RESTRICTED  
  
S/C/W/441  
 
9 June 2023 
(23-3955) Page: 1/2 
Council for Trade in Services  Original: English  
 
  
COMMUN ICATION FROM THE UNITED KINGDOM  
REVIEW OF ARTICLE II (MFN) EXEMPTIONS  
Written answers by the United Kingdom  to the questions from  Hong Kong, China  
and the Republic of Korea  (S/C/W/ 431) 
The following communication  dated 9 June 2023 , from the delegation of the United Kingdom  is being 
circulated to the Members of the Council for Trade in Services.  
 
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1  QUESTIONS 33 FROM HONG KONG, CHINA AND 34 FROM THE REPUBLIC OF KOREA ON 
THE UK’S MFN EXEMPTION REGARDING WAIVING THE NEED FOR A WORK PERMIT FOR 
CITIZENS OF COMMONWEALTH COUNTRIES WITH A GRANDPARENT BORN IN THE UK  
(S/C/W/ 431, PAGE 6)  
(33) The exemption appears to be covered by GATS exceptions and not MFN inconsistent. Would 
the United Kingdom consider removing this exemption?  If not, please explain the rationale for 
maintaining such exemption.  
 
Work permit requirement alone should not constitute an MFN breach if it is simply an immigration 
measure, in accordance with the GATS Annex on Movement of Natural Person s Supplying Services.  
Please explain the need for maintaining this exemption.  
 
(34) Regarding the MFN exemption measure, "For citizens of Commonwealth countries with a 
grandparent born in the UK, the UK waives the requirement for a work permit in all services sectors.", 
please confirm if the exemption measure pertains to measures affecting natural persons seeking 
access to the employment market, which are carved out by paragraph 2 of Annex on Movement of 
Natural Persons Supplying Services under the Agr eement, irrespective of the period of stay.  
 
Answer from the United Kingdom:  
The exemption in question relates to the UK’s policy to waive the requirement for a work permit for 
citizens of the Commonwealth countries with a grandparent born in the United Ki ngdom in all 
services sectors. Citizens of Commonwealth countries admitted under this category retain the right 
to take up employment in the UK without the need for a work permit. As such, there is a continuing 
need to maintain this exemption.  
 
2  QUESTIONS 7 3 FROM HONG KONG, CHINA; 74 AND 76 FROM THE REPUBLIC OF KOREA 
ON THE UK’S MFN EXEMPTIONS FOR AUDIOVISUAL SERVICES  (S/C/W/ 431, PAGE 10)  
(73) Please a dvise whether this exemption has been used for actual measure. If so, please provide 
examples of the redressive duties imposed with the countries involved.  If not, please explain why 
the conditions which created the need for the exemptions still prevail.   
 
(74) Regarding the MFN exemption measures, "Redressive duties which may be imposed in order to 
respond to unfair pricing practices, by other WTO Members distributors of audiovisual works.", please 
elaborate on or specify 'unfair pricing practices'.  S/C/W/441  
 
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  (76) R egarding the MFN measures, "Measures taken to prevent, correct or counterbalance adverse, 
unfair or unreasonable conditions or actions affecting UK audiovisual services, products or service 
producers, in response to corresponding or comparable actions take n by other Members", please 
elaborate on or specify 'adverse, unfair or unreasonable conditions or actions'.  
 
Answer from the United Kingdom:  
The UK has received four questions on MFN Exemptions in audio -visual services – Qs 73 -76. In each 
case, the condit ions which created the need for these exemptions still prevail.  
 
Questions 73 and 74 relate to an Exemption which provides for the facility to adopt redressive duties 
which may be imposed in order to respond to unfair pricing practises in audio -visual serv ices trade 
and question 76 relates to an exemption which allows discriminatory actions in the audio -visual 
sector to counter possible actions from other WTO Members, to prevent, correct or counterbalance 
adverse, unfair or unreasonable actions by other Mem bers. These three questions will be answered 
together.   
 
The presence of these exemptions is designed to discourage unfair or unreasonable practices and 
actions, and provide for the possibility to adopt duties countering unfair pricing practises in audio -
visual services trade. Acting against unfair practices can be considered a legitimate aim for an MFN 
exemption to serve. Until now, no measure has been applied on the basis of these exemptions.  This 
may in part be due to the fact the MFN exemptions have ser ved as a deterrent to unfair pricing 
practices. The conditions which created the need for these exemptions still prevail and as such the 
UK intends to maintain these exemptions.  
 
3  QUESTION 75 FROM HONG KONG, CHINA ON A UK MFN EXEMPTION FOR AUDIOVISUAL 
SERVI CES (S/C/W/ 431, PAGE 10)   
As regards the "countries to which the measures applies" column, please provide a list of countries 
whose cultural cooperation may be desirable.  Is there any objective criteria in drawing up the above 
list? 
 
Answer from the United Kingdom:  
Question 75 relates to countries with whom cultural cooperation may be desirable. The relevant 
exemption is specific – it concerns measures based upon agreements on coproduction of audio -
visual works, with the aim of promoting cultural links. Given the specific nature of the exemption, 
we do not see a need for such a list.  
 
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