Annex 6 referred to in Chapters 7 and 8. Reservations for Existing Measures

1. The Schedule of a Party sets out, pursuant toparagraph 1 of Articles 66 and 101, the reservations takenby that Party with respect to existing measures that do notconform with obligations imposed by:

(a) Article 58 or 98 (National Treatment);

(b) Article 59 or 99 (Most-Favored-Nation Treatment);

(c) Article 64 (Senior Management and Boards ofDirectors);

(d) Article 65 (Performance Requirements); or

(e) Article 100 (Local Presence);

and, in certain cases, sets out commitments for immediateor future liberalization.

2. Each reservation sets out the following elements:

(a) “Sector” refers to the general sector in which areservation is taken;

(b) “Sub-Sector” refers to the specific sector inwhich a reservation is taken;

(c) “Industry Classification” refers, whereapplicable, to the activity covered by thereservation according to domestic industryclassification codes;

(d) “Type of Reservation” specifies the obligationreferred to in paragraph 1 above for which areservation is taken;

(e) “Level of Government” indicates the level of

government maintaining the measure for which areservation is taken;

(f) “Measures” identifies the existing laws,

regulations or other measures, as qualified,

where indicated, by the Description element, forwhich the reservation is taken. A measure cited

in the Measures element:

(i) means the measure as amended, continued orrenewed as of the date of entry into forceof this Agreement, and

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(ii) includes any subordinate measure adopted ormaintained under the authority of andconsistent with the measure;

(g) “Description” sets out commitments, if any, forliberalization on the date of entry into force ofthis Agreement and, with regard to theobligations referred to in paragraph 1 above, theremaining non-conforming aspects of the existingmeasures for which the reservation is taken; and

(h) “Phase-Out” sets out commitments, if any, forliberalization after the date of entry into forceof this Agreement.

3. In the interpretation of a reservation, all elementsof the reservation shall be considered. A reservation

shall be interpreted in the light of the relevantprovisions of the Chapters against which the reservation istaken. To the extent that:

(a) the Phase-Out element provides for the phasingout of non-conforming aspects of measures, thePhase-Out element shall prevail over all otherelements;

(b) the Measures element is qualified by aliberalization commitment from the Descriptionelement, the Measures element as so qualifiedshall prevail over all other elements; and

(c) the Measures element is not so qualified, theMeasures element shall prevail over all otherelements, unless any discrepancy between theMeasures element and the other elements

considered in their totality is so substantialand material that it would be unreasonable to

conclude that the Measures element should

prevail, in which case the other elements shallprevail to the extent of that discrepancy.

4. Where a Party maintains a measure that requires that aservice supplier be a national, permanent resident orresident of that Party as a condition to the supply of aservice in its Area, a reservation for that measure takenwith respect to Article 98, 99 or 100 shall operate as areservation with respect to Article 58, 59 or 65 to theextent of that measure.

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5. For the purposes of determining the percentage offoreign investment in the economic activities subject tomaximum percentages of foreign equity participation as setout in the Schedule of Mexico, the foreign investmentindirectly carried out in such activities through Mexicanenterprises holding majority of Mexican capital will not betaken into account, provided that such enterprises are notcontrolled by the foreign investment.

6. The prior notification requirement under the ForeignExchange and Foreign Trade Law (Law No. 228, 1949) as setout in the Schedule of Japan means the requirement that aninvestor of Mexico or an enterprise of Japan which theinvestor of Mexico owns or controls submits a notification

concerning the intended investment to the Minister ofFinance and the Minister in charge of the industryconcerned. If the Ministers consider that the investment

concerned could adversely affect national security, publicorder or public safety, or sound management of nationaleconomy, they may make recommendation or order to changethe planning of the investment or to cancel the investment.

7. For the purposes of this Annex:

the term “CMAP” means Mexican Classification of

Activities and Products (Clasificación Mexicana deActividades y Productos) numbers as set out inNational Institute for Statistics, Geography andInformatics (Instituto Nacional de Estadística,

Geografía e Informática), Mexican Classification ofActivities and Products (Clasificación Mexicana deActividades y Productos), 1994;

the term “concession” means an authorization providedby the Mexican State to a person to exploit a naturalresource or provide a service, for which Mexicannationals and Mexican enterprises are granted priorityover foreigners;

the term “foreigners’ exclusion clause” means theexpress provision in an enterprise’s by-laws, statingthat the enterprise shall not allow foreigners,

directly or indirectly, to become partners orshareholders of the enterprise; and

the term “JSIC” means Japan Standard IndustrialClassification numbers as set out in the Statistics

Bureau, Ministry of Internal Affairs andCommunications, Japan Standard IndustrialClassification, revised March 7, 2002.

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1 Sector:

Schedule of Japan

Automobile Maintenance Business

Sub-Sector: Motor Vehicle Disassembling RepairBusiness

IndustryClassification:

JSIC 86 Automobile maintenance

services

Type ofReservation:

Local Presence (Article 100)

Level of

Government:

Central Government

Measures:

Description:

Phase-Out:

Road Vehicle Law (Law No. 185 of1951), Chapter 6

Cross-Border Services

A person who intends to conduct motorvehicle disassembling repairbusinesses is required to establish aworkplace in Japan, and to obtain anapproval of the Director-General ofthe District Transport Bureau havingjurisdiction over the district wherethe workplace is located.

None

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2 Sector: Business Services

Sub-Sector:

IndustryClassification:

JSIC 9051 Private employmentservices

JSIC 9095 Worker dispatchingservices

Type ofReservation:

Local Presence (Article 100)

Level of

Government:

Central Government

Measures:

Description:

Phase-Out:

Employment Security Law (Law No. 141of 1947), Chapter 3

Law Concerning Securing the ProperOperation of Worker DispatchingUndertakings and Improved WorkingConditions for Dispatched Workers(Law No. 88 of 1985), Chapter 2

Port Labour Law (Law No. 40 of 1988),

Chapter 4

Mariner’s Employment Security Law(Law No. 130 of 1948), Chapter 3

Cross-Border Services

A person who intends to supplyprivate job placement services orworker dispatching services includingstevedore dispatching services andmariner dispatching services forenterprises in Japan is required tohave an establishment in Japan, andto obtain a permission from, or tosubmit notification to the competentauthority, as applicable.

None

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3 Sector: Construction

Sub-Sector:

IndustryClassification:

JSIC 06 Construction work,

general, including

public and privateconstruction work

JSIC 07 Construction work byspecialist contractor,

except equipment

installation work

JSIC 08 Equipment installationwork

Type ofReservation:

Local Presence (Article 100)

Level of

Government:

Central Government

Measures:

Description:

Construction Business Law (LawNo. 100 of 1949), Chapter 2

Law Concerning Recycling ofConstruction Materials (Law No. 104of 2000), Chapter 5

Cross-Border Services

1. A person who intends to conductconstruction businesses is requiredto establish a place of businesses inJapan, and to obtain permission fromthe Minister of Land, Infrastructureand Transport or from the prefecturalgovernor having jurisdiction over thedistrict where the place of businessis located.

Phase-Out:

2. A person who intends to conductdemolition work businesses is

required to establish a place ofbusiness in Japan, and to registerwith the prefectural governor havingjurisdiction over the district wherethe place of business is located.

None

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4 Sector:

Sub-Sector:

Heat Supply

IndustryClassification:

JSIC 3511 Heat supply

Type ofReservation:

National Treatment (Article 58)

Level of

Government:

Central Government

Measures:

Description:

Phase-Out:

Foreign Exchange and Foreign TradeLaw (Law No. 228 of 1949), Article 27

Cabinet Order of Foreign DirectInvestment (Cabinet Order No. 261 of1980), Article 3

Investment

The prior notification requirementunder the Foreign Exchange andForeign Trade Law applies to foreigninvestors who intend to make

investment in the heat supplyindustry in Japan.

None

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5 Sector: Information and Communication

Sub-Sector: Telecommunications

IndustryClassification:

Type ofReservation:

Level of

Government:

National Treatment (Article 58)

Senior Management and Boards ofDirectors (Article 64)

Central Government

Measures:

Description:

Law Concerning Nippon Telegraph andTelephone Corporation (Law No. 85 of1984), Articles 6 and 10

Investment

1. Nippon Telegraph and TelephoneCorporation may not enter the nameand address in its register ofshareholders if the aggregate of theratio of the voting rights directlyand/or indirectly held by the personsset forth in item (a) through (c)