Unit 12 Trade in ServicesUnit 12 Trade in ServicesText GATS and the Services LiberalizationⅠText GATS and the Services LiberalizationⅠ

-To have an overview of GATS, mainly the str-To have an overview of GATS, mainly the structure of the Agreement and benefits of services liucture of the Agreement and benefits of services liberalizationberalization

Text Specific Commitments under GATSⅡText Specific Commitments under GATSⅡ-To learn the meaning, significance of specifi-To learn the meaning, significance of specifi

c commitments under GATS; the format and termic commitments under GATS; the format and terminology used in a schedule of specific commitmentnology used in a schedule of specific commitmentss

Typical Sentence Patterns: Typical Sentence Patterns: litigation instrumentslitigation instruments (II) (II)

TextⅠ GATS and the Services LiberalizationTextⅠ GATS and the Services Liberalization

Useful expressions: accord (n.& v.), notwithstanding (prep., adUseful expressions: accord (n.& v.), notwithstanding (prep., adv., conj.), assume…level of obligation, make/undertake comv., conj.), assume…level of obligation, make/undertake commitments, set limitations (on sth.), withdraw commitments, trmitments, set limitations (on sth.), withdraw commitments, trading partner, take exemptions from, in line with, put an end ading partner, take exemptions from, in line with, put an end to (prep.), under the burden of, access to (prep.), service(s)/to (prep.), under the burden of, access to (prep.), service(s)/goods sector/market, goods sector/market, market access market access ，， a precondition for, a precondition for, supply inputs for, spur (n.& v.), to the detriment of, cf. withousupply inputs for, spur (n.& v.), to the detriment of, cf. without detriment to , provision of services, capitalize on, services lit detriment to , provision of services, capitalize on, services liberalization, building onberalization, building on ，， not least, work one’s way (into), bnot least, work one’s way (into), be outweighed by, quality gain, on…ground(s), in marked cone outweighed by, quality gain, on…ground(s), in marked contrast to/with, take-off, amount to (prep.), under stable condititrast to/with, take-off, amount to (prep.), under stable conditions, give sb. with a stake in / have a stake in, plan with greaons, give sb. with a stake in / have a stake in, plan with greater certainty, spill over intoter certainty, spill over into

Terms: schedule of commitments, air traffic rights, 12 serviceTerms: schedule of commitments, air traffic rights, 12 service(s) sectors, 4 modes of supply, FDI(s) sectors, 4 modes of supply, FDI

Proper names: GATS, North-South controversy, Uruguay RounProper names: GATS, North-South controversy, Uruguay Roundd

Major contents of Text IMajor contents of Text I

1.General information of GATS: effective date, and significanc1.General information of GATS: effective date, and significancee

2. Structure of GATS:2. Structure of GATS:--two parts:two parts:1) text of the Agreement - its Articles and Annexes1) text of the Agreement - its Articles and Annexes2) 2) schedules of specific commitments undertaken schedules of specific commitments undertaken by Wby WTO MembersTO Members

33. 2 exceptions in GATS. 2 exceptions in GATS

4. 4 main elements of flexibility4. 4 main elements of flexibility

5. Necessity and benefits of service liberalization 5. Necessity and benefits of service liberalization

Objectives of GATSObjectives of GATS1. Progressive liberalization of trade in services 1. Progressive liberalization of trade in services

The GATS is designed to secure progressively higher The GATS is designed to secure progressively higher levels of liberalization of trade in services through levels of liberalization of trade in services through successive rounds of negotiations, which should aim at successive rounds of negotiations, which should aim at promoting the interests of all Members of the WTO and at promoting the interests of all Members of the WTO and at achieving an overall balance of rights and obligations.achieving an overall balance of rights and obligations.

2. Promoting economic growth and development 2. Promoting economic growth and development Through liberalization of trade in services the GATS Through liberalization of trade in services the GATS

will promote economic growth and the development of will promote economic growth and the development of developing countries, as the GATT does through the developing countries, as the GATT does through the liberalization of trade in goods.liberalization of trade in goods.

3. Increasing participation of developing countries3. Increasing participation of developing countriesThe GATS helps developing countries to take a The GATS helps developing countries to take a

growing part in world trade in services and to expand their growing part in world trade in services and to expand their services exports. It aims at developing their export capacity services exports. It aims at developing their export capacity and securing export opportunities.and securing export opportunities.

Structure of GATSStructure of GATS

Like the GATT, the GATS is structured in two parts. Like the GATT, the GATS is structured in two parts. The first part is The first part is the text of the Agreementthe text of the Agreement - its Articles and A - its Articles and Annexes. The second part is nnexes. The second part is the schedules of specific commithe schedules of specific commitmentstments undertaken by WTO Members. The schedules are a undertaken by WTO Members. The schedules are an integral part of the Agreement, as tariff schedules are an in integral part of the Agreement, as tariff schedules are an integral part of the GATT. While the text of the Agreement antegral part of the GATT. While the text of the Agreement applies uniformly to all Members of the WTO, the scheduling pplies uniformly to all Members of the WTO, the scheduling of commitments is decided by the Member concerned, subjof commitments is decided by the Member concerned, subject to negotiation and agreement with other Members. It is ect to negotiation and agreement with other Members. It is a principlea principle of the Agreement that each Member may undert of the Agreement that each Member may undertake specific commitments in a manner commensurate with iake specific commitments in a manner commensurate with its level of development; it is thus accepted that ts level of development; it is thus accepted that developing cdeveloping countriesountries are likely to accept a narrower range of commitmen are likely to accept a narrower range of commitments than their industrialized partners. ts than their industrialized partners.

6 Parts of the text of GATS6 Parts of the text of GATS

I.I. Scope and Definition (Article I)Scope and Definition (Article I)

II.II. General Obligations (Articles II to XV)General Obligations (Articles II to XV)

III.III. Specific Commitments (Articles XVI to XIII)Specific Commitments (Articles XVI to XIII)

IV.IV. Progressive Liberalization (Articles XIX to XXI) Progressive Liberalization (Articles XIX to XXI)

V.V. Institutional Provisions (Articles XXII to XXVI)Institutional Provisions (Articles XXII to XXVI)

VI.VI. Final Provisions (Articles XXVII to XXIX) Final Provisions (Articles XXVII to XXIX)

Definition of "trade in services"Definition of "trade in services"

The GATS does not define “services” but doeThe GATS does not define “services” but does define “trade in services”. The definition covers ns define “trade in services”. The definition covers not only the ot only the cross-border supply of servicescross-border supply of services but also but also transactions involving the transactions involving the cross-border movement cross-border movement of capital and labourof capital and labour. .

Paragraph 2 of Article I of the GATS defines Paragraph 2 of Article I of the GATS defines “trade in services” as the supply of a service throug“trade in services” as the supply of a service through any of h any of four modes of supplyfour modes of supply..

Article I Scope and DefinitionArticle I Scope and Definition

2.       For the purposes of this Agreement, trade in 2.       For the purposes of this Agreement, trade in services is defined as the supply of a service:services is defined as the supply of a service:(a)       from the territory of one Member into the (a)       from the territory of one Member into the territory of any other Member;territory of any other Member;(b)       in the territory of one Member to the service (b)       in the territory of one Member to the service consumer of any other Member;consumer of any other Member;(c)        by a service supplier of one Member, through (c)        by a service supplier of one Member, through commercial presence in the territory of any other commercial presence in the territory of any other Member;Member;(d) by a service supplier of one Member, through (d) by a service supplier of one Member, through presence of natural persons of a Member in the presence of natural persons of a Member in the territory of any other Member.territory of any other Member.

服务贸易总协定的独特之处在于它并没有对服务贸易总协定的独特之处在于它并没有对“服务”进行定义，而是直接界定了服务贸易“服务”进行定义，而是直接界定了服务贸易 (trade i(trade in services)n services) 的四种交易模式的四种交易模式 (modes of supply)(modes of supply) 。。

服务贸易总协定第一条第服务贸易总协定第一条第 22 款规定：“在本协款规定：“在本协定中，服务贸易定义为：定中，服务贸易定义为：

(a)(a) 在一成员境内将服务提供至任何其他成员境内；在一成员境内将服务提供至任何其他成员境内；(b)(b) 在一成员境内，向其他成员在该成员境内的服务消费在一成员境内，向其他成员在该成员境内的服务消费

者提供服务；者提供服务；(c)(c) 一成员的服务提供者通过其在其他成员境内的商业存一成员的服务提供者通过其在其他成员境内的商业存

在提供服务在提供服务 ;;

(d)(d) 一成员的服务提供者通过其派往其他成员的自然人提一成员的服务提供者通过其派往其他成员的自然人提供服务。 供服务。

4 modes of supply under GATS4 modes of supply under GATS Cross-border supplyCross-border supply （跨境支付）（跨境支付） - the possibility for non-- the possibility for non-

resident service suppliers to supply services cross-border intresident service suppliers to supply services cross-border into the Member‘s territory. o the Member‘s territory.

Consumption abroadConsumption abroad （（境外消费境外消费）） - the freedom for the - the freedom for the Member‘s residents to purchase services in the territory of aMember‘s residents to purchase services in the territory of another Member. nother Member.

Commercial presenceCommercial presence （（商业存在商业存在）） - the opportunities for - the opportunities for foreign service suppliers to establish, operate or expand a cforeign service suppliers to establish, operate or expand a commercial presence in the Member‘s territory, such as a braommercial presence in the Member‘s territory, such as a branch, agency, or wholly-owned subsidiary.nch, agency, or wholly-owned subsidiary.

Presence of natural personsPresence of natural persons （（自然人流动自然人流动）） - the possibil- the possibil

ities offered for the entry and temporary stay in the Memberities offered for the entry and temporary stay in the Member‘s territory of foreign individuals in order to supply a service.‘s territory of foreign individuals in order to supply a service.

12 broad sectors 12 broad sectors under GATSunder GATS1.1. Business; Business; 2.2. Communications; Communications; 3.3. Construction and Engineering; Construction and Engineering; 4.4. Distribution; Distribution; 5.5. Education; Education; 6.6. Environment; Environment; 7.7. Financial; Financial; 8.8. Health; Health; 9.9. Tourism and Travel; Tourism and Travel; 10.10. Recreation, Cultural and Sporting; Recreation, Cultural and Sporting; 11.11. Transport; Transport; 12.12. "Other". "Other".

Article II Most-Favoured-Nation TreatmentArticle II Most-Favoured-Nation Treatment

1. With respect to any measure covered by this Agreement, 1. With respect to any measure covered by this Agreement, each Member shall accord immediately and unconditionalleach Member shall accord immediately and unconditionally to services and service suppliers of any other Member try to services and service suppliers of any other Member treatment eatment no less favourableno less favourable than that it accords to like serv than that it accords to like services and service suppliers of any other country.ices and service suppliers of any other country.

2. A Member may maintain a measure inconsistent with para2. A Member may maintain a measure inconsistent with paragraph 1 provided that such a measure is listed in, and megraph 1 provided that such a measure is listed in, and meets the conditions of, ets the conditions of, the Annex on Article II Exemptionsthe Annex on Article II Exemptions..

3. The provisions of this Agreement shall not be so construe3. The provisions of this Agreement shall not be so construed as to prevent any Member from conferring or according d as to prevent any Member from conferring or according advantages to adjacent countries in order to facilitate exchadvantages to adjacent countries in order to facilitate exchanges limited to contiguous frontier zones of services that anges limited to contiguous frontier zones of services that are both locally produced and consumed.are both locally produced and consumed.

TermsTerms

schedule of commitments schedule of commitments 具体承诺（减让）表具体承诺（减让）表

air traffic rights air traffic rights 空中交通权、航空权 、航权空中交通权、航空权 、航权

12 service(s) sectors 1212 service(s) sectors 12 个国际服务贸易部门（包括个国际服务贸易部门（包括1111 大部门和其它）大部门和其它）

4 modes of supply 4 modes of supply 国际服务贸易国际服务贸易 44 种方式种方式

FDI FDI (foreign direct investment) (foreign direct investment) 外国直接投资外国直接投资

Proper namesProper namesGATS (the General Agreement on Trade in Services)GATS (the General Agreement on Trade in Services)

《服务贸易总协定》 《服务贸易总协定》 -Annex 1B of the Marrakesh Agreement Establishing the W-Annex 1B of the Marrakesh Agreement Establishing the World Trade Organization: Preamble & 6 Parts (29 Articles) & orld Trade Organization: Preamble & 6 Parts (29 Articles) & AnnexesAnnexesSee the text at See the text at http://www.wto.org/english/thewto_e/whatis_e/eol/e/wto06/wto6_6.htmhttp://www.wto.org/english/thewto_e/whatis_e/eol/e/wto06/wto6_6.htm

See the translation atSee the translation at http://www.jincao.com/t.90.htmhttp://www.jincao.com/t.90.htm

Cf. Cf. GATT (the General Agreement on Tariffs and TraGATT (the General Agreement on Tariffs and Trade)de) 《关税与贸易总协定》《关税与贸易总协定》GATT: regulating international trade in goods; GATGATT: regulating international trade in goods; GATS: regulating international trade in servicesS: regulating international trade in services

the North-South controversy the North-South controversy 南北争议南北争议

Text Ⅱ Specific Commitments under Text Ⅱ Specific Commitments under GATSGATS

specific commitments specific commitments 具体承诺具体承诺horizontal commitments horizontal commitments 水平承诺水平承诺market access market access 市场准入市场准入national treatment national treatment 国民待遇国民待遇none none 没有限制没有限制unbound unbound 不作承诺不作承诺tariff binding tariff binding 关税约束 关税约束 non-violation complaint non-violation complaint 非违约之诉 非违约之诉 (GATS: Art. 23 (GATS: Art. 23

(3))(3))

Text Ⅱ Specific CommitmentsText Ⅱ Specific Commitments

UN CUN Central Product Classification entral Product Classification 联合国产品中央分类制度联合国产品中央分类制度

OECD (Organization for Economic Co-operation and DevelopOECD (Organization for Economic Co-operation and Development) ment) 经合组织，经济合作与发展组织经合组织，经济合作与发展组织—— 由主要西方发达国家于由主要西方发达国家于 19611961 年年 99 月月 3030 日成立的政府间的日成立的政府间的经济协调机构，总部设在巴黎。经济协调机构，总部设在巴黎。

DSB (Dispute Settlement Body) DSB (Dispute Settlement Body) （（ WTOWTO ）争端解决机构 ）争端解决机构

中国商务部世贸司 中国商务部世贸司 http://sms.mofcom.gov.cn/http://sms.mofcom.gov.cn/ 中国商务部中国商务部 WTOWTO 咨询网 咨询网 http://chinawto.mofcom.gov.cn/http://chinawto.mofcom.gov.cn/中国加入世界贸易组织法律文件中国加入世界贸易组织法律文件

http://www.mofcom.gov.cn/aarticle/zhongyts/ar/200207/200http://www.mofcom.gov.cn/aarticle/zhongyts/ar/200207/20020700032358.html20700032358.html

Introduction to Introduction to Specific CommitmentsSpecific Commitments

Specific commitments under the GATS are registered iSpecific commitments under the GATS are registered in schedules. Each Member of the WTO is required to have a sn schedules. Each Member of the WTO is required to have a schedule in which it registers its commitments to provide chedule in which it registers its commitments to provide markemarket access and national treatmentt access and national treatment to services and service suppli to services and service suppliers of other Members. When making a commitment, a Membeers of other Members. When making a commitment, a Member binds the level of market access and national treatment specir binds the level of market access and national treatment specified in the schedule and undertakes not to impose any new mfied in the schedule and undertakes not to impose any new measures that would restrict entry into the market or discriminateasures that would restrict entry into the market or discriminate in favour of services or services suppliers of national origin. e in favour of services or services suppliers of national origin.

A specific commitment thus has an effect A specific commitment thus has an effect similar to a tasimilar to a tariff binding under the GATTriff binding under the GATT. Commitments can only be withdra. Commitments can only be withdrawn or modified after negotiation and agreement with other Mewn or modified after negotiation and agreement with other Members on a compensatory adjustment through which the modifmbers on a compensatory adjustment through which the modifying Member offers alternative commitments. However, new cying Member offers alternative commitments. However, new commitments and improvements to existing ones can be added ommitments and improvements to existing ones can be added at any time. at any time.

Schedules of CommitmentsSchedules of Commitments All schedules conform to a standard formula which is All schedules conform to a standard formula which is

intended to facilitate comparative analysis. For intended to facilitate comparative analysis. For each sector or each sector or sub-sectorsub-sector inscribed, the schedule must indicate, with respect inscribed, the schedule must indicate, with respect to to the four modes of supplythe four modes of supply set out in Article I (2), set out in Article I (2), any any limitations on market access or national treatmentlimitations on market access or national treatment which are to which are to be maintained. be maintained.

A commitment therefore consists of entries which A commitment therefore consists of entries which indicate the presence or absence of market access and/or indicate the presence or absence of market access and/or national treatment limitations with respect to each mode of national treatment limitations with respect to each mode of supply. The first column in the standard format contains the supply. The first column in the standard format contains the sector or sub-sector which is the subject of the commitment; sector or sub-sector which is the subject of the commitment; the second column contains limitations on market access; the the second column contains limitations on market access; the third column contains limitations on national treatment. In the third column contains limitations on national treatment. In the fourth column, a Member may enter any additional fourth column, a Member may enter any additional commitments relating to matters which are not subject to commitments relating to matters which are not subject to scheduling under market access or national treatment. The scheduling under market access or national treatment. The terminology used in schedules has been standardized terminology used in schedules has been standardized wherever possible. wherever possible.

Article XX: Schedules of Specific Article XX: Schedules of Specific

Commitments Commitments  1.         Each Member shall set out in a schedule the specific 1.         Each Member shall set out in a schedule the specific

commitments it undertakes under Part III of this commitments it undertakes under Part III of this Agreement.  With respect to sectors where such Agreement.  With respect to sectors where such commitments are undertaken, each Schedule shall specify:commitments are undertaken, each Schedule shall specify:(a)        terms, limitations and conditions on market access;(a)        terms, limitations and conditions on market access;(b)        conditions and qualifications on national treatment;(b)        conditions and qualifications on national treatment;(c)        undertakings relating to additional commitments;(c)        undertakings relating to additional commitments;(d)        where appropriate the time-frame for (d)        where appropriate the time-frame for implementation of such commitments;  andimplementation of such commitments;  and(e)        the date of entry into force of such commitments.(e)        the date of entry into force of such commitments.

2.         Measures inconsistent with both Articles XVI and XVII 2.         Measures inconsistent with both Articles XVI and XVII shall be inscribed in the column relating to Article XVI.  In shall be inscribed in the column relating to Article XVI.  In this case the inscription will be considered to provide a this case the inscription will be considered to provide a condition or qualification to Article XVII as well.condition or qualification to Article XVII as well.

3.         Schedules of specific commitments shall be annexed 3.         Schedules of specific commitments shall be annexed to this Agreement and shall form an integral part thereof.to this Agreement and shall form an integral part thereof.

Horizontal CommitmentsHorizontal Commitments In nearly all schedules, commitments are diviIn nearly all schedules, commitments are divi

ded into two sections: "horizontal" and "sector-specded into two sections: "horizontal" and "sector-specific" commitments. The horizontal section contains lific" commitments. The horizontal section contains limitations which apply to all sectors included in the imitations which apply to all sectors included in the schedule. These often refer to particular modes of schedule. These often refer to particular modes of supply, notably commercial presence and movemesupply, notably commercial presence and movement of natural persons. The only purpose of having a nt of natural persons. The only purpose of having a section for horizontal commitments is to avoid repesection for horizontal commitments is to avoid repeating the same entry in relation to each sector contating the same entry in relation to each sector contained in the schedule. Any evaluation of sector-speained in the schedule. Any evaluation of sector-specific commitments must therefore take into account cific commitments must therefore take into account the horizontal entries. the horizontal entries.

Commitments relating to Sectors and/or Commitments relating to Sectors and/or

Sub-SectorsSub-Sectors In the sector-specific section of a schedule, commitIn the sector-specific section of a schedule, commit

ments are inscribed in relation to the description of a sector ments are inscribed in relation to the description of a sector or a sub-sector of the first column. In the majority of scheduor a sub-sector of the first column. In the majority of schedules, sectors and sub-sectors are listed according to the sectles, sectors and sub-sectors are listed according to the sectoral classification list developed by the Secretariat and contoral classification list developed by the Secretariat and contained in document MTN.GNS/W/120ained in document MTN.GNS/W/120 （（ GATSGATS 服务部门分类表服务部门分类表 ）） . .

The list contains 12 broad sectors. These are: 1. BuThe list contains 12 broad sectors. These are: 1. Business; 2. Communications; 3. Construction and Engineerinsiness; 2. Communications; 3. Construction and Engineering; 4. Distribution; 5. Education; 6. Environment; 7. Financial;g; 4. Distribution; 5. Education; 6. Environment; 7. Financial; 8. Health; 9. Tourism and Travel; 10. Recreation, Cultural 8. Health; 9. Tourism and Travel; 10. Recreation, Cultural and Sporting; 11. Transport; 12 "Other". In most cases, secand Sporting; 11. Transport; 12 "Other". In most cases, sectoral entries are accompanied by numerical references to ittoral entries are accompanied by numerical references to items of the Central Product Classification (CPC) system of tems of the Central Product Classification (CPC) system of the United Nations, which gives a detailed explanation of thhe United Nations, which gives a detailed explanation of the service activities covered by each listed sector or sub-sece service activities covered by each listed sector or sub-sector. tor.

Market AccessMarket Access

When a Member undertakes a commitment it When a Member undertakes a commitment it must indicate for each mode of supply what limitatimust indicate for each mode of supply what limitations, if any, it maintains on market access. ons, if any, it maintains on market access. Article XArticle XVI:2 of the GATSVI:2 of the GATS lists six categories of restrictions lists six categories of restrictions which may not be adopted or maintained unless thwhich may not be adopted or maintained unless they are specified in the schedule. All scheduled limitey are specified in the schedule. All scheduled limitations on market access therefore must fall into onations on market access therefore must fall into one of these categories. e of these categories.

所谓市场准入所谓市场准入 (market access)(market access) ，是一种需要通，是一种需要通过谈判达成协议才承担的义务。过谈判达成协议才承担的义务。 GATSGATS 第第 1616 条规定：条规定：任何成员对于来自其他成员的服务和服务提供者，都任何成员对于来自其他成员的服务和服务提供者，都必须给予必须给予不低于不低于其他具体承诺减让表中列明的待遇。其他具体承诺减让表中列明的待遇。

关于服务贸易市场准入的规定，包括：第一，关于服务贸易市场准入的规定，包括：第一，每一成员应当按照其提交的承诺表所指明的有关服务每一成员应当按照其提交的承诺表所指明的有关服务部门开放期限、限制和条件为另一成员提供市场准入部门开放期限、限制和条件为另一成员提供市场准入待遇。第二，每一成员在其承担市场准入义务的服务待遇。第二，每一成员在其承担市场准入义务的服务部门中，除非在承诺表中有特别规定，不应采取或继部门中，除非在承诺表中有特别规定，不应采取或继续以下续以下 66 种影响市场准入的措施，即：对服务者数量种影响市场准入的措施，即：对服务者数量的限制；对服务交易和资产总值的限制；对服务业务的限制；对服务交易和资产总值的限制；对服务业务总数和服务产出总量的限制；对特定服务部门或服务总数和服务产出总量的限制；对特定服务部门或服务提供者可以雇佣人数的限制；限制或要求通过特定类提供者可以雇佣人数的限制；限制或要求通过特定类型的法律实体或者合营企业形式提供服务；对外国资型的法律实体或者合营企业形式提供服务；对外国资本的参与比例限制或对外国资本投入总额的限制。 本的参与比例限制或对外国资本投入总额的限制。

National TreatmentNational Treatment The national treatment obligation unThe national treatment obligation un

der der Article XVIIArticle XVII requires Members to acco requires Members to accord to rd to services and service suppliersservices and service suppliers of an of any Member treatment y Member treatment no less favourableno less favourable th than that it accords to services and service an that it accords to services and service suppliers of national origin. A Member wisuppliers of national origin. A Member wishing to maintain measures providing moshing to maintain measures providing more favourable treatment of nationals must re favourable treatment of nationals must inscribe these limitations in the third coluinscribe these limitations in the third column of its schedule.mn of its schedule.

Additional CommitmentsAdditional Commitments According to According to Article XVIIIArticle XVIII, If a Member , If a Member

decides to undertake any commitments decides to undertake any commitments relating to measures other than those relating to measures other than those subject to scheduling under market access subject to scheduling under market access or national treatment, for example, relating or national treatment, for example, relating to qualification requirements, technical to qualification requirements, technical standards and licensing requirements, they standards and licensing requirements, they should be inscribed as additional should be inscribed as additional commitments in the fourth column of the commitments in the fourth column of the schedule. schedule.

How commitments are recorded in How commitments are recorded in

schedulesschedules

In essence, the entries which In essence, the entries which constitute a legally binding commitment in a constitute a legally binding commitment in a Member’s schedule indicate the presence Member’s schedule indicate the presence or absence of limitations on market access or absence of limitations on market access and national treatment in relation to each of and national treatment in relation to each of the four modes of supply for a listed sector, the four modes of supply for a listed sector, sub-sector or activity. sub-sector or activity.

Terminology: NONETerminology: NONE

Where there are no limitations on Where there are no limitations on market access or national treatment in a market access or national treatment in a given sector and mode of supply, the entry given sector and mode of supply, the entry reads reads NONENONE. However, it should be noted . However, it should be noted that when the term NONE is used in the that when the term NONE is used in the second or sector-specific part of the second or sector-specific part of the schedule it means that there are no schedule it means that there are no limitations limitations specific to this sectorspecific to this sector: it must be : it must be borne in mind that, as noted above, there borne in mind that, as noted above, there may be relevant horizontal limitations in the may be relevant horizontal limitations in the first part of the schedule. first part of the schedule.

UNBOUNDUNBOUND

All commitments in a schedule are bound unless All commitments in a schedule are bound unless otherwise specified. In such a case, where a Member otherwise specified. In such a case, where a Member wishes to remain free in a given sector and mode of wishes to remain free in a given sector and mode of supply to introduce or maintain measures inconsistent supply to introduce or maintain measures inconsistent with market access or national treatment, the Member with market access or national treatment, the Member has entered in the appropriate space the term has entered in the appropriate space the term UNBOUND.UNBOUND.

In some situations a particular mode of supply - In some situations a particular mode of supply - such as the cross-border supply of bridge-building such as the cross-border supply of bridge-building services - may not be technically possible or feasible. services - may not be technically possible or feasible. In such cases the term UNBOUND* has been used, In such cases the term UNBOUND* has been used, usually in conjunction with an explanatory footnote usually in conjunction with an explanatory footnote stating “Unbound due to lack of technical feasibility”. stating “Unbound due to lack of technical feasibility”.

Textual descriptionsTextual descriptionsIn many cases it will be seen that there are In many cases it will be seen that there are

textual descriptions of bound commitmentstextual descriptions of bound commitments which which indicate limitations on market access or national indicate limitations on market access or national treatment. Such entries, which vary in length treatment. Such entries, which vary in length considerably, do not use uniform terminology but are considerably, do not use uniform terminology but are based on one of two based on one of two common approachescommon approaches: : The entry describes in the appropriate space the nature of The entry describes in the appropriate space the nature of

the limitation, indicating the elements which make it the limitation, indicating the elements which make it inconsistent with Articles XVI and XVII of the GATS. inconsistent with Articles XVI and XVII of the GATS.

In some cases, Members have chosen to indicate a limited In some cases, Members have chosen to indicate a limited commitment by describing what they are offering rather commitment by describing what they are offering rather than the limitations they are maintaining. Such an than the limitations they are maintaining. Such an approach is often used to indicate the market access approach is often used to indicate the market access opportunities for the entry of certain categories of foreign opportunities for the entry of certain categories of foreign natural persons who supply services. natural persons who supply services.

Lists of Article II (MFN) ExemptionsLists of Article II (MFN) Exemptions Most-favoured-nation treatment is a general Most-favoured-nation treatment is a general

obligation that applies to all measures affecting traobligation that applies to all measures affecting trade in services. However, it has been agreed that pde in services. However, it has been agreed that particular measures inconsistent with the MFN obligarticular measures inconsistent with the MFN obligation can be maintained — in principle for not more ation can be maintained — in principle for not more than ten years and subject to review after not more than ten years and subject to review after not more than five years. Such measures must have been spthan five years. Such measures must have been specified in a list of MFN Exemptions submitted by thecified in a list of MFN Exemptions submitted by the end of the Uruguay Round of Multilateral Trade Ne end of the Uruguay Round of Multilateral Trade Negotiations or by the conclusion of extended negotiegotiations or by the conclusion of extended negotiations on certain sectors for which the delayed subations on certain sectors for which the delayed submission of related exceptions was expressly authormission of related exceptions was expressly authorized. Subsequently, requests for exemptions from ized. Subsequently, requests for exemptions from Article II (MFN) can only be granted under the waivArticle II (MFN) can only be granted under the waiver procedures of the Marrakesh Agreement.er procedures of the Marrakesh Agreement.