Annex 1001.1b-2: Services

Section A - General Provisions

1. This Chapter applies to all services that are procured by the entities listed in Annex 1001.1a-1 (TLCAN: Anexo 1001.1a-1) and Annex 1001.1a-2 (TLCAN: Anexo 1001.1a-2), subject to:

2. Appendix 1001.1b-2-B (TLCAN: Apendice 1001.1b-2-B) sets out the Common Classification System for the services procured by the entities of the Parties. The Parties shall use this System for reporting purposes and shall update Appendix 1001.1b-2-B (TLCAN: Apendice 1001.1b-2-B) at such times as they mutually agree.

3. Annex 1001.1b-3 (TLCAN: Anexo 1001.1b-3) applies to contracts for construction services.

Section B - Excluded Coverage

Schedule of Canada

Services Exclusions by Major Service Category

The following service contracts are excluded:

A. Research and Development

All Classes

B. Special Studies and Analysis - not R&D

B002: Animal and fisheries studies

B003: Grazing and Range Studies

B507: Legal studies (Except Advisory Services on Foreign Law)

B503: Medical and health studies

B400: Aeronautic/Space Studies

C. Architecture and Engineering Services

C112: Airfield, Communication and Missile Facilities

C216: Marine architect and engineering services

D. Information Processing and Related Telecommunications Services

D304: ADP Telecommunications and Transmission Services, except those classified as "enhanced or value-added services" as defined in Article 1310 (TLCAN: Art. 1310) and that are expressly excluded from the reservations set out in Annex II (TLCAN: Anexo 2 CAN), Schedule of Canada, II-C-3 or II-C-5. For the purposes of this provision, the procurement of "ADP Telecommunications and Transmission services" does not include the ownership or furnishing of facilities for the transmission of voice or data services.

D305: ADP Teleprocessing and timesharing services

D309: Information and Data Broadcasting or Data Distribution Services

D316: Telecommunications Network Management Services

D317: Automated News Service, Data Services, or Other Information Services. Buying data, the electronic equivalent of books, periodicals, newspapers, etc.

D399: Other ADP and Telecommunications Services

F. Natural Resources and Conservation Services

F004: Land Treatment Practices Services (plowing/clearing, etc).

F005: Range Seeding Services (ground equipment)

F006: Crop services inc. Seed Collection/Production Services

F007: Seedling Production/Transplanting Services

F011: Pesticides/Insecticides Support services

F010: Other Range/Forest Improvements services

F021: Veterinary/Animal Care services (inc. Livestock services)

F029: Other Animal Care /Control services

F030: Fisheries Resources Management Services

F031: Fish Hatchery Services

F050: Recreation Site Maintenance services (non-construction)

F059: Other natural resource and conservation services

G. Health and Social Services

All classes

H. Quality Control, Testing and Inspection and Technical Representative Services

Services for the Departments of Transport, Communications and Fisheries and Oceans respecting FSC 36 - (Special Industry Machinery), FSC 70 - (Automatic Data Processing Equipment, software supplies and support equipment) and FSC 74 (Office machines, text processing systems and visible record equipment).

FSC 58: (Communications, Detection, and Coherent Radiation Equipment)

Services with reference to transportation equipment.

J. Maintenance, Repair, Modification, Rebuilding and Installation of Equipment

Services for the Departments of Transport, Communications and Fisheries and Oceans respecting FSC 36 - (Special Industry Machinery), FSC 70 - (Automatic Data Processing Equipment, software supplies and support equipment) and FSC 74 (Office machines, text processing systems and visible record equipment).

FSC 58: (Communications, Detection, and Coherent Radiation Equipment)

Services with reference to transportation equipment.

J019: Maintenance, Repair, Modification, Rebuilding and Installation of Equipment related to Ships

J998: Non-nuclear Ship Repair

K. Custodial Operations and Related Services

K0: Personal care services

K105: Guard Services

K109: Surveillance services

K115: Preparation and Disposal of Excess and surplus property

L. Financial and Related Services

All classes

M. Operation of Government Owned Facilities

All facilities operated by:

The Department of Defence

The Department of Transport

The Department of Energy, Mines and Resources and for all Departments: M180 and M140

R. Professional, Administrative and Management Support Services

R003: Legal services (Except Advisory Services on Foreign Law)

R004: Certifications and accreditations for products and institutions other than Educational Institutions

R007: Systems Engineering Services 1/

R012: Patent and Trade Mark Services

R101: Expert Witness

R102: Weather Reporting/Observation services

R104: Transcription services

R106: Post Office services

R109: Translation and Interpreting services (inc. sign language)

R113: Data Collection services

R114: Logistics Support Services 2/

R116: Court Reporting Services

R117: Paper Shredding Services

R201: Civilian Personnel Recruitment (inc. Services of Employment Agencies)

1/ with reference to transportation systems

2/ with respect to transportation and defence

S. Utilities

All classes

T. Communications, Photographic, Mapping, Printing and Publications Services

All classes

U. Education and Training Services

U010: Certifications and accreditations for Educational Institutions

V. Transportation, Travel and Relocation Services

All classes (except V503 Travel Agent Services [not including Tour Guides.])

W. Lease or Rental of Equipment

Services for the Departments of Transport, Communications and Fisheries and Oceans respecting FSC 36 - (Special Industry Machinery), FSC 70 - (Automatic Data Processing Equipment, software supplies and support equipment) and FSC 74 (Office machines, text processing systems and visible record equipment).

FSC 58: (Communications, Detection, and Coherent Radiation Equipment)

Services with reference to transportation equipment.

Notes:

1. All services, with reference to those goods purchased by the Department of National Defence, the Royal Canadian Mounted Police and the Canadian Coast Guard which are not identified as subject to coverage by this chapter (Annex 1001.1b-1 (TLCAN: Anexo 1001.1b-1)), will be exempt from the disciplines of the Chapter.

2. All services purchased in support of military forces located overseas will be exempt from coverage by this chapter.

3. The Schedules of Canada as identified in Annex 1001.2b (TLCAN: Anexo 1001.2b) and Annex 1001.1b -3 (TLCAN: Anexo 1001.1b-3) will apply.

4. In the absence of agreed definitions for service classes under the proposed NAFTA classification system, and until such time as they are mutually agreed, Canada will continue to apply appropriate CPC definitions to identify classes which it considers exempt.

Schedule of Mexico

The following service contracts are excluded:

(Based on the United Nations Central Product Classification (CPC))

1. All transportation services, including:

CPC / CPCGroup / Class71: Land transportation

72: Water transport

73: Air transport

74: Supporting and auxiliary transport

75: Post and telecommunication

8868: Repair services of other transport equipment, on a fee or contract basis

2. Public utilities services (including telecommunications, transmission, water or energy services)

3. Management and operation contracts awarded to federally-funded research and development centers or related to carrying out government sponsored research programs

4. Financial services

5. Research and development services

Schedule of the United States

Service Exclusions by Major Service Category

A. Research and Development

All classes

D. Information Processing and Related Telecommunications Services

D304: ADP Telecommunications and Transmission Services, except for those services classified as "enhanced or value-added services," as defined in Article 1310 (TLCAN: Art. 1310) and that are expressly excluded from the reservation set out in Annex II (TLCAN: Anexo 2 EUA), Schedule of the United States, II-U-3. For the purposes of this provision, the procurement of "ADP Telecommunications and Transmission services" does not include the ownership or furnishing of facilities for the transmission of voice or data services.

D305: ADP Teleprocessing and Timesharing Services

D316: Telecommunications Network Management Services

D317: Automated News Services, Data Services or Other Information Services

D399: Other ADP and Telecommunications Services

J. Maintenance, Repair, Modification, Rebuilding and Installation of Equipment

J019: Maintenance, Repair, Modification, Rebuilding and Installation of Equipment Related to Ships

J998: Non-nuclear Ship Repair

M. Operation of Government-Owned Facilities

All facilities operated by the Department of Defense, Department of Energy and the National Aeronautics and Space Administration; and for all entities:

M180: Research and Development

S. Utilities

All Classes

V. Transportation, Travel and Relocation Services

All Classes except V503 Travel Agent Services

Notes:

1. All services purchased in support of military forces overseas will be excluded from coverage by this Chapter.

2. For service suppliers of Canada, this Chapter will apply to procurements by the authorities and the power administrations listed as items 1 through 6 in the U.S. Schedule in Annex 1001.1a-2 (TLCAN: Anexo 1001.1a-2) (Government Enterprises) and to procurements by the Bureau of Reclamation of the Department of Interior only at such time as this Chapter applies to the procurements by the Canadian provincial, not including local, hydro utilities.