WT/REG297/1/Rev.1  
17 July 2013  
(13-3839)  Page: 1/48  
Committee on Regional Trade Agreements   
 
FACTUAL PRESENTATION 
FREE TRADE AGREEMENT BETWEEN GUATEM ALA AND THE SEPARATE CUSTOMS  
TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU  
(GOODS AND SERVICES) 
REPORT BY THE SECRETARIAT 
Revision 
This report, prepared for the considerat ion of the Free Trade Agreement between 
Guatemala and the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu has been drawn up by the WTO Secretariat on its own responsibility and in full consultation with the Parties. The factual presentation reproduces as closely as 
possible the terminology used in the Agreement and in the comments provided. 
The Secretariat notes that none of this terminology has implications for sovereignty. The report has been drawn up in accordance with the rules and 
procedures contained in the Decision for a Transparency Mechanism for Regional 
Trade Agreements (WT/L/671).   
Any technical questions arising from this report may be addressed to 
Ms. Silvia Avila Seifert (tel: +41 22 739 5064). 
 WT/REG297/1/Rev.1 
 
- 2 - 
 
   
TABLE OF CONTENTS 
Page 
 
1   TRADE ENVIRONMENT ................................................................................................. 4  
1.1   Merchand ise trade ..................................................................................................... 4  
1.2   Trade in servic es and inve stment ................................................................................. 6  
1.2.1   Trade in services .................................................................................................... 6 
1.2.2   Foreign di rect inve stment......................................................................................... 8  
2   CHARACTERISTIC ELEMEN TS OF THE AG REEMENT ...................................................... 8  
2.1   Background  Information ............................................................................................. 8  
2.2   Structure of the Agreement ......................................................................................... 8  
3   PROVISIONS ON TRADE IN GOODS ............................................................................. 9  
3.1   Import duties and charges, and quantitative restrictions ................................................. 9  
3.1.1   General provisions .................................................................................................. 9  
3.1.2   Liberalization of  trade and ta riff lines ........................................................................ 10 
3.1.3   Liberali zation schedule............................................................................................ 11 
3.1.3.1   Guatem ala ......................................................................................................... 11 
3.1.3.2   Chinese Taipei .................................................................................................... 12 
3.1.4   Tariff rate quotas ................................................................................................... 14 
3.2   Rules of origin .......................................................................................................... 14 
3.3   Export duties and charges,  and quantitative  restrictions ................................................. 15 
3.4   Regulatory provisions on trade in goods ....................................................................... 17 
3.4.1   Standards ............................................................................................................. 17 
3.4.1.1   Sanitary and phytosanitary measures .................................................................... 17 
3.4.1.2   Technical barriers to trade .................................................................................... 18 
3.4.2   Safeguard mechanisms ........................................................................................... 19 
3.4.2.1   Global safeguards ............................................................................................... 19 
3.4.2.2   Bilateral safeguards ............................................................................................. 19 
3.4.2.3   Special safeguards .............................................................................................. 20 
3.4.3   Anti-dumping and countervailing measures ............................................................... 20 
3.4.4   Subsidies .............................................................................................................. 21 
3.4.4.1   Dome stic support ................................................................................................ 21 
3.4.4.2   Export subsidies.................................................................................................. 21 
3.4.5   Customs-re lated procedures .................................................................................... 21 
3.4.6   Other regulations ................................................................................................... 21 
4   PROVISIONS ON TRADE IN SERVICES ....................................................................... 21  
4.1   Scope and definitions ................................................................................................ 21 
4.2   Denial of benefits ..................................................................................................... 22 
4.3   General provisions on trade in services ........................................................................ 22 
4.3.1   Mark et acce ss ....................................................................................................... 22 WT/REG297/1/Rev.1 
 
- 3 - 
 
  4.3.2   National and MFN tr eatment .................................................................................... 23 
4.3.3   Commercial presence ............................................................................................. 23 
4.3.4   Performanc e requirements ...................................................................................... 24 
4.3.5   Movement of  natural persons .................................................................................. 24 
4.3.6   Senior management  and board of  direct ors ............................................................... 25 
4.3.7   Other Investment-related Provisions ......................................................................... 25 
4.4   Liberalization commitments ........................................................................................ 25 
4.4.1   Guatemala ............................................................................................................ 25 
4.4.1.1   Horizont al commit ments ...................................................................................... 25 
4.4.1.2   Sector sp ecific-commi tments ................................................................................ 26 
4.4.2   Chinese Taipei ....................................................................................................... 29 
4.4.2.1   Horizont al commit ments ...................................................................................... 29 
4.4.2.2   Sector-spe cific commitments ................................................................................ 29 
4.5   Regulatory provisions ................................................................................................ 32 
4.5.1   Domestic regulation ............................................................................................... 32 
4.5.2   Recognition ........................................................................................................... 33 
4.5.3   Subsidies .............................................................................................................. 33 
4.5.4   Safeguards ........................................................................................................... 33 
4.5.5   Other ................................................................................................................. .. 33 
4.6   Sector specific provis ions on trade in services ............................................................... 33 
4.6.1   Air and mariti me transpor tation ............................................................................... 33 
5   GENERAL PROVISIONS  OF THE AGREEMENT ............................................................. 35  
5.1   Tran sparency ........................................................................................................... 35 
5.2   Current payments and capital movements .................................................................... 36 
5.3   Exceptions ............................................................................................................... 36 
5.4   Accession and withdrawal .......................................................................................... 36 
5.5   Institutio nal framework ............................................................................................. 36 
5.6   Disput e settlement ................................................................................................... 37 
5.7   Relationship with other agr eements concluded by the Parties .......................................... 40 
5.8   Government  procurement .......................................................................................... 41 
5.9   Intellectual property rights ......................................................................................... 41 
5.10   Coop eration ........................................................................................................... 42 
ANNEX 1 ....................................................................................................................... . 43 
ANNEX 2 ....................................................................................................................... . 48 
 WT/REG297/1/Rev.1 
 
- 4 - 
 
   
Key Facts 
Parties to the Agreement : Guatemala - the Separate Customs 
Territory of Taiwan, Penghu, Kinmen 
and Matsu 
 
Date of Signature:    22 September 2005 
 
Date of entry into force:   1 July 2006 
 
Full Implementation:   2020 
 
 
 
1  TRADE ENVIRONMENT 
1.1.  The Free Trade Agreement (hereafter refe rred to as "the Agreement") between Guatemala 
and the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (hereafter referred to 
as "Chinese Taipei") is Guatemala's ninth RTA and Chinese Taipei's fourth. 
1.2.  The economies of the Parties are considerab ly different in size and trade profiles. In 2011, 
Guatemala's GDP, with a population of 14.8 million, was estimated at U$46.9 billion while that of 
Chinese Taipei, with a population of 23.2 million, was US$466.5 billion. With total merchandise 
exports of US$10.4 billion and imports of US$16.6 billion Guatemala was the world's 91st largest 
exporter and 80th largest importer compared to Chinese Taipei's ranking as the 18th largest 
exporter and 18th largest importer with total merchandise exports of U$S308.3 billion and imports 
of US$281.4 billion. In commercial services, Guatemala ranked equally 94th in terms of exports 
(US$2.2 billion) and imports (US$2.5 billion) while Chinese Taipei ranked as 24th largest exporter 
(US$45.9 billion) and 28th largest importer (US$41.3billion). While manufactures account for the 
bulk of Chinese Taipei's exports and imports (87.8% and 62% respectively) Guatemala's major 
exports are comprised of agricultural products (44.7%) and manufactures 38.3% while its imports are dominated by manufactures (64%). The Parties'  trade to GDP ratios averaged over 2009-2011 
were 62.3 for Guatemala and 134.1 for Chinese Taipei. 
1.1  Merchandise trade 
1.3.  Trade between the Parties is quite modest  and accounts for a small share of each Party's 
trade. In 2011, exports to and imports from Chin ese Taipei represented, respectively, 0.4% and 
0.7% of Guatemala's total exports and imports, making Chinese Taipei Guatemala's 
t 20thexport 
destination and 17th import source.1 As for Guatemala, it was Chinese Taipei's 53rd and 51st largest 
export and import partner with 0.03% of both its total exports and of its total imports.2 
1.4.  Recent developments in global and intra-Party trade are presented in Charts 1.1 and 1.2. 
Over the period surveyed (2000-2011) Guatemala' s global imports and exports have experienced 
some volatility in growth. The growth of imports outpaced that of exports widening Guatemala's 
trade deficit, while Chinese Taipei maintained a trade surplus. In its trade with Chinese Taipei, 
Guatemala has run a deficit which has however decreased as exports to Chinese Taipei have 
increased gradually since the entry into force of the Agreement. 
                                               
1 In 2011, Guatemala's largest export markets were: th e United States (41.6%), El Salvador (11.1%), 
Honduras (8.0%), the European Union (27) (6.6%) an d Mexico (5.0%). Its largest import sources: The 
United States (39.2%), Mexico (11.2), China (6.9%), the European Union (27) (6.6%) and El Salvador (4.9%). 
2 In 2011, Chinese Taipei's largest export markets were: China (27.2%), Hong Kong, China (13.0%), 
the United States (11.8%), the European Union (27) (9 .3%) and Japan (5.9%).  Its largest import sources:  
Japan (18.5%), China (15.5%), the United States (9.3%), the European Union (27) (8.5%) and the Republic of Korea (6.3%). WT/REG297/1/Rev.1 
 
- 5 - 
 
  Chart 1.1 - Guatemala: Merchandise trade with world and Chinese Taipei, 2000-2011 
0.00.20.40.60.81.0
05101520
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011US$ billion US$ billion
Imports from  Chinese Taipei
Exports to Chinese TaipeiTotal imports
Total exportsLeft hand scale: Right hand scale:
 
Source: UNSD, Comtrade database, Guatemala authorities (2003 bilateral trade). 
 
Chart 1.2 - Chinese Taipei: Merchandise trade with world and Guatemala, 2000-2011 
0.00.51.01.52.0
050100150200250300350
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011US$ billion US$ billionImports from  Guatemala
Exports to GuatemalaTotal imports
Total exportsLeft hand scale: Right hand scale:
 
 
Source: UNSD,Comtrade da tabase and WTO-IDB. 
 
1.5.  Chart 1.3 below shows the commodity struct ure of the Parties' bilateral and global trade 
during the period 2003-2005 by broad HS Section. Four of Guatemala's largest global exports 
(vegetables, textiles, prepared foods and chemical s) accounted for 70% of total exports; prepared 
foods alone accounted for 80.9% of Chinese Taipei's imports from Guatemala, vegetables contributing an additional 6.4%. Just over half of  Chinese Taipei's global exports were made up of 
machinery, the three next ones: base metals, plastics and rubber and textiles accounted for an 
additional 24.9%. Guatemala's four main imports from Chinese Taipei were textiles, machinery 
vehicles and plastics and rubber accounting for 73.6%. WT/REG297/1/Rev.1 
 
- 6 - 
 
  Chart 1.3 Guatemala and Chinese Taipei: pr oduct composition of merchandise trade, 
annual average (2003-2005) 
24.6 
18.3 
14.6 12.5 7.2 5.2 4.3 2.9 2.2 8.2 
80.9 8.8 6.4 2.0 1.9 50.2 
10.5 7.3 7.1 6.4 4.6 3.8 3.6 2.3 4.2 16.2 
15.1 
13.4 
9.8 9.2 6.9 6.6 5.4 4.7 3.6 9.2 
39.5 
14.6 10.7 10.2 6.8 3.4 3.3 1.6 1.6 1.6 6.6 24.7 
22.7 
17.0 9.2 6.2 5.5 5.4 4.1 5.3 Guatemala's imports from Chinese Taipei
Chinese Taipei's imports from GuatemalaPer cent
Total:  US$ 110
Total:  US$ 9 millionTotal:  US $8.3 billion
Total: US $ 158 billionTotal:  US$ 169 billion
Total:  US$ 3.6 billionChinese Taipei's global exports
Guatemala's global exportsGuatemala's global imports
Chinese Taipei's global imports
Vegetables
Prepared 
foodsMinerals
ChemicalsPlastics, 
rubberTextiles
Base metalsMachinery
VehiclesOptical Other
Miscellaneous Wood pulp
 
1.2  Trade in services and investment 
1.2.1  Trade in services 
1.6.  Table 1.1A. and 1.1B. show global and bi lateral trade in services and foreign direct 
investment, respectively for Guatemala and Chinese Taipei during 2003-2005 (a year prior to the entry into force of the Agreement). During this time, Guatemala ran a deficit in its global trade in 
services which has however diminished as imports and exports increased. Its main exports are 
travel, communication services and transportation services and its main imports transportation services, travel and financial services. There is no available data from Guatemala on bilateral trade. 
1.7.  Chinese Taipei has also run a deficit in its global trade in services during this period which has 
increased as imports and exports increased. Its principal exports were by far other business 
services followed by transportation, travel and financial services; its main imports were other 
business services, transportation and travel services, royalties and licence fees and financial 
services. Chinese Taipei's exports to Guatemala are dominated by other business services.  
Table 1.1 Trade in commercial services and in vestment with Chinese Taipei and world, 
2003-2005 
A. Guatemala  
Unit: in million US$ 
Service Item World Chinese Taipei 
Exports Imports Exports Imports 
2003 2004 2005  2003  2004  2005  2003  2004  2005 2003 2004  2005  
Total commercial 
services 781 1,015 1,221  1,091  1,325  1,429  - - - - - - 
Transportation 
services 99 150 152 603 684 788 - - - - - - WT/REG297/1/Rev.1 
 
- 7 - 
 
  Service Item World Chinese Taipei 
Exports Imports Exports Imports 
2003 2004 2005  2003  2004  2005  2003  2004  2005 2003 2004  2005  
Travel 538 630 791  290 385 421 - - - - - - 
Communication 
services 109 167 174 9 15 17 - - - - - - 
Construction - - - - - - - - - - - - 
Insurance 
services   11 13 14 139 173 125 - - - - - - 
Financial 
services 2 5 5  2 4 6 - - - - - - 
Computer and 
information 
services 3 3 10 2 4 2 - - - - - - 
Royalties and 
licence fees 1 2 5  32 40 49 - - - - - - 
Other 
business 
services 19 44 71 14 19 22 - - - - - - 
Personal, 
cultural and recreation services 0 1 0
 1 2 0 - - - - - - 
 World Chinese Taipei 
 Outward Inward Outward Inward 
 2003 2004 2005  2003  2004  2005  2003  2004  2005 2003 2004  2005  
Total FDI stocks 171 212 250  4,387  4,683  3,319  - - - - - - 
Total FDI flows 46 41 38 263 296 508 - - - - - - 
 
Table 1.1 Trade in commercial services an d investment with Guatemala and world, 
2003-2005 
B. Chinese Taipei  
Unit: in million US$ 
Service Item World Guatemala 
Exports Imports Exports Imports 
2003  2004 2005 2003  2004  2005  2003  2004  2005 2003 2004  2005  
Total commercial 
services 23,028  25,545 25,574 24,803  29,859  31,420  1,517  1,398  1,014 28 82 401 
Transportation 
services 4,387 5,294 5,924 6,714 8,132 8,439 N.A. N.A. N.A. 2 6 5 
Travel 2,977 4,054 4,977 6,480 8,170 8,682 N.A. N.A. 72 9 26 137 
Communication 
services 338 333 320 460 496 505 27 27 23 1 2 9 
Construction 
and installation 118 152 121 457 558 376 N.A. N.A. N.A. N.A. N.A. N.A. 
Insurance 
services 451 382 365 1,236 1,205 967 48 26 23 2 6 22 
Financial 
services 863 1,142 1,517 1,112 884 1,370 56 72 101 2 3 24 
Computer and 
information 
services 110 110 105 248 238 315 4 6 5 0 1 5 
Royalties and 
licence fees 215 290 234 1,689 1,677 1,796 N.A. N.A. N.A. 3 8 42 
Other business 
services 13,529  13,739 11,950 6,201 8,261 8,669 1,382  1,268  790 9 29 150 
Personal, 
cultural and recreation services 40 49 61 206 238 301 N.A. N.A. 0 0 1 7 
 World Guatemala 
 Outward Inward Outward Inward 
 2003  2004 2005 2003  2004  2005  2003  2004  2005 2003 2004  2005  
Total FDI stocks 84,096 91,265 103,332  37,262  38,283  43,175  8.2 8.2 8.2 - - - 
Total FDI flows 5,682 7,145 6,028  453 1,898  1,625  - - - - - - 
N.A. not available. 
 Source: Chinese Taipei authorities, IMF (Guatemala trade in services) and UNCTAD (global FDI). WT/REG297/1/Rev.1 
 
- 8 - 
 
  1.2.2  Foreign direct investment 
1.8.  Data on foreign direct investment (FDI) is also shown in Table 1.1A. and 1.1B. Guatemala is 
a net recipient of FDI. Chinese Taipei is a net FDI exporter. 
2  CHARACTERISTIC ELEMENTS OF THE AGREEMENT 
2.1  Background Information 
2.1.  The Agreement was signed by the Parties on 22 September 2005 and entered into force on 
1 July 2006. 
2.2.  The goods and services aspects of the Agr eement were notified to WTO by the Parties on 
11 July 2011 under Article XXIV:7(a) of the GATT 1994, and Article V:7(a) of the GATS, respectively (document WT/REG297/N/1 and S/C/N/595) . The text of the Agreements is available, 
together with its related Annexes, on the following official websites: 
 Guatemala: 
 http://portaldace.mineco.gob.gt/tratados-y-acuerdos-comerciales  
 http://portaldace.mineco.gob.gt/tratados-y-acuerdos-comerciales  
 
 Chinese Taipei: 
 http://www.trade.gov.tw/english/ Pages/List.aspx?nodeID=676  
 
2.2  Structure of the Agreement 
2.3.  The Agreement is composed of six Parts, containing 21 Chapters and various annexes- either 
within the respective Chapter or attached to the Agreement. The annexes also include the Parties 
Schedules related to their liberalization commitments in goods and in services. 
Box 2.1 Structure of the Agreement  
Preamble 
PART ONE   General Aspects  
Chapter 1  Initial provisions 
Chapter 2  General definitions  
PART TWO   Trade in goods  
Chapter 3  National Treatment and Market Access for goods 
Chapter 4  Rules of origin 
Chapter 5  Customs procedures related to rules of origin 
Chapter 6  Safeguard measures 
Chapter 7  Unfair trade practices 
PART THREE  Trade barriers  
Chapter 8  Sanitary and phytosanitary measures 
Chapter 9  Measures on standards, metrology and authorization procedures 
PART FOUR  Investment, services and related matters   
Chapter 10  Investment 
Chapter 11  Cross-border trade in services 
Chapter 12  Temporary entry of business persons 
Chapter 13  Air transportation 
Chapter 14   Maritime transportation 
PART FIVE   Intellectual property rights 
Chapter 15  Intellectual property 
PART SIX   Administrative and institutional provisions  
Chapter 16  Transparency 
Chapter 17  Administration of the Agreement 
Chapter 18  Dispute Settlement 
Chapter 19  Exceptions 
Chapter 20   Cooperation 
Chapter 21  Final provisions 
Source: Free Trade Agreement between Guatemala and Chinese Taipei. WT/REG297/1/Rev.1 
 
- 9 - 
 
  2.4.  The objectives of the Agreement are to prom ote the expansion and diversification of trade of 
goods and services, eliminate barriers to trade and facilitate the cross-border movement of goods and services, to promote fair competition, to promote, protect and substantially increase investments and to establish a framework for further bilateral cooperation. Although there is no 
explicit date for full implementation, according to the Tariff Reduction Schedule, the Agreement is 
to be implemented in fifteen years.  
3  PROVISIONS ON TRADE IN GOODS 
3.1.  Parts Two and Three of the Agreement co ver trade in goods and goods-related aspects. 
3.1  Import duties and charges,  and quantitative restrictions 
3.1.1  General provisions 3.2.  Under Chapter 3, the Parties agree to prov ide national treatment to each other's goods in 
accordance with Article III of GATT 1994, includin g its interpretative notes. Article III of GATT 
1994 is made part of the Agreement mutatis mutandis.  National treatment does not however apply 
to certain measures related to import and export restrictions identified by Guatemala in 
Annex 3.09.  
3.3.  Concerning tariffs, the Parties agree not to increase any existing tariff rate nor adopt any new 
customs tariff on originating goods. They establish a Tariff Reduction Schedule (Annex 3.04) which 
is an integral part of the Agreement and may be  improved by agreement between the Parties. A 
Party may increase a customs tariff to a level no higher than that established in Annex 3.04 if previously this tariff had been unilaterally reduced. During the tariff reduction process the Parties will apply to each other the lower customs tariff by  comparison between the tariff in its respective 
Tariff Reduction Schedule and the applied MFN duty (in force according to Article I of GATT 94). 
Upon entry into force, the principles of custom s valuation will be those established in the WTO 
Customs Valuation Agreement, including its annexes. Officially established minimum values shall 
not be the basis for determining the custom value of goods.  
3.4.  The Parties shall grant duty-free temporary admission under certain conditions to: 
(i) professional equipment necessary to carry out a business, trade or professional activity; (ii) 
goods intended for display or demonstration; (iii) commercial samples and advertising films and 
recordings; and goods imported for export purposes . They shall also grant duty-free entrance to 
commercial samples of negligible value and printed advertising material from the other Party (Article 3.06). 
3.5.  As for non-tariff measures, the Parties shall apply domestic support in accordance with the 
WTO Agreement on Agriculture ensuring that such support programmes do not distort the domestic trade of the other Party, nor diminish market access opportunities for its goods 
(Article 3.08). The Parties agree to immediately eliminate non-tariff barriers, with the exception of 
their rights under Articles XX and XXI of GATT 1994, and those regulated by Chapter 8 (Sanitary and Phytosanitary Measures) and Chapter 9 (Standards, Metrology-related Measures and 
Authorization Procedures).  
3.6.  The Parties agree not to adopt or maintain any prohibition or restriction on imports of goods 
of the other Party except in accordance with Article XI of GATT 1994 and as permitted in the enforcement of countervailing and antidumping orders, import price requirements, including 
minimum and reference prices (Article 3.09). Article XI of GATT 1994 and its interpretative notes, 
are incorporated into and form part of the Ag reement. The Parties establish exceptions in 
Annex 3.09 (Import and Export Restrictions). Special Safeguard Measures may be applied for 
products included in Annex 3.13. The SSM will consist of a tariff increase to the level of the MFN 
tariff at the time of importation or on July 31 2005, whichever is lower. Further details are provided in the section on Safeguard mechanisms below. 
3.7.  A Committee on Trade in goods is established under Article 3.15 whose role is to consider 
any matter relating to the implementation of Chapter 3.  WT/REG297/1/Rev.1 
 
- 10 - 
 
  3.1.2  Liberalization of trade and tariff lines 
3.8.  Table 3.1A. shows Guatemala's overall tariff elimination. In 2006 when the Agreement 
e n t e r e d  i n t o  f o r c e ,  4 8 . 9 %  o f  G u a t e m a l a ' s  t a r i f f s  ( 3 , 2 8 5  t a r i f f  l i n e s )  w e r e  d u t y  f r e e  o n  a n  M F N  basis, corresponding to 36.6% of Guatemala's av erage imports from Chinese Taipei during 2003-
2005.
3 Upon entry into force of the Agreement, an a dditional 16.0% of tariff lines were liberalized, 
accounting for 12.4% of Guatemala's imports from Ch inese Taipei. Further liberalization is due to 
take place between 2006 and 2020. After ten ye ars of implementation, in 2015, Guatemala has 
committed to liberalize 67.7% of its tariff, corresponding to 57.6% of its imports from Chinese 
Taipei. At the end of the implementation period, in 2020, 1,771 tariff lines (26.4% of tariffs) are to remain dutiable, corresponding to 39.2% of Guatemala's imports from Chinese Taipei in 2003-2005. 
Table 3.1 Tariff elimination commitments under the Agreement and corresponding 
average trade A. Guatemala
 
Duty phase-out 
period Number of 
lines % of total lines 
in Guatemala's 
tariff schedule Value of 
Guatemala's 
imports from 
Chinese Taipei 
(2003-2005) in 
million US$ % of 
Guatemala's 
total imports 
from Chinese 
Taipei 
2003-2005 
MFN duty free (2006)  3,285 48.9 42.1 36.6 
2006 1,078 16.0 14.3 12.4 
2010 23 0.3 0.0 0.0 
2015 167 2.5 9.9 8.6 
2020 396 5.9 3.6 3.2 
Remain dutiable 1,771 26.4 45.1 39.2 
Total 6,720 100.00 115.1 100.0 
 
Note: Based on the HS 2007 nomenclature. 
 Source:  WTO estimates based on data provided by Guatemala. 
 
3.9.  Table 3.1B. shows Chinese Taipei's libera lization for imports from Guatemala during the 
period 2003-2005. In 2006, 31.3% of Chinese Taipei's tariffs (2,766 tariff lines) were duty free on an MFN basis, corresponding to 18.2% of Chinese Taipei's average imports from Guatemala during 
2003-2005.
4 Upon entry into force of the Agreement,  a n  a d d i t i o n a l  3 2 . 6 %  o f  t a r i f f  l i n e s ,  
accounting for 0.3% of Chinese Taipei's imports fr om Guatemala. Further liberalization is due to 
take place between 2006 and 2020. By 2015, 92.7% of the tariff lines, corresponding to 19.1% of Chinese Taipei's imports from Guatemala are to become duty free. At the end of the 
implementation period, in 2020, 227 tariff lines (2.6% of tariff lines) will remain dutiable, 
corresponding to 80.8% of Chinese Taipei's imports from Guatemala in 2003-2005. 
Table 3.1 Tariff elimination commitments under the Agreement and corresponding 
average trade 
B. Chinese Taipei
 
Duty phase-out 
period Number of 
lines % of total lines 
in Chinese 
Taipei's tariff 
schedule Value of Chinese 
Taipei imports from 
Guatemala 
(2003-2005) in 
million US$ % of Chinese 
Taipei's total 
imports from 
Guatemala 
2003-2005 
MFN duty free (2006)  2,766 31.3 1.7 18.2 
2006 2,883 32.6 0.0 0.3 
2007 1 0.0 0.0 0.0 
2008 2 0.0 0.0 0.0 
2009 4 0.0 0.0 0.0 
2010 1,326 15.0 0.0 0.0 
                                               
3 In 2006, Guatemala's applied tariff consisted of 6,720 tariff lines at the HS 8-digit level, all of which 
were subject to ad valorem  rates of duty. 
4 In 2008, Chinese Taipei's tariff consisted of 8,839 tariff lines at the HS 8-digit level. Of these 157 lines 
(1.78%) are subject to non- ad valorem  rates of duty, with 89 lines having specific duties and 68 mixed rates of 
duty. WT/REG297/1/Rev.1 
 
- 11 - 
 
  Duty phase-out 
period Number of 
lines % of total lines 
in Chinese 
Taipei's tariff 
schedule Value of Chinese 
Taipei imports from 
Guatemala 
(2003-2005) in 
million US$ % of Chinese 
Taipei's total 
imports from 
Guatemala 
2003-2005 
2015 1,218 13.8 0.1 0.6 
2020 412 4.7 0.0 0.1 
Remain dutiable 227 2.6 7.3 80.8 
Total 8,839 100.0 9.1 100.0 
 
Note: Based on the HS 2002 nomenclature. Calculations exclude tariff lines having an in-quota rate.  Source:  WTO estimates based on da ta provided by Chinese Taipei. 
 
3.1.3  Liberalization schedule 
3.1.3.1  Guatemala 3.10.  Table 3.2 shows Guatemala's tariff elimination by HS Section. The 1,771 tariffs lines 
remaining dutiable are spread throughout all HS Sections, except for Sections VIII, XIV, XVIII, 
XIX, and XXI. Chart 3.1 compares average rates of preferential tariffs on lines remaining dutiable and their corresponding MFN average rates, by HS  Chapter. Tariffs remain at the end of the 
implementation period in 42 chapters. In 9 of thes e, MFN and preferential tariffs are the same. In 
the remaining 43 chapters, small reductions have been made (between 0.01% and 3%) vis-à-vis  
the MFN rate, indicating that tariff peaks have no t been reduced. The highest preferential (and 
M F N )  t a r i f f s  o n  p r o d u c t s  r e m a i n i n g  d u t i a b l e  a r e  f o u n d  i n  H S  C h a p t e r s  1 0  ( c e r e a l s  w i t h  a  
preferential and MFN average of 23.7%) and 22 (bev erages, spirits and vinegars with preferential 
and MFN averages of 18.6% and 19%).  
Table 3.2 Guatemala: Tariff elimination under the Agreement, by HS section
 
HS 
section MFN  
average % Total No. of 
lines MFN duty-
free (2006) Number of duty-free lines 
under the Agreement No. of 
lines 
remaining 
dutiable Avg. Final 
Tariff 
(Dutiable) 
% 2006 2010  2015  2020  
I 9.0 299 42 141   2 114 12.7 
II 10.1 377 91 74  123 18 71 14.9 
III 7.4 54 18 8   13 15 14.1 
IV 12.6 274 30 60 1  92 91 14.1 
V 3.1 183 114 11 11 3 17 27 9.5 
VI 1.9 1,109 883 72  2 33 119 9.2 
VII 4.6 335 141 32   26 136 8.2 
VIII 8.2 108 17 75   16   
IX 8.0 138 26    11 101 9.3 
X 5.1 294 149 1   27 117 9.2 
XI 9.7 920 121 81  1  717 11.2 
XII 13.2 64 2 25   2 35 14.0 
XIII 6.4 176 79 2 7 5 33 50 11.2 
XIV 8.1 54 15 36   3   
XV 3.2 698 469 51 1  56 121 9.7 
XVI 1.8 974 824 140   2 8 15.0 
XVII 8.1 234 72 121 1 28 7 5 12.0 
XVIII 3.0 237 171 63   3   
XIX 20.0 21  21      
XX 11.2 162 21 61 2 5 29 44 12.7 
XXI 11.1 9  3   6   
Total 5.7 6,720 3,285 1,078 23 167 396 1,771 11.0 
 
Note: Based on the HS 2007 nomenclature.  Source: WTO Secretariat estimates based on data provided by Guatemala. WT/REG297/1/Rev.1 
 
- 12 - 
 
  Chart 3.1 Guatemala: Average of dutiable rates, by HS Chapter 
051015202530
01 02 03 04 06 07 08 09 10 11 12 15 16 17 18 19 20 21 22 23 24
051015202530
25
27
28
29
30
32
33
3435
36
38
39
40
44
4849
51
52
53
54
55
5657
58
59
60
61
62
6364
68
69
70
72
73
76
78
8384
85
87
94
95
96HS  01-24
HS 25-97Average rate of duty 
(%)  Average rate of duty 
(%)  HS Chapter
HS Chapter
MFN Preferential
 
 
Note: HS chapters not included: 5; 13-14; 26; 31; 37; 41-43; 45-47; 50; 65-67; 71; 74-75; 79-82; 86; 
88-93 and 97. 
 
Source: WTO Secretariat estimates based on the data provided by Guatemala. 
 
3.1.3.2  Chinese Taipei 
3.11.  Table 3.3 and Chart 3.2 show further details  of tariff liberalization by Chinese Taipei by 
HS Section and HS Chapter, respectively. By 2020,  227 tariff lines will remain dutiable for imports 
from Guatemala, in Sections I (Live Animals), II (Vegetable products), III (Animal or vegetable fats and oils), IV (Foodstuffs, beverage, tobacco), and XVII (Plastics and rubber). Chart 3.2 shows that the average preferential and the MFN rates ar e identical in 5 of the 15 chapters that remain 
dutiable. In the remaining ten chapters reductions have been made (between 0.2% and 42.5%) 
vis-à-vis  the MFN rate: the highest reductions occur in Chapter 87 (Vehicles and parts thereof) and 
in Chapter 3 (Fish and crustaceans). The highest remaining preferential tariffs are found in 
HS Chapters 15 (338%), 5 (138.8% compared to the MFN average of 153.8%) and 8 (112% 
compared to 129%). 
Table 3.3 Chinese Taipei: Tariff eliminat ion under the Agreement, by HS section
 
HS 
section MFN 
average
% Total 
No. of 
lines  MFN 
duty-
free 
(2006) Number of duty-free lines 
No. of 
lines 
remaining 
dutiable 
Avg. Final 
Tariff 
(Dutiable) 
% 
2006 2007 2008  2009 2010 2015  2020 
I 18.7 537 60 156   1 28 90 124 78 32.1 
II 12.1 510 145 126    16 84 93 46 45.1 
III 12.7 76 23 41    4 2 4 2 338.0 
IV 17.1 445 54 39  1  31 68 177 75 18.2 
V 1.3 229 148 63  1 3 14     
VI 2.6 1,449  506 802    125 11 5  - 
VII 4.8 354 10 258    86     
VIII 3.1 91 38 31    21 1    
IX 2.4 153 108 12    31 2    
X 0.0 195 195          WT/REG297/1/Rev.1 
 
- 13 - 
 
  HS 
section MFN 
average
% Total 
No. of 
lines  MFN 
duty-
free 
(2006) Number of duty-free lines 
No. of 
lines 
remaining 
dutiable 
Avg. Final 
Tariff 
(Dutiable) 
% 
2006 2007 2008  2009 2010 2015  2020 
XI 8.8 1,194  55 253    160 723 3  - 
XII 6.2 77 6 26    22 23    
XIII 6.6 234 10 56    109 56 3  - 
XIV 0.1 76 75 1         
XV 2.7 896 526 157    212 1    
XVI 3.4 1,433  463 616 1   257 94 2   
XVII 13.6 248 57 59    47 58 1 26 17.5 
XVIII 2.5 392 182 114    92 4    
XIX 1.6 22 15 2    5     
XX 3.2 218 80 71    66 1    
XXI 0.0 10 10          
Total 6.2 8,839  2,766 2,883 1 2 4 1,326 1,218  412 227 31.1 
 
- Specific duties.  Note: Based on the HS 2002 nomenclature; for tariff lines subject to TRQs only the out-of-quota duties are 
included in the tariff-related calculations. 
 Source: WTO Secretariat estimates based on data provided by Chinese Taipei. 
 
Chart 3.2 Chinese Taipei: Average of dutiable rates, by HS Chapter 
050100150200250300350
2 3 4 5 7 8 9 10 11 *12 15 16 17 *18 19 *20 *21 24 87HS Chapter
MFN PreferentialAverage rate of duty (%)  
 
 
* HS chapters 12, 18, 20 and 21 only contain specific duties. 
 
Source: WTO Secretariat estimates based on data provided by Chinese Taipei. 
   WT/REG297/1/Rev.1 
 
- 14 - 
 
  3.1.4  Tariff rate quotas 
3.12.  In addition to tariff elimination Chinese Taipei5 commits to a tariff rate quota for sugar 
originating from Guatemala. For this purpose, Chinese Taipei will require the certificate of origin issued by Guatemala. The quota level is 60,000 metric tonnes of which refined sugar will not 
exceed 35% of the total but may be replaced by raw sugar. From the second year onwards 
(2007), the annual quota will increase or decrease by the amount of average growth of total sugar 
imports of Chinese Taipei over the previous four consecutive years. The in-quota duty is zero 
(compared to a current MFN applied tariff of 6.25% and 17.5% for raw and refined sugar 
respectively). Annex 3.04 and its Appendix contai n tariff-rate-quota administration disciplines.  
3.2  Rules of origin 3.13.  Rules of origin are covered by Chapter 4 of the Agreement and customs procedures by 
Chapter 5. Specific rules of origin are detailed by HS Chapters in Annex 4.03 of the Agreement.  
3.14.  Chapter 4 contains disciplines on the determination of origin to ascertain which products will 
benefit from preferential treatment under the Ag reement. The Harmonized System (HS) is the 
basis of the tariff classification. The principl es and norms of the WTO Agreement on Customs 
Valuation are used to determine the value of a good or material. However, where there are 
inconsistencies, the provisions contained in Chapter 4 will prevail over those of the Customs 
Valuation Agreement. 
3.15.  Under Article 4.03 goods shall be considered as originating in the territory of a Party, when: 
a. wholly obtained or produced entirely in the territory of that Party; 
b. produced entirely in the territory of one or both Parties exclusively from materials that 
qualify as originating; 
c. produced in the territory of one or both Parties from non-originating materials that 
satisfy a change of tariff classification (CTC), regional value content (RVC) or other 
requirement specified in Annex 4.03 and comply with all other applicable requirements 
of this chapter; 
d. produced in the territory of one or both Parties even though one or more of the 
non-originating materials used in the production of the good have not undergone a CTC 
because: (i) they have been imported in unassembled or disassembled form and classified as assembled goods; (ii) the goods and their parts are classified under the same heading and that heading is not further subdivided into subheadings; or (iii) the 
subheading for the good is the same as for its parts. For this category of products the 
parties have defined a minimum RVC of not less than 35%, unless as specified in Annex 4.03.
6 
3.16.  The production of a good from non-origin ating materials that fulfil a change of tariff 
classification and other requirements specified in Annex 4.03 shall be done entirely in one or both Parties. 
3.17.  Annex 4.03 contains specific rules to determine origin. These rules are applied when a good 
is produced in Guatemala and/or in Chinese Taipei from non-originating materials. For eligibility a CTC rule is applied in line Annex 4.03. These rules are organized by HS Chapters and applied at the HS six (subheading) and four (heading) digit levels. For most goods for origin to be conferred 
a CTC at either the heading or subheading levels is required. Nonetheless, changes to certain 
headings or subheading do not confer origin in a number of cases. For certain groups of products, "notes" clarify which manufacturing operations or processes are deemed to confer origin and/or 
allow customs to treat the concerned merchandise as originating.
7 For a number of headings or 
                                               
5 The TRQ applies to the following tariff lines: i) raw sugar (1701.11.00; 1701.91.10 and 1701.11.00 
and ii) refined sugar (1701.91.20; 1701.99.10; 1701.99.20; 1701.99.90) and (1701.91.00; 1701.99.00). 
6 This subparagraph does not apply to Chapters 61 through 63 (Articles of apparel and clothing). 
7 For instance, the agricultural product (horticulture,  fruitculture, forest, etc. ) grown in the territory a 
Party shall be deemed as originating in the territory of  that Party even if they are grown from seed, bulbs, WT/REG297/1/Rev.1 
 
- 15 - 
 
  subheadings an alternative specific rule linked  to a RVC varying from a minimum of 35%, 40%, 
45% to 50%, is considered.8 In some other cases, the RVC varying from 35% to 50% is added to 
the CTC.9 Finally, complementary product-specific rules are also applicable to selected products.10 
3.18.  Article 4.04 contains a list of minimal processes or operations that do not confer origin to a 
good. Articles 4.05 to 4.07 and 4.09 to 4.14 define how certain materials (indirect materials, 
incorporated materials - accumulation-, fungible  goods and materials, sets or assortments, 
accessories, spare parts and tools, packaging materials and containers for retail sale and for 
shipments, transhipped materials) are to be treate d or valued when determining the origin of the 
good. 
3.19.  Article 4.08 establishes that a good shall be considered originating if the value of all 
non-originating materials used in the production of this good that does not undergo a change in 
tariff classification does not exceed 10% of the value of the good ( de minimis  rule). In the case of 
HS chapters 50 through 63,11 the percentage will refer to the weig ht of fibers or yarns. In the case 
of HS chapters 1 through 27,12 the clause will apply if non-originating material is classified in a 
different subheading from that of the good. 
3.20.  Chapter 5 of the Agreement refers to rules applicable to customs procedures related to 
origin and defines specific disciplines in relation with obligations regarding imports (5.03) and 
exports (5.04), and records (5.05). Verification of whether imports comply with origin 
requirements are to be carried out by the competen t authority as provided in Article (5.06). If the 
importer, exporter or producer fails to comply preferential treatment may be denied through a written determination to be issued within 120 days  of completion of the verification of origin. 
Advance rulings prior to import of a good are available under Article 5.07 provided they are 
requested in writing by the importer or by the prod ucer or exporter in the other Party. The Parties 
are required to establish directives for the issuance of advance rulings including information to be 
provided by the importer, producer or exporter; the power of the competent authority to request 
additional information while assessing the request;  and a requirement for the advance ruling to be 
issued within 120 days. The Chapter also contains provisions on confidentiality (5.08), penalties 
(5.09), review and appeal (5.10), uniform re gulations (5.11) and co-operation (5.12). 
3.3  Export duties and charges,  and quantitative restrictions 
3.21.  Neither Party may adopt or maintain any prohibition or restriction on exports to the other 
Party, except if: (i) the Agreement provides othe rwise (Annex 3.09); or (ii) if the Parties take 
measures under Article XI of the GATT 1994 in cluding its interpretative notes (which are 
incorporated into the Agreement) (Article 3. 09.2). The Parties reaffirm their rights under 
GATT 1994, that prohibit, under any circumstance s, any form of restriction or export price 
requirement. Guatemala has designated two produc ts for which it can adopt or maintain export 
measures in accordance with its domestic regulations: timber pursuant to Ley de Bosques , 
Legislative Decree Nº 101-96 of October 31, 1996 and its modifications and; coffee pursuant to 
Ley del Café , Legislative Decree Nº 19-69, and its modifications (Table 3.4). Chinese Taipei has 
listed 36 tariff lines (Table 3.5). 
                                                                                                                                               
rootstock, cutting, slips or other live parts of plants im ported form a Party or non-Pa rty.  In the case of the 
chemical or allied industries, production of standard  materials and separation or isolation of isomers is 
considered as origin conferring. 
8 For example, some tanning or dyeing extracts; tann ins and their derivatives; dies, pigments and other 
colouring mastics; inks; paint and varnishes; putty and other(HS 32);  some vehicles other than railway or tramway rolling-stock, and parts and accessories thereof (HS 87). 
9 For example, some nuclear reactors, boilers, machin ery and mechanical appliances (HS 84);  electrical 
machinery and equipment ad parts thereof; some soun d recorders and reproducers, television image and 
sound recorders (HS85); some optical, photographic, ci nematographic measuring, checking, precision, medical 
or surgical instruments and apparatus; parts and accessories thereof (HS 90). 
10 Some plastics and articles thereof (HS 39.20 - 3921 ); raw hides and skins (other than furskins) and 
leather (HS 41.04 - 41.07); articles of apparel and clothing accessories knitted or crocheted (HS 61.01 - 61.17); articles of apparel and clothing accessories not knitted or crocheted (HS 62.01 - 62.17); other made up textile articles; sets, worn clothing and worn textile articles; rags (HS 63.01 - 63.10). 
11 Textile and textile articles. 
12 Live animals; animal products. Vegetable products. Animal or ve getable fats and oils and their 
cleavage products; prepared edible animal fats; animal or vegetable waxes.  Prepared foodstuffs; beverages, 
spirits and vinegar; tobacco and manufactured tobacco substitutes. WT/REG297/1/Rev.1 
 
- 16 - 
 
  Table 3.4 Guatemala 
CCC Code  Description 
4407 Sawn or rough dressed lumber fore and aft, cut or extended, including dressed, 
sandpapered, or joint by the ends, with a thickness over 6mm 
0901 coffee, including roasted or decaf, parchm ent skin or coffee grit; coffee substitute 
containing coffee in any proportion 
 
Source: Annex 3.09 to the Agreement. 
 
Table 3.5 Chinese Taipei  
CCC Code  Description 
0208.90.20ex  Meat of dogs, fresh, chilled or frozen 
0301.91.00 Oncorhy aguabonita, Oncorhynchus gilae, Oncorhynchus apache and 
Oncorhynchus chrysogaster) 
0302.11.00 Trout (Salmo trutta, Oncorhynchus mykiss, Oncorhynchus clarki, Oncorhynchus 
aguabonita, Oncorhynchus gilae, Oncorhynchus apache and Oncorhynchus 
chrysogaster), fresh or chilled 
0302.12.10 Pacific salmon (Oncorhynchus nerka, Oncorhynchus gorbuscha, Oncorhynchus 
keta, Oncorhynchus tschawytscha, Oncorhynchus kisutch, Oncorhynchus masou 
and Oncorhynchus rhodurus), fresh or chilled 
0302.12.20 Atlantic salmon (Salmon salar) and Danube salmon (Hucho hucho), fresh or 
chilled 
0302.19.00  Other salmonidae, fresh or chilled 
0303.11.00 Sockeye salmon (red salmon) (Onc orhynchus nerka), frozen, excluding livers 
and roes 
0303.19.00 Other pacific salmon (Oncorhynchus gorbuscha, Oncorhynchus keta, 
Oncorhynchus tschawytscha , Oncorhynchus kisutch, Oncorhynchus masou and 
Oncorhynchus rhodurus), frozen, excluding livers and roes 
0303.21.00 Trout (Salmo trutta, Oncorhynchus mykiss, Oncorhynchus clarki, Oncorhynchus 
aguabonita, Oncorhynchus gilae, Oncorhynchus apache and Oncorhynchus chrysogaster), frozen 
0303.22.00 Atlantic salmon (Salmo salar) and Danube salmon (Hucho hucho), frozen 
0303.29.00 Other salmonidae, frozen 
0304.10.50 Trout fillets and its meat (whether or not minced), fresh or chilled 
0304.10.90ex Salmon fillets and its meat (whether or not minced), fresh or chilled 
0304.20.20ex Salmon fillets, frozen 
0304.20.30 Trouts, fillets, frozen 
0305.30.90ex Salmon and trouts fillets, dried, salted or in brine, but not smoked 
0305.41.00 Pacific salmon (Oncorhynchus nerka, Oncorhynchus gorbuscha, Oncorhynchus 
keta, Oncorhynchus tschawytscha, Oncorhynchus kisutch, Oncorhynchus masou and Oncorhynchus rhodurus), Atlantic salmon (Salmo salar) and Danube salmon 
(Hucho hucho), smoked 
0305.49.30 Trout, smoked 
0305.69.10 Fish, salmon, salted or in brine 
0602.90.10ex Mushroom spawn, containing narcotics (the composition of which is as set forth 
in article 2.3 of Executive Yuan "Statute for Narcotics Hazard Control") 
1211.90.60 Putchuck, new (Radix Saussureae) 
1211.90.91ex Guang Fang Jee (Radix Aristolochiae Fangchi), (Caulis Aristolochiae 
Manshuriensis), Mar Doe Ling (Fructus Guan Mu Tong Aristolochiae), Ten Shen 
Tirng (Caulis Aristolochiae) 
1404.90.99ex is as set forth in article 2.3 of Executive Yuan "Statute for Narcotics Hazard 
Control".) 
1604.11.00 Salmon, whole or in piece, but not minced, prepared or preserved, frozen; 
Salmon, whole or in pieces, but not minced, prepared or preserved, canned; 
Other salmon, whole or in pieces, but not minced, prepared or preserved 
1604.19.90ex Trouts, whole or in pieces, but not minced, prepared or preserved, frozen; 
Trouts, whole or in pieces, but not minced, prepared or preserved, 
canned；Other trouts, whole or in pieces, but not minced, prepared or preserved  
2903.51.00 1, 2, 3, 4, 5, 6-Hexachlorocyclohexane 
2921.44.00ex 4-amino diphenyl ；4-amino diphenyl hcl WT/REG297/1/Rev.1 
 
- 17 - 
 
  CCC Code  Description 
2921.45.00ex 2-naphthylamine (beta-naphthylamine); 2-naphthylamine (beta-naphthylamine) 
acetate； 2-naphthylamine (beta-naphthylamine) hcl 
8710.00.00 Tanks and other armoured fighting vehicles, motorised, whether or not fitted 
with weapons ；Parts of tanks and other armoured fighting vehicles, motorized 
8906.10.00  Warships 
9301.11.00  Self-propelled, artillery weapons 
9301.19.00  Other artillery weapons 
9301.20.00 Rocket launchers; flame-throwers; grenade launchers; torpedo tubes and similar 
projectors 
9301.90.00 Other military weapons 
9705.00.00ex Collections and collectors' pieces of weapon; Other collections and collectors 
pieces of zoological, botanical, mineralogical, anatomical, historical, archaeological, palaeontological, ethnographic or numismatic interest 
9706.00.00ex Other antiques of an age exceeding one hundred years 
 
Source: Annex 3.09 to the Agreement. 
 
3.22.  At the time of entry into force of the Agreement, neither Party shall adopt or maintain any 
tax, duty or charge on the export of a good to the territory of the other Party (Article 3.12). Nor 
shall they require consular fees or charges or consular formalities on originating goods 
(Article 3.10). 
3.4  Regulatory provisions on trade in goods 3.4.1  Standards 
3.4.1.1  Sanitary and phytosanitary measures 
3.23.  Chapter 8 of the Agreement covers Sanitary and Phytosanitary Measures and is based in the 
WTO SPS Agreement (Article 8.02). The Parties' rights are, inter alia , that they may establish, 
adopt, maintain or implement any SPS measures in their territories, only to the extent necessary 
to protect human life and health (food safety) and animal life and health or to preserve plant 
health, even if their own measures are stricter than international standards, guidelines or recommendations, provided that there is a scientific basis to justify them (Article 8.03(a). 
3.24.  Article 8.04 requires the SPS measures to be based on scientific principles, international 
standards, guidelines
13 and recommendations; be maintained subject to risk assessment based 
reasons; and not constitute a disguised restriction to trade nor create an unnecessary obstacle to 
bilateral trade. 
3.25.  Article 8.05 (d) provides for the Parties to establish harmonized systems of control, 
inspection and approval procedures for SPS measures for animals, plants, their products and by-products as well as for food safety. If a Party ob jectively demonstrates to the other Party that its 
measures, based on scientific information and risk assessment, achieve the other Party's 
appropriate level of sanitary and phytosanitary protection, equivalence shall be recognized (Article 8.06). 
3.26.  Assessment of risk and dete rmination of the appropriate level of SPS protection is to be 
based on guidelines established by relevant international organizations.
14 The factors to be used 
when assessing the risks include the available scien tific and technical information, the existence of 
pests and diseases and the epidemiology, and rele vant ecological and environmental conditions 
(Article 8.07(c)). The Parties may adopt provisional sanitary or phytosanitary measures on the basis of available information, if the relevant evid ence is insufficient for risk assessment. In such 
cases, they will make an effort to obtain the information needed for a more objective risk 
assessment, following a defined procedure and deadlines (Article 8.07(e)). If the risk assessment 
results in an import not being permitted, the scienti fic basis of the decision should be notified. If 
                                               
13 The parties shall follow the guidelines of the WTO SPS Agreement, the International Plant Protection 
convention (IPPC) for plant health, O ffice International des Epizooties (OIE ) for animal health and the Codex on 
food safety and tolerance li mits (Article 8.05.(c)). 
14 The OIE, the IPPC and Codex. WT/REG297/1/Rev.1 
 
- 18 - 
 
  one of the Parties believes that its exports are being restricted through SPS measures that are not 
based on the relevant international standards, guidelines or recommendations, or they do not exist, it may request an explanation which must be provided within 60 days (Article 8.07.(g)). 
3.27.  The Parties shall recognize pest or dise ase-free areas and areas of low pest or disease 
prevalence. The Party requested to provide recognition may carry out inspections, testing and 
other verification procedures. If the requested Party does not accept the request, the Parties may consult each other to reach agreement on specific requirements for recognition (Article 8.08). 
3.28.  With regard to control, inspection and approval procedures, the Agreement directs the 
Parties to observe Annex C of the WTO SPS Agreement and sets out maximum inspection periods (100 days upon completion of review of necessa ry documents, information and risk assessment) 
(Article 8.09). 
3.29.  For transparency, the adoption and modifica tion of SPS measures of general application as 
well as changes occurring in sanitary or phytosanitary conditions and disease outbreaks must be notified within defined time limits (Article 8.10.1).  
3.30.  Technical consultations are contemplated rega rding the application and interpretation of this 
Chapter (Article 8.11). 
3.31.  The Agreement establishes a Committee on SPS measures, the composition of which is 
contained in Annex 8.12. The Committee shall hear  matters related to the functioning of the 
Chapter and will have responsibility for ensuring training and specialization of technical staff, 
promoting active participation by the parties in international bodies and creating and updating a database of specialists in food safety, plant, and animal health (Article 8.12). 
3.4.1.2  Technical barriers to trade 
3.32.  Chapter 9 covers measures on standards, metrology and authorization procedures. The 
provisions of this Article apply in addition to  the WTO Agreement on Technical Barriers to Trade 
(TBT) (Article 9.02). The Chapter applies to stan dardization measures, authorization procedures, 
and metrology, as well as related measures that may directly or indirectly affect trade in goods 
between the Parties (Article 9.03), and to te chnical regulations and conformity assessment 
procedures that allow each Party to achieve its legitimate objectives (Article 9.04.1(b)). Chapter 9 
does not apply to SPS measures (Article 9.03.2). 
3.33.  Risk assessment by the Parties shall take into account factors indicated in Article 9.05: risk 
assessment by international standardization and metrology bodies; available scientific technical 
information; related processing technology or inte nded end use of goods. The Parties shall accept 
the equivalence of each other technical regulations when such regulations adequately fulfil the legitimate objectives of the importing Party (Article 9.06).  
3.34.  The Parties shall develop, adopt and apply conformity assessment/authorization procedures 
to accord non-discriminatory access to like goods from the other Party (Articles 9.07 and 9.08). 
Disciplines to be followed by the Parties in conformity assessment/authorization procedures are 
contained in Article 9.07 and cover matters such as expeditious completion, publication, prompt 
examination of applications, avoidance of unnecessary  requests for information, confidentiality and 
equitable fees. 
3.35.  With regard to metrology, the documented traceability of a Party's standards and the 
calibration of its measuring instruments, shall be ensured in accordance with the recommendations 
of the Bureau international des poids et measures  (BIPM) and the International Organization of 
Legal Metrology (OIML) (Article 9.09). 
3.36.  If relevant international standards are not available or the technical content of a proposed 
technical regulation or of conformity assessment procedures does not conform with that of the relevant international standards, and if the technical regulations may have a significant impact on 
trade, the proposed measures must be notified in writing to the other Party at least 60 days before 
its application (Article 9.10). Each Party will designate information centres (Annex 9.11(2)) to respond to all reasonable questions and requests from the other Party and interested persons WT/REG297/1/Rev.1 
 
- 19 - 
 
  (Article 9.11). Technical consultations are contemplated regarding the application and 
interpretation of this Chapter (Article 9.12). 
3.37.  The Agreement establishes a Committee on standards, metrology and authorization 
procedures, as set out in Annex 9.13. The Committee shall hear matters relating to the functioning 
of the Chapter and will have responsibility, inter alia , for analysing and proposing ways to resolve 
measures on standards, authorization procedures and metrology that a Party considers a technical barrier to trade; and facilitating the process by wh ich the Parties shall establish mutual recognition 
agreements. 
3.4.2  Safeguard mechanisms 3.38.  Chapter 6 of the Agreement covers trade remedies in the form of safeguard measures 
(Articles 6.01 through 6.05). 
3.4.2.1  Global safeguards 
3.39.  The Parties retain their rights and obligations under Article XIX of GATT 1994, and the 
Agreement on Safeguards, except those relating to compensation or retaliation and exclusion of a 
safeguard measure which are inconsistent with the provisions of this Article (6.03.01).  
3.40.  When taking global safeguard measures the Parties shall exclude goods imported from the 
other Party unless those imports account for a substantial
15 share of total imports and contribute 
importantly to the serious injury, or threat thereof caused by total imports.16 Restrictions on a 
good may not be imposed without previous written notification and appropriate opportunity for consultations. The safeguard measures shall consist exclusively of tariff measures and the Party applying the measure shall provide equivalent mutu ally agreed trade liberalization compensation 
(compared to "may" in Article 8.1 of the WTO Agre ement on Safeguards). If the Parties are unable 
to agree, trade measures which have trade effe cts substantially equivalent to those of the 
safeguard measure may be imposed. 
3.4.2.2  Bilateral safeguards 
3.41.  The application of bilateral safeguards is governed by the provisions in Chapter 6 and 
Article XIX of GATT 1994, the Agreement on Safeguards and the applicable legislation for each 
Party as suppletory (Article 6.02.1). The provisions on bilateral safeguards are applicable during 
the transition period.
17 
3.42.  The Parties may apply a safeguard measure if, as a result of the reduction or elimination of 
a customs tariff an originating good of a Party is being imported by the other Party, in such 
increased quantities, relative to domestic production and under such conditions as to constitute a 
substantial cause of serious injury, or a threat thereof, to the domestic industry of the like or directly competitive good. In this case, the Party will be able to suspend the further reduction of 
any customs tariff or increase the tariff on the good to a level not to exceed the lesser of either the 
MFN tariff applied at the time the measure is taken or on the day immediately preceding the day of entry into force of the Agreement (Article 6.02.2). 
3.43.  The Parties shall notify in writing the initiation of any procedure which could result in the 
application of a safeguard measure. This measure shall be applied no later than a year from the 
                                               
15 Imports normally shall not be considered to be substantial if that Party is not among the top three 
suppliers of the good subject to the proceeding, measured  in terms of its import share during the most recent 
three year period (Article 6.03.2(a)). 
16 Normally, imports from a Party shall not be considered  to contribute importantly to serious injury, or 
threat thereof, if its growth rate during the period  in which the injurious surge in imports occurred is 
appreciably lower than the growth rate of total imports from all sources during the same period (Article 6.03.2(b). 
17 Transition period: means a period of ten years as of entry into force, except when it refers to a good 
where tariffs should be eliminated in a period of more than ten years, acco rding to Annex 3.04 (Tariff 
Elimination Schedule), in which case the transition period means the one set out in that Annex (Article 6.01). WT/REG297/1/Rev.1 
 
- 20 - 
 
  date of initiation of the procedure except as established in Article 6.04.15.18 The measure may be 
maintained for no more than four years19 including the period of a provisional safeguard, 
extendable for four additional consecutive years provided that it is notified 90 days prior to 
expiration, that a readjustment plan to eliminate in jury or threat thereof is presented and that the 
notification of extension and compensation is pr esented prior to the expiration of the applied 
measure (Article 6.04.27-6.04.29). A measure may be applied as many times as necessary if a period equivalent to at least half the duration of the first safeguard measure has elapsed. 
3.44.  Although provisional measures may be taken in critical circumstances where any delay 
would cause damage difficult to repair their duration shall not exceed 200 days (Article 6.02.5).  
Provisional measures shall take the form of custom tariff increases to be promptly refunded if the subsequent investigation results in a negative determination.  
3.45.  Article 6.04 details investigation procedures for safeguard measures, inter alia , the contents 
of a petition, consultations, notice requirements, confidential information, deliberation and determination and extension of measures and compensation. 
3.4.2.3  Special safeguards 
3.46.  The Parties may apply a special safeguard measure (SSM), provided it is notified 15 days 
before its entry into force, at any given time in a calendar year, for the products
20 included in 
Annex 3.13 (Products subject to Special Safeguard Measures), whenever imports of these products 
from the other Party have exceeded the trigger levels established in that Annex. The trigger levels shall be a percentage of the yearly average growth  of imports during the last 3 calendar years. 
The SSM shall consist of a tariff increase to the lower of the MFN customs tariff at the time of 
import or on July 31 2005. The SSM application is not subject to any kind of compensation. Its 
duration will be up to 18 months renewable upon notification of the intention to extend the measure 30 days before the due date, for an equal period of time. Notwithstanding the application 
of the SSM the Parties shall be able to hold consultations at any time in order to exchange 
information and to reach mutually beneficial agreements. 
3.47.  When new products are incorporated in the Tariff Reduction Schedule the Parties can include 
them in Annex 3.13. The SSM shall not apply to products listed under the exclusion category or 
subject to a tariff quota system. 
3.4.3  Anti-dumping and countervailing measures 3.48.  The Parties confirm their rights and obli gations under Article VI and XVI of GATT 1994, the 
Agreement on Implementation of Article VI of  GATT 1994 and the Agreement on Subsidies and 
Countervailing Measures (Article 7.01). The antidumping and countervailing duties shall be applied in accordance with these agreements and the legislation of each Party as supplementary. 
Consultations are contemplated to clarify the facts and to arrive at mutually agreed solutions. 
Antidumping or countervailing shall not be initiated between the Parties unless the application has been made by or on behalf of the domestic industry whose collective output constitutes more than 
50% of the total production of the like product pr oduced by the domestic industry (Article 7.05). 
The maximum period for completion of an investigation is one year, with a possibility of extension to no more than 18 months (Article 7.06). The ma ximum duration of a definitive antidumping or 
countervailing duty is five years (Article 7.07).  
                                               
18 Time limit of investigation:  An investigation shall normally be concluded within six months, and in 
exceptional circumstances qualified by the investigating authority, shall conclude in twelve months from the initiation of the investigation. 
19 Guatemala shall have the right to extend the period  of application of a safeguard measure for up to 
an additional two ye ars (Article 6.02.3). 
20 For Guatemala, some products in chapters:  Food stuffs; Chemicals and allied  industries; Toys, games 
and sports equipment, parts and accessorie s; and Miscellaneous manufactured articles. 
For Chinese Taipei, natural honey and some products  in chapters: Vegetable products; Foodstuffs, and 
Textiles. WT/REG297/1/Rev.1 
 
- 21 - 
 
  3.4.4  Subsidies  
3.4.4.1  Domestic support 3.49.  As mentioned before the Parties recognize that domestic support may be important for their 
agricultural sectors but may also distort trade. They will therefore apply domestic support in 
accordance with the WTO Agreement on Agricultur e (Article 3.08). The Parties shall ensure that 
the support would have a minimal or non-distorting effect on trade and production. To ensure transparency, the Committee of Trade in Goods established pursuant to Article 3.15 will carry out 
on going and permanent analyses of all domestic support measures. The Parties shall exchange 
information and may engage in consultations over this issue at any time. 
3.4.4.2  Export subsidies 3.50.  There are no provisions on export subsidies in the Agreement.  
3.4.5  Customs-related procedures 
3.51.  Chapter 5 contains provisions inter alia , on origin certification and procedures to verify 
origin (Articles 5.02 and 5.06 respectively), obligations regarding imports and exports 
(Articles 5.03 and 5.04), and review and appeal of determinations of origin (Article 5.10). 
3.4.6  Other regulations 3.52.  If the Parties have state trading enterprise s, they shall guarantee that their activities are 
carried out based solely on considerations of a commercial nature. Likewise the parties shall 
accord each other fair and equitable treatment to avoid that these activities becoming barriers to trade, in accordance with Article XVII of GATT and its interpretative notes (Article 3.09.6). 
4  PROVISIONS ON TRADE IN SERVICES 
4.1  Scope and definitions 
4.1.  Part Four of the Agreement covers investment, services and related matters. Chapter 10 
contains disciplines on investment; Chapter 11 relates to cross-border trade in services (CBTS); 
Chapter 12 covers temporary entry of business persons; Chapter 13 deals with disciplines specific 
to air transportation; and Chapter 14 refers to maritime transportation. 
4.2.  Chapter 11 on CBTS covers GATS modes of supply 1 (cross-border), 2 (consumption abroad), 
and 4 (natural persons). Commercial presence is not identified under this Chapter. The Parties 
clarify that the Chapter does not include the provision of a service in a Party by an investment, as defined in Article 10.01 (Investment). 
4.3.  The Chapter covers measures adopted or maintained by a Party relating to cross-border 
trade in services by service providers of the ot her Party. These include measures concerning: (i) 
the production, distribution, marketing, sale and deli very of a service; (ii) the purchase or use, or 
payment for, a cross-border service; (iii) the acce ss to and use of distribution and transportation 
system in connection with the provision of a cross-border service; (iv) the presence in its territory 
of a cross-border service provider of the other Part y; and (v) the provision of a bond or other form 
of financial security as a condition for the provision of a cross-border service (Article 11.02.1). 
4.4.  Chapter 11 does not apply to: (i) subsidies or grants provided by a Party or state enterprise, 
including government-supported loans, guarantees and insurance; (ii) air services, including domestic and international air transportation services, whether scheduled or non-scheduled, and related services in support of air services other, than aircraft repair and maintenance services, 
sales and marketing of air transport services  and computer reservation system services; 
(iii) government services or functions such as law enforcement, correctional services, income security or unemployment insurance or social secu rity services, social welfare, public education, 
public training, health, and child care; (iv) cro ss-border financial services; and (v) government 
procurement done by a Party or state enterprise (Article 11.02.3); and measures affecting a WT/REG297/1/Rev.1 
 
- 22 - 
 
  citizen of a Party seeking access to the other Party's employment market, or employed on a 
permanent basis, or to confer any right on that person with respect to that access or employment.  
4.5.  Chapter 10 on investment covers measures adopted or maintained by a Party relating to: 
(i) investors of the other Party21 with respect to all aspects of its investment; (ii) investments22 of 
investors of the other Party in the Party; and (iii) all investments of investors of a Party in the 
other Party with regard to performance requirements (Article 10.02.1). 
4.6.  It does not apply to: (i) measures adopted or  maintained by a Party in relation to financial 
services; (ii) measures adopted by a Party to limit the participation of investment of investors of 
the other Party for reasons of public order or national security; (iii) economic activities reserved by each Party pursuant to its law in force on the date of the signing of the Agreement, as listed in Annex III
23 on economic activities reserved to each Party; (iv) government services or functions 
such as law enforcement, correctional services, income security or unemployment insurance, social 
security services, social welfare, public education, public training, health , and child care24; (v) 
disputes or claims arising before the entry into force of the Agreement or relating to facts that 
occurred before it entered into force, even if their effects persist thereafter; and (vi) government 
procurement (Article 10.02.2). 
4.2  Denial of benefits 
4.7.  Under Chapter 10.14, a Party may deny the benefits to an investor of the other Party that is 
an enterprise of such other Party and to the investment of this investor, if the investors of a non-Party own or control, (directly or indirectly) the enterprise and the enterprise has no substantial business activities in the Party under whose law it is constituted or organized. 
4.8.  A Party may deny the benefits of Chapter 11 to a service provider of the other Party where 
the Party decides, according to its effective laws that the service is being provided by an enterprise that is owned or controlled by persons of a non-Party having no substantial business activities in 
the other Party (Article 11.09).  
4.9.  The denial of benefits under Chapters 10 and 11 may only occur if prior notification and 
consultations have taken place.  
4.3  General provisions on trade in services 
4.10.  Under Article 11.13 the Parties established the Committee on Investment and Cross-Border 
Trade in Services whose role is to supervise the implementation and administration of both 
chapters, to discuss and analyse matters discussed in other international fora and exchange 
information.  
4.3.1  Market access 4.11.  None of the Chapters under Part Four of the Agreement covering investment, services and 
related matters has a market access provision as  such, along the lines of GATS Article XVI. 
Meanwhile Article 11.08 directs each Party to set out any quantitative restriction that it maintains in its Annex IV list under the Agreement. In this regard Guatemala has listed Land cargo transport 
services. Chinese Taipei has not identified an y sectors which are subject to quantitative 
restrictions. This commitment applies only to Guatemala, not on an MFN basis. Market access limitations are listed by the Parties through existing or future non-conforming measures in their schedules annexed to the Agreement. 
                                               
21 Investor of a Party is de fined in Article 10.01 (Definitions) of the Agreement. 
22 According to Article 10.01 (Definitions) of the Agre ement, "investment" means any kind of goods or 
r i g h t s  o f  a n y  n a t u r e  a c q u i r e d  o r  u s e d  w i t h  t h e  p u r p ose of obtaining an economic  profit or other business 
objective, acquired with resources transferred or reinvested by an investor. 
23 Guatemala has listed Post al Services.  Chinese Taipei has listed:  postal and courier services; water 
supply; and airport oper ation and management. 
24 However, if a duly authorized investor provides such services or carries out such functions, the 
investment of this investor shall be protected by the provisions of the Chapter on investment (Article 10.02.4). WT/REG297/1/Rev.1 
 
- 23 - 
 
  4.12.  The Parties, through future negotiations to be convened by the Commission, shall deepen 
the liberalization reached in different services sectors, with the aim of eliminating the remaining restrictions listed under Article 11.07(1) and (2). 
4.3.2  National and MFN treatment  
4.13.  Each Party shall accord to cross-border services and service providers of the other Party 
treatment no less favourable than that it accords,  in like circumstances, to its own services and 
service providers (national treatment) and to serv ices and service providers of any non-Party (MFN 
treatment) (Articles 11.03 and 11.04 respectively). National treatment provisions on services add 
that specific commitments assumed under this Article shall not be construed to require any Party to compensate for any inherent competitive disadvantages which result from the foreign character of the relevant services or service supplier. 
4.14.  These provisions do not apply to any ex isting non-conforming measure maintained by a 
Party, as set out in its Schedule to Annex I or III, its continuation or its renewal or its amendment to the extent that it does not decrease the conf ormity of the measure. Neither do they apply to 
any measure that a Party adopts or maintains with respect to sectors, sub-sectors or activities as 
set out in its Schedule to Annex II. 
4.15.  Concerning investment, a Party shall accord to investors of the other Party and to their 
investments treatment no less favourable than that it accords, in like circumstances, to its own 
investors and their investments (national treatment) or to investors of a non-Party and their investments (MFN treatment) with respect to establishment, acquisition, expansion, management, conduct, operation, and sale or other disposal of investments (Article 10.3 and 10.04 respectively). 
These provisions do not apply to non-conforming measures existing in Annex I or III or to future 
measures in Annex II. Neither do they apply to treatment accorded with respect to sectors included in Annex V. 
4.16.  In maritime transport, the Parties shall gr ant in their ports, to each other’s vessels, the 
same treatment as that rendered to their own vessels. This provision does not apply to shipping activities legally reserved by the Parties for their own vessels, such as towing and pilotage. 
National treatment will also be granted to the es tablishment and operations of shipping companies, 
shipping agents and freight forwarders (Article 5). 
4.17.  In the Air Services Agreement, the laws and regulations of one Party on entry, stay and 
departure of passengers, crew and cargo includin g mail, regarding immigration, customs, currency 
and health and quarantine shall apply to the passengers, crew and cargo including mail carried by 
the designated airline of the other Party while they are in the said Party, without giving 
preferences to their own or other airline over a de signated airline engaged in similar international 
air transport. The Parties accord each others' airlines the right to sell and market international air 
services and related products (directly or through agents and other intermediaries of the airline’s 
choice), including the right to establish offices, both on-line and off-line (Article 14.2). User 
charges imposed by the competent authorities shall be assessed on the airline of the other Party in 
terms not less favorable than the most favorable terms available to any other airline at the time the charges are assessed.  
4.3.3  Commercial presence 
4.18.  According to Article 11.05 of the Agreement,  no Party may require a service provider of the 
other Party to establish or maintain a representative office or any form of enterprise, or to be resident, as a condition to the cross-border provision of a service. However, the non-conforming 
measures listed in the Parties' Schedules in Annexes I (reservations and exceptions) for existing 
measures and II (reservations for future measures) of the Agreement may require commercial presence. 
 
 WT/REG297/1/Rev.1 
 
- 24 - 
 
  4.3.4  Performance requirements 
4.19.  Paragraph 1 of Article 10.07 contains a list of requirements a Party cannot impose in 
connection with the establishment, acquisition, expansion, management, conduct or operation of an investment of an investor of the other Party.  The prohibited performance requirements are: (i) 
export of a given percentage of goods or services; (ii) a certain level or percentage of domestic 
content; (iii) purchase, use or accord of a preference to goods produced or services provided, or to purchase goods or services from persons in such Party; and (iv) to relate the volume or value of 
imports to those of exports or to foreign exchange inflows associated with the investment. 
4.20.  No Party may condition the receipt or continued receipt of an advantage in connection with 
an investment on compliance with the performance requirements specified in paragraph 2 of Article 10.07. This shall not be construed to prevent a Party from conditioning an advantage in 
compliance with a requirement to locate production , produce a service, train or employ workers, 
construct or expand particular facilities, or ca rry out research and development. Article 10.07 in 
general shall not apply to measures listed in Annexes I, II or III to the Agreement. 
4.21.  The prohibition on most performance requirements does not apply to: (i) qualification 
requirements for goods and services for export promotion and foreign aid programmes; (ii) procurement; and (iii) requirements imposed by an  importing Party related to the contents of a 
good necessary to qualify it for preferential tariffs or quotas (Article 10.07.3). 
4.22.  In addition, exceptions are provided for the Party to adopt measures, including 
environmental measures, necessary to ensure the compliance with laws and regulations that are consistent with the Agreement or to protect human, animal or plant life or health or for measures 
aimed at conserving living or non-living exhaustible natural resources (Article 10.05.5).  
4.3.5  Movement of natural persons 4.23.  Chapter 12 of the Agreement governs the temporary entry of business persons. Pursuant to 
the definition of "business person", the Chapter not only applies to services and investment but 
also to goods.  
4.24.  The Chapter reflects the convenience of facilitating temporary entry on a reciprocal basis 
and the establishment of transparent criteria and procedures for temporary entry as well as the 
necessity to guarantee security at the borders,  and to protect the domestic labour force and 
permanent employment (Article 12.02). The Partie s commit to expeditiously grant temporary entry 
to business persons covered in Annexes 12.04 (Temporary Entry of Business Persons) and 
12.04(1) (Special Provisions Regarding Temporary Entry of Business Persons) and endeavour to 
develop and adopt common criteria, definitions and interpretations for the implementation of this Chapter (Article 12.04). A Party may deny temporary entry when the entry might affect the 
settlement of a labour dispute under way, or the em ployment of a person involved in the dispute. 
In this case, the Party should inform the affected person in writing of the reasons for the denial and notify the other Party.  
4.25.  Annex 12.04 contains the Parties commitments for facilitating the temporary entry of 
business persons. The three categories of business persons are: (i) business visitors
25; (ii) traders 
and investors; and (iii) intra-corporate transferees. Special provisions regarding temporary entry of business persons are also contained in Annex 12.04(1). Chinese Taipei business persons shall 
carry out useful or beneficial activities for Guatemala; they shall hold a temporary residence 
permit and may renew this permit for consecutive periods as long as the conditions are maintained. They would not be eligible for permanent residence. For Chinese Taipei, a Guatemalan 
business person should obtain a visitor or resident visa prior to entry. A visitor visa which is valid 
for no longer than a year, multiple entry and 90 day duration of stay may be issued. The business p e rs on in p os s e s s ion of a re s id e nt vis a may s tay i n Chine s e  T aip e i as  lo ng  as  the  work p e rmit 
remains valid. The duration of stay may be extendable as long as the conditions justifying it are 
maintained. This represents an improvem ent as compared to GATS commitments. 
                                               
25 Temporary entry and expeditious docu ment verification is particularly  designed for business visitors 
in: research and design; cultivation, manufacture and production purchasing; marketing; sales; after-sale service; and general servic es (Appendix 12.04(A)(1)). WT/REG297/1/Rev.1 
 
- 25 - 
 
  4.26.  The Parties may not require labour certification tests or other procedures of similar effects 
as a condition for temporary entrance nor impose or maintain any numerical restriction for the three covered categories of business persons. A Party may require a business person seeking temporary entry to obtain a visa or its equivalent prior to entry. The Parties shall consider 
removing their visa or equivalent documentation requirements.  
4.27.  Recourse to dispute settlement regarding a denial to grant temporary entry under Chapter 
12 is not permitted unless the matter involves a pattern of practice and the affected business 
person has exhausted the available administrative proceeding regarding that particular matter. 
4.3.6  Senior management and board of directors 4.28.  Neither Party may require that an enterprise  of that Party, that is an investment of an 
investor of the other Party appoint to senior management positions individuals of any particular 
nationality. However, with respect to the board of directors a Party may require that a majority be 
of a certain nationality, or resident in the Party, provided that this does not materially impair the ability of the investor to exercise control over its investment. This provision should be read 
together with Annexes II and III on non-conforming measures (Article 10.09). 
4.29.  Under the Air Services Agreement, the Partie s shall permit designated airlines to bring and 
maintain foreign employees who perform managerial, commercial, technical, operational and other 
specialist duties, consistent with the laws and regulations of the receiving Party concerning entry, 
residence and employment (Article14.3).  
4.3.7  Other Investment-related Provisions 4.30.  Article 10.11 stipulates that no Party my directly or indirectly "nationalize" or expropriate an 
investment of an Investor of the other Party or take a measure tantamount to "nationalization" or 
expropriation of such an investment except: (i) for a public interest; (ii) on a non-discriminatory basis; (iii) in accordance with the due process of law; and (iv) if compensation in accordance with 
this Article is paid.  
4.31.  Concerning the environment, nothing in Chapter 10 shall be construed to prevent the 
adoption, maintenance or enforcement of measures considered appropriate to ensure that the 
investment activity is undertaken under its ecological or environmental laws. The Parties recognize 
that it is inappropriate to encourage investment by relaxing domestic health, safety and environmental measures; the Parties shall not waive or otherwise derogate from, or offer to waive or otherwise derogate from such measures as an encouragement for the establishment, expansion 
or retention of an investment. If a Party cons iders that the other Party has offered such an 
encouragement, it may request consultations (Article 10.15). 
4.4  Liberalization commitments 
4.4.1  Guatemala 
4.32.  Under Annex I, Guatemala lists 19 reservations for existing measures of which 5 are 
horizontal. Additionally, in Annex II are listed 10 future reservations of which 1 is horizontal. 
Annex III contains one sectoral activity reserved for the State and in Annex IV, one quantitative 
restriction. Annex V contains an exception to MFN treatment in matters concerning aviation, fisheries, and maritime services, including salvaging. 
4.33.  The following sections refer to Guatemala's horizontal and sector-specific commitments and 
liberalization thereof. 
4.4.1.1  Horizontal commitments 4.34.  Guatemala's horizontal commitments under  the GATS refer to the presence of natural 
persons to which limitations on market access and national treatment are applied. They also refer WT/REG297/1/Rev.1 
 
- 26 - 
 
  to MFN exemptions for preferences granted under other agreements.26 Under the Agreement, 
horizontal limitations refer to national treatment. Only Guatemalans by birth or enterprises that are either 100% or majority owned by Guatemalans may i) be granted titles to rent or use state-
owned land in the Department of El Petén under ce rtain conditions; ii) take adverse possession of 
real estate, and 3; iii) own or possess property  located within 15 kilometres of the borders. 
Foreign nationals require authorisation to own certain specific State-owned land. Only the Government may rent State-owned land to enterprises established under Guatemalan law. To be 
established in Guatemala, enterprises established under a foreign law must allocate an amount of 
capital to local operations and execute a guarantee. There is one horizontal future reservation for national treatment, MFN and local presence by wh ich Guatemala reserves its right to maintain or 
adopt any measure related to the issuing of currenc y and to exchange rate and lending conditions. 
MFN exemptions under the GATS are replicat ed in the Agreement in the annexes of 
non-conforming measures thereby not providing additional preferences under the Agreement. 
4.4.1.2  Sector specific-commitments 
4.35.  Compared to the GATS, Guatemala's sector specific commitments are broader. Even though 
financial services are excluded from the CBTS, Guatemala makes deeper commitments in other subsectors. 
4.36.  Table 4.1 gives a comparison of the degree of liberalization by sector in the Agreement with 
that in Guatemala's GATS Schedule. It indicates whether for a given subsector the sectoral commitments in the Agreement (except as indicate d in the Agreement's horizontal reservations) 
are improved or the same as compared to those in the GATS.
27 
Table 4.1 Guatemala: Sector-specific liber alization under the Agreement, excluding 
mode 4  
Sectors (CPC Classification) GATS FTA 
Sectoral 
Commitments 
(except as 
indicated in the 
GATS horizontal 
commitments) Compared to the 
GATS, sectoral 
commitments  
(except as 
indicated in the 
FTA horizontal 
reservations) in 
the FTA are: Sector-specific 
reservations  
(or provisions) 
specified in 
1. Business services  partial improved  Annex I, II and V 
A. Professional Services  -- improved I -G-7 to I-G-10  
II -G-4 and 9 
B. Computer and Related Services        partial full  
C. Research and Development Services        -- full  
D. Real Estate Services           -- full  
E. Rental/Leasing Services without Operators      -- full  
F. Other Business Services  --  improved I-G-6 and I-G-19 
II-G-9  
2. Communication services  partial improved Annex II and III 
A. Postal services            -- improved III-G-1 
                                               
26 1. Agreements signed by Guatemala under the framework of Central American integration, including: 
Multilateral treaty of free trade an economic integrat ion; Central American Convention on equalization of 
import duties; Treaty of economic Association; and General Treaty of Economic Integration.  Signatories: Costa Rica, El Salvador, Honduras, Nicaragua. 
2. The Central American Exemption clause does no t allow the extension to third countries of the 
bilateral or multilateral concessions made among the Central American countries themselves.  Signatories Costa Rica, El Salvador , Honduras, Nicaragua. 
3. Convention on investment Guaranties with the United States of America (Decree No.1545 of 
22 August 1962). Government Decision (Acuerdo) 693-86, on rules for the implementation of the United States 
investments guarantee convention concluded between the Government of the United States and Guatemala. 
4.  Agreement on Trade and Investment betwee n Central American countries and Colombia and 
Venezuela, concluded on 12 February 1993. Signatories: Colombia, Costa Rica, El Salvador, Honduras, Nicaragua and Venezuela. 
5. Tuxtla Gutiérrez Agreements concluded on 11 January 1991. Signatories: Costa Rica, El Salvador, 
Honduras, Mexico, Nicaragua. 
27 This factual presentation follows the WTO Services Sector Classification list, which is based on the 
UN Central Product Classification (CPC) and consists of 12 sectors (WTO document MTN.GNS/W/120). WT/REG297/1/Rev.1 
 
- 27 - 
 
  Sectors (CPC Classification) GATS FTA 
Sectoral 
Commitments 
(except as 
indicated in the 
GATS horizontal 
commitments) Compared to the 
GATS, sectoral 
commitments  
(except as 
indicated in the 
FTA horizontal 
reservations) in 
the FTA are: Sector-specific 
reservations  
(or provisions) 
specified in 
B. Courier services            -- full  
C. Telecommunication services  partial improved II-G-7 
D. Audiovisual services -- full  
E. Other  -- full  
3. Construction & related engineering  
services  -- improved Annex II 
A. General construction work for bu ildings      -- improved II-G-5 
B. General construction wo rk for civil engineering    -- improved II-G-5 
C. Installation and assembly work         -- improved II-G-5 
D. Building completion and finishing work      -- improved II-G-5 
E. Other              -- improved II-G-5 
4. Distribution services  -- improved  
A. Commission agents' services          -- full  
B. Wholesale trade services  -- full  
C. Retailing services                     -- full  
D. Franchising                         -- full  
E. Other -- full  
5. Educational services   improved  
A. Primary education services         -- full  
B. Secondary education services         -- full  
C. Higher education services          -- full  
D. Adult education            -- full  
E. Other education services          -- full  
6. Environmental services  -- improved  
A. Sewage services            -- full  
B. Refuse disposal serv ices          -- full  
C. Sanitation and similar services        -- full  
D. Other -- full  
7. Financial services Not in the scope of the Agreement 
A. All insurance and insuranc e-related services        
B. Banking and other fi nancial services    
C. Other    
8. Health related and social se rvices -- improved Annex I and II 
A. Hospital services -- full  
B. Other Human Health Services         -- full  
C. Social Services            -- improved II-G-2 
D. Other -- improved II-G-1 and 8 
9. Tourism and travel related services  partial improved  
A. Hotels and restaurants (including  catering)      partial full  
B. Travel agencies and tour operators services     -- full  
C. Tourist guides services          -- improved I-G-13 
D. Other partial full  
10. Recreational, cultural and sporting 
services -- improved Annex I 
A. Entertainment services  -- improved I-G-12 
B. News agency services           -- full  
C. Libraries, archives, museums and other 
cultural services  -- full  
D. Sporting and other recreational services      -- full  
E. Other  -- full  
11. Transport services  partia l Improved Annex I, II and V 
A. Maritime Transport Services  -- full I- G-17 and V-G-1 
Maritime Transport 
Agreement 
B. Internal Waterways Transport -- full  
C. Air Transport Services  partial improved I-G-14 and 15 
Air Services 
Agreement 
D. Space Transport            -- full  
E. Rail Transport Services  -- full  WT/REG297/1/Rev.1 
 
- 28 - 
 
  Sectors (CPC Classification) GATS FTA 
Sectoral 
Commitments 
(except as 
indicated in the 
GATS horizontal 
commitments) Compared to the 
GATS, sectoral 
commitments  
(except as 
indicated in the 
FTA horizontal 
reservations) in 
the FTA are: Sector-specific 
reservations  
(or provisions) 
specified in 
F. Road Transport Services -- improved I-G-16 to19, 
II-G-6 and 
G. Pipeline Transport  -- full  
H. Services auxiliary to all mo des of transport  -- full  
I. Other Transp ort Services  -- improved I-G-11 
12. Other services not included elsewhere  -- improved  
 
Note: The table gives an overview of commitments under the GATS and in the RTA. Horizontal commitments/reservations are not taken into account.  Only modes 1, 2 and 3 are considered given the 
horizontal nature of mode 4 commitments. 'Improve d' means commitments that go beyond the GATS as 
regards market access or national treatment, under any of the three modes. 'Similar' means commitments that 
do not go beyond the GATS; though possibly with limited  improvements and/ or limited a dditional reservations. 
'Partial' means commitments that, under the GATS, are subj ect to some sector-specifi c limitation(s) for market 
access or national treatment, under any of the three modes. --: no commitments. * Unbound for mode 1 and 
2; mode 3 of telecommunication services is, however, covered by Ch apter 10 on Investment. 
 Source: Schedule of Specific Commitments (GATS/SC/36) supplemented by documents 
GATS/SC/36/Suppl.1/Rev.1 and GATS/EL/36 and relevant  sections of Annexes I, II, III and V to the 
Agreement. 
 
4.37.  In business services, Guatemala broadens it s commitments in professional services as well 
as in research and development, real estate an d rental/leasing services without operators, for 
which there are no GATS commitments. It also enlarges its commitments in computer and related 
services which were partially covered in the GATS. In professional services, there are reservations concerning Notaries, which have to be Guatemalan by birth and domiciled in Guatemala. There are 
also reservations for the supply of professional services requiring a recognized university degree, 
certificate or diploma and for the practice of a liberal profession in Guatemala which is limited to those certified in the universities of Guatemala, legally established or incorporated to the University of San Carlos, and those covered by in ternational treaties accepted by Guatemala, as 
long as there is reciprocity. There is also provision for regional preferences.
28 All other business 
services save three subsectors (services incidental to fishing, forestry, manufacturing) which are subject to reservations, are fully liberalized where there are no GATS commitments. 
4.38.  On communication services, only postal  services (epistolary mail) are subject to a 
reservation in Annex III on economic activities reserved for the State. As for basic telecommunication services, there are commitments under the GATS, with one market access 
restriction concerning routing and an MFN exemption.
29 Under the Agreement, all 
telecommunication services are liberalized except for a future reservation on MFN for the clearance system for international telephone traffic.
30  
4.39.  Under the Agreement, construction and rela ted engineering services, in which there are no 
commitments under the GATS, are liberalized with a future reservation on national treatment, MFN 
and local presence. 
4.40.  Distribution, educational, environmental an d health-related services, for which there are no 
commitments under the GATS, are fully liberalized, except for the horizontal reservations 
applicable to all sectors and a future reservation on social services for reasons of public purpose. 
4.41.  In the case of tourism and travel-related  services for which there are partial commitments 
under the GATS, liberalization has been broadened bu t with an existing reservation for tour guides 
                                               
28 Agreement on the Practice of Graduate Professions and Recognition of Graduate Studies, 1962.  
Signatories: Guatemala, El Salv ador, Honduras and Costa Rica. 
29 Cláusula centroamericana. 
30 Treaty on Telecommunications an d its Protocol. Signatories: Costa Rica, El Salvador, Guatemala, 
Honduras and Nicaragua. WT/REG297/1/Rev.1 
 
- 29 - 
 
  who must be Guatemalan by birth or nationals of a foreign country that are residents in 
Guatemala. 
4.42.  In recreational, cultural and sporting se rvices for which there are no commitments under 
the GATS, liberalization has been broadened with a limitation for the performing arts which 
require: i) prior authorization; ii) consent from artists unions; and iii) preference to Guatemalans if 
circumstances allow. 
4.43.  In transport services where under the GA TS there are partial commitments only for one 
subsector, liberalization has been broadened. Maritime transport services seem to be fully 
liberalized except for an MFN limitation for land  vehicles. Internal waterways transport, space 
transport, rail transport services and pipeline tr ansport are fully liberalized. For air transport 
services, there are two full and one partial co mmitment under the GATS concerning the three 
subsectors covered by the Agreement. There is a CBTS reservation for specialty air services and 
for air transportation services exploited exclusively inside Guatemala. For passenger and cargo road transport services for which there are no commitments under the GATS, liberalization has 
improved with exceptions concerning vehicles  with foreign plates except for the parties
31 of the 
"Tratado General de Integración Económica Centroamericana". There is also a future reservation for road transport services of goods and a quantitative reservation on cargo.  
4.44.  Liberalization in other transport services has improved except for a limitation on customs 
agents. There is also an exception for regional preferences. 
4.45.  On other services not included elsewhere there are future reservations on obligations 
concerning national treatment, MFN, local pr esence, performance requirements and Board of 
directors for Aboriginal affairs and matters relate d to disadvantaged populations services sectors. 
4.4.2  Chinese Taipei 4.46.  Under Annex I, Chinese Taipei lists 18 reservations for existing measures of which 1 is 
horizontal. Additionally, 8 future reservations are listed in Annex II. Annex III, contains a 
reservation for the State for three subsectors. In An nex V MFN is to be provided except in aviation, 
fisheries and maritime affairs, including salvaging.  
4.47.  The following section refers to Chinese Taipei's horizontal and sector-specific commitments 
and liberalization. 
4.4.2.1  Horizontal commitments 4.48.  As in its GATS schedule, Chinese Taipei maintains in mode 3 a national treatment 
reservation on the leasing and ownership of land for certain uses and in certain areas. Likewise, 
those lands cannot be used as collateral by persons of Chinese Taipei to the other Party. 
4.4.2.2  Sector-specific commitments 
4.49.  Compared to the GATS, Chinese Taipei's sector-specific commitments are improved. While 
air transport (with some exceptions) and financial services are excluded from the CBTS Chapter, 
mode 3 of air transport services is covered by the Investment Chapter with some reservations. 
4.50.  Table 4.2 compares the degree of liberalizati on by sector in the Agreement with that in the 
Chinese Taipei's GATS Schedule. In particular, it indicates whether for a given subsector the sectoral commitments in the Agreement (except as indicated in the horizontal reservations) are improved or the same as those in the GATS. 
4.51.  In business services, Chinese Taipei's commitments are broader compared to its GATS 
schedule, although some reservations remain and new ones are introduced such as requirements 
of local presence for professional services and fo r real estate services subsectors, which are not 
                                               
31 Costa Rica, El Salvador, Honduras, Guatemala an d Nicaragua. The mechanism for reciprocal and 
non-discriminatory treatment for carg o international transport by road (Protocolo de Tegucigalpa) includes 
Panamá in relation to transit. WT/REG297/1/Rev.1 
 
- 30 - 
 
  scheduled under the GATS. New reservations, not co ntained in its GATS schedule have also been 
added on agriculture, animal husbandry, forestry , logging and leasing of ships without operators.32 
Concerning mining, concessions are only grante d to persons of Chinese Taipei. Furthermore, 
reservations in legal services mirror those schedul ed under the GATS. In addition, Chinese Taipei 
liberalizes mode 1 for personnel placement an d supply services but with reservations.33 It also 
introduces a future national treatment and local presence reservation for private security services. 
4.52.  On communication services, Chinese Taipei extends its commitments to postal services not 
included in its GATS schedule. However, it in cludes a mode 3 reservation in Annex III for the 
business of forwarding correspondence as an activity reserved for the State. Concerning telecommunication services, it maintains the same commitments with the same limitations as in the GATS. There are no commitments on radio and television transmission in Chinese Taipei's 
GATS commitments. Under the Agreement, in radio and television services, Chinese Taipei lists 
reservations establishing limitations for investment and conditions for "cross-border" supply. It also establishes a future mode 1 reservation in Annex II on audio-visual services and television 
and radio broadcast transmission services. 
4.53.  Chinese Taipei improves its commitments in  construction and related engineering services. 
The Agreement covers mode 1 while its GATS schedule excludes it. However, Chinese Taipei 
reserved the right to maintain or adopt any measures regarding "cross-border" trade in 
construction services. 
4.54.  In educational services, Chinese Taipei broadens its commitments since it covers primary 
education services which are not covered in its GATS schedule, but maintains the same 
reservations related to the composition of the board and management. Moreover, "foreign" 
investment is not allowed in primary and junior high schools. 
4.55.  Full commitments are made in distribution services, tourism and travel related services, and 
environment services. Thus, the following mo des of supply for which there are no GATS 
commitments are included: i) mode 1 and 3 for tourist guide services, ii) mode 1 for environmental services, and iii) mode 4 for all these services.
34 
4.56.  As for health services, its GATS rese rvations related to the establishment and the 
composition of their boards are maintained. Furthermore, Chinese Taipei extends its commitments to social services reserving however its right to adopt or maintain any measure related to social services for a public purpose.  
4.57.  In recreational, cultural and sporting services, Chinese Taipei expands its commitments to 
entertainment, libraries, archives, museums and other cultural services, for which it has no GATS commitments. It however sets out reservations for games of luck and chance. 
4.58.  Unlike in the GATS, Chinese Taipei extends its commitments to maritime, internal 
waterways, space and pipeline transport services wh ile establishing thresholds for investment and 
board composition in internal waterways, mari time and air transport services and airfield 
management and operation services. It also adds four new restrictions, not included in its GATS 
schedule: i) prohibits investment in road transport services; ii) it limits aircraft pilot and other aeronautical technical personnel services to Chinese Taipei nationals; iii) only central, county and city governments are allowed to establish and operate airports; only Chinese Taipei's aircraft are 
allowed to provide general internal aviation services.  
4.59.  Finally, Chinese Taipei also makes commitments in other services, not included in its GATS 
schedule, but with some reservations. In public utilities, privately owned utilities companies cannot 
have "foreign" stockholders or mortgage their prop erty to "foreigners" without prior approval. In 
addition, they may not acquire water rights. As fo r future measures, Chinese Taipei reserves the 
right to adopt or maintain any measure denying "foreign" investors and their investments or 
services suppliers, any rights or preferences granted to native populations or minorities. 
                                               
32 CBS and Investment in fisheries and aquaculture are restricted.  Foreign investment is not allowed in 
forestry and hunting and it  is restricted in agriculture and animal husbandry. 
33 The competent authorities may authorize commercial presence of employment agencies to provide 
full employment services. 
34 Unlike its GATS schedule, Chinese Taipei makes commitments in mode 1 for environmental services. WT/REG297/1/Rev.1 
 
- 31 - 
 
  Table 4.2 Chinese Taipei: Sector-specific lib eralization under the Agreement, excluding 
mode 4  
Sectors (CPC Classification) GATS FTA 
Sectoral 
Commitments 
(except as 
indicated in the 
GATS horizontal 
commitments) Compared to 
the GATS, 
sectoral 
commitments  
(except as 
indicated in the 
FTA horizontal 
reservations) in 
the FTA are: Sector-specific 
reservations 
(or provisions) 
specified in 
1. Business services  partial improved  Annex I, II and V  
A. Professional Services  partial similar I-TW-3 and II 
B. Computer and Related Services        full full  
C. Research and Development Services        full full  
D. Real Estate Services           partial similar I-TW-3 
E. Rental/Leasing Services without Operators      partial similar V 
F. Other Business Services  pa rtial similar I-TW-2,4 and 5  
2. Communication services  partial improved Annex I, II and 
III 
A. Postal services            -- -- Annex III 
B. Courier services            partial similar Annex III 
C. Telecommunication services  partial similar I-TW-8/9 
D. Audiovisual services partial similar I-TW-10 and II 
E. Other  -- full  
3. Construction & related engineering services  Partial improved Annex II 
A. General construction work for bu ildings      partial improved  
B. General construction work  for civil engineering    partial improved  
C. Installation and assembly work         partial improved  
D. Building completion and finishing work      partial improved  
E. Other              partial improved  
4. Distribution services  partial Improved  
A. Commission agents' services          full full  
B. Wholesale trade services  partial full  
C. Retailing services                     partial full  
D. Franchising                         full full  
E. Other -- full  
5. Educational services  partial Improved Annex I 
A. Primary education services         -- -- I-TW-12 
B. Secondary education services         partial similar I-TW-12 
C. Higher education services          partial similar I-TW-12 
D. Adult education            partial similar I-TW-12 
E. Other education services          partial full  
6. Environmental services  partial improved  
A. Sewage services            partial full  
B. Refuse disposal serv ices          partial full  
C. Sanitation and similar services        partial full  
D. Other partial full  
7. Financial services Not in the scope of the Agreement 
A. All insurance and insuranc e-related services        
B. Banking and other fi nancial services    
C. Other    
8. Health related and social services partial improved Annex I and II 
A. Hospital services partial improved I-TW-13 
B. Other Human Health Services         full full  
C. Social Services            partial similar Annex II 
D. Other -- full  
9. Tourism and travel related services  partial improved  
A. Hotels and restaurants (including  catering)      partial full  
B. Travel agencies and tour operators services     full full  
C. Tourist guides services          partial full  
D. Other -- full  
10. Recreational, cultural and sporting  services partial improved Annex II 
A. Entertainment services  -- full  
B. News agency services           full full  
C. Libraries, archives, museums and other cultural 
services  -- full  
D. Sporting and other recreational servic es      partial improved Annex II WT/REG297/1/Rev.1 
 
- 32 - 
 
  Sectors (CPC Classification) GATS FTA 
Sectoral 
Commitments 
(except as 
indicated in the 
GATS horizontal 
commitments) Compared to 
the GATS, 
sectoral 
commitments  
(except as 
indicated in the 
FTA horizontal 
reservations) in 
the FTA are: Sector-specific 
reservations 
(or provisions) 
specified in 
E. Other  -- full  
11. Transport services   improved Annex I 
A. Maritime Transport Services  -- -- I-TW-15 Maritime 
Transport 
Agreement 
B. Internal Waterways Tran sport -- improved I-TW-14 
C. Air Transport Services  partial full Air Services 
Agreement 
D. Space Transport            -- full  
E. Rail Transport Services  partial full  
F. Road Transport Services  partial similar I-TW-16 
G. Pipeline Transport  -- full  
H. Services auxiliary to all modes of transport  partial full  
I. Other Transp ort Services  -- full  
12. Other services not included elsewhere     
 
Note: The table gives an overview of commitments under the GATS and in the RTA. Horizontal commitments/reservations are not taken into account.  Only modes 1, 2 and 3 are considered given the 
horizontal nature of mode 4 commitments. 'Improve d' means commitments that go beyond the GATS as 
regards market access or national treatment, under any of the three modes. 'Similar' means commitments that 
do not go beyond the GATS; though possibly with limited  improvements and/ or limited a dditional reservations. 
'Partial' means commitments that, under the GATS, are subj ect to some sector-specifi c limitation(s) for market 
access or national treatment, under any of the three modes. --: no commitments. * Unbound for mode 1 and 
2; mode 3 of telecommunication services is, however, covered by Ch apter 10 on Investment. 
 Source: Schedule of Specific Commitments - Revisi on GATS/SC/136/Rev.1 and GATS/EL/136, and relevant 
section of Annexes I, II, III and V to the Agreement.  
4.5  Regulatory provisions  
4.5.1  Domestic regulation 
4.60.  Article 11.06 (Permission, Authorization, Licensing and Certification) follows closely GATS 
Article VI.4 but as a best endeavour clause. 
4.61.  Under this Article, with a view to ensuri ng that any measure adopted or maintained by a 
Party does not constitute an unnecessary barrier to cross-border trade, the Parties shall endeavour 
to ensure that any such measure: (i) is based on objective and transparent criteria, such as competence and ability to provide the service; (ii) is no more burdensome than necessary to 
ensure the quality of the service; and (iii) does not constitute a disguised restriction on the cross-
border provision of the service. 
4.62.  In the Air Services Agreement, the Parties agree to give particular attention to tariffs which 
may be objectionable because they appear unreasonably discriminatory, unduly high or restrictive 
because of the abuse of a dominant position, artificially low because of direct or indirect subsidy or 
support, or predatory. They also agree that designated airlines shall have a fair and equal opportunity to compete in providing the internationa l air transportation and they endeavor to take 
action to eliminate all forms of discrimination and uncompetitive practices (Article 11).  
4.63.  Under Article 12.04 on Temporary Entry, when a Party denies temporary entrance, it may 
inform the affected person in writing of the reasons for the denial and notify in writing the other 
Party the reasons for the denial. WT/REG297/1/Rev.1 
 
- 33 - 
 
  4.5.2  Recognition 
4.64.  There are no provisions on recognition per se  of education or experience in the Agreement. 
However, the Parties establish specific provisions allowing practice by the liberal professions. In the case of Guatemala, the practice is allowed only for individuals certified by the universities of 
Guatemala, legally established or incorporated to the University of San Carlos and those covered 
by international treaties, as long as there is reciprocity. Graduated from foreign universities require a licence from the University of San Carl os. Chinese Taipei establishes requirements on 
qualifications and experience for the recognition of Attorneys in foreign legal affairs. The 
registration shall be made with the Bar Association in the locality where the law office is located.  
4.5.3  Subsidies 4.65.  Article 11.02 on Scope of Application of Chapter 11 on cross-border trade in services, does 
not apply to subsidies or grants provided by a Party or a state enterprise, including government-
supported loans, guarantees and insurance. 
4.5.4  Safeguards 
4.66.  Under Article 10.10.4, a Party may prevent a transfer through the equitable, 
non-discriminatory and good faith application of its laws relating to: (i) bankruptcy, insolvency or the protection of the rights of creditors; (ii) administrative or judicial definitive resolutions; (iii) 
non-fulfilment to reports of transfers of currency or other monetary instruments; (iv) ensuring the 
satisfaction of judgements and arbitral awards in adjudicatory proceedings; or (v) issuing, trading 
or dealing in securities. 
4.67.  Under Article 19.04, no provision shall be interpreted as impeding the adoption of measures 
that restrict transfers when a Party faces serious difficulties in or threats to its balance of 
payments, provided they are notified to the othe r Party and, in the event both Parties become 
party to the Articles of Agreement of the International Monetary Fund, a set procedure
35 is 
followed.  
4.5.5  Other 4.68.  The Parties shall establish procedures for notification and inclusion of amendments and 
quantitative restrictions in the relevant Schedules and for consultations on reservations and 
quantitative restrictions for further liberalization (Article 11.11). No provision in the Chapter may be construed as imposing the obligation to provide confidential information of which the disclosure may impede law enforcement or damage public intere st or injure legitimate trade interest of state 
and private enterprises. 
4.6  Sector specific provisions on trade in services 4.6.1  Air and maritime transportation 
4.69.  Chapters 13 and 14 apply to measures that a Party adopts or maintains in air and maritime 
transportation services respectively, and to the Parties' current or future agreements in these 
areas. In case of incompatibility between th e Agreement and the agreements the former will 
prevail to the extent of the incompatibility. Any modification shall not eliminate or reduce the 
existing rights to the Agreement (Article13.01 and 13.02; Article 14.01 and 14.02). 
4.70.  Under the Maritime Transport Agreement which entered into force on 22 September 2005, 
the Parties agree to: (i) encourage the participatio n of their vessels in maritime transport between 
their ports and not to prevent vessels, flying other flags, to participate in maritime transport 
between their ports and ports of third parties under their respective rules and; (ii) to cooperate to 
eliminate obstacles which might impede the deve lopment of maritime trade between their ports 
                                               
35 Such procedure entails submission of the restriction for revision to the Fund; initiation of 
consultations with the Fund and adoption of economic policies according to such consultations. WT/REG297/1/Rev.1 
 
- 34 - 
 
  and interfere with activities connected with that trade (Article 3.1).36 Shipping companies from 
third parties or vessels flying their flags may participate in the transport of goods in the framework of bilateral trade between the Parties. Furthe rmore, the Parties endeavor to implement the 
relevant international instruments concerning safety of vessels, protection of the marine 
environment and the living and working conditions of seamen (Article 3.2 and 3). The shipping 
companies operating in the Parties shall be entitled to establish functioning representation (Article 6). The Parties shall facilitate and expedite customs, health and other administrative formalities 
applicable in their ports and facilitate the use of available port reception facilities (Article 7).  
4.71.  The Maritime Transport Agreement also contains provisions on the recognition of vessel’s 
(Article 8) and crew members’ documents (Article 9), and the disembarkment of crew members (Article 10). Article 11 concerns migratory permits which inter alia allow crew members of a Party 
the right to enter or transit the other Party, to join their vessel, with the consent of the relevant 
authorities of that other Party. No visa will be required. Furthermore, there are special provisions for when crew members disembark for reasons of health, or other valid reasons and in cases 
where crew members are from third parties. Notwit hstanding articles 9, 10 and 11, the applicable 
laws and regulations of the Parties concerning entr y, stay and termination of stay of crew from 
third parties remain in force and do not restrict the right of either Party to refuse entry for a crew 
member they consider undesirable (Article 12). 
4.72.  Under the Air Services Agreement which entered into force on 14 August 2007, to operate 
international air services on specified routes
37, the airlines(s) designated by each Party shall enjoy 
the right: (i) to fly without landing over the other Party; (ii) to make stops in the other Party for 
non-traffic purposes and; (iii) to make stops at the point(s) on the route(s) specified for the 
purpose of taking on board and discharging international traffic in passengers, cargo or mail separately or in combination.
38 Non-designated airlines of each Party shall enjoy the rights 
specified in (i) and (ii) (Article 2.2, 2.3). Nothing in Article 2.2 shall be deemed to grant to the 
designated airlines the privilege of taking on boar d, in the other Party, passengers, cargo and mail 
for remuneration and destined for another point in that Party. The Parties shall have the right to 
designate in writing to the other Party, one or many  airlines to operate the agreed services and to 
withdraw or alter such designation. They sha ll grant the appropriate operating authorization 
provided that: (i) the said airline has its principa l place of business and permanent residence in the 
designating Party; (ii) is under effective regulatory control of the designating Party; (iii) the 
designating Party is in compliance with the prov isions of Article 7 (Operational security) and 
8 (Aviation security) of the Air Services Agreement;  and (iv) the designated airline is qualified to 
meet other conditions prescribed under the laws and regulations normally applied to the operation 
of international air transport services by the Party receiving the designation (Article 3). In Article 
4, consultations between the aeronautical authorities on withholding, revocation and limitation of authorization are foreseen, unless safety or security requires action.  
4.73.  The laws and regulations of the Party regula ting entry and departure of aircraft engaged in 
international air services or the operation and navigation of such aircraft in that Party shall be applied to all aircraft of the designated airline of the other Party. Passengers, baggage, cargo and mail will only be subject to simplified control and baggage and cargo in direct transit shall be 
exempt from customs and similar taxes (Article 5). 
4.74.  The Agreement also contains provisions on customs duties whereby, on the basis of 
reciprocity, the Parties shall exempt a designated  airline of the other Party from customs duties, 
excise taxes, inspection fees and other duties and charges not based on the cost of services 
provided in connection with the operation or servicing of aircraft of the designated airline. The exemptions granted by a Party shall apply to the items
39: (i) introduced in the Party by or on 
behalf of the designated airline; (ii) retained on board the aircraft upon arrival or leaving the other 
Party and; (iii) taken on board the aircraft and intended for use in operating the agreed services, provided the ownership is not transferred in the said Party (Article 10).  
                                               
36 Vessels, ports and crew members of a Party are defined respectively in Article 1 of the Maritime 
Transport Agreement. 
37 The specified routes for both Parties are define d in the Annex to the Air Services Agreement. 
38 Air services, and designated airline are define d in Article 1 of the Air Services Agreement. 
39 Services on arrival, on aircra ft, fuel, lubricating oils, consumable technical supplies, spare parts 
including engines, regular aircraft equi pment, aircraft stores an d other items intended for use or used solely in 
connection of the servicing operation. WT/REG297/1/Rev.1 
 
- 35 - 
 
  4.75.  Under Article 14, each Party shall permit designated airlines to use the services and 
personnel of other organizations, companies or ai rlines authorized to provide that service and 
subject to applicable safety provisions, incl uding ICAO Standards and Recommended Practices 
(SARPs); the designated airline may choose am ong competing providers of ground handling 
services.  
4.76.  There are also regulations on the recognition of certificates (Article 6), operational safety 
(Article 7), aviation security (Article 8), and capacity (Article 12). 
4.77.  As for disputes that may arise with respect to the interpretation or application of these 
Chapters or of the Agreements, they shall be  governed by Chapter 18 (Dispute Settlement). 
However, concerning Article 18.10 (Arbitral Panel Selection), the panel will be composed of persons who have the aptitudes and qualifications necessary in the matter of air transportation 
services (Article 13.03.3) and of maritime transp ortation services (Article 14.03.3). The President 
of the Council of the International Civil Aviation Organization (ICAO), in the case of air transportation and the President of the United Nations Commission on International Trade Law 
(UNCITRAL), in the case of maritime transporta tion or another appropriate official of an 
international organization may designate the arbite r or arbiters that have not been designated, 
according to the procedures of that Organization and at the request of either of the disputing 
Parties. 
4.78.  An Air Transportation Committee and a Mari time Transportation Committee are established, 
whose composition is indicated in Annex 13.04. 
5  GENERAL PROVISIONS OF THE AGREEMENT 
5.1  Transparency 
5.1.  In addition to transparency provisions under various Chapters, Chapter 16 addresses 
transparency more generally. Each Party shall designate an information centre to facilitate 
communications between the Parties, on any matter covered by the Agreement (Article 16.02).
40 
The Parties shall ensure that their laws, regulations, procedures and administrative ruling of general application are promptly published or otherwise made available to enable interested 
persons and the Parties to become acquainted with them (Article 16.03). To the maximum extent 
possible, each Party shall notify any proposed or actual measure that it considers might affect substantially the other Party's interests, prompt ly provide information and respond to questions 
(Article 16.04). 
5.2.  All administrative proceedings applying such  measures shall ensure that whenever possible, 
persons of the other Party that are directly affected by a proceeding are provided reasonable notice, in accordance with domestic procedures, when a proceeding is initiated, including a 
description of the nature of the proceeding, the legal authority under which it is initiated and the 
description of any issues that are controversial. Additionally, each Party shall ensure that such 
persons are afforded reasonable opportunity to present facts and arguments in support of their 
positions prior to the final administrative action, when time, the nature of the proceeding and the 
public interest permit, and its procedures are in accordance with domestic law (Article 16.06).  
5.3.  Where warranted, the Parties shall maintain judicial or administrative procedures for prompt 
review and correction of final administrative ac tions covered by the Agreement. Such tribunals 
shall be independent of the administrative enforcement office or authority and shall not have any 
substantial interest in the outcome. In addition, th e parties to the proceeding are to be guaranteed 
a reasonable opportunity to support and defend  their positions and a decision based on the 
evidence and submissions compiled by the administrative authority. Furthermore each Party will 
ensure, subject to appeal or further review as pr ovided in its domestic law, that such decisions 
shall be implemented by, and shall govern the practice of the competent authority with respect to 
the administrative action (Article 16.07). 
                                               
40 Chinese Taipei has designated the Bureau of Foreign Trade, and Guatemala has designated the 
Dirección de Administraci ón de Comercio Exterior  (DACE). WT/REG297/1/Rev.1 
 
- 36 - 
 
  5.2  Current payments and capital movements 
5.4.  The Parties are required by Article 10.10 to permit all transfers relating to a covered 
investment to be made freely and without delay in  a freely convertible currency at the market rate 
of exchange prevailing on  the date of transfer.41 Such transfers may, however, be prevented 
through the equitable, non-discriminatory and good faith application of the laws.42 The restrictions 
on transfers must be compatible with the Articles of Agreement of the IMF.  
5.5.  Under the Maritime Transport Agreement, th e Parties shall grant to each other’s shipping 
companies the right to free transfer, in converti ble currency at the prevailing exchange market 
rates, of all revenues earned by those companies from activities covered by the Agreement. No charges other than normal bank charges will be applicable to such transfers (Article 4). 
5.6.  Under the Air Services Agreement, the Parties shall permit each other’s airlines to convert 
and transmit abroad to the airlines’ choice of State, on demand, all local revenues from the sale of 
air transport services and associated activities dire ctly linked to the air transport in excess of the 
sums locally disbursed, with conversion and re mittance permitted promptly without restriction, 
discrimination or taxation at the exchange applicable as of the date of the request (Article 14.1). 
5.3  Exceptions 5.7.  Under Article 19.02 the Agreement's general exceptions are based on Article XX of GATT and 
its interpretative notes and subparagraphs (a), (b) and (c) of Article XIV of GATS; these are 
incorporated into and made part of the Agreemen t. Nothing in the Agreement shall be construed: 
(i) to require a Party to furnish or allow access to any information whose disclosure they determine to be contrary to their essential security interests, (ii) to preclude a Party from applying measures 
that it considers necessary for the protection of its essential interest in security matters; and (iii) 
to impede a Party from adopting measures it considers to be necessary to fulfil their obligations under the United Nations Charter for the maintenance of peace and international security 
(Article 19.03).  
5.8.  In addition to general exceptions, security  exceptions and balance of payments exceptions, 
the Agreement does not apply to taxation except where corresponding rights and obligations are 
also granted under the WTO Agreement. Nothing in the Agreement shall affect the rights and 
obligations of any Party under any tax convention.  
5.4  Accession and withdrawal 5.9.  Under Article 21.05, each Party may withdraw from the Agreement. Such withdrawal shall 
enter into force 180 days after a Party provides notice to the other Party, without prejudice to 
another date being agreed. 
5.5  Institutional framework 
5.10.  Article 17.01 establishes the Administrative Commission of the Agreement,
43 inter alia , to 
supervise the implementation of the Agreem ent, evaluate the results and recommend 
modifications, resolve disputes regarding interpreta tion or application, supervise the work of all 
Committees and consider any matter that may affect the operation of the Agreement. In doing this 
the Commission may delegate responsibilities to committees, permanent or ad hoc and groups of experts. The Commission may modify, inter alia , the tariff elimination schedules, by accelerating 
tariff elimination, as well as the rules of origin and may develop any regulation needed for the 
                                               
41 Such transfers include: profits, dividends, inte rest, capital gains, royalty payments, management 
fees, technical assistance, and other fees, returns in  kind and other amounts derived from the investment; 
proceeds from total or partial sale or liquidation of the investment; payments made pursuant to expropriation and compensation; and payments arisin g from the settlement of disputes. 
42 These relate to bankruptcy, insolvency or the protecti on of creditors' rights; administrative or judicial 
definitive resolutions; non-fulfilment to reports of tr ansfers of currency or other monetary instruments; 
ensuring satisfaction of judgements and arbitral awards in adjudicatory proceedings; or issuing, trading or 
dealing in securities. 
43 The Administrative Commission is composed of the officials referred to Annex 17.01 or of the persons 
designated by them. WT/REG297/1/Rev.1 
 
- 37 - 
 
  implementations of the Agreement. It shall establish its rules and procedures and will take all 
decisions by consensus. The Commission will convene at least once a year (regular sessions) and if requested by one of the Parties (extraordinary sessions). Article 17.02 establishes the Administrative Sub-commission of the Agreement,
44 inter alia , to prepare and revise technical 
documents, follow-up the decisions taken by the Commission, supervise the committees. The 
Sub-commission shall also establish its rules and procedures. 
5.11.  Concerning Committees (Article 17.05), the Commission may create committees other than 
those established in Annex 17.05.45 A committee or sub-committee may create ad hoc groups of 
experts for completing technical studies necessary to fulfil its mandate (Article 17.06).  
5.6  Dispute settlement 5.12.  Chapter 18 of the Agreement deals with dispute settlement in general, while Section C of 
Chapter 10 (on investment) deals with disputes between investors and states. 
5.13.  The scope of Chapter 18 is disputes betw een the Parties regarding the interpretation or 
application of the Agreement. The Chapter provides for forum selection, whereby the complaining 
Party chooses either the Agreement or the WTO as a forum. The forum chosen shall be used to the 
exclusion of the other (Article 18.03). 
5.14.  A Party may request in writing consultations (Article 18.05) with the other Party concerning 
any actual or proposed measure it considers might affect the operation of the Agreement. The 
Parties shall make every effort to reach an agreed solution. Technical consultations in the ambit of SPS and standards and metrology, shall constitute the consultations foreseen under Article 18.05, if the Parties so agree (Article 8.11 and 9.12 respec tively). If the consultations fail to resolve the 
dispute within 30 days (15 days in case of urgency if the dispute concerns perishable goods
46) the 
Parties may refer the matter to the Commission which shall convene within ten days. The Commission may call on technical advisers or create  expert groups as necessary, resort to goods 
offices, conciliation, mediation or other dispute resolution procedures, or make recommendations 
(Article 18.06). 
5.15.  A Party that requested a meeting of the Commission
47 may request the establishment of an 
arbitral panel (Article 18.07) to consider the matter. However, no Party shall invoke Article 18.07 
before the application of a safeguard measure by the other Party (Article 6.05). The arbitral panel which is composed of three members is selected from a list of 20 potential arbitrators set up by the Parties (Articles 18.08 and 18.10).
48 The Parties shall endeavour to agree on the designation of 
the chair of the arbitral panel within 15 days of receipt of the request. If the Parties cannot agree, 
the chair shall be chosen by drawing lot from the roster of panellists of non-parties, following which each Party shall select a panellist within an additional 15 days. The Model Rules of Procedure 
(Article 18.11) of the panel include the right of  a hearing by the panel and an opportunity to 
provide initial written submissions and rebuttals, whose subject is to be confidential. 
5.16.  The panel is to present its preliminary report to the Parties, within 90 days after the last 
panellist has been selected, containing findings  of fact, its decision, recommendations and the 
time-frame for the implementation of the report. Th e final report (Article 18.14) is to be presented 
                                               
44 The Administrative Sub-commission is composed of the officials referred to Annex 17.02 or of the 
persons designat ed by them. 
45 Committees:  Committee on Trade in Goods (Artic le 3.15); Committee on Sanitary and Phytosanitary 
Measures (Article 8.12); Committee on Standards, Metr ology and Authorization Procedures (Article 9.13); 
Committee on Investment and Cross Border Trade in Services (Article 11.13); Air Transportation Committee (Article 13.04); Committee of Maritime Transportation (Article 14.04); Intellectual Property Committee (Article 15.17); Ministerial Co-operation Committee (Article 20.17). 
46 Perishable goods means perishable agricultural and fish goods classified in chapters 1 through 24 of 
the Harmonized System. 
47 A request for a meeting of the Commission shall no t be understood as a preliminary step needed to 
request the establishment of an arbitral panel. 
48 Within three months of the date of entry into force of the Agreement, the Parties shall establish and 
maintain a roster of up to twenty individuals with the required qualifications to serve as panellists. Said roster 
shall be composed of the "Roster of panellists of the Parties" and the "Roster of the panellists of non-Party 
countries".  Each Party may designate five national panell ists to form the Roster of the Parties and 5 panellists 
of non-Party countries to form de  Roster of non-Party Countries. WT/REG297/1/Rev.1 
 
- 38 - 
 
  to the Parties within 30 days of the preliminary report, unless the Parties agree otherwise. The 
final report shall be compulsory for the Parties to implement under the terms and conditions specified in it. The term of implementation shall not exceed six months (Article 18.15). 
5.17.  Unless the Parties notify the Commission of their agreement to the final report within 
15 days after expiration of the timeframe determ ined by the arbitral panel, the panel shall 
determine if the Party complained against has conformed to the report. If this is not the case the complaining Party may suspend benefits in accordance with the provisions of Article 18.16. Once 
benefits have been suspended, the Parties, upon request of a Party, shall establish an arbitral 
panel for determining if the final report has been enforced, or if the level of benefits suspended by the complaining Party is excessive. When the panel is composed of the same panellists who resolved the dispute, it shall submit its final report within 30 days from the request, otherwise 
within 60 days. When the Party complained against cannot comply with the final report, within 
30 days, it may request consultations with the complaining Party to reach an agreement on alternative compensation measures. Failing such an agreement, the complaining Party my suspend 
benefits to the extent necessary to persuade the Party complained against to comply with the final 
report, taking into account the difference in the development levels of the Parties. WT/REG297/1/Rev.1 
 
- 39 - 
 
  5.18.  The steps to be taken in the dispute settlement process are described in Chart 5.1. below: 
Chart 5.1 Agreement specific Dispute Settlement Mechanism 
 
 
 
 
  Consultations  
(Art. 18.05 ) 
Commission 
(convenes within 10 days) 
(Art. 18.06) Alternative methods of dispute 
resolution (i.e. good offices, 
conciliation, mediation ) (Art. 18.06 ) 
Request for establishment of a 
Panel (Art. 18.07)  
Preliminary Report  
(Art. 18.13) 
Final Report 
(Art. 18.14 ) 
Implementation 
(Art.18.15) Non-compliance  
Suspension of 
benefits  (Art. 18.16.2) 30 days 30 days 
(15 days for perishable goods) 
30 days 
(15 days for 
perishable 
goods) 
Panel composition  
(Art. 18.10)  30 da ys 
90 da ys 
30 da ys 
6 months 
Compensation  
(Art. 18.16.7) 
Suspension of 
benefits   
(Art. 18.16) 30 days 
 6 months + 15 da ys 
Panel ruling on 
compliance or level 
of suspension  
Report issued  60 (30) days - if 
same 
 Publication  
(Art. 18.14) 15 days Comments of Parties  WT/REG297/1/Rev.1 
 
- 40 - 
 
  5.19.  Section B of this Chapter deals with Domestic Proceedings and Settlement of Private 
Commercial Disputes. If an issue of interpretation or application arises in any domestic judicial or administrative proceedings or if a court or administrative body solicits the views of a Party, the Party shall notify the other Party. The Commission shall endeavour to agree on an appropriate 
response. The Party in whose territory the court is located shall submit any agreed interpretation 
of the Commission in accordance with the rules of that forum and if the Commission does not agree upon an interpretation or responses, a Party may submit its own views (Article 18.17). 
Concerning private rights, no Party may provide for a right of action under its domestic law against 
the other Party on the grounds that a measure is inconsistent with the Agreement. Finally, the Parties shall encourage and facilitate the use of arbitration and other means of alternative dispute resolutions between private parties. To this end,  each Party shall provide appropriate procedures 
to arbitrate and for the recognition and enfo rcement of arbitral awards (Article 18.19).
49 The 
Commission may establish an Advisory Committee on Private Commercial Disputes comprising persons with expertise in this field. 
5.7  Relationship with other agreements concluded by the Parties 
5.20.  The Agreement's relationship with other agreements concluded by the Parties is defined in 
Article 1.03 where the Parties reaffirm their rights and obligations with respect to each other under 
the WTO Agreement and other agreements to which they are parties. In case of any inconsistency 
between the Agreement and the WTO Agreement an d other agreements to which the Parties are 
party, the Agreement prevails, unless otherwise agreed. However if there are inconsistencies between the Agreement and the specific trade obligations set forth in: i) the Convention on 
International Trade in Endangered Species of Wild Fauna and Flora (CITES); ii) the Montreal 
Protocol on Substances that Deplete the Ozone Layer; or (iii) the Basel Convention on the Control of Trans-boundary Movements of Hazardous Wast es and Their Disposal, these three agreements 
prevail, provided that where the Parties have a choice equally effective and reasonably available 
means of complying with obligations, they comply with their obligations in the manner that is least inconsistent with the other provisions of the Agreement.  
Table 5.1 Guatemala and Chinese Taipei: Pa rticipation in other RTAs (notified and 
non-notified in force), as of 18 March 2013
 
Partner / Agreement Date of 
entry 
into 
force Type of 
agreement GATT/WTO Notification 
Year WTO Provision 
GUATEMALA 
European Union-Central America a Goods & Services 2013 GATT Art. XXIV & GATS Art. V 
Chile (Chile-Central America) 23.03.10 Goods & Services 2012 GATT Art. XXIV & GATS Art. V 
Colombia (Colombia-Northern 
Triangle) 12.11.09 Goods & Services 2012 GATT Art. XXIV & GATS Art. V 
DR-CAFTA 01.07.06 Goods & Services 2006 GATT Art. XXIV & GATS Art. V 
Dominican Republic-Central 
America 15.10.01 Goods & Services 2012 GATT Art. XXIV & GATS Art. V 
Mexico (Mexico-Northern 
Triangle) 15.03.01 Goods & Services 2006 GATT Art. XXIV & GATS Art. V 
CACM 04.06.61 Goods 1961 GATT Art. XXIV 
Panama (Panama-Central 
America) 20.06.09 Goods & Services Not notified 
Cuba (LAIA, AAP.A25TM N°36) 18.05.01 Goods Not notified 
CHINESE TAIPEI  
Honduras - El Salvador b Goods & Services 2010 GATT Art. XXIV & GATS Art. V 
Nicaragua 01.01.08 Goods & Services 2009 GATT Art. XXIV & GATS Art. V 
                                               
49 Chinese Taipei has indicated that "in order ensure  recognition and enforcement of arbitral awards, 
Chapters 4 and 7 of the Arbitration Law of Chinese Taip ei have specific regulation s on domestic and foreign 
arbitral awards". WT/REG297/1/Rev.1 
 
- 41 - 
 
  Partner / Agreement Date of 
entry 
into 
force Type of 
agreement GATT/WTO Notification 
Year WTO Provision 
Panama 01.01.04 Goods & Services 2009 GATT Art. XXIV & GATS Art. V 
The Cross-Straits ECFA 12.09.10 Goods & Services Not notified 
 
a  Provisional application of the Agreement by all si gnatory parties is expected in the course of the 
 second quarter 2013. 
b  Entry into force between El Salvador and Chinese Taipei: 1 March 2008 and between Honduras 
 and Chinese Taipei: 15 July 2008. 
 DR-CAFTA: Dominican Republic - Central America - United States Free Trade Agreement. CACM:   Central American Common Market. ECFA:   The Cross-Straits Economic Co-operation Framework Agreement. 
 Note:  For those agreements negotiated under the LA IA framework, the LAIA re ference is included in 
 brackets. Details of these agreements can be found at: http://www.aladi.org . 
 
Source:  WTO Secretariat.  
5.8  Government procurement 
5.21.  There are no government procurement provisions in the Agreement. 
5.9  Intellectual property rights 5.22.  Chapter 15, governing intellectual property rights, applies to geographical indications, 
traditional knowledge, folklore and access to geneti c resources. In Article 15.01 the Parties confirm 
the protection of intellectual property rights included in the WTO Agreement on Trade-related 
Aspects of Intellectual Property Rights (TRIPS) and agree to establish measures for adequate and effective protection according to international regulations on this matter. 
5.23.  In Article 15.02, on geographical indications, the Parties undertake to initiate consultations 
within two years to protect and/or recognize the geographical indications of both Parties in the terms set out in Articles 23 and 24 of the TRIPS Agreement. The Parties shall provide measures to 
prevent imports, manufacture or sale of good s that use a notified protected geographical 
indication.
50 
5.24.  Collective intellectual property rights and the traditional knowledge of indigenous people 
regarding their creations that are commercially used shall be protected through a special system of 
registering, promoting, and marketing these rights . Each Party recognizes that cultural heritage 
comprises customs, traditions, beliefs, spirituality, religiosity, cosmos vision, folklore expressions, 
artistic manifestations, traditional skills and any other form of traditional expression of the 
indigenous peoples and local communities. Cultural heritage will not be subject to any form of 
exclusivity by unauthorized third parties who apply the IP system, unless the request is made by the indigenous and local communities or by a thir d party authorized by them (Article 15.03). The 
Parties shall also ensure the protection of folkloric expressions and artistic manifestations of the 
traditional and popular culture. 
5.25.  Each Party shall protect access to its gene tic resources and traditional knowledge developed 
by its indigenous peoples and local communities on the uses of its biological resources containing 
such genetic resources, against the indiscriminate use of biological resources, as well as ensuring 
participation in the benefits derived from the use of its genetic resources (Article 15.05). 
                                               
50 For purposes of labelling, Chinese Taipei recogn izes coffee as a distinctive product of Guatemala, 
especially coffee from the regions of Antigua, Huehue tenango, Cobán, San Marcos, Oriente, Atitlán and 
Fraijanes. Therefore, Chinese Taipei will not perm it the commercialization and sale of any product as 
Guatemalan coffee, particularly from these regions, unless these products have been manufactured with 
originating coffee from Guatemala or  the regions mentioned above. WT/REG297/1/Rev.1 
 
- 42 - 
 
  5.26.  The Intellectual Property Committee was established as set out in Annex15.07 to discuss 
matters relating to intellectual property under the Agreement (Article 15.07). Article 15.09 foresees technical co-operation between the Parties on issues relating to intellectual property and 
in the areas of newly developed intellectual property issues. The Parties shall notify the Intellectual 
Property Committee their laws, regulations and procedures in respect to IP rights (Article 15.06). 
They shall publish judicial decisi ons and administrative ruling of general application so that the 
Parties and right holders become acquainted with them. 
5.10  Cooperation 
5.27.  Chapter 20 contains guidelines according to which the Parties shall strengthen the 
co-operation relationship between them. The Parties may develop and initiate cooperation activities in the following sectors: Commerce an d Industry; Small and Medium Enterprises; Export 
Opportunities; Tourism; Environment and Natural Resources; Energy; Transportation; Agriculture 
and Rural sectors and Phytosanitary Standards; an d Technical Barriers to Trade. To this end the 
Parties established a Co-operation Committee (Article 20.17). WT/REG297/1/Rev.1 
 
- 43 - 
 
  ANNEX 1 
MARKET ACCESS INDICATORS 
1. Tables A1.1, A1.2, A1.3 and A1.4 show the Parties' tariff elimination schedule for all 
products, for agricultural and for non-agricultural products. 
2. In 2006, Guatemala's average applied preferenti al tariff on imports from Chinese Taipei was 
3.8%, compared to the MFN rate of 5.7% after th e entry into force of the Agreement. The average 
applied tariff for agricultural products from Chinese Taipei fell from 10.1% to 7.6% and that for 
non-agricultural products, from 5.0% to 3.2%, gi ving exporters from Chinese Taipei an average 
margin of preference of 24.7% and 36% respectively vis-à-vis  the prevailing MFN tariff. The share 
of Guatemala's duty-free lines rose from 48.9% to 64.9%, with duty-free lines for agricultural 
products increasing from 22.6% to 44.6% and to  a lesser extent for non-agricultural products, 
from 53.2% to 68.2%, when the Agreement en tered into force. Following ten years of 
implementation in 2015, Guatemala's overall share of duty free lines for imports from Chinese 
Taipei will be 67.8%, of which 57.9% for agricultural products and 69.4% for non-agricultural 
products. By the end of the implementation period in 2020, 73.6% of its tariffs will be duty free for 
imports from Chinese Taipei, of which 71,4% for agricultural products and 72.7% for non-agricultural products. 
Table A1.1 Guatemala: Indicators of MFN tari ff rates and preferential rates for imports 
from Chinese Taipei
 
Origin of 
goods Year ALL PRODUCTS Agricultural products a Non-agricultural products 
Average applied 
tariff Share of 
duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share of 
duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share of 
duty-
free 
tariff 
lines 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) 
MFN 2006 5.7 11.1 48.9 10.1 13.0 22.6 5.0 10.6 53.2 
Chinese  2006 3.8 10.9 64.9 7.6 13.7 44.6 3.2 10.2 68.2 
Taipei 2007 3.8 10.7 64.9 7.3 13.1 44.6 3.2 10.0 68.2 
 2008 3.7 10.5 64.9 7.0 12.5 44.6 3.1 9.9 68.2 
 2009 3.6 10.3 64.9 6.6 12.0 44.6 3.1 9.8 68.2 
 2010 3.5 10.1 65.3 6.3 11.4 44.7 3.1 9.8 68.6 
 2011 3.4 9.9 65.3 6.0 10.8 44.7 3.0 9.6 68.6 
 2012 3.4 9.7 65.3 5.7 10.2 44.7 3.0 9.5 68.6 
 2013 3.3 9.5 65.3 5.3 9.6 44.7 3.0 9.4 68.6 
 2014 3.2 9.2 65.3 5.0 9.1 44.7 2.9 9.3 68.6 
 2015 3.1 9.7 67.8 4.7 11.1 57.9 2.9 9.4 69.4 
 2016 3.1 9.6 67.8 4.5 10.8 57.9 2.8 9.3 69.4 
 2017 3.0 9.4 67.8 4.4 10.4 57.9 2.8 9.2 69.4 
 2018 3.0 9.3 67.8 4.3 10.1 57.9 2.8 9.1 69.4 
 2019 3.0 9.2 67.8 4.1 9.8 57.9 2.8 9.0 69.4 
 2020 2.9 11.0 73.6 3.9 13.8 71.4 2.7 10.5 74.0 
a WTO Definition. 
 Based on the HS 2007 nomenclature.  Source: WTO Secretariat estimates based on data provided by Guatemala.  
3. In 2006, Chinese Taipei's average applied MFN rate was 6.2%; following the entry into force 
of the Agreement the average applied tariff for imports from Guatemala fell to 4.3%. The average 
applied tariff for agricultural products from Guatemala was reduced from 13.3% to 11.0% and from 5.0% to 3.1% for non-agricultural products. The tariff for agricultural products was more 
than three times higher than that for non-agricultural products. As a result of the Agreement 
Guatemalan exporters enjoyed a relati ve margin of preference of 17.3% vis-à-vis  the prevailing 
MFN tariff for agricultural products and 38.0% for non-agricultural products. The share of duty-free 
lines applicable to imports from Guatemala rose from 31.3% on an MFN basis to 63.9% (from 
23.6% to 44.4% for agricultural products and from 32.8% to 67.7% for non-agricultural products). Following ten years of implementation in 2015 the share of duty free lines will have 
increased to 92.8%, of which 62.9% for agricultural products and 98.5% for non-agricultural 
products. By 2020, at the end of the implementa tion period the share, of duty-free lines for WT/REG297/1/Rev.1 
 
- 44 - 
 
  imports from Guatemala is expected to rise to 97.4%, of which 87.7% for agricultural products 
and 99.3% for non-agricultural products. 
Table A1.2 Chinese Taipei: Indicators of MFN tariff rates and preferential rates for 
imports from Guatemala  
Origin of 
goods Year ALL PRODUCTS Agricultural products a Non-agricultural products 
Average applied 
tariff Share of 
duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share of 
duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share of 
duty-
free 
tariff 
lines 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) 
MFN 2006 6.2 9.1 31.3 13.3 17.7 23.6 5.0 7.4 32.8 
Guatemala 2006 4.3 12.2 63.9 11.0 20.9 44.4 3.1 9.7 67.7 
 2007 3.8 10.6 63.9 10.2 19.4 44.4 2.6 8.0 67.7 
 2008 3.1 8.9 63.9 9.4 17.9 44.4 2.0 6.3 67.7 
 2009 2.7 7.5 64.0 8.7 16.4 44.4 1.6 4.9 67.7 
 2010 2.2 10.8 79.0 7.9 16.5 48.9 1.2 7.6 84.7 
 2011 1.9 9.5 79.0 7.3 15.2 48.9 0.9 6.2 84.7 
 2012 1.7 8.2 79.0 6.7 13.9 48.9 0.8 5.0 84.7 
 2013 1.4 7.0 79.0 6.1 12.6 48.9 0.6 3.9 84.7 
 2014 1.2 5.8 79.0 5.4 11.3 48.9 0.4 2.7 84.7 
 2015 0.9 14.3 92.8 4.8 14.0 62.9 0.2 15.7 98.5 
 2016 0.9 13.2 92.8 4.3 12.8 62.9 0.2 14.9 98.5 
 2017 0.8 12.1 92.8 3.9 11.6 62.9 0.2 14.0 98.5 
 2018 0.7 10.9 92.8 3.5 10.4 62.9 0.2 13.1 98.5 
 2019 0.6 9.8 92.8 3.1 9.2 62.9 0.2 12.3 98.5 
 2020 0.6 31.1 97.4 2.7 34.4 87.7 0.2 24.4 99.3 
a WTO Definition. 
 Note: Based on the HS 2002 nomenclature; for tariff lines subject to TRQs only the out-of-quota duties are 
included in the tariff-related calculations. 
 Source: WTO Secretariat estimates based on data provided by Chinese Taipei. 
 
4. Table A1.3 shows market access opportunities for Chinese Taipei's top 25 exports to 
Guatemala. These exports accounted for 43.3% of  its global exports in 2003-2005 and covered 81 
tariff lines. At the time the Agreement entered into force 68 tariff lines covering 29.8% of global 
exports were already duty free on a MFN basis.  Following entry into force of the Agreement 
Guatemala liberalized 5 tariff lines in 2006. One additional tariff line will be liberalized by 2015 and 
another by 2020. As a result, for Chinese Taipei 's 25 top exports to Guatemala, six tariff 
(Petroleum oils and oils obtained from bituminous minerals (other than crude) and preparations not elsewhere specified or included, other than waste oils and light oils and preparations; and Articles of plastics and articles of other materials of headings 39.01 to 39.14, n.e.s. in Chapter 39) 
lines covering 3% of its global exports will re main dutiable at the end of the implementation 
period. 
Table A1.3 Guatemala: Market access opportunities under the Agreement for 
Chinese Taipei's top 25 exports
 
Chinese Taipei's top export products in 2003-
2005 Access Conditions to Guatemala's import 
markets 
MFN (2006)  Duty-free 
in Remain 
Dutiable  HS number and description of the 
product Share in 
global 
exports 
(%) Average 
MFN 
applied 
rate 
(%) No. of tariff 
lines 
Duty-
free Dutiable  
2006 
2015 
2020 
847330 - parts and accessories of the 
machines of heading 84.71 5.4 0.0 1      
901380 - other devices, appliances and 
instruments 3.7 0.0 1      
854231 -- processors and controllers, 
whether or not combined with memories, converters, logic circuits, amplifiers, clock and timing circuits, or other circuits 3.3 0.0 6      WT/REG297/1/Rev.1 
 
- 45 - 
 
  Chinese Taipei's top export products in 2003-
2005 Access Conditions to Guatemala's import 
markets 
MFN (2006)  Duty-free 
in Remain 
Dutiable  HS number and description of the 
product Share in 
global 
exports 
(%) Average 
MFN 
applied 
rate 
(%) No. of tariff 
lines 
Duty-
free Dutiable  
2006 
2015 
2020 
854232 -- memories 3.3 0.0 6      
854233 -- amplifiers 3.3 0.0 6      
854239 -- other 3.3 0.0 6      
847130 - portable automatic data 
processing machines, weighing not more than 10 kg, consisting of a least a central processing unit, a keyboard and a display 2.4 0.0 1      
853400 Printed circuits. 2.3 0.0 1      
271019 Petroleum oils and oils obtained 
from bituminous minerals (other than crude) and preparations not elsewhere specified or included, containing by weight 70 %/more of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, other than waste oils and light oils and preparations 2.2 2.7 9 4 3   1 
853120 - indicator panels incorporating 
liquid crystal devices (lcd) or light 
emitting diodes (led) 1.8 0.0 1      
901390 - parts and accessories 1.3 0.0 1      
847160 - input or output units, whether 
or not containing storage units in 
the same housing 1.1 0.0 1      
852990 - other 1.0 0.0 2      
870899 -- other 1.0 10.0  1  1   
851762 -- machines for the reception, 
conversion and transmission or regeneration of vo ice, images or 
other data, including switching and routing apparatus 0.9 0.0 1      
847350 - parts and accessories equally 
suitable for use with machines of 
two or more of the headings 
84.69 to 84.72 0.9 0.0 1      
851761 -- base stations 0.9 0.0 4      
390330 - acrylonitrile-butadiene-styrene 
(abs) copolymers 0.8 0.0 1      
271011 -- light oils and preparations 0.8 2.1 5 2 2    
392690 Articles of plastics and articles of 
other materials of headings 39.01 
to 39.14, n.e.s. in Chapter 39 0.8 3.5 5 5    5 
291736 -- terephthalic acid and its salts 0.7 0.0 1      
854140 - photosensitive semiconductor 
devices, including photovoltaic 
cells whether or not assembled in 
modules or made up into panels; 
light emitting diodes 0.7 0.0 1      
850440 - static converters 0.7 0.0 1      
731815 -- other screws and bolts, 
whether or not with their nuts or 
washers 0.6 5.0  1   1  
852340 - optical media 0.6 0.0 6      
Total of above 43.3  68 13 5 1 1 6 
Note: Based on HS 2007 nomenclature. 
 
Source: WTO estimates based on data provided  by Guatemala and UNSD, Comtrade database. WT/REG297/1/Rev.1 
 
- 46 - 
 
  5. Table A1.4 shows the market access conditio ns in Chinese Taipei for Guatemala's top 
25 exports. Guatemala's top 25 exports accounted for 52.6% of its global exports and covered 
79 tariff lines of which 29 were already duty-free on an MFN basis in 2003-2005. On entry into force of the Agreement in 2006, 21 additional tariff  lines became duty-free. Of the remaining 29 
dutiable tariff lines, 9 became duty-free by 20 10, 15 are to become duty-free in 2015 and 2 more 
in 2020. At the end of the implementation period 3 tariff lines (Bananas, including plantains, fresh or dried; cane sugar; and prepared foods by the swelling or roasting of cereals or cereal products) 
will remain dutiable. 
Table A1.4 Chinese Taipei: Market acce ss opportunities under the agreement for 
Guatemala's top 25 exports
 
Guatemala's top export products in 2003-2005 Access Conditions to Chinese Taipei's import 
markets 
MFN (2006)  Duty-free in 
Remain Dutiable HS number and description of the 
product Share in 
global 
exports 
(%) Average 
MFN 
applied 
rate 
(%) No. of 
tariff 
lines Duty-free 
Dutiable 
2006 
2009 
2010 
2015 
2020 
090111 Not decaffeinated 10.0 0.0 1        
080300 Bananas, including plantains, 
fresh or dried. 6.8 106.8  1      1 
170111 Cane sugar 5.8 6.3  1      1 
270900 Petroleum oils and oils 
obtained from bituminous 
minerals, crude. 5.3 1.3 1 1 1      
610610 Of cotton 5.0 10.5  1    1   
300490 Medicaments (excluding 
30.02/30.05/ 30.06 ) 
consisting of mixed/unmixed 
products 2.3 1.5 12 1     1  
090830 Cardamoms 2.0 0.0 3        
620342 Of cotton 1.6 11.3  2    2   
620462 Of cotton 1.6 11.3  2    2   
400122 Technically specified natural 
rubber (tsnr) 1.0 0.0 1        
610510 Of cotton 1.0 10.5  1    1   
220210 Waters, including mineral 
waters and aerated waters, 
containing added sugar or 
other sweetening matter or 
flavoured 0.9 10.0  1    1   
850610 Manganese dioxide 0.9 3.8 1 3 1  2    
190410 Prepared foods obtained by 
the swelling or roasting of 
cereals or cereal products 0.8 20.0  2    1  1 
330610 Dentifrices 0.8 0.0 3        
620463 Of synthetic fibres 0.8 12.0  2    2   
300450 Other medicaments containing 
vitamins or other products of heading 29.36 0.8 0.0 1        
210410 Soups and broths and 
preparations therefor 0.8 11.3  4    3 1  
380830 Herbicides, anti-sprouting 
products and plant-growth regulators 0.7 2.1 1 4 4      
151110 Crude oil 0.7 0.0 1        
721041 Corrugated 0.6 0.0 1        
271019 Petroleum oils and oils 
obtained from bituminous 
minerals (excluding crude) and 
other preparations 0.6 4.4 3 15 11 2 2    WT/REG297/1/Rev.1 
 
- 47 - 
 
  Guatemala's top export products in 2003-2005 Access Conditions to Chinese Taipei's import 
markets 
MFN (2006)  Duty-free in 
Remain Dutiable HS number and description of the 
product Share in 
global 
exports 
(%) Average 
MFN 
applied 
rate 
(%) No. of 
tariff 
lines Duty-free 
Dutiable 
2006 
2009 
2010 
2015 
2020 
080719 Melons (excluding 
watermelons), fresh 0.6 25.0  2 1   1   
380810 Insecticides 0.6 4.6  6 3  3    
120740 Sesamum seeds whether or 
not broken 0.6 12.0  1    1   
Total of above 52.6  29 50 21 2 7 15 2 3 
 
Note: Based on HS 2002 nomenclature.  Source: WTO estimates based on data provided by  Chinese Taipei and UNSD, Comtrade database. WT/REG297/1/Rev.1 
 
- 48 - 
 
  ANNEX 2 
TARIFF-RATE QUOTAS UNDER THE AGREEMENT 
Table A2.1 Tariff rate quotas maintained  by Chinese Taipei under the Agreement  
Goods Tariff Classification of China 
(Taiwan) Tariff Classification of 
Guatemala MFN (out of quota) 
tariff rate  
Raw Sugar 1701.11.00 
1701.91.10 1701.11.00 6.25% 
Refined Sugar 1701.91.20 
1701.99.10 
1701.99.20 
1701.99.90 1701.91.00 
1701.99.00 17.5% 
 
Source: Annex 3.04 of the Agreement, Chinese Taipei's Tariff Reduction Schedule. 
 
__________