(e) actions to address any related matter.
Article 1022: Rectifications or Modifications
1. A Party may make modifications to its coverage under this Chapter only in exceptional circumstances.
2. Where a Party makes modifications to its coverage under this Chapter, the Party shall:
(a) notify the other Parties and its Section of theSecretariat of the modification;
(b) reflect the change in its schedule of the appropriateAnnex; and
(c) propose to the other Parties appropriate compensatory adjustments to its coverage in order to maintain a comparable level of coverage as existed prior to the modification.
The other Parties shall consider whether any proposed adjustment made pursuant to subparagraph (c) is adequate to maintain a comparable level of the mutually agreed coverage under this Chapter. Where any Party does not agree that the proposed adjustment is sufficient, it may have recourse to dispute settlement procedures under Chapter Twenty (Institutional Arrangements and Dispute Settlement Procedures).
3. Notwithstanding paragraphs 1 and 2, a Party may make rectifications of a purely formal nature and minor amendments to its Annexes 1002.1 through 1002.7, provided that it notifies such rectifications to the other Parties and its Section of the Secretariat, and any other Party does not object to such proposed rectification within 30 days. In such cases, subparagraph 2(c) shall not apply. If a Party does object that the proposed rectification would result in a substantive change in the balance of coverage under this Chapter, it may have recourse to dispute settlement procedures under Chapter Twenty (Institutional Arrangements and Dispute Settlement Procedures).
4. Notwithstanding any other provision of this Chapter, a Party may undertake legitimate reorganizations of its government procurement entities covered by this Chapter, including programs through which the procurement of such entities is decentralized or the corresponding government functions cease to be performed by any government entity, whether or not subject to this Chapter. In such cases, subparagraph 2(c) shall not apply. No Party shall undertake such reorganizations or programs to avoid the obligations of this Chapter. If a Party objects to the withdrawal on the grounds that the functions continue to be performed by a government entity, that Party may have recourse to dispute settlement procedures under Chapter Twenty (Institutional Arrangements and Dispute Settlement Procedures).
Article 1023: Divestiture of Entities
1. Nothing in this Chapter shall be construed to prevent a Party from divesting an entity subject to the obligations of this Chapter.
2. If, upon the public offering of shares of an entity listed in Annex 1002.3 (Government Enterprises), or through other methods, such entity is no longer subject to federal government control, the respective Party may delete the entity from Annex 1002.3 (Government Enterprises), and withdraw the entity from the obligations of the Chapter, upon notification to the other Parties.
3. If a Party objects to the withdrawal on the grounds that the entity remains subject to federal government control, that Party may have recourse to dispute settlement procedures under Chapter Twenty (Institutional Arrangements and Dispute Settlement Procedures).
Article 1024: Further Negotiations
1. The Parties shall commence further negotiations no later than December 31, 1998, with a view towards the substantial liberalization of their respective procurement markets. The Parties recognize that such liberalization would ensure more competitive opportunities for all suppliers of the Parties in their respective procurement markets.
2. The Parties will review all features of government procurement practices for the purposes of:
(a) assessing the workings of the procurement system;
(b) seeking to expand the coverage of this Chapter;
(c) including within the obligations of this Chapter
(i) government enterprises, and
(ii) legislated and administrative exceptions; and
(d) reviewing thresholds.
3. Prior to the review specified in paragraph 2, the Parties will endeavor to consult with their state and provincial governments with a view to obtaining commitments, on a voluntary and reciprocal basis, to include within the obligations of this Chapter procurement by state and provincial government entities and enterprises.
4. If the negotiations pursuant to Article 96B of the GATT Agreement on Government Procurement (the Code) are completed prior to the new review specified in paragraph 2, the Parties shall:
(a) immediately begin consultations with their state and provincial governments with a view to obtaining commitments, on a voluntary and reciprocal basis, to include within the obligations of this Chapter procurement by state and provincial government entities and enterprises; and
(b) increase the obligations and coverage of this Chapter to a level at least commensurate with that of the Code.
5. The Parties shall undertake further negotiations no later than December 31, 1998, on the subject of electronic transmission of tender information with a view to exploring the feasibility of amending this Chapter to permit electronic transmission as an additional or alternate means of publication.
Article 1025: Definitions
For purposes of this Chapter:
construction services contract means a contract which has as its objective the realization by whatever means of civil or building works, as specified in the Appendix of Annex 1002.5 (Construction Services);
entity means an entity listed in Annexes 1002.1 (Federal Government Entities), Annex 1002.2 (State and Provincial Government Entities) or Annex 1002.3 (Government Enterprises) to this Chapter;
offsets means conditions imposed or considered by an entity prior to or in the course of its procurement process that encourage local development or improve its Party's balance of payments accounts, and can involve requirements of local content, licensing of technology, investment, counter-trade or similar requirements.
services includes construction services contracts, unless otherwise specified;
supplier means a person that has provided or could provide goods or services in response to an entity's call for tender; and
tendering procedures means:
(a) open tendering procedures, being those procedures under which all interested suppliers may submit a tender;
(b) selective tendering procedures, being those procedures under which, consistent with Article 1011 (3) (Selective Tendering Procedures), those suppliers invited to do so by an entity may submit a tender; and
(c) limited tendering procedures, being those procedureswhere an entity contacts suppliers individually, only inthe circumstances and under the conditions specified inArticle 1016 (Limited Tendering).ANNEX 1002.1
Federal Government Entities
Schedule of Canada
1. Department of Agriculture 2. Department of Communications 3. Department of Consumer and Corporate Affairs 4. Department of Employment and Immigration 5. Immigration and Refugee Board 6. Canada Employment and Immigration Commission 7. Department of Energy, Mines and Resources 8. Atomic Energy Control Board 9. National Energy Board 10. Department of the Environment 11. Department of External Affairs 12. Canadian International Development Agency (on its own account) 13. Department of Finance 14. Office of the Superintendent of Financial Institutions 15. Canadian International Trade Tribunal 16. Municipal Development and Loan Board 17. Department of Fisheries and Oceans 18. Department of Forestry 19. Department of Indian Affairs and Northern Development 20. Department of Industry, Science and Technology 21. Science Council of Canada 22. National Research Council of Canada 23. Natural Sciences and Engineering Research Council of Canada 24. Department of Justice 25. Canadian Human Rights Commission 26. Statute Revision Commission 27. Supreme Court of Canada 28. Department of Labour 29. Canada Labour Relations Board 30. Department of National Health and Welfare 31. Medical Research Council 32. Department of National Revenue 33. Department of Public Works 34. Department of Secretary of State of Canada 35. Social Sciences and Humanities Research Council 36. Office of the Co-ordinator, Status of Women 37. Public Service Commission 38. Department of the Solicitor General 39. Correctional Service of Canada 40. National Parole Board 41. Department of Supply and Services (on its own account) 42. Canadian General Standards Board 43. Department of Transport (Pursuant to Article 1018 the national security considerations applicable to the Department of National Defence are equally applicable to the Canadian Coast Guard.) 44. Secretariat and the Office of the Controller General 45. Department of Veterans Affairs 46. Veterans Land Administration 47. Department of Western Economic Diversification 48. Atlantic Canada Opportunities Agency 49. Auditor General of Canada 50. Federal Office of Regional Development (Quebec) 51. Canadian Centre for Management Development 52. Canadian Radio-television and Telecommunications Commission 53. Canadian Sentencing Commission 54. Civil Aviation Tribunal 55. Commission of Inquiry into the Air Ontario Crash at Dryden, Ontario 56. Commission of Inquiry into the Use of Drugs and Banned Practices Intended to Increase Athletic Performance 57. Commissioner for Federal Judicial Affairs 58. Competition Tribunal Registry 59. Copyright Board 60. Emergency Preparedness Canada 61. Federal Court of Canada 62. Grain Transportation Agency 63. Hazardous Materials Information Review Commission 64. Information and Privacy Commissioners 65. Investment Canada 66. Multiculturalism and Citizenship 67. The National Archives of Canada 68. National Farm Products Marketing Council 69. The National Library 70. National Transportation Agency 71. Northern Pipeline Agency 72. Patented Medicine Prices Review Board 73. Petroleum Monitoring Agency 74. Privy Council Office 75. Canadian Intergovernmental Conference Secretariat 76. Commissioner of Official Languages 77. Economic Council of Canada 78. Public Service Staff Relations Office 79. Office of the Secretary to the Governor General 80. Office of the Chief Electoral Officer 81. Federal Provincial Relations Office 82. Procurement Review Board 83. Royal Commission on Electoral Reform and Party Financing 84. Royal Commission on National Passenger Transportation 85. Royal Commission on New Reproductive Technologies 86. Royal Commission on the Future of the Toronto Waterfront 87. Statistics Canada 88. Tax Court of Canada, Registry of the 89. Agricultural Stabilization Board 90. Canadian Aviation Safety Board 91. Canadian Centre for Occupational Health and Safety 92. Canadian Transportation Accident Investigation and Safety Board 93. Director of Soldier Settlement 94. Director, The Veterans' Land Act 95. Fisheries Prices Support Board 96. National Battlefields Commission 97. Royal Canadian Mounted Police 98. Royal Canadian Mounted Police External Review Committee 99. Royal Canadian Mounted Police Public Complaints Commission 100. Department of National Defence
The following goods purchased by the Department of NationalDefence and the Royal Canadian Mounted Police are included inthe coverage of this Chapter, subject to the provisions ofArticle 1018(1) (Exceptions).
(Numbers refer to the Federal Supply Classification code)
22. Railway equipment23. Motor vehicles, trailers and cycles (except buses in2310, military trucks and trailers in 2320 and 2330 andtracked combat, assault and tactical vehicles in 2350)24. Tractors25. Vehicular equipment components26. Tires and tubes29. Engine accessories30. Mechanical power transmission equipment32. Woodworking machinery and equipment34. Metal working equipment35. Service and trade equipment36. Special industry machinery37. Agricultural machinery and equipment38. Construction, mining, excavating and highway maintenanceequipment39. Materials handling equipment40. Rope, cable, chain and fittings41. Refrigeration and air conditioning equipment42. Fire fighting, rescue and safety equipment (except 4220Marine Life-saving and diving equipment, 4230Decontaminating and impregnating equipment)43. Pumps and compressors44. Furnace, steam plant, drying equipment and nuclearreactors45. Plumbing, heating and sanitation equipment46. Water purification and sewage treatment equipment47. Pipe, tubing, hose and fittings48. Valves49. Maintenance and repair shop equipment52. Measuring tools53. Hardware and abrasives54. Prefabricated structures and scaffolding55. Lumber, millwork, plywood and veneer56. Construction and building materials61. Electric wire and power and distribution equipment62. Lighting fixtures and lamps63. Alarm and signal systems65. Medical, dental and veterinary equipment and supplies66. Instruments and laboratory equipment (except 6615:Automatic pilot mechanisms and airborne Gyro components6665: Hazard-detecting instruments and apparatus)67. Photographic equipment68. Chemicals and chemical products69. Training aids and devices70. General purpose automatic data processing equipment,software, supplies and support equipment (except 7010ADPE configurations)71. Furniture72. Household and commercial furnishings and appliances73. Food preparation and serving equipment74. Office machines, text processing system and visiblerecord equipment75. Office supplies and devices76. Books, maps and other publications (except 7650 drawingsand specifications)77. Musical instruments, phonographs and home-type radios78. Recreational and athletic equipment79. Cleaning equipment and supplies80. Brushes, paints, sealers and adhesives81. Containers, packaging and packing supplies85. Toiletries87. Agricultural supplies88. Live animals91. Fuels, lubricants, oils and waxes93. Non-metallic fabricated materials94. Non-metallic crude materials96. Ores, minerals and their primary products99. Miscellaneous
Notes:
1. Notwithstanding anything in this Annex, this Chapter does not apply to procurements in respect of:
(a) the Departments of Transport Canada, Communications Canada and Fisheries and Oceans respecting FSCs 70 (automatic data processing equipment, software supplies and support equipment), 74 (office machines, text processing systems and visible record equipment) and 36 (special industry machinery); and
(b) agricultural products made in furtherance of agricultural support programs or human feeding programs.
2. The General Notes for Canada as set out in Annex 1002.7 apply to this Annex.
=============================================================================ANNEX 1002.1
Schedule of Mexico
1. Secretar¡a de Gobernaci¢n- Centro Nacional de Estudios Municipales- Comisi¢n Calificadora de Publicaciones y RevistasIlustradas- Consejo Nacional de Poblaci¢n- Archivo General de la Naci¢n- Instituto Nacional de Estudios Hist¢ricos de laRevoluci¢n Mexicana- Patronato de Asistencia para la Reincorporaci¢n Social- Centro Nacional de Prevenci¢n de Desastres- Consejo Nacional de Radio y Televisi¢n- Comisi¢n Mexicana de Ayuda a Refugiados
2. Secretar¡a de Relaciones Exteriores- Secci¢n Mexicana de la Comisi¢n Intercional de L¡mites yAguas Mxico-EEUU- Secci¢n Mexicana de la Comisi¢n Internacional de L¡mitesy Aguas Mxico-Guatemala
3. Secretar¡a de Hacienda y Crdito P£blico- Comisi¢n Nacional Bancaria- Comisi¢n Nacional de Valores- Comisi¢n Nacional de Seguros y Fianzas- Instituto Nacional de Estadistica , Geograf¡a eInform tica
4. Secretar¡a de Agricultura y Recursos Hidraulicos- Instituto Mexicano de Tecnolog¡a del Agua- Instituto Nacional de Investigaciones Forestales yAgropecuarias- Apoyos a Servicios a la Comercializaci¢n Agropecuaria,Aserca
5. Secretar¡a de Comunicaciones y Transportes (including theInstituto Mexicano de Comunicaciones and the InstitutoMexicano de Transporte)- Comisi¢n Nacional Coordinadora de Puertos
6. Secretar¡a de Comercio y Fomento Industrial
7. Secretar¡a de Educaci¢n P£blica- Instituto Nacional de Antropolog¡a e Historia- Instituto Nacional de Bellas Artes y Literatura- Radio Educaci¢n- Centro de Ingenier¡a y Desarrollo Industrial- Consejo Nacional para la Cultura y las Artes- Comisi¢n Nacional del Deporte
8. Secretar¡a de Salud- Administraci¢n del Patrimonio de la Beneficencia P£blica- Centro Nacional de la Transfusi¢n Sanguinea- Gerencia General de Farmacias- Gerencia General de Biol¢gicos y Reactivos- Consejo Interno del Centro de Obras y Equipamiento enSalud- Instituto de la Comunicaci¢n Humana Dr. Andrs BustamanteGurr¡a- Instituto Nacional de Medicina de la Rehabilitaci¢n- Instituto Nacional de Ortopedia- Consejo Nacional para la Prevenci¢n y Control delS¡ndrome de la Inmunodeficiencia Adquirida, Conasida
9. Secretar¡a del Trabajo y Previsi¢n Social- Procuradur¡a Federal de la Defensa del Trabajo- Unidad Coordinadora del Empleo, Capacitaci¢n yAdiestramiento
10. Secretar¡a de la Reforma Agraria- Instituto de Capacitaci¢n Agraria
11. Secretar¡a de Pesca- Instituto Nacional de la Pesca
12. Procuradur¡a General de la Rep£blica
13. Secretar¡a de Energia Minas e Industria Paraestatal- Comisi¢n Nacional de Seguridad Nuclear y Salvaguardias- Centro de Promoci¢n y Evaluaci¢n de Proyectos- Centro Nacional de Ahorro Energtico
14. Secretar¡a de Desarrollo Social
15. Secretar¡a de Turismo
16. Secretar¡a de la Contralor¡a General de La Federaci¢n
17. Comisi¢n Nacional de Zonas Aridas
18. Comisi¢n Nacional de Libros de Texto Gratuito
19. Comisi¢n Nacional de Derechos Humanos
20. Consejo Nacional de Fomento Educativo
21. Secretar¡a de la Defensa Nacional
22. Secretar¡a de Marina
The following products purchased by the Secretar¡a de la Defensa Nacional and the Secretar¡a de Marina are included in the coverage of this Chapter, subject to the application of paragraph 1 in Article 1018(1) (Exceptions).
(Numbers refer to the Federal Supply Classification Code, FSC)
22. Railway equipment23. Motor vehicles, trailers and cycles (except buses in2310, military trucks and trailers in 2320 and 2330 andtracked combat, assault and tactical vehicles in 2350)24. Tractors25. Vehicular equipment components26. Tires and tubes29. Engine accessories30. Mechanical power transmission equipment32. Woodworking machinery and equipment34. Metal working machinery35. Service and trade equipment36. Special industry machinery37. Agricultural machinery and equipment38. Construction, mining, excavating and highway maintenanceequipment39. Materials handling equipment40. Rope, cable, chain and fittings41. Refrigeration and air conditioning equipment42. Fire fighting, rescue and safety equipment43. Pumps and compressors44. Furnace, steam plant, drying equipment and nuclearreactors45. Plumbing, heating and sanitation equipment46. Water purification and sewage treatment equipment47. Pipe, tubing, hose and fittings48. Valves49. Maintenance and repair shop equipment52. Measuring tools53. Hardware and abrasives54. Prefabricated structures and scaffolding55. Lumber, millwork, plywood and veneer56. Construction and building materials61. Electric wire and power and distribution equipment62. Lighting fixtures and lamps63. Alarm and signal systems65. Medical, Dental, and Veterinary Equipment and Supplies66. Instruments and laboratory equipment67. Photographic equipment68. Chemicals and chemical products69. Training aids and devices70. General purpose ADPE, software, supplies and supportequipment71. Furniture72. Household and commercial furnishings and appliances73. Food preparation and serving equipment74. Office machines, text processing system and visiblerecord equipment75. Office supplies and devices76. Books, maps and other publications (except 7650: Drawingsand specifications)77. Musical instruments, phonographs and home-type radios78. Recreational and athletic equipment79. Cleaning equipment and supplies80. Brushes, paints, sealers and adhesives81. Containers, packaging and packing supplies85. Toiletries87. Agricultural supplies88. Live animals93. Non-metallic fabricated materials94. Non-metallic crude materials96. Ores, minerals and their primary products (except 9620:minerals, natural and synthetic)99. Miscellaneous
Notes:
1. National security exceptions include procurements made in support of safeguarding nuclear materials or technology.
2. The General Notes for Mexico as set out in Annex 1002.7 apply to this Annex.
=============================================================================ANNEX 1002.1
Schedule of the United States
1. Department of Agriculture (This Chapter does not apply to procurement of agricultural products made in furtherance of agricultural support programs or human feeding programs.) Federal buy national requirements imposed as conditions of funding by the Rural Electrification Administration will not apply to products and services of Mexico and Canada. 2. Department of Commerce 3. Department of Education 4. Department of Health and Human Services 5. Department of Housing and Urban Development 6. Department of the Interior, including the Bureau of Reclamation (For suppliers of goods and services of Canada, the obligations of this Chapter will apply to procurements by the Bureau of Reclamation of the Department of Interior only at such time as the obligations of this Chapter take effect for procurements by Canadian Provincial Hydro utilities.) 7. Department of Justice 8. Department of Labor 9. Department of State 10. United States Agency for International Development 11. Department of the Treasury 12. Department of Transportation (Pursuant to Article 1018, the national security considerations applicable to the Department of Defense are equally applicable to the Coast Guard, a military unit of the United States.) 13. Department of Energy (This Chapter does not apply, pursuant to Article 1018, to national security procurements made in support of safeguarding nuclear materials or technology and entered into under the authority of the Atomic Energy Act; and to oil purchases related to the Strategic Petroleum Reserve.) 14. General Services Administration (except Federal Supply Groups 51 and 52 and Federal Supply Class 7340) 15. National Aeronautics and Space Administration 16. The Department of Veterans Affairs 17. Environmental Protection Agency 18. United States Information Agency 19. National Science Foundation 20. Panama Canal Commission 21. Executive Office of the President 22. Farm Credit Administration 23. National Credit Union Administration 24. Merit Systems Protection Board 25. ACTION 26. United States Arms Control and Disarmament Agency 27. The Office of Thrift Supervision 28. The Federal Housing Finance Board 29. National Labor Relations Board 30. National Mediation Board 31. Railroad Retirement Board 32. American Battle Monuments Commission 33. Federal Communications Commission 34. Federal Trade Commission 35. Inter-State Commerce Commission 36. Securities and Exchange Commission 37. Office of Personnel Management 38. United States International Trade Commission 39. Export-Import Bank of the United States 40. Federal Mediation and Conciliation Service 41. Selective Service System 42. Smithsonian Institution 43. Federal Deposit Insurance Corporation 44. Consumer Product Safety Commission 45. Equal Employment Opportunity Commission 46. Federal Maritime Commission 47. National Transportation Safety Board 48. Nuclear Regulatory Commission 49. Overseas Private Investment Corporation 50. Administrative Conference of the United States 51. Board for International Broadcasting 52. Commission on Civil Rights 53. Commodity Futures Trading Commission 54. The Peace Corps 55. National Archives and Records Administration 56. Department of Defense, including the Army Corps of Engineers
This Chapter will not apply to the following purchases of theDOD:
(a) Federal Supply Classification (FSC) 83 - all elements ofthis classification other than pins, needles, sewingkits, flagstaffs, flagpoles, and flagstaff trucks;(b) FSC 84 - all elements other than sub-class 8460 (luggage);(c) FSC 89 - all elements other than sub-class 8975 (tobaccoproducts);(d) FSC 2310 - (buses only);(e) speciality metals, defined as steels melted in steelmanufacturing facilities located in the United States orits possessions, where the maximum alloy content exceedsone or more of the following limits, must be used inproducts purchased by DOD: (1) manganese, 1.65 per cent;silicon, 0.60 per cent; or copper, 0.06 per cent; orwhich contains more than 0.25 per cent of any of thefollowing elements: aluminium, chromium, cobalt,columbium, olybdenum, nickel, titanium, tungsten, orvanadium; (2) metal alloys consisting of nickel, iron-nickel and cobalt base alloys containing a total of otheralloying metals (except iron) in excess of 10 per cent;(3) titanium and titanium alloys; or (4) zirconium basealloys;(f) FSC 19 and 20 - that part of these classificationsdefined as naval vessels or major components of the hullor superstructure thereof;(g) FSC 51; and(h) the following FSC categories are not generally covereddue to application of Article 1018(1) (Exceptions): 10,12, 13, 14, 15, 16, 17, 19, 20, 28, 31, 58, 59 and 95.
This Chapter will generally apply to DOD purchases of thefollowing FSC categories subject to United States Governmentdeterminations under the provisions of Article 1018(1)(Exceptions):
22. Railway Equipment23. Motor Vehicles, Trailers, and Cycles (except buses in2310)24. Tractors25. Vehicular Equipment Components26. Tires and Tubes29. Engine Accessories30. Mechanical Power Transmission Equipment32. Woodworking Machinery and Equipment34. Metalworking Machinery35. Service and Trade Equipment36. Special Industry Machinery37. Agricultural Machinery and Equipment38. Construction, Mining, Excavating, and Highway MaintenanceEquipment39. Materials Handling Equipment40. Rope, Cable, Chain and Fittings41. Refrigeration and Air Conditioning Equipment42. Fire Fighting, Rescue and Safety Equipment43. Pumps and Compressors44. Furnace, Steam Plant, Drying Equipment and NuclearReactors45. Plumbing, Heating and Sanitation Equipment46. Water Purification and Sewage Treatment Equipment47. Pipe, Tubing, Hose and Fittings48. Valves49. Maintenance and Repair Shop Equipment52. Measuring Tools53. Hardware and Abrasives54. Prefabricated Structures and Scaffolding55. Lumber, Millwork, Plywood and Veneer56. Construction and Building Materials61. Electric Wire, and Power and Distribution Equipment62. Lighting Fixtures and Lamps63. Alarm and Signal Systems65. Medical, Dental, and Veterinary Equipment and Supplies66. Instruments and Laboratory Equipment67. Photographic Equipment68. Chemicals and Chemical Products69. Training Aids and Devices70. General Purpose ADPE, Software, Supplies and SupportEquipment71. Furniture72. Household and Commercial Furnishings and Appliances73. Food Preparation and Serving Equipment74. Office machines, text processing system and visiblerecord equipment75. Office Supplies and Devices76. Books, Maps and Other Publications77. Musical Instruments, Phonographs, and Home Type Radios78. Recreational and Athletic Equipment79. Cleaning Equipment and Supplies80. Brushes, Paints, Sealers and Adhesives81. Containers, Packaging and Packing Supplies85. Toiletries87. Agricultural Supplies88. Live Animals91. Fuels, Lubricants, Oils and Waxes93. Non-metallic Fabricated Materials94. Non-metallic Crude Materials96. Ores, Minerals and their Primary Products99. Miscellaneous
Note:
The General Notes for the United States as set out in Annex 1002.7 apply to this Annex.
=============================================================================ANNEX 1002.2
State and Provincial Government Entities
Coverage under this Annex will be addressed following consultations with state and provincial governments under the terms and conditions set out in Article 1024 (Further Negotiations).
Note:
The General Notes as set out in Annex 1002.7 apply to this Annex.
============================================================================= ANNEX 1002.3
Government Enterprises
Schedule of Canada
1. Canada Post Corporation 2. National Capital Commission 3. St. Lawrence Seaway Authority 4. Royal Canadian Mint 5. Canadian National Railways 6. Via Rail 7. Canadian Museum of Civilization 8. Canadian Museum of Nature 9. National Gallery of Canada 10. National Museum of Science and Technology 11. Defence Construction (1951) Ltd.
Notes:
1. With respect to procurements by Canadian National Railways, St. Lawrence Seaway Authority and Via Rail, coverage is subject to Article 1019(5) (Provision of Information), respecting the protection of the commercial confidentiality of information provided.
2. The General Notes for Canada as set out in Annex 1002.7 apply to this Annex.
Schedule of Mexico
Printing and Editorial 1. Talleres Gr ficos de la Naci¢n 2. Productora e Importadora de Papel S.A de C.V., Pipsa
Communications and Transportation 3. Aeropuertos y Servicios Auxiliares, ASA 4. Caminos y Puentes Federales de Ingreso y Servicios Conexos, Capufe 5. Puertos Mexicanos 6. Servicio Postal Mexicano 7. Ferrocarriles Nacionales de Mxico, Ferronales 8. Telecomunicaciones de Mxico, Telecom
Industry 9. Petr¢leos Mexicanos, Pemex (This Chapter does not apply to procurement of fuels and gas.) 10. Comisi¢n Federal de Electricidad, CFE 11. Consejo de Recursos Minerales 12. Comisi¢n de Fomento Minero
Commerce 13. Compa¤¡a Nacional de Subsistencias Populares, Conasupo (This Chapter does not apply to procurement of agricultural products made in furtherance of agricultural support programmes or human feeding programmes.) 14. Bodegas Rurales Conasupo, S.A. de C.V. 15. Distribuidora e Impulsora de Comercio, Diconsa 16. Leche Industrializada Conasupo, S.A. de C.V., Liconsa (This Chapter does not apply to procurement of agricultural products made in furtherance of agricultural support programmes or human feeding programmes.) 17. Procuradur¡a Federal del Consumidor 18. Instituto Nacional del Consumidor 19. Laboratorios Nacionales de Fomento Industrial 20. Servicio Nacional de Informaci¢n de Mercados
Social Security 21. Instituto de Seguridad y Servicios Sociales de los Trabajadores del Estado, ISSSTE 22. Instituto Mexicano del Seguro Social, IMSS 23. Sistema Nacional para el Desarrollo Integral de la Familia, DIF (This Chapter does not apply to procurement of agricultural products made in furtherance of agricultural support programmes or human feeding programmes.) 24. Servicios Asistenciales de la Secretar¡a de Marina 25. Instituto de Seguridad Social para las Fuerzas Armadas Mexicanas 26. Instituto Nacional Indigenista, INI 27. Instituto Nacional Para la Educaci¢n de los Adultos 28. Centros de Integraci¢n Juvenil 29. Instituto Nacional de la Senectud
Others 30. Comite Administrador del Programa Federal de Construcci¢n de Escuelas, Capfce 31. Comisi¢n Nacional del Agua, CNA 32. Comisi¢n Para la Regularizaci¢n de la Tenencia de la Tierra 33. Consejo Nacional de Ciencia y Tecnolog¡a, Conacyt 34. Notimex, S.A . de C.V. 35. Instituto Mexicano de Cinematograf¡a 36. Loter¡a Nacional para la Asistencia P£blica 37. Pron¢sticos Deportivos
Notes:
1. National security exceptions include procurements made in support of safeguarding nuclear materials or technology.
2. The General Notes for Mexico as set out in Annex 1002.7 apply to this Annex.
Schedule of the United States
1. Tennessee Valley Authority2. Power Marketing Administrations of the Department of Energy- Bonneville Power Administration- Western Area Power Administration- Southeastern Power Administration- Southwestern Power Administration- Alaska Power Administration3. St. Lawrence Seaway Development Corporation
Notes:
1. For suppliers of goods and services of Canada, the obligations of this Chapter will apply to procurements by the Tennessee Valley Authority and the Power Marketing Administrations of the Department of Energy only at such time as the obligations of this Chapter take effect for procurements by Canadian Provincial Hydro utilities.
2. The General Notes for the United States as set out in Annex 1002.7 apply to this Annex.
=============================================================================ANNEX 1002.4
Services
I. General Provisions
1. Except for the services listed in Part II of this Annex, all services procured by the entities listed in Annex 1002.1 (Federal Government Entities) and Annex 1002.3 (Government Enterprises) are subject to this Chapter.
2. Contracts for construction services are subject to this Chapter as specified in Annex 1002.5 (Construction Services).
3. The Parties shall adopt a universal list of services for reporting purposes, which is indicative of the services procured by the entities of the Parties, and is contained in the Appendix to this Annex.
4. The Parties shall update, as appropriate, the list of universal services included in the Appendix to this Annex at such time as they mutually agree.
5. Notwithstanding paragraph 1, for Mexico only the services included in the Temporary Schedule of Mexico will be subject to this Chapter, until such time as Mexico has completed its schedule under Part II pursuant to paragraph 6.
6. Mexico will develop and, after consultations with the other Parties, complete its list of services set out under the Schedule of Mexico in Part II of this Annex no later than July 1, 1995.
Temporary Schedule of Mexico: Services Included
(Based on the United Nations Central Product Classification, CPC)
Professional Services863 Taxation services (excluding legal services)8671 Architectural services86711 Advisory and pre-design architectural services87612 Architectural design services87713 Contract administration services86714 Combined architectural design and contractadministration services86719 Other architectural services8672 Engineering services86721 Advisory and consultative engineering services86722 Engineering design services for foundations andbuilding structures86723 Engineering design services for mechanical andelectrical installations for buildings86724 Engineering design services for civil engineeringconstruction86725 Engineering design for industrial processes andproduction86726 Engineering design services n.e.c.86727 Other engineering services during the constructionand installation phase86729 Other engineering services8673 Integrated engineering services86731 Integrated engineering services for transportation,infrastructure turnkey projects86732 Integrated engineering and project managementservices for water supply and sanitation worksturnkey projects86733 Integrated engineering services for theconstruction of manufacturing turnkey projects86739 Integrated engineering services for other turnkeyprojects8674 Urban planning and landscape architectural services
Computer and Related Services841 Consultancy services related to the installation ofcomputer hardware842 Software implementation services, including systems andsoftware consulting services, systems analysis, design,programming and maintenance services843 Data processing services, including processing,tabulation and facilities management services844 Data base services845 Maintenance and repair services of office machinery andequipment including computers849 Other computer services
Real Estate Services821 Real estate services involving own or leased property822 Real estate services on a fee or contract basis
Rental/Leasing Services without Operators831 Leasing or rental services concerning machinery andequipment without operator, including computers832 Leasing or rental services concerning personal andhousehold goods (excluding in 83201, the rental ofprerecorded records, sound cassettes, CD's and excluding83202, rental services concerning video tapes)
Other Business Services865 Management consulting services86501 General management consulting services86503 Marketing management consulting services86504 Human resources management consulting services86505 Production management consulting services86509 Other management consulting services, includingagrology, agronomy, farm management and relatedconsulting services8676 Technical testing and analysis services including qualitycontrol and inspection8814 Services incidental to forestry and logging, includingforest management883 Services incidental to mining, including, drilling andfield services5115 Site preparation for mining8675 Related scientific and technical consulting services86751 Geological, geophysical and other scientificprospecting services, including those related tomining86752 Subsurface surveying services86753 Surface surveying services86754 Map making services663 Repair services of personal and household goods8861 Repair services incidental to metal products, tomachinery and equipment including computers,8866 and communications equipment874 Building-cleaning876 Packaging services
Environmental Services940 Sewage and refuse disposal, sanitation and otherenvironmental protection services, including sewageservices, nature and landscape protection services andother environmental protection services n.e.c.
Hotels and restaurants(including catering)641 Hotel and other lodging services642/3 Food and beverage serving services
Travel agency and tour operators services7471 Travel agency and tour operator servicesII. Services Excluded from Coverage
[Subject to review]
The following services contracts are excluded in their entirety by the Parties:
Schedule of Canada
(Based on the United Nations Central Product Classification, CPC)
CPC1. Transport, storage and communication services- Land Transport services 71- Water Transport services 72- Air Transport Services 73- Supporting and Auxiliary Transport services (except7471: Travel Agencies and Tour Operator services) 74- Post and Telecommunication services (except 7512:Courier services and 7523: Data Transmissionservices) 75Note: All transportation services, including relatedrepair and overhaul and launching services andtransportation services, where incidental to procurementcontracts, are not subject to this Chapter.
2. Business services; agricultural, mining and manufacturingservices- Financial, Intermediation services and Auxiliaryservices therefor 81- Leasing or rental services concerning televisions,radios, video cassette recorders and relatedequipment and accessories 83201- Leasing or rental services concerning video tapes 83202- Research and Development services 85- Legal services (except: Advisory services onForeign Law) 861- Legal services incidental to Taxation Services 863- Market Research and Public Opinion Pollingservices 864- Financial Management consulting services (exceptcorporate tax) 86502- Public relations services 86506- Services related to management consulting 866- Related scientific and technical consultingservices 8675- Business Services, n.e.c. (except 8740: Buildingcleaning services and 8760: Packaging services) 87- Services incidental to agriculture, hunting andforestry (except 8814: services incidental toforestry and logging; and 8830: services incidentalto mining) 881- Services incidental to fishing 882- Services incidental to manufacturing, except to themanufacture of metal products, machinery andequipment 884- Services incidental to the manufacture of metalproducts, machinery and equipment (except 8852:Manufacture of fabricated metal products, exceptmachinery and equipment on a fee or contractbasis) 885- Repair services, n.e.c. of motor vehicles, trailersand semi-trailers, on a fee or contract basis 8867- Repair services of other transport equipment, on afee or contract basis 8868- Services incidental to energy distribution 887- Intangible assets 89
3. Community, Social and Professional Services- Education services 92- Health and Social Services 93- Services of Membership Organizations 95- Recreation, cultural and sporting services 96- Other services 97- Services provided by extraterritorial organizationsand bodies 99
4. Contracts of the departments of Transport Canada, Communications Canada and Fisheries and Oceans respecting FSCs 70 (automatic data processing equipment, software supplies and support equipment), 74 (office machines, text processing systems and visible record equipment), 36 (special industry machinery).
5. Research and development services.
6. Dredging.
7. All services purchased in support of military forces located overseas.
8. Management and operation contracts awarded to federally-funded research and development centers or related to carrying out government sponsored research programs.
9. Public utilities services.
10. Printing and publishing.
Note:
The General Notes for Canada as set out in Annex 1002.7 apply to this Annex.
Schedule of Mexico
(Based on the United Nations Central Product Classification, CPC)
CPC1. All transportation services, including transportationservices incidental to procurement contracts:- Land transportation 71- Water transport 72- Air transport 73- Supporting and auxiliary transport 74- Post and telecommunication 75- Repair services of other transport equipment, on afee or contract basis 8868
2. All risk-sharing contracts by Pemex.
3. Public utilities services (including telecommunications, transmission, water or energy services).
4. Management and operation contracts awarded to federally-funded research and development centers or related to carrying out government sponsored research programs.
5. Financial services
6. Research and development services
7. Confidential consulting services (provided that they are not used with a view to avoiding maximum possible competition or in a manner that would constitute a means of discrimination among suppliers of the other Parties or protection to Mexican suppliers).
Note:The General Notes for Mexico as set out in Annex 1002.7 applyto this Annex.
Schedule of the United States
(Based on the Procurement Data System Services Codes)FSC1. Transportation and related services (except V231:Lodging and Hotel/Motel; and V302: travel agent)- Transportation V- Maintenance, Repair and Rebuilding of Ships JO19- Non-nuclear Ship Repair J998 and J999- Modification of Ships KO19In addition, transportation services, where incidentalto procurement contracts, are not subject to this Chapter.
2. Dredging Y216
3. All services purchased in support of military forces overseas.
4. Management and operation contracts awarded to- federally-funded research and development centers(FFRDCs) or related to carrying outgovernment-sponsored research programs(classification to be clarified) M181-184- by DOD, DOE, and NASA M
5. Public utilities and telecommunications services:- Utilities S1- ADP Telecommunications and Transmission Services D304- ADP Teleprocessing and Timesharing Services D305- Telecommunications Network Management Services D316- Automated News Services, Data Services, or otherinformation D317- Other ADP and Telecommunications services D399
6. Research and Development services A
Note: The General Notes for the United States as set out in Annex 1002.7 apply to this Annex.
Appendix to ANNEX 1002.4Universal List of Services
Construction Services
I. General Provisions
1. Except for the construction services listed in Part II of this Annex, all construction services as specified in the Appendix to this Annex, which are procured by the entities listed in Annex 1002.1 (Federal Government Entities) and Annex 1002.3 (Government Enterprises) are subject to this Chapter.
2. The Parties will update, as appropriate, the list of construction services included in the Appendix at such time as they mutually agree.
II. Construction Services Excluded from Coverage
The following services contracts are excluded in their entirety by the Parties:
Schedule of Canada
1. Dredging.
2. Construction contracts tendered by or on behalf of Department of Transport.
Note: The General Notes for Canada as set out in Annex 1002.7 apply to this Annex.
Schedule of Mexico
All risk-sharing contracts by Pemex.
Notes:
The General Notes for Mexico as set out in Annex 1002.7 apply to this Annex.
Schedule of the United States
Dredging.
Notes:
1. In accordance with the obligations of this Chapter, buy national requirements on articles, supplies, and materials acquired for use in construction contracts subject to the obligations of this Chapter will not apply to products of Canada or Mexico.
2. The General Notes for the United States as set out in Annex 1002.7 apply to this Annex.
Appendix to ANNEX 1002.5
List of Construction Services
List of contracts for construction services which are subject to the obligations of this Chapter, except as otherwise provided:
(Based on the United Nations Central Product Classification, CPC)
Division 51 Construction work
511 Pre-erection work at construction sites 5111 Site investigation work 5112 Demolition work 5113 Site formation and clearance work 5114 Excavating and earthmoving work 5115 Site preparation work for mining 5116 Scaffolding work
512 Construction works for buildings 5121 For one and two dwelling buildings 5122 For multi-dwelling buildings 5123 For warehouses and industrial buildings 5124 For commercial buildings 5125 For public entertainment buildings 5126 For hotel, restaurant and similar buildings 5127 For educational buildings 5128 For health buildings 5129 For other buildings
513 Construction work for civil engineering5131 For highways (except elevated highways), streets, roads,railways and airfield runways5132 For bridges, elevated highways, tunnels and subways5133 For waterways, harbours, dams and other water works5134 For long distance pipelines, communication and powerlines (cables)5135 For local pipelines and cables; ancillary works5136 For constructions for mining and manufacturing5137 For constructions for sport and recreation5139 For engineering works n.e.c.
514 5140 Assembly and erection of prefabricated constructions
515 Special trade construction work5151 Foundation work, including pile driving5152 Water well drilling5153 Roofing and water proofing5154 Concrete work5155 Steel bending and erection, including welding)5156 Masonry work5159 Other special trade construction work
516 Installation work5161 Heating, ventilation and air conditioning work5162 Water plumbing and drain laying work5163 Gas fitting construction work5164 Electrical work5165 Insulation work (electrical wiring, water, heat, sound)5166 Fencing and railing construction work5169 Other installation work
517 Building completion and finishing work 5171 Glating work and window glass installation work 5172 Plastering work 5173 Painting work 5174 Floor and wall tilling work 5175 Other floor laying, wall covering and wall papering work 5176 Wood and metal joinery and carpentry work 5177 Interior fitting decoration work 5178 Ornamentation fitting work 5179 Other building completion and finishing work
518 5180 Renting services related to equipment for construction or demolition of buildings or civil engineering works, with operator
============================================================================= ANNEX 1002.6
Transition Provisions for Mexico
Notwithstanding any other provision of this Chapter, Annexes 1002.1 through 1002.5 are subject to the following:
Pemex, CFE and Non-Energy Construction
1. The obligations of this Chapter shall not apply to:
(a) 50 percent of the total annual procurement abovethresholds of goods, services and construction servicesby Pemex;
(b) 50 percent of the total annual procurement abovethresholds of goods, services and construction servicesby CFE; and
(c) 50 percent of the total annual procurement abovethresholds of construction services, excludingconstruction services procured by Pemex and CFE.
2. Loans from regional and multilateral financial institutions will not be included for purposes of calculating the reservations specified in paragraph 1 or subject to other restrictions.
3. As of January 1st, 1994, the reservation specified in paragraph 1 will decrease according to the following schedule:
1994 1995 1996 1997 199850% 45% 45% 40% 40%
1999 2000 2001 2002 2003 and thereafter 35% 35% 30% 30% 0%
4. For Pemex and CFE, no more than 10 percent of their respective reserved procurement under paragraphs 1 and 3 shall be applied within a single Federal Supply Classification (FSC) class (or other classification system as agreed by all Parties) in a single year.
5. After December 31, 1998, Pemex and CFE each will make all reasonable efforts to assure that their respective total reservation in each FSC class (or other classification system as agreed by all Parties) shall not exceed 50 percent in a single year.
Pharmaceuticals
6. The provisions of this Chapter shall not apply to drugs whose patents have expired or are not currently patented (FSC class 6505) procured by the Secretar¡a de Salud, IMSS, ISSSTE, Secretar¡a de Defensa and the Secretar¡a de Marina. This exception shall be eliminated after 8 years from the date of entry into force of this Agreement. Procurement of biologicals and patented drugs shall not be exempted under any other provision of the Annexes of this Chapter. Nothing in this Chapter shall be interpreted in a way which will impair the protection provided by Chapter 17 (Intellectual Property) of this Agreement.
Time Limits for Tendering and Delivery
7. Upon the date of entry into force of this Agreement in January 1, 1994, Mexico will make best efforts to comply with the provisions of Article 1012 (Time Limits for Tendering and Delivery) with respect to the 40 day time limits. However, Mexico will fully comply with such obligations as from January 1, 1995.
Provision of Information
8. The Parties recognize that Mexico may be required to undertake extensive retraining of personnel, introduce new data maintenance and reporting systems and make major adjustments to the procurement systems of certain entities in order to comply with the obligations of this Chapter. The Parties also recognize that Mexico may encounter difficulties in making the transition to procurement systems that facilitate full compliance with the obligations of this Chapter.
9. The Parties shall, therefore, consult on an annual basis for the first five years that the Agreement is in effect to review transitional problems and to develop mutually agreed solutions. Such solutions may include, when appropriate, temporary adjustment to the obligations of Mexico under this Chapter, such as those related to reporting requirements.
10. In addition, the United States and Canada shall cooperate with Mexico to provide technical assistance, as appropriate and mutually agreed pursuant to Article 1020 (Technical Cooperation) of this Chapter, to aid Mexico's transition.
11. Notwithstanding any other provision of this Annex, each Party shall assume all of its obligations specified in this Chapter upon the date of entry into force of this Agreement.
Note: The General Notes for Mexico as set out in Annex 1002.7 apply to this Annex.
=============================================================================ANNEX 1002.7
General Notes
Schedule of Canada
1. Notwithstanding any other provision of this Chapter, this Chapter does not apply to procurements in respect of:
(a) shipbuilding and repair;
(b) urban rail and urban transportation equipment, systems, components and materials incorporated there in as well as all project related materials of iron or steel;
(c) contracts respecting FSC 58 (communications, detection and coherent radiation equipment);
(d) set-asides for small and minority businesses;
(e) pursuant to Article 1018 national security exemptions include oil purchases related to any strategic reserve requirements; and
(f) national security exceptions include procurements made in support of safeguarding nuclear materials or technology.
2. Procurement in terms of Canadian coverage is defined as contractual transactions to acquire property or services for the direct benefit or use of the government. It does not include non-contractual agreements or any form of government assistance, including but not limited to, cooperative agreements, grants, loans, equity infusions, guarantees, fiscal incentives, and government provision of goods and services, given to individuals, firms, private institutions, and sub-central governments.
Schedule of Mexico
1. Notwithstanding any other provision of this Chapter, this Chapter does not apply to procurements made:
(a) with a view to commercial resale by government-owned retail stores;
(b) pursuant to loans from regional or multilateral financial institutions to the extent that different procedures are imposed by such institutions (except for national content requirements); and
(c) between entities.
2. Notwithstanding any other provision in this Chapter, Mexico may allocate a non-specific sector set-aside as follows:
(a) upon the date of entry into force of this Agreement, up to the equivalent in real terms of $1.0 billion USD of 1994 shall annually be available to all procurements of entities subject to this Chapter, except Pemex and CFE and construction services procured by other entities subject to this Chapter as well as those procurements of goods in FSC class 6505;
(b) after December 31, 2002, up to the equivalent in real terms of $1.2 billion USD of 1994 shall annually be available to all procurement of entities subject to this Chapter, except Pemex and CFE and construction services procured by other entities subject to this Chapter as well as those procurements of goods of FSC class 6505;
(c) after December 31, 2002, up to the equivalent in real terms of $300 million USD of 1994 shall annually be availble to Pemex and CFE combined; and
(d) for purposes of this paragraph
(i) no more than 10 percent of the total procurement reserved shall be applied within a single FSC category (or other classification system as agreed by all Parties) in a single year, and
(ii) no more than 20 percent may be used by a single entity.
These values shall remain constant in real terms.
3. Notwithstanding any other provision of this Chapter, the entities subject to this Chapter may impose a local content requirement of no more than:
(a) 40 percent, for labor intensive turnkey or majorintegrated projects; and
(b) 25 percent, for capital intensive turnkey or majorintegrated projects.
For purposes of these provisions, a turnkey or major integrated project means, in general, a construction, supply or installation project undertaken by a person pursuant to a right granted by an entity subject to this Chapter with respect to which:
(c) the prime contractor is vested with the authority to select the general contractors or subcontractors;
(d) Mexico does not fund the project itself;
(e) the person bears the risk of performance; and
(f) the facility will be operated by an entity subject to this Chapter or through a procurement contract of that entity.
4. Regardless of the thresholds, Pemex shall apply the disciplines of Article 1004 regarding national treatment and non-discrimination to: