WORLD TRADE GATS/SC/46/Suppl.3
26February 1998
ORGANIZATION(98-0654)
Trade inServices
JAPAN
Schedule ofSpecific Commitments
Supplement 3
(This isauthentic inEnglish only)
____________________
Thistextreplaces theFinancial Services section contained indocument
GATS/SC/46/Suppl.1/Rev.1.GATS/SC/46/Suppl.3
Page2JAPAN
SCHEDULE OFSPECIFIC COMMITMENTS
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
Inaddition toPartIIIofthisAgreement andtheAnnex onFinancial Services, Japan undertakes itsspecific commitments withrespect toFinancial Services
under thisAgreement inaccordance withtheUnderstanding onCommitments inFinancial Services (hereinafter referred toasthe"Understanding", attached to
thisschedule, which forms anintegral partofthisschedule). Thus, theobligations under theUnderstanding areincurred inthesectors ofFinancial Services
additionally tothose covered bytheprovisions ofPartIIIofthisAgreement andtheAnnex onFinancial Services.
Forprudential reasons within thecontext ofparagraph 2(a)oftheAnnex onFinancial Services, Japan shall notbeprevented from taking measures such as
non-discriminatory limitations onjuridical forms ofacommercial presence. Forthesame reasons, Japan shall notbeprevented from applying
non-discriminatory limitations concerning admission tothemarket ofnewfinancial services which shall beconsistent withregulatory framework aimed at
achieving such prudential objectives. Inthiscontext, securities firms areallowed todealinsecurities defined intherelevant Japanese law,andbanks arenot
allowed todealinthose securities unless allowed inaccordance withthesaidlaw.
With respect tospecific commitments inthesectors ofFinancial Services, services supplied intheterritory ofaMember other thanJapan totheservice
consumer inJapan without anyactive marketing from theservice supplier areconsidered asservices supplied under paragraph 2(b)ofArticle Iofthis
Agreement.
A. Insurance and
Insurance-Related ServicesSpecific commitments inthemarket access
column withrespect tothesupply ofaservice
asprescribed inparagraphs 2(a)and(b)of
Article IofthisAgreement areunbound except
forobligations under paragraphs 3and4ofthe
Understanding respectively which areincurred
inthissector additionally tothose covered by
theprovisions ofPartIIIofthisAgreement and
theAnnex onFinancial Services, subject to
conditions andqualifications setoutbelow.Japan undertakes the
ADDITIONAL
COMMITMENTS
attached hereto.GATS/SC/46/Suppl.3
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
(1) Commercial presence isinprinciple
required forinsurance contracts onthe
following items andanyliability arising
therefrom:
(a)goods being transported within
Japan;
(b)ships ofJapanese registration which
arenotused forinternational
maritime transport.(1) None
60percentofamounts ofreinsurance on
thecompulsory automobile third party
liability insurance issubject tothe
compulsory coverage bytheGovernment.
Insurance services arenotallowed tobe
supplied through anintermediary in
Japan.
(2) Commercial presence isinprinciple
required forinsurance contracts onthe
following items andanyliability arising
therefrom:
(a)goods being transported within
Japan;
(b)ships ofJapanese registration which
arenotused forinternational
maritime transport.(2) NoneGATS/SC/46/Suppl.3
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
60percentofamounts ofreinsurance on
thecompulsory automobile third party
liability insurance issubject tothe
compulsory coverage bytheGovernment.
Insurance services arenotallowed tobe
supplied through anintermediary in
Japan.
(3) 60percentofamounts ofreinsurance on
thecompulsory automobile third party
liability insurance issubject tothe
compulsory coverage bytheGovernment.
Insurance intermediation services arenot
allowed tobesupplied forinsurance
contracts made byaninsurance service
supplier whoisnotlicensed inJapan.(3) None except asindicated in
HORIZONTAL COMMITMENTS
(4) Unbound except asindicated in
HORIZONTAL COMMITMENTS(4) Unbound except asindicated in
HORIZONTAL COMMITMENTSGATS/SC/46/Suppl.3
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
B. Banking andOther
Financial Services
(excluding Insurance and
Insurance-Related Services)Specific commitments inthemarket access
column withrespect tothesupply ofaservice
asprescribed inparagraphs 2(a)and(b)of
Article IofthisAgreement areunbound except
forobligations under paragraphs 3and4ofthe
Understanding respectively which areincurred
inthissector additionally tothose covered by
theprovisions ofPartIIIofthisAgreement and
theAnnex onFinancial Services subject to
conditions andqualifications setoutbelow.Japan undertakes the
ADDITIONAL
COMMITMENTS
attached hereto.
(1) Commercial presence isrequired for
discretionary investment management
services.
(2) “None ”after April 1998.
Before April 1998, supply ofservices is
subject toallthefollowing limitations:
Overseas deposits andtrustcontracts
denominated inforeign currencies, the
sumofwhich areover 200million yen
value, andthose denominated inyenare
subject toapproval. Business
corporations which satisfy thestandards
ofin-house systems relating tolegal
affairs, riskmanagement andfinancial
management setoutbytheMinistry of
Finance maybegiven anapproval
effective foranindefinite period oftime
withrespect tooverseas deposits
denominated inforeign currencies over
200million yenvalue forthepurpose of
portfolio investment subject onlyto
expostreporting.(1) None
(2) NoneGATS/SC/46/Suppl.3
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
Thefollowing capital transaction services
maybesupplied through authorized
foreign exchange banks inJapan, or
otherwise areinprinciple subject to
approval:
(a) Trade in:
(i)payment instruments such as
cheques andbills;
(ii)foreign exchange; and
(iii)derivative products which
involve outright foreign
exchange transactions such as
currency spotoptions.
Business corporations areexempted
from obtaining approval andmay
invest inallsecurities derivative
products listed onoverseas exchanges
fortheir ownaccount subject onlyto
expostreporting.
Business corporations which satisfy
thestandards ofin-house systems
relating tolegal affairs, risk
management andfinancial
management setoutbytheMinistry
ofFinance areexempted from
obtaining approval andmayinvest in
financial futures andoptions listed on
overseas exchanges fortheir own
account subject onlytoexpost
reporting.GATS/SC/46/Suppl.3
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
(b)Special methods ofsettlement such as
offsetting andanymethod whereby a
resident either makes payment forthe
non-resident concerned toanother
resident orreceives payment made
byanother resident forthenon-
resident concerned.
(c)Swaps
(3) Commercial presence forinvestment trust
management services must bejuridical
person established inJapan.
(4) Unbound except asindicated in
HORIZONTAL COMMITMENTS(3) Thedeposit insurance system does not
cover deposits taken bybranches of
foreign banks.
Asindicated inHORIZONTAL
COMMITMENTS
(4) Unbound except asindicated in
HORIZONTAL COMMITMENTS(3) With respect tothe
assets of
Employees ’Pension
Funds qualified by
theMinister of
Health andWelfare
tobemanaged by
discretionary
investment
management service
suppliers, Japan no
longer employs the
classification of
New Money*and
assets other than
New Money.
*New Money isanasset mainly consisting ofaccumulation ofpremiums collected byEmployees ’Pension Funds after thedaywhen such Funds arequalified by
theMinister ofHealth andWelfare asappropriate forexpanding their means ofasset management toinclude discretionary investment management services.GATS/SC/46/Suppl.3
Page8
JAPAN: ADDITIONAL COMMITMENTS
A. Insurance andInsurance-Related Services
Whenever specific commitments intheadditional commitments column statethatappropriate
authorities willapprove anapplication orwillnotreject anotification, theapplication ornotification
mustmeettheapplicable legalcriteria. Theappropriate authorities willapply thelegalcriteria ina
fairandtransparent manner, andwillinterpret them withaview toward allowing insurance service
suppliers todifferentiate, onthebasisoftheriskinsured, therates, forms anddistribution ofproducts.
1. Appropriate authorities willapprove applications foradirect response system forautomobile
insurance,andwillapprovepaymentofpremiumsthroughtheuseofcreditcardswiththepolicyeffective
from thedatewhen theinsurance service supplier accepts credit cardpayment.
Adirectresponsesystem("Tsushin-Hanbai")forautomobileinsuranceisdefinedasadistribution
methodwherebyinsuranceservicesuppliersoffertheirproductstoconsumersthroughadvertisingmedia,
suchasnewspapers andmagazines, andthrough direct mailortelephone calls; accept applications of
consumers delivered viamailortelephone calls; andenter intocontracts withconsumers through an
exchange viamailortelephone calls, without meeting theconsumers.
2. Effective 1April 1998, appropriate authorities willexpand thescope oftheadvisory ratesystem
forloading ratesofcommercial fireinsurance, bylowering theminimum amount percontract toseven
billion yen.
3. Appropriate authorities include thefollowing sixteen products onthelistofproducts towhich
thenotification system applies withrespect totheratesandriders forsuchproducts andwillallow,
withinthestandardprocessingperiodofninetydays,marketingoftheproductsnotifiedtotheappropriate
authorities (i.e.,willnotreject thenotifications): medical malpractice liability insurance ("Ishi Baisho
Sekinin Hoken"), advanced lossofmachinery profit insurance ("Sogyo Kaishi Chien Hoken"), delayed
startofconstruction insurance ("Kaigyo Chien Hoken"), civilengineering completed risksinsurance
("Doboku Kozobutsu Hoken"), nuclear energy insurance ("Genshiryoku Hoken"), umbrella liability
insurance ("Kigyo Hokatsu Baisho Sekinin Hoken"), environment liability insurance ("Kankyo Osen
Baisho Sekinin Hoken"), erection insurance ("Kumitate Hoken"), moveable comprehensive insurance
("Dosan Sogo Hoken"), computer comprehensive insurance ("Kompyuta Sogo Hoken"), boiler and
turbo-set insurance ("Boiler Turbo-set Hoken"), transit insurance ("Unsoh Hoken"), credit cardtheft
insurance ("Credit Card Tonan Hoken"), general liability insurance ("Baisho Sekinin Hoken"),
construction all-risk insurance ("Kensetsu KojiHoken"), andsurety bonds ("Hosho Shoken").
4. (a) Bynolaterthan1July1998, appropriate authorities willeliminate obligations for
members ofarating organization touserates calculated bytherating organization forthe
provision ofinsurance services while allowing members ofarating organization touse,for
thepurpose ofcalculating rates, thestatistical datacollected bytherating organization.
(b) When thenecessary legislative changes aremade andtheiraccompanying administrative
measures come intoeffect toimplement subparagraph (a)above, theappropriate authorities
willapprove, within thestandard processing period ofninety daysaftersubmission, applications
allowing allinsurance service suppliers todifferentiate, onthebasis oftheriskinsured, the
rates, forms anddistribution ofproducts, without regard towhether suchapplications use
statistical ratescalculated bytherating organization.
(c) Intheinterim before thenecessary legislative changes aremade andtheiraccompanying
administrative measures come intoeffect, theappropriate authorities willapprove, within theGATS/SC/46/Suppl.3
Page9
standard processing period ofninety daysaftersubmission, applications forproducts inmajor
product categories inthelifeandnon-life insurance sectors which provide fortheflexibility
todifferentiate, onthebasisoftheriskinsured, therates, forms anddistribution ofproducts.
(d) Appropriate authorities willapprove applications forvoluntary automobile insurance
withtheflexibility todifferentiate, onthebasis oftheriskinsured, therates, forms and
distribution ofproducts, including adirect response system forautomobile insurance with
differentiated rates (collectively referred toas"differentiated autoinsurance") effective
1September 1997. Differentiation onthebasisofriskinsured includes differentiation ofrates
outside thebanded ratesbased onthefollowing riskfactors: age,sex,driving history, usage
(e.g., commercial, personal) andpattern ofuse(e.g., mileage peryear), geography (byregion,
i.e.Hokkaido, Shikoku, Kyushu, andHonshu, which willbedivided intoTohoku,
Kanto-Koshinetsu, Hokuriku-Tokai, andKinki-Chugoku), vehicle type,vehicle safety features,
andmulti-car ownership.
5. (a) Appropriate authorities willnotpermit non-life insurance subsidiaries oflifeinsurance
service suppliers tosellthefollowing personal accident insurance:
(i) personalaccidentinsurancebasedonasinglepolicywrittenforand/orendorsed1
bynon-profit inter-industry associations orfoundations formanagers of
corporations2;
(ii) domestic andoverseas travel accident insurance through travel agents;
(iii) personal accident insurance forstudents marketed through orendorsed1by
schools (including alllevels ofschools, andincluding public andprivate
schools), orscholastic, student orparent organizations orassociations (i.e.,
"Gakusei-Dantai", "Dosokai" andPTA);
(iv) personal accident insurance through direct response methods ("Tsushin-
Hanbai");
(v) group personal accident insurance except when theinsurance subsidiaries are
acting asleadmanagers among co-insurers orsolounderwriter, andwhen the
insurance issoldtoagroup thathasnotheldinthepreceding sixmonths a
policy forthesameorasubstitutable group personal accident insurance product
bysmall tomedium and/or foreign insurance service suppliers; and
(vi) maturity refund personal accident insurance.
(b) Appropriate authorities willnotpermit lifeinsurance subsidiaries ofnon-life insurance
service suppliers tosellstand-alone cancer insurance andstand-alone medical insurance, and
theappropriate authorities willmaintain thelimitregarding theratioofriderbenefits tobase
policy benefits thathadexisted before thenewInsurance Business Lawcame intoforce on
1April 1996.
1"Endorse" means torecommend ("suisho") and/or back-up ("koen").
2"Non-profit inter-industry associations orfoundations formanagers ofcorporations" means the
"Zenkoku Hojinkai Sorengo", "Kyokuren Hojinkai", "Kenhojinkai Rengokai", "Tan-i Hojinkai",
"Nozeikyokai Rengokai", "Burokku-kai" and"Nozeikyokai".GATS/SC/46/Suppl.3
Page10
(c) Appropriate authorities willterminate themeasures3toavoid radical change inthethird
sector asdescribed insubparagraphs (a)and(b)twoandone-half years afterthedatewhen
thenecessary legislative changes aremade andtheiraccompanying administrative measures
come intoeffect asdescribed inparagraph 4,oncondition thatallthefollowing measures will
havebeenimplemented bythatdate. Isolated instances ofminor divergence withrespect to
thestandard processing period ofthemeasures setoutinsubparagraphs (i),(iii)(B), or(v)
below donotconstitute afailure toimplement thesemeasures forthepurpose ofthisparagraph.
(i) theappropriate authorities approve, within thestandard processing period of
ninety days, applications fordifferentiated autoinsurance asdescribed in
subparagraph 4(d);
(ii) theappropriate authorities havelowered theminimum insured amount per
contract required forapplication oftheadvisory ratesystem forcommercial
fireinsurance asdescribed inparagraph 2;
(iii) withrespect tothenotification system, theappropriate authorities;
(A) haveputintoeffect thenotification system withrespect tothelastsix
products setoutinparagraph 3;and
(B) allow, within thestandard period ofninety days, marketing ofthe
sixteen products setoutinparagraph 3notified totheappropriate
authorities (i.e., willnotreject thenotifications);
(iv) thenecessary legislative changes aremade andtheir accompanying
administrative measures come intoeffect toeliminate obligations formembers
ofarating organization touseratescalculated bytherating organization as
described inparagraph 4;and
(v) withrespect toapplications fordifferentiated products orrates, theappropriate
authorities approve, within thestandard period ofninety days, applications
submitted.
Intheevent thatnoapplications ornotifications havebeensubmitted byninety daysbefore
theabove-mentioned date, themeasures insubparagraphs (iii)(B) and(v)willbeconsidered tohave
beenimplemented.
6. Ifaninsurance service supplier hassubmitted documents toappropriate authorities related to
insurance products orrates, which theinsurance service supplier considers tobeanapplication, the
insurance service supplier maymake arequest totheappropriate authorities todetermine itsstatus.
Theappropriate authorities willrespond without undue delay tosucharequest andindicate whether
theyconsider thedocuments toconstitute aformal application.
B. Banking andOther Financial Services
(excluding Insurance andInsurance-Related Services)
1. With respect totheassets ofEmployees 'Pension Funds (hereinafter referred toas"Funds")
qualified byappropriate authorities tobemanaged bydiscretionary investment management service
3The"measures" donotapply togroup long-term disability insurance ("Dantai Choki Shogai Shotoku
Hosho Hoken") andincome indemnity insurance ("Shotoku Hosho Hoken"), including individual longterm
disability insurance ("Choki Shogai Tokuyaku").GATS/SC/46/Suppl.3
Page11
suppliers, theeight-year qualification requirement withrespect totherequired duration oftheFunds
following theirestablishment isreduced tothree years.
2. There isaceiling of1/2oftotalassets withrespect totheassets ofFunds which canbemanaged
bydiscretionary investment management service suppliers. Theceiling willbeeliminated byMarch
1999.
3. Noassetallocationguidelinesareappliedtoindividualpensionfundmanagementservicesuppliers
withrespect tothemanagement offundassets ofthePension Welfare Service Public Corporation
(excluding thecommingled fundmanagement ofinsurance companies) oroftheassets ofFunds
(excluding thecommingled fundmanagement ofinsurance companies) which canbemanaged by
discretionary investment management service suppliers.
4. Investment trustmanagement services anddiscretionary investment management services may
besupplied byoneentity ifthatentity satisfies therelevant prudential provisions ofJapanese Laws
andtheprudential standards setoutbyappropriate authorities.
5. Appropriate authorities permit thePension Welfare Service Public Corporation toallow
investment advisory companies toparticipate inthemanagement ofitsfundassets through avariation
onthe"Shiteitan" framework. Atthetimeofthenextcomprehensive review oftheJapanese pension
system in1999, thisscheme would bereviewed.
"Shiteitan" isadesignated money trustforseparate investment management provided bytrust
banks. Under "Shiteitan", beneficial owners donotspecify individual objects ofstocks, bonds orother
financial instruments tobepurchased. Trust banks arepermitted toguarantee theprincipal of"Shiteitan"
under domestic lawsandregulations.
6. Appropriate authorities willfullyutilize theexisting mechanisms available tothemtorespond
expeditiously toaccommodate innovations insecurities products, while ensuring themostappropriate
supervision ofmarkets from prudential viewpoints.GATS/SC/46/Suppl.3
Page12
UNDERSTANDING ONCOMMITMENTS INFINANCIAL SERVICES
Participants intheUruguay Round havebeenenabled totakeonspecific commitments with
respect tofinancial services under theGeneral Agreement onTrade inServices (hereinafter referred
toasthe"Agreement") onthebasis ofanalternative approach tothatcovered bytheprovisions of
PartIIIoftheAgreement. Itwasagreed thatthisapproach could beapplied subject tothefollowing
understanding:
(i) itdoesnotconflict withtheprovisions oftheAgreement;
(ii) itdoesnotprejudice theright ofanyMember toschedule itsspecific commitments
inaccordance withtheapproach under PartIIIoftheAgreement;
(iii) resulting specific commitments shallapply onamost-favoured-nation basis;
(iv) nopresumption hasbeencreated astothedegree ofliberalization towhich aMember
iscommitting itself under theAgreement.
Interested Members, onthebasisofnegotiations, andsubject toconditions andqualifications
where specified, haveinscribed intheirschedule specific commitments conforming totheapproach
setoutbelow.
A. Standstill
Anyconditions, limitations andqualifications tothecommitments noted below shallbelimited
toexisting non-conforming measures.
B. Market Access
Monopoly Rights
1. Inaddition toArticle VIIIoftheAgreement, thefollowing shallapply:
EachMember shalllistinitsschedule pertaining tofinancial services existing monopoly rights
andshallendeavourtoeliminatethemorreducetheirscope.Notwithstandingsubparagraph1(b)
oftheAnnex onFinancial Services, thisparagraph applies totheactivities referred toin
subparagraph 1(b)(iii) oftheAnnex.
Financial Services purchased byPublic Entities
2. Notwithstanding Article XIIIoftheAgreement, eachMember shallensure thatfinancial service
suppliers ofanyother Member established initsterritory areaccorded most-favoured-nation treatment
andnational treatment asregards thepurchase oracquisition offinancial services bypublic entities
oftheMember initsterritory.
Cross-border Trade
3. EachMember shallpermit non-resident suppliers offinancial services tosupply, asaprincipal,
through anintermediary orasanintermediary, andunder terms andconditions thataccord national
treatment, thefollowing services:GATS/SC/46/Suppl.3
Page13
(a) insurance ofrisksrelating to:
(i) maritime shipping andcommercial aviation andspace launching andfreight
(including satellites), withsuchinsurance tocover anyorallofthefollowing:
thegoods being transported, thevehicle transporting thegoods andanyliability
arising therefrom; and
(ii) goods ininternational transit;
(b) reinsurance andretrocession andtheservices auxiliary toinsurance asreferred toin
subparagraph 5(a)(iv) oftheAnnex;
(c) provision andtransfer offinancial information andfinancial dataprocessing asreferred
toinsubparagraph 5(a)(xv) oftheAnnex andadvisory andother auxiliary services,
excluding intermediation, relating tobanking andother financial services asreferred
toinsubparagraph 5(a)(xvi) oftheAnnex.
4. Each Member shallpermit itsresidents topurchase intheterritory ofanyother Member the
financial services indicated in:
(a) subparagraph 3(a);
(b) subparagraph 3(b); and
(c) subparagraphs 5(a)(v) to(xvi)oftheAnnex.
Commercial Presence
5. EachMember shallgrant financial service suppliers ofanyother Member therighttoestablish
orexpand within itsterritory, including through theacquisition ofexisting enterprises, acommercial
presence.
6. AMember mayimpose terms, conditions andprocedures forauthorization oftheestablishment
andexpansion ofacommercial presence insofarastheydonotcircumvent theMember 'sobligation
under paragraph 5andtheyareconsistent withtheother obligations oftheAgreement.
NewFinancial Services
7. AMembershallpermitfinancialservicesuppliersofanyotherMemberestablishedinitsterritory
tooffer initsterritory anynewfinancial service.
Transfers ofInformation andProcessing ofInformation
8. NoMember shalltakemeasures thatprevent transfers ofinformation ortheprocessing of
financial information, including transfers ofdatabyelectronic means, orthat,subject toimportation
rules consistent withinternational agreements, prevent transfers ofequipment, where suchtransfers
ofinformation, processing offinancial information ortransfers ofequipment arenecessary forthe
conduct oftheordinary business ofafinancial service supplier. Nothing inthisparagraph restricts
therightofaMember toprotect personal data,personal privacy andtheconfidentiality ofindividual
records andaccounts solongassuchrightisnotusedtocircumvent theprovisions oftheAgreement.GATS/SC/46/Suppl.3
Page14
Temporary Entry ofPersonnel
9. (a) EachMember shallpermit temporary entry intoitsterritory ofthefollowing personnel
ofafinancial service supplier ofanyotherMember thatisestablishing orhasestablished
acommercial presence intheterritory oftheMember:
(i) senior managerial personnel possessing proprietary information essential to
theestablishment, control andoperation oftheservices ofthefinancial service
supplier; and
(ii) specialists intheoperation ofthefinancial service supplier.
(b) Each Member shall permit, subject totheavailability ofqualified personnel inits
territory, temporary entry intoitsterritory ofthefollowing personnel associated with
acommercial presence ofafinancial service supplier ofanyother Member:
(i) specialists incomputer services, telecommunication services andaccounts of
thefinancial service supplier; and
(ii) actuarial andlegalspecialists.
Non-discriminatory Measures
10. EachMember shallendeavour toremove ortolimitanysignificant adverse effects onfinancial
service suppliers ofanyother Member of:
(a) non-discriminatory measures thatprevent financial service suppliers fromoffering in
theMember'sterritory,intheformdeterminedbytheMember,allthefinancialservices
permitted bytheMember;
(b) non-discriminatorymeasuresthatlimittheexpansionoftheactivitiesoffinancialservice
suppliers intotheentire territory oftheMember;
(c) measures ofaMember, when suchaMember applies thesame measures tothesupply
ofbothbanking andsecurities services, andafinancial service supplier ofanyother
Member concentrates itsactivities intheprovision ofsecurities services; and
(d) other measures that, although respecting theprovisions oftheAgreement, affect
adversely theability offinancial service suppliers ofanyother Member tooperate,
compete orenter theMember 'smarket;
provided thatanyaction taken under thisparagraph would notunfairly discriminate against financial
service suppliers oftheMember taking suchaction.
11. With respect tothenon-discriminatory measures referred toinsubparagraphs 10(a) and(b),
aMember shallendeavour nottolimitorrestrict thepresent degree ofmarket opportunities northe
benefits already enjoyed byfinancial service suppliers ofallother Members asaclassintheterritory
oftheMember, provided thatthiscommitment doesnotresult inunfair discrimination against financial
service suppliers oftheMember applying suchmeasures.GATS/SC/46/Suppl.3
Page15
C. National Treatment
1. Under terms andconditions thataccord national treatment, eachMember shallgranttofinancial
service suppliers ofanyotherMember established initsterritory access topayment andclearing systems
operated bypublic entities, andtoofficial funding andrefinancing facilities available inthenormal
course ofordinary business. Thisparagraph isnotintended toconfer access totheMember 'slender
oflastresort facilities.
2. Whenmembershiporparticipationin,oraccessto,anyself-regulatorybody,securitiesorfutures
exchange ormarket, clearing agency, oranyother organization orassociation, isrequired byaMember
inorder forfinancial service suppliers ofanyother Member tosupply financial services onanequal
basiswithfinancial service suppliers oftheMember, orwhen theMember provides directly orindirectly
suchentities, privileges oradvantages insupplying financial services, theMember shallensure that
suchentities accord national treatment tofinancial service suppliers ofanyother Member resident in
theterritory oftheMember.
D. Definitions
Forthepurposes ofthisapproach:
1. Anon-resident supplier offinancial services isafinancial service supplier ofaMember which
supplies afinancial service intotheterritory ofanother Member fromanestablishment located inthe
territory ofanother Member, regardless ofwhether suchafinancial service supplier hasorhasnot
acommercial presence intheterritory oftheMember inwhich thefinancial service issupplied.
2. "Commercial presence" means anenterprise within aMember 'sterritory forthesupply of
financial services andincludes wholly- orpartly-owned subsidiaries, jointventures, partnerships, sole
proprietorships,franchisingoperations,branches,agencies,representativeofficesorotherorganizations.
3. Anewfinancial service isaservice ofafinancial nature, including services related toexisting
andnewproducts orthemanner inwhich aproduct isdelivered, thatisnotsupplied byanyfinancial
service supplier intheterritory ofaparticular Member butwhich issupplied intheterritory ofanother
Member.
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