Part A – General Exceptions

Article 900: Aboriginal Peoples

1. This Agreement does not apply to any measure adopted or maintained by a Party with respect to Aboriginal peoples. It does not affect existing aboriginal or treaty rights of any of the Aboriginal peoples of Canada under section 35 of the Constitution Act, 1982.
2. For greater certainty, nothing in this Agreement shall prevent a Party from fulfilling its obligations under its treaties with Aboriginal peoples, including land claims agreements.

Article 901: National Security

Nothing in this Agreement shall be construed to:

1. 1. require the Government of Canada to provide, or allow access to, information the disclosure of which it determines to be contrary to national security; or
   2. prevent the Government of Canada from taking any action that it considers necessary to protect national security interests or, pursuant to its international obligations, for the maintenance of international peace and security.

Article 902: Taxation

Except for Article 320 (Prohibited Incentives) and Article 321 (Avoidance of Certain Incentives), this Agreement does not apply to any measure adopted or maintained by a Party relating to taxation or to secure compliance with any measure relating to taxation.

Article 903: Water

1. The Parties recognize that water in its natural state, including water in lakes, rivers, reservoirs, aquifers, and water basins, is not a good or a product. Except for Chapter Six (Environmental Protection), water in its natural state is not subject to the terms of this Agreement.
2. Each Party has the right to protect and preserve its natural water resources. Nothing in this Agreement obliges a Party to permit the commercial use of water for any purpose, including its withdrawal, extraction, or diversion, for export in bulk.
3. If a Party permits the commercial use of a specific water source, it shall do so in a manner consistent with this Agreement.
4. Article 307 (Market Access – Services) and Article 312 (Market Access – Investment) do not apply to any measure adopted or maintained by a Party relating to the collection, distribution, or purification of water.

Article 904: Divestitures

A Party, when selling or disposing of an equity interest in, or the assets of, a government enterprise or a government entity, may prohibit or impose limitations on the ownership of such interests or assets and on the ability of owners of such interests or assets to control a resulting enterprise by investors of a Party or non-Party or their investments.  With respect to such a sale or other disposition, a Party may also adopt or maintain any measure relating to the nationality or residency of senior management or members of the board of directors.

Article 905: Social Services

The Parties reserve the right to adopt or maintain any measure with respect to the provision of public law enforcement and correctional services, and the following services to the extent that they are social services established or maintained for a public purpose: income security or insurance, social security or insurance, social welfare, public education, public training, health, and child care.

Article 906: Tobacco Control Measures

This Agreement does not apply to any measure adopted or maintained by a Party relating to tobacco control.

Article 907: Services Supplies in the Exercise of Governmental Authority

1. Exception for:
   1. Part D of Chapter Three (Special Provisions);
   2. Chapter Five (Government Procurement); and
   3. Chapter Seven (Labour Mobility),

nothing in this Agreement applies to services supplied in the exercise of governmental authority.

2. For the purposes of this Article, a service supplied in the exercise of governmental authority means any service that is not supplied on a commercial basis, or in competition with one or more service suppliers.

Article 908: Language

This Agreement does not apply to any measure adopted or maintained by a Party relating to language, provided that the measure does not constitute a disguised restriction on trade.

Article 909: Culture

This Agreement does not apply to any measure adopted or maintained by a Party with respect to culture or cultural industries.

Article 910: Canadian Citizenship and Permanent Residency Requirements

Except for measures falling within the scope and coverage of Chapter Seven (Labour Mobility), Article 201 (Non-Discrimination) does not apply to any measure adopted or maintained by a Party requiring Canadian citizenship or permanent residency.

Article 911: Gambling and Betting

1. Article 201 (Non-Discrimination) and Article 313 (Performance Requirements) do not apply to:
   1. any existing measure maintained by a Party relating to gambling and betting;
   2. the continuation or prompt renewal of any measure referred to in paragraph (a); or
   3. an amendment to any measure referred to in paragraph (a) to the extent that the amendment does not decrease the conformity of the measure with those obligations as it existed immediately before the amendment.
2. Article 301 (Right of Entry and Exit), Article 307 (Market Access – Services), and Article 312 (Market Access – Investment) do not apply to any measure adopted or maintained by a Party relating to gambling and betting.

Article 912: Collective Marketing

1. Article 307 (Market Access – Services) and Article 312 (Market Access – Investment) do not apply to any measure adopted or maintained by a Party relating to collective marketing arrangements for agricultural goods, including activities such as production, pricing, buying, selling, or any other activity to prepare the product in a form or make it available at a place or time for purchase for consumption or use.
2. Article 301.2 (Right of Entry and Exit) does not apply to:
   1. any measure relating to collective marketing arrangements for poultry and eggs regulated pursuant to the Farm Products Agencies Act (Canada), as amended, and milk and dairy products regulated pursuant to the Canadian Dairy Commission Act (Canada), as amended, and the Agricultural Products Marketing Act (Canada), as amended, adopted or maintained by a Party that restricts or prevents the movement of an agricultural good and relates to the good’s entry into or exit out of that Party’s territory;
   2. any measure relating to collective marketing arrangements not covered under paragraph (a), adopted or maintained by a Party that restricts or prevents the movement of an agricultural good and relates to the good’s exit out of that Party’s territory; or
   3. any existing measure relating to collective marketing arrangements not covered under paragraph (a), maintained by a Party that restricts or prevents the movement of an agricultural good and relates to the entry of the good into that Party’s territory.
3. Article 301.3 (Right of Entry and Exit) does not apply to any measure adopted or maintained by the Government of Canada that restricts or prevents the movement of an agricultural good across provincial or territorial boundaries for the purpose of maintaining collective marketing arrangements.
4. Any Party that establishes a new collective marketing arrangement that may have a significant effect on trade or investment in agricultural goods shall notify the Parties pursuant to Article 402 (Regulatory Notification).
5. If a Party considers that the establishment of a new, or a modification to an existing, collective marketing arrangement of any other Party may adversely affect its trade or investment interests, it may request consultations with that other Party regarding the matter.
6. During the consultations, a Party may request additional information on the collective marketing arrangement of the other Party, including the policy objective supporting the new arrangement or modification of the existing arrangement and measures taken to limit any potential distortive effect on trade or investment.
7. The other Party shall accord full and sympathetic consideration to any representations made by the requesting Party during the consultations and, based on them, shall endeavour to eliminate or minimize any adverse effects on the requesting Party’s trade or investment interests.

Article 913: Passenger Transportation Services

Article 307 (Market Access – Services) and Article 312 (Market Access – Investment) do not apply to any measure adopted or maintained by a Party relating to the transportation of passengers.

Part B – Party-Specific Exceptions

Article 914: Extent of Party-Specific Exceptions

1. Article 201 (Non-Discrimination), Article 301 (Right of Entry and Exit), Article 307 (Market Access – Services), Article 312 (Market Access – Investment), Article 313 (Performance Requirements), Article 803 (Market Access – Financial Services), and paragraph 2 of Annex 309 do not apply to:
   1. any existing non-conforming measure maintained by a Party as set out in that Party’s Schedule to Annex I in Part VII (Party Schedules);
   2. any existing non-conforming measure maintained by a regional, local, district, or other form of municipal government;
   3. the continuation or prompt renewal of any non-conforming measure referred to in paragraph (a) or (b); or
   4. an amendment to any non-conforming measure referred to in paragraph (a) or (b) to the extent that the amendment does not decrease the conformity of the measure, as it existed immediately before the amendment, with Article 201, Article 301, Article 307, Article 312, Article 313, Article 803, and paragraph 2 of Annex 309.
2. Article 201 (Non-Discrimination), Article 301 (Right of Entry and Exit), Article 307 (Market Access – Services), Article 312 (Market Access – Investment), Article 313 (Performance Requirements), Article 803 (Market Access – Financial Services), and any other obligation as identified by a Party, do not apply to any measure that a Party adopts or maintains with respect to the sectors, subsectors, or activities set out in its Schedule to Annex II in Part VII (Party Schedules).
3. For greater certainty, any exception set out in a Party’s Schedules in Part VII (Party Schedules) with respect to any measure relating to agricultural goods or food goods does not apply to that Party’s technical regulations, conformity assessment procedures, standards, or sanitary or phytosanitary measures.
4. Notwithstanding paragraph 3, an exception set out in a Party’s Schedules in Part VII (Party Schedules) with respect to a measure relating to cannabis may apply to that Party’s technical regulations, conformity assessment procedures, standards, or sanitary or phytosanitary measures.
5. “Existing” means, for the purposes of applying paragraphs 1(a) and (b):
   1. 1. in the case of Annex 309, a measure adopted before September 23, 2020; and
      2. In the case of Article 803 (Market Access – Financial Services), a measure adopted before the date of entry into force of the Third Protocol of Amendment.
6. If a Party has set out an exception to Article 307 (Market Access – Services) or Article 312 (Market Access – Investment) in its Schedule to Annex I or II in Part VII (Party Schedules), the exception also constitutes an exception to Article 803 (Market Access – Financial Services), as the case may be, to the extent that the measure, sector, sub-sector, or activity set out in the exception is covered by Chapter Eight (Financial Services).

Article 915: Interpretation of Annexes I and II

1. The Schedule of each Party to Annex I in Part VII (Party Schedules) sets out, pursuant to Article 914.1, the exceptions taken by each Party with respect to existing measures maintained by a Party that do not conform with Article 201 (Non-Discrimination), Article 301 (Right of Entry and Exit), Article 307 (Market Access – Services), Article 312 (Market Access – Investment), Article 313 (Performance Requirements), Article 803 (Market Access – Financial Services), or paragraph 2 of Annex 309.
2. The Schedule of each Party to Annex II in Part VII (Party Schedules) sets out, pursuant to Article 914.2, the exceptions taken by each Party with respect to specific sectors, subsectors, or activities for which it may maintain existing measures or adopt new measures that do not conform with Article 201 (Non-Discrimination), Article 301 (Right of Entry and Exit), Article 307 (Market Access – Services), Article 312 (Market Access – Investment), Article 313 (Performance Requirements), Article 803 (Market Access – Financial Services), or other obligations as identified by a Party.
3. Each exception sets out the following elements:
   1. Sector refers to the general sector in which the exception is taken;
   2. Sub-Sector refers to the specific sector in which the exception is taken;
   3. Industry Classification refers, where applicable, to the activity covered by the exception, as classified in the CPC;
   4. Type of Exception specifies the obligations, referred to in Article 914.1 or Article 914.2, against which the exception is taken;
   5. Measures, in the case of Annex I in Part VII (Party Schedules), identifies the laws, regulations, or other measures (as qualified, where indicated, by the Description element) for which the exception is taken. A measure cited in the Measures element means the measure as amended, continued, or renewed, as of the effective date. Notwithstanding Article 914.1, or the conformity of the subordinate measure with the obligations against which the exception is taken, the exception will also include any subordinate measure that may be adopted or maintained under the authority of the listed measure, provided that the subordinate measure is consistent with the listed measure; and
   6. Description, in the case of Annex I in Part VII (Party Schedules), sets out the non-conforming aspects of the measure for which the exception is taken, and, in the case of Annex II in Part VII, sets out the sector, sub-sector, or activities covered by the exception.
4. Notwithstanding paragraph 3 (c), for the purposes of the Parties’ cannabis-related exceptions, or any subsequent amendment thereof, the following is a list of cannabis-related codes that have been and are to be exclusively used in the Industry Classification and Sub-Sector elements:

• A – Cannabis.
• B – Services incidental to the production of cannabis plants.
• C – Manufacture of cannabis
• D – Wholesale trade services, including on a fee or contract basis.
• E – Retailing services, including on a fee or contract basis.
• F – All other cannabis-related services not covered by B, C, D, and E.
• G – Cannabis accessories.

For purposes of interpreting Parties’ cannabis-related exceptions, the Parties intend that the above provides an exhaustive list of all cannabis-related codes, and notwithstanding any subsequent future developments regarding the classification of cannabis or cannabis accessories under the Harmonized Commodity Description and Coding System.

5. In the interpretation of an exception, all elements of the exception shall be considered and:
   1. the exception shall be interpreted in light of the relevant obligations against which the exception is taken;
   2. in the case of an exception in Annex I in Part VII (Party Schedules), the Measures element shall prevail over all other elements, unless any discrepancy between the Measures element and the other elements considered in their totality is so substantial and material that it would be unreasonable to conclude that the Measures element should prevail, in which case the other elements shall prevail to the extent of that inconsistency; and
   3. in the case of an exception in Annex II in Part VII (Party Schedules), the Description element shall prevail over all other elements.
6. For greater certainty, exceptions set out in a Party’s Schedules in Part VII (Party Schedules) do not limit the ability of a Party to adopt or maintain any measure pursuant to Part A (General Exceptions).

Article 916: Cannabis-Related Party-Specific Exceptions

1. Notwithstanding Article 1211 (Amendments) and Article 1212 (Modifications to Party-Specific Exceptions) , if any amendment to the Cannabis Act (Canada), the Food and Drugs Act (Canada), or any regulations under these Acts, results in the narrowing of the definition of cannabis or cannabis accessory, as defined in Chapter Thirteen, the Parties may amend their cannabis-related exceptions in Part VII, provided that a notice of intent to amend a Party’s cannabis-related exceptions is given to the Secretariat within 60 days of the entry into force of the revised definition.
2. Any future amendment shall not decrease the modifying Party’s conformity with Article 201 (Non-Discrimination), Article 301 (Right of Entry and Exit), Article 307 (Market Access – Services), Article 312 (Market Access – Investment), Article 313 (Performance Requirements), Article 803 (Market Access – Financial Services), or any other obligation as identified by the modifying Party in its cannabisrelated exceptions, as that conformity existed immediately before the amendment to the federal definition of cannabis or cannabis accessory.