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Canada-United States-Mexico Agreement (CUSMA) – Annex II – Explanatory note

1. The Schedule of a Party to this Annex sets out, pursuant to Articles 14.12 (Non-Conforming Measures) and 15.7 (Non-Conforming Measures), the specific sectors, subsectors, or activities for which that Party may maintain existing, or adopt new or more restrictive, measures that do not conform with obligations imposed by:

• (a) Article 14.4 (National Treatment) or 15.3 (National Treatment);
• (b) Article 14.5 (Most-Favored-Nation Treatment) or 15.4 (Most-Favored-Nation Treatment);
• (c) Article 14.10 (Performance Requirements); 
• (d) Article 14.11 (Senior Management and Boards of Directors); 
• (e) Article 15.5 (Market Access); or
• (f) Article 15.6 (Local Presence).

2. Each Schedule entry sets out the following elements:

• (a) Sector refers to the sector for which the entry is made;
• (b) Sub-Sector, where referenced, refers to the specific subsector for which the entry is made; 
• (c) Obligations Concerned specifies the obligation(s) referred to in paragraph 1 that, pursuant to Articles 14.12.1(a) (Non-Conforming Measures) and 15.7.1(a) (Non-Conforming Measures), do not apply to the sectors, subsectors, or activities listed in the entry;
• (d) Description sets out the scope or nature of the sectors, subsectors, or activities covered by the entry to which the reservation applies; and 
• (e) Existing Measures identifies,for transparency purposes, a non-exhaustive list of existing measures that apply to the sectors, subsectors, or activities covered by the entry

3. For greater certainty, in the interpretation of an entry, all elements of the entry shall be considered, and the Description element prevails over all other elements.

In accordance with Articles 14.12.2 (Non-Conforming Measures) and 15.7.2 (Non-Conforming Measures), the articles of this Agreement specified in the Obligations Concerned element of an entry do not apply to the sectors, subsectors, and activities identified in the Description element of that entry.