ANNEX I

1. The Schedule of a Party sets out the reservations taken by

that Party, pursuant to Articles 1108(1) and 1206(2), with respect

to existing, non-conforming measures that derogate from an

obligation relating to:

(a) national treatment, pursuant to Article 1102 (Investment)

or 1202 (Services);

(b) most-favored-nation treatment, pursuant to Article 1103

(Investment) or 1203 (Services);

(c) local presence, pursuant to Article 1205 (Services);

(d) performance requirements, pursuant to Article 1106

(Investment); or

(e) nationality requirements for senior management or members

of boards of directors, pursuant to Article 1107

(Investment).

2. Each reservation sets out the following elements (ftnt 1):

(a) SECTOR refers to the general sector in which the

reservation is taken;

(b) SUB-SECTOR refers to the specific sector in which the

reservation is taken;

(c) INDUSTRY CLASSIFICATION refers to the activity, where

applicable, covered by the reservation according to

domestic industry classification codes;

(d) TYPE OF RESERVATION specifies the obligation referred to

in paragraph 1 for which a reservation is taken;

(e) LEVEL OF GOVERNMENT indicates the level of government

maintaining the measure for which the Party is taking the

reservation;

(f) LEGAL CITATION identifies the specific existing measures,

where applicable, for which the reservation is taken;

(ftnt 2)

(g) DESCRIPTION describes the non-conforming aspects of the

existing measures for which the reservation is taken and,

where applicable, commitments for liberalization upon

entry into force of this Agreement; and

(h) DURATION sets out the period for which the reservation is

taken and the phase-in of commitments for liberalization.

3. In the interpretation of a reservation, all elements of the

reservation should be considered. Where the DURATION does not

provide for liberalization, the LEGAL CITATION shall govern to the

extent of any inconsistency with any other element. Where the

DURATION provides for liberalization upon or after entry into force

of this Agreement, the DURATION shall govern to the extent of any

inconsistency with any other element.

4. Where a Party maintains a measure that requires that a service

provider be a citizen, permanent resident or resident of its

territory as a condition to the provision of a service in its

territory, a reservation for Articles 1202, 1203 or 1205 taken with

respect to that measure shall operate as a reservation for Articles

1102 or 1103 with respect to the effect of that measure on the

ability of the service provider to establish an investment.

5. For purposes of this Annex:

CMAP means Clasificación Mexicana de Actividades y Productos;

concession means an authorization provided by the State to a person

to exploit a natural resource or provide a service, for which

Mexican nationals and Mexican enterprises are granted priority over

foreigners;

CPC means Central Product Classification numbers as set out in

Statistical Office of the United Nations, Statistical Papers,

Series M, No. 77, Provisional Central Product Classification,

1991;

foreigners' exclusion clause means the express provision in an

enterprise's by-laws, stating that the enterprise shall not allow

foreigners, directly or indirectly, to become partners or

shareholders of the enterprise;

international cargo means goods that have an origin or destination

outside the territory of a Party;

Mexican enterprise means an enterprise constituted under the laws

of Mexico;

Mexican national means a national of Mexico, as defined by the

Constitution of Mexico;

person of a Party means a national or an enterprise of a Party; and

SIC means:

(a) with respect to Canada, Standard Industrial

Classification (SIC) numbers as set out in Statistics

Canada, Standard Industrial Classification, fourth

edition, 1980; and

(b) with respect to the United States, Standard Industrial

Classification (SIC) numbers as set out in the United

States Office of Management and Budget, Standard

Industrial Classification Manual, 1987.

FOOTNOTE 1: The reservations are current as of September 5, 1992.

The three delegations understand that where a Party adopts

liberalizing measures prior to the date of entry into force of this

Agreement, such measures will be considered to be existing

measures.

FOOTNOTE 2: The three delegations are considering the need for

inclusion of language to the effect that measures set out in the

LEGAL CITATION shall be deemed to include existing administrative

decisions, interpretations and practices pursuant to the measure

cited.