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Archive   : NAFTA.ZIP
Filename : MEXICO.3

 
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ANNEX III
Schedule of Mexico


I. The Mexican State reserves the right to perform exclusively,
and to refuse to permit the establishment of investments in, the
following activities:


1. Petroleum, other Hydrocarbons and Basic Petrochemicals

(a) Description of activities

(i) exploration and exploitation of crude oil and
natural gas; refining or processing of crude oil
and natural gas; and production of artificial gas,
basic petrochemicals and their feedstocks and
pipelines; and,

(ii) foreign trade; transportation, storage and
distribution up to and including first hand sales
of the following goods: crude oil; natural and
artificial gas; goods obtained from the refining
or processing of crude oil and natural gas; and
basic petrochemicals.

(b) Legal citation:

Constituci¢n Pol¡tica de los Estados Unidos Mexicanos,
Articles 25, 27 and 28 (United Mexican States Political
Constitution, Articles 25, 27 and 28).

Ley Reglamentaria del Art¡culo 27 Constitucional en el
Ramo del Petr¢leo y sus reglamentos (Regulatory Law of
Article 27 of the United Mexican States Constitution
related to Oil, and its regulations).

Ley Org nica de Petr¢leos Mexicanos y Organismos
Subsidiarios (Statutory Law of Petr¢leos Mexicanos and
its Subsidiaries).

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ANNEX III
Schedule of Mexico




2. Electricity

(a) Description of activities: the supply of electricity as
a public service in Mexico, including, except as
provided in Annex 602.3 of the Energy Chapter, the
generation, transmission, transformation, distribution
and sale of electricity.

(b) Legal citation:

Constituci¢n Pol¡tica de los Estados Unidos Mexicanos,
Articles 25 and 28 (United Mexican States Political
Constitution, Articles 25 and 28).

Ley del Servicio P£blico de Energ¡a El‚ctrica y su
reglamento (Public Service of Electric Energy Law, and
its Regulations)

3. Nuclear Power and Treatment of Radioactive Minerals

(a) Description of activities: the generation of nuclear
energy; the exploration, exploitation and processing of
radioactive minerals; the nuclear fuel cycle; the use
and reprocessing of nuclear fuels and the regulation of
their applications for other purposes; the
transportation and storage of nuclear wastes; and the
production of heavy water.

(b) Legal citation:

Constituci¢n Pol¡tica de los Estados Unidos Mexicanos,
Articles 25, 27 and 28 (United Mexican Constitution,
Article 25, 27 and 28).

Ley Reglamentaria del Art¡culo 27 Constitucional en
Materia de Energ¡a Nuclear (Regulatory Law of the
Aticle 27 of the United Mexican Constitution related to
Atomic Energy).

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ANNEX III
Schedule of Mexico




4. Satellite Communications

(a) Description of activities: the establishment, operation
and ownership of satellite systems and earth stations
with international links.

(b) Legal citation:

Constituci¢n Pol¡tica de los Estados Unidos Mexicanos,
Articles 25 and 28 (United Mexican States, Articles 25
and 26).

Ley de V¡as Generales de Comunicaci¢n y sus reglamentos
(General Means of Communication Law)

5. Telegraph Services

Legal citation:

Constituci¢n Pol¡tica de los Estados Unidos Mexicanos,
Articles 25 and 28 (United Mexican States, Articles 25 and
28)

Ley de V¡as Generales de Comunicaci¢n y sus reglamentos
(General Means Communication Law)

6. Radiotelegraph Services

Legal citation:

Constituci¢n Pol¡tica de los Estados Unidos Mexicanos,
Articles 25 and 28 (United Mexican States Political
Constitution, Article 25 and 28)

Ley de V¡as Generales de Comunicaci¢n y sus reglamentos
(Genral Means of Communication Law).

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ANNEX III
Schedule of Mexico



7. Postal Services

(a) Description of activities: operation, administration
and organization of first class mail.

(b) Legal citation:

Constituci¢n Pol¡tica de los Estados Unidos Mexicanos,
Articles 25 and 28 (United Mexican States Political
Constitution, Articles 25 and 28).

Ley del Servicio Postal Mexicano (Mexican Postal
Service Law)

8. Railroads

(a) Description of activities: the operation,
administration and control of traffic within the
Mexican railway system; supervision and management of
railway right-of-way; operation, construction and
maintenance of basic railway infrastructure.

(b) Legal citation:

Constituci¢n Pol¡tica de los Estados Unidos Mexicanos,
Articles 25 and 28 (United Mexican States Political
Constitution, Articles 25 y 28).

Ley Org nica de Ferrocarriles Nacionales de M‚xico
(Statutory Law of Mexican Railroads).

9. Issuance of Bills (currency) and Minting of Coinage

Legal citation:

Constituci¢n Pol¡tica de los Estados Unidos Mexicanos,
Articles 25 and 28 (United Mexican States Political
Constitution, Articles 25 and 28).

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ANNEX III
Schedule of Mexico



Ley Org nica del Banco de M‚xico (Statutory Law of Banco de
M‚xico).

Ley Org nica de la Casa de Moneda de M‚xico (Statutory Law
of the Mexican Coining Agency).

10. Control, Inspection and Surveillance of Maritime and Inland
(Lake and River) Ports

Legal citation:

Ley de Navegaci¢n y Comercio Mar¡timo (Commercial and
Navigation Law), Articles 43 and 47.

Ley de V¡as Generales de Comunicaci¢n (General Means of
Communication Law) Article 272.

11. Control, Inspection and Surveillance of Airports and
Heliports

Legal citation:

Ley de V¡as Generales de Comunicaci¢n (General Means of
Communication) Article 327.

The legal citations are provided only for transparency purposes.

II. Deregulation of Activities Reserved to the State

1. The activities set out in Section I are reserved to the
Mexican State, and private equity investment is prohibited under
Mexican Law. Where Mexico allows private investment to
participate in such activities through service contracts,
concessions, lending arrangements or any other type of
contractual arrangement, such participation shall not be
construed to affect the State's reservation of those activities.

2. If Mexican laws or regulations are amended to allow private
equity investment in an activity set out in Section I, Mexico may
impose restrictions on foreign investment

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ANNEX III
Schedule of Mexico



participation notwithstanding Article 1102 and describe them in
Annex I. Mexico may also impose derogations from 1102 on foreign
equity investment participation when selling an asset or
ownership interest in an enterprise in activities set out in
Section I and describe them in Annex I.


III. Activities Formerly Reserved to the Mexican State

Where an activity was reserved to the Mexican State on
January 1, 1992 and is not reserved to the Mexican State upon
entry into force of this Agreement, Mexico may restrict the
initial sale of a state-owned asset or an ownership interest in a
state enterprise that performs that activity to enterprises with
majority ownership by Mexican nationals, as defined by the
Mexican Constitution. For a period not to exceed three years from
the initial sale, Mexico may restrict the transfer of such asset
or ownership interest to other enterprises with majority
ownership by Mexican nationals, as defined by the Mexican
Constitution. Upon expiration of the three year period , the
obligations of national treatment set out in Article 1102
(National Treatment) shall apply. This provision is subject to
Article 1108 (Reservations and exceptions).