ANNEX VII

PART A

Schedule of the United States

SECTOR: Financial Services

SUB-SECTOR: Banking

TYPE OF RESERVATION: Article 1409 (Staffing)

MEASURE: U.S. citizenship requirements for chief executive officers of

national banks not affiliated or owned by foreign banks

LEVEL OF GOVERNMENT: Federal

LEGAL CITATION: The National Bank Act, 12 U.S.C. § 72.

DESCRIPTION: All directors of a national bank must

be citizens of the United States.

Because it is also required that chief

executive officers of all national

banks be directors, a chief executive

officer of a national bank must be a

citizen of the United States. An

exception from these requirements

exists for national banks affiliated

or owned by foreign banks. Such banks

are only required to have citizens

constitute a simple majority of the

directors and need not employ citizens

as chief executive officers.

DURATION: Indeterminate

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ANNEX VII

PART A

Schedule of the United States

SECTOR: Financial Services

SUB-SECTOR: Banking

TYPE OF RESERVATION: Article 1409 (Staffing)

MEASURE: Residency requirements on boards of directors of national banks

LEVEL OF GOVERNMENT: Federal

LEGAL CITATION: The National Bank Act, 12 U.S.C. § 72.

DESCRIPTION: Two-thirds of the directors of a

national bank must have (i) resided

for one year prior to their election,

and (ii) continue to reside, in the

state in which the bank is located or

within 100 miles of the national bank.

DURATION: Indeterminate

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ANNEX VII

PART A

Schedule of the United States

SECTOR: Financial Services

SUB-SECTOR: Banking

TYPE OF RESERVATION: Article 1407 (National Treatment)

MEASURE: Limitations on acquisition of interests in banks on an interstate

basis

LEVEL OF GOVERNMENT: Federal

LEGAL CITATION: Bank Holding Company Act of 1956, as amended,

12 U.S.C. § 1842(d); International Banking Act of 1978, as

amended, 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 host state") by a

foreign bank that has a full-service

branch or bank subsidiary in the

United States, unless the measures of

the host state expressly permit the

transaction. Thus, foreign banks may

not acquire interests in banks in some

states on the same basis as domestic

bank holding companies from the

foreign bank's home state. For

purposes of determining national

treatment under paragraph 6(b) of

Article 1407, foreign banks are

located in their "home state," as that

term is used in the International

Banking Act of 1978.

The following types of measures, inter

alia, fall into this category:

(a) Foreign banks are expressly

excluded from the authority

to own banks in certain

regional holding company

laws.

(b) Foreign banks

are implicitly excluded through a

definition of eligible owner

in certain state laws that

requires a majority of the

parent bank'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.

DURATION:Indeterminate

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ANNEX VII

PART A

Schedule of the United States

SECTOR: Financial Services

SUB-SECTOR: Banking

TYPE OF RESERVATION: Article 1407 (National Treatment)

MEASURE: Limitations on ownership of corporations organized under

section 25A of the Federal Reserve Act ("Edge corporations")

LEVEL OF GOVERNMENT: Federal

LEGAL CITATION: 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 neither directly

nor indirectly own Edge corporations.

DURATION: Indeterminate

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ANNEX VII

PART A

Schedule of the United States

SECTOR: Financial Services

SUB-SECTOR: Banking

TYPE OF RESERVATION: Article 1407 (National Treatment)

MEASURE: Exemption from limitations for federal- and state-owned companies

that own banks

LEVEL OF GOVERNMENT: Federal

LEGAL CITATION: Bank Holding Company Act of 1956, as amended,

12 U.S.C. § 1841(b)

DESCRIPTION: The Bank Holding Company Act does not apply to companies that

are majority-owned by the Federal and state governments,

whereas companies owned by foreign governments are not

excepted.

DURATION: Indeterminate

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ANNEX VII

PART A

Schedule of the United States

SECTOR: Financial Services

SUB-SECTOR: Banking

TYPE OF RESERVATION: Article 1407 (National Treatment)

MEASURE: Limitations on the ability of foreign banks to accept certain

types of deposits through any form other than an insured banking subsidiary

LEVEL OF GOVERNMENT: Federal

LEGAL CITATION: International Banking Act of 1978,

12 U.S.C. §3104 (as amended by The

Federal Deposit Insurance Corporation Improvement Act of 1991,

Pub.L. 102-242, Title II, § 214(a)).

DESCRIPTION: After December 19, 1991, in order to accept or maintain deposit

accounts having balances of less than $100,000, a foreign bank must establish

an insured banking subsidiary. As a result, foreign bank branches are

prohibited from taking insured deposits unless engaged in that

activity on December 19, 1991.

DURATION: Indeterminate

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ANNEX VII

PART A

Schedule of the United States

SECTOR: Financial Services

SUB-SECTOR: Banking

TYPE OF RESERVATION: Article 1407 (National Treatment)

MEASURE: Limitations on membership in the Federal Reserve System

LEVEL OF GOVERNMENT: Federal

LEGAL CITATION: Federal Reserve Act, 12 U.S.C. §§ 321, 221, 302;

International Banking Act of 1978, 12 U.S.C. § 3106(d).

DESCRIPTION: Foreign banks with branches and agencies in the United States

may not be members of the Federal Reserve System, and may thus not vote for

directors of a Federal Reserve Bank.

DURATION: Indeterminate

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ANNEX VII

PART A

Schedule of the United States

SECTOR: Financial Services

SUB-SECTOR: Banking and Securities

TYPE OF RESERVATION: Articles 1407 and 1408 (National Treatment,

Most-Favored-Nation Treatment)

MEASURE: Limitation on designation of foreign firms as primary dealers in U.S.

government securities

LEVEL OF GOVERNMENT: Federal

LEGAL CITATION: The Primary Dealers Act of 1988, 22 U.S.C. §§ 5341-5342.

DESCRIPTION: The Primary Dealers Act of 1988 prohibits a foreign firm to be

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.

DURATION: Indeterminate

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ANNEX VII

PART A

Schedule of the United States

SECTOR: Financial Services

SUB-SECTOR: Banking and Securities

TYPE OF RESERVATION: Articles 1407, 1408 and 1409 (National Treatment,

MFN Treatment, Staffing)

MEASURE: Eligibility of foreign trust indentures

LEVEL OF GOVERNMENT: Federal

LEGAL CITATION: Trust Indenture Act of 1939, 15 U.S.C.

§ 77jjj(a)(1) and rules thereunder.

DESCRIPTION: Under the Trust Indenture Act of 1939, foreign firms located

outside the United States may be prohibited from acting as sole trustees

under an indenture for debt securities sold in the United States if U.S.

institutional trustees cannot act as sole trustee for securities sold in

the foreign country.

DURATION: Indeterminate

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ANNEX VII

PART A

Schedule of the United States

SECTOR: Financial Services

SUB-SECTOR: Banking and Securities

TYPE OF RESERVATION: Article 1409 (MFN Treatment)

MEASURE: Special reserve bank account

LEVEL OF GOVERNMENT: Federal

LEGAL CITATION: Rule 15c3-3 of the Securities Exchange

Act of 1934, 17 C.F.R. § 240.15c3-3.

DESCRIPTION: Broker-dealers that maintain their

principal place of business in Canada may maintain their reserve requirement

at a Canadian bank subject to supervision by an authority of Canada;

however, other foreign broker-dealers not in the U.S. or Canada must

maintain reserves in the U.S.

DURATION: Indeterminate

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ANNEX VII

PART A

Schedule of the United States

SECTOR: Financial Services

SUB-SECTOR: Commodity Futures and Options

TYPE OF RESERVATION: Articles 1405 and 1406 (Cross-Border Trade,

New Financial Services)

LEVEL OF GOVERNMENT: Federal

LEGAL CITATION: Commodity Exchange Act, 7 U.S.C. § 2.

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.

DURATION: Indeterminate

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ANNEX VII

PART A

Schedule of the United States

SECTOR: Financial Services

SUB-SECTOR: Insurance

TYPE OF RESERVATION: Article 1407 (National Treatment)

MEASURE:

LEVEL OF GOVERNMENT: Federal

LEGAL CITATION: 31 U.S.C. § 9304

DESCRIPTION: Branches of foreign insurance

companies are not permitted to provide surety bonds for U.S. Government

contracts.

DURATION: Indeterminate

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ANNEX VII

PART A

Schedule of the United States

SECTOR: Financial Services

SUB-SECTOR: Banking and Securities

TYPE OF RESERVATION: Article 1407 (National Treatment)

MEASURE: Differential treatment of foreign and domestic banks under the

federal securities laws

LEVEL OF GOVERNMENT: Federal

LEGAL CITATION: Investment Advisors Act of 1940, 15 U.S.C. § 80b-2 and

§ 80b-3 and the rules thereunder.

DESCRIPTION: Foreign banks may be required to

register as investment advisers under the Investment Advisors Act of 1940 to

engage in securities advisory services in the United States, while domestic

banks are exempt from registration.

DURATION: Indeterminate

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ANNEX VII

PART A

Schedule of the United States

SECTOR: Financial Services

SUB-SECTOR: Securities

TYPE OF RESERVATION: Article 1407 (National Treatment)

MEASURE: Application of the disclosure

provisions of the federal securities laws to the U.S. government,

government-owned enterprises, and state and local governments.

LEVEL OF GOVERNMENT: Federal

LEGAL CITATION: Securities Exchange Act of 1934, 15

U.S.C. §§ 78c(a)(12)(A)(i),

78c(a)(12)(A)(ii) and the rules

thereunder; Securities Act of 1933, 15

U.S.C. §§ 77c(a)(2) and the rules

thereunder.

DESCRIPTION: U.S. federal, state and local

government securities are exempt from the registration and disclosure

provisions of the federal securities laws.

DURATION: Indeterminate

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ANNEX VII

PART A

Schedule of the United States

SECTOR: Financial Services

SUB-SECTOR: Securities TYPE OF RESERVATION: Article 1407 (National Treatment)

MEASURE: Application of the federal securities laws to the U.S. government,

government owned enterprises, and state and local governments

LEVEL OF GOVERNMENT: Federal

LEGAL CITATION: Investment Company Act of 1940, 15

U.S.C. §§ 80a-2(b), and the rules

thereunder; Investment Advisers Act of

1940, 15 U.S.C. § 80-2(b), and the

rules thereunder.

DESCRIPTION: The Investment Company Act of 1940 and

the Investment Advisers Act of 1940 do not apply to investment companies and

investment advisers, respectively, that are owned by the federal, state

and local governments, whereas investment companies and investment

advisers owned by foreign governments are not excepted.

DURATION: Indeterminate

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

ANNEX VII

PART A

Schedule of the United States

SECTOR: Financial Services

SUB-SECTOR: Banking and Securities

TYPE OF RESERVATION: Article 1407 (National Treatment)

MEASURE: Application of the federal securities laws to the U.S. government,

government-owned enterprises, and state and local governments.

LEVEL OF GOVERNMENT: Federal

LEGAL CITATION: Securities Exchange Act of 1934, 15

U.S.C. §§ 78c(a)(43)(A), 78c(a)(44)(A)

and 78c(d) the rules thereunder.

DESCRIPTION: No provision of the Exchange Act

applies to the U.S. government. Thus, U.S.-owned exchanges, clearing

agencies, brokers, dealers, and banks are not regulated under the Exchange

Act. In addition, U.S. government enterprises are exempt from government

securities broker and dealer registration and regulation. State

and local government officials are also exempted from the registration as

brokers, dealers, and municipal securities dealers.

DURATION: Indeterminate

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ANNEX VII

PART A

Schedule of the United States

SECTOR: Financial Services

SUB-SECTOR:

TYPE OF RESERVATION: Article 1407 (National Treatment)

MEASURE:

LEVEL OF GOVERNMENT: Federal

LEGAL CITATION:

DESCRIPTION: Foreign government owned firms are not

entitled to extend credit backed by the guarantees of the Commodity Credit

Corporation.

DURATION: Indeterminate

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ANNEX VII

PART A

Schedule of the United States

The United States shall set out any existing non-conforming

measures maintained by California, Florida, Illinois, New York,

Ohio, and Texas by the date of entry into force of this

Agreement. Existing non-conforming state measures of all other

states shall be set out by January 1, 1995.

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ANNEX VII

PART B

Schedule of the United States

The United States reserves the right to derogate from

Articles 1405(1) and 1408 for the securities sector with respect

to Canada. With respect to these Articles, the United States may

adopt or maintain measures affecting cross-border trade in

securities services that are more restrictive than measures

existing on the date of entry into force of this Agreement.

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ANNEX VII

PART C

Schedule of the United States

The United States commits to permit an eligible grupo

financiero that, in formation of the grupo in Mexico before the

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 that 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 such

acquisition. The U.S. securities firm: (i) shall not be

permitted to expand through acquisition in the United States

during such period; and (ii) shall be subject to measures

consistent with national treatment that restrict transactions

between the firms and their affiliates. For purposes of this

paragraph: 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 institución de

crédito that owned or controlled a subsidiary bank, or operated a

branch or agency, in the United States on January 1, 1992.

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ANNEX VII

PART D

Schedule of the United States

For the purposes of Article 1413(2), the United States

designates the Department of the Treasury as its governmental

agency responsible for banking and other financial services, and

the United States Department of Commerce for insurance services.