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Canada-Peru Free Trade Agreement

Annex II - Reservations for Future Measures

1. The Schedule of a Party sets out, pursuant to Articles 808 (Investment – Reservations and Exceptions) and 908 (Cross-Border Trade in Services – Non- Conforming Measures), the reservations taken by that Party with respect to specific sectors, sub-sectors or activities for which it may maintain existing, or adopt new or more restrictive measures that do not conform with obligations imposed by:

• a. Article 803 (Investment – National Treatment), 903 (Cross-Border Trade in Services - National Treatment);
• b. Article 804 (Investment - Most-Favoured-Nation Treatment), 904 (Cross-Border Trade in Services - Most-Favoured-Nation Treatment);
• c. Article 907 (Cross-Border Trade in Services - Local Presence);
• d. Article 807 (Investment - Performance Requirements);
• e. Article 806 (Investment - Senior Management and Boards of Directors); or
• f. Article 906 (Cross-Border Trade in Services - Market Access).

2. Each reservation sets out the following elements:

• a. Sector refers to the general sector in which the reservation is taken;
• b. Sub-Sector refers to the specific sector in which the reservation is taken;
• c. Industry Classification refers, where applicable, to the activity covered by the reservation according to domestic industry classification codes;
• d. Type of Reservation specifies the obligation referred to in paragraph 1 for which a reservation is taken;
• e. Description sets out the scope of the sector, sub-sector or activities covered by the reservation;
• f. Existing Measures identifies, for transparency purposes, existing measures that apply to the sector, sub-sector or activities covered by the reservation.

3. In the interpretation of a reservation, all elements of the reservation, with the exception of Industry Classification, shall be considered. The Description element shall prevail over all other elements.

4. For purposes of this Annex:

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; and

SIC means Standard Industrial Classification (SIC) numbers as set out in Statistics Canada, Standard Industrial Classification, fourth edition, 1980.