ANNEX III

Schedule of Mexico

I. The Mexican State reserves the right to perform exclusively,

and to refuse to permit the establishment of investments in, the

following activities:

1. Petroleum, other Hydrocarbons and Basic Petrochemicals

(a) Description of activities

(i) exploration and exploitation of crude oil and

natural gas; refining or processing of crude oil

and natural gas; and production of artificial gas,

basic petrochemicals and their feedstocks and

pipelines; and,

(ii) foreign trade; transportation, storage and

distribution up to and including first hand sales

of the following goods: crude oil; natural and

artificial gas; goods obtained from the refining

or processing of crude oil and natural gas; and

basic petrochemicals.

(b) Legal citation:

Constitución Política de los Estados Unidos Mexicanos,

Articles 25, 27 and 28 (United Mexican States Political

Constitution, Articles 25, 27 and 28).

Ley Reglamentaria del Artículo 27 Constitucional en el

Ramo del Petróleo y sus reglamentos (Regulatory Law of

Article 27 of the United Mexican States Constitution

related to Oil, and its regulations).

Ley Org nica de Petróleos Mexicanos y Organismos

Subsidiarios (Statutory Law of Petróleos Mexicanos and

its Subsidiaries).

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ANNEX III

Schedule of Mexico

2. Electricity

(a) Description of activities: the supply of electricity as

a public service in Mexico, including, except as

provided in Annex 602.3 of the Energy Chapter, the

generation, transmission, transformation, distribution

and sale of electricity.

(b) Legal citation:

Constitución Política de los Estados Unidos Mexicanos,

Articles 25 and 28 (United Mexican States Political

Constitution, Articles 25 and 28).

Ley del Servicio Público de Energía Eléctrica y su

reglamento (Public Service of Electric Energy Law, and

its Regulations)

3. Nuclear Power and Treatment of Radioactive Minerals

(a) Description of activities: the generation of nuclear

energy; the exploration, exploitation and processing of

radioactive minerals; the nuclear fuel cycle; the use

and reprocessing of nuclear fuels and the regulation of

their applications for other purposes; the

transportation and storage of nuclear wastes; and the

production of heavy water.

(b) Legal citation:

Constitución Política de los Estados Unidos Mexicanos,

Articles 25, 27 and 28 (United Mexican Constitution,

Article 25, 27 and 28).

Ley Reglamentaria del Artículo 27 Constitucional en

Materia de Energía Nuclear (Regulatory Law of the

Aticle 27 of the United Mexican Constitution related to

Atomic Energy).

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ANNEX III

Schedule of Mexico

4. Satellite Communications

(a) Description of activities: the establishment, operation

and ownership of satellite systems and earth stations

with international links.

(b) Legal citation:

Constitución Política de los Estados Unidos Mexicanos,

Articles 25 and 28 (United Mexican States, Articles 25

and 26).

Ley de Vías Generales de Comunicación y sus reglamentos

(General Means of Communication Law)

5. Telegraph Services

Legal citation:

Constitución Política de los Estados Unidos Mexicanos,

Articles 25 and 28 (United Mexican States, Articles 25 and

28)

Ley de Vías Generales de Comunicación y sus reglamentos

(General Means Communication Law)

6. Radiotelegraph Services

Legal citation:

Constitución Política de los Estados Unidos Mexicanos,

Articles 25 and 28 (United Mexican States Political

Constitution, Article 25 and 28)

Ley de Vías Generales de Comunicación y sus reglamentos

(Genral Means of Communication Law).

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ANNEX III

Schedule of Mexico

7. Postal Services

(a) Description of activities: operation, administration

and organization of first class mail.

(b) Legal citation:

Constitución Política de los Estados Unidos Mexicanos,

Articles 25 and 28 (United Mexican States Political

Constitution, Articles 25 and 28).

Ley del Servicio Postal Mexicano (Mexican Postal

Service Law)

8. Railroads

(a) Description of activities: the operation,

administration and control of traffic within the

Mexican railway system; supervision and management of

railway right-of-way; operation, construction and

maintenance of basic railway infrastructure.

(b) Legal citation:

Constitución Política de los Estados Unidos Mexicanos,

Articles 25 and 28 (United Mexican States Political

Constitution, Articles 25 y 28).

Ley Org nica de Ferrocarriles Nacionales de México

(Statutory Law of Mexican Railroads).

9. Issuance of Bills (currency) and Minting of Coinage

Legal citation:

Constitución Política de los Estados Unidos Mexicanos,

Articles 25 and 28 (United Mexican States Political

Constitution, Articles 25 and 28).

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ANNEX III

Schedule of Mexico

Ley Org nica del Banco de México (Statutory Law of Banco de

México).

Ley Org nica de la Casa de Moneda de México (Statutory Law

of the Mexican Coining Agency).

10. Control, Inspection and Surveillance of Maritime and Inland

(Lake and River) Ports

Legal citation:

Ley de Navegación y Comercio Marítimo (Commercial and

Navigation Law), Articles 43 and 47.

Ley de Vías Generales de Comunicación (General Means of

Communication Law) Article 272.

11. Control, Inspection and Surveillance of Airports and

Heliports

Legal citation:

Ley de Vías Generales de Comunicación (General Means of

Communication) Article 327.

The legal citations are provided only for transparency purposes.

II. Deregulation of Activities Reserved to the State

1. The activities set out in Section I are reserved to the

Mexican State, and private equity investment is prohibited under

Mexican Law. Where Mexico allows private investment to

participate in such activities through service contracts,

concessions, lending arrangements or any other type of

contractual arrangement, such participation shall not be

construed to affect the State's reservation of those activities.

2. If Mexican laws or regulations are amended to allow private

equity investment in an activity set out in Section I, Mexico may

impose restrictions on foreign investment

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ANNEX III

Schedule of Mexico

participation notwithstanding Article 1102 and describe them in

Annex I. Mexico may also impose derogations from 1102 on foreign

equity investment participation when selling an asset or

ownership interest in an enterprise in activities set out in

Section I and describe them in Annex I.

III. Activities Formerly Reserved to the Mexican State

Where an activity was reserved to the Mexican State on

January 1, 1992 and is not reserved to the Mexican State upon

entry into force of this Agreement, Mexico may restrict the

initial sale of a state-owned asset or an ownership interest in a

state enterprise that performs that activity to enterprises with

majority ownership by Mexican nationals, as defined by the

Mexican Constitution. For a period not to exceed three years from

the initial sale, Mexico may restrict the transfer of such asset

or ownership interest to other enterprises with majority

ownership by Mexican nationals, as defined by the Mexican

Constitution. Upon expiration of the three year period , the

obligations of national treatment set out in Article 1102

(National Treatment) shall apply. This provision is subject to

Article 1108 (Reservations and exceptions).