ANNEX I 1. The Schedule of a Party sets out the reservations taken by that Party, pursuant to Articles 1108(1) and 1206(2), with respect to existing, non-conforming measures that derogate from an obligation relating to: (a) national treatment, pursuant to Article 1102 (Investment) or 1202 (Services); (b) most-favored-nation treatment, pursuant to Article 1103 (Investment) or 1203 (Services); (c) local presence, pursuant to Article 1205 (Services); (d) performance requirements, pursuant to Article 1106 (Investment); or (e) nationality requirements for senior management or members of boards of directors, pursuant to Article 1107 (Investment). 2. Each reservation sets out the following elements (ftnt 1): (a) SECTOR refers to the general sector in which the reservation is taken; (b) SUB-SECTOR refers to the specific sector in which the reservation is taken; (c) INDUSTRY CLASSIFICATION refers to the activity, where applicable, covered by the reservation according to domestic industry classification codes; (d) TYPE OF RESERVATION specifies the obligation referred to in paragraph 1 for which a reservation is taken; (e) LEVEL OF GOVERNMENT indicates the level of government maintaining the measure for which the Party is taking the reservation; (f) LEGAL CITATION identifies the specific existing measures, where applicable, for which the reservation is taken; (ftnt 2) (g) DESCRIPTION describes the non-conforming aspects of the existing measures for which the reservation is taken and, where applicable, commitments for liberalization upon entry into force of this Agreement; and (h) DURATION sets out the period for which the reservation is taken and the phase-in of commitments for liberalization. 3. In the interpretation of a reservation, all elements of the reservation should be considered. Where the DURATION does not provide for liberalization, the LEGAL CITATION shall govern to the extent of any inconsistency with any other element. Where the DURATION provides for liberalization upon or after entry into force of this Agreement, the DURATION shall govern to the extent of any inconsistency with any other element. 4. Where a Party maintains a measure that requires that a service provider be a citizen, permanent resident or resident of its territory as a condition to the provision of a service in its territory, a reservation for Articles 1202, 1203 or 1205 taken with respect to that measure shall operate as a reservation for Articles 1102 or 1103 with respect to the effect of that measure on the ability of the service provider to establish an investment. 5. For purposes of this Annex: CMAP means Clasificaci¢n Mexicana de Actividades y Productos; concession means an authorization provided by the State to a person to exploit a natural resource or provide a service, for which Mexican nationals and Mexican enterprises are granted priority over foreigners; CPC means Central Product Classification numbers as set out in Statistical Office of the United Nations, Statistical Papers, Series M, No. 77, Provisional Central Product Classification, 1991; foreigners' exclusion clause means the express provision in an enterprise's by-laws, stating that the enterprise shall not allow foreigners, directly or indirectly, to become partners or shareholders of the enterprise; international cargo means goods that have an origin or destination outside the territory of a Party; Mexican enterprise means an enterprise constituted under the laws of Mexico; Mexican national means a national of Mexico, as defined by the Constitution of Mexico; person of a Party means a national or an enterprise of a Party; and SIC means: (a) with respect to Canada, Standard Industrial Classification (SIC) numbers as set out in Statistics Canada, Standard Industrial Classification, fourth edition, 1980; and (b) with respect to the United States, Standard Industrial Classification (SIC) numbers as set out in the United States Office of Management and Budget, Standard Industrial Classification Manual, 1987. FOOTNOTE 1: The reservations are current as of September 5, 1992. The three delegations understand that where a Party adopts liberalizing measures prior to the date of entry into force of this Agreement, such measures will be considered to be existing measures. FOOTNOTE 2: The three delegations are considering the need for inclusion of language to the effect that measures set out in the LEGAL CITATION shall be deemed to include existing administrative decisions, interpretations and practices pursuant to the measure cited. ANNEX I Schedule of the United States SECTOR: Energy SUB-SECTOR: Atomic Energy INDUSTRY CLASSIFICATION: Not Applicable TYPE OF RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Atomic Energy Act of 1954, 42 U.S.C. 2133-2134 DESCRIPTION: Investment A license is required for any person in the United States to transfer, manufacture, produce, use or import any facilities that produce or use nuclear materials. Such license may not be issued to any entity known or believed to be owned, controlled or dominated by an alien, a foreign corporation or a foreign government (42 U.S.C. 2133, 2134). The issuance of a license is also prohibited for utilization or production facilities for such uses as medical therapy or research and development activities to any corporation or other entity owned, controlled or dominated by one of the foreign persons described above (42 U.S.C. 2134(d)). DURATION: Indeterminate ============================================================================= ANNEX I Schedule of the United States SECTOR: Business Services SUB-SECTOR: Export Intermediaries INDUSTRY CLASSIFICATION: 7389 Business Services, Not Elsewhere Classified TYPE OF RESERVATION: National Treatment (Article 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Export Trading Company Act of 1982, Public Law 97-290, 96 Stat. 1233, 15 U.S.C. 4011-4021 15 C.F.R. Part 325 DESCRIPTION: Cross-Border Services Title III of the Export Trading Company Act of 1982 authorizes the Secretary of Commerce to issue "certificates of review" with respect to export conduct. The Act calls for the issuance of a certificate of review if the Secretary determines, and the Attorney General concurs, that the export conduct specified in an application will not have the anticompetitive effects proscribed by the Act. A certificate of review limits the liability under federal and state antitrust laws in engaging in the export conduct certified. Only a "person" as defined by the Act can apply for a certificate of review. The term "person" means "an individual who is a resident of the United States; a partnership that is created under and exists pursuant to the laws of any State or of the United States; a State or local government entity; a corporation, whether organized as a profit or nonprofit corporation, that is created under and exists pursuant to the laws of any State or of the United States; or any association or combination, by contract or other arrangement, between such persons." A foreign national or enterprise can receive the protection provided by a certificate of review by becoming a "member" of a qualified applicant. The regulations define "member" to mean "an entity (U.S. or foreign) which is seeking protection under the certificate with the applicant. A member may be a partner in a partnership or a joint venture; a shareholder of a corporation; or a participant in an association, cooperative, or other form of profit or nonprofit organization or relationship, by contract or other arrangement." DURATION:Indeterminate ============================================================================= ANNEX I Schedule of United States SECTOR:Business Services SUB-SECTOR:Export Intermediaries INDUSTRY CLASSIFICATION:7389 Business Services, Not Elsewhere Classified TYPE OF RESERVATION: National Treatment (Article 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Export Administration Act of 1979, Pub. L. 96-72, as amended Export Administration Regulations, 15 C.F.R. parts 768 through 799 DESCRIPTION: Cross-Border Services With some limited exceptions, the export from the United States of all commodities, and all "technical data", requires either a general license or a validated license or other authorization granted by the Office of Export Licensing, United States Department of Commerce. A general license requires no application or documentation and is generally available for use by all persons. An application for a validated license may be made only by a person subject to the jurisdiction of the United States who is in fact the exporter, or by his duly authorized agent. An application may be made on behalf of a person not subject to the jurisdiction of the United States by an authorized agent in the United States, who then becomes the applicant. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of United States SECTOR: Communications SUB-SECTOR: Telecommunications (Enhanced or Value-Added Services) INDUSTRY CLASSIFICATION: CPC 752323 Value-Added Network Services CPC 752329 Other Message Services TYPE OF RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: F.C.C. Decision, International Communications Policies Governing Designation of Recognized Private Operating Agencies, 104 F.C.C. 2d 208, n. 123, n. 126 (1986) 47 C.F.R. 64.702 (1991) (Definition of enhanced or value- added services) DESCRIPTION: Investment If a U.S.-based foreign-owned enhanced service provider obtains voluntary Recognized Private Operating Agency certification from the U.S. Department of State for purposes of negotiating operating agreements with governments other than the U.S. Government, it must submit copies of all operating agreements granted to it by foreign governments and any refusal of a foreign government to grant it an operating agreement. For purposes of this rule, a service provider is generally considered "foreign owned" if 20 percent or more of its stock is owned by persons that are not U.S. citizens. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of the United States SECTOR: Manufacturing SUB-SECTOR: Agricultural Chemicals INDUSTRY CLASSIFICATION: SIC 2879 Pesticides and Agricultural Chemicals, not Elsewhere Classified TYPE OF RESERVATION: National Treatment (Article 1102) LEGAL CITATION: Federal Insecticide, Fungicide, and Rodenticide Act, as amended, 7 U.S.C. 136 et seq. DESCRIPTION:Investment 7 U.S.C. 135h(g) prevents the Administrator of the Environmental Protection Agency from knowingly disclosing information submitted by an applicant or registrant under the Act (without consent) to any person engaged in the production, sale or distribution of pesticides in countries other than the United States or to any person who intends to deliver such data to such foreign or multinational business or entity. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of the United States SECTOR: Mining and Materials SUB-SECTOR: Minerals Mining INDUSTRY CLASSIFICATION: TYPE OF RESERVATION: National Treatment (Article 1102) Most-Favored-Nation Treatment (Article 1103) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Mineral Lands Leasing Act of 1920; 30 U.S.C. Chapter 3; 10 U.S.C. 7435 DESCRIPTION: Investment 1. Under the Mineral Lands Leasing Act of 1920, aliens and corporations with foreign stockholders may not acquire rights-of-way for oil or gas pipelines, or pipelines carrying products refined from them, across on- shore federal lands, or acquire leases or interests in certain minerals, such as coal or oil. However, non-U.S. citizens may own a 100 percent interest in a domestic corporation that acquires a right-of-way for oil or gas pipelines across on-shore federal lands or lease to develop mineral resources on on-shore federal lands unless the foreign investor's home country denies similar or like privileges for the mineral or access in question to U.S. citizens or corporations, as compared with the privileges it accords to its own (30 U.S.C. 181, 183(a)). 2. Nationalization is not considered to be denial of similar or like privileges. 3. See also 10 U.S.C. 7435, which restricts foreign citizens, or corporations controlled by them, from obtaining access to leases on Naval Petroleum Reserves, should the laws, customs or regulations of their country deny the privilege of leasing public lands to citizens or corporations of the United States. DURATION: Indeterminate. ============================================================================= ANNEX I Schedule of United States SECTOR: Professional Services SUB-SECTOR: Patent Attorneys and Patent Agents and other Practice before the Patent and Trademark Office INDUSTRY CLASSIFICATION: [to be provided] TYPE OF RESERVATION: National Treatment (Article 1202) Most-Favored-Nation Treatment (Article 1203) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: 35 USC Chapter 3 (Practice Before Patent and Trademark Office) 37 C.F.R. Part 10 (Representation of Others Before the U.S. Patent and Trademark Office) DESCRIPTION: Cross-Border Services As a condition to be registered to practice for others before the U.S. Patent and Trademark Office (USPTO): (a) a patent attorney must be a U.S. citizen or an alien lawfully residing in the United States (37 C.F.R. 10.6(a)); (b) a patent agent must be a U.S. citizen, an alien lawfully residing in the United States, or a non-resident who is registered to practice in a country that permits patent agents registered to practice before the USPTO to practice in that country (37 C.F.R. 10.6(c)); and (c) a practitioner in trademark and non-patent cases must be an attorney licensed in the United States, a "grandfathered" agent, an attorney licensed to practice in another country that accords equivalent treatment to attorneys licensed in the United States, or an agent registered to practice in such a country (37 C.F.R. 10.14(a)-(c)). DURATION: Citizenship and permanent residency requirements subject to removal within two years after entry into force of this Agreement in accordance with Article 1210(3). ============================================================================= ANNEX I Schedule of the United States SECTOR: Public Administration SUB-SECTOR: INDUSTRY CLASSIFICATION: TYPE OF RESERVATION: National Treatment (Article 1102) Most-Favored-Nation Treatment (Article 1103) LEGAL CITATION: 22 U.S.C. 2194(a), 2194(b) and 2198(c) LEVEL OF GOVERNMENT: Federal DESCRIPTION: Investment The Overseas Private Investment Corporation (OPIC) insurance and loan guarantees under 22 U.S.C. 2194(a), 2194(b) and 2198(c) are not available to certain aliens, foreign enterprises, or foreign controlled domestic enterprises. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of the United States SECTOR: Transportation SUB-SECTOR: Air Transportation INDUSTRY CLASSIFICATION: SIC 3721 Aircraft Repair and Rebuilding on a Factory Basis SIC 4581 Aircraft Repair (Except on a Factory Basis) TYPE OF RESERVATION: Most-Favored-Nation Treatment (Article 1203) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: 49 U.S.C. App. 1354, 1421-1430 14 C.F.R. Parts 43 and 145 Agreement Concerning Airworthiness Certification, Exchange of Letters between U.S. and Canada dated August 31, 1984, Treaties and International Agreement Service 11023 DESCRIPTION: Cross-Border For major aircraft repair, overhaul or maintenance activities, during which an aircraft is withdrawn from service, U.S. measures require that, in order to perform work on U.S.-registered aircraft, foreign air repair stations must be certified by the Federal Aviation Administration with continuing oversight provided by the Federal Aviation Administration. Pursuant to a bilateral airworthiness agreement dated August 31, 1984, as amended, between the United States and Canada, the United States recognizes the certifications and oversight provided by Canada for all repair stations and individuals performing the work located in Canada. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of the United States SECTOR: Transportation SUB-SECTOR: Air Transportation INDUSTRY CLASSIFICATION: 4512 Air Transportation Scheduled 4522 Air Transportation Non-scheduled 4513 Air Courier Services TYPE OF RESERVATION: National Treatment (Article 1102) Most-Favored-Nation Treatment (Article 1103) Senior Management (Article 1107) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Federal Aviation Act of 1958, as amended; 14 C.F.R. For purposes of this entry, the Description governs. DESCRIPTION: Investment Whether an entity is a U.S. citizen determines the type of commercial air services company that it can own or control. Under the Federal Aviation Act of 1958 (49 U.S.C. App. Ch. 20), "citizens" include (1) individuals who are citizens; (2) a partnership in which each member is a citizen of the U.S.; or (3) a U.S. corporation of which the president and at least two-thirds of the board of directors and other managing officers are U.S. citizens, and at least seventy-five percent of the voting interest in the corporation is owned or controlled by U.S. citizens. 49 U.S.C. App. 1301(16). In addition, this statutory requirement has historically been interpreted by the Department of Transportation (and the Civil Aeronautics Board before it) to require that an air carrier in fact be under the actual control of U.S. citizens. The Department of Transportation makes this determination on a case-by-case basis. Nevertheless, the Department has provided guidance as to some lines of demarcation. For example, total foreign equity investment of up to 49 percent (with a maximum of 25 percent being voting stock), taken alone, is not construed as indicative of foreign control. (See Department of Transportation Order 91-1-41, January 23, 1991.) Only air carriers that are U.S. citizens are permitted to operate domestic air services or operate international air services as a "U.S." carrier; non-U.S. citizens may own and control foreign air carriers that operate between the U.S. and foreign points. See Sections 401, 402, 417(b)(7) and 1108 of the Federal Aviation Act. The different rights of each type of air carrier are usually spelled out in the applicable aviation bilateral agreement. Certain distinctions based on citizenship also exist with regard to other types of air services providers, such as air freight forwarders (14 C.F.R. 297), charter operators (14 C.F.R. 380), and intermodal operators (14 C.F.R. 222). Air freight forwarders may be "U.S. citizens" (defined as indicated above) which use the services of (inter alia) direct air carriers (with a Department of Transportation certificate, regulation, order or permit) to transport property. 14 C.F.R. Part 296. They may also be "foreign air freight forwarders", which similarly use direct air carriers to transport property. 14 C.F.R. Part 296. There is no "U.S. citizenship" requirement for "foreign air freight forwarders." 14 C.F.R. 297.3(d). Foreign air freight forwarders may obtain the same operating exemptions available to U.S. citizens. They must, however, apply for registration with the Department of Transportation. Their application can be rejected "for reasons relating to the failure of effective reciprocity, or if the Department finds that it is in the public interest to do so." 14 C.F.R. 297.22. Charter operators may be "public charter operators", which inter alia must be "U.S. citizens" (defined as indicated above) or "foreign charter operators," for which there is not a citizenship requirement. 14 C.F.R. 380.2. Unlike domestic charter operators, "foreign charter operators" wishing to operate charters which originate in the U.S. must register with the Department of Transportation. 14 C.F.R. 380.61. The Department of Transportation may reject a registration application "for reasons relating to the failure of effective reciprocity or if the Department finds it would be in the public interest to do so." 14 C.F.R.  380.64. A direct foreign air carrier may engage in the surface transport of property (which it has carried by air) in a zone extending 35 miles from the boundary of the airport or city it is authorized to serve. There is no such geographic limitation on a direct U.S. air carrier, or on a U.S. or foreign indirect air carrier. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of the United States SECTOR: Transportation SUB-SECTOR: Air Transportation INDUSTRY CLASSIFICATION: SIC 0721 Crop Planting, Cultivating, and Protecting (limited to aerial dusting and spraying, dusting crops, with or without fertilizing, spraying crops, with or without fertilizing) SIC 4522 Air Transportation, services, sightseeing airplane services) SIC 7319 Advertising, Not Elsewhere Classified (limited to aerial advertising, sky writing) SIC 7335 Commercial Photography (limited to aerial photographic service, except mapmaking) SIC 7389 Business Services, Not Elsewhere Classified (limited to mapmaking, including aerial, pipeline and powerline inspection services, firefighting service, other than forestry or public) SIC 7997 Membership Sports & Recreation Clubs (limited to aviation clubs, membership) SIC 8299 Schools & Education Services, Not Elsewhere Classified (limited to flying instruction) SIC 8713 Surveying Services (limited to aerial surveying) TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) Most-Favored-Nation Treatment (Articles 1103, 1203) Local Presence (Article 1205) Senior Management (Article 1107) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Federal Aviation Act of 1958, as amended; 49 U.S.C. App. 1508(b); 14 C.F.R. 375. For purposes of this entry, paragraph 3 of the Description governs. DESCRIPTION: Cross-Border Services 1. Authorization from the Department of Transportation is required for the provision of specialty air services in the territory of the United States. A person of Canada or Mexico that provides aerial construction, heli-logging, aerial sightseeing, flight training, aerial inspection and surveillance and aerial spraying services may not be authorized to provide such services if there is inadequate reciprocity on the part of the country of the applicant, or if approval would otherwise not be in the public interest. 2. A person of Mexico or Canada may be authorized to provide, subject to compliance by that person with U.S. safety regulations, aerial mapping, aerial surveying, aerial photography, forest fire management, fire fighting, aerial advertising, glider towing and parachute jumping. Investment 3. Specialty air enterprises are required to comply with the same requirements as those set out in the exception for air transportation carriers described in the investment exception for air transportation. DURATION:Cross-Border Paragraph 2 of the Description governs on entry into force. A person of Canada or Mexico may obtain, subject to compliance with U.S. safety requirements, authorization to provide the following specialty air services in the territory of the United States: (a) two years after entry into force of the Agreement, aerial construction and heli-logging; (b) three years after entry into force of the Agreement, aerial sightseeing, flight training and aerial inspection and surveillance services; and (c) six years after entry into force of the Agreement, aerial spraying services. Investment: Indeterminate ============================================================================= ANNEX I Schedule of the United States SECTOR: Transportation SUB-SECTOR: Land Transportation INDUSTRY CLASSIFICATION: SIC 4213 Trucking, Except Local SIC 4215 Courier Services, Except by Air SIC 4131 Intercity and Rural Bus Transportation SIC 4142 Bus Charter Service, Except Local SIC 4151 School Buses (limited to interstate transportation not related to school activity) TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) Most-Favored-Nation Treatment (Articles 1103, 1203) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Bus Regulatory Reform Act of 1982, as amended, section 6, 49 U.S.C. 10922(l) (1) and (2) 49 U.S.C. 10530 (3) 49 U.S.C. 10329, 10330 and 11705 and 49 C.F.R. 1044 19 U.S.C. 1202 Memorandum of Understanding Between the United States of America and the United Mexican States on Facilitation of Charter/Tour Bus Service, December 3, 1990. DESCRIPTION: Cross-Border Services Operating authority from the Interstate Commerce Commission (ICC) is required to provide interstate or cross border bus or truck services in the territory of the United States. A moratorium has been imposed on new grants of operating authority for persons of Mexico, except for provision of cross-border charter or tour bus services. Under the moratorium, persons of Mexico without operating authority may operate only within ICC Border Commercial Zones, for which ICC operating authority is not required. Persons of Mexico providing truck services (including for hire, private, and exempt services) without operating authority are required to obtain a certificate of registration from the ICC to enter the United States and operate in the ICC Border Commercial Zones. Persons of Mexico providing bus service are not required to obtain an ICC certificate of registration to provide such service within the ICC Border Commercial Zones. A person providing bus or truck service between points in the United States is required to use United States-registered and either U.S.- built or duty-paid equipment. Investment The moratorium has the effect of being an investment restriction because enterprises of the United States providing bus or truck services that are owned or controlled by persons of Mexico may not obtain ICC operating authority. DURATION: On entry into force of this Agreement, the Description shall govern. Cross-Border Services A person of Mexico will be permitted to obtain operating authority to provide: (a) three years after signature of this Agreement, cross-border truck services to or from border states (California, Arizona, New Mexico, and Texas), and such persons will be permitted to enter and depart the territory of United States through different ports of entry; (b) three years after entry into force of this Agreement, cross-border scheduled bus services; and (c) six years after entry into force of this Agreement, cross-border truck services. Investment A person of Mexico will be permitted to establish an enterprise in the United States to provide: (a) three years after signature of this Agreement, truck services for the distribution of international cargo between points in the United States; and (b) seven years after entry into force of this Agreement, bus services between points in the United States. Indeterminate: The moratorium will remain in place on grants of authority for the provision of truck services by persons of Mexico between points in the United States for the transportation of goods other than international cargo. ============================================================================= ANNEX I Schedule of United States SECTOR: Transportation Services SUB-SECTOR: Customs Brokers INDUSTRY CLASSIFICATION: SIC 4731 Arrangement of Transportation of Freight and Cargo TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: 19 U.S.C. 1641(b) DESCRIPTION: Cross-Border Services and Investment Only U.S. citizens may obtain a customs broker's license, which is required to conduct customs business on behalf of another person. A corporation, association, or partnership established under the laws of any state may receive a customs broker's license if at least one officer of the corporation or association, or one member of the partnership, holds a valid customs broker's license. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of the United States SECTOR: All SUB-SECTOR: TYPE OF RESERVATION: National Treatment (Article 1102) Most-Favored-Nation Treatment (Article 1103) LEGAL CITATION: Securities Act of 1933, Rules 251 and 405, 17 C.F.R. 240.251 and 240.405 Securities Exchange Act of 1934, Section 12(b)(2), 15 U.S.C. 1(b)(2) and the Rules thereunder. DESCRIPTION: Investment Foreign issuers, except for certain Canadian issuers, may not use the small business forms under the Securities Act of 1933 to register securities. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of the United States SECTOR: SUBSECTOR: INDUSTRY CLASSIFICATION: SIC 4952 Sewerage System TYPE OF RESERVATION: Performance Requirements (Article 1106) LEGAL CITATION: Clean Water Act, 33 U.S.C. 1251 et seq. DESCRIPTION: Investment The Clean Water Act authorizes grants for the construction of treatment plants for municipal sewage or industrial waste. Grant recipients may be privately-owned enterprises. The Act provides that grants shall be made for treatment works only if such articles, materials, and supplies as have been manufactured, mined or produced in the United States will be used in the treatment works. The Administrator of the Environmental Protection Agency has authority not to apply this provision, e.g., if the cost of the articles in question is unreasonable. 33 U.S.C. 1295. DURATION: Indeterminate ANNEX I Schedule of Canada SECTOR: Agriculture SUB-SECTOR: INDUSTRY CLASSIFICATION: TYPE OF RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Farm Credit Act, R.S.C. 1985, c. F-2 as amended by R.S.C. 1985, c. 1 (4th Supp.); S.C. 1991, c. 5, 53 Farm Credit Regulations, C.R.C. 1978, c. 644 as amended by SOR/81-560; SOR/82-495; SOR/83-198 DESCRIPTION: Investment Loans by the Farm Credit Corporation may be made only to: (a) individuals who are Canadian citizens or permanent residents; (b) farming corporations controlled by Canadian citizens or permanent residents; or (c) cooperative farm associations, all of whose members are Canadian citizens or permanent residents. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Canada SECTOR: All Sectors SUB-SECTOR: INDUSTRY CLASSIFICATION: TYPE OF RESERVATION: National Treatment (Article 1102) Performance Requirements (Article 1106) Senior Management (Article 1107) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Investment Canada Act, R.S.C. 1985, c. 28, as amended by S.C.1988, c. 65 Investment Canada Regulations, SOR/85-611, as amended by SOR/189-69 An Act to Amend the Investment Canada Act, (Bill C-89, introduced in Parliament on 18 June 1992) DESCRIPTION: Investment 1. Under the Investment Canada Act, the following acquisitions of Canadian businesses by "non-Canadians" are subject to review by Investment Canada: (1) all direct acquisitions of Canadian businesses with assets of $5 million or more; (2) all indirect acquisitions of Canadian businesses with assets of $50 million or more; and (3) indirect acquisitions of Canadian businesses with assets between $5 million and $50 million which represent more than 50 percent of the value, calculated in the prescribed manner, of the assets of all the entities the control of which is being acquired, directly or indirectly, in the transaction in question. 2. "Canadian business", "Canadian" and "non-Canadian" are defined in the Investment Canada Act. A "non- Canadian" is an individual, government or agency thereof or an entity which is not "Canadian". 3. In addition, specific acquisitions or new businesses in designated types of business activities related to Canada's cultural heritage or national identity, which are normally notifiable, may be reviewed if the Governor in Council authorizes a review in the public interest. 4. Investments subject to review under the Investment Canada Act are not to be implemented unless the Minister responsible for the Investment Canada Act advises the applicant that the investment is likely to be of net benefit to Canada. Such a determination is made in accordance with six factors described in the Act. 5. These factors are summarized as follows: (a) the effect of the investment on the level and nature of economic activity in Canada, including the effect on employment, on the utilization of parts, components and services produced in Canada, and on exports from Canada; (b) the degree and significance of participation by Canadians in the investment; (c) the effect of the investment on productivity, industrial efficiency, technological development and product innovation in Canada; (d) the effect of the investment on competition within any industry or industries in Canada; (e) the compatibility of the investment with national industrial, economic and cultural policies, taking into consideration industrial, economic and cultural policy objectives enunciated by the government or legislature of any province likely to be significantly affected by the investment; and (f) the contribution of the investment to Canada's ability to compete in world markets. 6. In making a net benefit determination, the Minister, through Investment Canada, may review plans under which the applicant demonstrates the net benefit to Canada of the proposed acquisition. An applicant may also submit undertakings to the Minister in connection with any proposed acquisition which is the subject of review. In the event of noncompliance with an undertaking by an applicant, the Minister may seek a court order directing compliance or any other remedy authorized under the Act. 7. The establishment or acquisition of Canadian businesses by non- Canadians, other than those described above, are to be notified to the agency administering the Act, Investment Canada. 8. Review of "acquisition of control", as defined in the Investment Canada Act, of a Canadian business by an American or Mexican will take place if the value of the gross assets of the Canadian business is not less than the applicable thresholds, effective on the date of entry into force of this Agreement and adjusted on each anniversary thereof. The calculation of the applicable review threshold is set out in the Duration section below. 9. The review threshold applicable to American and Mexican investors is higher than those set out above. However, this higher review threshold does not apply in the following sectors: uranium production and ownership of uranium producing properties; oil and gas; financial services; transportation services and cultural businesses. 10. Indirect "acquisitions of control", as defined in the Investment Canada Act, of Canadian businesses by "American" and "Mexican" investors are not reviewable. Notwithstanding the definition of "investor of a Party" in Chapter Eleven, only investors who are nationals, or entities controlled by nationals, (as defined in the Investment Canada Act) of the United States or Mexico, may benefit from the higher review threshold. 11. Notwithstanding Article 1106(1), Canada reserves the right to impose requirements, or enforce any commitment or undertaking, in connection with the establishment, acquisition, expansion, conduct or operation of an investment of an investor of another Party for the transfer of technology, production process or other proprietary knowledge to a national or enterprise, affiliated to the transferor, in Canada, in connection with the review of an acquisition of an investment pursuant to the Investment Canada Act. 12. Except for requirements, commitments or undertakings related to technology transfer as set out above, Article 1106(1) shall apply to requirements, commitments or undertakings imposed or enforced under the Investment Canada Act. However, Article 1106(1) shall not be construed to apply to any requirement, commitment or undertaking imposed or enforced in connection with a review under the Investment Canada Act, to locate production, carry out research and development, employ or train workers, or to construct or expand particular facilities, in Canada. DURATION: Paragraphs 10, 11 and 12 of the Description setting out Canada's reservations and commitments with respect to Articles 1102, 1106(1), and 1138 shall govern. For American and Mexican investors, the applicable threshold for the review of a direct acquisition of control of a Canadian business shall be: (a) for the twelve month period commencing on the date of entry into force of this Agreement, such monetary amount as determined in accordance with Annex 1607.3 of the Canada-United State Free Trade Agreement; (b) commencing on the first anniversary of the date of entry into force of this Agreement, the monetary amount for the preceding year multiplied by an annual adjustment representing the increase in nominal Gross Domestic Product, as set out below. The calculation of the annual adjustment shall be determined in January of each year after 1994 using the most recently available data as published by Statistics Canada and using the following formula: Ann ual Adjustment = Current nominal GDP at market prices --------------------------------- ----------------------Previous year nominal GDP at market prices "Current nominal GDP at market prices" means the arithmetic mean of the nominal Gross Domestic Product at market prices for the most recent four consecutive quarters (seasonally adjusted at annual rates). "Previous year nominal GDP at market prices" means the arithmetic mean of the nominal Gross Domestic Product at market prices for the four consecutive quarters (seasonally adjusted at annual rates) for the comparable period in the year preceding the year used in calculating the "current nominal GDP at market prices". The amounts determined in this manner shall be rounded to the nearest million dollars. ============================================================================= ANNEX I Schedule of Canada SECTOR: All Sectors SUB-SECTOR: INDUSTRY CLASSIFICATION: TYPE OF RESERVATION: National Treatment (Article 1102) Senior Management (Article 1107) LEVEL OF GOVERNMENT: Federal Provincial LEGAL CITATION: DESCRIPTION: Investment When selling or disposing of its equity interests in, or the assets of, an existing state enterprise or an existing governmental entity, Canada and each province reserve the right to prohibit or impose limitations on the ownership of such interests or assets, and on the ability of owners of such interests or assets to control any resulting enterprise, by investors of another Party or non-Party or their investments. In addition, Canada and each province reserve the right to adopt or maintain any measure relating to the nationality of senior management or members of the board of directors. For the purposes of this reservation: (a) any measure maintained, or adopted after the entry into force of this Agreement, prohibiting or imposing limitations on the ownership of equity interests or assets or nationality requirements described in this reservation shall be deemed to be an existing measure; and (b) "state enterprise" means an enterprise owned or controlled through ownership interests by Canada or a province and includes an enterprise established after the date of entry into force of this Agreement solely for the purposes of selling or disposing of equity interests in, or the assets of, an existing state enterprise or governmental entity. DURATION: The Description shall govern on entry into force of this Agreement. Indeterminate. ============================================================================= ANNEX I Schedule of Canada SECTOR: All Sectors SUB-SECTOR: INDUSTRY CLASSIFICATION: TYPE OF RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Canada Business Corporations Act, R.S.C. 1985, C. I-44, as amended by R.S.C. 1985, c. 27 (2nd Supp.), R.S.C. 1985, c. 1 (4th Supp.); S.C. 1990, c. 17; S.C. 1991, c. 45, 46, 47 Canada Corporations Act, R.S.C. 1970, C. C-32, as amended by R.S.C. 1970, c. C-10 (1st Supp.); S.C. 1970-71-72, c. 43, 63; S.C. 1972, c. 17; S.C. 1974-75-76, c. 33; S.C. 1978-79, c. 11; S.C. 1985, c. 26; S.C. 1986, c. 26, 35 Canada Business Corporations Act Regulations SOR/79-316, as amended by SOR/79-513, SOR/79-728, SOR/80-873, SOR/81-3, SOR/81-189, SOR/81-868, SOR/82-187, SOR/83-511, SOR/83781, SOR/83-817, SOR/85-384, SOR/86-365, SOR/86-366, SOR/86-421, SOR/86-983, SOR/87-248, SOR/87-629, SOR/8863, SOR/88-491, SOR/89-159, SOR/89-323, SOR/90-660, SOR/91-567 DESCRIPTION: Investment The cited laws and regulations permit constraints to be placed on issue, transfer and ownership of shares in federally incorporated business corporations. The object is to permit corporations to meet Canadian ownership requirements, under certain laws as prescribed in the regulations, in sectors where such ownership is required as a condition to operate. In order to maintain certain "Canadian" ownership levels, corporations are permitted to sell shareholders' shares without the consent of those shareholders, and to purchase the corporation's own shares on the open market. "Canadian" is defined in the regulations. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Canada SECTOR: All Sectors SUB-SECTOR: INDUSTRY CLASSIFICATION: TYPE OF RESERVATION: Senior Management (Article 1107) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Canada Business Corporations Act, R.S.C. 1985, c. I-44 as amended R.S.C. 1985, c. 27 (2nd Supp.), R.S.C. 1985, c. 1 (4th Supp.); S.C. 1990, c. 17; S.C. 1991, c. 45, 46, 47 Canada Business Corporations Act Regulations, SOR/79-316, as amended SOR/79-513, SOR/79-728, SOR/80-873, SOR/81-3, SOR/81-189, SOR/81-868, SOR/82-187, SOR/83-511, SOR/83-781, SOR/83-817, SOR/85-384, SOR/86-365, SOR/86-366, SOR/86-421, SOR/86-983, SOR/87-248, SOR/87-629, SOR/88-63, SOR/88-491, SOR/89-159, SOR/89-323, SOR/90-660, SOR/91-567 Canada Corporations Act, R.S.C. 1970, c. C-32 Special Acts of Parliament incorporating specific companies DESCRIPTION: Investment The Canada Business Corporations Act requires that a simple majority of members of the board of directors, or of a committee thereof, of a federally-incorporated company must be resident Canadians. For the purposes of the Act the term "resident Canadian" is defined as an individual who is a Canadian citizen ordinarily resident in Canada, a citizen who is a member of a class as set out in the regulations, or a permanent resident as defined in the Immigration Act except a person who has been ordinarily resident in Canada for more than one year after he became eligible to apply for Canadian citizenship. In the case of a holding corporation, not more than 1/3 of the directors need be resident Canadians if the earnings in Canada of the holding corporation and its subsidiaries are less than 5% of the gross earnings of the holding corporation and its subsidiaries. Under the Canada Corporations Act, a simple majority of the elected directors of a Special Act corporation must be residents of Canada and citizens of a Commonwealth country. This requirement applies to every joint stock company incorporated subsequent to 22 June 1869 by any Special Act of Parliament and any subsequent amendments to such Acts. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Canada SECTOR: All Sectors SUB-SECTOR: INDUSTRY CLASSIFICATION: TYPE OF RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Citizenship Act, R.S.C. 1985, c. C-29 as amended by R.S.C. 1985 c. 28 (1st Supp.); c. 30 (3rd Supp.); c. 44 (3rd Supp.); c. 28 (4th Supp.) Foreign Ownership of Land Regulations, SOR/79-416; SOR/79-514; SOR/80-156; SOR/82-544 DESCRIPTION: Investment Under the Citizenship Act, a province is authorized to prohibit or restrict acquisitions of real property located in that province by non-Canadians. The Foreign Ownership of Land Regulations are made pursuant to the Citizenship Act and the Alberta Agricultural and Recreational Land Ownership Act. In Alberta, an ineligible person or foreign owned or controlled corporation may only hold an interest in controlled land consisting of not more than 2 parcels containing, in the aggregate, not more than 20 acres. An "ineligible person" is (1) an individual who is not a Canadian citizen or permanent resident; (2) a foreign government or agency thereof; or (3) a corporation incorporated elsewhere than in Canada. "Controlled land" means land in Alberta but does not include (1) land other than land owned by the Crown; (2) land within a city, town, new town, village, or summer village and (3) mines or minerals. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Canada SECTOR: SUB-SECTOR: INDUSTRY CLASSIFICATION: TYPE OF RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Air Canada Public Participation Act, R.S.C. 1985, c. 35 (4th Supp.) Canada Development Corporation Reorganization Act, S.C. 1985, c. 49 Petro-Canada Public Participation Act, S.C. 1991, c. 10 Canadian Arsenals Limited Divestiture Authorization Act, S.C. 1986, c. 20 Cooperative Energy Act, S.C. 1980-81-82-83, c. 108 Eldorado Nuclear Limited Reorganization and Divestiture Act, S.C. 1988, c. 41 Nordion and Theratronics Divestiture Authorization Act, S.C. 1990, c. 4 DESCRIPTION: Investment Non-residents may not own more than a specified percentage of the voting shares of the corporation to which each Act applies. For each company the restrictions are as follows: Air Canada: 25% Canada Development Corporation: 25% Petro-Canada Inc: 25% Canadian Arsenals Limited: 25% Eldorado Nuclear Limited: ownership not restricted but voting rights restricted to 25% of votes cast at meetings Nordion Limited: 25% Theratronics Limited: 49% Cooperative Energy Corporation: 49% Non-resident is defined in the cited laws to generally mean: (a) an individual, other than a Canadian citizen, who is not ordinarily resident in Canada; (b) a corporation incorporated, formed or otherwise organized outside Canada; (c) the government of a foreign state or any political subdivision thereof, or a person empowered to perform a function or duty on behalf of such a government; (d) a corporation that is controlled directly or indirectly by non-residents as defined in any of paragraphs (a) to (c); (e) a trust (i) established by a non-resident as defined in any of paragraphs (b) to (d), other than a trust for the administration of a pension fund for the benefit of individuals a majority of whom are residents, or (ii) in which non-residents as defined in any of paragraphs (a) to (d) have more than fifty per cent of the beneficial interest; or (f) a corporation that is controlled directly or indirectly by a trust described in paragraph (e). DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Canada SECTOR: All Sectors SUB-SECTOR: INDUSTRY CLASSIFICATION: TYPE OF RESERVATION: Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Export and Import Permits Act, R.S.C., 1985, c. E-19 DESCRIPTION: Cross-Border Services Only natural persons ordinarily resident in Canada, enterprises having their head office in Canada or branch offices in Canada of a foreign enterprise may apply for and be issued import or export permits or a transit authorization certificate for goods and related services subject to controls pursuant to regulations of the Export and Import Permits Act. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Canada SECTOR: Automotive SUB-SECTOR: INDUSTRY CLASSIFICATION: TYPE OF RESERVATION: LEVEL OF GOVERNMENT: Performance Requirements (Article 1106) Federal LEGAL CITATION: Canada-United-States Free Trade Agreement Implementation Act DESCRIPTION: Investment Article 1106(3) shall not apply to the granting of waivers of customs duties conditioned, explicitly or implicitly, upon the fulfillment of performance requirements by those manufacturers of automotive goods: (a) set out in Part One of Annex 1002.1 of the Canada - United- States Free Trade Agreement, in accordance with the headnote to that Part; and (b) for the applicable periods specified in Article 1002(2) and (3) of the Canada - United-States Free Trade Agreement to those manufacturers of automotive goods set out in Parts Two and Three, respectively, of Annex 1002.1 of that Agreement. DURATION: (a) Indeterminate (b) For Part Two, until January 1, 1998; and for Part Three, until January 1, 1996 or such earlier date specified in existing agreements between Canada and the recipient of the waiver. ============================================================================= ANNEX I Schedule of Canada SECTOR: Business Service Industries SUB-SECTOR: Customs Brokerages and Brokers INDUSTRY CLASSIFICATION: SIC 7794 Customs Brokerages and Brokers TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) Local Presence (Article 1205) Senior Management (Article 1107) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Customs Act, R.S.C., 1985, c. 41 (2nd Supp.) Customs Brokers Licensing Regulations, SOR/86-1067 DESCRIPTION: Cross-Border Services and Investment 1. To be a licensed customs broker in Canada, an individual must be a Canadian citizen or permanent resident. 2. To be a licensed customs brokerage in Canada: (a) a corporation must be incorporated in Canada with a majority of its directors being Canadian citizens or permanent residents; and (b) a partnership must be composed of persons who are Canadian citizens or permanent residents, or corporations incorporated in Canada with a majority of their directors being Canadian citizens or permanent residents. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Canada SECTOR: Business Service Industries SUB-SECTOR: Duty Free Shops INDUSTRY CLASSIFICATION: SIC 6599 Other Retail Stores, Not Elsewhere Classified TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Customs Act, R.S.C., 1986, c.1 (2nd Supp.) Duty Free Shop Regulations, SOR/86-1072, as amended DESCRIPTION: Cross-Border Services and Investment 1. To be a licensed duty free shop operator at a land border crossing in Canada, an individual must: (a) be a Canadian citizen or permanent resident; (b) be of good character; (c) be principally resident in Canada; and (d) have resided in Canada for at least 183 days of the year preceding the year of application for the licence. 2. To be a licensed duty free shop operator at a border crossing in Canada, a corporation must: (a) be incorporated in Canada; and (b) have all of its shares beneficially owned by Canadian citizens or permanent residents who meet the requirements of paragraph 1. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Canada SECTOR: Business Service Industries SUB-SECTOR: Examination Services relating to the Export and Import of Cultural Property INDUSTRY CLASSIFICATION: SIC 990 Other Services TYPE OF RESERVATION: Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Cultural Property Export and Import Act, R.S.C. 1985, c. C-51 DESCRIPTION: Cross-Border Services For purposes of the Cultural Property Export and Import Act an "expert examiner" of cultural property must be either a natural person who ordinarily resides in Canada or a corporation that has its head office in Canada or maintains one or more establishments in Canada to which employees employed in connection with the business of the corporation ordinarily report for work. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Canada SECTOR: Business Service Industries SUB-SECTOR: Patent Agents and Agencies INDUSTRY CLASSIFICATION: SIC 7499 Other Financial Intermediaries, Not Elsewhere Classified (Limited to Holders of Intellectual Property Rights) TYPE OF RESERVATION: National Treatment (Article 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Patent Act, R.S.C., 1985, c. P-4 Patent Rules, CRC, Vol. XIII, c. 1250, p.10053 Patent Cooperation Treaty Regulations, SOR/89-453 DESCRIPTION: Cross-Border Services 1. To be able to represent persons in the presentation and prosecution of applications for patents or in other business before the Patent Office, a patent agent must be a resident of Canada and registered by the Patent Office. 2. To prosecute an application for a patent in Canada a registered patent agent who is not a resident of Canada must appoint a registered patent agent who is a resident of Canada as an associate to prosecute the application. 3. Any firm may be added to the patent register provided that it has at least one member who is also on the register. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Canada SECTOR: Business Service Industries SUB-SECTOR: Trade-Mark Agents INDUSTRY CLASSIFICATION: SIC 7499 Other Financial Intermediaries, Not Elsewhere Classified (Limited to Holders of intellectual Property Rights) TYPE OF RESERVATION: National Treatment (Article 1202) Most-Favored-Nation Treatment (Article 1203) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Trade-Marks Act, R.S.C., 1985, c. T-13 Trade-Marks Regulations, CRC, Vol. XVIII, c. 1559, p. 13803, as amended DESCRIPTION: Cross-Border Services 1. To be able to represent persons in the presentation and prosecution of applications for trade-marks or in other business before the Trade-Mark Office, a trade-mark agent must be a resident of Canada and registered by the Trade-Mark Office. 2. To prosecute an application for a trade-mark in Canada, a registered trade-mark agent who is not resident in Canada must appoint a registered trade-mark agent who is resident in Canada as an associate to prosecute the application. 3. Trade-mark agents who reside, and are registered (in good standing), in a Commonwealth country or the United States may be added to the register of trade-mark agents. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Canada SECTOR: Energy SUB-SECTOR: Oil and Gas INDUSTRY CLASSIFICATION: [To be provided] TYPE OF RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Canada Petroleum Resources Act, R.S.C. 1985, c. 36 (2nd Supp.) as amended by R.S.C. 1985, c. 21 (4th Supp.), S.C. 1990, c. 8, 41., S.C. 1991, c. 10 (partly in force), 24 (not in force), 46 (not in force) Territorial Lands Act, R.S.C. 1985, c.T-7 as amended by R.S.C. 1985, c. 7 (3rd Supp.)(partly in force); S.C. 1991, c. 2, 24 (not in force), 50 (not in force) Public Lands Grants Act, R.S.C. 1985, c. P-30 as amended R.S.C. 1985, c. 13 (1st Supp.); S.C. 1991, c. 24 (not in force). Act repealed S.C. 1991, c. 50 (repealing legislation not in force) Canada-Newfoundland Atlantic Accord Implementation Act, S.C. 1987, c. 3 as amended by S.C. 1988, c. 28, S.C. 1990, c. 41; S.C. 1991, c. 46 (not in force), 49, 50 (not in force) Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act, S.C. 1988, c. 28 as amended by S.C. 1990, c. 28, 41; S.C. 1991, c. 46 (not in force), 49, 50 (not in force) Canada Oil and Gas Land Regulations, C.R.C. c. 1518 as amended SOR/80-590; SOR/82-663; SOR/89-144 DESCRIPTION: Investment Canadian legislation contains certain qualifications for holders of oil and gas production licenses for discoveries made after March 5, 1982. These qualifications ensure that holders of such licenses, or shares therein, are Canadian citizens ordinarily resident in Canada, permanent residents or corporations incorporated in Canada. Notwithstanding qualification to hold a production license, no production license shall be issued for discoveries made after March 5, 1982 unless the Minister of Energy, Mines and Resources is satisfied that the Canadian ownership rate of the interest-owner in relation to the production license on the date of issuance would not be less than 50%. "Interest-owner" is defined in the Canada Petroleum Resources Act to mean "an interest holder who holds the interest or a group of interest holders who hold all the shares of the interest". With respect to production licenses for discoveries made prior to March 5, 1982, the Canadian ownership requirements are as set out in the Canada Oil and Gas Land Regulations. These qualifications and Canadian ownership requirements are in respect of production licenses issued on "frontier lands" and the "offshore areas" (areas not under provincial jurisdiction) as defined in the legislation. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Canada SECTOR: Energy SUB-SECTOR: Uranium INDUSTRY CLASSIFICATION: [To be provided] TYPE OF RESERVATION: National Treatment (Article 1102) Most-Favored-Nation Treatment (Article 1103) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Investment Canada Act, R.S.C. 1985, c. 28, as amended by S.C.1988, c.65 Investment Canada Regulations, SOR/85- 611 as amended by SOR/189-69 An Act to Amend the Investment Canada Act, (Bill C-89, introduced in Parliament on 18 June 1992) Policy on Non-resident Ownership in the Uranium Mining Sector, 1987 DESCRIPTION: Investment Non-resident ownership of a uranium mining property is limited to 49% at the stage of first production. Exceptions to this limit may be permitted if it can be established that the property is in fact Canadian-controlled as defined in the Investment Canada Act. Exemptions from the policy are allowed, subject to Cabinet approval, only in cases where Canadian participants in the ownership of the property cannot be found. Investments in properties by "non-Canadians", as defined in the Investment Canada Act, prior to December 23, 1987, beyond the permitted ownership level, are allowed to remain in place; however no increase in non-Canadian ownership is permitted. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Canada SECTOR: Fisheries SUB-SECTOR: Fish Harvesting and Processing INDUSTRY CLASSIFICATION: [To be provided] TYPE OF RESERVATION: National Treatment (Article 1102) Most-Favored-Nation Treatment (Article 1103) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Coastal Fisheries Protection Act, R.S.C. 1985, c. C-33 as amended by R.S.C. 1985, c. 31 (1st Supp.); R.S.C. 1985, c. 39 (2nd Supp.); S.C. 1990, c. 44 Fisheries Act, R.S.C. 1985, c. F-14 as amended by R.S.C. 1985, c. 31 (1st Supp.); R.S.C. 1985, c. 35 (1st Supp.); R.S.C. 1985, c. 40 (4th Supp.); S.C. 1990, c. 16; S.C. 1990, c. 17 Policy on Foreign Investment in the Canadian Fisheries Sector, 1985 Commercial Fisheries Licensing Policy Coastal Fisheries Protection Regulations, C.R.C., 1978, c. 413 DESCRIPTION: Investment Under the Coastal Fisheries Protection Act, "foreign" fishing vessels are prohibited from entering Canada's 200 mile fishing zone except under authority of a license or under treaty. "Foreign" vessels are those which are not "Canadian" as defined in the Coastal Fisheries Protection Act. Under the Fisheries Act, The Minister of Fisheries and Oceans has a discretionary authority with respect to the issuance of licenses. Fish processing companies which have a foreign ownership level of more than 49% are prohibited from holding Canadian commercial fishing licenses. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Canada SECTOR: Fisheries SUB-SECTOR: Fishing-Related Services INDUSTRY CLASSIFICATION: SIC 032 Services Incidental to Fishing TYPE OF RESERVATION: National Treatment (Article 1202) Most-Favored-Nation Treatment (Article 1203) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Coastal Fisheries Protection Act, R.S.C., 1985, c. C-33 DESCRIPTION: Cross-Border Services Under the Coastal Fisheries Protection Act, the Department of Fisheries and Oceans is responsible for controlling the activities of foreign fishing vessels in Canada's Exclusive Fisheries Zone (EFZ), including access to Canadian ports (port privileges). In general, the Department grants such port privileges, including the purchase of fuel and supplies, ship repair, crew exchanges and transshipment of fish catches, only to fishing vessels from countries with which it has favorable fishery relations, based primarily on adherence by the foreign country to Canadian and international conservation practices and policies. Exceptions to this general rule are allowed in cases of emergency ("force majeure") and where the specific provisions of bilateral fisheries treaties apply. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Canada SECTOR: Government Finance SUB-SECTOR: Securities INDUSTRY CLASSIFICATION: [To be provided] TYPE OF RESERVATION: National Treatment (Article 1202) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Financial Administrative Act, R.S.C., 1985, Chap. F-11 and annual Orders-in- Council DESCRIPTION: Investment Canada Savings Bonds are issued annually pursuant to the Financial Administration Act. Terms and conditions are set by Orders-in- Council. Sale of Canada Savings Bonds is restricted to individuals who are Canadian nationals. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Canada SECTOR: Transportation SUB-SECTOR: Air Transportation INDUSTRY CLASSIFICATION: [To be provided] TYPE OF RESERVATION: National Treatment (Article 1102) Most Favored Nation Treatment (Article 1103) Senior Management (Article 1107) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: National Transportation Act, 1987, R.S.C. 1985, c. 28 (3rd Supp.), as amended by R.S.C. 1985, c. 29 (3rd Supp.); R.S.C. 1985 c. 19 (4th Supp.); R.S.C. 1985, c. 32 (4th Supp.) Aeronautics Act, R.S.C. 1985, c. A-2 as amended by R.S.C.1985, c. 33 (1st Supp.); R.S.C. 1985, c. 28 (3rd Supp.) Air Regulations, C.R.C. 1978, c. 2 Aircraft Marking and Registration Regulations, SOR/90-591, as amended by SOR/91-504 DESCRIPTION: Investment The following "commercial air services" are reserved to Canadian air carriers or operators: domestic air transportation services (cabotage); international scheduled air transportation services reserved by bilateral agreements to Canadian airlines; and international non-scheduled air transportation services between Canada and a country other than a foreign air carrier's state of registry ("fifth freedom charters"). For specialty air services, see Schedule of Canada, Annex I, p.I-C-42 and Schedule of Canada, Annex II, p.II-C-9. Only qualified persons may provide commercial air services reserved to Canadian air carriers or operators. Non-Canadian investment in voting stock of enterprises providing commercial air services that are reserved to Canadian air carriers or operators is limited to 25% or to a lesser percentage where control in fact of the enterprise is otherwise considered not to be held by Canadians. Non-Canadians are not permitted, through voting interests or other forms of investment, to control Canadian air carriers or operators. Aircraft other than state aircraft may only be registered in Canada by qualified persons. Aircraft not registered in Canada are limited by regulation concerning the period during which they may be operated in Canada by Canadians. A qualified person is a Canadian citizen or permanent resident, or a corporation incorporated by or under the laws of Canada or a province and of which: (a) not less than 75 % of the voting interest is in fact owned and controlled by Canadian citizens or permanent residents or by a corporation meeting the requirements on Canadian ownership and control; (b) not less than 2/3 of its directors are Canadian citizens or permanent residents; (c) the executive head is a Canadian citizen or permanent resident; and (d) the principal place of business is in Canada. A corporation incorporated by or under the laws of Canada or a province but that does not meet the Canadian ownership and control requirements may only register a private aircraft when the corporation is the sole owner and subject to other limitations and requirements of the Air Regulations. The Air Regulations also have the effect of limiting "non-Canadian" corporations operating foreign registered private aircraft within Canada to the carriage of their own employees. A "non-Canadian" corporation is a corporation which does not meet the Canadian ownership and control requirements. All commercial air services operating in Canada require a Canadian operating certificate to ensure their safety and security. An operating certificate authorizing the provision of commercial air services reserved to Canadian operators or air carriers is only issued to qualified persons. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Canada SECTOR: Transportation SUB-SECTOR: Air Transportation INDUSTRY CLASSIFICATION: SIC 4513 Non-Scheduled Air Transport, Specialty Industry TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) Local Presence (Article 1205) Senior Management (Article 1107) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Aeronautics Act, R.S.C., 1985, c. A-2, section 4.2 Air Regulations, C.R.C., Vol. I, c. 2, sections 700 and 702 Air Regulations Series 2, No. 2 (Aircraft Marking and Registration Regulations), SOR/90-591, section 19 DESCRIPTION: Cross-Border Services and Investment 1. A person requires a Canadian operating certificate issued by the Department of Transport to provide specialty air services in the territory of Canada. The Department of Transport will issue an operating certificate to a person applying for authority to provide such services, subject to compliance by such person with Canadian safety requirements. 2. Such operating certificate for the provision of aerial construction, heli-logging, aerial inspection, aerial surveillance, flight training, aerial sightseeing, and aerial spraying services is not issued to a person that is not "Canadian" as defined in the applicable regulations (a Canadian national or a corporation incorporated and having its principal place of business in Canada, its chief executive officer and not fewer than 2/3 of its directors as Canadian nationals, and not less than 75% of its voting interest owned and controlled by persons otherwise meeting these requirements). 3. A person of Mexico or of the United States may obtain an operating certificate, subject to compliance by such person with Canadian safety requirements, for the provision of aerial mapping, aerial surveying, aerial photography, forest fire management, fire-fighting, aerial advertising, glider towing and parachute jumping services. DURATION: Cross-Border Services Paragraph 3 of the Description shall govern upon entry into force of this Agreement. A person of Mexico or of the United States will be permitted to obtain an operating certificate, subject to compliance with Canadian safety requirements, for the provision of the following specialty air services: (a) two years after the entry into force of this Agreement, aerial construction and heli-logging services; (b) three years after the entry into force of this Agreement, aerial inspection, aerial surveillance, flight training, and aerial sightseeing services; and (c) six years after the entry into force of this Agreement, aerial spraying services. ============================================================================= ANNEX I Schedule of Canada SECTOR: Transportation SUB-SECTOR: Air Transportation INDUSTRY CLASSIFICATION: SIC 4523 Aircraft Servicing Industry SIC 3211 Aircraft and Aircraft Parts Industry TYPE OF RESERVATION: Most-Favored-Nation Treatment (Article 1203) Local Presence (1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Aeronautics Act, R.S.C., 1985, c. A-2, section 4.9 Air Regulations, Series 2, No.11 [ ] Airworthiness Manual, chapters 573 and 575 [ ] Agreement Concerning Airworthiness Certification, Exchange of Letters between Canada and the United States, dated August 31, 1984, CTS______. DESCRIPTION: Cross-Border Services Aircraft repair, overhaul and maintenance activities which are required to maintain the airworthiness of Canadian-registered aircraft must be performed by Canadian-certified persons. Such certifications are not provided for enterprises located outside Canada, except sub- organizations of approved maintenance organizations that are themselves located in Canada. Pursuant to an airworthiness agreement between Canada and the United States, Canada recognizes the certifications and oversight provided by the United States for all repair, maintenance and overhaul activities performed by U.S.- certified persons, including the individual performing the work, located in the United States. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Canada SECTOR: Transportation SUB-SECTOR: Land Transportation INDUSTRY CLASSIFICATION: SIC 456 Truck Transport Industries SIC 4572 Interurban and Rural Transit Systems Industry SIC 4573 School Bus Operations Industry SIC 4574 Charter and Sightseeing Bus Services Industry TYPE OF RESERVATION: National Treatment (Article 1202) Local Presence (Article 1205) LEGAL CITATION: Motor Vehicle Transport Act, 1987, R.S.C., 1985, c. 29, (3rd Supp.), Parts I and II National Transportation Act, 1987, R.S.C., 1985, c. 28 (3rd Supp.), Part IV Customs Tariff, R.S.C., 1985, c. 41 (3rd Supp.), subsection 19(1) DESCRIPTION: Cross-Border Services Only persons of Canada, using Canadian-built or duty-paid trucks or buses, may provide truck or bus services between points in the territory of Canada. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Canada SECTOR: Transportation SUB-SECTOR: Water Transportation INDUSTRY CLASSIFICATION: SIC 4541 Freight and Passenger Water Transport Industry SIC 4542 Ferry Industry SIC 4543 Marine Towing Industry SIC 4549 Other Water Transport Industries SIC 4553 Marine Salvage Industry SIC 4559 Other Service Industries Incidental to Water Transport TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) Most-Favored-Nation Treatment (Articles 1103, 1203) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Canada Shipping Act, R.S.C., 1985, c. S-9, sections 6 and 7 DESCRIPTION: Cross-Border Services and Investment To register a ship in Canada for the purpose of providing international maritime transportation services, the owner of the ship must be: (a) a Canadian citizen or a citizen of a Commonwealth country, or (b) a corporation incorporated under the laws of, and having its principal place of business in, Canada or a Commonwealth country. For domestic maritime transportation services (cabotage), see Schedule of Canada, Annex II, p.II-C-10. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Canada SECTOR: Transportation SUB-SECTOR: Water Transportation INDUSTRY CLASSIFICATION: SIC 4541 Freight and Passenger Water Transport Industry SIC 4542 Ferry Industry SIC 4543 Marine Towing Industry SIC 4549 Other Water Transport Industries SIC 4553 Marine Salvage Industry SIC 4554 Piloting Service, Water Transport Industry SIC 4559 Other Service Industries Incidental to Water Transport TYPE OF RESERVATION: National Treatment (Article 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Canada Shipping Act, R.S.C., 1985, c. S-9, Part II DESCRIPTION: Cross-Border Services Masters, mates, and engineers are required to be certified by the Department of Transport as ship's officers while engaged on a Canadian- registered vessel. Only Canadian nationals may be certified as ship's officers. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Canada SECTOR: Transportation SUB-SECTOR: Water Transportation INDUSTRY CLASSIFICATION: SIC 4554 Piloting Service, Water Transport Industry TYPE OF RESERVATION: National Treatment (Article 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Pilotage Act, R.S.C., 1985, c. P-14 General Pilotage Regulations, C.R.C., Vol. XIII c. 1263 Atlantic Pilotage Authority Regulations, C.R.C. Vol. XIII, c. 1264 Laurentian Pilotage Authority Regulations, C.R.C., Vol. XIII, c. 1268 Great Lakes Pilotage Regulations, C.R.C., Vol. XIII, c. 1266 Pacific Pilotage Regulations, C.R.C., Vol. XIII, c. 1270 DESCRIPTION: Cross-Border Services A licence issued by the Department of Transport is required to provide pilotage services in Canada. Only Canadian citizens or permanent residents may obtain such licence. A permanent resident of Canada who has been issued a pilot's licence must become a Canadian citizen within five years of receipt of such licence in order to retain it. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Canada SECTOR: Transportation SUB-SECTOR: Water Transportation INDUSTRY CLASSIFICATION: SIC 454 Water Transport Industry TYPE OF RESERVATION: Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Shipping Conference Exemption Act, 1987, R.S.C., 1985, c.17 (3rd Supp.), section 18 DESCRIPTION: Cross-Border Services Members of a shipping conference shall maintain jointly an office or agency in the region of Canada where they operate. A shipping conference is an association of ocean carriers that has the purpose or effect of regulating rates and conditions for the transportation by such carriers of goods by water. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Canada SECTOR: Transportation SUB-SECTOR: Water Transportation INDUSTRY CLASSIFICATION: SIC 4541 Freight and Passenger Water Transport Industry SIC 4542 Ferry Industry SIC 4543 Marine Towing Industry TYPE OF RESERVATION: Most-Favored-Nation Treatment (Article 1203) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Coasting Trade Act, S.C., 1992, c. 31, subsection 3(5) DESCRIPTION: Cross-Border Services The prohibitions under the Coasting Trade Act set out in Schedule of Canada, Annex II, p. II-C-10 do not apply to any vessel that is owned by the U.S. Government when used solely for the purpose of transporting goods owned by the U.S. Government from the territory of Canada to supply Distant Early Warning sites. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Canada SECTOR: Energy SUB-SECTOR: Oil and Gas INDUSTRY CLASSIFICATION: [To be provided] TYPE OF RESERVATION: Performance Requirements (Article 1106) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Canada Oil and Gas Operations Act (in force as of September 1, 1992) Hibernia Development Project Act DESCRIPTION: 1. The terms and conditions of government assistance for the Hibernia project require that certain goods and services be sourced in Newfoundland and in Canada and that the project operator undertakes, on a "best efforts" basis, to achieve specific Canadian and Newfoundland content levels. 2. In addition, Canada reserves the right to impose any requirement or enforce any commitment or undertaking for the transfer of technology, a production process or other proprietary knowledge to a national or enterprise in Canada, in connection with the Hibernia project. DURATION: For purposes of this entry, paragraph 2 of the Description shall govern with respect to Canada's reservation to the obligations of Article 1106(1) (f). Indeterminate ============================================================================= ANNEX I Schedule of Canada SECTOR: Energy SUB-SECTOR: Oil and Gas INDUSTRY CLASSIFICATION: [To be provided] TYPE OF RESERVATION: Performance Requirements (Article 1106) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Canada Oil and Gas Operation Act, (in force as of September 1, 1992) Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act, S.C. 1988, c.28 Canada-Newfoundland Atlantic Accord, S.C. 1987, c.3 Yukon Oil and Gas Accord (under negotiation) Northwest Territories Oil and Gas Accord (under negotiation) DESCRIPTION: 1. Under the Canada Oil and Gas Operations Act, the Minister of Energy, Mines and Resources requires the applicant to submit a "benefits plan". Approval of the benefits plan is required to receive authorization to proceed with any oil and gas development project. 2. A "benefits plan" means a plan for the employment of Canadians and for providing Canadian manufacturers, consultants, contractors and service companies with a full and fair opportunity to participate on a competitive basis in the supply of goods and services used in any proposed work or activity referred to in the benefits plan. The Act permits the Minister to impose an additional requirement on the applicant, as part of the benefits plan, to ensure that disadvantaged individuals or groups have access to training and employment opportunities or can participate in the supply of goods and services used in any proposed work referred to in the benefits plan. Similar provisions will be included in the Yukon and Northwest Territories Accords. 3. The Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act and the Canada- Newfoundland Atlantic Accord Implementation Act have the same requirement for a "benefits plan" but also require that the "benefits plan" ensure that: (a) before carrying out any work or activity in the offshore area the corporation or other body submitting the plan shall establish in the Province an office where appropriate levels of decision-making are to take place; (b) expenditures shall be made for research and development to be carried out in the Province, and for education and training to be provided in the Province; and (c) first consideration shall be given to goods produced or services provided from within the Province, where those goods or services are competitive in terms of fair market price, quality and delivery. 4. The Boards administering the benefits plan under these Acts may also require that the plan include provisions to ensure that disadvantaged individuals or groups or corporations owned or cooperatives operated by them participate in the supply of goods and services used in any proposed work or activity referred in the benefits plan. 5. In addition, Canada reserves the right to impose any requirement or enforce any commitment or undertaking for the transfer of technology, a production process or other proprietary knowledge to a national or enterprise in Canada, in connection with the approval of development projects under the Acts cited above. DURATION: For purposes of this entry, paragraph 5 of the Description shall govern with respect to Canada's reservation to the obligations of Article 1106(1) (f). For purposes of this entry, the Yukon Oil and Gas Accord and the Northwest Territories Oil and Gas Accord shall be deemed to be existing measures, upon completion of their negotiation. Indeterminate ANNEX I Schedule of Mexico SECTOR: All sectors SUB-SECTOR: All sub-sectors INDUSTRY CLASSIFICATION: Not applicable TYPE OF RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Constituci¢n Pol¡tica de los Estados Unidos Mexicanos (United Mexican States Political Constitution). T¡tulo I Cap¡tulo I. Ley de Nacionalidad y Naturalizaci¢n (Nationality and Naturalization Law). Cap¡tulo VI (Disposiciones generales) Ley Org nica de la Fracci¢n I del Art¡culo 27 de la Constituci¢n (Organic Law of the First Section of Article 27 of the United Mexican States Political Constitution). Ley para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment). Cap¡tulos I y IV (Objeto y Fideicomisos en frontera y litorales) Reglamento de la Ley para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment). T¡tulo III Cap¡tulo I y T¡tulo III Cap¡tulo III. (Inversi¢n extranjera mediante fideicomisos) DESCRIPTION: Investment Foreigners and foreign enterprises, as defined in the Constituci¢n Pol¡tica de los Estados Unidos Mexicanos; and Mexican enterprises without a foreigners' exclusion clause may not acquire "direct dominion" (dominio directo) over land and water in a 100 kilometers strip along the country's borders or in a 50 kilometers strip inland from its coasts (the Restricted Zone). Nevertheless, foreigners, foreign enterprises and Mexican enterprises may acquire "Certificados de Participaci¢n Ordinaria" (CPO's). Such CPO's grant to the beneficiaries the right to use and enjoy the real estate and to receive the profits that it may obtain from the profitable use of the property. The CPO's are issued by a Mexican credit institution that has been granted authorization to acquire through trust the title to real estate intended for industrial and tourist activities in the Restricted Zone for a period not to exceed 30 years. The trust is renewable if: (a) The beneficiaries of the trust which is to be extinguished or terminated will be beneficiaries of the new trust; (b) the new trust is to be executed under the same terms and conditions as the trust which is to be extinguished or terminated, in respect of the purposes of the trust, the use of real estate and its characteristics; (c) the respective permits are requested within a period of 360 to 181 days prior to the trust be extinguished or terminated; and (d) the provisions of the Ley para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera and its regulations are observed. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: All sectors SUB-SECTOR: All sub-sectors INDUSTRY CLASSIFICATION: Not applicable TYPE OF RESERVATION: National Treatment (Article 1102) LEGAL CITATION: Ley Para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment). Reglamento de la Ley Para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment). DESCRIPTION: Investment The Comisi¢n Nacional de Inversiones Extranjeras in order to evaluate the applications submitted to its consideration (acquisitions or establishment of investments in restricted activities as set out in this Schedule), shall take into account the following criteria: (a) Its effects on employment and training; (b) Its technological contribution; (c) In general its contribution to increase the Mexican industrial production and competitiveness. The Comisi¢n Nacional de Inversiones Extranjeras may impose performance requirements which are not prohibited by Article 1106 of the Investment Chapter. DURATION: Description shall govern upon entry into force of this Agreement. ============================================================================= ANNEX I Schedule of Mexico SECTOR: All sectors SUB-SECTOR: All sub-sectors INDUSTRY CLASSIFICATION: Not applicable TYPE OF RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment). Reglamento de la Ley Para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment). DESCRIPTION: Investment Mexico will review the acquisition, whether directly or indirectly, of more than 49% of the ownership interest of a Mexican enterprise in an unrestricted sector, that is owned or controlled by Mexican nationals, directly or indirectly, by an investor of another Party if the value of the gross assets of the Mexican enterprise is not less than the applicable thresholds, effective on the date of entry into force of this Agreement and adjusted on each anniversary thereof. The calculation of the applicable review thresholds is set out in the following section below. DURATION: Description shall govern upon entry into force of this Agreement. The basis for calculating the threshold will be: (a) USD 25 million, for the three year period commencing on the date of entry into force of this Agreement; (b) USD 50 million, for the three year period commencing on the fourth year after the date of entry into force of this Agreement; (c) USD 75 million, for the three year period commencing on the seventh year after the entry into force of this Agreement; (d) USD 150 million, for the tenth year after entry into force of this Agreement. Beginning with the Agreement's second year these thresholds shall be adjusted for cumulative inflation based on the US GDP price deflator from the date of entry into force of this Agreement. Beginning with year eleven after entry into force of this Agreement, the threshold will be adjusted for growth in nominal Mexican GDP--but in no case will the threshold to be applied exceed that of Canada. ============================================================================= ANNEX I Schedule of Mexico SECTOR: All sectors SUB-SECTOR: All sub-sectors INDUSTRY CLASSIFICATION: Not applicable TYPE OF RESERVATION: National Treatment (Article 1102) Senior Management (Article 1107) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Constituci¢n Pol¡tica de los Estados Unidos Mexicanos (United Mexican States Political Constitution). Ley General de Sociedades Cooperativas (General Law of Cooperative Companies). T¡tulo I Cap¡tulo I y T¡tulo II Cap¡tulo II DESCRIPTION: Investment No more than 10 percent of the persons participating in a Mexican Cooperative Production enterprise may be foreigners. Foreigners cannot engage in general administrative functions. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: All sectors SUB-SECTOR: All sub-sectors INDUSTRY CLASSIFICATION: Not applicable TYPE OF RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Federal para el Fomento de la Microindustria (Law to Promote the Microindustry). DESCRIPTION: Investment Only Mexican nationals and Mexican enterprises with foreigners' exclusion clause may qualify as microindustry enterprises. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Agriculture, Livestock, Forestry, and Lumber Activities SUB-SECTOR: Agriculture, Livestock or Forestry INDUSTRY CLASSIFICATION: CMAP 1111 Agriculture CMAP 1112 Livestock CMAP 120011 Forestry CMAP 120012 Exploitation of Forest Nurseries CMAP 120030 Collection of Forest Products CMAP 120040 Falling Trees TYPE OF RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Constituci¢n Pol¡tica de los Estados Unidos Mexicanos (United Mexican States Political Constitution). Ley Agraria (Agrarian Law). T¡tulo VI, DESCRIPTION: Investment All enterprises constituted in Mexico which own land for agriculture, livestock or forestry purposes, must issue a special type of shares ("T" shares) which represent the value of the aforementioned land at the time of its acquisition. Investors of another Party and their investments may own up to 49 percent of such "T" shares. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Communications SUB-SECTOR: Entertainment Services (Broadcasting and Multipoint Distribution Systems, (MDS), and Cable Television) INDUSTRY CLASSIFICATION: CMAP 941104 Private Production and Transmission of Radio Programs (Limited to Production and Transmission of Radio Programs, MDS and uninterrupted music) CMAP 941105 Private Services of Production, Transmission and Repetition of Television Programming (Limited to Production, Transmission and Repetition of Television Programs, MDS, Direct Broadcasting Systems, and High Definition Television and Cable Television) TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Federal de Radio y Televisi¢n (Radio and Television Federal Law), T¡tulo IV (Funcionamiento), Cap¡tulo III (Programaci¢n) Reglamento de la Ley Federal de Radio y Televisi¢n y de la Ley de la Industria Cinematogr fica relativo al contenido de las transmisiones de Radio y Televisi¢n (Regulations of the Radio and Television Federal Law and Motion Picture Industry Law relating to Radio o Television Content), T¡tulo III (Programaci¢n) Reglamento del Servicio de Televisi¢n por Cable, (Cable Television Regulations) Cap¡tulo VI (Programaci¢n) DESCRIPTION: Cross-Border Services For the protection of copyrights a holder of a concession for a commercial broadcast station or for a cable television system in Mexico is required to obtain an authorization from the Secretar¡a de Gobernaci¢n to import in any form radio or television programming for broadcast or cable distribution of such programming within Mexico. The authorization will be granted if the request includes documentation showing that the foreign government, sponsoring international organization, or the private entrepreneur or organizer has granted the license ("derechos") to retransmit or distribute by cable such program. ============================================================================= ANNEX I Schedule of Mexico SECTOR: Communications SUB-SECTOR: Entertainment Services (Cable Television) INDUSTRY CLASSIFICATION: CMAP 941105 Private Services of Production, Transmission and Retransmission of Television Programming (Limited to cable television) TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Constituci¢n Pol¡tica de los Estados Unidos Mexicanos(United Mexican States Political Constitution), Article 32 Ley de V¡as Generales de Comunicaci¢n (General Means of Communication Law), Libro I Cap¡tulo III (Concesiones, Permisos y Contratos) Ley Federal de Radio y Televisi¢n (Radio and Television Federal Law), T¡tulo III, (Concesiones, Permisos e Instalaciones) Ley para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment) Reglamento del Servicio de Televisi¢n por Cable (Cable Television Regulations), Cap¡tulo II (Concesiones) Reglamento de la Ley para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment) DESCRIPTION: Cross-Border Services 1. A concession granted by the Secretar¡a de Comunicaciones y Transportes is required to construct and operate, or to operate, cable television systems. Such concession is granted only to Mexican nationals or Mexican enterprises. Investment: 2. Investors of another Party and their investments may own, directly or indirectly, up to 49 percent of an enterprise established or to be established in Mexico which owns or operates a cable television systems or provides cable television services. DURATION: Cross-Border Services Indeterminate. Investment Paragraph 2 of the description shall govern upon entry into force of this Agreement; subject to discussion by the Parties five years after the entry into force of this Agreement. ============================================================================= ANNEX I Schedule of Mexico SECTOR: Communications SUB-SECTOR: Entertainment Services INDUSTRY CLASSIFICATION: CMAP 941103 Private Exhibition of Films (cinema) TYPE OF RESERVATION: National Treatment (Article 1202) Performance Requirements (Article 1106) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley de la Industria Cinematogr fica (Motion Picture Industry Law) Reglamento de la Ley de la Industria Cinematogr fica (Regulations of the Motion Picture Industry) DESCRIPTION: Cross-Border Services and Investment On an annual basis, 30 percent of the screen time of every theater may be reserved for films produced, either within or outside Mexico, by Mexican enterprises. DURATION: The description shall govern upon entry into force of this Agreement. Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Communications SUB-SECTOR: Entertainment Services (Broadcasting, Multipoint Distribution Systems (MDS), and Cable Television) INDUSTRY CLASSIFICATION: CMAP 941104 Private Production and Transmission of Radio Programs (Limited to Production and Transmission of Radio Programs, MDS and uninterrupted music) CMAP 941105 Private Services of Production, Transmission and Retransmission of Television Programming (Limited to Production, Transmission and Retransmission of Television Programs, MDS, Direct Broadcasting Systems, High-Definition Television and Cable Television) TYPE OF RESERVATION: National Treatment (Article 1202) Performance Requirement (Article 1106) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Federal de Radio y Televisi¢n, (Radio and Television Federal Law), T¡tulo IV (Funcionamiento), Cap¡tulo III (Programaci¢n) Reglamento de la Ley Federal de Radio y Televisi¢n y de la Ley de la Industria Cinematogr fica relativo al contenido de las transmisiones de Radio y Televisi¢n (Regulation of Radio and Television Federal Law and Regulations of the Motion Picture Industry Law relating to Broadcasting Content), T¡tulo III (Programaci¢n) Reglamento del Servicio de Televisi¢n por Cable (Cable Television Regulations), Cap¡tulo VI (Programaci¢n) DESCRIPTION: Cross-Border Services and Investment The use of the Spanish language is required for the broadcast, cable or multipoint-distribution-system distribution of radio or television programming, except when the Secretar¡a de Gobernaci¢n authorizes the use of another language. A majority of personnel involved in the production and performance of a live broadcast programming activity must be Mexican nationals. To perform in Mexico, a radio and television announcer or presentor who is not a Mexican national must obtain an authorization from the Secretar¡a de Gobernaci¢n. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Communications SUB-SECTOR: Entertainment Services (Broadcasting, and Multipoint Distribution Systems and Cable Television) INDUSTRY CLASSIFICATION: CMAP 941105 Private Services of Production, Transmission and Retransmission of Television Programming (Limited to Broadcasting, Cable Television and Multipoint Distribution Systems) TYPE OF RESERVATION: National Treatment (Article 1202) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Federal de Radio y Televisi¢n, (Radio and Television Federal Law), T¡tulo IV (Funcionamiento), Cap¡tulo III (Programaci¢n) Reglamento de la Ley Federal de Radio y Televisi¢n y de la Ley de la Industria Cinematogr fica relativo al contenido de las transmisiones de Radio y Televisi¢n (Regulations of the Radio and Television Federal Law and Regulation of the Motion Picture Industry Law relating to Broadcasting Content), T¡tulo III (Programaci¢n) Reglamento del Servicio de Televisi¢n por Cable, (Cable Television Regulations), Cap¡tulo VI (Programaci¢n) DESCRIPTION: Cross-Border Services and Investment The use of the Spanish language or Spanish subtitles is required for advertising broadcast or distributed in Mexico. Advertising included in programs transmitted directly from outside Mexico may not be broadcast in such programs when they are retransmitted or distributed in Mexico DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Communications SUB-SECTOR: Telecommunications (Enhanced or Value-Added Services) INDUSTRY CLASSIFICATION: CMAP 720006 Other Telecomunications Services (Limited to Enhanced or Value-Added Services) TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley de V¡as Generales de Comunicaci¢n (General Means of Communication Law), Libro Primero, Cap¡tulo III (Concesiones, Permisos y Contratos) Reglamento de Telecomunicaciones (Telecommunications Regulations), Cap¡tulo 4, (Permisos) Ley para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment) Reglamento de la Ley para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment) DESCRIPTION: Cross-border Services 1. A provider of enhanced or value-added services must obtain a permit issued by the Secretar¡a de Comunicaciones y Transportes. 2. Persons of Canada or the United States may provide all enhanced or value-added services, except videotext or enhanced packet switching services, without the need to establish local presence. 3. Videotext and enhanced packet switching services may not be provided on a cross-border basis. Investment 1. Investors of another Party and their investments may own 100 percent of an enterprise established or to be established in Mexico that provides any telecommunication enhanced or value-added service, other than videotext or enhanced packet switching services. 2. Investors of another Party and their investments may own, directly or indirectly, up to 49 percent of an enterprise established or to be established in Mexico that provides videotext or enhanced packet switching services. DURATION: Cross-border Services Paragraphs 2 and 3 of the description shall govern upon entry into force of this Agreement. Commencing July 1, 1995, a person of Canada or the United States may provide videotext or enhanced packet switching services without the need to establish a local presence in Mexico. Investment Paragraph 1 of the description shall govern upon entry into force of this Agreement. Commencing July 1, 1995, investors of another Party and their investments may own 100 percent of an enterprise established or to be established in Mexico that provides videotext or enhanced packet switching services. ============================================================================= ANNEX I Schedule of Mexico SECTOR: Communications SUB-SECTOR: Transport Telecommunications General Means of Communication INDUSTRY CLASSIFICATION: CMAP 7200 Communications CMAP 7100 Transport CMAP 9411 Radio and Television TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley de V¡as Generales de Comunicaci¢n (General Means of Communication Law) Ley Federal de Radio y Televisi¢n, (Radio and Television Federal Law) Reglamento del Servicio de Televisi¢n por Cable (Cable Television Regulations) Reglamento de Telecomunicaciones (Telecommunications Regulations) DESCRIPTION: Investment Foreign Governments and Foreign state enterprises or their investments may not invest, directly or indirectly, in a Mexican enterprise providing services related to the general means of communication set out herein. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Construction SUB-SECTOR: INDUSTRY CLASSIFICATION: CMAP 501101 Residential or Housing Construction CMAP 501102 Non-residential Construction CMAP 501200 Construction of Urbanization Projects CMAP 501311 Construction of Industrial Plants CMAP 501312 Construction of Electricity Generation Plants CMAP 501321 Construction and Maintenance of Electricity Conduction Lines and Networks CMAP 501411 Mounting or Installing Concrete Structures CMAP 501412 Mounting or Installing Metallic Structures CMAP 501421 Marine and River Works CMAP 501422 Construction of Routes for Land Transportation CMAP 502001 Hydraulic and Sanitation Installations in Buildings CMAP 502002 Electrical Installations in Buildings CMAP 502003 Telecommunications Installations CMAP 502004 Other Special Installations CMAP 503001 Earth Movement CMAP 503002 Cement Works CMAP 503003 Underground Excavations CMAP 503004 Underwater Works CMAP 503005 Installation of Signs and Warnings CMAP 503006 Demolition CMAP 503007 Construction of Water Purification or Treatment Plants CMAP 503009 Drilling Water Wells CMAP 503010 Construction Activities not Elsewhere Classified TYPE OF RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment), Cap¡tulos II y III Reglamento de la Ley para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment). DESCRIPTION: Investment Prior approval of the Comisi¢n Nacional de Inversiones Extranjeras is required for investors of another Party or their investments to own, directly or indirectly, more than 49 percent of the ownership interests of an enterprise established or to be established in Mexico that carry out construction activities as set out in the classification mentioned above. DURATION: Five years after the entry into force of this Agreement, investors of another Party and their investments may own 100 percent of the ownership interests of such enterprises without Comisi¢n Nacional de Inversiones Extranjeras' prior approval. ============================================================================= ANNEX I Schedule of Mexico SECTOR: Construction SUB-SECTOR: Not applicable INDUSTRY CLASSIFICATION: CMAP 503008 Exploration and drilling works and services done by specialized contractors excluding the case when these same works and services are done by personnel of PEMEX in the activities classified under industrial classification 220000. TYPE OF RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Constituci¢n Pol¡tica de los Estados Unidos Mexicanos (United Mexican States Political Constitution), T¡tulo I Cap¡tulo I. Ley Reglamentaria del Art¡culo 27 Constitucional en el Ramo del Petr¢leo (Regulatory Law of Article 27 of the United Mexican States Political Constitution in matters related with Petroleum) Ley para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment) Cap¡tulo I Reglamento de la Ley para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment) DESCRIPTION: Investment Risk-sharing services contracts are prohibited. Prior approval of the Comisi¢n Nacional de Inversiones Extranjeras is required for investors of another Party and their investments to own, directly or indirectly, more than 49 percent of the ownership interests of an enterprise established or to be established in Mexico involved in "non-risk sharing" service contracts for the drilling of petroleum and gas wells. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Educational Services SUB-SECTOR: Private Schools INDUSTRY CLASSIFICATION: CMAP 921101 Preschool Private Educational Services CMAP 921102 Primary School Private Educational Services CMAP 921103 Secondary School Private Educational Services CMAP 921104 Middle High School Private Educational Services CMAP 921105 Higher Private Educational Services CMAP 921106 Private Educational Services that Combine Preschool, Primary, Secondary, Middle High and Higher Instruction TYPE OF RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment) Reglamento de la Ley para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment) Ley Para la Coordinaci¢n de la Educaci¢n Superior (Law for the Coordination of the Higher Education), Cap¡tulo II Ley Federal de Educaci¢n (Education Law), Cap¡tulo III DESCRIPTION: Investment Prior approval of the Comisi¢n Nacional de Inversiones Extranjeras is required for investors of another Party or their investments to own, directly or indirectly, more than 49 percent of the ownership interests of an enterprise established or to be established in Mexico that operates educational services as set out in the classification mentioned above. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Energy SUB-SECTOR: Commercialization of Petroleum Products INDUSTRY CLASSIFICATION: CMAP 623050 Retail Sales of Gas of liquified petroleum gas (LPG), including the installation of fixed deposits when the facilities are built by the same establishment. TYPE OF RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Reglamentaria del Art¡culo 27 Constitucional en el Ramo del Petr¢leo (Regulatory Law of Article 27 of the United Mexican States Political Constitution related to Oil). Ley para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment). Cap¡tulo I Reglamento de la Ley Reglamentaria del Art¡culo 27 Constitucional en el Ramo de Petr¢leo (Reglamentation of the Regulatory Law of Article 27 of the United Mexican States Political Constitution related to Oil) Reglamento de la Distribuci¢n de Gas.(Regulations of the Distribution of LPG). Cap¡tulos I y II (Autorizaciones y permisos) Reglamento de la Ley para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment). DESCRIPTION: Investment Only Mexican nationals and Mexican enterprises with foreigners' exclusion clause may engage in the distribution of liquified Petroleum gas. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Energy SUB-SECTOR: Commercialization of Petroleum Products INDUSTRY CLASSIFICATION: CMAP 6260000 Retail Outlets of Gasoline and Diesel. Includes Lubricants, Oils and Additives for Resale in these Retail Outlets. TYPE OF RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Reglamentaria del Art¡culo 27 Constitucional en el Ramo del Petr¢leo (Regulatory Law of Article 27 of the United Mexican States Political Constitution related to Oil) Reglamento de la Ley Reglamentaria del Art¡culo 27 Constitucional en el Ramo del Petr¢leo (Reglamentation of the Regulatory Law of Article 27 of the United Mexican States Political Constitution related to Oil). DESCRIPTION: Only Mexican nationals and Mexican enterprises with foreigners' exclusion clause may acquire, establish and operate retail outlets engaged in the resale of gasoline, diesel, lubricants, oils and additives. DURATION: The description shall govern upon entry into force of this Agreement ============================================================================= ANNEX I Schedule of Mexico SECTOR: Fishing SUBÄSECTOR: Fishing INDUSTRY CLASSIFICATION: CMAP 130011 Fishing on the High Seas CMAP 130012 Coastal Fishing CMAP 130013 Fresh Water Fishing CMAP 130014 Fishing in the Economic Exclusive Zone TYPE OF RESERVATION: National Treatment (Article 1102) Most-Favored-Nation Treatment (Article 1103) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley de Pesca (Fishing Law) Cap¡tulo I. Ley de Navegaci¢n y Comercio Mar¡timo (Navigation and Maritime Commerce Law), Libro II T¡tulo Unico Cap¡tulo V Ley Federal del Mar (Federal Sea Law) Ley Federal de Aguas (Federal Law of Water) Ley para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment). Reglamento de la Ley para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment). DESCRIPTION: Investment With respect to enterprises established or to be established in Mexico performing coastal fishing, fresh water fishing and fishing in the exclusive economic zone, investors of another Party and their investments may own, directly or indirectly, up to 49 percent of the ownership interest of such enterprises. With respect to enterprises established or to be established in Mexico performing fishing on the high seas, prior approval of the Comision Nacional de Inversiones Extranjeras is required for investors of another Party or their investments to own, directly or indirectly, more than 49 percent of the ownership interests of enterprises established or to be established in Mexico performing fishing on the high seas. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Manufacturing and Assembly of Goods SUB-SECTOR: Auto Parts Industry INDUSTRY CLASSIFICATION: CMAP 383103 Manufacturing of Parts and Accessories for Electrical Automotive Systems CMAP 384121 Manufacture and Assembly of Car and Truck Bodies and Tows CMAP 384122 Manufacture of Car and Trucks Motors and Their Parts CMAP 384123 Manufacture of Car and Truck Transmission System Parts CMAP 384124 Manufacture of Car and Truck Suspension System Parts CMAP 384125 Manufacture of Car and Truck Brake System Parts and Accessories CMAP 384126 Manufacture of Other Car and Truck Parts and Accessories TYPE OF RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Annex 300-A (Trade and Investment in the Automotive Industry Sector) of this Agreement. Ley Para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment). Reglamento de la Ley Para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment). Decreto para el fomento y modernizaci¢n de la Industria Automotriz (Decree for the Development and Modernization of the Automotive Industry) ("Auto Decree"). Decreto que Determina Reglas para la Aplicaci¢n del Decreto para el Fomento y Modernizaci¢n de la Industria Automotriz (Resolution that Establishes Rules for the Implementation of the Auto Decree) ("Auto Decree Implementing Regulations"). DESCRIPTION: Investors of another Party and their investments may own, directly or indirectly, up to 49 percent of the ownwership interests of an enterprise established or to be established in Mexico and engaged in the auto parts industry. Investors of another Party and their investments that qualify as "national suppliers" may own 100% of an enterprise established or to be established in Mexico engaged in the manufactured of specified auto parts. To qualify as "national supplier", the enterprise must: (a) obtain a national value added calculated as set out in the "Auto Decree Implementing Regulations" of at least 20%; and (b) not be controlled or related, directly or indirectly, to a manufacturer of motor vehicles. DURATION: Annex 300-A (Trade and Investment in the Automotive Sectors) of Chapter Three (National Treatment and Market Access) shall govern. Commencing on the sixth year after the entry into force of this Agreement, investors of another Party and their investments may own 100 percent of the ownership interests of an enterprise established or to be established in Mexico engaged in auto parts industry. (See also page I-M-39 of this Schedule - performance requirements) ============================================================================= ANNEX I Schedule of Mexico SECTOR: Manufacture of Goods SUB-SECTOR: Automotive Industry INDUSTRY CLASSIFICATION: CMAP 383103 Manufacturing of Parts and Accessories for Electrical Automotive Systems CMAP 3841 Automotive Industry. CMAP 384121 Manufacture and Assembly of Car and Truck Bodies and Tows CMAP 384122 Manufacture of Car and Trucks Motors and Their Parts CMAP 384123 Manufacture of Car and Truck Transmission System Parts CMAP 384124 Manufacture of Car and Truck Suspension System Parts CMAP 384125 Manufacture of Car and Truck Brake System Parts and Accessories CMAP 384126 Manufacture of Other Car and Truck Parts and Accessories TYPE OF RESERVATION: Performance Requirements (Article 1106) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Annex 300-A (Trade and Investment in the Automotive Sector) of Chapter Three (Market Access) of this Agreement Decreto para el fomento y modernizaci¢n de la Industria Automotriz (Decree for the Development and Modernization of the Automotive Industry) ("Auto Decree") Decreto que Determina Reglas para la Aplicaci¢n del Decreto para el Fomento y Modernizaci¢n de la Industria Automotriz (Resolution that Establishes Rules for the Implementation of the Auto Decree) ("Auto Decree Implementing Regulations") DESCRIPTION: Investment Annex 300-A (Trade and Investment in the Automotive Sector) of Chapter Three (Market Access) shall govern. A summary of performance requirements in the automotive industry follows: (a) National value added shall constitute at least 20% of the total value of sales of an enterprise of the autoparts industry or of a "National Supplier". In calculating the national value added, custom duties shall be included in the value of imports. (b) A manufacturer of motor vehicles must attain specified levels of national value added from suppliers of Mexican parts (enterprises of the autoparts industry and national suppliers) and must comply with specified trade balance requirements in order to receive permits for the importation of new motor vehicles. (c) Manufacturers of autotransportation vehicles may only import the types of autotransportation vehicles it produces in Mexico and in a quantity not exceed 50% of the number of such vehicles it produces in Mexico in a year. DURATION: Annex 300-A (Trade and Investment in the Automotive Sector) of Chapter Three (Market Access) shall govern upon entry into force of this Agreement Commencing on the sixth year after entry into force of this Agreement Mexico will eliminate restrictions on the number of an autotransportation vehicles that a manufacture autotransportation vehicles may import. Commencing on the eleventh year after the entry into force of this Agreement, Mexico will eliminate all performance requirements in the Auto Decree and the "Auto Decree Implementing Regulations". ============================================================================= ANNEX I Schedule of Mexico SECTOR: Manufacture of Goods SUB-SECTOR: Maquiladora Industry INDUSTRY CLASSIFICATION: Not applicable TYPE OF RESERVATION: Performance Requirements (Article 1106) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Aduanera (Customs Law) Decreto para el Fomento y Operaci¢n de la Industria Maquiladora de Exportaci¢n (Decree for the Promotion and Operation of Maquiladora Industry for Export) DESCRIPTION: Investment Persons authorized by the Secretar¡a de Comercio y Fomento Industrial to operate under the "Maquiladora Decree" may not sell to the domestic market more than 50% of the total value of its exports. DURATION: Domestic market may not exceed: (a) during the first year of entry into force of this Agreement, 55% of the total value of its exports; (b) during the second year after the date of entry into force of this Agreement, 60% of the total value of its exports; (c) during the third year after the date of entry into force of this Agreement, 65% of the total value of its exports; (d) during the fourth year after the date of entry into force of this Agreement, 70% of the total value of its exports; (e) during the fifth year after the date of entry into force of this Agreement, 75% of the total value of its exports; (f) during the sixth year after the date of entry into force of this Agreement, 80% of the total value of its exports; (g) during the seventh year after the date of entry into force of this Agreement, 85% of the total value of its exports; (h) from the eighth year after the date of entry into force of this Agreement and thereafter, persons may not be subject to this requirement. ============================================================================= ANNEX I Schedule of Mexico SECTOR: Manufacture of Goods SUB-SECTOR: Not applicable INDUSTRY CLASSIFICATION: Not applicable TYPE OF RESERVATION: Performance Requirements (Article 1106) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Reglamentaria del Art¡culo 131 de la Constituci¢n Pol¡tica de los Estados Unidos Mexicanos en Materia de Comercio Exterior (Mexican Foreign Trade Act) Decreto para el Fomento y Operaci¢n de las Empresas Altamente Exportadoras" (Decree for the Promotion and Operation of High-Export Firms) DESCRIPTION: Investment 1. "Direct exporters" authorized by the Secretar¡a de Comercio y Fomento Industrial to operate under the "ALTEX Decree" must export at least 40% of their total sales or $2,000,000. U.S. dollars. 2. "Indirect exporters" authorized by the Secretar¡a de Comercio y Fomento Industrial to operate under the "ALTEX Decree" must export at least 50% of their total sales. DURATION: Seven years after the entry into force of this Agreement, direct and indirect exporters will not be subject to the above mencioned percentage. ============================================================================= ANNEX I Schedule of Mexico SECTOR: Manufacture of Goods SUB-SECTOR: Not applicable INDUSTRY CLASSIFICATION: Not applicable TYPE OF RESERVATION: Performance Requirements (Article 1106) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Reglamentaria del Art¡culo 131 de la Constituci¢n Pol¡tica de los Estados Unidos Mexicanos en Materia de Comercio Exterior (Mexican Foreign Trade Act). Ley Aduanera (Customs Law). Programa de Importaci¢n Temporal para Producir Art¡culos de Exportaci¢n (Temporal Import Program to Produce Export Goods). DESCRIPTION: Investment Persons authorized by Secretar¡a de Comercio y Fomento Industrial to operate under the "PITEX Decree" are required to: (a) export at least 30% of their total production for the temporary entry of machinery, equipment, instruments, molds and durable tools used in the manufacturing process; equipment used to handle materials directly related to exported such goods; and research, industrial security, quality control, communication, training personnel, computer and environmental devices, equipment and accessories or others related with the process of the goods exported. (b) export at least 10% of their total production or $500,000 U.S.dollars for the temporary import of raw materials, parts and components totally used as inputs on the export merchandise, packages, bottles, containers and trailer's containers which are fully used to contain export merchandise; fuel, lubricants, auxiliary materials, reparation of tools and equipment consumed in the export process. DURATION: As from the eighth year after the date of entry into force of this Agreement such persons will not be subject to the above mentioned percentages. ============================================================================= ANNEX I Schedule of Mexico SECTOR: Manufacturing Industry SUB-SECTOR: Artificial explosives, fireworks, firearms and cartridges INDUSTRY CLASSIFICATION: CMAP 352236 Manufacturing of Artificial Explosives and Fireworks CMAP 382208 Manufacturing of Firearms and Cartridges TYPE OF RESERVATION: National Treatment (Article 1102) Senior Management (Article 1107) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Federal de Armas de Fuego y Explosivos (Federal Law of Firearms and Explosives) T¡tulo III Cap¡tulo I Ley para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment) Reglamento de la Ley Federal de Armas de Fuego y Explosivos (Regulations of the Federal Law of Firearms and Explosives) Cap¡tulo IV Reglamento de la Ley para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment) DESCRIPTION: Investment Investors of another Party and their investments may own, directly or indirectly, up to 49 percent of the ownership interest of an enterprise established or to be established in Mexico that manufacture artificial explosives and fireworks, and ammunition as set out in the classification mentioned above. Foreigners cannot appoint directors nor become members of the board of directors of such enterprises. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Mining SUB-SECTOR: Extraction and Exploitation of Minerals INDUSTRY CLASSIFICATION: CMAP 210000 Exploitation of Mineral Carbon CMAP 231000 Extraction of Minerals Containing Iron CMAP 232001 Extraction of Minerals Containing Gold, Silver and Other Precious Minerals and Metals CMAP 232002 Extraction of Mercury and Antimony CMAP 232003 Extraction of Industrial Minerals Containing Lead and Zinc CMAP 232004 Extraction of Minerals Containing Copper CMAP 232006 Extraction of Other Metallic Minerals Not Containing Iron CMAP 291001 Extraction of Sand and Gravel CMAP 291002 Extraction of Marble and other Gravels for construction CMAP 291003 Exploitation of Feldspar CMAP 291004 Extraction of Kaolin, Clay and Refractory Minerals CMAP 291005 Extraction of Limestones CMAP 291006 Exploitation of Gypsum CMAP 292001 Extraction of Barium Oxide CMAP 292002 Extraction of Phosphoric Rock CMAP 292003 Extraction of Fluorite CMAP 292004 Extraction of Sulphur CMAP 292005 Extraction of Other Minerals in Order to Obtain Chemicals CMAP 292006 Extraction of Salt CMAP 292007 Extraction of Graphite CMAP 292008 Extraction of other Non Metallic Minerals TYPE OF RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Minera (Mining Law) Ley Para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment) Reglamento de la Ley Minera (Mining Law Regulations) Reglamento de la Ley Para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment) DESCRIPTION: Investment Prior approval of the Comisi¢n Nacional de Inversiones Extranjeras is required for investors of another Party or their investments to own, directly or indirectly, more than 49 percent of the ownership interests of an enterprise established or to be established in Mexico engaged in the extraction or exploitation of all kind of minerals. DURATION: The description shall govern upon the entry into force of this Agreement. Commencing on the sixth year after the entry into force of this Agreement investors of another Party and their investments may own 100 percent of ownership interests of an enterprise established or to be established in Mexico engaged in such activities. ============================================================================= ANNEX I Schedule of Mexico SECTOR: Printing, Editing and Associated Industries SUB-SECTOR: Newspaper Publishing INDUSTRY CLASSIFICATION: CMAP 342001 Newspaper Publishing TYPE OF RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment) Reglamento de la Ley para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment) DESCRIPTION: Investment Investors of another Party and their investments may own 100 percent of an enterprise established or to be established in Mexico engaged in the simultaneous printing and distribution in Mexico of a daily newspaper that is published outside of Mexico. Investors of another Party and their investments may own, directly or indirectly, up to 49 percent of an enterprise established or to be established in Mexico engaged in the publication of daily newspapers written primarily for a Mexican audience and distributed in Mexico. For purposes of this reservation, daily newspapers are those published at least five days a week. DURATION: The description shall govern upon entry into force of this Agreement. ============================================================================= ANNEX I Schedule of Mexico SECTOR: Professional, Technical and Specialized Services and Other Services Provider by natural persons SUB-SECTOR: Medical Doctors INDUSTRY CLASSIFICATION: CMAP 9231 Private Medical, Odontological and Veterinary Services (limited to medical and odontological services) TYPE OF RESERVATION: National Treatment (Article 1202) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Federal del Trabajo (Federal Labor Law) DESCRIPTION: Cross-Border Services Only Mexican nationals licensed as doctors in Mexico may provide medical in-house services in Mexican enterprises. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Professional, Technical and Specialized Services and Services Provider by natural persons SUB-SECTOR: Specialized Personnel INDUSTRY CLASSIFICATION: CMAP 951012 Custom Brokers and Representation Agency Services (limited to shippers' export declarations) TYPE OF RESERVATION: National Treatment (Article 1202) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Aduanera, (Customs Law) Cap¡tulo Unico, T¡tulo Noveno DESCRIPTION: Cross-Border Services A shipper's export declaration must be processed by a Mexican national licensed as a customs broker (agente aduanal) or by the representative (apoderado aduanal) employed by the exporter and authorized by the Secretar¡a de Hacienda y Cr‚dito P£blico for this purpose. DURATION: Indeterminate; subject to discussion by the Parties five years after the entry into force of this Agreement. ============================================================================= ANNEX I Schedule of Mexico SECTOR: Professional, Technical and Specialized Services and Other Services Provider by natural persons SUB-SECTOR: Professional Services INDUSTRY CLASSIFICATION: CMAP 9510 Professional, Technical and Specialized Services (limited to Professional Services) TYPE OF RESERVATION: National Treatment (Article 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal and State LEGAL CITATION: Ley Reglamentaria del Art¡culo 5o. Constitucional, relativo al ejercicio de las profesiones en el Distrito Federal y sus regulaciones (Regulatory Law of Article 5 of the United Mexican States Political Constitution in relation to Professional Services and its regulations) Cap¡tulo III, Secci¢n Tercera, Cap¡tulos IV y V Equivalent State Laws Ley General de Poblaci¢n (General Population Law) Cap¡tulo III DESCRIPTION: Cross-Border Services Only Mexican nationals may be licensed at the federal level, in the Distrito Federal, and in the States of Baja California Sur, Colima, Chihuahua, Durango, Jalisco, Estado de M‚xico, Morelos, Nayarit, Nuevo Le¢n, Puebla, Quer‚taro, Sonora, Tabasco and Veracruz in professions that require a "c‚dula professional". Only a permanent resident (inmigrado or inmigrante) in Mexico may be granted a waiver of the citizenship requirement by the Supreme Court to be licensed as a professional at the federal level. DURATION: Citizenship and permanent residency requirements are subject to removal within two years after the entry into force of this Agreement in accordance with Article 1210(3). Upon removal of these requirements, a foreign professional will be required to have non-immigrant visitor status and an address in Mexico. With respect to legal services see Mexico's Schedule in Annex II, p. M- 10. ============================================================================= ANNEX I Schedule of Mexico SECTOR: Professional, Technical and Specialized Services and Services Provided by natural persons SUB-SECTOR: Professional Services INDUSTRY CLASSIFICATION: CMAP 951002 Legal Services and Foreign Legal Consultants TYPE OF RESERVATION: National Treatment (Article 1102 and 1202) Most-Favored-Nation Treatment (Articles 1103 and 1203) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal and State LEGAL CITATION: Ley Reglamentaria del Art¡culo 5o. Constitucional, relativo al ejercicio de las profesiones en el Distrito Federal (Regulatory Law of Article 5' of the United Mexican States Political Constitution in relation to Professional Services), Cap¡tulo I, Cap¡tulo III, Secci¢n Tercera Reglamento de la Ley para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment) DESCRIPTION: Cross Border Services and Investment Except as provided for in this reservation, only lawyers licensed in Mexico may have an ownership interest in a law firm established in Mexico. Lawyers licensed in a Canadian province that allows partnerships between lawyers licensed in that province and lawyers licensed in Mexico, will be permitted to form partnerships with lawyers licensed in Mexico. The number of lawyers licensed in Canada serving as partners, and their ownership interest in the partnership, shall not exceed the number of lawyers licensed in Mexico serving as partners, and their ownership interest in the partnership. A lawyer licensed in Canada shall not be allowed to practice or advise on Mexican law. A law firm established in Mexico resulting from the partnership of lawyers licensed in Canada and lawyers licensed in Mexico may hire lawyers licensed in Mexico as employees. Lawyers licensed in Canada will be subject to the regime for foreign legal consultants established in page M-2 of Schedule VI. DURATION: The description shall govern upon entry into force of this Agreement. ============================================================================= ANNEX I Schedule of Mexico SECTOR: Professional, Technical and Specialized Services and Services Provided by natural persons SUB-SECTOR: Professional Services INDUSTRY CLASSIFICATION: CMAP 951003 Accounting and Auditing Services (limited to accounting services) TYPE OF RESERVATION: National Treatment (Article 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: C¢digo Fiscal de la Federaci¢n, (Federal Tax Code), T¡tulo Tercero, Cap¡tulo Unico Reglamento del C¢digo Fiscal de la Federaci¢n, (Regulations of the Federal Tax Code) Reglamento de la Ley Para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment) DESCRIPTION: Cross-Border Services Only Mexican nationals who are licensed as accountants in Mexico are authorized to perform audits for tax purposes on behalf of the following: (a) state enterprises, (b) enterprises that are authorized to receive tax-deductible donations, (c) enterprises with income, capital stock, number of employees, and operations above levels specified annually by the Secretar¡a de Hacienda y Cr‚dito P£blico, or (d) enterprises undergoing a merger or divestiture. DURATION: Citizenship and permanent residency requirements are subject to removal within two years after the entry into force of this Agreement in accordance with Article 1210(3). Upon removal of these requirements, a foreign professional will be required to have non-immigrant visitor status and an address in Mexico. ============================================================================= ANNEX I Schedule of Mexico SECTOR: Professional, Technical and Specialized Services and Services Provided by natural persons SUB-SECTOR: Specialized Services INDUSTRY CLASSIFICATION: CMAP 951001 Notary Public (limited to Corredores P£blicos) TYPE OF RESERVATION: National Treatment (Articles 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal and State LEGAL CITATION: C¢digo de Comercio (Commerce Code), Libro Primero, T¡tulo Tercero Reglamento de la Ley para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment) Ley para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment) DESCRIPTION: Cross-Border Services 1. Only a Mexican by birth may be licensed to be a commercial notary public. 2. A commercial notary public may not have any business affiliations with any person to provide commercial notary public services. DURATION: 1. Citizenship and permanent residency requirements are subject to removal within two years after the entry into force of this Agreement in accordance with Article 1210(3). Upon removal of these requirements, a foreign professional will be required to have non-immigrant visitor status and an address in Mexico. 2. Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Professional, Technical and Specialized Services and Services Provided by Natural Persons SUB-SECTOR: Specialized Services INDUSTRY CLASSIFICATION: CMAP 951001 Notary Public TYPE OF RESERVATION: National Treatment (Article 1102, 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal and State LEGAL CITATION: Ley del Notariado del Distrito Federal (Notary Law of the Federal District, and its equivalents at state laws) Ley para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment) Reglamento de la Ley para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment) DESCRIPTION: Cross-Border Services and Investment Only Mexicans by birth may be licensed to be notaries public. A notary public may not have any business affiliations with any person to provide notary public services. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Professional, Technical and Specialized Services and Services Provided by Natural Persons SUB-SECTOR: Specialized Services INDUSTRY CLASSIFICATION: CMAP 923121 Private Veterinary Services to Cattle TYPE OF RESERVATION: National Treatment (Article 1202) LEVEL OF GOVERNMENT: Federal, State and Local LEGAL CITATION: Reglamento de Control de Productos Qu¡mico-Farmac‚uticos, Biol¢gicos, Alimenticios, Equipos y Servicios para Animales, (Chemical Products Control Regulations) Cap¡tulos IV y V DESCRIPTION: Cross-Border Services Veterinarians responsible for enterprises managing chemical, pharmaceutical and biological goods for application to animals must be Mexican nationals. A Mexican national who is a licensed professional must be responsible for the laboratories of such enterprises. DURATION: Citizenship and permanent residency requirements are subject to removal within two years after the entry into force of this Agreement in accordance with Article 1210(3). Upon removal of these requirements, a foreign professional will be required to have non-immigrant visitor status and an address in Mexico. ============================================================================= ANNEX I Schedule of Mexico SECTOR: Retail Commerce SUB-SECTOR: Sales of Non-Food Products in Specialized Establishment INDUSTRY CLASSIFICATION: CMAP 623087 Sales of Firearms, Cartridges and Ammunition CMAP 612024 Wholesale Commerce, not elsewhere Classified (limited to a firearms, cartridges and ammunition) TYPE OF RESERVATION: National Treatment (Article 1102) Senior Managment (Article 1107) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Federal de Armas de Fuego y Explosivos (Federal Law of Firearms and Explosives), T¡tulo Tercero, Cap¡tulo I Reglamento de la Ley de Armas de Fuego y Explosivos (Regulation of the Federal Law of Firearms and Explosives), Cap¡tulo IV Ley para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment) Reglamento de la Ley para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment) DESCRIPTION: Investment Investors of another Party and their investments may own, directly and indirectly, up to 49 percent of the ownership interest of an enterprise established or to be established in Mexico that sells firearms, cartridges and ammunition as set out in the classification mentioned above Foreigners cannot appoint or elect members to be directors nor become members of the board of directors of such enterprises. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Religious Services SUB-SECTOR: Not applicable INDUSTRY CLASSIFICATION: CMAP 929001 Religious Services TYPE OF RESERVATION: Senior Management (Article 1107) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley de Asociaciones Religiosas y Culto Privado (Religious Associations Law). T¡tulo II, Cap¡tulo II DESCRIPTION: Investment The representatives of the religious associations in Mexico must be Mexican nationals. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Services to Agriculture and Cattle SUB-SECTOR: Services to Agriculture INDUSTRY CLASSIFICATION: CMAP 971010 Agriculture Services Supply TYPE OF RESERVATION: National Treatment (Article 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Constituci¢n Pol¡tica de los Estados Unidos Mexicanos, (United Mexican States Political Constitution) Article 32 Reglamento de la Ley de Sanidad Fitopecuaria (Regulation of the Phitosanitary Law), Cap¡tulo VII DESCRIPTION: Cross-Border Services A concession granted by the Secretar¡a de Agricultura y Recursos Hidr ulicos is required to spray pesticides. Only Mexican nationals or Mexican enterprises may obtain such concession. DURATION: The requirement of a concession will be replaced with a permit requirement, and the citizenship requirement will be eliminated, in accordance with the schedule of liberalization for specialty air services. ============================================================================= ANNEX I Schedule of Mexico SECTOR: Transportation SUBÄSECTOR: Air Transportation INDUSTRY CLASSIFICATION: CMAP 713001 Transportation Services on Mexican-Registered Aircraft CMAP 713002 Air Taxi Transportation Services TYPE OF RESERVATION: National Treatment (Article 1102) Senior Management (Article 1107) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera(Law to Promote Mexican Investment and to Regulate Foreign Investment), Cap¡tulo I Reglamento de la Ley Para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera(Regulation of the Law to Promote Mexican Investment and to Regulate Foreign Investment) Ley de V¡as Generales de Comunicaci¢n(General Means of Communications Law), Libro Cuarto, Cap¡tulo I-XII DESCRIPTION: Investment Investors of another Party and their investments may own directly or indirectly, up to 25 percent of the voting interest in an enterprise established or to be established in Mexico that provides commercial air services. The chairman and at least two-thirds of the board of directors and two-thirds of managing officers of such enterprises must be Mexican nationals. DURATION: Description shall govern upon entry into force of this Agreement. ============================================================================= ANNEX I Schedule of Mexico SECTOR: Transportation SUBÄSECTOR: Air Transportation INDUSTRY CLASSIFICATION: CMAP 973303 Specialty Air Services TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) Local Presence (Article 1205) Senior Management (Article 1107) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley de V¡as Generales de Comunicaci¢n (General Means of Communication Law), Libro Cuarto, Cap¡tulo XII DESCRIPTION: Cross-Border Services 1. A permit issued by the Secretar¡a de Comunicaciones y Transportes (SCT) is required to provide all specialty air services in the territory of Mexico. 2. Such permit may be issued to a person of Canada and the United States to provide services related to flight training, forest fire-management, fire-fighting, glider towing, and parachute jumping in Mexico, subject to compliance with national safety rules. 3. Such permit may not be issued to a person of Canada or the United States to provide: aerial advertising, aerial sightseeing services, aerial construction, heli-logging, inspection (surveillance), mapping, photography, surveying and aerial spraying services. Investment Investors of another Party and their investments may own, directly or indirectly, up to 25 percent of the voting interest in an enterprise established or to be established in Mexico that provides specialty air services. The chairman and at least two-thirds of the board of directors and two-thirds of managing officers of such enterprises must be Mexican nationals. DURATION: Cross-Border Services Paragraphs 2 and 3 of the description shall govern upon entry into force of this Agreement. A person of Canada or the United States will be issued a permit by SCT to provide, subject to compliance with safety requirements, the following specialty air services: (a) three years after entry into force of the Agreement, aerial advertising, aerial sightseeing services, aerial construction and heli-logging. (b) six years after entry into force of this Agreement, inspection (surveillance), mapping, photography, surveying and aerial spraying services. Investment Description shall govern upon entry into force of this Agreement ============================================================================= ANNEX I Schedule of Mexico SECTOR: Transportation SUBÄSECTOR: Air Transportation INDUSTRY CLASSIFICATION: CMAP 384205 Aircraft Building, Assembly and Repair (limited to aircraft repair) TYPE OF RESERVATION: National Treatment (Article 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Constituci¢n Pol¡tica de los Estados Unidos Mexicanos (United Mexican States Political Constitution), Art¡culo 32 Ley de V¡as Generales de Comunicaci¢n (General Means of Communication Law), Libro Cuarto, Cap¡tulo XV Reglamento de Talleres Aeron uticos (Aeronautical Workshops Regulation) Article 8 DESCRIPTION: Cross-Border Services A concession granted by the Secretar¡a de Comunicaciones y Transportes is required to establish and operate an aircraft repair facility. Only Mexican nationals and Mexican enterprises may obtain such concession. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Transportation SUBÄSECTOR: Air Transportation INDUSTRY CLASSIFICATION: CMAP 973301 Air Navigation Services CMAP 973302 Airport and Heliport Administration Services TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Constituci¢n Pol¡tica de los Estados Unidos Mexicanos (United Mexican States Political Constitution), Art¡culo 32 Ley de V¡as Generales de Comunicaci¢n (General Means of Communication Law), Libro Primero, Cap¡tulo II y II, Libro Cuarto, Cap¡tulo IX Ley para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera(Law to Promote Mexican Investment and to Regulate Foreign Investment) Libro Primero, Cap¡tulo II y III, Libro Cuarto, Cap¡tulo IX Reglamento de la Ley para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera(Regulation of the Law to Promote Mexican Investment and to Regulate Foreign Investment) DESCRIPTION: Cross-Border Services A concession granted by the Secretar¡a de Comunicaciones y Transportes is required to construct and operate, or operate, airports and heliports and to provide air navigation services. Only Mexican nationals and Mexican enterprises may obtain such concession. Investment Prior approval of the Comisi¢n Nacional de Inversiones Extranjeras is required for investors of another Party or their investments to own, directly or indirectly, more than 49 percent of the ownership interest of an enterprise established or to be established in Mexico engaged in the following activities: (a) construction and operation of airports or heliports; (b) operation of airports or heliports; or (c) provision of air navigation services. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Transportation SUBÄSECTOR: Land Transportation INDUSTRY CLASSIFICATION: CMAP 973101 Bus and Truck Station Administration and Ancillary Services (main bus and truck terminals and bus and truck stations) TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley de V¡as Generales de Comunicaci¢n (General Means of Communication Law), Libro Primero, Cap¡tulo II y III, Libro Segundo, T¡tulo Segundo, Cap¡tulos I y II, T¡tulo Tercero, Cap¡tulo Unico Reglamento para el Aprovechamiento del Derecho de V¡a de las Carreteras Federales y Zonas Aleda¤as (Regulations for the Use of the Right of Way of Federal Roads and their Adjacent Areas), Cap¡tulos II y IV Reglamento del Autotransporte Federal de Pasajeros, (Regulations of the Federal Transport of Passengers), and 34 Cap¡tulo IV DESCRIPTION: Cross-Border Services A permit issued by the Secretar¡a de Comunicaciones y Transportes is required to establish or operate a bus or truck station or terminal. Only Mexican nationals and Mexican enterprises with a foreigners' exclusion clause may obtain such permit. Investment Foreign investment is not permitted in an enterprise established or to be established in Mexico engaged in the establishment or operation of bus or truck station or terminals as described in the industry classification mentioned above. DURATION: Cross-Border Services Description shall govern upon entry into force of this Agreement. Three years after signature of this Agreement, such permit may be obtained by Mexican nationals and Mexican enterprises. Investment With respect to enterprises established or to be established in Mexico providing such service investors of another Party and their investment may own: (a) three years after the signature of this Agreement, up to 49 percent of ownership interest of the enterprise; (b) seven years after the entry into force of this Agreement, up to 51 percent of the ownership interest of the enterprise; and (c) ten years after the entry into force of this Agreement, up to 100 percent of the enterprise. ============================================================================= ANNEX I Schedule of Mexico SECTOR: Transportation SUBÄSECTOR: Land Transportation INDUSTRY CLASSIFICATION: CMAP 973102 Road and Bridge Administration Services and Ancillary Services TYPE OF RESERVATION: National Treatment (Article 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Constituci¢n Pol¡tica de los Estados Unidos Mexicanos (United Mexican States Political Constitution), Art¡culo 32 Ley de V¡as Generales de Comunicaci¢n (General Means of Communication Law), Libro Primero, Cap¡tulos I, II y III, Libro Segundo, T¡tulo Segundo, Cap¡tulo II, T¡tulo Tercero, Cap¡tulo Unico DESCRIPTION: Cross-Border Services A concession granted by the Secretar¡a de Comunicaciones y Transportes is required to provide road and bridge administration services and ancillary services. Only Mexican nationals and Mexican enterprises may obtain such concession. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Transportation SUBÄSECTOR: Land Transportation INDUSTRY CLASSIFICATION: CMAP 711312 Urban and Suburban Passenger Transportation Service by Bus CMAP 711315 Collective Automobile Transportation Service CMAP 711316 Established Route Automobile Transportation Service CMAP 711317 Automobile Transportation Service from a Specific Station CMAP 711318 School and Tourist Transportation Service (limited to school transportation service) TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) LEVEL OF GOVERNMENT: Federal and State LEGAL CITATION: Ley para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Law to Promote General Investment and to Regulate Foreign Investment) Ley de V¡as Generales de Comunicaci¢n (General Means of Communication Law) Reglamento de la Ley para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Regulation of the Law to Promote General Investment and to Regulate Foreign Investment) Reglamento para el Autotransporte Federal de Pasajeros (Regulations of the Federal Transport of Passengers) State laws [to be provided] DESCRIPTION: Cross-Border Services and Investment Only Mexican nationals and Mexican enterprises with a foreigners' exclusion clause may provide local bus services, school bus services and taxi and other collective transportation services. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Transportation SUBÄSECTOR: Land Transportation INDUSTRY CLASSIFICATION: CMAP 711201 Road Transport Services for Construction Materials CMAP 711202 Road Transport Moving Services CMAP 711203 Other Services of Specialized Cargo Transportation CMAP 711204 General Trucking Services CMAP 711311 Inter-City Busing Services CMAP 711318 School and Tourist Transportation Services (limited to tourist transportation services). TYPE OF RESERVATION: National Treatment (Article 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: State LEGAL CITATION: Constituci¢n Pol¡tica de los Estados Unidos Mexicanos (United Mexican States Political Constitution), Art¡culo 32 State laws and its regulations equivalent to Ley de V¡as Generales de Comunicaci¢n (General Means of Communication Law) [to be provided] Libro Primero, T¡tulo Segundo, Cap¡tulo II, Libro Primero, Cap¡tulo III DESCRIPTION: Cross-Border Services In each state, a concession is required to provide intrastate bus and truck services on roads under the jurisdiction of such state. Such concession is provided on the basis of economic needs tests. Preferences in the granting of such concessions by states is accorded to natural persons born in such states and enterprises constitued by persons born in such states, including the states of Michoac n, San Luis Potos¡, Tamaulipas, Tlaxcala and Zacatecas. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Transportation SUBÄSECTOR: Land Transportation INDUSTRY CLASSIFICATION: CMAP 711201 Road Transport Services for Construction Materials CMAP 711202 Road Transport Moving Services CMAP 711203 Other Services of Specialized Cargo Transportation CMAP 711204 General Trucking Services CMAP 711311 Inter-City Busing Services CMAP 711318 School and Tourist Transportation Services (limited to tourist transportation services) TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley de V¡as Generales de Comunicaci¢n (General Means of Communication Law), and its regulations [to be provided] Ley para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera, (Law to Promote General Investment and to Regulate Foreign Investment) Memorandum de Entendimiento entre los Estados Unidos Mexicanos y los Estados Unidos de Norteam‚rica para la promoci¢n de Servicios de Transporte Tur¡stico de Ruta Fija, (Memorandum of Understanding Between the United States of America and the United Mexican States on Facilitation of Charter/Tour Bus Service) Reglamento de la Ley para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera, (Regulation of the Law to Promote General Investment and to Regulate Foreign Investment) DESCRIPTION: Cross-Border Services A permit issued by the Secretar¡a de Comunicaciones y Transportes is required to provide bus or truck services for the transportation of goods or passengers to or from the territory of Mexico. Only Mexican nationals and Mexican enterprises with a foreigners' exclusion clause may provide such services, except that a person of Canada or the United States may be granted permanent operating authority to provide international charter or tour bus services into the territory of Mexico. Only Mexican nationals, and Mexican enterprises with a foreigners' exclusion clause, using Mexican registered equipment and drivers who are Mexican nationals, may provide bus and truck services for the transportation of goods and passangers between two points in the territory of Mexico. Investment Foreign investment is not permitted in an enterprise established or to be established in Mexico engaged in bus or truck transportation services as described in the industry classification mentioned above. DURATION: Cross-Border Services Description shall govern upon entry into force of this Agreement. A person of Canada or of the United States will be permitted to provide: (a) three years after signature of this Agreement, cross-border truck services to or from the territory of border states (Baja California, Sonora, Chihuahua, Coahuila, Tamaulipas and Nuevo Le¢n), and such person will be permitted to enter and depart Mexico through different ports of entry in such states; (b) three years after signature of this Agreement, only Mexican nationals and Mexican enterprises, using Mexican-registered equipment and drivers who are Mexican nationals, may provide bus and truck services for the transportation of goods and passengers between two points in the territory of Mexico. (c) three years after entry into force of this Agreement, cross-border scheduled bus services to or from the territory of Mexico; and (d) six years after entry into force of this Agreement, cross-border truck services to or from the territory of Mexico. Investment With respect to enterprises established or to be established in Mexico providing such services, investors of another Party may own: (a) three years after signature of this Agreement, up to 49 percent of ownership of an enterprise providing bus services, tourist transportation services and truck services for the transportation of international cargo, between points in the territory of Mexico; (b) seven years after entry into force of this Agreement, up to 51 percent of the ownership interest of an enterprise providing bus services, tourist transportation services or truck services for the transportation of international cargo, between points in the territory of Mexico; and (c) ten years after entry into force of this Agreement, up to 100 percent ownership interest of an enterprise providing bus services, tourist services and truck services for the transportation of international cargo, between points in the territory of Mexico. Foreign ownership in enterprises providing truck services for the carriage of domestic cargo will not be permitted. Indeterminate. ============================================================================= ANNEX I Schedule of Mexico SECTOR: Transportation SUB-SECTOR: Land Transportation and Water Transportation INDUSTRY CLASSIFICATION: CMAP 501421 Marine and River Works CMAP 501422 Construction of Roads for Land Transportation TYPE OF RESERVATION: National Treatment (Article 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Constituci¢n Pol¡tica de los Estados Unidos Mexicanos, (Political Constitution of the United Mexican States) Art¡culo 32 Ley de V¡as Generales de Comunicaci¢n (General Means of Communications Law) Libro Primero, Cap¡tulos I, Libro Segundo, Cap¡tulo I DESCRIPTION: Cross-Border Services A concession granted by the Secretar¡a de Comunicaciones y Transportes is required to construct and operate, or operate, marine and river works and roads for land transportation. Such concession may be granted only to Mexican nationals and Mexican enterprises. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Transportation SUBÄSECTOR: Non-energy pipelines INDUSTRY CLASSIFICATION: Not applicable TYPE OF RESERVATION: National Treatment (Article 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Constituci¢n Pol¡tica de los Estados Unidos Mexicanos (United Mexican States Political Constitution) Ley de V¡as Generales de Comunicaci¢n (General Means of Communication Law), Articles 8, 12 and 5 Ley Federal de Aguas(Waters Federal Law) DESCRIPTION: Cross-Border Services A concession granted by the Secretar¡a de Comunicaciones y Transportes is required to construct and operate, or operate, pipelines carrying non-energy goods, excluding basic petrochemicals. Only Mexican nationals and Mexican enterprises may obtain such concession. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Transportation SUBÄSECTOR: Freight and Passenger Water Transportation INDUSTRY CLASSIFICATION: CMAP 712011 International Maritime Transportation Services CMAP 712012 Cabotage Maritime Services CMAP 712013 International and Cabotage Towing Services CMAP 712021 River and Lake Transportation Services CMAP 712022 Internal Port Water Transportation Services TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) Most-Favored-Nation (Articles 1103, 1203) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley de V¡as Generales de Comunicaci¢n (General Means of Communication Law), Cap¡tulo III, Libro Tercero Ley para el Desarrollo de la Marina Mercante (Law for the Development of the Merchant Navy), Cap¡tulos I y III Ley de Navegaci¢n y Comercio Mar¡timos (Navigation and Maritime Navigation Law) Libro Segundo, T¡tulo Unico, Cap¡tulos I y IIILey Para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment) DESCRIPTION: Cross-Border Services and Investment Maritime cabotage services, including off-shore maritime services, are reserved to Mexican-flagged vessels. A waiver may be granted by the Secretar¡a de Comunicaciones y Transportes when Mexican-flagged vessels are not able to provide such services.Only Mexican flagged vessels may transport cargo owned by the Federal Government. Foreign-flagged vessels may provide international maritime services in Mexico on the basis of reciprocity with the relevant country. Only Mexican-flagged towing vessels may provide towing services from Mexican ports to foreign ports. When such towing vessels are not able to provide such services, the Secretar¡a de Comunicaciones y Transporte may provide a permit to foreign-flagged towing vessels.Only a Mexican national or a Mexican enterprise with a foreigners' exclusion clause may own vessels registered and flagged as Mexican. All members of the board of directors and managers of such enterprise must be Mexican nationals. Prior approval of the Comisi¢n Nacional de Inversiones Extranjeras is required for investors of another Party or their investments, to own, directly or indirectly, more the 49 percent of the ownership interest of an enterprise established or to be established in Mexico operating foreign-flagged vessels providing international maritime transport services. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Transportation SUB-SECTOR: Specialized Personnel INDUSTRY CLASSIFICATION: CMAP 951012 Customs Brokers (Agentes Aduanales) TYPE OF RESERVATION: National Treatment (Article 1102) LEGAL CITATION: Constituci¢n Pol¡tica de los Estados Unidos Mexicanos (United Mexican States Political Constitution) Ley Aduanera (Customs Law) DESCRIPTION: Investment Only Mexican nationals by birth may serve as customs brokers. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Transportation SUBÄSECTOR: Water Transportation INDUSTRY CLASSIFICATION: CMAP 1300 Fishing TYPE OF RESERVATION: National Treatment (Article 1202) Most-Favored-Nation (Article 1203) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Constituci¢n Pol¡tica de los Estados Unidos Mexicanos (United Mexican Stated Political Constitution), Art¡culo 32 Ley de Pesca (Fishing Law), Cap¡tulos I y II Ley de Navegaci¢n y Comercio Mar¡timo (Navigation and Maritime Commerce Law) Libro Segundo, T¡tulo Unico, Cap¡tulo I DESCRIPTION: Cross-Border Services A concession granted, or permit issued, by the Secretar¡a de Pesca is required to engage in fishing activities in Mexican jurisdictional waters. Only Mexican nationals and Mexican enterprises, using Mexican-flagged vessels, may obtain such concession or permit. Permits may exceptionally be issued to persons operating vessels flagged in a foreign country that provides equivalent treatment to Mexican-flagged vessels to engage in fishing activities in the Exclusive Economic Zone (EEZ). Only Mexican nationals and Mexican enterprises may obtain authorization from the Secretar¡a de Pesca for deep sea fishing on Mexican-flagged vessels, fixed rigging installation, recollection from the natural milieu of larvae, post-larvae, eggs, seeds or alevines, for research or acuaculture purposes, introduction of live species into Mexican jurisdictional waters, and for educational fishing in accordance with the programmes of the fishing educational institutions. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Transportation SUBÄSECTOR: Water Transportation INDUSTRY CLASSIFICATION: CMAP 384201 Shipbuilding and Ship Repairs TYPE OF RESERVATION: National Treatment (Article 1202) Local Presence (Article 1205) Performance Requirement (Article 1106) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Constituci¢n Pol¡tica de los Estados Unidos Mexicanos (United Mexican Stated Political Constitution), Art¡culo 32 Ley de V¡as Generales de Comunicaci¢n (General Means of Communication Law) Cap¡tulo XV, Libro Tercero Ley Para el Desarrollo de la Marina Mercante (Law for the Development of the Merchant Navy), Cap¡tulo IV DESCRIPTION: Cross-Border Services and Investment A concession granted by the Secretar¡a de Comunicaciones y Transportes is required to establish and operate a shipyard. Only Mexican nationals and Mexican enterprises may obtain such concession. For the owner of a Mexican-flagged vessel to be eligible for government cargo preferences, subsidies and tax benefits granted under the Ley para el Desarrollo de la Marina Mercante, such person must carry out repair and maintenance operations in shipyards and repair facilities in Mexico. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Transportation SUBÄSECTOR: Water Transportation INDUSTRY CLASSIFICATION: CMAP 973203 Maritime and Inland (Lake and Rivers) Ports Administration TYPE OF RESERVATION: National Treatment (Article 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley de Navegaci¢n y Comercio Mar¡timo (Navigation and Maritime Commerce Law), Libro Segundo, Cap¡tulo II Secciones A y B, T¡tulo Unico Ley de V¡as Generales de Comunicaci¢n (General Means of Communication Law), Cap¡tulo XI DESCRIPTION: Cross-Border Services All port workers must be Mexican nationals. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Transportation SUBÄSECTOR: Water Transportation INDUSTRY CLASSIFICATION: CMAP 973201 Loading and Unloading Services Related to Water Transportation (includes operation and maintenance of docks; Loading and unloading of vessels at shore-side; marine cargo handling; operation and maintenance of piers; ship and boat cleaning; stevedoring; transfer of cargo between ships and trucks, trains, pipelines and wharfs; waterfront terminal operations) TYPE OF RESERVATION: National Treatment (Article 1102, 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Constituci¢n Pol¡tica de los Estados Unidos Mexicanos (United Mexican States Political Constitution), Art¡culo 32 Ley de Navegaci¢n y Comercio Mar¡timo (Navigation and Maritime Commerce Law), Libro Primero, T¡tulo Unico, Cap¡tulo I, Libro Segundo, T¡tulo Segundo Ley Org nica de la Administraci¢n P£blica Federal (Federal Public Administration Law) Ley de V¡as Generales de Comunicaci¢n (General Means of Communication Law) Libro Tercero, Cap¡tulo II Reglamento del Servicio de Maniobras en las Zonas Federales de Puertos, Articles 1, 2, 13 and 14 (Operation Services in the Federal Port Zones Regulation), Libro Primero, T¡tulo Unico, Cap¡tulo I, Libro Segundo, T¡tulo Unico, Cap¡tulo II, Secci¢n A y Libro Cuarto, T¡tulo Unico Reglamento para el Uso y Aprovechamiento del Mar Territorial, V¡as Navegables, Playas, Zona Federal Mar¡timo Terrestre y Terrenos Ganados al Mar, (Regulation for the Use of the Territorial Sea, Navigable Ways, Beaches, Maritime and Terrestrial Federal Zones) DESCRIPTION: Cross-Border Services A concession granted by the Secretar¡a de Comunicaciones y Transportes is required to construct and operate, or operate, maritime and inland port terminals, including dock, cranes and related facilities. Only Mexican nationals and Mexican enterprises may obtain such concession. A permit issued by the Secretar¡a de Comunicaciones y Transportes is required to provide stevedoring and warehousing services. Only Mexican nationals and Mexican enterprises may obtain such permit. Investment Prior approval of the Comisi¢n Nacional de Inversiones Extranjeras is required for investors of another Party or their investments to own directly or indirectly, more than 49 percent of the ownership interest of an enterprise established or to be established in Mexico providing to third persons the following services: operation and maintenance of docks; loading and unloading of vessels at shore-side; marine cargo handling; operation and maintenance of piers; ship and boat cleaning; stevedoring; transfer of cargo between ships and trucks, trains, pipelines and wharves; and waterfront terminal operations. DURATION: Cross-Border Services Indeterminate Investment Description shall govern upon entry into force of this Agreement.