ANNEX II

Schedule of Canada

SECTOR: Aboriginal Affairs

SUB-SECTOR:

INDUSTRY CLASSIFICATION:

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

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

Local Presence (Article 1205)

Performance Requirements (Article 1106)

Senior Management (Article 1107)

DESCRIPTION:Investment and Cross-Border Services

Canada reserves the right to adopt or

maintain any measure denying investors

of another Party and their

investments, or service providers of

another Party, any rights or

preferences provided to aboriginal

peoples.

LEGAL CITATION OF EXISTING MEASURES:

[Constitution Act, 1982 and any

relevant legislation or policy]

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ANNEX II

Schedule of Canada

SECTOR: Social Services

SUB-SECTOR:

INDUSTRY CLASSIFICATION:

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

Local Presence (Article 1205)

Senior Management (Article 1107)

DESCRIPTION: Investment and Cross-Border Services

Canada reserves the right to adopt or

maintain any measure with respect to

the provision of public law

enforcement and correctional services,

and the following services to the

extent that they are social services

established or maintained for a public

purpose: income security or insurance,

social security or insurance, social

welfare, public education, public

training, health, and child care.

LEGAL CITATION OF EXISTING MEASURES:

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

ANNEX II

Schedule of Canada

SECTOR: Communications

SUB-SECTOR: Telecommunications Transport Networks

and Services, Radiocommunications and

Submarine Cables

INDUSTRY CLASSIFICATION: CPC 752 Telecommunications Services

TYPE OF RESERVATION: National Treatment (Article 1102)

Most-Favored-Nation Treatment (Article 1103)

Senior Management (Article 1107)

DESCRIPTION: Investment

Canada reserves the right to adopt or

maintain any measure relating to

investment in telecommunications

transport networks and

telecommunications transport services,

radiocommunications and submarine

cables, including ownership

restrictions and measures concerning

corporate officers and directors and

place of incorporation.

This reservation does not apply to

providers of Value-Added Networks (CPC

752323) and Other Message Services

(CPC 752329) whose underlying

telecommunications transmission

facilities are leased from providers

of public telecommunications transport

networks.

LEGAL CITATION OF EXISTING MEASURES:

Bell Canada Act, S.C. 1987, c.19

British Columbia Telephone Company

Special Act, S.C. 1916, c.66

Teleglobe Canada Reorganization and

Divestiture Act, R.S.C. 1985, c.T-4

Telesat Canada Act, R.S.C. 1985, c.T-6

Radiocommunication Act, R.S.C. 1985,

c.R-2; as amended by S.C.1989 c.1,

c.17

Telegraphs Act R.S.C. 1985, c.T-5

Telecommunications Policy Framework,

1987

Telecommunications Act (Bill C-62)

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

ANNEX II

Schedule of Canada

SECTOR: Communications

SUB-SECTOR: Telecommunications Transport Networks and Services,

Radiocommunications and Submarine Cables

INDUSTRY CLASSIFICATION: CPC 752 Telecommunication Services

(not including CPC 752323

value-Added Network Service

or CPC 752329 Other Message

Services)

TYPE OF RESERVATION: National Treatment (Article 1202)

Most-Favored-Nation Treatment (Article 1203)

Local Presence (Article 1205)

DESCRIPTION: Cross-Border Services

Canada reserves the right to adopt or

maintain any measure relating to

radio-communications, submarine

cables, and the provision of

telecommunications transport networks

and telecommunications transport

services. These measures apply to

such matters as market entry, spectrum

assignment, tariffs, intercarrier

agreements, terms and conditions of

service, interconnection between

networks and services, and routing

requirements that impede the provision

of telecommunications transport

networks and telecommunications

transport services, radio

communication and submarine cables, on

a cross-border basis.

Telecommunications transport services

typically involve the real-time

transmission of customer-supplied

information between two or more points

without any end-to-end change in the

form or content of the customer's

information, whether or not such

services are offered to the public

generally. These services include

voice and data services by wire,

radiocommunication or any other

electromagnetic means of transmission.

This reservation does not apply to

measures relating to the cross-border

provision of enhanced or value-added

services.

LEGAL CITATION OF EXISTING MEASURES:

Bell Canada Act, S.C. 1987, c. 19

British Columbia Telephone Company

Special Act, S.C. 1916, c.66

Railway Act, R.S.C. 1985, c.R-3

Radiocommunication Act, R.S.C. 1985,

c.R-2; as amended by S.C. 1989, c.1,

c.17

Telegraphs Act, R.S.C. 1985, c.T-5

Telecommunications Policy Framework,

1987

Telecommunications Act (Bill C-62)

CRTC Decisions, including (85-19),

(90-3), (91-10), (91-21), (92-11),

(92-12)

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

Annex II

Schedule of Canada

SECTOR: Government Finance

SUB-SECTOR: Securities

INDUSTRY CLASSIFICATION:

TYPE OF RESERVATION: National Treatment (Article 1102)

DESCRIPTION: Investment

Canada reserves the right to adopt or

maintain any measure relating to the

acquisition or sale or other

disposition of bonds, treasury bills,

or other kinds of debt securities

issued by the Government of Canada, a

province or local government by

nationals of another Party.

LEGAL CITATION OF EXISTING MEASURES:

Financial Administrative Act, R.S.C.,

1985, Chap. F-11

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

ANNEX II

Schedule of Canada

SECTOR: minority Affairs

SUB-SECTOR:

INDUSTRY CLASSIFICATION:

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

Local Presence (Article 1205)

Performance Requirements (Article 1106)

Senior Management (Article 1107)

DESCRIPTION: Cross-Border Services and Investment

Canada reserves the right to adopt or

maintain any measure according rights

or preferences to socially or

economically disadvantaged minorities.

LEGAL CITATION OF EXISTING MEASURES:

None

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

ANNEX II

Schedule of Canada

SECTOR: Transportation

SUB-SECTOR: Air Transportation

INDUSTRY CLASSIFICATION: SIC 4513 Non-Scheduled Air Transport,

Specialty Industry

TYPE OF RESERVATION: National Treatment (Article 1102)

Most-Favored-Nation Treatment (Article 1103)

Senior Management (Article 1107)

DESCRIPTION: Investment

Canada reserves the right to adopt or

maintain any measure that restricts

the acquisition or establishment of an

investment in Canada for the provision

of specialty air services to 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.

LEGAL CITATION OF EXISTING MEASURES:

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

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

Air Regulations Series 2, No.2

(Aircraft Marking and Registration

Regulations), SOR/90-591

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

ANNEX II

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 4552 Harbour and Port Operation

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 (Articles 1102, 1202)

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

Local Presence (Article 1205)

Performance Requirements (Article 1106)

Senior Management (Article 1107)

DESCRIPTION: Cross-Border Services and Investment

Canada reserves the right to adopt or

maintain any measure relating to the

investment in or provision of maritime

cabotage services, including:

(a) the transportation of goods or

passengers by vessel between

points in the territory of Canada

and the Exclusive Economic Zone;

(b) with respect to waters above the

continental shelf, the

transportation of goods in

relation to the exploration,

exploitation, or transportation

of the mineral or non-living

natural resources of the

continental shelf; and

(c) the engaging by vessel in any

maritime activity of a commercial

nature in the territory of Canada

and the Exclusive Economic Zone

and, with respect to waters above

the continental shelf, in such

other maritime activities of a

commercial nature in relation to

the exploration, exploitation or

transportation of mineral or non-

living natural resources of the

continental shelf.

This reservation relates to, among

other things, local presence

requirements for service providers

entitled to participate in these

activities, the criteria for the

issuance of a temporary cabotage

license to foreign vessels, and limits

on the number of cabotage licenses

issued to foreign vessels.

LEGAL CITATION OF EXISTING MEASURES:

Coasting Trade Act, S.C., 1992, c. 31

Canada Shipping Act, R.S.C., 1985, c.

S-9

Customs Act, R.S.C., 1985, c.1 (2nd

Supp.)

Customs and Excise Offshore

Application Act, R.S.C., 1985, c. C-53

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

ANNEX II

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 Marine Transport

Industries

SIC 4551 Marine Cargo Handling

Industry

SIC 4552 Harbour and Port

OperationIndustry

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 (Articles 1102, 1202)

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

Local Presence (Article 1205)

Performance Requirements (Article 1106)

Senior Management (Article 1107)

DESCRIPTION: Cross-Border Services and Investment

Canada reserves the right to adopt or

maintain any measure denying service

providers or investors of the United

States, or their investments, the

benefits accorded service providers or

investors of Mexico or any other

country, or their investments, in

sectors equivalent to those subject to

the maritime services reservation

inscribed in page II-U-8.

LEGAL CITATION OF EXISTING MEASURES: None

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

ANNEX II

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 Marine Transport

Industries

SIC 4551 Marine Cargo Handling

Industry

SIC 4552 Harbour and Port Operation

Industry

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)

Most-Favored-Nation Treatment (Article 1203)

Local Presence (Article 1205)

DESCRIPTION: Cross-Border Services

Canada reserves the right to adopt or

maintain any measure relating to the

implemention of agreements,

arrangements and other formal or

informal undertakings with other

countries with respect to maritime

activities in waters of mutual

interest in such areas as pollution

control (including double hull

requirements for oil tankers), safe

navigation, barge inspection

standards, water quality, pilotage,

salvage, drug abuse control, and

maritime communications.

LEGAL CITATION OF EXISTING MEASURES:

United States Wreckers Act, R.S.C.

1985, c. U-3

Various Agreements and Arrangements,

including:

(a) Memorandum or Arrangement on

Great Lakes Pilotage;

(b) Canada-United-States Joint Marine

Pollution Circumpolar Agreement;

(c) Agreement with the United States

on Loran "C" Service on the East

and West Coasts; and

(d) Denmark - Canada Joint Marine

Pollution Circumpolar Agreement.