This paper presents a new method of evaluation for generation and parsing components of transfer-based MT systems where the transfer rules have been automatically
acquired from parsed sentence-aligned bitext corpora. The method provides a means of quantifying the upper bound imposed on the MT system by the quality of the parsing
and generation technologies for the target language. We include experiments to calculate this upper bound for both handcrafted and automatically induced parsing and generation technologies currently in use by transfer-based MT systems