36 



The Chairman. Mr. Ambassador, one of the questions that has 

 come up is the question of customs and the rule of origin part of 

 the NAFTA. I know you have a customs working group estabhshed, 

 or to be estabhshed, among the three countries. 



My question is, under this agreement, will U.S. Customs be able 

 to monitor within the other countries for compliance with rules of 

 origin or other areas related to customs? 



Ambassador Kantor. Our rule of origin law that we have 

 reached in the NAFTA itself is very strict. We will be able to mon- 

 itor them. We don't want Mexico to become a platform for goods 

 that are from non-NAFTA countries. 



Let me just say, to give some credit where credit is due, this was 

 well negotiated in this agreement by not only the staff but my 

 predecessor, and I think we are well protected in that area. 



The Chairman. You will be able to monitor in-country, if nec- 

 essary? 



Ambassador Kantor. Yes. We have in-country audits as well, of 

 course, as the normal procedures. 



The Chairman. That will allay some fears, some of the concerns 

 expressed by members. 



Mr. Lewis, we are still on the beginning round, the 3-minute 

 question period. 



The gentleman from Florida. 



Mr. Lewis. Thank you, Mr. Chairman. 



Mr. Chairman, I have a written statement for which I would like 

 to ask unanimous consent to place in the record. 



The Chairman. That consent has already been granted. Any 

 member may submit for the record any statement that they have. 



Mr. Lewis. I may have a series of written questions that I would 

 like the Ambassador to respond to my office in writing. 



Mr. Lewis. From where I sit, Mr. Ambassador, momentum for 

 the NAFTA is not at full throttle. I am aware that the situation 

 has yet to fully unfold in terms of total negotiations and side agree- 

 ments and so forth. 



But we have a problem, some big problems, that we're concerned 

 about. You received a letter from the Florida delegation; I hope you 

 would respond to those concerns. We are looking at major labor 

 problems. We notice that only one environmental group, the Flor- 

 ida Wildlife Federation, has signed off on NAFTA. More groups are 

 jumping off ship than are jumping on board. From our observation 

 we see that the "Donahue Show" is one show that is educating 

 about NAFTA. 



We have a serious concern with commodity markets, with sugar, 

 citrus fruits, and vegetables. They are too volatile and react with 

 too much speed to be adequately addressed with a volume-based 

 safeguard mechanism. We are concerned about transshipments as 

 well. We need to address these issues in a side agreement. 



How do you feel we are going to be able to meet these respon- 

 sibilities with the tariff quota situation? Or better, I should say, 

 how will it be quicker to track based on volume rather than price? 



Ambassador Kantor. Let me take it three ways if I might, Mr. 

 Lewis. I appreciate your question. 



One is on the transshipment issue. Hopefully, the tough rules of 

 origin, with the ability audit, as the chairman and I were just talk- 



