Annex 6 State Reservations for Existing Measures Notified by the Government of the United Mexican States to the Government of Japan pursuant to paragraph 2 of Article 66 of Chapter 7 (Investment) and paragraph 2 of Article 101 of Chapter 8 (Cross-Border Trade in Services) of the Agreement Between the United Mexican States and Japan for the Strengthening of the Economic Partnership (Agreement). NOTE: These reservations shall be interpreted in accordance with paragraphs 1 to 7 of the Chapeau of Annex 6 of the Agreement. Schedule of Mexico State Reservations for Existing Measures 1 Sector: All Sectors Sub-Sector: Industry Classification: Type of Reservation: National Treatment (article 98) Level of Government: State (Baja California Sur) Measures: Political Constitution of Baja California Sur (Constitución Política del Estado de Baja California Sur), Chapter III Description: Cross-Border Services Baja California locals shall be preferred for all type of concessions for which the character of Mexican citizen is required. Phase-Out: None 2 Sector: All Sectors Sub-Sector: Industry Classification: Type of Reservation: National Treatment (article 58) Most-Favored-Nation Treatment (article 59) Performance Requirements (article 65) Level of Government: State (Jalisco) Measures: Law for the Economic Promotion of Jalisco (Ley para el Fomento Económico del Estado de Jalisco), Chapter VI As qualified by the Description element Description: Investment For granting incentives, elements of social profitability shall be used, taking into account the volume of exports, among other elements. Phase-Out: None 3 Sector: All Sectors Sub-Sector: Industry Classification: Type of Reservation: Performance Requirements (article 65) Level of Government: State (Puebla) Measures: Puebla Tax Code (Código Fiscal del Estado de Puebla) Description: Investment Tax authorities have the power to authorize deferred payments or payments by installments of the unpaid contributions and their accessory amounts, under the requirements set forth in the Code. Likewise, such authorities shall know of and resolve any request for total or partial exemption of contributions and their accessory amounts. Moreover, they may grant subsidies and tax incentives. Phase-Out: None 4 Sector: All Sectors Sub-Sector: Industry Classification: Type of Reservation: National Treatment (article 58) Performance Requirements (article 65) Level of Government: State (Puebla) Measures: Puebla’s Public Administration Organic Law (Ley Orgánica de la Administración Pública del Estado de Puebla), Chapter V Description: Investment The Secretariat of Economic Development shall be in charge of leading, coordinating and controlling the programs for economic promotion for the integral, regional and sectorial State’s development. Phase-Out: None 5 Sector: All Sectors Sub-Sector: Industry Classification: Type of Reservation: National Treatment (articles 58 and 98) Level of Government: State (Sinaloa) Measures: Political Constitution of Sinaloa (Constitución Política del Estado de Sinaloa), Chapter II Description: Investment and Cross-Border Services Mexican citizens from Sinaloa have the right to be preferred in the same circumstances to those who are not, with respect to all type of concessions granted by Sinaloa and the Municipalities thereof. Phase-Out: None 6 Sector: All Sectors Sub-Sector: Industry Classification: Type of Reservation: National Treatment (article 58) Performance Requirements (article 65) Level of Government: State (Tamaulipas) Measures: Law for the Industry’s Promotion and Protection (Ley de Fomento y Protección a la Industria), Chapter I Description: Investment The granting of tax franchises is conditioned to new industries or to necessary assembling industries that assemble merchandise with parts all produced in the country, and those that with their own equipments produce no less than 25 per cent of the direct cost of the total parts with which they assemble their products, but that in no case they use equipment originated abroad that represent more than 40 percent of the referred cost. Phase-Out: None 7 Sector: Education Services Sub-Sector: Private Services of Education Industry Classification: CMAP 921104 Private High School Education Services CMAP 921106 Private Education Services that Combine Pre-school, Primary, Secondary, High School and Higher Education Levels Type of Reservation: National Treatment (article 98) Senior Management and Boards of Directors (article 64) Level of Government: State (Chihuahua) Measures: Administrative Code of the State (Código Administrativo del Estado), Title IV, Chapter II Description: Investment and Cross-Border Services To establish and incorporate schools supported by private investment it is required that their principals be Mexican nationals. Phase-Out: None 8 Sector: Leisure, Cultural, Recreational and Sporting Services Sub-Sector: Industry Classification: CMAP 949102 Private Services of Promotion and Presentation of Sporting, Bullfighting and Circus Spectacles. Includes the Operation of Stadiums, Arenas, Handball and Jai Alai Courts, Racecourses, Cockpits, etc. CMAP 949202 Public Services of Promotion and Presentation of Sporting and Bullfighting Spectacles. Includes the Promotion and Presentation of Horse-riding, Bullfighting, Athletic and Other Sports Spectacles Type of Reservation: National Treatment (article 98) Performance Requirements (article 65) Level of Government: State (Distrito Federal) Measures: Bullfighting Regulations of the Distrito Federal (Reglamento Taurino para el Distrito Federal), Chapters II and IV Description: Investment and Cross-Border Services An authorization issued by the corresponding Delegation is required to perform a bullfighting show. Foreign performers in bullfights, small bullfights and bullfights festivals may not exceed 50 per cent of the scheduled performers. At least, 50 per cent of all casts shall be composed by Mexican nationals performers. Phase-Out: None 9 Sector: Leisure, Cultural, Recreational and Sporting Services Sub-Sector: Industry Classification: CMAP 949202 Public Services of Promotion and Presentation of Sporting and Bullfighting Spectacles. Includes the Promotion and Presentation of Horse-riding, Bullfighting, Athletic and Other Sports Spectacles Type of Reservation: National Treatment (article 98) Senior Management and Boards of Directors (article 64) Level of Government: State (Distrito Federal) Measures: Regulations for the Operation of Commercial Businesses and Performance of Public Shows in the Distrito Federal (Reglamento para el Funcionamiento de Establecimientos Mercantiles y Celebración de Espectáculos Públicos en el Distrito Federal), Title III, Chapter III, Section I Description: Investment and Cross-Border Services For the technical development of boxing, wrestling, fronton, football, basketball, baseball, motor raising, cycling, athletics and the like, the Distrito Federal Government will have a special commission for each case. To be part of any of these commissions, Mexican nationality is required. Phase-Out: None 10 Sector: Leisure, Cultural, Recreational and Sporting Services Sub-Sector: Soccer Industry Classification: CMAP 949102 Private Services of Promotion and Presentation of Sporting, Bullfighting and Circus Spectacles CMAP 949202 Public Services of Promotion and Presentation of Sporting, Bullfighting and Circus Spectacles Type of Reservation: National Treatment (article 98) Level of Government: State (Distrito Federal) Measures: Decree that Creates a Collegiate Body named Sport Promotion Commission of the Distrito Federal (Decreto que crea un cuerpo colegiado que se denominará Comisión de Fomento Deportivo del Distrito Federal) Description: Cross-Border Services In the celebration of public games, leagues or national soccer championships, as public-paid shows, at least seven players shall be Mexican nationals by birth. Phase-Out: None 11 Sector: Non-Waged Workers Sub-Sector: Industry Classification: Type of Reservation: National Treatment (article 98) Senior Management and Boards of Directors (article 64) Level of Government: State (Distrito Federal) Measures: Regulations for Non-Waged Workers in the Distrito Federal (Reglamento de los Trabajadores no Asalariados del Distrito Federal), Chapter III Description: Investment and Cross-Border Services Mexican nationality by birth is required to be a member of the Board of the Non-Waged Workers Association (Uniones de Trabajadores no Asalariados). Phase-Out: None 12 Sector: Professional, Technical and Specialized Services Sub-Sector: Industry Classification: Type of Reservation: National Treatment (article 98) Level of Government: State (Baja California Sur) Measures: Professions Law of Baja California Sur (Ley de Profesiones del Estado de Baja California Sur), Chapter V and Transitional Article 3 Description: Cross-Border Services Only Mexican nationals by birth or naturalization may practice in the State the following technical-scientific professions: medicine, biological sciences; nutritional and food sciences; rehabilitation; physiotherapy; veterinarian medicine; actuary; experimental and applied physics and chemistry; architecture; urbanism; earth sciences; oceanology; engineering in all its specialized areas; and any other profession that in an instrumental manner requires the management of the inorganic, habitat and human environment; law; economics; accounting; social work; anthropology; behavior sciences; education sciences; teaching in pre- school, elementary and secondary school; administration in all