Title:Annex I
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/ascii CHARSET=US-ASCII
Content-Length: 7585

                                                                    Annex I


                                        Annex I


            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:

                 (a)  Article 1102, 1202 or 1405 (National Treatment),

                 (b)  Article 1103, 1203 or 1406 (Most-Favored-Nation
                      Treatment),

                 (c)  Article 1205 (Local Presence),

                 (d)  Article 1106 (Performance Requirements), or

                 (e)  Article 1107 (Senior Management and Boards of
                      Directors), 

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

            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)  Level of Government indicates the level of government
                      maintaining the measure for which a reservation is
                      taken;

                 (f)  Measures identifies the laws, regulations or other
                      measures, as qualified, where indicated, by the
                      Description element, for which the reservation is
                      taken.  A measure cited in the Measures element 



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                                                                    Annex I

                           (i)  means the measure as amended, continued or
                                renewed as of the date of entry into force
                                of this Agreement, and

                           (ii) includes any subordinate measure adopted or
                                maintained under the authority of and
                                consistent with the measure; 

                 (g)  Description sets out commitments, if any, for
                      liberalization on the date of entry into force of
                      this Agreement, and the remaining non-conforming
                      aspects of the existing measures for which the
                      reservation is taken; and

                 (h)  Phase-Out sets out commitments, if any, for
                      liberalization after the date of entry into force of
                      this Agreement.

            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: 
             
                 (a)  the Phase-Out element provides for the phasing out of
                      non-conforming aspects of measures, the Phase-Out
                      element shall prevail over all other elements;

                 (b)  the Measures element is qualified by a liberalization
                      commitment from the Description element, the Measures
                      element as so qualified shall prevail over all other
                      elements; and

                 (c)  the Measures element is not so qualified, the
                      Measures element shall prevail over all other
                      elements, unless any discrepancy between the Measures
                      element and the other elements considered in their
                      totality is so substantial and material that it would
                      be unreasonable to conclude that the Measures element
                      should prevail, in which case the other elements
                      shall prevail to the extent of that discrepancy.

            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.

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                                                                    Annex I 

            5.   For purposes of this Annex:

            CMAP means Clasificaci n Mexicana de Actividades y Productos
            (CMAP) numbers as set out in Instituto Nacional de Estad stica,
            Geograf a e Inform tica, Clasificaci n 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:

                 (a)  with respect to Canada, Standard Industrial
                      Classification (SIC) numbers as set out in Statistics
                      Canada, Standard Industrial Classification, fourth
                      edition, 1980; and

                 (b)  with respect to the United States, Standard
                      Industrial Classification (SIC) numbers as set out in
                      the United States Office of Management and Budget,
                      Standard Industrial Classification Manual, 1987. 











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