WORLD TRADE WT/REG51/1
15January 1998
ORGANIZATION(98-0127)
Original: English Committee onRegional Trade Agreements
THE EUROPEAN COMMUNITIES-POLAND EUROPE AGREEMENT,
SERVICES
Joint Communication from theParties
Standard Format forInformation onEconomic Integration Agreements onServices
Inacommunication dated 23December 1997, theEuropean Communities, alsoonbehalf of
Poland, hastransmitted thefollowing documentation establishing anassociation between theEuropean
Communities andtheirMember States andPoland.
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I. BACKGROUND INFORMATION ONTHE AGREEMENT
1. Membership: Poland, theEuropean Communities andtheirMember States
Dateofsignature: 16December 1991
Entry intoforce: 1February 1994
2. General Description oftheStructure oftheAgreement
The“Europe Agreement ”between Poland andtheEuropean Communities andtheirMember
States isawide-ranging economic integration agreement thatestablishes anAssociation between the
twoParties. Thestated aims oftheAgreement arebothpolitical andeconomic, andinclude the
development ofclosepolitical relations andtheexpansion oftradebetween theParties. TheAgreement
isdesigned asastepping-stone toPoland ’smembership oftheCommunity, andprovides aframework
forthenecessary integration.
TheAgreement isbased upon clearundertakings onliberalisation oftrade andeconomic co-
operation. Inturn, these undertakings arereinforced bypolitical dialogue between thetwoParties at
alllevels, including ministerial andparliamentary dialogue. AnAssociation Council, meeting at
ministerial levelatleastonceayear, ischarged withoverseeing theimplementation oftheAgreement.
Below theleveloftheCouncil, anAssociation Committee anditssub-committees arecharged with
theresponsibility ofassisting theAssociation Council intheperformance ofitsduties. Thetechnical
aspectsoftheimplementationoftheAgreementarediscussedatsectoralsub-committees.Implementation
istobeagreed bytheinstitutions oftheAgreement. Theentire process isreinforced byprovisions
foreconomic co-operation onallmajor issues ofmutual interest.
TheAgreement isapreferential agreement structured around atenyeartransitional period,
divided, inprinciple, intotwostages offiveyears. Bytheendofthetenyearperiod, afreetrade area
forgoods together withaliberalised regime fortheestablishment ofcompanies andnationals between
thetwoPartieswillhavebeenestablished.Thesupplyofserviceswillhavebeenprogressivelyliberalised
during thatperiod.WT/REG51/1
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3. Planandschedule:
Article 1 Aims
TitleI Articles 2-5 Political Dialogue
TitleII Article 6 General Principles
TitleIII Articles 7-36 FreeMovement ofGoods
TitleIV Articles 37-58 MovementofWorkers,Establishment,Supply
ofServices
TitleV Articles 59-70 Payment, Capital, Competition andOther
EconomicProvisions,ApproximationofLaws
TitleVI Articles 71-94 Economic Co-operation
TitleVII Article 95 Cultural Co-operation
TitleVIII Articles 96-101 Financial Co-operation
TitleIX Articles 102-122 Institutional, General andFinal Provisions
4. Relationship oftheAgreement toawider process ofeconomic integration
Poland hasapplied tojointheEuropean Union andtheEurope Agreement provides aframework
forthenecessary preparations, including theremoval oftradebarriers, theharmonisation oflegislation
andliberalisation inthefieldofservices. Membership oftheEuropean Union implies, inparticular
fullparticipation intheEuropean Single Market.
5. Economic andTrade Data
Trade dataattached.
II. PROVISIONS AFFECTING TRADE INSERVICES
1. Sectors orsub-sectors andmodes ofdelivery
TheAgreement provides directly fornational treatment intheareaofestablishment andthe
liberalisation oftrade inservices between theParties invirtually allservices sectors, except those
mentioned under Article 51.Inprinciple, nosector isexcluded from thescope oftheAgreement.
Interms oftimetable, forestablishment, mostservices aretobecovered bytheendofthefirststage,
i.e.afterfiveyears (Article 44).Having regard totheprovisions ofArticle 6establishing atenyear
transitional period, theliberalisation ofthesupply ofservices willtakeplace progressively andthe
Association Council ischarged withtaking thenecessary measures.
Interms ofmodes ofsupply, theliberalisation oftrade inservices doesnotexclude anyof
themodes ofsupply .Itshould benoted thattheAgreement distinguishes between themovement
ofworkers, establishment andthesupply ofservices inlinewiththeprinciples oftheEuropean
Community single market assetoutintheTreaty ofRome, rather thaninterms oftheclassification
ofmodes ofdelivery asusedintheGATS. Articles 55and56provide forcross-border supply and
consumption abroad, Articles 44,48provide forestablishment/commercial presence andArticles 37,
41,42,52,provide forthepresence ofnatural persons.
2. Elimination ofDiscriminatory Measures
TheaimoftheAgreement isliberalisation between theParties and,assuch, itprovides for
theabsenceoreliminationofsubstantiallyalldiscriminationthrougheliminationofexistingdiscriminatory
measures andprohibition ofnewormore discriminatory measures. While thetimetable establishedWT/REG51/1
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forthecomplete elimination ofexisting discriminatory measures isinlinewiththeoverall transitional
period onwhich theAgreement isbased -i.e.10years -many discriminatory measures areprohibited
fromthedateofentry-into-force. Theprinciple articles concerned withtheprohibition ofdiscrimination
areasfollows:
Article 37prohibits discrimination onthebasisofnationality against Polish workers oncethey
areemployed ontheterritory ofanECMember StateandECworkers oncetheyareemployed inPoland
withregard toworking conditions, remuneration orredundancy.
Article 44requires Poland togrant national treatment fortheestablishment andoperation of
ECcompanies andnationals (with some phasing ofsectors). Andrequires theECMember States to
grant national treatment fortheestablishment andoperation ofPolish companies andnationals.
Article 55provides fortheliberalisation ofthesupply ofservices between theParties andthe
temporary movement ofservice suppliers.
Article 56deals withtransport services between Poland andtheEC.Formaritime transport,
theParties undertake toapply theprinciple ofunrestricted access tothemarket andtraffic. Inaddition,
there isastandstill provision covering theprovision oftransport between Poland andtheEC,aswell
asacommitment byPoland tobring itslegislation onairandtransport intolinewithCommunity
legislation. Thisarticle alsocommits theAssociation Council toexamining ways ofcreating the
necessary conditions fortheimprovement oftheprovision ofairandlandtransport services.
Article 111provides fornon-discriminatory access foranatural orlegalperson ofoneParty
tothejudicial system intheother Party inorder todefend theirindividual andproperty rights, including
intellectual, industrial andcommercial property.
Article 113isageneral non-discrimination clause covering thetreatment ofnationals and
companies from bothParties.
3. Restrictions Remaining inForce
Establishment andOperation
Asstated above, theAgreement provides fornational treatment fortheestablishment and
operationofcompaniesandnationalsofthePartiesinallservicessectors.Fromentry-into-force,national
treatment isgranted across allsectors bytheCommunity toPolish companies andnationals forboth
establishment andoperation. National treatment isalsogranted foroperation from entry intoforce
byPoland toCommunity companies andnationals established inPoland. National treatment byPoland
fortheestablishment ofECcompanies andnationals isgranted from theentry intoforce forthe
construction sector. Thistreatment istobeextended within fiveyears toallother services sectors
except forfinancial services, certain legalservices, agency activities forrealestate andnatural resources
andtransport bypipeline. These sectors willallbeliberalised atthelatest bytheendofthesecond
stage (after tenyears).
Attheendofthetransitional period, theonlyremaining restrictions ontheestablishment of
companies andnationals intheservices sector willbeonthetransport sector (airtransport, transport
byinland waterway andmaritime cabotage services) andonthesaleandpurchase ofnatural resources,
agricultural landandforests. TheAssociation Council ischarged withmaking recommendations for
theimprovement ofestablishment andoperations intheabove transport sectors andexamining regularly
thepossibility ofincluding thesaleandpurchase ofnatural resources, agricultural landandforests
among thesectors subject totheAgreements ’provisions onestablishment.WT/REG51/1
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Supply ofServices between theCommunity andPoland
ForthesupplyofservicesbetweenPolandandtheEC,allservicessectorsaretobeprogressively
liberalised within theoverall transitional period setoutinArticle 6oftheAgreement. Transport services
aretreated differently fromother services sectors inthisarea. Forinternational maritime transport,
bothParties make acommitment toapply theprinciple ofunrestricted access tothemarket atentry
intoforce, while forairandinland transport, theParties commit themselves toconcluding separate
agreements toco-ordinate development andprogressively liberalise thesectors. Inaddition, forthese
sectors, theParties undertake toobserve astandstill andPoland commits itselftoadapting itslegislation
tothatoftheECinsofarasitserves liberalisation purposes.
4. Treatment ofServices andService Providers from Third Countries
There arenoprovisions which affect thetreatment ofservices andservice providers fromthird
countries andnomodifications totheschedules ofspecific commitments areproposed. Noprovisions
intheAgreement raisethelevelofrestrictions ontrade inservices foranyother WTO Member.
5. Rules ofOrigin
Article 48oftheAgreement setsoutthedefinition of“Community company ”and“Polish
company ”.A“Community company ”anda“Polish company ”respectively shallmean “acompany
orafirmsetupinaccordance withthelawsofaMember StateorofPoland andhaving itsregistered
office, central administration, orprinciple placeofbusiness intheterritory oftheCommunity orPoland.
However, should thecompany orfirm, setupinaccordance withthelawsofaMember StateorPoland,
haveonlyitsregistered office intheterritory oftheCommunity orPoland, itsoperations mustpossess
arealandcontinuous linkwiththeeconomy ofoneoftheMember States orPoland respectively. ”
Under Article 54,theprovisions oftheAgreement onestablishment andservices arealsoextended
tocompanies jointly owned byPolish andCommunity companies andnationals.
Article 48alsodefines whatismeant byCommunity national andPolish national -“anatural
person whoisanational ofoneoftheMember States orofPoland respectively ”.
Finally, withregard tointernational maritime transport, Article 48alsoextends coverage of
theEstablishment andSupply ofServices Chapters tonationals orshipping companies oftheparties
established outside theParties iftheirvessels areregistered intheMember States orinPoland.
Nochanges havebeenintroduced tothecriteria fordetermining theorigin ofservice suppliers
asaresult oftheAgreement.
6. Standards/Recognition
Article46commitstheAssociationCounciltoexaminingwhatstepsarenecessaryforthemutual
recognition ofqualifications. Articles 68and69commit Poland toensuring thatitslegislation will
begradually made compatible withthatoftheCommunity.
7. Safeguards
Theprovisions intheAgreement concerning theapplication ofasafeguard mechanism donot
provide fortheexclusion ofoneorother Party fromsafeguard measures applied tothirdparties. There
isaprovision intheAgreement relating totheapplication ofexchange restrictions inexceptional
circumstances. Under specified andrestricted circumstances, theimplementation oftheprovisionsWT/REG51/1
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onestablishment incertain sectors maybedelayed asprovided forinArticle 50.Thissafeguard clause
hasnoeffect onservice suppliers from thirdcountries.
8. Subsidies andState-aid
Chapter IIofTitleVtheAgreement setsoutrules onsubsidies, stateaidandcompetition.
Parties maytakeappropriate measures ifaparticular practice isincompatible withthefunctioning of
theAgreement asdefined inArticle 63,ifthepractice causes serious prejudice totheinterest ofthe
other Party, oritsdomestic industry. AsbothParties areWTO Members, anymeasures taken must
becompatible withWTO rules; thisisstated intheAgreement.
9. Government Procurement
Under theterms ofArticle 67,fromentry-into-force oftheAgreement, Polish companies are
granted access tocontract award procedures intheCommunity pursuant toCommunity procurement
rulesunder atreatment nolessfavourable thanthataccorded toCommunity companies. Community
companies established inPoland enjoy theequivalent right, while allCommunity companies willbe
granted thatright, atthelatest bytheendofthetransitional period.
III. GENERAL PROVISIONS OFTHE AGREEMENT
1. Exceptions andreservations
Liberalisation ofestablishment andthesupply ofservices issubject tolimitations justified on
grounds ofpublic policy, public security orpublic health. Activities connected, evenoccasionally,
withtheexercise ofofficial authority arealsoexcluded.
2. Accession
TheMembership oftheAgreement canbeextended onlythrough theaccession ofthirdcountries
totheEuropean Union. Similar Agreements havebeenconcluded withnineother countries inCentral
andEastern Europe, allofwhich haveapplied tojointheEuropean Union.
3. Dispute settlement procedures
Following Article 105,theAssociation Council maysettle adispute relating totheapplication
ofinterpretation oftheAgreement bymeans ofadecision. Intheevent ofthisnotbeing possible,
arbitrators maybeappointed, onebyeachParty andonebytheAssociation Council. TheParties are
bound bydecisions taken either bytheAssociation Council orbythearbitrators. Thedispute settlement
procedures relate solely totheAgreement andhavenoimpact onother dispute settlement procedures
towhich theParties might besubject asaresult ofother international obligations.
4. Institutional framework
Asdescribed above, theAgreement isadministered through theAssociation Council, the
Association Committee anditssub-committees.WT/REG51/1
Page6Geographical Breakdown oftheCurrent Account 1992-1995 (Source: Eurostat)
Reporter: EUR15
Partner: Poland
1992 1993 1994 1995
Credit Debit Net Credit Debit Net Credit Debit Net Credit Debit Net
GOODS 8,708 7,596 1,112 10,703 8,175 2,528 11,619 9,672 1,947 14,368 11,425 2,943
SERVICES 1,368 1,658 -290 1,561 1,707 -146 1,652 2,006 -354 1,819 1,902 -82
Transportation 478 691 -213 415 670 -255 396 988 -592 414 840 -425
SeaTransport 169 211 -42 125 232 -106 125 258 -134 130 206 -76
AirTransport 64 63 1 76 69 8 85 73 12 106 92 15
Other Transportation 244 416 -172 213 370 -156 187 657 -470 178 543 -364
Travel 205 362 -156 279 373 -94 347 351 -4 412 380 33
Other Services 660 596 64 840 655 185 883 648 235 975 670 305
Communication Services 22 27 -4 17 40 -23 21 47 -26 46 73 -27
Construction Services 180 235 -55 109 224 -116 90 158 -68 109 173 -64
Insurance Services 40 17 23 52 25 27 70 25 45 73 13 61
Financial Services 24 7 17 23 7 15 24 6 17 15 9 5
Computer/info. Services 16 7 9 18 7 11 12 8 3 25 10 15
Royalties andLicence Fees 5 10 -5 8 13 -4 50 9 42 75 9 66
Other Business Services 351 250 100 581 285 296 585 329 256 578 323 255
Personal, Cultural andRecreational 12 17 -5 16 15 1 17 19 -2 19 24 -5
Government Services 9 26 -16 16 38 -22 14 46 -32 34 36 -1
Services NotAllocated 25 10 15 27 9 18 26 19 7 18 12 6
INCOME 887 931 -44 769 1,313 -544 964 1,375 -410 606 1,651 -1,046
Compensation ofEmployees 6 471 -465 9 899 -891 10 917 -907 8 1,247 -1,240
Investment Income 880 460 421 761 414 347 954 458 496 598 404 194WT/REG51/1
Page71992 1993 1994 1995
Credit Debit Net Credit Debit Net Credit Debit Net Credit Debit Net
CURRENT TRANSFERS 258 679 -420 392 668 -276 400 761 -361 516 583 -68
CURRENT ACCOUNT 11,221 10,863 357 13,426 11,863 1,562 14,635 16,814 822 17,309 15,562 1,747
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