WORLD TRADE S/C/N/55
25April 1997
ORGANIZATION(97-1776)
Original: English Council forTrade inServices
JOINT COMMUNICATION FROM THE EUROPEAN COMMUNITIES
AND THEIR MEMBER STATES AND BULGARIA
Notification pursuant toArticle V.7(a) ofthe
General Agreement onTrade inServices
Thefollowing joint communication hasbeen received from thedelegations oftheEuropean
CommunitiesandtheirMemberStatesandBulgaria.Thisjointcommunicationconstitutesthenotification
oftheEurope Agreement establishing anassociation between theEuropean Communities andtheir
Member States andBulgaria.
________________
1. Members notifying:
TheEuropean Communities andtheir Member States andtheRepublic ofBulgaria.
2. Notification under Article(s):
Article Vparagraph 7(a).
3. Date ofentry into force:
1February 1995
Duration:
Unlimited period oftime.
4. Agency responsible forenforcement ofthemeasure:
Association Council, Parties 'legislative, regulatory andjudicial authorities.
5. Description ofthemeasure:
(a) Provisions intheEurope Agreement which arerelevant totheGATS:
- Article 1:"Objectives".S/C/N/55
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- Article 7:"General principles".
- Title IV:Chapter I:"Movement ofworkers", Chapter II:"Establishment",
Chapter III:"Supply ofservices between theCommunity andBulgaria" and
Chapter IV:"General provisions".
- Title V:Chapter I:"Current payments andmovement ofcapital", Chapter II:
"Competition andother economic provisions", Chapter III:"Approximation
oflaws".
- Title VI:"Economic cooperation", inparticular Article 72,Article 73on
Industrial cooperation, Article 74onInvestment promotion andprotection,
Article 77onEducation andtraining, Article 82onTransport, Article 83on
Telecommunications andpostal services, Article 84onBanking, insurance and
otherfinancialservices,Article89onSocialcooperation,Article90onTourism,
Article 91onSmall andmedium-sized enterprises, Article 92onInformation
andaudiovisual sector.
- Title IX: "Institutional, general andfinal provisions".
(b) These provisions oftheEurope Agreement constitute anagreement liberalising trade
inservices between theEuropean Communities andtheir Member States, ontheone
part, andBulgaria, ontheother part, inthesense ofArticle V,para 1,given that:
- itprovides foruniversal sectoral coverage ofallservice activities, subject to
agradual coverage ofsome services 'activities (seeArticle 45para 2(i)),the
temporary exemption under Article 52(i.e. establishment inairtransport
services, inland-waterways transport services andmaritime cabotage transport
services) andtheexception under Article 54.These exclusions arefully
consistent with theexceptions provided forunder theGATS andmore in
particular with theAirTransport Annex, Articles I3(b),XIV andXIVbis;
- itprovides fortheliberalisation oftrade through allmodes ofsupply: "cross-
border supply ofservices", "consumption abroad", "commercial presence" (with
orwithout movement ofnatural persons) aswellasthrough "presence ofnatural
persons" (seeinparticular Articles 38,42,43,45,49,53,56,57and60);
- itprovides fortheabsence orelimination ofsubstantially alldiscrimination
through elimination ofexisting discriminatory measures andprohibition ofnew
ormore discriminatory measures (seeinparticular Articles 38,45,46,56,57,
63,114and116);
- thetime-tablefortheprogressiveeliminationofexistingdiscriminatorymeasures
isreasonable: atransitional period ofamaximum of10years (see
Articles 7and45);
- thedegree ofliberalisation oftrade inservices between theEuropean
Communities andtheir Member States, ontheonepart, andBulgaria, onthe
other part, goes beyond therequirements anddisciplines oftheGATS inmany
respects. Toachieve fullnational treatment, additional disciplines andmeans
ofliberalisation areforeseen such as:mutual recognition andapproximationS/C/N/55
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oflaws, behaviour ofmonopolies andexclusive service providers, restrictive
business practices, payments, transfers andfreemovement ofcapital.
(c) Consideration should alsobegiven, pursuant toArticle Vparagraph 2ofGATS, to
therelationship ofthisagreement tothewider process ofeconomic integration between
theEuropean Communities andtheir Member States, ontheonepart, andBulgaria,
ontheother part, provided forunder theEurope Agreement. Accordingly, economic
integration isnotonly taking place inthefield ofservices, butalsoinrespect oftrade
ingoods andintheeconomic relations ingeneral. Inaddition, Bulgaria 'sultimate
objective istobecome amember oftheEuropean Community.
6. Members specifically affected, ifany:
None.
7. Text available from:
- WTO Secretariat
- theEuropean Commission
- Bulgaria.