NAFTA - ANNEX VII Schedule of Canada

                                 ANNEX VII

                                  PART A

                            Schedule of Canada


SECTOR: Financial Services

SUB-SECTOR: Insurance

TYPE OF RESERVATION: Article 1404 (Cross-Border Trade)

MEASURE: Limitation on purchase of reinsurance
	 from non-resident reinsurers

LEVEL OF GOVERNMENT: Federal

LEGAL CITATION: The Insurance Companies Act; S.C. 1991, c.47;
		Reinsurance (Canadian Companies)
		Regulations; SOR/92-298; Reinsurance
		(Foreign Companies) Regulations; SOR/92-596.

DESCRIPTION: The purchase of reinsurance services by a
Canadian insurer, other than a life insurer or a reinsurer, from a non-
resident reinsurer is limited to no more than 25 percent of the risks
undertaken by the insurer purchasing the reinsurance.

DURATION: Indeterminate

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                                 ANNEX VII

                                  PART A

                            Schedule of Canada


     Canada shall set out any existing non-conforming measure
maintained at the provincial level by the date of entry into force
of this Agreement.

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                                 ANNEX VII


                                  PART B


                            Schedule of Canada


     Canada reserves the right to derogate from Article 1405(1) for
the securities sector.  With respect to this Article, Canada
reserves the right to adopt and maintain new measures affecting
cross-border trade in securities services that are more restrictive
than such measures existing on the entry into force of this
Agreement.

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                                 ANNEX VII


                                  PART C

                            Schedule of Canada




     For the purposes of restrictions that limit foreign ownership
of Canadian-controlled financial institutions and for the purposes
of limitations on total domestic assets of foreign bank
subsidiaries in Canada, Canada commits to give to Mexico the same
treatment that Canada gives under the Bank Act, the Insurance
Companies Act (Canada), the Trust and Loan Companies Act (Canada),
and the Investment Companies Act, to United States residents and to
institutions controlled by United States residents.

     Canada commits to exempt foreign bank subsidiaries in Canada
controlled by Mexican residents from the requirement to obtain
approval of the Minister of Finance prior to opening branches
within Canada in the same manner as it exempts foreign bank
subsidiaries in Canada controlled by United States residents.

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                                 ANNEX VII


                                  PART D

                            Schedule of Canada



     For the purposes of Article 1413(2), Canada designates the
Department of Finance of Canada as its governmental agency
responsible for financial services.

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                                 ANNEX VII


                                  PART E

                            Schedule of Canada



     For the purposes of restrictions that limit foreign ownership
of Canadian-controlled financial institutions and for the purposes
of restrictions on total domestic assets of foreign bank
subsidiaries in Canada, an enterprise of another Party, to be
considered an enterprise of such other Party must meet the terms
and conditions of being controlled by one or more residents of the
other Party.  For these purposes:

     (a) an enterprise controlled by one or more residents of
 another Party means controlled, directly or indirectly by
 such residents;

     (b) an enterprise that is a body corporate is controlled by
 one or more persons if

     (i) securities of the enterprise to which are attached
 more than fifty percent of the votes that may be
 cast to elect directors of the enterprise are
 beneficially owned by the person or persons and the
 votes attached to those shares are sufficient, if
 exercised, to elect a majority of the directors of
 the enterprise, and

     (ii) the person or persons has or have, directly or
 indirectly, control in fact of the enterprise,

     (c) an enterprise that is an unincorporated entity is
 controlled by one or more persons if

     (i) more than fifty percent of ownership interests,
 however designated, into which the enterprise is
 divided is beneficially owned by the person or
 persons and the person or persons are able to
 direct the business and affairs of the enterprise,
 and

     (ii) the person or persons has or have, directly or
 indirectly, control in fact of the enterprise,

     (d) a limited partnership is controlled by the general partner;

     (e) ordinarily resident in a country generally means
 sojourning in that country for a period of, or periods
 the aggregate of which is, 183 days or more during the
 relevant year; and

     (f) a person ordinarily resident in another Party means;

     (i) in the case of an enterprise, an enterprise legally
 constituted or organized under the laws of that
 Party and controlled, directly or indirectly, by
 one or more individuals of that Party described in
 clause (ii), and

     (ii) in the case of an individual, an individual who is
 ordinarily resident in the territory of that Party.