ANNEX I
INSTRUCTIONS TO THE NEGOTIATING GROUPS

GENERAL INSTRUCTIONS

1. We instruct the Negotiating Groups to continue working under the general principle that any delegation has the right to present the text proposals it deems relevant for the effective progress of the process, which may eventually be placed in brackets.

Most Ministers recognize that the issues on environment and labour should not be utilized as conditionalities nor subject to disciplines, the non compliance of which can be subject to trade restrictions or sanctions.

2. We instruct the Negotiating Groups that the proposed texts already submitted and future texts should not render ineffective the obligations to be assumed by countries in relation to those substantive issues or areas on the FTAA negotiations agenda.

3. We instruct those Negotiating Groups which are drafting special dispute settlement provisions to submit their proposals to the Negotiating Group on Dispute Settlement in order that the Negotiating Group on Dispute Settlement may consider, in coordination with these Negotiating Groups, the compatibility of the provisions with the rules drafted in this area and present their conclusions to the Trade Negotiations Committee for its consideration, or to the Technical Committee on Institutional Issues, where appropriate.

4. We reiterate to the Negotiating Groups the obligation to consider proposals which ensure the treatment of the differences in the levels of development and size of the economies of the Hemisphere; in particular, the situation of smaller economies, through considerations of proposals submitted by the countries or groups of countries.