ANNEX I Schedule of Mexico SECTOR: All sectors SUB-SECTOR: All sub-sectors INDUSTRY CLASSIFICATION: Not applicable TYPE OF RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Constituci¢n Pol¡tica de los Estados Unidos Mexicanos (United Mexican States Political Constitution). T¡tulo I Cap¡tulo I. Ley de Nacionalidad y Naturalizaci¢n (Nationality and Naturalization Law). Cap¡tulo VI (Disposiciones generales) Ley Org nica de la Fracci¢n I del Art¡culo 27 de la Constituci¢n (Organic Law of the First Section of Article 27 of the United Mexican States Political Constitution). Ley para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment). Cap¡tulos I y IV (Objeto y Fideicomisos en frontera y litorales) Reglamento de la Ley para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment). T¡tulo III Cap¡tulo I y T¡tulo III Cap¡tulo III. (Inversi¢n extranjera mediante fideicomisos) DESCRIPTION: Investment Foreigners and foreign enterprises, as defined in the Constituci¢n Pol¡tica de los Estados Unidos Mexicanos; and Mexican enterprises without a foreigners' exclusion clause may not acquire "direct dominion" (dominio directo) over land and water in a 100 kilometers strip along the country's borders or in a 50 kilometers strip inland from its coasts (the Restricted Zone). Nevertheless, foreigners, foreign enterprises and Mexican enterprises may acquire "Certificados de Participaci¢n Ordinaria" (CPO's). Such CPO's grant to the beneficiaries the right to use and enjoy the real estate and to receive the profits that it may obtain from the profitable use of the property. The CPO's are issued by a Mexican credit institution that has been granted authorization to acquire through trust the title to real estate intended for industrial and tourist activities in the Restricted Zone for a period not to exceed 30 years. The trust is renewable if: (a) The beneficiaries of the trust which is to be extinguished or terminated will be beneficiaries of the new trust; (b) the new trust is to be executed under the same terms and conditions as the trust which is to be extinguished or terminated, in respect of the purposes of the trust, the use of real estate and its characteristics; (c) the respective permits are requested within a period of 360 to 181 days prior to the trust be extinguished or terminated; and (d) the provisions of the Ley para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera and its regulations are observed. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: All sectors SUB-SECTOR: All sub-sectors INDUSTRY CLASSIFICATION: Not applicable TYPE OF RESERVATION: National Treatment (Article 1102) LEGAL CITATION: Ley Para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment). Reglamento de la Ley Para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment). DESCRIPTION: Investment The Comisi¢n Nacional de Inversiones Extranjeras in order to evaluate the applications submitted to its consideration (acquisitions or establishment of investments in restricted activities as set out in this Schedule), shall take into account the following criteria: (a) Its effects on employment and training; (b) Its technological contribution; (c) In general its contribution to increase the Mexican industrial production and competitiveness. The Comisi¢n Nacional de Inversiones Extranjeras may impose performance requirements which are not prohibited by Article 1106 of the Investment Chapter. DURATION: Description shall govern upon entry into force of this Agreement. ============================================================================= ANNEX I Schedule of Mexico SECTOR: All sectors SUB-SECTOR: All sub-sectors INDUSTRY CLASSIFICATION: Not applicable TYPE OF RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment). Reglamento de la Ley Para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment). DESCRIPTION: Investment Mexico will review the acquisition, whether directly or indirectly, of more than 49% of the ownership interest of a Mexican enterprise in an unrestricted sector, that is owned or controlled by Mexican nationals, directly or indirectly, by an investor of another Party if the value of the gross assets of the Mexican enterprise is not less than the applicable thresholds, effective on the date of entry into force of this Agreement and adjusted on each anniversary thereof. The calculation of the applicable review thresholds is set out in the following section below. DURATION: Description shall govern upon entry into force of this Agreement. The basis for calculating the threshold will be: (a) USD 25 million, for the three year period commencing on the date of entry into force of this Agreement; (b) USD 50 million, for the three year period commencing on the fourth year after the date of entry into force of this Agreement; (c) USD 75 million, for the three year period commencing on the seventh year after the entry into force of this Agreement; (d) USD 150 million, for the tenth year after entry into force of this Agreement. Beginning with the Agreement's second year these thresholds shall be adjusted for cumulative inflation based on the US GDP price deflator from the date of entry into force of this Agreement. Beginning with year eleven after entry into force of this Agreement, the threshold will be adjusted for growth in nominal Mexican GDP--but in no case will the threshold to be applied exceed that of Canada. ============================================================================= ANNEX I Schedule of Mexico SECTOR: All sectors SUB-SECTOR: All sub-sectors INDUSTRY CLASSIFICATION: Not applicable TYPE OF RESERVATION: National Treatment (Article 1102) Senior Management (Article 1107) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Constituci¢n Pol¡tica de los Estados Unidos Mexicanos (United Mexican States Political Constitution). Ley General de Sociedades Cooperativas (General Law of Cooperative Companies). T¡tulo I Cap¡tulo I y T¡tulo II Cap¡tulo II DESCRIPTION: Investment No more than 10 percent of the persons participating in a Mexican Cooperative Production enterprise may be foreigners. Foreigners cannot engage in general administrative functions. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: All sectors SUB-SECTOR: All sub-sectors INDUSTRY CLASSIFICATION: Not applicable TYPE OF RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Federal para el Fomento de la Microindustria (Law to Promote the Microindustry). DESCRIPTION: Investment Only Mexican nationals and Mexican enterprises with foreigners' exclusion clause may qualify as microindustry enterprises. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Agriculture, Livestock, Forestry, and Lumber Activities SUB-SECTOR: Agriculture, Livestock or Forestry INDUSTRY CLASSIFICATION: CMAP 1111 Agriculture CMAP 1112 Livestock CMAP 120011 Forestry CMAP 120012 Exploitation of Forest Nurseries CMAP 120030 Collection of Forest Products CMAP 120040 Falling Trees TYPE OF RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Constituci¢n Pol¡tica de los Estados Unidos Mexicanos (United Mexican States Political Constitution). Ley Agraria (Agrarian Law). T¡tulo VI, DESCRIPTION: Investment All enterprises constituted in Mexico which own land for agriculture, livestock or forestry purposes, must issue a special type of shares ("T" shares) which represent the value of the aforementioned land at the time of its acquisition. Investors of another Party and their investments may own up to 49 percent of such "T" shares. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Communications SUB-SECTOR: Entertainment Services (Broadcasting and Multipoint Distribution Systems, (MDS), and Cable Television) INDUSTRY CLASSIFICATION: CMAP 941104 Private Production and Transmission of Radio Programs (Limited to Production and Transmission of Radio Programs, MDS and uninterrupted music) CMAP 941105 Private Services of Production, Transmission and Repetition of Television Programming (Limited to Production, Transmission and Repetition of Television Programs, MDS, Direct Broadcasting Systems, and High Definition Television and Cable Television) TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Federal de Radio y Televisi¢n (Radio and Television Federal Law), T¡tulo IV (Funcionamiento), Cap¡tulo III (Programaci¢n) Reglamento de la Ley Federal de Radio y Televisi¢n y de la Ley de la Industria Cinematogr fica relativo al contenido de las transmisiones de Radio y Televisi¢n (Regulations of the Radio and Television Federal Law and Motion Picture Industry Law relating to Radio o Television Content), T¡tulo III (Programaci¢n) Reglamento del Servicio de Televisi¢n por Cable, (Cable Television Regulations) Cap¡tulo VI (Programaci¢n) DESCRIPTION: Cross-Border Services For the protection of copyrights a holder of a concession for a commercial broadcast station or for a cable television system in Mexico is required to obtain an authorization from the Secretar¡a de Gobernaci¢n to import in any form radio or television programming for broadcast or cable distribution of such programming within Mexico. The authorization will be granted if the request includes documentation showing that the foreign government, sponsoring international organization, or the private entrepreneur or organizer has granted the license ("derechos") to retransmit or distribute by cable such program. ============================================================================= ANNEX I Schedule of Mexico SECTOR: Communications SUB-SECTOR: Entertainment Services (Cable Television) INDUSTRY CLASSIFICATION: CMAP 941105 Private Services of Production, Transmission and Retransmission of Television Programming (Limited to cable television) TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Constituci¢n Pol¡tica de los Estados Unidos Mexicanos(United Mexican States Political Constitution), Article 32 Ley de V¡as Generales de Comunicaci¢n (General Means of Communication Law), Libro I Cap¡tulo III (Concesiones, Permisos y Contratos) Ley Federal de Radio y Televisi¢n (Radio and Television Federal Law), T¡tulo III, (Concesiones, Permisos e Instalaciones) Ley para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment) Reglamento del Servicio de Televisi¢n por Cable (Cable Television Regulations), Cap¡tulo II (Concesiones) Reglamento de la Ley para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment) DESCRIPTION: Cross-Border Services 1. A concession granted by the Secretar¡a de Comunicaciones y Transportes is required to construct and operate, or to operate, cable television systems. Such concession is granted only to Mexican nationals or Mexican enterprises. Investment: 2. Investors of another Party and their investments may own, directly or indirectly, up to 49 percent of an enterprise established or to be established in Mexico which owns or operates a cable television systems or provides cable television services. DURATION: Cross-Border Services Indeterminate. Investment Paragraph 2 of the description shall govern upon entry into force of this Agreement; subject to discussion by the Parties five years after the entry into force of this Agreement. ============================================================================= ANNEX I Schedule of Mexico SECTOR: Communications SUB-SECTOR: Entertainment Services INDUSTRY CLASSIFICATION: CMAP 941103 Private Exhibition of Films (cinema) TYPE OF RESERVATION: National Treatment (Article 1202) Performance Requirements (Article 1106) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley de la Industria Cinematogr fica (Motion Picture Industry Law) Reglamento de la Ley de la Industria Cinematogr fica (Regulations of the Motion Picture Industry) DESCRIPTION: Cross-Border Services and Investment On an annual basis, 30 percent of the screen time of every theater may be reserved for films produced, either within or outside Mexico, by Mexican enterprises. DURATION: The description shall govern upon entry into force of this Agreement. Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Communications SUB-SECTOR: Entertainment Services (Broadcasting, Multipoint Distribution Systems (MDS), and Cable Television) INDUSTRY CLASSIFICATION: CMAP 941104 Private Production and Transmission of Radio Programs (Limited to Production and Transmission of Radio Programs, MDS and uninterrupted music) CMAP 941105 Private Services of Production, Transmission and Retransmission of Television Programming (Limited to Production, Transmission and Retransmission of Television Programs, MDS, Direct Broadcasting Systems, High-Definition Television and Cable Television) TYPE OF RESERVATION: National Treatment (Article 1202) Performance Requirement (Article 1106) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Federal de Radio y Televisi¢n, (Radio and Television Federal Law), T¡tulo IV (Funcionamiento), Cap¡tulo III (Programaci¢n) Reglamento de la Ley Federal de Radio y Televisi¢n y de la Ley de la Industria Cinematogr fica relativo al contenido de las transmisiones de Radio y Televisi¢n (Regulation of Radio and Television Federal Law and Regulations of the Motion Picture Industry Law relating to Broadcasting Content), T¡tulo III (Programaci¢n) Reglamento del Servicio de Televisi¢n por Cable (Cable Television Regulations), Cap¡tulo VI (Programaci¢n) DESCRIPTION: Cross-Border Services and Investment The use of the Spanish language is required for the broadcast, cable or multipoint-distribution-system distribution of radio or television programming, except when the Secretar¡a de Gobernaci¢n authorizes the use of another language. A majority of personnel involved in the production and performance of a live broadcast programming activity must be Mexican nationals. To perform in Mexico, a radio and television announcer or presentor who is not a Mexican national must obtain an authorization from the Secretar¡a de Gobernaci¢n. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Communications SUB-SECTOR: Entertainment Services (Broadcasting, and Multipoint Distribution Systems and Cable Television) INDUSTRY CLASSIFICATION: CMAP 941105 Private Services of Production, Transmission and Retransmission of Television Programming (Limited to Broadcasting, Cable Television and Multipoint Distribution Systems) TYPE OF RESERVATION: National Treatment (Article 1202) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Federal de Radio y Televisi¢n, (Radio and Television Federal Law), T¡tulo IV (Funcionamiento), Cap¡tulo III (Programaci¢n) Reglamento de la Ley Federal de Radio y Televisi¢n y de la Ley de la Industria Cinematogr fica relativo al contenido de las transmisiones de Radio y Televisi¢n (Regulations of the Radio and Television Federal Law and Regulation of the Motion Picture Industry Law relating to Broadcasting Content), T¡tulo III (Programaci¢n) Reglamento del Servicio de Televisi¢n por Cable, (Cable Television Regulations), Cap¡tulo VI (Programaci¢n) DESCRIPTION: Cross-Border Services and Investment The use of the Spanish language or Spanish subtitles is required for advertising broadcast or distributed in Mexico. Advertising included in programs transmitted directly from outside Mexico may not be broadcast in such programs when they are retransmitted or distributed in Mexico DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Communications SUB-SECTOR: Telecommunications (Enhanced or Value-Added Services) INDUSTRY CLASSIFICATION: CMAP 720006 Other Telecomunications Services (Limited to Enhanced or Value-Added Services) TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley de V¡as Generales de Comunicaci¢n (General Means of Communication Law), Libro Primero, Cap¡tulo III (Concesiones, Permisos y Contratos) Reglamento de Telecomunicaciones (Telecommunications Regulations), Cap¡tulo 4, (Permisos) Ley para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment) Reglamento de la Ley para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment) DESCRIPTION: Cross-border Services 1. A provider of enhanced or value-added services must obtain a permit issued by the Secretar¡a de Comunicaciones y Transportes. 2. Persons of Canada or the United States may provide all enhanced or value-added services, except videotext or enhanced packet switching services, without the need to establish local presence. 3. Videotext and enhanced packet switching services may not be provided on a cross-border basis. Investment 1. Investors of another Party and their investments may own 100 percent of an enterprise established or to be established in Mexico that provides any telecommunication enhanced or value-added service, other than videotext or enhanced packet switching services. 2. Investors of another Party and their investments may own, directly or indirectly, up to 49 percent of an enterprise established or to be established in Mexico that provides videotext or enhanced packet switching services. DURATION: Cross-border Services Paragraphs 2 and 3 of the description shall govern upon entry into force of this Agreement. Commencing July 1, 1995, a person of Canada or the United States may provide videotext or enhanced packet switching services without the need to establish a local presence in Mexico. Investment Paragraph 1 of the description shall govern upon entry into force of this Agreement. Commencing July 1, 1995, investors of another Party and their investments may own 100 percent of an enterprise established or to be established in Mexico that provides videotext or enhanced packet switching services. ============================================================================= ANNEX I Schedule of Mexico SECTOR: Communications SUB-SECTOR: Transport Telecommunications General Means of Communication INDUSTRY CLASSIFICATION: CMAP 7200 Communications CMAP 7100 Transport CMAP 9411 Radio and Television TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley de V¡as Generales de Comunicaci¢n (General Means of Communication Law) Ley Federal de Radio y Televisi¢n, (Radio and Television Federal Law) Reglamento del Servicio de Televisi¢n por Cable (Cable Television Regulations) Reglamento de Telecomunicaciones (Telecommunications Regulations) DESCRIPTION: Investment Foreign Governments and Foreign state enterprises or their investments may not invest, directly or indirectly, in a Mexican enterprise providing services related to the general means of communication set out herein. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Construction SUB-SECTOR: INDUSTRY CLASSIFICATION: CMAP 501101 Residential or Housing Construction CMAP 501102 Non-residential Construction CMAP 501200 Construction of Urbanization Projects CMAP 501311 Construction of Industrial Plants CMAP 501312 Construction of Electricity Generation Plants CMAP 501321 Construction and Maintenance of Electricity Conduction Lines and Networks CMAP 501411 Mounting or Installing Concrete Structures CMAP 501412 Mounting or Installing Metallic Structures CMAP 501421 Marine and River Works CMAP 501422 Construction of Routes for Land Transportation CMAP 502001 Hydraulic and Sanitation Installations in Buildings CMAP 502002 Electrical Installations in Buildings CMAP 502003 Telecommunications Installations CMAP 502004 Other Special Installations CMAP 503001 Earth Movement CMAP 503002 Cement Works CMAP 503003 Underground Excavations CMAP 503004 Underwater Works CMAP 503005 Installation of Signs and Warnings CMAP 503006 Demolition CMAP 503007 Construction of Water Purification or Treatment Plants CMAP 503009 Drilling Water Wells CMAP 503010 Construction Activities not Elsewhere Classified TYPE OF RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment), Cap¡tulos II y III Reglamento de la Ley para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment). DESCRIPTION: Investment Prior approval of the Comisi¢n Nacional de Inversiones Extranjeras is required for investors of another Party or their investments to own, directly or indirectly, more than 49 percent of the ownership interests of an enterprise established or to be established in Mexico that carry out construction activities as set out in the classification mentioned above. DURATION: Five years after the entry into force of this Agreement, investors of another Party and their investments may own 100 percent of the ownership interests of such enterprises without Comisi¢n Nacional de Inversiones Extranjeras' prior approval. ============================================================================= ANNEX I Schedule of Mexico SECTOR: Construction SUB-SECTOR: Not applicable INDUSTRY CLASSIFICATION: CMAP 503008 Exploration and drilling works and services done by specialized contractors excluding the case when these same works and services are done by personnel of PEMEX in the activities classified under industrial classification 220000. TYPE OF RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Constituci¢n Pol¡tica de los Estados Unidos Mexicanos (United Mexican States Political Constitution), T¡tulo I Cap¡tulo I. Ley Reglamentaria del Art¡culo 27 Constitucional en el Ramo del Petr¢leo (Regulatory Law of Article 27 of the United Mexican States Political Constitution in matters related with Petroleum) Ley para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment) Cap¡tulo I Reglamento de la Ley para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment) DESCRIPTION: Investment Risk-sharing services contracts are prohibited. Prior approval of the Comisi¢n Nacional de Inversiones Extranjeras is required for investors of another Party and their investments to own, directly or indirectly, more than 49 percent of the ownership interests of an enterprise established or to be established in Mexico involved in "non-risk sharing" service contracts for the drilling of petroleum and gas wells. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Educational Services SUB-SECTOR: Private Schools INDUSTRY CLASSIFICATION: CMAP 921101 Preschool Private Educational Services CMAP 921102 Primary School Private Educational Services CMAP 921103 Secondary School Private Educational Services CMAP 921104 Middle High School Private Educational Services CMAP 921105 Higher Private Educational Services CMAP 921106 Private Educational Services that Combine Preschool, Primary, Secondary, Middle High and Higher Instruction TYPE OF RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment) Reglamento de la Ley para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment) Ley Para la Coordinaci¢n de la Educaci¢n Superior (Law for the Coordination of the Higher Education), Cap¡tulo II Ley Federal de Educaci¢n (Education Law), Cap¡tulo III DESCRIPTION: Investment Prior approval of the Comisi¢n Nacional de Inversiones Extranjeras is required for investors of another Party or their investments to own, directly or indirectly, more than 49 percent of the ownership interests of an enterprise established or to be established in Mexico that operates educational services as set out in the classification mentioned above. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Energy SUB-SECTOR: Commercialization of Petroleum Products INDUSTRY CLASSIFICATION: CMAP 623050 Retail Sales of Gas of liquified petroleum gas (LPG), including the installation of fixed deposits when the facilities are built by the same establishment. TYPE OF RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Reglamentaria del Art¡culo 27 Constitucional en el Ramo del Petr¢leo (Regulatory Law of Article 27 of the United Mexican States Political Constitution related to Oil). Ley para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment). Cap¡tulo I Reglamento de la Ley Reglamentaria del Art¡culo 27 Constitucional en el Ramo de Petr¢leo (Reglamentation of the Regulatory Law of Article 27 of the United Mexican States Political Constitution related to Oil) Reglamento de la Distribuci¢n de Gas.(Regulations of the Distribution of LPG). Cap¡tulos I y II (Autorizaciones y permisos) Reglamento de la Ley para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment). DESCRIPTION: Investment Only Mexican nationals and Mexican enterprises with foreigners' exclusion clause may engage in the distribution of liquified Petroleum gas. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Energy SUB-SECTOR: Commercialization of Petroleum Products INDUSTRY CLASSIFICATION: CMAP 6260000 Retail Outlets of Gasoline and Diesel. Includes Lubricants, Oils and Additives for Resale in these Retail Outlets. TYPE OF RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Reglamentaria del Art¡culo 27 Constitucional en el Ramo del Petr¢leo (Regulatory Law of Article 27 of the United Mexican States Political Constitution related to Oil) Reglamento de la Ley Reglamentaria del Art¡culo 27 Constitucional en el Ramo del Petr¢leo (Reglamentation of the Regulatory Law of Article 27 of the United Mexican States Political Constitution related to Oil). DESCRIPTION: Only Mexican nationals and Mexican enterprises with foreigners' exclusion clause may acquire, establish and operate retail outlets engaged in the resale of gasoline, diesel, lubricants, oils and additives. DURATION: The description shall govern upon entry into force of this Agreement ============================================================================= ANNEX I Schedule of Mexico SECTOR: Fishing SUBÄSECTOR: Fishing INDUSTRY CLASSIFICATION: CMAP 130011 Fishing on the High Seas CMAP 130012 Coastal Fishing CMAP 130013 Fresh Water Fishing CMAP 130014 Fishing in the Economic Exclusive Zone TYPE OF RESERVATION: National Treatment (Article 1102) Most-Favored-Nation Treatment (Article 1103) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley de Pesca (Fishing Law) Cap¡tulo I. Ley de Navegaci¢n y Comercio Mar¡timo (Navigation and Maritime Commerce Law), Libro II T¡tulo Unico Cap¡tulo V Ley Federal del Mar (Federal Sea Law) Ley Federal de Aguas (Federal Law of Water) Ley para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment). Reglamento de la Ley para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment). DESCRIPTION: Investment With respect to enterprises established or to be established in Mexico performing coastal fishing, fresh water fishing and fishing in the exclusive economic zone, investors of another Party and their investments may own, directly or indirectly, up to 49 percent of the ownership interest of such enterprises. With respect to enterprises established or to be established in Mexico performing fishing on the high seas, prior approval of the Comision Nacional de Inversiones Extranjeras is required for investors of another Party or their investments to own, directly or indirectly, more than 49 percent of the ownership interests of enterprises established or to be established in Mexico performing fishing on the high seas. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Manufacturing and Assembly of Goods SUB-SECTOR: Auto Parts Industry INDUSTRY CLASSIFICATION: CMAP 383103 Manufacturing of Parts and Accessories for Electrical Automotive Systems CMAP 384121 Manufacture and Assembly of Car and Truck Bodies and Tows CMAP 384122 Manufacture of Car and Trucks Motors and Their Parts CMAP 384123 Manufacture of Car and Truck Transmission System Parts CMAP 384124 Manufacture of Car and Truck Suspension System Parts CMAP 384125 Manufacture of Car and Truck Brake System Parts and Accessories CMAP 384126 Manufacture of Other Car and Truck Parts and Accessories TYPE OF RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Annex 300-A (Trade and Investment in the Automotive Industry Sector) of this Agreement. Ley Para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment). Reglamento de la Ley Para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment). Decreto para el fomento y modernizaci¢n de la Industria Automotriz (Decree for the Development and Modernization of the Automotive Industry) ("Auto Decree"). Decreto que Determina Reglas para la Aplicaci¢n del Decreto para el Fomento y Modernizaci¢n de la Industria Automotriz (Resolution that Establishes Rules for the Implementation of the Auto Decree) ("Auto Decree Implementing Regulations"). DESCRIPTION: Investors of another Party and their investments may own, directly or indirectly, up to 49 percent of the ownwership interests of an enterprise established or to be established in Mexico and engaged in the auto parts industry. Investors of another Party and their investments that qualify as "national suppliers" may own 100% of an enterprise established or to be established in Mexico engaged in the manufactured of specified auto parts. To qualify as "national supplier", the enterprise must: (a) obtain a national value added calculated as set out in the "Auto Decree Implementing Regulations" of at least 20%; and (b) not be controlled or related, directly or indirectly, to a manufacturer of motor vehicles. DURATION: Annex 300-A (Trade and Investment in the Automotive Sectors) of Chapter Three (National Treatment and Market Access) shall govern. Commencing on the sixth year after the entry into force of this Agreement, investors of another Party and their investments may own 100 percent of the ownership interests of an enterprise established or to be established in Mexico engaged in auto parts industry. (See also page I-M-39 of this Schedule - performance requirements) ============================================================================= ANNEX I Schedule of Mexico SECTOR: Manufacture of Goods SUB-SECTOR: Automotive Industry INDUSTRY CLASSIFICATION: CMAP 383103 Manufacturing of Parts and Accessories for Electrical Automotive Systems CMAP 3841 Automotive Industry. CMAP 384121 Manufacture and Assembly of Car and Truck Bodies and Tows CMAP 384122 Manufacture of Car and Trucks Motors and Their Parts CMAP 384123 Manufacture of Car and Truck Transmission System Parts CMAP 384124 Manufacture of Car and Truck Suspension System Parts CMAP 384125 Manufacture of Car and Truck Brake System Parts and Accessories CMAP 384126 Manufacture of Other Car and Truck Parts and Accessories TYPE OF RESERVATION: Performance Requirements (Article 1106) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Annex 300-A (Trade and Investment in the Automotive Sector) of Chapter Three (Market Access) of this Agreement Decreto para el fomento y modernizaci¢n de la Industria Automotriz (Decree for the Development and Modernization of the Automotive Industry) ("Auto Decree") Decreto que Determina Reglas para la Aplicaci¢n del Decreto para el Fomento y Modernizaci¢n de la Industria Automotriz (Resolution that Establishes Rules for the Implementation of the Auto Decree) ("Auto Decree Implementing Regulations") DESCRIPTION: Investment Annex 300-A (Trade and Investment in the Automotive Sector) of Chapter Three (Market Access) shall govern. A summary of performance requirements in the automotive industry follows: (a) National value added shall constitute at least 20% of the total value of sales of an enterprise of the autoparts industry or of a "National Supplier". In calculating the national value added, custom duties shall be included in the value of imports. (b) A manufacturer of motor vehicles must attain specified levels of national value added from suppliers of Mexican parts (enterprises of the autoparts industry and national suppliers) and must comply with specified trade balance requirements in order to receive permits for the importation of new motor vehicles. (c) Manufacturers of autotransportation vehicles may only import the types of autotransportation vehicles it produces in Mexico and in a quantity not exceed 50% of the number of such vehicles it produces in Mexico in a year. DURATION: Annex 300-A (Trade and Investment in the Automotive Sector) of Chapter Three (Market Access) shall govern upon entry into force of this Agreement Commencing on the sixth year after entry into force of this Agreement Mexico will eliminate restrictions on the number of an autotransportation vehicles that a manufacture autotransportation vehicles may import. Commencing on the eleventh year after the entry into force of this Agreement, Mexico will eliminate all performance requirements in the Auto Decree and the "Auto Decree Implementing Regulations". ============================================================================= ANNEX I Schedule of Mexico SECTOR: Manufacture of Goods SUB-SECTOR: Maquiladora Industry INDUSTRY CLASSIFICATION: Not applicable TYPE OF RESERVATION: Performance Requirements (Article 1106) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Aduanera (Customs Law) Decreto para el Fomento y Operaci¢n de la Industria Maquiladora de Exportaci¢n (Decree for the Promotion and Operation of Maquiladora Industry for Export) DESCRIPTION: Investment Persons authorized by the Secretar¡a de Comercio y Fomento Industrial to operate under the "Maquiladora Decree" may not sell to the domestic market more than 50% of the total value of its exports. DURATION: Domestic market may not exceed: (a) during the first year of entry into force of this Agreement, 55% of the total value of its exports; (b) during the second year after the date of entry into force of this Agreement, 60% of the total value of its exports; (c) during the third year after the date of entry into force of this Agreement, 65% of the total value of its exports; (d) during the fourth year after the date of entry into force of this Agreement, 70% of the total value of its exports; (e) during the fifth year after the date of entry into force of this Agreement, 75% of the total value of its exports; (f) during the sixth year after the date of entry into force of this Agreement, 80% of the total value of its exports; (g) during the seventh year after the date of entry into force of this Agreement, 85% of the total value of its exports; (h) from the eighth year after the date of entry into force of this Agreement and thereafter, persons may not be subject to this requirement. ============================================================================= ANNEX I Schedule of Mexico SECTOR: Manufacture of Goods SUB-SECTOR: Not applicable INDUSTRY CLASSIFICATION: Not applicable TYPE OF RESERVATION: Performance Requirements (Article 1106) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Reglamentaria del Art¡culo 131 de la Constituci¢n Pol¡tica de los Estados Unidos Mexicanos en Materia de Comercio Exterior (Mexican Foreign Trade Act) Decreto para el Fomento y Operaci¢n de las Empresas Altamente Exportadoras" (Decree for the Promotion and Operation of High-Export Firms) DESCRIPTION: Investment 1. "Direct exporters" authorized by the Secretar¡a de Comercio y Fomento Industrial to operate under the "ALTEX Decree" must export at least 40% of their total sales or $2,000,000. U.S. dollars. 2. "Indirect exporters" authorized by the Secretar¡a de Comercio y Fomento Industrial to operate under the "ALTEX Decree" must export at least 50% of their total sales. DURATION: Seven years after the entry into force of this Agreement, direct and indirect exporters will not be subject to the above mencioned percentage. ============================================================================= ANNEX I Schedule of Mexico SECTOR: Manufacture of Goods SUB-SECTOR: Not applicable INDUSTRY CLASSIFICATION: Not applicable TYPE OF RESERVATION: Performance Requirements (Article 1106) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Reglamentaria del Art¡culo 131 de la Constituci¢n Pol¡tica de los Estados Unidos Mexicanos en Materia de Comercio Exterior (Mexican Foreign Trade Act). Ley Aduanera (Customs Law). Programa de Importaci¢n Temporal para Producir Art¡culos de Exportaci¢n (Temporal Import Program to Produce Export Goods). DESCRIPTION: Investment Persons authorized by Secretar¡a de Comercio y Fomento Industrial to operate under the "PITEX Decree" are required to: (a) export at least 30% of their total production for the temporary entry of machinery, equipment, instruments, molds and durable tools used in the manufacturing process; equipment used to handle materials directly related to exported such goods; and research, industrial security, quality control, communication, training personnel, computer and environmental devices, equipment and accessories or others related with the process of the goods exported. (b) export at least 10% of their total production or $500,000 U.S.dollars for the temporary import of raw materials, parts and components totally used as inputs on the export merchandise, packages, bottles, containers and trailer's containers which are fully used to contain export merchandise; fuel, lubricants, auxiliary materials, reparation of tools and equipment consumed in the export process. DURATION: As from the eighth year after the date of entry into force of this Agreement such persons will not be subject to the above mentioned percentages. ============================================================================= ANNEX I Schedule of Mexico SECTOR: Manufacturing Industry SUB-SECTOR: Artificial explosives, fireworks, firearms and cartridges INDUSTRY CLASSIFICATION: CMAP 352236 Manufacturing of Artificial Explosives and Fireworks CMAP 382208 Manufacturing of Firearms and Cartridges TYPE OF RESERVATION: National Treatment (Article 1102) Senior Management (Article 1107) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Federal de Armas de Fuego y Explosivos (Federal Law of Firearms and Explosives) T¡tulo III Cap¡tulo I Ley para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment) Reglamento de la Ley Federal de Armas de Fuego y Explosivos (Regulations of the Federal Law of Firearms and Explosives) Cap¡tulo IV Reglamento de la Ley para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment) DESCRIPTION: Investment Investors of another Party and their investments may own, directly or indirectly, up to 49 percent of the ownership interest of an enterprise established or to be established in Mexico that manufacture artificial explosives and fireworks, and ammunition as set out in the classification mentioned above. Foreigners cannot appoint directors nor become members of the board of directors of such enterprises. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Mining SUB-SECTOR: Extraction and Exploitation of Minerals INDUSTRY CLASSIFICATION: CMAP 210000 Exploitation of Mineral Carbon CMAP 231000 Extraction of Minerals Containing Iron CMAP 232001 Extraction of Minerals Containing Gold, Silver and Other Precious Minerals and Metals CMAP 232002 Extraction of Mercury and Antimony CMAP 232003 Extraction of Industrial Minerals Containing Lead and Zinc CMAP 232004 Extraction of Minerals Containing Copper CMAP 232006 Extraction of Other Metallic Minerals Not Containing Iron CMAP 291001 Extraction of Sand and Gravel CMAP 291002 Extraction of Marble and other Gravels for construction CMAP 291003 Exploitation of Feldspar CMAP 291004 Extraction of Kaolin, Clay and Refractory Minerals CMAP 291005 Extraction of Limestones CMAP 291006 Exploitation of Gypsum CMAP 292001 Extraction of Barium Oxide CMAP 292002 Extraction of Phosphoric Rock CMAP 292003 Extraction of Fluorite CMAP 292004 Extraction of Sulphur CMAP 292005 Extraction of Other Minerals in Order to Obtain Chemicals CMAP 292006 Extraction of Salt CMAP 292007 Extraction of Graphite CMAP 292008 Extraction of other Non Metallic Minerals TYPE OF RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Minera (Mining Law) Ley Para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment) Reglamento de la Ley Minera (Mining Law Regulations) Reglamento de la Ley Para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment) DESCRIPTION: Investment Prior approval of the Comisi¢n Nacional de Inversiones Extranjeras is required for investors of another Party or their investments to own, directly or indirectly, more than 49 percent of the ownership interests of an enterprise established or to be established in Mexico engaged in the extraction or exploitation of all kind of minerals. DURATION: The description shall govern upon the entry into force of this Agreement. Commencing on the sixth year after the entry into force of this Agreement investors of another Party and their investments may own 100 percent of ownership interests of an enterprise established or to be established in Mexico engaged in such activities. ============================================================================= ANNEX I Schedule of Mexico SECTOR: Printing, Editing and Associated Industries SUB-SECTOR: Newspaper Publishing INDUSTRY CLASSIFICATION: CMAP 342001 Newspaper Publishing TYPE OF RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment) Reglamento de la Ley para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment) DESCRIPTION: Investment Investors of another Party and their investments may own 100 percent of an enterprise established or to be established in Mexico engaged in the simultaneous printing and distribution in Mexico of a daily newspaper that is published outside of Mexico. Investors of another Party and their investments may own, directly or indirectly, up to 49 percent of an enterprise established or to be established in Mexico engaged in the publication of daily newspapers written primarily for a Mexican audience and distributed in Mexico. For purposes of this reservation, daily newspapers are those published at least five days a week. DURATION: The description shall govern upon entry into force of this Agreement. ============================================================================= ANNEX I Schedule of Mexico SECTOR: Professional, Technical and Specialized Services and Other Services Provider by natural persons SUB-SECTOR: Medical Doctors INDUSTRY CLASSIFICATION: CMAP 9231 Private Medical, Odontological and Veterinary Services (limited to medical and odontological services) TYPE OF RESERVATION: National Treatment (Article 1202) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Federal del Trabajo (Federal Labor Law) DESCRIPTION: Cross-Border Services Only Mexican nationals licensed as doctors in Mexico may provide medical in-house services in Mexican enterprises. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Professional, Technical and Specialized Services and Services Provider by natural persons SUB-SECTOR: Specialized Personnel INDUSTRY CLASSIFICATION: CMAP 951012 Custom Brokers and Representation Agency Services (limited to shippers' export declarations) TYPE OF RESERVATION: National Treatment (Article 1202) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Aduanera, (Customs Law) Cap¡tulo Unico, T¡tulo Noveno DESCRIPTION: Cross-Border Services A shipper's export declaration must be processed by a Mexican national licensed as a customs broker (agente aduanal) or by the representative (apoderado aduanal) employed by the exporter and authorized by the Secretar¡a de Hacienda y Cr‚dito P£blico for this purpose. DURATION: Indeterminate; subject to discussion by the Parties five years after the entry into force of this Agreement. ============================================================================= ANNEX I Schedule of Mexico SECTOR: Professional, Technical and Specialized Services and Other Services Provider by natural persons SUB-SECTOR: Professional Services INDUSTRY CLASSIFICATION: CMAP 9510 Professional, Technical and Specialized Services (limited to Professional Services) TYPE OF RESERVATION: National Treatment (Article 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal and State LEGAL CITATION: Ley Reglamentaria del Art¡culo 5o. Constitucional, relativo al ejercicio de las profesiones en el Distrito Federal y sus regulaciones (Regulatory Law of Article 5 of the United Mexican States Political Constitution in relation to Professional Services and its regulations) Cap¡tulo III, Secci¢n Tercera, Cap¡tulos IV y V Equivalent State Laws Ley General de Poblaci¢n (General Population Law) Cap¡tulo III DESCRIPTION: Cross-Border Services Only Mexican nationals may be licensed at the federal level, in the Distrito Federal, and in the States of Baja California Sur, Colima, Chihuahua, Durango, Jalisco, Estado de M‚xico, Morelos, Nayarit, Nuevo Le¢n, Puebla, Quer‚taro, Sonora, Tabasco and Veracruz in professions that require a "c‚dula professional". Only a permanent resident (inmigrado or inmigrante) in Mexico may be granted a waiver of the citizenship requirement by the Supreme Court to be licensed as a professional at the federal level. DURATION: Citizenship and permanent residency requirements are subject to removal within two years after the entry into force of this Agreement in accordance with Article 1210(3). Upon removal of these requirements, a foreign professional will be required to have non-immigrant visitor status and an address in Mexico. With respect to legal services see Mexico's Schedule in Annex II, p. M- 10. ============================================================================= ANNEX I Schedule of Mexico SECTOR: Professional, Technical and Specialized Services and Services Provided by natural persons SUB-SECTOR: Professional Services INDUSTRY CLASSIFICATION: CMAP 951002 Legal Services and Foreign Legal Consultants TYPE OF RESERVATION: National Treatment (Article 1102 and 1202) Most-Favored-Nation Treatment (Articles 1103 and 1203) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal and State LEGAL CITATION: Ley Reglamentaria del Art¡culo 5o. Constitucional, relativo al ejercicio de las profesiones en el Distrito Federal (Regulatory Law of Article 5' of the United Mexican States Political Constitution in relation to Professional Services), Cap¡tulo I, Cap¡tulo III, Secci¢n Tercera Reglamento de la Ley para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment) DESCRIPTION: Cross Border Services and Investment Except as provided for in this reservation, only lawyers licensed in Mexico may have an ownership interest in a law firm established in Mexico. Lawyers licensed in a Canadian province that allows partnerships between lawyers licensed in that province and lawyers licensed in Mexico, will be permitted to form partnerships with lawyers licensed in Mexico. The number of lawyers licensed in Canada serving as partners, and their ownership interest in the partnership, shall not exceed the number of lawyers licensed in Mexico serving as partners, and their ownership interest in the partnership. A lawyer licensed in Canada shall not be allowed to practice or advise on Mexican law. A law firm established in Mexico resulting from the partnership of lawyers licensed in Canada and lawyers licensed in Mexico may hire lawyers licensed in Mexico as employees. Lawyers licensed in Canada will be subject to the regime for foreign legal consultants established in page M-2 of Schedule VI. DURATION: The description shall govern upon entry into force of this Agreement. ============================================================================= ANNEX I Schedule of Mexico SECTOR: Professional, Technical and Specialized Services and Services Provided by natural persons SUB-SECTOR: Professional Services INDUSTRY CLASSIFICATION: CMAP 951003 Accounting and Auditing Services (limited to accounting services) TYPE OF RESERVATION: National Treatment (Article 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: C¢digo Fiscal de la Federaci¢n, (Federal Tax Code), T¡tulo Tercero, Cap¡tulo Unico Reglamento del C¢digo Fiscal de la Federaci¢n, (Regulations of the Federal Tax Code) Reglamento de la Ley Para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment) DESCRIPTION: Cross-Border Services Only Mexican nationals who are licensed as accountants in Mexico are authorized to perform audits for tax purposes on behalf of the following: (a) state enterprises, (b) enterprises that are authorized to receive tax-deductible donations, (c) enterprises with income, capital stock, number of employees, and operations above levels specified annually by the Secretar¡a de Hacienda y Cr‚dito P£blico, or (d) enterprises undergoing a merger or divestiture. DURATION: Citizenship and permanent residency requirements are subject to removal within two years after the entry into force of this Agreement in accordance with Article 1210(3). Upon removal of these requirements, a foreign professional will be required to have non-immigrant visitor status and an address in Mexico. ============================================================================= ANNEX I Schedule of Mexico SECTOR: Professional, Technical and Specialized Services and Services Provided by natural persons SUB-SECTOR: Specialized Services INDUSTRY CLASSIFICATION: CMAP 951001 Notary Public (limited to Corredores P£blicos) TYPE OF RESERVATION: National Treatment (Articles 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal and State LEGAL CITATION: C¢digo de Comercio (Commerce Code), Libro Primero, T¡tulo Tercero Reglamento de la Ley para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment) Ley para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment) DESCRIPTION: Cross-Border Services 1. Only a Mexican by birth may be licensed to be a commercial notary public. 2. A commercial notary public may not have any business affiliations with any person to provide commercial notary public services. DURATION: 1. Citizenship and permanent residency requirements are subject to removal within two years after the entry into force of this Agreement in accordance with Article 1210(3). Upon removal of these requirements, a foreign professional will be required to have non-immigrant visitor status and an address in Mexico. 2. Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Professional, Technical and Specialized Services and Services Provided by Natural Persons SUB-SECTOR: Specialized Services INDUSTRY CLASSIFICATION: CMAP 951001 Notary Public TYPE OF RESERVATION: National Treatment (Article 1102, 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal and State LEGAL CITATION: Ley del Notariado del Distrito Federal (Notary Law of the Federal District, and its equivalents at state laws) Ley para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment) Reglamento de la Ley para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment) DESCRIPTION: Cross-Border Services and Investment Only Mexicans by birth may be licensed to be notaries public. A notary public may not have any business affiliations with any person to provide notary public services. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Professional, Technical and Specialized Services and Services Provided by Natural Persons SUB-SECTOR: Specialized Services INDUSTRY CLASSIFICATION: CMAP 923121 Private Veterinary Services to Cattle TYPE OF RESERVATION: National Treatment (Article 1202) LEVEL OF GOVERNMENT: Federal, State and Local LEGAL CITATION: Reglamento de Control de Productos Qu¡mico-Farmac‚uticos, Biol¢gicos, Alimenticios, Equipos y Servicios para Animales, (Chemical Products Control Regulations) Cap¡tulos IV y V DESCRIPTION: Cross-Border Services Veterinarians responsible for enterprises managing chemical, pharmaceutical and biological goods for application to animals must be Mexican nationals. A Mexican national who is a licensed professional must be responsible for the laboratories of such enterprises. DURATION: Citizenship and permanent residency requirements are subject to removal within two years after the entry into force of this Agreement in accordance with Article 1210(3). Upon removal of these requirements, a foreign professional will be required to have non-immigrant visitor status and an address in Mexico. ============================================================================= ANNEX I Schedule of Mexico SECTOR: Retail Commerce SUB-SECTOR: Sales of Non-Food Products in Specialized Establishment INDUSTRY CLASSIFICATION: CMAP 623087 Sales of Firearms, Cartridges and Ammunition CMAP 612024 Wholesale Commerce, not elsewhere Classified (limited to a firearms, cartridges and ammunition) TYPE OF RESERVATION: National Treatment (Article 1102) Senior Managment (Article 1107) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Federal de Armas de Fuego y Explosivos (Federal Law of Firearms and Explosives), T¡tulo Tercero, Cap¡tulo I Reglamento de la Ley de Armas de Fuego y Explosivos (Regulation of the Federal Law of Firearms and Explosives), Cap¡tulo IV Ley para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment) Reglamento de la Ley para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment) DESCRIPTION: Investment Investors of another Party and their investments may own, directly and indirectly, up to 49 percent of the ownership interest of an enterprise established or to be established in Mexico that sells firearms, cartridges and ammunition as set out in the classification mentioned above Foreigners cannot appoint or elect members to be directors nor become members of the board of directors of such enterprises. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Religious Services SUB-SECTOR: Not applicable INDUSTRY CLASSIFICATION: CMAP 929001 Religious Services TYPE OF RESERVATION: Senior Management (Article 1107) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley de Asociaciones Religiosas y Culto Privado (Religious Associations Law). T¡tulo II, Cap¡tulo II DESCRIPTION: Investment The representatives of the religious associations in Mexico must be Mexican nationals. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Services to Agriculture and Cattle SUB-SECTOR: Services to Agriculture INDUSTRY CLASSIFICATION: CMAP 971010 Agriculture Services Supply TYPE OF RESERVATION: National Treatment (Article 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Constituci¢n Pol¡tica de los Estados Unidos Mexicanos, (United Mexican States Political Constitution) Article 32 Reglamento de la Ley de Sanidad Fitopecuaria (Regulation of the Phitosanitary Law), Cap¡tulo VII DESCRIPTION: Cross-Border Services A concession granted by the Secretar¡a de Agricultura y Recursos Hidr ulicos is required to spray pesticides. Only Mexican nationals or Mexican enterprises may obtain such concession. DURATION: The requirement of a concession will be replaced with a permit requirement, and the citizenship requirement will be eliminated, in accordance with the schedule of liberalization for specialty air services. ============================================================================= ANNEX I Schedule of Mexico SECTOR: Transportation SUBÄSECTOR: Air Transportation INDUSTRY CLASSIFICATION: CMAP 713001 Transportation Services on Mexican-Registered Aircraft CMAP 713002 Air Taxi Transportation Services TYPE OF RESERVATION: National Treatment (Article 1102) Senior Management (Article 1107) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera(Law to Promote Mexican Investment and to Regulate Foreign Investment), Cap¡tulo I Reglamento de la Ley Para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera(Regulation of the Law to Promote Mexican Investment and to Regulate Foreign Investment) Ley de V¡as Generales de Comunicaci¢n(General Means of Communications Law), Libro Cuarto, Cap¡tulo I-XII DESCRIPTION: Investment Investors of another Party and their investments may own directly or indirectly, up to 25 percent of the voting interest in an enterprise established or to be established in Mexico that provides commercial air services. The chairman and at least two-thirds of the board of directors and two-thirds of managing officers of such enterprises must be Mexican nationals. DURATION: Description shall govern upon entry into force of this Agreement. ============================================================================= ANNEX I Schedule of Mexico SECTOR: Transportation SUBÄSECTOR: Air Transportation INDUSTRY CLASSIFICATION: CMAP 973303 Specialty Air Services TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) Local Presence (Article 1205) Senior Management (Article 1107) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley de V¡as Generales de Comunicaci¢n (General Means of Communication Law), Libro Cuarto, Cap¡tulo XII DESCRIPTION: Cross-Border Services 1. A permit issued by the Secretar¡a de Comunicaciones y Transportes (SCT) is required to provide all specialty air services in the territory of Mexico. 2. Such permit may be issued to a person of Canada and the United States to provide services related to flight training, forest fire-management, fire-fighting, glider towing, and parachute jumping in Mexico, subject to compliance with national safety rules. 3. Such permit may not be issued to a person of Canada or the United States to provide: aerial advertising, aerial sightseeing services, aerial construction, heli-logging, inspection (surveillance), mapping, photography, surveying and aerial spraying services. Investment Investors of another Party and their investments may own, directly or indirectly, up to 25 percent of the voting interest in an enterprise established or to be established in Mexico that provides specialty air services. The chairman and at least two-thirds of the board of directors and two-thirds of managing officers of such enterprises must be Mexican nationals. DURATION: Cross-Border Services Paragraphs 2 and 3 of the description shall govern upon entry into force of this Agreement. A person of Canada or the United States will be issued a permit by SCT to provide, subject to compliance with safety requirements, the following specialty air services: (a) three years after entry into force of the Agreement, aerial advertising, aerial sightseeing services, aerial construction and heli-logging. (b) six years after entry into force of this Agreement, inspection (surveillance), mapping, photography, surveying and aerial spraying services. Investment Description shall govern upon entry into force of this Agreement ============================================================================= ANNEX I Schedule of Mexico SECTOR: Transportation SUBÄSECTOR: Air Transportation INDUSTRY CLASSIFICATION: CMAP 384205 Aircraft Building, Assembly and Repair (limited to aircraft repair) TYPE OF RESERVATION: National Treatment (Article 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Constituci¢n Pol¡tica de los Estados Unidos Mexicanos (United Mexican States Political Constitution), Art¡culo 32 Ley de V¡as Generales de Comunicaci¢n (General Means of Communication Law), Libro Cuarto, Cap¡tulo XV Reglamento de Talleres Aeron uticos (Aeronautical Workshops Regulation) Article 8 DESCRIPTION: Cross-Border Services A concession granted by the Secretar¡a de Comunicaciones y Transportes is required to establish and operate an aircraft repair facility. Only Mexican nationals and Mexican enterprises may obtain such concession. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Transportation SUBÄSECTOR: Air Transportation INDUSTRY CLASSIFICATION: CMAP 973301 Air Navigation Services CMAP 973302 Airport and Heliport Administration Services TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Constituci¢n Pol¡tica de los Estados Unidos Mexicanos (United Mexican States Political Constitution), Art¡culo 32 Ley de V¡as Generales de Comunicaci¢n (General Means of Communication Law), Libro Primero, Cap¡tulo II y II, Libro Cuarto, Cap¡tulo IX Ley para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera(Law to Promote Mexican Investment and to Regulate Foreign Investment) Libro Primero, Cap¡tulo II y III, Libro Cuarto, Cap¡tulo IX Reglamento de la Ley para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera(Regulation of the Law to Promote Mexican Investment and to Regulate Foreign Investment) DESCRIPTION: Cross-Border Services A concession granted by the Secretar¡a de Comunicaciones y Transportes is required to construct and operate, or operate, airports and heliports and to provide air navigation services. Only Mexican nationals and Mexican enterprises may obtain such concession. Investment Prior approval of the Comisi¢n Nacional de Inversiones Extranjeras is required for investors of another Party or their investments to own, directly or indirectly, more than 49 percent of the ownership interest of an enterprise established or to be established in Mexico engaged in the following activities: (a) construction and operation of airports or heliports; (b) operation of airports or heliports; or (c) provision of air navigation services. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Transportation SUBÄSECTOR: Land Transportation INDUSTRY CLASSIFICATION: CMAP 973101 Bus and Truck Station Administration and Ancillary Services (main bus and truck terminals and bus and truck stations) TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley de V¡as Generales de Comunicaci¢n (General Means of Communication Law), Libro Primero, Cap¡tulo II y III, Libro Segundo, T¡tulo Segundo, Cap¡tulos I y II, T¡tulo Tercero, Cap¡tulo Unico Reglamento para el Aprovechamiento del Derecho de V¡a de las Carreteras Federales y Zonas Aleda¤as (Regulations for the Use of the Right of Way of Federal Roads and their Adjacent Areas), Cap¡tulos II y IV Reglamento del Autotransporte Federal de Pasajeros, (Regulations of the Federal Transport of Passengers), and 34 Cap¡tulo IV DESCRIPTION: Cross-Border Services A permit issued by the Secretar¡a de Comunicaciones y Transportes is required to establish or operate a bus or truck station or terminal. Only Mexican nationals and Mexican enterprises with a foreigners' exclusion clause may obtain such permit. Investment Foreign investment is not permitted in an enterprise established or to be established in Mexico engaged in the establishment or operation of bus or truck station or terminals as described in the industry classification mentioned above. DURATION: Cross-Border Services Description shall govern upon entry into force of this Agreement. Three years after signature of this Agreement, such permit may be obtained by Mexican nationals and Mexican enterprises. Investment With respect to enterprises established or to be established in Mexico providing such service investors of another Party and their investment may own: (a) three years after the signature of this Agreement, up to 49 percent of ownership interest of the enterprise; (b) seven years after the entry into force of this Agreement, up to 51 percent of the ownership interest of the enterprise; and (c) ten years after the entry into force of this Agreement, up to 100 percent of the enterprise. ============================================================================= ANNEX I Schedule of Mexico SECTOR: Transportation SUBÄSECTOR: Land Transportation INDUSTRY CLASSIFICATION: CMAP 973102 Road and Bridge Administration Services and Ancillary Services TYPE OF RESERVATION: National Treatment (Article 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Constituci¢n Pol¡tica de los Estados Unidos Mexicanos (United Mexican States Political Constitution), Art¡culo 32 Ley de V¡as Generales de Comunicaci¢n (General Means of Communication Law), Libro Primero, Cap¡tulos I, II y III, Libro Segundo, T¡tulo Segundo, Cap¡tulo II, T¡tulo Tercero, Cap¡tulo Unico DESCRIPTION: Cross-Border Services A concession granted by the Secretar¡a de Comunicaciones y Transportes is required to provide road and bridge administration services and ancillary services. Only Mexican nationals and Mexican enterprises may obtain such concession. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Transportation SUBÄSECTOR: Land Transportation INDUSTRY CLASSIFICATION: CMAP 711312 Urban and Suburban Passenger Transportation Service by Bus CMAP 711315 Collective Automobile Transportation Service CMAP 711316 Established Route Automobile Transportation Service CMAP 711317 Automobile Transportation Service from a Specific Station CMAP 711318 School and Tourist Transportation Service (limited to school transportation service) TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) LEVEL OF GOVERNMENT: Federal and State LEGAL CITATION: Ley para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Law to Promote General Investment and to Regulate Foreign Investment) Ley de V¡as Generales de Comunicaci¢n (General Means of Communication Law) Reglamento de la Ley para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Regulation of the Law to Promote General Investment and to Regulate Foreign Investment) Reglamento para el Autotransporte Federal de Pasajeros (Regulations of the Federal Transport of Passengers) State laws [to be provided] DESCRIPTION: Cross-Border Services and Investment Only Mexican nationals and Mexican enterprises with a foreigners' exclusion clause may provide local bus services, school bus services and taxi and other collective transportation services. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Transportation SUBÄSECTOR: Land Transportation INDUSTRY CLASSIFICATION: CMAP 711201 Road Transport Services for Construction Materials CMAP 711202 Road Transport Moving Services CMAP 711203 Other Services of Specialized Cargo Transportation CMAP 711204 General Trucking Services CMAP 711311 Inter-City Busing Services CMAP 711318 School and Tourist Transportation Services (limited to tourist transportation services). TYPE OF RESERVATION: National Treatment (Article 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: State LEGAL CITATION: Constituci¢n Pol¡tica de los Estados Unidos Mexicanos (United Mexican States Political Constitution), Art¡culo 32 State laws and its regulations equivalent to Ley de V¡as Generales de Comunicaci¢n (General Means of Communication Law) [to be provided] Libro Primero, T¡tulo Segundo, Cap¡tulo II, Libro Primero, Cap¡tulo III DESCRIPTION: Cross-Border Services In each state, a concession is required to provide intrastate bus and truck services on roads under the jurisdiction of such state. Such concession is provided on the basis of economic needs tests. Preferences in the granting of such concessions by states is accorded to natural persons born in such states and enterprises constitued by persons born in such states, including the states of Michoac n, San Luis Potos¡, Tamaulipas, Tlaxcala and Zacatecas. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Transportation SUBÄSECTOR: Land Transportation INDUSTRY CLASSIFICATION: CMAP 711201 Road Transport Services for Construction Materials CMAP 711202 Road Transport Moving Services CMAP 711203 Other Services of Specialized Cargo Transportation CMAP 711204 General Trucking Services CMAP 711311 Inter-City Busing Services CMAP 711318 School and Tourist Transportation Services (limited to tourist transportation services) TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley de V¡as Generales de Comunicaci¢n (General Means of Communication Law), and its regulations [to be provided] Ley para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera, (Law to Promote General Investment and to Regulate Foreign Investment) Memorandum de Entendimiento entre los Estados Unidos Mexicanos y los Estados Unidos de Norteam‚rica para la promoci¢n de Servicios de Transporte Tur¡stico de Ruta Fija, (Memorandum of Understanding Between the United States of America and the United Mexican States on Facilitation of Charter/Tour Bus Service) Reglamento de la Ley para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera, (Regulation of the Law to Promote General Investment and to Regulate Foreign Investment) DESCRIPTION: Cross-Border Services A permit issued by the Secretar¡a de Comunicaciones y Transportes is required to provide bus or truck services for the transportation of goods or passengers to or from the territory of Mexico. Only Mexican nationals and Mexican enterprises with a foreigners' exclusion clause may provide such services, except that a person of Canada or the United States may be granted permanent operating authority to provide international charter or tour bus services into the territory of Mexico. Only Mexican nationals, and Mexican enterprises with a foreigners' exclusion clause, using Mexican registered equipment and drivers who are Mexican nationals, may provide bus and truck services for the transportation of goods and passangers between two points in the territory of Mexico. Investment Foreign investment is not permitted in an enterprise established or to be established in Mexico engaged in bus or truck transportation services as described in the industry classification mentioned above. DURATION: Cross-Border Services Description shall govern upon entry into force of this Agreement. A person of Canada or of the United States will be permitted to provide: (a) three years after signature of this Agreement, cross-border truck services to or from the territory of border states (Baja California, Sonora, Chihuahua, Coahuila, Tamaulipas and Nuevo Le¢n), and such person will be permitted to enter and depart Mexico through different ports of entry in such states; (b) three years after signature of this Agreement, only Mexican nationals and Mexican enterprises, using Mexican-registered equipment and drivers who are Mexican nationals, may provide bus and truck services for the transportation of goods and passengers between two points in the territory of Mexico. (c) three years after entry into force of this Agreement, cross-border scheduled bus services to or from the territory of Mexico; and (d) six years after entry into force of this Agreement, cross-border truck services to or from the territory of Mexico. Investment With respect to enterprises established or to be established in Mexico providing such services, investors of another Party may own: (a) three years after signature of this Agreement, up to 49 percent of ownership of an enterprise providing bus services, tourist transportation services and truck services for the transportation of international cargo, between points in the territory of Mexico; (b) seven years after entry into force of this Agreement, up to 51 percent of the ownership interest of an enterprise providing bus services, tourist transportation services or truck services for the transportation of international cargo, between points in the territory of Mexico; and (c) ten years after entry into force of this Agreement, up to 100 percent ownership interest of an enterprise providing bus services, tourist services and truck services for the transportation of international cargo, between points in the territory of Mexico. Foreign ownership in enterprises providing truck services for the carriage of domestic cargo will not be permitted. Indeterminate. ============================================================================= ANNEX I Schedule of Mexico SECTOR: Transportation SUB-SECTOR: Land Transportation and Water Transportation INDUSTRY CLASSIFICATION: CMAP 501421 Marine and River Works CMAP 501422 Construction of Roads for Land Transportation TYPE OF RESERVATION: National Treatment (Article 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Constituci¢n Pol¡tica de los Estados Unidos Mexicanos, (Political Constitution of the United Mexican States) Art¡culo 32 Ley de V¡as Generales de Comunicaci¢n (General Means of Communications Law) Libro Primero, Cap¡tulos I, Libro Segundo, Cap¡tulo I DESCRIPTION: Cross-Border Services A concession granted by the Secretar¡a de Comunicaciones y Transportes is required to construct and operate, or operate, marine and river works and roads for land transportation. Such concession may be granted only to Mexican nationals and Mexican enterprises. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Transportation SUBÄSECTOR: Non-energy pipelines INDUSTRY CLASSIFICATION: Not applicable TYPE OF RESERVATION: National Treatment (Article 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Constituci¢n Pol¡tica de los Estados Unidos Mexicanos (United Mexican States Political Constitution) Ley de V¡as Generales de Comunicaci¢n (General Means of Communication Law), Articles 8, 12 and 5 Ley Federal de Aguas(Waters Federal Law) DESCRIPTION: Cross-Border Services A concession granted by the Secretar¡a de Comunicaciones y Transportes is required to construct and operate, or operate, pipelines carrying non-energy goods, excluding basic petrochemicals. Only Mexican nationals and Mexican enterprises may obtain such concession. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Transportation SUBÄSECTOR: Freight and Passenger Water Transportation INDUSTRY CLASSIFICATION: CMAP 712011 International Maritime Transportation Services CMAP 712012 Cabotage Maritime Services CMAP 712013 International and Cabotage Towing Services CMAP 712021 River and Lake Transportation Services CMAP 712022 Internal Port Water Transportation Services TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) Most-Favored-Nation (Articles 1103, 1203) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley de V¡as Generales de Comunicaci¢n (General Means of Communication Law), Cap¡tulo III, Libro Tercero Ley para el Desarrollo de la Marina Mercante (Law for the Development of the Merchant Navy), Cap¡tulos I y III Ley de Navegaci¢n y Comercio Mar¡timos (Navigation and Maritime Navigation Law) Libro Segundo, T¡tulo Unico, Cap¡tulos I y IIILey Para Promover la Inversi¢n Mexicana y Regular la Inversi¢n Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment) DESCRIPTION: Cross-Border Services and Investment Maritime cabotage services, including off-shore maritime services, are reserved to Mexican-flagged vessels. A waiver may be granted by the Secretar¡a de Comunicaciones y Transportes when Mexican-flagged vessels are not able to provide such services.Only Mexican flagged vessels may transport cargo owned by the Federal Government. Foreign-flagged vessels may provide international maritime services in Mexico on the basis of reciprocity with the relevant country. Only Mexican-flagged towing vessels may provide towing services from Mexican ports to foreign ports. When such towing vessels are not able to provide such services, the Secretar¡a de Comunicaciones y Transporte may provide a permit to foreign-flagged towing vessels.Only a Mexican national or a Mexican enterprise with a foreigners' exclusion clause may own vessels registered and flagged as Mexican. All members of the board of directors and managers of such enterprise must be Mexican nationals. Prior approval of the Comisi¢n Nacional de Inversiones Extranjeras is required for investors of another Party or their investments, to own, directly or indirectly, more the 49 percent of the ownership interest of an enterprise established or to be established in Mexico operating foreign-flagged vessels providing international maritime transport services. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Transportation SUB-SECTOR: Specialized Personnel INDUSTRY CLASSIFICATION: CMAP 951012 Customs Brokers (Agentes Aduanales) TYPE OF RESERVATION: National Treatment (Article 1102) LEGAL CITATION: Constituci¢n Pol¡tica de los Estados Unidos Mexicanos (United Mexican States Political Constitution) Ley Aduanera (Customs Law) DESCRIPTION: Investment Only Mexican nationals by birth may serve as customs brokers. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Transportation SUBÄSECTOR: Water Transportation INDUSTRY CLASSIFICATION: CMAP 1300 Fishing TYPE OF RESERVATION: National Treatment (Article 1202) Most-Favored-Nation (Article 1203) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Constituci¢n Pol¡tica de los Estados Unidos Mexicanos (United Mexican Stated Political Constitution), Art¡culo 32 Ley de Pesca (Fishing Law), Cap¡tulos I y II Ley de Navegaci¢n y Comercio Mar¡timo (Navigation and Maritime Commerce Law) Libro Segundo, T¡tulo Unico, Cap¡tulo I DESCRIPTION: Cross-Border Services A concession granted, or permit issued, by the Secretar¡a de Pesca is required to engage in fishing activities in Mexican jurisdictional waters. Only Mexican nationals and Mexican enterprises, using Mexican-flagged vessels, may obtain such concession or permit. Permits may exceptionally be issued to persons operating vessels flagged in a foreign country that provides equivalent treatment to Mexican-flagged vessels to engage in fishing activities in the Exclusive Economic Zone (EEZ). Only Mexican nationals and Mexican enterprises may obtain authorization from the Secretar¡a de Pesca for deep sea fishing on Mexican-flagged vessels, fixed rigging installation, recollection from the natural milieu of larvae, post-larvae, eggs, seeds or alevines, for research or acuaculture purposes, introduction of live species into Mexican jurisdictional waters, and for educational fishing in accordance with the programmes of the fishing educational institutions. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Transportation SUBÄSECTOR: Water Transportation INDUSTRY CLASSIFICATION: CMAP 384201 Shipbuilding and Ship Repairs TYPE OF RESERVATION: National Treatment (Article 1202) Local Presence (Article 1205) Performance Requirement (Article 1106) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Constituci¢n Pol¡tica de los Estados Unidos Mexicanos (United Mexican Stated Political Constitution), Art¡culo 32 Ley de V¡as Generales de Comunicaci¢n (General Means of Communication Law) Cap¡tulo XV, Libro Tercero Ley Para el Desarrollo de la Marina Mercante (Law for the Development of the Merchant Navy), Cap¡tulo IV DESCRIPTION: Cross-Border Services and Investment A concession granted by the Secretar¡a de Comunicaciones y Transportes is required to establish and operate a shipyard. Only Mexican nationals and Mexican enterprises may obtain such concession. For the owner of a Mexican-flagged vessel to be eligible for government cargo preferences, subsidies and tax benefits granted under the Ley para el Desarrollo de la Marina Mercante, such person must carry out repair and maintenance operations in shipyards and repair facilities in Mexico. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Transportation SUBÄSECTOR: Water Transportation INDUSTRY CLASSIFICATION: CMAP 973203 Maritime and Inland (Lake and Rivers) Ports Administration TYPE OF RESERVATION: National Treatment (Article 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley de Navegaci¢n y Comercio Mar¡timo (Navigation and Maritime Commerce Law), Libro Segundo, Cap¡tulo II Secciones A y B, T¡tulo Unico Ley de V¡as Generales de Comunicaci¢n (General Means of Communication Law), Cap¡tulo XI DESCRIPTION: Cross-Border Services All port workers must be Mexican nationals. DURATION: Indeterminate ============================================================================= ANNEX I Schedule of Mexico SECTOR: Transportation SUBÄSECTOR: Water Transportation INDUSTRY CLASSIFICATION: CMAP 973201 Loading and Unloading Services Related to Water Transportation (includes operation and maintenance of docks; Loading and unloading of vessels at shore-side; marine cargo handling; operation and maintenance of piers; ship and boat cleaning; stevedoring; transfer of cargo between ships and trucks, trains, pipelines and wharfs; waterfront terminal operations) TYPE OF RESERVATION: National Treatment (Article 1102, 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Constituci¢n Pol¡tica de los Estados Unidos Mexicanos (United Mexican States Political Constitution), Art¡culo 32 Ley de Navegaci¢n y Comercio Mar¡timo (Navigation and Maritime Commerce Law), Libro Primero, T¡tulo Unico, Cap¡tulo I, Libro Segundo, T¡tulo Segundo Ley Org nica de la Administraci¢n P£blica Federal (Federal Public Administration Law) Ley de V¡as Generales de Comunicaci¢n (General Means of Communication Law) Libro Tercero, Cap¡tulo II Reglamento del Servicio de Maniobras en las Zonas Federales de Puertos, Articles 1, 2, 13 and 14 (Operation Services in the Federal Port Zones Regulation), Libro Primero, T¡tulo Unico, Cap¡tulo I, Libro Segundo, T¡tulo Unico, Cap¡tulo II, Secci¢n A y Libro Cuarto, T¡tulo Unico Reglamento para el Uso y Aprovechamiento del Mar Territorial, V¡as Navegables, Playas, Zona Federal Mar¡timo Terrestre y Terrenos Ganados al Mar, (Regulation for the Use of the Territorial Sea, Navigable Ways, Beaches, Maritime and Terrestrial Federal Zones) DESCRIPTION: Cross-Border Services A concession granted by the Secretar¡a de Comunicaciones y Transportes is required to construct and operate, or operate, maritime and inland port terminals, including dock, cranes and related facilities. Only Mexican nationals and Mexican enterprises may obtain such concession. A permit issued by the Secretar¡a de Comunicaciones y Transportes is required to provide stevedoring and warehousing services. Only Mexican nationals and Mexican enterprises may obtain such permit. Investment Prior approval of the Comisi¢n Nacional de Inversiones Extranjeras is required for investors of another Party or their investments to own directly or indirectly, more than 49 percent of the ownership interest of an enterprise established or to be established in Mexico providing to third persons the following services: operation and maintenance of docks; loading and unloading of vessels at shore-side; marine cargo handling; operation and maintenance of piers; ship and boat cleaning; stevedoring; transfer of cargo between ships and trucks, trains, pipelines and wharves; and waterfront terminal operations. DURATION: Cross-Border Services Indeterminate Investment Description shall govern upon entry into force of this Agreement.