Annex 1413.6: Further Consultations and Arrangements
Section A Limited Scope Financial Institutions
Three years after the date of entry into force of this Agreement,
the Parties shall consult on the aggregate limit on limited scope
financial institutions described in paragraph 8 of Section B of
the Schedule of Mexico to Annex VII.
Section B Payments System Protection
1. If the sum of the authorized capital of foreign commercial
bank affiliates (as such term is defined in the Schedule of Mexico
to Annex VII), measured as a percentage of the aggregate capital
of all commercial banks in Mexico, reaches 25 percent, Mexico
may request consultations with the other Parties on the potential
adverse effects arising from the presence of commercial banks
of the other Parties in the Mexican market and the possible need
for remedial action, including further temporary limitations on
market participation. The consultations shall be completed expeditiously.
2. In considering the potential adverse effects, the Parties shall
take into account:
(a) the threat that the Mexican payments system may be controlled
by non-Mexican persons;
(b) the effects foreign commercial banks established in Mexico
may have on Mexico's ability to conduct monetary and exchangerate
policy effectively; and
(c) the adequacy of this Chapter in protecting the Mexican payments
system.
3. If no consensus is reached on the matters referred to in paragraph
1, any Party may request the establishment of an arbitral panel
under Article 1414 or Article 2008 (Request for an Arbitral Panel).
The panel proceedings shall be conducted in accordance with the
Model Rules of Procedure established under Article 2012 (Rules
of Procedure). The Panel shall present its determination within
60 days after the last panelist is selected or such other period
as the Parties to the proceeding may agree. Article 2018 (Implementation
of Final Report) and 2019 (Non-Implementation-Suspension of Benefits)
shall not apply in such proceedings.
Continue on to Chapter 15: Competition Policy, Monopolies and State Enterprises