Sector:

All Sectors

Sub-Sector:

Industrial Classification:

Type of Reservation:

Level of Government:

National Treatment (Article 1102 (TLCAN: Art. 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 (TLCAN: Art. 1106).

Phase-Out:

None

Sector:

All Sectors

Sub-Sector:

Industrial Classification:

Type of Reservation:

National Treatment (Article 1102 (TLCAN: Art. 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 (TLCAN: Art. 1102))

Senior Management and Boards of Directors (Article 1107 (TLCAN: Art. 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 (TLCAN: Art. 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 (TLCAN: Art. 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 (TLCAN: Art. 1202))

Performance Requirements (Article 1106 (TLCAN: Art. 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 (TLCAN: Art. 1202))

Performance Requirements (Article 1106 (TLCAN: Art. 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 (TLCAN: Art. 1202))

Performance Requirements (Article 1106 (TLCAN: Art. 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 or Spanish subtitles is required for advertising broadcast or otherwise distributed in the territory of Mexico.



Advertising included in programs transmitted directly from outside the territory of Mexico may not be distributed in those programs when they are retransmitted in the territory of Mexico.

Phase-Out:

None

Sector:

Communications

Sub-Sector:

Entertainment Services (Cable Television)

Industry Classification:

CMAP 941105 - Private Services of Production, Transmission and Retransmission of Television Programming (limited to cable television)

Type of Reservation:

National Treatment (Article 1102 (TLCAN: Art. 1102))

Level of Government:

Federal

Measures:

Ley Federal de Radio y Televisión, Título III, Capítulos I, II, III



Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera, Capítulos I, II, III, V, VI



Reglamento del Servicio de Televisión por Cable, Capítulo II



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, II, III, V; Título IX, Capítulo I



As qualified by the Description element

Description:

Investment



Investors of another Party or their investments may only own, directly or indirectly, up to 49 percent of the ownership interest in an enterprise, established or to be established in the territory of Mexico, that owns or operates a cable television system or provides cable television services.

Phase-Out:

None. Subject to discussion by the Parties five years after the date of entry into force of this Agreement.

Sector:

Communications

Sub-Sector:

Entertainment Services (Cable Television)

Industry Classification:

CMAP 941105 - Private Services of Production, Transmission and Retransmission of Television Programming (limited to cable television)

Type of Reservation:

National Treatment (Article 1202 (TLCAN: Art. 1202))

Local Presence (Article 1205 (TLCAN: Art. 1205))

Level of Government:

Federal

Measures:

Constitución Política de los Estados Unidos Mexicanos,

Artículo 32



Ley de Vías Generales de Comunicación, Libro I, Capítulo III



Ley de Nacionalidad y Naturalización, Capítulo IV



Ley Federal de Radio y Televisión, Título III, Capítulos I, II, III



Reglamento del Servicio de Televisión por Cable, Capítulo II

Description:

Cross-Border Services



A concession granted by the Secretaría de Comunicaciones y Transportes is required to construct and operate, or to operate, a cable television system. Only Mexican nationals and Mexican enterprises may obtain such a concession.

Phase-Out:

None

Sector:

Communications

Sub-Sector:

Entertainment Services (Cinema)

Industry Classification:

CMAP 941103 - Private Exhibition of Films

Type of Reservation:

National Treatment (Article 1202 (TLCAN: Art. 1202))

Performance Requirements (Article 1106 (TLCAN: Art. 1106))

Level of Government:

Federal

Measures:

Ley de la Industria Cinematográfica



Reglamento de la Ley de la Industria Cinematográfica



As qualified by the Description element

Description:

Cross-Border Services and Investment



Thirty percent of the screen time of every theater, assessed on an annual basis, may be reserved for films produced by Mexican persons either within or outside the territory of Mexico.

Phase-Out:

None

Sector:

Communications

Sub-Sector:

Telecommunications (Enhanced or ValueAdded Services)

Industry Classification:

CMAP 720006 - Other Telecommunications Services (limited to enhanced or valueadded services)

Type of Reservation:

National Treatment (Articles 1102 (TLCAN: Art. 1102), 1202 (TLCAN: Art. 1202))

Local Presence (Article 1205 (TLCAN: Art. 1205))

Level of Government:

Federal

Measures:

Ley de Vías Generales de Comunicación, Libro I, Capítulo III



Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera, Capítulos I, II, III, V, VI



Reglamento de Telecomunicaciones, Capítulo IV



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, II, III, V; Título IX, Capítulo I



As qualified by paragraphs 2 and 4 of the Description element

Description:

Cross-Border Services



1. A provider of enhanced or valueadded services must obtain a permit issued by the Secretaría de Comunicaciones y Transportes.



2. Persons of Canada or the United States may provide all enhanced or valueadded services, except videotext or enhanced packet switching services, without the need to establish local presence.



3. Videotext and enhanced packet switching services may not be provided on a Cross-Border basis.



Investment



4. Investors of another Party or their investments may own 100 percent of the ownership interest in an enterprise, established or to be established in the territory of Mexico, that provides any enhanced or valueadded service, other than videotext or enhanced packet switching services.



5. Investors of another Party or their investments may only own, directly or indirectly, up to 49 percent of the ownership interest in an enterprise, established or to be established in the territory of Mexico, that provides videotext or enhanced packet switching services.

Phase-Out:

Cross-Border Services



Beginning July 1, 1995, a person of Canada or the United States may provide videotext or enhanced packet switching services on a cross-border basis without the need to establish a local presence in the territory of Mexico.

Investment



Beginning July 1, 1995, investors of another Party or their investments may own 100 percent of the ownership interest in an enterprise established or to be established in the territory of Mexico that provides videotext or enhanced packet switching services.

Sector:

Communications

Sub-Sector:

Transportation and Telecommunications

Industry Classification:

CMAP 7200 - Communications (including telecommunications and postal services)

CMAP 7100 - Transportation

Type of Reservation:

National Treatment (Article 1102 (TLCAN: Art. 1102))

Level of Government:

Federal

Measures:

Ley de Vías Generales de Comunicación, Libro I, Capítulos III, V



Reglamento de Telecomunicaciones, Capítulo III

Description:

Investment



Foreign governments and foreign state enterprises or their investments may not invest, directly or indirectly, in Mexican enterprises engaged in communications, transportation and other general means of communication ("vías generales de comunicación") activities, as defined in the Ley de Vías Generales de Comunicación.

Phase-Out:

None

Sector:

Construction

Sub-Sector:

Industry Classification:

CMAP 501101 - Residential or Housing Construction

CMAP 501102 - Nonresidential Construction

CMAP 501200 - Construction of Urbanization Projects

CMAP 501311 - Construction of Industrial Plants

CMAP 501312 - Construction of Electricity Generation Plants

CMAP 501321 - Construction and Maintenance of Electricity Conduction Lines and Networks

CMAP 501411 - Mounting or Installing Concrete Structures

CMAP 501412 - Mounting or Installing Metallic Structures

CMAP 501421 - Marine and River Works

CMAP 501422 - Construction of Routes for Land Transportation

CMAP 502001 - Hydraulic and Sanitation Installations in Buildings

CMAP 502002 - Electrical Installations in Buildings

CMAP 502003 - Telecommunications Installations

CMAP 502004 - Other Special Installations

CMAP 503001 - Earth Movements

CMAP 503002 - Cement Works

CMAP 503003 - Underground Excavations

CMAP 503004 - Underwater Works

CMAP 503005 - Installation of Signs and Warnings

CMAP 503006 - Demolition

CMAP 503007 - Construction of Water Purification or Treatment Plants

CMAP 503009 - Drilling Water Wells

CMAP 503010 - Construction Activities, Not Elsewhere Classified

Type of Reservation:

National Treatment (Article 1102 (TLCAN: Art. 1102))

Level of Government:

Federal

Meaures:

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, II, III, V; Título IX, Capítulo I

Description:

Investment



Prior approval of the Comisión Nacional de Inversiones Extranjeras is required for investors of another Party or their investments to own, directly or indirectly, more than 49 percent of the ownership interest in an enterprise established or to be established in the territory of Mexico that performs construction activities as set out in the Industry Classification element.

Phase-Out:

Subject to Schedule of Mexico, Annex I, page I-M-4, five years after the date of entry into force of this Agreement, investors of another Party and their investments may own 100 percent of the ownership interest in an enterprise established or to be established in the territory of Mexico without prior approval of the Comisión Nacional de Inversiones Extranjeras.

Sector:

Construction

Sub-Sector:

Industry Classification:

CMAP 501322 - Construction of Means for the Transportation of Petroleum and its Derivatives (limited to specialized contractors only)

CMAP 503008 - Petroleum and Gas, Exploration and Drilling Works and Services (limited to specialized contractors only)

Type of Reservation:

National Treatment (Article 1102 (TLCAN: Art. 1102))

Level of Government:

Federal

Measures:

Constitución Política de los Estados Unidos Mexicanos,

Artículo 27



Ley Reglamentaria del Artículo 27 Constitucional en el Ramo del Petróleo



Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera, Capítulos I, II, III, V, VI



Reglamento de la Ley Reglamentaria del Artículo 27 Constitucional en el Ramo del Petróleo , Capítulos I, V, IX, XII



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, II, III, V; Título IX, Capítulo I

Description:

Investment



Risksharing contracts are prohibited.



Prior approval of the Comisión Nacional de InversionesExtranjeras is required for investors of another Party or their investments to own, directly or indirectly, more than 49 percent of the ownership interest in an enterprise established or to be established in the territory of Mexico involved in "nonrisk-sharing" contracts for the exploration and drilling works of petroleum and gas wells and the construction of means for the transportation of petroleum and its derivatives. See also Schedule of Mexico, Annex III, page III-M-1.

Phase-Out:

None

Sector:

Educational Services

Sub-Sector:

Private Schools

Industry Classification:

CMAP 921101 - Private Preschool Educational Services

CMAP 921102 - Private Primary School Educational Services

CMAP 921103 - Private Secondary School Educational Services

CMAP 921104 - Private Middle High (Preparatory) School Educational Services

CMAP 921105 - Private Higher School Educational Services

CMAP 921106 - Private Educational Services that Combine Preschool, Primary, Secondary, Middle High and Higher School Instruction

Type of Reservation:

National Treatment (Article 1102 (TLCAN: Art. 1102))

Level of Government:

Federal

Measures:

Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera, Capítulos I, II, III, V, VI



Ley para la Coordinación de la Educación Superior, Capítulo II



Ley Federal de Educación, Capítulo III



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, II, III, V; Título IX, Capítulo I

Description:

Investment



Prior approval of the Comisión Nacional de Inversiones Extranjeras is required for investors of another Party or their investments to own, directly or indirectly, more than 49 percentof the ownership interest in an enterprise established or to be established in the territory of Mexico that provides preschool, primary, secondary, preparatory, higher, worker or peasant, or "normal" educational services.

Phase-Out:

None

Sector:

Energy

Sub-Sector:

Petroleum Products

Industry Classification:

CMAP 623050 - Retail Sales of Liquified Petroleum Gas (LPG)

Type of Reservation:

National Treatment (Article 1102 (TLCAN: Art. 1102))

Level of Government:

Federal

Measures:

Ley Reglamentaria del Artículo 27 Constitucional en el Ramo del Petróleo



Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera, Capítulos I, II, III, V, VI



Reglamento de la Ley Reglamentaria del Artículo 27 Constitucional en el Ramo del Petróleo, Capítulos I, IX, XII



Reglamento de la Distribución de Gas, Capítulos I,



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, II, III, V; Título IX, Capítulo I

Description:

Investment



Only Mexican nationals and Mexican enterprises with a foreigners' exclusion clause may engage in the distribution, transportation, storage, or sale of liquified petroleum gas and the installation of fixed deposits.

Phase-Out:

None

Sector:

Energy

Sub-Sector:

Petroleum Products

Industry Classification:

CMAP 626000 - Retail Outlets of Gasoline and Diesel (including lubricants, oils and additives for resale in these retail outlets)

Type of Reservation:

National Treatment (Article 1102 (TLCAN: Art. 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, II, III, V; Título IX, Capítulo I



Reglamento de la Ley Reglamentaria del Artículo 27 Constitucional en el Ramo del Petróleo, Capítulos I, II, III, V, VII, IX, XII



As qualified by the Description element

Description:

Investment



Only Mexican nationals and Mexican enterprises with a foreigners' exclusion clause may acquire, establish or operate retail outlets engaged in the sale or distribution of gasoline, diesel, lubricants, oils or additives.

Phase-Out:

None

Sector:

Fishing

Sub-Sector:

Industry Classification:

CMAP 130011 - Fishing on the High Seas

CMAP 130012 - Coastal Fishing

CMAP 130013 - Fresh Water Fishing

Type of Reservation:

National Treatment (Article 1102 (TLCAN: Art. 1102))

Most-Favored-Nation Treatment (Article 1103 (TLCAN: Art. 1103))

Level of Government:

Federal

Measures:

Ley de Pesca, Capítulos I, II, IV



Ley de Navegación y Comercio Marítimos, Libro II, Título Unico, Capítulo V



Ley Federal del Mar, Título I, Capítulo I



Ley Federal de Aguas



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, CapED¡tulo I; Título IV; Título V; Título VIII, Capítulos I, II, III, V; Título IX, Capítulo I



Reglamento de la Ley de Pesca, Capítulos I, II, III, V, VI, IX,

Description:

Investment



With respect to an enterprise established or to be established in the territory of Mexico performing coastal fishing, fresh water fishing and fishing in the Exclusive Economic Zone, investorsof another Party or their investments may only own, directly or indirectly, up to 49 percent of the ownership interest in such an enterprise.



With respect to an enterprise established or to be established in the territory of Mexico performing fishing on the high seas, prior approval of the Comisión Nacional de Inversiones Extranjeras is required for investors of another Party or their investments to own, directly or indirectly, more than 49 percent of the ownership interest in such an enterprise.

Phase-Out:

None

Sector:

Manufacturing and Assembly of Goods

Sub-Sector:

Auto Parts Industry

Industry Classification:

CMAP 383103 - Manufacturing of Parts and Accessories for Electrical Automotive Systems

CMAP 384121 - Manufacture and Assembly of Car and Truck Bodies and Tows

CMAP 384122 - Manufacture of Car and Truck Motors and their Parts

CMAP 384123 - Manufacture of Car and Truck Transmission System Parts

CMAP 384124 - Manufacture of Car and Truck Suspension System Parts

CMAP 384125 - Manufacture of Car and Truck Brake System Parts and Accessories

CMAP 384126 - Manufacture of Other Car and Truck Parts and Accessories

Type of Reservation:

National Treatment (Article 1102 (TLCAN: Art. 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, II, III, V; Título IX, Capítulo I



Decreto para el Fomento y Modernización de la Industria Automotriz ("Auto Decree")



Acuerdo que Determina Reglas para la Aplicación del Decreto para el Fomento y Modernización de la Industria Automotriz



As qualified by the Description element

Description:

Investment



1. Investors of another Party or their investments may only own, directly or indirectly, up to 49 percent of the ownership interest in an "enterprise of the autoparts industry", as defined in Annex 300-A (TLCAN: Anexo 300-A), established or to be established in the territory of Mexico.



2. Investors of another Party or their investments that qualify as "national suppliers", as defined in Annex 300-A (TLCAN: Anexo 300-A), may own 100 percent of the ownership interest in an enterprise established or to be established in the territory of Mexico and that engages in the supply of specified autoparts to producers of motor vehicles.



3. Investors of another Party or their investments may own up to 100 percent of the ownership interest in an enterprise producing autoparts established or to be established in the territory of Mexico, provided that the enterprise does not register with the Secretaría de Comercio y Fomento Industrial for purposes of the Auto Decree nor receive benefits under the Auto Decree. After the five-year transition period set out in the Phase-Out element, such firms shall be eligible to register or to receive benefits set forth in the Auto Decree as modified by Appendix 300-A.2 provided that such enterprise meets the requirements set out therein for national supplier or "enterprise of the autoparts industry" status.

Phase-Out:

Five years after the date of entry into force of this Agreement, investors of another Party or their investments may own 100 percent of the ownership interest in any enterprise of the autoparts industry established or to be established in the territory of Mexico.



See Next section, Manufacture of Goods, Automotive Industry.

Sector:

Manufacture of Goods

Sub-Sector:

Automotive Industry

Industry Classification:

CMAP 383103 - Manufacturing of Parts and Accessories for Electrical Automotive Systems

CMAP 3841 - Automotive Industry

CMAP 384121 - Manufacture and Assembly of Car and Truck Bodies and Tows

CMAP 384122 - Manufacture of Car and Truck Motors and their Parts

CMAP 384123 - Manufacture of Car and Truck Transmission System Parts

CMAP 384124 - Manufacture of Car and Truck Suspension System Parts

CMAP 384125 - Manufacture of Car and Truck Brake System Parts and Accessories

CMAP 384126 - Manufacture of Other Car and Truck Parts and Accessories

Type of Reservation:

Performance Requirements (Article 1106 (TLCAN: Art. 1106))

Level of Government:

Federal

Measures:

Decreto para el Fomento y Modernización de la Industria Automotriz ("Auto Decree")



Acuerdo que Determina Reglas para la Aplicación del Decreto para el Fomento y Modernización de la Industria Automotriz



As qualified by Description element

Description:

Investment



As set out in Annex 300-A (TLCAN: Anexo 300-A)

Phase-Out:

As set out in Annex 300-A (TLCAN: Anexo 300-A)

Sector:

Manufacture of Goods

Sub-Sector:

Maquiladora Industry

Industrial Classification:

Type of Reservation:

Performance Requirements (Article 1106 (TLCAN: Art. 1106))

Level of Government:

Federal

Measures:

Ley Aduanera, Título IV, Capítulos I, III; Título V, Capítulo II; Título VI



Decreto para el Fomento y Operación de la Industria Maquiladora de Exportación ("Maquiladora Decree")



As qualified by the Description element

Description:

Investment



Persons authorized by the Secretaría de Comercio y Fomento Industrial to operate under the Maquiladora Decree may not sell to the domestic market more than 55 percent of the total value of their annual exports in the previous year.

Phase-Out:

Sales of a maquiladora to the domestic market may not exceed:

(a) One year after the date of entry into force of this Agreement, 60 percent of the total value of its annual exports in the previous year;

(b) Two years after the date of entry into force of this Agreement, 65 percent of the total value of its annual exports in the previous year;



(c) Three years after the date of entry into force of this Agreement, 70 percent of the total value of its annual exports in the previous year;



(d) Four years after the date of entry into force of this Agreement, 75 percent of the total value of its annual exports in the previous year;

(e) Five years after the date of entry into force of this Agreement, 80 percent of the total value of its annual exports in the previous year; and



(f) Six years after the date of entry into force of this Agreement, 85 percent of the total value of its annual exports in the previous year.

Seven years after the date of entry into force of this Agreement, sales of a maquiladora to the domestic market will not be subject to any percentage requirement.

Sector:

Manufacture of Goods

Sub-Sector:

Industrial Classification:

Type of Reservation:

Performance Requirements (Article 1106 (TLCAN: Art. 1106))

Level of Government:

Federal

Measures:

Ley Reglamentaria del Artículo 131 de la Constitución Política de los Estados Unidos Mexicanos en Materia de Comercio Exterior, Capítulo I



Decreto para el Fomento y Operación de las Empresas Altamente Exportadoras, ("ALTEX Decree")

Description:

Investment



1. "Direct exporters", as defined in the ALTEX Decree, authorized by the Secretaría de Comercio y Fomento Industrial to operate under that decree must export at least 40 percent of their total sales or US$2,000,000.



2. "Indirect exporters", as defined in ALTEX Decree, authorized by the Secretaría de Comercio y Fomento Industrial to operate under that decree must export at least 50 percent of their total sales.

Phase-Out:

Seven years after the date of entry into force of this Agreement, "direct and indirect exporters" will not be subject to the percentage requirements set out in the Description element.

Sector:

Manufacture of Goods

Sub-Sector:

Industrial Classification:

Type of Reservation:

Performance Requirements (Article 1106 (TLCAN: Art. 1106))

Level of Government:

Federal

Measures:

Ley Reglamentaria del Artículo 131 de la Constitución Política de los Estados Unidos Mexicanos en Materia de Comercio Exterior, Capítulo I



Ley Aduanera, Título III, Capítulo IV; Título IV, Capítulos I, III



Decreto que Establece Programas de Importación Temporal para Producir Artículos de Exportación, ("PITEX Decree")

Description:

Investment



Persons authorized by the Secretaría de Comercio y Fomento Industrial to operate under the PITEX Decree are required to export at least:

(a) 30 percent of their total production in order to be permitted to temporarily import duty-free

(i) Machinery, equipment, instruments, molds and durable tools used in the manufacturing process, and equipment used to handle materials directly related to the exportation of goods, and



(ii) Devices, equipment, accessories or other items related to the production of exported goods, including those used for research, industrial security, quality control, communication, training of personnel, informatics and environmental purposes; and

(b) 10 percent of their total production or US$500,000 in order to be permitted to temporarily import duty-free

(i) Raw materials, parts and components totally used in the production of exported goods,



(ii) Packages, bottles, containers and trailer's containers which are totally used to contain exported goods, and



(iii) Fuel, lubricants, auxiliary materials, reparation tools and equipment consumed in the production of exported goods.

Phase-Out:

Seven years after the date of entry into force of this Agreement, such persons will not be subject to the percentage requirements set out in the Description element.

Sector:

Manufacture of Goods

Sub-Sector:

Artificial Explosives, Fireworks, Firearms and Cartridges

Industry Classification:

CMAP 352236 - Manufacturing of Artificial Explosives and Fireworks

CMAP 382208 - Manufacturing of Firearms and Cartridges

Type of Reservation:

National Treatment (Article 1102 (TLCAN: Art. 1102))

Senior Management and Boards of Directors (Article 1107 (TLCAN: Art. 1107))

Level of Government:

Federal

Measures:

Ley Federal de Armas de Fuego y Explosivos, Título III, Capítulo I



Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera, Capítulos I, II, III, V, VI



Reglamento de la Ley Federal de Armas de Fuego y Explosivos, Capítulo IV



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, II, III, V; Título IX, Capítulo I

Description:

Investment



Investors of another Party or their investments may only own, directly or indirectly, up to 49 percent of the ownership interest in an enterprise established or to be established in the territory of Mexico that manufactures artificial explosives and fireworks, firearms, cartridges and ammunition.



No foreign national may appoint or be appointed a member of the board of directors or an officer of such an enterprise.

Phase-Out:

None

Sector:

Mining

Sub-Sector:

Extraction and Exploitation of Minerals

Industry Classification:

CMAP 210000 - Exploitation of Mineral Carbon

CMAP 231000 - Extraction of Minerals Containing Iron

CMAP 232001 - Extraction of Minerals Containing Gold, Silver and other Precious Minerals and Metals

CMAP 232002 - Extraction of Mercury and Antimony

CMAP 232003 - Extraction of Industrial Minerals Containing Lead and Zinc

CMAP 232004 - Extraction of Minerals Containing Copper

CMAP 232006 - Extraction of other Metallic Minerals not containing Iron

CMAP 291001 - Extraction of Sand and Gravel

CMAP 291002 - Extraction of Marble and other Gravels for Construction

CMAP 291003 - Exploitation of Feldspar

CMAP 291004 - Extraction of Kaolin, Clay and Refractory Minerals

CMAP 291005 - Extraction of Limestones

CMAP 291006 - Exploitation of Gypsum

CMAP 292001 - Extraction of Barium Oxide

CMAP 292002 - Extraction of Phosphoric Rock

CMAP 292003 - Extraction of Fluorite

CMAP 292004 - Extraction of Sulphur

CMAP 292005 - Extraction of other Minerals in order to Obtain Chemicals

CMAP 292006 - Extraction of Salt

CMAP 292007 - Extraction of aphite

CMAP 292008 - Extraction of other Non-Metallic Minerals

Type of Reservation:

National Treatment (Article 1102 (TLCAN: Art. 1102))

Level of Government:

Federal

Measures:

Ley Minera, Capítulos I, II



Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera, Capítulos I, II, III, V, VI



Reglamento de la Ley Minera



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; Título IX, Capítulo I



As qualified by the Description element

Description:

Investment



Prior approval of the Comisión Nacional de Inversiones Extranjeras is required for investors of another Party or their investments to own, directly or indirectly, more than 49 percent of the ownership interest in an enterprise established or to be established in the territory of Mexico engaged in the extraction or exploitation of any mineral.

Phase-Out:

Subject to Schedule of Mexico, Annex I, page I-M-4, five years after the date of entry into force of this Agreement, investors of another Party or their investments may own 100 percent of the ownership interest in an enterprise established or to be established in the territory of Mexico engaged in extraction or exploitation of any mineral, without the prior approval of the Comisión Nacional de Inversiones Extranjeras.

Sector:

Printing, Editing and Associated Industries

Sub-Sector:

Newspaper Publishing

Industry Classification:

CMAP 342001 - Newspaper Publishing

Type of Reservation:

National Treatment (Article 1102 (TLCAN: Art. 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, II, III, V; Título IX, Capítulo I



As qualified by the Description element

Description:

Investment



Investors of another Party or their investments may own, directly or indirectly, 100 percent of the ownership interest in an enterprise established or to be established in the territory of Mexico engaged in the simultaneous printing and distribution in the territory of Mexico of a daily newspaper that is published outside of the territory of Mexico.



Investors of another Party or their investments may only own, directly or indirectly, up to 49 percent of the ownership interest in an enterprise established or to be established in the territory of Mexico engaged in the printing or publication of daily newspapers written primarily for a Mexican audience and distributed in the territory of Mexico.



For purposes of this reservation, daily newspapers are those published at least five days a week.

Phase-Out:

None

Sector:

Professional, Technical and Specialized Services

Sub-Sector :

Specialized Personnel

Industry Classification:

CMAP 951012 - Customs Brokers and Representation Agency Services (limited to shippers' export declarations)

Type of Reservation:

National Treatment (Article 1202 (TLCAN: Art. 1202))

Level of Government:

Federal

Measures:

Ley Aduanera, Título IX, Capítulo Unico

Description:

Cross-Border Services



A shipper's export declaration must be processed by a Mexican national licensed as a customs broker ("agente aduanal") or by a representative ("apoderado aduanal") employed by the exporter and authorized by the Secretaría de Hacienda y Crédito Público for this purpose.

Phase-Out:

None. Subject to discussion by the Parties five years after the date of entry into force of this Agreement.

Sector:

Professional, Technical and Specialized Services

Sub-Sector :

Professional Services

Industry Classification:

CMAP 9510 - Professional, Technical and Specialized Services (limited to professional services)

Type of Reservation:

National Treatment (Article 1202 (TLCAN: Art. 1202))

Local Presence (Article 1205 (TLCAN: Art. 1205))

Level of Government:

Federal and State

Measures:

Ley Reglamentaria del Artículo 5o. Constitucional, Relativo al Ejercicio de las Profesiones en el Distrito Federal, Capítulo III, Sección Tercera, Capítulos IV, V



Ley General de Población,Título III, Capítulo III



Reglamento de la Ley Reglamentaria del Artículo 5o. Constitucional, relativo al Ejercicio de las Profesiones en el Distrito Federal, Capítulo III

Description:

Cross-Border Services



Only Mexican nationals may be licensed in professions that require a professional license ("cédula profesional").



An "inmigrado" or an "inmigrante" may seek a judicial order to obtain such a license.

Phase-Out:

Citizenship and permanent residency requirements are subject to removal within two years of the date of entry into force of this Agreement in accordance with Article 1210(3) (TLCAN: Art. 1210). On removal of these requirements, a foreign professional will be required to have an address in Mexico.



With respect to legal services, see Schedule of Mexico, Annex I, page I-M-46, Schedule of Mexico Annex II, page II-M-10, and Schedule of Mexico, Annex VI, page VI-M-2.

Sector:

Professional, Technical and Specialized Services

Sub-Sector :

Professional Services

Industry Classification:

CMAP 951002 - Legal Services (including foreign legal consultancy)

Type of Reservation:

National Treatment (Articles 1102 (TLCAN: Art. 1102), 1202 (TLCAN: Art. 1202))

Most-Favored-Nation Treatment (Articles 1103 (TLCAN: Art. 1103), 1203 (TLCAN: Art. 1203))

Local Presence (Article 1205 (TLCAN: Art. 1205))

Level of Government:

Federal

Measures:

Ley Reglamentaria del Artículo 5o. Constitucional, Relativo al Ejercicio de las Profesiones en el Distrito Federal, Capítulo I, Capítulo III, Sección III



Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera, Capítulos I, II, III, V, VI



Reglamento de la Ley Reglamentaria del Artículo 5o. Constitucional, relativo al Ejercicio de las Profesiones en el Distrito Federal, Capítulos I, II, V



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, II, III, V; Título IX, Capítulo I



As qualified by the Description element

Description:

Cross Border Services and Investment



Except as provided for in this reservation, only lawyers licensed in Mexico may have an ownership interest in a law firm established in the territory of Mexico.



Lawyers licensed in a Canadian province that permits partnerships between those lawyers and lawyers licensed in Mexico will be permitted to form partnerships with lawyers licensed in Mexico.



The number of lawyers licensed in Canada serving as partners, and their ownership interest in the partnership, may not exceed the number of lawyers licensed in Mexico serving as partners, and their ownership interest in the partnership. A lawyer licensed in Canada may not practice or advise on Mexican law.



A law firm established by a partnership of lawyers licensed in Canada and lawyers licensed in Mexico may hire lawyers licensed in Mexico as employees.



Lawyers licensed in Canada will be subject to Schedule of Mexico, Annex VI, page VI-M-2.



Lawyers licensed in the United States will be subject to Schedule of Mexico, Annex II, page II-M-10 and Schedule of Mexico, Annex VI, page VI-M-2.

Phase-Out:

None

Sector:

Professional, Technical and Specialized Services

Sub-Sector :

Professional Services

Industry Classification:

CMAP 951003 - Accounting and Auditing Services (limited to accounting services)

Type of Reservation:

National Treatment (Article 1202 (TLCAN: Art. 1202))

Local Presence (Article 1205 (TLCAN: Art. 1205))

Level of Government:

Federal

Measures:

Código Fiscal de la Federación, Título III



Reglamento del Código Fiscal de la Federación, Capítulo II

Description:

Cross-Border Services



Only Mexican nationals who are licensed as accountants in Mexico are authorized to perform audits for tax purposes on behalf of:

(a) State enterprises;



(b) Enterprises that are authorized to receive taxdeductible donations;



(c) Enterprises with income, capital stock, number of employees and operations above levels specified annually by the Secretaría de Hacienda y Crédito Público; or



(d) Enterprises undergoing a merger or divestiture.

Phase-Out:

Citizenship and permanent residency requirements are subject to removal within two years of the date of entry into force of this Agreement in accordance with Article 1210(3). On removal of these requirements, a foreign professional will be required to have an address in Mexico.

Sector:

Professional, Technical and Specialized Services

Sub-Sector :

Specialized Services (Commercial Public Notaries)

Industrial Classification:

Type of Reservation:

National Treatment (Articles 1102 (TLCAN: Art. 1102), 1202 (TLCAN: Art. 1202))

Local Presence (Article 1205 (TLCAN: Art. 1205))

Level of Government:

Federal

Measures:

Código de Comercio, Libro I, Título III



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, II, III, V; Título II, Capítulo I

Description:

Cross-Border Services and Investment



1. Only a Mexican national by birth may be licensed to be a commercial public notary ("corredor público").



2. A commercial public notary may not have a business affiliation with any person for the provision of commercial public notary services.

Phase-Out:

1. Citizenship and permanent residency requirements are subject to removal within two years of the date of entry into force of this Agreement in accordance with Article 1210(3). On removal of these requirements, a foreign professional will be required to have an address in Mexico.



2. None

Sector:

Professional, Technical and Specialized Services

Sub-Sector :

Specialized Services

Industry Classification:

CMAP 951001 - Public Notary

Type of Reservation:

National Treatment (Articles 1102 (TLCAN: Art. 1102), 1202 (TLCAN: Art. 1202))

Local Presence (Article 1205 (TLCAN: Art. 1205))

Level of Government:

Federal and State

Measures:

Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera, Capítulos I, II, III, V, VI



Leyes del Notariado para los Estados de: Aguascalientes, Baja California, Baja California Sur, Campeche, Coahuila, Colima, Chiapas, Chihuahua, Distrito Federal, Durango, Guanajuato, Guerrero, Hidalgo, Jalisco, México, Michoacán, Morelos, Nayarit, Nuevo León, Oaxaca, Puebla, Querétaro, Quintana Roo, San Luis Potosí, Sinaloa, Sonora, Tabasco, Tamaulipas, Tlaxcala, Veracruz, Yucatán and Zacatecas.



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, II, III, V; Título IX, Capítulo I

Description:

Cross-Border Services and Investment



Only Mexican nationals by birth may be granted a fiat ("patente") to be public notaries ("notarios públicos").



A public notary may not have a business affiliation with any person for the provision of public notary services.

Phase-Out:

None

Sector:

Professional, Technical and Specialized Services

Sub-Sector :

Professional Services

Industry Classification:

CMAP 951023 - Other Professional Services (limited to private veterinary services)

Type of Reservation:

National Treatment (Article 1202 (TLCAN: Art. 1202))

Level of Government:

Federal

Measures:

Ley de Sanidad Fitopecuaria de los Estados Unidos Mexicanos, Título II, Capítulo IV



Reglamento de Control de Productos QuímicoFarmacéuticos, Biológicos, Alimenticios, Equipos y Servicios para Animales, Capítulos IV, V

Description:

Cross-Border Services



For enterprises that manage chemical, pharmaceutical and biological goods for application to animals, only a Mexican national may be:



(a) A veterinarian responsible for management of such goods; or



(b) A licensed professional responsible for laboratories of such enterprises.

Phase-Out:

Citizenship and permanent residency requirements are subject to removal within two years of the date of entry into force of this Agreement in accordance with Article 1210(3). On removal of these requirements, a foreign professional will be required to have an address in Mexico.

Sector:

Retail Commerce

Sub-Sector :

Sale of Non-Food Products in Specialized Establishments

Industry Classification:

CMAP 623087 - Sale of Firearms, Cartridges and Ammunition



CMAP 612024 - Wholesale Commerce, Not Elsewhere Classified (limited to firearms, cartridges and ammunition)

Type of Reservation:

National Treatment (Article 1102 (TLCAN: Art. 1102))

Senior Management and Boards of Directors (Article 1107 (TLCAN: Art. 1107))

Level of Government:

Federal

Measures:

Ley Federal de Armas de Fuego y Explosivos, Título III, Capítulo I



Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera, Capítulos I, II, III, V, VI



Reglamento de la Ley Federal de Armas de Fuego y Explosivos, Capítulo IV



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, II, III, V; Título IX, Capítulo I

Description:

Investment



Investors of another Party or their investments may only own, directly or indirectly, up to 49 percent of the ownership interest in an enterprise established or to be established in the territory of Mexico that sells firearms, cartridges and ammunition.



No foreign national may appoint or be appointed a member of the board of directors or managing officer of such an enterprise.

Phase-Out:

None

Sector:

Religious Services

Sub-Sector :

Industry Classification:

CMAP 929001 - Religious Services

Type of Reservation:

Local Presence (Article 1205 (TLCAN: Art. 1205))



Senior Management and Boards of Directors (Article 1107 (TLCAN: Art. 1107))

Level of Government:

Federal

Measures:

Ley de Asociaciones Religiosas y Culto Privado, Título II, Capítulos I, II

Description:

Cross-Border Services



Religious associations must be associations constituted in accordance with the Ley de Asociaciones Religiosas y Cultos Privados.



Investment



Representatives of religious associations in Mexico must be Mexican nationals.

Phase-Out:

None

Sector:

Services to Agriculture

Sub-Sector :

Industry Classification:

CMAP 971010 - Supply of Agricultural Services

Type of Reservation:

National Treatment (Article 1202 (TLCAN: Art. 1202))

Local Presence (Article 1205 (TLCAN: Art. 1205))

Level of Government:

Federal

Measures:

Constitución Política de los Estados Unidos Mexicanos,

Artículo 32



Ley de Sanidad Fitopecuaria de los Estados Unidos Mexicanos, Título II

Ley de Nacionalidad y Naturalización, Capítulo IV



Reglamento de la Ley de Sanidad Fitopecuaria de los Estados Unidos Mexicanos, Capítulo VII

Description:

Cross-Border Services



A concession granted by the Secretaría de Agricultura y Recursos Hidráulicos is required to spray pesticides.



Only Mexican nationals or Mexican enterprises may obtain such a concession.

Phase-Out:

Six years after the date of entry into force of this Agreement, the requirement of a concession will be replaced with a permit requirement and the citizenship requirement will be eliminated.

Sector:

Transportation

Sub-Sector:

Air Transportation

Industry Classification:

CMAP 713001 - Transportation Services on MexicanRegistered Aircraft



CMAP 713002 - Air Taxi Transportation Services

Type of Reservation:

National Treatment (Article 1102 (TLCAN: Art. 1102))



Senior Management and Boards of Directors (Article 1107 (TLCAN: Art. 1107))

Level of Government:

Federal

Measures:

Ley de Vías Generales de Comunicación, Libro IV, Capítulo I, X, XI



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, II, III, V; Título IX, Capítulo I



As qualified by the Description element

Description:

Investment



Investors of another Party or their investments may only own, directly or indirectly, up to 25 percent of the voting interest in an enterprise established or to be established in the territory of Mexico that provides commercial air services on Mexican-registered aircraft. The chairman and at least twothirds of the board of directors and twothirds of managing officers of such an enterprise must be Mexican nationals.



Only Mexican nationals and Mexican enterprises in which 75 percent of the voting interests is owned or controlled byMexican nationals and of which the chairman and at least two-thirds of the managing officers are Mexican nationals may register aircraft in Mexico.



Only Mexican-registered aircraft may provide the following commercial air transport services:

(a) "Domestic services" (air services between points, or from and to the same point, in the territory of Mexico, or between a point in the territory of Mexico and a point not in the territory of another country) ;



(b) "Scheduled international services" (scheduled air services between a point in the territory of Mexico and a point in the territory of another country) where those services have been reserved to Mexican carriers under existing or future bilateral agreements; and



(c) "Non-scheduled international services" (non-scheduled air services between a point in the territory of Mexico and a point in the territory of another country) where those services have been reserved to Mexican carriers under existing or future bilateral agreements.

Phase-Out:

None

Sector:

Transportation

Sub-Sector:

Specialty Air Services

Industrial Classification:

Type of Reservation:

National Treatment (Articles 1102 (TLCAN: Art. 1102), 1202 (TLCAN: Art. 1202))

Local Presence (Article 1205 (TLCAN: Art. 1205))

Senior Management and Boards of Directors (Article 1107)

Level of Government:

Federal

Measures:

Ley de Vías Generales de Comunicación, Libro I, Capítulos I, II, III; Libro IV, Capítulo XII



As qualified by paragraphs 2, 3 and 4 of the Description element

Description:

Cross-Border Services



1. A permit issued by the Secretaría de Comunicaciones y Transportes (SCT) is required to provide all specialty air services in the territory of Mexico.



2. A person of Canada or the United States may obtain such a permit to provide flight training, forest fire management, fire-fighting, glider towing, and parachute jumping services in Mexico, subject to compliance with Mexican safety requirements.



3. Such a permit may not be issued to a person of Canada or the United States to provide aerial advertising, aerial sightseeing, aerial construction, helilogging, inspection and surveillance, mapping, photography, surveying and aerial spraying services.



Investment



4. Investors of another Party or their investments may only own, directly or indirectly, up to 25 percent of the voting interest in an enterprise established or to be established in the territory of Mexico that provides specialty air services using Mexican-registered aircraft. The chairman and at least twothirds of the board of directors and two-thirds of managing officers of such an enterprise must be Mexican nationals. Only Mexican nationals and Mexican enterprises in which 75 percent of the voting interest is owned or controlled by Mexican nationals and of which the chairman and at least two-thirds of the managing officers are Mexican nationals may register aircraft in Mexico.

Phase-Out:

Cross-Border Services



A person of Canada or the United States will be allowed to obtain a permit by SCT to provide, subject to compliance with Mexican safety requirements, the following specialty air services:



(a) Three years after the date of entry into force of this Agreement, aerial advertising, aerial sightseeing services, aerial construction and heli-logging; and



(b) Six years after the date of entry into force of this Agreement, inspection and surveillance, mapping, photography, surveying and aerial spraying services.



Investment



None

Sector:

Transportation

Sub-Sector:

Air Transportation

Industry Classification:

CMAP 384205 - Aircraft Building, Assembly and Repair (limited to aircraft repair)

Type of Reservation:

National Treatment (Article 1202 (TLCAN: Art. 1202))



Local Presence (Article 1205 (TLCAN: Art. 1205))

Level of Government:

Federal

Measures:

Constitución Política de los Estados Unidos Mexicanos, Artículo 32



Ley de Vías Generales de Comunicación, Libro I, Capítulos I, II, III; Libro IV, Capítulo XV



Ley de Nacionalidad y Naturalización, Capítulo IV



Reglamento de Talleres Aeronáuticos, Capítulo I

Description:

Cross-Border Services



A concession granted by the Secretaría de Comunicaciones y Transportes is required to establish and operate, or operate, an aircraft repair facility. Only Mexican nationals and Mexican enterprises may obtain such a concession.

Phase-Out:

None