RESTRICTED
WORLD TRADE S/FIN/W/12/Add.5/Rev.1
9December 1997
ORGANIZATION(97-5393)
Original: English Committee onTrade inFinancial Services
COMMUNICATION FROM THE UNITED STATES OFAMERICA
Revised Conditional Offer onFinancial Services
Revision
Thefollowing communication iscirculated attherequest oftheUnited States toMembers of
theCommittee onTrade inFinancial Services.
_______________
TheUnited States ofAmerica hereby submits arevised conditional offer toundertake
improvements toits28July1995 schedule ofcommitments infinancial services under theGeneral
Agreement onTrade inServices.
Thisrevised offerunderscores thefullcommitment oftheUnited States toreach asuccessful
conclusion totheWTO financial services negotiations. Itisnowuptoourtrading partners to
demonstrate theircommitment byputting forward significantly improved offers inthedaysahead.
Therevised USoffer, accordingly, isconditioned upon other negotiating parties undertaking
comprehensive commitments topreserve foreign firms'existing ownership andactivities, andtoprovide
substantiallyfullmarketaccessandnationaltreatmentonanMFN-basisintheirfinancialservicessectors.
Incertain circumstances, acommitment tophase in,within areasonable andspecified time, national
treatment andmarket access could constitute suchcomprehensive commitments.
TheUnitedStatesincorporatesinitsofferthefullextentoffinancialsectorliberalizationavailable
initsmarket. Thisrevised conditional offerremoves headnote 2fromour1995schedule, which limited
commitments withrespect tonewentrants, expansion ofexisting activities, andtheconduct ofnew
activities. Therevised offeralsodrops anumber ofstaterestrictions withrespect toissuance oflicenses
tonon-residents andresidency/citizenship requirements andprovides national treatment withrespect
tothecostsofFederal Reserve examinations. Therevised offeralsoextends toforeign firms thebenefits
ofrecent federal legislation thatliberalizes interstate banking andinterstate branching.
Aspartofourrevised conditional offer, wewould alsodelete thefirstitemofourArticle II
(MFN) Exemptions listforfinancial services, dealing withdifferential treatment ofcountries dueto
application ofreciprocity measures orthrough certain international agreements.
TheUnited States hasmade other technical corrections toitsoffer toreflect accurately the
existing measures ofitsstates. TheUnited States reserves therighttomodify itsrevised offerwith
respect tothescheduling ofcertain statemeasures inlightofanynewinformation submitted inthe
on-going process ofverifying measures ofall50states andtheDistrict ofColumbia.
TheUnited States maywithdraw ormodify thisoffer, inwhole orinpart,atanytimethrough
12December 1997, ifsignificantly improved commitments from other negotiating partners arenot
undertaken.S/FIN/W/12/Add.5/Rev.1
Page2THE UNITED STATES OFAMERICA
SCHEDULE OFSPECIFIC COMMITMENTS -REVISED CONDITIONAL OFFER
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
7. FINANCIAL SERVICES
A. INSURANCE: (Limited toInsurance):
1.Commitments inthissubsector areundertaken inaccordance withtheUnderstanding onCommitments inFinancial Services (the“Understanding ”),
subject tothelimitations andconditions setforth inthese headnotes andtheschedule below.
2.Themarket access commitments inthissubsector inrespect ofmode (1),asdescribed inparagraph 2(a)ofArticle IoftheAgreement, arelimited tothe
services indicated inparagraphs B.3(a) andB.3(b) ofthemarket access section oftheUnderstanding. Themarket access commitments inthissubsector
inrespect ofmode (2),asdescribed inparagraph 2(b)ofArticle IoftheAgreement, arelimited totheservices indicated inparagraphs B.4(a) andB.4(b)
ofthemarket access section oftheUnderstanding. Itisunderstood thatparagraph B.4oftheUnderstanding does notrequire thatnon-resident financial
service suppliers bepermitted tosolicit business, andnocommitment tosuch solicitation isundertaken.
3.National treatment commitments inthissubsector aresubject tothefollowing limitation: national treatment withrespect toservices andservice suppliers
willbeprovided according toanon-U.S. service supplier ’sstate ofdomicile, where applicable, intheUnited States. State ofdomicile isdefined by
individual states, andisgenerally thestate inwhich aninsurer either isincorporated, isorganized ormaintains itsprincipal office intheUnited States.
Direct Insurance
a) Life, Accident, andHealth
Insurance Services (except
workers compensation
insurance)
b) Non-Life Insurance
Services1) Government-owned or
government-controlled insurance
companies, whether USorforeign, are
notauthorized toconduct business in:
Alabama, Alaska, Arkansas, California,
Colorado, Connecticut, Delaware,
Georgia, Hawaii, Idaho, Kansas,
Kentucky, Maine, Maryland, Montana,
Nevada, New Jersey (only withrespect to
surplus lines), New York (non-life
companies areauthorized; lifeandhealth
companies arenot), North Carolina,
North Dakota, Oklahoma, Oregon,
Pennsylvania, Rhode Island, South
Dakota, Tennessee, Washington, West
Virginia, Wyoming.1) Aonepercentfederal excise taxis
imposed onalllifeinsurance premiums
andafourpercentfederal excise taxis
imposed onallnon-life insurance
premiums covering USrisks thatarepaid
tocompanies notincorporated under US
law,except forpremiums thatareearned
bysuch companies through anoffice or
dependent agent intheUnited States.
When more than50percentofthevalue
ofamaritime vessel whose hullwasbuilt
under federally guaranteed mortgage
funds isinsured byanon-US insurer, the
insured must demonstrate thattherisk
wassubstantially firstoffered intheUS
market.S/FIN/W/12/Add.5/Rev.1
Page3Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
2) None
3) Government-owned or
government-controlled insurance
companies, whether USorforeign, are
notauthorized toconduct business in:
Alabama, Alaska, Arkansas, California,
Colorado, Connecticut, Delaware,
Georgia, Hawaii, Idaho, Kansas,
Kentucky, Maine, Maryland, Montana,
Nevada, New Jersey (only withrespect to
surplus lines), New York (non-life
companies areauthorized; lifeandhealth
companies arenotauthorized), North
Carolina, North Dakota, Oklahoma,
Oregon, Pennsylvania, Rhode Island,
South Dakota, Tennessee, Washington,
West Virginia, Wyoming.2) None
3) None
Branches arenotpermitted toprovide
surety bonds forUSfederal government
contracts.S/FIN/W/12/Add.5/Rev.1
Page4Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
Thefollowing states have nomechanism
forlicensing initial entry ofanon-US
insurance company asasubsidiary, unless
thatcompany isalready licensed insome
other USstate: Minnesota, Mississippi,
andTennessee.
Thefollowing states have nomechanism
forlicensing initial entry ofanon-US
insurance company asabranch, unless
thatcompany isalready licensed insome
other USstate: Arkansas, Arizona,
Connecticut, Georgia, Hawaii, Kansas,
Maryland, Minnesota, Nebraska, New
Jersey, North Carolina, Pennsylvania,
Tennessee, Utah, Vermont, Wyoming,
West Virginia.S/FIN/W/12/Add.5/Rev.1
Page5Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
UScitizenship isrequired formembers of
theboard ofdirectors oflocally
established andlicensed companies inthe
following states andinthefollowing
shares ornumbers: 100percentrequired
inLouisiana; three-quarters in
Washington (mutual lifecompanies with
themajority oftheboard being resident in
thestate); two-thirds required in
Oklahoma (forstock andmutual
companies) andPennsylvania; amajority
required inCalifornia (formutual insurers
operating asauthorized insurers onlyin
thestate ofCalifornia), Florida (forstock
andmutual insurers), Georgia (forstock
andmutual insurers withonefourth
resident inthestate), Idaho (forstock and
mutual insurers), Indiana, Kentucky,
Mississippi, Ohio (forlegal reserve life
insurers), Oregon, New York, South
Dakota (except ifmore than1000 persons
areentitled tovotefortheboard of
directors andamajority ofthevoters
reside outside thestate, orlessthanone
percentoftheshares areowned bystate
residents), Wyoming (foraninsurer
operating asanauthorized insurer onlyin
Wyoming); seven inTennessee (for
mutual lifeinsurance companies; three
resident inIllinois (forstock, mutual, or
legal reserve insurers) andMissouri (life
andaccident).S/FIN/W/12/Add.5/Rev.1
Page6Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
UScitizenship forincorporators of
insurance companies isrequired inthe
following states andinthefollowing
percentages ornumbers: 100percentin
Hawaii, Idaho (forstock ormutual
insurer), Indiana, South Dakota and
Washington; two-thirds inArizona (for
stock andmutual insurers), two-thirds
resident inGeorgia (forstock andmutual
insurers); amajority inAlaska, Florida
(forstock andmutual insurers), Arkansas
(majority formutuals orstock), Kansas
(alllifeinsurance companies andmutual
insurers other thanlife), Kentucky (for
mutual orstock insurers); Maine (life,
health, andaccident andmutual aidassoc
withstate residency formutuals),
Missouri (minimum 13withoverall
majority resident inthestate), Montana
(stock ormutual insurers), Texas (life,
health, accident andmutual aidassoc with
state residency formutuals), Wyoming
(forreserve stock andmutual insurers).S/FIN/W/12/Add.5/Rev.1
Page7Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
State residency isrequired inthe
following states fortheorganizing
members ofthefollowing types ofmutual
insurance companies: Arkansas (mutuals
andfarm mutual insurers), California
(county mutual fireinsurer); Idaho (all
mutuals); Kansas (allmutuals); North
Dakota (allmutuals), Minnesota
(township mutuals, farmers mutual fire
insurance companies); Mississippi (all
mutuals); Montana (farm mutual insurer);
Vermont (firecooperatives); Wyoming
(farm mutual insurer).
Seven ormore UScitizens, amajority of
whom areresidents ofthestate, may
organize afraternal benefit society inthe
following states: Alaska, Arizona
(requires 10ormore UScitizens, a
majority ofwhom arecitizens ofthe
state), Arkansas, California, Delaware,
Florida, Hawaii, Idaho, Illinois, Indiana,
Iowa, Kansas, Kentucky, Maine,
Maryland, Michigan, Minnesota,
Mississippi, Missouri, Montana,
Nebraska, New Jersey, North Dakota,
Oklahoma (requires 10ormore US
citizens, amajority ofwhom areresidents
ofthestate), Oregon, Pennsylvania, South
Dakota, Virginia, Vermont, Washington,
West Virginia andWyoming.S/FIN/W/12/Add.5/Rev.1
Page8Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
Twenty-five ormore persons domiciled in
thestate mayorganize adomestic
reciprocal insurer in:Arizona, Arkansas,
California, Delaware, Georgia, Idaho,
Indiana, Kentucky, Maine, Maryland,
Mississippi, Montana, Pennsylvania,
South Dakota, Tennessee, Vermont,
Virginia, Washington andWyoming.
4) Unbound, except asindicated inthe
horizontal section4) Unbound, except asindicated inthe
horizontal section
c) Reinsurance and
retrocession1) Government-owned or
government-controlled insurance
companies, whether USorforeign, are
notauthorized toconduct business in:
Alabama, Alaska, Arkansas, Colorado,
Connecticut, Delaware, Georgia, Hawaii,
Idaho, Kansas, Kentucky, Maine,
Maryland, Montana, Nevada, New York
(non-life companies areauthorized; life
andhealth companies arenot), North
Carolina, North Dakota, Oklahoma,
Oregon, Pennsylvania, Rhode Island,
South Dakota, Tennessee, Washington,
West Virginia, Wyoming.1) Aonepercentfederal excise taxis
imposed onallpremiums covering US
risks thatarepaidtocompanies not
incorporated under USlaw,except for
premiums thatareearned bysuch
companies through anoffice ordependent
agent intheUnited States.
InTexas, total direct reinsurance of
mutual lifeinsurance companies maynot
beentered intowithnon-US companies.S/FIN/W/12/Add.5/Rev.1
Page9Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
Insurance companies incorporated in
Nevada maypurchase reinsurance only
from aninsurer admitted toNevada. All
insurers writing workers ’compensation
insurance inMinnesota must purchase
reinsurance from theMinnesota Workers ’
Compensation Reinsurance Authority.
Unbound forMaine fortheprovision of
reinsurance forworkers 'compensation.
2) Insurance companies incorporated in
Nevada maypurchase reinsurance only
from aninsurer admitted toNevada. All
insurers writing workers ’compensation
insurance inMinnesota must purchase
reinsurance from theMinnesota Workers ’
Compensation Reinsurance Authority.
Unbound forMaine fortheprovision of
reinsurance forworkers 'compensation.2) NoneS/FIN/W/12/Add.5/Rev.1
Page10Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
3) Government-owned or
government-controlled insurance
companies, whether USorforeign, are
notauthorized toconduct business in:
Alabama, Alaska, Arkansas, Colorado,
Connecticut, Delaware, Georgia, Hawaii,
Idaho, Kansas, Kentucky, Maine,
Maryland, Montana, Nevada, New York
(non-life companies areauthorized; life
andhealth companies arenot), North
Carolina, North Dakota, Oklahoma,
Oregon, Pennsylvania, Rhode Island,
South Dakota, Tennessee, Washington,
West Virginia, Wyoming.
Thefollowing states have nomechanism
forlicensing initial entry ofanon-US
insurance company asasubsidiary, unless
thatcompany isalready licensed insome
other USstate: Maryland, Minnesota,
Mississippi, andTennessee. After a
license isobtained insome other US
state, licensing andentry intothestates
listed above ispermitted.3) NoneS/FIN/W/12/Add.5/Rev.1
Page11Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
Thefollowing states have nomechanism
forlicensing initial entry ofanon-US
insurance company asabranch, unless
thatcompany isalready licensed insome
other USstate: Arkansas, Arizona,
Connecticut, Georgia, Kansas, Maryland,
Minnesota, Nebraska, New Jersey, North
Carolina, Pennsylvania, Tennessee, Utah,
Vermont, Wyoming, West Virginia.
After alicense isobtained insome other
USstate, licensing andentry intothe
states listed above ispermitted.
4) Unbound, except asindicated inthe
horizontal section4) Unbound, except asindicated inthe
horizontal sectionS/FIN/W/12/Add.5/Rev.1
Page12Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
d) Services Auxiliary to
Insurance:
(applicable tosub-sectors
i),ii)andiii)below)1),3)Nonresident licenses arenotissued to
individuals notlicensed inanother US
state inArkansas (agents, brokers,
adjusters, consultants), Connecticut
(producers/
adjusters/appraisers/consultants/brokers/
reinsurance intermediary), Colorado
(producer, adjuster andreinsurance
intermediary), California (agents/brokers),
Delaware (broker/agent/reinsurance
intermediary), Georgia
(counsellor/adjuster), Florida
(agent/broker), Hawaii, Illinois
(producers/ adjusters/reinsurance
intermediaries), Indiana (agent/broker),
Kansas (agent/broker), Kentucky
(agent/broker), Louisiana (agent/broker),
Maine (agent/broker), Maryland
(agent/broker/ reinsurance
agent/reinsurance broker), Mississippi
(agent/broker), Missouri (brokers),
Montana (producer 's
license/agent/broker), Nevada
(solicitor/adjuster/property bondsman/bail
solicitor), New Jersey (producer ’s
agent/broker), New Mexico
(bailbondsmen/solicitors/broker agent),
North Dakota (agents/brokers)
Nebraska (producer 's
license/agent/broker), New York
(reinsurance intermediary), North
Carolina (reinsurance intermediary),S/FIN/W/12/Add.5/Rev.1
Page13Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
Oregon (agent/adjuster/consultant/
reinsurance intermediary), Pennsylvania
(adjuster/solicitor), South Dakota (agent),
Virginia (agents/brokers/consultants),
West Virginia (broker/reinsurance
intermediary) andTexas (agent/broker),
Washington (agent/broker).
i) Brokerage Services11),3)Brokerage licenses arenotissued to
non-residents in:South Dakota,
Wyoming.
Brokerage licenses areissued to
non-residents foronlycertain lines of
insurance in:Alabama (allexcept life,
accident &health), Arkansas (property,
casualty, surety &marine), California,
Louisiana (property &casualty), New
Mexico (property &casualty).
Allstates require in-state residency for
surplus lines brokers.
2) None
4) Unbound, except asindicated inthe
horizontal section.1),3)Higher license feesfornon-residents
maybecharged in:Alaska, Arizona,
Arkansas, California, Colorado, Georgia,
Indiana, Louisiana, Maine,
Massachusetts, Montana, Nebraska,
Nevada, New Hampshire, New Mexico,
North Carolina, North Dakota, Ohio,
Oklahoma, Pennsylvania, Rhode Island,
South Carolina, Utah, Vermont.
2) None
4) Unbound, except asindicated inthe
horizontal section.
1Fortransparency purposes, itshould benoted thatbrokerage firms cangenerally offer services inmost states byobtaining licenses as"brokers" andinother
states byobtaining licenses tooperate as"agents". Brokerage licenses arenotissued inFlorida, Iowa, Kentucky, Michigan, Minnesota, Mississippi, Oregon,
Tennessee, Texas, Virginia, West Virginia, Wisconsin.S/FIN/W/12/Add.5/Rev.1
Page14Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
ii) Agency Services 1),3)Agency licenses areissued to
non-residents foralloronlycertain lines
ofinsurance in:California, Florida
(general lines, life&health), Kansas,
Kentucky (general lines, life&health),
Louisiana (life&health), New Mexico
(life&health), Ohio (life&casualty),
Oregon, Rhode Island (allexcept general
lines), Texas.
Allstates require in-state residency for
surplus lines agents.
2) None
4) Unbound, except asindicated inthe
horizontal section1),3)Higher license feesfornon-residents
maybecharged in:Alaska, Arkansas,
California, Colorado, Florida, Indiana,
Iowa, Kansas, Kentucky, Louisiana,
Maine, Massachusetts, Mississippi,
Montana, Nebraska, Nevada, New
Hampshire, New Jersey, New Mexico,
North Dakota, Oklahoma, Pennsylvania,
Rhode Island, South Carolina, South
Dakota, Tennessee, Utah, Vermont,
Wisconsin, Wyoming.
2) None
4) Unbound, except asindicated inthe
horizontal sectionS/FIN/W/12/Add.5/Rev.1
Page15Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
iii) Consultancy, Actuarial,
Risk Assessment, and
Claim Settlement Services1),3)Licenses arenotissued to
nonresidents in:Alabama (adjuster,
solicitor, service representative),
California (adjuster, insurance analyst,
motor clubagents, bailbondsman),
Florida (customer representative),
Georgia (counsellor, adjuster), Hawaii
(adjuster, solicitor), Idaho (solicitor),
Indiana (bail bondsmen), Kentucky
(adjuster), Maryland (adjuster), Michigan
(adjuster), Montana (adjuster), Nevada
(solicitor, adjuster, property bondsman),
New Mexico (solicitor), North Carolina
(limited representatives, adjusters, motor
vehicle damage appraisers, professional
bondsmen, runners), Oklahoma (bail
license), Oregon, Pennsylvania (motor
vehicle damage appraiser), Washington
(solicitor, adjuster), West Virginia
(adjuster, solicitor), andWyoming
(adjuster, solicitor).1),3) None
In-state residency isrequired forlicensure
in:California (foradjusters; andforlife
anddisability insurance analysts), Georgia
(forinspection when notaccompanied by
alicensed resident adjuster), Illinois (for
non-resident public adjusters whoare
licensed inastate which does notpermit
equal treatment toIllinois residents),
Maryland, Mississippi (forindependent
adjusters), andNevada (forappraisers and
adjusters).S/FIN/W/12/Add.5/Rev.1
Page16Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
UScitizenship isrequired forlicensure
in:Alabama (foragents, brokers,
solicitors, managing general agents and
service representatives), Idaho (for
agents, brokers, solicitors andsurplus
lines brokers), Missouri (forbrokers),
Nebraska (forbrokers), New Mexico (for
solicitors andbailbondsmen), Ohio (for
surplus lines brokers) andOklahoma (for
baillicense).
2) None
4) Unbound, except asindicated inthe
horizontal section.2) None
4) Unbound, except asindicated inthe
horizontal section.S/FIN/W/12/Add.5/Rev.1
Page17Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
B. FINANCIAL SERVICES (LIMITED TOBANKING AND OTHER FINANCIAL SERVICES AND EXCLUDING INSURANCE):
1. Commitments inthese subsectors areundertaken inaccordance withtheUnderstanding onCommitments inFinancial Services (the“Understanding ”),subject
tothelimitations andconditions setforth inthese headnotes andtheschedule below.
2. Themarket access commitments inthese subsectors inrespect ofmodes (1)and(2),asdescribed inparagraphs 2(a)and(b)ofArticle IoftheAgreement, are
limited totheservices indicated inparagraphs B.3(c) andB.4(c) ofthemarket access section oftheUnderstanding, respectively. Itisunderstood that
paragraph B.4oftheUnderstanding does notrequire thatnon-resident financial service suppliers bepermitted tosolicit business, andnocommitment tosuch
solicitation isundertaken.
3. National treatment commitments inthese subsectors aresubject tothefollowing limitation: National treatment willbeprovided based upon theforeign bank’s
“home state”intheUnited States, asthatterm isdefined under theInternational Banking Act,where thatActisapplicable. Adomestic bank subsidiary ofa
foreign firmwillhave itsown“home state”andnational treatment willbeprovided based upon thesubsidiary ’shome state, asdetermined under applicable
law.1
4. Service suppliers choosing tosupply aservice through ajuridical person constituted under thelaws oftheUnited States aresubject tonon-discriminatory
limitations onjuridical form.2
5. Theoffer ofnewfinancial services orproducts issubject, onanon-discriminatory basis, torelevant institutional andjuridical form requirements.
1Foreign banking organizations aregenerally subject togeographic andother limitations intheUnited States onanational treatment basis. Where such limitations
donotconform tonational treatment, theyhave been reserved asmarket access restrictions. Forpurposes ofillustration, under thisapproach, thefollowing situation
does notaccord national treatment andwould therefore bescheduled asalimitation: aforeign bank from aparticular home state isaccorded lessfavourable treatment
thanthataccorded toadomestic bank from thatstate withrespect toexpansion bybranching.
2Forexample, partnerships andsoleproprietorships aregenerally notacceptable juridical forms fordepository financial institutions intheUnited States .S/FIN/W/12/Add.5/Rev.1
Page18Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
AllSubsectors, except as
specifically provided below1),2),3) Michigan limits, according tothe
country oftheir home charters, thebanks
inwhich corporate credit unions may
place deposits.1) None
2) None
3) Alldirectors ofanational bank must be
U.S. citizens unless anational bank isan
affiliate orsubsidiary ofaforeign bank,
inwhich caseonlyamajority ofthe
board need beU.S. citizens.
Foreign ownership ofEdge corporations
islimited toforeign banks andUS
subsidiaries offoreign banks, while
domestic non-bank firms mayownsuch
corporations.
Federal andstate lawdonotpermit a
credit union, savings bank, home loanor
thrift business intheUnited States tobe
provided through branches ofcorporations
organized under aforeign country 'slaw.
Inorder toaccept ormaintain domestic
retail deposits oflessthan$100,000, a
foreign bank must establish aninsured
banking subsidiary. Thisrequirement
does notapply toaforeign bank branch
thatwasengaged ininsured deposit-taking
activities onDecember 19,1991.3) Foreign banks arerequired toregister
under theInvestment Advisers Actof
1940 toengage insecurities advisory and
investment management services inthe
United States, while domestic banks are
exempt from registration. The
registration requirement involves record
maintenance, inspections, submission of
reports andpayment ofafee.
Foreign banks cannot bemembers ofthe
Federal Reserve System, andthusmay
notvotefordirectors ofaFederal
Reserve Bank. Foreign-owned bank
subsidiaries arenotsubject tothis
measure.S/FIN/W/12/Add.5/Rev.1
Page19Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
Unbound withrespect toparagraph 2(e)
ofArticle XVIoftheAgreement, and
paragraphs A,B.5andB.6ofthe
Understanding inrelation tothe
expansion, viatheestablishment ofa
branch ortheacquisition ofoneormore
branches ofabank without acquisition of
theentire bank, byaforeign bank into
another state from its“home state,”as
thatterm isdefined under applicable law.
Except asspecifically setforth elsewhere
inthisschedule, such expansion shall be
provided onanational treatment basis in
accordance withheadnote 3.
Interstate expansion byaforeign bank
through theestablishment ofbranches by
merger withabank located outside the
“home state, ”asthatterm isdefined
under applicable law,ofaforeign bank is
prohibited where Montana orTexas isthe
home state oftheforeign bank oristhe
state where thebank islocated thatisto
bemerged intotheforeign bank, resulting
intheestablishment ofbranches. Except
asspecifically setforth elsewhere inthis
schedule, such expansion shall be
provided onanational treatment basis in
accordance withheadnote 3.S/FIN/W/12/Add.5/Rev.1
Page20Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
Unbound forinitial entry byestablishment
oracquisition ofstate-chartered banks or
state-licensed offices offoreign banks as
indicated inthefollowing forms:
California (branch; alsosavings andloan
association); Connecticut (bank orholding
company; alsocredit union); Georgia
(agency); Illinois (branch); Kentucky
(subsidiary); Louisiana (agency);
Massachusetts (subsidiary orbranch);
Michigan (agency); North Carolina
(subsidiary, branch, agency, or
representative office); Pennsylvania (any
deposit-taking orrepresentative bank
office); Washington (branch, agency, or
representative office). Thelimitations in
thisparagraph donotapply toinitial
establishment oracquisition ofanational
bank subsidiary byaforeign person or
establishment ofafederal branch or
agency byaforeign bank thatdoes not
already have abanking presence inthe
United States, orgenerally tointerstate
expansion. Such limitations mayapply to
interstate expansion through state-licensed
limited branches, agencies, or
representative offices.1
1Thelimitations inthisparagraph reflect state reciprocity measures.S/FIN/W/12/Add.5/Rev.1
Page21Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
Thefollowing states areunbound forthe
specified activities: Indiana (establishment
ofservice offices byforeign-owned credit
unions); Iowa (activities offoreign-owned
savings andloanassociations;
foreign-owned bank ortrust company
acting asfiduciary; useofsatellite
banking terminals).1
Initial entry orexpansion byaforeign
person (butnotadomestic person)
through acquisition orestablishment ofa
state-chartered commercial bank
subsidiary isprohibited orotherwise
limited inthefollowing states: Alabama;
Arizona; Arkansas; California (limit on
foreign non-bank ownership of
international banking corporation);
Colorado; Delaware; Indiana; Kansas;
Louisiana; Maryland; Michigan;
Minnesota; Mississippi; Montana;
Nebraska; Nevada; North Carolina; North
Dakota; Oklahoma; Oregon;
Pennsylvania; South Carolina; Tennessee;
Vermont; Virginia; Washington; West
Virginia; Wisconsin; Wyoming. The
limitations inthisparagraph donotapply
toestablishment oracquisition ofa
national bank subsidiary byaforeign
person thatdoes notalready have a
banking presence intheUnited States.
1Thelimitations inthisparagraph reflect state reciprocity measures.S/FIN/W/12/Add.5/Rev.1
Page22Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
Thefollowing states limit initial entry or
expansion byaforeign person through
acquisition orestablishment ofthe
following entities: Delaware (savings and
loanassociations; savings banks); Ohio
(savings andloanassociations; savings
banks; credit unions); Tennessee (savings
andloanassociations; savings banks;
credit unions; trustcompanies);
Washington (savings andloan
associations; savings banks; credit unions;
trustcompanies).
Theboards ofdirectors ofdepository
financial institutions organized under the
following states 'laws aresubject toU.S.
citizenship requirements ofuptothe
specified proportions: Alabama (all);
Colorado (3/4); District ofColumbia
(all); Florida (majority); Georgia (all);
Indiana (3/4); Iowa (majority); Kentucky
(all); Louisiana (majority); Massachusetts
(majority); Mississippi (all); Missouri
(all); New Hampshire (majority); New
Jersey (all); New Mexico (3/4); New
York (all;applies alsototrustees of
mutual savings bank orsavings andloan
associations, andtocommittees ofcredit
unions); North Carolina (3/4); North
Dakota (majority); Pennsylvania (all,but
maybewaived); South Dakota (3/4);
Tennessee (all); Vermont (2/3); West
Virginia (majority); Wisconsin (2/3).Texas allows pre-judgment seizure remedies
andcivil discovery requests tobeapplied
against foreign bank agencies, while
subsidiaries areexempt.
Thefollowing states require direct branches or
agencies offoreign banks toregister under
securities broker-dealer orinvestment adviser
measures, while bank subsidiaries offoreign
banks areexempt from such registration tothe
same extent asdomestic banks incorporated in
thestate: Alabama; Arizona; Arkansas;
California; Connecticut; Delaware; District of
Columbia; Georgia; Idaho; Iowa; Kansas;
Louisiana; Maryland; Mississippi; Missouri;
Nebraska; New Hampshire; New Jersey; New
Mexico; New York; North Carolina; Ohio;
Oklahoma; Pennsylvania; South Dakota;
Tennessee; Texas; Vermont; Washington.
These limitations donotapply toFederally
licensed branches oragencies.S/FIN/W/12/Add.5/Rev.1
Page23Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
U.S. citizenship isalsorequired forthe
incorporators ororganizers ofdepository
financial institutions organized under state
law. Residence within astate mayalso
berequired fordirectors, incorporators,
organizers, orexecutive committee
members ofdepository financial
institutions organized under state law.
U.S. citizenship isrequired toengage in
specified activities inthefollowing states:
Arizona (collection agency); Indiana
(collection agency); Illinois (safe
deposits); Nevada (collection agency).
Establishment ofabranch oragency bya
foreign bank islimited asspecified inthe
following states:
•State branch license subject tocertain
limitations --California (no
trust/fiduciary powers); Hawaii (no
trust/fiduciary powers);
Massachusetts; Oregon;
Pennsylvania; Utah (no
trust/fiduciary powers); Washington
(limited trust/fiduciary powers and
restricted tooneoffice perbank).
These limitations donotapply to
Federal branches.Thefollowing states require direct
branches oragencies offoreign banks, but
notbank subsidiaries offoreign banks, to
register orobtain licenses inorder to
engage inthefollowing activities:
Arkansas (selling checks; mortgage
transactions); California (selling payment
instruments); Delaware (sale orcashing of
checks, drafts, money orders; motor
vehicle financing; transportation of
money/valuables); Georgia (mortgage
lending/brokerage, check selling/cashing);
Indiana (money transmission; loan
brokerage); Kansas (money transmission);
Maryland (selling payment instruments,
traveller 'schecks); Massachusetts (check
selling/cashing; foreign transmittal
agencies; motor vehicle financing;
insurance premium financing; retail
instalment sales/servicing; residential real
estate mortgage financing --license
requirement applies onlytoagencies);
North Carolina (selling checks);
Oklahoma (selling checks); Pennsylvania
(mortgage banking/brokerage); Tennessee
(money transmission; residential
lending/brokerage; industrial loanand
thrift activities); Texas (currency
exchange ortransmission --does not
apply toTexas agencies; selling checks);
Virginia (mortgage lending/brokerage;
money transmission; saleofmoney
orders; check cashing); Wisconsin (selling
checks).S/FIN/W/12/Add.5/Rev.1
Page24Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
•State branch license notavailable,
butstate agency license isavailable
inIdaho andWest Virginia.
•Nostate branch oragency license
available --Arizona; Arkansas;
Colorado; Indiana; Iowa;
Minnesota; Montana; Nebraska; New
Mexico; North Dakota; Oklahoma;
Rhode Island; South Carolina; South
Dakota; Tennessee; Vermont;
Virginia; Wisconsin. These
limitations donotapply toFederal
offices.S/FIN/W/12/Add.5/Rev.1
Page25Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
•Branch license notavailable but
agency license is,subject toany
specified limitations --Delaware
(state license limited tooneoffice
perbank andcannot operate ina
manner likely toresult ina
substantial detriment toexisting
bank; nofiduciary powers); Florida
(available onlytoaforeign bank with
atleast $25million incapital orthat
isoneoffivelargest banks inits
home country); Georgia (available
onlytoforeign bank withatleast $50
million inexcess ofliabilities; no
fiduciary andlimited other powers);
Louisiana (limited toparishes with
more than350,000 residents);
Mississippi; Missouri (nofiduciary
powers); Oklahoma (foreign bank
must have atleast $25million in
capital or,inter alia, beoneoffive
largest banks initshome country;
special asset maintenance/capital
equivalency rules apply, asdoother
restrictions); Texas (oneoffice only,
limited tometropolitan areas withat
least 500,000 residents; limited
fiduciary powers). Certain
restrictions onfiduciary powers
apply tofederal agencies.Thefollowing states restrict various
commodities transactions byforeign bank
branches andagencies, butnotbyother
depository financial institutions: Arizona;
California; Idaho; Indiana; Iowa;
Mississippi; Missouri; Nebraska; New
Hampshire; Washington.
Offers andsales ofsecurities toforeign
bank branches andagencies inthe
following states aresubject to
registration/disclosure requirements that
donotapply ifthetransaction involves
other financial institutions: Illinois;
Indiana; Louisiana; Montana; Nebraska;
New Jersey; North Dakota; Tennessee;
Texas (applies tobranches andagencies
ofallforeign financial institutions).S/FIN/W/12/Add.5/Rev.1
Page26Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
•Nobranch orstate agency license
available --Wyoming.
•Nobranch oragency license
available --Alabama; Kansas;
Maryland; North Dakota.
Representative offices offoreign banks
arenotpermitted inthefollowing states,
orarelimited asspecified: Arizona;
Arkansas; Colorado; Kansas; Kentucky;
Michigan; Mississippi; Montana; North
Dakota; Oklahoma (foreign bank must
have atleast $10million incapital or,
inter alia, beoneofthefivelargest banks
initshome country; special asset
maintenance/capital equivalency
requirements mayapply); Oregon; Rhode
Island; South Carolina; South Dakota;
Tennessee; Vermont; Virginia;
Wisconsin; Wyoming. Other states
require incorporation ofrepresentative
offices.
4) Unbound, except asindicated inthe
horizontal section.4) Unbound, except asindicated inthe
horizontal section.S/FIN/W/12/Add.5/Rev.1
Page27Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
Trading ofSecurities and
Derivative Products andServices
Related Thereto; Participation in
Securities Issues1),2),3)Federal lawprohibits theoffer or
saleoffutures contracts ononions,
options contracts ononions, andoptions
onfutures contracts ononions inthe
United States, andservices related
thereto.
Unbound fortheauthority toactasasole
trustee ofanindenture forabond offering
intheUnited States.
Unbound withrespect totheuseof
simplified registration andperiodic
reporting forms forsecurities issued by
small business corporations.
4) Unbound, except asindicated inthe
horizontal section.1),2),3) None
4) Unbound, except asindicated inthe
horizontal section.S/FIN/W/12/Add.5/Rev.1
Page28Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
Participation inIssues of
Government Debt Securities1),2) None
3) Unbound forthegranting orcontinuation
ofFederal Reserve designation asa
primary dealer inUSgovernment debt.
4) Unbound, except asindicated inthe
horizontal section.1),2),3) None
4) Unbound, except asindicated inthe
horizontal section.