WT/REG338/2  
 
12 June 2014  
(14-3403)  Page: 1/2  
Committee on Regional Trade Agreements  Original: English  
 
 FREE TRADE AGREEMENT BETWEEN UKRAINE AND MONTENGRO 
(GOODS AND SERVICES) 
QUESTIONS AND REPLIES 
 The following communication, dated 6 June 2014, is being circulated at the request of the 
delegations of Ukraine and Montenegro. 
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  Question from the delegation of Canada 
 
1.1.  Paragraph 5.14: The Agreement contains  no specific provisions on government 
procurement.  
 Do the Parties intend to negotiate government procurement commitments in the 
future? If so, could the Parties provide a specific timeline? 
  To date, the Parties to the Agreement have not been conducting negotiations regarding the 
corresponding amendments to the Agreement in th is area. At the same time, both Ukraine and 
Montenegro are in the process of negotiations on accession to the WTO Agreement on Government Procurement. After completing these WTO negotiations by both countries, the appropriate amendments to the Agreement (FTA) concerning government procurement may be considered. 
 
Questions from the delegation of Thailand 
 
General Provisions on Trade in Services 
Movement of Natural Persons 
 1.2.  Natural persons who are contractual service suppliers are also granted access to 
the Montenegro market for not more than 3 months in any 12 month period or the duration of the contract whichever is less, provided that (i) the legal person employing 
the natural person has a service contract of greater than 12 months with the employer, 
(ii) the contract complies with Montenegro's legal requirements, (iii)  the natural person 
has been employed by the legal person for at least 12 months, and (iv) the natural 
person possesses (a) a university degree or technical qualification and (b) any required 
professional qualification requ ired under the law of Montenegro and (c) at least 3 years' 
experience in the sector. An exclusive list of sub-sectors concerned are set out in the 
horizontal commitments of Montenegro's  Schedule of commitments under the 
Agreement. 
Referring to "(ii) the contract complies with Montenegro's legal requirements", 
please give details about the le gal requirements mentioned?  
 
Reply from the delegation of Montenegro 
 
 Article 23 of the Law on Employment and Work of Foreigners ("Official Gazette of 
Montenegro" 22/08 and 32/11) provides that licens e of work, is a license with a predetermined 
length of time, based on which a foreigner performs business or provides services based on a WT/REG338/2 
 
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  contact for the performance of business or services at a legal entity based in Montenegro or a 
foreign company registered in Montenegro.  
Cross-border services of foreigners, in acco rdance with Article 26 of the above-mentioned 
law, for the services performed under the contract, concluded between a foreign company, or a 
foreigner and a legal person established in Mont enegro, for whom the services are performed. 
 
In accordance with the Rulebook on the way of issuing work permits for foreigners ("Official 
Gazette of Montenegro", number 40/41), for issuin g of work permits for cross-border services, 
which is submitted by legal entity based in Montenegro, with which is attached, among other things, it is required: a contract for cross-border service, concluded between foreign company or a 
foreigner or legal person established in Montenegro for whom services are provided. 
  Thus, the service contract, as well as cross-border services, in accordance with the Law on 
Employment and Work of Aliens constitute necessary conditions for the issuance of work permits. 
 1.3.  Under its GATS commitments (which ar e in the view of the Parties incorporated 
into the Agreement through footnote 1 to Annex III), Ukraine has undertaken 
commitments on 1. Intra-corporate transfer ees (executives, managers and specialists) 
and 2. other essential persons. Intra co rporate transferees and qualified persons 
providing services directly without establis hing a commercial presence may hold a work 
permit for a period of 3 years, which may be  extended for a 2 year period. Persons who 
are services suppliers and persons responsible for the establishment of a commercial presence in Ukraine may remain for a maxi mum of 180 days in any 12 month period.  
 Please specify what are covered by "qualif ied persons providing services directly 
without establishing a commercial presence", i.e. does this include Independent Professionals?  
 
Reply from the delegation of Ukraine 
 
 Ukraine's horizontal commitments regarding movement of natural persons do not contain 
definition "qualified persons providing services  directly without establishing a commercial 
presence"  
Instead, Ukraine's Schedule defines "persons  who provide services without establishing 
commercial presence in Ukraine (direct provision of services)" (paragraph IIb), i.e. natural 
persons, "who temporarily stay in Ukraine and who come to Ukraine in accordance with a contract for direct provision of services and satisfy the requirements of professional qualifications, indicated 
in paragraph Ic)". 
 
Paragraph Ic, which is referred to above, reads: "Specialists: Individuals in the organization 
who possess knowledge at an advanced level of  expertise and a proprietary knowledge of the 
entity's products, services, operations, or management techniques. This knowledge should reflect the required academic credentials and professional  qualifications for performing work within the 
scope of the particular profession". 
 
Thus, independent professionals may be covere d by Ukraine's commitments provided that 
they meet the aforesaid criteria. 
 
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