Title:Annex III - Schedule of Mexico Author: White House Document-Date: 29 Sept 1993 Content-Type: text/plain; CHARSET=US-ASCII Content-Length: 8657 Annex III Schedule of Mexico Section A. Activities Reserved to the Mexican State Mexico 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 covered by Chapter Six (Energy and Basic Petrochemicals) obtained from the refining or processing of crude oil and natural gas; and basic petrochemicals. (b) Measures: Constituci n Pol tica de los Estados Unidos Mexicanos, Art culos 25, 27 y 28 Ley Reglamentaria del Art culo 27 Constitucional en el Ramo del Petr leo Ley Org nica de Petr leos Mexicanos y Organismos Subsidiarios 2. Electricity (a) Description of activities: the supply of electricity as a public service in Mexico, including, the generation, transmission, transformation, distribution and sale of electricity. (b) Measures: Constituci n Pol tica de los Estados Unidos Mexicanos, Art culos 25, 27, 28 Ley del Servicio P blico de Energ a El ctrica 3. Nuclear Power and Treatment of Radioactive Minerals (a) Description of activities: exploration, exploitation and processing of radioactive minerals, the nuclear fuel cycle, the generation of nuclear energy, the transportation and storage of nuclear waste, the use and reprocessing of nuclear fuel and the regulation of their applications for other purposes and the production of heavy water. (b) Measures: Constituci n Pol tica de los Estados Unidos Mexicanos, Art culos 25, 27, 28 Ley Reglamentaria del Art culo 27 Constitucional en Materia Nuclear 4. Satellite Communications (a) Description of activities: the establishment, operation and ownership of satellite systems and earth stations with international links. (b) Measures: Constituci n Pol tica de los Estados Unidos Mexicanos, Art culos 25, 28 Ley de V as Generales de Comunicaci n 5. Telegraph Services Measures: Constituci n Pol tica de los Estados Unidos Mexicanos, Art culos 25, 28 Ley de V as Generales de Comunicaci n 6. Radiotelegraph Services Measures: Constituci n Pol tica de los Estados Unidos Mexicanos, Art culos 25, 28 Ley de V as Generales de Comunicaci n 7. Postal Services (a) Description of activities: operation, administration and organization of first class mail. (b) Measures: Constituci n Pol tica de los Estados Unidos Mexicanos, Art culos 25, 28 Ley del Servicio Postal Mexicano 8. Railroads (a) Description of activities: 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) Measures: Constituci n Pol tica de los Estados Unidos Mexicanos, Art culos 25, 28 Ley Org nica de Ferrocarriles Nacionales de M xico 9. Issuance of Bills (currency) and Minting of Coinage Measures: Constituci n Pol tica de los Estados Unidos Mexicanos, Art culos 25, 28 Ley Org nica del Banco de M xico Ley Org nica de la Casa de Moneda de M xico Ley Monetaria de los Estados Unidos Mexicanos 10. Control, Inspection and Surveillance of Maritime and Inland Ports Measures: Ley de Navegaci n y Comercio Mar timos Ley de V as Generales de Comunicaci n 11. Control, Inspection and Surveillance of Airports and Heliports Measures: Ley de V as Generales de Comunicaci n The measures referred to are provided for transparency purposes and include any subordinate measure adopted or maintained under the authority of and consistent with such measures. 1. The activities set out in Section A are reserved to the Section B. Deregulation of Activities Reserved to the State 2. If Mexican law is amended to allow private equity investment Mexican State, and private equity investment is prohibited under participate in such activities through service contracts, Mexican Law. Where Mexico allows private investment to 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. in an activity set out in Section A, Mexico may impose enterprise engaged in activities set out in Section A, and impose derogations from Article 1102 on foreign equity investment from the initial sale, Mexico may restrict the transfer of such participation when selling an asset or ownership interest in an Where an activity was reserved to the Mexican State on Section C. Activities Formerly Reserved to the Mexican State describe them in Annex I. date of entry into force of this Agreement, Mexico may restrict January 1, 1992 and is not reserved to the Mexican State on the the initial sale of a state-owned asset or an ownership interest Mexican Constitution. For a period not to exceed three years with majority ownership by Mexican nationals, as defined by the in a state enterprise that performs that activity to enterprises restrictions on foreign investment participation notwithstanding Article 1102, and describe them in Annex I. Mexico may also asset or ownership interest to other enterprises with majority obligations of national treatment set out in Article 1102 apply. This provision is subject to Article 1108. ownership by Mexican nationals, as defined by the Mexican Constitution. On expiration of the three-year period, the