RESTRICTEDWORLD TRADE
ORGANIZATIONS/CSC/W/30
23 March 2001
(01-1424)
Committee on Specific Commitments
DRAFT
REVISION OF THE GUIDELINES FOR THE SCHEDULING
OF SPECIFIC COMMITMENTS
Note by the Secretariat
This document is a revision of the guidelines for the scheduling of specific commitments
contained in document MTN.GNS/W/164, entitled Scheduling of Initial Commitments in Trade in
Services: Explanatory Note of 3 September 1993, and document MTN.GNS/W/164/Add.1, entitled
Scheduling of Initial Commitments in Trade in Services: Explanatory Note, Addendum of30 November 1993.  This revision is the result of discussions at formal and informal meetings of the
Committee.
_______________S/CSC/W/30
Page 2
TABLE OF CONTENTS
INTRODUCT ION................................................................................................................... ...............3
PART I : WHAT ITEMS S HOULD BE SC HEDULED? ..................................................................3
A. L IMITATIONS ON MARKET ACCESS (ARTICLE  XVI)...................................................................4
B. L IMITATIONS ON NATIONAL TREATMENT (ARTICLE  XVII) .......................................................5
C. A DDITIONAL COMMITMENTS (ARTICLE  XVIII) .........................................................................7
D. E XCEPTIONS ............................................................................................................................... .7
E. S PECIFIC COMMITMENTS AND MFN  E XEMPTIONS ....................................................................7
PART II: HOW SHOULD IT EMS BE SCHE DULED? ....................................................................7
A. H OW TO DESCRIBE COMMITTED SECTORS AND SUB -SECTORS ....................................................8
B. H OW TO TREAT THE MODES OF SUPPLY ......................................................................................8
1. Cross-border supply .......................................................................................................... 9
2. Consumption abroad .........................................................................................................9
3. Commercial Presence ........................................................................................................9
4. Presence of natu ral persons ............................................................................................10
5. Relationship between modes of supply...........................................................................10
C. H OW TO RECORD COMMITMENTS ..............................................................................................10
1. Horizontal co mmitments .................................................................................................10
2. Sector-specific commitme nts...........................................................................................11
3. Levels of commitment......................................................................................................11
(a) Full comm itment ..................................................................................................12
(b) Commitment w ith limita tions...............................................................................12
(c) No commitment ....................................................................................................12
(d) No commitment tech nically fe asible ....................................................................12
(e) Special  cases.........................................................................................................13
ANNEX 1 - SCHEDULE OF SPECIFIC COMMITMENTS OF COUNTRY X ..........................14
ANNEX 2 - LIST OF ATTACHED DOCUMENTS RELEVANT FOR
SCHEDULING P URPOSES..................................................................................................15S/CSC/W/30
Page 3
GUIDELINES FOR THE SCHEDULING OF SPECIFIC COMMITMENTS
UNDER THE GENERAL AGREEMENT ON TRADE IN SERVICES (GATS)
Explanatory note1
INTRODUCTION
1. This note is intended to assist in the preparation of offers, requests and national schedules of
specific commitments.  Its objective is to explai n, in a concise manner, how specific commitments
should be set out in schedules in order to achieve precision and clarity.  It is based on the view that a
common format for schedules as well as standardization of the terms used in schedules are necessary
to ensure comparable and unambiguous commitments.  The note cannot answer every question that
might occur to persons responsible for scheduling specific commitments;  it does attempt to answer
those questions which are most likely to arise.  The answers should not be considered as a legal
interpretation of the GATS.
2. The GATS contains two sorts of provisions.  The first are general obligations, some of which
apply to all service sectors (e.g. MFN, transparency) and some only to scheduled specific
commitments (e.g. Article XI:  Payments and Transfers).  The second are specific commitments
which are negotiated undertakings particular to each GATS signatory.  Specific commitments, uponthe conclusion of negotiations, are to be recorded in national schedules which will be attached to, and
form an integral part of, the GATS.  By virtue of Article XX, every signatory must attach to the
GATS its national schedule.  This note addresses two main questions:  what items should be entered
on a schedule, and how should they be entered.
PART I : WHAT ITEMS SHOULD BE SCHEDULED?
3. Since schedules, including footnotes, headnotes and attachments, are a record of legal
commitments, nothing should appear in them which a Member does not intend to be legally binding.A schedule contains the following main types of information:  a clear description of the sector or
sub-sector committed, limitations
2 to market access, limitations to national treatment, and additional
commitments other than market access and national treatment.  If a Member undertakes a
commitment in a sector then it must indicate for each  mode of supply that it binds in that sector:
- what limitations, if any, it maintains on market access;
- what limitations, if any, it maintains on national treatment;  and- what additional commitments, relating to m easures affecting trade in services not
subject to scheduling under Articles XVI and XVII, it may decide to undertake underArticle XVIII.
                                                     
1 This document  is the result of a revision exercise carried out in the Committee on Specific
Commitments.  The exercise was based on the two documents which were produced and circulated during theUruguay Round negotiations: MTN.GNS/W/164, entitled Scheduling of Initial Commitments in Trade in
Services: Explanatory Note of 3 September 1993, and document MTN.GNS/W/164/Add.1, entitled Scheduling
of Initial Commitments in Trade in Services: Explanatory Note, Addendum of 30 November 1993.  These
guidelines shall be applicable as of the date of their adoption.  It should be understood that schedules in force
prior to the date of this document have been drafted according to MTN.GNS/W/164 and
MTN.GNS/W/164/Add.1.
2 The term "limitations" will be used throughout this note to refer to the "terms", "conditions",
"limitations", and "qualifications" used in Articles XVI and XVII of the GATS.S/CSC/W/30
Page 4
4. Where commitments do not cover the entire national territory, the entry should describe the
geographical scope of measures taken according to Article I:3(a)(i).
5. If attachments are used, clear reference should be made to the part of the schedules they refer
to (i.e. definitions in the first column, market access commitments in the second column, national
treatment commitments in the third column and additional commitments in the fourth column).
6. Exchange control restrictions are subject to th e general disciplines of Articles XI (Payments
and Transfers) and XII (Restrictions to Safeguard the Balance of Payments) of the GATS.
7. There is no requirement in the GATS to schedule a limitation to the effect that the cross-
border movement of goods associated with the provision of a service may be subject to customs duties
or other administrative charges.   Such measures are subject to the disciplines of the GATT.
A. LIMITATIONS ON MARKET ACCESS (ARTICLE  XVI)
8. A Member grants full market access in a given sector and mode of supply when it does not
maintain in that sector and mode any of the types of measures listed in Article XVI.  The measureslisted comprise four types of quantitative restrictions (sub-paragraphs a-d), as well as limitations on
forms of legal entity (sub-paragraph e) and on foreign equity participation (sub-paragraph f).  The list
is exhaustive and includes measures which may also be discriminatory according to the national
treatment standard (Article XVII).  In other word s, all measures falling under any of the categories
listed in Article XVI:2 must be scheduled, whether or not such measures are discriminatory accordingto the national treatment standard of Article XVII.  The quantitative restrictions can be expressed
numerically, or through the criteria specified in sub-paragraphs (a) to (d);  these criteria do not relate
to the quality of the service supplied, or to the ability of the supplier to supply the service (i.e.
technical standards or qualification of the supplier).
9. With regard to market access limitations, such as numerical ceilings or economic needs tests,
the entry should describe each measure concisely indicating the elements which make it inconsistent
with Article XVI.  Numerical ceilings should be expressed in defined quantities in either absolute
numbers or percentages;  regarding economic needs tests the entry should indicate the main criteria on
which the test is based, e.g. if the authority to establish a facility is based on a population criterion, the
criterion should be described concisely.
10. Approval procedures or  licensing and qualification requirements, such as financial soundness
or membership in a professional organization, are frequently stipulated as conditions to obtain a
licence.  If they are of a non-discriminatory nature, and therefore to be applied equally to nationals
and foreigners, they should not be scheduled under Article XVII.  Nor should they be scheduled under
Article XVI as long as they do not contain any of the limitations specified in Article XVI.  However,if such approval procedures or licensing and qualification requirements are discriminatory, they
should be scheduled as national treatment limitations.  If approval procedures or licensing and
qualification requirements contain any of the limitations specified in Article XVI, they should be
scheduled as market access limitations.  It has been pointed out that in some schedules the granting of
licences has been subject to review, possibly meaning they are granted on a discretionary basis.  In
such a case the right to supply the service is uncertain.  Therefore such entries should be avoided
unless the objective criteria on which such a review is based are precisely described.
11. It should be noted that the quantitative restrictions specified in sub-paragraphs (a) to (d) refer
to maximum limitations.  Minimum requirements such as those common to licensing criteria (e.g.
minimum capital requirements for the establishment of a corporate entity) do not fall within the scope
of Article XVI.  If such a measure is discriminatory within the meaning of Article XVII and, if it
cannot be justified as an exception, it should be scheduled as a limitation on national treatment.  Ifsuch a measure is non-discriminatory, it is subject to the disciplines of Article VI:5.  Where such aS/CSC/W/30
Page 5
measure does not conform to these disciplines, and if it cannot be justified as an exception, it must be
brought into conformity with Article VI:5 and cannot be scheduled.
12. The following are examples of limitations on market access drawn from the schedules of
specific commitments .  In this regard, paragraph 39 on the scheduling of limitations is also relevant.
(a) Limitations on the number of service suppliers:
- Licence for a new restaurant based on an economic needs test.- Annually established quotas for foreign medical practitioners.- Government or privately owned monopoly for labour exchange agency
services.
- Nationality requirements for suppliers of services (equivalent to zero quota).
(b) Limitations on the total value of transaction or assets:
- Foreign bank subsidiaries limited to x percent of total domestic assets of all
banks.
(c) Limitations on the total number of service operations or quantity of service output:
- Restrictions on broadcasting time available for foreign films.
(d) Limitations on the total number of natural persons:
- Foreign labour should not exceed x percent and/or wages xy percent of total.
(e) Restrictions or requirements regarding type of legal entity or joint venture:
- Commercial presence excludes representative offices.- Foreign companies required to establish subsidiaries.
- In sector x, commercial presence must take the form of a partnership.
(f) Limitations on the participation of foreign capital:
- Foreign equity ceiling of x percent for a particular form of commercial
presence.
B. L
IMITATIONS ON NATIONAL TREATMENT (ARTICLE  XVII)
13. A Member grants full national treatment in a given sector and mode of supply when it accords
in that sector and mode conditions of competition no less favourable to services or service suppliers of
other Members than those accorded to its own like services and service suppliers.  The national
treatment standard does not require formally identical treatment of domestic and foreign suppliers:formally different measures can result in effective equality of treatment;  conversely, formally
identical measures can in some cases result in less favourable treatment of foreign suppliers ( de facto
discrimination).  Thus, it should be borne in mind that limitations on national treatment cover cases of
both de facto  and de jure  discrimination as shown in the following examples.S/CSC/W/30
Page 6
Examples of limitations on national treatment3
(a) Domestic suppliers of audiovisual services are given preference in the allocation of
frequencies for transmission within the national territory.  (Such a measure
discriminates explicitly on the basis of the origin of the service supplier and thus
constitutes formal or de jure  denial of national treatment.)
(b) A measure stipulates that prior residency is required for the issuing of a licence to
supply a service.  (Although the measure does not formally distinguish service
suppliers on the basis of national origin, it de facto  offers less favourable treatment to
foreign service suppliers because they are less likely to be able to meet a prior
residency requirement than like service suppliers of national origin.)
It is useful to keep in mind that, unlike Article XVI, Article XVII does not contain an exhaustive
listing of the types of measure which would constitute limitations on national treatment.
14. Regarding the need to schedule residency requirements, it should be decided on a
case-by-case basis, and in relation to the activity concerned, which requirements (e.g.  the need to livein the country as opposed to having a mailing address in the country) constitute a de facto  national
treatment restriction and therefore must be scheduled under Article XVII unless justifiable as an
exception.  If the residency requirement is not discriminatory, it would be subject to the disciplines of
Article VI:5.  If it is not consistent with these disciplines and if it cannot be justified as an exception,
it must be brought into conformity with Article VI:5 .
15. There is no obligation in the GATS which requires a Member to take measures outside its
territorial jurisdiction.  It therefore follows that the national treatment obligation in Article XVII does
not require a Member to extend such treatment to a service supplier located in the territory of another
Member.
16. Article XVII applies to subsidies in the same way that it applies to all other measures.
Article XV (Subsidies) merely obliges Members to "enter into negotiations with a view to developing
the necessary multilateral disciplines" to counter the distortive effects caused by subsidies and does
not contain a definition of subsidy.  Therefore, any subsidy which is a discriminatory measure within
the meaning of Article XVII would have to be either scheduled as a limitation on national treatment or
brought into conformity with that Article.  Subsidies are also not excluded from the scope of Article II(MFN). In line with the paragraph above, a bindin g under Article XVII with respect to the granting of
a subsidy does not require a Member to offer such a subsidy to a services supplier located in the
territory of another Member.
17. Restrictions on the purchase, lease or use of real estate, connected with the supply of a service
inscribed in a schedule, are national treatment limitati ons to the extent that different conditions apply
to foreign services suppliers which alter the conditions of competition in favour of service suppliers of
the Member compared to like service suppliers of any other Member.
18. A Member may wish to maintain measures which are inconsistent with both Articles XVI
and XVII.  Article XX:2 stipulates that such measures shall be inscribed in the column relating to
Article XVI on market access.  Thus, while there may be no limitation entered in the national
treatment column, there may exist a discriminatory measure inconsistent with national treatment
inscribed in the market access column.  However, in accordance with Article XX:2, anydiscriminatory measure scheduled in the market access column is also to be regarded as scheduled
under Article XVII and subject to the provisions of that Article.  When measures inconsistent with
both Articles XVI and XVII are inscribed in the column relating to Article XVI (as provided for in
                                                     
3 More examples of frequently occurring national treatment restrictions are listed in Attachment 1.S/CSC/W/30
Page 7
Article XX:2), Members could indicate that this is the case (e.g.  by stating "also limits national
treatment" in the market access column).
C. ADDITIONAL COMMITMENTS (ARTICLE  XVIII)
19. A Member may, in a given sector, make commitments with respect to measures affecting
trade in services not subject to scheduling under Articles XVI and XVII.  Such commitments can
include, but are not limited to, undertakings with  respect to qualifications, technical standards,
licensing requirements or procedures, and other domestic regulations that are consistent withArticle VI.  Additional commitments are expressed in the form of undertakings, not limitations.  In the
schedule, the Additional Commitments column would only include entries where specific
commitments are being undertaken, and need not include those modes of supply where there are no
commitments undertaken or any entries at all where no Article XVIII undertakings are made.
D. E
XCEPTIONS
20. All measures falling under Article XIV (General Exceptions) are excepted from all
obligations and commitments under the Agreement, and therefore should not be scheduled.  Clearly,such exceptions cannot be negotiated under Part II I of the Agreement.  Likewise, any prudential
measure taken in accordance with paragraph 2(a) of the Annex on Financial Services constitutes an
exception to the Agreement and should not be scheduled.  Notwithstanding any other provisions of
the Agreement, a Member shall not be prevented from taking measures for prudential reasons in
accordance with paragraph 2(a) of the Annex on Financial Services.  Measures falling underArticle XII (Restrictions to Safeguard the Balance of Payments) are also exceptions and should not be
scheduled.  Article XII provides for separate disciplines for such measures, including notification and
consultation.
E. S
PECIFIC COMMITMENTS AND MFN  E XEMPTIONS
21. A Member taking a national treatment or a market access commitment in a sector must accord
the stated minimum standard of treatment specified in its schedule to all other Members.  The MFN
obligation requires that the most favourable treatm ent actually accorded in all sectors, whether the
subject of a commitment or not, must also be accorded to all other Members.  Where an MFN
exemption has been granted for a measure, a Member  is free to deviate from its Article II obligations,
but not from its Article XVI and Article XVII commitments.  Therefore, in such cases, a Member mayaccord treatment in that sector more favourable than the minimum standard to some Members, as long
as all other Members receive at least that minimum standard of market access and national treatment
appearing in its schedule.  In such cases, it is not possible for a Member to accord less favourable
treatment to certain Members than that specified in its schedule (for example, on grounds of
reciprocity or the lack of it).
PART II: HOW SHOULD ITEMS BE SCHEDULED?
22. Schedules record, for each sector, the legally enforceable commitments of each Member.  It is
therefore vital that schedules be clear, precise and based on a common format and terminology.  This
section describes how commitments should be entered in schedules.  The main steps involved are:
A. How to describe committed sectors and sub-sectors;
B. How to treat the modes of supply;
C. How to record commitments:
1. Horizontal commitments;
2. Sector-specific commitments;
3. Levels of commitment.S/CSC/W/30
Page 8
A. HOW TO DESCRIBE COMMITTED SECTORS AND SUB -SECTORS
23. The legal nature of a schedule as well as the need to evaluate commitments, require the
greatest possible degree of clarity in the description of each sector or sub-sector scheduled.  In general
the classification of sectors and sub-sectors should be based on the Secretariat's Services Sectoral
Classification List.4 Each sector contained in the Secretariat list is identified by the corresponding
Central Product Classification (CPC) number.  Where it is necessary to refine further a sectoralclassification, this should be done on the basis of the CPC or other internationally recognised
classification (e.g. Financial Services Annex).  A breakdown of the CPC, including explanatory notes
for each sub-sector, is contained in the UN Provisional Central Product Classification.
5
Example: A Member wishes to indicate an offer or commitment in the sub-sector of
map-making services.  In the Secretariat list, this service would fall under the general
heading "Other Business Services" under "Related scientific and technical consulting
services" (see item l.F.m).  By consulting the CPC, map-making can be found underthe corresponding CPC classification number 86754.  In its offer/schedule, the
Member would then enter the sub-sector under the "Other Business Services" section
of its schedule as follows:
Map-making services (86754)
24. If a Member wishes to use its own sub-sectoral classification or definitions it should provide
concordance with the CPC in the manner indicated in the above example.  If this is not possible, it
should give a sufficiently detailed definition to avoid any ambiguity as to the scope of the
commitment.
25. It is understood that market access and national treatment commitments apply only to the
sectors or sub-sectors inscribed in the schedule.  They do not imply a right for the supplier of a
committed service to supply uncommitted services which are inputs to the committed service.
B. H
OW TO TREAT THE MODES OF SUPPLY
26. The four modes of supply listed in the schedules correspond to the scope of the GATS as set
out in Article I:2.  The modes are essentially defined on the basis of the origin of the service supplier
and consumer, and the degree and type of territorial presence which they have at the moment the
service is delivered.
                                                     
4Document MTN.GNS/W/120, dated 10 July 1991.
5Statistical Papers Series M No. 77, Provisional Central Product Classification, Department of
International Economic and Social Affairs, Statistical Office of the United Nations, New York, 1991.S/CSC/W/30
Page 9
MODES OF SUPPLY
Supplier Presence Other Criteria Mode
Service delivered within the
territory of the Member, from
the territory of another MemberCROSS-BORDER SUPPLYService supplier not present
within the territory of the
Member
Service delivered outside the
territory of the Member, in the
territory of another Member, to
a service consumer of the
MemberCONSUMPTION ABROAD
Service delivered within the
territory of the Member,
through the commercialpresence of the supplierCOMMERCIAL PRESENCEService supplier present within
the territory of the Member
Service delivered within the
territory of the Member, with
supplier present as a natural
personPRESENCE OF NATURAL
PERSON
27. It is important to have a common understanding of what each mode covers.  To this end,
further examples and explanations are given below.
1. Cross-border supply
28. International transport, the supply of a service through telecommunications or mail, and
services embodied in exported goods (i.e. services supplied in or by a physical medium, such as a
computer diskettes or drawings) are all examples of cross-border supply, since the service supplier is
not present within the territory of the Member where the service is delivered.
2. Consumption abroad
29. This mode of supply is often referred to as "movement of the consumer".  The essential
feature of this mode is that the service is delivered outside the territory of the Member making the
commitment.  Often the actual movement of the consumer is necessary as in tourism services.
However, activities such as ship repair abroad, where only the property of the consumer "moves", or
is situated abroad, are also covered.
30. Whatever the mode of supply, obligations and commitments under the Agreement relate
directly to the treatment of services and service suppliers.  They only relate to service consumers
insofar as services or service suppliers of other Members are affected.  It should be noted that a
Member may only be able to impose restrictive measures affecting its own consumers, not those of
other Members, on activities taking place outside its jurisdiction.
31. Limitations in the schedule of a Member - if any - with respect to mode 2 on market access
and/or on national treatment should only relate to measures affecting the consumers of that Member,
and not to measures affecting consumers of another Member, in the territory of that Member.
3. Commercial Presence
32. This mode covers not only the presence of juridical persons in the strict legal sense, but also
that of legal entities which share some of the same characteristics.  It thus includes,  inter alia ,S/CSC/W/30
Page 10
corporations, joint ventures, partnerships, representative offices and branches (see Definitions:
Article XXVIII).
4. Presence of natural persons
33. This mode covers natural persons who are themselves service suppliers, as well as natural
persons who are employees of service suppliers.
34. With respect to the fourth mode of supply, many  participants have chosen to inscribe their
bound commitments in the form of undertakings rather than in the form of market access limitations.
In such cases the bound measures affecting the entry and temporary stay of natural persons are
explicitly stated.  Thus, in the absence of a reference to a specific duration for the temporary stay of a
foreign service supplier, it could be understood that no binding is being undertaken in respect of the
duration of that stay.   It is noted in this regard that, according to Article XX:1(a) of the Agreement,
with respect to sectors where commitments are undertaken, each schedule shall specify the terms,
limitations and conditions on market access.  Commitments should include the duration of temporarystay of natural persons for the purpose of supplying a service.  In any event a Member's regulatory
measures would still be subject to the general requirement, in paragraph 4 of the Annex on the
Movement of Natural Persons, that they do not nullify or impair the benefits accruing to any other
Member under the terms of a specific commitment.
5. Relationship between modes of supply
35. Where a service transaction requires in practical terms the use of more than one mode of
supply, coverage of the transaction is only ensured when there are commitments in each relevant
mode of supply.
Example: A Member has made a commitment in the cross-border supply of architectural
services (e.g.  by telecommunications or by mail).  This commitment alone does not
extend to the presence of natural persons (e.g.  visits by architects).  A separate
commitment would have to be taken under "Presence of natural persons" to cover this
case.
C. HOW TO RECORD COMMITMENTS
1. Horizontal commitments
36. A horizontal commitment applies to trade in services in all scheduled services sectors unless
otherwise specified.  It is in effect a binding, either of a measure which constitutes a limitation on
market access or national treatment or of a situation in which there are no such limitations.  Where
measures constituting limitations are referred to, the commitment should describe the measureconcisely, indicating the elements which make it inconsistent with Articles XVI or XVII.  In order to
avoid repetition, it is desirable to enter these commitments in a separate section at the beginning of the
schedule according to the four modes of supply.  Such a section could be entitled:  "Horizontal
commitments applicable to sectors listed in the sectoral part of the schedule".  Some horizontal
measures may be specific to only one mode of supply:
Example: Legislation may refer to foreign investment, formation of corporate structures or land
acquisition regulations.  Such measures affect above all commercial presence.
Example: Legislation may stipulate requirements regarding entry, temporary stay and right to
work of natural persons;  the categories of natural persons covered by a particular
offer may also be specified.  Such measures affect above all the presence of natural
persons.S/CSC/W/30
Page 11
Other horizontal measures may affect more than one mode of supply:
Example: Legislation may provide for tax measures which are contrary to national treatment
and not covered by Article XIV(d).  Such measures would normally affect the supply
of services in several modes.
37. Horizontal commitments condition all other entries in the schedule  unless otherwise
specified.  Hence:
- A "none" in the sectoral section must be read as meaning "none except the conditions
set out in the horizontal section".6
- To indicate in a given sector that no restrictions whatever are imposed, a Member
must make clear in the horizontal section or in the relevant sectoral section that thehorizontal restrictions do not apply in the sector in question.
- In the case of a sector-specific restriction the entry must be read as the combination of
the horizontal restrictions and of the sector-specific restriction unless explicitly
provided otherwise in the entry.
38. To the extent that domestic laws of general application contain measures which constitute
limitations, and if the Member wishes to maintain them, the commitment should describe the
measures concisely.  According to the agreed scheduling procedures, schedules should not contain
general references to laws and regulations as it is understood that such references would not havelegal implications under the GATS.
2. Sector-specific commitments
39. A sector-specific commitment applies to trade in services in a particular sector.  If in the
context of such a commitment, a measure is maintained which is contrary to Articles XVI or XVII, it
must be entered as a limitation in the appropriate column (either market access or national treatment)for the relevant sector and modes of supply;  the entry should describe the measure concisely,
indicating the elements which make it inconsistent with Articles XVI or XVII.
40. Given the legal nature of a schedule, it should contain only descriptions of bound
commitments.  Any additional information for transparency purposes should not be entered in the
schedule.  A reference to the legal basis of a scheduled measure (i.e.  the relevant law or regulation)may be entered if thought necessary.  In any event, such information will be subject to the obligations
of Article III.
3. Levels of commitment
41. Since the terms used in a Member's schedule create legally binding commitments, it is
important that those expressing presence or absence of limitations to market access and national
treatment be uniform and precise.  Depending on the extent to which a Member has limited market
access and national treatment, for each commitment with respect to each mode of supply, four casescan be foreseen:
                                                     
6 Due account must be taken, if need be, of the provision of Article XX:2 of the GATS relating to the
scheduling of measures  inconsistent with both market access and national treatment in the market accesscolumn.S/CSC/W/30
Page 12
(a) Full commitment
42. In this case the Member does not seek in any way to limit market access or national treatment
in a given sector and mode of supply through measures inconsistent with Articles XVI and XVII.  The
Member in this situation should mark in the appropriate column:  NONE.  However, any relevant
limitations listed in the horizontal section of the schedule will still apply.
43. Regardless of what is inscribed in the market access column, a "no limitations" entry in the
National Treatment column (expressed as "None") would mean that national treatment  is bound for
the entire mode;  it is not limited to what may be bound in a market access commitment with
limitations.  Thus, if a Member makes a commitment under Article XVI in a sector, where
commercial presence is limited to partnerships, an entry "None" or any other entry in the national
treatment column would refer to the whole mode of supply and not only to partnerships.   (See also
paragraphs 3 and 13)
(b) Commitment with limitations
44. Where market access or national treatment limitations are inscribed, two main possibilities
can be envisaged in this case.  The first is the binding of an existing situation ("standstill").  The
second is the binding of a more liberal situation where some, but not all, of the measures inconsistent
with Articles XVI or XVII will be removed ("rollback").  In either case the Member must describe in
the appropriate column the measures maintained which are inconsistent with Articles XVI or XVII.The entry should describe each measure concisely, indicating the elements which make it inconsistent
with Articles XVI or XVII.  It would not be correct merely to enter in a column words such as
"bound", "freeze" or "standstill".
45. In some cases a Member may choose to partially bind measures affecting a given category of
suppliers.  For example, a Member may bind measur es affecting the entry and temporary stay only of
some categories of natural persons while leaving all other categories unbound.  This may be achieved
through an indication in the horizontal section of a schedule such as "Unbound except for measures
affecting the entry and temporary stay of natural persons in the following categories...".  In such
cases, the corresponding sectoral entry under the fourth mode of supply should be "Unbound except
as indicated in the horizontal section".
(c) No commitment
46. In this case, the Member remains free in a given sector and mode of supply to introduce or
maintain measures inconsistent with market access or national treatment.  In this situation, the
Member must record in the appropriate column the word:  UNBOUND.  This case is only relevant
where a commitment has been made in a sector with respect to at least one mode of supply.  Where allmodes of supply are "unbound", and no additional commitments have been undertaken in the sector,
the sector should not appear on the schedule.
(d) No commitment technically feasible
47. In some situations, a particular mode of supply may not be technically feasible.  An example
might be the cross-border supply of hair-dressing services.  In these cases the term UNBOUND*
should be used.  The asterisk should refer to a footnote which states "Unbound due to lack of
technical feasibility".  The term may not be used as an entry in the national treatment column for
modes 1 and 2 when, for the same service,  there is a market access commitment.  Where the mode of
supply thought to be inapplicable is in fact applic able, or becomes so in the future, the entry means
"unbound".S/CSC/W/30
Page 13
(e) Special cases
48. It could be argued that a reservation for a residence requirement, a nationality condition or a
commercial presence requirement under cross bo rder trade amounts to an "unbound".  However in
some cases there is clearly an advantage in inscribing those requirements instead of the term
"unbound" in that trading partners have the certainty that there are no other limitations with respect to
the cross border mode (see also paragraph 14 on residency requirements and paragraph 12 on
nationality requirements).
49. Where a national schedule refers to foreign companies and national companies, it is necessary
to offer a definition for those cases where a Member uses terms which are not covered by the common
definitions contained in Article XXVIII of the GATS.S/CSC/W/30
Page 14
ANNEX 1
SCHEDULE OF SPECIFIC COMMITMENTS OF COUNTRY X
Sector or Sub-Sector Limitations on Market Access L imitations on National Treatment Additional Commitments
(1) (1)
(2) (2)
(3) (3)
(4) (4)
(1) (1)
(2) (2)
(3) (3)
(4) (4)
Key: (1) Cross-border supply (3) Commercial presence
(2) Consumption abroad (4) Presence of natural persons
NOTE: The schedule shall also indicate the date of entry into fo rce of the commitments and where appropriate the time-frame for their
implementation.  For all future commitments the releva nt date of entry into force should be inscribed.S/CSC/W/30
Page 15
ANNEX 2
LIST OF ATTACHED DOCUMENTS RELEVANT FOR SCHEDULING PURPOSES1
1) Examples of frequently occurring national treatment restrictions, which appear in schedules of
specific commitments.
2) Informal Note by the Secretariat for the Committee on Trade in Financial Services, dated
24 June 1997, "The Distinction between Modes 1 and 2", (Also included in document
S/FIN/W/14).
3) Job No. 3706, dated 3 July 1997, Informal Note by the Secretariat for the Committee on Trade in
Financial Services, Report of Informal Consultations held on 27 June 1997 on the Distinction
between Modes 1 and 2 in Financial Services (Also included in document S/FIN/W/14).
4) Job No. 6496, dated 25 November 1998 (also included in document S/WPPS/4, dated
10 December 1998), Informal Note by the Chairman of the Working Party on Professional
Services "Discussion of matters relating to Articles XVI and XVII of the GATS in connection
with the disciplines on domestic regulation in the accountancy sector".
5) S/GBT/W/2/Rev.1, dated 16 January 1997, Note by the Chairman of the Negotiating Group on
Basic Telecommunications  on Scheduling Basic Telecom Services Commitments.
6) S/GBT/W/3, dated 3 February 1997, Note by the Chairman of the Negotiating Group on Basic
Telecommunications on Market Access Limitations on Spectrum Availability.
7) Annex to Job No. 1311, dated 12 April 1995, Informal Note by the Secretariat "Model Schedule
of Commitments on Basic Telecommunications".
8) MTN.GNS/W/120, dated 10 July 1991, Note by the Secretariat "Services Sectoral Classification
List".
                                                     
1 It is understood that the status of each of the documents listed is unique and that therefore each
document should be looked at based on its specific background and nature.  The fact that such documents areannexed to these guidelines should not be interpreted as changing their status.  In the same manner,  it is
understood that some of the documents listed in this annex deal with scheduling questions only for the sector
they refer to.S/CSC/W/30
Page 16
Attachment 1
EXAMPLES OF FREQUENTLY OCCURRING NATIONAL TREATMENT
RESTRICTIONS WHICH APPEAR IN SCHEDULES OF SPECIFIC COMMITMENTS
1. These examples are based on existing entries in the schedules and represent frequently
occurring types of limitations on national treatment.  It should be noted that the list is of an illustrative
nature and therefore it is by no means exhaustive.  Moreover, since the listed examples come from
individual existing schedules and are based on their own interpretation of Article XVII of the GATS,
the list does not represent the common view of WTO Members on this subject and therefore it does
not prejudge Members’ positions on the interpretation of Article XVII of the GATS.  In other words,
the list does not imply that all measures presenting similarities with one of the measures below wouldneed to be listed as national treatment restrictions.  Only discriminatory measures (i.e. measures
which modify conditions of competition in favour of services suppliers of national origin) would need
to be scheduled.
2. For instance, licensing and qualification requirements, registration requirements and
authorization requirements will constitute national treatment limitations subject to scheduling onlywhere they discriminate in favour of services and service suppliers of national origin.  In the absence
of discrimination, these same type of requirements will not constitute measures subject to scheduling
under Article XVII and would possibly fall under Article VI of the GATS.
1  Similarly, whether
residency requirements constitute national treatment limitations has to be determined on a case-by-
case basis.
3. Finally, although there is no definition of what constitutes a subsidy under the GATS and
disciplines under Article XV are still subject to negotiations, paragraph 16 in the revised guidelines
recalls that a discriminatory subsidy constitutes a national treatment limitation.  For this reason, an
example of a discriminatory subsidy has been included in this list.  The same goes mutatis mutandis
for tax measures and other financial measures such as fees.
I. Subsidy measures
- Eligibility for subsidies reserved to nationals
II. Tax measures
- A 4 per cent federal excise tax is imposed on all non-life insurance premiums that are
paid to companies that are not nationally incorporated
- An excise tax of 10 per cent is applicable on net premiums paid to non-resident
insurers
III. Other financial measures (fees, charges, etc.)
- Charges taken for port services from foreign and national ships may differ in favour
of national flag vessels
                                                     
1 On the determination of whether a measure is subject to scheduling under Articles XVI or XVII or
whether it falls under Article VI of the GATS, see also the attached Informal Note by the Chairman of the
Working Party on Professional Services “Discussion of matters relating to Articles XVI and XVII of the GATSin connection with the disciplines on domestic regulation in the accountancy sector”, 25 November 1998,document Job No. 6496.S/CSC/W/30
Page 17
- Higher licence fees are charged for non-residents
IV. Nationality requirements
- Provision of yacht chartering and cruising services reserved to nationals
- Agents or managers must be citizens
- Sale or purchase of travellers cheques by individuals requires citizenship status
V. Residency requirements
- Permanent residency requirement for chiropodists- Residency requirement for managers and the members of the board of directors of a
company
- Residence requirement for actuarial profession- Advisory and auxiliary financial services and asset management:  The establishment
must be managed by a resident of the province
- For foreign bank employees residence is required
VI. Licencing and qualification requirements
- In order to work as a mountain guide or ski instructor, passing of an examination is
required; access to such exams for foreigners may be restricted
- Barristers and commercial lawyers in national law are required to be graduates of
national universities
- Condition of licences is one year previous residency- Three years of prior professional practice in the country required- Non-residents must be registered and licenced in order to purchase unprocessed fish
from primary producers and/or process fish
VII. Registration requirements
- Marketing of legal advice activities by foreign companies is restricted to registered
law firms
- It is necessary to be registered as an accountant, for which it is necessary to be a
national or an alien domiciled in the country for at least three years prior to the
application
- Foreign companies are required to have a registered office in the country
- Certification of certain works involving health and safety is limited to registered
engineers, who to become registered, must be ordinarily resident in the country
VIII. Authorisation requirementsS/CSC/W/30
Page 18
- Loans to non-residents need to be approved by the Central Bank
- Banks: until 30 June 1999, ministerial approval is required for foreign bank
subsidiaries to open more than one bank
- A non-national needs permission to become a director of a financial institution
IX. Technology transfer/training requirements
- The foreign service supplier shall use appropriate and advanced technology and
managerial experience, and shall have the obligation to transfer its technology and
pass on its experience to national personnel
- The foreign service supplier must prove commitment to recruit and develop more
local human resources
- Foreign service suppliers, in the context of JV are required to offer on-the-job
training for national employees
- Skilled foreign employees required to provide training to locals
X. Local content requirements
- Preferential use of local services to the extent they are available under conditions of
quality, price and delivery equivalent to those of like services of foreign origin
- With regard to personnel, materials, equipment, facilities and services required in the
petroleum operations, priority shall be given to the employment of national
subcontractors, provided that they are competitive in delivery, time, price and quality
XI. Ownership of property/land
- Foreigners may not acquire direct ownership of land in a 100 km strip along the
frontiers
- The acquisition, purchase as well as rent or lease of real estate by foreign natural
persons and juridical persons requires an authorization by the competent regional
authorities which will consider whether important economic, social or cultural
interests are affected or not
- Foreign entities may only acquire real property through participation in joint ventures- Non-residents are excluded from the acquisition of real estate
__________S/CSC/W/30
Page 19
Attachment 2
Committee on Trade in Financial Services 24.6.97
The Distinction between Modes 1 and 2
Informal Note by the Secretariat
At the meeting of the Committee on Trade in Financial Services on 5 June, the Secretariat
was asked to organise informal consultations on the issue of the distinction between modes 1 and 2which would be open to all delegations.  The Secretariat was requested to report on the results of such
consultations to the next meeting of the Committee on 17 July.  The purpose of this note is to assist
delegations in those informal consultations by identifying the nature of the issue and laying down
some possible options for a solution.
* * *
1. The mode 1 – mode 2 issue arises because of a perceived ambiguity in the distinction between
the two modes for scheduling purposes.  The question becomes particularly relevant when one of the
two modes is unbound in a Member's schedule, while the other mode is either fully bound or bound
with few limitations.
1
2. As indicated in the agreed scheduling guidelines (MTN.GNS/W/164 of 3 September 1993),
the modes of supply are essentially defined on the basis of the origin of the service supplier and
consumer, and the degree and type of territorial presence which they have at the moment the service is
delivered.  In both modes 1 and 2, the supplier is not present within the territory of the Member.  The
distinction between mode 1 and mode 2, therefore, hinges upon whether the service is deliveredwithin the territory of the Member from the territory of another Member or
 whether the service is
delivered outside the territory of the Member.2
3. The ambiguity is due to the fact that the delivery of a financial service very often does not
require the physical presence of the consumer.  Electronic means associated with the globalization of
financial markets has made it possible to "deliver" a financial service almost anywhere in the world.
Once the physical presence of the consumer ceases to be a benchmark for determining the place of
delivery of a service, it becomes extremely diffic ult to determine in an unambiguous manner where a
service is delivered.
                                                     
1 If both modes were unbound, a Member would be entitled to introduce any measures inconsistent
with Article XVI or XVII with respect to both modes, and drawing a line between them would not serve any
practical purpose.  If both modes were bound, a Member would be entitled to apply only the measures inscribedin its schedule.  In this latter case, any ambiguity in the distinction between modes 1 and 2 could result in amisplacement of scheduled measures, but the consequences of this might not be as far-reaching as the non-scheduling of a measure.  If the measures applicable to  services supplied under the modes are prudential, there is
no need to schedule them.
2 In making this distinction between modes 1 and 2, one should focus on the delivery of the service
itself, and not confuse this with the underlying flows of capital or the act of ordering or requesting the supply ofa service.S/CSC/W/30
Page 20
4. Some examples may illustrate this point:
Deposits: A bank account is opened abroad by a consumer of a Member.  If the consumer
travelled abroad to open the account, this may be mode 2 supply, while the absence of travel (opening
of the account through mail order and bank transfer, or though electronic means) may imply mode 1.
However, the services directly associated with this account (payment of interest, debiting and
crediting of payments and transfers, offsetting of balances, etc.) can be delivered either abroad or inthe consumer's home country at the request of the consumer.
Loan: A loan is made from a foreign bank established abroad to a consumer of a Member.  The loan
can be delivered either within or outside the territory of the consumer's home country.
Insurance: The consumer of a Member concludes a property insurance contract with an insurer
established abroad.  It can be argued that if the insured property is abroad, the service is also deliveredabroad, since the protection provided by the insura nce contract is "delivered" with respect to the
property;  therefore this belongs to mode 2.  However, it can equally be argued that the insurance
provides protection to the consumer in his or her home country, as the premiums are paid by the
consumer, and in the event of an accident, the indemnity will be paid to the consumer in the home
country;  therefore this would come under  mode 1.
5. Given the diversity and complexity of financial services, there may be an infinite number of
such examples.  It would seem very difficult, if not impossible to reach agreement on each of those
cases.  On the other hand, some general substantive solutions have been proposed such as the
following:
(a) all financial transactions (between non-resident suppliers and resident consumers)
that take place inside a Member's territory could be classified as mode 1;
(b) mode 1 transactions could be defined as those that take place under the laws of the
Member, while mode 2 transactions could be defined as those that take place under
the laws of the foreign country from which the service is supplied;
(c) the supply of services accompanied by solicitation could be defined as mode 1, if not,
mode 2;
(d) any measure applicable to the supplier of the service could be classified under
mode 1, any measure applicable to the consumer under mode 2;
(e) modes 1 and 2 could be merged.
6. In (a) above, the question of determining where the delivery of the service took place would
be substituted by the question of where a financial transaction took place.  If the answer to the latter
question is based on where the payment of fees, comm issions or charges took place, it would seem to
require a departure from the general principle of determining the place of supply of a service
according to where the service was delivered.  However, this may have the merit of being consistent
with balance-of-payment statistics.
7. In (b) , one would need to recognize the fact that the territorial application of laws differ
between countries, and between civil and administrative laws within a country.  A Member may also
encounter a situation in which its mode 2 commitments would become unenforceable, since it may
not be possible to implement any commitments concerning transactions which took place entirely
outside the Member's legal jurisdiction.  The fact that the parties to a financial transaction could
choose the laws applicable to them might also complicate the issue.S/CSC/W/30
Page 21
8. The solution in (c) above would also seem to require a departure from the principle of
determining the mode of supply by the place of delivery of a service.  The exact meaning of
solicitation (or active marketing) would also need to be clarified and agreed.
9. In (d), there could be cases in which the regulatory measures are applicable to both suppliers
and consumers.
10. Finally, (e) would not seem to be feasible without modifying the basic principle of scheduling
and possibly Article I of the GATS.
11. If Members find it difficult to agree on any substantive solutions such as those above within
the time-frame of the current financial services negotiations, i.e. before 12 December 1997, some
practical solution may need to be found.3  Such a practical solution could involve clarifying in the
headnote of each schedule the distinction employed by the Member.
__________
                                                     
3 Another point worth noting is that any substantive solution would have immediate implications for a
broad range of other services which are commonly trad ed cross-border, such as telecommunication services.
Since any attempt to draw the line between the modes of supply for a financial service would have directrelevance to other service sectors, this issue might ideally be dealt with in parallel by the Committee on SpecificCommitments.  Such a major exercises would not be completed in the time-frame of the financial services
negotiations.S/CSC/W/30
Page 22
Attachment 3
Job 3706 3.7.97
Committee on Trade in Financial Services
Report of Informal Consultations held on 27 June 1997
on the Distinction between Modes 1 and 2 in Financial Services
Informal Note by the Secretariat
At the meeting of the Committee on Trade in Financial Services held on 5 June, the Secretariat
was asked to organize informal consultations open to all delegations on the question of the distinction
between modes 1 and 2 in financial services schedules.  The Secretariat was also requested to report on
the results of such consultations to the next meeting of the Committee on 17 July.  The purpose of this
note is to summarize the results of an informal meeting held in accordance with this request which tookplace on 27 June 1997.
* * *
1. Discussions in the informal meeting took place on the basis of an informal note by the Secretariat
dated 24 June 1997.  The Secretariat also made an oral presentation at the beginning of the meeting,
explaining the technical nature of the issue and some options for removing the ambiguities or
uncertainties in the schedules.  Ideally, a definitive and watertight solution for clarification of the
distinction between modes 1 and 2 should be found, which would be accepted by all Members and would
be valid not just for financial services but for all sectors.  It was recalled, however, that at the formalmeeting of the Committee on 5 June, there seemed to be a general view that it would be impossible to
find the necessary time before the end of the current negotiations to look for such a definitive solution.  A
new definition of the coverage of modes 1 and 2, or the merging of the two modes, would entail re-
negotiation either of the scheduling guidelines or of articles of the GATS itself, and would be very time-
consuming.  To develop an agreed list of financial transactions falling under mode 1 and those fallingunder mode 2 would also require substantial time and effort.  There had been general agreement at the
5 June meeting of the Committee that it would not be possible or desirable to devote a great deal of time
to this question in the final months of the negotiation.
2. It was therefore necessary to try to find a pragmatic solution which would suffice for the
purposes of the current negotiations.  Such a solution must provide as much clarity as possible, must be
neutral with regard to existing commitments while facilitating the negotiation of new ones under the twomodes, should if possible be accepted at the 17 July meeting of the Committee, and should close the
discussions on this issue until the conclusion of the  financial services negotiations in December this year.
3. A large number of delegations stated that they had not encountered any major problems or
difficulties regarding the distinction between modes 1 and 2 in financial services schedules.  They were,however, willing to discuss this issue in order to achieve as much clarity as possible.  Several delegations
also added that while they themselves had not encountered difficulties with regard to this issue, they were
willing to discuss bilaterally with any delegation which had found difficulties in scheduling commitments
under these modes.
4. Delegations generally thought that the issue was a horizontal one, which meant that any
definitive agreement or understanding on the distinction between the two modes would necessarily apply
to other services as well as financial services.  Given the difficulties involved in finding a definitive
solution, there was general support for a pragmatic solution to the issue, which could be put together inS/CSC/W/30
Page 23
the limited time frame of the current financial services negotiations.  It was made clear that no solution to
this issue could affect the rights of Members to modify or withdraw commitments during the
negotiations;  the solution should be "neutral" in the sense that it would not affect the substance of
existing commitments.  It was also confirmed that the rights of Members to take necessary prudential
measures could not be affected by any discussion or "solution" of the modes issue.
5. There was a broad willingness to consider the use of headnotes as a means of clarifying
the distinction between modes 1 and 2.  Several delegations cautioned, however, that it would be
extremely difficult to negotiate a common headnote for use by all Members.  It was also pointed out that
if all countries needed to adopt a common headnote, all existing schedules in financial services would
need to be reconsidered, regardless of whether there were changes in the substance of the commitments.
Based on these discussions, there was general support for a suggestion to consider developing a non-
binding model headnote or a menu of possible headnotes which could be used by delegations on avoluntary basis.
6. The Secretariat distributed an example of such a headnote (see attached) which focused on the
object of the measure to be listed in the schedule.  The example was based on the question on whom a
mode 1 or mode 2 binding conferred rights of action and on whom limitations would consequently bite; ifit was the foreign service supplier who was restricted from supplying the service, the limitation would be
scheduled under mode 1, while if it was the consumer who was restricted from consuming the service
abroad, then the limitation would be scheduled under mode 2.  It was pointed out that such a headnote
would not address the issue of location - where the supply of the service took place - but it would make
clear the limits of the obligations, in terms of rights conferred, assumed by governments in makingcommitments under these two modes.  Delegations generally thought that such an example would be
helpful in considering options.
7. Another possible headnote listed in the example was a reference to solicitation.  The example
stated that there was no commitment to allow solicitation of business or active marketing under mode 2.It was accepted that headnotes clarifying other issues might be required, and that the Secretariat  should
be ready to assist in drafting them on request. It was made clear that any delegation which thought that
the examples were insufficient could ignore or modify them at will.  Discussion of these models implied
no commitment to use them.
8. The main conclusions of the informal consultations were therefore as follows.  It was agreed that
the responsibility for clarifying the content of commitments under modes 1 and 2 must lie with those
individual Members feeling the need to do so;  to develop a common multilateral solution for the
purposes of the financial services negotiations would be infeasible in the time available and was in any
case unnecessary.  The simplest means of providing such clarification appeared to be the use of a
headnote.  Again, it was not thought necessary or feasible to develop a common headnote, but delegations
undertook to give thought to the possible value of the two examples circulated by the Secretariat, and toany other examples which may come forward.  There was also wide support for the view that in the
longer term - after the conclusion of the financial services negotiations - consideration should be given,
perhaps in the Committee on Specific Commitments since this was a horizontal issue, to definitive
clarification of the distinction between modes 1 and 2.  However, some delegations had reservations on
this point, being unconvinced of the need for further consideration of the matter in the near future.S/CSC/W/30
Page 24
27.6.97
Example of a headnote explaining the distinction between Modes 1 and 2 in financial services schedules
- Market access and national treatment limitations with respect to the mode (1) (cross-border
supply) and mode (2) (consumption abroad) supply of financial services are inscribed in thissection of the Schedule in accordance with the following distinction between the measures
affecting these two modes of supply:
1. Measures affecting mode (1)
Any limitation on the ability of a non-resident supplier of financial services to supply the
service in the territory of the Member.
2. Measures affecting mode (2)
Any limitation on the ability of a resident consumer to purchase the service in the
territory of another Member.
Optional texts
If applicable, the following can be added as optional texts.
"The absence of any limitation on the ability of a resident consumer to purchase the service in the
territory of another Member does not signify a commitment to allow a non-resident service
supplier to solicit business or to conduct active marketing in the territory of the Member."
__________S/CSC/W/30
Page 25
Attachment 4
Job No. 6496
Working Party on Professional Services 25 November 1998
DISCUSSION OF MATTERS RELATING TO ARTICLES XVI AND XVII OF THE GATS IN
CONNECTION WITH THE DISCIPLINES ON DOMESTIC REGULATION IN THE
ACCOUNTANCY SECTOR
Informal Note by the Chairman
1. For the purpose of transparency, this Note explains the method by which the Working Party
on Professional Services (WPPS) pursued its work with respect to the question of the types of
measures it would address in creating the disciplines in the accountancy sector.  For the avoidance ofany doubt, it is emphasised that this Note has no legal status.
2. In the course of work to develop multilateral disciplines on domestic regulation in the
accountancy sector, pursuant to paragraph 4 of Article VI of the GATS, the WPPS addressed a wide
range of regulatory measures which have an impact on trade in accountancy services. In discussing
the structure and content of the new disciplines, it became clear that some of these measures weresubject to other legal provisions in the GATS, most notably Articles XVI and XVII.  It was observed
that the new disciplines developed under Article VI:4 must not overlap with other provisions already
existing in the GATS, including Articles XVI and XVII, as this would create legal uncertainty.  For
this reason, a number of the suggestions for disciplines were excluded from the text.
3. Although it was not in the mandate of the WPPS to provide an interpretation of GATS
provisions, the important relationship between the new disciplines and Articles XVI and XVII was
noted.  While these two Articles relate to the scheduling of specific commitments on measures falling
within their scope, the disciplines developed under Article VI:4 aim at ensuring that other types of
regulatory measures do not create unnecessary barriers to trade.  It has been noted that Article XVI
(Market Access) covers the categories of measures referred to in paragraph 2 (a) to (f), whether or notany discrimination is made in their application between domestic and foreign suppliers.  Article XVII
(National Treatment) captures within its scope any measure that discriminates - whether de jure  or de
facto  - against foreign services or service suppliers in favour of like services or service suppliers of
national origin. A  Member scheduling commitments under Articles XVI and XVII has the right to
maintain limitations on market access and national treatment and inscribe them in its schedule.  On
the other hand, the disciplines to be developed under Article VI:4 cover domestic regulatory measures
which are not regarded as market access limitations as such, and which do not in principlediscriminate against foreign suppliers.  They are therefore not subject to scheduling under
Articles XVI and XVII.  However, it is also recognized that for some categories of measures the
determination as to whether an individual measure falls under Article VI:4 disciplines or is subject to
scheduling under Article XVII will require careful consideration.
4. The following types of measures affecting trade in accountancy services were raised by some
Members as examples of those which may be subject to negotiation and scheduling under
Articles XVI and XVII:
* Restrictions relating to the number of foreign accountants that can be employed, the number
of new licences to be issued, the legal form of establishment and the ownership of firms.S/CSC/W/30
Page 26
* Discriminatory requirements and procedures relating to the licensing of foreign individuals
and the establishment of natural persons and legal persons in the accountancy sector,
including the use of foreign and  international firm names.  Discriminatory elements which set
prior conditions unrelated to the ability of the supplier to provide the service when preparing,
adopting or applying licensing requirements.
* Discriminatory residency requirements or requirements for citizenship, including those
required for sitting examinations related to obtaining a licence to practice. Discriminatory
requirements for membership of a particular professional body as a prior condition for
application.
* Discriminatory treatment of applications from foreign service suppliers vis-à-vis domestic
applications including:  criteria relating to education, experience, examinations and ethics;the overall degree of difficulty when testing competence of applicants;  the need for in-
country experience before  sitting examinations.
5. The above mentioning of these types of measures does not prejudge future negotiations,
which are mandated under Article XIX of the GATS.
__________S/CSC/W/30
Page 27
Attachment 5
RESTRICTEDWORLD TRADE
ORGANIZATIONS/GBT/W/2/Rev.1
16 January 1997
(97-0173)
Group on Basic Telecommunications
Note by the Chairman
Revision
It has been suggested by a number of delegations that it might be helpful to produce a brief
and simple note on assumptions applicable to the scheduling of commitments in basic telecoms.  Thepurpose of the attached note is to assist delegations in ensuring the transparency of their
commitments and to promote a better understanding of  the meaning of commitments.  This note is not
intended to have or acquire any binding legal status.
NOTES FOR SCHEDULING BASIC TELECOM SERVICES COMMITMENTS
1. Unless otherwise noted in the sector column, any basic telecom service listed in the sector
column:
(a) encompasses local, long distance and international services for public and non-public
use;
(b) may be provided on a facilities-basis or by resale;  and(c) may be provided through any means of technology (e.g., cable
1, wireless, satellites).
2. Subsector (g) --private leased circuit services -- involves the ability of service suppliers to sell
or lease any type of network capacity for the supply of services listed in any other basic telecom
service subsector unless otherwise noted in the sector column.  This would include capacity via cable,
satellite and wireless network.
3. In view of points 1 and 2 above, it should not be necessary to list cellular or mobile services
as a separate subsector. However,  a number of Members have done so, and a number of offers have
commitments only in these subsectors.  Therefore, in  order to avoid extensive changes in schedules, it
would seem appropriate for Members to maintain separate entries for these subsectors.
__________
                                                     
1 Including all types of cable.S/CSC/W/30
Page 28
Attachment 6
RESTRICTEDWORLD TRADE
ORGANIZATIONS/GBT/W/3
3 February 1997
(97-0415)
Group on Basic Telecommunications Original:  English
CHAIRMAN'S NOTE
Market Access Limitations on Spectrum Availability
Many Members have entries in the market access column of their schedules indicating that
commitments are "subject to availability of spectrum /frequency" or similar wording.  In light of the
physical nature of spectrum and the constraints inherent in its use, it is understandable that Members
may have sought to rely on these words to adequately protect legitimate spectrum management
policies.  There is, however, doubt that words such as "subject to availability of spectrum/frequency"
as listed in the market access column of many Members' schedules achieve that objective.
Spectrum/frequency management is not, per se , a measure which needs to be listed under
Article XVI.  Furthermore under the GATS each Member has the right to exercise
spectrum/frequency management, which may affect the number of service suppliers, provided that
this is done in accordance with Article VI and other relevant provisions of the GATS.  This includes
the ability to allocate frequency bands taking into account existing and future needs.  Also, Members
which have made additional commitment in line with the Reference Paper on regulatory principles are
bound by its paragraph 6.
Therefore, words such as "subject to availability of spectrum/frequency" are unnecessary and
should be deleted from Members' schedules.
__________S/CSC/W/30
Page 29
Attachment 7
1311 12 April 1995
Negotiating Group on Basic Telecommunications
Informal Note by the Secretariat
DRAFT MODEL SCHEDULE OF COMMITMENTS ON
BASIC TELECOMMUNICATIONS
1. As requested by the Chairman at the meeting of 27-28 February 1995, the Secretariat has
prepared a revision of the draft model schedule for further discussion and elaboration at subsequent
meetings of the Negotiating Group on Basic Teleco mmunications.  As further agreement is obtained
among participants on any outstanding elements of the draft model schedule, the Secretariat can
continue to provide updated versions of the model to assist participants in the drafting of their offersand final schedules.
2. Only four minor and non-substantive adjustments have been made to the draft model
schedule as it appeared in Negotiations on Basic Telecommunications  (TS/NGBT/W/1/Rev.1,
10 June 1994).  These are as follows:
(i) the paragraph preceding the table format, concerning the provision of
information regarding the regulatory en vironment for reasons of transparency
has been deleted.  Most such information has been or is being provided in the
context of participants' responses to the Questionnaire on Basic
Telecommunications  (S/NGBT/W/3, 15 July 1994);
(ii) for clarity, a complete list of the telecommunications services subsectors
from the Services Sectoral Classification List  (MTN.GNS/W/120,
10 July 1991), previously referred to in the model as (a)-(g) and (o), has been
listed in the sector or subsector column;
(iii) the reference to "modes of delivery" has been changed to "modes of supply"
and has been moved to the top of the table so as to be consistent with theterminology and format used in the final schedules of commitments resulting
from the Uruguay Round;  and
(iv) the footnote referring to an emerging consensus on the use of the positive list
approach in scheduling the commitments has been deleted as there has been
no apparent outstanding disagreement on this point.
3. Regarding elements of this draft model schedule which have been left unchanged, it may be
useful to recall the possible implication of certain issues for the continued drafting process.  These
include, but are not limited to, the following:
(i) many of the remaining footnotes refer to outstanding issues now under
discussion, as further described in the Review of Outstanding Issues
(TS/NGBT/W/2, 8 July 1994) and the Reports of previous meetings of the
Group.  The footnotes have been retained since the issues to which they referare not yet resolved.  As resolution of the issues is achieved, it would beS/CSC/W/30
Page 30
possible to delete such footnotes and, in some cases, make relevant changes
to the model;
(ii) the model's reference to 2.C(o) Other services is, and should probably
remain, open ended.  However, it may be useful to draw from "other" basic
services cited in participants' responses to the Questionnaire on Basic
Telecommunications1, in order to furnish the model with some examples of
"other" basic telecommunications on which commitment might be
undertaken;
(iii) the examples of measures listed in the model under the columns on
limitations on market access and on national treatment may not be complete
and may be further elaborated as a result of discussions on limitations
relevant to the modes of supply for basic telecommunications (see also the
informal note by the Secretariat on Modes of Supply and Market access
Limitations (14 February 1995).  For example, mode 2 in both columns and
mode 4 under national treatment in the model currently list no examples;
(iv) as currently drafted, the additional commitments column of the draft model
schedule contains entries referring to areas of regulation in which some
participants believe that additional commitments may be sought.  Most ofthese entries do not yet specify any actual examples of how additional
commitments might be drafted in the regulatory areas noted.
4. With regard to techniques to be used in the drafting of offers and schedules of commitments
on basic telecommunications, the draft model schedule entails few, if any, departures from the
techniques recommended in Scheduling of Initial Commitments in Trade in Services:  Explanatory
Note (MTN.GNS/W/164, 3 September 1993 and Add.1, 30 November 1993).  However, for
additional clarity of commitments in the telecommunications sector, the model provides some
additional scheduling tools not addressed in the Explanatory Note .  These include the list of
"categories" that may be used in conjunction with entries in the sector or subsectors column and the
list of possible areas of additional commitments.  How these tools could be used to clarify thedrafting and hence the understanding of offers/schedules may be viewed as follows:
(i) the "categories" are intended to supplement, where relevant to a participant's
telecommunications regime, the listing of subsectors 2.C(a)-(g)&(o).  Using a
"positive list" approach to scheduling, the combined use of subsectors and
categories would mean, for example, that a participant could list "a.  Voicetelephone services:  on a resale basis", along with any applicable limitations,
as a commitment and might not list "Voice telephone services:  facilities
based", thus offering no commitment on the latter.  Also, "a.  Voice telephone
services:  wire based" and "a.  Voice telephone services:  radio based" might
be listed separately in a schedule where different sets of limitations apply to
each;
(ii) whether a participant undertakes particular additional commitments and how
such a commitment would be formulated will be likely to depend on the
regime concerned and the agreed results of bilateral negotiations and/or
                                                     
1 Some such examples might include:  paging services, satellite transmission services, intra-corporate
communications, video dialtone, wireless access, fixed line access, analogue/digital cellular mobile networks
and services, PCS networks and services, mobile data services, international switching and other internationalgateway facilities such as satellite earth stations, do mestic/international satellite services and satellite
links/capacity.S/CSC/W/30
Page 31
multilateral discussions.  For example, participants that agree to undertake
additional commitments on establishing or maintaining the separation of
regulatory and operational functions might adopt a common formulation for
such commitments.  Alternatively, a regime that has posed a particular
problem for its trading partners with respect to, for example, assignment or
allotment of radio frequencies might inscribe a unique and appropriatelydrafted additional commitment as a result of bilateral negotiations.S/CSC/W/30
Page 32
DRAFT MODEL SCHEDULE OF COMMITMENT S ON BASIC TELECOMMUNICATIONS
Modes of Supply:1      1) Cross-border supply  2) Consumption abroad  3) Commercial presence  4) Presence of natural persons
Sector or Sub-Sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
2.C.TELECOMMUNICATION SERVICES
(UNCPC)
a. Voice telephone services 7521b. Packet-switched data transmission    services 7523**c. Circuit-switched data transmission    services 7523**
d. Telex services 7523**
e. Telegraph services 7522f. Facsimile services 7521**+7529**g. Private leased circuit    services 7522**+7523**and o. Other
bTypes of measures to be listed:c
1) e.g., Quantitativelimitations/needs tests applied tothe number of service suppliers(incl. monopolies, duopolies, etc.)total value of transactions, total
number of operations or quantity of
output.Types of measures to be listed:
1) e.g., Preferences given to domestic
suppliers or restrictions imposed onforeign suppliers in the allotment offrequencies.Types of measures relevant to
possible undertakings:
(Commitments on measures notsubject to scheduling underArticles XVI and XVII, includingbut not limited to those regardingqualifications, standards, or
licensing requirements or licensing
procedures and other domesticregulations that are otherwiseconsistent with Article VI and theAnnex on Telecommunications.)
Relevant categories:
dLocal/long distance/international service
- wire-based- radio-based- on a resale basis
- facilities-based
- for public use- for non-public use2) 2) e.g., Separation of regulatory and
operational functions;
Safeguards against anti-competitive
practices (i.e., of monopolies and
dominant providers);
_________________________________
1.There may be a need to determine whether any telecom-speci fic clarifications regarding modes of supply are required.
b. Refers to services mentioned in the Services Sectoral Classification List (MTN.GNS/W/120, 10 July 1991) which is considered as an illustrative list.
c It has been noted that there is a need for further discussion of measures related to international agreements between operator s and the applicability of the
Agreement to such measures.
d. Depending on the services being offered or on the limitations existing in the regulatory regime concerned, the specific commit ments on these services may be
subdivided in to the categories as noted.S/CSC/W/30
Page 33Modes of Supply:e        1) Cross-border supply  2) Consumption abroad  3) Commercial presence  4) Presence of natural persons
Sector or Sub-Sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
2.C.(a) through (g), and (o)
(continued)3) e.g., Quantitative
limitations/needs tests applied to
the number of service suppliers
(incl. monopolies, etc.), total valueof transactions or assets, totalnumber of operations or quantity ofoutput;
Quantitative limitation on the
number of available frequencies tobe allotted to foreign servicesuppliers; 
f
Restrictions or requirements
regarding the type of legal entity
permitted to supply the services(also, a requirement of certainforms of commercial presencecould rule out cross-border supply);
Limits on foreign equity
participation.
4) e.g., Limitations/needs test
applied to the total number of
natural persons that may be
employed.3) e.g., Preferences given to domestic
suppliers or restrictions imposed on
foreign suppliers in the allotment of
frequencies;
Limitations on the nationality or
residency of directors or board members;
Restrictions on foreign ownership of
land, or foreign ownership of facilities.
4)Procedures or requirements related
to
g:
- licensing
- allotment of radio frequencies- numbering and identification
codes
- type approval
- interconnection;
Pricing related measures, e.g. cost-
oriented pricing
g;
Participation in the standards-
setting process, including reviewand comment prior to adoption of
new standards;
Rights of way for the construction
of infrastructure.
g
_________________________________
e. There may be a need to determine whether any telecom-specifi c clarifications regarding modes of delivery are required.
f. This example is a discriminatory limitation.  Some participants consider non-discriminatory limitations on the number of servi ce suppliers that are established
strictly for technical reasons (e.g. availability of frequency ba nds for radio-based services) to be covered by the disciplines  of Article VI, rather than by Article XVI.  This
is not the view of all participants.
g Further discussion is required to determine whether these meas ures would need to be addressed in the context of the negotiatio ns;  if so, whether they are
adequately covered by other provisions of the Agreement or whether they need to be addressed as additional commitments.S/CSC/W/30
Page 34
Attachment 8
RESTRICTEDWORLD TRADE
ORGANIZATIONMTN.GNS/W/120
10 July 1991
(98-0000)
Special Distribution
SERVICES SECTORAL CLASSIFICATION LIST
Note by the Secretariat
The secretariat indicated in its informal note cont aining the draft classification list (24 May 1991)
that it would prepare a revised version based on commen ts from participants.  The attached list incorporates,
to the extent possible, such comments.  It could, of c ourse, be subject to further modification in the light of
developments in the services negotiations and ongoing work elsewhere.
_______________S/CSC/W/30
Page 35
SERVICES SECTORAL CLASSIFICATION LIST
SECTORS AND SUB-SECTORS CORRESPONDING CPC
1. BUSINESS SERVICES Section B
A. Professional Services
a. Legal Services 861
b. Accounting, auditing and bookeeping services 862
c. Taxation Services 863
d. Architectural services 8671e. Engineering services 8672
f. Integrated engineering services 8673
g. Urban planning and landscape 8674
  architectural services
h. Medical and dental services 9312i. Veterinary services 932
j. Services provided by midwives, nurses,
physiotherapists and para-medical personnel 93191
k. Other
B. Computer and Related Services
a. Consultancy services related to the 841
 installation of computer hardware
b. Software implementation services 842
c. Data processing services 843d. Data base services 844
e. Other 845+849
C. Research and Development Services
a. R&D services on natural sciences 851
b. R&D services on social sciences and humanities 852
c. Interdisciplinary R&D services 853
D. Real Estate Services
a. Involving own or leased property 821
b. On a fee or contract basis 822
E. Rental/Leasing Servi ces without Operators
a. Relating to ships 83103
b. Relating to aircraft 83104
c. Relating to other transport equipment 83101+83102+83105
d. Relating to other machinery and equipment 83106-83109e. Other 832
F. Other Business Services
a. Advertising services 871
b. Market research and public opinion 864
 polling services
c. Management consulting service 865
d. Services related to man. consulting 866
e. Technical testing and analysis serv. 8676S/CSC/W/30
Page 36
f. Services incidental to agriculture, hunting and 881
 forestry
g. Services incidental to fishing 882
h. Services incidental to mining 883+5115
i. Services incidental to manufacturing 884+885
(except for 88442)
j. Services incidental to energy distribution 887
k. Placement and supply services of Personnel 872
l. Investigation and security 873
m. Related scientific and technical consulting 8675
 services
n. Maintenance and repair of equipment
(not including maritime vessels, aircraft 633+
 or other transport equipment) 8861-8866
o. Building-cleaning services 874
p. Photographic services 875
q. Packaging services 876r. Printing, publishing 88442
s. Convention services 87909
*
t. Other 8790
2. COMMUNICATION SERVICES
A. Postal services 7511
B. Courier services 7512
C. Telecommunication services
a. Voice telephone services 7521
b. Packet-switched data transmission services 7523**
c. Circuit-switched data transmission services 7523**d. Telex services 7523**
e. Telegraph services 7522
f. Facsimile services 7521**+7529**g. Private leased circuit services 7522**+7523**
h. Electronic mail 7523**
i. Voice mail 7523**
j. On-line information and data base retrieval 7523**
k. electronic data interchange (EDI) 7523**l. enhanced/value-added facsimile services, incl. 7523**
store and forward, store and retrieve
m. code and protocol conversion n.a.
n. on-line information and/or data
processing (incl.transaction processing) 843**
o. other
                                                     
     *The (*) indicates that the service specified is a component of a more aggregated CPC item specified
elsewhere in this classification list.
     **The (**) indicates that the service specified constitutes only a part of the total range of
activities covered by the CPC concordance (e.g. voice mail is only a component of CPC item 7523).S/CSC/W/30
Page 37
D. Audiovisual services
a. Motion picture and video tape production and 9611
distribution services
b. Motion picture projection service 9612
c. Radio and television services 9613d. Radio and television transmission services 7524
e. Sound recording n.a.
f. Other
E. Other
3. CONSTRUCTION AND RELATED ENGINEERING SERVICES
A. General construction work for buildings 512
B. General construction work for civil engineering 513
C. Installation and assembly work 514+516
D. Building completion and finishing work 517
E. Other 511+515+518
4. DISTRIBUTION SERVICES
A. Commission agents' services 621
B. Wholesale trade services      622
C. Retailing services 631+632
6111+6113+6121
D. Franchising 8929
E. Other
5. EDUCATIONAL SERVICES
A. Primary education services 921
B. Secondary education services 922
C. Higher education services 923
D. Adult education 924
E. Other education services 929
6. ENVIRONMENTAL SERVICES
A. Sewage services 9401
B. Refuse disposal services 9402S/CSC/W/30
Page 38
C. Sanitation and similar services 9403
D. Other
7. FINANCIAL SERVICES
A. All insurance and insurance-related services  812**
a. Life, accident and health insurance services 8121
b. Non-life insurance services 8129
c. Reinsurance and retrocession 81299*
d. Services auxiliary to insurance (including
broking and agency services) 8140
B. Banking and other financial services
(excl. insurance)
a. Acceptance of deposits and other repayable funds 81115-81119
from the public
b. Lending of all types, incl., inter alia, consumer 8113
credit, mortgage credit, factoring and financing of
commercial transaction
c. Financial leasing 8112d. All payment and money transmission services 81339**
e. Guarantees and commitments 81199**
f. Trading for own account or for account of customers,
whether on an exchange, in an over-the-counter 
market or otherwise, the following:- money market instruments (cheques, bills, 81339**
  certificate of deposits, etc.)
- foreign exchange 81333
- derivative products incl., but not limited to, 81339**
   futures and options
- exchange rate and interest rate instruments, 81339**
   inclu. products such as swap s, forward rate agreements, etc.
- transferable securities 81321*
- other negotiable instruments and financial 81339**
  assets, incl. bullion
g. Participation in issues of all kinds of 8132
securities, incl. under-writing and placementas agent (whether publicly or privately) and
provision of service related to such issues
h. Money broking 81339**  i.
management, all forms of collective 81323*
investment management, pension fundmanagement, custodial depository and
trust services
j. Settlement and clearing services for financial 81339**
assets, incl. securities, derivative products, or 81319**
and other negotiable instruments
k. Advisory and other auxiliary financial 8131
services on all the activities listed in or 8133
Article 1B of MTN.TNC/W/50, incl. credit
reference and analysis, investment andS/CSC/W/30
Page 39
portfolio research and advice, advice on
acquisitions and on corporate restructuring and strategy
l. Provision and transfer of financial information, 8131
and financial data processing and related
software by providers of other financial services
C. Other
8. HEALTH RELATED AND SOCIAL SERVICES
(other than those listed under 1.A.h-j.)
A. Hospital services 9311
B. Other Human Health Services 9319
(other than 93191)
C. Social Services 933
D. Other
9. TOURISM AND TRAVEL RELATED SERVICES
A. Hotels and restaurants (incl. catering) 641-643
B. Travel agencies and tour operators services 7471
C. Tourist guides services 7472
D. Other
10. RECREATIONAL, CULTURAL AND SPORTING SERVICES
(other than audiovisual services)
A. Entertainment services (including theatre, live
bands and circus services) 9619
B. News agency services 962
C. Libraries, archives, museums and other
cultural services 963
D. Sporting and other recreational services 964
E. Other
11. TRANSPORT SERVICES
A. Maritime Transport Services
a. Passenger transportation 7211
b. Freight transportation 7212
c. Rental of vessels with crew 7213
d. Maintenance and repair of vessels 8868**
e. Pushing and towing services 7214S/CSC/W/30
Page 40
f. Supporting services for maritime transport 745**
B. Internal Waterways Transport
a. Passenger transportation 7221
b. Freight transportation 7222c. Rental of vessels with crew 7223
d. Maintenance and repair of vessels 8868**
e. Pushing and towing services 7224
f. Supporting services for internal waterway 745**
transport
C. Air Transport Services
a. Passenger transportation 731
b. Freight transportation 732
c. Rental of aircraft with crew 734
d. Maintenance and repair of aircraft 8868**
e. Supporting services for air transport 746
D. Space Transport 733
E. Rail Transport Services
a. Passenger transportation 7111
b. Freight transportation 7112
c. Pushing and towing services 7113
d. Maintenance and repair of rail transport equipment 8868**
e. Supporting services for rail transport services 743
F. Road Transport Services
a. Passenger transportation 7121+7122
b. Freight transportation 7123
c. Rental of commercial vehicles with operator 7124
d. Maintenance and repair of road transport 6112+8867
equipment
e. Supporting services for road transport services 744
G. Pipeline Transport
a. Transportation of fuels 7131
b. Transportation of other goods 7139
H. Services auxiliary to all modes of transport
a. Cargo-handling services 741
b. Storage and warehouse services 742
c. Freight transport agency services 748
d. Other 749
I. Other Transport Services
12. OTHER SERVICES NOT INCLUDED ELSEWHERE 95+97+98+99
__________