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North American Free Trade Agreement (NAFTA)

Annexes

Annex I: Reservations for Existing Measures and Liberalization Commitments

1. The Schedule of a Party sets out, pursuant to Articles 1108(1) (Investment), 1206(1) (Cross-Border Trade in Services) and 1409(4) (Financial Services), the reservations taken by that Party with respect to existing measures that do not conform with obligations imposed by:

and, in certain cases, sets out commitments for immediate or future liberalization.

2. Each reservation sets out the following elements:

3. In the interpretation of a reservation, all elements of the reservation shall be considered. A reservation shall be interpreted in the light of the relevant provisions of the Chapters against which the reservation is taken. To the extent that:

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 that measure taken with respect to Article 1202, 1203 or 1205 or Article 1404, 1405 or 1406 shall operate as a reservation with respect to Article 1102, 1103 or 1106 to the extent of that measure.

5. For purposes of this Annex:

CMAP means Clasificación Mexicana de Actividades y Productos (CMAP) numbers as set out in Instituto Nacional de Estadística, Geografía e Informática, Clasificación Mexicana de Actividades y Productos , 1988;

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 (CPC) 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 law of Mexico; and

SIC means:

Schedule of Canada

Sector: Agriculture

Sub-Sector:

Industry Classification:

Type of Reservation: National Treatment (Article 1102)

Level of Government: Federal

Measures: Farm Credit Act, R.S.C. 1985, c. F-2

Farm Credit Regulations, C.R.C. 1978, c. 644

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 members of which are Canadian citizens or permanent residents.

Phase-Out: None


Sector: All Sectors

Sub-Sector:

Industry Classification:

Type of Reservation: National Treatment (Article 1102)
Performance Requirements (Article 1106)
Senior Management and Boards of Directors (Article 1107)

Level of Government: Federal

Measures:

Investment Canada Act, R.S.C. 1985, c. 28
(1st Supp.)

Investment Canada Regulations, SOR/85-611

As qualified by paragraphs 8 through 12 of the Description element

Description: Investment

1. Under the Investment Canada Act, the following acquisitions of Canadian businesses by "non-Canadians" are subject to review by Investment Canada:

2. A "non-Canadian" is an individual, government or agency thereof or an entity that is not "Canadian". "Canadian" means a Canadian citizen or permanent resident, government in Canada or agency thereof or Canadian-controlled entity as provided for in the Investment Canada Act.

3. In addition, specific acquisitions or new businesses in designated types of business activities relating 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. An investment subject to review under the Investment Canada Act may not 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, summarized as follows:

5. 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.

6. Non-Canadians who establish or acquire Canadian businesses, other than those described above, must notify Investment Canada.

7. Investment Canada will review an "acquisition of control", as defined in the Investment Canada Act, of a Canadian business by an investor of Mexico or of the United States if the value of the gross assets of the Canadian business is not less than the applicable threshold.

8. The review threshold applicable to investors of Mexico or of the United States, calculated as set out in the Phase-Out element, is higher than those described in paragraph 1. 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.

9. Notwithstanding the definition of "investor of a Party" in Article 1139, only investors who are nationals, or entities controlled by nationals as provided for in the Investment Canada Act, of Mexico or of the United States may benefit from the higher review threshold.

10. An indirect "acquisition of control" of a Canadian business by an investor of Mexico or of the United States is not reviewable.

11. Notwithstanding Article 1106(1), Canada may 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 or of a non-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 under the Investment Canada Act.

12. Except for requirements, commitments or undertakings relating to technology transfer as set out in paragraph 11, Article 1106(1) shall apply to requirements, commitments or undertakings imposed or enforced under the Investment Canada Act. 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.

Phase-Out: For investors of Mexico or of the United States, the applicable threshold for the review of a direct acquisition of control of a Canadian business will be:

The calculation of the annual adjustment will be determined in January of each year after 1994 using the most recently available data published by Statistics Canada and using the following formula:

Annual 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 will be rounded to the nearest million dollars.


Sector: All Sectors

Sub-Sector:

Industry Classification:

Type of Reservation: National Treatment (Article 1102)
Senior Management and Boards of Directors (Article 1107)

Level of Government: Federal
Provincial

Measures: As set out in the Description element

Description: Investment

Canada or any province, when selling or disposing of its equity interests in, or the assets of, an existing state enterprise or an existing governmental entity, may 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 of a non-Party or their investments. With respect to such a sale or other disposition, Canada or any province may adopt or maintain any measure relating to the nationality of senior management or members of the board of directors.

For purposes of this reservation:

disposing of equity interests in, or the assets of, an existing state enterprise or governmental entity.

Phase-Out: None


Sector: All Sectors

Sub-Sector:

Industry Classification:

Type of Reservation: National Treatment (Article 1102)

Level of Government: Federal

Measures: Canada Business Corporations Act, R.S.C. 1985, c. C-44

Canada Corporations Act, R.S.C. 1970, c. C-32

Canada Business Corporations Act Regulations, SOR/79-316

Description: Investment

"Constraints" may be placed on the issue, transfer and ownership of shares in federally incorporated corporations. The object is to permit corporations to meet Canadian ownership requirements, under certain laws set out in the Canada Business Corporations Act Regulations, in sectors where ownership is required as a condition to operate or to receive licenses, permits, grants, payments or other benefits. In order to maintain certain "Canadian" ownership levels, a corporation is permitted to sell shareholders' shares without the consent of those shareholders, and to purchase its own shares on the open market. "Canadian" is defined in the Canada Business Corporations Act Regulations.

Phase-Out: None


Sector: All Sectors

Sub-Sector:

Industry Classification:

Type of Reservation: Senior Management and Boards of Directors (Article 1107)

Level of Government: Federal

Measures: Canada Business Corporations Act, R.S.C. 1985, c. C-44

Canada Business Corporations Act Regulations, SOR/79-316

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 the board of directors, or of a committee thereof, of a federally-incorporated corporation be resident Canadians. For purposes of the Act, "resident Canadian" means an individual who is a Canadian citizen ordinarily resident in Canada, a citizen who is a member of a class set out in the Canada Business Corporations Act Regulations, or a permanent resident as defined in the Immigration Act other than one 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 one-third of the directors need be resident Canadians if the earnings in Canada of the holding corporation and its subsidiaries are less than five percent 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 resident in Canada and citizens of a Commonwealth country. This requirement applies to every joint stock company incorporated subsequent to June 22, 1869 by any Special Act of Parliament.

Phase-Out: None


Sector: All Sectors

Sub-Sector:

Industry Classification:

Type of Reservation: National Treatment (Article 1102)

Level of Government: Federal

Measures: Citizenship Act, R.S.C. 1985, c. C-29

Foreign Ownership of Land Regulations, SOR/79-416

Description: Investment

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 two parcels containing, in the aggregate, not more than 20 acres. An "ineligible person" is:

"Controlled land" means land in Alberta but does not include:

Phase-Out: None


Sector: All Sectors

Sub-Sector:

Industry Classification:

Type of Reservation: National Treatment (Article 1102)

Level of Government: Federal

Measures: 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

A "non-resident" may not own more than a specified percentage of the voting shares of the corporation to which each Act applies. For each company the restriction is as follows:

Air Canada: 25 percent
Canada Development Corporation: 25 percent
Petro-Canada Inc: 25 percent
Canadian Arsenals Limited: 25 percent
Eldorado Nuclear Limited: 5 percent
Nordion Limited: 25 percent

Theratronics Limited: 49 percent
Cooperative Energy Corporation: 49 percent

"Non-resident" generally means:

(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) through (c);

(e) a trust

(f) a corporation that is controlled directly or indirectly by a trust referred to in paragraph (e).

Phase-Out: None


Sector: All Sectors

Sub-Sector:

Industry Classification:

Type of Reservation: Local Presence (Article 1205)

Level of Government: Federal

Measures: Export and Import Permits Act, R.S.C. 1985, c. E-19

Description: Cross-Border Services

Only individuals ordinarily resident in Canada, enterprises having their head offices in Canada or branch offices in Canada of foreign enterprises may apply for and be issued import or export permits or transit authorization certificates for goods and related services subject to controls under the Export and Import Permits Act.

Phase-Out: None


Sector: Automotive

Sub-Sector:

Industry Classification:

Type of Reservation: Performance Requirements (Article 1106)

Level of Government: Federal

Measures: Canada - United States Free Trade Agreement Implementation Act, S.C. 1988, c. 65

Description: Investment

Canada may grant waivers of customs duties conditioned, explicitly or implicitly, on the fulfillment of performance requirements:

(a) to those manufacturers of automotive goods 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.

Phase-Out: (a) None

(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.


Sector: Business Service Industries

Sub-Sector: Customs Brokerages and Brokers

Industry Classification: SIC 7794 Customs Brokers

Type of Reservation: National Treatment (Article 1202)
Local Presence (Article 1205)
Senior Management and Boards of Directors (Article 1107)

Level of Government: Federal

Measures: Customs Act, R.S.C. 1985, c. 1 (2nd Supp.)

Customs Brokers Licensing Regulations, SOR/86-1067

Description: Cross-Border Services and Investment

To be a licensed customs broker or brokerage in Canada:

(a) an individual must be a Canadian citizen or permanent resident;

(b) a corporation must be incorporated in Canada with a majority of its directors being Canadian citizens or permanent residents; and

(c) 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.

An individual who is not a licensed customs broker but who transacts business as a customs broker on behalf of a licensed customs broker or brokerage must be a Canadian citizen or permanent resident.

Phase-Out: None. Subject to discussion by the Parties five years after the date of entry into force of this Agreement.


Sector: Business Service Industries

Sub-Sector: Duty Free Shops

Industry Classification: SIC 6599 Other Retail Stores, Not Elsewhere Classified (limited to duty free shops)

Type of Reservation: National Treatment (Articles 1102, 1202)
Local Presence (Article 1205)

Level of Government: Federal

Measures: Customs Act, R.S.C. 1985, c. 1 (2nd Supp.)

Duty Free Shop Regulations, SOR/86-1072

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:

2. To be a licensed duty free shop operator at a land border crossing in Canada, a corporation must:

Phase-Out: None


Sector: Business Service Industries

Sub-Sector: Examination Services relating to the Export and Import of Cultural Property

Industry Classification: SIC 999 Other Services, Not Elsewhere Classified (limited to cultural property examination services)

Type of Reservation: Local Presence (Article 1205)

Level of Government: Federal

Measures: Cultural Property Export and Import Act, R.S.C. 1985, c. C-51

Description: Cross-Border Services

Only a "resident of Canada" or an "institution" in Canada may be designated as an "expert examiner" of cultural property for purposes of the Cultural Property Export and Import Act. A "resident" of Canada is an individual who is ordinarily resident 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. An "institution" is an institution that is publicly owned and operated solely for the benefit of the public, that is established for educational or cultural purposes and that conserves objects and exhibits them.

Phase-Out: None


Sector: Business Service Industries

Sub-Sector: Patent Agents and Agencies

Industry Classification: SIC 999 Other Services, Not Elsewhere Classified (limited to patent agency)

Type of Reservation: National Treatment (Article 1202)
Local Presence (Article 1205)

Level of Government: Federal

Measures: Patent Act, R.S.C. 1985, c. P-4

Patent Rules, C.R.C. 1978, c. 1250

Patent Cooperation Treaty Regulations, SOR/89-453

Description: Cross-Border Services

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 resident in Canada and registered by the Patent Office.

A registered patent agent who is not resident in Canada must appoint a registered patent agent who is resident in Canada as an associate to prosecute an application for a patent.

An enterprise may be added to the patent register provided that it has at least one member who is also on the register.

Phase-Out: Citizenship and permanent residency requirements are subject to removal within two years of the date of entry into force of this Agreement in accordance with Article 1210(3).


Sector: Business Service Industries

Sub-Sector: Trade-Mark Agents

Industry Classification: SIC 999 Other Services, Not Elsewhere Classified (limited to trade-mark agency)

Type of Reservation: National Treatment (Article 1202)
Most-Favored-Nation Treatment (Article 1203)
Local Presence (Article 1205)

Level of Government: Federal

Measures: Trade-Marks Act, R.S.C. 1985, c. T-13

Trade-Marks Regulations, C.R.C. 1978, c. 1559

Description: Cross-Border Services

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 resident in Canada and registered by the Trade-Mark Office.

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 an application for a trade-mark.

Trade-mark agents who are resident, and are registered (in good standing), in a Commonwealth country or the United States may be added to the register of trade-mark agents.

Phase-Out: Citizenship and permanent residency requirements are subject to removal within two years of the date of entry into force of this Agreement in accordance with Article 1210(3).


Sector: Energy

Sub-Sector: Oil and Gas

Industry Classification: SIC 071 Crude Petroleum and Natural Gas Industries

Type of Reservation: National Treatment (Article 1102)

Level of Government: Federal

Measures: Canada Petroleum Resources Act, R.S.C. 1985, c. 36 (2nd Supp.)

Territorial Lands Act, R.S.C. 1985, c. T-7

Public Lands Grants Act, R.S.C. 1985, c. P-30

Canada - Newfoundland Atlantic Accord Implementation Act, S.C. 1987, c. 3

Canada - Nova Scotia Offshore Petroleum Resources Accord Implementation Act, S.C. 1988, c. 28

Canada Oil and Gas Land Regulations, C.R.C. 1978, c. 1518

Description: Investment

This reservation applies to production licenses issued with respect to "frontier lands" and "offshore areas" (areas not under provincial jurisdiction) as defined in the applicable measures.

Persons who hold oil and gas production licenses or shares therein for discoveries made after March 5, 1982 must be Canadian citizens ordinarily resident in Canada, permanent residents or corporations incorporated in Canada. No production license may 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 percent. "Interest-owner" is defined in the Canada Petroleum Resources Act to mean "the interest holder who owns an interest or the group of interest holders who hold all the shares of an interest".

The Canadian ownership requirements for oil and gas production licenses for discoveries made prior to March 5, 1982, are set out in the Canada Oil and Gas Land Regulations.

Phase-Out: None


Sector: Energy

Sub-Sector: Oil and Gas

Industry Classification: SIC 071 Crude Petroleum and Natural Gas Industries

Type of Reservation: Performance Requirements (Article 1106)
Local Presence (Article 1205)

Level of Government: Federal

Measures: Canada Oil and Gas Production and Conservation Act, R.S.C. 1985, c. O-7, as amended by Canada Oil and Gas Operations Act, S.C. 1992, c. 35

Canada - Nova Scotia Offshore Petroleum Resources Accord Implementation Act, S.C. 1988, c. 28

Canada - Newfoundland Atlantic Accord Implementation Act, S.C. 1987, c. 3

Measures implementing Yukon Oil and Gas Accord

Measures implementing Northwest Territories Oil and Gas Accord

Description: Cross-Border Services and Investment

1. Under the Canada Oil and Gas Operations Act, the approval of the Minister of Energy, Mines and Resources of a "benefits plan" is required to receive authorization to proceed with any oil and gas development project.

2. A "benefits plan" is 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.

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:

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 to in the plan.

5. In addition, Canada may impose any requirement or enforce any commitment or undertaking for the transfer of technology, a production process or other proprietary knowledge to a person of Canada in connection with the approval of development projects under the applicable Acts.

6. Provisions similar to those set out above will be included in laws or regulations to implement the Yukon Oil and Gas Accord and Northwest Territories Oil and Gas Accord which for purposes of this reservation shall be deemed, once concluded, to be existing measures.

Phase-Out: None


Sector: Energy

Sub-Sector: Oil and Gas

Industry Classification: SIC 071 Crude Petroleum and Natural Gas Industries

Type of Reservation: Performance Requirements (Article 1106)

Level of Government: Federal

Measures: Canada - Newfoundland Atlantic Accord Implementation Act, S.C. 1987, c. 3

Hibernia Development Project Act, S.C. 1990, c. 41

Description: Investment

Pursuant to the Hibernia Development Project Act, Canada and the "Hibernia Project Owners" may enter into agreements whereby the Project Owners undertake to perform certain work in Canada and Newfoundland and to use their "best efforts" to achieve specific Canadian and Newfoundland "target levels" in relation to the provisions of any "benefit plan" required under the Canada-Newfoundland Atlantic Accord Implementation Act. "Benefits plans" are further described in Schedule of Canada, Annex I, page I-C-25.

In addition, Canada may impose in connection with the Hibernia project 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.

Phase-Out: None


Sector: Energy

Sub-Sector: Uranium

Industry Classification: SIC 0616 Uranium Mines

Type of Reservation: National Treatment (Article 1102)
Most-Favored-Nation Treatment (Article 1103)

Level of Government: Federal

Measures: Investment Canada Act, R.S.C. 1985, c. 28 (1st Supp.)

Investment Canada Regulations, SOR/85-611

Policy on Non-Resident Ownership in the Uranium Mining Sector, 1987

Description: Investment

Ownership by "non-Canadians", as defined in the Investment Canada Act, of a uranium mining property is limited to 49 percent 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 permitted, subject to approval of the Governor in Council, only in cases where Canadian participants in the ownership of the property are not available. Investments in properties by non-Canadians, made prior to December 23, 1987 and that are beyond the permitted ownership level, may remain in place. No increase in non-Canadian ownership is permitted.

Phase-Out: None


Sector: Fisheries

Sub-Sector: Fish Harvesting and Processing

Industry Classification: SIC 031 Fishing Industry

Type of Reservation: National Treatment (Article 1102)
Most-Favored-Nation Treatment (Article 1103)

Level of Government: Federal

Measures: Coastal Fisheries Protection Act, R.S.C. 1985, c. C-33

Fisheries Act, R.S.C. 1985, c. F-14

Coastal Fisheries Protection Regulations, C.R.C. 1978, c. 413

Policy on Foreign Investment in the Canadian Fisheries Sector, 1985

Commercial Fisheries Licensing Policy

Description: Investment

Under the Coastal Fisheries Protection Act, foreign fishing vessels are prohibited from entering Canada's Exclusive Economic 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 discretionary authority with respect to the issuance of licenses.

Fish processing enterprises that have a foreign ownership level of more than 49 percent are prohibited from holding Canadian commercial fishing licenses.

Phase-Out: None


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

Measures: 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 Economic Zone, 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 a country with which it has favorable fishery relations, based primarily on adherence by that country to Canadian and international conservation practices and policies. Exceptions to this general rule are permitted in cases of emergency ("force majeure") and where the specific provisions of bilateral fisheries treaties apply.

Phase-Out: None


Sector: Transportation

Sub-Sector: Air Transportation

Industry Classification: SIC 451 Air Transport Industries

Type of Reservation: National Treatment (Article 1102)
Most-Favored-Nation Treatment (Article 1103)
Senior Management and Boards of Directors (Article 1107)

Level of Government: Federal

Measures: National Transportation Act, 1987, R.S.C. 1985, c. 28 (3rd Supp.)

Aeronautics Act, R.S.C. 1985, c. A-2

Air Regulations, C.R.C. 1978, c. 2

Aircraft Marking and Registration Regulations, SOR/90-591

Description: Investment

Only "Canadians" may provide the following commercial air transportation services:

(a) "domestic services" (air services between points, or from and to the same point, in the territory of Canada, or between a point in the territory of Canada and a point not in the territory of another country);

(b) "scheduled international services" (scheduled air services between a point in the territory of Canada and a point in the territory of another country) where those services have been reserved to Canadian carriers under existing or future bilateral agreements; and

(c) "non-scheduled international services" (non-scheduled air services between a point in the territory of Canada and a point in the territory of another country) where those services have been reserved to Canadian carriers under the National Transportation Act, 1987.

"Canadian" is defined in the National Transportation Act, 1987 to mean a Canadian citizen or permanent resident, a government in Canada or agent thereof or any other person or entity that is controlled in fact by, and of which at least 75 percent of the voting interests are owned and controlled by, persons otherwise meeting these requirements.

Regulations made under the Aeronautics Act also require that a Canadian air carrier operate Canadian-registered aircraft. To be qualified to register aircraft in Canada, a carrier must be a Canadian citizen or permanent resident, or a corporation incorporated and having its principal place of business in Canada, its chief executive officer and not fewer than two-thirds of its directors as Canadian citizens or permanent residents and not less than 75 percent of its voting interest owned and controlled by persons otherwise meeting these requirements. In addition, all commercial air services in Canada require a Canadian operating certificate to ensure their safety and security. An operating certificate for the provision of services restricted to Canadian carriers is issued only to qualified persons.

A corporation incorporated in Canada but that does not meet the Canadian ownership and control requirements may only register a private aircraft when the corporation is the sole owner of the aircraft. The regulations also have the effect of limiting "non-Canadian" corporations operating foreign-registered private aircraft within Canada to the carriage of their own employees.

For specialty air services, see Schedule of Canada, Annex II, page II-C-10.

Phase-Out: None


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 and Boards of Directors (Article 1107)

Level of Government: Federal

Measures: Aeronautics Act, R.S.C. 1985, c. A-2

Air Regulations, C.R.C. 1978, c. 2

Aircraft Marking and Registration Regulations, SOR/90-591

Foreign Air Carrier Certification Manual, TP 11524, and the Personnel Licensing Handbook, TP 193 (Department of Transport)

As qualified by paragraph 2 of the Description element

Description: Cross-Border Services

1. An operating certificate issued by the Department of Transport is required 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 specialty air services, subject to compliance by that person with Canadian safety requirements. An 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 provided for in the applicable regulations. For investment, see Schedule of Canada, Annex II, page II-C-10.

2. A person of Mexico or of the United States may obtain an operating certificate, subject to compliance by that 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.

Phase-Out: Cross-Border Services

A person of Mexico or of the United States will be permitted to obtain an operating certificate, subject to compliance by that person with Canadian safety requirements, for the provision of the following specialty air services:

(a) two years after the date of entry into force of this Agreement, aerial construction and heli-logging services;

(b) three years after the date of entry into force of this Agreement, aerial inspection, aerial surveillance, flight training, and aerial sightseeing services; and

(c) six years after the date of entry into force of this Agreement, aerial spraying services.


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

Measures: Aeronautics Act, R.S.C. 1985, c. A-2

Airworthiness Manual, chapters 573 and 575, made under the authority of Air Regulations, C.R.C. 1978, c. 2

Agreement Concerning Airworthiness Certification, Exchange of Letters between Canada and the United States, dated August 31, 1984, CTS 1984/26

Description: Cross-Border Services

Aircraft repair, overhaul or maintenance activities required to maintain the airworthiness of Canadian-registered aircraft must be performed by Canadian-certified persons (approved maintenance organizations and aircraft maintenance engineers). Certifications are not provided for persons 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, overhaul and maintenance facilities and individuals performing the work located in the United States.

Phase-Out: None


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)

Measures: 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.)

Description: Cross-Border Services

Only persons of Canada, using Canadian-registered and either Canadian-built or duty-paid trucks or buses, may provide truck or bus services between points in the territory of Canada.

Phase-Out: None


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 (Article 1202)
Most-Favored-Nation Treatment (Article 1203)
Local Presence (Article 1205)

Level of Government: Federal

Measures: Canada Shipping Act, R.S.C. 1985, c. S-9, Part II

Description: Cross-Border Services

To register a vessel in Canada for purposes of providing international maritime transportation services, the owner of that vessel 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, page II-C-11.

Phase-Out: None


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

Measures: Canada Shipping Act , R.S.C. 1985, c. S-9, Part II

Description: Cross-Border Services

Masters, mates, and engineers must be certified by the Department of Transport as ship's officers while engaged on a Canadian-registered vessel. Only Canadian citizens or permanent residents may be certified as ship's officers.

Phase-Out: None


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

Measures: Pilotage Act, R.S.C. 1985, c. P-14

General Pilotage Regulations, C.R.C. 1978, c. 1263

Atlantic Pilotage Authority Regulations, C.R.C. 1978, c. 1264

Laurentian Pilotage Authority Regulations, C.R.C. 1978, c. 1268

Great Lakes Pilotage Regulations, C.R.C. 1978, c. 1266

Pacific Pilotage Regulations, C.R.C. 1978, c. 1270

Description: Cross-Border Services

Subject to Schedule of Canada, Annex II, page II-C-14, a license issued by the Department of Transport is required to provide pilotage services in the territory of Canada. Only Canadian citizens or permanent residents may obtain such a license. A permanent resident of Canada who has been issued a pilot's license must become a Canadian citizen within five years of receipt of the license in order to retain it.

Phase-Out: None


Sector: Transportation

Sub-Sector: Water Transportation

Industry Classification: SIC 454 Water Transport Industries

Type of Reservation: Local Presence (Article 1205)

Level of Government: Federal

Measures: Shipping Conferences Exemption Act, 1987, R.S.C. 1985, c. 17 (3rd Supp.)

Description: Cross-Border Services

Members of a shipping conference must 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 those carriers of goods by water.

Phase-Out: None


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

Measures: Coasting Trade Act, S.C. 1992, c. 31

Description: Cross-Border Services

The prohibitions under the Coasting Trade Act, set out in Schedule of Canada, Annex II, page II-C-11, 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.

Phase-Out: None

Schedule of Mexico

Sector:All Sectors

Sub-Sector:

Industry Classification:

Type of Reservation:National Treatment (Article 1102)

Level of Government:Federal

Measures: Constitución Política de los Estados Unidos Mexicanos, Artículo 27

Ley de Nacionalidad y Naturalización, Capítulos IV, VI

Ley Orgánica de la Fracción I del Artículo 27 de la Constitución

Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera, Capítulos I, IV, V

Reglamento de la Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera, Título I; Título II, Capítulos I, II; Título III, Capítulo III; Título VI; Título VIII, Capítulo IV

Description: Investment

Foreign nationals or foreign enterprises, or Mexican enterprises without a foreigners' exclusion clause, may not acquire property rights ("dominio directo") over land and water in a 100-kilometer strip along the country's borders or in a 50-kilometer strip inland from its coasts (the Restricted Zone). Lease of land for more than 10 years is deemed to be an acquisition.

Foreign nationals, foreign enterprises or Mexican enterprises may acquire "Certificados de Participación Inmobiliaria" (CPI's). CPI's grant the beneficiaries the right to use and enjoy property and to receive the profits that it may obtain from the profitable use ofproperty.

CPI'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 tourism activities in the Restricted Zone for a period not to exceed 30 years. The trust is renewable if:

a) the beneficiaries of the trust that is to be extinguished or terminated will be the beneficiaries of the new trust;

b) the new trust is to be executed under the same terms and conditions as the trust that is to be extinguished or terminated, in respect of the purposes of the trust, the use of the property and its characteristics;

c) the respective permits are requested within a period of 360 to 181 days preceding the termination or extinction of the trust; and

d) the provisions of the Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera are observed.

Phase-Out:None


Sector: All Sectors

Sub-Sector:

Industry Classification:

Type of Reservation:National Treatment (Article 1102)

Level of Government: Federal

Measures: Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera, Capítulos I, II, III, V, VI

Reglamento de la Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera, Título I; Título II, Capítulos I, III, IV; Título IV; Título V; Título VIII, Capítulos I-V; Título IX, Capítulos I, II, III

As qualified by the Description element

Description:

Investment

The Comisión Nacional de Inversiones Extranjeras, in order to evaluate applications submitted for its consideration (acquisitions or establishment of investments in restricted activities as set out in this Schedule), shall take into account the following criteria:

The Comisión Nacional de Inversiones Extranjeras may impose performance requirements that are not prohibited by Article 1106.

Phase-Out:None

its effects on employment and training;

its technological contribution; or

in general, its contribution to increase Mexican industrial productivity and competitiveness.


Sector:All Sectors

Sub-Sector:

Industry Classification:

Type of Reservation:National Treatment (Article 1102)

Level of Government:Federal

Measures:Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera, Capítulos I, II, III, V, VI

Reglamento de la Ley Para Promover la Inversión Mexicana y Regular la Inversión Extranjera, Título I; Título II, Capítulo I; Título IV; Título V; Título VIII, Capítulos I-V; Título IX, Capítulos I, II, III

As qualified by the Description element

Description: Investment

The Comisión Nacional de Inversiones Extranjeras will only review direct or indirect acquisitions by an investor of another Party of more than 49 percent of the ownership interest in a Mexican enterprise in an unrestricted sector, that is directly or indirectly owned or controlled by Mexican nationals, if the value of the gross assets of the Mexican enterprise is not less than the applicable threshold.

Phase-Out:For investors and investments of investors of Canada or the UnitedStates, the applicable threshold for the review of an acquisition of a Mexican enterprise will be:

a) US$25 million, for the three-year period beginning on the date of entry into force of this Agreement;

b) US$50 million, for the three-year period beginning three years after the date of entry into force of this Agreement;

c) US$75 million, for the three-year period beginning six years after the date of entry into force of this Agreement; and

d) US$150 million, beginning nine years after the date of entry into force of this Agreement.

Beginning one year after the date of entry into force of this Agreement, each of these thresholds will be adjusted annually for cumulative inflation from the date of entry into force of this Agreement, based on the implicit price deflator for U.S. Gross Domestic Product (GDP) or any successor index published by the Council of Economic Advisors in "Economics Indicators".

The value of a threshold adjusted for cumulative inflation up to January of each year following 1994 shall be equal to the original value of the threshold multiplied by the following ratio:

a)the implicit GDP price deflator or any successor index published by the Council of Economic Advisors in "Economic Indicators", current as of January of that year; to

b) the implicit GDP price deflator or any successor index published by the Council of Economic Advisors in "Economic Indicators", current as of the date of entry into force of this Agreement,

provided that the implicit GDP price deflators under paragraphs (a) and (b) have the same base year.

The resulting adjusted threshold will be rounded to the nearest million dollars.

Beginning 10 years after the date of entry into force of this Agreement, the threshold will be adjusted annually by the rate of growth of the nominal Mexican GDP, as published by the Instituto Nacional de Estadística, Geografía e Informática. Whenever the dollar amount calculated for the threshold is, at the prevailing market exchange rate, equal to or higher than the amount calculated pursuant to Schedule of Canada, Annex I, page I-C-2, the calculation of the applicable threshold will be made according to the rules established therein. In no case will the threshold, as converted into U.S. dollars, exceed that of Canada.


Sector: All Sectors

Sub-Sector:

Industry Classification:

Type of Reservation: National Treatment (Article 1102)
Senior Management and Boards of Directors (Article 1107)

Level of Government: Federal

Measures: Constitución Política de los Estados Unidos Mexicanos, Artículo 25

Ley General de Sociedades Cooperativas, Título I, Capítulo I; Título II, Capítulo II

Description: Investment

No more than 10 percent of the persons participating in a Mexican cooperative production enterprise may be foreign nationals.

No foreign national may engage in general administrative functions or perform managerial activities in that enterprise.

Phase-Out: None


Sector: All Sectors

Sub-Sector:

Industry Classification:

Type of Reservation: National Treatment (Article 1102)

Level of Government: Federal

Measures: Ley Federal para el Fomento de la Microindustria, Capítulos I, II, III

Description: Investment

Only Mexican nationals may apply for a license ("cédula") to qualify as a microindustry enterprise.

Mexican "microindustry enterprises" may not have foreign persons as partners.

The Ley Federal para el Fomento de las Microindustria defines "microindustry enterprise" as including enterprises with up to fifteen workers and with sales of amounts periodically determined by the Secretaría de Comercio y Fomento Industrial.

Phase-Out: None


Sector: Agriculture, Livestock, Forestry and Lumber Activities

Sub-Sector: Agriculture, Livestock or Forestry

Industry Classification:CMAP 1111 Agriculture
CMAP 1112 Livestock and Game (limited to livestock) CMAP 1200 Forestry and Felling Trees

Type of Reservation: National Treatment (Article 1102)

Level of Government: Federal

Measures: Constitución Política de los Estados Unidos Mexicanos, Artículo 27

Ley Agraria, Títulos V, VI

Description: Investment

Only Mexican nationals or Mexican enterprises may own land for agriculture, livestock or forestry purposes. Such enterprises must issue a special type of share ("T" shares) representing the value of that land at the time of its acquisition. Investors of another Party or their investments may only own up to 49 percent of "T" shares.

Phase-Out: None

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 programming, MDS, direct broadcasting systems and high-definition television and cable television)

Type of Reservation: National Treatment (Article 1202) Performance Requirements (Article 1106)

Level of Government: Federal

Measures: Ley Federal de Radio y Televisión, Título IV, Capítulo III

Reglamento de la Ley Federal de Radio y Televisión y de la Ley de la Industria Cinematográfica Relativo al Contenido de las Transmisiones de Radio y Televisión, Título III

Reglamento del Servicio de Televisión por Cable, Capítulo VI

Description: Cross-Border Services and Investment

For the protection of copyrights, the holder of a concession for a commercial broadcast station or for a cable television system is required to obtain an authorization from the Secretaría de Gobernación to import in any form radio or television programming for broadcast or cable distribution within the territory of Mexico.

The authorization will be granted if the application for authorization includes documentation showing that the copyright holder has granted the license ("derechos") to broadcast or distribute by cable such programming.

Phase-Out:None


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 programming, MDS, direct broadcasting systems, high-definition television and cable television)

Type of Reservation: National Treatment (Article 1202)
Performance Requirements (Article 1106)

Level of Government:Federal

Measures: Ley Federal de Radio y Televisión, Título IV, Capítulo III

Reglamento de la Ley Federal de Radio y Televisión y de la Ley de la Industria Cinematográfica Relativo al Contenido de las Transmisiones de Radio y Televisión, Título III

Reglamento del Servicio de Televisión por Cable, Capítulo VI

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 thse Secretaría de Gobernación authorizes the use of another language.

A majority of the time of each day's live broadcast programs must feature Mexican nationals.

A radio or television announcer or presenter who is not a Mexican national must obtain an authorization from the Secretaría de Gobernación to perform in Mexico.

Phase-Out:None


Sector: Communications

Sub-Sector: Entertainment Services (Broadcasting, Multipoint Distribution Systems (MDS) and Cable Television)

Industry Classification: CMAP 941105 Private Services of Production, Transmission and Retransmission of Television Programming (limited to broadcasting, cable television and MDS)

Type of Reservation:

National Treatment (Article 1202)
Performance Requirements (Article 1106)

Level of Government: Federal

Measures: Ley Federal de Radio y Televisión, Título IV, Capítulo III

Reglamento de la Ley Federal de Radio y Televisión y de la Ley de la Industria Cinematográfica Relativo al Contenido de las Transmisiones de Radio y Televisión, Título III

Reglamento del Servicio de Televisión por Cable, Capítulo VI

Description: Cross-Border Services and Investment

The use of the Spanish language or Spanish subtitles is required for advertising broadcast or otherwise distributed in the territory of Mexico.

Advertising included in programs transmitted directly from outside the territory of Mexico may not be distributed in those programs when they are retransmitted in the territory of Mexico.

Phase-Out: None


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 (Article 1102)

Level of Government: Federal

Measures: Ley Federal de Radio y Televisión, Título III, Capítulos I, II, III

Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera, Capítulos I, II, III, V, VI

Reglamento del Servicio de Televisión por Cable, Capítulo II

Reglamento de la Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera, Título I; Título II, Capítulo I; Título IV; Título V; Título VIII, Capítulos I, II, III, V; Título IX, Capítulo I

As qualified by the Description element

Description: Investment

Investors of another Party or their investments may only own, directly or indirectly, up to 49 percent of the ownership interest in an enterprise, established or to be established in the territory of Mexico, that owns or operates a cable television system or provides cable television services.

Phase-Out: None. Subject to discussion by the Parties five years after the date of entry into force of this Agreement.


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 (Article 1202)
Local Presence (Article 1205)

Level of Government: Federal

Measures: Constitución Política de los Estados Unidos Mexicanos, Artículo 32

Ley de Vías Generales de Comunicación, Libro I, Capítulo III

Ley de Nacionalidad y Naturalización, Capítulo IV

Ley Federal de Radio y Televisión, Título III, Capítulos I, II, III

Reglamento del Servicio de Televisión por Cable, Capítulo II

Description: Cross-Border Services

A concession granted by the Secretaría de Comunicaciones y Transportes is required to construct and operate, or to operate, a cable television system. Only Mexican nationals and Mexican enterprises may obtain such a concession.

Phase-Out: None


Sector: Communications

Sub-Sector: Entertainment Services (Cinema)

Industry Classification: CMAP 941103 Private Exhibition of Films

Type of Reservation: National Treatment (Article 1202)
Performance Requirements (Article 1106)

Level of Government: Federal

Measures: Ley de la Industria Cinematográfica

Reglamento de la Ley de la Industria Cinematográfica

As qualified by the Description element

Description: Cross-Border Services and Investment

Thirty percent of the screen time of every theater, assessed on an annual basis, may be reserved for films produced by Mexican persons either within or outside the territory of Mexico.

Phase-Out: None


Sector: Communications

Sub-Sector: Telecommunications (Enhanced or Value-Added Services)

Industry Classification: CMAP 720006 Other Telecommunications Services (limited to enhanced or value-added services)

Type of Reservation: National Treatment (Articles 1102, 1202)
Local Presence (Article 1205)

Level of Government: Federal

Measures: Ley de Vías Generales de Comunicación, Libro I, Capítulo III

Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera, Capítulos I, II, III, V, VI

Reglamento de Telecomunicaciones, Capítulo IV

Reglamento de la Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera, Título I; Título II, Capítulo I; Título IV; Título V; Título VIII, Capítulos I, II, III, V; Título IX, Capítulo I

As qualified by paragraphs 2 and 4 of the Description element

Description: Cross-Border Services

1. A provider of enhanced or value-added services must obtain a permit issued by the Secretaría 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

4. Investors of another Party or their investments may own 100 percent of the ownership interest in an enterprise, established or to be established in the territory of Mexico, that provides any enhanced or value-added service, other than videotext or enhanced packet switching services.

5. Investors of another Party or their investments may only own, directly or indirectly, up to 49 percent of the ownership interest in an enterprise, established or to be established in the territory of Mexico, that provides videotext or enhanced packet switching services.

Phase-Out: Cross-Border Services

Beginning July 1, 1995, a person of Canada or the United States may provide videotext or enhanced packet switching services on a cross-border basis without the need to establish a local presence in the territory of Mexico.

Investment

Beginning July 1, 1995, investors of another Party or their investments may own 100 percent of the ownership interest in an enterprise established or to be established in the territory of Mexico that provides videotext or enhanced packet switching services.


Sector: Communications

Sub-Sector: Transportation and Telecommunications

Industry Classification: CMAP 7200 Communications (including telecommunications and postal services)

CMAP 7100 Transportation

Type of Reservation: National Treatment (Article 1102)

Level of Government: Federal

Measures: Ley de Vías Generales de Comunicación, Libro I, Capítulos III, V

Reglamento de Telecomunicaciones, Capítulo III

Description: Investment

Foreign governments and foreign state enterprises or their investments may not invest, directly or indirectly, in Mexican enterprises engaged in communications, transportation and other general means of communication ("vías generales de comunicación") activities, as defined in the Ley de Vías Generales de Comunicación.

Phase-Out: None


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 Movements

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

Measures: Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera, Capítulos I, II, III, V, VI

Reglamento de la Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera, Título I; Título II, Capítulo I; Título IV; Título V; Título VIII, Capítulos I, II, III, V; Título IX,

Capítulo I

Description: Investment

Prior approval of the Comisión 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 in an enterprise established or to be established in the territory of Mexico that performs construction activities as set out in the Industry Classification element.

Phase-Out: Subject to Schedule of Mexico, Annex I, page I-M-4, five years after the date of entry into force of this Agreement, investors of another Party and their investments may own 100 percent of the ownership interest in an enterprise established or to be established in the territory of Mexico without prior approval of the Comisión Nacional de Inversiones Extranjeras.


Sector: Construction

Sub-Sector:

Industry Classification: CMAP 501322 Construction of Means for the Transportation of Petroleum and its Derivatives (limited to specialized contractors only)

CMAP 503008 Petroleum and Gas, Exploration and Drilling Works and Services (limited to specialized contractors only)

Type of Reservation: National Treatment (Article 1102)

Level of Government: Federal

Measures: Constitución Política de los Estados Unidos Mexicanos, Artículo 27

Ley Reglamentaria del Artículo 27 Constitucional en el Ramo del Petróleo

Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera, Capítulos I, II, III, V, VI

Reglamento de la Ley Reglamentaria del Artículo 27 Constitucional en el Ramo del Petróleo , Capítulos I, V, IX, XII

Reglamento de la Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera, Título I; Título II, Capítulo I; Título IV; Título V; Título VIII, Capítulos I, II, III, V; Título IX, Capítulo I

Description: Investment

Risk-sharing contracts are prohibited.

Prior approval of the Comisión 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 in an enterprise established or to be established in the territory of Mexico involved in "non-risk- sharing" contracts for the exploration and drilling works of petroleum and gas wells and the construction of means for the transportation of petroleum and its derivatives. See also Schedule of Mexico, Annex III, page III-M-1.

Phase-Out:None


Sector: Educational Services

Sub-Sector: Private Schools

Industry Classification: CMAP 921101 Private Preschool Educational Services

CMAP 921102 Private Primary School Educational Services

CMAP 921103 Private Secondary School Educational Services

CMAP 921104 Private Middle High (Preparatory) School Educational Services

CMAP 921105 Private Higher School Educational Services

CMAP 921106 Private Educational Services that Combine Preschool, Primary, Secondary, Middle High and Higher School Instruction

Type of Reservation: National Treatment (Article 1102)

Level of Government: Federal

Measures: Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera, Capítulos I, II, III, V, VI

Ley para la Coordinación de la Educación Superior, Capítulo II

Ley Federal de Educación, Capítulo III

Reglamento de la Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera, Título I; Título II, Capítulo I; Título IV; Título V; Título VIII, Capítulos I, II, III, V; Título IX, Capítulo I

Description: Investment

Prior approval of the Comisión 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 in an enterprise established or to be established in the territory of Mexico that provides preschool, primary, secondary, preparatory, higher, worker or peasant, or "normal" educational services.

Phase-Out:None


Sector: Energy

Sub-Sector: Petroleum Products

Industry Classification: CMAP 623050 Retail Sales of Liquified Petroleum Gas (LPG)

Type of Reservation: National Treatment (Article 1102)

Level of Government: Federal

Measures: Ley Reglamentaria del Artículo 27 Constitucional en el Ramo del Petróleo

Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera, Capítulos I, II, III, V, VI

Reglamento de la Ley Reglamentaria del Artículo 27 Constitucional en el Ramo del Petróleo, Capítulos I, IX, XII

Reglamento de la Distribución de Gas, Capítulos I, II

Reglamento de la Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera, Título I; Título II, Capítulo I; Título IV; Título V; Título VIII, Capítulos I, II, III, V; Título IX, Capítulo I

Description: Investment

Only Mexican nationals and Mexican enterprises with a foreigners' exclusion clause may engage in the distribution, transportation, storage, or sale of liquified petroleum gas and the installation of fixed deposits.

Phase-Out: None


Sector: Energy

Sub-Sector: Petroleum Products

Industry Classification: CMAP 626000 Retail Outlets of Gasoline and Diesel (including lubricants, oils and additives for resale in these retail outlets)

Type of Reservation: National Treatment (Article 1102)

Level of Government: Federal

Measures: Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera, Capítulos I, II, III, V, VI

Reglamento de la Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera, Título I; Título II, Capítulo I; Título IV; Título V; Título VIII, Capítulos I, II, III, V; Título IX, Capítulo I

Reglamento de la Ley Reglamentaria del Artículo 27 Constitucional en el Ramo del Petróleo, Capítulos I, II, III, V, VII, IX, XII

As qualified by the Description element

Description: Investment

Only Mexican nationals and Mexican enterprises with a foreigners' exclusion clause may acquire, establish or operate retail outlets engaged in the sale or distribution of gasoline, diesel, lubricants, oils or additives.

Phase-Out: None


Sector: Fishing

Sub-Sector:

Industry Classification: CMAP 130011 Fishing on the High Seas

CMAP 130012 Coastal Fishing

CMAP 130013 Fresh Water Fishing

Type of Reservation: National Treatment (Article 1102)
Most-Favored-Nation Treatment (Article 1103)

Level of Government: Federal

Measures: Ley de Pesca, Capítulos I, II, IV

Ley de Navegación y Comercio Marítimos, Libro II, Título Unico, Capítulo V

Ley Federal del Mar, Título I, Capítulo I

Ley Federal de Aguas

Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera, Capítulos I, II, III, V, VI

Reglamento de la Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera, Título I; Título II, Capítulo I; Título IV; Título V; Título VIII, Capítulos I, II, III, V; Título IX, Capítulo I

Reglamento de la Ley de Pesca, Capítulos I, II, III, V, VI, IX, XV

Description: Investment

With respect to an enterprise established or to be established in the territory of Mexico performing coastal fishing, fresh water fishing and fishing in the Exclusive Economic Zone, investors of another Party or their investments may only own, directly or indirectly, up to 49 percent of the ownership interest in such an enterprise.

With respect to an enterprise established or to be established in the territory of Mexico performing fishing on the high seas, prior approval of the Comisión 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 in such an enterprise.

Phase-Out:None


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 Truck 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

Measures: Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera, Capítulos I, II, III, V, VI

Reglamento de la Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera, Título I; Título II, Capítulo I; Título IV; Título V; Título VIII, Capítulos I, II, III, V; Título IX, Capítulo I

Decreto para el Fomento y Modernización de la Industria Automotriz ("Auto Decree")

Acuerdo que Determina Reglas para la Aplicación del Decreto para el Fomento y Modernización de la Industria Automotriz

As qualified by the Description element

Description: Investment

1. Investors of another Party or their investments may only own, directly or indirectly, up to 49 percent of the ownership interest in an "enterprise of the autoparts industry", as defined in Annex 300-A, established or to be established in the territory of Mexico.

2. Investors of another Party or their investments that qualify as "national suppliers", as defined in Annex 300-A, may own 100 percent of the ownership interest in an enterprise established or to be established in the territory of Mexico and that engages in the supply of specified autoparts to producers of motor vehicles.

3. Investors of another Party or their investments may own up to 100 percent of the ownership interest in an enterprise producing autoparts established or to be established in the territory of Mexico, provided that the enterprise does not register with the Secretaría de Comercio y Fomento Industrial for purposes of the Auto Decree nor receive benefits under the Auto Decree. After the five-year transition period set out in the Phase-Out element, such firms shall be eligible to register or to receive benefits set forth in the Auto Decree as modified by Appendix 300-A.2 provided that such enterprise meets the requirements set out therein for national supplier or "enterprise of the autoparts industry" status.

Phase-Out:Five years after the date of entry into force of this Agreement, investors of another Party or their investments may own 100 percent of the ownership interest in any enterprise of the autoparts industry established or to be established in the territory of Mexico.

See Schedule of Mexico, Annex I, page I-M-33.


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 Truck 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

Measures: Decreto para el Fomento y Modernización de la Industria Automotriz ("Auto Decree")

Acuerdo que Determina Reglas para la Aplicación del Decreto para el Fomento y Modernización de la Industria Automotriz

As qualified by Description element

Description: Investment

As set out in Annex 300-A

Phase-Out: As set out in Annex 300-A


Sector: Manufacture of Goods

Sub-Sector: Maquiladora Industry

Industry Classification:

Type of Reservation: Performance Requirements (Article 1106)

Level of Government: Federal

Measures: Ley Aduanera, Título IV, Capítulos I, III; Título V, Capítulo II; Título VI

Decreto para el Fomento y Operación de la Industria Maquiladora de Exportación ("Maquiladora Decree")

As qualified by the Description element

Description: Investment

Persons authorized by the Secretaría de Comercio y Fomento Industrial to operate under the Maquiladora Decree may not sell to the domestic market more than 55 percent of the total value of their annual exports in the previous year.

Phase-Out: Sales of a maquiladora to the domestic market may not exceed:

a) one year after the date of entry into force of this Agreement, 60 percent of the total value of its annual exports in the previous year;

b) two years after the date of entry into force of this Agreement, 65 percent of the total value of its annual exports in the previous year;

c) three years after the date of entry into force of this Agreement, 70 percent of the total value of its annual exports in the previous year;

d) four years after the date of entry into force of this

Agreement, 75 percent of the total value of its annual exports in the previous year;

e) five years after the date of entry into force of this Agreement, 80 percent of the total value of its annual exports in the previous year; and

f) six years after the date of entry into force of this Agreement, 85 percent of the total value of its annual exports in the previous year.

Seven years after the date of entry into force of this Agreement, sales of a maquiladora to the domestic market will not be subject to any percentage requirement.


Sector: Manufacture of Goods

Sub-Sector: Industry Classification:

Type of Reservation: Performance Requirements (Article 1106)

Level of Government: Federal

Measures: Ley Reglamentaria del Artículo 131 de la Constitución Política de los Estados Unidos Mexicanos en Materia de Comercio Exterior, Capítulo I

Decreto para el Fomento y Operación de las Empresas Altamente Exportadoras, ("ALTEX Decree")

Description: Investment

1. "Direct exporters", as defined in the ALTEX Decree, authorized by the Secretaría de Comercio y Fomento Industrial to operate under that decree must export at least 40 percent of their total sales or US$2,000,000.

2. "Indirect exporters", as defined in ALTEX Decree, authorized by the Secretaría de Comercio y Fomento Industrial to operate under that decree must export at least 50 percent of their total sales.

Phase-Out: Seven years after the date of entry into force of this Agreement, "direct and indirect exporters" will not be subject to the percentage requirements set out in the Description element.


Sector: Manufacture of Goods

Sub-Sector:

Industry Classification:

Type of Reservation: Performance Requirements (Article 1106)

Level of Government: Federal

Measures: Ley Reglamentaria del Artículo 131 de la Constitución Política de los Estados Unidos Mexicanos en Materia de Comercio Exterior, Capítulo I

Ley Aduanera, Título III, Capítulo IV; Título IV, Capítulos I, III

Decreto que Establece Programas de Importación Temporal para Producir Artículos de Exportación, ("PITEX Decree")

Description: Investment

Persons authorized by the Secretaría de Comercio y Fomento Industrial to operate under the PITEX Decree are required to export at least:

a) 30 percent of their total production in order to be permitted to temporarily import duty-free

b) 10 percent of their total production or US$500,000 in order to be permitted to temporarily import duty-free

Phase-Out:Seven years after the date of entry into force of this Agreement, such persons will not be subject to the percentage requirements set out in the Description element.


Sector:Manufacture of Goods

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 and Boards of Directors (Article 1107)

Level of Government: Federal

Measures: Ley Federal de Armas de Fuego y Explosivos, Título III, Capítulo I

Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera, Capítulos I, II, III, V, VI

Reglamento de la Ley Federal de Armas de Fuego y Explosivos, Capítulo IV

Reglamento de la Ley Para Promover la Inversión Mexicana y Regular la Inversión Extranjera, Título I; Título II, Capítulo I, Título IV; Título V; Título VIII, Capítulos I, II, III, V; Título IX, Capítulo I

Description: Investment

Investors of another Party or their investments may only own, directly or indirectly, up to 49 percent of the ownership interest in an enterprise established or to be established in the territory of Mexico that manufactures artificial explosives and fireworks, firearms, cartridges and ammunition.

No foreign national may appoint or be appointed a member of the board of directors or an officer of such an enterprise.

Phase-Out: None

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

Measures: Ley Minera, Capítulos I, II

Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera, Capítulos I, II, III, V, VI

Reglamento de la Ley Minera

Reglamento de la Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera, Título I; Título II, Capítulo I, Título IV; Título V; Título VIII; Título IX, Capítulo I

As qualified by the Description element

Description: Investment

Prior approval of the Comisión 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 in an enterprise established or to be established in the territory of Mexico engaged in the extraction or exploitation of any mineral.

Phase-Out: Subject to Schedule of Mexico, Annex I, page I-M-4, five years after the date of entry into force of this Agreement, investors of another Party or their investments may own 100 percent of the ownership interest in an enterprise established or to be established in the territory of Mexico engaged in extraction or exploitation of any mineral, without the prior approval of the Comisión Nacional de Inversiones Extranjeras.


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

Measures: Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera, Capítulos I, II, III, V, VI

Reglamento de la Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera, Título I; Título II, Capítulo I; Título IV; Título V; Título VIII, Capítulos I, II, III, V; Título IX, Capítulo I

As qualified by the Description element

Description: Investment

Investors of another Party or their investments may own, directly or indirectly, 100 percent of the ownership interest in an enterprise established or to be established in the territory of Mexico engaged in the simultaneous printing and distribution in the territory of Mexico of a daily newspaper that is published outside of the territory of Mexico.

Investors of another Party or their investments may only own, directly or indirectly, up to 49 percent of the ownership interest in an enterprise established or to be established in the territory of Mexico engaged in the printing or publication of daily newspapers written primarily for a Mexican audience and distributed in the territory of Mexico.

For purposes of this reservation, daily newspapers are those published at least five days a week.

Phase-Out: None


Sector:Professional, Technical and Specialized Services

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

Measures: Ley Federal del Trabajo, Capítulo I

Description: Cross-Border Services

Only Mexican nationals licensed as doctors in the territory of Mexico may provide in-house medical services in Mexican enterprises.

Phase-Out: None


Sector: Professional, Technical and Specialized Services

Sub-Sector: Specialized Personnel

Industry Classification: CMAP 951012 Customs Brokers and Representation Agency Services (limited to shippers' export declarations)

Type of Reservation: National Treatment (Article 1202)

Level of Government: Federal

Measures: Ley Aduanera, Título IX, Capítulo Unico

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 a representative ("apoderado aduanal") employed by the exporter and authorized by the Secretaría de Hacienda y Crédito Público for this purpose.

Phase-Out: None. Subject to discussion by the Parties five years after the date of entry into force of this Agreement.


Sector:Professional, Technical and Specialized Services

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

Measures: Ley Reglamentaria del Artículo 5o. Constitucional, Relativo al Ejercicio de las Profesiones en el Distrito Federal, Capítulo III, Sección Tercera, Capítulos IV, V

Ley General de Población,Título III, Capítulo III

Reglamento de la Ley Reglamentaria del Artículo 5o. Constitucional, relativo al Ejercicio de las Profesiones en el Distrito Federal, Capítulo III

Description: Cross-Border Services

Only Mexican nationals may be licensed in professions that require a professional license ("cédula profesional").

An "inmigrado" or an "inmigrante" may seek a judicial order to obtain such a license.

Phase-Out: Citizenship and permanent residency requirements are subject to removal within two years of the date of entry into force of this Agreement in accordance with Article 1210(3). On removal of these requirements, a foreign professional will be required to have an address in Mexico.

With respect to legal services, see Schedule of Mexico, Annex I, page I-M-46, Schedule of Mexico Annex II, page II-M-10, and Schedule of Mexico, Annex VI, page VI-M-2.


Sector:Professional, Technical and Specialized Services

Sub-Sector: Professional Services

Industry Classification: CMAP 951002 Legal Services (including foreign legal consultancy)

Type of Reservation: National Treatment (Articles 1102, 1202)
Most-Favored-Nation Treatment (Articles 1103, 1203)
Local Presence (Article 1205)

Level of Government: Federal

Measures: Ley Reglamentaria del Artículo 5o. Constitucional, Relativo al Ejercicio de las Profesiones en el Distrito Federal, Capítulo I, Capítulo III, Sección III

Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera, Capítulos I, II, III, V, VI

Reglamento de la Ley Reglamentaria del Artículo 5o. Constitucional, relativo al Ejercicio de las Profesiones en el Distrito Federal, Capítulos I, II, V

Reglamento de la Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera, Título I; Título II, Capítulo I; Título IV; Título V; Título VIII, Capítulos I, II, III, V; Título IX, Capítulo I

As qualified by the Description element

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 the territory of Mexico.

Lawyers licensed in a Canadian province that permits partnerships between those lawyers 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, may not exceed the number of lawyers licensed in Mexico serving as partners, and their ownership interest in the partnership. A lawyer licensed in Canada may not practice or advise on Mexican law.

A law firm established by a 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 Schedule of Mexico, Annex VI, page VI-M-2.

Lawyers licensed in the United States will be subject to Schedule of Mexico, Annex II, page II-M-10 and Schedule of Mexico, Annex VI, page VI-M-2.

Phase-Out:None


Sector: Professional, Technical and Specialized Services

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

Measures: Código Fiscal de la Federación, Título III

Reglamento del Código Fiscal de la Federación, Capítulo II

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:

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 Secretaría de Hacienda y Crédito Público; or

d) enterprises undergoing a merger or divestiture.

Phase-Out: Citizenship and permanent residency requirements are subject to removal within two years of the date of entry into force of this Agreement in accordance with Article 1210(3). On removal of these requirements, a foreign professional will be required to have an address in Mexico.

Sector: Professional, Technical and Specialized Services

Sub-Sector: Specialized Services (Commercial Public Notaries)

Industry Classification:

Type of Reservation: National Treatment (Articles 1102, 1202)
Local Presence (Article 1205)

Level of Government: Federal

Measures: Código de Comercio, Libro I, Título III

Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera, Capítulos I, II, III, V, VI

Reglamento de la Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera, Título I; Título II, Capítulo I; Título IV; Título V; Título VIII, Capítulos I, II, III, V; Título II, Capítulo I

Description: Cross-Border Services and Investment

1. Only a Mexican national by birth may be licensed to be a commercial public notary ("corredor público").

2. A commercial public notary may not have a business affiliation with any person for the provision of commercial public notary services.

Phase-Out: 1. Citizenship and permanent residency requirements are

subject to removal within two years of the date of entry into force of this Agreement in accordance with Article 1210(3). On removal of these requirements, a foreign professional will be required to have an address in Mexico.

2. None


Sector: Professional, Technical and Specialized Services

Sub-Sector: Specialized Services

Industry Classification: CMAP 951001 Public Notary

Type of Reservation: National Treatment (Articles 1102, 1202)
Local Presence (Article 1205)

Level of Government: Federal and State

Measures: Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera, Capítulos I, II, III, V, VI

Leyes del Notariado para los Estados de: Aguascalientes, Baja California, Baja California Sur, Campeche, Coahuila, Colima, Chiapas, Chihuahua, Distrito Federal, Durango, Guanajuato, Guerrero, Hidalgo, Jalisco, México, Michoacán, Morelos, Nayarit, Nuevo León, Oaxaca, Puebla, Querétaro, Quintana Roo, San Luis Potosí, Sinaloa, Sonora, Tabasco, Tamaulipas, Tlaxcala, Veracruz, Yucatán and Zacatecas.

Reglamento de la Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera, Título I; Título II, Capítulo I; Título IV; Título V; Título VIII, Capítulos I, II, III, V; Título IX, Capítulo I

Description: Cross-Border Services and Investment

Only Mexican nationals by birth may be granted a fiat ("patente") to be public notaries ("notarios públicos").

A public notary may not have a business affiliation with any person for the provision of public notary services.

Phase-Out: None


Sector: Professional, Technical and Specialized Services

Sub-Sector: Professional Services

Industry Classification: CMAP 951023 Other Professional Services (limited to private veterinary services)

Type of Reservation: National Treatment (Article 1202)

Level of Government: Federal

Measures: Ley de Sanidad Fitopecuaria de los Estados Unidos Mexicanos, Título II, Capítulo IV

Reglamento de Control de Productos Químico-Farmacéuticos, Biológicos, Alimenticios, Equipos y Servicios para Animales, Capítulos IV, V

Description: Cross-Border Services

For enterprises that manage chemical, pharmaceutical and biological goods for application to animals, only a Mexican national may be:

a) a veterinarian responsible for management of such goods; or

b) a licensed professional responsible for laboratories of such enterprises.

Phase-Out: Citizenship and permanent residency requirements are subject to removal within two years of the date of entry into force of this Agreement in accordance with Article 1210(3). On removal of these requirements, a foreign professional will be required to have an address in Mexico.


Sector:Retail Commerce

Sub-Sector: Sale of Non-Food Products in Specialized Establishments

Industry Classification: CMAP 623087 Sale of Firearms, Cartridges and Ammunition

CMAP 612024 Wholesale Commerce, Not Elsewhere Classified (limited to firearms, cartridges and ammunition)

Type of Reservation: National Treatment (Article 1102)
Senior Management and Boards of Directors (Article 1107)

Level of Government: Federal

Measures: Ley Federal de Armas de Fuego y Explosivos, Título III, Capítulo I

Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera, Capítulos I, II, III, V, VI

Reglamento de la Ley Federal de Armas de Fuego y Explosivos, Capítulo IV

Reglamento de la Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera, Título I; Título II, Capítulo I; Título IV; Título V; Título VIII, Capítulos I, II, III, V; Título IX, Capítulo I

Description: Investment

Investors of another Party or their investments may only own, directly or indirectly, up to 49 percent of the ownership interest in an enterprise established or to be established in the territory of Mexico that sells firearms, cartridges and ammunition.

No foreign national may appoint or be appointed a member of the board of directors or managing officer of such an enterprise.

Phase-Out: None


Sector:Religious Services

Sub-Sector:

Industry Classification: CMAP 929001 Religious Services

Type of Reservation: Local Presence (Article 1205)
Senior Management and Boards of Directors (Article 1107)

Level of Government: Federal

Measures: Ley de Asociaciones Religiosas y Culto Privado, Título II, Capítulos I, II

Description: Cross-Border Services

Religious associations must be associations constituted in accordance with the Ley de Asociaciones Religiosas y Cultos Privados.

Investment

Representatives of religious associations in Mexico must be Mexican nationals.

Phase-Out: None

Sector: Services to Agriculture

Sub-Sector:

Industry Classification: CMAP 971010 Supply of Agricultural Services

Type of Reservation:

National Treatment (Article 1202)
Local Presence (Article 1205)

Level of Government: Federal

Measures: Constitución Política de los Estados Unidos Mexicanos, Artículo 32

Ley de Sanidad Fitopecuaria de los Estados Unidos Mexicanos, Título II

Ley de Nacionalidad y Naturalización, Capítulo IV

Reglamento de la Ley de Sanidad Fitopecuaria de los Estados Unidos Mexicanos, Capítulo VII

Description: Cross-Border Services

A concession granted by the Secretaría de Agricultura y Recursos Hidráulicos is required to spray pesticides.

Only Mexican nationals or Mexican enterprises may obtain such a concession.

Phase-Out: Six years after the date of entry into force of this Agreement, the requirement of a concession will be replaced with a permit requirement and the citizenship requirement will be eliminated.


Sector: Transportation

Sub-Sector: 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 and Boards of Directors (Article 1107)

Level of Government: Federal

Measures: Ley de Vías Generales de Comunicación, Libro IV, Capítulo I, X, XI

Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera, Capítulos I, II, III, V, VI

Reglamento de la Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera, Título I; Título II, Capítulo I; Título IV; Título V; Título VIII, Capítulos I, II, III, V; Título IX, Capítulo I

As qualified by the Description element

Description: Investment

Investors of another Party or their investments may only own, directly or indirectly, up to 25 percent of the voting interest in an enterprise established or to be established in the territory of Mexico that provides commercial air services on Mexican-registered aircraft. The chairman and at least two-thirds of the board of directors and two-thirds of managing officers of such an enterprise must be Mexican nationals.

Only Mexican nationals and Mexican enterprises in which 75 percent of the voting interests is owned or controlled by Mexican nationals and of which the chairman and at least two-thirds of the managing officers are Mexican nationals may register aircraft in Mexico.

Only Mexican-registered aircraft may provide the following commercial air transport services:

a) "domestic services" (air services between points, or from and to the same point, in the territory of Mexico, or between a point in the territory of Mexico and a point not in the territory of another country);

b) "scheduled international services" (scheduled air services between a point in the territory of Mexico and a point in the territory of another country) where those services have been reserved to Mexican carriers under existing or future bilateral agreements; and

c) "non-scheduled international services" (non-scheduled air services between a point in the territory of Mexico and a point in the territory of another country) where those services have been reserved to Mexican carriers under existing or future bilateral agreements.

Phase-Out:None


Sector: Transportation

Sub-Sector: Specialty Air Services

Industry Classification:

Type of Reservation: National Treatment (Articles 1102, 1202)
Local Presence (Article 1205)
Senior Management and Boards of Directors (Article 1107)

Level of Government: Federal

Measures: Ley de Vías Generales de Comunicación, Libro I, Capítulos I, II, III; Libro IV, Capítulo XII

As qualified by paragraphs 2, 3 and 4 of the Description element

Description: Cross-Border Services

1. A permit issued by the Secretaría de Comunicaciones y Transportes (SCT) is required to provide all specialty air services in the territory of Mexico.

2. A person of Canada or the United States may obtain such a permit to provide flight training, forest fire management,

3. Such a permit may not be issued to a person of Canada or the United States to provide aerial advertising, aerial sightseeing, aerial construction, heli-logging, inspection and surveillance, mapping, photography, surveying and aerial spraying services.

Investment

4. Investors of another Party or their investments may only own, directly or indirectly, up to 25 percent of the voting interest in an enterprise established or to be established in the territory of Mexico that provides specialty air services using fire-fighting, glider towing, and parachute jumping services in Mexico, subject to compliance with Mexican safety requirements.

Mexican-registered aircraft. The chairman and at least two-thirds of the board of directors and two-thirds of managing officers of such an enterprise must be Mexican nationals. Only Mexican nationals and Mexican enterprises in which 75 percent of the voting interest is owned or controlled by Mexican nationals and of which the chairman and at least two-thirds of the managing officers are Mexican nationals may register aircraft in Mexico.

Phase-Out: Cross-Border Services

A person of Canada or the United States will be allowed to obtain a permit by SCT to provide, subject to compliance with Mexican safety requirements, the following specialty air services:

a) three years after the date of entry into force of this Agreement, aerial advertising, aerial sightseeing services, aerial construction and heli-logging; and

b) six years after the date of entry into force of this Agreement, inspection and surveillance, mapping, photography, surveying and aerial spraying services.

Investment

None


Sector: Transportation

Sub-Sector: 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

Measures: Constitución Política de los Estados Unidos Mexicanos, Artículo 32

Ley de Vías Generales de Comunicación, Libro I, Capítulos I, II, III; Libro IV, Capítulo XV

Ley de Nacionalidad y Naturalización, Capítulo IV

Reglamento de Talleres Aeronáuticos, Capítulo I

Description: Cross-Border Services

A concession granted by the Secretaría de Comunicaciones y Transportes is required to establish and operate, or operate, an aircraft repair facility. Only Mexican nationals and Mexican enterprises may obtain such a concession.

Phase-Out: None


Sector: Transportation

Sub-Sector: 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

Measures: Constitución Política de los Estados Unidos Mexicanos, Artículo 32

Ley de Vías Generales de Comunicación, Libro I, Capítulos I, II, III; Libro IV, Capítulo IX

Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera, Capítulos I, II, III, V, VI

Ley de Nacionalidad y Naturalización, Capítulo IV

Reglamento de la Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera, Título I; Título II, Capítulo I; Título IV; Título V; Título VIII, Capítulos I, II, III, V; Título IX, Capítulo I

Description: Cross-Border Services

A concession granted by the Secretaría 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 a concession.

Investment

Prior approval of the Comisión 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 in an enterprise established or to be established in the

territory of 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.

Phase-Out:None


Sector: Transportation

Sub-Sector: 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

Measures: Ley de Vías Generales de Comunicación, Libro I, Capítulo I, II, III; Libro II, Título II, Capítulos I, II; Título III, Capítulo Unico

Reglamento para el Aprovechamiento del Derecho de Vía de las Carreteras Federales y Zonas Aledañas, Capítulos II, IV

Reglamento del Servicio Público de Autotransporte Federal de Pasajeros, Capítulo III, IV

As qualified by paragraph 1 of the Description element

Description: Cross-Border Services

1. A permit issued by the Secretaría 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 a permit.

Investment

2. Investors of another Party or their investments may not own, directly or indirectly, ownership interest in an enterprise established or to be established in the territory of Mexico engaged in the establishment or operation of bus or truck stations or terminals.

Phase-Out: Cross-Border Services

Three years after the date of signature of this Agreement, such a permit may be obtained by Mexican nationals and Mexican enterprises.

Investment

With respect to an enterprise established or to be established in the territory of Mexico engaged in the establishment or operation of bus or truck station or terminals, investors of another Party or their investments may own, directly or indirectly:

a) three years after the date of signature of this Agreement, only up to 49 percent of the ownership interest in the enterprise;

b) seven years after the date of entry into force of this Agreement, only up to 51 percent of the ownership interest in the enterprise; and

c) ten years after the date of entry into force of this Agreement, 100 percent of the ownership interest in the enterprise.


Sector: Transportation

Sub-Sector: Land Transportation

Industry Classification:CMAP 711101 Railway Transport Services (limited to railway crew)

Type of Reservation: National Treatment (Article 1202)

Level of Government:Federal

Measures: Ley Federal del Trabajo, Capítulo I

Description: Cross-Border Services

Railway crew members must be Mexican nationals.

Phase-Out:None


Sector: Transportation

Sub-Sector: 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

Measures: Constitución Política de los Estados Unidos Mexicanos, Artículo 32

Ley de Vías Generales de Comunicación, Libro I, Capítulos I, II, III; Libro II, Título II, Capítulo II; Título III, Capítulo Unico

Ley de Nacionalidad y Naturalización, Capítulo IV

Description: Cross-Border Services

A concession granted by the Secretaría 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 a concession.

Phase-Out: None


Sector: Transportation

Sub-Sector: 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 Services from a Specific Station

CMAP 711318 School and Tourist Transportation Services (limited to school transportation services)

Type of Reservation: National Treatment (Article 1102, 1202)

Level of Government: Federal

Measures: Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera, Capítulos I, II, III, V, VI

Ley de Vías Generales de Comunicación, Libro I, Capítulos I, II, III; Libro II, Título II, Capítulo II

Ley de Nacionalidad y Naturalización, Capítulo IV

Reglamento de la Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera, Título I; Título II, Capítulo I; Título IV; Título V; Título VIII, Capítulos I, II, III, V; Título IX, Capítulo I

Reglamento del Servicio Público de Autotransporte Federal de Pasajeros, Capítulo II

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.

Phase-Out: None


Sector: Transportation

Sub-Sector: 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

Measures: Memorandum de Entendimiento entre los Estados Unidos Mexicanos y los Estados Unidos de Norteamérica para la Promoción de Servicios de Transporte Turístico de Ruta Fija, 3 de diciembre de 1990

Ley de Vías Generales de Comunicación, Libro I, Capítulos I, II, III; Libro II, Título II, Capítulo II; Título III, Capítulo Unico

Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera, Capítulos I, II, III, V, VI

Reglamento de la Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera, Título I; Título II, Capítulo I; Título IV; Título V; Título VIII, Capítulos I, II, III, V; Título IX, Capítulo I

As qualified by paragraphs 1, 3 and 4 of the Description element.

Description: Cross-Border Services

1. A permit issued by the Secretaría de Comunicaciones y Transportes is required to provide inter-city bus services, tourist transportation services or truck services for the transportation of goods or passengers to or from the territory of Mexico.

2. Only Mexican nationals and Mexican enterprises with a foreigners' exclusion clause may provide such services.

3. Notwithstanding paragraph 2, a person of Canada or the United States will be permitted to provide international charter or tour bus services to or from the territory of Mexico.

4. Only Mexican nationals and Mexican enterprises with a foreigners' exclusion clause, using Mexican-registered equipment that is Mexican-built or legally imported and drivers who are Mexican nationals, may provide bus or truck services for the transportation of goods or passengers between points in the territory of Mexico.

Investment

5. Investors of another Party or their investments may not own directly or indirectly, an ownership interest in an enterprise established or to be established in the territory of Mexico engaged in bus or truck transportation services as set out in the Industry Classification element.

Phase-Out: Cross-Border Services

A person of Canada or of the United States will be permitted to provide:

a) three years after the date of signature of this Agreement, cross-border truck services to or from the territory of border states (Baja California, Chihuahua, Coahuila, Nuevo León, Sonora and Tamaulipas), and such a person will be permitted to enter and depart Mexico through different ports of entry in such states;

b) three years after the date of entry into force of this Agreement, cross-border scheduled bus services to or from the territory of Mexico; and

c) six years after the date of entry into force of this Agreement, cross-border truck services to or from the territory of Mexico.

Three years after the date of signature of this Agreement, only Mexican nationals and Mexican enterprises, using

Mexican-registered equipment that is Mexican-built or legally imported and drivers who are Mexican nationals, may provide bus or truck services for the transportation of international cargo or passengers between points in the territory of Mexico. For domestic cargo, paragraph 4 of the Description element will continue to apply.

Investment

With respect to an enterprise established or to be established in the territory of Mexico providing inter-city bus services, tourist transportation services, or truck services for the transportation of international cargo between points in the territory of Mexico, investors of another Party or their investments may own, directly or indirectly:

a) three years after the date of signature of this Agreement, only up to 49 percent of ownership interest in such an enterprise;

b) seven years after the date of entry into force of this Agreement, only up to 51 percent of the ownership interest in such an enterprise; and

c) ten years after the date of entry into force of this Agreement, 100 percent of the ownership interest in such an enterprise.

Investors of another Party or their investments may not own, directly or indirectly, an ownership interest in an enterprise providing truck services for the carriage of domestic cargo.


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

Measures: Constitución Política de los Estados Unidos Mexicanos, Artículo 32

Ley de Vías Generales de Comunicación, Libro I, Capítulos I, II, III; Libro II, Título II, Capítulo II; Libro III, Capítulos II, XV

Ley de Nacionalidad y Naturalización, Capítulo IV

Description: Cross-Border Services

A concession granted by the Secretaría de Comunicaciones y Transportes is required to construct and operate, or operate, marine or river works or roads for land transportation. Such a concession may be granted only to Mexican nationals and Mexican enterprises.

Phase-Out: None


Sector: Transportation

Sub-Sector: Non-Energy Pipelines

Industry Classification:

Type of Reservation: National Treatment (Article 1202)
Local Presence (Article 1205)

Level of Government: Federal

Measures:Constitución Política de los Estados Unidos Mexicanos, Artículo 32

Ley de Vías Generales de Comunicación, Libro I, Capítulos I, II, III

Ley Federal de Aguas, Título I, Capítulo I

Ley de Nacionalidad y Naturalización, Capítulo IV

Description: Cross-Border Services

A concession granted by the Secretaría de Comunicaciones y Transportes is required to construct and operate, or operate, pipelines carrying goods other than energy or basic petrochemicals. Only Mexican nationals and Mexican enterprises may obtain such a concession.

Phase-Out: None


Sector: Transportation

Sub-Sector: Specialized Personnel

Industry Classification: CMAP 951012 Customs Brokers

Type of Reservation: National Treatment (Article 1102)

Level of Government:Federal

Measures: Constitución Política de los Estados Unidos Mexicanos, Artículo 32

Ley Aduanera, Título II, Capítulo Unico

Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera, Capítulos I, II, III, V, VI

Reglamento de la Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera, Título I; Título II, Capítulo I; Título IV; Título V; Título VIII, Capítulos I, II, III, V; Título IX, Capítulo I

Description: Investment

Investors of another Party or their investments may not own, directly or indirectly, an ownership interest in a customs broker enterprise ("agencia aduanal").

Phase-Out: None


Sector: Transportation

Sub-Sector: Water Transportation

Industry Classification: CMAP 1300 Fishing

Type of Reservation: National Treatment (Article 1202)
Most-Favored-Nation Treatment (Article 1203)
Local Presence (Article 1205)

Level of Government: Federal

Measures: Constitución Política de los Estados Unidos Mexicanos, Artículo 32

Ley de Pesca, Capítulos I, II

Ley de Navegación y Comercio Marítimos, Libro II, Título Unico, Capítulo I

Ley de Nacionalidad y Naturalización, Capítulo IV

Reglamento de la Ley de Pesca, Capítulo I, III, IV, V, VI, IX, XV

Description: Cross-Border Services

A concession granted, or permit issued, by the Secretaría 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 a 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.

Only Mexican nationals and Mexican enterprises may obtain authorization from the Secretaría de Pesca for deep sea fishing on Mexican-flagged vessels, fixed rigging installations, recollection from the natural milieu of larvae, post-larvae, eggs, seeds or fingerlings, for research or aquaculture purposes, introduction of live species into "Mexican jurisdictional waters", and for educational fishing in accordance with the programs of fishing educational institutions.

Phase-Out:None


Sector:Transportation

Sub-Sector: Water Transportation

Industry Classification: CMAP 384201 Shipbuilding and Ship Repair

Type of Reservation: National Treatment (Article 1202)
Local Presence (Article 1205)
>Performance Requirements (Article 1106)

Level of Government: Federal

Measures: Constitución Política de los Estados Unidos Mexicanos, Artículo 32

Ley de Vías Generales de Comunicación, Libro I, Capítulos I, II, III; Libro III, Capítulo XV

Ley para el Desarrollo de la Marina Mercante, Capítulo IV

Ley de Nacionalidad y Naturalización, Capítulo IV

Description: Cross-Border Services

A concession granted by the Secretaría de Comunicaciones y Transportes is required to establish and operate, or operate, a shipyard. Only Mexican nationals and Mexican enterprises may obtain such a concession.

Cross-Border Services and Investment

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, that owner must carry out repair and maintenance operations in shipyards and repair facilities in the territory of Mexico.

Phase-Out: None


Sector: Transportation

Sub-Sector: Water Transportation

Industry Classification: CMAP 712011 International Maritime Transportation Services
CMAP 712012 Cabotage Maritime Services

CMAP 712013 International and Cabotage Towing Services

CMAP 712022 Internal Port Water Transportation Services

CMAP 712021 River and Lake Transportation Services

Type of Reservation: National Treatment (Articles 1102, 1202)
Most-Favored-Nation Treatment (Articles 1103, 1203)
Senior Management and Boards of Directors (Article 1107)

Level of Government: Federal

Measures: Ley de Vías Generales de Comunicación, Libro I, Capítulos I, II y III; Libro III, Capítulos I-XV

Ley para el Desarrollo de la Marina Mercante, Capítulos I, III

Ley de Navegación y Comercio Marítimos, Libro II, Título Unico, Capítulos I, III

Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera, Capítulos I, II, III, V, VI

Reglamento de la Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera, Título I; Título II, Capítulo I; Título IV; Título V; Título VIII, Capítulos I, II, III, V; Título I IX, Capítulo I

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 Secretaría de Comunicaciones y Transportes where 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 the territory of 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. Where such towing vessels are not able to provide such services, the Secretaría de Comunicaciones y Transportes may provide permits 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.

Investment

Prior approval of the Comisión Nacional de Inversiones Extranjeras is required for investors of another Party or their investments to own, directly or indirectly, more than the 49 percent of the ownership interest in an enterprise established or to be established in the territory of Mexico operating foreign-flagged vessels providing international maritime transport services.

Phase-Out:None


Sector: Transportation

Sub-Sector: 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

Measures: Ley de Navegación y Comercio Marítimos, Libro II, Capítulo II

Ley de Vías Generales de Comunicación, Libro III, Capítulo XI

Description: Cross-Border Services

All port workers must be Mexican nationals.

Phase-Out: None


Sector: Transportation

Sub-Sector: 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 wharves; waterfront terminal operations)

Type of Reservation: National Treatment (Article 1102)

Level of Government: Federal

Measures: Ley de Navegación y Comercio Marítimos, Libro I, Título Unico, Capítulo I; Libro II, Título II

Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera, Capítulos I, II, III, V, VI

Ley de Vías Generales de Comunicación, Libro I, Capítulos I, II, III; Libro III, Capítulo II

Reglamento de la Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera, Título I; Título II, Capítulo I; Título IV; Título V; Título VIII, Capítulos I, II, III, V; Título IX, Capítulo I

Reglamento del Servicio de Maniobras en las Zonas Federales de Puertos, Libro I, Título Unico, Capítulo I; Libro II, Título Unico, Capítulo II, Sección A; Libro IV, Título Unico

Reglamento para el Uso y Aprovechamiento del Mar Territorial, Vías Navegables, Playas, Zona Federal Marítimo Terrestre y Terrenos Ganados al Mar, Capítulo II, Sección II

As qualified by the Description element

Description: Investment

Prior approval of the Comisión 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 in an enterprise, established or to be established in the territory of 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.

Phase-Out: None


Sector: Transportation

Sub-Sector: 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 wharves; waterfront terminal operations)

Type of Reservation: National Treatment (Article 1202)
Local Presence (Article 1205)

Level of Government: Federal

Measures: Constitución Política de los Estados Unidos Mexicanos, Artículo 32

Ley de Navegación y Comercio Marítimos, Libro I, Título Unico, Capítulo I; Libro II, Título II

Ley de Vías Generales de Comunicación, Libro I, Capítulos I, II, III; Libro III, Capítulo II

Ley de Nacionalidad y Naturalización, Capítulo IV

Reglamento del Servicio de Maniobras en las Zonas Federales de Puertos, Libro I, Título Unico, Capítulo I, Libro II, Título Unico, Capítulo II, Sección A; Libro IV, Título Unico

Reglamento para el Uso y Aprovechamiento del Mar Territorial, Vías Navegables, Playas, Zona Federal Marítimo Terrestre y Terrenos Ganados al Mar, Capítulo II, Sección II

Description: Cross-Border Services

A concession granted by the Secretaría de Comunicaciones y Transportes is required to construct and operate, or operate, maritime and inland port terminals, including docks, cranes and related facilities. Only Mexican nationals and Mexican enterprises may obtain such a concession.

A permit issued by the Secretaría de Comunicaciones y Transportes is required to provide stevedoring and warehousing services. Only Mexican nationals and Mexican enterprises may obtain such a permit.

Phase-Out:None

Schedule of the United States

Sector: Energy

Sub-Sector: Atomic Energy

Industry Classification:

Type of Reservation: National Treatment (Article 1102)

Level of Government: Federal

Measures: Atomic Energy Act of 1954, 42 U.S.C. '' 2011 et seq.

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 a 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 "production or utilization 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)).

Phase-Out: None


Sector: Business Services

Sub-Sector: Export Intermediaries

Industry Classification: SIC 7389 Business Services, Not Elsewhere Classified

Type of Reservation: National Treatment (Article 1202) Local Presence (Article 1205)

Level of Government: Federal

Measures: Export Trading Company Act of 1982, 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 provides for the issuance of a certificate of review where 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. "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 may 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) that 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."

Phase-Out: None


Sector: Business Services

Sub-Sector: Export Intermediaries

Industry Classification: SIC 7389 Business Services, Not Elsewhere Classified

Type of Reservation: National Treatment (Article 1202) Local Presence (Article 1205)

Level of Government: Federal

Measures: 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, U.S. 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.

Phase-Out: None


Sector: Communications

Sub-Sector: Telecommunications (Enhanced or Value-Added Services)

Industry Classification: CPC 7523  Data and Message Transmission Services

CPC 75299 Other Telecommunications Services Not Elsewhere Classified (limited to enhanced or value-added services)

Type of Reservation: National Treatment (Article 1102)

Level of Government: Federal

Measures: 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 (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 evidence of any refusal of a foreign government to grant it an operating agreement. For purposes of this rule, a service provider is generally considered to be "foreign owned" if 20 percent or more of its stock is owned by persons who are not U.S. citizens.

Phase-Out: None


Sector: Manufacturing

Sub-Sector: Agricultural Chemicals

Industry Classification: SIC 2879 Pesticides and Agricultural Chemicals, Not Elsewhere

Classified

Type of Reservation: National Treatment (Article 1102)

Level of Government: Federal

Measures: Federal Insecticide, Fungicide and Rodenticide Act, 7 U.S.C. '' 136 et seq.

Description: Investment

The Administrator of the Environmental Protection Agency may not knowingly disclose information submitted by an applicant or registrant under the Federal Insecticide, Fungicide and Rodenticide Act, without consent, to any foreign or multinational business or entity, or any employee or agent of such business or entity, 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 that business, entity, employee or agent (7 U.S.C. ' 136h(g)).

Phase-Out:None


Sector: Mining

Sub-Sector:

Industry Classification:

Type of Reservation: National Treatment (Article 1102)

Most-Favored-Nation Treatment (Article 1103)

Level of Government: Federal

Measures: Mineral Lands Leasing Act of 1920, 30 U.S.C. Chapter 3A 43 C.F.R. ' 3102

43 C.F.R. ' 2882.2-1

10 U.S.C. ' 7435

Description: Investment

Under the Mineral Lands Leasing Act of 1920, aliens and foreign corporations may not acquire rights-of-way for oil or gas pipelines, or pipelines carrying products refined from oil and gas, across on-shore federal lands or acquire leases or interests in certain minerals on on-shore federal lands, such as coal or oil. 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 that acquires a 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 citizens or corporations or to the citizens or corporations of other countries (30 U.S.C. '' 181, 185(a)).

Nationalization is not considered to be denial of similar or like privileges.

Foreign citizens, or corporations controlled by them, are restricted from obtaining access to federal leases on Naval Petroleum

Reserves if the laws, customs or regulations of their country deny the privilege of leasing public lands to citizens or corporations of the United States (10 U.S.C. ' 7435).

Phase-Out: None


Sector: Professional Services

Sub-Sector: Patent Attorneys and Patent Agents and other Practice before the Patent and Trademark Office

Industry Classification: SIC 7389 Business Services, Not Elsewhere Classified SIC 8111 Legal Services

Type of Reservation: National Treatment (Article 1202)

Most-Favored-Nation Treatment (Article 1203) Local Presence (Article 1205)

Level of Government: Federal

Measures: 35 U.S.C. Chapter 3 (practice before the U.S. 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):

Phase-Out: Citizenship and permanent residency requirements are subject to removal within two years of the date of entry into force of this Agreement in accordance with Article 1210(3).


Sector: Public Administration

Sub-Sector:

Industry Classification:

Type of Reservation: National Treatment (Article 1102)

Most-Favored-Nation Treatment (Article 1103)

Level of Government: Federal

Measures: 22 U.S.C. '' 2194(a) and (b) and 2198(c)

Description: Investment

The Overseas Private Investment Corporation insurance and loan guarantees are not available to certain aliens, foreign enterprises or foreign-controlled domestic enterprises.

Phase-Out: None


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

Measures: 49 App. U.S.C. '' 1354, 1421-1430

14 C.F.R. '' 43 and 145

Agreement Concerning Airworthiness Certification, Exchange of Letters between the United States and Canada dated August 31, 1984, TIAS 11023, as amended

Description: Cross-Border Services

For aircraft repair, overhaul or maintenance activities performed outside the territory of the United States, 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 an airworthiness agreement between the United States and Canada, the United States recognizes the certifications and oversight provided by Canada for all repair and maintenance facilities and individuals performing the work located in Canada.

Phase-Out: None


Sector: Transportation

Sub-Sector: Air Transportation

Industry Classification: SIC 4512 Air Transportation Scheduled SIC 4513 Air Courier Services

SIC 4522 Air Transportation Non-scheduled

Type of Reservation: National Treatment (Article 1102)

Most-Favored-Nation Treatment (Article 1103)

Senior Management and Boards of Directors (Article 1107)

Level of Government: Federal

Measures: Federal Aviation Act of 1958, 49 App. U.S.C. Ch. 20

Description: Investment

Only air carriers that are "citizens of the United States" may operate aircraft in domestic air service (cabotage) and may provide international scheduled and non-scheduled air service as U.S. air carriers.

U.S. citizens also have blanket authority to engage in indirect air transportation activities (air freight forwarding and charter activities other than as actual operators of the aircraft). In order to conduct such activities, non-U.S. citizens must obtain authority from the Department of Transportation. Applications for such authority may be rejected for reasons relating to the failure of effective reciprocity, or if the Department of Transportation finds that it is in the public interest to do so.

Under the Federal Aviation Act of 1958, a "citizen of the United States" means:

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, and has provided guidance as to certain lines of demarcation. For example, total foreign equity investment of up to 49 percent (with a maximum of 25 percent being voting stock), by itself, is not construed as indicative of foreign control. See Department of Transportation Order 91-1-41, January 23, 1991.

Phase-Out: None


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 0851 Forestry Services (limited to aerial fire fighting)

SIC 4522 Air Transportation, Nonscheduled (limited to air taxi 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; and firefighting service, other than forestry)

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 and Boards of Directors (Article 1107)

Level of Government: Federal

Measures: Federal Aviation Act of 1958, 49 App. U.S.C. Ch. 20 14 C.F.R. ' 375

As qualified by paragraph 2 of the Description element

Description: Cross-Border Services

Investment

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, and has provided guidance as to certain lines of demarcation. For example, total foreign equity investment of up to 49 percent (with a maximum of 25 percent being voting stock), by itself, is not construed as indicative of foreign control. See Department of Transportation Order 91-1-41, January 23, 1991.

Phase-Out: Cross-Border Services

A person of Canada or Mexico will be permitted to obtain, subject to compliance with U.S. safety requirements, authorization to provide the following specialty air services in the territory of the United States:

Investment

None


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

Measures: 49 U.S.C. ' 10922(l)(1) and (2) 49 U.S.C. ' 10530(3)

49 U.S.C. '' 10329, 10330 and 11705

19 U.S.C. ' 1202

49 C.F.R. ' 1044

Memorandum of Understanding Between the United States of America and the United Mexican States on Facilitation of Charter/Tour Bus Service, December 3, 1990

As qualified by paragraph 2 of the Description element

Description: Cross-Border Services

Investment

Phase-Out: Cross-Border Services

A person of Mexico will be permitted to obtain operating authority to provide:

Investment

A person of Mexico will be permitted to establish an enterprise in the United States to provide:

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.


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

Measures: 19 U.S.C. ' 1641(b)

Description: Cross-Border Services and Investment

A customs broker's license is required to conduct customs business on behalf of another person. Only U.S. citizens may obtain such a license. A corporation, association or partnership established under the law 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.

Phase-Out: None. Subject to discussion by the Parties five years after the date of entry into force.


Sector: All Sectors

Sub-Sector:

Industry Classification:

Type of Reservation: National Treatment (Article 1102)

Most-Favored-Nation Treatment (Article 1103)

Level of Government: Federal

Measures: Securities Act of 1933, 15 U.S.C. '' 77C(b), 77f, 77g, 77h, 77j and 77s(a)

17 C.F.R. '' 230.251 and 230.405

Securities Exchange Act of 1934, 15 U.S.C. '' 78l, 78m, 78o(d) and 78w(a)

17 C.F.R. ' 240.12b-2

Description: Investment

Foreign firms, except for certain Canadian issuers, may not use the small business registration forms under the Securities Act of 1933 to register securities that the firms issue or qualify to use the less costly standards under the rules.

Phase-Out: None


Sector: Waste Management

Sub-Sector:

Industry Classification:  SIC 4952 Sewerage System

Type of Reservation: Performance Requirements (Article 1106)

Level of Government: Federal

Measures: 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, for example, if the cost of the articles in question is unreasonable (33 U.S.C. ' 1295).

Phase-Out: None

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