(c) "Industrial Classification" refers, where relevant, to:
(i) in the case of Mexico, to the activity covered by the reservation, according to its national industrial classification code; and
(i) in the case of Mexico, the activity covered by the reservation, in accordance with its national industrial classification code; and
(ii) in the case of Uruguay, the CPC, which is used as a reference;
(d) "Reservation Type" specifies the obligation referred to in paragraph 2 on which a reservation is taken; and (e) "Reservation Type" specifies the obligation referred to in paragraph 2 on which a reservation is taken.
(d) "Reservation Type" specifies the obligation referred to in paragraph 2 on which a reservation is taken;
(e) "Level of Government" indicates the level of government that maintains the measure on which the reservation is taken;
(f) "Measures'' identifies the laws, regulations or other measures, as qualified, where indicated, by the Description element, in respect of which the reservation is taken. A measure referred to in the Measures element
(i) means the measure, as modified, continued or renewed, as of the date of entry into force of this Agreement; and
(ii) includes any measure subordinate to, adopted or maintained under the authority of, and consistent with, that measure;
(g) "Description" sets out the liberalisation commitments, where made, as of the date of entry into force of this Agreement, and the remaining non-conforming aspects of existing measures on which the reservation is taken; and
(h) "Reduction Schedule" indicates the liberalisation commitments, where taken, after the date of entry into force of this Agreement.
4. In interpreting a reservation, all elements of the reservation shall be considered. A reservation shall be interpreted in the light of the relevant provisions of the Chapter against which the reservation is taken.
Chapter against which the reservation is taken. To the extent that:
(a) the Reduction Schedule element provides for a phased reduction of the non-conforming aspects of the measures, the Reduction Schedule element shall prevail over all other elements;
(b) the Measures element is qualified in the Description element, the Measures element, as qualified, shall prevail over all other elements; and
(c) 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, taken as a whole, is so substantial and significant that it would not be unreasonable to conclude that the Measures element should prevail, in which case the other elements shall prevail to the extent of that discrepancy.
5. Where a Party maintains a measure that requires a service supplier to be a national, permanent resident or resident of that Party as a condition for the supply of a service in its territory, a reservation taken with respect to a measure under Article 10-03, 10-04 or 10-05 shall operate as a reservation with respect to Article 13-03, 13-04 or 13-07 with respect to that measure.
6. For the purpose of determining the percentage of foreign investment in economic activities subject to the maximum percentages of foreign equity participation, as indicated in Mexico's Schedule, indirect foreign investment carried out in such activities through Mexican enterprises with majority Mexican ownership shall not be taken into account, provided that such enterprises are not controlled by the foreign investment.
List of Mexico
Sector: All sectors
Subsector:
Industrial Classification:
Reservation Type: National Treatment (Article 13-03)
Level of Government: Federal
Measures:
Political Constitution of the United Mexican States, Article 27
Foreign Investment Law, Title II, Chapters I and II.
Regulation of the Law on Foreign Investment and the National Registry of Foreign Investment, Title II, Chapters I and II
Description: Investment
Foreign nationals or foreign companies may not acquire direct dominion over land and water within a 100-kilometre strip along the borders and 50 kilometres along the beaches (the Restricted Zone).
Mexican companies without a foreign exclusion clause may acquire direct ownership of real estate used for non-residential activities located in the Restricted Zone. Notice of such acquisition must be submitted to the Ministry of Foreign Affairs (SRE) within sixty working days following the date on which the acquisition is made.
Mexican companies without a foreign exclusion clause may not acquire direct ownership of real property intended for residential purposes located in the Restricted Zone.
In accordance with the procedure described below, Mexican companies without a foreign exclusion clause may acquire rights for the use and enjoyment of real property located in the Restricted Zone that is intended for residential purposes.
This procedure shall also apply when foreign nationals or foreign companies intend to acquire rights for the use and enjoyment of real estate located in the Restricted Zone, regardless of the use for which the real estate is intended.
Permission from the SRE is required for credit institutions to acquire, as trustees, rights over real property located in the Restricted Zone, when the purpose of the trust is to allow the use and enjoyment of such property, without granting real rights over such property, and the beneficiaries are Mexican companies without a foreigner exclusion clause, or the foreigners or foreign companies referred to above.
The use and enjoyment of the real property located in the Restricted Zone shall be understood to mean the rights to the use or enjoyment thereof, including, as the case may be, the obtaining of fruits, products and, in general, any yield resulting from the operation and lucrative exploitation through third parties or credit institutions in their capacity as trustees.
The duration of the trusts referred to in this reservation shall be for a maximum period of 50 years, which may be extended at the request of the interested party.
The SRE may at any time verify compliance with the conditions under which the permits referred to in this reservation are granted, as well as the presentation and veracity of the aforementioned notifications.
The SRE shall decide on the permits, considering the economic and social benefit that the carrying out of these operations implies for the Nation.
Foreign nationals or foreign companies that intend to acquire real estate outside the Restricted Zone must previously submit to the SRE a written document in which they agree to consider themselves Mexican nationals for these purposes and waive the right to invoke the protection of their governments with respect to such property.
Reduction schedule: None
Sector: All sectors
Subsector:
Industrial Classification:
Reservation Type: National Treatment (Article 13-03)
Level of Government: Federal
Measures: Foreign Investment Law, Title VI, Chapter III
Description: Investment
The National Foreign Investment Commission (CNIE), in evaluating applications submitted for its consideration (acquisitions or establishment of investments in the restricted activities in accordance with the provisions of this Schedule of Annex 1), will consider the following criteria:
(a) the impact on employment and training of workers;
b) the technological contribution;
c) compliance with the environmental provisions contained in the environmental ordinances governing the matter; and
d) in general, the contribution to increasing the competitiveness of Mexico's productive plant.
Reduction schedule: None
Sector: All sectors
Subsector:
Industrial Classification:
Reservation Type: National Treatment (Article 13-03)
Level of Government: Federal
Measures:
Foreign Investment Law, Title I, Chapter III.
Regulation of the Foreign Investment Law and the National Registry of Foreign Investments, Title II, Chapters I and II
As rated in the Description element
Description: Investment
A favourable resolution of the National Commission on Foreign Investment (CNIE) is required for investors of the other Party or their investments to participate, directly or indirectly, in a proportion greater than 49 per cent of the share capital of Mexican companies in an unrestricted sector, only when the investor or its investments have a direct or indirect participation in a non-restricted sector, and only when the investor or its investments have a direct or indirect participation in a non-restricted sector.
sector, only when the total value of the assets of the Mexican companies, at the time of submitting the acquisition request, exceeds the applicable threshold.
The applicable threshold for the review of an acquisition of a Mexican company shall be the amount so determined by the CNIE, which is published by resolution in the Diario Oficial de la Federación. In any event, the threshold shall not be less than USD 150 million.
Each year, the threshold will be adjusted according to the nominal growth rate of Mexico's Gross Domestic Product, as published by the National Institute of Statistics and Geography (INEGI).
Reduction schedule: None
Sector: All sectors
Subsector:
Industrial Classification:
Reservation Type: National Treatment (Article 13-03)
Senior Executives and Boards of Directors (Article 13-08)
Level of Government: Federal
Measures:
Political Constitution of the United Mexican States, Article 25.
General Law of Cooperative Societies, Title I, and Title II, Chapter II.
Federal Labour Law, Title I
Law on Foreign Investment, Title I, Chapter III
Description:
Investment
No more than 1 O per cent of the members of a Mexican cooperative production society may be foreign nationals.
Investors of the other Party or their investments may only participate, directly or indirectly, up to 10 percent in a Mexican cooperative production company.
Foreign nationals may not hold management or general management positions in cooperative societies.
A cooperative production society is an enterprise whose members combine their personal labour, whether physical or intellectual, for the purpose of producing goods or services.
Reduction schedule: None
Sector: All sectors
Subsector:
Industrial Classification:
Reservation Type: National Treatment (Article 13-03)
Level of Government: Federal
Measures:
Federal Law for the Promotion of Micro-industry and Handicraft Activity, Chapters II and III
Description: Investment
Only Mexican nationals may apply for a certificate to qualify as a micro-industrial enterprise.
Mexican micro-industrial enterprises may not have foreign nationals as partners.
Reduction schedule: None
Sector: All sectors
Subsector:
Industrial Classification:
Reserve Type: Federal
Level of government: National treatment (Articles 10-03)
Measures: Ley del Banco de México, Chapter III
As rated in the Description element
Description: Cross-border trade in services
Mexico reserves the right to adopt or maintain any measure restricting the acquisition, sale, or other disposition of bonds, treasury securities, or any other class of debt instruments issued by federal, state, or local governments.
Reduction Schedule: None
Sector: Minority Affairs
Subsector:
Industrial Classification:
Type of Reservation: Local Presence (Article 10-05) National Treatment (Articles 10-03 and 13-03) Performance Requirements (Article 13-07) Senior Executives and Boards of Directors (Article 13-08)
Level of Government: Federal
Measures: Political Constitution of the United Mexican States, Articles 2 and 4
As rated in the Description element
Description: Cross-border Trade in Services and Investment
Mexico reserves the right to adopt or maintain any measure that grants rights or preferences to socially or economically disadvantaged groups.
Reduction schedule: None
Sector: Agriculture, Livestock, Forestry and Timber Activities
Subsector: Agriculture, Livestock or Forestry
Industry Classification:
CMAP 1111 Agriculture
CMAP 1112 Livestock and Hunting (limited to Livestock)
CMAP 1200 Forestry and Logging
Type of Reservation: National Treatment (Article 13-03)
Level of Government: Federal
Measures:
Political Constitution of the United Mexican States, Article 27
Agrarian Law, Title VI
Ley de Inversión Extranjera, Title I, Chapter III
Description: Investment
Only Mexican nationals or Mexican companies may own land intended for agricultural, livestock or forestry purposes. Such enterprises must issue a special series of shares ('T' shares), which will represent the value of the land at the time of acquisition. Investors of the other Party or their investments may only hold, directly or indirectly, up to 49 per cent of the 'T' shares.
Reduction schedule: None
Sector: Wholesale and retail trade
Subsector: Trade in non-food products in specialised shops
Industry Classification:
CMAP 623087 Retail trade of firearms, cartridges and ammunition.
CMAP 612024 Wholesale trade not elsewhere classified (limited to firearms, cartridges and ammunition)
Type of Reservation: National Treatment (Article 13-03)
Level of Government: Federal
Measures: Foreign Investment Act, Title I, Chapter III
Description: Investment
Investors of the other Party or their investments may only participate, directly or indirectly, up to 49 per cent in an enterprise established or to be established in the territory of Mexico that engages in the sale of explosives, firearms, cartridges, ammunition, and fireworks, excluding the acquisition and use of explosives for industrial and extractive activities, and the manufacture of explosive mixtures for such activities.
Reduction schedule: None
Sector: Entertainment Services
Subsector: Recreational and Leisure Services
Industry Classification: CMAP 949104 Other Private Recreational and Leisure Services
Entertainment Services