The Multilateral Agreement on Investment ( )

Dear Friends,

Attached is a list of reservations [Part 1 of 2] which have been filed by all of the OECD countries for the MAI [as of April 22, 1997]. While that may seem like a while ago, it is the most comprehensive list that we have been able to track down so far from confidential sources.

What this list of reservations helps us to do is to compare and contrast what the OECD member countries have decided to protect [or not protect] under the MAI.

From this list, it is clear that Canada has filed the most reservations covering a variety of laws and programs. But this does not mean much {except that Ottawa is wary of the fact that there are many holes to plug]. After all, these reservations do not provide guaranteed protection. The reservation process itself is largely meant to be a political device which governments can use to calm public fears and reassure their parliaments by providing temporary protection for specified laws, policies or programs from the MAI rules. As long as the rollback and standstill clauses remain entact, however, the reservation process is virtually meaningless. As international trade lawyer Barry Appleton has shown, the reservations filed by Canada will do little to protect our health and social services as well as our cultural and environmental programs. What's more, other countries have virtually reserved sectors of their economies ranging from fisheries and mining to banking and oil and gas.

Yet, Ottawa has not done what some other governments have done, namely, protecting Canada from some of the the core elements of the MAI rules in general. For instance, the U.S. has not only protected all of its existing state laws and programs from the MAI rules, but it also reserves the right not to subject all government subsidies, grants and loans to the 'national treatment rules' as well as the right to maintain government procurement programs. At the same time, Australia has reserved the right to impose performance requirements on foreign based corporations and to continue government subsidies, grants and loans without applying the national treatment rules. And countries like Turkey have found a way of protecting their government against the use of the investor-state mechanism by reserving certain laws.

Indeed, when these and other OECD members use the reservation process to protect themselves against the core elements of the MAI, they make a mockery out of the whole investment treaty itself. It is one thing for a country to use the reservation process to protect certain laws, policies and programs [if only on a temporary basis]. But when a country uses these reservations to exempt itself altogether from the MAI's basic rules or core elements [eg. the national treatment clause on subsidies or the ban on performance requirements or the investor-state mechanism], then it is clearly undercutting the architecture of the entire investment treaty. If these core reservations are allowed to stand, they will make the treaty essentially unworkable in terms of its stated goals and objectives [let alone, creating two or more classes of participating countries].

In short, these contradictions can be strategically exposed and played off against one another, thereby demonstrating that the deal is fundamentally flawed.

Tony Clarke,

Polaris Institute, Ottawa

MAI RESERVATIONS --- OECD MEMBER COUNTRIES

Australia

1. Foreign acquisition and takeover act of 1975, not subject to dispute
settlement
2. Other aspects of same act
3. Foreign aid contracts in all sectors
4. prior authorization required for fdi by foreign governments
5. all government procurement
6. concessions (which includes natural resources concessions) and state
enterprises not subject to dispute resolution
7. right to maintain adopt any performance requirement in all sectors
8. Privatization allowed by any method
9. Research and Development
10. Subsidies and Grants
11. Banking Act 1959 and 1972
12. Single aviation agreement with NZ
13. Airport act of 1996: foreign ownership limit on privatized airports
14. Airlines: 25% limit on individual foreign investment in domestic airlines
(40% limit total foreign holdings)
15. Quantas sale act 1992: 25% individual foreign ownership limit on non-
Quantas international airlines/ 49% limit for Quantas
16. Bilateral aviation agreements
17. Films- tax and financial assistance only to films without excessive non-Australian content
18. Fisheries act of 1952, Fisheries management Act of 1991
19. preferences for indigenous persons
20. Migrant Act 1958- reserve on immigration of key personnel
21.
22. Broadcasting Service Act 1992
23. Need approval to acquire more than 5% in newspaper
24. TV- restrictions on foreign advertising/ quotas for non-Australian programs
25. CSL sale act 1993
26. Real estate- faces some restrictions under Foreign acquisition and takeover act of 1975
27. Ship- Ship Requirement Act of 1981
28. Social Services
29. Telecom- Sale of Telstar- 5% limit on each foreign investors- aggregate 35%

Austria

'Assume that no measure in private law in effect (ie consumer protection) could be considered an expropriation'
1. Aviation Act Federal Law Gazette 253/57, internal air transport act
2. Maritime transport act (for Austrian flag ships)
3. Inland waterway transport act- 87/1989
4. Road transport- freight traffic act- 593/1995 & Long and short haul Act 112/1996
5. Transport- Bilateral Road Transport Agreement
6. Public Account and Auditing Professional Act 125/1955- amended 431/ 1995
7. EEA lawyer act
8. Civil engineering profession act
9. Notaria Ordannance
10. Trade Act (Gewerbeordnung) (Arbeitvermittlergewerke)
(Arbeitskvalteukerlassungsgewerbe)
11. Chimney sweepers
12. Insurance- foreign insurance supervisor act 569/ 1978- am- 50/1995
13. Electricity- state electricity act
14. Oil and gas pipeline- pipeline act 411/ 1975, 127/1993
15. Trade act-
16. Key personnel- foreign labor act, residence act, foreigners act
17. State Real Estate Laws
18. Trade Act 194/1994- business permits to foreigners

Belgium

1. Inland waterways- royal decree 14 may 1993
2. Air transport- law on Sabena
3. Law of 2 Apr 1965 & 21 Dec 1990 on shipping registration
4. Banking- Article 9 of 89/646/EEC
5. Insurance- Art 13 of 19 July 1975
6. Financial services- article 4 of law of 4 dec 1990
7. fishing- registry of fishing vessels (21 dec 1990)
8. Tourism 30 June 1966 & travel agencies 1 April 1965
9. public contracts reserved to signatories of EEA & GATT

Czech Republic

1. Foreign exchange act 219/1995- restricts non-residents/citizens ownership of land
2. Insurance agents- insurance act 185/1996
3. Health insurance act 280/1992
4. Export credits- the insurance and forming of state support export act 58/1995
5. public procurement act 199/1994
6. Copyright- collective administration of copyright act 237 (1995)
7. Act on operation of radio and television broadcasts 468/1991
8. Architects and engineers act 360/1992
9. Notary public- 358/1992
10. Energetics act 222/1994
11. act 214/1992 on stock exchange (1/3 limit on foreign ownership of fixed assets on stock exchange)
12. Aviation act - requirement of 51% Czech. ownership
13. Telecom act 110/1964
14. Banking 21/1992- require govt approval
15. Cabotage- Chicago convention articles 3 and 7
16. Aviation act- ground handling
17. mining concessions- preference for Czech nationals
18. Act 219/1995- Foreign exchange act- residents should give preference to Czech. banks and monetary accounts
19. Act 219/1995- performance requirements- residents have to purchase foreign securities from residents w/ licenses
20. Same act and 591/1992 (securities) and 530/1992 (bonds)- preference to domestic capital/ money markets for issuing domestic securities
21. Road cabotage- need govt approval
22. Inland navigation act 114/1995
23. Trade act 455/1991- small business owners must speak Czech.
24. Films- co-production agreement
25. copyright- reservations in Rome convention
26. General Agreement on Trade in Services (GATS) reservations
27. Act 21/1997 on technical requirements for production

Canada:

April 22 1997 Reservations to MAI

existing

1. Farm credit corporation act, sc 1993, c 14
2. Investment Canada act and regs
3. Canada business corporation act, Canada corporation act (shareholding limits)
4. Same for senior management, boards of directors
5. Citizens act on foreign ownership of land regs, regarding the Alberta Agricultural and recreational; land ownership act
6. Air Canada public partnership act; petro Canada public partnership act;
Canada arsenal limited divestiture authorization act; eldorado nuclear limited reorganization and divestiture act; nordion and theravonin divestiture act
7. Export and import permit act
8. Canada US FTA implementation act: performance requirements for automotive goods
9. Custom act: customs broker licensing requirements
10. Duty free shops custom act and regs
11. Patent act and rules and citizenship requirement for patent agents
12. Trademark act and regs: trademark agents citizenship requirements
13. Oil and gas: federal real property act; Canada oil and gas land regs
14. Oil and gas performance requirements: benefits plan
15. " : hiberian development program act
16. Uranium mining: policy on non-resident ownership in uranium mining sector
17. Bank act- sc 1991 c 46; insurance company act; trust and loan company act:
½ directors must be citizens or permanent residents
18. Bank act- ministerial approval required for foreign banks to open more than one branch
19. Coastal fisheries protection act relating to exclusive economic zone
20. Coastal regulation of foreign fishing boats
21. Canada transportation act; aeronautics act, air regs
22. " - operating certificate required for specialty air services
23. "- repair of Canadian registered airplanes limited to Canadian certified workers
24. Motor vehicle transportation act; Canada transportation act (bus and truck transport)
25. Canada shipping act (flag registration)
26. " - masters, mates and engineers
27. Shipping conference exemption act
28. Coasting trade act- violates MFN due to exemption for US govt ships supplying early warning sites

prospective

29. Aboriginal affairs: 'any means"
30. Residence requirements for ownership of coastal land
31. Privatization- limits on ownership and citizenship requirements for boards
32. Telecom corporation boards
33. Any measure on radio, submarine cable, telecom
34. Financial administration act regarding public debt
35. Minority affairs- 'socially or economically disadvantages minorities'
36. Social services
37. Bank act of 1991- right to retain and adopt any measure on foreign bank branches
38. " - right to apply reciprocal restrictions on financial markets
39. Aeronautics act- specialty air services
40. Coastal trade act; Canada shipping act; custom act- maritime cabotage services
41. Any international agreements on maritime activities, including pollution, navigation, etc
42. Water transport- reciprocal limits to US NAFTA reservations schedule
11-4-9 to 11-4-13
43. Existing and future bilateral and multilateral agreements, including foreign aid programs

Denmark

1. commercial fishing 904 30 nov 1993
2. Danish aviation act
3. Danish merchant shipping act
4. written approval required to buy real estate

Finland

1. 1612/1992- act on the monitoring of foreign corporate acquisition in Finland
2. Act on the right to carry out economic activities - non EEA need approval to establish branches
3. Act on limited liability companies (1/2 founders, ½ board and ½ managing directors must be EEA)
4. Act on the autonomy of Aland 1144/1991
5. Continental shelf act 1965
6. Aviation act 28/1995
7. Same act, another provision
8. Flag registration- maritime code ch 1, 674/1994
9. Maritime cabotage
10. Mining act- 503/1965- need approval from government
11. Nuclear energy act
12. Act on the surveillance of foreign acquisition of real property
13. Act on foreign credit institutions 1608/1993; Act on Foreign investment service companies 580/1996
14. Common bank act 1266/ - ½ founders, ½ board and ½ managing directors must
be EEA)
15. Act on foreign insurance companies 398/1995
16. Insurance company act (1/2, ½, ½)
17. Employees pension act 395/61; employees insurance act 608/48
18. Insurance brokerage act 251/93
19. Act on foreign insurance companies- restriction on non-EEA insurance
companies owning non- insurance companies.
act on the right to carry out economic activities (non- EEA need approval to
establish branches)

France

1. Acquisition of more than FF 50 million or affecting companies w/ turnover
of FF 500 million by non-EU may require approval (Ac 66-100 28 Dec 1966/
decree 89-938 29 dec 1989)
2. Foreign tradesmen identity card 1938
3. Foreign bank need approval (based on reciprocity) to issue securities for
the eurofranc market
4. Insurance- prudential rules- French insured parties get preference in event
of liquidation [3. And 4. Suspended during GATS interim financial services
negotiations]
5. Insurance- non-EU need approval to establish branches
6. Radio- 20% limit for non-EU act 96-659 28 July 1996
7. Navigation on Rhine- non-Eu must register as french flag
8. Road transport- establishment by non Eu subject to reciprocity
9. Rail- Eu directive 91/440- exclusive access for Eu
10. Aviation- airfields only established by public or french investors
11. Tourism- based on reciprocity; cafe and bar licenses based on nationality
& quotas
12. Energy- hydro power under 8000 kw reserved for Eu; oil drilling by non-Eu
must be by french subsidiary
13. Agriculture- national treatment doesn't apply to non-Eu, which must get
authorization to start ag enterprise; agricultural co-ops directors must be
French (or reciprocity)
14. Regulated professions- lawyers, auditors, architects, accountants, land
surveyors, engineers, research and development, education, medical, personnel,
surveillance
15. Privatization- initial sales: 20% limit to non-EEA unless agreement
reached between sold company and foreign investor
16. Concessions- no national treatment

Germany

1. Financial assistance & guarantees- reserved for German nationals; in
shipping industry reserved for German flag
2. Maritime transport/ cabotage- only Eu can get German flag
3. Cabotage- reserved for Eu
4. Inland waterways- access granted by bilateral agreements
5. Railways- non EU- access only on basis of bilateral agreement

Greece

1. Real estate- need permission for acquisition on border regions
2. Transport- Greek flag- 49% foreign limit
3. Cabotage- reserved for Greek flag until 2004; then Eu reg 3577/92
4. Fishing- 49% foreign ownership limit for Greek flag fishing boat
5. Mining- foreign mining of all minerals except hydrocarbons, fuels, radium,
geothermal, need govt concessions; permit for exploration cannot be granted to
non- EU
6. Energy- no exploration for non EU; concessions require govt approval
7. Financial services- reciprocity determines establishment of non EU
branches; EU rules govern establishment of subsidiaries
8. Insurance- board of directors must be majority Greek/EU; establishment on
basis of reciprocity
9. Auditing- limited to EU
10. Tourism- non-EU on basis of reciprocity

Hungary

1. Air transport- domestic air transport limited to nationals
2. Waterways- internal waterways limited to national flag; Hungarian firms
with more than 50% foreign ownership require bilateral agreements
3. Real estate- restrictions on foreign purchase of arable land; real estate
investments require consent of county government
4. Capital movements- act XCV of 1995/ decree 161/ 1995- require approval to
purchase collective investment securities (purpose: "to avoid short term
speculative capital movements")
5. Financial credit- credit & loans of less than one year require approval;
all credit/loans of more than $50 million may be delayed up to 3 months
6. No branches of foreign companies until 31 dec 1997
7. Private entrepreneur- no non-residents
8. Foreign investors can only require registered shares

Iceland

1. Fishing- only Iceland citizens/ enterprises under Icelandic control can
fish in eez
2. Fish processing- only Iceland citizens
3. Fish auctioning- same
4. Real estate- purchasing or rents of 3 plus years by non-EEA only allowed if
for business purpose
5. Aviation- 49% limit on non EEA ownership
6. Energy- only EEA investment allowed in hydro and geothermal

Ireland

1. Agrarian land- non EEA need permission
2. Flour milling- can be refused non EEA
3. Fishing- only EU can get commercial sea fishing license

Italy

1. Sea Transport- flag registration- restrictions on non EU (Navigation code
article 143)
2. Inland transport- same restrictions
3. Maritime cabotage- only Italian flag w/ eventual liberalization to other EU
4. Port services- only Italian flag
5. Air transport- require 2/3 ownership by Italian citizens
6. air transport- cabotage- EU only unless allowed in international convention
7. Road transport- reciprocity for non Eu
8. fishing- must be Italian flag
9. mining- non EU can be denied permission based on reciprocity
10. Radio TV- non Eu based on reciprocity
11. newspaper/ magazines- non majority control by non-EU
12. Tourism- non EU based on reciprocity

Japan

1. Alien land act 1925- reciprocal restrictions
2. Foreign exchange and foreign trade act 1992 - fi in forestry, fisheries,
agriculture require administrative notice (that effectively restrict foreign
investment)
3. Law for regulation of fishing operations by foreign nationals 1967
4. Law for regulation of fishing operations by foreign nationals in EEZ 1996
5. International agreements on fisheries
6. Fi effectively barred in mining
7. Fi effectively barred in oil production
8. Fi effectively barred in leather production
9. Cabotage- flag registration
10. Air transport- maximum 1/3 foreign ownership
11. Reciprocity regarding subsidiaries and branches of foreign banks
12. Securities investment trust law- need to incorporate as Japanese company
to make investments


Korea

1. Only friendly merger and acquisitions allowed by foreign investors; govt.
permission required to acquire largest companies
2. limits on loans of 5 years + to foreign investors
3. real estate investment only for FDI
4. real estate- no fi for land development/ golf courses
5. mineral deposits- require approval for fi to own mineral deposits
6. agriculture- cereal growing- limited to Koreans; cereal processing- only
joint ventures until 31 dec 97
7. cattle husbandry- closed to fi; opened to less than 50% ownership starting
31 dec 99
8. Fishing- closed to all new market entry (Korean or foreign)
9. Ethyl alcohol- only joint ventures until 1 Jan 99
10. manufacture of tobacco- public monopoly (for "national health reasons")
11. manufacture of blood- only Korean red cross
12. petroleum refinement- 50% limit until 31 dec 98
13. Petrol stations- no fi until 31 dec 98
14. natural gas distribution- public monopoly
15. energy- electricity generation public monopoly
16. construction- no foreign branches until end of 97
17. medical insurance- monopoly
18. air transport- owner and chief executive must be Korean
19. air transport- only Korean carriers; Korean carriers have 20% foreign
ownership limit rising to 50% 31 dec 99
20. air traffic control- monopoly
21. water transport- flag restriction on foreign ownership
22. cabotage- 50% limit on fi
23. ocean transport- only allowed for LNG, freight between 3^rd countries and
car ferries; all others must be joint ventures until 31 dec 98
24. tugboats- no fi
25. maritime transport of coal, iron and liquid gas- Korean flag only
26. newspaper/ periodicals- require govt approval; no majority control by fi
27. broadcasting- no foreigner investors on board of directors; fi requires
govt approval
28. book publishing- 50% fi limit
29. foreign tv programs- govt approval needed; 20%-50% quota limit
30. tv advertising- no fi in advertising
31. telecom licenses- no fi by foreign business; 30% limit foreign investment
in Korean enterprises
32. share ownership in Korean television- non by foreign companies; Korean
companies w/ 50% or more foreign ownership barred until 1998
33. radio stations- differential treatment for fi
34. postal service- monopoly
35. defense sector
36. defense industry promotion fund/ subsidies
37. education- approval needed for fi in education sector
38. gambling- need approval for fi
39. waterworks- monopoly
40. bike/ boat/ horse racing tracks- monopoly
41. notary public- no non Koreans
42. movies- 60% quota for non Korean films; need approval to import
43. privatization- any existing or future measure on privatization

Luxembourg- none

Netherlands

1. Broadcasting- public broadcasting de facto limited to Netherlands investors
by definition, limited number of community stations
2. air transport- ownership requirement under international agreements
3. Netherlands flag- at least 2/3 EU
4. inland waterways- EU only
5. rail transport- non EU on basis of reciprocity

New Zealand

1. Overseas investment regulation (1995) and Act (1973)- govt approval
required for some fi
2. financial reporting act of 1993
3. more favored treatment for Maori people
4. telecom- telecom NZ 49.9% foreign ownership limit
5. key personnel
6. air transport- 49% fi limit
7. maritime transport- registration only NZ
8. fishing/ fish processing- fishing quotas in EEZ; only NZ ships in
territorial waters
9. Broadcasting- (Act 1989)- 6% of budget for Maori programming
10. NZ film commission act 1978- govt assistance to film industry limited to
NZ
11. interpretation for tourism- more favored for Japan and some other
countries
12. more favored entry for 20 Kiribati & 80 Tuvalu naturals

Norway

1. rail transport- need permission to enter network
2. land transport- foreign registered vehicles require permission
3. maritime transport- 60% Norwegian owned to get flag
4. aviation- only Norwegian citizens get concessions
5. joint stock companies act 4 June 1971- manager & ½ directors must have
resided in EU for at least 2 years
6. real estate- acquisition or lease of second residence by non resident
handled by concession
7. fishing - 40% fi limit and all board must be Norwegian citizens
8. banking- Commercial bank act 1961; Mutual fund act 1981; securities trading
activities act 1996
9. registration of securities- only EEA
10. insurance- insurance activities act 10 June 1988

Poland

1. Foreign exchange act 1989; Securities act 1991- capital controls as defined
in Poland's annex B to the OECD's [non binding] Code of Liberalization of
Capital Movements
2. Act on Companies with foreign partners 1991
3. Another provision of same act
4. Act on acquisition of real estate by foreigners 1920; foreign investors:
a. need approval for acquiring real estate for purposes other than FDI
b. need approval to take majority control of company holding real estate

c. buy real estate on national borders
5. Act on aviation 1962- need approval to invest in airports/ airlines
6. Act on telecommunications 1990- long distance telecom reserved to majority
Polish companies
7. Broadcast act 1992- majority of board of broadcast companies must be
resident polish citizens
8. Professional services- attorneys, dentists, etc, need approval for non
citizens to practice
9. Banking act 1989- at least one member of board of directors must be citizen
10. Approval needed to acquire certain levels of voting rights in polish
enterprises that own at least 15 of a Polish insurance company
11. Gambling and betting act 1992- 49% foreign ownership limit

Portugal

1. Privatization- 25% ownership limit on non EU investors
2. Telecom- law 88/89 of 11 Sept 89- 25% limit on non-EU investments in
'complementary telecom operations'
3. Tourism- 198/93 on activities of travel agencies- reserved for Polish
companies and companies established under laws of EU countries
4. Insurance- 388/91 10 Oct 91- foreign companies must establish polish or EU
branch
5. Insurance- before establishing branch, must have operated in home country
for 5 years
6 Banking- 298/92 31 Nov 92- economic means test- for bank branches/
subsidiaries not headquarter in EU
7. Investment fund management- 276/94 2 Nov 1994- only portugese incorporated
companies can offer open end mutual funds
8. Venture capital- 433/91- only by companies headquartered in EU
9. Brokerage & dealer 229 I/88 4 July 1988- only by companies incorporated in
Portugal

Spain

1. Decree 671/1992 - foreign investment by governments require prior approval;
prior notification required for foreign investment from tax-havens or of more
than 500 million pesetas; notification required for lesser foreign investments
for statistical purposes
2. Outward direct investment 672/1992- notification required; prior
notification for over 250 million pesetas
3. Broadcasting- 671/1992- approval required for fi by non EU in TV/radio; 25%
limit on ownership by non-residents
4. Defense- fi in defense industries requires govt approval
5. Energy- natural gas- decree 2033/1996- 3^rd party access to natural gas
networks on reciprocal basis
6. Oil production- 7/1996- access to oil production networks on reciprocal
basis
7. Banking- establishment of branches of eu banks regulated by eec directive
89/646; non eu banks by national law (no major distinction)
8. Insurance- 30/1995 - non EEA need approval and to show 5 year prior
presence in insurance sector in country of origin
9. Auditing- act 19/1988- need Spanish or EU nationality
10. Professional services- Spain's GATS list
11. Telecom- Act 31/1987 132/1992- foreign investors need approval above 25%
ownership
12. Tourism-travel agents- non-nationals require additional documentation
(financial solvency etc.)
13. Air transport- fi by non EU investors in air transport requires approval
14. "- cabotage- EC council reg 2408/92 restricts cabotage to national
airlines of EU countries
15. " aircraft registration- EC reg 2407/92 limits to EEA
16. Maritime transport- law 27/1992 article 76- EEC only
17. Cabotage- limited to spanish flagged vessels
18. Road transport- public road transport only for Spanish, EU or countries
covered by international agreements
19. Road transport- ec community cabotage quotas- ec reg 3118/93

Sweden

1. Reg 1974:235, Maritime code 1994: 1009- maritime transport limited to
Swedish flag vessels or vessels allowed under EC reg 3577/92 or vessels
covered by bilateral agreements; Swedish flag limited to majority swedish
ownership
2. Air transport- act 1957:297- domestic and inter EEA flights limited to EU
majority controlled carriers; international flights outside EEA limited to
Swedish companies or bilateral agreements
3. Real estate- 1992:1368- foreign purchase of smalusenhet and lantbruksenhet
(residences and farms/pasture) requires approval of county (only denied on
national interest or to prevent rapid escalation of real estate prices) or 5
years of domicile in country

Switzerland

1. Act 30 March 1991- code rs 220- majority of boards of directors of public
limited liability or cooperative enterprises must be Swiss resident nationals
2. Acquisition of immaterial property by persons abroad- RS 211 412 41-
requires approval of Canton if buyer is foreign national or foreign controlled
company
3. Banking- rs 952 8 nov 1934- reciprocity establishment of foreign owned
banks
4. Stock exchange- 24 march 1995- reciprocity for foreign controlled stock
trading companies
5. Air transport- federal aviation act 21 dec 1948- 40% share limit on swiss
air transport companies
6. Commercial flights- absent international agreements, foreign airlines need
legal residence in switzerland to get commercial transport routes
7. " cabotage- only swiss companies
8. " assistance services- swiss only
9. Water transport- vessels can be registered only if majority of capital and
2/3 of voting rights are swiss
10. Mining/ gravel quarries- swiss only
11. Oil- 10 cantonal concord of 24 Sept 1955 limits oil concessions to
companies at least 75% swiss owned; other cantons free to impose similar
limits
12. Nuclear power- swiss only
13. Hydroelectric- fed act 22 dec 1916, rs 721.80- concessions limited to
swiss residents, companies

Turkey

1. Law no. 6224- All sectors- dispute resolution doesn't cover pre-
establishment phase of investment
2. Law 6224- minimum US $50,000 required for foreign investment; authorization
needed for all fi (mainly statistical)
3. All sectors-dispute resolution- Once established, foreign investments are
considered Turkish companies under administrative law and so cannot use
investor to state dispute resolution
4. Medical- only Turkish citizens can be doctors, nurses, pharmacists, vets,
opticians
5. Law no. 2007- only turkish citizens can be peddlers, brokers, musicians,
photographers, typesetters, etc.
6. Land registration act- law 2644- restrictions on foreign land ownership not
needed for business activities
7. Air transport- domestic flights- turkish companies only
8. Maritime transport- cabotage act 815- national flag only for turkish
controlled companies
9. Retail trade- no foreign investors except hypermarkets
10. Real estate- no fi in real estate trading; foreign acquisition of land
outside municipal boundaries is restricted
11. Fishing/ fish processing- fishing law 1380- fi allowed in fish processing
but not fishing
12. Mining- fi in mining only through locally incorporated companies
13. Petroleum- Petroleum law no. 6326- marketing/selling- no restrictions;
exploration/exploitation- no foreign state companies; pipeline/ refining- need
govt approval, must establish turkish branch or company
14. Broadcasting- 3984- each foreign investor limited to investment in one
broadcasting company (up to 20% ownership)
15. Port services/ privatization- turkish only
16. Banking- Act 3182- approval required for establishment and opening of
first branch
17. Financial services- approval required to operate in financial advisory
industry
18. Foreign non banking securities companies can't establish branches
19. Mutual funds- must have turkish subsidiary to offer mutual funds
20. Portfolio agents- require authorization
21. Financial leasing companies- foreign owned get less favorable treatment
than domestic w/ regard to paid in capital
22. Branch manager of foreign insurance company must live in Turkey
23. Insurance-limited to consultancy/ risk management in auxiliary insurance
functions
24. No branches of foreign non bank intermediary institutions
25. Reciprocity for fi in banking and financial services.

United Kingdom

1. Industrial Act of 1975: a never-used provision lets govt block takeovers
against the national interest.
2. Broadcasting act of 1990
3. Civil Aviation Act of 1982; Licensing of Air Carriers Regulations 1992
(particularly licenses for isle of Man, Channel islands)
4. EC Council Reg 2407/92: public transport aircraft can only be owned by EEA
and Commonwealth citizens
5. Cabotage- the Chicago Convention
6. British Airways Articles of Association: 25% foreign equity limit
7. Shipments of military freight can be reserved to national flagged vessels
8. Flag requirements of Merchant Shipping Regulation, 1993
9. Regulation of shipping boats in merchant Shipping Regulations, 1993
10. Defense- Special government shares in British Airways, Rolls Royce,
British Telecom and Cable & Wireless limit foreign shareholdings and
representation on boards of directors
11. Fair trading Act 1973
12. Financial Services Act 1986 and WTO General Agreement on Trade in Services
commitments


United States

"The United States will bind the States and localities under the MAI, as this
submission shows."

1. Land Remote Sensing Act of 1984
2. Reserve right to place reciprocal limits on countries that limit US
investment in cable television
3. Telecom policies on designation of 'recognized private operating agencies'.
(47 CFR 64)
4. Federal Power Act, which restricts to US citizens licenses for development,
transmission of power on federal land
5. Ocean Thermal Conversion Act of 1980
6. Atomic Energy Act of 1954 (42 USC 2011)
7. The Geothermal Steam Act
8. FIFRA (7 USC 136)- agencies may not disclose info to foreign businesses
9. Mineral Lands Leasing Act of 1920 (30 USC 181, 185a)
10. Minority affairs: "The United States reserves the right to adopt or
maintain any measures according rights or preferences to socially or
economically disadvantaged minorities, including corporations organized under
the laws of the state of Alaska in accord with the Alaska Native Claims Act."
11. Overseas Private Investment Corporation, (22 USC 2194a, b; 2198c)- not
available to certain non- citizens
12. Reserves right to place reciprocal limits on countries that restrict US
ownership of daily newspapers
13. Social services: reserve right to have any laws regarding public law
enforcement & corrections, income security or insurance, social security,
social welfare, public education, public training, health and child care
14. Federal Aviation Act of 1958 (49 USC subtitle VII, part A)
15. Another aspect of Federal Aviation Act
16. Land transport: (49 USC 73902, 10530, 10329, 10330, 11705, and Memorandum
of Understanding between US and Mexico on Facilitation of charter/tour Bus
Services, Dec. 3, 1990): need authorization from Dept of transportation to
operate interstate bus/truck services in US)
17. Reserve right to retain and adopt any measures relating to maritime
transport and operation of US flagged vessels
18. Custom brokers must be US citizens
19. Clean Water Act (33 USC 1251) gives municipalities funds for construction;
materials must be made in US
20. Telecom- reserves right to adopt measures on DTH and DBS television and
digital audio
21. Securities Act of 1933 (15 USC 77c): foreign issuers may not use small
business registration forms
22. "All existing non-conforming measures of all States, localities, the
District of Columbia, and the Commonwealth of Puerto Rico."
23. Reserves right to adopt/maintain "any measures relating to subsidies and
grants including government-supported loans, guarantees and insurance."
24. "Any measures relating to government procurement."