============================================================================= ANNEX I Schedule of Canada

INDUSTRY CLASSIFICATION: SIC 454 Water Transport Industry

North American Free Trade Agreement, 1992 Oct. 7 — Part 30

TYPE OF RESERVATION: Local Presence (Article 1205)

North American Free Trade Agreement, 1992 Oct. 7 — Part 30

LEGAL CITATION: Shipping Conference Exemption Act, 1987, R.S.C., 1985, c.17 (3rd Supp.), section 18

North American Free Trade Agreement, 1992 Oct. 7 — Part 30

Members of a shipping conference shall maintain jointly an office or agency in the region of Canada where they operate. A shipping conference is an association of ocean carriers that has the purpose or effect of regulating rates and conditions for the transportation by such carriers of goods by water.

============================================================================= ANNEX I Schedule of Canada

INDUSTRY CLASSIFICATION: SIC 4541 Freight and Passenger Water Transport Industry

TYPE OF RESERVATION: Most-Favored-Nation Treatment (Article 1203)

LEGAL CITATION: Coasting Trade Act, S.C., 1992, c. 31, subsection 3(5)

The prohibitions under the Coasting Trade Act set out in Schedule of Canada, Annex II, p. II-C-10 do not apply to any vessel that is owned by the U.S. Government when used solely for the purpose of transporting goods owned by the U.S. Government from the territory of Canada to supply Distant Early Warning sites.

============================================================================= ANNEX I Schedule of Canada

INDUSTRY CLASSIFICATION: [To be provided]

TYPE OF RESERVATION: Performance Requirements (Article 1106)

LEGAL CITATION: Canada Oil and Gas Operations Act (in force as of September 1, 1992)

1. The terms and conditions of government assistance for the Hibernia project require that certain goods and services be sourced in Newfoundland and in Canada and that the project operator undertakes, on a "best efforts" basis, to achieve specific Canadian and Newfoundland content levels.

2. In addition, Canada reserves the right to impose any requirement or enforce any commitment or undertaking for the transfer of technology, a production process or other proprietary knowledge to a national or enterprise in Canada, in connection with the Hibernia project. DURATION: For purposes of this entry, paragraph 2 of the Description shall govern with respect to Canada's reservation to the obligations of Article 1106(1) (f).