Title:Annex VII -- Schedule of the United States
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:23112                                               Annex VII(A) - United States                                         
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                                      Annex VII 
                            Schedule of the United States 
                                      Section A 
 
 
          Sector:             Financial Services 
 
          Sub-Sector:         Banking 
 
          Industry            SIC 6021  National Commercial Banks 
          Classification: 
          Type of             Senior Management and Boards of Directors 
          Reservation:        (Article 1408) 
           
          Level of            Federal 
          Government: 
 
          Measures:           The National Bank Act, 12 U.S.C.   72 
 
          Description:        All directors of a national bank must be 
                              citizens of the United States.  Because the 
                              president of a national bank must be a 
                              director, the president of a national bank 
                              must be a citizen of the United States.  An 
                              exception exists for a national bank 
                              affiliated with or owned by a foreign bank.  
                              Such a bank need only have U.S. citizens 
                              constitute a simple majority of the board and 
                              thus need not employ a U.S. citizen as its 
                              president. 
 
                              Two-thirds of the directors of a national 
                              bank must (a) have resided for one year prior 
                              to their election, and (b) continue to 
                              reside, in the state in which the bank is 
                              located or within 100 miles of the bank. 
           
          Phase-Out:          None 
 
 
 
 
 
 
 
 
 
 
 
 
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                                               Annex VII(A) - United States                                         
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          Sector:             Financial Services 
 
          Sub-Sector:         Banking 
 
          Industry            SIC 6021  National Commercial Banks 
          Classification:     SIC 6022  State Commercial Banks 
                              SIC 6029  Other Commercial Banks 
                              SIC 6081  Branches and Agencies of Foreign 
                                        Banks 
                              SIC 6712  Bank Holding Companies 
                                        Foreign Banks (Not Applicable) 
 
          Type of             National Treatment (Article 1405) 
          Reservation: 
 
          Level of            Federal 
          Government: 
 
          Measures:           Bank Holding Company Act of 1956, 12 U.S.C. 
                                1842(d) 
 
                              International Banking Act of 1978, 12 U.S.C.  
                                3103(a)(5) 
 
          Description:        Federal authorities may not approve the 
                              establishment of, or acquisition of an 
                              interest in, a bank subsidiary within a state 
                              ("the target state") by a foreign bank that 
                              has a full-service branch in the United 
                              States, unless the measures of the target 
                              state expressly permit such an establishment 
                              or acquisition by domestic bank holding 
                              companies with their principal place of 
                              banking operations (as that term is described 
                              under the Bank Holding Company Act) in the 
                              foreign bank's "home state" (as that term is 
                              defined in the International Banking Act).   
 
                              Federal authorities also may not approve the 
                              establishment of, or acquisition of an 
                              interest in, a bank subsidiary within a state 
                              ("the target state") by a bank holding 
                              company, including a foreign bank, that 
                              maintains its principal place of banking 
                              operations in another state, as defined under 
                              the Bank Holding Company Act, unless the 
                              measures of the target state expressly permit 
                              the establishment and acquisition by bank 
 
 
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                                               Annex VII(A) - United States                                         
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                              holding companies from the state of the 
                              company's or bank's principal place of 
                              banking operations.   
 
                              Due to these Federal measures and certain 
                              state measures, foreign banks with direct 
                              deposit-taking branches or bank subsidiaries 
                              in the United States are not permitted to 
                              establish or acquire interests in banks 
                              located in some states on the same basis as 
                              domestic bank holding companies from the 
                              state of the foreign bank's principal place 
                              of banking operations or the foreign bank's 
                              home state.  The following types of measures, 
                              among others, fall into this category:   
 
                              (a)  foreign banks are expressly excluded 
                                   from the authority to own banks under 
                                   certain regional holding company laws; 
 
                              (b)  foreign banks are implicitly excluded 
                                   from the definition of an eligible owner 
                                   under certain state laws that require a 
                                   majority of a banking company's deposits 
                                   to be in the United States, in a 
                                   particular region of the United States 
                                   or in a particular state; 
 
                              (c)  foreign banks that do not already own a 
                                   banking subsidiary in the United States 
                                   are interpreted as not qualifying as an 
                                   eligible "bank holding company" entitled 
                                   to own a bank in the United States; and 
 
                              (d)  where a foreign bank's principal place 
                                   of business is in a state which is 
                                   different from its home state and the 
                                   measures of the target state accord 
                                   better treatment to bank holding 
                                   companies from one of these states, the 
                                   foreign bank will be subject to the more 
                                   restrictive rule. 
 
          Phase-Out:          None  
 
 
 
 
 
 
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                                               Annex VII(A) - United States                                         
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          Sector:             Financial Services 
 
          Sub-Sector:         Banking 
 
          Industry            SIC 6082  Foreign Trade and International 
          Classification:               Banking Institutions 
            
          Type of             National Treatment (Article 1405) 
          Reservation: 
 
          Level of            Federal 
          Government: 
 
          Measures:           Federal Reserve Act, 12 U.S.C.   619 
 
          Description:        Edge corporations (specialized international 
                              banking companies chartered under Federal 
                              law) may be owned by domestically-owned banks 
                              and bank holding companies, and by domestic 
                              non-bank companies willing to restrict their 
                              business activities to those closely related 
                              to banking.  Foreign ownership of Edge 
                              corporations is limited to foreign banks and 
                              U.S. subsidiaries of foreign banks.  Other 
                              foreign persons may not directly or 
                              indirectly own Edge corporations. 
 
          Phase-Out:          None 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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                                               Annex VII(A) - United States                                         
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          Sector:             Financial Services 
 
          Sub-Sector:         Banking 
 
          Industry            SIC 6081  Branches of Foreign Banks 
          Classification: 
 
          Type of             National Treatment (Article 1405) 
          Reservation: 
 
          Level of            Federal 
          Government: 
 
          Measures:           International Banking Act of 1978, 12 U.S.C. 
                               3104(c) 
 
          Description:        In order to accept or maintain domestic 
                              retail deposit accounts having balances of 
                              less than $100,000, a foreign bank must 
                              establish an insured banking subsidiary.  
                              This prohibition does not apply to a foreign 
                              bank branch that was engaged in insured 
                              deposit-taking activities on December 19, 
                              1991. 
 
          Phase-Out:          None 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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                                               Annex VII(A) - United States                                         
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          Sector:             Financial Services 
 
          Sub-Sector:         Banking 
 
          Industry            SIC 6081  Branches and Agencies of Foreign 
          Classification:               Banks 
 
          Type of             National Treatment (Article 1405) 
          Reservation: 
 
          Level of            Federal 
          Government: 
 
          Measures:           Federal Reserve Act, 12 U.S.C.    221, 302, 
                              321 
 
          Description:        Foreign banks with branches or agencies in 
                              the United States may not be members of the 
                              Federal Reserve System, and thus may not vote 
                              for directors of a Federal Reserve Bank. 
 
          Phase-Out:          None 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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                                               Annex VII(A) - United States                                         
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          Sector:             Financial Services 
 
          Sub-Sector:         Banking and Securities 
 
          Industry            SIC 6021  National Commercial Banks 
          Classification:     SIC 6022  State Commercial Banks 
                              SIC 6029  Other Commercial Banks 
                              SIC 6081  Branches and Agencies of Foreign 
                                        Banks 
                              SIC 6211  Security Brokers, Dealers and 
                                        Flotation Companies 
 
          Type of             National Treatment (Article 1405) 
          Reservation:        Most-Favored-Nation Treatment (Article 1406) 
 
          Level of            Federal 
          Government: 
 
          Measures:           The Primary Dealers Act of 1988, 22 U.S.C. 
                                 5341-5342 
 
          Description:        The Primary Dealers Act of 1988 prohibits a 
                              foreign firm from being designated as a 
                              primary dealer in U.S. government debt 
                              obligations unless the home country of the 
                              foreign firm accords to U.S. firms the same 
                              competitive opportunities as are accorded to 
                              domestic firms in the underwriting and 
                              distribution of government debt instruments 
                              in the firm's home country. 
 
          Phase-Out:          None 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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                                               Annex VII(A) - United States                                         
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          Sector:             Financial Services 
 
          Sub-Sector:         Banking and Securities 
 
          Industry            SIC 6289  Services Allied with the Exchange 
          Classification:               of Securities or Commodities 
 
          Type of             Cross-Border Trade (Article 1404) 
          Reservation:        National Treatment (Article 1405) 
                              Most-Favored-Nation Treatment (Article 1406) 
                              Senior Management and Boards of Directors 
                              (Article 1408) 
 
          Level of            Federal 
          Government: 
 
          Measures:           Trust Indenture Act of 1939, 15 U.S.C. 
                                77jjj(a)(1) 
 
          Description:        Under the Trust Indenture Act of 1939, a 
                              foreign firm located outside the United 
                              States may be prohibited from acting as the 
                              sole trustee under an indenture for debt 
                              securities sold in the United States if U.S. 
                              institutional trustees cannot act as sole 
                              trustees for securities sold in the foreign 
                              firm's home country. 
 
          Phase-Out:          None 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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                                               Annex VII(A) - United States                                         
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          Sector:             Financial Services 
 
          Sub-Sector:         Banking and Securities 
 
          Industry            SIC 6211  Security Brokers, Dealers and 
          Classification:               Flotation Companies 
 
          Type of             Most-Favored-Nation Treatment (Article 1406) 
          Reservation: 
 
          Level of            Federal 
          Government: 
 
          Measures:           Securities Exchange Act of 1934, 15 U.S.C.   
                              78o(c) 
 
                              17 C.F.R.   240.15c3-3 
 
          Description:        A broker-dealer that maintains its principal 
                              place of business in Canada may maintain its 
                              required reserves at a bank in Canada subject 
                              to supervision by an authority of Canada.  A 
                              broker-dealer that maintains its principal 
                              place of business in any other foreign 
                              country must maintain reserves in the United 
                              States. 
 
          Phase-Out:          None 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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                                               Annex VII(A) - United States                                         
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          Sector:             Financial Services 
 
          Sub-Sector:         Commodity Futures and Options  
 
          Industry            SIC 6221  Commodity Contracts Broker and 
          Classification:               Dealers 
                              SIC 6231  Commodity Exchanges 
                              SIC 6282  Investment Advice 
                              SIC 6289  Services Allied with the Exchange 
                                        of Commodities 
 
          Type of             Cross-Border Trade (Article 1404) 
          Reservation:        New Financial Services and Data Processing 
                              (Article 1407) 
 
          Level of            Federal 
          Government: 
 
          Measures:           Commodity Exchange Act, 7 U.S.C.    2, 13-1 
 
          Description:        Federal law prohibits the offer or sale of 
                              futures contracts on onions, options 
                              contracts on onions and options on futures 
                              contracts on onions in the United States and 
                              services related thereto. 
 
          Phase-Out:          None 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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                                               Annex VII(A) - United States                                         
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          Sector:             Financial Services 
 
          Sub-Sector:         Insurance 
 
          Industry            SIC 6351  Surety Insurance 
          Classification: 
 
          Type of             Cross-Border Trade (Article 1404) 
          Reservation:        National Treatment (Article 1405) 
 
          Level of            Federal 
          Government: 
 
          Measures:           31 U.S.C.   9304 
 
          Description:        Branches of foreign insurance companies are 
                              not permitted to provide surety bonds for 
                              U.S. Government contracts. 
 
          Phase-Out:          None 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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                                               Annex VII(A) - United States                                         
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          Sector:             Financial Services 
 
          Sub-Sector:         Banking and Securities 
 
          Industry            SIC 6081  Branches and Agencies of Foreign 
          Classification:     Banks 
                              SIC 6282  Investment Advice 
 
          Type of             National Treatment (Article 1405) 
          Reservation: 
 
          Level of            Federal 
          Government: 
 
          Measures:           Investment Advisers Act of 1940, 15 U.S.C.    
                              80b-2, 80b-3 
 
          Description:        Foreign banks are required to register as 
                              investment advisers under the Investment 
                              Advisers Act of 1940 to engage in securities 
                              advisory services in the United States, while 
                              domestic banks are exempt from registration. 
 
          Phase-Out:          None 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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                                               Annex VII(B) - United States                                          
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                                      Annex VII 
                            Schedule of the United States 
                                      Section B 
 
 
               With respect to Canada, the United States reserves the right 
          to adopt any measure relating to cross-border trade in securities 
          services that derogates from Article 1404(1) or 1406. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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                                               Annex VII(C) - United States                                          
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                                      Annex VII 
                            Schedule of the United States 
                                      Section C 
 
 
               The United States commits to permit an eligible grupo 
          financiero that, in formation of the grupo in Mexico before the 
          date of entry into force of this Agreement, lawfully acquires an 
          eligible Mexican bank and a Mexican securities firm which owns or 
          controls a securities company in the United States, to continue 
          to engage through the U.S. securities company in the activities 
          in which that securities company was engaged on the date of 
          acquisition by the grupo for a time period of five years from the 
          date of that acquisition.  The U.S. securities company:   
 
               (a)  shall not be permitted to expand through acquisition in 
                    the United States during such period; and 
 
               (b)  shall be subject to measures consistent with national 
                    treatment that restrict transactions between the 
                    company and its affiliates.   
 
          For purposes of this Section:  an "eligible grupo financiero" is 
          a Mexican financial group that has not previously benefitted from 
          this commitment; and an "eligible Mexican bank" means any Mexican 
          instituci n de cr dito that owned or controlled a subsidiary 
          bank, or operated a branch or agency, in the United States on 
          January 1, 1992. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                       VII-U-14  
 
 
 
 
 
 
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