ANNEX I

Schedule of Canada

SECTOR: Agriculture

SUB-SECTOR:

INDUSTRY CLASSIFICATION:

TYPE OF RESERVATION: National Treatment (Article 1102)

LEVEL OF GOVERNMENT: Federal

LEGAL CITATION: Farm Credit Act, R.S.C. 1985, c. F-2

as amended by R.S.C. 1985, c. 1 (4th

Supp.); S.C. 1991, c. 5, 53

Farm Credit Regulations, C.R.C. 1978,

c. 644 as amended by SOR/81-560;

SOR/82-495; SOR/83-198

DESCRIPTION: Investment

Loans by the Farm Credit Corporation

may be made only to:

(a) individuals who are Canadian

citizens or permanent residents;

(b) farming corporations controlled

by Canadian citizens or permanent

residents; or

(c) cooperative farm associations,

all of whose members are Canadian

citizens or permanent residents.

DURATION: Indeterminate

=============================================================================

ANNEX I

Schedule of Canada

SECTOR: All Sectors

SUB-SECTOR:

INDUSTRY CLASSIFICATION:

TYPE OF RESERVATION: National Treatment (Article 1102)

Performance Requirements (Article 1106)

Senior Management (Article 1107)

LEVEL OF GOVERNMENT: Federal

LEGAL CITATION: Investment Canada Act, R.S.C. 1985, c.

28, as amended by S.C.1988, c. 65

Investment Canada Regulations,

SOR/85-611, as amended by SOR/189-69

An Act to Amend the Investment Canada

Act, (Bill C-89, introduced in

Parliament on 18 June 1992)

DESCRIPTION: Investment

1. Under the Investment Canada Act,

the following acquisitions of Canadian

businesses by "non-Canadians" are

subject to review by Investment

Canada:

(1) all direct acquisitions of

Canadian businesses with assets

of $5 million or more;

(2) all indirect acquisitions of

Canadian businesses with assets

of $50 million or more; and

(3) indirect acquisitions of Canadian

businesses with assets between $5

million and $50 million which

represent more than 50 percent of

the value, calculated in the

prescribed manner, of the assets

of all the entities the control

of which is being acquired,

directly or indirectly, in the

transaction in question.

2. "Canadian business", "Canadian"

and "non-Canadian" are defined in the

Investment Canada Act. A "non-

Canadian" is an individual, government

or agency thereof or an entity which

is not "Canadian".

3. In addition, specific

acquisitions or new businesses in

designated types of business

activities related to Canada's

cultural heritage or national

identity, which are normally

notifiable, may be reviewed if the

Governor in Council authorizes a

review in the public interest.

4. Investments subject to review

under the Investment Canada Act are

not to be implemented unless the

Minister responsible for the

Investment Canada Act advises the

applicant that the investment is

likely to be of net benefit to Canada.

Such a determination is made in

accordance with six factors described

in the Act.

5. These factors are summarized as

follows:

(a) the effect of the investment on

the level and nature of economic

activity in Canada, including the

effect on employment, on the

utilization of parts, components

and services produced in Canada,

and on exports from Canada;

(b) the degree and significance of

participation by Canadians in the

investment;

(c) the effect of the investment on

productivity, industrial

efficiency, technological

development and product

innovation in Canada;

(d) the effect of the investment on

competition within any industry

or industries in Canada;

(e) the compatibility of the

investment with national

industrial, economic and cultural

policies, taking into

consideration industrial,

economic and cultural policy

objectives enunciated by the

government or legislature of any

province likely to be

significantly affected by the

investment; and

(f) the contribution of the

investment to Canada's ability to

compete in world markets.

6. In making a net benefit

determination, the Minister, through

Investment Canada, may review plans

under which the applicant demonstrates

the net benefit to Canada of the

proposed acquisition. An applicant

may also submit undertakings to the

Minister in connection with any

proposed acquisition which is the

subject of review. In the event of

noncompliance with an undertaking by

an applicant, the Minister may seek a

court order directing compliance or

any other remedy authorized under the

Act.

7. The establishment or acquisition

of Canadian businesses by non-

Canadians, other than those described

above, are to be notified to the

agency administering the Act,

Investment Canada.

8. Review of "acquisition of

control", as defined in the Investment

Canada Act, of a Canadian business by

an American or Mexican will take place

if the value of the gross assets of

the Canadian business is not less than

the applicable thresholds, effective

on the date of entry into force of

this Agreement and adjusted on each

anniversary thereof. The calculation

of the applicable review threshold is

set out in the Duration section below.

9. The review threshold applicable

to American and Mexican investors is

higher than those set out above.

However, this higher review threshold

does not apply in the following

sectors: uranium production and

ownership of uranium producing

properties; oil and gas; financial

services; transportation services and

cultural businesses.

10. Indirect "acquisitions of

control", as defined in the Investment

Canada Act, of Canadian businesses by

"American" and "Mexican" investors are

not reviewable. Notwithstanding the

definition of "investor of a Party" in

Chapter Eleven, only investors who are

nationals, or entities controlled by

nationals, (as defined in the

Investment Canada Act) of the United

States or Mexico, may benefit from the

higher review threshold.

11. Notwithstanding Article 1106(1),

Canada reserves the right to impose

requirements, or enforce any

commitment or undertaking, in

connection with the establishment,

acquisition, expansion, conduct or

operation of an investment of an

investor of another Party for the

transfer of technology, production

process or other proprietary knowledge

to a national or enterprise,

affiliated to the transferor, in

Canada, in connection with the review

of an acquisition of an investment

pursuant to the Investment Canada Act.

12. Except for requirements,

commitments or undertakings related to

technology transfer as set out above,

Article 1106(1) shall apply to

requirements, commitments or

undertakings imposed or enforced under

the Investment Canada Act. However,

Article 1106(1) shall not be construed

to apply to any requirement,

commitment or undertaking imposed or

enforced in connection with a review

under the Investment Canada Act, to

locate production, carry out research

and development, employ or train

workers, or to construct or expand

particular facilities, in Canada.

DURATION: Paragraphs 10, 11 and 12 of the

Description setting out Canada's

reservations and commitments with

respect to Articles 1102, 1106(1),

and 1138 shall govern.

For American and Mexican investors,

the applicable threshold for the

review of a direct acquisition of

control of a Canadian business shall

be:

(a) for the twelve month period

commencing on the date of entry

into force of this Agreement,

such monetary amount as

determined in accordance with

Annex 1607.3 of the Canada-United

State Free Trade Agreement;

(b) commencing on the first

anniversary of the date of entry

into force of this Agreement, the

monetary amount for the preceding

year multiplied by an annual

adjustment representing the

increase in nominal Gross

Domestic Product, as set out

below.

The calculation of the annual

adjustment shall be determined in

January of each year after 1994 using

the most recently available data as

published by Statistics Canada and

using the following formula:

Ann ual Adjustment =

Current nominal GDP at market

prices

---------------------------------

----------------------Previous

year nominal GDP at market prices

"Current nominal GDP at market prices"

means the arithmetic mean of the

nominal Gross Domestic Product at

market prices for the most recent four

consecutive quarters (seasonally

adjusted at annual rates).

"Previous year nominal GDP at market

prices" means the arithmetic mean of

the nominal Gross Domestic Product at

market prices for the four consecutive

quarters (seasonally adjusted at

annual rates) for the comparable

period in the year preceding the year

used in calculating the "current

nominal GDP at market prices".

The amounts determined in this manner

shall be rounded to the nearest

million dollars.

=============================================================================

ANNEX I

Schedule of Canada

SECTOR: All Sectors

SUB-SECTOR:

INDUSTRY CLASSIFICATION:

TYPE OF RESERVATION: National Treatment (Article 1102)

Senior Management (Article 1107)

LEVEL OF GOVERNMENT: Federal

Provincial

LEGAL CITATION:

DESCRIPTION: Investment

When selling or disposing of its

equity interests in, or the assets of,

an existing state enterprise or an

existing governmental entity, Canada

and each province reserve the right to

prohibit or impose limitations on the

ownership of such interests or assets,

and on the ability of owners of such

interests or assets to control any

resulting enterprise, by investors of

another Party or non-Party or their

investments. In addition, Canada and

each province reserve the right to

adopt or maintain any measure relating

to the nationality of senior

management or members of the board of

directors.

For the purposes of this reservation:

(a) any measure maintained, or

adopted after the entry into

force of this Agreement,

prohibiting or imposing

limitations on the ownership of

equity interests or assets or

nationality requirements

described in this reservation

shall be deemed to be an existing

measure; and

(b) "state enterprise" means an

enterprise owned or controlled

through ownership interests by

Canada or a province and includes

an enterprise established after

the date of entry into force of

this Agreement solely for the

purposes of selling or disposing

of equity interests in, or the

assets of, an existing state

enterprise or governmental

entity.

DURATION:

The Description shall govern on entry

into force of this Agreement.

Indeterminate.

=============================================================================

ANNEX I

Schedule of Canada

SECTOR: All Sectors

SUB-SECTOR:

INDUSTRY CLASSIFICATION:

TYPE OF RESERVATION: National Treatment (Article 1102)

LEVEL OF GOVERNMENT: Federal

LEGAL CITATION: Canada Business Corporations Act,

R.S.C. 1985, C. I-44, as amended by

R.S.C. 1985, c. 27 (2nd Supp.), R.S.C.

1985, c. 1 (4th Supp.); S.C. 1990, c.

17; S.C. 1991, c. 45, 46, 47

Canada Corporations Act, R.S.C. 1970,

C. C-32, as amended by R.S.C. 1970, c.

C-10 (1st Supp.); S.C. 1970-71-72, c.

43, 63; S.C. 1972, c. 17; S.C.

1974-75-76, c. 33; S.C. 1978-79, c.

11; S.C. 1985, c. 26; S.C. 1986, c.

26, 35

Canada Business Corporations Act

Regulations SOR/79-316, as amended by

SOR/79-513, SOR/79-728, SOR/80-873,

SOR/81-3, SOR/81-189, SOR/81-868,

SOR/82-187, SOR/83-511, SOR/83781,

SOR/83-817, SOR/85-384, SOR/86-365,

SOR/86-366, SOR/86-421, SOR/86-983,

SOR/87-248, SOR/87-629, SOR/8863,

SOR/88-491, SOR/89-159, SOR/89-323,

SOR/90-660, SOR/91-567

DESCRIPTION: Investment

The cited laws and regulations permit

constraints to be placed on issue,

transfer and ownership of shares in

federally incorporated business

corporations. The object is to permit

corporations to meet Canadian

ownership requirements, under certain

laws as prescribed in the regulations,

in sectors where such ownership is

required as a condition to operate.

In order to maintain certain

"Canadian" ownership levels,

corporations are permitted to sell

shareholders' shares without the

consent of those shareholders, and to

purchase the corporation's own shares

on the open market. "Canadian" is

defined in the regulations.

DURATION:

Indeterminate

=============================================================================

ANNEX I

Schedule of Canada

SECTOR: All Sectors

SUB-SECTOR:

INDUSTRY CLASSIFICATION:

TYPE OF RESERVATION: Senior Management (Article 1107)

LEVEL OF GOVERNMENT: Federal

LEGAL CITATION: Canada Business Corporations Act,

R.S.C. 1985, c. I-44 as amended R.S.C.

1985, c. 27 (2nd Supp.), R.S.C. 1985,

c. 1 (4th Supp.); S.C. 1990, c. 17;

S.C. 1991, c. 45, 46, 47

Canada Business Corporations Act

Regulations, SOR/79-316, as amended

SOR/79-513, SOR/79-728, SOR/80-873,

SOR/81-3, SOR/81-189, SOR/81-868,

SOR/82-187, SOR/83-511, SOR/83-781,

SOR/83-817, SOR/85-384, SOR/86-365,

SOR/86-366, SOR/86-421, SOR/86-983,

SOR/87-248, SOR/87-629, SOR/88-63,

SOR/88-491, SOR/89-159, SOR/89-323,

SOR/90-660, SOR/91-567

Canada Corporations Act, R.S.C. 1970,

c. C-32

Special Acts of Parliament

incorporating specific companies

DESCRIPTION: Investment

The Canada Business Corporations Act

requires that a simple majority of

members of the board of directors, or

of a committee thereof, of a

federally-incorporated company must be

resident Canadians. For the purposes

of the Act the term "resident

Canadian" is defined as an individual

who is a Canadian citizen ordinarily

resident in Canada, a citizen who is a

member of a class as set out in the

regulations, or a permanent resident

as defined in the Immigration Act

except a person who has been

ordinarily resident in Canada for more

than one year after he became eligible

to apply for Canadian citizenship.

In the case of a holding corporation,

not more than 1/3 of the directors

need be resident Canadians if the

earnings in Canada of the holding

corporation and its subsidiaries are

less than 5% of the gross earnings of

the holding corporation and its

subsidiaries.

Under the Canada Corporations Act, a

simple majority of the elected

directors of a Special Act corporation

must be residents of Canada and

citizens of a Commonwealth country.

This requirement applies to every

joint stock company incorporated

subsequent to 22 June 1869 by any

Special Act of Parliament and any

subsequent amendments to such Acts.

DURATION: Indeterminate

=============================================================================

ANNEX I

Schedule of Canada

SECTOR: All Sectors

SUB-SECTOR:

INDUSTRY CLASSIFICATION:

TYPE OF RESERVATION: National Treatment (Article 1102)

LEVEL OF GOVERNMENT: Federal

LEGAL CITATION: Citizenship Act, R.S.C. 1985, c. C-29

as amended by R.S.C. 1985 c. 28 (1st

Supp.); c. 30 (3rd Supp.); c. 44 (3rd

Supp.); c. 28 (4th Supp.)

Foreign Ownership of Land Regulations,

SOR/79-416; SOR/79-514; SOR/80-156;

SOR/82-544

DESCRIPTION: Investment

Under the Citizenship Act, a province

is authorized to prohibit or restrict

acquisitions of real property located

in that province by non-Canadians.

The Foreign Ownership of Land

Regulations are made pursuant to the

Citizenship Act and the Alberta

Agricultural and Recreational Land

Ownership Act. In Alberta, an

ineligible person or foreign owned or

controlled corporation may only hold

an interest in controlled land

consisting of not more than 2 parcels

containing, in the aggregate, not more

than 20 acres. An "ineligible

person" is (1) an individual who is

not a Canadian citizen or permanent

resident; (2) a foreign government or

agency thereof; or (3) a corporation

incorporated elsewhere than in Canada.

"Controlled land" means land in

Alberta but does not include (1) land

other than land owned by the Crown;

(2) land within a city, town, new

town, village, or summer village and

(3) mines or minerals.

DURATION: Indeterminate

=============================================================================

ANNEX I

Schedule of Canada

SECTOR:

SUB-SECTOR:

INDUSTRY CLASSIFICATION:

TYPE OF RESERVATION: National Treatment (Article 1102)

LEVEL OF GOVERNMENT: Federal

LEGAL CITATION: Air Canada Public Participation Act,

R.S.C. 1985, c. 35 (4th Supp.)

Canada Development Corporation

Reorganization Act, S.C. 1985, c. 49

Petro-Canada Public Participation Act,

S.C. 1991, c. 10

Canadian Arsenals Limited Divestiture

Authorization Act, S.C. 1986, c. 20

Cooperative Energy Act, S.C.

1980-81-82-83, c. 108

Eldorado Nuclear Limited

Reorganization and Divestiture Act,

S.C. 1988, c. 41

Nordion and Theratronics Divestiture

Authorization Act, S.C. 1990, c. 4

DESCRIPTION: Investment

Non-residents may not own more than a

specified percentage of the voting

shares of the corporation to which

each Act applies. For each company the

restrictions are as follows:

Air Canada: 25%

Canada Development Corporation: 25%

Petro-Canada Inc: 25%

Canadian Arsenals Limited: 25%

Eldorado Nuclear Limited: ownership

not restricted but voting rights

restricted to 25% of votes cast at

meetings

Nordion Limited: 25%

Theratronics Limited: 49%

Cooperative Energy Corporation: 49%

Non-resident is defined in the cited

laws to generally mean:

(a) an individual, other than a

Canadian citizen, who is not

ordinarily resident in Canada;

(b) a corporation incorporated,

formed or otherwise organized

outside Canada;

(c) the government of a foreign state

or any political subdivision

thereof, or a person empowered to

perform a function or duty on

behalf of such a government;

(d) a corporation that is controlled

directly or indirectly by

non-residents as defined in any

of paragraphs (a) to (c);

(e) a trust (i) established by a

non-resident as defined in any of

paragraphs (b) to (d), other than

a trust for the administration of

a pension fund for the benefit of

individuals a majority of whom

are residents, or (ii) in which

non-residents as defined in any

of paragraphs (a) to (d) have

more than fifty per cent of the

beneficial interest; or

(f) a corporation that is controlled

directly or indirectly by a trust

described in paragraph (e).

DURATION: Indeterminate

=============================================================================

ANNEX I

Schedule of Canada

SECTOR: All Sectors

SUB-SECTOR:

INDUSTRY CLASSIFICATION:

TYPE OF RESERVATION: Local Presence (Article 1205)

LEVEL OF GOVERNMENT: Federal

LEGAL CITATION: Export and Import Permits Act, R.S.C.,

1985, c. E-19

DESCRIPTION: Cross-Border Services

Only natural persons ordinarily

resident in Canada, enterprises having

their head office in Canada or branch

offices in Canada of a foreign

enterprise may apply for and be issued

import or export permits or a transit

authorization certificate for goods

and related services subject to

controls pursuant to regulations of

the Export and Import Permits Act.

DURATION: Indeterminate

=============================================================================

ANNEX I

Schedule of Canada

SECTOR: Automotive

SUB-SECTOR:

INDUSTRY CLASSIFICATION:

TYPE OF RESERVATION:

LEVEL OF GOVERNMENT: Performance Requirements (Article 1106)

Federal

LEGAL CITATION: Canada-United-States Free Trade

Agreement Implementation Act

DESCRIPTION: Investment

Article 1106(3) shall not apply to the

granting of waivers of customs duties

conditioned, explicitly or implicitly,

upon the fulfillment of performance

requirements by those manufacturers of

automotive goods:

(a) set out in Part One of Annex

1002.1 of the Canada - United-

States Free Trade Agreement, in

accordance with the headnote to

that Part; and

(b) for the applicable periods

specified in Article 1002(2) and

(3) of the Canada - United-States

Free Trade Agreement to those

manufacturers of automotive goods

set out in Parts Two and Three,

respectively, of Annex 1002.1 of

that Agreement.

DURATION: (a) Indeterminate

(b) For Part Two, until January 1,

1998; and for Part Three, until

January 1, 1996 or such earlier

date specified in existing

agreements between Canada and the

recipient of the waiver.

=============================================================================

ANNEX I

Schedule of Canada

SECTOR: Business Service Industries

SUB-SECTOR: Customs Brokerages and Brokers

INDUSTRY CLASSIFICATION: SIC 7794 Customs Brokerages and Brokers

TYPE OF RESERVATION: National Treatment (Articles 1102, 1202)

Local Presence (Article 1205)

Senior Management (Article 1107)

LEVEL OF GOVERNMENT: Federal

LEGAL CITATION: Customs Act, R.S.C., 1985, c. 41 (2nd Supp.)

Customs Brokers Licensing Regulations,

SOR/86-1067

DESCRIPTION: Cross-Border Services and Investment

1. To be a licensed customs broker

in Canada, an individual must be a

Canadian citizen or permanent

resident.

2. To be a licensed customs

brokerage in Canada:

(a) a corporation must be

incorporated in Canada with a

majority of its directors being

Canadian citizens or permanent

residents; and

(b) a partnership must be composed of

persons who are Canadian citizens

or permanent residents, or

corporations incorporated in

Canada with a majority of their

directors being Canadian citizens

or permanent residents.

DURATION: Indeterminate

=============================================================================

ANNEX I

Schedule of Canada

SECTOR: Business Service Industries

SUB-SECTOR: Duty Free Shops

INDUSTRY CLASSIFICATION: SIC 6599 Other Retail Stores, Not

Elsewhere Classified

TYPE OF RESERVATION: National Treatment (Articles 1102, 1202)

Local Presence (Article 1205)

LEVEL OF GOVERNMENT: Federal

LEGAL CITATION: Customs Act, R.S.C., 1986, c.1 (2nd Supp.)

Duty Free Shop Regulations,

SOR/86-1072, as amended

DESCRIPTION: Cross-Border Services and Investment

1. To be a licensed duty free shop

operator at a land border crossing in

Canada, an individual must:

(a) be a Canadian citizen or

permanent resident;

(b) be of good character;

(c) be principally resident in

Canada; and

(d) have resided in Canada for at

least 183 days of the year

preceding the year of application

for the licence.

2. To be a licensed duty free shop

operator at a border crossing in

Canada, a corporation must:

(a) be incorporated in Canada; and

(b) have all of its shares

beneficially owned by Canadian

citizens or permanent residents

who meet the requirements of

paragraph 1.

DURATION: Indeterminate

=============================================================================

ANNEX I

Schedule of Canada

SECTOR: Business Service Industries

SUB-SECTOR: Examination Services relating to the

Export and Import of Cultural Property

INDUSTRY CLASSIFICATION: SIC 990 Other Services

TYPE OF RESERVATION: Local Presence (Article 1205)

LEVEL OF GOVERNMENT: Federal

LEGAL CITATION: Cultural Property Export and Import

Act, R.S.C. 1985, c. C-51

DESCRIPTION: Cross-Border Services

For purposes of the Cultural Property

Export and Import Act an "expert

examiner" of cultural property must be

either a natural person who ordinarily

resides in Canada or a corporation

that has its head office in Canada or

maintains one or more establishments

in Canada to which employees employed

in connection with the business of the

corporation ordinarily report for

work.

DURATION: Indeterminate

=============================================================================

ANNEX I

Schedule of Canada

SECTOR: Business Service Industries

SUB-SECTOR: Patent Agents and Agencies

INDUSTRY CLASSIFICATION: SIC 7499 Other Financial

Intermediaries, Not

Elsewhere Classified

(Limited to Holders of

Intellectual Property

Rights)

TYPE OF RESERVATION: National Treatment (Article 1202)

Local Presence (Article 1205)

LEVEL OF GOVERNMENT: Federal

LEGAL CITATION: Patent Act, R.S.C., 1985, c. P-4

Patent Rules, CRC, Vol. XIII, c. 1250,

p.10053

Patent Cooperation Treaty Regulations,

SOR/89-453

DESCRIPTION: Cross-Border Services

1. To be able to represent persons

in the presentation and prosecution of

applications for patents or in other

business before the Patent Office, a

patent agent must be a resident of

Canada and registered by the Patent

Office.

2. To prosecute an application for a

patent in Canada a registered patent

agent who is not a resident of Canada

must appoint a registered patent agent

who is a resident of Canada as an

associate to prosecute the

application.

3. Any firm may be added to the

patent register provided that it has

at least one member who is also on the

register.

DURATION: Indeterminate

=============================================================================

ANNEX I

Schedule of Canada

SECTOR: Business Service Industries

SUB-SECTOR: Trade-Mark Agents

INDUSTRY CLASSIFICATION: SIC 7499 Other Financial

Intermediaries, Not

Elsewhere Classified

(Limited to Holders of

intellectual Property

Rights)

TYPE OF RESERVATION: National Treatment (Article 1202)

Most-Favored-Nation Treatment (Article 1203)

Local Presence (Article 1205)

LEVEL OF GOVERNMENT: Federal

LEGAL CITATION: Trade-Marks Act, R.S.C., 1985, c. T-13

Trade-Marks Regulations, CRC, Vol.

XVIII, c. 1559, p. 13803, as amended

DESCRIPTION: Cross-Border Services

1. To be able to represent persons

in the presentation and prosecution of

applications for trade-marks or in

other business before the Trade-Mark

Office, a trade-mark agent must be a

resident of Canada and registered by

the Trade-Mark Office.

2. To prosecute an application for a

trade-mark in Canada, a registered

trade-mark agent who is not resident

in Canada must appoint a registered

trade-mark agent who is resident in

Canada as an associate to prosecute

the application.

3. Trade-mark agents who reside, and

are registered (in good standing), in

a Commonwealth country or the United

States may be added to the register of

trade-mark agents.

DURATION: Indeterminate

=============================================================================

ANNEX I

Schedule of Canada

SECTOR: Energy

SUB-SECTOR: Oil and Gas

INDUSTRY CLASSIFICATION: [To be provided]

TYPE OF RESERVATION: National Treatment (Article 1102)

LEVEL OF GOVERNMENT: Federal

LEGAL CITATION: Canada Petroleum Resources Act, R.S.C.

1985, c. 36 (2nd Supp.) as amended by

R.S.C. 1985, c. 21 (4th Supp.), S.C.

1990, c. 8, 41., S.C. 1991, c. 10

(partly in force), 24 (not in force),

46 (not in force)

Territorial Lands Act, R.S.C. 1985,

c.T-7 as amended by R.S.C. 1985, c. 7

(3rd Supp.)(partly in force); S.C.

1991, c. 2, 24 (not in force), 50 (not

in force)

Public Lands Grants Act, R.S.C. 1985,

c. P-30 as amended R.S.C. 1985, c. 13

(1st Supp.); S.C. 1991, c. 24 (not in

force). Act repealed S.C. 1991, c. 50

(repealing legislation not in force)

Canada-Newfoundland Atlantic Accord

Implementation Act, S.C. 1987, c. 3 as

amended by S.C. 1988, c. 28, S.C.

1990, c. 41; S.C. 1991, c. 46 (not in

force), 49, 50 (not in force)

Canada-Nova Scotia Offshore Petroleum

Resources Accord Implementation Act,

S.C. 1988, c. 28 as amended by S.C.

1990, c. 28, 41; S.C. 1991, c. 46 (not

in force), 49, 50 (not in force)

Canada Oil and Gas Land Regulations,

C.R.C. c. 1518 as amended SOR/80-590;

SOR/82-663; SOR/89-144

DESCRIPTION: Investment

Canadian legislation contains certain

qualifications for holders of oil and

gas production licenses for

discoveries made after March 5, 1982.

These qualifications ensure that

holders of such licenses, or shares

therein, are Canadian citizens

ordinarily resident in Canada,

permanent residents or corporations

incorporated in Canada.

Notwithstanding qualification to hold

a production license, no production

license shall be issued for

discoveries made after March 5, 1982

unless the Minister of Energy, Mines

and Resources is satisfied that the

Canadian ownership rate of the

interest-owner in relation to the

production license on the date of

issuance would not be less than 50%.

"Interest-owner" is defined in the

Canada Petroleum Resources Act to mean

"an interest holder who holds the

interest or a group of interest

holders who hold all the shares of the

interest".

With respect to production licenses

for discoveries made prior to March 5,

1982, the Canadian ownership

requirements are as set out in the

Canada Oil and Gas Land Regulations.

These qualifications and Canadian

ownership requirements are in respect

of production licenses issued on

"frontier lands" and the "offshore

areas" (areas not under provincial

jurisdiction) as defined in the

legislation.

DURATION: Indeterminate

=============================================================================

ANNEX I

Schedule of Canada

SECTOR: Energy

SUB-SECTOR: Uranium

INDUSTRY CLASSIFICATION: [To be provided]

TYPE OF RESERVATION: National Treatment (Article 1102)

Most-Favored-Nation Treatment

(Article 1103)

LEVEL OF GOVERNMENT: Federal

LEGAL CITATION: Investment Canada Act, R.S.C. 1985, c.

28, as amended by S.C.1988, c.65

Investment Canada Regulations, SOR/85-

611 as amended by SOR/189-69

An Act to Amend the Investment Canada

Act, (Bill C-89, introduced in

Parliament on 18 June 1992)

Policy on Non-resident Ownership in

the Uranium Mining Sector, 1987

DESCRIPTION: Investment

Non-resident ownership of a uranium

mining property is limited to 49% at

the stage of first production.

Exceptions to this limit may be

permitted if it can be established

that the property is in fact

Canadian-controlled as defined in the

Investment Canada Act.

Exemptions from the policy are

allowed, subject to Cabinet approval,

only in cases where Canadian

participants in the ownership of the

property cannot be found. Investments

in properties by "non-Canadians", as

defined in the Investment Canada Act,

prior to December 23, 1987, beyond the

permitted ownership level, are allowed

to remain in place; however no

increase in non-Canadian ownership is

permitted.

DURATION: Indeterminate

=============================================================================

ANNEX I

Schedule of Canada

SECTOR: Fisheries

SUB-SECTOR: Fish Harvesting and Processing

INDUSTRY CLASSIFICATION: [To be provided]

TYPE OF RESERVATION: National Treatment (Article 1102)

Most-Favored-Nation Treatment (Article 1103)

LEVEL OF GOVERNMENT: Federal

LEGAL CITATION: Coastal Fisheries Protection Act,

R.S.C. 1985, c. C-33 as amended by

R.S.C. 1985, c. 31 (1st Supp.); R.S.C.

1985, c. 39 (2nd Supp.); S.C. 1990, c.

44

Fisheries Act, R.S.C. 1985, c. F-14 as

amended by R.S.C. 1985, c. 31 (1st

Supp.); R.S.C. 1985, c. 35 (1st

Supp.); R.S.C. 1985, c. 40 (4th

Supp.); S.C. 1990, c. 16; S.C. 1990,

c. 17

Policy on Foreign Investment in the

Canadian Fisheries Sector, 1985

Commercial Fisheries Licensing Policy

Coastal Fisheries Protection

Regulations, C.R.C., 1978, c. 413

DESCRIPTION: Investment

Under the Coastal Fisheries Protection

Act, "foreign" fishing vessels are

prohibited from entering Canada's 200

mile fishing zone except under

authority of a license or under

treaty. "Foreign" vessels are those

which are not "Canadian" as defined in

the Coastal Fisheries Protection Act.

Under the Fisheries Act, The Minister

of Fisheries and Oceans has a

discretionary authority with respect

to the issuance of licenses.

Fish processing companies which have a

foreign ownership level of more than

49% are prohibited from holding

Canadian commercial fishing licenses.

DURATION: Indeterminate

=============================================================================

ANNEX I

Schedule of Canada

SECTOR: Fisheries

SUB-SECTOR: Fishing-Related Services

INDUSTRY CLASSIFICATION: SIC 032 Services Incidental to Fishing

TYPE OF RESERVATION: National Treatment (Article 1202)

Most-Favored-Nation Treatment (Article 1203)

LEVEL OF GOVERNMENT: Federal

LEGAL CITATION: Coastal Fisheries Protection Act,

R.S.C., 1985, c. C-33

DESCRIPTION: Cross-Border Services

Under the Coastal Fisheries Protection

Act, the Department of Fisheries and

Oceans is responsible for controlling

the activities of foreign fishing

vessels in Canada's Exclusive

Fisheries Zone (EFZ), including access

to Canadian ports (port privileges).

In general, the Department grants such

port privileges, including the

purchase of fuel and supplies, ship

repair, crew exchanges and

transshipment of fish catches, only to

fishing vessels from countries with

which it has favorable fishery

relations, based primarily on

adherence by the foreign country to

Canadian and international

conservation practices and policies.

Exceptions to this general rule are

allowed in cases of emergency ("force

majeure") and where the specific

provisions of bilateral fisheries

treaties apply.

DURATION: Indeterminate

=============================================================================

ANNEX I

Schedule of Canada

SECTOR: Government Finance

SUB-SECTOR: Securities

INDUSTRY CLASSIFICATION: [To be provided]

TYPE OF RESERVATION: National Treatment (Article 1202)

LEVEL OF GOVERNMENT: Federal

LEGAL CITATION: Financial Administrative Act, R.S.C.,

1985, Chap. F-11 and annual Orders-in-

Council

DESCRIPTION: Investment

Canada Savings Bonds are issued

annually pursuant to the Financial

Administration Act. Terms and

conditions are set by Orders-in-

Council. Sale of Canada Savings Bonds

is restricted to individuals who are

Canadian nationals.

DURATION: Indeterminate

=============================================================================

ANNEX I

Schedule of Canada

SECTOR: Transportation

SUB-SECTOR: Air Transportation

INDUSTRY CLASSIFICATION: [To be provided]

TYPE OF RESERVATION: National Treatment (Article 1102)

Most Favored Nation Treatment (Article 1103)

Senior Management (Article 1107)

LEVEL OF GOVERNMENT: Federal

LEGAL CITATION: National Transportation Act, 1987,

R.S.C. 1985, c. 28 (3rd Supp.), as

amended by R.S.C. 1985, c. 29 (3rd

Supp.); R.S.C. 1985 c. 19 (4th Supp.);

R.S.C. 1985, c. 32 (4th Supp.)

Aeronautics Act, R.S.C. 1985, c. A-2

as amended by R.S.C.1985, c. 33 (1st

Supp.); R.S.C. 1985, c. 28 (3rd Supp.)

Air Regulations, C.R.C. 1978, c. 2

Aircraft Marking and Registration

Regulations, SOR/90-591, as amended by

SOR/91-504

DESCRIPTION: Investment

The following "commercial air

services" are reserved to Canadian air

carriers or operators: domestic air

transportation services (cabotage);

international scheduled air

transportation services reserved by

bilateral agreements to Canadian

airlines; and international

non-scheduled air transportation

services between Canada and a country

other than a foreign air carrier's

state of registry ("fifth freedom

charters"). For specialty air

services, see Schedule of Canada,

Annex I, p.I-C-42 and Schedule of

Canada, Annex II, p.II-C-9.

Only qualified persons may provide

commercial air services reserved to

Canadian air carriers or operators.

Non-Canadian investment in voting

stock of enterprises providing

commercial air services that are

reserved to Canadian air carriers or

operators is limited to 25% or to a

lesser percentage where control in

fact of the enterprise is otherwise

considered not to be held by

Canadians. Non-Canadians are not

permitted, through voting interests or

other forms of investment, to control

Canadian air carriers or operators.

Aircraft other than state aircraft may

only be registered in Canada by

qualified persons. Aircraft not

registered in Canada are limited by

regulation concerning the period

during which they may be operated in

Canada by Canadians.

A qualified person is a Canadian

citizen or permanent resident, or a

corporation incorporated by or under

the laws of Canada or a province and

of which:

(a) not less than 75 % of the voting

interest is in fact owned and

controlled by Canadian citizens

or permanent residents or by a

corporation meeting the

requirements on Canadian

ownership and control;

(b) not less than 2/3 of its

directors are Canadian citizens

or permanent residents;

(c) the executive head is a Canadian

citizen or permanent resident;

and

(d) the principal place of business

is in Canada.

A corporation incorporated by or under

the laws of Canada or a province but

that does not meet the Canadian

ownership and control requirements may

only register a private aircraft when

the corporation is the sole owner and

subject to other limitations and

requirements of the Air Regulations.

The Air Regulations also have the

effect of limiting "non-Canadian"

corporations operating foreign

registered private aircraft within

Canada to the carriage of their own

employees. A "non-Canadian"

corporation is a corporation which

does not meet the Canadian ownership

and control requirements.

All commercial air services operating

in Canada require a Canadian operating

certificate to ensure their safety and

security. An operating certificate

authorizing the provision of

commercial air services reserved to

Canadian operators or air carriers is

only issued to qualified persons.

DURATION: Indeterminate

=============================================================================

ANNEX I

Schedule of Canada

SECTOR: Transportation

SUB-SECTOR: Air Transportation

INDUSTRY CLASSIFICATION: SIC 4513 Non-Scheduled Air Transport,

Specialty Industry

TYPE OF RESERVATION: National Treatment (Articles 1102, 1202)

Local Presence (Article 1205)

Senior Management (Article 1107)

LEVEL OF GOVERNMENT: Federal

LEGAL CITATION: Aeronautics Act, R.S.C., 1985, c. A-2,

section 4.2

Air Regulations, C.R.C., Vol. I, c. 2,

sections 700 and 702

Air Regulations Series 2, No. 2

(Aircraft Marking and Registration

Regulations), SOR/90-591, section 19

DESCRIPTION: Cross-Border Services and Investment

1. A person requires a Canadian

operating certificate issued by the

Department of Transport to provide

specialty air services in the

territory of Canada. The Department

of Transport will issue an operating

certificate to a person applying for

authority to provide such services,

subject to compliance by such person

with Canadian safety requirements.

2. Such operating certificate for

the provision of aerial construction,

heli-logging, aerial inspection,

aerial surveillance, flight training,

aerial sightseeing, and aerial

spraying services is not issued to a

person that is not "Canadian" as

defined in the applicable regulations

(a Canadian national or a corporation

incorporated and having its principal

place of business in Canada, its chief

executive officer and not fewer than

2/3 of its directors as Canadian

nationals, and not less than 75% of

its voting interest owned and

controlled by persons otherwise

meeting these requirements).

3. A person of Mexico or of the

United States may obtain an operating

certificate, subject to compliance by

such person with Canadian safety

requirements, for the provision of

aerial mapping, aerial surveying,

aerial photography, forest fire

management, fire-fighting, aerial

advertising, glider towing and

parachute jumping services.

DURATION: Cross-Border Services

Paragraph 3 of the Description shall

govern upon entry into force of this

Agreement.

A person of Mexico or of the United

States will be permitted to obtain an

operating certificate, subject to

compliance with Canadian safety

requirements, for the provision of the

following specialty air services:

(a) two years after the entry into

force of this Agreement, aerial

construction and heli-logging

services;

(b) three years after the entry into

force of this Agreement, aerial

inspection, aerial surveillance,

flight training, and aerial

sightseeing services; and

(c) six years after the entry into

force of this Agreement, aerial

spraying services.

=============================================================================

ANNEX I

Schedule of Canada

SECTOR: Transportation

SUB-SECTOR: Air Transportation

INDUSTRY CLASSIFICATION: SIC 4523 Aircraft Servicing Industry

SIC 3211 Aircraft and Aircraft Parts

Industry

TYPE OF RESERVATION: Most-Favored-Nation Treatment (Article 1203)

Local Presence (1205)

LEVEL OF GOVERNMENT: Federal

LEGAL CITATION: Aeronautics Act, R.S.C., 1985,

c. A-2, section 4.9

Air Regulations, Series 2, No.11

[ ]

Airworthiness Manual, chapters 573 and

575 [ ]

Agreement Concerning Airworthiness

Certification, Exchange of Letters

between Canada and the United States,

dated August 31, 1984, CTS______.

DESCRIPTION: Cross-Border Services

Aircraft repair, overhaul and

maintenance activities which are

required to maintain the airworthiness

of Canadian-registered aircraft must

be performed by Canadian-certified

persons. Such certifications are not

provided for enterprises located

outside Canada, except sub-

organizations of approved maintenance

organizations that are themselves

located in Canada.

Pursuant to an airworthiness agreement

between Canada and the United States,

Canada recognizes the certifications

and oversight provided by the United

States for all repair, maintenance and

overhaul activities performed by U.S.-

certified persons, including the

individual performing the work,

located in the United States.

DURATION: Indeterminate

=============================================================================

ANNEX I

Schedule of Canada

SECTOR: Transportation

SUB-SECTOR: Land Transportation

INDUSTRY CLASSIFICATION: SIC 456 Truck Transport Industries

SIC 4572 Interurban and Rural Transit

Systems Industry

SIC 4573 School Bus Operations

Industry

SIC 4574 Charter and Sightseeing Bus

Services Industry

TYPE OF RESERVATION: National Treatment (Article 1202)

Local Presence (Article 1205)

LEGAL CITATION: Motor Vehicle Transport Act, 1987,

R.S.C., 1985, c. 29, (3rd Supp.),

Parts I and II

National Transportation Act, 1987,

R.S.C., 1985, c. 28 (3rd Supp.), Part

IV

Customs Tariff, R.S.C., 1985, c. 41

(3rd Supp.), subsection 19(1)

DESCRIPTION: Cross-Border Services

Only persons of Canada, using

Canadian-built or duty-paid trucks or

buses, may provide truck or bus

services between points in the

territory of Canada.

DURATION: Indeterminate

=============================================================================

ANNEX I

Schedule of Canada

SECTOR: Transportation

SUB-SECTOR: Water Transportation

INDUSTRY CLASSIFICATION: SIC 4541 Freight and Passenger Water

Transport Industry

SIC 4542 Ferry Industry

SIC 4543 Marine Towing Industry

SIC 4549 Other Water Transport

Industries

SIC 4553 Marine Salvage Industry

SIC 4559 Other Service Industries

Incidental to Water

Transport

TYPE OF RESERVATION: National Treatment (Articles 1102, 1202)

Most-Favored-Nation Treatment (Articles 1103, 1203)

Local Presence (Article 1205)

LEVEL OF GOVERNMENT: Federal

LEGAL CITATION: Canada Shipping Act, R.S.C., 1985, c.

S-9, sections 6 and 7

DESCRIPTION: Cross-Border Services and Investment

To register a ship in Canada for the

purpose of providing international

maritime transportation services, the

owner of the ship must be:

(a) a Canadian citizen or a citizen

of a Commonwealth country, or

(b) a corporation incorporated under

the laws of, and having its

principal place of business in,

Canada or a Commonwealth country.

For domestic maritime transportation

services (cabotage), see Schedule of

Canada, Annex II,

p.II-C-10.

DURATION: Indeterminate

=============================================================================

ANNEX I

Schedule of Canada

SECTOR: Transportation

SUB-SECTOR: Water Transportation

INDUSTRY CLASSIFICATION: SIC 4541 Freight and Passenger Water

Transport Industry

SIC 4542 Ferry Industry

SIC 4543 Marine Towing Industry

SIC 4549 Other Water Transport

Industries

SIC 4553 Marine Salvage Industry

SIC 4554 Piloting Service, Water

Transport Industry

SIC 4559 Other Service Industries

Incidental to Water

Transport

TYPE OF RESERVATION: National Treatment (Article 1202)

Local Presence (Article 1205)

LEVEL OF GOVERNMENT: Federal

LEGAL CITATION: Canada Shipping Act, R.S.C., 1985, c.

S-9, Part II

DESCRIPTION: Cross-Border Services

Masters, mates, and engineers are

required to be certified by the

Department of Transport as ship's

officers while engaged on a Canadian-

registered vessel. Only Canadian

nationals may be certified as ship's

officers.

DURATION: Indeterminate

=============================================================================

ANNEX I

Schedule of Canada

SECTOR: Transportation

SUB-SECTOR: Water Transportation

INDUSTRY CLASSIFICATION: SIC 4554 Piloting Service, Water

Transport Industry

TYPE OF RESERVATION: National Treatment (Article 1202)

Local Presence (Article 1205)

LEVEL OF GOVERNMENT: Federal

LEGAL CITATION: Pilotage Act, R.S.C., 1985, c. P-14

General Pilotage Regulations, C.R.C.,

Vol. XIII c. 1263

Atlantic Pilotage Authority

Regulations, C.R.C. Vol. XIII, c. 1264

Laurentian Pilotage Authority

Regulations, C.R.C., Vol. XIII, c.

1268

Great Lakes Pilotage Regulations,

C.R.C., Vol. XIII, c. 1266

Pacific Pilotage Regulations, C.R.C.,

Vol. XIII, c. 1270

DESCRIPTION: Cross-Border Services

A licence issued by the Department of

Transport is required to provide

pilotage services in Canada. Only

Canadian citizens or permanent

residents may obtain such licence. A

permanent resident of Canada who has

been issued a pilot's licence must

become a Canadian citizen within five

years of receipt of such licence in

order to retain it.

DURATION: Indeterminate

=============================================================================

ANNEX I

Schedule of Canada

SECTOR: Transportation

SUB-SECTOR: Water Transportation

INDUSTRY CLASSIFICATION: SIC 454 Water Transport Industry

TYPE OF RESERVATION: Local Presence (Article 1205)

LEVEL OF GOVERNMENT: Federal

LEGAL CITATION: Shipping Conference Exemption Act,

1987, R.S.C., 1985, c.17 (3rd Supp.),

section 18

DESCRIPTION: Cross-Border Services

Members of a shipping conference shall

maintain jointly an office or agency

in the region of Canada where they

operate. A shipping conference is an

association of ocean carriers that has

the purpose or effect of regulating

rates and conditions for the

transportation by such carriers of

goods by water.

DURATION: Indeterminate

=============================================================================

ANNEX I

Schedule of Canada

SECTOR: Transportation

SUB-SECTOR: Water Transportation

INDUSTRY CLASSIFICATION: SIC 4541 Freight and Passenger Water

Transport Industry

SIC 4542 Ferry Industry

SIC 4543 Marine Towing Industry

TYPE OF RESERVATION: Most-Favored-Nation Treatment (Article 1203)

LEVEL OF GOVERNMENT: Federal

LEGAL CITATION: Coasting Trade Act, S.C., 1992, c. 31,

subsection 3(5)

DESCRIPTION: Cross-Border Services

The prohibitions under the Coasting

Trade Act set out in Schedule of

Canada, Annex II, p. II-C-10 do not

apply to any vessel that is owned by

the U.S. Government when used solely

for the purpose of transporting goods

owned by the U.S. Government from the

territory of Canada to supply Distant

Early Warning sites.

DURATION: Indeterminate

=============================================================================

ANNEX I

Schedule of Canada

SECTOR: Energy

SUB-SECTOR: Oil and Gas

INDUSTRY CLASSIFICATION: [To be provided]

TYPE OF RESERVATION: Performance Requirements (Article 1106)

LEVEL OF GOVERNMENT: Federal

LEGAL CITATION: Canada Oil and Gas Operations Act (in

force as of September 1, 1992)

Hibernia Development Project Act

DESCRIPTION:

1. The terms and conditions of

government assistance for the Hibernia

project require that certain goods and

services be sourced in Newfoundland

and in Canada and that the project

operator undertakes, on a "best

efforts" basis, to achieve specific

Canadian and Newfoundland content

levels.

2. In addition, Canada reserves the

right to impose any requirement or

enforce any commitment or undertaking

for the transfer of technology, a

production process or other

proprietary knowledge to a national or

enterprise in Canada, in connection

with the Hibernia project.

DURATION: For purposes of this entry, paragraph

2 of the Description shall govern with

respect to Canada's reservation to the

obligations of Article 1106(1) (f).

Indeterminate

=============================================================================

ANNEX I

Schedule of Canada

SECTOR: Energy

SUB-SECTOR: Oil and Gas

INDUSTRY CLASSIFICATION: [To be provided]

TYPE OF RESERVATION: Performance Requirements (Article 1106)

Local Presence (Article 1205)

LEVEL OF GOVERNMENT: Federal

LEGAL CITATION: Canada Oil and Gas Operation Act, (in

force as of September 1, 1992)

Canada-Nova Scotia Offshore Petroleum

Resources Accord Implementation Act,

S.C. 1988, c.28

Canada-Newfoundland Atlantic Accord,

S.C. 1987, c.3

Yukon Oil and Gas Accord (under

negotiation)

Northwest Territories Oil and Gas

Accord (under negotiation)

DESCRIPTION:

1. Under the Canada Oil and Gas

Operations Act, the Minister of

Energy, Mines and Resources requires

the applicant to submit a "benefits

plan". Approval of the benefits plan

is required to receive authorization

to proceed with any oil and gas

development project.

2. A "benefits plan" means a plan

for the employment of Canadians and

for providing Canadian manufacturers,

consultants, contractors and service

companies with a full and fair

opportunity to participate on a

competitive basis in the supply of

goods and services used in any

proposed work or activity referred to

in the benefits plan. The Act permits

the Minister to impose an additional

requirement on the applicant, as part

of the benefits plan, to ensure that

disadvantaged individuals or groups

have access to training and employment

opportunities or can participate in

the supply of goods and services used

in any proposed work referred to in

the benefits plan. Similar provisions

will be included in the Yukon and

Northwest Territories Accords.

3. The Canada-Nova Scotia Offshore

Petroleum Resources Accord

Implementation Act and the Canada-

Newfoundland Atlantic Accord

Implementation Act have the same

requirement for a "benefits plan" but

also require that the "benefits plan"

ensure that:

(a) before carrying out any work or

activity in the offshore area the

corporation or other body

submitting the plan shall

establish in the Province an

office where appropriate levels

of decision-making are to take

place;

(b) expenditures shall be made for

research and development to be

carried out in the Province, and

for education and training to be

provided in the Province; and

(c) first consideration shall be

given to goods produced or

services provided from within the

Province, where those goods or

services are competitive in terms

of fair market price, quality and

delivery.

4. The Boards administering the

benefits plan under these Acts may

also require that the plan include

provisions to ensure that

disadvantaged individuals or groups or

corporations owned or cooperatives

operated by them participate in the

supply of goods and services used in

any proposed work or activity referred

in the benefits plan.

5. In addition, Canada reserves the

right to impose any requirement or

enforce any commitment or undertaking

for the transfer of technology, a

production process or other

proprietary knowledge to a national or

enterprise in Canada, in connection

with the approval of development

projects under the Acts cited above.

DURATION: For purposes of this entry, paragraph

5 of the Description shall govern with

respect to Canada's reservation to the

obligations of Article 1106(1) (f).

For purposes of this entry, the Yukon

Oil and Gas Accord and the Northwest

Territories Oil and Gas Accord shall

be deemed to be existing measures,

upon completion of their negotiation.

Indeterminate