NAFTA - ANNEX I

                                  ANNEX I

1.   The Schedule of a Party sets out the reservations taken by
that Party, pursuant to Articles 1108(1) and 1206(2), with respect
to existing, non-conforming measures that derogate from an
obligation relating to:

     (a) national treatment, pursuant to Article 1102 (Investment)
 or 1202 (Services);

     (b) most-favored-nation treatment, pursuant to Article 1103
 (Investment) or 1203 (Services);

     (c) local presence, pursuant to Article 1205 (Services);

     (d) performance requirements, pursuant to Article 1106
 (Investment); or

     (e) nationality requirements for senior management or members
 of boards of directors, pursuant to Article 1107
 (Investment).

2.   Each reservation sets out the following elements (ftnt 1):

     (a) SECTOR refers to the general sector in which the
 reservation is taken;

     (b) SUB-SECTOR refers to the specific sector in which the
 reservation is taken;

     (c) INDUSTRY CLASSIFICATION refers to the activity, where
 applicable, covered by the reservation according to
 domestic industry classification codes;

     (d) TYPE OF RESERVATION specifies the obligation referred to
 in paragraph 1 for which a reservation is taken;

     (e) LEVEL OF GOVERNMENT indicates the level of government
 maintaining the measure for which the Party is taking the
 reservation;

     (f) LEGAL CITATION identifies the specific existing measures,
 where applicable, for which the reservation is taken;
 (ftnt 2)

     (g) DESCRIPTION describes the non-conforming aspects of the
 existing measures for which the reservation is taken and,
 where applicable, commitments for liberalization upon
 entry into force of this Agreement; and

     (h) DURATION sets out the period for which the reservation is
 taken and the phase-in of commitments for liberalization.

3.   In the interpretation of a reservation, all elements of the
reservation should be considered.  Where the DURATION does not
provide for liberalization, the LEGAL CITATION shall govern to the
extent of any inconsistency with any other element.  Where the
DURATION provides for liberalization upon or after entry into force
of this Agreement, the DURATION shall govern to the extent of any
inconsistency with any other element.

4.   Where a Party maintains a measure that requires that a service
provider be a citizen, permanent resident or resident of its
territory as a condition to the provision of a service in its
territory, a reservation for Articles 1202, 1203 or 1205 taken with
respect to that measure shall operate as a reservation for Articles
1102 or 1103 with respect to the effect of that measure on the
ability of the service provider to establish an investment.

5.   For purposes of this Annex:

CMAP means Clasificaci¢n Mexicana de Actividades y Productos;

concession means an authorization provided by the State to a person
to exploit a natural resource or provide a service, for which
Mexican nationals and Mexican enterprises are granted priority over
foreigners;

CPC means Central Product Classification numbers as set out in
Statistical Office of the United Nations, Statistical Papers,
Series M, No. 77,  Provisional Central Product Classification,
1991;

foreigners' exclusion clause means the express provision in an
enterprise's by-laws, stating that the enterprise shall not allow
foreigners, directly or indirectly, to become partners or
shareholders of the enterprise;

international cargo means goods that have an origin or destination
outside the territory of a Party;

Mexican enterprise means an enterprise constituted under the laws
of Mexico;

Mexican national means a national of Mexico, as defined by the
Constitution of Mexico;

person of a Party means a national or an enterprise of a Party; and

SIC means:

     (a) with respect to Canada, Standard Industrial
 Classification (SIC) numbers as set out in Statistics
 Canada, Standard Industrial Classification, fourth
 edition, 1980; and

     (b) with respect to the United States, Standard Industrial
 Classification (SIC) numbers as set out in the United
 States Office of Management and Budget, Standard
 Industrial Classification Manual, 1987.


FOOTNOTE 1:  The reservations are current as of September 5, 1992.
The three delegations understand that where a Party adopts
liberalizing measures prior to the date of entry into force of this
Agreement, such measures will be considered to be existing
measures.

FOOTNOTE 2: The three delegations are considering the need for
inclusion of language to the effect that measures set out in the
LEGAL CITATION shall be deemed to include existing administrative
decisions, interpretations and practices pursuant to the measure
cited.