Daniel Turp on the Future of Quebec







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DRAFT TREATY OF PARTENERSHIP BETWEEN CANADA AND QUEBEC (DRAFT TREATY ESTABLISHING A CANADIAN UNION)

(Originally published in D. TURP, «Exposé-réponse», Commission on the Political and Constitutional Future of Quebec, Les avis des spécialistes invités à répondre aux huit questions posées par la Commission, Working paper No. 4, pp. 1057-1116, and reprinted in «Options d’avenir politique et constitutionnel du Québec», (1991-92) 7 Revue québécoise de droit international (R.Q.D.I.) 107-116 and in Avant-projet de loi sur la souveraineté du Québec: texte annoté, Cowansville, Éditions Yvon Blais, 1995, pp. 155-176.

DRAFT TREATY ESTABLISHING A CANADIAN UNION

PREAMBLE

The Government of Canada and the Government of Quebec, having resolved

To preserve the unique links of friendship between the two peoples,

To strengthen the unity of their economies and to ensure that they develop harmoniously,

To contribute, through a joint economic and monetary policy, to the gradual reduction of restrictions on international trade and on the development of international trade in goods and services,

To pursue a co-ordinated policy with respect to the economy in order to achieve the most satisfactory level of employment and the highest standard of living consistent with monetary stability in the circumstances,

To ensure economic progress, which is the essential primary object of their Union, and to promote the human and social welfare of their peoples,

To contribute to the harmonious expansion and development of world trade and to participate in efforts focusing on international economic co-operation,

To create a mutually beneficial Economic and Monetary Union between their countries,

Have agreed as follows:

PART 1

FUNDAMENTAL PROVISIONS

Article 1

1. By this Treaty, the High Contracting Parties create an Economic and Monetary Union, hereinafter referred to as the Canadian Union.

2. This Union involves:

(a) the free movement of people, goods, capital and services;

(b) the establishment of a common customs tariff;

(c) the adoption and application of a joint economic and monetary policy;

(d) the development of co-ordinated policies in certain areas of the economy provided for in this Treaty; and

(e) the harmonization of national legislation to the extent that this is required for the operation of the Union.

Article 2

1. The nationals of each of the High Contracting Parties shall be able to enter and leave the territory of the other.

2. While there, they shall receive the same treatment as is accorded to the nationals of the High Contracting Party in question with respect to:

(a) movement, residence and settlement;

(b) carrying on economic and professional activities, including the provision of services;

(c) operations relating to capital;

(d) conditions of employment;

(e) social security benefits; and

(f) taxes and imposts generally of whatever kind.

Article 3

1. The movement of goods, regardless of their origin, source or destination, between the territories of the High Contracting Parties shall be exempt from any collection of import or export or excise duties as well as any other taxes, royalties, imposts, levies or charges generally of whatever kind.

2. It shall also be exempt from all prohibitions or economic hindrances, especially those relating to quantitative, qualitative or exchange restrictions.

3. Goods originating on the territory of either of the High Contracting Parties shall enjoy the same treatment on the territory of the other Contracting Parties as is accorded to the domestically produced goods on the territory of the other Contacting Party.

Article 4

The movement of capital between the territories of the High Contracting Parties shall be exempt from any prohibitions or hindrances.

Article 5

1. The movement of services between the territories of the High Contracting Parties shall be exempt from the imposition of any taxes, imposts, royalties, levies or charges generally of whatever kind.

2. It shall also be exempt from any prohibitions or hindrances of an economic nature, in particular quantitative, qualitative or exchange restrictions.

Article 6

Without prejudice to the provisions of articles 2 to 5 inclusive of this Treaty, the High Contracting Parties shall ensure that no provisions of the legislation or regulations or any other provision of public law, especially those relating to health, unduly impedes free movement.

Article 7

1. The High Contracting Parties shall refrain from introducing customs duties on imports and exports of goods between them or any taxes that have an equivalent effect.

2. The High Contracting Parties shall establish a joint customs tariff between them and the Ministerial Committee shall be given responsibility for applying this joint customs tariff.

Article 8

1. With respect to goods moving from or to third States, import and export duties as well as all other taxes, imposts, or levies generally of whatever kind to be collected at the time of importation, exportation or transit, shall be subject to joint tariffs involving the same rates and the rules governing the collection thereof shall be co-ordinated.

2. The system of licences and quotas for imports, exports and transit of goods shall be the same.

3. The High Contracting Parties shall co-ordinate the provisions of their legislation and regulations and the other provisions of public law of an economic or financial nature not covered by paragraphs 1 and 2 of this Article relating to imports, exports and transit of goods.

Article 10

The High Contracting Parties shall pursue a co-ordinated economic policy in close mutual consultation. In particular, they shall develop co-ordinated policies with respect to investments, agriculture, fisheries and transport.

Article 11

1. The High Contracting Parties shall co-ordinate their policies with respect to private agreements relating to economic co-operation as well as to the abuses resulting from a dominant market position held by one or more companies; they shall take appropriate measures in order to remedy any abuses of economic power.

2. The High Contracting Parties shall jointly ensure that no provision of the legislation or regulations or any other provision of public law distorts the conditions governing competition on their territories.

Article 12

To the extent that the attitudes to be taken and the commitments to be made, both in relations with third States and with respect to or within the framework of international conferences and organizations, affect the objectives of the Union, the High Contracting Parties shall consult each other so as to ensure that these attitudes and commitments promote the attainment of these objectives.

Article 13

Where the vital interests of one of the High Contracting Parties are threatened, the Ministerial Committee may determine which measures may be taken notwithstanding the provisions of this Treaty during a period, the length of which it shall determine at the same time.

Article 14

1. The High Contracting Parties shall take all general and specific measures in order to ensure the performance of the obligations resulting from this Treaty or arising from the actions of the institutions of the Union. They shall facilitate the performance of the Union’s mission.

2. The High Contracting Parties shall refrain from any measures likely to jeopardize the achievement of the objectives and goals of this Treaty.

PART 2

THE INSTITUTIONS OF THE UNION

Article 15

The institutions of the Union shall be:

a. the Parliamentary Conference;

b. the Ministerial Committee;

c. the Administrative Secretariat;

d. the Monetary Authority; and

e. the Arbitral Court.

Chapter 1

THE PARLIAMENTARY CONFERENCE

Article 16

1. A Parliamentary Conference, hereinafter referred to as the Conferenceî shall be established.

2. The Conference shall consist of 112 members, of whom 56 shall be selected and designated by the members of the Parliament of Canada and 56 shall be selected and designated by the Parliament of Quebec.

Article 17

1. The Conference shall hold an annual meeting.

2. The Conference may hold an extraordinary meeting whenever the Governments of Canada and Quebec jointly express a desire for such a meeting or at the request of a majority of its members.

Article 18

1. The Conference shall meet in public session to discuss the report on the State of the Union that shall be submitted to it by the Ministerial Committee.

2. The Conference may deliberate and submit opinions and make recommendations on the subjects covered by this Treaty to the joint institutions of the Union and to the Governments and Parliaments of Canada and Quebec.

Article 19

1. The Governments of Canada and Quebec may, by joint agreement, consult the Conference on questions that are directly related to the implementation and operations of the Union or on other questions of common interest.

2. By joint agreement with the Governments of Canada and Quebec, the Conference may deliberate, express opinions and make recommendations on questions that are directly related to the implementation and operations of the Economic and Monetary Union and on any other questions of common interest.

Article 20

The opinions and recommendations of the Conference shall be adopted by a majority of the votes cast.

Article 21

1. The Conference shall decide on its standing orders by majority vote of the members of the Conference.

2. The Standing Orders shall prescribe the method of appointing the Chair of the Conference and shall also provide that each annual session shall be chaired alternately by a member of the Parliament of Canada and a member of the Parliament of Quebec. It shall also prescribe methods of appointing the Clerk of the Conference and provide that the Clerk shall be of Canadian nationality when the Conference is chaired by a Quebec parliamentarian and of Quebec nationality when the Conference is chaired by a Canadian parliamentarian.

3. The Standing Orders shall also set out the rules governing the creation of standing and special committees within the Conference.

Chapter 2

THE MINISTERIAL COMMITTEE

Article 22

A Ministerial Committee, hereinafter referred to as the Committee, shall be established.

Article 23

1. The Committee shall ensure that the provisions of this Treaty are applied and that the objectives set out in this Treaty are attained.

2. The Committee shall decide on the measures required for this purpose subject to the conditions laid down in this Treaty.

3. The Committee shall ensure that the economic policies of the High Contracting Parties are co-ordinated.

4. The Committee shall also prepare an annual report on the State of the Union which it shall submit to the Parliamentary Conference.

Article 24

1. Each member of the Committee shall have one vote. Abstention by a member shall not have any effect on to the validity of a decision.

2. Subject to the other provisions of this Treaty, the deliberations of the Committee shall be adopted if they obtain not fewer than nine votes.

3. Deliberations on the matters provided for in Articles 2(a) to (c) of this Treaty shall be adopted unanimously.

Article 25

1. In order to carry out the mandates conferred on it, the Committee may:

(a) make regulations, directives or decisions to determine how the provisions of this Treaty shall be implemented under the conditions laid down in these provisions;

(b) issue opinions and make recommendations relating to the operations of the Union;

(c) give instructions to the Administrative Secretariat of the Union; and

(d) conclude agreements which shall be submitted to the High Contracting Parties for implementation in accordance with the constitutional rules of each of the High Contracting Parties.

2. In order to carry out its mandates and subject to the conditions included in this Treaty, the Committee shall make regulations, directives and decisions, adopt instructions, make recommendations or express opinions.

3. The regulations made shall be general in scope and be binding in every respect. They shall be directly applicable by the High Contracting Parties. The directives shall be binding on the High Contracting Parties with respect to the results to be attained while the national authorities shall retain jurisdiction over the form and means of implementation. The decisions shall be binding in every respect for the parties designated therein. The instructions shall be binding for the Secretariat. Recommendations and opinions shall not be binding.

Article 26

1. The Committee shall meet at least once in each month. In an emergency, it shall meet at the request of the Government of one of the High Contracting Parties.

2. The meetings of the Committee shall be chaired for a period of six months alternately by the Canadian and the Quebec Minister responsible for Union Affairs in turn, regardless of the location of the meeting.

Article 27

1. The Committee may create committees, task forces and groups of experts to which it may delegate some of its powers. These committees, task forces and groups of experts shall consist of members of the Committee, other members of the Government of each of the High Contracting Parties or members of the Administrative Secretariat of the Union.

2. The Committee may establish Services to assist in the operations of the Union; it shall determine the authority, organizational conditions and functions of these Services.

Article 28

The Committee shall decide on its own internal regulations.

Chapter 3

THE ADMINISTRATIVE SECRETARIAT

Article 29

1. A Secretary and an Assistant Secretary shall be responsible for the management of the Administrative Secretariat (hereinafter referred to as the Secretariat)

2. The office of Secretary shall be occupied by a government official of Canadian nationality when the Committee is chaired by the Quebec Minister responsible for Union Affairs and the office of Assistant Secretary shall be occupied by a government official of Quebec nationality. The office of Secretary shall be occupied by a government official of Quebec nationality when the Committee is chaired by the Canadian Minister responsible for Union Affairs and the office of Assistant Secretary shall be occupied by a government official of Canadian nationality.

3. The Ministerial Committee shall appoint and dismiss the Secretary and the Assistant Secretary. It shall also determine the scales of their salaries, pensions and other indemnities as well as any conditions applying to the performance of their duties.

Article 30

1. The members of the staff of the Secretariat of the Union shall be of Canadian or Quebec nationality.

2. The Secretary shall appoint and dismiss the members of the Secretariat staff in accordance with the rules provided for in paragraph 3 of this Article.

3. The rules governing staff, the organizational framework, the scales of salaries, pensions and other indemnities as well as any other conditions in which the members of the staff will be required to perform their duties shall be determined by the Ministerial Committee on the proposal of the Secretary.

Article 31

1. The Secretary shall provide secretarial services to the Ministerial Committee, its committees, task forces and groups of experts.

2. The Secretary shall be responsible for co-ordinating the activities of these institutions from an administrative viewpoint and establishing, where necessary, the required links and making any suggestions relevant to the implementation of this Treaty in light of the jurisdiction of the other institutions of the Union. The services of the Registrar of the Court of Arbitration shall be provided by the Secretary.

3. The Ministerial Committee may assign other duties to the Secretary.

Article 32

1. The Secretary shall prepare the draft annual budget of the institutions of the Union and submit it for the approval of the Ministerial Committee.

2. The High Contracting Parties shall conclude agreements to determine:

(a) control over the implementation of the budgets;

(b) approval of the accounts;

(c) the making of the necessary advances; and

(d) the allocation between the High Contracting parties of any excesses of expenditures over revenues.

Article 33

The records of the Secretariat shall not be the subject of any criminal prosecutions.

Article 34

The Secretary and the Assistant Secretary shall enjoy privileges and immunities in Canada and in Quebec similar to those enjoyed by the head of a diplomatic mission accredited to those countries. The sovereign immunity may, where appropriate, be cancelled by the Ministerial Committee.

Chapter 4

THE MONETARY AUTHORITY

Article 35

1. A Monetary Authority, hereinafter referred to as the Authority, shall be established.

2. The Authority shall be governed by a Board of Directors consisting of twelve members appointed by the Committee. Eight members shall be appointed by the Government of Canada and four members shall be appointed by the Government of Quebec. The Governors of the Bank of Canada and the Bank of Quebec, as well as the Deputy Ministers of Finance of Canada and Quebec shall be members on the Board, although their votes shall be solely consultative in nature.

3. The Governor and the Deputy Governor of the Authority shall be appointed from among the directors, with the Ministerial Committee’s approval. The Governor shall be appointed from among the Quebec members of the Board of Directors and the Deputy Governor from among the Canadian members of the Board of Directors. The Governor and the Deputy Governor shall be appointed for a mandate of four years and may not be removed from office.

Article 36

1. The share capital of the Authority shall be fifteen million dollars. This may be increased with the approval of the Ministerial Committee.

2. The share capital shall be divided into one hundred and three thousand shares with a par value of fifteen dollars each, of which two hundred thousand shall be issued and allocated to the Minister of Finance of Canada and one hundred million shall be issued and allocated to the Minister of Finance of Quebec.

Article 37

For the purposes of implementing the monetary policy decided on by the High Contracting Parties pursuant to Article 11 of this Treaty, the Authority shall have the power to make decisions for the purpose of:

(a) administering the monetary system;

(b) controlling the issuance and circulation of the single currency;

(c) supervising and regulating credit;

(d) assuming responsibility for the conservation and administration of the Union’s international monetary reserves; and

(e) exercising any other power that may be conferred on it by the Ministerial Committee.

Article 38

1. The Ministerial Committee, the Governor and the Deputy Governor shall consult one another regularly concerning the monetary policy and its relationship with the policies of the Union.

2. Where there is a difference of opinion concerning the monetary policy to be applied, the Ministerial Committee may, following consultation with the Governor and the Deputy Governor, provide the Board of Directors with specific binding instructions in writing for the Authority concerning the monetary policy to be applied during a specific period.

Article 39

1. Each member of the Board of Directors of the Authority shall have one vote. Abstention by a member shall not in any way affect the validity of a decision.

2. Subject to the provisions of this Treaty, the deliberations of the Board of Directors of the Authority shall be valid if not fewer than nine votes are cast in favour of them.

Article 40

1. The Board of Directors of the Authority shall meet at least once a month. In an emergency, it shall meet at the request of the Governor or of the Ministerial Committee.

2. The meetings of the Board of Directors of the Authority shall be chaired by the Governor.

Article 41

The Authority may establish a management committee, committees, task forces and groups of experts to which it may delegate some of its powers.

Article 42

1. The provisions of this Treaty shall be supplemented by the adoption of by-laws of the Authority by the Ministerial Committee.

2. The Board of Directors shall adopt the administrative by-laws required to implement the provisions of this Treaty and its By-laws and for the proper operation of the Authority.

Article 43

Within Canada and Quebec, the Governor and the Deputy Governor of the Authority shall enjoy privileges and immunities similar to those granted to the head of a diplomatic mission accredited to these countries. Where appropriate, sovereign immunity may be cancelled by the Ministerial Committee.

Chapter 5

THE ARBITRAL COURT

Article 45

1. An Arbitral Court, hereinafter referred to as the Court shall be established.

2. The Court shall ensure compliance with the law in the application and interpretation of this Treaty and the subsidiary acts adopted by the Ministerial Committee, the Administrative Secretariat and the Monetary Authority.

Article 45

1. The Court shall consist of twelve arbitrators. Each of the High Contracting Parties shall appoint six arbitrators from among individuals who present every guarantee of independence and who meet the conditions required for the exercise in their respective States of the highest judicial functions. The term of office of the arbitrators shall extend for four years.

2. The arbitrators shall appoint from among their number persons who shall act as the President and the Vice-President of the Court for four years. The President shall be appointed from among the Canadian members of the Court and the Vice-President shall be appointed from among the Quebec members.

3. The Court shall sit in plenary session. However, the Court may create separate chambers within itself, each of which shall consist of three judges, in order to proceed either to hear certain cases or to decide on certain types of cases under conditions provided for in a by-law to this effect.-

Article 46

1. Where it is not possible to resolve a dispute within the Ministerial Committee, the Court shall hear the dispute, either at the joint request of the High Contracting Parties or at the unilateral request of either of them.

2. When the Court hears a dispute, the parties shall refrain from any act likely to impede the resolution of the dispute or to exacerbate it.

Article 47

1. The Court shall render its decisions in accordance with the law. Before issuing its award, it may propose an out-of-court settlement of the dispute for the approval of the parties.

2. If the Court finds that a High Contracting Party has breached one of its obligations under this Treaty or the subsidiary acts of the institutions of the Union, the High Contracting Party in question shall be required to take measures to enforce the award of the Court.

Article 48

1. The awards and proposed out-of court settlements shall be adopted by a majority of the votes in the Court. Where there is a tied vote, the President shall have a casting vote. The awards are final and shall not be subject to appeal. Out-of-court settlements accepted by the parties shall have the same effect as awards.

2. Subject to any provisions to the contrary, the Court of Arbitration may, when it has obtained sufficient information, prescribe any measures to conserve property that it considers necessary.

Article 49

1. The Court shall monitor the legality of the acts of the Conference of Parliamentarian Conference, the Ministerial Committee and the Administrative Secretariat. To this end, it shall have jurisdiction to render decisions on applications for lack of jurisdiction, violation of substantive forms, violations of this Treaty or the subsidiary acts of the institutions or abuse of power brought by a High Contracting Party.

2. Any physical or legal person may bring an application subject to the same conditions against decisions affecting him, her or it and against the decisions that, although they may appear to have been made in order to apply to another person, nevertheless concern this physical or legal person directly and individually.

3.If the application is justified, the Court of Arbitration shall declare the impugned action to be null and void.

Article 50

1. The Court shall have jurisdiction to rule on an interlocutory basis

(a) on the interpretation of this treaty; and

(b) on the validity and interpretations of the actions of the institutions of the Union.

2. Where such an issue arises within a tribunal of one of the High Contracting Parties, this tribunal l may, if it feels that a decision on this issue is required for it to render a decision, ask the Court to rule on the issue.

Article 51

1. The Ministerial Committee may ask the Court for its advisory opinion on questions of law concerning the provisions of this Treaty and the subsidiary acts of the institutions of the Union.

2. The opinions shall be based on a majority vote of the members of the Court. Where the number of votes cast is equal, the president shall have a casting vote..

Article 52

1. The By-laws of the Court shall be determined by decision of the Ministerial Committee.

2. The Court shall draft its rules of procedure and these rules shall be submitted to the Ministerial Committee for approval.

PART 3

SPECIFIC PROVISIONS RELATING TO CERTAIN ASPECTS OF THE UNION

Chapter 1

NATIONAL TREATMENT, FREE MOVEMENT AND THE

PERFORMANCE OF PROFESSIONAL AND ECONOMIC ACTIVITIES

Article 53

The conditions governing the entry to, leaving of, movement or staying on, settlement in and removal from the territory of one of the High Contracting Parties of nationals of another High Contracting Party in the interests of public order, security, public heath or morality shall be determined by treaty between the High Contracting Parties.

Article 54

The treatment of nationals of one of the High Contracting Parties on the territory of another High Contracting Party with respect to the legal or judicial protection of their persons, their rights and their interests shall be determined, as far as is necessary, by treaty between the High Contracting Parties.

Article 55

1. When the operations of corporations created in accordance with the legislation of a High Contracting Party are carried out on the territory of another Contracting Party, either directly or through subsidiaries or agencies, they shall be subject to the law of the latter Contracting Party.

2. These operations may not be subject to conditions that are more onerous than those applied to national corporations. However, on the territory of a High Contracting Party, the corporations of another Contracting Party may not have more rights than a national corporation of a similar kind.

3. In this Article, corporations means corporations under civil or commercial law, including co-operative corporations and other legal persons created under private law.

Article 56

1. Corporations established in accordance with the legislation of a High Contracting Party which have their domicile for taxation purposes on the territory of one of the High Contracting Parties, whether or not these corporations have one or more subsidiaries or agencies there, shall not be subject to a greater burden of taxation than is imposed on similar national corporations on the territory of the other Contracting Parties.

2. Corporations within the meaning of paragraph 1 of this Article are defined in Article 46 of this Treaty.

Article 57

The treatment of the nationals of the High Contracting Parties with respect to the holding of paid employment with a private employer and social security benefits shall be determined by treaty between the High Contracting Parties.

Article 58

1. Notwithstanding subparagraph (b) of paragraph 2 of Article 2 of this Treaty, each of the High Contracting Parties shall retain the right to restrict the carrying on of the following economic and professional activities solely to its nationals:

(a) public offices, charges or employment;

(b) the offices of advocate, notary or bailiff;

(c) the medical and paramedical professions; and

(d) other offices, charges and professions agreed to by the High Contracting Parties.

2. The provisions of subparagraph (b) of paragraph 2 of Article 2 of this Treaty shall not effect any changes in the provisions of national legislation relating to the diplomas required to practise certain professions.

Article 59

1. With respect to public contracts, no discrimination in any form whatsoever may be applied by the public authorities of one High Contracting Party in favour of its own national products or nationals to the detriment of the products or nationals of the other Contracting Party.

2. With respect to the application of paragraph 1, public contracts means all awards of work and all purchases of goods by the public authorities for their own needs, regardless of how the order is approved and placed.

3. With respect to the application of paragraph 1, public authorities means:

(a) the government departments and the corporations of either of the High Contracting Parties;

(b) the territorial, political and administrative sub-divisions of either of the Contracting Parties.

Chapter 2

CO-ORDINATION OF POLICIES OF THE UNION

Article 60

1. In the area of investments, the Ministerial Committee shall decide on the appropriateness of adopting general or specific objectives for a co-ordinated policy on investments applicable either to the whole economy or to one or more sectors of the economy.

2. Where it establishes such objectives, the Ministerial Committee shall at the same time determine the methods to be used in order to implement the joint policy; these methods may involve harmonization of the legislation governing investments.

Article 61

In the area of agriculture and fisheries, the High Contracting Parties agree:

(a) to encourage systematically technical progress;

(b) to take measures likely to harmonize the production and sale of agricultural and fisheries products, to ensure that farmers and fishers as well as the workers in agriculture and fisheries in the High Contracting Parties have a secure existence in well managed companies that are justified from the economic and social points of view and to develop productivity and maintain the cost price of agricultural products as low as possible in order to be able as far as possible to meet domestic needs and to acquire as strong a position as possible on foreign markets.

Article 62

Where one of the High Contracting Parties finds that a situation is developing in a sector of agriculture or fisheries that raises fears to the effect that a serious crisis is impending, the Ministerial Committee may make decisions designed to avoid such a crisis situation from occurring or to remedy any crisis that does arise. These decisions may derogate temporarily from the provisions of this Treaty.

Article 63

In the field of transportation, the co-ordinated policy shall be based on the following basic principles:

(a) the harmonization of the conditions of competition between the various domestic modes of transportation on the territory of each of the High Contracting Parties in exchange for the abolition of the charges imposed and the benefits granted to the transportation companies;

(b) the profitability of public and private transportation companies.

Article 64

The High Contracting Parties agree to focus their co-ordinated policy in such a way as to ensure that harmonious development of and active co-operation between their maritime ports.

Article 65

In the field of social policy, the High Contracting Parties shall pursue, in consultation with professional organizations, a co-ordinated policy designed to promote the development of social progress and the creation of appropriate social provisions in the legislation designed to ensure their peoples a maximum amount of protection and social security.

Chapter 3

ECONOMIC AND FINANCIAL RELATIONS WITH FOREIGN COUNTRIES

Article 66

1. The Ministerial Committee shall determine the joint trade policy to be applied in economic relations with third States and shall decide on the conditions governing the implementation of this policy.

2. In particular, it shall determine joint import and export quotas.

Article 67

The High Contracting Parties shall consult each other concerning the measures they propose to take in order to promote exports. They shall jointly ensure that these measures do not distort the conditions governing competition between goods from their territories in foreign markets.

Article 68

1. The High Contracting Parties shall mutually assist each other in the enforcement of the provisions of their legislation and regulations governing imports, exports and the transit of goods as well as the related payments and with respect to the prevention and suppression of offences.

2. The conditions governing the application of the provisions of paragraph 1 of this Article shall be set out in treaties between the High Contracting Parties.

Chapter 4

CUSTOMS AND TAXATION QUESTIONS

Article 69

1. Import and excise duties and all other taxes, imposts and levies generally that are collected when goods are imported, exported or in transit shall be determined by the Ministerial Committee or by multilateral treaties to which the High Contracting Parties are parties.

2. The conditions governing the collection of the taxes referred to in paragraph 1 of this Article shall be determined at the same time as the joint customs tariff.

Article 70

With respect to taxation, a system shall be created that provides for the free movement provided for in Articles 3 to 5 of this Treaty.

Article 71

1, The High Contracting Parties shall mutually assist each other in every respect concerning the collection and recovery of duties, imposts, taxes and levies referred to in this Treaty as well as the prevention and suppression of offences.

2. The conditions governing the implementations of the provisions of paragraph 1 of this Article shall be determined by the Ministerial Committee.

Article 72

The High Contracting Parties shall take the necessary measures to ensure that the proceeds of the duties, taxes, imposts or levies referred to in the articles of this Treaty is received by the Party entitled to receive it.

Chapter 5

FREE MOVEMENT OF TRANSPORTATION SERVICES

Article 73

The conditions governing the admission of nationals of the High Contracting Parties who are not established on the territory in which they wish to provide services to the national systems of transportation by road or by navigable waterway shall be determined by the Ministerial Committee.

Article 74

1. The carriage by road of goods and the irregular carriage by road of passengers between the territories of the High Contracting Parties shall be subject to joint rules of enforcement and control determined by the Ministerial Committee. In order to promote the harmonious development of the said carriage of goods, the Committee shall also decide on all appropriate measures, especially with respect to the determination of prices.

2. The system of regular carriage of passengers by road between the territories of the High Contracting Parties shall be determined by the Ministerial Committee.

Article 75

1. In the case of international carriage by road, except for the irregular carriage of passengers travelling from the territory of a High Contracting Party to a third State, the Ministerial Committee shall determine the conditions governing the eligibility of nationals of the High Contracting Parties who have not settled on the territory of the High Contracting Party in question.

2. With respect to the irregular carriage of passengers by road from the territory of one of the High Contracting Parties to a third State, the Ministerial Committee shall determine the rules governing the provision and control of the said carriage.

Article 76

In the case of carriage by road or by navigable waterway provided by the nationals of the High Contracting Parties, each of the High Contracting Parties shall ensure that persons who are not established on its territory enjoy a system that is at least as favourable as that provided to persons who are established there when this Treaty comes into force.

Article 77

In the case of carriage by air, each of the High Contracting Parties shall, without prejudice to the provisions of Article 5 of this Treaty, a liberal policy for the award to the other Contracting Parties of commercial air rights for the purpose of operating regular international air services across or within its territory.

PART 4

GENERAL AND FINAL PROVISIONS

Article 79

1. The Union shall enjoy the immunities that foreign States are recognized as having on the territory of each of the High Contracting Parties.

2. To the extent that national civic organizations are recognized as enjoying such rights, the Union shall enjoy on the territory of each of the High Contracting Parties the necessary legal capacity to perform its functions and to achieve its goals; in particular, it may acquire and dispose of immovable and movable property and bring court actions. The Union shall be represented for this purpose by the Secretary.

Article 80

The Head Offices of the institutions of the Union shall be determined by joint agreement of the governments of the High Contracting Parties.

Article 81

English and French shall be the official languages of the institutions of the Union.

Article 82

1. Where the provisions of the Treaty require the conclusion of agreements relating to customs tariffs, trade or currency, these agreements shall be negotiated by a joint delegation consisting of representatives of the Union and of the High Contracting Parties.

2. The Ministerial Committee shall determine the membership of the delegation, appoint its Chair and provide the instructions to be followed by the joint delegation. The Chair shall be accountable to the Ministerial Committee for the negotiations.

3. The agreements that are negotiated and adopted shall be signed by a representative of the Union and the representatives of the High Contracting Parties and shall require ratification in accordance with their respective constitutional procedures by the High Contracting Parties.

4. The agreements concluded under the conditions set out above shall be binding on the institutions of the Union and of the High Contracting Parties.

Article 83

1. The Ministerial Committee shall be responsible for ensuring that appropriate relations are made with the United Nations Organization, the specialized institutions of the United Nations, the organs of the World Trade Organization and the Organization for Economic Co-operation and Development as well as with other appropriate international institutions and conferences.

2. The Ministerial Committee shall establish the rules permitting the Monetary Authority to represent the Union in the International Monetary Fund, the International Authority for Reconstruction and Development and other appropriate international institutions.

3. With the consent of the High Contracting Parties, the Ministerial Committee may establish missions of the Union to international organizations.

Article 84

1. The provisions of this Treaty shall not constitute an impediment to the existence of the free trade area created by the North American Free Trade Agreement.

2. The Union shall succeed to the rights and obligations of Canada under the North American Free Trade Agreement and the Ministerial Committee of the Union shall be authorized to implement this Agreement on behalf of the governments of Canada and Quebec.

Article 85

This Treaty shall not constitute an impediment to the conclusion by either of the High Contracting Parties of association agreements with third States, a Union of states or an international organization.

Article 86

1. This Treaty may be amended at any time by unanimous agreement between the High Contracting Parties, subject to ratification.

2. An amendment adopted pursuant to the first paragraph shall take effect when the instruments of ratification are exchanged.

Article 87

The protocols that, by joint agreement of the High Contracting Parties, shall be attached to this Treaty, shall form an integral part of this Treaty.

Article 88

1. This Treaty is concluded for a period of ten years.

2. If, on expiry of a period of five years from the coming into force of this Treaty, one of the High Contracting Parties so requests in a communication sent to the Secretary of the Ministerial Committee, a conference of the High Contracting Parties shall be scheduled as soon as possible in order to review the general operations of the Treaty.

3. Any amendment or change to this Treaty that is approved at such a conference, shall be adopted in accordance with the procedure provided for in Article 87.

Article 89

1. This treaty shall be subject to ratification by the Governments of Canada and Quebec.

2. This Treaty shall enter into force on the first day of the third month following the exchange of the instruments of ratification.

IN WITNESS WHEREOF the Plenipotentiaries have signed this Treaty and have affixed their seals hereto.

DONE in two copies, in the English and the French languages, both versions being equally authentic.

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