Source: EURLEX
Language: en
Format: md

C 96 E/148 EN Official Journal of the European Communities 27.3.2001

Proposal for a Council Decision establishing the Community position within the EC-Mexico Joint
Council with a view to the adoption of a Decision implementing Articles 6, 9, 12(2)(b) and 50 of
the Economic Partnership, Political Coordination and Cooperation Agreement

(2001/C 96 E/08)

COM(2000) 739 final �2000/0296(CNS)

(Submitted by the Commission on 21 November 2000)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European
Community, and in particular Articles 44(1), 47(2), last
sentence, 55, 56 to 59, 71, and 80(2),

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Parliament,

Whereas:

(1) The Economic Partnership, Political Coordination and
Cooperation Agreement between the European
Community and its Member States, of the one part, and
the United Mexican States, of the other part, (hereinafter
�the Agreement�) entered into force on 1 October 2000.

(2) Article 6 of the Agreement provides that the Joint Council
shall decide on the appropriate arrangements for a
progressive and reciprocal liberalisation of trade in services.

(3) Article 9 of the Agreement provides that the Joint Council
shall adopt measures for the progressive liberalisation of
investment and related payments between the parties.

(4) Article 12 of the Agreement stipulates that the Joint
Council shall adopt measures with a view to ensure an
adequate and effective protection of intellectual property
rights.

(5) Article 50 of the Agreement provides that the Joint Council
shall establish a specific trade or trade related dispute
settlement procedure,

HAS DECIDED AS FOLLOWS:

Sole Article

The position to be taken by the Community within the Joint
Council established by the Economic Partnership, Political
Coordination and Cooperation Agreement between the
European Community and its Member States, of the one
part, and the United Mexican States, of the other part, on
the implementation of Articles 6, 9, 12(2)(b) and 50 of that
Agreement is that set out in the attached draft decision of the
Joint Council.

27.3.2001 EN Official Journal of the European Communities C 96 E/149

Decision No . . ./. . . of the Joint Council of . . .

THE JOINT COUNCIL,

Having regard to the Economic Partnership, Political Coordination and Cooperation Agreement between the European
Community and its Member States, of the one part, and the
United Mexican States, of the other part (hereinafter �the
Agreement�), and in particular Articles 6, 9, 12 and 50 in
conjunction with Article 47 thereof.

Mindful of their rights and obligations under the Marrakesh
Agreement establishing the World Trade Organisation (hereinafter �the WTO�).

Whereas:

(1) Article 4 and 6 of the Agreement provide that the Joint
Council shall decide on the arrangements for a progressive
and reciprocal liberalisation of trade in services, in
accordance with Article V of the General Agreement on
Trade in Services (hereinafter �GATS�).

(2) Article 9 of the Agreement provides that the Joint Council
shall adopt measures for the progressive liberalisation of
investment and related payments between the Parties.

(3) Article 12 of the Agreement stipulates that the Joint
Council shall adopt measures with a view to ensure an
adequate and effective protection of intellectual property
rights.

(4) Article 50 of the Agreement provides that the Joint Council
shall establish a specific trade or trade related dispute
settlement procedure.

(5) In accordance with Article 60 of the Agreement, upon
entry into force of that Agreement, the Decision 2/2000
of the Joint Council established by the Interim Agreement
on Trade and Trade-related Matters between the European
Community, of the one part, and the United Mexican
States, of the other part, is deemed to have been adopted
by the Joint Council established by the Agreement; whereas
that decision implements the objectives laid down in
Articles 5, 10, 11 and 12.2(a) of the Agreement,

HAS DECIDED AS FOLLOWS:

TITLE I

GENERAL PROVISIONS

Article 1

Scope of the Decision

The Joint Council hereby lays down the necessary
arrangements for implementing the following objectives of
the Agreement:

(a) the progressive and reciprocal liberalisation of trade in
services, in conformity with Article V of GATS;

(b) the progressive liberalisation of investment and related
payments;

(c) ensuring an adequate and effective protection of the intellectual property rights, in accordance with the highest
international standards; and

(d) establishing a dispute settlement mechanism.

TITLE II

TRADE IN SERVICES

Article 2

Coverage

1. For the purposes of this Title, trade in services is defined
as the supply of a service:

(a) from the territory of a Party into the territory of the other
Party;

(b) in the territory of a Party to the service consumer of the
other Party;

(c) by a service supplier of a Party, through commercial
presence in the territory of the other Party;

(d) by a service supplier of a Party, through presence of natural
persons in the territory of the other Party.

2. This Title applies to trade in all services sectors with the
exception of:

(a) audio-visual services.

(b) air services, including domestic and international air transportation services, whether scheduled or non-scheduled,
and related services in support of air services, other than:

(i) aircraft repair and maintenance services during which
an aircraft is withdrawn from service,

(ii) the selling and marketing of air transport services,

(iii) computer reservation system (CRS) services, and

(c) maritime cabotage.

3. Maritime transport and financial services shall be
governed by the provisions laid down in Chapters II and III,
respectively, unless otherwise specified.

4. Nothing in this Title shall be construed to impose any
obligation with respect to government procurement.

C 96 E/150 EN Official Journal of the European Communities 27.3.2001

5. The provisions of this Title shall not apply to subsidies
granted by the Parties.

CHAPTER I

GENERAL PROVISIONS

Article 3

Definitions

For purposes of this Chapter:

(a) A federal, central or subcentral government includes any
non-governmental body in the exercise of any regulatory,
administrative or other governmental authority delegated to
it by that federal, central and sub-central government.

(b) �service suppliers�of a Party means any person of a Party
that seeks to provide or provides a service.

(c) �commercial presence�means:

(i) as regards nationals, the right to set up and manage
undertakings, which they effectively control. This shall
not extend to seeking or taking employment in the
labour market or confer a right of access to the
labour market of another Party.

(ii) as regards juridical persons, the right to take up and
pursue the economic activities covered by this Chapter
by means of the setting up and management of
subsidiaries, branches or any other form of secondary
establishment.

(d) �subsidiary�means a juridical person which is effectively
controlled by another juridical person.

(e) A �Community juridical person�or a �Mexican juridical
person�means a juridical person set up in accordance
with the laws of a Member State of the Community or of
Mexico, respectively, and having its registered office, central
administration, or principal place of business in the
territory of the Community or of Mexico, respectively.

Should the juridical person have only its registered office or
central administration in the territory of the Community or
Mexico, respectively, it shall not be considered as a
Community or a Mexican juridical person, respectively,
unless its operations possess a real and continuous link
with the economy of the Community or Mexico,
respectively.

(f) A �national�means a natural person who is a national of
one of the Member States or Mexico according to their
respective national legislations.

Article 4

Market access

In those sectors and modes of supply which shall be liberalised
pursuant to the decision provided for in Article 7(3), and
subject to any reservations stipulated therein, the measures
which a Party shall not maintain or adopt are defined as:

(a) limitations on the number of services suppliers whether in
the form of numerical quotas, monopolies, exclusive service
suppliers or the requirements of an economic needs test;

(b) limitations on the total value of service transactions or
assets in the form of numerical quotas or the requirement
of an economic needs test;

(c) limitations on the total number of service operations or on
the total quantity of service output expressed in the terms
of designated numerical units in the form of quotas or the
requirement of an economic needs test;

(d) limitations on the total number of natural persons that may
be employed in a particular service sector or that a service
supplier may employ and who are necessary for, and
directly related to, the supply of a specific service in the
form of numerical quotas or a requirement of an economic
needs test;

(e) limitations on the participation of foreign capital in terms
of maximum percentage limit on foreign shareholding or
the total value of individual or aggregate foreign
investment; and

(f) measures which require specific types of legal entities or
joint ventures through which a service supplier of the other
Party may supply a service.

Article 5

Most favoured nation treatment

1. Subject to exceptions that may derive from harmonisation of regulations based on agreements concluded by a
Party with a third country providing for mutual recognition
in accordance with Article VII of GATS, treatment accorded to
services suppliers of the other Party shall be no less favourable
than that accorded to like services suppliers of any third
country.

2. Treatment granted under other agreements concluded by
one of the Parties with a third country which have been
notified under Article V of GATS shall be excluded from this
provision.

3. If a Party enters into an agreement of the type referred to
in paragraph 2, it shall afford adequate opportunity to the
other Party to negotiate the benefits granted therein.

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Article 6

National treatment

1. Each Party shall, in accordance with Article 7, grant to
services and service suppliers of the other Party, in respect of
all measures affecting the supply of services, treatment no less
favourable than that it accords to its own like services and
services suppliers.

2. A Party may meet the requirement of paragraph 1 by
according to services and service suppliers of the other Party,
either formally identical treatment or formally different
treatment to that it accords to its own like services and
service suppliers.

3. Formally identical or formally different treatment shall be
considered to be less favourable if it modifies the conditions of
competition in favour of services or service suppliers of the
Party compared to like services or service suppliers of the other
Party.

Article 7

Trade liberalisation

1. As provided for in paragraphs 2 to 4, the Parties shall
liberalise trade in services between themselves, in conformity
with Article V of GATS.

2. From the entry into force of this Decision, neither Party
shall adopt new, or more, discriminatory measures as regards
services or service suppliers of the other Party, in comparison
with the treatment accorded to its own like services or service
suppliers.

3. No later than three years following the entry into force of
this Decision, the Joint Council shall adopt a decision providing
for the elimination of substantially all remaining discrimination
between the Parties in the sectors and modes of supply covered
by this Chapter ( [1] ). That decision shall contain:

(a) a list of commitments establishing the level of liberalisation
which the Parties agree to grant each other at the end of a
transitional period of ten years from the entry into force of
this Decision.

(b) a liberalisation calendar for each Party in order to reach at
the end of the ten-year transitional period the level of
liberalisation described in subparagraph (a).

( [1] ) The Joint Council may decide to postpone the adoption of the
decision provided for in this paragraph. Should this occur, the
decision shall be adopted not later than one year after the
conclusion of the negotiations mandated by Article XIX of GATS
and in any event within a reasonable timeframe before the end of
the ten-year transitional period.

4. Except as provided for in paragraph 2, Articles 4, 5 and 6
shall become applicable in accordance with the calendar and
subject to any reservations stipulated in the Parties’ lists of
commitments provided for in paragraph 3.

5. The Joint Council may amend the liberalisation calendar
and the list of commitments established in accordance with
paragraph 3, with a view to remove or add exceptions.

Article 8

Regulatory carve-out

Each Party may regulate the supply of services in its territory,
in so far as regulations do not discriminate against services and
service suppliers of the other Party, in comparison to its own
like services and service suppliers.

Article 9

Mutual recognition

1. In principle no later than three years following the entry
into force of this Decision, the Joint Council shall establish the
necessary steps for the negotiation of agreements providing for
the mutual recognition of requirements, qualifications, licenses
and other regulations, for the purpose of the fulfilment, in
whole or in part, by service suppliers of the criteria applied
by each Party for the authorisation, licensing, operation and
certification of service suppliers and, in particular, professional
services.

2. Any such agreement shall be in conformity with the
relevant provisions of the WTO Agreement and, in particular,
Article VII of GATS.

CHAPTER II

MARITIME TRANSPORT

Article 10

International maritime transport

1. This Chapter applies to international maritime transport,
including door-to-door and intermodal transport operations
involving a sea-leg.

2. The Definitions contained in Article 3 apply to this
Chapter ( [2] ).

( [2] ) Notwithstanding Article 3(e), shipping companies established
outside the Community or Mexico and controlled by nationals of
a Member State of the Community or Mexico, respectively, shall
also be beneficiaries of the provisions of this Chapter, if their
vessels are registered in accordance with their respective legislation,
in that Member State or in Mexico and carry the flag of a Member
State or Mexico.

C 96 E/152 EN Official Journal of the European Communities 27.3.2001

3. In view of the existing levels of liberalisation between the
Parties in international maritime transport:

(a) the Parties shall continue to effectively apply the principle
of unrestricted access to the international maritime market
and traffic on a commercial and non-discriminatory basis;

(b) each Party shall continue to grant to ships operated by
service suppliers of the other Party treatment no less
favourable than that accorded to its own ships with
regard to, inter alia, access to ports, use of infrastructure
and auxiliary maritime services of the ports, as well as
related fees and charges, customs facilities and the
assignment of berths and facilities for loading and
unloading.

4. Each Party shall permit to service suppliers of the other
Party to have a commercial presence in its territory under
conditions of establishment and operation no less favourable
than those accorded to its own service suppliers or those of
any third country, whichever are the better, and this in
conformity with the legislation and regulations applicable in
each Party.

5. Paragraph 4 shall become applicable in accordance with
the calendar and subject to any reservation stipulated in the
Parties’ list of commitments provided for in Article 7(3).

CHAPTER III

FINANCIAL SERVICES

Article 11

Definitions

In accordance with the terms of the Annex on Financial
Services to the GATS and the GATS Understanding on
Commitments in Financial Services, for purposes of this
Chapter:

(a) �Financial service�means any service of a financial nature
offered by a financial service supplier of a Party. Financial
services comprise the following activities:

A. Insurance and insurance-related services

1. direct insurance (including co-insurance):

(a) life;

(b) non-life;

2. reinsurance and retrocession;

3. insurance inter-mediation, such as brokerage and
agency; and

4. services auxiliary to insurance, such as consultancy,
actuarial, risk assessment and claim settlement
services.

B. Banking and other financial services (excluding
insurance):

1. acceptance of deposits and other repayable funds
from the public;

2. lending of all types, including consumer credit,
mortgage credit, factoring and financing of
commercial transactions;

3. financial leasing;

4. all payment and money transmission services,
including credit, charge and debit cards, travellers
cheques and bankers drafts;

5. guarantees and commitments;

6. trading for own account or for account of
customers, whether on an exchange, in an overthe-counter market or otherwise, the following:

(a) money market instruments (including cheques,
bills, certificates of deposits);

(b) foreign exchange;

(c) derivative products including, but not limited to,
futures and options;

(d) exchange rate and interest rate instruments,
including products such as swaps, forward rate
agreements;

(e) transferable securities;

(f) other negotiable instruments and financial
assets, including bullion;

7. participation in issues of all kinds of securities,
including underwriting and placement as agent
(whether publicly or privately) and provision of
services related to such issues;

8. money broking;

9. asset management, such as cash or portfolio
management, all forms of collective investment
management, pension fund management, custodial,
depository and trust services;

10. settlement and clearing services for financial assets,
including securities, derivative products, and other
negotiable instruments;

27.3.2001 EN Official Journal of the European Communities C 96 E/153

11. provision and transfer of financial information, and
financial data processing and related software by
suppliers of other financial services;

12. advisory, intermediation and other auxiliary
financial services on all the activities listed in
subparagraphs (1) through (11), including credit
reference and analysis, investment and portfolio
research and advice, advice on acquisitions and on
corporate restructuring and strategy.

(b) �Financial service supplier�means any juridical person of a
Party authorised to supply financial services. The term
�financial service supplier�does not include a public entity.

(c) �New financial service�means a service of a financial nature,
including services related to existing and new products or
the manner in which a product is delivered, that is not
supplied by any financial service supplier in the territory
of a Party but which is supplied in the territory of the other
Party.

(d) �Public entity�means:

1. A government, a central bank or a monetary authority,
of a Party, or an entity owned or controlled by a Party,
that is principally engaged in carrying out governmental
functions or activities for governmental purposes, not
including an entity principally engaged in supplying
financial services on commercial terms; or

2. A private entity, performing functions normally
performed by a central bank or monetary authority,
when exercising those functions.

(e) �Commercial presence�means a juridical entity within a
Party’s territory for the supply of financial services and
includes wholly or partly owned subsidiaries, joint
ventures, partnerships, franchising operations, branches,
agencies, representative offices or other organisations.

Article 12

Establishment of financial service suppliers

1. Each Party shall allow the financial service suppliers of
the other Party to establish a commercial presence in its
territory.

2. Each Party may require a financial service supplier of the
other Party to incorporate under its own law or impose terms
and conditions on establishment that are consistent with the
other provisions of this Chapter.

3. No Party may adopt new measures as regards to the
establishment and operation of financial service suppliers of
the other Party, which are more discriminatory than those
applied on the date of entry into force of this Decision.

4. No Party shall maintain or adopt the following measures:

(a) limitations on the number of financial service suppliers
whether in the form of numerical quotas, monopolies,
exclusive financial service suppliers or the requirements
of an economic needs test;

(b) limitations on the total value of financial service transactions or assets in the form of numerical quotas or the
requirement of an economic test;

(c) limitations on the total number of service operations or on
the total quantity of service output expressed in the terms
of designated numerical units in the form of quotas or the
requirement of an economic needs test;

(d) limitations on the total number of natural persons that may
be employed in a particular financial service sector or that
a financial service supplier may employ and who are
necessary for, and directly related to, the supply of a
specific financial service in the form of numerical quotas
or a requirement of an economic needs test; and

(e) limitations on the participation of foreign capital in the
terms of maximum percentage limit on foreign shareholding or the total value of individual or aggregate
foreign investment.

Article 13

Cross-border provision of financial services

1. Each Party shall allow the cross-border provision of
financial services.

2. No Party may adopt new measures as regards to the
cross-border provision of financial services by financial
service suppliers of the other Party which are more discriminatory as compared to those applied on the date of entry into
force of this Decision.

3. Without prejudice to other means of prudential regulation of the cross-border provision of financial services, a
Party may require the registration of cross-border financial
service suppliers of the other Party.

C 96 E/154 EN Official Journal of the European Communities 27.3.2001

4. Each Party shall permit persons located in its territory to
purchase financial services from financial service suppliers of
the other Party located in the territory of that other Party. This
obligation does not require a Party to permit such suppliers to
do business or carry on commercial operations; or to solicit,
market or advertise their activities in its territory. Each Party
may define the meaning of �doing business�, �carry on
commercial operations�, �solicit�, �market�and �advertise�for
purposes of this obligation.

Article 14

National treatment

1. Each Party shall grant to the financial service suppliers of
the other Party, including those already established in its
territory on the date of entry into force of this Decision,
treatment no less favourable than that it accords to its own
like financial service suppliers with respect to the establishment, acquisition, expansion, management, conduct,
operation and sale or other disposition of commercial
operations of financial service suppliers in its territory.

2. Where a Party permits the cross-border provision of a
financial service it shall accord to the financial service suppliers
of the other Party treatment no less favourable than that it
accords to its own like financial service suppliers with
respect to the provision of such a service.

Article 15

Most favoured nation treatment

1. Each Party shall accord to financial service suppliers of
the other Party treatment no less favourable than it accords to
the like financial service suppliers of a non Party.

2. Treatment granted under other agreements concluded by
one of the Parties with a third country which have been
notified under Article V of GATS shall be excluded from this
provision.

3. If a Party enters into an agreement of the type referred to
in paragraph 2, it shall afford adequate opportunity to the
other Party to negotiate the benefits granted therein.

Article 16

Key personnel

1. No Party may require a financial service supplier of the
other Party to engage individuals of any particular nationality
as senior managerial or other key personnel.

2. No Party may require that more than a simple majority of
the board of directors of a financial service supplier of the
other Party be composed of nationals of the Party, persons
residing in the territory of the Party, or a combination thereof.

Article 17

Commitments

1. Nothing in this Chapter shall be construed to prevent a
Party to apply:

(a) any existing measure inconsistent with Articles 12 to 16
which is listed on Annex I; or

(b) an amendment to any discriminatory measure referred to in
subparagraph (a) to the extent that the amendment does
not increase the inconsistency of the measure with Articles
12 to 16, as it existed immediately before the amendment.

2. The measures listed in Annex I shall be reviewed by the
Special Committee on Financial Services established under
Article 23, with a view to propose to the Joint Council their
modification, suspension or elimination.

3. No later than three years following the entry into force of
this Decision, the Joint Council shall adopt a decision providing
for the elimination of substantially all remaining discrimination. That decision shall contain a list of commitments establishing the level of liberalisation which the Parties agree to
grant each other.

Article 18

Regulatory carve out

Each Party may regulate the supply of financial services, in so
far as regulations do not discriminate against financial service
or financial service suppliers of the other Party in comparison
to its own like financial services and financial service suppliers.

Article 19

Prudential carve out

1. Nothing in this Chapter shall be construed to prevent a
Party from adopting or maintaining reasonable measures for
prudential reasons, such as:

(a) the protection of investors, depositors, financial market
participants, policy-holders, policy-claimants, or persons
to whom a fiduciary duty is owed by a financial service
supplier;

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(b) the maintenance of the safety, soundness, integrity or
financial responsibility of financial service suppliers; or

(c) ensuring the integrity and stability of a Party’s financial
system.

2. These measures shall not be more burdensome than
necessary to achieve their aim, and shall not discriminate
against financial service suppliers of the other Party in
comparison to its own like financial service suppliers.

3. Nothing in this Chapter shall be construed to require a
Party to disclose information relating to the affairs and
accounts of individual consumers or any confidential or
proprietary information in the possession of public entities.

Article 20

Effective and transparent regulation

1. Each Party shall make its best endeavours to provide in
advance to all interested persons any measure of general
application that the Party proposes to adopt in order to
allow an opportunity for such persons to comment on the
measure. Such measure shall be provided:

(a) by means of an official publication; or

(b) in other written or electronic form.

2. Each Party’s appropriate financial authority shall make
available to interested persons its requirements for completing
applications relating to the supply of financial services.

3. On the request of an applicant, the appropriate financial
authority shall inform the applicant of the status of its
application. If such authority requires additional information
from the applicant, it shall notify the applicant without
undue delay.

4. Each Party shall make its best endeavours to ensure that
the Basle Committee’s �Core Principles for Effective Banking
Supervision�, the International Association of Insurance Supervisors’ �Key Standards for Insurance Supervision�and the International Organisation of Securities Commissions’ �Objectives
and Principles of Securities Regulation�are implemented and
applied in its territory.

5. The Parties also take note of the �Ten Key Principles for
Information Exchange�promulgated by the Finance Ministers of
the G7 Nations, and undertake to consider to what extent they
may be applied in bilateral contacts.

Article 21

New financial services

Each Party shall permit a financial service supplier of the other
Party to provide any new financial service of a type similar to
those services that the Party permits its own financial service

suppliers to provide under its domestic law in like circumstances. A Party may determine the juridical form through
which the service may be provided and may require authorisation for the provision of the service. Where such authorisation is required, a decision shall be made within a reasonable
time and the authorisation may only be refused for prudential

reasons.

Article 22

Data processing

1. Each Party shall permit a financial service supplier of the
other Party to transfer information in electronic or other form,
into and out of its territory, for data processing where such
processing is required in the ordinary course of business of
such financial service supplier.

2. As far as the transfer of personal data is concerned, each
Party shall adopt adequate safeguards to the protection of
privacy and fundamental rights, and freedom of individuals
in accordance with Article 41 of the Agreement.

Article 23

Special Committee on Financial Services

1. The Joint Council hereby establishes a Special Committee
on Financial Services. The Special Committee shall be
composed of representatives of the Parties. The principal
representative of each Party shall be an official of the Party’s
authority responsible for financial services set out in Annex II.

2. The functions of the Special Committee shall include:

(a) supervising the implementation of this Chapter;

(b) considering issues regarding financial services that are
referred to it by a Party;

(c) considering the application of measures listed by either
Party in Annex I in order to propose to the Joint Council
its modification, suspension or elimination, as appropriate;

(d) reviewing the provisions contained in this Chapter at such a
time as either of the Parties may grant a third party more
favourable access to its financial services market pursuant
to the conclusion of a regional economic integration
agreement compatible with Article V of GATS, with a
view to proposing consequent modifications to this
Chapter to the Joint Council; and

(e) considering implementation of Article 16 of the
Agreement.

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3. The Special Committee shall meet once a year on a date
and with an agenda agreed in advance by the Parties. The office
of chairman shall be held alternately. The Special Committee
shall report to the Joint Committee the results of each annual
meeting.

Article 24

Consultations

1. A Party may request consultations with the other Party
regarding any matter arising under this Chapter. The other
Party shall give sympathetic consideration to the request. The
Parties shall report the results of their consultations to the
Special Committee on Financial Services at its annual meeting.

2. Consultations under this Article shall include officials of
the authorities specified in Annex II.

3. Nothing in this Article shall be construed to require
financial authorities participating in consultations to disclose
information or take any action that would interfere with individual regulatory, supervisory, administrative or enforcement
matters.

4. Where a Party requires information for supervisory
purposes concerning a financial service supplier in the other
Party’s territory, the Party may approach the competent
financial authority in the other Party’s territory to seek the
information.

Article 25

Dispute settlement

Arbitrators appointed to panels established in accordance with
Title V for disputes on prudential issues and other financial
matters shall have the necessary expertise relevant to the
specific financial service under dispute, as well as expertise
or experience in financial services law or practice, which
may include the regulation of financial institutions.

Article 26

Specific exceptions

1. Nothing in this Chapter shall be construed to prevent a
Party, including its public entities, from exclusively conducting
or providing in its territory activities or services forming part
of a public retirement plan or statutory system of social
security, except when those activities may be carried out by
financial service suppliers in competition with public entities or
private institutions.

2. Nothing in this Chapter applies to activities conducted by
a central bank or monetary authority or by any other public
entity in pursuit of monetary or exchange rate policies.

3. Nothing in this Chapter shall be construed to prevent a
Party, including its public entities, from exclusively conducting
or providing in its territory activities or services for the
account or with the guarantee or using the financial
resources of the Party, or its public entities.

CHAPTER IV

GENERAL EXCEPTIONS

Article 27

Exceptions

1. The provisions of this Title are subject to the exceptions
contained in this Article.

2. Subject to the requirement that such measures are not
applied in a manner which would constitute a means of
arbitrary or unjustifiable discrimination between countries
where like conditions prevail, or a disguised restriction on
trade in services, nothing in this Title shall be construed to
prevent the adoption or enforcement by any Party of measures:

(a) necessary to protect public morals or to maintain public
order and public security;

(b) necessary to protect human, animal or plant life or health;

(c) necessary to secure compliance with laws or regulations
which are not inconsistent with the provisions of this
Title including those relating to:

(i) the prevention of deceptive and fraudulent practices or
to deal with the effects of a default on services

contracts;

(ii) the protection of the privacy of individuals in relation
to the processing and dissemination of personal data
and the protection of confidentiality of individual
records and accounts;

(iii) safety;

(d) inconsistent with the objective of Article 6 and 14,
provided that the difference in treatment is aimed at
ensuring the effective or equitable imposition or collection
of direct taxes in respect of services or service suppliers of
the other Party.

3. The provisions of this Title shall not apply to the Parties’
respective social security systems or to activities in the territory
of each Party, which are connected, even occasionally, with the
exercise of official authority.

27.3.2001 EN Official Journal of the European Communities C 96 E/157

4. Nothing in this Title shall prevent a Party from applying
its laws, regulations and requirements regarding entry and stay,
work, labour conditions, and establishment of natural
persons ( [1] ) provided that, in so doing, it does not apply them
in a manner as to nullify or impair the benefits accruing to the
other Party under the terms of a specific provision of this Title.

TITLE III

INVESTMENT AND RELATED PAYMENTS

Article 28

Definitions

1. For the purpose of this Title, investment made in
accordance with the laws of the Parties means direct
investment, investment in real estate and purchase and sale
of any kind of securities, as defined in the OECD Codes of
Liberalisation.

2. Payments covered by this Title are those related to an
investment.

Article 29

Payments related to investment

1. Without prejudice to Articles 30 and 31, restrictions on
payments related to investment between the Parties shall be
progressively eliminated. The Parties undertake not to
introduce any new restrictions on payments related to direct
investment from the entry into force of this Decision.

2. Restrictions on payments related to investments in the
services sector which have been liberalised in accordance
with Title II of this Decision shall be eliminated according to
the same timetable.

Article 30

Exchange rate policy and monetary policy difficulties

1. Where, in exceptional circumstances, payments related to
investment between the Parties cause, or threaten to cause,
serious difficulties for the operation of the exchange rate
policy or monetary policy of a Party, that Party may take
safeguard measures that are strictly necessary for a period
not exceeding six months. The application of safeguard
measures may be extended through their formal re-introduction.

( [1] ) In particular, a Party may require that natural persons must possess
the necessary academic qualifications and/or professional experience
specified in the territory where the service is supplied, for the sector
of activity concerned.

2. The Party adopting the safeguard measure shall inform
the other Party forthwith and present, as soon as possible, a
time schedule for their removal.

Article 31

Balance of payments difficulties

1. Where one or more Member States or Mexico is in
serious balance of payments difficulties, or under imminent
threat thereof, the Community or the Member State concerned,
or Mexico, as the case may be, may adopt restrictive measures
with regard to payments, including transfers of proceeds from
the total or partial liquidation of direct investment. Such
measures shall be equitable, non-discriminatory, in good
faith, of limited duration and may not go beyond what is
necessary to remedy the balance of payments situation.

2. The Community or the Member State concerned, or
Mexico, as the case may be, shall inform the other Party
forthwith and present, as soon as possible, a time schedule
for their removal. Such measures shall be taken in accordance
with other international obligations of the Party concerned,
including those under the WTO Agreement and the Articles
of Agreement of the International Monetary Fund.

Article 32

Transfers

The liquidation and transfer abroad of any direct investment
made in Mexico by Community residents or in the Community
by Mexican residents, and of any profits stemming therefrom,
shall not be affected by the provisions of Article 30.

Article 33

Investment promotion between the Parties

The Community and its Member States, within the scope of
their respective competences, and Mexico shall aim to promote
an attractive and stable environment for reciprocal investment.
Such promotion should take the form, in particular, of:

(a) mechanisms for information about and identification and
dissemination of investment legislation and opportunities;

(b) development of a legal framework favourable to investment
on both sides, particularly through the conclusion, where
appropriate, by the Member States of the Community and
Mexico of bilateral agreements promoting and protecting
investment and preventing double taxation;

(c) development of uniform and simplified administrative
procedures; and

(d) development of mechanisms for joint investments, in
particular with the small and medium enterprises of both
Parties.

C 96 E/158 EN Official Journal of the European Communities 27.3.2001

Article 34

International commitments on investment

The Community and its Member States, within the scope of
their respective competences, and Mexico recall their international commitments with regard to investment, and
especially the OECD Codes of Liberalisation and OECD
National Treatment Instrument.

Article 35

Review clause

With the view of the objective of progressive liberalisation of
investment, the Community and its Member States, and Mexico
affirm their commitment to review the investment legal
framework, the investment climate and the flow of investment
between their territories consistent with their commitments in
international investment agreements not later than three years
after the entry into force of this Decision.

TITLE IV

INTELLECTUAL PROPERTY

Article 36

Multilateral conventions on intellectual property

1. The Community and its Member States, on the one hand,
and Mexico on the other hand, confirm their obligations
arising from the following multilateral conventions:

(a) Agreement on Trade-related Aspects of Intellectual Property
Rights (TRIPs Agreement, 1994);

(b) Paris Convention for the Protection of Industrial Property
(Stockholm Act, 1967);

(c) Berne Convention for the Protection of Literary and Artistic
Works (Paris Act, 1971);

(d) International Convention for the Protection of Performers,
Producers of Phonograms and Broadcasting Organisations
(Rome, 1961); and

(e) Patent Cooperation Treaty (Washington, 1970, amended in
1979 and modified in 1984).

2. The Parties confirm the importance they attach to the
obligations arising from the International Convention for the
Protection of New Varieties of Plants, 1978 (1978 UPOV
Convention), or the International Convention for the Protection
of New Varieties of Plants, 1991 (1991 UPOV Convention).

3. At the entry into force of this Decision, the Member
States of the Community and Mexico will have acceded to
the Nice Agreement concerning the International Classification
of Goods and Services for the purposes of the Registration of
Marks (Geneva, 1977 and amended in 1979).

4. Within 3 years of the entry into force of this Decision the
Members States of the Community and Mexico will have
acceded to the Budapest Treaty of the International Recognition
of the Deposit of Microorganisms for the Purposes of Patent
Procedure (1977, modified in 1980).

5. The Parties shall make every effort to complete the
necessary procedures for their accession to the following multilateral conventions at the earliest possible opportunity:

(a) the WIPO Copyright Treaty (Geneva, 1996); and

(b) the WIPO Performances and Phonogram Treaty (Geneva,
1996).

TITLE V

DISPUTE SETTLEMENT

CHAPTER I

SCOPE AND COVERAGE

Article 37

Scope and coverage

1. The provisions of this Title shall apply with respect to
any matter arising from this Decision or from Articles 4, 5, 6,
7, 8, 9, 10 and 11 of the Agreement (hereinafter the �covered
legal instruments�).

2. By way of exception, the arbitration procedure laid down
in Chapter III shall not be applicable in the case of disputes
concerning Article 9(2), 31(2) last sentence, 34 and 36 of this
Decision.

CHAPTER II

CONSULTATION

Article 38

Consultation

1. The Parties shall at all times endeavour to agree on the
interpretation and application of the covered legal instruments
and shall make every attempt through cooperation and consultations to arrive to a mutually satisfactory resolution of any
matter that might affect their operation.

2. Each Party may request consultations within the Joint
Committee with respect to any matter relating to the
application or interpretation of the covered legal instruments
or any other matter that it considers might affect their
operation.

27.3.2001 EN Official Journal of the European Communities C 96 E/159

3. The Joint Committee shall convene within 30 days of
delivery of the request and shall endeavour to resolve the
dispute promptly by means of a decision. That decision shall
specify the implementing measures to be taken by the Party
concerned, and the period of time to do so.

CHAPTER III

ARBITRATION PROCEDURE

Article 39

Establishment of an arbitration panel

1. In case a Party considers that a measure applied by the
other Party violates the covered legal instruments and such
matter has not been resolved within 15 days after the Joint
Committee has convened pursuant to Article 38(3) or 45 days
after the delivery of the request for a Joint Committee meeting,
either Party may request in writing the establishment of an
arbitration panel.

2. The requesting Party shall state in the request the
measure and indicate the provisions of the covered legal
instruments that it considers relevant, and shall deliver the
request to the other Party and to the Joint Committee.

Article 40

Appointment of arbitrators

1. The requesting Party shall notify the other Party of the
appointment of an arbitrator, and propose up to 3 candidates
to serve as a chair. The other Party must then appoint a second
arbitrator within 15 days, and propose up to 3 candidates to
serve as a chair.

2. Both Parties shall endeavour to agree on the chair within
15 days after the second arbitrator has been appointed.

3. The date of establishment of the arbitration panel shall be
the date on which the chair is appointed.

4. If a Party fails to appoint its arbitrator pursuant to
paragraph 1, such arbitrator shall be selected by lot from the
candidates proposed. If the Parties are unable to agree on the
chair within the time period referred to in paragraph 2, it shall
be selected by lot within one week from the candidates
proposed.

5. If an arbitrator dies, withdraws or is removed, a
replacement shall be selected within 15 days in accordance

with the selection procedure followed to select him or her. In
such a case, any time period applicable to the arbitration panel
proceeding shall be suspended for a period beginning on the
date the arbitrator dies, withdraws or is removed and ending
on the date the replacement is selected.

Article 41

Panel reports

1. The arbitration panel should, as a general rule, submit an
initial report containing its findings and conclusions to the
Parties not later than three months from the date of establishment of the arbitration panel. In no case should it do so
later than five months from this date. Any Party may submit
written comments to the arbitration panel on its initial report
within 15 days of presentation of the report.

2. The arbitration panel shall present to the Parties a final
report within 30 days of presentation of the initial report.

3. In cases of urgency, including those involving perishable
goods, the arbitration panel shall make every effort to issue its
final report to the Parties within three months from the date of
establishment of the arbitration panel. In no case should it do
so later than four months. The arbitration panel may give a
preliminary ruling on whether a case is urgent.

4. All decisions of the arbitration panel, including the
adoption of the final report and of any preliminary ruling,
shall be taken by majority vote, each arbitrator having one
vote.

5. The complaining Party may withdraw its complaint at
any time before the final report has been issued. Such withdrawal is without prejudice to its right to introduce a new
complaint regarding the same issue at a later point in time.

Article 42

Implementation of panel reports

1. Each Party shall be bound to take the measures involved
in carrying out the final report referred to in Article 41(2).

2. The Party concerned shall inform the other Party within
30 days after the final report has been issued of its intentions
in respect of its implementation.

3. The Parties shall endeavour to agree on the specific
measures that are required for implementing the final report.

C 96 E/160 EN Official Journal of the European Communities 27.3.2001

4. The Party concerned shall promptly comply with the final
report. If it is impracticable to comply immediately, the Parties
shall endeavour to agree on a reasonable period of time to do
so. In the absence of such agreement, either Party may request
the original arbitration panel to determine the length of the
reasonable period of time, in light of the particular circumstances of the case. The ruling of the arbitration panel shall be
given within 15 days from that request.

5. The Party concerned shall notify to the other Party the
measures adopted in order to implement the final report before
the expiry of the reasonable period of time determined in
accordance with paragraph 4. Upon that notification, any of
the Parties may request the original arbitration panel to rule on
the conformity of those measures with the final report. The
ruling of the arbitration panel shall be given within 60 days
from that request.

6. If the Party concerned fails to notify the implementing
measures before the expiry of the reasonable period of time
determined in accordance with paragraph 4, or if the arbitration panel rules that the implementing measures notified
by the Party concerned are inconsistent with the final report,
such Party shall, if so requested by the complaining Party, enter
into consultations with a view to agree on a mutually
acceptable compensation. If no such agreement has been
reached within 20 days from the request, the complaining
Party shall be entitled to suspend only the application of
benefits granted under the covered legal instruments equivalent
to those affected by the measure found to violate the covered
legal instruments.

7. In considering what benefits to suspend, a complaining
Party should first seek to suspend benefits in the same sector or
sectors as that affected by the measure that the panel has found
to violate the covered legal instruments. A complaining Party
that considers it is not practicable or effective to suspend
benefits in the same sector or sectors may suspend benefits
in other sectors.

8. The complaining Party shall notify the other Party of the
benefits which it intends to suspend no later than 60 days
before the date on which the suspension is due to take
effect. Within 15 days from that notification, any of the
Parties may request the original arbitration panel to rule on
whether the benefits which the complaining Party intends to
suspend are equivalent to those affected by the measure found
to violate the covered legal instruments, and whether the
proposed suspension is in accordance with paragraphs 6 and
7. The ruling of the arbitration panel shall be given within 45
days from that request. Benefits shall not be suspended until
the arbitration panel has issued its ruling.

9. The suspension of benefits shall be temporary and shall
only be applied by the complaining Party until the measure
found to violate the covered legal instruments has been
withdrawn or amended so as to bring it into conformity

with the covered legal instruments, or the Parties have
reached agreement on a resolution of the dispute.

10. At the request of any of the Parties, the original arbitration panel shall rule on the conformity with the final report
of any implementing measures adopted after the suspension of
benefits and, in light of such ruling, whether the suspension of
benefits should be terminated or modified. The ruling of the
arbitration panel shall be given within 30 days from the date of
that request.

11. The rulings provided for in paragraphs 4, 5, 8 and 10
shall be binding.

Article 43

General provisions

1. Any time period mentioned in this Title may be extended
by mutual agreement of the Parties.

2. Unless the Parties otherwise agree, the arbitration panel
proceedings shall be conducted in accordance with the Model
Rules of Procedure set out in Annex III. The Joint Committee
may amend the Model Rules of Procedure.

3. Arbitration proceedings established under this Title will
not consider issues relating to each Party’s rights and obligations under the WTO.

4. Recourse to the dispute settlement provisions of this Title
shall be without prejudice to any possible action in the WTO
framework, including dispute settlement action. However,
where a Party has, with regard to a particular matter, instituted
a dispute settlement proceeding under either Article 39(1) of
this Title or the WTO Agreement, it shall not institute a
dispute settlement proceeding regarding the same matter
under the other forum until such time as the first proceeding
has ended. For purposes of this paragraph, dispute settlement
proceedings under the WTO Agreement are deemed to be
initiated by a Party’s request for a panel under Article 6 of
the Understanding on Rules and Procedures Governing the
Settlement of Disputes of the WTO.

TITLE VI

SPECIFIC DUTIES OF THE JOINT COMMITTEE WITH
RESPECT TO TRADE AND OTHER TRADE RELATED

MATTERS

Article 44

1. The Joint Committee shall:

(a) supervise the implementation and proper operation of this
Decision, as well as of any other decision concerning trade
and other trade related matters ( [1] );

( [1] ) The Parties understand that �trade and other trade related matters�
includes any matter arising under this Decision and Titles III
through V of the Agreement.

27.3.2001 EN Official Journal of the European Communities C 96 E/161

(b) oversee the further elaboration of the provisions of this
Decision;

(c) undertake consultations pursuant to Article 38(2) and (3);

(d) carry out any functions assigned to it under this Decision
or under any other decision concerning trade or trade
related matters;

(e) assist the Joint Council in the performance of its functions
regarding trade and other trade related matters;

(f) supervise the work of all the special committees established
under this Decision; and

(g) report annually to the Joint Council.

2. The Joint Committee may:

(a) set up any special committees or bodies to deal with
matters falling within its competence, and determine their
composition and duties, and how they shall function;

(b) meet at any time by agreement of the Parties;

(c) consider any issues regarding trade and other trade related
matters, and take appropriate action in the exercise of its
functions; and

(d) take decisions or make recommendations on trade and
other trade related matters, in accordance with Article
48(2) of the Agreement.

3. When the Joint Committee meets in order to perform any
of the tasks conferred upon it by this Decision, it shall be
composed of representatives of the members of the Council
of the European Union and of the European Commision, on
the one hand, and of representatives of the Government of
Mexico, on the other, with a responsibility for trade and
trade related matters, normally at senior civil servant level.

TITLE VII

FINAL PROVISIONS

Article 45

Entry into force

This Decision shall enter into force on the first day of the
month following that in which it is adopted by the Joint
Council.

Article 46

Annexes

The Annexes to this Decision, including the Appendixes to
those Annexes, are an integral part thereof.

C 96 E/162 EN Official Journal of the European Communities 27.3.2001

ANNEX I

(Referred to in Article 17)

PART A

COMMUNITY AND ITS MEMBER STATES

1. The application of Chapter III to the Community and its Member States is subject to the limitations on market access
and national treatment scheduled by the European Communities and its Member States in the �all sectors�section of
their GATS schedule and to those relating to the sub-sectors listed below.

2. The market access commitments in respect of modes (1) and (2) apply only to the transactions indicated in
paragraphs B.3 and B.4 of the market access section of the �Understanding on Commitments in Financial Services�
respectively.

3. Unlike foreign subsidiaries, branches established directly in a Member State by a Mexican financial institution are not,
with certain limited exceptions, subject to prudential regulations harmonised at Community level which enable such
subsidiaries to benefit from enhanced facilities to set up new establishments and to provide cross-border services
throughout the Community. Therefore, such branches receive an authorisation to operate in the territory of a
Member State under conditions equivalent to those applied to domestic financial institutions of that Member
State, and may be required to satisfy a number of specific prudential requirements such as, in the case of
banking and securities, separate capitalisation and other solvency requirements and reporting and publication of
accounts requirements or, in the case of insurance, specific guarantee and deposit requirements, a separate capitalisation, and the localisation in the Member State concerned of the assets representing the technical reserves and at
least one third of the solvency margin. Member States may apply the restrictions indicated in this schedule only with
regard to the direct establishment from a Mexican of a commercial presence or to the provision of cross-border
services from Mexico; consequently, a Member State may not apply these restrictions, including those concerning
establishment, to Mexican subsidiaries established in other Member States of the Community, unless these restrictions
can also be applied to companies or nationals of other Member States in conformity with Community Law.

|Sector or subsector|Mode of supply subject to reserve|Description of the measure|
|---|---|---|
|A. Insurance and Insurance-Related<br>Services|1. Cross border supply|A: Promotional activity and intermediation on behalf of a subsidiary not<br>established in the Community or of a branch not established in Austria<br>(except for reinsurance and retrocession) are prohibited.<br>A: Compulsory air insurance can be underwritten only by a subsidiary<br>established in the Community or by a branch established in Austria.<br>A: Higher premium tax is due for insurance contracts (except for<br>contracts on reinsurance and retrocession) which are written by a<br>subsidiary not established in the Community or by a branch not estab-<br>lished in Austria. Exception from the higher tax can be granted.<br>DK: Compulsory air transport insurance can be underwritten only by<br>firms established in the Community.<br>DK: No persons or companies (including insurance companies) may for<br>business purposes in Denmark assist in effecting direct insurance for<br>persons resident in Denmark, for Danish ships or for property in<br>Denmark, other than insurance companies licensed by Danish law or<br>by Danish competent authorities.<br>D: Compulsory air insurance policies can be underwritten only by a<br>subsidiary established in the Community or by a branch established in<br>Germany.|

27.3.2001 EN Official Journal of the European Communities C 96 E/163

|Sector or subsector|Mode of supply subject to reserve|Description of the measure|
|---|---|---|
|||D: If a foreign insurance company has established a branch in Germany, it<br>may conclude insurance contracts in Germany relating to international<br>transport only through the branch established in Germany.<br>I: Unbound for the actuarial profession.<br>FIN: Only insurers having their head office in the European Economic<br>Area or having their branch in Finland may offer insurance services as<br>referred to in sub-paragraph 3(a) of the Understanding.<br>FIN: The supply of insurance broker services is subject to a permanent<br>place of business in the European Economic Area.<br>F: Insurance of risks relating to ground transport may be carried out only<br>by insurance firms established in the Community.|
|||I: Insurance of risks relating to c.i.f. exports by residents in Italy may be<br>underwritten only by insurance firms established in the Community.<br>I: Transport insurance of goods, insurance of vehicles as such and liability<br>insurance regarding risks located in Italy may be underwritten only by<br>insurance companies established in the Community. This reservation does<br>not apply for international transport involving imports into Italy.<br>P: Air and maritime transport insurance, covering goods, aircraft, hull<br>and liability can be underwritten only by firms established in the EC; only<br>persons or companies established in the EC may act as intermediaries for<br>such insurance business in Portugal.<br>S: The supply of direct insurance is allowed only through an insurance<br>service supplier authorised in Sweden, provided that the foreign service<br>supplier and the Swedish insurance company belong to the same group<br>of companies or have an agreement of cooperation between them.|
||2. Consumption abroad|A: Promotional activity and intermediation on behalf of a subsidiary not<br>established in the Community or of a branch not established in Austria<br>(except for reinsurance and retrocession) are prohibited.<br>A: Compulsory air insurance can be underwritten only by a subsidiary<br>established in the Community or by a branch established in Austria.<br>A: Higher premium tax is due for insurance contracts (except for<br>contracts on reinsurance and retrocession) which are written by a<br>subsidiary not established in the Community or by a branch not estab-<br>lished in Austria. Exception from the higher tax can be granted.<br>DK: Compulsory air transport insurance can be underwritten only by<br>firms established in the Community.|
|||DK: No persons or companies (including insurance companies) may for<br>business purposes in Denmark assist in effecting direct insurance for<br>persons resident in Denmark, for Danish ships or for property in<br>Denmark, other than insurance companies licensed by Danish law or<br>by Danish competent authorities.<br>D: Compulsory air insurance policies can be underwritten only by a<br>subsidiary established in the Community or by a branch established in<br>Germany.|

C 96 E/164 EN Official Journal of the European Communities 27.3.2001

|Sector or subsector|Mode of supply subject to reserve|Description of the measure|
|---|---|---|
|||D: If a foreign insurance company has established a branch in Germany, it<br>may conclude insurance contracts in Germany relating to international<br>transport only through the branch established in Germany.<br>F: Insurance of risks relating to ground transport may be carried out only<br>by insurance firms established in the Community.<br>I: Insurance of risks relating to c.i.f. exports by residents in Italy may be<br>underwritten only by insurance firms established in the Community.<br>I: Transport insurance of goods, insurance of vehicles as such and liability<br>insurance regarding risks located in Italy may be underwritten only by<br>insurance companies established in the Community. This reservation does<br>not apply for international transport involving imports into Italy.<br>P: Air and maritime transport insurance, covering goods, aircraft, hull<br>and liability can be underwritten only by firms established in the EC; only<br>persons or companies established in the EC may act as intermediaries for<br>such insurance business in Portugal.|
||3. Commercial presence|A: The licence for branch offices of foreign insurers has to be denied if<br>the insurer, in the home country, does not have a legal form corre-<br>sponding or comparable to a joint stock company or a mutual<br>insurance association.<br>B: Any public bid to acquire Belgian securities made by or on behalf of a<br>person, company or institution outside the jurisdiction of one of the<br>Member States of the European Community shall be submitted to the<br>authorisation of the Minister of Finance.<br>E: Before establishing a branch or agency in Spain to provide certain<br>classes of insurance, a foreign insurer must have been authorised to<br>operate in the same classes of insurance in its country of origin for at<br>least five years.|
|||E, GR: The right of establishment does not cover the creation of represen-<br>tative offices or other permanent presence of insurance companies, except<br>where such offices are established as agencies, branches or head offices.<br>FIN: The managing director, at least one auditor and at least one half of<br>the promoters and members of the board of directors and the supervisory<br>board of an insurance company shall have their place of residence in the<br>European Economic Area, unless the Ministry of Social Affairs and Health<br>has granted an exemption.<br>FIN: Foreign insurers cannot get a licence in Finland as a branch to carry<br>on statutory social insurances (statutory pension insurance, statutory<br>accident insurance).<br>FIN: The general agent of the foreign insurance company shall have his<br>place of residence in Finland, unless the company has its head office in<br>the European Economic Area.|
|||F: The establishment of branches is subject to a special authorisation for<br>the representative of the branch.<br>I:<br>Access<br>to<br>actuarial<br>profession<br>through<br>natural<br>persons<br>only.<br>Professional associations (no incorporation) among natural persons<br>permitted.|

27.3.2001 EN Official Journal of the European Communities C 96 E/165

|Sector or subsector|Mode of supply subject to reserve|Description of the measure|
|---|---|---|
|||I: The authorisation of the establishment of branches is ultimately subject<br>to the evaluation of supervisory authorities.<br>IRL: The right of establishment does not cover the creation of represen-<br>tative offices.<br>P: Foreign companies may carry out insurance intermediation in Portugal<br>only through a company formed in accordance with the law of a<br>Community Member State.<br>P: In order to establish a branch in Portugal, foreign companies need to<br>demonstrate prior operational experience of at least five years.|
|||S: Insurance broking undertakings not incorporated in Sweden may<br>establish a commercial presence only through a branch.<br>S:<br>Non-life<br>insurance<br>undertakings<br>not<br>incorporated<br>in<br>Sweden<br>conducting business in Sweden are instead of being taxed according to<br>the net result  subject to taxation based on the premium income from<br>direct insurance operations.<br>S: A founder of an insurance company shall be a natural person resident<br>in the European Economic Area or a legal entity incorporated in the<br>European Economic Area.|
||4. Presence of natural persons|Unbound except as indicated in the horizontal section and subject to the<br>following specific limitations:<br>A: The management of a branch office must consist of two natural<br>persons resident in Austria.<br>DK: The general agent of an insurance branch will need to have resided in<br>Denmark for the last two years unless being a national of one of the<br>Member States of the Community. The Minister of Business and Industry<br>may grant exemption.<br>DK: Residency requirement for managers and the members of the board<br>of directors of a company. However, the Minister of Business and Industry<br>may grant exemption from this requirement. Exemption is granted on a<br>non-discriminatory basis.<br>E, I: Residence requirement for actuarial profession.<br>GR: A majority of the members of the board of directors of a company<br>established in Greece shall be nationals of one of the Member States of<br>the Community.|
|B. Banking and Other Financial<br>Services (excluding insurance)|1. Cross border supply<br>2. Consumption abroad|B: Establishment in Belgium is required for the provision of investment<br>advisory services.<br>IRL: The provision of investment services or investment advice requires<br>either (I) authorisation in Ireland, which normally requires that the entity<br>be incorporated or be a partnership or a sole trader, in each case with a<br>head/registered office in Ireland (authorisation may not be required in<br>certain cases, e.g. where a third country service provider has no<br>commercial presence in Ireland and the service is not provided to<br>private individuals), or (II) authorisation in another Member State in<br>accordance with the EC Investment Services Directive.<br>I: Unbound for promotori di servizi finanziari (financial salesmen).|

C 96 E/166 EN Official Journal of the European Communities 27.3.2001

|Sector or subsector|Mode of supply subject to reserve|Description of the measure|
|---|---|---|
||2. Consumption abroad<br>3. Commercial presence|D: Issues of securities denominated in Deutschmarks can be lead managed<br>only by a credit institution, subsidiary or branch, established in Germany.<br>FIN: Payments from governmental entities (expenses) shall be transmitted<br>through the Finnish Postal Giro System, which is maintained by the<br>Postipankki Ltd. Exemption from this requirement may be granted on<br>special reason by the Ministry of Finance.<br>GR: Establishment is required for the provision of custodial and<br>depository<br>services<br>involving<br>the<br>administration<br>of<br>interest<br>and<br>principal payments due on securities issued in Greece.<br>UK: Sterling issues, including privately led issues, can be lead managed<br>only by a firm established in the European Economic Area.|
||3. Commercial presence|All Member States:<br> The establishment of a specialised management company is required<br>to perform the activities of management of unit trusts and investment<br>companies (Articles 6 and 13 of UCITS Directive, 85/611/EEC).<br> Only firms having their registered office in the Community can act as<br>depositories of the assets of investment funds (Articles 8.1 and 15.1<br>of the UCITS Directive, 85/611/EEC).<br>A: Only members of the Austrian Stock Exchange may engage in<br>securities trading at the Stock Exchange.<br>A: For trading in foreign exchange and foreign currency authorisation of<br>the Austrian National Bank is required.<br>A: Mortgage bonds and municipal bonds may be issued by banks<br>specialised and authorised for this activity.<br>A: For carrying out services of pension fund management a specialised<br>company only for this activity and incorporated as a stock company in<br>Austria is required.|
|||B: Any public bid to acquire Belgian securities made by or on behalf of a<br>person, company or institution outside the jurisdiction of one of the<br>Member States of the European Community shall be submitted to the<br>authorisation of the Minister of Finance.<br>DK: Financial institutions may engage in securities trading on the<br>Copenhagen Stock Exchange only through subsidiaries incorporated in<br>Denmark.<br>FIN: At least one half of the founders, the members of the board of<br>directors, the supervisory board and the delegates, the managing<br>director, the holder of the procuration and the person entitled to sign<br>in the name of the credit institution shall have their place of residence in<br>the European Economic Area, unless the Ministry of Finance grants an<br>exemption. At least one auditor shall have his place of residence in the<br>European Economic Area.|
|||FIN: The broker (individual person) on derivative exchange shall have his<br>place of residence in the European Economic Area. Exemption from this<br>requirement may be granted under the conditions set by the Ministry of<br>Finance.|

27.3.2001 EN Official Journal of the European Communities C 96 E/167

|Sector or subsector|Mode of supply subject to reserve|Description of the measure|
|---|---|---|
|||FIN: Payments from governmental entities (expenses) shall be transmitted<br>through the Finnish Postal Giro System, which is maintained by the<br>Postipankki Ltd. Exemption from this requirement may be granted on<br>special reason by the Ministry of Finance.<br>F: In addition to French credit institutions, issues denominated in French<br>francs may be lead managed only by French subsidiaries (under French<br>law) of non-French banks which are authorised, based on sufficient means<br>and commitments in Paris of the candidate French subsidiary of a<br>non-French bank. These conditions apply to lead banks running the<br>books. A non-French bank may be, without restrictions or requirement<br>to establish, jointly-lead or co-lead manager of Eurofranc bond issue.<br>GR: Financial institutions may engage in the trading of securities listed on<br>the Athens Stock Exchange only through stock exchange firms incor-<br>porated in Greece.|
|||GR: For the establishment and operations of branches a minimum<br>amount<br>of<br>foreign<br>exchange<br>must<br>be<br>imported,<br>converted<br>into<br>drachmas and kept in Greece as long as a foreign bank continues to<br>operate in Greece:<br> Up to four (4) branches this minimum is currently equal to half of<br>the minimum amount of share capital required for a credit institution<br>to be incorporated in Greece;<br> For the operation of additional branches the minimum amount of<br>capital must be equal to the minimum share capital required for a<br>credit institution to be incorporated in Greece.<br>IRL: In the case of collective investment schemes constituted as unit trusts<br>and variable capital companies (other than undertakings for collective<br>investment in transferable securities, UCITS), the trustee/depositary and<br>management company is required to be incorporated in Ireland or in<br>another Member State of the Community. In the case of an investment<br>limited partnership, at least one general partner must be incorporated in<br>Ireland.|
|||IRL: To become a member of a stock exchange in Ireland, an entity must<br>either (I) be authorised in Ireland, which requires that it be incorporated<br>or be a partnership, with a head/registered office in Ireland, or (II) be<br>authorised in another<br>Member State in accordance<br>with the EC<br>Investment Services Directive.<br>IRL: The provision of investment services or investment advice requires<br>either (I) authorisation in Ireland, which normally requires that the entity<br>be incorporated or be a partnership or a sole trader, in each case with a<br>head/registered office in Ireland (the supervisory authority may also<br>authorise branches of third country entities), or (II) authorisation in<br>another Member State in accordance with the EC Investment Services<br>Directive.<br>I: The public offer of securities (as provided for under Article 18 of Law<br>216/74) other than shares, debt securities (including convertible debt<br>securities) can only be made by Italian limited companies, foreign<br>companies duly authorised, public bodies or companies belonging to<br>local authorities whose assigned capital is not below LIT 2 billion.<br>I: Centralised deposit, custody and administration services can be<br>provided only by the Bank of Italy for Government securities, or by<br>Monte Titoli SpA for shares, securities of a participating nature and<br>other bonds traded in a regulated market.|

C 96 E/168 EN Official Journal of the European Communities 27.3.2001

|Sector or subsector|Mode of supply subject to reserve|Description of the measure|
|---|---|---|
|||I: In the case of collective investment schemes other than harmonised<br>UCITS under the directive 85/611/EEC, the trustee/depositary is required<br>to be incorporated in Italy or in another Member State of the European<br>Community, being established through a branch in Italy. Only banks,<br>insurance companies, securities investment companies having their legal<br>head office in the European Community may carry out activity of pension<br>fund resources management. Management companies (closed-end funds<br>and real estate funds) are also required to be incorporated in Italy.<br>I: In providing the activity of door-to-door selling, intermediaries must<br>utilise authorised financial salesmen resident within the territory of a<br>Member State of the European Communities.<br>I: Clearing and settlement of securities may be conducted only by the<br>official clearing system. A company authorised by the Bank of Italy in<br>agreement with Consob could be entrusted with the activity of clearing,<br>up to the final settlement of securities.|
|||I: Representative offices of foreign intermediaries cannot carry out<br>activities aimed at providing investment services.<br>P: The establishment of non-EC banks is subject to an authorisation<br>issued, on a case-by-case basis, by the Minister of Finance. The estab-<br>lishment has to contribute to increase the national banking system’s<br>efficiency or has to produce significant effects on the internationalisation<br>of the Portuguese economy.<br>P: The services of venture capital may not be provided by branches of<br>venture capital companies having their head office in a non-EC country.<br>Broker-dealer services on the Lisbon Stock Exchange may be provided by<br>broker and dealer companies incorporated in Portugal or by branches of<br>investment firms authorised in another EC country and authorised in<br>their home country to provide those services. Broker and dealer<br>services in the Oporto Derivatives Exchange and in the OTC market<br>may not be provided by branches of non-EC broker/dealer companies.<br>Pension fund management may be provided only by companies incor-<br>porated in Portugal and by insurance companies established in Portugal<br>and authorised to take up the life insurance business.|
|||UK: Inter-dealer brokers, which are a category of financial institutions<br>dealing in Government debt, are required to be established in the<br>European Economic Area and separately capitalised.<br>S: Undertakings not incorporated in Sweden may establish a commercial<br>presence only through a branch, and in case of banks, also through a<br>representative office.<br>S: A founder of a banking company shall be a natural person resident in<br>the European Economic Area or a foreign bank. A founder of a savings<br>bank shall be a natural person resident in the European Economic Area.|

27.3.2001 EN Official Journal of the European Communities C 96 E/169

|Sector or subsector|Mode of supply subject to reserve|Description of the measure|
|---|---|---|
||4. Presence of natural persons|Unbound except as indicated in the horizontal section and subject to the<br>following specific limitations:<br>F: SociØtØs d’investissement à capital fixe: condition of nationality for the<br>president of the Board of Directors, the Directors-General and no less<br>than two thirds of the administrators, and also, when the securities firm<br>has a Supervisory Board or Council, for the members of such board or its<br>Director-General, and no less than two thirds of the members of the<br>supervisory Council.<br>GR: Credit institutions should name at least two persons who are<br>responsible for the operations of the institution. Condition of residency<br>applies to these persons.<br>I: Condition of residence within the territory of a Member State of the<br>European Communities for promotori di servizi finanziari (financial<br>salesmen).|

PART B

MEXICO

|Sector or subsector|Mode of supply subject to reserve|Description of the measure|
|---|---|---|
|FINANCIAL SERVICES<br>A. All<br>insurance<br>and<br>insurance-<br>related services<br>(a) Life,<br>accident<br>and<br>health<br>insurance<br>services<br>(CPC<br>8121)<br>(b) Non-life insurance services<br>(CPC 8129)|Establishment, cross border|Established insurance companies may carry out insurance and insurance-<br>related services. Foreign investors may hold up to 49 % of the paid-up<br>capital. Foreign investment by governments and official agencies is not<br>allowed. Effective control of the enterprise by the Mexican shareholders is<br>required. This percentage limit does not apply to investments in foreign<br>financial affiliates as such term is defined in, and subject to terms and<br>conditions under the Affiliates Section.|
|(c) Reinsurance and retrocession<br>services (CPC 81299*)|Establishment, cross border|This activity may be carried out by established insurance institutions.<br>Foreign investors may hold up to 49 % of the paid-up capital. Foreign<br>investment by governments and official agencies is not allowed. Effective<br>control of the enterprise by the Mexican shareholders is required. This<br>percentage limit does not apply to investments in foreign financial<br>affiliates as such term is defined in, and subject to terms and conditions<br>under the Affiliates Section.<br>Foreign reinsurance companies may participate in reinsurance operations.<br>According to the applicable regulations, such companies are required to<br>register with the Ministry of Finance and Public Credit (SHCP), which may<br>authorise or refuse registration.<br>Foreign reinsurance companies, which are enrolled in the register kept by<br>the SHCP, may establish representative offices in the country with the<br>prior authorisation of the SHCP. Representative offices of foreign rein-<br>surance companies, according to the applicable regulations, may not act<br>directly or through an intermediary in direct insurance operations.|

C 96 E/170 EN Official Journal of the European Communities 27.3.2001

|Sector or subsector|Mode of supply subject to reserve|Description of the measure|
|---|---|---|
|(d) Services<br>auxiliary<br>to<br>in-<br>surance such as:<br> insurance<br>broking<br>and<br>agency<br>services<br>(CPC<br>8140)|Establishment, cross border|Foreign investors may hold up to 49 % of the paid-up capital. The<br>National Foreign Investment Commission (CNIE) can authorise a greater<br>percentage. Foreign investment by governments and official agencies is<br>not allowed. Effective control of the enterprise by the Mexican share-<br>holders is required.|
|||Currently, under the insurance law, it is prohibited to contract with<br>foreign companies:<br>1. Insurance of persons when the person is located in Mexico at the time<br>the contract is celebrated;<br>2. Insurance of hulls of ships or airships and of any class of vehicles,<br>against risks proper to the maritime and transport class of insurance,<br>when these ships, airships or vehicles are registered in Mexico or are<br>property of persons resident in Mexico;<br>3. Credit insurance, when the insured is subject to to to Mexican legis-<br>lation;<br>4. Insurance against civil liability, derived from events that may occur in<br>Mexico; and<br>5. Other classes of insurance against risks that may occur in Mexican<br>territory.<br>Insurance contracted abroad by non-residents to cover their persons or<br>their vehicle risks during their temporary visit to the Mexican territory<br>are not subject to these restrictions.<br>The SHCP can make an exemption in the following cases:<br>1. Foreign insurers, with a previous authorisation from the SHCP and<br>complying with the requirements that it establishes, may enter into<br>insurance contracts in Mexican territory to cover risks that occur in<br>foreign territory in which they are authorised to provide insurance<br>services. Only in these cases, foreign insurers are exempt from the<br>restriction related to offering (soliciting) insurance in Mexico.<br>The SHCP with the previous opinion of the National Bonding and<br>Insurance Commission (CNSF), can revoke such authorisation, when<br>it is considered that the interests of the insurance customers are<br>endangered, previous hearing of the insurance company affected; and<br>2. When no authorised insurance company can or deems convenient to<br>carry out a certain proposed insurance operation, the SHCP, prior<br>verification<br>of<br>these<br>circumstances,<br>may<br>discretionary<br>grant<br>a<br>specific authorisation so that it may be contracted directly with a<br>foreign insurer or through a local insurance company.|
|B. Banking<br>and<br>other<br>financial<br>services (excluding insurance).<br>(a) Acceptance of deposits and<br>other repayable funds from<br>the public (CPC 81115-81119)|Establishment, cross border|This activity is restricted to established commercial banks. Foreign<br>investment by persons exercising governmental functions is not allowed.<br>In accordance with the applicable financial legislation, representative<br>offices of banking institutions are excluded from this activity.|

27.3.2001 EN Official Journal of the European Communities C 96 E/171

|Sector or subsector|Mode of supply subject to reserve|Description of the measure|
|---|---|---|
|(b) Lending<br>of<br>all<br>types,<br>including<br>consumer<br>credit,<br>mortgage<br>credit,<br>factoring<br>and<br>financing<br>of<br>financial<br>transactions (CPC 8113)|Establishment, cross border|Established commercial banks may carry out lending activities of all types,<br>including consumer credit, mortgage credit, credit discounting and<br>financing of commercial transactions. Foreign investment by persons<br>exercising governmental functions is not allowed.<br>In accordance with the applicable financial legislation, representative<br>offices of banking institutions are excluded from this activity.|
| Development banks<br> Credit unions|Establishment, cross border|Foreign investments in development banks and credit unions are not<br>allowed.<br>The following activities are reserved solely to Mexican development<br>banks:<br>(a) acting as custodians of securities and cash funds deposited by or in<br>the administrative or judiciary authorities, and acting as custodian of<br>goods that have been seized according to Mexican measures; and<br>(b) managing the savings funds, retirement plans and any other funds or<br>property of the personnel of the Ministry of National Defence,<br>Ministry of Navy and the Mexican armed forces, and performing<br>other financial activities pertaining to the financial resources of<br>such personnel.|
| Savings and loan<br>companies|Establishment, cross border|Foreign investment by persons exercising governmental functions is not<br>allowed.|
| Limited<br>scope<br>financial<br>institutions|Establishment, cross border|Established limited scope financial institutions may carry out only one of<br>the financing activities such as personal credit, consumer credit, mortgage<br>credit or commercial credit. Foreign investors may hold up to 49 % of<br>capital stock. Foreign investment by persons exercising governmental<br>functions is not allowed. This percentage limit does not apply to<br>investments in foreign financial affiliates as such term is defined in,<br>and subject to terms and conditions under the Affiliates Section.|
| Financial factoring<br>companies|Establishment, cross border|Established<br>financial<br>factoring companies may carry out<br>factoring<br>activities. Foreign investors may hold up to 49 % of the paid-up<br>capital.<br>Foreign<br>investment<br>by<br>persons<br>exercising<br>governmental<br>functions is not allowed. Effective control of the enterprise by the<br>Mexican shareholders is required. This percentage limit does not apply<br>to investments in foreign financial affiliates as such term is defined in,<br>and subject to terms and conditions under the Affiliates Section.|
|(c) Financial leasing services (CPC<br>8112)|Establishment, cross border|Established financial leasing companies may carry out financial leasing<br>activities. Foreign investors may hold up to 49 % of paid-up capital.<br>Foreign investment by persons exercising governmental functions is not<br>allowed. Effective control of the enterprise by the Mexican shareholders is<br>required. This percentage limit does not apply to investments in foreign<br>financial affiliates as such term is defined in, and subject to terms and<br>conditions under the Affiliates Section.|
| Commercial banks|Establishment, cross border|Established commercial banks may also carry out financial leasing<br>activities.<br>Foreign<br>investment<br>by<br>persons<br>exercising<br>governmental<br>functions is not allowed.|

C 96 E/172 EN Official Journal of the European Communities 27.3.2001

|Sector or subsector|Mode of supply subject to reserve|Description of the measure|
|---|---|---|
|(d) Trading<br>on<br>own<br>or<br>customers’<br>account<br>on<br>a<br>stock<br>exchange,<br>over-<br>the-counter or otherwise, in:<br> Money market instruments<br>(checks, bills, certificates<br>of<br>deposit,<br>etc.)<br>(CPC<br>81339**)|Establishment, cross border|Established securities firms and established securities specialists may carry<br>out this activity. Foreign investment by persons exercising governmental<br>functions is not allowed.|
| Foreign exchange (CPC<br>81333)|Establishment, cross border|Established commercial banks may carry out this activity. Foreign<br>investment by persons exercising governmental functions is not allowed.|
| Foreign exchange firms|Establishment, cross border|Established foreign exchange firms may also carry out this activity.<br>Foreign investors may hold up to 49 % of the paid-up capital. Foreign<br>investment by persons exercising functions of authority is not allowed.<br>Effective control of the enterprise by the Mexican shareholders is<br>required. This percentage limit does not apply to investments in foreign<br>financial affiliates as such term is defined in, and subject to terms and<br>conditions under the Affiliates Section.|
| Transferable securities<br>(CPC 81321*)|Establishment, cross border|Established securities firms and established securities specialists may carry<br>out this activity. Foreign investment by persons exercising governmental<br>functions is not allowed.|
| Other negotiable instru-<br>ments<br>and<br>financial<br>assets, including bullion<br>(CPC 81339**)|Establishment, cross border|Established commercial banks may carry out this activity. Foreign<br>investment by persons exercising governmental functions is not allowed.|
|(e) Participation in issues of all<br>kinds of securities, including<br>underwriting and placement<br>as agent (whether publicly<br>or<br>privately and provision<br>of services related to such<br>issues (CPC 8132)|Establishment, cross border|Established securities firms and established securities specialists may carry<br>out this activity. Foreign investment by persons exercising governmental<br>functions is not allowed.|
|(f) Money broking (CPC<br>81339**)<br> Commercial banks|Establishment, cross border|Established commercial banks may carry out this activity. Foreign<br>investment by persons exercising governmental functions is not allowed.|
|(g) Asset management, such as<br>cash<br>or<br>portfolio<br>mana-<br>gement,<br>all<br>forms<br>of<br>collective investment mana-<br>gement, pension fund mana-<br>gement, and trust services<br>(CPC 81323*)|Establishment, cross border|Established investment companies may carry out activities such as asset<br>management, cash or portfolio management and all forms of collective<br>investment management. Foreign investors may hold up to 49 % of<br>overhead capital. Foreign investment by persons exercising governmental<br>functions is not allowed. Effective control of the enterprise by the<br>Mexican shareholders is required. This percentage limit does not apply<br>to investments in foreign financial affiliates as such term is defined in,<br>and subject to terms and conditions under the Affiliates Section.|

27.3.2001 EN Official Journal of the European Communities C 96 E/173

|Sector or subsector|Mode of supply subject to reserve|Description of the measure|
|---|---|---|
| Managing companies of<br>investment companies|Establishment, cross border|Established managing companies of investment companies may carry out<br>the administration of investment companies. Foreign investors may hold<br>up to 49 % of the capital stock. Foreign investment by persons exercising<br>governmental functions is not allowed. Effective control of the enterprise<br>by the Mexican shareholders is required. This percentage limit does not<br>apply to investments in foreign financial affiliates as such term is defined<br>in, and subject to terms and conditions under the Affiliates Section.|
| Pension fund<br>management companies|Establishment, cross border|Established pension fund management companies may carry out pension<br>fund management activities. Foreign investors may hold up to 49 % of<br>the capital stock. Foreign investment by persons exercising governmental<br>functions is not allowed. Effective control of the enterprise by the<br>Mexican shareholders is required. This percentage limit does not apply<br>to investments in foreign financial affiliates as such term is defined in,<br>and subject to terms and conditions under the Affiliates Section.<br>The following activities are reserved solely to Mexican development<br>banks:<br>(a) acting as custodians of securities and cash funds deposited by or in<br>the administrative or judiciary authorities, and acting as custodian of<br>goods that have been seized according to Mexican measures; and<br>(b) managing the savings funds, retirement plans and any other funds or<br>property of the personnel of the Ministry of National Defence,<br>Ministry of Navy and the Mexican armed forces, and performing<br>other financial activities pertaining to the financial resources of<br>such personnel.|
| Commercial banks|Establishment, cross border|Established commercial banks may carry out this activity. Foreign<br>investment by persons exercising governmental functions is not allowed.|
| Securities<br>firms<br>and<br>securities specialists|Establishment, cross border|Established securities firms and established securities specialists may carry<br>out this activity. Foreign investment by persons exercising governmental<br>functions is not allowed.|
|(h) Advisory and other auxiliary<br>financial services, including<br>credit<br>reporting<br>and<br>ana-<br>lysis, investment and port-<br>folio<br>research<br>and<br>advice,<br>advice on acquisitions and<br>on<br>corporate<br>restructuring<br>and strategy (CPC 8133)|Establishment, cross border|Investment consultants may carry out activities such as investment and<br>portfolio analysis, research and advice, advice on acquisitions and on<br>corporate restructuring and strategy. Foreign investors may hold up to<br>49 per cent of the capital stock. Foreign investment by persons exercising<br>governmental functions is not allowed. Effective control of the enterprise<br>by Mexican shareholders is required.|
| Credit information<br>companies|Establishment, Cross Border|Established credit information companies (Credit Bureaus) may carry out<br>credit reporting activities. Foreign investors may hold up to 49 % of the<br>paid-up capital stock. Effective control of the enterprise by the Mexican<br>shareholders is required. The CNIE can authorise a greater percentage.<br>Foreign investment by persons exercising governmental functions is not<br>allowed.|

C 96 E/174 EN Official Journal of the European Communities 27.3.2001

|Sector or subsector|Mode of supply subject to reserve|Description of the measure|
|---|---|---|
|C. Others<br>Holding companies|Establishment, cross border|Foreign investment by persons exercising governmental functions is not<br>allowed.|
|Guarantee institutions|Establishment, cross border|Established guarantee institutions may carry out guarantee services.<br>Foreign investors may hold up to 49 % of the paid-up capital of estab-<br>lished guarantee institutions. Foreign investment by governments and<br>official agencies is not allowed. Effective control of the enterprise by<br>the Mexican shareholders is required. This percentage limit does not<br>apply to investments in foreign financial affiliates as such term is<br>defined in, and subject to terms and conditions under the Affiliates<br>Section.<br>Currently, under the guarantee law, it is prohibited to contract with<br>foreign companies guarantees to assure acts of persons that must fulfill<br>obligations in Mexican territory, except in re-guarantee operations and<br>when they are received as surety by Mexican guarantee institutions.<br>The guarantee operations celebrated in violation of the previously<br>mentioned will not produce any legal effect.<br>However, when none of the established guarantee institutions, estimates<br>convenient to practice certain proposed operations, the SHCP, previous<br>confirmation of these circumstances, can discretionally authorise the<br>person to contract the service with a foreign guarantee institution,<br>directly or through a Mexican guarantee institution.<br>It is prohibited to carry out intermediation activities in those operations<br>mentioned above, and also, in guarantee operations granted in an<br>ordinary and onerous way by a natural or legal person, different to<br>authorised guarantee institutions.|
|Re-guarantee|Establishment, cross border|This activity may be carried out through established guarantee insti-<br>tutions. Foreign investors may hold up to 49 % of the paid-up capital.<br>Foreign investment by governments and official agencies is not allowed.<br>Effective control of the enterprise by the Mexican shareholders is<br>required. This percentage limit does not apply to investments in foreign<br>financial affiliates as such term is defined in, and subject to terms and<br>conditions under the Affiliates Section.<br>Foreign<br>re-guarantee<br>companies<br>may<br>participate<br>in<br>re-guarantee<br>operations. According to the applicable regulations, these institutions<br>must register with the SHCP, which may authorise or refuse registration.|
|General deposit warehouses|Establishment, cross border|Foreign investors may hold up to 49 % of the paid-up capital of the<br>established general deposit warehouses. Foreign investment by persons<br>exercising governmental functions is not allowed. Effective control of<br>the enterprise by the Mexican shareholders is required. This percentage<br>limit does not apply to investments in foreign financial affiliates as such<br>term is defined in, and subject to terms and conditions under the<br>Affiliates Section.|

27.3.2001 EN Official Journal of the European Communities C 96 E/175

AFFILIATES SECTION

|Sector or subsector|Mode of supply subject to reserve|Description of the measure|
|---|---|---|
|Commercial banks, securities firms|Establishment, cross border|If the sum of the authorised capital of foreign financial affiliates,<br>measured as a percentage of the aggregate net capital of all financial<br>institutions of such type in Mexico, reaches the percentage set forth in<br>the chart in this paragraph for such type of institutions, then Mexico shall<br>have the right, once until 1 January 2004 to freeze such aggregate capital<br>percentage at its then existing level.<br>Commercial banks 25 %<br>Securities firms 30 %<br>If applied, such a restriction will have a duration not to exceed a period<br>of three years.<br>Until 1 January 2004, Mexico may deny a license to establish a foreign<br>financial affiliate if the sum of the authorised capital of all foreign<br>financial affiliates of the same type exceeds the applicable percentage<br>limit described in the prior chart.|
|Commercial banks|Establishment, cross border|Payments System Protection<br>1. If the sum of the authorised capital of foreign commercial bank<br>affiliates (as such term is above mentioned), measured as a percentage<br>of the aggregate capital of all commercial banks in Mexico, reaches<br>25 %, Mexico may request consultations with the other Party on the<br>potential adverse effects arising from the presence of commercial<br>banks of the other Party in the Mexican market and the possible<br>need for remedial action, including further temporary limitations on<br>market<br>participation.<br>The<br>consultations<br>shall<br>be<br>completed<br>expeditiously.<br>2. In considering the potential adverse effects, the Parties shall take into<br>account:<br>(a) the threat that the Mexican payments system may be controlled by<br>non-Mexican persons;<br>(b) the effects foreign commercial banks established in Mexico may<br>have on Mexico’s ability to conduct monetary and exchange rate<br>policy effectively; and<br>(c) the adequacy of the Financial Services Chapter in protecting the<br>Mexican payments system.|
|All financial services|Establishment, cross border|Mexico shall retain discretion to approve, on a case-by-case basis, any<br>affiliation of a commercial bank or securities firm with a commercial or<br>industrial corporation that is established in Mexico, if Mexico determines<br>that such affiliation is harmless and, in the case of commercial banks,<br>either (a) not substantial, or (b) the financial-related activities of the<br>commercial or industrial corporation account for at least 90 % of its<br>annual income worldwide, and the non-financial activities of such<br>commercial or<br>industrial corporation<br>are of a type that Mexico<br>determines to be acceptable. Affiliation with a non-resident commercial<br>or industrial corporation that is not established in Mexico will not be a<br>reason for denial of an application to establish or acquire a commercial<br>bank or securities firm in Mexico.|

C 96 E/176 EN Official Journal of the European Communities 27.3.2001

|Sector or subsector|Mode of supply subject to reserve|Description of the measure|
|---|---|---|
|All financial services|Establishment, cross border|Mexico may adopt measures that limit investors (together with its<br>affiliates) to establish no more than one institution of the same type in<br>Mexico.<br>In determining what types of operations an investor of another Party is<br>engaged in for purposes of the preceding paragraph, all types of<br>insurance shall be considered to be only one type of financial service;<br>but both life and non-life insurance operations may be conducted either<br>by a single or separate foreign financial affiliates.<br>Non-bank investors of another Party shall be permitted to establish one<br>or more limited scope financial institutions in Mexico to provide sepa-<br>rately consumer lending, commercial lending, mortgage lending or credit<br>card services on terms no less favourable than those applied to like<br>domestic firms under Mexican measures. Mexico may permit lending<br>services closely related to the principal authorised business of a limited<br>scope financial institution to be carried out by that institution. Such<br>institutions shall be provided the opportunity to raise funds in the<br>securities market for business operations subject to normal terms and<br>conditions. Mexico may restrict such limited scope financial institutions<br>from taking deposits.|
|All financial services|Establishment, cross border|Mexico may restrict any foreign financial affiliate from establishing<br>agencies, branches, or other direct or indirect subsidiaries in the<br>territory of any other country.|
|All financial services|Establishment, cross border|Mexico may adopt measures that limit eligibility to establish a foreign<br>financial affiliate in Mexico to an investor of another Party that is, directly<br>or through any of its affiliates, engaged in the same general type of<br>financial services in the territory of the other Party.<br>An investor of another Party that is authorised to establish or acquire,<br>and establishes or acquires, a commercial bank or securities firm in<br>Mexico may also establish a financial holding company in Mexico, and<br>thereby establish or acquire other types of financial institutions in<br>Mexico, under the terms of Mexican regulations.|
|Insurance|Establishment, cross border|The activities and operations of the existing Mexican governmental<br>insurance programs conducted by Aseguradora Mexicana, S.A. or Asegu-<br>radora Hidalgo, S.A. (including insurance for government employees,<br>agencies,<br>instrumentalities<br>and<br>public<br>entities)<br>are<br>excluded<br>from<br>Articles of Establishment, Cross Border and National Treatment for so<br>long as such firm is controlled by the Government of Mexico and for a<br>commercially reasonable time after such governmental control ceases.|
|All financial services|Establishment, cross border|In order to avoid impairment of the conduct of Mexico’s monetary and<br>exchange rate policies, cross-border financial service providers of another<br>Party shall not be permitted to provide financial services into the territory<br>of Mexico or to residents of Mexico, and residents of Mexico may not<br>purchase financial services from cross-border financial service providers<br>of another Party, if such transactions are denominated in Mexican pesos.|

27.3.2001 EN Official Journal of the European Communities C 96 E/177

ANNEX II

Authorities responsible for financial services (Referred to in Article 23)

PART A

FOR THE COMMUNITY AND ITS MEMBER STATES

|European Commission|DG Internal Market|200, rue de la Loi<br>B-1049 Brussels|
|---|---|---|
|Belgium|Ministry of Finance|MinistŁre des Finances<br>12, rue de la Loi<br>B-1000 Brussels|
|Denmark|Ministry of Economic<br>Affairs|Ved Stranden 8<br>DK-1061 Copenhagen K|
|Germany|Ministry of Finance|Bundesministerium für Finanzen<br>Postfach 13 08<br>D-53003 Bonn|
|France|Ministry of Economy,<br>Finance and Industry|MinistŁre de l’Øconomie, des finances et de l’industrie<br>139, rue de Bercy<br>F-75572 Paris|
|Ireland|Department of Finance|Department of Finance<br>Upper Merrion Street<br>IRL-Dublin 2|
|Italy|Ministry of Treasury|Ministero del Tesoro<br>Via XX Settembre 97<br>I-00187 Roma|
|Luxembourg|Ministry of Finance|MinistŁre des Finances<br>3, rue de la CongrØgation<br>L-2931 Luxembourg|
|Netherlands|Ministry of Finance|Treasury<br>Postbus 20201<br>NL-2500 EE Den Haag|
|Austria|Ministry of Finance|Hummelpfortgasse 4-8<br>Postfach 2<br>A-1015 Wien|
|Greece|Ministry of Finance|37, Panepistimiou Street<br>GR-10165 Athens|
|Spain|Treasury|Directora General del Tesoro y Politica Financiera<br>Paseo del Prado 6-6a Planta<br>SP-28071 Madrid|
|Portugal|Ministry of Finance|Av. Infante D. Henrique, 5<br>P-1140/009 Lisboa|
|Finland|Ministry of Finance|PO Box 286<br>FI-00171 Helsinki|
|Sweden|Ministry of Finance|Finansdepartementet<br>SE-10333 Stockholm|
|United Kingdom|H.M. Treasury|Treasury Chambers<br>Parliament Street<br>UK-London SW1P 3AG|

C 96 E/178 EN Official Journal of the European Communities 27.3.2001

PART B

FOR MEXICO, THE SECRETAR˝A DE HACIENDA Y CR�DITO P�BLICO

|Mexico|Dirección General de<br>Banca y Ahorro|Insurgentes Sur, 826 Piso P.H.<br>Col. del Valle, Deleg. Benito JuÆrez, C.P. 03100<br>MØxico, D.F.|
|---|---|---|
|Mexico|Dirección General de<br>Seguros y Valores|Insurgentes Sur, 795 Piso 6<br>Col. NÆpoles, Deleg. Benito JuÆrez, C.P. 03810<br>MØxico, D.F.|

ANNEX III

Model Rules of Procedure (Referred to in Article 43)

Definitions

1. In these rules:

�adviser�means a person retained by a party to advise or assist the Party in connection with the arbitration panel
proceeding;

�complaining Party�means any Party that requests the establishment of an arbitration panel under Chapter III of Title
V of the Decision;

�arbitration panel�means an arbitration panel established pursuant to Chapter III of Title V of the Decision;

�representative of a Party�means an employee of a government department or agency or of any other government
entity of a Party;

2. The Parties may designate a specialised entity to administer the dispute settlement proceedings.

3. Unless the Parties otherwise agree, the Parties shall meet with the arbitration panel within 15 days of the date of
establishment of the arbitration panel in order to determine matters such as:

(a) remuneration and expenses that will be paid to the arbitrators which normally shall conform to the WTO
standards;

(b) the administration of proceedings, where the Parties have not designated a specialised entity pursuant to rule 2;
and

(c) such other matters that the Parties deem appropriate.

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Qualification of arbitrators

4. Arbitrators should be selected with a view to ensuring the independence and impartiality of the members, a
sufficiently diverse background and a wide spectrum of experience. Arbitrators shall serve in their individual
capacities and not as government representatives, nor as representatives of any organisation. They shall comply
with a code of conduct established in Appendix I.

Terms of reference

5. Unless the Parties otherwise agree within 20 days from the date of the delivery of the request for the establishment
of the arbitration panel, the terms of reference shall be:

�To examine, in the light of the relevant provisions of the covered legal instruments, the matter referred to the Joint
Committee (as set out in the request for a Joint Committee meeting), and to rule on the consistency of the measures
at issue with the covered legal instruments.�

6. The Parties shall promptly deliver any agreed terms of reference to the arbitration panel.

Written submissions and other documents

7. Where the Parties have designated an entity pursuant to rule 2, a Party or the arbitration panel, respectively, shall
deliver any request, notice, written submissions or other document to that entity. An entity designated under rule 2
that receives a written submission shall forward it to the recipients by the most expeditious means practicable.

8. Where the Parties have not designated an entity pursuant to rule 2, a Party or the arbitration panel, respectively,
shall deliver any request, notice, written submission or other document in accordance with the agreement reached
under rule 3.

9. A Party shall, to the extent practicable, provide a copy of the document in magnetic format.

10. Unless otherwise agreed pursuant to rule 3 a Party shall provide a copy of each of its written submissions for the
other Party and each of the arbitrators.

11. A complaining Party shall deliver its initial written submission no later than 25 days after the date of establishment
of the arbitration panel. The Party complained against shall deliver its written counter-submission no later than 20
days after the date of delivery of the initial written submission.

12. Unless otherwise agreed pursuant to rule 3 in the case of any request, notice or other document related to the
arbitration panel proceeding that is not covered by rule 10 or 11, the Party shall deliver to the other Party and to
each of the arbitrators a copy of the document by facsimile or other means of electronic transmission.

13. Minor errors of a clerical nature in any request, notice, written submission or other document related to the
arbitration panel proceeding may be corrected by delivery of a new document clearly indicating the changes.

14. If the last day for delivery of a document falls on a legal holiday or on any other day on which the offices are closed
by order of the government or by force majeure, the document may be delivered on the next business day.

Operation of arbitration panels

15. The chair of the arbitration panel shall preside at all of its meetings. An arbitration panel may delegate to the chair
authority to make administrative and procedural decisions.

16. Except as otherwise provided in these rules, the arbitration panel may conduct its business by any means, including
by telephone, facsimile transmissions or computer links.

17. Only arbitrators may take part in the deliberations of the arbitration panel but the arbitration panel may permit
assistants, administration personnel, interpreters or translators to be present during such deliberations.

18. Where a procedural question arises that is not covered by these rules, an arbitration panel may adopt an appropriate procedure that is not inconsistent with the Decision.

C 96 E/180 EN Official Journal of the European Communities 27.3.2001

19. When the arbitration panel considers there is a need to modify any time period applicable in the proceeding or to
make any other procedural or administrative adjustment in the proceeding, it shall inform the Parties in writing of
the reasons for the modification or adjustment with an estimate of the period or adjustment needed.

Hearings

20. Where the Parties have designated an entity pursuant to rule 2, the chair shall fix the date and time of the hearing
in consultation with the Parties, the other members of the arbitration panel and such entity. That entity shall notify
in writing to the Parties of the date, time and location of the hearing.

21. Where the Parties have not designated an entity pursuant to rule 2, the chair shall fix the date and time of the
hearing in consultation with the Parties and the other members of the arbitration panel, in accordance with the
agreement reached under rule 3. The Parties shall be notified in writing of the date, time and location of the hearing
in accordance with the agreement reached under rule 3.

22. Unless the Parties otherwise agree the hearing shall be held in Brussels, where the complaining Party is Mexico, or
in Mexico City, where the complaining Party is the Community.

23. The arbitration panel may convene additional hearings if the Parties so agree.

24. All arbitrators shall be present at hearings.

25. The following persons may attend a hearing:

(a) representatives of a Party;

(b) advisers to a Party, provided that they do not address the arbitration panel and provided further that neither
they nor their employers, partners, business associates or family members have a financial or personal interest in
the proceeding;

(c) administration personnel, interpreters, translators and court reporters; and

(d) arbitrators’ assistants.

26. No later than five days before the date of a hearing, each Party shall deliver a list of the names of those persons who
will make oral arguments or presentations at the hearing on behalf of that Party and of other representatives or
advisers who will be attending the hearing.

27. The hearing shall be conducted by the arbitration panel in the following manner, ensuring that the complaining
Party and the Party complained against are afforded equal time:

Argument

(a) Argument of the complaining Party.

(b) Argument of the Party complained against.

Rebuttal argument

(a) Reply of the complaining Party.

(b) Counter-reply of the Party complained against.

28. The arbitration panel may direct questions to either Party at any time during a hearing.

29. Where the Parties have designated an entity pursuant to rule 2, such entity shall arrange for a transcript of each
hearing to be prepared and shall, as soon as possible after it is prepared, deliver a copy of the transcript to the
Parties and the arbitration panel.

30. Where the Parties have not designated an entity pursuant to rule 2, a transcript of each hearing shall be prepared in
accordance with the agreement reached under rule 3 and shall, as soon as possible after it is prepared, be delivered
to the Parties and the arbitration panel.

31. The arbitration panel may at any time during a proceeding address questions in writing to one or both Parties. The
arbitration panel shall deliver the written questions to the Party or Parties to whom the questions are addressed.

32. A Party to whom the arbitration panel addresses written questions shall deliver a copy of any written reply. Each
Party shall be given the opportunity to provide written comments on the reply within five days after the date of
delivery.

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33. Within 10 days after the date of the hearing, each Party may deliver a supplementary written submission
responding to any matter that arose during the hearing.

Rules of interpretation and burden of proof

34. Arbitration panels shall interpret the provisions of the covered legal instruments in accordance with rules of
customary international public law.

35. A Party asserting that a measure of the other Party is inconsistent with the provisions of the covered legal
instruments shall have the burden of establishing such inconsistency.

36. A Party asserting that a measure is subject to an exception under the covered legal instruments shall have the
burden of establishing that the exception applies.

Confidentiality

37. The Parties shall maintain the confidentiality of the panel’s hearings, deliberations and initial report, and all written
submissions to and communications with the arbitration panel.

Ex parte contacts

38. The arbitration panel shall not meet or contact one Party in the absence of the other Party.

39. No arbitrator may discuss an aspect of the subject matter of the proceeding with a Party or both Parties in the
absence of the other arbitrators.

Role of experts

40. On request of a Party or on its own initiative, the arbitration panel may seek information and technical advice from
any person or body that it deems appropriate, provided that the Parties so agree and subject to such terms and
conditions as the Parties may agree.

41. Where in accordance with rule 40 a request is made for a written report of an expert, any time period applicable to
the arbitration panel proceeding shall be suspended for a period beginning on the date of delivery of the request
and ending on the date the report is delivered to the arbitration panel.

Arbitration panel reports

42. Unless the Parties otherwise agree, the arbitration panel shall base its report on the submissions and arguments of
the Parties and on any information before it pursuant to rule 40.

43. After considering written comments to the initial report by the Parties, the arbitration panel, on its own initiative or
on the request of either Party, may:

(a) request the views of either Party;

(b) reconsider its report; and

(c) make any further examination that it considers appropriate.

44. Arbitrators may furnish separate opinions on matters not unanimously agreed. No arbitration panel may, either in
its initial report or its final report, disclose which arbitrators are associated with majority or minority opinions.

Cases of urgency

45. In cases of urgency, the arbitration panel shall appropriately adjust the time periods for submission of the initial
report and comments by the Parties to such report.

Translation and interpretation

46. Where the Parties have designated an entity pursuant to rule 2, a Party shall, within a reasonable period of time
before it delivers its initial written submission in an arbitration panel proceeding, advise such entity in writing of the
language in which its written and oral submissions will be made.

C 96 E/182 EN Official Journal of the European Communities 27.3.2001

47. Where the Parties have not designated an entity pursuant to rule 2, a Party shall advise in writing of the language in
which its written and oral submissions will be made, no later than at the meeting provided for in rule 3.

48. Each Party shall arrange for, and bear the costs of, the translation of its written submissions into the language
chosen by the other Party in accordance with rule 46 or 47. Upon request of a Party that has filed a submission, the
arbitration panel may suspend the proceeding for the time necessary to allow that Party to complete the translation.

49. The Parties shall arrange for the interpretation of oral submissions into the language chosen by both Parties.

50. Arbitration panel reports shall be issued in the language or languages chosen by the Parties in accordance with rule
46 or 47.

51. The costs incurred to prepare a translation of an arbitration report shall be borne equally by the Parties.

52. Any Party may provide comments on a translated version of a document that is prepared in accordance with these
rules.

Computation of time

53. Where anything under the Decision or these rules is to be done, or the arbitration panel requires anything to be
done, within a number of days after, before or of a specified date or event, the specified date or the date on which
the specified event occurs shall not be included in calculating that number of days.

54. Where, by reason of the operation of rule 14 a Party receives a document on a date other than the date on which
the same document is received by the other Party any period of time the calculation of which is dependent on such
receipt shall be calculated from the date of receipt of the last such document.

Other proceedings

55. These rules shall apply to the proceedings established under paragraphs 4, 5, 8 and 10 of Article 42 of Title V
except that:

(a) the Party making a request under paragraph 4 of Article 42 shall deliver its initial written submission within 3
days after the date the request is submitted and the responding Party shall deliver its written counter-submission
within 4 days after the date of delivery of the initial written submission;

(b) the Party making a request under paragraph 5 of Article 42 shall deliver its initial written submission within 10
days after the date the request is submitted and the responding Party shall deliver its written counter-submission
within 20 days after the date of delivery of the initial written submission;

(c) the Party making a request under paragraph 8 of Article 42 shall deliver its initial written submission within 10
days after the date the request is submitted and the responding Party shall deliver its written counter-submission
within 15 days after the date of delivery of the initial written submission; and

(d) the Party making a request under paragraph 10 of Article 42 shall deliver its initial written submission within 5
days after the date the request is submitted and the responding Party shall deliver its written counter-submission
within 10 days after the date of delivery of the initial written submission.

56. If appropriate, the arbitration panel shall fix the time limit for delivering any further written submissions, including
rebuttal written submissions, so as to provide each Party with the opportunity to make an equal number of written
submissions subject to the time limits for arbitration panel proceedings set out in the Decision and these rules.

57. Unless the Parties disagree, the arbitration panel may decide not to convene a hearing.

27.3.2001 EN Official Journal of the European Communities C 96 E/183

Appendix

Code of Conduct

Definitions

A. In this Code of Conduct,

�assistant�means a person who, under the terms of appointment of a member, conducts research or provides support
for the member;

�candidate�means an individual who is under consideration for appointment as a member of an arbitration panel
pursuant to paragraph 1 of Article 40 of Title V;

�member�means a member of an arbitration panel constituted pursuant to paragraph 1 of Article 39 of Title V;

�Party�means a Party to the Agreement;

�proceeding�, unless otherwise specified, means an arbitration panel proceeding under this Title;

�staff�, in respect of a member, means persons under the direction and control of the member, other than assistants.

B. Any reference made in this Code of Conduct to a paragraph or Title is a reference to the appropriate paragraph,
Annex or Title on Dispute Settlement under the Decision.

I. Responsibilities to the Process

Every candidate, member and former member shall avoid impropriety and the appearance of impropriety and shall
observe high standards of conduct so that the integrity and impartiality of the dispute settlement process is preserved.

II. Disclosure obligations

Introductory Note:

The governing principle of this Code of Conduct is that a candidate or member must disclose the existence of any
interest, relationship or matter that is likely to affect the candidate’s or member’s independence or impartiality or that
might reasonably create an appearance of impropriety or an apprehension of bias. An appearance of impropriety or an
apprehension of bias is created where a reasonable person, with knowledge of all the relevant circumstances that a
reasonable inquiry would disclose, would conclude that a candidate’s or member’s ability to carry out the duties with
integrity, impartiality and competence is impaired.

These disclosure obligations, however, should not be interpreted so that the burden of detailed disclosure makes it
impractical for persons in the legal or business community to serve as members, thereby depriving the Parties and
participants of the services of those who might be best qualified to serve as members. Thus, candidates and members
should not be called upon to disclose interests, relationships or matters whose bearing on their role in the proceeding
would be trivial.

Throughout the proceeding, candidates and members have a continuing obligation to disclose interests, relationships and
matters that may bear on the integrity or impartiality of the dispute settlement process.

This Code of Conduct does not determine whether or under what circumstances the Parties will disqualify a candidate or
member from being appointed to, or serving as a member of, arbitration panel or committee on the basis of disclosures
made.

A. A candidate shall disclose any interest, relationship or matter that is likely to affect the candidate’s independence or
impartiality or that might reasonably create an appearance of impropriety or an apprehension of bias in the
proceeding. To this end, a candidate shall make all reasonable efforts to become aware of any such interests,
relationships and matters.

C 96 E/184 EN Official Journal of the European Communities 27.3.2001

The candidate shall disclose such interests, relationships and matters by completing an Initial Disclosure Statement
provided by the Joint Committee and sending it to Joint Committee.

Without limiting the generality of the foregoing, candidates shall disclose the following interests, relationships and

matters:

(1) any financial interest of the candidate:

(a) in the proceeding or in its outcome; and

(b) in an administrative proceeding, a domestic court proceeding or another arbitration panel or committee
proceeding that involves issues that may be decided in the proceeding for which the candidate is under
consideration;

(2) any financial interest of the candidate’s employer, partner, business associate or family member:

(a) in the proceeding or in its outcome; and

(b) in an administrative proceeding, a domestic court proceeding or another arbitration panel or committee
proceeding that involves issues that may be decided in the proceeding for which the candidate is under
consideration;

(3) any past or existing financial, business, professional, family or social relationship with any interested parties in
the proceeding, or their counsel, or any such relationship involving a candidate’s employer, partner, business
associate or family member; and

(4) public advocacy or legal or other representation concerning an issue in dispute in the proceeding or involving
the same goods.

B. Once appointed, a member shall continue to make all reasonable efforts to become aware of any interests,
relationships or matters referred to in Section A and shall disclose them. The obligation to disclose is a continuing
duty which requires a member to disclose any such interests, relationships and matters that may arise during any
stage of the proceeding.

The member shall disclose such interests, relationships and matters by communicating them in writing to the Joint
Committee for consideration by the Parties.

III. The performance of duties by candidates and members

A. A candidate who accepts an appointment as a member shall be available to perform, and shall perform, a member’s
duties thoroughly and expeditiously throughout the course of the proceeding.

B. A member shall carry out all duties fairly and diligently.

C. A member shall comply with this Title and the applicable Model Rules of Procedure established in Annex III or any
other.

D. A member shall not deny other members the opportunity to participate in all aspects of the proceeding.

E. A member shall consider only those issues raised in the proceeding and necessary to a decision and shall not
delegate the duty to decide to any other person, except as provided in the Model Rules of Procedure established in
Annex III or other applicable rules.

F. A member shall take all reasonable steps to ensure that the member’s assistant and staff comply with Parts I, II and
VI of this Code of Conduct.

G. A member shall not engage in ex parte contacts concerning the proceeding.

H. A candidate or member shall not communicate matters concerning actual or potential violations of this Code of
Conduct unless the communication is to the Joint Committee or is necessary to ascertain whether that candidate or
member has violated or may violate the Code.

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IV. Independence and impartiality of members

A. A member shall be independent and impartial. A member shall act in a fair manner and shall avoid creating an
appearance of impropriety or an apprehension of bias.

B. A member shall not be influenced by self-interest, outside pressure, political considerations, public clamour, loyalty
to a Party or fear of criticism.

C. A member shall not, directly or indirectly, incur any obligation or accept any benefit that would in any way interfere,
or appear to interfere, with the proper performance of the member’s duties.

D. A member shall not use the member’s position on the arbitration panel or committee to advance any personal or
private interests. A member shall avoid actions that may create the impression that others are in a special position to
influence the member. A member shall make every effort to prevent or discourage others from representing
themselves as being in such a position.

E. A member shall not allow past or existing financial, business, professional, family or social relationships or responsibilities to influence the member’s conduct or judgment.

F. A member shall avoid entering into any relationship, or acquiring any financial interest, that is likely to affect the
member’s impartiality or that might reasonably create an appearance of impropriety or an apprehension of bias.

V. Duties in certain situations

A former member shall avoid actions that may create the appearance that the member was biased in carrying out the
member’s duties or would benefit from the decision of the arbitration panel or committee.

VI. Maintainance of confidentiality

A. A member or former member shall not at any time disclose or use any non-public information concerning the
proceeding or acquired during the proceeding except for the purposes of the proceeding and shall not, in any case,
disclose or use any such information to gain personal advantage or advantage for others or to affect adversely the
interest of another.

B. A member shall not disclose an arbitration panel report issued under this Title prior to its publication by the Joint
Committee. A member or former member shall not at any time disclose which members are associated with
majority or minority opinions in a proceeding under this Title.

C. A member or former member shall not at any time disclose the deliberations of an arbitration panel or committee,
or any member’s view, except as required by law.

VII. Responsibilities of assistants and staff

Parts I (Responsibilities to the Process), II (Disclosure obligations) and VI (Maintenance of confidentiality) of this Code of
Conduct apply also to assistants and staff.

C 96 E/186 EN Official Journal of the European Communities 27.3.2001

Joint Declaration I alternative dispute resolution

1. The Parties shall, to the maximum extent possible, encourage, and facilitate the use of arbitration and
other means of alternative dispute resolution of the settlement of international commercial disputes
between private parties in the free trade area.

2. The Parties confirm the importance they attach to the 1958 United Nations Convention on the
Recognition and Enforcement of Foreign Arbitral Awards.

Joint Declaration II by the European Community and Mexico on co-operation in agriculture and
the rural sector (Article 21 of the Agreement)

The Parties agree that the promotion of development and co-operation in the agricultural sector under
Article 21 of the Economic Partnership, Political Coordination and Cooperation Agreement between the
European Community and its Member States, of the one part, and the United Mexican States, of the other
part, will include:

(a) animal welfare;

(b) food safety;

(c) development of human resources;

(d) statistics and information systems;

(e) producer’s organisation;

(f) scientific and technical research;

(g) market development.