Measures: Shipping Conferences Exemption Act, 1987, R.S.C. 1985, c. 17 (3rd Supp.)
Description: Cross-Border Services
Members of a shipping conference must 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 those carriers of goods by water.
Phase-Out: None
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
Measures: Coasting Trade Act, S.C. 1992, c. 31
Description: Cross-Border Services
The prohibitions under the Coasting Trade Act, set out in Schedule of Canada, Annex II, page II-C-11, 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.
Phase-Out: None
Annex I. Schedule of Mexico
Sector: All Sectors
Sub-Sector:
Industrial Classification:
Type of Reservation: National Treatment (Article 1102)
Level of Government: Federal
Measures: Constitución Política de los Estados Unidos Mexicanos, Artículo 27
Ley de Nacionalidad y Naturalización, Capítulos IV, VI
Ley Orgánica de la Fracción I del Artículo 27 de la Constitución
Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera, Capítulos I, IV, V
Reglamento de la Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera, Título I; Título II, Capítulos I, II; Título III, Capítulo III; Título VI; Título VIII, Capítulo IV
Description: Investment
Foreign nationals or foreign enterprises, or Mexican enterprises without a foreigners' exclusion clause, may not acquire property rights ("dominio directo") over land and water in a 100-kilometer strip along the country's borders or in a 50-kilometer strip inland from its coasts (the Restricted Zone). Lease of land for more than 10 years is deemed to be an acquisition.
Foreign nationals, foreign enterprises or Mexican enterprises may acquire "Certificados de Participación Inmobiliaria" (CPI's). CPI's grant the beneficiaries the right to use and enjoy property and to receive the profits that it may obtain from the profitable use of property.
CPI's are issued by a Mexican credit institution that has been granted authorization to acquire through trust the title to real estate intended for industrial and tourism activities in the Restricted Zone for a period not to exceed 30 years. The trust is renewable if:
(a) the beneficiaries of the trust that is to be extinguished or terminated will be the beneficiaries of the new trust;
(b) the new trust is to be executed under the same terms and conditions as the trust that is to be extinguished or terminated, in respect of the purposes of the trust, the use of the property and its characteristics;
(c) the respective permits are requested within a period of 360 to 181 days preceding the termination or extinction of the trust; and
(d) the provisions of the Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera are observed.
Phase-Out: None
Sector: All Sectors
Sub-Sector:
Industrial Classification:
Type of Reservation:
Level of Government: National Treatment (Article 1102)
Federal
Measures: Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera, Capítulos I, II, III, V, VI
Reglamento de la Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera, Título I; Título II, Capítulos I, III, IV; Título IV; Título V; Título VIII, Capítulos I-V; Título IX, Capítulos I, II, III
As qualified by the Description element
Description: Investment
The Comisión Nacional de Inversiones Extranjeras, 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) its effects on employment and training;
(b) its technological contribution; or
(c) in general, its contribution to increase Mexican industrial productivity and competitiveness.
The Comisión Nacional de Inversiones Extranjeras may impose performance requirements that are not prohibited by Article 1106.
Phase-Out: None
Sector: All Sectors
Sub-Sector:
Industrial Classification:
Type of Reservation: National Treatment (Article 1102)
Level of Government: Federal
Measures: Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera, Capítulos I, II, III, V, VI
Reglamento de la Ley Para Promover la Inversión Mexicana y Regular la Inversión Extranjera, Título I; Título II, Capítulo I; Título IV; Título V; Título VIII, Capítulos I-V; Título IX, Capítulos I, II, III
As qualified by the Description element
Description: Investment
The Comisión Nacional de Inversiones Extranjeras will only review direct or indirect acquisitions by an investor of another Party of more than 49 percent of the ownership interest in a Mexican enterprise in an unrestricted sector, that is directly or indirectly owned or controlled by Mexican nationals, if the value of the gross assets of the Mexican enterprise is not less than the applicable threshold.
Phase-Out: For investors and investments of investors of Canada or the United States, the applicable threshold for the review of an acquisition of a Mexican enterprise will be:
(a) US$25 million, for the three-year period beginning on the date of entry into force of this Agreement;
(b) US$50 million, for the three-year period beginning three years after the date of entry into force of this Agreement;
(c) US$75 million, for the three-year period beginning six years after the date of entry into force of this Agreement; and
(d) US$150 million, beginning nine years after the date of entry into force of this Agreement.
Beginning one year after the date of entry into force of this Agreement, each of these thresholds will be adjusted annually for cumulative inflation from the date of entry into force of this Agreement, based on the implicit price deflator for U.S. Gross Domestic Product (GDP) or any successor index published by the Council of Economic Advisors in "Economics Indicators".
The value of a threshold adjusted for cumulative inflation up to January of each year following 1994 shall be equal to the original value of the threshold multiplied by the following ratio:
(a) the implicit GDP price deflator or any successor index published by the Council of Economic Advisors in "Economic Indicators", current as of January of that year; to
(b) the implicit GDP price deflator or any successor index published by the Council of Economic Advisors in "Economic Indicators", current as of the date of entry into force of this Agreement,
provided that the implicit GDP price deflators under paragraphs (a) and (b) have the same base year.
The resulting adjusted threshold will be rounded to the nearest million dollars.
Beginning 10 years after the date of entry into force of this Agreement, the threshold will be adjusted annually by the rate of growth of the nominal Mexican GDP, as published by the Instituto Nacional de Estadística, Geografía e Informática. Whenever the U.S. dollar amount calculated for the threshold is, at the prevailing market exchange rate, equal to or higher than the amount calculated pursuant to Schedule of Canada, Annex I, page I-C-2, the calculation of the applicable threshold will be made according to the rules established therein. In no case will the threshold, as converted into U.S. dollars, exceed that of Canada.
Sector: All Sectors
Sub-Sector:
Industrial Classification:
Type of Reservation: National Treatment (Article 1102)
Senior Management and Boards of Directors (Article 1107)
Level of Government: Federal
Measures: Constitución Política de los Estados Unidos Mexicanos, Artículo 25
Ley General de Sociedades Cooperativas, Título I, Capítulo I; Título II, Capítulo II
Description: Investment
No more than 10 percent of the persons participating in a Mexican cooperative production enterprise may be foreign nationals.
No foreign national may engage in general administrative functions or perform managerial activities in that enterprise.
Phase-Out: None
Sector: All Sectors
Sub-Sector:
Industrial Classification:
Type of Reservation: National Treatment (Article 1102)
Level of Government: Federal
Measures: Ley Federal para el Fomento de la Microindustria, Capítulos I, II, III
Description: Investment
Only Mexican nationals may apply for a license ("cédula") to qualify as a microindustry enterprise.
Mexican "microindustry enterprises" may not have foreign persons as partners.
The Ley Federal para el Fomento de las Microindustria defines "microindustry enterprise" as including enterprises with up to fifteen workers and with sales of amounts periodically determined by the Secretaría de Comercio y Fomento Industrial.
Phase-Out: None
Sector: Agriculture, Livestock, Forestry and Lumber Activities
Sub-Sector: Agriculture, Livestock or Forestry
Industry Classification: CMAP 1111 - Agriculture
CMAP 1112 - Livestock and Game (limited to livestock)
CMAP 1200 - Forestry and Felling Trees
Type of Reservation: National Treatment (Article 1102)
Level of Government: Federal
Measures: Constitución Política de los Estados Unidos Mexicanos, Artículo 27
Ley Agraria, Títulos V, VI
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" shares) representing the value of that land at the time of its acquisition. Investors of another Party or their investments may only own up to 49 percent of "T" shares.
Phase-Out: None
Sector: Communications
Sub-Sector: Entertainment Services (Broadcasting, Multipoint Distribution Systems (MDS) and Cable Television)
Industry Classification: CMAP 941104 - Private Production and Transmission of Radio Programs (limited to production and transmission of radio programs, MDS and uninterrupted music)
CMAP 941105 - Private Services of Production, Transmission and Retransmission of Television Programming (limited to production, transmission and retransmission of television programming, MDS, direct broadcasting systems and high-definition television and cable television)
Type of Reservation: National Treatment (Article 1202)
Performance Requirements (Article 1106)
Level of Government: Federal
Measures: Ley Federal de Radio y Televisión, Título IV, Capítulo III
Reglamento de la Ley Federal de Radio y Televisión y de la Ley de la Industria Cinematográfica Relativo al Contenido de las Transmisiones de Radio y Televisión, Título III
Reglamento del Servicio de Televisión por Cable, Capítulo VI
Description: Cross-Border Services and Investment
For the protection of copyrights, the holder of a concession for a commercial broadcast station or for a cable television system is required to obtain an authorization from the Secretaría de Gobernación to import in any form radio or televisionprogramming for broadcast or cable distribution within the territory of Mexico.
The authorization will be granted if the application for authorization includes documentation showing that the copyright holder has granted the license ("derechos") to broadcast or distribute by cable such programming.
Phase-Out: None
Sector: Communications
Sub-Sector: Entertainment Services (Broadcasting, Multipoint Distribution Systems (MDS) and Cable Television)
Industry Classification: CMAP 941104 - Private Production and Transmission of Radio Programs (limited to production and transmission of radio programs, MDS and uninterrupted music)
CMAP 941105 - Private Services of Production, Transmission and Retransmission of Television Programming (limited to production, transmission and retransmission of television programming, MDS, direct broadcasting systems, highdefinition television and cable television)
Type of Reservation: National Treatment (Article 1202)
Performance Requirements (Article 1106)
Level of Government: Federal
Measures: Ley Federal de Radio y Televisión, Título IV, Capítulo III
Reglamento de la Ley Federal de Radio y Televisión y de la Ley de la Industria Cinematográfica Relativo al Contenido de las Transmisiones de Radio y Televisión, Título III
Reglamento del Servicio de Televisión por Cable, Capítulo VI
Description: Cross-Border Services and Investment
The use of the Spanish language is required for the broadcast, cable or multipoint distribution system distribution of radio or television programming, except when the Secretaría de Gobernación authorizes the use of another language.
A majority of the time of each day's live broadcast programs must feature Mexican nationals.
A radio or television announcer or presenter who is not a Mexican national must obtain an authorization from the Secretaría de Gobernación to perform in Mexico.
Phase-Out: None
Sector: Communications
Sub-Sector: Entertainment Services (Broadcasting, Multipoint Distribution Systems (MDS) and Cable Television)
Industry Classification: CMAP 941105 - Private Services of Production, Transmission and Retransmission of Television Programming (limited to broadcasting, cable television and MDS)
Type of Reservation: National Treatment (Article 1202) Performance Requirements (Article 1106)