Title:Annex I -- Schedule of Mexico
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain CHARSET=US-ASCII
Content-Length: 182377




                                                           Annex I - Mexico
                                                           ________________




                                        Annex I
                                   Schedule of Mexico


            Sector:             All Sectors

            Sub-Sector:

            Industry
            Classification:
            Type of             National Treatment (Article 1102)
            Reservation:
            Level of            Federal
            Government:
            Measures:           Constituci n Pol tica de los Estados Unidos
                                Mexicanos, Art culo 27

                                Ley de Nacionalidad y Naturalizaci n,
                                Cap tulos IV, VI

                                Ley Org nica de la Fracci n I del Art culo 27
                                de la Constituci n

                                Ley para Promover la Inversi n Mexicana y
                                Regular la Inversi n Extranjera, Cap tulos I,
                                IV, V

                                Reglamento de la Ley para Promover la
                                Inversi n Mexicana y Regular la Inversi n
                                Extranjera, T tulo I; T tulo II, Cap tulos I,
                                II; T tulo III, Cap tulo III;  T tulo VI;
                                T tulo VIII, Cap tulo IV 

            Description:        Investment

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

                                Foreign nationals, foreign enterprises or


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                                Mexican enterprises may acquire "Certificados
                                de Participaci n Inmobiliaria" (CPI's). 
                                CPI's grant the beneficiaries the right to
                                use and enjoy property and to receive the
                                profits that it may obtain from the
                                profitable use of property.

                                CPI's are issued by a Mexican credit
                                institution that has been granted
                                authorization to acquire through trust the
                                title to real estate intended for industrial
                                and tourism activities in the Restricted Zone
                                for a period not to exceed 30 years.  The
                                trust is renewable if: 

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

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

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

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

            Phase-Out:          None












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            Sector:             All Sectors

            Sub-Sector:

            Industry
            Classification:
            Type of             National Treatment (Article 1102)
            Reservation:
                                Federal
            Level of
            Government:
            Measures:           Ley para Promover la Inversi n Mexicana y
                                Regular la Inversi n Extranjera, Cap tulos I,
                                II, III, V, VI

                                Reglamento de la Ley para Promover la
                                Inversi n Mexicana y Regular la Inversi n
                                Extranjera, T tulo I; T tulo II, Cap tulos I,
                                III, IV; T tulo IV; T tulo V; T tulo VIII,
                                Cap tulos I-V; T tulo IX, Cap tulos I, II,
                                III

                                As qualified by the Description element

            Description:        Investment

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

                                (a)  its effects on employment and training;

                                (b)  its technological contribution; or

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

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

            Phase-Out:          None



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                                                           Annex I - Mexico
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            Sector:             All Sectors

            Sub-Sector:

            Industry
            Classification:
            Type of             National Treatment (Article 1102)
            Reservation:
            Level of            Federal
            Government:
            Measures:           Ley para Promover la Inversi n Mexicana y
                                Regular la Inversi n Extranjera, Cap tulos I,
                                II, III, V, VI

                                Reglamento de la Ley Para Promover la
                                Inversi n Mexicana y Regular la Inversi n
                                Extranjera, T tulo I; T tulo II, Cap tulo I;
                                T tulo IV; T tulo V; T tulo VIII, Cap tulos
                                I-V; T tulo IX, Cap tulos I, II, III

                                As qualified by the Description element

            Description:        Investment

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

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

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





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

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

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

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

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

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

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

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

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


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
































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            Sector:             All Sectors

            Sub-Sector:

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

            Level of            Federal
            Government:
            Measures:           Constituci n Pol tica de los Estados Unidos
                                Mexicanos, Art culo 25

                                Ley General de Sociedades Cooperativas,
                                T tulo I, Cap tulo I; 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 foreign
                                nationals.

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

            Phase-Out:          None


















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            Sector:             All Sectors

            Sub-Sector:

            Industry
            Classification:
            Type of             National Treatment (Article 1102)
            Reservation:
            Level of            Federal
            Government:
            Measures:           Ley Federal para el Fomento de la
                                Microindustria, Cap tulos I, II, III

            Description:        Investment

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

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

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

            Phase-Out:          None


















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            Sector:             Agriculture, Livestock, Forestry and Lumber
                                Activities

            Sub-Sector:         Agriculture, Livestock or Forestry

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

            Type of             National Treatment (Article 1102)
            Reservation:
            Level of            Federal
            Government:
            Measures:           Constituci n Pol tica de los Estados Unidos
                                Mexicanos, Art culo 27

                                Ley Agraria, T tulos V, VI

            Description:        Investment

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

            Phase-Out:          None

















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            Sector:             Communications 

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

            Industry            CMAP 941104    Private Production and
            Classification:                    Transmission of Radio Programs
                                               (limited to production and
                                               transmission of radio
                                               programs, MDS and
                                               uninterrupted music)
                                CMAP 941105    Private Services of
                                               Production, Transmission and
                                               Retransmission of Television
                                               Programming (limited to
                                               production, transmission and
                                               retransmission of television
                                               programming, MDS, direct
                                               broadcasting systems and high-
                                               definition television and
                                               cable television)

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

            Level of            Federal
            Government:
            Measures:           Ley Federal de Radio y Televisi n, T tulo IV,
                                Cap tulo III

                                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, T tulo
                                III 

                                Reglamento del Servicio de Televisi n por
                                Cable, Cap tulo VI 


            Description:        Cross-Border Services and Investment

                                For the protection of copyrights, the holder
                                of a concession for a commercial broadcast
                                station or for a cable television system is


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                                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 within the
                                territory of Mexico.

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

            Phase-Out:          None


































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            Sector:             Communications

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

            Industry            CMAP 941104    Private Production and
            Classification:                    Transmission of Radio Programs
                                               (limited to production and
                                               transmission of radio
                                               programs, MDS and
                                               uninterrupted music)
                                CMAP 941105    Private Services of
                                               Production, Transmission and
                                               Retransmission of Television
                                               Programming (limited to
                                               production, transmission and
                                               retransmission of television
                                               programming, MDS, direct
                                               broadcasting systems,
                                               high-definition television and
                                               cable television)

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

            Level of            Federal
            Government:
            Measures:           Ley Federal de Radio y Televisi n, T tulo IV,
                                Cap tulo III

                                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, T tulo
                                III

                                Reglamento del Servicio de Televisi n por
                                Cable, Cap tulo VI

            Description:        Cross-Border Services and Investment

                                The use of the Spanish language is required
                                for the broadcast, cable or multipoint
                                distribution system distribution of radio or
                                television programming, except when the


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                                Secretar a de Gobernaci n authorizes the use
                                of another language.

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

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

            Phase-Out:          None



































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            Sector:             Communications

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

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

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

            Level of            Federal
            Government:
            Measures:           Ley Federal de Radio y Televisi n, T tulo IV,
                                Cap tulo III

                                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, T tulo
                                III

                                Reglamento del Servicio de Televisi n por
                                Cable, Cap tulo VI

            Description:        Cross-Border Services and Investment

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

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

            Phase-Out:          None




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            Sector:             Communications

            Sub-Sector:         Entertainment Services (Cable Television)

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

            Type of             National Treatment (Article 1102)
            Reservation:
            Level of            Federal
            Government:
            Measures:           Ley Federal de Radio y Televisi n, T tulo
                                III, Cap tulos I, II, III

                                Ley para Promover la Inversi n Mexicana y
                                Regular la Inversi n Extranjera, Cap tulos I,
                                II, III, V, VI

                                Reglamento del Servicio de Televisi n por
                                Cable, Cap tulo II

                                Reglamento de la Ley para Promover la
                                Inversi n Mexicana y Regular la Inversi n
                                Extranjera,  T tulo I; T tulo II, Cap tulo I;
                                T tulo IV; T tulo V; T tulo VIII, Cap tulos
                                I, II, III, V; T tulo IX, Cap tulo I

                                As qualified by the Description element

            Description:        Investment

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

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



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            Sector:             Communications

            Sub-Sector:         Entertainment Services (Cable Television)

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

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

            Level of            Federal
            Government:
            Measures:           Constituci n Pol tica de los Estados Unidos
                                Mexicanos, Art culo 32

                                Ley de V as Generales de Comunicaci n, Libro
                                I, Cap tulo III

                                Ley de Nacionalidad y Naturalizaci n,
                                Cap tulo IV

                                Ley Federal de Radio y Televisi n, T tulo
                                III, Cap tulos I, II, III

                                Reglamento del Servicio de Televisi n por
                                Cable, Cap tulo II

            Description:        Cross-Border Services

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

            Phase-Out:          None








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            Sector:             Communications

            Sub-Sector:         Entertainment Services  (Cinema)

            Industry            CMAP 941103    Private Exhibition of Films 
            Classification:
            Type of             National Treatment (Article 1202)
            Reservation:        Performance Requirements (Article 1106)

            Level of            Federal
            Government:
            Measures:           Ley de la Industria Cinematogr fica

                                Reglamento de la Ley de la Industria
                                Cinematogr fica

                                As qualified by the Description element

            Description:        Cross-Border Services and Investment

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

            Phase-Out:          None





















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            Sector:             Communications

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

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

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

            Level of            Federal
            Government:
            Measures:           Ley de V as Generales de Comunicaci n, Libro
                                I, Cap tulo III 

                                Ley para Promover la Inversi n Mexicana y
                                Regular la Inversi n Extranjera, Cap tulos I,
                                II, III, V, VI

                                Reglamento de Telecomunicaciones, Cap tulo IV

                                Reglamento de la Ley para Promover la
                                Inversi n Mexicana y Regular la Inversi n
                                Extranjera, T tulo I; T tulo II, Cap tulo I;
                                T tulo IV; T tulo V; T tulo VIII, Cap tulos
                                I, II, III, V; T tulo IX, Cap tulo I

                                As qualified by paragraphs 2 and 4 of the
                                Description element

            Description:        Cross-Border Services

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


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                                cross-border basis.

                                Investment

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

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

            Phase-Out:          Cross-Border Services

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

                                Investment

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









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            Sector:             Communications

            Sub-Sector:         Transportation and Telecommunications

            Industry            CMAP 7200 Communications (including
            Classification:               telecommunications and postal
                                          services)
                                CMAP 7100 Transportation

            Type of             National Treatment (Article 1102)
            Reservation:
            Level of            Federal
            Government:
            Measures:           Ley de V as Generales de Comunicaci n, Libro
                                I, Cap tulos III, V

                                Reglamento de Telecomunicaciones, Cap tulo
                                III

            DESCRIPTION:        Investment

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

            Phase-Out:          None

















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            Sector:             Construction

            Sub-Sector:

            Industry            CMAP 501101    Residential or Housing
            Classification:                    Construction
                                CMAP 501102    Non-residential Construction
                                CMAP 501200    Construction of Urbanization
                                               Projects
                                CMAP 501311    Construction of Industrial
                                               Plants
                                CMAP 501312    Construction of Electricity
                                               Generation Plants
                                CMAP 501321    Construction and Maintenance
                                               of Electricity Conduction
                                               Lines and Networks
                                CMAP 501411    Mounting or Installing
                                               Concrete Structures
                                CMAP 501412    Mounting or Installing
                                               Metallic Structures
                                CMAP 501421    Marine and River Works
                                CMAP 501422    Construction of Routes for
                                               Land Transportation
                                CMAP 502001    Hydraulic and Sanitation
                                               Installations in Buildings
                                CMAP 502002    Electrical Installations in
                                               Buildings
                                CMAP 502003    Telecommunications
                                               Installations
                                CMAP 502004    Other Special Installations
                                CMAP 503001    Earth Movements
                                CMAP 503002    Cement Works
                                CMAP 503003    Underground Excavations
                                CMAP 503004    Underwater Works
                                CMAP 503005    Installation of Signs and
                                               Warnings
                                CMAP 503006    Demolition
                                CMAP 503007    Construction of Water
                                               Purification or Treatment
                                               Plants
                                CMAP 503009    Drilling Water Wells
                                CMAP 503010    Construction Activities, Not
                                               Elsewhere Classified

            Type of             National Treatment (Article 1102)
            Reservation:


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            Level of            Federal
            Government:

            Measures:           Ley para Promover la Inversi n Mexicana y
                                Regular la Inversi n Extranjera, Cap tulos I,
                                II, III, V, VI

                                Reglamento de la Ley para Promover la
                                Inversi n Mexicana y Regular la Inversi n
                                Extranjera, T tulo I; T tulo II, Cap tulo I;
                                T tulo IV; T tulo V; T tulo VIII, Cap tulos
                                I, II, III, V; T tulo IX, Cap tulo I

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

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














                                         I-M-23














                                                           Annex I - Mexico
                                                           ________________




            Sector:             Construction

            Sub-Sector:

            Industry            CMAP 501322    Construction of Means for the
            Classification:                    Transportation of Petroleum
                                               and its   Derivatives (limited
                                               to specialized contractors
                                               only)
                                CMAP 503008    Petroleum and Gas, Exploration
                                               and Drilling Works and
                                               Services (limited to
                                               specialized contractors only)

            Type of             National Treatment (Article 1102)
            Reservation:
            Level of            Federal
            Government:
            Measures:           Constituci n Pol tica de los Estados Unidos
                                Mexicanos, Art culo 27

                                Ley Reglamentaria del Art culo 27
                                Constitucional en el Ramo del Petr leo 

                                Ley para Promover la Inversi n Mexicana y
                                Regular la Inversi n Extranjera, Cap tulos I,
                                II, III, V, VI

                                Reglamento de la Ley Reglamentaria del
                                Art culo 27 Constitucional en el Ramo del
                                Petr leo , Cap tulos I, V, IX, XII

                                Reglamento de la Ley para Promover la
                                Inversi n Mexicana y Regular la Inversi n
                                Extranjera, T tulo I; T tulo II, Cap tulo I;
                                T tulo IV; T tulo V; T tulo VIII, Cap tulos
                                I, II, III, V; T tulo IX, Cap tulo I

            Description:        Investment

                                Risk-sharing contracts are prohibited.

                                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,


                                         I-M-24














                                                           Annex I - Mexico
                                                           ________________




                                more than 49 percent of the ownership
                                interest in an enterprise established or to
                                be established in the territory of Mexico
                                involved in "non-risk sharing" contracts for
                                the exploration and drilling works of
                                petroleum and gas wells and the construction
                                of means for the transportation of petroleum
                                and its derivatives.  See also Schedule of
                                Mexico, Annex III, page III-M-1.

            Phase-Out:          None





































                                         I-M-25














                                                           Annex I - Mexico
                                                           ________________




            Sector:             Educational Services

            Sub-Sector:         Private Schools

            Industry            CMAP 921101    Private Preschool Educational
            Classification:                    Services
                                CMAP 921102    Private Primary School
                                               Educational Services
                                CMAP 921103    Private Secondary School
                                               Educational Services
                                CMAP 921104    Private Middle High
                                               (Preparatory) School
                                               Educational Services
                                CMAP 921105    Private Higher School
                                               Educational Services
                                CMAP 921106    Private Educational Services
                                               that Combine Preschool,
                                               Primary, Secondary, Middle
                                               High and Higher School
                                               Instruction

            Type of             National Treatment (Article 1102)
            Reservation:
            Level of            Federal
            Government:
            Measures:           Ley para Promover la Inversi n Mexicana y
                                Regular la Inversi n Extranjera, Cap tulos I,
                                II, III, V, VI

                                Ley para la Coordinaci n de la Educaci n
                                Superior, Cap tulo II

                                Ley Federal de Educaci n, Cap tulo III

                                Reglamento de la Ley para Promover la
                                Inversi n Mexicana y Regular la Inversi n
                                Extranjera, T tulo I; T tulo II, Cap tulo I;
                                T tulo IV; T tulo V; T tulo VIII, Cap tulos
                                I, II, III, V; T tulo IX, Cap tulo I

            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,


                                         I-M-26














                                                           Annex I - Mexico
                                                           ________________




                                more than 49 percent of the ownership
                                interest in an enterprise established or to
                                be established in the territory of Mexico
                                that provides preschool, primary, secondary,
                                preparatory, higher, worker or peasant, or
                                "normal" educational services.

            Phase-Out:          None








































                                         I-M-27














                                                           Annex I - Mexico
                                                           ________________




            Sector:             Energy

            Sub-Sector:         Petroleum Products

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

            Type of             National Treatment (Article 1102)
            Reservation:
            Level of            Federal
            Government:
            Measures:           Ley Reglamentaria del Art culo 27
                                Constitucional en el Ramo del Petr leo 

                                Ley para Promover la Inversi n Mexicana y
                                Regular la Inversi n Extranjera, Cap tulos I,
                                II, III, V, VI

                                Reglamento de la Ley Reglamentaria del
                                Art culo 27 Constitucional en el Ramo del
                                Petr leo, Cap tulos I, IX, XII

                                Reglamento de la Distribuci n de Gas,
                                Cap tulos I, II

                                Reglamento de la Ley para Promover la
                                Inversi n Mexicana y Regular la Inversi n
                                Extranjera, T tulo I; T tulo II, Cap tulo I;
                                T tulo IV; T tulo V; T tulo VIII, Cap tulos
                                I, II, III, V; T tulo IX, Cap tulo I

            Description:        Investment

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

            Phase-Out:          None


            
            Sector:             Energy



                                         I-M-28














                                                           Annex I - Mexico
                                                           ________________




            Sub-Sector:         Petroleum Products 

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

            Type of             National Treatment (Article 1102)
            Reservation:
            Level of            Federal
            Government:
            Measures:           Ley para Promover la Inversi n Mexicana y
                                Regular la Inversi n Extranjera, Cap tulos I,
                                II, III, V, VI

                                Reglamento de la Ley para Promover la
                                Inversi n Mexicana y Regular la Inversi n
                                Extranjera, T tulo I; T tulo II, Cap tulo I;
                                T tulo IV; T tulo V; T tulo VIII, Cap tulos
                                I, II, III, V; T tulo IX, Cap tulo I

                                Reglamento de la Ley Reglamentaria del
                                Art culo 27 Constitucional en el Ramo del
                                Petr leo, Cap tulos I, II, III, V, VII, IX,
                                XII

                                As qualified by the Description element

            Description:        Investment

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

            Phase-Out:          None










                                         I-M-29














                                                           Annex I - Mexico
                                                           ________________




            Sector:             Fishing 

            Sub-Sector:

            Industry            CMAP 130011    Fishing on the High Seas
            Classification:     CMAP 130012    Coastal Fishing
                                CMAP 130013    Fresh Water Fishing

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

            Level of            Federal
            Government:
            Measures:           Ley de Pesca, Cap tulos I, II, IV

                                Ley de Navegaci n y Comercio Mar timos, Libro
                                II, T tulo Unico, Cap tulo V

                                Ley Federal del Mar, T tulo I, Cap tulo I

                                Ley Federal de Aguas 

                                Ley para Promover la Inversi n Mexicana y
                                Regular la Inversi n Extranjera, Cap tulos I,
                                II, III, V, VI

                                Reglamento de la Ley para Promover la
                                Inversi n Mexicana y Regular la Inversi n
                                Extranjera, T tulo I; T tulo II, Cap tulo I;
                                T tulo IV; T tulo V; T tulo VIII, Cap tulos
                                I, II, III, V; T tulo IX, Cap tulo I

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

            Description:        Investment

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



                                         I-M-30














                                                           Annex I - Mexico
                                                           ________________




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

            Phase-Out:          None





































                                         I-M-31














                                                           Annex I - Mexico
                                                           ________________




            Sector:             Manufacturing and Assembly of Goods

            Sub-Sector:         Auto Parts Industry

            Industry            CMAP 383103    Manufacturing of Parts and
            Classification:                    Accessories for Electrical
                                               Automotive Systems
                                CMAP 384121    Manufacture and Assembly of
                                               Car and Truck Bodies and Tows
                                CMAP 384122    Manufacture of Car and Truck
                                               Motors and their Parts
                                CMAP 384123    Manufacture of Car and Truck
                                               Transmission System Parts
                                CMAP 384124    Manufacture of Car and Truck
                                               Suspension System Parts
                                CMAP 384125    Manufacture of Car and Truck
                                               Brake System Parts and
                                               Accessories
                                CMAP 384126    Manufacture of Other Car and
                                               Truck Parts and Accessories

            Type of             National Treatment (Article 1102)
            Reservation:

            Level of            Federal
            Government:
            Measures:           Ley para Promover la Inversi n Mexicana y
                                Regular la Inversi n Extranjera, Cap tulos I,
                                II, III, V, VI

                                Reglamento de la Ley para Promover la
                                Inversi n Mexicana y Regular la Inversi n
                                Extranjera, T tulo I; T tulo II, Cap tulo I;
                                T tulo IV; T tulo V; T tulo VIII, Cap tulos
                                I, II, III, V; T tulo IX, Cap tulo I 

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

                                Acuerdo que Determina Reglas para la
                                Aplicaci n del Decreto para el Fomento y
                                Modernizaci n de la Industria Automotriz

                                As qualified by the Description element
            Description:        Investment



                                         I-M-32














                                                           Annex I - Mexico
                                                           ________________




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

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

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

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

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





                                         I-M-33














                                                           Annex I - Mexico
                                                           ________________




            Sector:             Manufacture of Goods

            Sub-Sector:         Automotive Industry

            Industry            CMAP 383103    Manufacturing of Parts and
            Classification:                    Accessories for Electrical
                                               Automotive Systems
                                CMAP 3841      Automotive Industry
                                CMAP 384121    Manufacture and Assembly of
                                               Car and Truck Bodies and Tows
                                CMAP 384122    Manufacture of Car and Truck
                                               Motors and their Parts
                                CMAP 384123    Manufacture of Car and Truck
                                               Transmission System Parts
                                CMAP 384124    Manufacture of Car and Truck
                                               Suspension System Parts
                                CMAP 384125    Manufacture of Car and Truck
                                               Brake System Parts and
                                               Accessories
                                CMAP 384126    Manufacture of Other Car and
                                               Truck Parts and Accessories

            Type of             Performance Requirements (Article 1106)
            Reservation:
            Level of            Federal
            Government:
            Measures:           Decreto para el Fomento y Modernizaci n de la
                                Industria Automotriz ("Auto Decree")

                                Acuerdo que Determina Reglas para la
                                Aplicaci n del Decreto para el Fomento y
                                Modernizaci n de la Industria Automotriz

                                As qualified by Description element

            Description:        Investment

                                As set out in Annex 300-A

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

            Sector:             Manufacture of Goods

            Sub-Sector:         Maquiladora Industry

            Industry


                                         I-M-34














                                                           Annex I - Mexico
                                                           ________________




            Classification:
            Type of             Performance Requirements (Article 1106)
            Reservation:
            Level of            Federal
            Government:
            Measures:           Ley Aduanera, T tulo IV, Cap tulos I, III;
                                T tulo V, Cap tulo II; T tulo VI

                                Decreto para el Fomento y Operaci n de la
                                Industria Maquiladora de Exportaci n
                                ("Maquiladora Decree")

                                As qualified by the Description element

            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 55 percent of
                                the total value of their annual exports in
                                the previous year. 

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

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

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

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

                                (d)  four years after the date of entry into
                                     force of this Agreement, 75 percent of
                                     the total value of its annual exports in
                                     the previous year;



                                         I-M-35














                                                           Annex I - Mexico
                                                           ________________




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

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

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


































                                         I-M-36














                                                           Annex I - Mexico
                                                           ________________




            Sector:             Manufacture of Goods

            Sub-Sector:

            Industry
            Classification:
            Type of             Performance Requirements (Article 1106)
            Reservation:
            Level of            Federal
            Government:
            Measures:           Ley Reglamentaria del Art culo 131 de la
                                Constituci n Pol tica de los Estados Unidos
                                Mexicanos en Materia de Comercio Exterior,
                                Cap tulo I

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

            Description:        Investment

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

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

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










                                         I-M-37














                                                           Annex I - Mexico
                                                           ________________




            Sector:             Manufacture of Goods

            Sub-Sector:

            Industry
            Classification:
            Type of             Performance Requirements (Article 1106)
            Reservation:
            Level of            Federal
            Government:
            Measures:           Ley Reglamentaria del Art culo 131 de la
                                Constituci n Pol tica de los Estados Unidos
                                Mexicanos en Materia de Comercio Exterior,
                                Cap tulo I

                                Ley Aduanera, T tulo III, Cap tulo IV; T tulo
                                IV, Cap tulos I, III

                                Decreto que Establece Programas de
                                Importaci n Temporal para Producir Art culos
                                de Exportaci n, ("PITEX Decree")

            Description:        Investment

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

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

                                     (i)  machinery, equipment, instruments,
                                          molds and durable tools used in the
                                          manufacturing process, and
                                          equipment used to handle materials
                                          directly related to the exportation
                                          of goods, and

                                     (ii) devices, equipment, accessories or
                                          other items related to the
                                          production of exported goods,
                                          including those used for research,
                                          industrial security, quality
                                          control, communication, training of


                                         I-M-38














                                                           Annex I - Mexico
                                                           ________________




                                          personnel, informatics and
                                          environmental purposes; and 

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

                                     (i)  raw materials, parts and components
                                          totally used in the production of
                                          exported goods,

                                     (ii) packages, bottles, containers and
                                          trailer's containers which are
                                          totally used to contain exported
                                          goods, and

                                     (iii)     fuel, lubricants, auxiliary
                                               materials, reparation tools
                                               and equipment consumed in the
                                               production of exported goods.

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























                                         I-M-39














                                                           Annex I - Mexico
                                                           ________________




            Sector:             Manufacture of Goods

            Sub-Sector:         Artificial Explosives, Fireworks, Firearms
                                and Cartridges

            Industry            CMAP 352236    Manufacturing of Artificial
            Classification:                    Explosives and Fireworks
                                CMAP 382208    Manufacturing of Firearms and
                                               Cartridges

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

            Level of            Federal
            Government:
            Measures:           Ley Federal de Armas de Fuego y Explosivos,
                                T tulo III, Cap tulo I

                                Ley para Promover la Inversi n Mexicana y
                                Regular la Inversi n Extranjera, Cap tulos I,
                                II, III, V, VI 

                                Reglamento de la Ley Federal de Armas de
                                Fuego y Explosivos, Cap tulo IV

                                Reglamento de la Ley Para Promover la
                                Inversi n Mexicana y Regular la Inversi n
                                Extranjera, T tulo I; T tulo II, Cap tulo I,
                                T tulo IV; T tulo V; T tulo VIII, Cap tulos
                                I, II, III, V; T tulo IX, Cap tulo I 

            Description:        Investment

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

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

            Phase-Out:          None



                                         I-M-40











                                                           Annex I - Mexico
                                                           ________________




            Sector:             Mining

            Sub-Sector:         Extraction and Exploitation of Minerals

            Industry            CMAP 210000    Exploitation of Mineral Carbon
            Classification:
                                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             National Treatment (Article 1102)
            Reservation:
            Level of            Federal
            Government:
            Measures:           Ley Minera, Cap tulos I, II


                                         I-M-41














                                                           Annex I - Mexico
                                                           ________________




                                Ley para Promover la Inversi n Mexicana y
                                Regular la Inversi n Extranjera, Cap tulos I,
                                II, III, V, VI

                                Reglamento de la Ley Minera

                                Reglamento de la Ley para Promover la
                                Inversi n Mexicana y Regular la Inversi n
                                Extranjera, T tulo I; T tulo II, Cap tulo I,
                                T tulo IV; T tulo V; T tulo VIII; T tulo IX,
                                Cap tulo I

                                As qualified by the Description element

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

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












                                         I-M-42














                                                           Annex I - Mexico
                                                           ________________




            Sector:             Printing, Editing and Associated Industries

            Sub-Sector:         Newspaper Publishing

            Industry            CMAP 342001    Newspaper Publishing 
            Classification:
            Type of             National Treatment (Article 1102)
            Reservation:
            Level of            Federal
            Government:
            Measures:           Ley para Promover la Inversi n Mexicana y
                                Regular la Inversi n Extranjera, Cap tulos I,
                                II, III, V, VI

                                Reglamento de la Ley para Promover la
                                Inversi n Mexicana y Regular la Inversi n
                                Extranjera, T tulo I; T tulo II, Cap tulo I;
                                T tulo IV; T tulo V; T tulo VIII, Cap tulos
                                I, II, III, V; T tulo IX, Cap tulo I

                                As qualified by the Description element

            Description:        Investment

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

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

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

            Phase-Out:          None


                                         I-M-43











                                                           Annex I - Mexico
                                                           ________________





            Sector:             Professional, Technical and Specialized
                                Services 

            Sub-Sector:         Medical Doctors

            Industry            CMAP 9231 Private Medical, Odontological and
            Classification:               Veterinary Services (limited to
                                          medical and odontological services)

            Type of             National Treatment (Article 1202)
            Reservation:
            Level of            Federal 
            Government:
            Measures:           Ley Federal del Trabajo, Cap tulo I

            Description:        Cross-Border Services

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

            Phase-Out:          None




























                                         I-M-44











                                                           Annex I - Mexico
                                                           ________________




            Sector:             Professional, Technical and Specialized
                                Services 

            Sub-Sector:         Specialized Personnel

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

            Type of             National Treatment (Article 1202)
            Reservation:
            Level of            Federal
            Government:
            Measures:           Ley Aduanera, T tulo IX, Cap tulo Unico

            Description:        Cross-Border Services

                                A shipper's export declaration must be
                                processed by a Mexican national licensed as a
                                customs broker ("agente aduanal") or by a
                                representative ("apoderado aduanal") employed
                                by the exporter and authorized by the
                                Secretar a de Hacienda y Cr dito P blico for
                                this purpose.

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



















                                         I-M-45














                                                           Annex I - Mexico
                                                           ________________




            Sector:             Professional, Technical and Specialized
                                Services

            Sub-Sector:         Professional Services

            Industry            CMAP 9510 Professional, Technical and
            Classification:               Specialized Services (limited to
                                          professional services)

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

            Level of            Federal and State
            Government:
            Measures:           Ley Reglamentaria del Art culo 5o. 
                                Constitucional, Relativo al Ejercicio de las
                                Profesiones en el Distrito Federal, Cap tulo
                                III, Secci n Tercera, Cap tulos IV, V

                                Ley General de Poblaci n,T tulo III, Cap tulo
                                III

                                Reglamento de la Ley Reglamentaria del
                                Art culo 5o. Constitucional, relativo al
                                Ejercicio de las Profesiones en el Distrito
                                Federal, Cap tulo III

            Description:        Cross-Border Services

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

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

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

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



                                         I-M-46











                                                           Annex I - Mexico
                                                           ________________























































                                         I-M-47











                                                           Annex I - Mexico
                                                           ________________




            Sector:             Professional, Technical and Specialized
                                Services 

            Sub-Sector:         Professional Services

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

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

            Level of            Federal 
            Government:
            Measures:           Ley Reglamentaria del Art culo 5o. 
                                Constitucional, Relativo al Ejercicio de las
                                Profesiones en el Distrito Federal, Cap tulo
                                I, Cap tulo III, Secci n III

                                Ley para Promover la Inversi n Mexicana y
                                Regular la Inversi n Extranjera, Cap tulos I,
                                II, III, V, VI

                                Reglamento de la Ley Reglamentaria del
                                Art culo 5o. Constitucional, relativo al
                                Ejercicio de las Profesiones en el Distrito
                                Federal, Cap tulos I, II, V

                                Reglamento de la Ley para Promover la
                                Inversi n Mexicana y Regular la Inversi n
                                Extranjera, T tulo I; T tulo II, Cap tulo I;
                                T tulo IV; T tulo V; T tulo VIII, Cap tulos
                                I, II, III, V; T tulo IX, Cap tulo I

                                As qualified by the Description element

            Description:        Cross Border Services and Investment

                                Except as provided for in this reservation,
                                only lawyers licensed in Mexico may have an
                                ownership interest in a law firm established
                                in the territory of Mexico. 





                                         I-M-48














                                                           Annex I - Mexico
                                                           ________________




                                Lawyers licensed in a Canadian province that
                                permits partnerships between those lawyers
                                and lawyers licensed in Mexico will be
                                permitted to form partnerships with lawyers
                                licensed in Mexico.

                                The number of lawyers licensed in Canada
                                serving as partners, and their ownership
                                interest in the partnership, may not exceed
                                the number of lawyers licensed in Mexico
                                serving as partners, and their ownership
                                interest in the partnership.  A lawyer
                                licensed in Canada may not practice or advise
                                on Mexican law.

                                A law firm established by a partnership of
                                lawyers licensed in Canada and lawyers
                                licensed in Mexico may hire lawyers licensed
                                in Mexico as employees.

                                Lawyers licensed in Canada will be subject to
                                Schedule of Mexico, Annex VI, page VI-M-2.

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

            Phase-Out:          None



















                                         I-M-49














                                                           Annex I - Mexico
                                                           ________________




            Sector:             Professional, Technical and Specialized
                                Services 

            Sub-Sector:         Professional Services

            Industry            CMAP 951003    Accounting and Auditing
            Classification:                    Services (limited to
                                               accounting services)

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

            Level of            Federal
            Government:
            Measures:           C digo Fiscal de la Federaci n, T tulo III

                                Reglamento del C digo Fiscal de la
                                Federaci n, Cap tulo II

            Description:        Cross-Border Services

                                Only Mexican nationals who are licensed as
                                accountants in Mexico are authorized to
                                perform audits for tax purposes on behalf of:

                                (a)  state enterprises;

                                (b)  enterprises that are authorized to
                                     receive tax-deductible donations;

                                (c)  enterprises with income, capital stock,
                                     number of employees and operations above
                                     levels specified annually by the
                                     Secretar a de Hacienda y Cr dito
                                     P blico; or

                                (d)  enterprises undergoing a merger or
                                     divestiture.

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


                                         I-M-50














                                                           Annex I - Mexico
                                                           ________________




            Sector:             Professional, Technical and Specialized
                                Services 

            Sub-Sector:         Specialized Services (Commercial Public
                                Notaries) 

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

            Level of            Federal 
            Government:
            Measures:           C digo de Comercio, Libro I, T tulo III

                                Ley para Promover la Inversi n Mexicana y
                                Regular la Inversi n Extranjera, Cap tulos I,
                                II, III, V, VI

                                Reglamento de la Ley para Promover la
                                Inversi n Mexicana y 
                                Regular la Inversi n Extranjera, T tulo I;
                                T tulo II, Cap tulo I; T tulo IV; T tulo V;
                                T tulo VIII, Cap tulos I, II, III, V; T tulo
                                II, Cap tulo I

            Description:        Cross-Border Services and Investment

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

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

            Phase-Out:          1.   Citizenship and permanent residency
                                requirements are subject to removal within
                                two years of the date of entry into force of
                                this Agreement in accordance with Article
                                1210(3).  On removal of these requirements, a
                                foreign professional will be required to have
                                an address in Mexico.

                                2.   None


                                         I-M-51














                                                           Annex I - Mexico
                                                           ________________





            Sector:             Professional, Technical and Specialized
                                Services 

            Sub-Sector:         Specialized Services

            Industry            CMAP 951001    Public Notary 
            Classification:
            Type of             National Treatment (Articles 1102, 1202)
            Reservation:        Local Presence (Article 1205)

            Level of            Federal and State
            Government:
            Measures:           Ley para Promover la Inversi n Mexicana y
                                Regular la Inversi n Extranjera, Cap tulos I,
                                II, III, V, VI

                                Leyes del Notariado para los Estados de:
                                Aguascalientes, Baja California, Baja
                                California Sur, Campeche, Coahuila, Colima,
                                Chiapas, Chihuahua, Distrito Federal,
                                Durango, Guanajuato, Guerrero, Hidalgo,
                                Jalisco, M xico, Michoac n, Morelos, Nayarit,
                                Nuevo Le n, Oaxaca, Puebla, Quer taro,
                                Quintana Roo, San Luis Potos , Sonora,
                                Tabasco, Tamaulipas, Tlaxcala, Veracruz,
                                Yucat n and Zacatecas.

                                Reglamento de la Ley para Promover la
                                Inversi n Mexicana y Regular la Inversi n
                                Extranjera, T tulo I; T tulo II, Cap tulo I;
                                T tulo IV; T tulo V; T tulo VIII, Cap tulos
                                I, II, III, V; T tulo IX, Cap tulo I 

            Description:        Cross-Border Services and Investment

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

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

            Phase-Out:          None



                                         I-M-52














                                                           Annex I - Mexico
                                                           ________________




















































                                         I-M-53














                                                           Annex I - Mexico
                                                           ________________




            Sector:             Professional, Technical and Specialized
                                Services

            Sub-Sector:         Professional Services

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

            Type of             National Treatment (Article 1202)
            Reservation:
            Level of            Federal
            Government:
            Measures:           Ley de Sanidad Fitopecuaria de los Estados
                                Unidos Mexicanos, T tulo II, Cap tulo IV

                                Reglamento de Control de Productos
                                Qu mico-Farmac uticos, Biol gicos,
                                Alimenticios, Equipos y Servicios para
                                Animales, Cap tulos IV, V

            Description:        Cross-Border Services

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

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

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

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







                                         I-M-54














                                                           Annex I - Mexico
                                                           ________________




            Sector:             Retail Commerce

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

            Industry            CMAP 623087    Sale of Firearms, Cartridges
            Classification:                    and Ammunition
                                CMAP 612024    Wholesale Commerce, Not
                                               Elsewhere Classified (limited
                                               to firearms, cartridges and
                                               ammunition)

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

            Level of            Federal
            Government:
            Measures:           Ley Federal de Armas de Fuego y Explosivos,
                                T tulo III, Cap tulo I

                                Ley para Promover la Inversi n Mexicana y
                                Regular la Inversi n Extranjera, Cap tulos I,
                                II, III, V, VI

                                Reglamento de la Ley Federal de Armas de
                                Fuego y Explosivos, Cap tulo IV

                                Reglamento de la Ley para Promover la
                                Inversi n Mexicana y Regular la Inversi n
                                Extranjera, T tulo I; T tulo II, Cap tulo I;
                                T tulo IV; T tulo V; T tulo VIII, Cap tulos
                                I, II, III, V; T tulo IX, Cap tulo I 

            Description:        Investment

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

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

            Phase-Out:          None     I-M-55














                                                           Annex I - Mexico
                                                           ________________























































                                         I-M-56











                                                           Annex I - Mexico
                                                           ________________




            Sector:             Religious Services

            Sub-Sector:

            Industry            CMAP 929001    Religious Services
            Classification:
            Type of             Local Presence (Article 1205)
            Reservation:        Senior Management and Boards of Directors
                                (Article 1107)

            Level of            Federal
            Government:
            Measures:           Ley de Asociaciones Religiosas y Culto
                                Privado, T tulo II, Cap tulos I, II

            Description:        Cross-Border Services

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

                                Investment

                                Representatives of religious associations in
                                Mexico must be Mexican nationals.

            Phase-Out:          None





















                                         I-M-57














                                                           Annex I - Mexico
                                                           ________________




            Sector:             Services to Agriculture 

            Sub-Sector:

            Industry            CMAP 971010    Supply of Agricultural
            Classification:                    Services

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

            Level of            Federal
            Government:
            Measures:           Constituci n Pol tica de los Estados Unidos
                                Mexicanos, Art culo 32 

                                Ley de Sanidad Fitopecuaria de los Estados
                                Unidos Mexicanos, T tulo II

                                Ley de Nacionalidad y Naturalizaci n,
                                Cap tulo IV

                                Reglamento de la Ley de Sanidad Fitopecuaria
                                de los Estados Unidos Mexicanos, 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 a concession.

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









                                         I-M-58














                                                           Annex I - Mexico
                                                           ________________




            Sector:             Transportation

            Sub-Sector:         Air Transportation

            Industry            CMAP 713001    Transportation Services on
            Classification:                    Mexican-Registered Aircraft
                                CMAP 713002    Air Taxi Transportation
                                               Services

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

            Level of            Federal
            Government:
            Measures:           Ley de V as Generales de Comunicaci n, Libro
                                IV, Cap tulo I, X, XI

                                Ley para Promover la Inversi n Mexicana y
                                Regular la Inversi n Extranjera, Cap tulos I,
                                II, III, V, VI

                                Reglamento de la Ley para Promover la
                                Inversi n Mexicana y Regular la Inversi n
                                Extranjera, T tulo I; T tulo II, Cap tulo I;
                                T tulo IV; T tulo V; T tulo VIII, Cap tulos
                                I, II, III, V; T tulo IX, Cap tulo I 

                                As qualified by the Description element

            Description:        Investment

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

                                Only Mexican nationals and Mexican
                                enterprises in which 75 percent of the voting


                                         I-M-59














                                                           Annex I - Mexico
                                                           ________________




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

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

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

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

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

            Phase-Out:          None














                                         I-M-60














                                                           Annex I - Mexico
                                                           ________________




            Sector:             Transportation

            Sub-Sector:         Specialty Air Services

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

            Level of            Federal
            Government:
            Measures:           Ley de V as Generales de Comunicaci n, Libro
                                I, Cap tulos I, II, III; Libro IV, Cap tulo
                                XII

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

            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.   A person of Canada or the United States
                                may obtain such a permit to provide flight
                                training, forest fire-management, fire-
                                fighting, glider towing, and parachute
                                jumping services in Mexico, subject to
                                compliance with Mexican safety requirements.

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







                                         I-M-61














                                                           Annex I - Mexico
                                                           ________________




                                Investment

                                4.   Investors of another Party or their
                                investments may only own, directly or
                                indirectly, up to 25 percent of the voting
                                interests in an enterprise established or to
                                be established in the territory of Mexico
                                that provides specialty air services using
                                Mexican-registered aircraft.  The chairman
                                and at least two-thirds of the board of
                                directors and two-thirds of managing officers
                                of such an enterprise must be Mexican
                                nationals.  Only Mexican nationals and
                                Mexican enterprises in which 75 percent of
                                the voting interests is owned or controlled
                                by Mexican nationals and of which the
                                chairman and at least two-thirds of the
                                managing officers are Mexican nationals may
                                register aircraft in Mexico.

            Phase-Out:          Cross-Border Services

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

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

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

                                Investment

                                None






                                         I-M-62














                                                           Annex I - Mexico
                                                           ________________




            Sector:             Transportation

            Sub-Sector:         Air Transportation 

            Industry            CMAP 384205    Aircraft Building, Assembly
            Classification:                    and Repair (limited to
                                               aircraft repair)

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

            Level of            Federal
            Government:
            Measures:           Constituci n Pol tica de los Estados Unidos
                                Mexicanos, Art culo 32

                                Ley de V as Generales de Comunicaci n, Libro
                                I, Cap tulos I, II, III; Libro IV, Cap tulo
                                XV

                                Ley de Nacionalidad y Naturalizaci n,
                                Cap tulo IV

                                Reglamento de Talleres Aeron uticos, Cap tulo
                                I

            Description:        Cross-Border Services

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

            Phase-Out:          None












                                         I-M-63














                                                           Annex I - Mexico
                                                           ________________




            Sector:             Transportation

            Sub-Sector:         Air Transportation

            Industry            CMAP 973301    Air Navigation Services
            Classification:     CMAP 973302    Airport and Heliport
                                               Administration Services

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

            Level of            Federal
            Government:
            Measures:           Constituci n Pol tica de los Estados Unidos
                                Mexicanos, Art culo 32

                                Ley de V as Generales de Comunicaci n, Libro
                                I, Cap tulos I, II, III; Libro IV, Cap tulo
                                IX

                                Ley para Promover la Inversi n Mexicana y
                                Regular la Inversi n Extranjera, Cap tulos I,
                                II, III, V, VI

                                Ley de Nacionalidad y Naturalizaci n,
                                Cap tulo IV

                                Reglamento de la Ley para Promover la
                                Inversi n Mexicana y Regular la Inversi n
                                Extranjera, T tulo I; T tulo II, Cap tulo I;
                                T tulo IV; T tulo V; T tulo VIII, Cap tulos
                                I, II, III, V; T tulo IX, 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, airports
                                and heliports and to provide air navigation
                                services. Only Mexican nationals and Mexican
                                enterprises may obtain such a concession.







                                         I-M-64














                                                           Annex I - Mexico
                                                           ________________




                                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 in an enterprise established or to
                                be established in the territory of Mexico
                                engaged in the following activities:

                                (a)  construction and operation of airports
                                     or heliports;  

                                (b)  operation of airports or heliports; or

                                (c)  provision of air navigation services.

            Phase-Out:          None





























                                         I-M-65














                                                           Annex I - Mexico
                                                           ________________




            Sector:             Transportation

            Sub-Sector:         Land Transportation

            Industry            CMAP 973101    Bus and Truck Station
            Classification:                    Administration and Ancillary
                                               Services (main bus and truck
                                               terminals and bus and truck
                                               stations)

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

            Level of            Federal
            Government:
            Measures:           Ley de V as Generales de Comunicaci n, Libro
                                I, Cap tulo I, II, III; Libro II, T tulo II,
                                Cap tulos I, II; T tulo III, Cap tulo Unico

                                Reglamento para el Aprovechamiento del
                                Derecho de V a de las Carreteras Federales y
                                Zonas Aleda as, Cap tulos II, IV

                                Reglamento del Servicio P blico de
                                Autotransporte Federal de Pasajeros, Cap tulo
                                III, IV

                                As qualified by paragraph 1 of the
                                Description element

            Description:        Cross-Border Services

                                1.   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 a permit.

                                Investment

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


                                         I-M-66














                                                           Annex I - Mexico
                                                           ________________




                                establishment or operation of bus or truck
                                stations or terminals.

            Phase-Out:          Cross-Border Services

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

                                Investment

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

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

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

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
















                                         I-M-67














                                                           Annex I - Mexico
                                                           ________________




            Sector:             Transportation

            Sub-Sector:         Land Transportation

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

            Type of             National Treatment (Article 1202)
            Reservation:

            Level of            Federal
            Government:

            Measures:           Ley Federal del Trabajo, Cap tulo I

            Description:        Cross-Border Services

                                Railway crew members must be Mexican
                                nationals.

            Phase-Out:          None



























                                         I-M-68














                                                           Annex I - Mexico
                                                           ________________




            Sector:             Transportation

            Sub-Sector:         Land Transportation

            Industry            CMAP 973102    Road and Bridge Administration
            Classification:                    Services and Ancillary
                                               Services

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

            Level of            Federal
            Government:
            Measures:           Constituci n Pol tica de los Estados Unidos
                                Mexicanos, Art culo 32

                                Ley de V as Generales de Comunicaci n, Libro
                                I, Cap tulos I, II, III; Libro II, T tulo II,
                                Cap tulo II; T tulo III, Cap tulo Unico

                                Ley de Nacionalidad y Naturalizaci n,
                                Cap tulo IV

            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 a concession.

            Phase-Out:          None















                                         I-M-69














                                                           Annex I - Mexico
                                                           ________________




            Sector:             Transportation

            Sub-Sector:         Land Transportation

            Industry            CMAP 711312    Urban and Suburban Passenger
            Classification:                    Transportation Service by Bus
                                CMAP 711315    Collective Automobile
                                               Transportation Service
                                CMAP 711316    Established Route Automobile
                                               Transportation Service
                                CMAP 711317    Automobile Transportation
                                               Services from a Specific
                                               Station 
                                CMAP 711318    School and Tourist
                                               Transportation Services
                                               (limited to school
                                               transportation services)

            Type of             National Treatment (Article 1102, 1202)
            Reservation:
            Level of            Federal
            Government:
            Measures:           Ley para Promover la Inversi n Mexicana y
                                Regular la Inversi n Extranjera, Cap tulos I,
                                II, III, V, VI

                                Ley de V as Generales de Comunicaci n, Libro
                                I, Cap tulos I, II, III; Libro II, T tulo II,
                                Cap tulo II

                                Ley de Nacionalidad y Naturalizaci n,
                                Cap tulo IV 

                                Reglamento de la Ley para Promover la
                                Inversi n Mexicana y Regular la Inversi n
                                Extranjera, T tulo I; T tulo II, Cap tulo I;
                                T tulo IV; T tulo V; T tulo VIII, Cap tulos
                                I, II, III, V; T tulo IX, Cap tulo I 

                                Reglamento del Servicio P blico de
                                Autotransporte Federal de Pasajeros, Cap tulo
                                II






                                         I-M-70














                                                           Annex I - Mexico
                                                           ________________




            Description:        Cross-Border Services and Investment

                                Only Mexican nationals and Mexican
                                enterprises with a foreigners' exclusion
                                clause may provide local bus services, school
                                bus services and taxi and other collective
                                transportation services.

            Phase-Out:          None







































                                         I-M-71














                                                           Annex I - Mexico
                                                           ________________




            Sector:             Transportation

            Sub-Sector:         Land Transportation

            Industry            CMAP 711201    Road Transport Services for
            Classification:                    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             National Treatment (Articles 1102, 1202)
            Reservation:        Local Presence (Article 1205)

            Level of            Federal
            Government:
            Measures:           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, 3 de
                                diciembre de 1990

                                Ley de V as Generales de Comunicaci n, Libro
                                I, Cap tulos I, II, III; Libro II, T tulo II,
                                Cap tulo II; T tulo III, Cap tulo Unico

                                Ley para Promover la Inversi n Mexicana y
                                Regular la Inversi n Extranjera, Cap tulos I,
                                II, III, V, VI

                                Reglamento de la Ley para Promover la
                                Inversi n Mexicana y Regular la Inversi n
                                Extranjera, T tulo I; T tulo II, Cap tulo I;
                                T tulo IV; T tulo V; T tulo VIII, Cap tulos
                                I, II, III, V; T tulo IX, Cap tulo I 

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

            Description:        Cross-Border Services



                                         I-M-72














                                                           Annex I - Mexico
                                                           ________________




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

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

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

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

                                Investment

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

            Phase-Out:          Cross-Border Services

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

                                (a)  three years after the date of signature
                                     of this Agreement, cross-border truck
                                     services to or from the territory of
                                     border states (Baja California,




                                         I-M-73














                                                           Annex I - Mexico
                                                           ________________




                                     Chihuahua, Coahuila, Nuevo Le n, Sonora
                                     and Tamaulipas), and such a person will
                                     be permitted to enter and depart Mexico
                                     through different ports of entry in such
                                     states;

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

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

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

                                Investment

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

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

                                (b)  only own, seven years after the date of
                                     entry into force of this Agreement, only


                                         I-M-74














                                                           Annex I - Mexico
                                                           ________________




                                     up to 51 percent of the ownership
                                     interest in such an enterprise; and

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

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



































                                         I-M-75














                                                           Annex I - Mexico
                                                           ________________




            Sector:             Transportation

            Sub-Sector:         Land Transportation and Water Transportation

            Industry            CMAP 501421    Marine and River Works
            Classification:     CMAP 501422    Construction of Roads for Land
                                               Transportation

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

            Level of            Federal
            Government:
            Measures:           Constituci n Pol tica de los Estados Unidos
                                Mexicanos, Art culo 32

                                Ley de V as Generales de Comunicaci n, Libro
                                I, Cap tulos I, II, III; Libro II, T tulo II,
                                Cap tulo II; Libro III, Cap tulos II, XV

                                Ley de Nacionalidad y Naturalizaci n,
                                Cap tulo IV

            Description:        Cross-Border Services

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

            Phase-Out:          None















                                         I-M-76














                                                           Annex I - Mexico
                                                           ________________




            Sector:             Transportation

            Sub-Sector:         Non-Energy Pipelines

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

            Level of            Federal
            Government:
            Measures:           Constituci n Pol tica de los Estados Unidos
                                Mexicanos, Art culo 32

                                Ley de V as Generales de Comunicaci n, Libro
                                I, Cap tulos I, II, III

                                Ley Federal de Aguas, T tulo I, Cap tulo I

                                Ley de Nacionalidad y Naturalizaci n,
                                Cap tulo IV
            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 goods other than energy or basic
                                petrochemicals.  Only Mexican nationals and
                                Mexican enterprises may obtain such a
                                concession.

            Phase-Out:          None















                                         I-M-77














                                                           Annex I - Mexico
                                                           ________________




            Sector:             Transportation

            Sub-Sector:         Specialized Personnel

            Industry            CMAP 951012    Customs Brokers 
            Classification:
            Type of             National Treatment (Article 1102)
            Reservation:
            Measures:           Constituci n Pol tica de los Estados Unidos
                                Mexicanos, Art culo 32

                                Ley Aduanera, T tulo II, Cap tulo Unico

                                Ley para Promover la Inversi n Mexicana y
                                Regular la Inversi n Extranjera, Cap tulos I,
                                II, III, V, VI

                                Reglamento de la Ley para Promover la
                                Inversi n Mexicana y Regular la Inversi n
                                Extranjera, T tulo I; T tulo II, Cap tulo I;
                                T tulo IV; T tulo V; T tulo VIII, Cap tulos
                                I, II, III, V; T tulo IX, Cap tulo I 

            Description:        Investment

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

            Phase-Out:          None
















                                         I-M-78














                                                           Annex I - Mexico
                                                           ________________




            Sector:             Transportation

            Sub-Sector:         Water Transportation

            Industry            CMAP 1300 Fishing
            Classification:
            Type of             National Treatment (Article 1202)
            Reservation:        Most-Favored-Nation Treatment (Article 1203)
                                Local Presence (Article 1205)

            Level of            Federal
            Government:
            Measures:           Constituci n Pol tica de los Estados Unidos
                                Mexicanos, Art culo 32

                                Ley de Pesca, Cap tulos I, II

                                Ley de Navegaci n y Comercio Mar timos,
                                Libro II, T tulo Unico, Cap tulo I

                                Ley de Nacionalidad y Naturalizaci n,
                                Cap tulo IV

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

            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 a
                                concession or permit.  Permits may
                                exceptionally be issued to persons operating
                                vessels flagged in a foreign country that
                                provides equivalent treatment to
                                Mexican-flagged vessels to engage in fishing
                                activities in the Exclusive Economic Zone. 

                                Only Mexican nationals and Mexican
                                enterprises may obtain authorization from the
                                Secretar a de Pesca for deep sea fishing on
                                Mexican-flagged vessels, fixed rigging
                                installations, recollection from the natural


                                         I-M-79














                                                           Annex I - Mexico
                                                           ________________




                                milieu of larvae, post-larvae, eggs, seeds or
                                fingerlings, for research or aquaculture
                                purposes, introduction of live species into
                                "Mexican jurisdictional waters", and for
                                educational fishing in accordance with the
                                programs of fishing educational institutions.

            Phase-Out:          None








































                                         I-M-80














                                                           Annex I - Mexico
                                                           ________________




            Sector:             Transportation

            Sub-Sector:         Water Transportation

            Industry            CMAP 384201    Shipbuilding and Ship Repair
            Classification:
            Type of             National Treatment (Article 1202)
            Reservation:        Local Presence (Article 1205)
                                Performance Requirements (Article 1106)

            Level of            Federal
            Government:
            Measures:           Constituci n Pol tica de los Estados Unidos
                                Mexicanos, Art culo 32

                                Ley de V as Generales de Comunicaci n, Libro
                                I, Cap tulos I, II, III; Libro III, Cap tulo
                                XV

                                Ley para el Desarrollo de la Marina Mercante,
                                Cap tulo IV

                                Ley de Nacionalidad y Naturalizaci n,
                                Cap tulo IV

            Description:        Cross-Border Services

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

                                Cross-Border Services and Investment

                                For the owner of a Mexican-flagged vessel to
                                be eligible for government cargo preferences,
                                subsidies and tax benefits granted under the
                                Ley para el Desarrollo de la Marina Mercante,
                                that owner must carry out repair and
                                maintenance operations in shipyards and
                                repair facilities in the territory of Mexico.


            Phase-Out:          None






                                         I-M-81











                                                           Annex I - Mexico
                                                           ________________




            Sector:             Transportation

            Sub-Sector:         Water Transportation

            Industry            CMAP 712011    International Maritime
            Classification:                    Transportation Services
                                CMAP 712012    Cabotage Maritime Services
                                CMAP 712013    International and Cabotage
                                               Towing Services
                                CMAP 712022    Internal Port Water
                                               Transportation Services
                                CMAP 712021    River and Lake Transportation
                                               Services



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

            Level of            Federal
            Government:
            Measures:           Ley de V as Generales de Comunicaci n, Libro
                                I, Cap tulos I, II y III; Libro III,
                                Cap tulos I-XV

                                Ley para el Desarrollo de la Marina Mercante,
                                Cap tulos I, III

                                Ley de Navegaci n y Comercio Mar timos, Libro
                                II, T tulo Unico, Cap tulos I, III

                                Ley para Promover la Inversi n Mexicana y
                                Regular la Inversi n Extranjera, Cap tulos I,
                                II, III, V, VI

                                Reglamento de la Ley para Promover la
                                Inversi n Mexicana y Regular la Inversi n
                                Extranjera, T tulo I; T tulo II, Cap tulo I;
                                T tulo IV; T tulo V; T tulo VIII, Cap tulos
                                I, II, III, V; T tulo I
                                IX, Cap tulo I 




                                         I-M-82














                                                           Annex I - Mexico
                                                           ________________




            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 where Mexican-flagged vessels are
                                not able to provide such services.  Only
                                Mexican-flagged vessels may transport cargo
                                owned by the Federal Government.

                                Foreign-flagged vessels may provide
                                international maritime services in the
                                territory of Mexico on the basis of
                                reciprocity with the relevant country.  Only
                                Mexican-flagged towing vessels may provide
                                towing services from Mexican ports to foreign
                                ports.  Where such towing vessels are not
                                able to provide such services, the Secretar a
                                de Comunicaciones y Transportes may provide
                                permits to foreign-flagged towing vessels. 
                                Only a Mexican national or a Mexican
                                enterprise with a foreigners' exclusion
                                clause may own vessels registered and flagged
                                as Mexican.  All members of the board of
                                directors and managers of such enterprise
                                must be Mexican nationals.

                                Investment

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

            Phase-Out:          None







                                         I-M-83














                                                           Annex I - Mexico
                                                           ________________




            Sector:             Transportation

            Sub-Sector:         Water Transportation

            Industry            CMAP 973203    Maritime and Inland (Lake and
            Classification:                    Rivers) Ports Administration 

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

            Level of            Federal
            Government:
            Measures:           Ley de Navegaci n y Comercio Mar timos, Libro
                                II, Cap tulo II

                                Ley de V as Generales de Comunicaci n, Libro
                                III, Cap tulo XI

            Description:        Cross-Border Services

                                All port workers must be Mexican nationals.

            Phase-Out:          None

























                                         I-M-84














                                                           Annex I - Mexico
                                                           ________________




            Sector:             Transportation

            Sub-Sector:         Water Transportation

            Industry            CMAP 973201    Loading and Unloading Services
            Classification:                    Related to Water
                                               Transportation (includes
                                               operation and maintenance of
                                               docks; loading and unloading
                                               of vessels at shore-side;
                                               marine cargo handling;
                                               operation and maintenance of
                                               piers; ship and boat cleaning;
                                               stevedoring; transfer of cargo
                                               between ships and trucks,
                                               trains, pipelines and wharves;
                                               waterfront terminal
                                               operations)

            Type of             National Treatment (Article 1102)
            Reservation:
            Level of            Federal
            Government:
            Measures:           Ley de Navegaci n y Comercio Mar timos, Libro
                                I, T tulo Unico, Cap tulo I; Libro II, T tulo
                                II

                                Ley para Promover la Inversi n Mexicana y
                                Regular la Inversi n Extranjera, Cap tulos I,
                                II, III, V, VI

                                Ley de V as Generales de Comunicaci n, Libro
                                I, Cap tulos I, II, III; Libro III, Cap tulo
                                II

                                Reglamento de la Ley para Promover la
                                Inversi n Mexicana y Regular la Inversi n
                                Extranjera, T tulo I; T tulo II, Cap tulo I;
                                T tulo IV; T tulo V; T tulo VIII, Cap tulos
                                I, II, III, V; T tulo IX, Cap tulo I 

                                Reglamento del Servicio de Maniobras en las
                                Zonas Federales de Puertos, Libro I, T tulo
                                Unico, Cap tulo I; Libro II, T tulo Unico,
                                Cap tulo II, Secci n A; Libro IV, T tulo
                                Unico


                                         I-M-85














                                                           Annex I - Mexico
                                                           ________________




                                Reglamento para el Uso y Aprovechamiento del
                                Mar Territorial, V as Navegables, Playas,
                                Zona Federal Mar timo Terrestre y Terrenos
                                Ganados al Mar, Cap tulo II, Secci n II

                                As qualified by the Description element

            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
                                interest in an enterprise, established or to
                                be established in the territory of Mexico
                                providing to third persons the following
                                services: operation and maintenance of docks;
                                loading and unloading of vessels at shore-
                                side; marine cargo handling; operation and
                                maintenance of piers; ship and boat cleaning;
                                stevedoring; transfer of cargo between ships
                                and trucks, trains, pipelines and wharves;
                                and waterfront terminal operations.

            Phase-Out:          None






















                                         I-M-86














                                                           Annex I - Mexico
                                                           ________________




            Sector:             Transportation

            Sub-Sector:         Water Transportation

            Industry            CMAP 973201    Loading and Unloading Services
            Classification:                    Related to Water
                                               Transportation (includes
                                               operation and maintenance of
                                               docks; loading and unloading
                                               of vessels at shore-side;
                                               marine cargo handling;
                                               operation and maintenance of
                                               piers; ship and boat cleaning;
                                               stevedoring; transfer of cargo
                                               between ships and trucks,
                                               trains, pipelines and wharves;
                                               waterfront terminal
                                               operations)

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

            Level of            Federal
            Government:
            Measures:           Constituci n Pol tica de los Estados Unidos
                                Mexicanos, Art culo 32

                                Ley de Navegaci n y Comercio Mar timos, Libro
                                I, T tulo Unico, Cap tulo I; Libro II, T tulo
                                II

                                Ley de V as Generales de Comunicaci n, Libro
                                I, Cap tulos I, II, III; Libro III, Cap tulo
                                II

                                Ley de Nacionalidad y Naturalizaci n,
                                Cap tulo IV

                                Reglamento del Servicio de Maniobras en las
                                Zonas Federales de Puertos, Libro I, T tulo
                                Unico, Cap tulo I, Libro II, T tulo Unico,
                                Cap tulo II, Secci n A; Libro IV, T tulo
                                Unico

                                Reglamento para el Uso y Aprovechamiento del
                                Mar Territorial, V as Navegables, Playas,


                                         I-M-87














                                                           Annex I - Mexico
                                                           ________________




                                Zona Federal Mar timo Terrestre y Terrenos
                                Ganados al Mar, Cap tulo II, Secci n II


            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 docks,
                                cranes and related facilities.  Only Mexican
                                nationals and Mexican enterprises may obtain
                                such a 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 a permit.

            Phase-Out:          None



























                                         I-M-88







