(v) 18.7 (Cross-Border Trade in Financial Services); and
(b) in Section B, pursuant to paragraph 2 of Article 18.12 (Reservations and Non-Conforming Measures), the specific sectors, subsectors or activities for which that Party may maintain existing, or adopt new or more restrictive, measures that do not conform to the obligations set out in the following provisions:
(i) 18.3 (National Treatment);
(ii) 18.4 (Most-Favoured-Nation Treatment);
(iii) 18.5 (Market Access);
(iv) 18.6 (Senior Management and Board of Directors); or
(v) 18.7 (Cross-Border Trade in Financial Services).
2. The List of a Party is without prejudice to the rights and obligations of the Parties under GATS.
3. Each entry in Section A of the List of a Party sets out the following elements:
(a) "sector" refers to the general sector in which the entry is made;
(b) "subsector" refers to the specific sector in which the entry is made;
(c) "obligations concerned" specifies the obligations referred to in subparagraph 1(a) that, pursuant to paragraph 1 of Article 18.12 (Reservations and Non-Conforming Measures), do not apply to the measures listed in the entry;
(d) "level of Government" indicates the level of government maintaining the specified measures;
(e) "measures" identifies the laws, regulations or other measures for which the entry is made. A measure cited in the "measures" element:
(i) means the measure as amended, continued or renewed as of the date of entry into force of this Agreement;
(ii) includes any subordinate measure adopted or maintained under the authority of and consistent with the measure; and
(iii) includes, for the European Union directives, any laws, regulations or other measures which implement the relevant directive at Member State level; and
(f) "Description" either sets out the non-conforming aspects of the existing measure or provides a general non-binding description of the measure for which the entry is made.
4. In the interpretation of an entry in Section A, all elements of that entry shall be considered. The "measure" element shall prevail over all other elements.
5. Each entry in Section B of the List in sets out the following elements:
(a) "sector" refers to the general sector in which the entry is made;
(b) "subsector" refers to the specific sector in which the entry is made;
(c) "obligations concerned" specifies the obligations referred to in subparagraph 1(b) that, pursuant to paragraph 2 of Article 18.12 (Reservations and Non-Conforming Measures), do not apply to the sectors, subsectors or activities listed in the entry;
(d) "Level of Government" indicates the level of government maintaining the specified measures;
(e) "Description" sets out the scope of the sector, subsector or activities covered by the reservation; and
(f) "Existing Measures", if specified, identifies, for transparency purposes, a non-exhaustive list of existing measures that apply to the sector, subsector or activities covered by the reservation.
6. In the interpretation of an entry in Section B, all elements of that entry shall be considered. The "description" element shall prevail over all other elements.
7. The listing of a reservation in Section A or B does not mean that it cannot otherwise be justified as a measure adopted or maintained for prudential reasons pursuant to Article 18.13 (Prudential Carve-Out).
8. A reservation maintained at the level of the European Union applies to a measure of the European Union and of a Member State at the national level as well as to a measure of a government within a Member State, unless the reservation excludes a Member State.
9. A reservation maintained at the national level of Mexico or of a Member State applies to a measure of a government at the central, regional or local level within that country.
10. For greater certainty, a measure adopted or maintained in accordance with Article 18.18 (Domestic Regulation and Transparency) which conforms to the obligations set out in Articles 18.3 (National Treatment), 18.4 (Most-Favoured-Nation Treatment), 18.5 (Market Access), 18.6 (Senior Management and Board of Directors), or 18.7 (Cross Border Trade in Financial Services), does not need to be listed in the List of a Party.
11. For greater certainty, "limitations on the participation of foreign capital in terms of maximum percentage limit on foreign shareholding or the total value of individual or aggregate foreign investment" do not constitute a limitation to Article 18.5 (Market Access).
12. The following abbreviations are used in the List of the European Union:
AT Austria
BE Belgium (1)
BG Bulgaria
CY Cyprus
CZ Czechia
DE Germany
DK Denmark
EE Estonia
EL Greece
ES Spain
EU European Union, including all its Member States
FI Finland (2)
FR France
HR Croatia
HU Hungary
IE Ireland
IT Italy
LT Lithuania
LU Luxembourg
LV Latvia
MT Malta
NL Netherlands
PL Poland
PT Portugal
RO Romania
SE Sweden
SI Slovenia
SK Slovakia
13. For greater certainty, for the European Union, the obligation to grant national treatment does not entail the requirement to extend to natural persons or enterprises of Mexico the treatment granted in a Member State to natural persons or enterprises of another Member State pursuant to the Treaty on the Functioning of the European Union (hereinafter referred to as "TFEU"), or to any measure adopted pursuant to that Treaty, including their implementation in the Member States. Pursuant to the TFEU, that treatment is granted only to enterprises constituted or organised in accordance with the law of a Member State and having their registered office, central administration or principal place of business within the European Union, including those enterprises established within the European Union which are owned or controlled by natural persons or enterprises of Mexico.
14. For greater certainty, for the purposes of the List of Mexico, the terms "Nation" and "State" mean Mexico.
Appendix VI-A. RESERVATIONS FOR FINANCIAL SERVICES LIST OF THE EU (applicable in all Member States unless otherwise indicated)
SECTION A
VI-EU-A-1 Sector: Financial Services Subsector: Insurance Obligations Concerned: National Treatment (Article 18.3) Senior Management and Board of Directors (Article 18.6) Cross-Border Trade in Financial Services (Article 18.7) Level of Government: EU or Member State (unless otherwise specified) Description: In BG: Pension insurance shall be carried out as a joint-stock company licensed in accordance with the Code of Social Insurance and registered under the Commerce Act or under the legislation of another Member State (no branches). The promoters and shareholders of pension insurance companies may be non-resident legal persons, registered as a social insurance, commercial insurance or other financial institution under the law of the Member State of those non-resident legal persons, if they present bank references from a first-class foreign bank confirmed by the Bulgarian National Bank. Non-resident natural persons cannot be promoters and shareholders of pension insurance companies. The income of the supplementary voluntary pension funds, as well as similar income directly connected with voluntary pension insurance carried out by persons who are registered under the legislation of another Member State and who may, in compliance with the legislation concerned, perform voluntary pension insurance operations, shall not be taxable according to the procedure established by the Corporate Income Tax Act. The chairperson of the management board, the chairperson of the board of directors, the executive director and the managerial agent have to have a permanent address or hold a long-term residence permit in BG. Measures: BG: Social Insurance Code, Articles 120a to 162, 209 to 253 and 260 to 310.
VI-EU-A-2 Sector: Financial Services Subsector: Insurance Obligations Concerned: National Treatment (Article 18.3) Senior Management and Board of Directors (Article 18.6) Level of Government: EU or Member State (unless otherwise specified) Description: In AT: In order to obtain a licence to open a branch office, foreign insurers shall have a legal form corresponding or comparable to a joint stock company or a mutual insurance association in their home country. The management of a branch office shall consist of at least two natural persons resident in AT. In BG: Before establishing a branch or agency to provide insurance, a foreign insurer or re-insurer must have been authorised to operate in its country of origin in the same classes of insurance as those it wishes to provide in BG. Residency requirement for the members of managing and supervisory body of (re)insurance undertakings and every person authorised to manage or represent the (re)insurance undertaking. Measures: AT: Insurance Supervision Act (Versicherungsaufsichtsgesetz, VAG), §5 (1) 3. BG: Insurance Code, Articles 12, 56 to 63, 65, 66 and paragraph 4 of Article 80.
VI-EU-A-3 Sector: Financial Services Subsector: Insurance Obligations Concerned: National Treatment (Article 18.3) Level of Government: EU or Member State (unless otherwise specified) Description: In ES: Before establishing a branch or agency in ES, in order to provide certain classes of insurance, a foreign insurer has to have been authorised to operate in the same classes of insurance in its country of origin for at least five years. In PT: In order to establish a branch or agency, foreign insurance companies need to demonstrate prior operational experience of at least five years. In PT, ES and BG: Direct branching is not permitted for insurance intermediation, which is reserved to companies established in accordance with the law of a Member State. In SE: Insurance mediation undertakings not incorporated in the EU may be established only through a branch. Measures: BG: Insurance Code, Articles 12, 56 to 63, 65, 66 and paragraph 4 of Article 80. ES: Reglamento de Ordenación, Supervisión y Solvencia de Entidades Aseguradoras y Reaseguradoras (RD 1060/2015, Article 36. PT: Decree-Law 94-B/98 Article 7 and Section VI of Chapter I, Decree-Law 144/2006, paragraphs 6 and 7 of Article 34 and Article 7.
VI-EU-A-4 Sector: Financial Services Subsector: Insurance Obligations Concerned: Cross-Border Trade in Financial Services (Article 18.7) Level of Government: EU or Member State (unless otherwise specified) Description: In DE and LT: The supply of direct insurance services by insurance companies not established in the EU requires the setting up and authorisation of a branch. Measures DE: §§67 to 69 of Insurance Supervision Act (Versicherungsaufsichtsgesetz, VAG) for all insurance services which implements Solvency 2; in connection with §105 of Luftverkehrs-Zulassungs-Ordnung (LuftVZO) only for compulsory air liability insurance. LT: Law on Insurance, 18 of September, 2003, No IX-1737, last amendment on 15 of December 2016; and Law No. XIII-98.
VI-EU-A-5 Sector: Financial Services Subsector: Insurance Obligations Concerned: Market Access (Article 18.5) Level of Government: EU or Member State (unless otherwise specified) Description: In EL: The right of establishment does not permit the creation of representative offices or other permanent presence of insurance companies, except if those offices are established as agencies, branches or head offices. In PL: Local incorporation (no branches) is required for insurance intermediaries. Measures: EL: Legislative Decree 400/1970. PL: Act on Insurance Activity of May 22, 2003; and Act on Insurance Mediation of May 22, 2003 (Journal of Laws 2003, No 124, item 1154), Articles 16 and 31.
VI-EU-A-6 Sector: Financial Services Sub-sector: Banking and other financial services Obligations Concerned: Market Access (Article 18.5) Cross-Border Trade in Financial Services (Article 18.7) Level of Government: EU or Member State (unless otherwise specified) Description: In IT: In order to be authorised to operate the securities settlement system or to provide central securities depository services with an establishment in IT, a company is required to be incorporated in IT (no branches). In the case of collective investment schemes other than undertakings for collective investment in transferable securities (hereinafter referred to as, "UCITS") harmonised under EU legislation, the trustee or depository is required to be established in IT or in another Member State and have a branch in IT. Management enterprises of investment funds not harmonised under EU legislation are also required to be incorporated in IT (no branches). Only banks, insurance enterprises, investment firms and enterprises managing UCITS harmonised under EU Law having their legal head office in the EU, as well as UCITS incorporated in IT, may carry out the activity of pension fund resource management. In providing the activity of door-to-door selling, intermediaries must utilise authorised financial salesmen resident within the territory of a Member State. Representative offices of non-EU intermediaries cannot carry out activities aimed at providing investment services, including trading for own account and for the account of customers, placement and underwriting financial instruments (branch required). Measures: IT: Legislative Decree 58/1998, Articles 1, 19, 28, 30 to 33, 38, 69 and 80; Joint Regulation of Bank of Italy and Consob of 22 February1998, Articles 3 and 41; Regulation of Bank of Italy of 25 January 2005, Title V, Chapter VII, Section II; Consob Regulation 16190 of 29.10.2007, Articles 17 to 21, 78 to 81, 91 to 111; and subject to: Regulation (EU) No 909/2014 of the European Parliament and of the Council of 23 July 2014 on improving securities settlement in the European Union and on central securities depositories (CSDR), Article 69(4).
VI-EU-A-7 Sector: Financial Services Subsector: Banking and other financial services Obligations Concerned: National Treatment (Article 18.3) Level of Government: EU or Member State (unless otherwise specified) Description: In BG: The financial institution shall have its main business in the territory of BG. In HU: Branches of non-EEA investment fund management companies shall not engage in the management of EU investment funds and shall not provide asset management services to private pension funds. Measures: BG: Law of Credit Institutions, Article 3a; Code of Social Insurance, Article 121e; and Currency Law, Article 3. HU: Act CCXXXVII of 2013 on Credit Institutions and Financial Enterprises; and Act CXX of 2001 on the Capital Market.
VI-EU-A-8 Sector: Financial Services Subsector: Banking and other financial services Obligations Concerned: Senior Management and Board of Directors (Article 18.6) Level of Government: EU or Member State (unless otherwise specified) Description: In BG: ? bank shall be managed and represented jointly by at least two natural persons, at least one of whom shall be proficient in Bulgarian. The natural persons who manage and represent the bank shall be personally present at its management address. In HU: The board of directors of a credit institution shall have at least two members who are residents of HU according to foreign exchange regulations and having had prior permanent residence in HU for at least one year. In SE: A founder of a savings bank shall be a natural person resident in the EEA. Measures: BG: Law of Credit Institutions, Article 10; Code of Social Insurance, Article 121e; and Currency Law, Article 3. HU: Act CCXXXVII of 2013 on Credit Institutions and Financial Enterprises;and Act CXX of 2001 on the Capital Market. SE: Savings Bank Act (Sparbankslagen) (1987:619), Chapter 2, § 1, second paragraph.
VI-EU-A-9 Sector: Financial Services Subsector: Banking and other financial services Obligations Concerned: National Treatment (Article 18.3) Level of Government: EU or Member State (unless otherwise specified) Description: In PT: Pension fund management may be provided only by specialised companies incorporated in PT for that purpose and by insurance companies established in PT and authorised to take up life insurance business, or by entities authorised to provide pension fund management in other Member States. Direct branching from non-EU countries is not permitted. In RO: Market operators are legal persons set up as joint stock companies according to the provisions of the Company law. Alternative trading systems can be managed by a system operator set up under the conditions described above or by an investment firm authorised by the National Securities Commission (Comisia Nationala a Valorilor Mobiliare, CNVM). In SI: A pension scheme may be provided by a mutual pension fund, which is not a legal entity and is therefore managed by an insurance company, a bank or a pension company. Additionally, a pension scheme can also be offered by pension scheme providers established in accordance with the law of a Member State. Measures: PT: Decree-Law 12/2006, as amended by Decree-Law 180/2007; Decree-Law 357-A/2007; and Regulation 7/2007-R, as amended by Regulation 2/2008-R, Regulation 19/2008-R and Regulation 8/2009. RO: Law No 297/2004 on capital markets; and CNVM (Comisia Nationala a Valorilor Mobiliare) Regulation No 2/2006 on regulated markets and alternative trading systems. SI: Pension and Disability Insurance Act (Official Gazette No 102/15).
VI-EU-A-10 Sector: Financial Services Subsector: Banking and other financial services Obligations Concerned: Cross-Border Trade in Financial Services (Article 18.7) Level of Government: EU or Member State (unless otherwise specified) Description: In HU: Non-EEA companies may provide financial services or engage in activities auxiliary to financial services solely through a branch in HU. Measures: HU: Act CCXXXVII of 2013 on Credit Institutions and Financial Enterprises; and Act CXX of 2001 on the Capital Market.
SECTION B
VI-EU-B-1 Sector: Financial Services Subsector: All Obligations Concerned: Market Access (Article 18.6) Description: The EU reserves the right to require a financial institution, other than a branch, when establishing in a Member State, to adopt a specific legal form on a non-discriminatory basis.
VI-EU-B-2 Sector: Financial Services Subsector: Insurance and insurance-related services Obligations Concerned: National Treatment (Article 18.3) Market Access (Article 18.5) Senior Management and Board of Directors (Article 18.6) Cross-border Trade in Financial Services (Article 18.7) Description: In FI: The supply of insurance broker services is subject to a permanent place of business in the EU. Only insurers having their head office in the EU or having their branch in FI may offer direct insurance services, including co-insurance. At least one half of the members of the board of directors and the supervisory board, and the managing director of an insurance company providing statutory pension insurance shall have their place of residence in the EEA, unless the competent authorities have granted an exemption. Foreign insurers cannot obtain a licence in FI as a branch to carry out statutory pension insurance. At least one auditor shall have their permanent residence in the EEA. For other insurance companies, residency in the EEA is required for at least one member of the board of directors, the supervisory board and the managing director. At least one auditor shall have their permanent residence in the EEA. The general agent of an insurance company of Mexico must have their place of residence in FI, unless the company has its head office in the EU. Measures: Act on Foreign Insurance Companies (Laki ulkomaisista vakuutusyhtiöistä) (398/1995); Insurance Companies Act (Vakuutusyhtiölaki) (521/2008); Act on Insurance Mediation (Laki vakuutusedustuksesta) (570/2005); Act on Insurance Distribution (Laki vakuutusten tarjoamisesta) (234/2018); and Act on Companies Providing Statutory Pension Insurance (Laki työeläkevakuutusyhtiöistä) (354/1997).
VI-EU-B-3 Sector: Financial Services Subsector: Insurance and insurance-related services Obligations Concerned: National Treatment (Article 18.3) Market Access (Article 18.5) Cross-Border Trade in Financial Services (Article 18.7) Description: In DE: A foreign insurance company that has established a branch in DE may conclude insurance contracts in DE relating to international transport only through the branch established in DE. In ES: Residence, or alternatively two years of experience, is required for the actuarial profession. In HU: The supply of direct insurance in the territory of HU by insurance companies not established in the EU is allowed only through a branch office registered in HU. In SK: Foreign nationals may establish an insurance company in the form of a joint stock company or may conduct insurance business through their branches having a registered office in SK. The authorisation in both cases is subject to the evaluation of the supervisory authority. Air and maritime transport insurance, covering the aircraft/vessel and responsibility, can be underwritten only by insurance companies established in the EU or by the branch office of the insurance companies not established in the EU authorised in the Slovak Republic. Measures: DE: Paragraph 2 of § 43 Luftverkehrsgesetz (LuftVG); and Paragraph 1 of § 105 Luftverkehrszulassungsordnung (LuftVZO). HU: Act LX of 2003. SK: Act 39/2015 on Insurance.
VI-EU-B-4 Sector: Financial Services Subsector: Insurance and insurance-related services Obligations Concerned: Cross-Border Trade in Financial Services (Article 18.7) Description: In HU: The supply of direct insurance in the territory of HU by insurance companies not established in the EU is allowed only through a branch office registered in HU. Measures: HU: Act LX of 2003.
VI-EU-B-5 Sector: Financial Services Subsector: Banking and other financial services Obligations Concerned: National Treatment (Article 18.3) Market Access (Article 18.5) Cross-Border Trade in Financial Services (Article 18.7) Description: The EU reserves the right to adopt or maintain any measure requiring that only enterprises having their registered office in the EU can act as depositories of the assets of investment funds. The establishment of a specialised management enterprise having its head office and registered office in the same Member State is required to perform the activities of management of common funds, including unit trusts, and where allowed under national law, investment enterprises. Measures: EU: Directive 2009/65/EC of the European Parliament and of the Council of 13 July 2009 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS), as amended by 2010/78/EU, 2011/61/EU, 2013/14/EU and 2014/91/EU; and Directive 2011/61/EU of the European Parliament and of the Council of 8 June 2011 on Alternative Investment Fund Managers (AIFM), as amended by 2013/14/EU.
VI-EU-B-6 Sector: Financial Services Subsector: Banking and other financial services Obligations Concerned: Market Access (Article 18.5) Cross-Border Trade in Financial Services (Article 18.7) Description: In EE: An authorisation by the Estonian Financial Supervision Authority and registration under Estonian law as a joint-stock company, a subsidiary or a branch is required for acceptance of deposits. In SK: Investment services in SK can only be provided by management companies which have the legal form of a joint-stock company with equity capital according to the law (no branches). Measures: EE: Credit Institutions Act (Krediidiasutuste seadus) §21 and §206. SK: Act 566/2001 on Securities and Investment Services; and Act 483/2001 on Banks.
VI-EU-B-7 Sector: Financial Services Subsector: Banking and other financial services Obligations Concerned: National Treatment (Article 18.3) Market Access (Article 18.5) Description: In IT: Any measure with respect to services of financial consultants (consulenti finanziari) may be adopted. Measures: IT: Consob Regulation on Intermediaries (no. 16190 of 29 October 2007) Articles 91 to 111.
VI-EU-B-8 Sector: Financial Services Subsector: Banking and other financial services Obligations Concerned: National Treatment (Article 18.3) Senior Management and Board of Directors (Article 18.6) Cross-Border Trade in Financial Services (Article 18.7) Description: In FI: At least one of the founders, the members of the board of directors, the supervisory board, the managing director of banking services providers and the natural person entitled to sign the name of the credit institution shall have their permanent residence in the EEA. At least one auditor shall have their permanent residence in the EEA. For payment services, residency or domicile in FI may be required. Measures: FI: Act on Commercial Banks and Other Credit Institutions in the Form of a Limited Company (Laki liikepankeista ja muista osakeyhtiömuotoisista luottolaitoksista) (1501/2001); Savings Bank Act (Säästöpankkilaki) (1502/2001); Act on Cooperative Banks and Other Credit Institutions in the Form of a Cooperative Bank (Laki osuuspankeista ja muista osuu skuntamuotoisista luottolaitoksista) (1504/2001)); Act on Mortgage Societies (Laki hypoteekkiyhdistyksistä) (936/1978); Act on Payment Institutions (Maksulaitoslaki) (297/2010); Act on the Operation of Foreign Payment Institution in Finland (Laki ulkomaisen maksulaitoksen toiminnasta Suomessa) (298/2010); and Act on Credit Institutions (Laki luottolaitostoiminnasta) ((121/2007).
Appendix VI-B. RESERVATIONS FOR FINANCIAL SERVICES LIST OF MEXICO
SECTION A
VI-MX-A-1 Sector: Financial Services Subsector: Banking and other Financial Services (excluding insurance) Obligations Concerned: National Treatment (Article 18.3) Level of Government: Central Measures: Credit Unions Law (Ley de Uniones de Crédito), Article 21. General Law of Credit Organisations and Auxiliary Activities (Ley General de Organizaciones y Actividades Auxiliares del Crédito), Article 87-D. Description: Participation by a person, whether direct or indirect, in the capital stock of a credit union or a regulated multiple purpose financial entity linked to a credit union shall not exceed 15 %, unless authorised by the National Banking and Securities Commission (Comisión Nacional Bancaria y de Valores) (hereinafter referred to as "CNBV"). Without prejudice to the preceding paragraph, a foreign person, including any foreign enterprise with no legal personality, may participate indirectly in the capital stock of a credit union or a regulated multiple purpose financial entity linked to a credit union up to 15 %, provided that the respective shares of the credit union are purchased by a Mexican enterprise in which that foreign person holds a participation.
VI-MX-A-2 Sector: Financial services Subsector: All Services Obligations concerned: National Treatment (Article 18.3) Market Access (Article 18.5) Level of Government: Central Measures: Law to Regulate Financial Groups (Ley para Regular las Agrupaciones Financieras), Articles 67, 68, 70, 72, 74 and 76. Credit Institutions Law (Ley de Instituciones de Crédito), Articles 45 A, 45-B, 45-C, 45-E, 45-G and 45-I. Securities Market Law (Ley del Mercado de Valores), Articles 2, 160, 161, 163, 165 and 167. Insurance and Surety Institutions Law (Ley de Instituciones de Seguros y de Fianzas), Articles 2, 74, 75, 77, 78, 79 and 81. General Law of Credit Organisations and Auxiliary Activities (Ley General de Organizaciones y Actividades Auxiliares del Crédito), Articles 45 Bis 1, 45 Bis 2, 45 Bis 3, 45 Bis 5, 45 Bis 7 and 45 Bis 9. Investment Funds Law (Ley de Fondos de Inversión), Articles 62, 63, 64, 66, 68 and 70. Retirement Savings Systems Law (Ley de los Sistemas de Ahorro para el Retiro), Article 21. Rules for the Establishment of Foreign Financial Institution Subsidiaries (Reglas para el establecimiento de Filiales de Instituciones Financieras del Exterior), Rules First, Eighth and Ninth. Description: A financial institution of a Member State may invest in the capital stock of a holding company of a financial group, a commercial bank, a securities firm, a surety institution, an insurance institution, a foreign exchange firm, a general deposit warehouse, a managing company of investment funds, a distributing company of investment fund shares, and a retirement funds management company, organised as a Mexican subsidiary (filial) of a foreign financial institution, provided that such financial institution of a Member State meets the following conditions: (a) directly or indirectly carries out in the territory of that Member State, in accordance with applicable law, the same type of financial service that the respective subsidiary is allowed to carry out in Mexico; (b) is incorporated in and under the law of that Member State provided that such Member State remains Party to this Agreement; and (c) obtains prior authorisation from the competent Mexican financial authorities and complies with the requirements set out in the respective law. A financial institution of a Member State must own at least 51 % of the capital stock of the subsidiary.
VI-MX-A-3 Sector: Financial Services Subsector: All Services Obligations concerned: Market Access (Article 18.5) Level of Government: Central Measures: Law to Regulate Financial Groups (Ley para Regular las Agrupaciones Financieras), Article 67. Credit Institutions Law (Ley de Instituciones de Crédito), Article 45-A Securities Market Law (Ley del Mercado de Valores), Article 2. Insurance and Surety Institutions Law (Ley de Instituciones de Seguros y de Fianzas), Article 2. General Law of Credit Organisations and Auxiliary Activities (Ley General de Organizaciones y Actividades Auxiliares del Crédito), Article 45 Bis 1. Investment Funds Law (Ley de Fondos de Inversión), Article 62. Retirement Savings Systems Law (Ley de los Sistemas de Ahorro para el Retiro), Article 21. Rules for the Establishment of Foreign Financial Institutions Subsidiaries (Reglas para el establecimiento de Filiales de Instituciones Financieras del Exterior), First Rule. Description: Financial institutions of a Member State, as any other foreign financial institution, are not permitted to establish branches within the territory of Mexico. 28
VI-MX-A-4 Sector: Financial Services Subsector: All Services Obligations Concerned: National Treatment (Article 18.3) Market Access (Article 18.5) Level of Government: Central Measures: Law to Regulate Financial Groups (Ley para Regular las Agrupaciones Financieras), Article 24. Credit Institutions Law (Ley de Instituciones de Crédito), Article 13. Securities Market Law (Ley del Mercado de Valores), Articles 117 and 237. Law to Regulate Credit Information Corporations (Ley para Regular las Sociedades de Información Crediticia), Article 8. Insurance and Surety Institutions Law (Ley de Instituciones de Seguros y de Fianzas), Article 50. Retirement Saving Systems Law (Ley de los Sistemas de Ahorro para el Retiro), Article 21. General Law of Credit Organisations and Auxiliary Activities (Ley General de Organizaciones y Actividades Auxiliares del Crédito), Article 8 and 87-D. Investment Funds Law (Ley de Fondos de Inversión), Article 37. Credit Unions Law (Ley de Uniones de Crédito), Article 21. Description: Foreign governments are not allowed to participate, directly or indirectly, in the capital stock of holding companies of financial groups, commercial banks, securities firms, stock exchanges, credit information corporations, surety institutions, insurance institutions, retirement funds management companies, foreign exchange firms, auxiliary credit organisations, general deposit warehouses, managing companies of investment funds, distributing companies of investment fund shares, value assessment companies of investment fund shares, credit unions and regulated multiple-purpose financial entities linked to a credit institution except: (a) in case that participation is done as a temporary prudential measure, such as financial support or aid; Financial institutions that fall in this situation must submit to the competent financial authority the relevant information and documents to prove that situation; (b) in case that participation implies that the foreign government takes control 29 over those financial institutions and it is carried out through official enterprises such as sovereign funds and public development entities, provided that an authorisation is previously granted, on a discretionary basis, by the competent financial authority, subject to the condition that the authority is satisfied that those enterprises prove that: (i) they do not exercise any government function; and (ii) their managing boards are independent from the respective foreign government; or (c) in case that participation is indirect and does not imply the control of the financial institutions.
VI-MX-A-5 Sector: Subsector: Financial Services All Services Obligations Concerned: Senior Management and Board of Directors (Article18.6) Level of Government: Central Measures: Credit Institutions Law (Ley de Instituciones de Crédito), Articles 23, 24, 45-K and 45-L. Securities Market Law (Ley del Mercado de Valores), Articles 124, 128, 131 and 168. Law to Regulate Financial Groups (Ley para Regular las Agrupaciones Financieras), Articles 35, 60 and 77. Popular Savings and Credit Law (Ley de Ahorro y Crédito Popular), Articles 21, 23 and 46 Bis. Credit Unions Law (Ley de Uniones de Crédito), Article 26. General Law of Credit Organisations and Auxiliary Activities (Ley General de Organizaciones y Actividades Auxiliares del Crédito), Articles 8, 8 Bis 1, 8 Bis 3, 45 Bis 11, 45 Bis 12, 45 Bis 13 and 87-D. Law to Regulate the Activities of Savings and Loans Cooperative Companies (Ley para Regular las Actividades de las Sociedades Cooperativas de Ahorro y Préstamo), Article 5. Cooperative Companies General Law (Ley General de Sociedades Cooperativas), Article 7. Insurance and Surety Institutions Law (Ley de Instituciones de Seguros y de Fianzas), Articles 56, 58, 60 and 82. Investment Funds Law (Ley de Fondos de Inversión), Article 73. Retirement Savings Systems Law (Ley de los Sistemas de Ahorro para el Retiro), Articles 50 and 66 Bis. Rules for the Establishment of Foreign Financial Institution Subsidiaries (Reglas para el Establecimiento de Filiales de Instituciones Financieras del Exterior), Tenth Rule. Rules Applicable to Clearing Houses for Card Payments (Reglas Aplicables a las Cámaras de Compensación para Pagos con Tarjetas), Second Rule. General Rules Applicable to Popular Savings and Credit Entities, Integration Organisations, Community Financial Companies and Rural Financial Integration Organisations, referred to in the Popular Savings and Credit Law (Disposiciones de carácter general aplicables a las entidades de ahorro y crédito popular, organismos de integración, sociedades financieras comunitarias y organismos de integración financiera rural, a que se refiere la Ley de Ahorro y Crédito Popular), Articles 335 and 336. Description: The majority of the members of the board of directors of commercial banks, securities firms, financial groups holding companies, popular financial companies, community financial companies and rural financial integration organisations, credit unions, general deposit warehouses, regulated multiple-purpose financial entities linked to a credit institution, foreign exchange firms, surety institutions, insurance institutions, retirement funds management companies, subsidiary managing companies of investment funds, subsidiary distributing companies of investment fund shares and clearing houses for card payments, shall be Mexican nationals or reside in Mexican territory. Directors and managers of savings and loans cooperative companies shall be Mexican nationals.
VI-MX-A-6 Sector: Financial Services Subsector: Banking and other Financial Services (excluding insurance) Obligations Concerned: National Treatment (Article 18.3) Market Access (Article 18.5) Level of Government: Central Measures: Securities Market Law (Ley del Mercado de Valores), Article 167. Description: If a securities firm organised as a subsidiary (filial) of a financial institution of a Member State acquires shares of a Mexican securities firm, which shall not be below 51 % of its capital stock, that subsidiary must merge with the securities firm.
VI-MX-A-7 Sector: Financial Services Subsector: Banking and other Financial Services (excluding insurance) Obligations Concerned: Level of Government: Market Access (Article 18.5) Central Measures: Retirement Savings Systems Law (Ley de los Sistemas de Ahorro para el Retiro), Article 26. Description: Retirement funds management companies shall not own more than 20 % share of the retirement savings systems market. 30 The National Retirement Savings System Commission (Comisión Nacional del Sistema de Ahorro para el Retiro), (hereinafter referred to as "CONSAR") may authorise a limit beyond 20 %, provided that this does not constitute prejudice to the interests of workers.
VI-MX-A-8 Sector: Financial Services Subsector: Banking and other Financial Services (excluding insurance) Obligations Concerned: Market Access (Article 18.5) Level of Government: Central Measures: Securities Market Law (Ley del Mercado de Valores), Article 234. Description: The organisation of a stock exchange is subject to a concession previously granted, on a discretionary basis, by the Federal Government. The decision to grant that concession shall be subject to considerations regarding the development of the market.
VI-MX-A-9 Sector: Financial Services Subsector: Insurance and Insurance-related Services Obligations Concerned: Level of Government: Cross-Border Trade in Financial Services (Article 18.7) Central Measures: Insurance and Surety Institutions Law (Ley de Instituciones de Seguros y de Fianzas), Articles 20 to 24. Description: No person shall contract with foreign entities the insurance of: (a) maritime or aircraft hulls, and any kind of vehicle, for risks inherent to the maritime and transportation industries, provided that those hulls and vehicles have Mexican registration or are owned by persons domiciled in Mexico; (b) credit, housing credit, surety and financial guarantee 31 , if the insured is subject to Mexican law; (c) third party liability derived from events that may take place in the territory of Mexico; or (d) other risks that may take place in the territory of Mexico, except for insurance contracted outside that territory with respect to goods transported from the territory of Mexico to a foreign territory or vice versa, and insurance contracted by non-residents in Mexico for their persons or vehicles to cover risks during their temporary entries into the territory of Mexico. For greater certainty, no person shall contract with entities of a Member State the insurance of persons that are located in the territory of Mexico at the moment of the execution of the insurance agreement if that person is a natural person, or that the insured resides in Mexico if the insurance is contracted by an enterprise. 32 As an exception to the prohibitions indicated above, the National Insurance and Surety Commission (Comisión Nacional de Seguros y Fianzas) may authorise a person to contract any of the insurances described above provided that the person demonstrates that none of the insurance institutions authorised to operate in Mexico is able or deems it convenient to enter into a given insurance operation proposed to it.
VI-MX-A-10 Sector: Financial Services Subsector: Banking and other Financial Services (excluding insurance) Obligations Concerned: Cross-border Trade in Financial Services (Article 18.7) Level of Government: Central Measures: Insurance and Surety Institutions Law (Ley de Instituciones de Seguros y de Fianzas), Articles 34 and 35. Description: No person shall contract sureties with foreign entities to guarantee acts of natural persons and enterprises bound to fulfil obligations in the territory of Mexico, except for rebonding or in case those sureties are received by Mexican surety institutions as counter guarantee. 33 As an exception to the prohibitions indicated above, the National Insurance and Surety Commission (Comisión Nacional de Seguros y Fianzas) may authorise a person to contract any of the sureties described above provided that none of the financial institutions authorised to operate in Mexico is able or deems it convenient to undertake a surety operation proposed to it, upon prior verification that those circumstances have been proved to it.
VI-MX-A-11 Sector: Financial Services Subsector: All Obligations Concerned: National Treatment (Article 18.3) Market Access (Article 18.5) Level of Government: Central Measures: Insurance and Surety Institutions Law (Ley de Instituciones de Seguros y de Fianzas), Article 337 Regulation of Insurance and Surety Agents (Reglamento de Agentes de Seguros y de Fianzas), Article 12 Rules for the authorization and operation of reinsurance brokers (Reglas para la autorización y operación de intermediarios de reaseguros), Fourth Rule. Description: Foreign governments or foreign official entities shall not participate in mutual insurance societies, in the capital stock of insurance and surety agencies, or in the capital stock of reinsurance brokers, either directly or indirectly. Foreign financial entities may not participate in the capital stock of insurance or surety agencies, or in mutual insurance societies. Groups of foreign natural persons or enterprises, regardless of the form they adopt, may not participate in mutual insurance societies, either directly or indirectly. For greater certainty, foreign natural persons may participate in mutual insurance societies as long as they do so individually and not as part of a group or entity.
VI-MX-A-12 Sector: Financial Services Subsector: Insurance Obligations Concerned: National Treatment (Article 18.3) Market Access (Article 18.5) Level of Government Central Measures: Agricultural and Rural Insurance Funds Law (Ley de Fondos de Aseguramiento Agropecuario y Rural), Article 26. Description: Only Mexican nationals or Mexican enterprises with a foreigners exclusion clause may participate in Agricultural and Rural Insurance Funds (Fondos de Aseguramiento Agropecuario y Rural).
SECTION B
VI-MX-B-1 Sector: Financial Services Subsector: All Services Obligations Concerned: Market Access (Article 18.5) Senior Management and Board of Directors (Article 18.6) Cross-Border Trade in Financial Services (Article 18.7) Level of Government: Central Description: If selling or disposing of its equity interest in, or the assets of, an existing state enterprise or an existing governmental entity, Mexico may prohibit or impose limitations on the ownership of that interest or those assets, as well as on the ability of the owners of that interest or those assets to control any resulting enterprise, by investors of Mexico, of a Member State, or of a third country, or their investments. Additionally, Mexico may impose limitations on the supply of the services related to those investments. With respect to that sale or other disposition, Mexico may adopt or maintain any measure relating to the nationality of natural persons appointed to senior management positions of members of the board of directors. For the purposes of this reservation: (a) any measure maintained or adopted after the date of entry into force of this Agreement that, at the time of sale or other disposition, prohibits or imposes limitations on the ownership of equity interest or assets or imposes nationality requirements described in this reservation shall be deemed to be an existing measure; and (b) "state enterprise" means an enterprise owned or controlled through ownership interest by Mexico and includes an enterprise established after the date of entry into force of this Agreement solely for the purposes of selling or disposing of equity interest in, or the assets of, an existing state enterprise or governmental entity.
VI-MX-B-2 Sector: Financial Services Subsector: Banking and other Financial Services (excluding insurance) Obligations Concerned: National Treatment (Article 18.3) Level of Government: Central Description: Mexico reserves the right to adopt or maintain measures that grant advantages, including exclusive rights, to development banks, decentralised entities or public funds for the economic development already established at the time that this Agreement enters into force, as well as any new, reorganised or transferee development bank, decentralised entity or public fund for the economic development with similar functions and objectives with respect to development banking. The institutions of development banking include: (a) National Financial Institution, S.N.C. (Nacional Financiera, S.N.C.); (b) National Bank of Public Works and Services, S.N.C. (Banco Nacional de Obras y Servicios Públicos, S.N.C.); (c) National Bank of Foreign Trade, S.N.C. (Banco Nacional del Comercio Exterior, S.N.C.); (d) Federal Mortgage Corporation, S.N.C. (Sociedad Hipotecaria Federal, S.N.C.); (e) Welfare Bank, S.N.C (Banco del Bienestar, S.N.C.); (f) National Bank of the Army, Air Force and Navy, S.N.C. (Banco Nacional del Ejército, Fuerza Aérea y Armada, S.N.C.); or (g) their respective successors.
VI-MX-B-3 Sector: Financial Services Subsector: All Services Obligations Concerned: National Treatment (Article 18.3) Level of Government: Central Description: Mexico reserves the right to adopt or maintain measures that grant advantages, including exclusive rights, to the national insurance institutions, national surety institutions, a national pension fund or national auxiliary organisations of credit in existence at the date of entry into force of this Agreement, as well as any new, reorganised or transferee national insurance institution, national surety institution, a national pension fund or national auxiliary organisation of credit with similar functions and objectives with respect to public policy purposes.
VI-MX-B-4 Sector: Financial Services Subsector: All Services Obligations Concerned: Market Access (Article 18.5) Senior Management and Board of Directors (Article 18.6) Level of Government: Central Description: Mexico reserves the right to adopt or maintain any measure in relation to any financial service that is supplied by a covered investment as defined in Article 10.1 (Definitions) that is not a covered investment in a financial institution as defined in Article 18.1 (Definitions), in order to regulate that entity as a financial institution.
VI-MX-B-5 Sector: Financial Services Subsector: All Services Obligations Concerned: Market Access (Article 18.5) Level of Government: Central Description: Mexico reserves the right to restrict or require a financial institution of a Member State to adopt a specific type of legal form, to supply a financial service, on a non-discriminatory basis. ________________
ANNEX VII. UNDERSTANDING ON NEW SERVICES NOT CLASSIFIED IN THE UNITED NATIONS PROVISIONAL CENTRAL PRODUCT CLASSIFICATION 1991
1. Articles 10.6 (Market Access), 10.7 (National Treatment), 10.8 (Most-Favoured-Nation Treatment), 10.9 (Performance Requirements), 10.10 (Senior Management and Board of Directors), 11.4 (Market Access), 11.5 (Local Presence), 11.6 (National Treatment) and 11.7 (Most-Favoured-Nation Treatment), as well as Chapter 13 (Domestic Regulation), do not apply to a measure relating to a new service that cannot be classified in the United Nations, Statistical Papers, Series M, No. 77, Provisional Central Product Classification, 1991 (hereinafter referred to as "CPC").
2. To the extent possible, a Party shall notify the other Party prior to adopting a measure relating to a new service, as referred to in paragraph 1, that is inconsistent with Articles 10.6 (Market Access), 10.7 (National Treatment), 10.8 (Most-Favoured-Nation Treatment), 10.9 (Performance Requirements), 10.10 (Senior Management and Board of Directors), 11.4 (Market Access), 11.5 (Local Presence), 11.6 (National Treatment), 11.7 (Most-Favoured-Nation Treatment) or Chapter 13 (Domestic Regulation).
3. On request of a Party, the Parties shall enter into negotiations to incorporate the new service into the scope of this Agreement. 4. For greater certainty, paragraph 1 does not apply to an existing service that could be classified in the CPC, but that could not previously be supplied due to lack of technical feasibility ________________
JOINT DECLARATION ON TRADE AND GENDER EQUALITY BY THE EUROPEAN UNION AND MEXICO IN THE FRAMEWORK OF THE POLITICAL, ECONOMIC AND COOPERATION STRATEGIC PARTNERSHIP AGREEMENT
The Parties,
RECALLING their shared values and the strong cultural, political, economic and cooperation ties which unite them,
RECALLING their commitment to modernise and replace the EU-Mexico Economic Partnership, Political Coordination and Cooperation Agreement, (“Global Agreement”), concluded in 2000, to reflect new political and economic realities, REAFFIRMING their commitment to strengthen cooperation on bilateral, regional and global issues of common concern,
CONVINCED that the Political, Economic and Cooperation Strategic Partnership Agreement between the European Union and its Member States, of the one part, and the United Mexican States, of the other part (“Modernised Global Agreement”) and the Interim Agreement on Trade between the European Union and the United Mexican States, will be beneficial to both Parties and further strengthen their ties,
EXPRESS their joint intent to cooperate on the implementation of the sustainability aspects of Part III of the Modernised Global Agreement guided by the considerations expressed in the following, as regards trade and gender equality.
1. The Parties recognise that inclusive trade policies contribute to advancing women's economic empowerment and gender equality, in line with Sustainable Development Goal 5 of the UN 2030 Agenda on Sustainable Development and the objectives of the Joint Declaration on Trade and Women's Economic Empowerment on the Occasion of the WTO Ministerial Conference, held in Buenos Aires in December 2017. The Parties acknowledge the important contribution by women to economic growth through their participation in economic activity, including international trade. The Parties commit to implement the provisions of Part III of the Modernised Global Agreement in a manner that promotes and enhances gender equality.
2. The Parties aim to strengthen their trade relations and cooperation in ways that effectively provide equal opportunities and treatment for women and men to benefit from the provisions of Part III of the Modernised Global Agreement, including in matters of employment and occupation, in accordance with their international commitments.
3. Each Party shall effectively implement its obligations under international agreements addressing gender equality and women’s rights to which it is a party, including the Convention on the Elimination of all Forms of Discrimination Against Women, adopted by the UN General Assembly on 18 December 1979, noting in particular those provisions related to eliminating discrimination against women in economic life and in the field of employment. In this respect, the Parties reiterate their respective commitments under Article 26.3 (“Multilateral Labour Standards and Agreements”) of Part III of the Modernised Global Agreement including with regard to the effective implementation of the ILO Conventions related to gender equality and the elimination of discrimination in respect of employment and occupation.
4. Each Party shall strive to ensure that its relevant law and policies provide for, and promote, equal rights, treatment and opportunities for women and men. Each Party shall strive to improve such law and policies, without prejudice to the right of each Party to establish its own scope and levels of protection for equal opportunities for women and men. Such law and policies shall be consistent with each Party's commitments to the internationally recognised standards and agreements referred to in this Joint Declaration.
5. The Parties shall work together to strengthen their cooperation on trade-related aspects of gender equality policies and measures, bilaterally, regionally and in international fora, as appropriate, among others through activities to improve the capacity and conditions for women, including workers, businesswomen and entrepreneurs, to access and benefit from the opportunities created by Part III of the Modernised Global Agreement. Such cooperation may cover, among others, exchange of information and best practices related to collection of gender-disaggregated data and gender-based analysis of trade policies.
6. The Parties agree on the importance of monitoring and assessing, in accordance with their domestic procedures, the impact of the implementation of Part III of the Modernised Global Agreement on gender equality and equal opportunities for women in relation to trade.
7. In case of disagreement between the Parties regarding the interpretation or application of this Joint Declaration, the Parties shall have recourse exclusively to the dispute resolution procedures referred to in Articles 26.17 and 26.18 of Part III of the Modernised Global Agreement, mutatis mutandis.