RESTRICTED
WORLD TRADE WT/ACC/5
31October 1996
ORGANIZATION(96-4583)
ACCESSION TOTHE WORLD TRADE ORGANIZATION
Information tobeProvided onPolicy Measures Affecting Trade inServices
Technical Note bytheSecretariat
1. Thepurpose ofthistechnical noteistoassist acceding governments insubmitting factual
information ontheirpolicies affecting trade inservices sectors relevant totheireconomy asrequired
under Sections VI.1andVI.2oftheOutline Format foraMemorandum ontheForeign Trade Régime
(WT/ACC/1). Tothisend,thefollowing paragraphs andtheannexed tables aredesigned tofacilitate
thedescription ofpolicy measures1maintained byacceding governments andwhich arerelevant to
theprovisions oftheGeneral Agreement onTrade inServices (GATS). Ageneral description ofthe
overall market andregulatory structures ofthemost prominent services sectors intheacceding
governments mustbeprovided separately under Section VI.1oftheMemorandum ontheForeign Trade
Régime.
2. Itshould benoted thattherearetwosortofprovisions under theGATS. Thefirstaregeneral
obligations, some ofwhich apply toallservices sectors (e.g.MFN, transparency, etc.)andsome only
tothose under scheduled commitments. Thesecond arespecific commitments which arenegotiated
undertakings particular toeachMember. Toguide thesubmission ofinformation inamanner which
would alsofacilitate subsequent work, notably thetabling ofspecific commitments during thebilateral
market access negotiations inthisareabetween acceding governments andMembers, thepresent note
isbased ontheextensive technical work undertaken onthescheduling ofinitial commitments intrade
inservices (MTN.GNS/W/164 andAdd.1).
3. Theinformation tobeprovided inthiscontext iswithout prejudice toanyadditional information
which Members maywishtorequest from acceding governments onanyother aspects oftheirtrade
régime inservices. Acomplete listofservices sectors -the"Services Sectoral Classification List" -is
reproduced inAnnex I.
Measures Relating toMarket Access: Table 1
Modes ofSupply (Col1)
4. Foreachofthemeasures tobelisted incolumn 2,anindication should beprovided onits
relevant mode(s) ofsupply, inaccordance withthescope oftheGATS assetoutinArticle I.2.The
modes areessentially defined onthebasis oftheorigin oftheservice supplier andconsumer, andthe
degree andtypeoftheterritorial presence which theyhaveatthemoment theservice isdelivered.
1Measures refertoanymeasures taken by:(i)central, regional orlocalgovernment, andauthorities;
and(ii)non-governmental bodies intheexercise ofpowers delegated bycentral, regional orlocal
governments orauthorities (Article I.3ofGATS)WT/ACC/5
Page2
5. Thefollowing provides acommon understanding onwhateachmode covers:
(a) Cross-border supply: Theservice supplier istypically notpresent within theterritory ofthe
government where theservice isdelivered. Examples areinternational transport, thesupply
ofaservice through telecommunications ormail, andservices embodied inexported goods
(e.g.acomputer diskette, ordrawings).
(b) Consumption abroad: Thismode ofsupply isoftenreferred toas"movement oftheconsumer".
Theessential feature ofthismode isthattheservice isdelivered outside theterritory ofthe
government concerned. Ittypically includes crossing oftheborder bytheconsumer as,for
example, intourism services. However, activities suchasshiprepair abroad, where onlythe
property oftheconsumer moves, orissituated abroad, arealsocovered.
(c) Commercial presence: Thismode covers notonlythepresence ofjuridical persons inthestrict
legalsense, butalsothatoflegalentities which share some ofthesame characteristics. Itthus
includes,interalia,corporations,jointventures,partnership,representativeofficesandbranches.
(d) Presence ofnatural persons: Thismode covers natural persons whoarethemselves service
suppliers, aswellasnatural persons whoareemployees ofservice suppliers.
(e) Relationship between modes ofsupply: Where aservice transaction requires inpractical terms
theuseofmore thanonemode ofsupply, coverage ofthetransaction isonlyensured when
eachrelevant mode ofsupply isnoted.
Description ofMeasures (Col2)
6. Foreachofthemodes ofsupply listed incolumn 1,adetailed description2should beprovided
onanyexisting measures maintained bytheacceding government which maylimit market access
horizontally ortoanyspecific service sector. Such measures mayinclude:
(a) limitations3onthenumber ofservice suppliers (e.g.ceiling onthetotalnumber ofbanks, a
licence foranewrestaurant based onaneconomic needs test; quotas onforeign medical
practitioners; government orprivately owned monopoly forlabour exchange agency services;
nationality requirements forsuppliers ofservices);
(b) limitations onthetotalvalue oftransactions orassets (e.g.foreign banksubsidiaries limited
toxpercentoftotaldomestic assets ofallbanks);
(c) limitations onthetotalnumber ofservices operations oronthetotalquantity ofservice output
(e.g.restrictions onbroadcasting timeavailable forforeign films);
(d) limitations onthetotalnumber ofnatural persons (inparticular non-nationals) thatmaybe
employed inthesector (ortheshare ofwages paidtoforeign labour);
2Thedescription ofanyreported measure should besufficiently detailed toenable Members to
make ajudgement astotherelationship ofthemeasure inquestion andtherelevant types ofmeasures
((a)through (f))under Article XVIoftheGATS.
3"Limitations" refer tothe"terms", "conditions", "limitations" and"qualifications" asusedin
Articles XVIandXVII oftheGATS.WT/ACC/5
Page3
(e) restrictions on,orrequirements of,specific types oflegal entity through which thatservice
maybesupplied (e.g.commercial presence excludes representative offices, foreign companies
required toestablished subsidiaries, commercial presence musttaketheformofapartnership);
(f) limitations ontheparticipation offoreign capital (e.g.foreign equity ceiling ofxpercentfor
aparticular form ofcommercial presence);
Relevant Laws andRegulations (Col3)
7. Areference tothelawsorregulations relevant toeachofthemeasures listed incolumn 2should
belisted incolumn 3asappropriate. Where relevant, across-reference tolawsorregulations separately
noted under thesection describing horizontal provisions andthose relating toanyspecific service sector
should alsobeintroduced.
Measures Relating toNational Treatment: Table 2
Modes ofSupply (Col1)
8. Seeparagraphs 4-5.
Description ofMeasure (Col2)
9. Foreachofthemodes ofsupply listed incolumn 1,adetailed description4should beprovided
onanyexisting measures which maylimittheprovision ofnational treatment toforeign suppliers of
services horizontally orthose ofanyspecific service sector. Ineachcase, suchmeasures include any
measures providing, whether dejureordefacto,lessfavourable treatment thanthataccorded todomestic
suppliers (e.g.domestic broadcasters aregiven preference intheallocation oftransmission frequencies
within thenational territory, ameasure stipulates thatprior residency isrequired fortheissuing of
alicence tosupply theservice).
Relevant Laws andRegulations (Col3)
10. Seeparagraph 7.
Measures Relating toMost-Favoured-Nation Treatment: Table 3
Description ofMeasure (Col1)
11. Anindication should beprovided ofanyexisting measures which maybeapplied, whether
horizontally ortoanyspecific service sector, bytheacceding government onanon-MFN basis (e.g.
measures resulting from bilateral orother preferential agreements orreciprocity requirements under
domestic law).
Relevant Laws andRegulations (Col2)
12. Seeparagraph 7.
4Thedescription ofanyreported measure should besufficiently detailed toenable Members to
make ajudgement astotherelationship ofthemeasure inquestion andtherelevant description under
Article XVII oftheGATS.WT/ACC/5
Page4
Other Measures: Table 4
Description ofMeasure (Col1)
13. Listanyother measures, including subsidy programmes, whether applied horizontally orto
anyspecific service sector, which mayberelevant togainafullunderstanding onthemarket conditions
intheacceding government, withareference towhether andhowsuchmeasures arerelevant tothe
provisions ofArticles V,VI,VIIandVIIIoftheGATS.5
Relevant Laws andRegulations (Col2)
14. Seeparagraph 7.
Other Laws, Regulations andOther Legal Instruments: Table 5
15. Listalllaws, regulations orother legalinstruments, notalready citedinTables 1to4,which
arerelated totheimplementation ofthespecific regulatory structure andmodus operandi, whether
applied horizontally ortoanyspecific service sector, particularly withrespect totheArticles listed
inparagraph 13above astheyaffect foreign services suppliers.
5Withrespect toinformation affected byArticle VIoftheGATS, itshould beborne inmind that
licensing requirements donotrequire scheduling asreservations unless theyarenotconsistent with
Articles XVIorXVII oftheGATS, orotherwise maynotmeetthecriteria under Article VIreferred
toabove.WT/ACC/5
Page5ACCEDING GOVERNMENT
INFORMATION TOBEPROVIDED ONPOLICY MEASURES AFFECTING TRADE INSERVICES
TABLE 1:Measures Relating toMarket Access
A. HORIZONTAL
Mode(s) ofSupply Measures Relevant Laws andRegulations
(1)Cross-border supply
(2)Consumption abroad
(3)Commercial presence
(4)Presence ofnatural persons
(5)Relationship between modes ofsupply(1).........
(2)..........
(3).........
(4).........
(5).........
B. SPECIFIC SERVICE SECTOR ORSUB-SECTOR
Mode(s) ofSupply Measures Relevant Laws andRegulations
(1)Cross-border supply
(2)Consumption abroad
(3)Commercial presence
(4)Presence ofnatural persons
(5)Relationship between modes ofsupply(1).........
(2)..........
(3).........
(4).........
(5).........WT/ACC/5
Page6TABLE 2:Measures Relating toNational Treatment
A. HORIZONTAL
Mode(s) ofSupply Measures Relevant Laws andRegulations
(1)Cross-border supply
(2)Consumption abroad
(3)Commercial presence
(4)Presence ofnatural persons
(5)Relationship between modes ofsupply(1).........
(2)..........
(3).........
(4).........
(5).........
B. SPECIFIC SERVICE SECTOR ORSUB-SECTOR
Mode(s) ofSupply Measures Relevant Laws andRegulations
(1)Cross-border supply
(2)Consumption abroad
(3)Commercial presence
(4)Presence ofnatural persons
(5)Relationship between modes ofsupply(1).........
(2)..........
(3).........
(4).........
(5).........WT/ACC/5
Page7TABLE 3:Measures Relating toMost-Favoured-Nation Treatment (MFN)
A. HORIZONTAL
Measures6Relevant Laws andRegulations
B. SPECIFIC SERVICE SECTOR ORSUB-SECTOR
Measures6Relevant Laws andRegulations
TABLE 4:Other Measures
A. HORIZONTAL
Measures6Relevant Laws andRegulations
B. SPECIFIC SERVICE SECTOR ORSUB-SECTOR
Measures6Relevant Laws andRegulations
TABLE 5:Other Laws, Regulations andOther Legal Instruments
A. HORIZONTAL
B. SPECIFIC SERVICE SECTOR ORSUB-SECTOR
6Anindication ofmode(s) ofsupply should beprovided, ifrelevant.WT/ACC/5
Page8
ANNEX I
SERVICES SECTORAL CLASSIFICATION LIST7
(Annex 7ofWT/ACC/1)
1. BUSINESS SERVICES
A. Professional Services:
(a) Legal Services;
(b) Accounting, auditing andbookkeeping services;
(c) Taxation Services;
(d) Architectural services;
(e) Engineering services;
(f) Integrated engineering services;
(g) Urban planning andlandscape architectural services;
(h) Medical anddental services;
(i) Veterinary services;
(j) Services provided bymidwives, nurses, physiotherapists andpara-medical personnel;
(k) Other.
B. Computer andRelated Services:
(a) Consultancy services related totheinstallation ofcomputer hardware;
(b) Software implementation services;
(c) Dataprocessing services;
(d) Databaseservices;
(e) Other.
C. Research andDevelopment Services:
(a) R&D services onnatural sciences;
(b) R&D services onsocial sciences andhumanities;
(c) Interdisciplinary R&D services.
D. RealEstate Services:
(a) Involving ownorleased property;
(b) Onafeeorcontract basis.
E. Rental/Leasing Services without Operators:
(a) Relating toships;
(b) Relating toaircraft;
(c) Relating toother transport equipment;
(d) Relating toother machinery andequipment;
(e) Other.
7Please refertodocument MTN.GNS/W/120 forthedetails oftheUNprovisional Central Products
Classification (UNCPC) number corresponding toeachoneofthelisted sectors orsub-sectors.WT/ACC/5
Page9
F. Other Business Services:
(a) Advertising services;
(b) Market research andpublic opinion polling services;
(c) Management consulting service;
(d) Services related tomanagement consulting;
(e) Technical testing andanalysis services;
(f) Services incidental toagriculture, hunting andforestry;
(g) Services incidental tofishing;
(h) Services incidental tomining;
(i) Services incidental tomanufacturing;
(j) Services incidental toenergy distribution;
(k) Placement andsupply services ofPersonnel;
(l) Investigation andsecurity;
(m) Related scientific andtechnical consulting services;
(n) Maintenance andrepair ofequipment (notincluding maritime vessels, aircraft orother
transport equipment);
(o) Building-cleaning services;
(p) Photographic services;
(q) Packaging services;
(r) Printing, publishing;
(s) Convention services;
(t) Other.
2. COMMUNICATION SERVICES
A. Postal services.
B. Courier services.
C. Telecommunication services:
(a) Voice telephone services;
(b) Packet-switched datatransmission services;
(c) Circuit-switched datatransmission services;
(d) Telex services;
(e) Telegraph services;
(f) Facsimile services;
(g) Private leased circuit services;
(h) Electronic mail;
(i) Voice mail;
(j) On-line information anddatabaseretrieval;
(k) Electronic datainterchange (EDI);
(l) Enhanced/value-addedfacsimileservices,includingstoreandforward,storeandretrieve;
(m) Code andprotocol conversion;
(n) On-line information and/or dataprocessing (including transaction processing);
(o) Other.
D. Audiovisual services:
(a) Motion picture andvideo tapeproduction anddistribution services;
(b) Motion picture projection service;WT/ACC/5
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(c) Radio andtelevision services;
(d) Radio andtelevision transmission services;
(e) Sound recording;
(f) Other.
E. Other.
3. CONSTRUCTION AND RELATED ENGINEERING SERVICES
A. General construction work forbuildings.
B. General construction work forcivilengineering.
C. Installation andassembly work.
D. Building completion andfinishing work.
E. Other.
4. DISTRIBUTION SERVICES
A. Commission agents 'services.
B. Wholesale trade services.
C. Retailing services.
D. Franchising.
E. Other.
5. EDUCATIONAL SERVICES
A. Primary education services.
B. Secondary education services.
C. Higher education services.
D. Adult education.
E. Other education services.
6. ENVIRONMENTAL SERVICES
A. Sewage services.
B. Refuse disposal services.WT/ACC/5
Page11
C. Sanitation andsimilar services.
D. Other.
7. FINANCIAL SERVICES
A. Allinsurance andinsurance-related services:
(a) Life, accident andhealth insurance services;
(b) Non-life insurance services;
(c) Reinsurance andretrocession;
(d) Services auxiliary toinsurance (including broking andagency services).
B. Banking andother financial services (excluding insurance):
(a) Acceptance ofdeposits andother repayable funds from thepublic;
(b) Lending ofalltypes, including, interalia,consumer credit, mortgage credit, factoring
andfinancing ofcommercial transaction;
(c) Financial leasing;
(d) Allpayment andmoney transmission services;
(e) Guarantees andcommitments;
(f) Trading forownaccount orforaccount ofcustomers, whether onanexchange, inan
over-the-counter market orotherwise, thefollowing:
- money market instruments (cheques, bills, certificate ofdeposits, etc.);
- foreign exchange;
- derivative products including, butnotlimited to,futures andoptions;
- exchange rateandinterest rateinstruments, including products suchasswaps,
forward rateagreements, etc.;
- transferable securities;
- other negotiable instruments andfinancial assets, including bullion.
(g) Participation inissues ofallkinds ofsecurities, including under-writing andplacement
asagent (whether publicly orprivately) andprovision ofservice related tosuchissues;
(h) Money broking;
(i) Asset management, suchascashorportfolio management, allforms ofcollective
investment management, pension fundmanagement, custodial depository andtrust
services;
(j) Settlement andclearing services forfinancial assets, including securities, derivative
products andother negotiable instruments;
(k) Advisory andother auxiliary financial services onalltheactivities listed inArticle 1B
ofMTN.TNC/W/50, including credit reference andanalysis, investment andportfolio
research andadvice, advice onacquisitions andoncorporate restructuring andstrategy;
(l) Provision andtransfer offinancial information, andfinancial dataprocessing andrelated
software byproviders ofother financial services.
C. Other.
8. HEALTH RELATED AND SOCIAL SERVICES
(other thanthose listed under 1.A.h-j.)
A. Hospital services.WT/ACC/5
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B. Other Human Health Services.
C. Social Services.
D. Other.
9. TOURISM AND TRAVEL RELATED SERVICES
A. Hotels andrestaurants (including catering).
B. Travel agencies andtouroperators services.
C. Tourist guides services.
D. Other.
10. RECREATIONAL, CULTURAL AND SPORTING SERVICES
(other thanaudiovisual services)
A. Entertainment services (including theatre, livebands andcircus services).
B. News agency services.
C. Libraries, archives, museums andother cultural services.
D. Sporting andother recreational services.
E. Other.
11. TRANSPORT SERVICES
A. Maritime Transport Services:
(a) Passenger transportation;
(b) Freight transportation;
(c) Rental ofvessels withcrew;
(d) Maintenance andrepair ofvessels;
(e) Pushing andtowing services;
(f) Supporting services formaritime transport.
B. Internal Waterways Transport:
(a) Passenger transportation;
(b) Freight transportation;
(c) Rental ofvessels withcrew;
(d) Maintenance andrepair ofvessels;
(e) Pushing andtowing services;
(f) Supporting services forinternal waterway transport.WT/ACC/5
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C. AirTransport Services:
(a) Passenger transportation;
(b) Freight transportation;
(c) Rental ofaircraft withcrew;
(d) Maintenance andrepair ofaircraft;
(e) Supporting services forairtransport.
D. Space Transport.
E. RailTransport Services:
(a) Passenger transportation;
(b) Freight transportation;
(c) Pushing andtowing services;
(d) Maintenance andrepair ofrailtransport equipment;
(e) Supporting services forrailtransport services.
F. Road Transport Services:
(a) Passenger transportation;
(b) Freight transportation;
(c) Rental ofcommercial vehicles withoperator;
(d) Maintenance andrepair ofroadtransport equipment;
(e) Supporting services forroadtransport services.
G. Pipeline Transport:
(a) Transportation offuels;
(b) Transportation ofother goods.
H. Services auxiliary toallmodes oftransport:
(a) Cargo-handling services;
(b) Storage andwarehouse services;
(c) Freight transport agency services;
(d) Other.
I. Other Transport Services.
12. OTHER SERVICES NOT INCLUDED ELSEWHERE