GENERAL AGREEMENT ON TRADE IN SERVICES

 

 

 

 

Article II

 

Most-Favoured-Nation Treatment

 

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

 

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

 

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

 

 

 

Article V

 

Economic Integration

 

1.         This Agreement shall not prevent any of its Members from being a party to or entering into an agreement liberalizing trade in services between or among the parties to such an agreement, provided that such an agreement:

 

(a)        has substantial sectoral coverage, and

 

(b)       provides for the absence or elimination of substantially all discrimination, in the sense of Article XVII, between or among the parties, in the sectors covered under subparagraph (a), through:

 

(i)           elimination of existing discriminatory measures, and/or

 

(ii)          prohibition of new or more discriminatory measures,

 

either at the entry into force of that agreement or on the basis of a reasonable time-frame, except for measures permitted under Articles XI, XII, XIV and XIV bis.

 

particularly with reference to subparagraph (b) thereof, in accordance with the level of development of the countries concerned, both overall and in individual sectors and subsectors.

 

           

Article VI

 

Domestic Regulation

 

1.         In sectors where specific commitments are undertaken, each Member shall ensure that all measures of general application affecting trade in services are administered in a reasonable, objective and impartial manner.

 

 

Article X

 

Emergency Safeguard Measures

 

1.         There shall be multilateral negotiations on the question of emergency safeguard measures based on the principle of non-discrimination.  The results of such negotiations shall enter into effect on a date not later than three years from the date of entry into force of the WTO Agreement.

 

 

Article XII

 

Restrictions to Safeguard the Balance of Payments

 

1.         In the event of serious balance-of-payments and external financial difficulties or threat thereof, a Member may adopt or maintain restrictions on trade in services on which it has undertaken specific commitments, including on payments or transfers for transactions related to such commitments.  It is recognized that particular pressures on the balance of payments of a Member in the process of economic development or economic transition may necessitate the use of restrictions to ensure, inter alia, the maintenance of a level of financial reserves adequate for the implementation of its programme of economic development or economic transition.

 

Article XIV

 

General Exceptions

 

            Subject to the requirement that such measures are not applied in a manner which would constitute a means of arbitrary or unjustifiable discrimination between countries where like conditions prevail, or a disguised restriction on trade in services, nothing in this Agreement shall be construed to prevent the adoption or enforcement by any Member of measures:

 

(a)        necessary to protect public morals or to maintain public order;

 

(b)       necessary to protect human, animal or plant life or health;

 

(c)        necessary to secure compliance with laws or regulations which are not inconsistent with the provisions of this Agreement including those relating to:

 

(i)           the prevention of deceptive and fraudulent practices or to deal with the effects of a default on services contracts;

 

(ii)          the protection of the privacy of individuals in relation to the processing and dissemination of personal data and the protection of confidentiality of individual records and accounts;

 

(iii)         safety;

 

(d)       inconsistent with Article XVII, provided that the difference in treatment is aimed at ensuring the equitable or effective imposition or collection of direct taxes in respect of services or service suppliers of other Members;

 

(e)        inconsistent with Article II, provided that the difference in treatment is the result of an agreement on the avoidance of double taxation or provisions on the avoidance of double taxation in any other international agreement or arrangement by which the Member is bound.

 

Article XV

 

Subsidies

 

1.         Members recognize that, in certain circumstances, subsidies may have distortive effects on trade in services.  Members shall enter into negotiations with a view to developing the necessary multilateral disciplines to avoid such trade-distortive effects.  The negotiations shall also address the appropriateness of countervailing procedures.  Such negotiations shall recognize the role of subsidies in relation to the development programmes of developing countries and take into account the needs of Members, particularly developing country Members, for flexibility in this area.  For the purpose of such negotiations, Members shall exchange information concerning all subsidies related to trade in services that they provide to their domestic service suppliers.

 

2.         Any Member which considers that it is adversely affected by a subsidy of another Member may request consultations with that Member on such matters.  Such requests shall be accorded sympathetic consideration.

 

 

PART III

 

SPECIFIC COMMITMENTS

 

 

Article XVI

 

Market Access

 

1.         With respect to market access through the modes of supply identified in Article I, each Member shall accord services and service suppliers of any other Member treatment no less favourable than that provided for under the terms, limitations and conditions agreed and specified in its Schedule.[1]

 

Article XVII

 

National Treatment

 

1.         In the sectors inscribed in its Schedule, and subject to any conditions and qualifications set out therein, each Member shall accord to services and service suppliers of any other Member, in respect of all measures affecting the supply of services, treatment no less favourable than that it accords to its own like services and service suppliers.

 

Article XIX

 

Negotiation of  Specific Commitments

 

1.         In pursuance of the objectives of this Agreement, Members shall enter into successive rounds of negotiations, beginning not later than five years from the date of entry into force of the WTO Agreement and periodically thereafter, with a view to achieving a progressively higher level of liberalization.  Such negotiations shall be directed to the reduction or elimination of the adverse effects on trade in services of measures as a means of providing effective market access.  This process shall take place with a view to promoting the interests of all participants on a mutually advantageous basis and to securing an overall balance of rights and obligations.

 

 

Article XX

 

Schedules of Specific Commitments

 

1.         Each Member shall set out in a schedule the specific commitments it undertakes under Part III of this Agreement.  With respect to sectors where such commitments are undertaken, each Schedule shall specify:

 

(a)        terms, limitations and conditions on market access;

 

            (b)       conditions and qualifications on national treatment;

 

            (c)        undertakings relating to additional commitments;

 

(d)       where appropriate the time-frame for implementation of such commitments;  and

 

            (e)        the date of entry into force of such commitments.

 

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

 

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

 

 

Article XXI

 

Modification of Schedules

 

1.         (a)        A Member (referred to in this Article as the "modifying Member") may modify or withdraw any commitment in its Schedule, at any time after three years have elapsed from the date on which that commitment entered into force, in accordance with the provisions of this Article.

 

            (b)       A modifying Member shall notify its intent to modify or withdraw a commitment pursuant to this Article to the Council for Trade in Services no later than three months before the intended date of implementation of the modification or withdrawal.