At the beginning of the transitional period, the Joint Sectoral Group will establish a joint confidence building program calculated to provide sufficient evidence of the capabilities of the designated conformity assessment bodies (CAB's) to perform quality system or product evaluations to the specifications of the parties.

The joint confidence building program should include the following actions and activities:

Seminars designed to inform the parties and CAB's about each party's regulatory system, procedures, and requirements;

Workshops designed to provide the parties with information regarding requirements and procedures for the designation and surveillance of CAB's;

Exchange of information about reports prepared during the transition period;

Joint training exercises; and

Observed inspections.

During the transition period, any significant problem that is identified with a CAB may be the subject of cooperative activities, as resources allow and as agreed to by the regulatory authorities, aimed at resolving the problem.

Both parties will exercise good faith efforts to complete the confidence building activities as expeditiously as possible to the extent that the resources of the parties allow.

Both the parties will each prepare annual progress reports which will describe the confidence building activities undertaken during each year of the transition period. The form and content of the reports will be determined by the parties through the Joint Sectoral Committee.