take such action as
necessary to implement the bilateral safeguard provisions (tariff
actions) set out in section 4 of Annex 300-B of the NAFTA.  The
United States Customs Service shall take such actions to carry
out those safeguard provisions as directed by the Secretary of
the Treasury, upon the advice and recommendation of the Chairman
of the Committee.
     Sec. 4. Publication of Proposed Rules regarding Technical
Regulations and Sanitary and Phytosanitary Measures.  (a) In
accordance with Articles 718 and 909 of the NAFTA, each agency
subject to the provisions of the Administrative Procedure Act, as
amended (5 U.S.C. 551 et seq.), shall, in applying section 553 of
title 5, United States Code, with respect to any proposed Federal
technical regulation or any Federal sanitary or phytosanitary
measure of general application, other than a regulation issued
pursuant to section 104(a) of the NAFTA Implementation Act,
publish or serve notice of such regulation or measure not less
than 75 days before the comment due date, except:

          (1)  in the case of a technical regulation relating to
               perishable goods, in which case the agency shall,
               to the greatest extent practicable, publish or
               serve notice at least 30 days prior to adoption of
               such regulation;
          (2)  in the case of a technical regulation, where the
               United States considers it necessary to address an
               urgent problem relating to safety or to protection
               of human, animal or plant life or health, the
               environment or consumers; or
          (3)  in the case of a sanitary or phytosanitary
               measure, where the United States considers it
               necessary to address an urgent problem relating to
               sanitary or phytosanitary protection.
     (b) For purposes of this section, the term "sanitary or 
     phytosanitary measure" shall be defined in accordance with
     section 463 of the Trade Agreements Act of 1979, and
     "technical regulation" shall be defined in accordance with
     section 473 of the Trade Agreements Act of 1979.

     (c) This section supersedes section 1 of Executive Order No.
     12662 of December 31, 1988.

     Sec. 5. Government Procurement Procedures. (a) Waiver.
          (1)  With respect to eligible products (as defined in
               section 381(c) of the NAFTA Implementation Act) of
               Canada and Mexico, and suppliers of such products,
               the application of any law, regulation, procedure,
               or practice regarding Federal Government
               procurement that would,if applied to such products
               or suppliers, result in treatment less favorable
               than the most favorable treatment accorded:
     (A)  to United States products and services and suppliers of
          such products and services; or
     (B)  to eligible products of either Mexico or Canada, shall
          be waived.
     (2)  This waiver shall be applied by all executive agencies
          listed in Annexes 1 and 2 of this Executive order in
          consultation with, and when deemed necessary at the
          direction of, the United States Trade Representative
          (Trade Representative).
     (b) The Secretary of Defense, or his designee, in
     consultation with the Trade Representative, shall be
     responsible for determinations under Article 1018(1),
     pursuant to Annex 1001.1b-1(A)(4), of the NAFTA.  The
     Secretary of Defense, or his designees, and the Trade
     Representative shall establish procedures for his purpose.  

 (c)  The executive agencies listed in Annex 2 are directed 
     to procure eligible products in compliance with the
     procedural provisions of Chapter 10 of the NAFTA.

     (d)  The Trade Representative shall be responsible for 
     calculating and adjusting the threshold as required by
     Article 1001(1)(c) of the NAFTA.

     (e) This order shall apply only to solicitations issued on 
     or after the date of entry into force of the NAFTA for the
     United States.

     (f)  Although regulatory implementation of this order must 
     await revisions to the Federal Acquisitions Regulation
     (FAR), it is expected that agencies listed in Annexes 1 and
     2 of this order will take all appropriate actions in the
     interim to implement those aspects of the order that are not
     dependent upon regulatory revision.

     (g)  Pursuant to section 25 of the Office of Federal
     Procurement Policy Act, as amended (41 U.S.C. 42(a)), the
     Federal Acquisition Regulatory Council shall ensure that the
     policies established herein are incorporated in the FAR
     within 30 days from the date this order is issued.

     Sec. 6. Government Use of Patented Technology. (a) each
agency shall, within 30 days from the date this order is issued,
modify or adopt procedures to ensure compliance with Article
1709(10) of the NAFTA regarding notice when patented technology
is used by or for the Federal Government without a license from
the owner, except that the requirement of Article 1709(10)(b)
regarding reasonable efforts to obtain advance authorization from
the patent owner:
     (1)  is hereby waived for an invention used or manufactured
          by or for the Federal Government, except that the
          patent owner must be notified whenever the agency or
          its contractor, without making a patent search, knows
          or has demonstrable reasonable grounds to know that an
          invention described in and covered by a valid United
          States patent is or will be used or manufactured
          without a license; and
     (2)  is waived whenever a national emergency or other
          circumstances of extreme urgency exists, except that
          the patent owner must be notified as soon as it is
          reasonably practicable to do so.

     (b)  Agencies shall treat the term "remuneration" as used in
     Articles 1709(10)(h) and (j) and 1715 of the NAFTA as
     equivalent to "reasonable and entire compensation" as used
     in section 1498 of title 28, United States Code.

     (c)  In addition to the general provisions of section 7 of 
     this order regarding enforcement rights, nothing in this
     order is intended to suggest that the giving of notice to a
     patent owner under Article 1709(10) of the NAFTA constitutes
     an admission that the Federal Government has infringed a
     valid privately-owned patent.

     Sec. 7. Judicial Review.  This order does not create any
right or benefit, substantive or procedural, enforceable at law
by a party against the United States, it agencies, its officers,
or any person.

     Sec. 8. Effective Date.  This order shall take effect upon
the date of entry into force of the NAFTA for the United States.

                         /s/William J. Clinton

December 27, 1993.

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