RESTRICTEDWORLD TRADE
ORGANIZATIONS/C/W/140
15 May 2000
(00-1973)
Council for Trade in Services Original:  English
COMMUNICATION FROM JAPAN
Review of Article II Exemptions
Questionnaire on the List of MFN Exemptions
The attached paper has been received from the delegation of Japan with the request that it be
circulated to Members of the Council for Trade in Services.
_______________
With regard to the Special Session to be held on 29 and 30 May 2000, we have prepared the
following questions for consideration by the Members.  In order to proceed in an efficient manner atthe above Session, we should be grateful if we could receive, where possible, written replies from all
concerned in advance of the meeting, for example during the week of 22 May.
Japan reserves its right to submit additional questions, as necessary, at a later stage.
_______________
A. ALL SECTORS
Austria, all sectors, page 2
1. Please provide the names of all the bilateral and multilateral arrangements relating to this
measure.
2. Austria already having obtained membership to the EC.  Please explain why this measure
applied to Switzerland by Austria is registered in addition to the measure applied to Switzerland by
the EC (Page 9 ).  Please also explain the compatibility of those two measures.
Brunei Darussalam, with All countries, page2
3. Under the heading of column 1, it is said that the "Future  liberalization of measures ... shall
be carried out in a differentiated manner, and at the discretion of the relevant authorities".  Please
explain in concrete terms, supported by clear examples, what kind of "manner" and "discretion" are
used.
4. What exactly do "specific development requirements"  in column 5 refer to? Please provide
an adequate explanation.S/C/W/140
Page 2
5. It is also stated that the objective is "to maximize economic benefits of foreign participation in
the Brunei Darussalam economy".  Please provide examples of economic benefits having been
maximized by liberalization in a differentiated manner, as well as at the discretion of the relevant
authorities. Has there been any case that has impa ired economic benefits through providing privileges
to specific companies?
Brunei Darussalam, All sectors, page 3
6.  Please provide the names of all the countries to which this measure applies.
7. What are the measures taken that give preferences to certain countries?  Do any of the
measures cover visa requirements?
8. Please explain how and when the periodic review takes place.
Canada, with All countries, page 3
9. Please specify the measures which are inconsistent with Article 2 of the GATS. Is this a form
of compulsory arbitration alone, or a measure which the Canadian government has to take as a result
of such compulsory arbitration, or is it due to the conditions contained in the  bilateral investment
agreements which are substantially guaranteed by compulsory arbitration?
10. Please specify the agreements that provide a compulsory arbitration of investor/state
investment disputes, as well as the countries with which Canada has concluded an agreement to date.
11. It is stated in column 5 that Canada accepts compulsory arbitration for the "promotion and
protection of foreign investment". How many cases have undergone compulsory arbitration to date?
12. Please provide concrete examples of how and to what extent this measure has promoted and
protected foreign investment ( not only for Canada itself, but also for the countries with which Canada
has concluded agreements) .
13. Please explain why this measure can promote a nd / or protect foreign investment, and why
other MFN based measures cannot?
14. Is it possible for the countries with which Canada concludes agreements to accord the
treatment to the other WTO Members on an MFN basis?
15. Please provide concrete examples indicating why Canada is unable to achieve "promotion and
protection of foreign investment" through the normal channel of multilateral negotiations.
Chile, All, page 3
16. Please specify the measures which are inconsistent with Article 2 of the GATS.   Is this a
form of compulsory arbitration of itself, or a measure which the Chile government has to take as a
result of such compulsory arbitration, or is it due to the conditions contained in the bilateral
investment agreements which are substantially guaranteed by compulsory arbitration?
17. With which countries has Chile already concluded bilateral investment agreements since
1995?
18. How many cases have undergone compulsory arbitration to date?S/C/W/140
Page 3
19. What is the duration of each bilateral investment agreement conducted with Chile currently in
effect, i.e. how long can the measures be applied?
Cyprus, All sectors, page 4
20. What is the future prospect, as well as the process, for Cyprus to accomplish  integration into
the EU in relation to the relevant provisions of the GATS Article V
Egypt, all sectors, page 6
21. Please provide names of all the agreements referring to this measure.
22. Do the "major trading partners" referred to in column 5 correspond to those countries
mentioned in column 3?
23. How does Egypt evaluate the market liberalization of those countries to which this measure
has been applied over the past five years?
Estonia, all sectors, age 7
24. With which countries does Estonia think labour market integration may be mutually
beneficial?  Please also explain the reasons why in each case.
EC, page 8, with Sweden, Finland, Iceland and Norway
25. Examples are provided of Denmark taking m easures for promoting Nordic cooperation. Are
there any other measures than those concerning financial support, assistance or funding?   If so, pleaseprovide details.
26. We would like to know why Denmark has scheduled specifically three measures shown in the
list.
27. Simply using the term "cooperation" is not adequate enough for the reason to justify
registering a regional cooperation on the MFN list. Please provide concrete explanations on the reasonfor including promotion for a Nordic  cooperation in the exemption list.
28. We would like to know whether any achievements have been made for promoting Nordic
cooperation through the measure exempted in the list (for example, the annual volume of funding, or
the number of projects achieved over one year).
29. Please explain the difference between this exemption showing only 3 measures and a similar
one registered by, Iceland, Finland, Sweden and Norway which shows four.
EC (Italy), page 8, All sectors with All countries
30. How many countries grant reciprocal treatment to Italian nationals?
31. Italy maintains this measure on the basis of reciprocity. Has such a measure really contributed
to granting similar treatment to Italian nationals in those countries?  Please indicate whether
reciprocity is truly effective when obtaining similar treatment from others.
32. Please explain why Italy only mentions the measure concerning the "authorization for
purchase of real estate" in this list.S/C/W/140
Page 4
EC (Portugal), All sectors, page8
33. Please explain in concrete terms what "certain activities and professions" mentioned in
column 2 actually refers to.
34. Please state whether Portugal could consider an alternative measure regarding a qualification
requirements on an MFN basis, either on the Portuguese language or on the knowledge of Portugal, ifthe current measure is taken on the basis of understanding a common language or common culture.
EC, All sectors, with Francophone African  countries, Algeria, Switzerland and
Romania, page 8
35. Do "historical links" really make a reason for a MFN exemption?  Please explain in concrete
terms.
36. What do the terms "facilitation of access procedures " and "certain services activities" refer
to?  Please provide detailed explanation.
37. What element actually enables the abolition of this measure in 10 years?
38. We would like to know how the EC plans to abol ish or phase out such measures in 10 years.
Please indicate the whole procedures.
EC (UK) , All sectors, page 9
39. Could UK give us a detailed and rational explanation for maintaining historical links in the
sector of the movement of natural persons?  We would like to know whether there is any economic
rationale behind.
EC, All Sectors, page  9, with Switzerland
40. Please explain concretely the kind of measures which grant preferential treatment to
Switzerland that actually exist.
41. Please explain in precise terms how "a process of progressive trade liberalization" would be
carried out between the EC and Switzerland.
EC, All sectors, page 9, with San Marino, Monaco, Andorra, Vatican City State
42. Please provide a list of the existing bilateral agreements.
43. Please explain the current situation and the prospect for concluding new bilateral agreements.
EC, (Italy), All sectors, page 9
44. Please provide a list of the third countries to which this measure applies.
45. Please provide more details about the seasonal shortage of workers, such as the average
number per year and the tendency over the past five years.
46. Please explain why an MFN- based measure cannot be introduced to supplement the seasonal
shortage of workers.  In other words, please explain why Italy guarantees work permits for seasonal
workers only from the countries provided in colu mn 3 for the purpose of ensuring the orderly
movement.S/C/W/140
Page 5
EC, All sectors, page 10
47. Please provide a list of the countries to which this measure applies.
48. Have any new economic integration agreements been concluded since this measure was
registered?  If so, please provide a list of such new agreements.
49. How does the EC evaluate the bilateral agreements with the countries referred to in column 3
in terms of their economic transition and development?
50. How does the EC evaluate the exemption measure applied to the countries mentioned in
column 3 in terms of their economic transition and development?
51. Please specify the sectors where work permits are guaranteed for the purpose of temporary
contract work, other than construction and hotel and catering services?
52. Please explain, with specific examples, the meaning of the word "contract" mentioned in
column 2.
Finland, All sectors, page 11  Please see para 25-29
53. Please refer to question 25
54. Please refer to question 26-29
Iceland, All sectors, page 13
55. Please refer to question 25
56. Please refer to question 26
57. Please refer to question 27
58. Please refer to question 28
59. Please refer to question 29
Indonesia, Movement of Personnel, page 13
60. Please define the meaning of "low level occupations" by clarifying the difference between
low level occupations" and others.
61. Column 2 states that "limited exemptions may be granted to citizens of certain countries".
Please clearly explain under what conditions those exemptions are applied?  Have any bilateral
agreements been concluded between Indonesia and such countries?
62. Please explain how this measure has contributed to the development of the region over the
past five years.
Jamaica, All sectors, page 14
63. Japan would like to know whether or not Jamaica considers CARICOM as an economic
integration entity which satisfies the conditions of GATS Article V:1, and on what grounds Jamaica
bases its assumption.S/C/W/140
Page 6
Malaysia, All sectors, page 15
64. Please provide a list of any existing bilateral agreements concerning this measure.
65. What is the difference between "unskilled", "semi-skilled" and "skilled" workers?
66. Please specify the meaning of the term "industrial harmony" mentioned in column 5.
Malaysia, All sectors, page 16
67. Please explain, with specific examples, about the term "specific development requirements"
mentioned in column 5.
68. Please provide a detailed explanation about "preferential and differential manner" mentioned
in column 2, including how it is operated.
69. Have any kind of restrictive measures been taken so far, and if so, with which countries?
70. This measure may have an adverse affect on the development of Malaysia as it could lead to
providing privileges to certain countries or companies. Does Malaysia have any opinion on this?
New Zealand, All sectors, with Kiribati, page 16
71. Is this measure based on the bilateral agreement between New Zealand and Kiribati?
72. How many Kiribati Nationals have been granted favorable entry into New Zealand over the
past five years?
New Zealand, All sectors, page 16, with Tuvalu
73. Is this measure based on the bilateral agreement between New Zealand and Tuvalu?
74. How many Tuvalu Nationals have been granted favorable entry into New Zealand over the
last five years?
Norway, All sectors, page 17
75. Please refer to question 25
76. Please refer to question 26
77. Please refer to question 27
78. Please refer to question 28
79. Please refer to question 29
Panama, All sectors, page 17, with US
80. Do the Panama Canal Treaties still exist under the same condition?  Please precisely explain
the conditions creating the need for the exemption.S/C/W/140
Page 7
Peru, All sectors, page 18
81. Please provide a list of the reciprocal labour agreements, the agreements on dual nationality,
as well as the bilateral or multilateral agreements relating to foreign personnel agreements concluded
by the Government of Peru.
82. Please specify which countries currently receive preferential treatment under this measure.
83. Please explain why Peru evokes the need for reciprocity and dual nationality in relation to this
measure.
84. How has this measure promoted investment?
Philippines, All sectors, page 18
85. Please provide a list of all the treaties established on entry rights for traders and investors that
the Philippines has already concluded with countries to date.
86. What exactly is the "labour market test" mentioned in column 2?
Poland, All sectors, page 19
87. Please refer to question 9
88. Please refer to question 10
89. Please refer to question 11
90. Please refer to question 12
91. Please refer to question 13
92. Please refer to question 14
93. Please refer to question 15
Singapore, All Sectors, with traditional sources, page 20
94. Is this measure based on agreements concluded between Singapore and other countries?
95. What is the difference between "unskilled", "semi-skilled" and "skilled" workers?
96. Please provide a list of the countries categorized in "traditional sources" as mentioned in
column 3 to which the measure applies.
97. How many times has Singapore reviewed this measure in the light of domestic and national
policy considerations?  What were the results drawn from each review?
98. Please explain why an entry quota on MFN basis cannot regulate the flow of foreign workers.
Singapore, All sectors, with all countries, page 20
99. Has the number of co-signatories of bilateral Investment Guarantee Agreements (IGAs)
increased since 1995?S/C/W/140
Page 8
100. As a condition for creating the need for exemption, Singapore states that "the agreements also
help to provide the economic and political guarantees for the promotion of bilateral relations".  Please
explain why Singapore does not pursue economic and political guarantees through the measures on an
MFN basis.
101. Have the agreements helped to provide economic and political guarantees for the promotion
of bilateral relations as mentioned in column 5?  If so, please provide concrete examples what has
actually happened since 1995.
102. An MFN-based measure, through which a country' s own institutions could be spread out and,
thereby, promoted in to international standard, is perhaps more practical than a reciprocal principle,
which simply affects the co-signatory country only.  What is Singapore's opinion about this?
103. Column 4 provides that "Singapore will periodically review this in the light of international
considerations".  Please explain when and how the periodical reviews take place.  Has the measurebeen changed as a result of the reviews?
104. Please explain how, in Singapore's opinion, it w ould be possible to abolish this exemption.
Singapore,  All Sectors: Commonwealth Tax Credit Scheme, page 20
105. It is noted that a "part of Singapore's cooperation among Commonwealth members" is given
as the condition creating the need for the exempti on. Is there any plan to notify the Commonwealth as
an Economic Integration as provided for in Article V of the GATS?
106. Please explain why, in the context of consistency, the other Commonwealth  countries, which
grant reciprocal relief, do not list the same measure as an MFN exemption.
107. Please indicate the names of the Commonwealth countries which apply the same measure.
108. Please provide the provisions of Section 48 of the Income Tax Act.  Are there any cases
where the measure has applied?
109. Column 4 indicates that "Singapore will periodically review this in the light of international
developments".  Please explain when and how the periodical reviews take place.  Has the measure
been changed as a result of the reviews?
110. Please explain how, in Singapore's opinion, it w ould be possible to abolish this exemption.
Sweden,  All Sectors: with Côte d'Ivoire, Madagascar, Senegal, page 21
111. Column 5 provides that "the measure reflects special investment conditions contained in
bilateral treaties".  Please explain specifically what is meant by the "special investment conditions".
112. It seems that the "special investment conditions contained in bilateral treaties" mentioned in
the column 5 do not provide an adequate reason to create the need for exemption. Please explain the
policy background as to why full national treatment, which is already contained in bilateral treaties,
cannot be applied to investors from all other Member countries.
113. What is the original aim of the bilateral treaties?
114. What is the reason for specifying the intended duration as, "minimum 11 years"?S/C/W/140
Page 9
Sweden   All sectors: with Denmark,  Finland, Iceland, Norway and Sweden
115. Please refer to question 25
116. Please refer to question 26
117. Please refer to question 27
118. Please refer to question 28
119. Please refer to question 29
In keeping with the original numbering there are no questions 120-129
Switzerland, All sectors, page 23
130. Please provide the concrete example of "traditional recruiting areas" in column 2.
Thailand  Services sectors: with The United States, page 23
131. Please explain the policy background as to why Thailand has concluded a bilateral agreement
applying national treatment only to the United States.
132. The Treaty of Amity and Economic Relations concluded with The United States has not been
notified as an economic integration pursuant to Article V of the GATS. Is there any plan to develop
the Treaty into an economic integration?
133. Please explain the policy background as to why national treatment, provided for in the
bilateral agreement, cannot be granted to all other Members.
134. It seems that the term "Bilateral agreement" mentioned in column 5 does not provide an
adequate reason for creating the need for exemption. Please explain specifically what kind of
conditions necessitate the need for maintaining of the bilateral agreement.
135. Please explain in concrete terms the procedures for abolishing this exemption at its 10 year-
term mentioned in column 4.
US, Movement of persons, with countries under FCN, BIT etc., page 27
136. Please specify all the names of the countries to which this measure applies.
137. Please provide statistical evidence showing that the measure has facilitated trade under FCNs
and BITs over the past five years.
US,  Movement of persons, longshore work, page 27
138. Please provide a concrete example of the "longshore work" mentioned in column 2.
139. Which domestic law covers this measure?
140. Please provide a list of the cases where this measure has applied over the past five years.
141. Please indicate the names of the countries to which this measure applies.S/C/W/140
Page 10
US, Taxation Measures, 1st point, page 28
142. Such conditions as the volume of movements across US borders and the efficient
administration of the tax system are cited as the rationale for favoring the residents of Canada and
Mexico in terms of taxation.  Please clarify how such preferential tax measures can relate to the
volume of border movements and can make taxation administration effective.
143. Are such preferential measures the result of an international agreement on the avoidance of a
double taxation, as referred to in Article XIV(e) of the GATS?
144. Are these preferential measures based on the NAFTA concluded with Canada and Mexico,
and thus are regarded as falling under Article V of the GATS in relation to economic integration?
145. We understand that the Committee on Regional Trade Agreements has yet to come to a
conclusion whether or not the NAFTA does actually comes under the definition of economic
integration as provided for in Article V of the GATS.  Is our understanding correct if the Committeedecide that the NAFTA is consistent with this Article, the United States will be in a position to
withdraw the MFN exemption regarding these preferential measures?
US, Taxation Measures, 3rd point, page 28
146. What specifically are the CBI beneficiary countries?
147. The United States refers to "facilitation of economic development in certain developing
countries" as the reason for maintaining measures favoring the CBI beneficiary countries.  Please
explain why similar measures cannot be taken for all the other developing countries, bearing in mind
the fact that the MFN treatment is a fundamental principle of the multilateral trade system.
148. What is the meaning of the "benefits availa ble under the US IRC with respect to the CBI
beneficiary countries"?
149. Please describe, by citing relevant figures such as the economic growth rate, how such
preferential measures contribute to the facilitation of economic development in CBI beneficiary
countries.
US, Taxation Measures, 4th point, page 29
150. Please clarify in details the reciprocal reduction of taxation and explain how such a measure
would lead to proper tax administration.
151. Which countries are subject to the reciprocity requirement?
US, Taxation Measures, 5th point, page 29
152. Such conditions as the facilitation of satellite communications and proper tax administration
are referred to as being the reason for the tax ex emption relating to foreig n communications satellite
system involving the United states.  Please clarify how this tax exemption would result in proper tax
administration.
153. Please indicate the number and amount of tax exemption measures currently in place.S/C/W/140
Page 11
US, Taxation Measures, 6th point, page 29
154. With reference to the denial of a statutory reduction of double taxation or the deferral of US
tax based on foreign policy considerations, are there any measures that fall outside the security
exceptions as specified in Article XIVbis of the GATS?  If so, what measures are concerned by this?
155. Please indicate the number and nature of the relevant cases having occurred over the past five
years.
US, Taxation Measures, 7th point, page 30
156. In respect of the discriminatory taxation measures aimed at fostering efficient international
taxation policies, please explain, referring to concrete cases, the effectiveness of these measures over
the past five years.
157. Which countries are subject to these measures and in what way?
US, Taxation Measures, 8th point, page 30
158. Please describe the effectiveness over the past five years - including the actual figure of the
deduction itself - of the reciprocal measure that aims at encouraging an allowance for advertising
expenses internationally.
159. Which countries are subject to the reciprocal measure ?
US, Taxation Measures, 9th point, page 31
160. With respect to the exclusion/deduction measures relating to certain foreign- earned income,
these measures appear to be put into action only in the case of emergency.  Given that these measures
are registered in the MFN exemptions list, however, could the determination of the Secretary of the
Treasury differ according to the country?
161. The reason for maintaining the measures is given as to "take into account problems created by
adverse conditions within particular foreign countr ies".  Similarly, would any adverse conditions in
the United States also be taken into consideration?
162. Please indicate the number and nature of relevant cases having occurred over the past five
years.
163. Would it be correct to understand that these measures do not come under the exceptional
provisions set out in Article XIV(a) and XIVbis:1(b)?
US, Taxation Measures, page 32
164. It is fair to say that there are quite a number of cases where local governments have an
independent authority for taxation, and that the taxation criteria differs according to the governments.
While such sub-federal taxation measures, as registered in the MFN exemptions list, are understood to
afford differential treatment depending on the nationality of the service suppliers, what specifically
are the differences in such taxation treatment?S/C/W/140
Page 12
US, Taxation Measures, page 33
165. While we understand that the federal taxation measures and sub-federal taxation measures are
included in a separate legislation, we would like to know the exact number and nature of the sub-
federal measures that substantively incorporate the provisions of federal law subject to an MFN
exemption under the GATS?
166. Please explain how sub-federal measures incorporating provisions of federal law, registered
as an MFN exemption, would be conducive to implementing fiscal policies of sub-central
governments.
US, All sectors (Land Use): with all, page 33
167. Please explain why only Wyoming, among all the nation's states, takes a reciprocal measure
regarding non-US citizens acquiring or inheriting land.
168. Please provide a list of the countries subject to this reciprocal measure.
169. Please explain, referring to real cases, what exactly are the benefits provided to US citizens in
a country which extends a reciprocal right to them.
US  All sectors: with Canada, page 33
170. The "maintenance of established preference" does not seem to be considered a reason for
prescribing the conditions to create the need for exemption.  Please explain in precise and rational
terms the reason for maintaining the measure.
171. Please explain in detail the procedures for simplified registration and periodic reporting
forms. What exactly is the difference between those applied to Canadian small businesses and those
applied to others?
172. Please indicate whether US small businesses can also benefit from the same preference.
173. In classifying businesses that are to be granted simplified registration procedures and periodic
reporting forms, objective criteria on an MFN basis, such as the accountancy standard, could be used
instead of a company's nationality.  What is US's opinion on this?
1. Business Services
Brunei, Legal services, page 34
174. The provision in column 5, that "exemption is necessary as the establishment of foreign law
firms in Brunei Darussalam is based on case-by case approval", is somewhat vague when considering
transparency.  Please describe clearly, for the purpose of transparency, what kind of administration
standards and procedures are applied.
175. Please explain why case-by- case approval is necessary.
176. Have there been any reviews over the past five years?S/C/W/140
Page 13
Costa Rica, Professional Services, page 35
177. In order to ensure minimum standards of quality for professional services, why doesn't Costa
Rica introduce other measures, such as qualification requirements on an MFN basis or a recognition
system under Article VII of the GATS
Dominican Republic, Legal Services, page 35
178. Does the term "architects and engineers" refer to "legal services"?
179. Please provide the specific reasons as to why "reciprocity legislation" provided in column 5
cannot be revised.
Honduras, Professional Services, page 36
180. Please provide the specific reasons as to why reciprocity is necessary for all professional
services.
Panama, Professional Services, page 36
181. Please provide the specific reasons as to why reciprocity is necessary for all professional
services.
Singapore  Legal Services: with all, page 36
182. The provision in column 5, that " exemption is necessary as the establishment of foreign law
firms in Singapore is based on case-by-case approval" is somewhat vague when consideringtransparency.  Please describe clearly, for the purpose of transparency, what kind of administration
standards and procedures are applied.
183. Please explain why case-by-case approval is necessary.
184. Have there been any reviews as referred to co lumn 4?  Please indicate if there is any
likelihood of this exemption being removed.
Thailand, Auditing services, page 36
185. Please provide the specific reasons why reciprocal treatment is necessary when referring to
auditing services.
186. Please provide a list of the countries to which this measure applies.
Venezuela, Professional services, page 37
187. Please indicate the necessary conditions in column 5.
Canada, Services incidental to agriculture, page 38
188. Is it possible for any country to sign an MOU with Canada concerning the temporary entry of
agricultural workers?  What criteria does Canada use to choose its partners?S/C/W/140
Page 14
Costa Rica  Advertising services, page 39
189. If Costa Rica considers the "preferences granted within the framework of Central American
integration", mentioned in column 5, are the reasons for creating the need for exemption, it would be
preferable to notify that measure referring to Article V instead of as an MFN exemption.  We would
like to have Costa Rica's view on this.
Thailand  publishing newspapers, page 40
190. Please explain precisely why reciprocity is necessary for publishing newspapers.
191. Please provide a list of the countries to which this measure applies.
2. COMMUNICATION SERVICES
India, Telecommunication, page 41
192. There is a common understanding that the application of different accounting rates under the
International Telecommunications Regulations would not give rise to action by Members under thedispute settlement of the WTO. We would like to  know whether India has any special reasons for
listing this measure under such circumstances.
Pakistan, Telecommunication, page 42
193. There is a common understanding that the application of different accounting rates under the
International Telecommunications Regulations would not give rise to action by Members under thedispute settlement of the WTO. We would like to  know whether Pakistan has any special reasons to
list this measure under such circumstances.
Sri Lanka, Telecommunication, page 43
194. There is a common understanding that the application of different accounting rates under the
International Telecommunications Regulations would not give rise to action by Members under thedispute settlement of the WTO. We would like to  know whether Sri Lanka has any special reasons to
list this measure under such circumstances.
Turkey, Telecommunication, page 43
195. There is a common understanding that the application of different accounting rates under the
International Telecommunications Regulations would not give rise to action by Members under thedispute settlement of the WTO. We would like to know whether Turkey has any special reasons to list
this measure under such circumstances.
US, Telecommunication, One-way satellite transm ission of DTH and DBS television services
and of digital audio services, page 44
196. Japan understands that there is no consensus among Members that DTH and DBS television
services and digital audio services are included in basic telecommunications services, which enables a
country to list those services in an MFN exemption list.  Is the US of the view that such exemption
has any effect?  If so, please explain the reason.  Please also explain for what purpose the US lists
such an exemption.S/C/W/140
Page 15
Australia, AV, page 45
197. The Description of measure indicating its inconsistency with Article II is as follows:  "Under
the Australian Government Co-production programme , Australia maintains preferential co-production
arrangements for film and television productions.  Official co-production status, which may be
granted to a co-production produced under these co-production arrangements, confers nationaltreatment on works covered by these arrangements, including in respect of access to finance and tax
concessions and simplified requirements for the temporary entry of skilled personnel into Australia
for the purposes of the co-production."
(i) Italy, UK, Canada and France are listed as examples of countries to which the
measure applies.  Has Australia concluded any preferential co-production
arrangements with other countries?
(ii) How did Australia come to the conclusion that "cultural co-operation might be
desirable" with these countries?  Are there any criteria for selecting countries with
which Australia thinks it desirable to conclude a preferential co-production
arrangement.
198. The condition creating the need for the exemption is to promote collaborative efforts.
However, such collaborative efforts could be considered to be pursued in a broader context. Pleaseexplain why such efforts cannot be pursued without deviating from the multilateral trade framework.
199. Please explain in detail the measures referred to as "finance and tax concessions".
200. Are all these "finance and tax concessions" measures accessible to any co-productions
produced under co-production arrangements with all countries?
201. Have there been any cases where the "finance and tax concessions" have actually been
applied?  If so, please provide the details.
Austria, AV, page 46
202. Please clarify the meaning of "common cultural links" and "common cultural heritage".
203. The condition creating the need for the exemption is cultural. Please explain the reason why
such cultural objectives cannot be achieved by granting the same treatment to all WTO Memberswithout deviating from the multilateral trade framework.
Austria, AV, With European countries, page 46
204. The Description of the measure indicating its inconsistency with Article II is the "Preferential
treatment of audiovisual works meeting European  origin criteria regarding screen-time access".
Please explain the meaning of the term "preferential treatment" in a concrete manner.
Bolivia, Audiovisual services, page 47
205. Bolivia accords national treatment for co-produced works as it supposedly  promotes artistic
and technical works. Please explain how national treatment granted in such a manner promotes art and
technique.S/C/W/140
Page 16
206. Please also explain why the promotion of artistic and technical works cannot be achieved by
granting the same treatment to all WTO Members without deviating from the multilateral trade
framework.
207. Please provide the names of "All countries with which bilateral or multilateral agreements are
in force".
Brazil, AV, page 47
208. It is stated in column 5 that the condition creating the need for the exemption is the promotion
of cultural exchange. Please explain why the promotion of cultural exchange cannot be achieved by
granting the same treatment to all WTO Members without deviating from the multilateral trade
framework.
Canada, AV, page 49
209. Film, Video and Television Programming Co-production
The Description of the measure indicating its inconsistency with Article II is as follows:
"Differential treatment is acco rded to works co-produced with persons of countries with
which Canada may have co-production agreements or arrangements, as well as to natural
persons engaged in such co-production"
Film, Video and Television Programming Co-production and Distribution for which the
Description reads as follows:
"Differential treatment is acco rded to works co-produced with persons of countries with
which Quebec may have co-production arrangements, and to natural persons engaged in such
co-productions, as well as to natural and juridical persons engaged in film and video
distribution pursuant to bilateral arrangements for the distribution of film, video andtelevision programming in its territory."
The conditions creating the need for the exemption on the above measures are respectively as
follows:
"For reasons of cultural policy, including to improve the availability of Canadian audiovisual
productions in Canada, to promote greater diversity among foreign audiovisual works on theCanadian market, as well as to promote the international exchange of audiovisual works" and
"for reasons of cultural policy, including to improve the availability of Quebecois audiovisual
productions in Quebec, to promote greater diversity among foreign audiovisual works on the
Quebec market, and to promote the international exchange of audiovisual works, as well as to
ensure that Quebec distributors have improved access to films originating from all parts the
world, while allowing partners in film distribution arrangements to continue to distribute in
Quebec films for which they are recognized as the producers or the holders of the worlddistribution rights".
Please explain to what extent such cultural policy has been achieved so far through the
granting of differential treatment under a co-production agreement or arrangement.
210. Would it not be possible to achieve the above-mentioned cultural policy without deviating
from the multilateral trade framework?S/C/W/140
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Chile, AV, page 50
211. Chile grants national treatment for co-produced works for the promotion of artistic and
technical works. Please explain how granting national treatment promotes art and technique.
212. Please also explain why the promotion of artistic and technical works cannot be achieved by
granting the same treatment to all WTO Members without deviating from the multilateral tradeframework.
EC, AV, page 55, unfair pricing practices
213. EC, Audiovisual services - Distribution of audiovisual works
The Description of the measure indicating its inconsistency with Article II reads as follows:
"Redressive duties which may be imposed in order to respond to unfair pricing practices, by
certain third countries distributors of audiovisual works."
We would like to know how the EC makes a decision on whether certain pricing practices are
unfair?  Please provide an explanation on objective criteria.
214. Have there been any cases where the EC or their Member States have actually imposed
redressive duties in order to respond to unfair pricing practices?  If so, please explain.
215. Is the imposition of redressive duties an anti-dumping measure?  If not, please explain the
difference.
EC, AV, protection against unfair actions, page 55
216. The Description of the measure indicating its inconsistency with Article II reads as follows:
"Measures taken to prevent, correct or counterbalance adverse, unfair or unreasonable
conditions or actions affecting EC audiovisual services, products or service providers, in
response to corresponding or comparable actions taken by other Members."
We would like to know on what basis the EC decides certain conditions or actions are
adverse, unfair or unreasonable?  Please provide an explanation on objective criteria.
217. Could other measures concerning audiovisual services, listed in the MFN exemption list of
other Members, be considered as "adverse, unfair or unreasonable conditions or actions affecting EC
audiovisual services"?  Please provide an adequate explanation.
EC, AV, works of European origin, page 56
218. "EC, Audiovisual Services - Production and distribution of audiovisual works through
broadcasting or other forms of transmission to the public"
The Description of the measure indicating its inconsistency with Article II reads as follows:
"Measures which define works of European origin, in such a way as to extend national
treatment to audiovisual works which meet certain linguistic and origin criteria regarding
access to broadcasting or similar forms of transmission."S/C/W/140
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EC describes that one of the conditions creati ng the need for the exemption is to achieve
linguistic policy objectives.  Please explain in concrete terms the reason why it would be
impossible to achieve linguistic policy objectives if trade is liberalized.
219. Please also explain what is meant by "linguistic policy objectives".
220. To what extent have such "linguistic policy objectives" been achieved so far from this
measure?
221. Please describe in full what is meant by "linguistic and origin criteria".  What does the term
"cultural value" mean?
EC, AV, page 56, measures based upon G to G framework agreements
222. EC, Audiovisual Services - production and distribution of cinematographic works and
television programmes
The Description of the measure indicating its inconsistency with Article II reads as follows:"Measures based upon government-to-government framework agreements, and plurilateral
agreements, on coproduction of audiovisual works, which confer National Treatment to
audiovisual works covered by these agreements, in particular in relation to distribution and
access to funding."
The EC lists the measures based upon government-to-government framework agreements and
plurilateral agreements in order to promote cultural links. Please provide the specific reasons
as to why the multilateral trade framework w ould impede the promotion of cultural links.
223. The EC describes that this measure applies to "all countries with whom cultural cooperation
may be desirable".  What is the EC's criteria for deciding whether a certain country is one "with whom
cultural cooperation may be desirable"?
224. Is Japan included in the list of "countries with whom cultural cooperation may be desirable"
for the EC?  Please indicate the names of such countries.
Finland, AV, page 58, with Parties to the Council of Europe Convention
225. Please describe in concrete terms what "cultural identity" in column 5 means. We would like
to know the policy background as to why an MFN exemption is necessary for promoting "cultural
identity".
Finland, AV, page 58, with European countries
226. Please explain what "regional identity" in column 5 exactly means.  We would like to know
the policy background as to why an MFN exemption is necessary for preserving and promoting
"regional identity".
Finland, AV, page 58, with Nordic countries
227. Please describe in concrete terms what "regional identity" in column 5 means.  We would like
to know the policy background as to why an MFN exemption is necessary for preserving and
promoting "regional identity".S/C/W/140
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Iceland, AV, page 59, with European countries
228. Please describe in concrete terms what "regional identity" in column 5 means.  We would like
to know the policy background as to why an MFN exemption is necessary for preserving and
promoting "regional identity".
Iceland, AV, page 60, with all countries
229. We would like to know the policy background as to why an MFN exemption is necessary for
promoting "cultural links".
New Zealand, AV, page 63
230. NZ describes that one of the conditions creating the need for the exemption is for supporting
the development of the New Zealand film industry. Please explain why such cultural objective cannot
be achieved by granting the same treatment to all WTO Members without deviating from the
multilateral trade framework.
231. How does New Zealand select a country where "cultural cooperation might be desirable"?
Norway, AV, page 64, with Parties to the Council of Europe Convention
232. Please describe what is meant by "cultural identity" and "certain linguistic policy objectives"
in column 5.  We would like to know the policy background as to why an MFN exemption is
necessary for promoting "cultural identity".
Norway, AV, page 64, with all countries
233. We would like to know the policy background as to why an MFN exemption is necessary for
promoting "cultural links".
Norway, AV, page 64, with Finland, No rway, Sweden, Iceland and Denmark
234. We would like to know the policy background as to why an MFN exemption is necessary for
promoting "cultural links".
Norway, AV, page 65, with European countries
235. Please describe in concretely terms what "regional identity" in column 5 means.  We would
like to know the policy background as to why an MFN exemption is necessary for preserving and
promoting "regional identity".
Singapore, Broadcasting, page 67
236. Please describe the preferential rights granted by the Singapore Broadcasting Corporation
(SBC).
237. What exactly are the social, economic and cultural relations that can be promoted through
such measures, and how can this be achieved?S/C/W/140
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Sweden, AV, page 69
238. Please explain why the "cultural identity within the broadcasting sector in Europe" or the
"regional identity of the countries concerned", as described in the conditions creating the need for the
exemption, cannot be promoted under the multilateral trade framework.
239. Please explain how Sweden considers that the measure can contribute to the preservation and
promotion of "regional identity".
Switzerland, AV, page 70
240. Please describe what exactly "the common cultural objectives" in column 5 mean.
241. Please explain the policy background as to why the objectives cannot be achieved under the
multilateral trade framework.
Venezuela, AV, page 71
242. Please describe in precise terms the conditions creating the need for the exemption.
3. Construction and Related Engineering Services
Indonesia, Construction, page 74
243. What is the meaning of the term "governmental f unded projects" in column 1?  If this means
government procurement, a Member does not have to register an MFN exemption pursuant to GATS
Article XIII, which states that "law regulations or requirements governing the procurement bygovernmental agencies of services purchased for governmental purpose" are not subject to GATS
Article II.  We would like to know whether Indonesia has any particular reason to list this measure.
244. What kind of preferences are given to ASEAN nationals in terms of international competitive
bidding?  Are only ASEAN nationals qualified to participate in such bidding?
245. What is the amount of budget for government funded construction projects allocated per year?
Liechtenstein, Construction and related Engineering, page 74
246. Liechtenstein describes that the right of commercial presence and the right of presence of
natural persons are dependent on reciprocity. Please clarify which Members are not granted these
rights.
4. Distribution Services
Liechtenstein, Distribution, page 74
247. Please explain why these provisions apply only to distribution services.
248. Please specify why it is necessary to give further preferential treatment to goods from the
EFTA countries, which already benefit from preferential tariff treatment under the EFTA itself.
Switzerland, Distribution, page 75
249. Please explain why these provisions apply only to distribution servicesS/C/W/140
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250. Please specify why it is necessary to give further preferential treatment to goods from the
EFTA countries, which already benefit from preferential tariff treatment under EFTA itself.
Venezuela, Petroleum related services, page P75
251. Please fill in the "conditions" column.
252. Please provide a list of the Central American and Caribbean countries to which the measure
applies.
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