(ix) Transformer services;
(x) Structural steel;
(xi) Linepipes; and
(xii) Process pipes;
(d) regulations shall not be adopted or maintained that impose restrictions on mode of entry for foreign entities that wish to participate in Malaysia’s upstream oil and gas sector activities of exploring, exploiting, winning and obtaining petroleum that are more non-conforming than the following requirements:
(i) a requirement to have a local establishment;
(ii) a requirement to partner with a subsidiary of Petroliam Nasional Berhad (PETRONAS);
(iii) a requirement, during the exploration stage, that the PETRONAS subsidiary’s participating interest as a Petroleum Arrangement Contractor is ‘carried’ at maximum of its participating interest (3); and
(iv) a requirement that the Petroleum Arrangement Contractors may only procure goods and services from PETRONAS’ List of Licensed Registered Companies (LLRC);
(e) regulations shall not be adopted or maintained that impose restrictions on mode of entry for foreign entities that seek to supply goods and services to Malaysia’s upstream oil and gas sector that are more non-conforming than the following requirements:
(i) a requirement to be licensed on the PETRONAS’ LLRC; and
(ii) a requirement to appoint a local as an exclusive agent, or to establish in Malaysia and form a joint venture with a local company or individual;
(f) regulations with respect to local participation requirements for equity, board of directors and senior management positions for foreign entities licensed on the PETRONAS’ LLRC that seek to supply goods and services shall not be adopted or maintained that are more non-conforming than the requirements for relevant work categories listed in the existing Standardised Work and Equipment Categories for products and services; and
(g) after Malaysia negotiates and executes a contract with an operator or service supplier, non-conforming regulations shall not be applied in a manner that is inconsistent with the terms and conditions of the contract.
SCHEDULE OF MEXICO
INTRODUCTORY NOTES
1. Description provides a general non-binding description of the measure for which the entry is made.
2. In accordance with Article 9.12.1 (Non-Conforming Measures) and Article 10.7.1 (Non-Conforming Measures), the articles of this Agreement specified in the Obligations Concerned element of an entry do not apply to the non-conforming aspects of the law, regulation or other measure identified in the Measures element of that entry.
3. In the interpretation of an entry, all elements of the entry shall be considered. An entry shall be interpreted in the light of the relevant provisions of the Chapters against which the entry is taken. To the extent that:
(a) the Measures element is qualified by a liberalisation commitment from the Description element, the Measures element as so qualified shall prevail over all other elements; and
(b) the Measures element is not so qualified, the Measures element shall prevail over all other elements, unless any discrepancy between the Measures element and the other elements considered in their totality is so substantial and material that it would be unreasonable to conclude that the Measures element should prevail, in which case the other elements shall prevail to the extent of that discrepancy.
4. For the purposes of this Annex:
The term “CMAP” means Mexican Classification of Activities and Products (Clasificación Mexicana de Actividades y Productos) numbers as set out in the National Institute for Statistics and Geography (Instituto Nacional de Estadística y Geografía), Mexican Classification of Activities and Products (Clasificación Mexicana de Actividades y Productos), 1994.
The term “concession” means an authorisation provided by the Mexican 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.
The term “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.
Sector: All
Sub-Sector:
Industry Classification:
Obligations Concerned: National Treatment (Article 9.4)
Level of Government: Central
Measures: United Mexican States Political Constitution (Constitución Política de los Estados Unidos Mexicanos), Article 27
Foreign Investment Law (Ley de Inversión Extranjera), Title II, Chapters I and II
Regulations to the Foreign Investment Law and the National Registry for Foreign Investment (Reglamento de la Ley de Inversión Extranjera y del Registro Nacional de Inversiones Extranjeras), Title II, Chapters I and II
Description: Investment
Foreign nationals or foreign enterprises may not acquire property rights (dominio directo) over land and water in a 100-kilometre strip along the country’s borders or in a 50-kilometre strip inland from its coasts (Restricted Zone).
Mexican enterprises without a foreigners’ exclusion clause may acquire property rights (dominio directo) over real estate located in the Restricted Zone, used for non-residential purposes. Notice of the acquisition must be given to the Ministry of Foreign Affairs (Secretaría de Relaciones Exteriores, SRE) within 60 business days following the date of acquisition.
Mexican enterprises without a foreigners’ exclusion clause may not acquire property rights (dominio directo) over real estate located in the Restricted Zone, used for residential purposes.
Pursuant to the procedure described below, Mexican enterprises without a foreigners’ exclusion clause may acquire rights for the use and enjoyment over real estate in the Restricted Zone, used for residential purposes. Such a procedure shall also apply when foreign nationals or foreign enterprises seek to acquire rights for the use and enjoyment over real estate in the Restricted Zone regardless of the purpose for which the real estate is used. A permit from the SRE is required for credit institutions to acquire, as trustees, rights to real estate located in the Restricted Zone, when the purpose of the trust is to allow the use and enjoyment of such real estate, without granting real property rights thereof, and the trust beneficiaries are the Mexican enterprises without a foreigners’ exclusion clause, or the foreign nationals or foreign enterprises referred to above. The terms “use” and “enjoyment” of the real estate located in the Restricted Zone mean the rights to use or enjoy such real estate, including, as applicable, obtaining benefits, products and, in general, any yield resulting from lucrative operation and exploitation through third parties or through the credit institutions acting as trustees. The duration of the trust referred to in this entry shall be for a maximum period of 50 years, which may be renewed on request by the interested party. The SRE can verify at any time the compliance with the conditions under which the permits referred to in this entry are granted, as well as the submission and veracity of the notices mentioned above. The SRE shall decide on the permits, considering the economic and social benefits that these operations could have on the Nation. Foreign nationals or foreign enterprises seeking to acquire real estate outside the Restricted Zone, shall previously submit to the SRE a statement agreeing to consider themselves Mexican nationals for the above mentioned purposes, and waiving the right to invoke the protection of their governments with respect to such real estate.
Sector: All
Sub-Sector:
Industry Classification:
Obligations Concerned: National Treatment (Article 9.4) Market Access (Article 10.5)
Level of Government: Central
Measures: Foreign Investment Law (Ley de Inversión Extranjera),Title VI, Chapter III
Description: Investment and Cross-Border Trade in Services
The National Commission on Foreign Investment (Comisión Nacional de Inversiones Extranjeras, CNIE), in order to evaluate applications submitted for its consideration (acquisitions or establishment of investments in restricted activities as set out in this Schedule), shall take into account the following criteria: (a) the effects on employment and training of workers; (b) the technological contribution; (c) the compliance with the environmental provisions contained in the environmental legislation; and (d) in general, the contribution to increase the competitiveness of the Mexican productive system. When deciding on an application, the CNIE may only impose requirements that do not distort international trade and that are not prohibited by Article 9.10 (Performance Requirements).
Sector: All
Sub-Sector:
Industry Classification:
Obligations Concerned: National Treatment (Article 9.4)
Level of Government: Central
Measures: Foreign Investment Law (Ley de Inversión Extranjera),Title I, Chapter III As qualified by the Description element
Description: Investment
Favourable resolution from the National Commission on Foreign Investment (Comisión Nacional de Inversiones Extranjeras, CNIE) is required for investors of another Party or their investments to participate, directly or indirectly, in more than 49 per cent of the ownership interest of a Mexican enterprise in an unrestricted sector, only when the total value of the assets of the Mexican enterprise exceeds the applicable threshold at the time the application for acquisition is submitted. The applicable threshold for the review of an acquisition of a Mexican enterprise shall be the amount determined by the CNIE. The threshold at the date of entry into force of this Agreement for Mexico will be the equivalent in Mexican pesos to one billion US dollars, using the official exchange rate on October 5th, 2015. Each year, the threshold will be adjusted according to the nominal growth rate of the Mexican Gross Domestic Product, as published by the National Institute for Statistics and Geography (Instituto Nacional de Estadística y Geografía, INEGI).
Sector: All
Sub-Sector:
Industry Classification:
Obligations Concerned: National Treatment (Article 9.4) Senior Management and Boards of Directors (Article 9.11)
Level of Government: Central
Measures: United Mexican States Political Constitution (Constitución Política de los Estados Unidos Mexicanos), Article 25 General Law of Cooperative Companies (Ley General de Sociedades Cooperativas), Title I, and Title II, Chapter II Federal Labor Law (Ley Federal del Trabajo), Title I Foreign Investment Law (Ley de Inversión Extranjera),Title I, Chapter III
Description: Investment No more than 10 per cent of the persons participating in a Mexican cooperative production enterprise may be foreign nationals. Investors of another Party or their investments may only own, directly or indirectly, up to 10 per cent of the ownership interest in a Mexican cooperative production enterprise. No foreign nationals may engage in general administrative functions or perform managerial activities in that enterprise. A cooperative production enterprise is an enterprise whose members join their personal work, whether physical or intellectual, with the purpose of producing goods or services.
Sector: All
Sub-Sector:
Industry Classification:
Obligations Concerned: National Treatment (Article 9.4)
Level of Government: Central
Measures: Federal Law to Foster the Microindustry and Handicraft Activity (Ley Federal para el Fomento de la Microindustria y la Actividad Artesanal), Chapters I, II, III and IV
Description: Investment Only Mexican nationals may apply for a licence (cédula) to qualify as a microindustry enterprise. Mexican microindustry enterprises may not have foreign persons as partners. The Federal Law to Foster the Microindustry and Handicraft Activity (Ley Federal para el Fomento de la Microindustria y Actividad Artesanal) defines “microindustry enterprise” as the enterprise integrated by up to 15 workers, that is engaged in the transformation of goods, and whose annual sales do not exceed the amount determined periodically by the Ministry of Economy (Secretaría de Economía, SE).
Sector: Agriculture, Livestock, Forestry, and Lumber Activities
Sub-Sector: Agriculture, livestock or forestry
Industry Classification: CMAP 1111 Agriculture CMAP 1112 Livestock and hunting (limited to livestock) CMAP 1200 Forestry and felling Trees
Obligations Concerned: National Treatment (Article 9.4)
Level of Government: Central
Measures: United Mexican States Political Constitution (Constitución Política de los Estados Unidos Mexicanos), Article 27 Agrarian Law (Ley Agraria), Title VI Foreign Investment Law (Ley de Inversión Extranjera),Title I, Chapter III
Description: Investment
Only Mexican nationals or Mexican enterprises may own land for agriculture, livestock or forestry purposes. Such enterprises must issue a special type of share (“T” share) representing the value of that land at the time of its acquisition. Investors of another Party or their investments may only own, directly or indirectly, up to 49 per cent of “T” shares.
Sector: Retail Trade
Sub-Sector: Sale of non-food products in specialised establishments
Industry Classification: CMAP 623087 Retail Trade of Firearms, Cartridges and Munitions CMAP 612024 Wholesale Trade Not Elsewhere Classified (limited to firearms, cartridges and munitions)
Obligations Concerned: National Treatment (Article 9.4)
Level of Government: Central
Measures: Foreign Investment Law (Ley de Inversión Extranjera), Title I, Chapter III
Description: Investment Investors of another Party or their investments may only own, directly or indirectly, up to 49 per cent of the ownership interest in an enterprise established or to be established in the territory of Mexico that is engaged in the sale of explosives, firearms, cartridges, ammunition and fireworks, excluding the acquisition and use of explosives for industrial and extractive activities, and the preparation of explosive mixtures for such activities.
Sector: Communications
Sub-Sector: Broadcasting (radio and free to air television)
Industry Classification: CMAP 941104 Private Production and Transmission of Radio Programs (limited to production and transmission of sound broadcasting (radio) programs) CMAP 941105 Private Services of production, Transmission and Retransmission of Television Programming (limited to transmission and retransmission of free-to-air television programming)
Obligations Concerned: National Treatment (Article 9.4 and Article 10.3) Local Presence (Article 10.6)
Level of Government: Central
Measures: United Mexican States Political Constitution (Constitución Política de los Estados Unidos Mexicanos), Articles 28 and 32 Federal Telecommunications and Broadcasting Law (Ley Federal de Telecomunicaciones y Radiodifusión), Title IV, Chapters I, III and IV, Title XI, Chapter II General Means of Communication Law (Ley de Vías Generales de Comunicación), Book I, Chapter III (when it does not oppose to the Federal Telecommunication and Broadcasting Law) Regulations to the Radio and Television Federal Law, in the Matter of Concessions, Permits and Content of Radio and Television Transmissions (Reglamento de la Ley Federal de Radio y Televisión, en Materia de Concesiones, Permisos y Contenido de las Transmisiones del Radio y Televisión) Foreign Investment Law (Ley de Inversión Extranjera), Title I, Chapters II and III Regulations to the Foreign Investment Law and the National Registry for Foreign Investment (Reglamento de la Ley de Inversión Extranjera y del Registro Nacional de Inversiones Extranjeras), Title VI
Description: Investment and Cross-Border Trade in Services
According to their purposes, sole concessions and frequency band concessions will be granted only to Mexican nationals or enterprises constituted under Mexican laws and regulations. Investors of a Party or their investments may participate up to 49 per cent in concessionaire enterprises providing broadcasting services. This maximum foreign investment, will be applied according to the reciprocity existent with the country in which the investor or trader who ultimately controls it, directly or indirectly, is constituted. For the purposes of the above paragraph, a favourable opinion of the Mexican Foreign Investment Commission is required before granting the sole concession for providing broadcasting services in which foreign investment participate. Among concessions, concessions for indigenous social use shall be granted to indigenous people and indigenous communities of Mexico, with the objective to promote, develop and preserve languages, culture, knowledge, traditions, identity and their internal rules that, under principles of gender equality, enable the integration of indigenous women in the accomplishment of the purposes for which the concession is granted. Under no circumstances may a concession, the rights conferred therein, facilities, auxiliary services, offices or accessories and properties affected thereto, be assigned, encumbered, pledged or given in trust, mortgaged, or transferred totally or partially to any foreign government or state. The State shall guarantee that the broadcasting promotes the values of national identity. The broadcasting concessions shall use and stimulate local and national artistic values and expressions of Mexican culture. The daily programme starring actors shall include a larger time covered by Mexicans.
Sector: Communications
Sub-Sector: Telecommunications (Including resellers and restricted television and audio service)
Industry Classification: CMAP 720006 Other Telecommunications Services (limited to satellite communications) CMAP 720006 Other Telecommunications services (Not including Enhanced or Value Added Services) CMAP 502003 Telecommunications installations CMAP 720006 Other Telecommunications Services (limited to resellers)
Obligations Concerned: National Treatment (Article 9.4 and Article 10.3) Local Presence (Article 10.6)
Level of Government: Central
Measures: United Mexican States Political Constitution (Constitución Política de los Estados Unidos Mexicanos), Article 28 Federal Telecommunications and Broadcasting Law (Ley Federal de Telecomunicaciones y Radiodifusión),Title IV, Chapters I, III and IV, Title V, chapter VIII, and Title VI, Unique Chapter General Means of Communication Law (Ley de Vías Generales de Comunicación) (when it does not oppose to the Federal Telecommunications and Broadcasting Law) Foreign Investment Law (Ley de Inversión Extranjera) Title I, Chapter II Regulations to the Foreign Investment Law and the National Registry for Foreign Investment (Reglamento de la Ley de Inversión Extranjera y del Registro Nacional de Inversiones Extranjeras), Title VI
Description: Investment and Cross-Border Trade in Services According to their purposes, sole concessions and frequency band concessions will be granted only to Mexican nationals or enterprises constituted under Mexican Laws and regulations.
Among concessions, concessions for indigenous social use shall be granted to indigenous people and indigenous communities of Mexico, with the objective to promote, develop and preserve languages, culture, knowledge, traditions, identity and their internal rules that, under principles of gender equality, enable the integration of indigenous women in the accomplishment of the purposes for which the concession is granted. Concessions for indigenous social use shall only be granted to indigenous people and indigenous communities in Mexico without any kind of foreign investment. Under no circumstances may a concession, the rights conferred therein, facilities, auxiliary services, offices or accessories and properties affected thereto, be assigned encumbered, pledged or given in trust, mortgaged, or transferred totally or partially to any foreign government or state. Only Mexican nationals and enterprises established under Mexican laws may obtain authorisation to provide telecommunication services as a reseller without being a concessionaire.
Sector: Communications
Sub-Sector: Transportation and telecommunications
Industry Classification: CMAP 7200 Communications (including telecommunications and postal services) CMAP 7100 Transport
Obligations Concerned: National Treatment (Article 9.4)
Level of Government: Central Measures Ports Law (Ley de Puertos), Chapter IV Regulatory Law of the Railway Service (Ley Reglamentaria del Servicio Ferroviario), Chapter II, Section III Civil Aviation Law (Ley de Aviación Civil), Chapter III, Section III Airports Law (Ley de Aeropuertos), Chapter IV Roads, Bridges and Federal Road Transport Law (Ley de Caminos, Puentes y Autotransporte Federal), Title I, Chapter III Federal Telecommunications and Broadcasting Law (Ley Federal de Telecomunicaciones y Radiodifusión),Title IV, Chapters I, III and IV General Means of Communication Law (Ley de Vías Generales de Comunicación), Book I, Chapters III and V
Description: Investment
Foreign governments and foreign States may not invest, directly or indirectly, in Mexican enterprises engaged in communications, transportation and other general means of communications.
Sector: Transportation
Sub-Sector: Land transportation and water transportation
Industry Classification: CMAP 501421 Construction of Maritime and River Works CMAP 501422 Construction of Roadworks and Works for Land Transport Obligations Concerned: National Treatment (Article 9.4 and Article 10.3) Local Presence (Article 10.6)
Level of Government: Central
Measures: United Mexican States Political Constitution (Constitución Política de los Estados Unidos Mexicanos), Article 32 Roads, Bridges and Federal Road Transport Law (Ley de Caminos, Puentes y Autotransporte Federal),Title I, Chapter III Ports Law (Ley de Puertos), Chapter IV Commercial and Navigation Maritimes Law (Ley de Navegación y Comercio Marítimos), Title I, Chapter II
Description: Investment and Cross-Border Trade in Services
A concession granted by the Ministry of Communications and Transportation (Secretaría de Comunicaciones y Transportes, SCT) is required to construct and operate, or only operate, marine or river works. A concession is also required to build, operate, exploit, conserve or maintain federal roads and bridges. Only Mexican nationals and Mexican enterprises may obtain such a concession.
Sector: Energy
Sub-Sector: Oil and other hydrocarbons exploration and production
Transportation, treatment, refining, processing, storage, distribution, compression, liquefaction, decompression, regasification, sale to the public and commercialisation of hydrocarbons, petroleum products and petrochemicals, as well as the users of such products and services. Exporting and importing of hydrocarbons and petroleum products
Industry Classification:
Obligations Concerned: National Treatment (Article 9.4 and Article 10.3) Performance Requirements (Article 9.10) Market Access (Article 10.5) Local Presence (Article 10.6)
Level of Government: Central
Measures: United Mexican States Political Constitution (Constitución Política de los Estados Unidos Mexicanos), Articles 25, 27 and 28 Hydrocarbons Law (Ley de Hidrocarburos), Articles 1, 3, 5, 6, 11, 18, 41, 46, 83, 120, 128 and Twenty Fourth Transitory Provision Foreign Trade Law (Ley de Comercio Exterior) Hydrocarbons Law Regulations (Reglamento de la Ley de Hidrocarburos), Articles 14 and 36. Regulation of the activities referred to by the Third Title of the Hydrocarbons Law (Reglamento de las actividades a que se refiere el Título Tercero de la Ley de Hidrocarburos), Article 51 Methodology for the Measurement of the National Content in the Entitlements and Exploration and Production Contracts of Hydrocarbons, and the permits in the Hydrocarbons Industry, issued by the Ministry of Economy (Metodología para la Medición del Contenido Nacional en Asignaciones y Contratos para la Exploración y Extracción de Hidrocarburos, así como para los permisos en la Industria de Hidrocarburos, emitida por la Secretaría de Economía)
Description: Investment and Cross-Border Trade in Services
The Nation has the direct, inalienable and imprescriptible ownership of all hydrocarbons in the subsoil of the national territory, including the continental shelf and the exclusive economic zone located outside the territorial sea and adjacent thereto, in strata or deposits, regardless of their physical conditions. Only the Nation shall conduct the exploration and production of hydrocarbons, through entitlements or contracts. The exploration and production contracts shall invariably stipulate that the hydrocarbons in the subsoil are property of the Nation. The Ministry of Energy (Secretaría de Energía) shall establish the appropriate contract model for each contractual area that undergoes a bidding process and is awarded according to the laws; for which it may choose among other contracting models: services, profit-sharing, production-sharing or licenses. The exploration and production activities of hydrocarbons conducted in the national territory through entitlements and exploration and production contracts must comply with a minimum national content percentage goal on average. This national content average goal will not take into account exploration and production of hydrocarbons in deep-water and ultra-deep water, which will have a different national content requirement established by the Ministry of Economy (Secretaría de Economía, SE) with the opinion of the Ministry of Energy considering the characteristics of those activities. The above mentioned mandate must comply with the methodology established by the Ministry of Economy, and must consider that it does not affect the competitive position of the Petróleos Mexicanos (PEMEX) or any other state productive enterprises and other economic agents developing exploration and production of hydrocarbons. The Federal Executive shall establish safeguard zones in the areas in which the State decides to prohibit exploration and production activities, different from protected natural areas in which entitlements and contracts cannot be awarded. The Mexican Government should include within the conditions for the entitlements and exploration and production contracts, as well as in the permits, that under the same circumstances of prices, quality and timely delivery, preference should be given to the purchase of national goods and the contracting of domestic services, including the training and hiring, at a technical and management level, of Mexican nationals. The Ministry of Energy and the Energy Regulatory Commission (Comisión Reguladora de Energía, CRE) will establish the permit models for the transportation, treatment, refining, processing, storage, distribution, compression, liquefaction, decompression, regasification, sale to the public and commercialisation of hydrocarbons, petroleum products and petrochemicals, taking into account that permit-holders must have an address in Mexico. The permits for the exporting and importing of hydrocarbons and petroleum products will be issued according to the Foreign Trade Law, which requires permit-holders to have a domicile in Mexico.
Sector: Energy
Sub-Sector: Oil and other hydrocarbons exploration and production
Transportation, treatment, refining, processing, storage, distribution, compression, liquefaction, decompression, regasification, sale to the public and commercialisation of hydrocarbons, petroleum products and petrochemicals, as well as the users of such products and services
Industry Classification:
Obligations Concerned: National Treatment (Article 9.4 and Article 10.3) Performance Requirements (Article 9.10) Market Access (Article 10.5) Local Presence (Article 10.6)
Level of Government: Central
Measures: United Mexican States Political Constitution (Constitución Política de los Estados Unidos Mexicanos), Articles, 25, 27 and 28. Decree amending and supplementing various provisions of the Articles 25, 27 and 28 of the United Mexican States Political Constitution (Constitución Política de los Estados Unidos Mexicanos) Hydrocarbons Law (Ley de Hidrocarburos), Articles 1, 3, 5, 6, 8, 11, 12, 16, 17, 18, 19, 29, 41, 46 83, 122, 128 and transitory provisions 8, 24, and 28 Petróleos Mexicanos Law (Ley de Petróleos Mexicanos), Articles 2, 4, 5, 7, 59, 63, 76, 77, and 78. Hydrocarbons Law Regulations (Reglamento de la Ley de Hidrocarburos), Articles 14 and 36
Description: Investment and Cross-Border Trade in Services
The Nation has the direct, inalienable and imprescriptible ownership of all hydrocarbons in the subsoil of the national territory, including the continental shelf and the exclusive economic zone located outside the territorial sea and adjacent thereto, in strata or deposits, regardless of their physical conditions. Only the Nation shall conduct the exploration and production of hydrocarbons, through entitlements or contracts, which must invariably stipulate that the hydrocarbons in the subsoil are property of the Nation. The Ministry of Energy (Secretaría de Energía), with technical assistance from the National Hydrocarbons Commission (Comisión Nacional de Hidrocarburos), might award entitlements to Petróleos Mexicanos (PEMEX), as a state productive enterprise, for the exploration and production of hydrocarbons. In that regard, PEMEX may only transfer an entitlement to another state productive enterprise. In order to perform the activities related to the entitlements, PEMEX shall only execute service contracts with private parties. The State may mandate PEMEX through its entitlements, exploration and production contracts, and permits, to include preferences for the purchase of national goods, contracting domestic services, as well as a preference for nationals, including technicians and senior management. The above mentioned mandate must comply with the methodology established by the Ministry of Economy (Secretaría de Economía, SE), and consider that it does not affect the competitive position of the state productive enterprise and other economic agents developing exploration and production of hydrocarbons. The Ministry of Energy (Secretaría de Energía) might establish a direct participation for PEMEX, or another state productive enterprise, in the contracts for exploration and production of hydrocarbons, when the contractual area coexists with an entitlement, when there are opportunities to transfer knowledge and technology, and when there is the possibility of finding a transboundary reservoir. Until December 31, 2017 PEMEX may be the sole entity in charge of the commercialisation of hydrocarbons. Until December 31, 2016 PEMEX will be the only permit-holder for the importing and exporting of gasolines and diesel. The Ministry of Energy (Secretaría de Energía) and the Energy Regulatory Commission (Comisión Reguladora de Energía) will establish the permit models for the transportation, treatment, refining, processing, storage, distribution, compression, liquefaction, decompression, regasification, sale to the public and commercialisation of hydrocarbons, petroleum products and petrochemicals, taking into account that permit-holders must have an address in Mexico. The permits for the exporting and importing of hydrocarbons and petroleum products will be issued according to the Foreign Trade Law, which requires permit-holders to have a domicile in Mexico.
Sector: Energy
Sub-Sector: Electricity
Industry Classification:
Obligations Concerned: National Treatment (Article 9.4 and Article 10.3) Performance Requirements (Article 9.10) Market Access (Article 10.5) Local Presence (Article 10.6)
Level of Government: Central Measures: Decree amending and supplementing various provisions of Articles 25, 27 and 28 of the United Mexican States Political Constitution (Constitución Política de los Estados Unidos Mexicanos) Electric Industry Law (Ley de la Industria Eléctrica), Articles 30, 91, 93, and 130 Federal Electricity Commission Law (Ley de la Comisión Federal de Electricidad), Articles 5 and 78 Hydrocarbons Law (Ley de Hidrocarburos), Article 128 Geothermal Energy Law (Ley de Energía Geotérmica), Article 30
Description: Investment and Cross-Border Trade in Services
Through contracts, private persons, on behalf of the Nation, may perform, among other activities, the financing, installation, maintenance, management, operation and expansion of the infrastructure needed to provide the public service of transmission and distribution of electricity. The modalities of contracts to perform the above mentioned activities must be subject to a minimum percentage of national content, which will be determined by the Ministry of Energy (Secretaría de Energía) and the Energy Regulatory Commission (Comisión Reguladora de Energía) with the opinion of the Ministry of Economy (Secretaría de Economía), except when there are not national suppliers to fulfill that requirement. Regarding all other corporate activities of the Federal Electricity Commission (Comisión Federal de Electricidad, CFE), and its subsidiary productive enterprises, according to CFE’s Law the Board of Directors will issue regulations for the acquisition, leasing, contracting of services and execution of works. Among others, the Board may require minimum national content percentages according to the nature of the contracting, the tariff regulation and in accordance with the international treaties in which Mexico is a signatory. The Ministry of Energy and the Energy Regulatory Commission, with the opinion of the Ministry of the Economy, should include within the conditions for the assignation and Exploration and Production contracts, as well as for the permits, that under the same circumstances of prices, quality, and timely delivery, preference should be given to the purchase of national goods and the hiring of domestic services, including training and hiring, at a technical and management level, persons with Mexican nationality. The Ministry of Energy will grant permits for the exploration and concessions for the exploitation of areas with geothermal resources to natural persons or to enterprises incorporated under the Mexican legislation, in order to generate electricity or for other purposes. All permits granted under the Electric Industry Law will be granted by the Energy Regulatory Commission (Comisión Reguladora de Energía (CRE)). Permit holders must be natural persons or enterprises incorporated under the Mexican legislation.
Sector: Energy
Sub-Sector: Hydrocarbons and petroleum products
Industry Classification: CMAP 626000 Retail Trade of Gasoline and Diesel (including lubricants, oils and additives sold at service stations)
Obligations Concerned: Local Presence (Article 10.6)
Level of Government: Central Measures: Hydrocarbons Law (Ley de Hidrocarburos) Transitory Provision 14 Regulation of the activities referred to by the Third Title of the Hydrocarbons Law (Reglamento de las actividades a que se refiere el Título Tercero de la Ley de Hidrocarburos), Article 51
Description: Cross-Border Trade in Services
Permits for the sale to the public of gasoline and diesel fuel will be granted by the Energy Regulatory Commission (Comisión Reguladora de Energía, CRE) starting on January 1, 2016 to economic agents established in the Mexican territory.
Sector: Energy
Sub-Sector: Hydrocarbons and petroleum products (supply of fuel and lubricants for aircraft, ships and railway equipment)