Title:Annex VII -- Schedule of Canada
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:6979

  
 
 
 
 
 
                                                      Annex VII(A) - Canada                                           
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                                       Annex VII 
                                   Schedule of Canada 
                                       Section A 
 
 
            Sector:             Financial Services 
 
            Sub-Sector:         Insurance 
 
            Industrial 
            Classification: 
 
            Type of             Article 1404 (Cross-Border Trade) 
            Reservation: 
 
            Level of            Federal 
            Government: 
            Measures:           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. 
 
            Phase-Out:          None 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                        VII-C-1  
 
 
 
 
 
 
 
  
 
 
 
 
 
                                                      Annex VII(B) - Canada                                           
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                                       Section B 
 
 
            1.   Canada reserves the right to adopt any measure relating to 
            cross-border trade in securities services that derogates from 
            Article 1404(1) or, with respect to the United States, that 
            derogates from Article 1406. 
 
            2.   For purposes of restrictions that limit foreign ownership 
            of Canadian-controlled financial institutions, and for purposes 
            of restrictions on total domestic assets of foreign bank 
            subsidiaries in Canada, Canada reserves the right to adopt or 
            maintain measures that require an enterprise of another Party 
            be controlled by one or more residents of the other Party in 
            order to be entitled to the benefits of this Chapter.  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 50 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 50 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 is or 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; 
 
 
                                        VII-C-2  
 
 
 
 
 
 
 
  
 
 
 
 
 
                                                      Annex VII(B) - Canada                                           
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                 (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. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                        VII-C-3  
 
 
 
 
 
 
 
  
 
 
 
 
 
                                                        Annex VII(C)-Canada                                           
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                                       Section C 
 
 
            1.   For purposes of restrictions that limit foreign ownership 
            of Canadian-controlled financial institutions and for purposes 
            of limitations on total domestic assets of foreign bank 
            subsidiaries in Canada, Canada shall 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.  
 
            2.   Canada shall 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. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                        VII-C-4