WT/REG283/1/Rev.1  
5 August 2013  
(13-4179)  Page: 1/59  
Committee on Regional Trade Agreements   
 
  FACTUAL PRESENTATION 
FREE TRADE AGREEMENT BETWEEN EL SALVADOR, HONDURAS 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 
El Salvador, Honduras 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. Pamela Ugaz (tel: +41 22 739 6418). Any statistical questions arising from 
this report may be addressed to Ms. Rowena Cabos (tel: +41 22 739 5185). 
 
 WT/REG283/1/Rev.1 
 
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  TABLE OF CONTENTS 
Page 
1   TRADE ENVIRONMENT ................................................................................................. 4  
1.1   Merchand ise trade ..................................................................................................... 4  
1.2   Trade in servic es and inve stment ................................................................................. 8  
1.2.1   Trade in Services .................................................................................................... 8 
1.2.2   Foreign Direct Investment ........................................................................................ 8  
2   CHARACTERISTIC ELEMEN TS OF THE AG REEMENT .................................................... 10  
2.1   Background  Information ............................................................................................ 10 
3   PROVISIONS ON TRADE IN GOODS ........................................................................... 11  
3.1   Import duties and charges,  and quantitative  restrict ions ................................................ 11 
3.1.1   Genera l provisions ................................................................................................. 11 
3.1.2   Liberalization of  trade and ta riff lines ........................................................................ 12 
3.1.3   Liberali zation schedule............................................................................................ 14 
3.1.3.1   El Salvador ........................................................................................................ 14 
3.1.3.2   Honduras ........................................................................................................... 16 
3.1.3.3   Chinese Taipei .................................................................................................... 17 
3.1.4   Tariff rate quotas ................................................................................................... 19 
3.2   Rules of origin and related custom procedures .............................................................. 19 
3.2.1   Rules of origin .......................................................................................................  19 
3.2.2   Customs procedures ............................................................................................... 21 
3.3   Export duties and charges,  and quantitative  restrictions ................................................. 21 
3.4   Regulatory provisions on trade in goods ....................................................................... 22 
3.4.1   Standards ............................................................................................................. 22 
3.4.1.1   Sanitary and phytosanitary measures .................................................................... 22 
3.4.1.2   Technical barriers to trade .................................................................................... 22 
3.4.2   Safeguard mechanisms ........................................................................................... 23 
3.4.2.1   Global safeguards ............................................................................................... 23 
3.4.2.2   Bilateral safeguards ............................................................................................. 23 
3.4.2.3   Special sa feguard me asures ................................................................................. 24 
3.4.2.4   Balance of payments safeguards ........................................................................... 24 
3.4.3   Anti-dumping and countervailing measures ............................................................... 24 
3.4.4   Subsidie s and State-aid .......................................................................................... 25 
3.4.4.1   Dome stic support ................................................................................................ 25 
3.4.4.2   Export subsidies.................................................................................................. 25 
3.4.5   Other regulations ................................................................................................... 25 
4   PROVISIONS ON TRADE IN SERVICES AND IN VESTMENT ......................................... 25  
4.1   Scope and definitions ................................................................................................ 25 
4.1.1   Cross-border trade in services ................................................................................. 25 
4.1.2   In vestme nts.......................................................................................................... 26 WT/REG283/1/Rev.1 
 
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  4.2   Denial of benefits ..................................................................................................... 27 
4.3   General provisions on trade in services and investment .................................................. 27 
4.3.1   Mark et acce ss ....................................................................................................... 27 
4.3.2   National and MFN tr eatment .................................................................................... 27 
4.3.3   Local (Commercial) presence ................................................................................... 28 
4.3.4   Performanc e requirements ...................................................................................... 28 
4.3.5   Senior management and boards of  direct ors .............................................................. 28 
4.3.6   Other investment -related pr ovisions ......................................................................... 28 
4.3.7   Movement of  natural persons .................................................................................. 29 
4.4   Liberalization commitments in trade in services and investment ...................................... 30 
4.4.1   Chinese Taipei ....................................................................................................... 31 
4.4.1.1   Horizont al commit ments ...................................................................................... 31 
4.4.1.2   Sector-spe cific commitments ................................................................................ 31 
4.4.2   El Salvad or ...........................................................................................................  34 
4.4.2.1   Horizont al commit ments ...................................................................................... 34 
4.4.2.2   Sector-spe cific commitments ................................................................................ 34 
4.4.3   Honduras .............................................................................................................. 37 
4.4.3.1   Horizont al commit ments ...................................................................................... 37 
4.4.3.2   Sector-spe cific commitments ................................................................................ 37 
4.5   Regulatory provisions ................................................................................................ 40 
4.5.1   Domestic regulation ............................................................................................... 40 
4.5.2   Recognition ........................................................................................................... 41 
4.5.3   Subsidies .............................................................................................................. 41 
4.5.4   Safeguards ........................................................................................................... 41 
4.5.5   Other ................................................................................................................. .. 41 
5   GENERAL PROVISIONS  OF THE AGREEMENT ............................................................. 41  
5.1   Tran sparency ........................................................................................................... 41 
5.2   Current payments and capital movements .................................................................... 42 
5.3   Exceptions ............................................................................................................... 42 
5.4   Accession and Withdrawal .......................................................................................... 42 
5.5   Institutio nal framework ............................................................................................. 42 
5.6   Disput e settlement ................................................................................................... 44 
5.7   Relationship with other agr eements concluded by the Parties .......................................... 47 
5.8   Government  procurement .......................................................................................... 48 
5.9   Intellectual property rights ......................................................................................... 48 
5.10   Coop eration ........................................................................................................... 48 
ANNEX 1 ....................................................................................................................... . 49 
ANNEX 2 ....................................................................................................................... . 58 
ANNEX 3 ....................................................................................................................... . 59 WT/REG283/1/Rev.1 
 
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Key Facts 
 
Parties to the Agreement:  El Salvador, Honduras and the Separate Customs 
 Territory of Taiwan, Penghu, Kinmen and Matsu 
 
Date of Signature:    07 May 2007. 
 
Date of Entry into Force:  El Salvador and the Separate Customs Territory of 
 Taiwan, Penghu, Kinmen and Matsu: 1 March 2008  
 Honduras and the Separate Customs Territory of 
 Taiwan, Penghu, Kinmen and Matsu: 15 July 2008. 
 
Date of Notification:    06 April 2010. 
 
Full implementation:   1 January 2027 
 
 
1  TRADE ENVIRONMENT 
1.1.  The Free Trade Agreement (hereinafter refe rred to as "the Agreement") between Honduras - 
El Salvador and the Separate Customs Terri tory of Taiwan, Penghu, Kinmen and Matsu 
(hereinafter referred to as "Chinese Taipei") is Honduras' fifth and El Salvador's sixth RTA, 
whereas the Agreement is Chinese Taipei's third RTA as notified to the WTO.1 
1.2.  In 2011, El Salvador's GDP, with a population of 6.2 million, was estimated at US$23 billion; 
while Honduras' GDP, with a population of 7.8 million, amounted to US$17.3 billion. Chinese 
Taipei's GDP, with a population of 23.2 million, accounts for US$ 466.5 billion, about twelve times 
bigger than the GDP of El Salvador and Honduras together. 
1.1  Merchandise trade 
1.3.  Charts 1.1-1.2 show El Salvador and Hond uras's global and bilateral trade relations with 
Chinese Taipei and Chart 1.3 shows Chinese Taipei's  global and bilateral trade relations with the 
other two Parties. El Salvador's total exports and imports, which almost doubled between 2000 
and 2008, amounting to US$4.6 billion and US$9.8 billion respectively in 2008. In 2009, exports 
and imports fell sharply, but picked up in 2010 to reach US$4.5 billion and US$8.5 billion 
respectively. During this period, El Salvador had a global trade deficit ranging from US$2 billion in 
2000 to US$4.7 billion in 2011. In their bilateral relations, El Salvador has run a constant deficit in 
its merchandise trade with Chinese Taipei during the last decade. In 2011, exports to Chinese Taipei accounted for US$33.4 billion, while imports were about four times greater at 
US$139.8 billion. 
1.4.  According to Chart 1.2, Honduras' total imports tripled between 2000 and 2008 from 
US$2.5 billion to US$8.3 billion whereas total exports also increased, albeit at lower level resulting in a widening trade deficit. In 2009, both expo rts and imports sharply declined amounting to 
US$.2.6 billion and US$6 billion respectively. As fo r bilateral trade, Honduras also ran a constant 
and wide deficit in its trade with Chinese Taipei, ranging from US$4.8 million in 2000 to US$28.5 million in 2009. 
1.5.  Chinese Taipei has maintained a trade surplus in global terms with exports and imports rising 
between 2000 (US$148.3 billion and US$140 billion  respectively) and 2011 (US$307 billion and 
US$281.3 billion respectively); and with El Salvador and Honduras (Chart 1.3).  
                                               
1 Source: WTO Regional Trade Agreement Database. WT/REG283/1/Rev.1 
 
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  Chart 1.1 El Salvador: Merchandise trade with world and Chinese Taipei, 2000-2011 
050100150200250
051015
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011US$ billionUS$ millionImports from Chinese Taipei
Exports to Chinese TaipeiTotal imports
Total exportsLeft hand scale: Right hand scale:
 
Chart 1.2 Honduras: Merchandise trade with world and Chinese Taipei, 2000-2009 
0.00.20.40.60.81.0
0246810
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009US$billion US$ millionImports from Chinese Taipei
Exports to Chinese TaipeiTotal imports
Total exportsLeft hand scale: Right hand scale:
 
 
Note: No export data of Honduras for 2008.  Source: WTO Secretariat based on data of th e UNSD, Comtrade database, IFS and WTO-IDB. WT/REG283/1/Rev.1 
 
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  Chart 1.3 Chinese Taipei: Merchandise trade with world, El Salvador and Honduras, 
2000-2011 
050100150200250300350
0100200300400
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011US$ billion US$ millionImports from El Salvador
Exports to El SalvadorTotal imports
Total exportsLeft hand scale: Right hand scale:
Imports from Honduras
Exports to Honduras
 
 
Source: WTO Secretariat based on data  of the UNSD, Comtrade database.  
 
1.6.  Chart 1.4A and 1.4B show the commodity stru cture of the Parties' bilateral and global trade 
during the period 2005-2007 by broad HS sections. El Salvador's imports from Chinese Taipei were dominated by three products, namely plastics-rubber (25.6%), textiles (22.1%) and machinery 
(19.7%). Among these three sectors, only machin ery represented one of Chinese Taipei's largest 
exports worldwide (48.6%), while plastics-rubber and textiles accounted for 7.5% and 5.3% respectively. Chinese Taipei's imports from El Salvador were less diversified, led by base metals at 73.7%, which only represented 5.8% of El Salvador's global exports. 
1.7.  Honduras' imports from Chinese Taipei were dominated by machinery (27%) and motor 
vehicles (24.6%). At the same time, machiner y was Chinese Taipei's largest global export 
(48.6%), whereas motor vehicles only represented 3.4% of its global exports. Chinese Taipei's 
imports from Honduras were dominated at 89.7% by base metals, which by contrast represented 
only 3.5% of Honduras' global exports. WT/REG283/1/Rev.1 
 
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  Chart 1.4A El Salvador and Chinese Taipei: product composition of merchandise trade, 
annual average (2005-2007) 
47.4 
13.4 6.2 5.9 5.8 5.2 4.6 3.8 2.8 4.9 
73.7 12.2 5.5 3.8 3.4 1.4 48.6 
10.9 7.9 7.5 5.5 5.3 5.2 3.4 1.8 3.9 
16.9 
15.2 
14.9 
9.9 7.1 6.8 6.1 4.8 4.1 3.9 3.0 7.4 
35.3 
19.0 11.4 11.1 6.1 3.3 2.9 11.1 25.6 
22.1 
19.7 7.7 6.5 6.4 4.2 7.8 El Salvador's imports from Chinese Taipei
Chinese Taipei's imports from El SalvadorPer cent
Total:  US$ 96
Total:  US$ 10 millionTotal:  US$ 8 billion
Total: US$ 201 billionTotal:  US$ 220 billion
Total:  US$ 4 billionChinese Taipei's global exports
El Salvador's global exportsEl Salvador's global imports
Chinese Taipei's global imports
Animal 
products
Vegetables
Prepared 
foodsMinerals
Chemicals
Plastics, 
rubberWood pulp
Textiles
Base metalsMachinery
Vehicles
OpticalOtherMiscellaneous
 
 
Chart 1.4B Honduras and Chinese Taipei: pr oduct composition of merchandise trade, 
annual average (2005-2007) 
35.8 
11.7 
8.9 8.6 8.0 4.2 3.9 3.5 3.2 2.5 2.3 2.0 5.5 
89.7 4.9 4.4 1.0 48.6 
10.9 7.9 7.5 5.5 5.3 5.2 3.4 1.8 3.9 
21.3 
16.6 
12.8 8.1 7.7 7.5 6.0 4.5 4.0 2.9 2.0 6.7 
35.3 
19.0 11.4 11.1 6.1 3.3 2.9 11.1 27.0 
24.6 
12.5 10.8 9.2 6.2 3.5 6.1 Honduras' imports from Chinese Taipei
Chinese Taipei's imports from HondurasPer cent
Total:  US$ 41 million
Total:  US$ 17 millionTotal:  US$ 5 billion
Total: US$ 201 billionTotal:  US$ 220 billion
Total:  US$ 2 billionChinese Taipei's global exports
Honduras' global exportsHonduras' global imports
Chinese Taipei's global imports
Animal 
products
Vegetables
Fats and oilsPrepared 
foods
Minerals
ChemicalsPlastics, 
rubber
Articles of 
wood
Wood pulpTextiles
Footwear
Precious 
stonesBase metals
Machinery
VehiclesOtherOptical
Miscellaneous
 WT/REG283/1/Rev.1 
 
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  1.2  Trade in services and investment 
1.2.1  Trade in Services  
1.8.  Table 1.1A and 1.1B show global trade in services and foreign direct investment, respectively 
for El Salvador and Honduras during 2005-2007 (three years prior to the entry into force of the Agreement).
2 During this period, although exports grew steadily for both El Salvador and 
Honduras, they have run a deficit in their global se rvices trade. El Salvador's principle exports and 
imports were travel, transportation services and communication services; while Honduras's principle exports and imports were travel and communication services. 
1.9.  Table 1.1C and 1.1D show Chinese Taipei's global and bilateral trade in services and foreign 
direct investment during 2005 and 2007.
3 During this period, Chinese Taipei has run a deficit in its 
global trade in services, even if its exports have constantly increased. Data from Chinese Taipei on bilateral trade shows that its exports and imports of services to and from El Salvador and 
Honduras were mainly other business services. 
1.2.2  Foreign Direct Investment 1.10.  Data on foreign direct investment (FDI) is also shown in the Tables below for each Party for 
the period 2005-2007. El Salvador and Honduras are net recipients of FDI; whereas Chinese Taipei 
is a net investor in the world, including El Salvador and Honduras.  
Table 1.1A El Salvador: Trade in commercia l services and investment with world, 
2005-2011 
(Unit: in billion US$) 
Service Item World  
Exports  Imports 2005 
2006 
2007 
2008 
2009 
2010 
2011 
2005 
2006 
2007 
2008 
2009 
2010 
2011 
Total commercial 
services 946 1,015 1,134 1,058  863 976 1,073  1,075  1,179  1,275  1,271 953 1,070  1,106  
Transportation 
services 345 352 368 351 273 301 365 514 557 601 646 441 461 479 
Travel 361 382 482 425  319 390 415 206 224 279 241 187 219  203 
Communication 
services 123 136 162 154 141 172 162 25 26 31 45 32 40 70 
Construction 24 45 23 33  25 18 14 13 9 8 14 10 6  7 
Insurance 
services 32 35 37 45 57 29 28 109 134 126 141 125 126 137 
Financial 
services 7 3 4 1  1 3 5 13 9 10 12 8 8  11 
Computer and 
information 
services 0 1 0 1 0.1 0.7 1.1 3 4 8 5 4 7 16 
Royalties and 
licence fees 2 1 0 1  0.4 0.3 0.3 30 27 24 34 26 31  40 
Other business 
services 21 22 17 19 17.6 29.6 25 138 162 157 100 88 126 109 
Personal, 
cultural and recreation 
services 0 0 0 0
 0 0.1 0 2 1 2 1 0.5 1  0.9 
 World  
 Outward  Inward 
 2005 2006 2007 2008  2009  2010  2011  2005  2006  2007  2008 2009 2010  2011  
Total FDI stocks 310  284   384  449 333 … … 4,167  4,408  5,916  6,701 7,132 7,731  8,141  
Total FDI flows -113 26 -100 -65 131 … … 511 241 1,509  784 431 … … 
                                               
2 Data on bilateral trade in services of El Salvador and Honduras with Chinese Taipei is not available. 
3 Data on bilateral trade in services of Chinese Taipei  with El Salvador and Hond uras is not available for 
2007. WT/REG283/1/Rev.1 
 
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  Table 1.1B Honduras: Trade in commercial se rvices and investment with world, 2005-
2010  
(Unit: in billion US$) 
Service Item World  
Exports  Imports 
2005 2006 2007 2008  2009  2010  2005  2006  2007 2008 2009  2010  
Total commercial 
services 684 727 770 866  933 986 923 1,027  1,058 1,177 1,077  1,220  
Transportation 
services 39 39 50 41 42 35 500 532 625 694 454 534 
Travel 463 515 546 619  611 645 262 355 212 291 296  322 
Communication 
services 144 137 138 174 251 263 19 36 57 75 235 223 
Construction 0 0 0 0  … … 38 0 0 0 …  … 
Insurance 
services 18 21 24 25 21 22 9 10 80 65 50 76 
Financial services 6 0 0 0  0 0 13 14 7 10 9  15 
Computer and 
information 
services 0 1 0 0 0 1 5 12 15 0 1 9 
Royalties and 
licence fees 0 0 0 0  … … 21 27 28 18 18  21 
Other business 
services 14 14 13 7 4 7 51 35 25 14 8 13 
Personal, cultural 
and recreation 
services 0 0 0 …  3 13 6 6 8 10 6  6 
 World  
 Outward  Inward 
 2005 2006 2007 2008  2009  2010  2005  2006  2007 2008 2009  2010  
Total FDI stocks  24   24   25  32 33 … 2,838  3,512  4,440 5,340 5,841  … 
Total FDI flows - 1  - 1  - 1  1 -1 …  600  669  928 900 500 … 
 
Table 1.1C Chinese Taipei: Trade in commerc ial services and investment with world, 
2005-2010  
(Unit: in million US$) 
Service Item World  
Exports  Imports 
2005 2006 2007 2008  2009  2010  2005  2006  2007 2008 2009 2010  
Total 
commercial services 25,574 28,860 31,015 34,490
 30,635  40,644  31,420  31,752  34,265 34,292 29,065  37,236  
Transportation 
services 5,924 6,259 6,830 7,132  11,417  9,759  8,439  9,030  10,263 5,473 7,873  9,724  
Travel 4,977 5,136 5,213 5,937  9,116  8,648  8,682  8,746  9,070 6,958 7,800  9,358  
Communication 
services 320 264 294 334 413 392 505 393 441 343 431 454 
Construction 121 152 199 235  235 355 376 295 371 294 86  241 
Insurance 
services 365 532 409 350 932 432 967 1,002  973 473 768 1,000  
Financial 
services 1,517 1,232 1,302 1,146  328 847 1,370  1,390  782 772 336  197 
Computer and 
information 
services 105 186 135 141 284 217 315 313 257 129 330 435 
Royalties and 
licence fees 234 244 220 191  3,015  414 1,796  2,321  2,575 242 3,424  4,943  
Other business 
services 11,950 14,779 16,342 18,925  8,368  19,482  8,669  8,063  9,328 15,864 7,821  10,669  
Personal, 
cultural and 
recreation 
services 61 76 71 99  184 98 301 199 205 87 196  215 
 World  
 Outward  Inward 
 2005 2006 2007 2008  2009  2010  2005  2006  2007 2008 2009 2010  
Total FDI 
stocks 106,511 126,963 158,361 175,140  181,008  … 43,175  50,211  48,640 45,458 48,261  … 
Total FDI flows 6,028 7,399 11,107 10,287  5,868  … 1,625  7,424  7,769 5,432 2,803  … 
 WT/REG283/1/Rev.1 
 
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  Table 1.1D Chinese Taipei: Trade in commercia l services and investment with Honduras 
and El Salvador, 2005-2007  
(Unit: in million US$) 
Service Item Honduras  El Salvador 
Exports Imports  Exports  Imports  
2005 2006 2007 2005  2006  2007  2005  2006  2007 2005 2006  2007  
Total commercial 
services 366 401 …  303 243 … 618 798 … 177 158  … 
Transportation 
services … … … 2 6 … … … … 1 4 … 
Travel 19 25 …  96 80 … 32 50 … 56 50  … 
Communication 
services 8 4 … 6 4 … 13 8 … 3 2 … 
Construction … … …  … … … … … … … …  … 
Insurance 
services 6 11 … 16 12 … 11 22 … 9 8 … 
Financial services 27 10 …  19 14 … 45 20 … 11 9  … 
Computer and 
information 
services 0.9 3 … 4 3 … 0.5 5 … 3 2 … 
Royalties and 
licence fees … … …  29 31 … … … … 17 19  … 
Other business 
services 305 348 … 126 91 … 517 693 … 74 57 … 
Personal, cultural 
and recreation services … 0 …
 5 3 … … 0 … 3 2  … 
 Honduras  El Salvador 
 Outward  Inward   
 2005 2006 2007 2005  2006  2007  2005  2006  2007 2005 2006  2007  
Total FDI stocks 18.3 19.3 20.7  0.03 0.03 0.2 49.9 50.4 50.7 … …  … 
Total FDI flows 2.1 1.0 1.4 … … 0.2 1.0 0.5 0.3 … … … 
 
(…) = no data  
 
Source: UNCTAD and data fro m national authorities. 
 
2  CHARACTERISTIC ELEMENTS OF THE AGREEMENT 
2.1  Background Information 
2.1.  The Agreement was signed by the Parties on 7 May 2007 and entered into force on: 
i) 1 March 2008 between El Salvador and Chinese Taipei; and ii) 15 July 2008 between Honduras and Chinese Taipei. The goods and services provisio ns of the Agreement were notified to the WTO 
by the Parties on 6 April 2010 under Article XXIV: 7(a) of the GATT 1994, and Article V: 7(a) of 
the GATS, respectively (document WT/REG283/N/1 and S/C/N/544). The text of the Agreement is available, along with its related annexes, on the following official websites:  
El Salvador : 
"http://www.minec.gob.sv/index.p hp?option=com_phocadownloa d&view=category&id=19:tlc-
taiwan-honduras-y-el-salvador.&Itemid=142 " 
 
Honduras:    http://www.sic.gob.hn  
Chinese Taipei :  http://www.trade.gov.tw/english/ Pages/List.aspx?nodeID=678  
 
2.2.  The Agreement is composed of 18 Chapters, as follows: 
Box 2.1 Structure of the Agreement 
Chapters Title 
Preamble  
Part One General Aspects 
Chapter 1 Initial Provisions 
Chapter 2 General Definitions WT/REG283/1/Rev.1 
 
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  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 the Origin of Goods 
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 for Business Persons 
Part Five Administrative and Institutional Provisions 
Chapter 13 Transparency 
Chapter 14 Administration of the Agreement 
Chapter 15 Dispute Settlement 
Chapter 16 Exceptions 
Chapter 17 Cooperation 
Chapter 18 Final Provisions 
 
Source: Free Trade Agreement between El Salvador, Honduras and Chinese Taipei. 
 
2.3.  Except as otherwise provided in the Agreement, El Salvador and Honduras, considered 
individually, will apply the Agreement on a bila teral basis with Chinese Taipei. Therefore, the 
Agreement does not apply to the trade relations between El Salvador and Honduras 
(Article 1.01.2). 
2.4.  The objectives of the Agreement are to: pr omote the expansion and diversification of trade 
between the Parties; eliminate barriers to trade in and facilitate the cross-border movement of 
goods and services between the territories of th e Parties; promote fair competition; promote, 
protect and substantially increase investment in each Party; create effective procedures for the implementation and application of the Agreement;  and establish a framework for further bilateral 
cooperation in order to expand the benefits of th e Agreement (Article 1.02.1). Although no explicit 
implementation period is stated, tariff elimination under the Agreement is to be completed in 
twenty years by 1 January 2027. Services commitm ents are to be implemented upon entry into 
force of the Agreement. 
3  PROVISIONS ON TRADE IN GOODS 
3.1  Import duties and charges,  and quantitative restrictions 
3.1.1  General provisions 
3.1.  Each Party shall accord national treatment to goods from the other Party in accordance with 
Article III of the GATT 1994 which, along with its in terpretative notes, is incorporated into and 
made part of the Agreement (Article 3.03.1). Nevertheless, exceptionally national treatment does WT/REG283/1/Rev.1 
 
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  not apply to certain measures related to import and export restrictions on products identified by 
each Party in Annex 3.03 (Article 3.03.3). 
3.2.  With regard to customs duties, the Parties agree to progressively eliminate tariffs on goods in 
accordance with their tariff schedules in Annex 3.04 (Tariff Reduction Schedule) and Annex 3.14 (Goods Subject to the Special Safeguard Measures) of the Agreement (Article 3.04.3). Upon 
request by either Party, they shall hold consulta tions to examine the possibility of improving their 
tariff treatment under Annex 3.04. An agreement on  improving tariff treatment shall prevail over 
any customs tariff or preference established in their schedules for that specific good, once 
approved by each Party in accordance with its applicable legal procedures (Article 3.04.6). In 
addition, the Parties agree to neither increase any existing tariff rate nor adopt any new customs tariff on originating goods, unless otherwise provided in the Agreement (Article 3.04.1). 
3.3.  The Parties shall temporarily grant duty-fr ee access reciprocally to each other, subject to 
certain conditions, on: i) professional equipment to carry out business activities, trade or 
profession of a business person who qualifies for temporary entry pursuant to the laws of the importing Parties activities; ii) goods intended for display or demonstration; iii) commercial 
samples and advertising films; and iv) goods imported for sports purposes (Article 3.05.1). 
Furthermore, they agree to grant duty-free entry to commercial samples of negligible value and printed advertising materials from each other, but they may require that i) such samples be 
imported solely for the solicitation of orders for go ods, or services provided from the territory, of 
another Party and non-party; or ii) such advertising material be imported in individual packets which do not form part of a larger consignment (Article 3.06). 
3.4.  Additionally, the Parties, in accordance with  Article VIII:1 of GATT 1994 and its interpretative 
notes, shall ensure that all other fees and charges (other than tariffs, charges equivalent to an 
internal tax or other internal charge applied consistently with Article III:2 of GATT 1994, and 
anti-dumping and countervailing duties), imposed on  or in connection with imports or exports are 
limited in amount to the approximate cost of serv ices rendered and do not represent an indirect 
protection to domestic goods or a taxation on imports or exports for fiscal purposes. To this effect, the Parties shall make available and maintain through the Internet a current list of the fees and 
charges it imposes in connection with imports or exports (Article 3.11). 
3.5.  Under Article 3.10 the Parties agree to immediately eliminate non-tariff barriers to trade 
except those maintained under Articles XX and XXI of the GATT 1994 and those regulated by Chapters 8 and 9 of the Agreement (see SPS and TBT sections below). In addition, except as 
provided for by the Agreement, the Parties may not maintain any import (or export) prohibitions 
or restrictions on goods imported from (or exported to) to other Parties, except in accordance with Article XI of the GATT 1994 including its interpretative notes which are incorporated into and form 
part of the Agreement. 
3.6.  A Committee on Trade in Goods is established under Article 3.16 whose role is to consider 
any matters relating to the implementation of Chapter 3 (See section below on institutional 
framework). The Committee had not met as of 8 February 2013. 
3.1.2  Liberalization of trade and tariff lines 3.7.  Table 3.1A shows El Salvador's overall tariff elimination. In 2008, when the Agreement 
entered into force, 47.1% of El Salvador's tariffs (3,096 tariff lines) were duty free on an MFN 
basis, corresponding to 64.3% of El Salvador's average imports from Chinese Taipei during 
2005-2007.
4 Upon the entry into force of the Agreement, an additional 10.4% of lines were 
liberalized, accounting for 6.8% of El Salvador's imports from Chinese Taipei. Further liberalization 
is due to take place between 2008 and 2027. As a resu lt, 73.1% of tariff lines will be liberalized for 
imports from Chinese Taipei. At the end of implementation in 2027, 1,764 tariff lines (26.9% of the tariff) are to remain dutiable, corresponding to 22.8% of El Salvador's imports from Chinese 
Taipei in 2005-2007. Further details on additional access to El Salvador's market resulting from 
the Agreement are given in Annex Tables A1.1 and A1.4. 
                                               
4 In 2008 El Salvador's MFN applied tariff consisted of 6,567 lines at the HS 8-digit level, all of which 
were subject to ad valorem  rates of duty. WT/REG283/1/Rev.1 
 
- 13 - 
 
  Table 3.1A El Salvador: Tariff eliminat ion commitments under the Agreement and 
corresponding average trade 
Duty phase-out 
period Number of 
lines % of total lines in 
El Salvador's 
tariff schedule Value of El Salvador's 
imports from  
Chinese Taipei 
(2005-2007) in 
million US$ % of El Salvador's 
total imports from 
Chinese Taipei 
2005-2007 
MFN duty free (2008) 3,096 47.1 51.6 64.3 
2008 681 10.4 5.4 6.8 
2012 217 3.3 2.2 2.7 
2017 353 5.4 1.6 2.0 
2022 440 6.7 1.1 1.4 
2027 16 0.2 0.0 0.0 
Remain dutiable 1,764 26.9 18.3 22.8 
Total 6,567 100.0 80.2 100.0 
 
Note: Based on the HS 2007 nomenclature.  Source:  WTO estimates based on data pr ovided by El Salvador and WTO-IDB. 
 
3.8.  According to Table 3.1B, 47.1% of Honduras' tariff lines (3,094 lines) were duty free on an 
MFN basis in 2008, corresponding to 44% of Honduras' imports from Chinese Taipei during 
2005-2007.5 At the entry into force of the Agreement, a further 14.9% of the tariff was liberalized, 
corresponding to 17.4% of Honduras' imports from Chinese Taipei. Further tariff liberalization is due to take place until 2027, resulting in the liberalization of 77.8% tariff lines for imports from 
Chinese Taipei. At the end of implementation in 2027,  1,455 tariff lines (22.2% of the tariff) are to 
remain dutiable, corresponding to 31% of Honduras' imports from Chinese Taipei in 2005-2007. Further details on additional access to Honduras market resulting from the Agreement are given in Annex Tables A1.2 and A1.5. 
Table 3.1B Honduras: Tariff elimination commitments under the Agreement and 
corresponding average trade
 
Duty phase-out 
period Number of lines % of total lines in 
Honduras' tariff 
schedule Value  of Honduras' 
imports from Chinese 
Taipei 
(2005-2007) in million 
US$ % of Honduras' total 
imports from Chinese 
Taipei 
2005-2007 
MFN duty free (2008) 3,094 47.1  18.2 44.0 
2008 975 14.9 7.2 17.4 
2012 224 3.4  0.9 2.2 
2017 353 5.4 1.1 2.6 
2022 447 6.8  1.1 2.8 
2027 16 0.2 0.0 0.0 
Remain dutiable 1,455 22.2  12.8 31.0 
Total 6,564 100.0  41.4 100.0 
 
Note: Based on the HS 2007 nomenclature.  Source:  WTO estimates based on Honduras' categories in the Agreement and WTO-IDB.  
3.9.  Table 3.1C and 1D show Chinese Taipei's tariff liberalization for imports from El Salvador and 
Honduras respectively, during the period 2005-2007. In 2008, 31.7% of Chinese Taipei's tariff 
lines were duty free on an MFN basis, representing 88.3% of imports from El Salvador and 95% of imports from Honduras.
6 Following the entry into force of the Agreement, Chinese Taipei 
liberalized an additional: i) 32.7% of tariff lines,  accounting for 4.1% of imports from El Salvador; 
and ii) 37.8% of tariff lines, corresponding to 4.9% of tariff lines of Honduras. Chinese Taipei will fully implement the Agreement by 2022, resulting in the liberalization of 97.4% tariff lines for 
imports from El Salvador and Honduras.  Nonetheless, 226 tariff lines (2.6% of the tariff) will 
remain dutiable, which correspond to 4.4% and 0.1% of imports from El Salvador and Honduras 
                                               
5 In 2008 Honduras' applied MFN tariff consisted of 6,564 lines at the HS 8-digit level. Of these 6,557 or 
99.89% of the tariff was subject to ad valorem  rates.  Seven tariff lines were subject to non ad valorem  rates 
of duty. 
6 In 2008 Chinese Taipei's applied MFN tariff consisted of 8,848 lines at the HS 8-digit level. Of these 
160 lines (1.8%) are subject to non ad valorem  rates of duty, with 89 having specific duties and 79 lines mixed 
rates of duty. WT/REG283/1/Rev.1 
 
- 14 - 
 
  respectively in 2005-2007. Further details on additional access to Chinese Taipei's market resulting 
from the Agreement are given in Annex Tables A1.3 and A1.6. 
Table 3.1C Chinese Taipei - El Salvador : Tariff elimination commitments under the 
Agreement and corresponding average trade  
Duty phase-out 
period Number of lines % of total lines in 
Chinese Taipei's 
tariff schedule Value of Chinese Taipei's 
imports from El Salvador 
(2005-2007) in million 
US$ % of Chinese Taipei's 
total imports from El 
Salvador 
2005-2007 
MFN duty free (2008) 2,801 31.7  8.9 88.3 
2008 2,897 32.7 0.4 4.1 
2012 1,312 14.8  0.0 0.0 
2017 1,217 13.8 0.3 3.2 
2022 395 4.5  0.0 0.0 
Remain dutiable 226 2.6 0.4 4.4 
Total 8,848 100.0  10.1 100.0 
 
Note: Based on the HS 2002 nomenclature. 
 
Source:  WTO estimates based on da ta provided by Chinese Taipei. 
 
Table 3.1D Chinese Taipei – Honduras: Tariff elimination commitments under the 
Agreement and corresponding average trade  
Duty phase-out 
period Number of lines % of total lines in 
Chinese Taipei's 
tariff schedule Value of Chinese Taipei's 
imports from Honduras 
(2005-2007) in million 
US$ % of Chinese Taipei's 
total imports from 
Honduras 
2005-2007 
MFN duty free (2008) 2,801 31.7  16.5 95.0 
2008 3,344 37.8 0.8 4.9 
2012 1,311 14.8  0.0 0.0 
2017 778 8.8 0.0 0.0 
2022 388 4.4  0.0 0.0 
Remain dutiable 226 2.6 0.0 0.1 
Total 8,848 100.0  17.3 100.0 
 
Note: Based on the HS 2002 nomenclature.  Source:  WTO estimates based on da ta provided by Chinese Taipei. 
 
3.1.3  Liberalization schedule 
3.1.3.1  El Salvador 3.10.  Table 3.2 shows El Salvador's tariff elimination by HS Section. The 1,764 remaining dutiable 
tariff lines are spread throughout all HS Se ctions, except for Sections XIV (Precious and 
semi-precious stones), XVIII (optical, watches and musical instruments), XIX (arms) and XXI (works of arts). Section XI (textile and textile articles) contains most non-liberalized tariff lines 
(802), followed by Section XV (base metals) with  167 lines and Section XVII (vehicles, aircrafts 
and vessels) with 153 lines. Chart 3.1 compares av erage rates of preferential tariffs on lines 
remaining dutiable and their corresponding MFN average rates, by HS Chapter. The preferential 
averages are the same as the current applied M FN average rates on these products, except for 
slight differences in certain Chapters.
7 The highest preferential tariffs are in HS Chapter 16 
(preparation of meat and fish) with 50% and Chapter 2 (meat) with 36.5%. 
                                               
7 The Chapters showing difference between the MFN and preferential average rates of duties are the 
following (MFN-preferential): Chapter 2 (36.7% -36.5%), Chapter 4 (24%-23.4%), Chapter 10 
(31.3%-29.1%), Chapter 11 (11.3%-10.4%), Chapter 19 (16.2%-15.8%), Chapter 25 (10%-8%), Chapter 28 
(10%-8.7%), Chapter 29 (10%-8%), Chapter 32 (12.7%-11.9%), Chapter 33 (15%-12.5%), Chapter 34 (12.5%-10.5%), Chapter 35 (10%-9.3%), Chapter 38 (9.7%-7.9%), Chapter 40 (10%-8%), Chapter 48 
(10.3%-9.6%), Chapter 49 (11.1%-9.2%), Chapter 72 (1 0.5%-9.9%), Chapter 76 (10.6%-9.9%), Chapter 84 
(10%-8.9%) and Chapter 95 (13.1%-11.5%). WT/REG283/1/Rev.1 
 
- 15 - 
 
  Table 3.2 El Salvador: Tariff eliminatio n under the Agreement, by HS section  
HS 
section MFN 
average
% Total 
No. of 
lines MFN  
duty-free 
(2008) Number of duty-free lines  No. of lines 
remaining dutiable Avg. Final 
Tariff 
(Dutiable) 
% 2008 
2012 
2017 
2022 
2027 
I 16.1 299  42 139   5 14  99 29.9  
II 9.8 376 107 65 1 103 57 2 41 16.4 
III 7.3 54  18 9   1 13  13 14.6  
IV 16.4 274 32 47 2 18 87 14 74 27.5 
V 2.7 178  112 43    21  2 8.0  
VI 2.0 960 755 75 14 13 26  77 9.0 
VII 4.6 333  144 25  13 17 7  127 8.2  
VIII 8.3 108 19 15 70    4 12.5 
IX 8.0 140  27 1  23 72 15  2 15.0  
X 5.1 294 149 1  19   125 9.5 
XI 9.6 920  118      802 11.0  
XII 13.1 64 2 11 5 13 2  31 14.0 
XIII 6.4 176  80  13 21 52  10 12.6  
XIV 6.9 54 15 36   3    
XV 3.3 699  458 18  8 23 25  167 9.5  
XVI 2.3 976 777 140 13 5 30  11 10.5 
XVII 6.2 234  66 15      153 8.6  
XVIII 3.9 237 150 20 21 21 25    
XIX 30.0 21    21      
XX 10.7 161 25 21 11 20 58  26 12.8 
XXI 7.8 9    2 2 5    
Total 6.3 6,567  3,096 681 217 353 440 16 1,764 12.3 
 
Note: Based on the HS 2007 nomenclature. 
 
Source:  WTO estimates based on data pr ovided by El Salvador and WTO-IDB. 
Chart 3.1 El Salvador: Average of dutiable rates, by HS Chapter 
0102030405060
1
234789
101112151617
19
20212223240102030405060
25
2932
34
3739
41
4449
51
5355
57
5961
63
6870
73
8285
94
96HS  01-24 HS 25-97Average rate of duty (%)  
Average rate of duty (%)  
HS Chapter HS Chapter
MFN Preferential
 
Source: WTO Secretariat estimates based on da ta provided by El Salvador and WTO-IDB. 
 WT/REG283/1/Rev.1 
 
- 16 - 
 
  3.1.3.2  Honduras 
3.11.  According to Table 3.3, the 1,455 remaining dutiable tariff lines are contained in almost all 
HS Sections, except for the same HS Sections mentioned above for El Salvador. By the same 
token, Section XI (textile and textile articles) contains the majority of dutiable tariff lines (512), followed by Section XVII (vehicles, aircrafts and vessels) with 168 lines and Section XV (base 
metals) with 155 lines. Chart 3.2 shows that for al most all HS Chapters the preferential and the 
MFN average rates are at the same level, although  average preferential duties are lower in some 
HS Chapters.
8  
Table 3.3 Honduras: Tariff elimination under the Agreement, by HS section  
HS 
section MFN 
average% Total 
No. of 
lines MFN duty-free 
(2008) Number of duty-free lines  No. of lines 
remaining 
dutiable Avg. Final  
Tariff  
(Dutiable) 
% 2008  2012  2017  2022  2027  
I 14.0 299  42 137   5 16  99 24.2  
II 9.9 376 105 67 1 103 58 2 40 17.8 
III 8.1 54 9 9  9 1 13  13 14.6  
IV 12.2 274 33 47 2 18 87 14 73 16.6 
V 2.9 178  113 42    21  2 8.0  
VI 1.9 961 776 74 13 13 27  58 10.3 
VII 4.5 335  148 24  13 17 7  126 8.2  
VIII 8.3 108 19 15 70    4 12.5 
IX 8.6 138  26  23 72 15  2 15.0  
X 5.1 294 149   19   126 9.6 
XI 9.7 920  115 293      512 8.8  
XII 12.7 64 2 11 3 13 2  33 13.2 
XIII 6.4 176  79 1  13 21 52  10 12.6  
XIV 6.9 54 15 36   3    
XV 3.1 696  466 17  8 23 27  155 9.6  
XVI 2.4 974 770 146 14 5 31  8 11.4 
XVII 6.1 234  51 15      168 7.7  
XVIII 3.9 237 150 20 21 21 25    
XIX 12.6 21   21      
XX 10.6 162 26 21 11 20 58  26 12.7 
XXI 7.8 9   2 2 5    
Total 6.0 6,564  3,094 975 224 353 447 16 1,455 11.0 
 
Note: For the calculation of averages, specific duties are excluded and the ad valorem  parts of alternate 
rates are included. 
 Based on the HS 2007 nomenclature.  Source:  WTO estimates based on Honduras' categories in the Agreement and WTO-IDB. 
 
                                               
8 The Chapters showing difference between the MFN and preferential average rates of duties are the 
following (MFN-preferential):  Chapter 25 (10% -8%), Chapter 28 (10%-8.7%), Chapter 29 (10%-8%), 
Chapter 32 (12.7%-11.9%), Chapter 33 (15%-12.5%), Chapter 34 (12.5%-10.5%), Chapter 35 (10%-9.3%), 
Chapter 38 (9.7%-7.5%), Chapter 40 (10%-8%), Ch apter 48 (10.3%-9.6%), Chapter 49 (11.5%-9.8%), 
Chapter 68 (15%-12%), Chapter 69 (15%-12%)Chapt er 76 (10.6%-9.9%), Chapter 84 (8.3%-7.7%), 
Chapter 85 (14%-13.6%), Chapter 94 (15% -14.4%), Chapter 95 (13.1%-11.5%). WT/REG283/1/Rev.1 
 
- 17 - 
 
  Chart 3.2 Honduras: Average of du tiable rates, by HS Chapter 
010203040
1
234789
101112
15
1617192021222324010203040
25
2933
35
38404248
50
52545658
60
687073
82
859496HS  01-24 HS 25-97Average rate of duty (%)  
Average rate of duty (%)  
HS Chapter HS Chapter
MFN Preferential
 
 
Source: WTO Secretariat estimates based on Hondur as' categories in the' Agreement and WTO-IDB. 
 
3.1.3.3  Chinese Taipei 
3.12.  By 2022, 226 tariff lines will remain dutiable for imports from El Salvador and Honduras, in 
Sections I (live animals), II (vegetable products), III (animal or vegetable fats and oils), 
IV (foodstuffs, beverage, tobacco), and XVII (vehicles, aircraft and vessels). Section III and II have the highest average tariffs (338% and 249% respectively). Chart 3.3 shows that the average 
preferential and average MFN rates are identical in all HS Chapters, except for Chapter 87 
(Vehicles other than railway or tramway) where the average preferential tariff (17.5%) is lower than the MFN average (30%). 
Table 3.4 Chinese Taipei: Tariff eliminatio n under the Agreement, by HS section 
(El Salvador)
 
HS 
section MFN 
average
% Total 
No. of 
lines MFN duty-
free 
(2008) Number of duty-free lines No. of lines 
remaining 
dutiable Avg. Final Tariff 
(Dutiable) 
% 2008 2012 2017 2022 
I 20.7 537 60 169 25 83 123 77 40.3 
II 32.0 510 154 118 19 80 93 46 249.3 
III 12.5 76 28 36 4 2 4 2 338.0 
IV 19.4 446 55 49 29 77 161 75 35.5 
V 1.3 229 149 66 14     
VI 2.6 1,451 521 791 123 11 5   
VII 4.8 357 12 260 85     
VIII 3.1 91 38 31 21 1    
IX 2.4 153 108 12 31 2    
X 0.0 195 195       
XI 8.8 1,194 55 253 160 723 3   
XII 6.2 77 6 26 22 23    
XIII 6.6 234 10 58 107 56 3   
XIV 0.1 76 75 1      
XV 2.6 898 528 163 206 1    WT/REG283/1/Rev.1 
 
- 18 - 
 
  HS 
section MFN 
average
% Total 
No. of 
lines MFN duty-
free 
(2008) Number of duty-free lines No. of lines 
remaining 
dutiable Avg. Final Tariff 
(Dutiable) 
% 2008 2012 2017 2022 
XVI 3.4 1,433 463 617 257 94 2   
XVII 10.1 249 57 59 47 59 1 26 17.5 
XVIII 2.5 392 182 114 92 4    
XIX 1.6 22 15 2 5     
XX 3.2 218 80 72 65 1    
XXI 0.0 10 10       
Total 7.6 8,848 2,801 2,897 1,312 1,217 395 226 81.3 
 
Note: For tariff lines subject to TRQs, only the out- of-quota duty is included in the tariff-related 
calculations; for the calculation of averag es, specific duties are excluded and the ad valorem  parts of 
alternate rates are included. 
 Based on the HS 2002 nomenclature.  Source:  WTO estimates based on da ta provided by Chinese Taipei. 
 
Table 3.5 Chinese Taipei: Tariff eliminatio n under the Agreement, by HS section 
(Honduras)  
HS 
section MFN 
average
% Total 
No. of 
lines MFN 
duty-free 
(2008) Number of duty-free lines  No. of lines 
remaining 
dutiable Avg. Final Tariff 
(Dutiable) 
% 2008  2012  2017  2022 
I 20.7 537 60 172 25 84 119 77 40.3 
II 32.0 510 154 118 19 80 93 46 249.3 
III 12.5 76 28 36 4 2 4 2 338.0 
IV 19.4 446 55 49 29 77 161 75 35.5 
V 1.3 229 149 66 14     
VI 2.6 1,451 521 791 123 11 5   
VII 4.8 357 12 260 85     
VIII 3.1 91 38 31 21 1    
IX 2.4 153 108 12 31 2    
X 0.0 195 195       
XI 8.8 1,194 55 697 159 283    
XII 6.2 77 6 26 22 23    
XIII 6.6 234 10 58 107 56 3   
XIV 0.1 76 75 1      
XV 2.6 898 528 163 206 1    
XVI 3.4 1,433 463 617 257 94 2   
XVII 10.1 249 57 59 47 59 1 26 17.5 
XVIII 2.5 392 182 114 92 4    
XIX 1.6 22 15 2 5     
XX 3.2 218 80 72 65 1    
XXI 0.0 10 10       
Total 7.6 8,848 2,801 3,344 1,311  778 388 226 81.3 
 
Note: For tariff lines subject to TRQs, only the out-of-quota duty is included in the tariff-related 
calculations; for the calculation of averag es, specific duties are excluded and the ad valorem  parts of 
alternate rates are included. 
 Based on the HS 2002 nomenclature.  Source:  WTO estimates based on da ta provided by Chinese Taipei. WT/REG283/1/Rev.1 
 
- 19 - 
 
  Chart 3.3 Chinese Taipei: Average of dutiable rates, by HS Chapter 
0100200300400500600
2 3 4 5 7 8 9 1 01 11 21 51 61 71 81 92 02 12 48 7HS Chapter
MFN PreferentialAverage rate of duty (%)  
 
 
Note:  For tariff lines subject to TRQs only the out-of-quota duty is included in the tariff-related 
calculations; for the calculation of averag es, specific rates are excluded and the ad valorem  parts of 
alternate rates are included. 
 Source: WTO Secretariat estimates based on data provided by Chinese Taipei. 
 
3.1.4  Tariff rate quotas 
3.13.  In addition to tariff elimination, Chinese Taipei commits to a permanent duty-free-quota for 
sugar originating in El Salvador and Honduras, contained in category Q of Chinese Taipei's schedule.
9 For this purpose, Chinese Taipei will requir e a Certificate of Origin and a Tariff Quota 
Certificate issued by El Salvador or Honduras. The quotas levels are: i) 35,000 metric tonnes in 
year one, ii) 50,000 metric tonnes in year two; and iii) 60,000 metric tons from year three 
onwards. For refined sugar, the quota is limited to 5,000 metric tonnes every year. The disciplines on the administration of the tariff-rate-quotas (TRQs) are contained in Annex 3.04. Annex 2 below 
shows the in and out of quota rates for all products subject to TRQs. El Salvador and Honduras do 
not maintain TRQs under the Agreement.  
3.2  Rules of origin and related custom procedures 
3.2.1  Rules of origin 
3.14.  Chapter 4 contains disciplines on the determination of origin to ascertain which products are 
to be considered originating in one of the Partie s and to benefit from preferential tariff treatment 
under the Agreement. Besides these general provisions, specific rules of origin are detailed in 
Annex 4.03 of the Agreement. 
                                               
9 The TRQs apply to the following tariff lines: i) Raw Sugar (1701.11.00 and 1701.91.10); and 
ii) Refined Sugar (1701.91.20; 1701.99.10; 1701.99.20; and 1701.99.90). WT/REG283/1/Rev.1 
 
- 20 - 
 
  3.15.  The rules of the WTO Agreement on Customs Valuation are used to determine the value of a 
good or material. Nevertheless, when determining the origin of a good, the provisions in Chapter 4 
of the Agreement prevail over the WTO Agreemen t on Customs Valuation to the extent of any 
inconsistency (Article 4.02). 
3.16.  The general requirement for a good to be considered an originating good of a Party 
(Article 4.03) is that it is: 
a. Wholly obtained or produced entirely in one or more Parties; 
b. Produced entirely in one or more Parties exclusively from originating materials; 
c. Produced entirely in one or more of the Parties from non-originating materials that 
undergo a change in tariff classification, satisfy a regional value content or other requirements, as specified in Annex 4.03 of the Agreement, and that the good complies 
with all other applicable provisions of Chapter 4. 
3.17.  Annex 4.03 contains specific rules of origin for a given good to meet in order to acquire 
originating status. These rules are organized by HS  Chapters and applied at the HS six and four 
digits. For most goods origin is conferred when their manufacture implies a change in tariff 
classification (CTC) at the four-digit Chapter heading, or at the six-digit subheading level. 
Nonetheless, changes to certain headings or subhea dings do not confer origin in exceptional 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.
10 
For a number of headings or subheadings, customs authorities are allowed to consider an alternative specific rule linked with additional minimum regional value content, which varies from 35% to 50%.
11 In addition, there are some cases where th e sole criterion is the minimum regional 
value content.12 Finally, complementary product-specific rules are also applicable to selected 
products.13 
3.18.  Article 4.06 allows accumulation of origin between the Parties. This permits originating 
goods or materials of one or more of the Parties, incorporated into a good in another Party, to be 
considered as originating in that other Party. In addition, Article 4.08 establishes a de minimis  
principle, allowing goods which do not satisfy a CTC required by the product specific rules to be 
originating if the value of non-originating materials used in the production of those goods (that do 
not meet the CTC requirement) do not exceed 10% of the transaction value of the good. This rule 
does not apply to a non-originating material used in the production of goods provided for in HS chapters 1-24, unless the non-originating material is classified in a different subheading than 
the good for which the origin is being determined. 
3.19.  Article 4.04 contains a list of minimal operations or processes that do not confer origin on a 
good. Articles 4.05 (Indirect materials), 4.09 (Fungible goods and materials), 4.10 (Set or 
assortments of goods), 4.11 (Accessories, spare parts and tools), 4.12 (Packaging materials and 
containers for retail sale), 4.13 (Packing materials and containers for shipment), and 4.14 (Transit and transhipment) define how certain materials must be treated/valued when determining the 
                                               
10 For instance, agricultural products (horticulture, fruits, fo rests, etc.) grown in a Party shall be deemed 
as originating in that Party even if they are grown from non-originating seed, bulbs, rootstock, cuttings, slips or other live parts of plants. 
11 This is the case, for instance, for synthetic organic colouring (HS 32.04), other colouring matters 
(HS 32.06), paints and varnished (HS 32.08); pigments (HS 32.12); glaziers' putty, grafting putty, resin cements, caulking compounds and other mastics (HS 32.14); glass and glassware (HS 7019.90); miscellaneous articles of base metal (HS 8311.90); steam or other vapour generating boilers (HS 8402.11-8402.20); boilers (HS 8403.10); auxiliary plant for use with boilers of heading (HS 8404.10-8404.20); producer gas or water gas genera tors (HS 8405.10); and products from Chapter 84 to 
Chapter 96. 
12 These cases are related to the following products: i) chassis fitted with engine s, for the mo tor vehicles 
(HS 87.06), ii) electrical and others (HS 8709.11-8709.19); and iii) ball point pens - propelling or sliding pencils (HS 9608.10-96.40). 
13 Other manufactured tobacco and manufactured tobacco  substitutes; "homogenised" or "reconstituted" 
tobacco; tobacco extracts and essences (HS 24.03); othe r plates, sheets, film, foil  and strip, of plastics 
(HS 39.20-39.21); apparel and clothing accessories (HS 61.01-61.17); articles of iron and steel (HS 7321.11-73.21.83). WT/REG283/1/Rev.1 
 
- 21 - 
 
  origin of a good. The Agreement also establishes a Committee on Rules of Origin and Customs 
Procedures under Article 4.15. 
3.2.2  Customs procedures 
3.20.  Chapter 5 contains the procedures for the administration of the rules of origin and for 
claiming preferential tariff treatment. The Parties committed to establish, no later than the date of 
the entry into force of the Agreement, a single format of certificate of origin, which will be certified 
by Parties' certifying authorities.14 The certificate will be valid for one year from the date it was 
signed and sealed by the certifying authority (Article 5.02.9). Moreover, it applies to a single 
import consignment of one or more goods of a Party. Importers of a Party wishing to claim 
preferential treatment for their imports must have such a certificate (Article 5.03). Article 5.06 sets up the procedures to verify the origin of a good, in which the competent authorities of the importing Party
15 may request information from the certifying authorities of the exporting Party, 
importers, exporters or producers as well as carrying out verification visits. 
3.21.  Likewise, Chapter 5 defines specific disciplines in relation with certification obligations for 
importers (Article 5.03) and exporters (Article 5.04), and procedures for verification of origin by 
the authorities (Article 5.06). Advance rulings shall be issued under Article 5.07 in response to a 
written request by the importer prior to import. Pena lties in case of violations of the Parties' laws 
and regulations are to be determined by the Part ies (Article 5.09). Furthermore, the Parties shall 
ensure the right to review and appeal any decisions on origin through either at least one level of 
administrative review independent of the official or office responsible for the determination of origin or advance ruling, and judicial review. Unde r Article 5.12, the Parties agree to provide each 
other of determinations, measures and rulings, including to the extent possible, those to be 
applied as indicated in Article 5.12. Finally, the Parties agree to cooperate inter alia  on the 
enforcement of their respective customs laws and regulations for the implementation of the 
Agreement, to facilitate trade such as through the exchange of statistics and collection and 
exchange of documentation on customs procedures. 
3.3  Export duties and charges,  and quantitative restrictions 
3.22.  According to Article 3.10, no Party shall adopt or maintain any prohibition or restriction on 
the export or sale for export to the other Party, except if: i) the Agreement provides otherwise, or 
ii) the Parties take measures authorized under Article XI of the GATT 1994 including its interpretative notes (which are incorporated into the Agreement). As an exception, the prohibition on export restrictions shall not apply to the measures listed by the Parties in Annex 3.03. 
E l  S a l v a d o r  m a y  m a i n t a i n  e x p o r t  c o n t r o l s  o n  smelting wastes, wastes and scrap steel, iron, 
copper, nickel, aluminium, lead, zinc and tin. By the same token, Honduras may maintain export controls on wood from broadleaved forests.
16 Similarly, Chinese Taipei may maintain export 
prohibitions on a number of products,17 essentially fish products and military material. 
3.23.  In addition, the Agreement prohibits any Pa rty from adopting or maintaining any duty, tax, 
or other charge on the export of any good to the other Party, except for the measures listed under 
Annex 3.03. 
                                               
14 The format of certificates of origin was adopted on 15 July 2008 and entered into force on 30 October 
2012.  It can be found at http://www.trade.gov.tw/english/Pag es/Detail.aspx?nodeID=102&pid=408291 . 
15 The "competent authorities" are the following: i) the customs authority for Chinese Taipei; ii) the 
Dirección General de Aduanas for El Salvador; and iii) the Secretaría de Estado en los Despachos de Industria y 
de Comercio  for Honduras. 
16 These controls were established under the Decree N° 323-98 of December 29, 1998, creation of the 
Programa de Reforestacio n Forestal y Ambiente. 
17 020890.20ex, 03019100, 03021100, 0302.12.10, 0302.12.20, 0302.19.00, 0303.11.00, 0303.19.00, 
0303.21.00, 0303.22.00, 0303.29.00, 0304.10.50, 0304.10.90ex, 0304.20.20ex, 0304.20.30, 0305.30.90ex, 0305.41.00, 0305.49.30, 0305.69.10, 0602.90.10ex, 1211.90.60, 1211.90.91ex, 1404.90.99ex, 1604.11.00, 1604.19.90ex, 2903.51.00, 2921.44.00ex, 29.21.45.00ex, 8710.00.00, 8906.10.00, 9301.11.00, 9301.19.00, 9301.20.00, 9301.90.00, 9705.00.00ex, and 9706.00.00ex. WT/REG283/1/Rev.1 
 
- 22 - 
 
  3.4  Regulatory provisions on trade in goods 
3.4.1  Standards 
3.4.1.1  Sanitary and phytosanitary measures 
3.24.  In Chapter 8, the Parties establish a fr amework of rules and disciplines to guide the 
adoption and implementation of sanitary and ph ytosanitary measures (SPS), based on the WTO 
SPS Agreement. The Parties also reaffirm thei r existing right and obligations under the SPS 
Agreement. 
3.25.  Provisions in Chapter 8 mostly mirror those in the WTO SPS Agreement. Pursuant to 
paragraph d) of Article 8.05, the Parties shall establish harmonized systems for procedures for 
control, inspection and approval of SPS measures. According to the Parties such harmonized systems have not yet been established. Moreover, paragraph e) of Article 8.07 sets up the procedure and timeframes to obtain additional technical information in case of provisional SPS 
measures. Likewise, Article 8.08 regulates the procedure to obtain recognition of pest- or 
disease-free areas. With regards to transparency, the Parties shall notify each other the adoption 
and modification of their SPS measures of general application as well as changes in sanitary or 
phytosanitary conditions and disease outbreaks, within the timeframes detailed in Article 8.10. 
3.26.  The Agreement establishes a Committee on SPS measures, the composition of which is 
contained in Annex 8.12.
18 The Committee had not met as of 8 February 2013. The Committee 
shall hear matters related to the functioning of Chapter 8 and will be responsible for ensuring 
training and specialization of technical staff; promoting active participation by the Parties in international bodies; and creating and updating a da tabase of specialists in food safety, plant, and 
animal health (Article 8.12).  
3.27.  In case of dispute related to rights and obligations under the WTO SPS Agreement, the 
Parties shall only have recourse to the WTO Dispute Settlement Mechanism and not to the dispute settlement proceedings of the Agreement (Article 8.02.5). Any Party may request technical 
consultations regarding the application or interpretation of Chapter 8, which the Committee may 
forward to an ad-hoc  working group for technical recommendations. 
3.4.1.2  Technical barriers to trade 
3.28.  Chapter 9 covers measures on standards,  metrology and authorization procedures as well 
as related measures that may directly or indirectly affect trade in goods between the Parties (Article 9.03). The provisions in Chapter 9 apply in addition to the WTO Agreement on Technical Barriers to Trade (TBT) (Article 9.02). 
3.29.  Provisions in Chapter 9 resemble for the most part those in the WTO TBT Agreement. Both 
provide for an assessment of risk and confor mity assessment, but the Agreement also has 
"authorization procedures". Moreover, the Parties agree to ensure, to the extent practicable, the 
documented traceability of their standards and the calibration of their measuring instruments, 
according to the recommendations of the Bureau International des Poids et Measures  (BIPM) and 
the International Organization of Legal Metrology (OIML). Furthermore, each Party shall ensure the 
existence of an information centre to answer all questions and requests from the other Party and 
interested persons (Article 9.11.1). 
3.30.  The Agreement establishes a Committee on Standards, Metrology and Authorization 
Procedures, the composition of which is contained in Annex 9.13.
19 The Committee had not met as 
                                               
18 According to Annex 8.12, the Committee on SPS is co mposed of:  i) For Chinese Taipei, the Bureau of 
Animal and Plant Health Inspection and Quarantine,  the Bureau of F ood Sanitation and the Bureau of 
Standards, Metrology and Inspection; ii) For El Salvador, the Ministerio de Economía, the Ministerio de 
Agricultura y Ganadería  and the Ministerio de Salud Pública y Asistencia Social ;  and iii) For Honduras, the 
Secretaría de Industria y Comercio , the Secretaría de Agricultura y Ganade ría and the Secretaría de Salud . 
19 According to Annex 9.13, the Committee on Standard s, Metrology, and Authorization Procedures shall 
be composed of: i) the Bureau of Standards, Metrology, and Inspection or its successors, for Chinese Taipei; ii) WT/REG283/1/Rev.1 
 
- 23 - 
 
  of 8 February 2013.  The Committee shall hear matters relating to Chapter 9 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 which the Parties shall establish mutual recognition agreements (Article 9.13).  
3.31.  In case of dispute related to rights and obligations under the WTO TBT Agreement, the 
Parties shall use the WTO Dispute Settlement Me chanism rather than the dispute settlement 
provisions under the Agreement (Article 9.02.2). Any Party may request technical consultations 
regarding the application or interpretation of Chapter 9, in which the Committee may forward to 
an ad-hoc  working group for technical recommendations (Article 9.12). 
3.4.2  Safeguard mechanisms 3.4.2.1  Global safeguards 
3.32.  The Parties reserve their rights and obliga tions under Article XIX of the GATT 1994 and the 
WTO Agreement on Safeguards. Nevertheless, a Party taking an action pursuant to Article XIX of 
the GATT 1994 and the WTO Agreement on Safeguar ds may exclude imports of an originating 
good of another Party covered by the Agreement if such imports are not a substantial share of 
total imports and a substantial cause of the serious injury (Article 6.03). 
3.33.  When a Party applies a safeguard measure to goods originating from the other Party: i) the 
measure shall consist, only and exclusively, of tariff measures; and ii) that Party shall provide a 
mutually agreed compensation.
20 If there is no agreement on compensation, the exporting Party 
may impose measures which have trade effects su bstantially equivalent to the effects of the 
safeguard measure applied (Article 6.03.7). 
3.34.  The following conditions apply to global safeguards procedures: i) a Party shall notify in 
writing within 15 days to the exporting Party the in itiation of the proceeding (Article 6.03.3); and 
ii) that Party shall give an appropriate opportunity for consultations with the exporting Party 
(Article 6.03.4). 
3.4.2.2  Bilateral safeguards 3.35.  Bilateral safeguards are governed by provisions in Chapter 6 as supplemented by Article XIX 
of the GATT 1994, the WTO Agreement on Safeguards, and each Party's applicable legislation 
(Article 6.02.1). 
3.36.  The provisions on bilateral safeguards are applicable during the transition period,
21 in case 
of an absolute or relative increase in imports, resulting from the reduction or the elimination of a 
customs duty under the Agreement, which causes or threatens to cause serious injury to a 
domestic industry producing like or directly competitive goods (Article 6.02.2). Safeguards measures can take the form of: (i) a suspension of a future reduction of any customs duty on the 
product provided for under the Agreement, or (ii) an increase in the customs duty on the product 
to a level not to exceed the lesser of the applied MFN duty in effect at the time the measure is taken, or on the day preceding the date of entr y into force of the Agreement (29 February 2008 
for El Salvador and Chinese Taipei and 14 July 2008 for Honduras and Chinese Taipei). 
3.37.  In principle, bilateral safeguards may not be applied for longer than four years, extendable 
by four additional consecutive years when justif ied. El Salvador and Honduras are entitled to 
extend further the application period of safeguards for up to 2 years. In other words, El Salvador 
and Honduras may apply a safeguard for up to 10 years, compared to eight years for Chinese 
                                                                                                                                               
the Dirección de Administración  de Tratados Comerciales  or its successor, for El Salvador; and iii) the Dirección 
de Producción y Consumo, Departam ento de Normalización y Metrología , or its successor, for Honduras. 
20 This compensation should be in the form of concessions, having substantially equivalent trade effects 
or equivalent to the value of the additional customs tariffs expected to result from the safeguard measure 
(Article 6.03.6). 
21 According to Annex 3.04 (Tariff Reduction Schedu le), the transition period may be up to 1 January 
2027. WT/REG283/1/Rev.1 
 
- 24 - 
 
  Taipei. In any case, a safeguard measure may not be maintained after the termination of the 
transition period, except with the exporting Part y's consent. Nonetheless, such measures may be 
applied as many times as necessary, provided that at least half the time during which the 
safeguard was applied for the first time has elapsed. 
3.38.  In critical circumstances,22 a Party may apply provisional safeguard measures pursuant to a 
preliminary determination, albeit its duration shall not exceed 200 days, which should be 
calculated for determining the duration of th e definitive safeguard (Article 6.02.6). Such 
provisional safeguard shall be refunded if the subsequent investigation does not determine that 
increased imports substantially caused or threatened to cause serious injury to a domestic 
industry. 
3.39.  The administration of safeguard proceedings  is governed by Article 6.04 of the Agreement, 
which ensures equitable, timely, transparent and effective procedures by the investigating 
authorities. The Parties must notify each other of initiations of safeguard investigations, findings of 
serious injury and decisions to apply or extend a safeguard measure. 
3.40.  Compensation for applying a measure shall be provided to the exporting Party in the form of 
concessions having commercial effect substantially equivalent to the value of the additional 
customs duties expected to result from the me asure. If compensation cannot be agreed, the 
exporting Party shall be able to suspend concessions or other obligation with trade effects 
substantially equivalent to the effects of the safeguard measure applied, only for the minimum 
necessary period. Nonetheless, no compensation or  retaliation shall be provided or taken for the 
first three years that the measure is in effect. 
3.4.2.3  Special safeguard measures 
3.41.  Article 3.14 sets out a special safeguard measure (SSM) for imports of some agricultural 
products listed under Annex 3.14. Such measure may be applied whenever average imports of a good from the other Party as a share of global imports over the last three years of imports (within 
the last five years) exceeds the trigger levels established in Annex 3.14. 
3.42.  The SSM shall be applied up to the end of the year and consists of a tariff increase to the 
level of the MFN customs duty established either at the time of import or the base rate, whichever 
is lower. The importing Party should notify the exporting Party about the measure and give 
opportunity for consultations at any time, although it is not required to provide compensation. As at 8 February the Parties had not applied any SSMs. 
3.4.2.4   Balance of payments safeguards 
3.43.  Article 16.04 allows the Parties adopting or maintaining measures to restrict transfers in the 
event of serious balance of payments difficulties or  threats, provided that such restrictions are in 
accordance with the Articles of the Agreement of  the International Monetary Fund. Such measures 
shall avoid unnecessary damages, not be more burdensome than necessary, be temporary and be 
phased out progressively, and be applied on a national treatment or MFN basis. 
3.4.3  Anti-dumping and countervailing measures 
3.44.  With regard to the application of anti-dumping and countervailing measures, the Parties 
reaffirm their rights and obligations under Article VI and XVI of the GATT 1994, the WTO Agreement on Implementation of Article VI of the GATT 1994, and the WTO Agreement on 
Subsidies and Countervailing Measures (Article 7.01). An anti-dumping or countervailing 
investigation may only be initiated between the Parties if an 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 good produced by the domestic industry (Article 7.05). 
3.45.  The investigating authority shall complete the investigation within one year, with the 
possibility of an extension to no more than 18 months (Article 7.06). Nonetheless, the Parties may 
                                               
22 "Critical circumstances" are defined as circumstances where delay of the application of the safeguard 
measure would cause damage that would be  difficult to repa ir (Article 6.01). WT/REG283/1/Rev.1 
 
- 25 - 
 
  hold consultations in order to clarify the facts of the situations and to arrive at a mutually agreed 
solution, prior to the investigation (Article 7.04). The maximum duration of a definitive 
anti-dumping or countervailing duty is five years (Article 7.07).23 
3.4.4  Subsidies and State-aid 3.4.4.1  Domestic support 
3.46.  In Article 3.08, the Parties recognize that domestic support measures could be of crucial 
importance for agriculture but also distort trade and affect production. They will therefore apply 
domestic support, in accordance with the WTO Agreement on Agriculture, without distorting 
internal trade or diminishing market access op portunities for the other Party. To ensure 
transparency, the Committee on Trade in Goods (Art icle 3.16) of the Agreement shall analyse their 
domestic support measures. In addition, the Parties shall exchange information or, upon request of a Party, engage in consultations. 
3.4.4.2  Export subsidies 
3.47.  In Article 3.09, the Parties commit not to adopt or maintain agricultural export subsidies on 
goods in their reciprocal trade as of the entry into force of the Agreement. 
3.4.5  Other regulations 
3.48.  The Parties' state trading enterprises sh all carry out their activities based solely on 
commercial considerations, such as prices, quality, availability, marketability, transportation and 
other condition of purchase or sale. Likewise, the Parties shall accord each other fair and equitable 
treatment, to avoid their activities becoming barriers to trade, in accordance with Article XVII of the GATT 1994 and its interpretative notes, which are incorporated into the Agreement. 
4  PROVISIONS ON TRADE IN SERVICES AND INVESTMENT 
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); 
and Chapter 12 covers temporary entry for business persons. Financial services are not covered by 
either Chapters 10 or 11; the Agreement contains no chapter dedicated to financial services. 
4.1.1  Cross-border trade in services 
4.2.  Chapter 11 covers measures adopted or ma intained by a Party affecting CBTS by service 
suppliers of the other Party. These include measures affecting: (i) production, distribution, marketing, sale and delivery of a "cross-border" service; (ii) purchase or use of, or payment for a "cross-border" service; (iii) access to and use of  distribution and transportation systems in 
connection with the supply of a service; (iv) the pr esence in its territory of a service provider of 
the other Party; and (v) the provision of a bond or other form of financial security as a condition for the supply of a service. This Chapter is complemented by Chapter 12 on Temporary Entry of 
Business Persons as well as Annexes I, II and III, which contain the Parties' lists of reservations. 
4.3.  Under the Agreement, CBTS means the suppl y of a service: i) from one Party to another 
(mode 1: cross-border); ii) in one Party, by a person of that Party to the service consumer of 
another Party (mode 2: consumption abroad); or iii) by a service provider of one Party in another 
Party (mode 4: presence of natural persons). CBTS does not include the supply of a service in one 
Party by an investor of the other Party (mod e 3: commercial presence) which is covered by 
Chapter 10 on Investment. 
                                               
23 Notwithstanding the right to review in accord ance with the WTO Agre ements referred to in 
Article 7.01 of the Agreement. WT/REG283/1/Rev.1 
 
- 26 - 
 
  4.4.  Chapter 11 does not apply to: i) subsidies or grants provided by a Party or a public 
enterprise, including public loans, guarantees and insurance; ii) air services (including domestic 
and international air transportation services) and re lated services in support of air services, except 
for aircraft repair and maintenance services, speciality air services,24 sales and marketing of air 
transport services, and computer reservation system;25 iii) "cross-border" financial services; 
iv) public services or functions such as law enfo rcement, correctional services, income security or 
insurance, or social security or insurance, social  welfare, water supply, public education, public 
training, health, and child care; v) "cross-border" telecommunications services; and vi) public 
procurement by a Party or public enterprise (Article 11.02.3); and vii) measures affecting access 
to the other Party's employment market, or permanent based employment, or conferring any right regarding such access or employment (Article 11.02.4). 
4.1.2  Investments 
4.5.  The Investment Chapter contains the following sections on: definitions applicable to the 
Chapter (Section A), investments disciplines applicable to measures adopted or maintained by the Parties relating to investors and covered investments (Section B); and rules applicable to 
settlement of disputes between a Party and an investor of the other Party (Section C). 
4.6.  Chapter 10 covers measures adopted or mainta ined by a Party relating to: i) investors of the 
other Party
26 with respect to all aspects of its investments; ii) investments27 of investors of the 
other Party in the Party; and, iii) all investments of the investors of a Party in the other Party with 
regard to disciplines on performance requirements, (Article 10.02.1). This Chapter shall apply to both investments made prior to and after the entr y into force of the Agreement by investors of a 
Party in the other Party, except for the provisions under Annex 10 D
28 (Article 10.02.5). 
4.7.  The Investment Chapter does not apply to measures adopted or maintained by a Party 
related to: i) financial services; ii) limiting the participation of an investment of investors of the other Party for reasons of public order or security; iii) public services or functions such as law 
enforcement, correctional services, income security or unemployment insurance, social security 
services, social welfare, water supply, public education, public training, health, and child care
29; 
and iv) 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 (Article 10.02.2). 
4.8.  In the event of any inconsistency between the Investment Chapter and another chapter of 
the Agreement, the latter prevails to the ex tent of the inconsistency (Article 10.13).30 
                                               
24 Specialty air services means, pursuant to Article 11.01, any non-transportation  air services, such as 
aerial fire-fighting, sightseeing, spra ying, surveying, mapping, photography,  parachute, jumping, glider towing, 
and helicopter-lift for logg ing and construction, and other airborne agricultural, industrial, and inspection 
services. 
25 Aircraft repair and maintenance services, sel ling and marketing of air transport services, and 
computer reservation system services  are also covered in the GATS according to the GATS Annex on Air 
Transport Services. 
26 "Investor of a Party" is defined in Article 10.01. 
27 According to Article 10.01, "investment" means any ki nd of goods or rights of any nature acquired or 
used with the purpose of obtaining an  economic profit or other business objective, acquired with resources 
transferred or reinvested by an investor. This may take different forms, including: an enterprise, shares, real 
estate or other properties, or share or benefits arising from the allocation of capita l or other resources to the 
developing of an economic activity. 
28 According to Annex 10 D, the Agreement substitutes the Agreement between Chinese Taipei and 
El Salvador on Reciprocal Promotion of Investments (in force since 25 February, 1997), as well as the Agreement between Chinese Taipei and Honduras on the Treatment and Protection of Investments (in force since 26 October, 1998).  Any covered investments existing prior to the entry into force of the Agreement will be governed at election of the investor by the corresp onding Bilateral Investment Agreement or Chapter 10 for 
a term of 10 years after the entr y into force of the Agreement. 
29 However, if a duly authorized investor from a Party provides such services the investment of this 
investor shall be protected by the provisions of the Chapter 10: Investment (Article 10.02.4). 
30 As for the relation with Chapter 11 on CBTS, the Pa rties further state that an y requirement to post a 
bond or other form of financial security as a condit ion for supplying a CBTS does not make the Investment 
Chapter applicable to that service. Thus, the Investment Chapter applies only to the treatment by the Parties of the posted bond or financial security. WT/REG283/1/Rev.1 
 
- 27 - 
 
  4.2  Denial of benefits 
4.9.  A Party may deny the benefits of Chapter 11 on CBTS to a service provider of the other Party 
where the denying Party decides, according to its effective law, 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 territory of the other Party (Article 11.09). 
4.10.  A Party may deny the benefits of Chapter 10  to an investor of the other Party that is an 
enterprise of such other Party and to the investment of the investor, if investors of a non-party owns or control, directly or indirectly, the enterprise and the enterprise has no substantial business 
activities in the territory of the Party under whose law it is constituted or organized (Article 10.14). 
4.11.  In both cases, the denial of benefits shal l only occur if prior notification and consultation 
have taken place. 
4.3  General provisions on trade in services and investment 
4.3.1  Market access 
4.12.  The Parties grant each other access to their respective markets for their services and 
service suppliers through Article 11.06. The types of  limitations Parties may not adopt or maintain 
mirror those in Article XVI of GATS, with the except ion of the limitation on capital participation by 
investors of the other Parties, which is captured in the national treatment and MFN provisions of Chapter 10 on Investment. Market access limitations are listed by the Parties through existing 
non-conforming measures in their Schedules (Annex I). Market access disciplines do not apply to 
measures that a Party adopts or maintains with respect to sectors, sub-sectors, or activities as set out in its Schedule to Annex II of the Agreement. Therefore, Chapter 11 must be read together with a negative list of non-conforming measures in Annexes I and II of the Agreement. 
4.3.2  National and MFN treatment 
4.13.  A Party shall accord to "cross-border" services and service providers of the other Party 
treatment no less favourable than it accords, in like circumstances, to its own services and service 
providers (national treatment), and to services  and service providers of any non-party (MFN 
treatment), pursuant to Articles 11.03 and 11.04 respectively. 
4.14.  The MFN provision does not apply to: i) the recognition of education or experience obtained, 
or licences or certifications granted in a Party or a non-party, ii) the treatment granted by a Party 
in accordance with any international treaty or agreement, or with regard to the sectors, subsectors and activities as set out Annex III. In this regard, the Parties, under their respective Schedule to Annex III, make MFN exemptions for all modes of supply for treatment granted under: i) bilateral 
and multilateral international agreements in force or signed prior to the date of entry into force of 
the Agreement; and ii) agreements in force or sign ed after the date of entry into effect of the 
Agreement in matters of aviation, fisheries, maritime affairs, telecommunication and financial 
services. 
4.15.  Specific commitments assumed under the national treatment provision shall not be 
construed to require the Parties to compensate for any inherent competitive disadvantages which 
result from the non-local character of the relevant services or service suppliers (Article 11.03). 
4.16.  With regard to investment a Party shall accord to investors of the other Party and to their 
investments treatment no less favourable than it accords, in like circumstances, to its own investors and their investments (national treatment)
31 and to investors of any non-party and their 
investments (MFN treatment), with respect to the establishment, acquisition, expansion, 
                                               
31 National treatment obligation shall not be constr ued to prevent a Party from adopting or maintaining 
a measure that prescribes special formalities in connecti on with the establishment of investments by investors 
of the other Party, such as a requirement that investors be residents of the Party or that investments be legally 
constituted under the laws or regulations of the Party, provided that such formalities do not materially impair the protections afforded by a Party to investors of the other of the other parties or their investments 
(Article 10.12.1). WT/REG283/1/Rev.1 
 
- 28 - 
 
  management, conduct, operation, and sale or other disposition of investments (Articles 10.03 and 
10.04, respectively). 
4.17.  MFN treatment does not apply to treatmen t accorded by a Party in accordance with any 
international agreement, or with regards to sectors, subsectors and activities set out in Annex III (Article 10.09.4); and to procurement, subsidies or grants provided by a Party or a public 
enterprise (Article 10.09.5). 
4.3.3  Local (Comme rcial) 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 local representative office or any other form of enterprise, or 
to be resident locally as a condition for the "cross-border" provision of a service. 
4.3.4  Performance requirements 4.19.  In connection with the establishment, acquisition, expansion, management, conduct, 
operation, or sale or other disposition of an investment of an investor of a Party or of a non-party 
in a Party's territory, the Parties may not impose or enforce performance requirements  
(Article 10.07) , inter alia , export performance; domestic content requirements; purchase, or use of 
domestically produced goods; foreign exchange  inflows requirements; transfer of technology
32; 
sales restrictions; or exclusive supply. 
4.20.  No Party may condition the receipt or continued receipt of an advantage in connection with 
an investment in its territory of an investor of the other Party, on local content, purchase, or use 
of locally produced goods, or foreign exchange inflows (Article 10.07.2). 
4.21.  The prohibition on most performance requirements does not apply to qualification 
requirements for goods or services with respect to export promotion and foreign aid programmes, 
to procurement, and to requirements imposed by an importing Party relating to the content of 
goods necessary to qualify for preferential tariffs or quotas (Article 10.07.3). 
4.22.  Exceptions are, however, foreseen for the Parties to adopt or maintain measures, including 
environmental measures, necessary to secure compliance with laws and regulations that are not 
inconsistent with the Agreement, or to protect human, animal, or plant life or health, or for measures related to the conservation of living or non-living exhaustible natural resources 
(Article 10.07.5). 
4.3.5  Senior management and boards of directors 4.23.  No 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. Nevertheless, the Party may require that a majority of the board of directors or 
equivalent organs of administration of such enterprise be of a particular nationality, or resident in the Party, provided that the requirement does not materially impair the ability of the investor to 
exercise control over its investment (Article 10.08). 
4.24.  These key obligations are, however, not app licable in the case of non-conforming measures, 
as defined in Article 10.09, which must be read together with the measures scheduled by the 
Parties in Annexes I and II (see below). 
4.3.6  Other investment-related provisions 4.25.  No Party may directly or indirectly expropriate or "nationalize" a covered investment 
pursuant to Article 10.11, except for "public interest" purposes, on a non-discriminatory basis, on 
                                               
32 Except in the following situations: i) compliance with a judicial decision or administrative act; 
ii) compulsory licence (TRIPS Article 31); or iii) disclosure of information requirement (TRIPS Article 39). WT/REG283/1/Rev.1 
 
- 29 - 
 
  payment of compensation33 and in accordance with due process of law. In addition, Article 10.10 
sets down requirements on transfers (into or out of  the territory of a Party) related to investments. 
4.26.  According to Article 10.16, the Parties agree to not waive or otherwise derogate from, 
health, safety or environmental measures as an encouragement for the establishment, acquisition, 
expansion or retention in their territories of an investment. If a Party considers that the other 
Party has offered such encouragement, it may request consultations with the other Party but may 
not resort to the dispute settlement mechanism. 
4.3.7  Movement of natural persons 
4.27.  The objective of Chapter 12 is to facilitate temporary entry on a reciprocal basis, to 
establish transparent criteria and procedures for te mporary entry, to guarantee the security of the 
borders, and to protect the local labour force and permanent employment (Article 12.02). The Parties commit to expeditiously grant temporary entry to business persons covered in Annex 12.04 
and endeavour to develop and adopt common crit eria, definitions and interpretations for the 
implementation of Chapter 12 (Article 12.03). Thus, any related-fee shall be limited to the approximate cost of the services rendered. 
4.28.  The Parties, however, may deny temporary entry to a business person when the temporary 
entry of that person might adversely affect the se ttlement of labour disputes or the employment of 
any person who is involved in such a dispute. (Article 12.04). In case of refusal of temporary 
entry, the Parties cannot have recourse to the dispute settlement mechanism under Chapter 15, 
except when the matter involves a pattern of practice,
34 or the available administrative review 
regarding the matter has been exhausted (Article 12.06). 
4.29.  Upon compliance with the existing immigration regulations, each Party shall grant 
temporary entry and expedite document verifi cation to the following business persons: 
4.30.  Business visitors seeking to engage in a business activity such as research and design; 
cultivation, manufacture and production purchasing, marketing; sales; after-sales service; and 
general services (Appendix 12.04(A) (1)). The business visitors need to inter alia  demonstrate the 
international character of the business and the intention not enter into the local labour market.35  
4.31.  Traders and investors , in a managerial or executive position or with specialized 
knowledge, involving essential skills, seeking to carry out substantial trade in goods and services 
principally between the Parties; and establish, develop, administer or provide advice or key technical services to the operation of an investment to which the business person or his/her company has committed, or will commit a substantial amount of capital.  
4.32.  Intra-corporate transferees , who are employed by an enterprise, seeking to render 
management, executive, or functions requiring specialized knowledge to that enterprise or a subsidiary or affiliate thereof. The Parties ma y require the person to have been employed 
continuously by the enterprise for one year immediately preceding the date of the application for 
the admission. 
4.33.  A Party may require labour certification tests or other procedures as well as impose or 
maintain quantitative restrictions, as a condition for authorizing temporary entry for the business 
persons mentioned above. 
4.34.  Special provisions and length of stay (see Table 4.1) regarding temporary entry of business 
persons are contained in Annex 12.04(1). To qualify for permanent residence, business persons 
must satisfy the respective immigration laws in the Parties. 
                                               
33 Such compensation shall be equivalent to the "f air market value" of the expropriated investment 
immediately before the expropriat ion took place (Article 10.11.2). 
34 "Pattern of practice" is defined as a practice repeatedly followed by  the immigration authorities of one 
Party during the representative peri od immediately before the execution of the same (Article 12.01.01).   
35 The business visitor will comply with these requirem ents by demonstrating that: i) the primary source 
of remuneration is outside the concerned Party, and ii) the principal place of the bu siness and the actual place 
of accrual of most of the profits remain outside such Party. WT/REG283/1/Rev.1 
 
- 30 - 
 
  Table 4.1 Parties length of stay for business persons 
Category Migratory 
Condition Length of Stay 
Chinese 
Taipei   
Business 
Person Visitor visa 90 days, with multiple entry and va lidity no longer than one year. 
Renewable provided the conditio ns of issue are maintained  
Business 
Person Resident visa No specified length. Renewable provided the conditions of issue are 
maintained. 
El Salvador   
Business person Business stay 
permit 90 days, which may be extended for the same period of time 
Business 
person Temporary resident 
permit Up to 1 year, which may be extended  for consecutive periods, provided 
that the conditions of issue are maintained 
Honduras   
Business 
person Business stay 
special permit 90 days, which may be extended for the same period of time 
Business 
person Temporary resident 
permit Up to 1 year, which may be extended  for consecutive periods, provided 
that the conditions of issue are maintained 
 
Source: Appendix 12.04 (1) of the Agreement. 
 
4.35.  The Parties' commitments in mode 4 under the GATS and the Agreement are similar. As in 
the GATS, Chinese Taipei undertakes commitments in mode 4 for measures concerning the entry and temporary stay of business visitors, intra-corporate transferees and certain professionals.
36 
El Salvador's GATS commitments in mode 4 do not make any distinction between the different 
sorts of business visitors.37 However, Honduras made partial commitments in mode 4 under the 
GATS related to the entry and temporary stay of senior and specialized personnel associated with 
commercial presence.38  
4.4  Liberalization commitments in trade in services and investment 
4.36.  Both Chapter 10 on Investment and Chapter 11 on CBTS follow a negative-list approach 
which implies that all sectors or sub-sectors are assumed to be open to competition from services 
suppliers or investors of the other Party, unless otherwise specified in Annexes I (existing 
non-conforming measures) and II (future non-conforming measures). 
4.37.  As a consequence, the obligations of national and MFN treatment, market access and 
liberalization of local presence requirements apply fully to CBTS between the Parties in all sectors, 
unless reservations are listed in Annex I and Annex II.39 
4.38.  Similarly, national and MFN treatment as well as liberalization from performance 
requirements, and senior management and board of  director requirements will fully apply to 
investment-related matters in all sectors, except for the reservations contained in Annex I and 
Annex II.40 
4.39.  The Parties commit through future negotiations to further liberalize services sectors by 
eliminating those restrictions (Article 11.10). In this regard, Annex I represents a standstill 
commitment as a Party will be able to maintain, review, or even amend th e measures listed there, 
but in any case these measures will not be made more restrictive. By contrast, Annex II contains 
the specific sectors where the Parties may adopt or maintain new or even more restrictive 
measures. 
                                               
36 The Separate Customs Territory of Taiwan, Peng hu, Kinmen and Matsu, Schedule of specific 
commitments Doc. GATS/SC/1367Rev.1, 2 July 2002. 
37 El Salvador, Schedule of specific commitments, Doc. GATS/SC/29, 15 April 1994. See also 
Supplement 1 (Doc. GATS/SC/29/Suppl.1) and Supplement 2 (Doc. GATS/SC/29/Suppl.2). 
38 Honduras, Schedule of specific commitments, Doc. GATS/SC/38, 15 April 1994. See also Supplement 
1 (Doc. GATS/SC/38/Suppl.1) and Su pplement 2 (GATS/SC/38/Suppl.2). 
39 Any existing non-conforming measures at the loca l or municipal level of government are bound, but 
not listed under Annex I (Article 11.08.1a). 
40 Any existing non-conforming measures at the loca l or municipal level of government are bound, but 
not listed under Annex I (Article 10.09.1a). WT/REG283/1/Rev.1 
 
- 31 - 
 
  4.40.  In addition, the Parties exempt certain se ctors and subsectors listed under Annex III from 
MFN treatment in Chapter 10 on Investment and Chapter 11 on CBTS. 
4.4.1  Chinese Taipei 
4.41.  Under Annex I, Chinese Taipei has listed 22 reservations for existing measures, of which 
only one is horizontal. It also listed nine future measures all of which are sector-specific. 
4.42.  The following sections refer to Chinese Taipei's horizontal and sector-specific commitments 
and liberalization. 
4.4.1.1  Horizontal commitments 
4.43.  As in its GATS schedule, Chinese Taipei maintains in mode 3 a national treatment 
reservation on the leasing or ownership of land for certain uses and in certain areas. Likewise, those lands cannot be used as collateral by persons from Chinese Taipei to the other Parties. 
4.4.1.2  Sector-specific commitments 
4.44.  Compared to the GATS, Chinese Taipei's sector-specific commitments are improved. While 
telecommunications, air transport (with some except ions) and financial services are excluded from 
the "CBTS" Chapter, mode 3 of telecommunications services is covered by the Investment Chapter 
with some reservations. 
4.45.  Table 4.2 compares the degree of liberalizat ion by sector in the Agreement with that in 
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.
41 
Table 4.2 Chinese Taipei: comparison between GATS and the Agreement sector-specific 
commitments in trade in services (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: Annex I 
Reservations 
(by page) Annex II  
Reservations  
(by page) 
1. Business services partial  improved    
A. Professional Services partial  simila r I-TW-3 and 5 II-TW-3  
and 10 
B. Compute r and Related Services  partial  improved    
C. Research and Development  Services  partial  improved    
D. Real Estate Services  partial  improved    
E. Rental/Leasing Services without Operators  partial  improved    
F. Othe r Business Services partial  improved  I-TW-2, 6, 7 
and 24 II-TW-7 
2. Communication services  partial  similar    
A. Postal services ---  --- I-TW-25  
B. Courie r services partial  simila r I-TW-25  
C. Telecommunication services  partial  unbound*    
D. Audiovisual services partial  simila r I-TW-12 II-TW-5 
3. Construction and related engineering services  partial  improved   II-TW-9  
A. General construction work fo r buildings partial  improved    
B. Gene ral construction work fo r civil  
Engineering partial  improved    
C. Installation and assembly work  partial  improved    
D. Building completion and finishing work  partial  improved    
E. Othe r partial  improved    
4. Distribution services partial  similar    
                                               
41 This Factual Presentation follows the WTO Services Sector Classification list, which is based on the UN 
Central Product Classification (CPC) and consists of 12 subsectors (WTO document MTN.GNS/W/120). WT/REG283/1/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: Annex I 
Reservations 
(by page) Annex II  
Reservations  
(by page) 
A. Commission agents' services  partial  simila r   
B. Wholesale trade services partial  simila r   
C. Retailing services partial  simila r   
D. Franchising partial  simila r   
5. Education services partial  improved  I-TW-14  
A. Primary education services  --- improved    
B. Secondary education services  partial  simila r   
C. Higher education services  partial  simila r   
D. Adult education partial  simila r   
E. Other education services  partial  simila r   
6. Environmental services partial  improved  -  
A. Sewage services partial  improved    
B. Refuse disposal services partial  improved    
C. Sanitation and similar services  ---  improved    
D. Othe r --- improved    
7. Financial services partial  unbound    
A. All insurance and insurance-related services  partial  unbound    
B. Banking and othe r financial  services partial  unbound    
8. Health related an d social services partial  improved    
A. Hospital services partial  simila r I-TW-15  
B. Other Human Health Services ---- improved    
C. Social Services ---  improved   II-TW-8  
D. Othe r partial  improved    
9. Tourism and travel re lated services  partial  improved    
A. Hotels and restaurants (including catering) partial  simila r   
B. Travel agencies and tou r operators services partial  simila r   
C. Tourist guides services partial  improved    
10. Recreational and cultural and sporting services  partial  improved    
A. Entertainment services --- improved   
B. News agency services partial  simila r   
C. Libraries, archives, museums and other cultural services  --- improved    
D. Sporting and other recreational services  partial  simila r I-TW-27 II-TW-6  
11. Transport services  partial  improved    
A. Maritime Transport Services  --- improved  I-TW-18  
B. Internal Waterways Transport --- improved  I-TW-16  
C. Air Transport Services partial  improved  I-TW-20  
D. Space Transport  --- improved    
E. Rail Transport Services partial  improved    
F. Road Transport Services partial  improved  I-TW-19  
G. Pipeline Transport  ---  improved    
H. Services auxiliary to all modes of transport  partial  improved  ITW-23, ITW-
26  
I. Othe r Transport Services  ---  improved  I-TW-22  
 
Note: The Table provides an overview of the Member 's commitments under the GATS and in the RTA. In 
doing so, horizontal commitments/reservations are not taken into account. Only modes 1, 2 and 3 are taken 
into account given the horizontal nature of mode 4 commitments. 'Improved' 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. 'Partial' means commitments that, under the GATS, are 
subject to some sector-specific limita tion(s) under market access or national  treatment, under any of the three 
modes. ---: no commitments. * Unbo und for mode1 and 2; mode 3 of tele communication services is, however, 
covered by Chapter 10 on Investment.  Source:  Schedule of Specific Commitments-Revision (GATS/SC/136/Rev.1) and relevant section of Annexes I 
and II to the Agreement.  
4.46.  In business services, Chinese Taipei's commi tments are greater in all subsectors compared 
to its GATS schedule, although some reservations  remain and new ones are introduced such as 
requiring local presence for professional services subsectors, even though this limitation was not 
scheduled under the GATS. New reservations, not co ntained in its GATS schedule have also been WT/REG283/1/Rev.1 
 
- 33 - 
 
  added on services incidental to mining, agricu lture, animal husbandry, forestry and logging.42 
Furthermore, reservations in legal services mi rror those scheduled under the GATS. In addition, 
Chinese Taipei liberalizes mode 1 for personnel placement and supply services as well as fisheries 
and aquaculture services, but with reservations.43 According to Annex II (future measures), any 
enterprise must be incorporated in Chinese Taipei  to operate a private security guard company and 
armed guards must be from Chinese Taipei. 
4.47.  In communication services, Chinese Taipei extends its commitments to postal and other 
services, not included in its GATS schedule. Ho wever, it reserves the business of forwarding 
letters, postal cards or other papers having the nature of correspondence to the 
Chunghwa Post Company Limited . As mentioned, telecommunications services are excluded from 
modes 1, 2 and 4 (Article 11.02.3); albeit the Investment Chapter covers mode 3 with reservations for senior management, boards of directors and shareholding. In radio and television 
services, Chinese Taipei lists reservations banning investment by the other Parties in radio 
broadcasting and television stations and adds maximum investment thresholds for investment by them in cable radio and television systems. 
4.48.  Chinese Taipei improves its commitments in  construction and related engineering services. 
While its GATS schedule excludes mode 1, the latt er is covered in the Agreement. Chinese Taipei, 
however, reserves the right to maintain or adop t any measures regarding "cross-border" trade of 
construction services. 
4.49.  In education 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. Additionally, Chinese Taipei 
bans investment by the other Parties in primary and junior high school. 
4.50.  Full commitments are made in distribution services, tourism and travel related services, and 
environmental services, but the horizontal reservation still applies. Thus, the following modes 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.
44 
4.51.  With regards to health services, its GATS  reservations related to the establishment of 
hospitals and compositions of their boards are ma intained. Furthermore, Chinese Taipei extends its 
commitments to social services, but reserves the right to adopt or maintain any measure related to social services for a public purpose. Furthermor e, it reserves the right to adopt or maintain any 
measure with respect to social services. 
4.52.  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 down reservations for the public welfare lotteries as well as games 
of luck and chance. 
4.53.  Unlike the GATS, Chinese Taipei extends its commitments to the following transport 
services: maritime, internal waterway, space and pipelines. At the same time, it establishes 
reservations related to thresholds for investment by the other Parties and board composition in 
internal waterway transport, maritime transpor t, air transport and airfields management and 
operation services. It also proscribes foreign investment in freight transportation services, limited to ordinary trucking services and container trucking services. Moreover, it adds a new 
requirement, not contained in the GATS schedule, related to the approval of the central highway 
authority to invest in car rental transportation services and freight transportation services.  
                                               
42 In connection with foreign investment in the mini ng sector, mining concessions are granted only to 
natural or legal persons of Chinese Taipei. Also, foreign investment in agriculture, animal husbandry, forestry 
and loggings sectors is restricted. 
43 Chinese Taipei may authorize commercial presence by employment services agencies from the other 
Parties (Annex I p. I-TW-2). However, fishery services may not be provided by nationals of the other Parties 
(Annex I, p. I-TW-6). 
44 Unlike its GATS schedule, Chinese Taipei makes commitments in mode 1 of environmental services. WT/REG283/1/Rev.1 
 
- 34 - 
 
  4.54.  Finally, Chinese Taipei also makes commitments in other services, not included in its GATS 
schedule, but with some reservations. In public utilities, privately-owned utility companies shall 
not have stockholders from or mortgage their prop erty to the other Parties for funds. In addition, 
they may not acquire water rights. In connection to future measures, Chinese Taipei reserves the right to adopt or maintain any measure denying to non-Chinese Taipei investors and their 
investment, or non-Chinese Taipei services suppliers any right or preferences granted to native 
populations or minorities. 
4.4.2  El Salvador 
4.55.  Under Annex I, El Salvador lists 22 reservations for existing measures of which three are 
horizontal. In addition, six future measures are listed in Annex II. 
4.56.  The following sections refer to El Salvador's horizontal and sector-specific commitments and 
liberalization. 
4.4.2.1  Horizontal commitments 
4.57.  Most of El Salvador's horizontal limitations mirror those under its GATS schedule. Thus, 
trade, industry and supply of services by the small scale sector are reserved exclusively for 
Salvadoran nationals by birth. Unlike the GATS, El Salvador, however, allows participation by 
Central American nationals as well as enterprises organized under Salvadoran law in small scale activities, provided that more than 50% of its partners are Salvadoran nationals and capital is 
owned by Salvadoran nationals. As in its GATS sched ule, El Salvador requires that at least 90% of 
personnel employed by firms are Salvadoran nationals. 
4.58.  El Salvador also removes the requirements for foreign companies to provide commercial 
activities in the country and the mandatory registration of foreign investments included under 
GATS. Nonetheless, it adds a limitation, not li sted under the GATS, banning ownership of rural 
lands by the other Parties, unless there is reciprocity between El Salvador and the concerned Party. 
4.4.2.2  Sector-specific commitments  
4.59.  Compared to the GATS, El Salvador's sector-specific commitments are improved. Even 
though telecommunications, air transport (with some exceptions) and financial services are 
excluded from the CBTS Chapter, El Salvador makes improved commitments in other subsectors. 
4.60.  Table 4.3 compares the degree of liberalizat ion by sector in the Agreement with that in 
El Salvador's GATS schedule. In particular, it indicates whether for a given subsector the sectoral commitments in the Agreement (except as indicated in the Agreement horizontal reservations) are 
improved or the same as compared to those in the GATS. 
Table 4.3 El Salvador: comparison betwee n GATS and the Agreement sector-specific 
commitments in trade in services (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: Annex I 
Reservations 
(by page) Annex II  
Reservations 
(by page) 
1. Business services  partial  improved    
A. Professional Services partial  improved  I-ES-19 a  
I-ES-24 II-ES-5  
B. Compute r and Related Services   partial  improved    
C. Research and Development  Services   --- improved    
D. Real Estate Services    ---  improved    
E. Rental/Leasing Services without Operators   partial  improved    
F. Othe r Business Services  partial  improved    
2. Communication services  partial  improved    
A. Postal services    ---  improved   II-ES-1  WT/REG283/1/Rev.1 
 
- 35 - 
 
  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: Annex I 
Reservations 
(by page) Annex II  
Reservations 
(by page) 
B. Courie r services    --- improved    
C. Telecommunication services  partial  partial*    
D. Audiovisual services --- improved  I-ES-8 and 9  
3. Construction and related engineering 
services  --- improved  I-ES-14  
and 17 II-ES-6  
A. General construction work fo r buildings   --- improved    
B. General construction work fo r civil engineering  --- improved    
C. Installation and assembly wor k   --- improved    
D. Building completion and finishing work   ---  improved    
E. Othe r     --- improved    
4. Distribution services  ---  improved    
A. Commission agents' services    --- improved    
B. Wholesale trade services  ---  improved    
C. Retailing services      --- improved    
D. Franchising       ---  improved    
5. Education services  --- improved    
A. Primary education services    --- improved    
B. Secondary education services   --- improved   
C. Higher education services    --- improved    
D. Adult education    --- improved    
E. Other education services    --- improved    
6. Environmental services  partial  improved  -  
A. Sewage services    ---  improved    
B. Refuse disposal services    --- improved    
C. Sanitation and similar services   ---  improved    
D. Othe r partial  improved    
7. Financial services partial  unbound    
A. All insurance and insurance-related services  --- unbound    
B. Banking and othe r financial  services partial  unbound    
8. Health related an d social services --- improved    
A. Hospital services ---  improved    
B. Other Human Health Services   --- improved    
C. Social Services    ---  improved   II-ES-2  
D. Othe r --- improved    
9. Tourism and travel re lated services  partial  improved    
A. Hotels and restaurants (including catering)   partial  improved    
B. Travel agencies and tou r operators services  partial  improved    
C. Tourist guides services    partial  improved    
10. Recreational and cultural and sporting 
services --- improved    
A. Entertainment services  --- improved  I-ES-10, 11 and 
12  
B. News agency services    ---  improved    
C. Libraries, archives, museums and other cultural 
services  --- improved    
D. Sporting and other recreational services   ---  improved   
11. Transport services  partial  improved    
A. Maritime Transport Services  --- improved    
B. Internal Waterways Transport  --- improved   
C. Air Transport Services  partial  improved  I-ES-6 and 7  
D. Space Transport  --- improved    
E. Rail Transport Services  ---  improved    
F. Road Transport Services --- improved  I-ES-13 and 16 II-ES-4  
G. Pipeline Transport  ---  improved    
H. Services auxiliary to all modes of transport  --- improved    
I. Othe r Transport Services  ---  improved    
 
Note: The Table provides an overview of the Member 's commitments under the GATS and in the RTA. In 
doing so, horizontal commitments/reservations are not taken into account. Only modes 1, 2 and 3 are taken 
into account given the horizontal nature of mode 4 commitments. 'Improved' 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. 'Partial' means commitments that, under the GATS, are 
subject to some sector-specific limita tion(s) under market access or national  treatment, under any of the three 
modes. ---: no commitments. * Full for investment; no t covered by the scope of the Agreement for modes 1 
and 2 (Article 11.02 (ii) (e)).  Source:  Schedule of Specific Commitments (GATS/ SC/29) supplemented by do cuments GATS/SC/29/Suppl.1 
and GATS/SC/29/Suppl.2, and relevant section of Annexes I and II to the Agreement.  WT/REG283/1/Rev.1 
 
- 36 - 
 
  4.61.  In business services, El Salvador improves its commitments in professional services, 
computer services and rental/leasing services, pa rtially covered under the GATS. It also adopts 
commitments without reservations in subsectors for which it has no GATS commitments, such as 
research, development and real estate services. The only sector with specific reservations is professional services for which public notaries need an authorization by the Supreme Court of 
Justice to practice in El Salvador, while health professionals require permits issued by the 
Junta de Vigilancia  and architects and engineers must be registered in the Registro Nacional de 
Arquitectos . Furthermore, only Salvadoran nationals can be authorized as public accountants, 
external auditors as well as teachers in national history and constitutional matters. Moreover, 
El Salvador reserves customs' agent services for Central American nationals. In Annex II, 
El Salvador reserves the right to adopt or maintain any measure regarding professional services. 
4.62.  With regards to communication services, El Salvador undertakes commitments in subsectors 
not included in its GATS schedule, such as postal, courier and audiovisual services, although with 
some restrictions. It reserves the right to adopt or maintain any measure with respect to the provision of postal services, while in audiovisual services, concessions and licences for free 
reception broadcasting services are restricted to Salvadoran nationals by birth and enterprises 
established under Salvadoran law. Moreover, commercial advertisements must be produced and recorded by at least 90% Salvadoran nationals; exceptionally, advertisements not fulfilling this 
requirement can be broadcast only for foreign products imported into El Salvador. 
4.63.  El Salvador liberalizes construction and related engineering services, not included in its 
GATS schedule, but with the following reservations: i) for design activities, consulting, consulting 
and management of engineering or architectural proj ects; or any type of work or study relating to 
such construction projects; a foreign enterprise must be contractually associated with a 
Salvadoran enterprise, unless the latter is not available; ii) the construction of particular sorts of warehouses
45 must be authorized by the Ministry of Economy, through an executive agreement, 
prior to the presentation of a formal request addressed to the Dirección de Hidrocarburos y Minas; 
and iii) El Salvador reserves the right to adopt or maintain any measure regarding cross-border trade in construction services. 
4.64.  El Salvador liberalizes distribution, education, environmental, health related and social 
services, and tourism and travel related services without limitations, except for the horizontal reservations applicable to all sectors (explained above).  
4.65.  For environmental services, El Salvador carves out the limitations to mode 3 in its GATS 
schedule while it extends liberalization to modes 1 and 2, which are not included in the GATS.  
4.66.  In Annex II, El Salvador reserves the righ t to adopt or maintain any measure with respect 
to the provision of law enforcement and correctional services, and other social services to the 
extent that they are established or maintained for a public purpose.
46 
4.67.  In contrast to its GATS schedule, El Salvador's liberalization commitments cover 
recreational, cultural and sporting services in the Agreement. Only the entertainment subsector 
has some limitations, as follows: i) foreign artists need an authorization from the Ministerio de 
Gobernación  and to pay fees to the relevant union; they cannot perform more than 30 days 
consecutively or intermittently within a year; ii) the participation of Salvadoran nationals, in public performances, shall be equivalent to 20% of participation by foreigners; and iii) foreign circuses, 
similarly, need to obtain an authorization from the appropriate Ministry, to notify the Asociación 
Salvadoreña de Empresarios Circenses  (ASEC) and to pay fees to the relevant union. 
4.68.  While El Salvador only makes one commitment in air transport in its GATS schedule, it 
improves its commitments to include the remainin g subsectors in the Agreement. Nonetheless, 
El Salvador makes two reservations on existing measures on road transportation: i) limiting concessions for public road transportation of passengers for a specific route; and ii) granting 
                                               
45 This reservation is applicable to the constructi on of: warehouse for petroleum products, warehouse 
with pressured tanks, service station (storage warehous e), and tanks for private co nsumption (warehouse with 
decanting equipment for the stor age of petroleum products). 
46 The social services reaching those conditions are, inter alia , income security or insurance, social 
security services, water supply, social welfare, public education, public training, health and child care. WT/REG283/1/Rev.1 
 
- 37 - 
 
  permits for the supply of services in passenger transport solely to Salvadoran nationals and their 
partners. At the same time, El Salvador reserves the rights to adopt or maintain any measures 
restricting the transportation of goods by road. In air services, El Salvador has two limitations: 
i) the supply of specialty air services requires prior authorization from the Autoridad de Aviación 
Civil, but subject to reciprocity; and ii) recognition or validation of licences, certificates and permits 
issued by foreign air transport authorities to technical aeronautical staff will be granted on a 
reciprocity basis. 
4.69.  Finally, El Salvador also sets down some restrictions related to: i) minimum percentage of 
Salvadoran nationals' participation in a cooperative production society; and ii) reservation on the 
establishment of duty free commercial centres solely to Salvadoran nationals by birth. Moreover, El Salvador also reserves the right to adopt or maintain any measure according rights or preferences to socially or econom ically disadvantaged minorities. 
4.4.3  Honduras 
4.70.  Under Annex I, Honduras has listed 43 rese rvations for existing measures of which four 
measures are horizontal. Ten future measures are also listed in Annex II; only one is horizontal. 
4.71.  The following sections refer to Honduras' horizontal and sector-specific commitments and 
liberalization. 
4.4.3.1  Horizontal commitments 
4.72.  Compared to the GATS, Honduras' horizontal commitments in mode 3 and 4 are broader. In 
connection with CBTS, Honduras carves out the criteria for the authorization to establish commercial presence and training duties. In mode 4, Honduras also expands its coverage and withdraws the threshold for the number of foreign workers in an enterprise and the language 
requirements for managers and supervisors. 
4.73.  Notwithstanding this liberalization, some restrictions remain but with some variations with 
the GATS. For instance in mode 3, Honduras' reservations are more detailed and allow exceptions. 
Unlike its GATS reservation in mode 3, any person may acquire, possess, hold, or lease for up to 
40 years urban lands in Honduras' border zones, upon authorization from the Secretaría de Estado 
en el Despacho de Turismo. Moreover, foreign investors cannot engage in small-scale industry and 
trade under both its GATS schedule and the Agreement albeit the latter allows investment by 
naturalized investors in those activities insofar as their investments do not exceed 150,000.00 lempiras (about US$7,500). 
4.74.  Honduras also introduces two new reservations: i) societies constituted under foreign laws 
must permanently have in Honduras at least one representative with ample facilities to trade; and 
ii) foreign cooperatives require authorization from the Instituto Hondureño de Cooperativas de 
Honduras  to establish in Honduras.   
4.4.3.2  Sector-specific commitments 
4.75.  Compared to the GATS, Honduras' sector-specific commitments are broader. As mentioned, 
telecommunications, air transport (with some except ions) and financial services are excluded from 
the CBTS Chapter. In this regard, mode 3 of tele communication services and air transport services 
are, however, covered by the Investment Ch apter with some reservations listed in the 
non-conforming lists. 
4.76.  Table 4.4 compares the degree of liberalizat ion by sector in the Agreement with that in 
Honduras' GATS Schedule. In particular, it indicates whether for a given subsector the sectoral 
commitments in the Agreement (except as indicated in the Agreement horizontal reservations) are improved or the same as compared to those in the GATS.  WT/REG283/1/Rev.1 
 
- 38 - 
 
  Table 4.4 Honduras: comparison between GATS and the Agreem ent sector-specific 
commitments in trade in services (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: Annex I  
reservations 
(by page) Annex II  
reservations  
(by page) 
1. Business services  partial  improved    
A. Professional Services --- improved  I-HO-25, 26, 29, 
30-38 II-HO-1, 2, 3  
B. Compute r and Related Services partial  improved    
C. Research and Development  Services --- improved    
D. Real Estate Services ---  improved    
E. Rental/Leasing Services without Operators --- improved    
F. Othe r Business Services partial  improved  I-HO-5, 6, 28, 39, 
44, 45 and 46  
2. Communication services  partial  improved    
A. Postal services ---  --- I-HO-40  
B. Courie r services --- improved    
C. Telecommunication services  partial  unbound*  I-HO-7 II-HO-5  
D. Audiovisual services --- improved  I-HO-8, I-HO-9  
3. Construction and related engineering 
services --- improved    
A. General construction work fo r buildings --- improved    
B. General construction work fo r civil engineering  --- improved  I-HO-12  
C. Installation and assembly wor k --- improved    
D. Building completion and finishing wor k ---  improved    
E. Othe r --- improved    
4. Distribution services  ---  improved    
A. Commission agents' services  --- --- I-HO-10  
B. Wholesale trade services  ---  improved  IHO-43  
C. Retailing services --- improved  I-HO-11 and 43 II-HO-9  
D. Franchising ---  improved    
5. Education services  --- --- I-HO-13  
A. Primary education services  --- ---   
B. Secondary education services --- ---   
C. Higher education services ---  ---   
D. Adult education --- ---   
E. Other education services ---  ---   
6. Environmental services  --- improved  -  
A. Sewage services ---  improved    
B. Refuse disposal services --- improved    
C. Sanitation and similar services ---  improved    
D. Othe r --- improved    
7. Financial services partial  unbound    
A. All insurance and insurance-related services partial  unbound    
B. Banking and othe r financial  services partial  unbound    
8. Health related an d social services --- improved    
A. Hospital services ---  improved    
B. Other Human Health Services --- improved    
C. Social Services ---  improved   II-HO-6  
D. Othe r --- improved    
9. Tourism and travel re lated services  partial  improved    
A. Hotels and restaurants (including catering) partial  improved    
B. Travel agencies and tou r operators services ---  improved    
C. Tourist guides services --- improved    
10. Recreational and cultural and sporting 
services --- improved  I-HO-41  
A. Entertainment services  --- improved  I-HO-15  
B. News agency services ---  improved    
C. Libraries, archives, museums and other 
cultural services --- improved    
D. Sporting and other recreational services ---  improved  I-HO-16 and 17  
11. Transport services  partial  improved    
A. Maritime Transport Services  --- improved  I-HP-23  
B. Internal Waterways Transport --- improved    
C. Air Transport Services  partial  improved  I-HO-20, 21, and 42  II-HO-4  
D. Space Transport --- improved    
E. Rail Transport Services  ---  improved  I-HO-22  
F. Road Transport Services partial  improved  I-HO-24  WT/REG283/1/Rev.1 
 
- 39 - 
 
  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: Annex I  
reservations 
(by page) Annex II  
reservations  
(by page) 
G. Pipeline Transport  ---  improved    
H. Services auxiliary to all modes of transport  --- improved    
I. Othe r Transport Services  ----  improved    
 
Note: The Table provides an overview of the Member 's commitments under the GATS and in the RTA. In 
doing so, horizontal commitments/reservations are not taken into account. Only modes 1, 2 and 3 are taken 
into account given the horizontal nature of mode 4 commitments. 'Improved' 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. 'Partial' means commitments that, under the GATS, are 
subject to some sector-specific limita tion(s) under market access or national  treatment, under any of the three 
modes. ---: no commitments. * Unbo und for mode1 and 2; mode 3 of tele communication services is, however, 
covered by Chapter 10 on Investment.  Source:  Schedule of Specific Commitments (GATS/ SC/38) supplemented by do cuments GATS/SC/38/Suppl.1 
and GATS/SC/38/Suppl.2, and relevant sectio n of Annexes I and II to the Agreement. 
 
4.77.  In business services, Honduras makes commitments in professional services, research and 
development services, real estate services, and rental/leasing services, for which it has no commitments under the GATS, although it makes reservations. Registration in professional schools 
and legal residence in Honduras are required for practicing professional services; while 
authorization from the relevant professional association is required for consulting services. The transmission of electrical energy services must be exclusively by the Empresa Nacional de Energía 
Eléctrica , whereas distribution can be by any enterprise provided that it is established under 
Honduran law as a commercial corporation with nominative stock. As for medical services, employers must respect the percentage ceilings on foreign personnel.
47 For certain professional 
services, Honduras may: i) require foreigners an d foreign enterprises to pay higher registration 
fees than those required of Honduran national s or enterprises established under Honduran law;48 
ii) request that Honduran nationals by birth supply such services;49 and iii) reserve the right to 
adopt or maintain any measure that pertains to obligatory membership in a professional 
association.50 
4.78.  With regard to communication services, Honduras undertakes commitments in courier and 
audiovisual services, for which it has no GATS commitments, but with some reservations. Thereby, 
Honduras exclusively reserves postal services to Empresa Hondureña de Correos (HONDUCOR). As 
for audiovisual services, the management of printed newspapers, radio or televised services and their intellectual, political and administrative orientation will be managed exclusively by Hondurans by birth. As stated above, the CBTS Chapter do es not cover telecommunication services; however 
it is covered by the Investment Chapter with so me restrictions, which mirrors GATS reservations.
51 
4.79.  Unlike its GATS schedule, Honduras undertakes commitments in construction and related 
engineering services in the Agreement with one reservation in the civil engineering subsector. 
                                               
47 Employers are not allowed to hire more of a 5% of foreign nurses (I-HO-36).  Likewise, employers 
cannot hire more than 10% of foreign doctors and th e 90% left should be Honduran doctors by birth 
(I-HO-37).  Similarly, it is prohibited to hire or appo int more than 20% of foreig n surgeon dentists; the rest 
should be Honduran surgeon dentists, except those professionals do not exist in Honduras (I-HO-38). 
48 This reservation is applicable to the following professional services: Administration Consulting 
(I-HO-28), Agricultural Engineering and Agronomy (I-HO-31), Veterinarians (I-HO-33), Microbiologists and Clinicians (I-HO-34). 
49 This condition is required in the following cases:  agrarian reform benefici aries (I-HO-5), Fisheries 
(I-HO-6), Customs Agents and Customs Agencies (I-HO-18), Notaries (I-HO-35). 
50 This reservation may be applicable to the followi ng professional services: Agronomists (II-HO-1), 
Social Workers (II-HO-2), Chemists and Pharmacists (II-HO-3). 
51 The reservations are the following: i) Foreign governments may not directly participate in the 
provision of public telecomm unication services (I-HO-7); ii) The services  of aerial, marine, military and public 
security telecommunications will be subject to the dispositions of the  Ley del Subsector de  Telecomunicaciones ; 
and iii) Honduras reserves the right to adopt, maintain, or modify the level of participation in the ownership of the Empresa Hondureña de Telecomunicaciones (HONDUTEL) (II-HO-5) . WT/REG283/1/Rev.1 
 
- 40 - 
 
  According to the latter, consulting and constructi on enterprises must be organized under Honduran 
law in order to be members of the Colegio de Ingenieros de Honduras  and to implement civil 
engineering projects in Honduras. 
4.80.  Honduras has commitments in distribution services, even though it also restricts some 
subsectors for its nationals. Thus, only Honduran or Honduran mercantile societies are authorized 
to be concessionaries and to sell petroleum products. Moreover, the wholesale and retail 
distribution of some military items (listed in Annex I) are reserved solely for the Fuerzas Armadas 
de Honduras . 
4.81.  Similar to its GATS schedule, Honduras does not assume deep commitments in education 
services in the Agreement. Reservations include requiring directors, supervisors and teachers to be Hondurans nationals by birth although foreigners may teach specific subjects at the middle or high school levels if Honduran nationals are not available. In addition, private schools at all levels must 
be established under Honduran law, but may be owned by foreigners. The creation and operation 
of public or private centres of higher education require the approval of the Consejo de Educación 
Superior prior ruling of the Consejo Técnico Ejecutivo. Finally, all teachers must have the title and 
academic degree corresponding to the level and su bject they will teach; in addition 25% must 
have post graduate degrees and 50% three years of  experience in higher education in order to 
enter an educational programme. 
4.82.  Unlike the GATS, Honduras undertakes full commitments in environmental services, health 
related services, and tourism and travel related services, although horizontal commitments apply to those sectors. As for social services, Hondur as reserves the right to adopt or maintain any 
measure with respect to the provision of law enforcement and correctional services and other 
social services.
52 
4.83.  Honduras adopts commitments in recreational, cultural and sporting services, for which it 
has no GATS commitments, subject to some reservations. Foreign soccer players require a 
certificate issued by the Ministro de Gobernación y Justicia  to be able to play and each affiliated 
club can register a maximum of four foreign players. Moreover, only Hondurans by birth and societies constituted under Honduran law may request licences to operate casinos and gambling. 
Additionally, foreign music artists must pay 5% of the contract fee to the Sindicato de Artistas de 
Honduras to perform in Honduras. Finally, the National Lottery can be administrated solely by the 
Patronato Nacional de la Infancia.  
4.84.  With regards to transport services, Ho nduras extends its commitments to maritime 
transport, rail transport and pipeline transport, for which it has no commitments under the GATS, 
although with some reservations. Honduras continues to restrict commercial coastal navigation for Honduran merchant vessels although foreign vessels may participate in this activity when 
Honduran vessels are not available. As for air services: i) national air transportation is reserved for 
Honduran companies; ii) only Hondurans can supply aeronautical technical services; iii) the State has the authority to control and provide auxiliary services of airplane navigation; and iv) Honduras 
reserves the right to adopt or maintain any measur es that apply to the supply of auxiliary services 
for airplane navigation. Regarding rail transport, the Ferrocarril Nacional de Honduras  can sell its 
subsidiary companies only to Honduran companies and its manager must be of Honduran nationality by birth. In road transport services, Honduras undertakes further commitments in 
rental vehicles, maintenance, repairing and supporting services; by contrast it restricts passenger 
and foreign domestic transportation to Honduran nationals and enterprises. 
4.5  Regulatory provisions 
4.5.1  Domestic regulation 
4.85.  Article 11.7 of the Agreement, applicable to modes 1, 2 and 4, mirrors GATS Article VI: 4. 
Both provisions aim to prevent that any measure adopted by the Parties does not constitute an 
unnecessary barrier to "CBTS"; thereby the Parties shall endeavour to ensure that such measure 
                                               
52 It includes, inter alia , income security or insurance, social security or insurance, social welfare, water 
supply, public education, public training, health and chil d care, provided that those services are established or 
maintained for a public purpose. WT/REG283/1/Rev.1 
 
- 41 - 
 
  is: i) based on objective and transparent criteria, and ii) not more burdensome than necessary to 
ensure the quality of the services. However, whil e the GATS refers to qualification requirements 
and procedures, technical standards and licensing requirements, Article 11.7 concerns permission, 
authorization, licensing or certifications. Furthermore, Article 11.7 unlike the GATS, requires that the measures should not constitute a disguised restriction on the "cross-border" provision of a 
service. 
4.5.2  Recognition 4.86.  The Agreement does not contain any specific obligation on recognition. Footnote 2 of 
Chapter 11 explicitly prohibits the application of MFN treatment when a Party autonomously or 
through an agreement, recognizes the education or experience obtained, requirements met, or 
licences or certifications granted of a Party or non-party. 
4.5.3  Subsidies 
4.87.  In accordance with Article 11.02 subparagraph 3 (a), Chapter 11 on "CBTS" shall not apply 
to subsidies or grants provided by a Party, including public loans, guarantees and insurance. 
4.5.4  Safeguards 
4.88.  According to Article 10.10.4 and 11.13.3,  a Party may prevent a transfer or payment 
through the equitable, non-discriminatory, and good faith application of its laws relating to: i) bankruptcy, insolvency, or the protection of right to creditors; ii) issuing, trading, or dealing in 
securities, futures, options, or derivatives; iii) financial reporting or record keeping of transfers 
when necessary to assist law enforcement or financial regulatory authorities; iv) criminal or penal o f f e n s e s ;  o r  v )  e n s u r i n g  c o m p l i a n c e  w i t h  o r d e r s  o r  j u d g m e n t s  i n  j u d i c i a l  o r  a d m i n i s t r a t i v e  proceedings. 
4.5.5  Other 
4.89.  The Parties establish the Committee on Investment and "Cross-border Trade" in Services, 
pursuant to Article 11.14.1, which is entitled, inter alia, to supervise the implementation of both 
chapters, to discuss and analyse relevant matters and to exchange information. The Committee 
had not as at 8 February 2013 met.  
4.90.  According to Article 11.11, the Parties shall set up procedures for notification regarding 
amendments of the non-conforming measures and consultations on reservations for further 
liberalization. Notwithstanding the previous provision, nothing in the Agreement requires the Parties to provide confidential information disclosure of which may impede law enforcement, or otherwise be contrary to the public interest or injure legitimate trade interests of public and 
private enterprises. 
5  GENERAL PROVISIONS OF THE AGREEMENT 5.1  Transparency 
5.1.  In addition to transparency provisions under other Chapters, Chapter 13 addresses 
transparency. It requires the Parties to publish or make available their legal instruments of general application. To the extent possible, each Party shall notify the other Party of any proposed or 
actual measure that may affect substantially the interests of the other Party under the Agreement. 
5.2.  Furthermore, each Party shall designate an information centre to facilitate communication 
between the Parties on any matter covered by the Agreement. This information centre shall identify a contact point of a Party for specific matters, upon request of another Party. Moreover, 
communications or notification should be delivered to the information centres.  
5.3.  Pursuant to Articles 13.05 and 13.06, the Parties shall ensure that they respect the 
guarantee of hearings, legality and due process principles in their legal and administrative WT/REG283/1/Rev.1 
 
- 42 - 
 
  proceedings. Besides, each Party shall maintain impartial and independent tribunals or procedures 
for the purpose of the prompt review and correction of final administrative actions. 
5.4.  Finally, the Parties agree that notifications, communications, information, writings, hearings 
and proceedings as well as those relating to procedures under Chapter 15 should be in their official languages along with a corresponding English translation (Article 13.09). 
5.2  Current payments and capital movements 
5.5.  Articles 10.10 and 11.13 provide that each  Party shall permit all transfers and payments, 
relating to covered investments and "cross-border" supply of services in the other Party to be 
made freely and without delay, in a freely usable currency.  
5.3  Exceptions 5.6.  Chapter 16 on Exceptions covers general,  security, balance of payments, disclosure of 
information, and taxation exceptions. 
5.7.  The Agreement incorporates Article XX of the GATT 1994 and its interpretative notes, which 
are applicable to Part Two (Trade in Goods) an d Part Three (Trade Barriers); subparagraphs (a), 
(b) and (c) of Article XIV of the GATS are also incorporated and applicable to Part Four 
(Investment, services and related matters) as well as Part Two (Trade in Goods) and Part Three 
(Trade Barriers), to the extent that any of its provisions apply to services (Article 16.02). 
5.8.  Security exceptions are also included in the Agreement through Article 16.03, which reflects 
provisions in Article XXI of the GATT 1994, Article XIV bis of the GATS, and Article 73 of the WTO 
TRIPS Agreement. 
5.9.  Pursuant to Article 16.06, nothing in the Agreement shall apply to taxation measures or 
affect the rights and obligations of any Party under any tax convention. In the event of any 
inconsistency between the Agreement and such conven tion, the latter will prevail to the extent of 
the inconsistency. Notwithstanding this, Article 3.03 (National Treatment) and its related provisions and Article 3.13 (Export Taxes) shall apply to taxation measures. By the same token, 
national treatment provisions in Chapters 10 and 11 shall apply to taxation measures other than 
on income, capital gains or on the taxable capital of enterprises that relate to the purchase or consumption of particular services. 
5.10.  The Parties are not obliged to furnish or allow access to information the disclosure of which 
impedes law enforcement, or would be contrary to the Party's law protecting personal privacy or the financial affairs and accounts of individual customers of financial institutions. 
5.4  Accession and Withdrawal 
5.11.  The Agreement has no provision on accession by non-parties. 
5.12.  Any Party may notify in writing the other Party of its intentions to withdraw from the 
Agreement. Such withdrawal shall become effe ctive 180 days after the notification, unless the 
Parties agree on a different period. Nonetheless, the Agreement shall remain in force for the other 
Parties, provided that Chinese Taipei is not the withdrawing Party.  
5.13.  Any amendment to the Agreement shall re quire the agreement of all the Parties. Upon 
approval in accordance with the applicable lega l procedure of each Party, such amendment shall 
constitute an integral part of the Agreement. 
5.5  Institutional framework 5.14.  Chapter 14 of the Agreement sets up th e institutional framework of the Agreement. 
5.15.  The Administrative Commission is the high est body of the Agreement and is composed of 
cabinet-level representatives as detailed in Annex 14.01. It is in charge of: i) supervising the WT/REG283/1/Rev.1 
 
- 43 - 
 
  implementation of the Agreement and developments; ii) assessing its results; iii) resolving any 
disputes that may arise regarding the interpretation or application of the Agreement;53 
iv) supervising the work of all committees; v) suggesting amendments; and iv) considering any 
matter that may affect the operation of the Agreement. Furthermore, the Commission is entitled, inter alia , to modify the tariff reduction schedules (to incorporate excluded goods and speed up 
tariff elimination), the rules of origin, and the lists of non-conforming measures; to create new 
committees; and to develop any regulations needed for the implementation of the Agreement. The 
Commission shall take its decisions by consensus and convene at least one a year in regular 
session or upon request of a Party in extraordinary session.  As at 8 February 2013 the Commission 
had not met. 
5.16.  In addition, a number of committees are established under various Chapters and are 
responsible for: i) supervising the implementa tion of the Chapter under their competence; 
ii) considering any proposed or actual measure that may affect the implementation of the 
Agreement; iii) requesting technical reports; iv) evaluating and recommending to the Commission 
any proposal for amendment; and v) carrying out any instructions by the Commission. A 
committee may create ad hoc  working groups of experts, for completing technical studies it deems 
necessary to carry out its mandate. According to  the Parties as at 8 February 2013 no such 
committees had been established. 
5.17.  Technical support is provided by the Administrative Sub-commission, responsible for: 
i) preparing and revising technical documents for decision-making; ii) following-up on the 
decisions taken by the Commission; iii) supervis ing the committees and working groups; and iv) 
considering any other matter that may affect the operation of the Agreement; and the Secretariat 
which, inter alia , assists the Commission and Sub-commission, supports the dispute settlement 
arbitrating groups and procedures, and supports the work of committees and working groups.  
                                               
53 Pursuant to Article 15.06, the Commission may convene after the Consultations stage, upon request 
of any consulting party.  It means that the discussion of the dispute within the Commission will constitute an optional stage of the dispute settlement procedure established under Chapter 15 (Dispute Settlement). WT/REG283/1/Rev.1 
 
- 44 - 
 
  5.18.  Chart 5.1 below summarizes the bodies established by the Agreement. 
Chart 5.1  
 
 
5.6  Dispute settlement 
5.19.  Chapter 15 lays down the dispute settlem ent provisions of the Agreement. Section A 
governs disputes between the Parties whereas Section B regulates domestic proceedings and the 
settlement of private commercial disputes. In addition, Section C of Chapter 10 on Investment sets up a mechanism for disputes between investors and the Parties. 
5.20.  Except as otherwise provided in the Agreement,
54 provisions on disputes between the 
Parties shall apply: 
i. with respect to the prevention or settlement of all disputes between the Parties 
regarding the interpretation or application of the Agreement; 
ii. wherever a Party considers that an actual or proposed measure55 of the other Party 
is or would be inconsistent with the obligations of the Agreement or that other Party has otherwise failed to carry out its obligations under the Agreement; or 
iii. wherever a Party considers that an actual or proposed measure of the other Party 
causes or would cause nullification or impairment in the sense of Annex 15.02.
56 
                                               
54 In this regard, Article 6.05 preven ts the Parties from establishing a Panel before the application of a 
safeguard measure by the other Party. Moreover, Arti cle 8.02 and 9.02 provide that the Parties must have 
recourse to the WTO Dispute Settlement Mechanism fo r any formal dispute rela ted to their rights and 
obligations under the SPS Agreement and the TBT Agreemen t respectively. Additionally, article 12.06 prevents 
the Parties from initiating Consultations under Article 15.5 regarding the denial to grant temporary entry, unless the matter involves a pattern of practice, an d the business person has exhausted the available 
administrative review regarding the particular matter. Finally, Chapter 17 on Cooperation is excluded from the 
scope of application of Chap ter 15 on Dispute Settlement. 
55 Proposed measures can only be examined in the co nsultation stage or eventually in the commission, 
but not in the arbitral stage, pursuant to Article 15.07 paragraph 6. Administrative Commission 
(Art. 14.01) 
Administrative Sub-commission 
(Art. 14.02) 
 
Committee on Trade in Goods 
(Art. 3.16)  
Committee on Rules of Origin and 
Custom Procedures 
(Art. 4.15) 
Committee on SPS Measures 
(Art. 8.12 ) 
Committee on Investment and 
CBTS (Art. 11.14) Secretariat 
(Art. 14.03 ) 
Ministerial Committee for Economic 
and Commercial Cooperation 
(Art. 17.13) Advisory Committee on Private 
Commercial Disputes 
(Art. 15.19 ) 
Committee on Standards, 
Metrology, and Authorization 
Procedures (Article 9.13)  Information 
Centers 
(Article 9.11) Information 
Center 
(Article 13.02) WT/REG283/1/Rev.1 
 
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  5.21.  When the dispute is connected with provisions under the Agreement and the WTO 
Agreements, the complaining Party may choose the forum in which to settle the dispute. The 
forum chosen should be used to the exclusion of the other, once a Party has requested the 
establishment of a panel. 
5.22.  The Parties are encouraged to resolve disputes through consultations and to arrive at a 
mutually satisfactory resolution. In the event that the consultations fail to settle the dispute within 
60 days after the date of receipt of the request for consultations (15 days in the case of perishable 
goods57), the complaining Party may refer the matter to the Commission (Article 14.01). The latter 
may: i) make recommendations ii) resort to good offices, conciliation, mediation or other dispute 
resolution procedures; or iii) call on technical advisers or create such working groups or expert groups as it deems necessary (Article 15.06, paragraph 3). 
5.23.  The complaining party may also request the establishment of an arbitral panel, regardless of 
whether the matter has been referred to the Commission or not (Article 15.07).
58 The panel shall 
comprise three members, who are selected from a ro ster of up to 30 potential panelists set up by 
the Parties (Articles 15.08 and 15.10, paragraph 1.a). The Chair of the panel should be chosen 
within 15 days, following which each Party may select a panelist within an additional 15 days. If 
one of the panelists is not selected, such panelist shall be chosen by lot from the roster. The Model Rules of Procedure ensure the right to at least one hearing as well as the opportunity for each 
Party to submit initial and rebuttal written submissions, which are confidential. 
5.24.  The panel shall present its preliminary report to the Parties, within 90 days after its 
establishment containing findings of fact, determinations, and recommendations. The final report shall be presented to the Parties within 30 days of the preliminary report, which shall be published 
within 15 days after its notification, unless the Pa rties otherwise agree (Article 15.14). The report 
is binding on the disputing parties and shall be implemented within six months, unless the Parties otherwise agree. 
5.25.  Within 15 days after the expiry of the implementation period, the panel shall determine 
whether the party complained against has complied with the final report. If this is not the case, the complaining party may suspend benefits in accordance with the provisions of Article 15.16. 
Notwithstanding the previous provisions, the party complained against may seek an agreement on 
alternative compensation measures when it cannot comply with the final report. Failing such an agreement, the complaining party may 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 disputing parties.  
5.26.  The following Chart 5.2 provides a sy nopsis of the dispute settlement process. 
                                                                                                                                               
56 In Annex 15.02, the Parties clarify the coverage as well as the determination of possible elements of 
nullification and impairment.  Thereby, nullification and im pairment concept is applicable to Part Two (Trade in 
Goods); Part Three (Trade Barriers); and Chapter Eleven (CBTS). 
57 The term "perishable goods" means perishable agri cultural and fish good classified in chapters 1 
through 24 of the Harmonized System; as long as the go ods are located in customs at the point of arrival and 
they are not being released. 
58 Footnote 2 of Chapter 15 provides that the Co mmission stage should not be understood as a 
preliminary step needed to request the establishment of an arbitral panel. WT/REG283/1/Rev.1 
 
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  Chart 5.2  
Agreement specific Dispute Settlement mechanism 
 
 
  
 Consultations  
(Art. 15.05 ) 
Commission 
(Art. 15.06) Alternative methods of dispute resolution  
(i.e. good offices, conciliation, mediation) 
(Art. 15.06) 
Request for establishment of a 
Panel (Art. 15.07)  
Preliminary Report  
(Art. 15.13) 
Final Report 
(Art. 15.14 ) 
Implementation 
(Art.15.15) Non-compliance 
Suspension of benefits  
(Art. 15.16) 30 da ys 60 days 
(15 days for perishable goods) 
60 days 
(15 days for 
perishable 
goods) 
Panel selection 
(Art. 15.10)  30 da ys 
90 da ys 
30 da ys 
6 months 
Compensation  
(Art. 15.16) 
Suspension of 
benefits  (Art. 15.16) 30 days 
 6 months  
Panel ruling on 
compliance or level 
of suspension  
Report issued  60 (30) days Publication 
(Art. 15.14 ) 15 days WT/REG283/1/Rev.1 
 
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  5.27.  Section C of Chapter 10 on Investment governs the settlement of disputes between a Party 
and an investor of another Party, regarding violations of obligations in Section B. After 
consultations and notice about its intentions, a disputing Party may submit the claim to arbitration 
under: i) the ICSID Convention (provided that both the disputing Party and the Party of the 
investor are contracting parties of the Convention ); ii) the Additional Facility Rules of ICSID;59 and 
iii) the UNCITRAL Arbitration Rules; or iv) the ICC Arbitration Rules (Article 10.22). Pursuant to 
Article 10.24, each Party consents to submit a claim to arbitration. The remaining provisions 
regulate the procedure by an arbitral tribunal. The final award is binding between the disputing 
Parties and can be enforced under the New York Convention or the ICSID Convention. 
5.7  Relationship with other agreements concluded by the Parties 5.28.  In Article 1.03, the Parties affirm their existing rights and obligations with respect to each 
other under the WTO Agreement and other agreements to which the Parties are party. When there 
are inconsistencies between the Agreement, an d the WTO Agreement and other agreements to 
which the Parties are party, the Agreement prevails. However, in case of inconsistencies between the Agreement, and the following agreements: 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 Wastes and Their Dispos al these last three agreements shall prevail 
provided that the Parties comply with their obligations in a manner consistent with the Agreement 
to the fullest extent possible. 
5.29.  Table 5.1 lists the notified and non-notified trade agreements that Chinese Taipei, 
El Salvador or Honduras as party to  (excluding the current Agreement). 
Table 5.1 Honduras, El Salvador and Chinese Ta ipei: Participation in other RTAs (notified 
and non-notified in force), as of 23 April 2013
 
Partner / Agreement Date of 
entry 
into force Type of 
Agreement GATT/WTO Notification 
Year WTO Provision 
HONDURAS  
Colombia  
(Colombia-Northern Triangle) 27.03.10 Goods & Services 2012 GATT Art. XXIV & GATS Art. V 
Panama (Panama-Central 
America) 09.01.09 Goods & Services 2009 GATT Art. XXIV & GATS Art. V 
Chile (Chile-Central America) 19.07.08 Goods & Services 2011 GATT Art. XXIV & GATS Art. V 
DR-CAFTA 01.04.06 Goods & Services 2006 GATT Art. XXIV & GATS Art. V 
Dominican Republic (Dominican 
Republic-Central America) 19.12.01 Goods & Services 2012 GATT Art. XXIV & GATS Art. V 
Mexico (Mexico-Northern 
Triangle)a 01.06.01 Goods & Services 2006 GATT Art. XXIV & GATS Art. V 
CACM 04.06.61 Goods 1961 GATT Art. XXIV 
Mexico-Central America  01.01.13 Goods & Services Not notified 
Venezuela (LAIA, AAP.A25TM 
N°16) 22.09.86 Goods Not notified 
EL SALVADOR  
Colombia (Colombia-Northern 
Triangle) 01.02.10 Goods & Services 2012 GATT Art. XXIV & GATS Art. V 
DR-CAFTA 01.03.06 Goods & Services 2006 GATT Art. XXIV & GATS Art. V 
                                               
59 International Centre for Settlement of Investment Disputes, Convention on the Settlement of 
Investment Disputes between States  and Nationals of other States. WT/REG283/1/Rev.1 
 
- 48 - 
 
  Partner / Agreement Date of 
entry 
into force Type of 
Agreement GATT/WTO Notification 
Year WTO Provision 
Panama (Panama-Central 
America) 11.04.03 Goods & Services 2005 GATT Art. XXIV & GATS Art. V 
Chile (Chile-Central America) 01.06.02 Goods & Services 2004 GATT Art. XXIV & GATS Art. V 
Dominican Republic (Dominican 
Republic-Central America) 04.10.01 Goods & Services 2012 GATT Art. XXIV & GATS Art. V 
Mexico (Mexico-Northern 
Triangle) a 15.03.01 Goods & Services 2006 GATT Art. XXIV & GATS Art. V 
CACM 04.06.61 Goods 1961 GATT Art. XXIV 
Mexico-Central America  01.09.12 Goods & Services Not notified 
Venezuela  
(LAIA, AAP.A25TM N°27) 09.07.86 Goods Not notified 
CHINESE TAIPEI  
Nicaragua 01.01.08 Goods & Services 2009 GATT Art. XXIV & GATS Art. V 
Guatemala 01.07.06 Goods & Services 2011 GATT Art. XXIV & GATS Art. V 
Panama 01.01.04 Goods & Services 2009 GATT Art. XXIV & GATS Art. V 
The Cross-Straits ECFA 12.09.10 Goods & Services Not notified 
 
Source: WTO Secretariat.  a According to Honduras and El Salvador, this Agreem ent has been replaced by the Free Trade Agreement 
between Mexico and Central America, signed on 22 November 2010. 
 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. 
 
5.8  Government procurement 
5.30.  There are no provisions on government procurement in the Agreement. 
5.9  Intellectual property rights 
5.31.  There are no provisions on intellectual property rights in the Agreement. 5.10  Cooperation 
5.32.  Chapter 17 sets out provisions to strengthen cooperation relations between the Parties 
including in: i) commercial and industrial activities; ii) micro, small and medium enterprise sector; iii) export potential; iv) tourism; v) energy; vi) transportation, logistics and distribution; vii) agriculture, forestry, aquaculture and fishing;  and viii) quality, prod uctivity, innovation and 
technological development. 
5.33.  The Parties also establish a Committee, which is responsible for promoting and following up 
on cooperation activities. The Parties shall also designate contact points, which are responsible for 
implementing the decisions adopted by the Committee and following up on the cooperation 
programmes. According to the Parties as at 8 February 2013 the Committee had not met. Finally, the Parties shall develop a work plan that reflects their priorities regarding cooperation activities 
and include short, medium and long-term activities. WT/REG283/1/Rev.1 
 
- 49 - 
 
  ANNEX 1 
MARKET ACCESS INDICATORS 
1. Table A1.1, A1.2 and A1.3 show the Parties' tariff elimination schedule by agricultural, 
non-agricultural and total products. In the case of El Salvador, the share of duty-free tariff lines went from 47.1% to 57.5% in 2008, with duty free lines for agricultural products increasing from 
24.9% and 42.7% and marginally from 50.9% to 60% for non-agricultural products when the 
Agreement entered into force. In the same year, th e average applied tariff for agricultural imports 
from Chinese Taipei was 10.8% instead of 12.9%, 4.1% instead of 5.2% for non-agricultural 
imports, giving exporters from Chinese Taipei an average margin of preference of 16.3% and 
21.2% respectively. Following ten years of implem entation in 2017 El Salvador's overall share of 
duty free lines for imports from Chinese Taipei will be 66.2%, of which 57% for agricultural products and 67.7% for non-agricultural products. By the end of implementation in 2027 73.1% of 
its tariff will be duty free for imports from Chines e Taipei, of which 75.9% for agricultural products 
and 72.7% for non-agricultural products. 
Table A1.1 El Salvador: Indicators of MFN ta riff 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 2008 6.3 11.9 47.1 12.9 17.2 24.9 5.2 10.6 50.9 
Chinese 
Taipei 2008 5.0 11.9 57.5 10.8 18.9 42.7 4.1 10.2 60.0 
 2009 4.9 11.5 57.5 10.6 18.5 42.7 3.9 9.8 60.0 
 2010 4.7 11.1 57.5 10.4 18.2 42.7 3.8 9.4 60.0 
 2011 4.6 10.8 57.5 10.2 17.8 42.7 3.6 9.1 60.0 
 2012 4.4 11.3 60.8 10.0 18.0 44.6 3.5 9.5 63.5 
 2013 4.3 10.9 60.8 9.6 17.4 44.6 3.4 9.3 63.5 
 2014 4.2 10.6 60.8 9.3 16.8 44.6 3.3 9.1 63.5 
 2015 4.0 10.3 60.8 9.0 16.2 44.6 3.2 8.8 63.5 
 2016 3.9 10.0 60.8 8.6 15.6 44.6 3.1 8.6 63.5 
 2017 3.8 11.2 66.2 8.2 19.2 57.0 3.0 9.4 67.7 
 2018 3.7 10.9 66.2 7.9 18.3 57.0 3.0 9.3 67.7 
 2019 3.6 10.6 66.2 7.5 17.4 57.0 2.9 9.1 67.7 
 2020 3.5 10.4 66.2 7.1 16.5 57.0 2.9 9.0 67.7 
 2021 3.4 10.1 66.2 6.7 15.6 57.0 2.9 8.8 67.7 
 2022 3.3 12.2 72.9 6.3 24.6 74.2 2.8 10.3 72.7 
 2023 3.3 12.2 72.9 6.3 24.5 74.2 2.8 10.3 72.7 
 2024 3.3 12.2 72.9 6.3 24.4 74.2 2.8 10.3 72.7 
 2025 3.3 12.2 72.9 6.3 24.3 74.2 2.8 10.3 72.7 
 2026 3.3 12.2 72.9 6.2 24.2 74.2 2.8 10.3 72.7 
 2027 3.3 12.3 73.1 6.2 25.8 75.9 2.8 10.3 72.7 
 
a WTO Definition.  Based on the HS 2007 nomenclature.  Source:  WTO estimates based on data pr ovided by El Salvador and WTO-IDB. 
 
2. In 2008, 47.1% of Honduras' MFN tariff lines were  duty free, of which 23.9% of agricultural 
and 51% of non-agricultural tariff lines. In the sa me year, when the Agreement entered into force, 
Honduras liberalized 62% of its overall lines for imports from Chinese Taipei, of which 41.9% for agricultural products and 65.4% for non-agricultural products. As a result, Chinese Taipei exporters enjoyed a relative margin of preference of 31.7% vis-a-vis  the prevailing MFN tariff of 
which 18.9% for agricultural goods and 37.3% for non-agricultural goods. Following ten years of 
implementation, by 2017 Honduras would have liberalized 70.8% of its tariff for imports from Chinese Taipei, of which 57.1% for agricultural products and 73.1% for non-agriculture. By the WT/REG283/1/Rev.1 
 
- 50 - 
 
  end of implementation, 77.8% of Honduras' tariff li nes will be duty free for imports from Chinese 
Taipei, of which 76.1% for agricultural produc ts and 78.1% for non-agricultural products. 
Table A1.2 Honduras: 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 2008 6.0 11.3 47.1 11.1 14.5 23.9 5.1 10.5 51.0 
Chinese 
Taipei 2008 4.1 10.7 62.0 9.0 15.6 41.9 3.2 9.3 65.4 
 2009 3.9 10.3 62.0 8.9 15.2 41.9 3.1 8.9 65.4 
 2010 3.8 9.9 62.0 8.7 14.9 41.9 3.0 8.5 65.4 
 2011 3.6 9.5 62.0 8.5 14.6 41.9 2.8 8.1 65.4 
 2012 3.5 10.1 65.4 8.3 15.0 44.7 2.7 8.6 68.9 
 2013 3.4 9.7 65.4 8.0 14.4 44.7 2.6 8.3 68.9 
 2014 3.2 9.4 65.4 7.7 13.9 44.7 2.5 8.0 68.9 
 2015 3.1 9.0 65.4 7.3 13.3 44.7 2.4 7.7 68.9 
 2016 3.0 8.6 65.4 7.0 12.7 44.7 2.3 7.4 68.9 
 2017 2.9 9.8 70.8 6.7 15.6 57.1 2.2 8.3 73.1 
 2018 2.8 9.5 70.8 6.3 14.8 57.1 2.2 8.1 73.1 
 2019 2.7 9.2 70.8 6.0 13.9 57.1 2.1 7.9 73.1 
 2020 2.6 8.9 70.8 5.6 13.1 57.1 2.1 7.8 73.1 
 2021 2.5 8.6 70.8 5.3 12.2 57.1 2.0 7.6 73.1 
 2022 2.4 10.8 77.6 4.9 19.2 74.4 2.0 9.1 78.1 
 2023 2.4 10.7 77.6 4.9 19.1 74.4 2.0 9.1 78.1 
 2024 2.4 10.7 77.6 4.8 19.0 74.4 2.0 9.1 78.1 
 2025 2.4 10.7 77.6 4.8 18.9 74.4 2.0 9.1 78.1 
 2026 2.4 10.7 77.6 4.8 18.8 74.4 2.0 9.1 78.1 
 2027 2.4 10.8 77.8 4.8 20.0 76.1 2.0 9.1 78.1 
 
a WTO Definition. Note: For the calculation of averages, specific duties are excluded and the ad valorem  parts of alternate 
rates are included. 
 Based on the HS 2007 nomenclature.  Source:  WTO estimates based on Honduras' categories in the Agreement and WTO-IDB.  
3. In 2008, Chinese Taipei's average applied MFN rate was 7.6% for imports from El Salvador 
and Honduras respectively. The average applied MFN tariff for agricultural products (21.9%) was 
four times higher than the tariff applied to non-agricultural products (4.9%). As a result of the 
Agreement, Honduran and El Salvadoran exporter s enjoyed a relative margin of preference of 
34.2% vis-à-vis  the prevailing average MFN tariff; 10.1% for agricultural goods and 55.1% for 
non-agricultural products. Upon the entry into forc e of the Agreement, the share of duty-free lines 
applicable to imports from El Salvador and Honduras rose from 31.7% on an MFN basis to 69.5% (45.3% compared to 24.5% for agriculture and 74.1% compared to 33% for non-agriculture). Following ten years of implementation in 2017 the sh are of duty free lines is expected to increase 
to 93.1% overall, 98.6% for non-agriculture and 63.9% for agriculture. By 2022, the shares of 
duty-free lines for imports from El Salvador and Ho nduras are expected to rise to 97.4% overall, 
with 87.8% lines for agricultural products an d 99.3% lines for non-agricultural products. WT/REG283/1/Rev.1 
 
- 51 - 
 
  Table A1.3 Chinese Taipei: Indicators of MFN tariff rates and preferential rates for 
imports from El Salvador and Honduras  
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 2008 7.6 11.2 31.7 21.9 28.9 24.5 4.9 7.3 33.0 
El Salvador/ 
Honduras 2008 5.0 16.4 69.5 19.7 36.3 45.3 2.2 8.4 74.1 
 2009 4.6 15.0 69.5 19.0 35.0 45.3 1.8 7.1 74.1 
 2010 4.2 13.7 69.5 18.3 33.7 45.3 1.5 5.8 74.1 
 2011 3.7 12.3 69.5 17.6 32.4 45.3 1.1 4.3 74.1 
 2012 3.3 21.3 84.3 16.9 34.0 49.9 0.8 8.3 90.8 
 2013 3.1 20.2 84.3 16.3 32.8 49.9 0.7 7.1 90.8 
 2014 3.0 19.0 84.3 15.7 31.6 49.9 0.5 6.0 90.8 
 2015 2.8 17.8 84.3 15.1 30.5 49.9 0.4 4.9 90.8 
 2016 2.6 16.7 84.3 14.6 29.3 49.9 0.3 3.7 90.8 
 2017 2.4 34.8 93.1 13.8 38.3 63.9 0.2 17.3 98.6 
 2018 2.3 33.9 93.1 13.5 37.3 63.9 0.2 16.5 98.6 
 2019 2.3 32.9 93.1 13.1 36.3 63.9 0.2 15.7 98.6 
 2020 2.2 31.9 93.1 12.7 35.3 63.9 0.2 14.9 98.6 
 2021 2.1 30.9 93.1 12.4 34.2 63.9 0.2 14.1 98.6 
 2022 2.1 81.3 97.4 12.0 98.3 87.8 0.2 25.6 99.3 
 
a WTO Definition. 
 
Note: For tariff lines subject to TRQs, only the out-of-quota duty is included in the tariff-related 
calculations; for the calculation of averag es, specific rates are excluded and the ad valorem  parts of 
alternate rates are included. 
 Based on the HS 2002 nomenclature.  Source:  WTO estimates based on da ta provided by Chinese Taipei. 
 
4. Table A1.4 shows market access opportunities for Chinese Taipei's top 25 exports to 
El Salvador. These exports accounted for 43.8%  of its global exports during 2005-2007 and 
covered 73 tariff lines. Of these 60 were already du ty free on an MFN basis. El Salvador liberalized 
12 lines upon entry into force of the Agreemen t in 2008 and the remaining line in 2022. As a 
result, all top 25 Chinese Taipei's exports will have duty free access to El Salvador by 2022.  
Table A1.4 El Salvador: Market access oppo rtunities under the agreement for Chinese 
Taipei's top 25 exports  
Chinese Taipei's top export products in 2005-2007 Access Conditions to El Salvador's import 
markets 
MFN (2008) Duty-free 
MFN 
average 
(%) No. of tariff lines 
HS number and description of the 
product Share in 
global 
exports (%)  Duty-
free Dutiable  2008  2022 
854231 -- processors and controllers, 
whether or not combined with memories, converters, logic circuits, amplifiers, clock an d timing circuits, 
or other circuits 3.9 0.0 6    
854232 -- memories 3.9 0.0 6    
854233 -- amplifiers 3.9 0.0 6    
854239 Other electronic integrated circuits, 
other than 
amplifiers/memorie s/processors and 
controllers 3.9 0.0 6    WT/REG283/1/Rev.1 
 
- 52 - 
 
  Chinese Taipei's top export products in 2005-2007 Access Conditions to El Salvador's import 
markets 
MFN (2008) Duty-free 
MFN 
average 
(%) No. of tariff lines 
HS number and description of the 
product Share in 
global 
exports (%)  Duty-
free Dutiable  2008  2022 
271019 Petroleum oils & oils obtained from 
bituminous minerals (other than crude) and preparations not elsewhere specified/included, containing by weight 70 %/more of petroleum oils/of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, other than waste oils and light oils and preparations 3.8 2.8 7 6 6  
901380 - other devices, appliances and 
instruments 3.6 0.0 1    
853120 - indicator panels incorporating 
liquid crystal devices (lcd) or light emitting diodes (led) 2.7 0.0 1    
901390 - parts and accessories 2.7 0.0 1    
853400 Printed circuits. 2.3 0.0 1    
851770 - parts 1.4 0.0 1    
844399 Other parts and accessories for 
printing machinery excluding 8443.91 1.4 0.0 1    
852990 Other parts suitable for use 
solely/principally with the apparatus 
of headings 85.25 to 85.28., other 
than aerials and aerial reflectors of 
all kinds 1.3 7.5 1 1  1 
271011 -- light oils and preparations 1.0 5.0 3 4 4  
847330 - parts and accessories of the 
machines of heading 84.71 1.0 0.0 1    
854140 - photosensitive semiconductor 
devices, including photovoltaic cells whether or not assembled in modules or made up into panels; light emitting diodes 0.9 0.0 1    
390330 - acrylonitrile-butadiene-styrene 
(abs) copolymers 0.9 0.0 1    
291736 -- terephthalic acid and its salts 0.8 0.0 1    
851762 -- machines for the reception, 
conversion and transmission or 
regeneration of vo ice, images or 
other data, including switching and 
routing apparatus 0.7 0.0 1    
851761 -- base stations 0.7 0.0 4    
731815 -- other screws and bolts, whether 
or not with their nuts or washers 0.6 5.0  1 1  
854890 Other electrical parts of 
machinery/apparatus, not specified/included elsewhere in HS chapter 85 other than waste and scrap of primary cells/primary batteries and electric accumulators/ spent primary cells/ spent primary batteries and spent electric accumulators 0.6 0.0 1    
854390 - parts 0.6 0.0 2    
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 0.6 0.0 1    WT/REG283/1/Rev.1 
 
- 53 - 
 
  Chinese Taipei's top export products in 2005-2007 Access Conditions to El Salvador's import 
markets 
MFN (2008) Duty-free 
MFN 
average 
(%) No. of tariff lines 
HS number and description of the 
product Share in 
global 
exports (%)  Duty-
free Dutiable  2008  2022 
852691 -- radio navigational aid apparatus 0.6 0.0 1    
852340 - optical media 0.5 1.7 5 1 1  
Total of above  43.8  60 13 12 1 
 
Note: Based on HS 2007 nomenclature. 
 
Source: WTO estimates based on data provided by El Salvador and UNSD, Comtrade database. 
 
5. Table A1.5 shows market access opportunities for Chinese Taipei's top 25 exports in 
Honduras, which in 2005-2007 accounted for 43.8% of its global exports. 58 tariff lines were 
already duty-free on an MFN basis, while 15 tariff lines were dutiable. 14 out of these lines became duty-free upon the entry into force of the Agreem ent; the remaining one will become duty-free in 
2022. As a result, all top 25 Chinese Taipei's exports will have duty free access to Honduras in 
2022. 
Table A1.5 Honduras: Market access opportunities under the Agreement for 
Chinese Taipei's top 25 exports
 
Chinese Taipei's top export products in 2005-2007 Access Conditions to Honduras' import 
markets  
MFN (2008) Duty-free in 
MFN 
average 
(%) No. of tariff 
lines 
HS number and description of the product Share 
in 
global 
exports  Duty-
free Dutiable 2008 2022 
854231 -- processors and controllers, whether or 
not combined with memories, converters, logic circuits, amplifie rs, clock and timing 
circuits, or other circuits 3.9 0.0 6    
854232 -- memories 3.9 0.0 6    
854233 -- amplifiers 3.9 0.0 6    
854239 other electronic integrated circuits, other 
than amplifiers/memories/processors and 
controllers 3.9 0.0 6    
271019 Petroleum oils & oils obtained from 
bituminous minerals (other than crude) and preparations not elsewhere specified/included, containing by weight 70 %/more of petroleum oils/of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, other than waste oils and light oils and preparations 3.8 4.6 8 5 5  
901380 - other devices, applia nces and instruments 3.6 0.0 1    
853120 - indicator panels incorporating liquid 
crystal devices (lcd) or light emitting diodes (led) 2.7 0.0 1    
901390 - parts and accessories 2.7 0.0 1    
853400 Printed circuits. 2.3 0.0 1    
851770 - parts 1.4 0.0 1    
844399 Other parts and accessories for printing 
machinery excluding 8443.91 1.4 0.0 1    
852990 Other parts suitable for use 
solely/principally with the apparatus of 
headings 85.25 to 85.28., other than aerials 
and aerial reflectors of all kinds 1.3 7.5 1 1  1 
271011 -- light oils and preparations 1.0 7.1 3 4 4  WT/REG283/1/Rev.1 
 
- 54 - 
 
  Chinese Taipei's top export products in 2005-2007 Access Conditions to Honduras' import 
markets  
MFN (2008) Duty-free in 
MFN 
average 
(%) No. of tariff 
lines 
HS number and description of the product Share 
in 
global 
exports  Duty-
free Dutiable 2008 2022 
847330 - parts and accessories of the machines of 
heading 84.71 1.0 0.0 1    
854140 - photosensitive semiconductor devices, 
including photovoltaic cells whether or not assembled in modules or made up into panels; light emitting diodes 0.9 0.0 1    
390330 - acrylonitrile-butadiene-styrene (abs) 
copolymers 0.9 0.0 1    
291736 -- terephthalic acid and its salts 0.8 0.0 1    
851762 -- machines for the reception, conversion 
and transmission or re generation of voice, 
images or other data, including switching 
and routing apparatus 0.7 0.0 1    
851761 -- base stations 0.7 0.0 4    
731815 -- other screws and bolts, whether or not 
with their nuts or washers 0.6 5.0  1 1  
854890 Other electrical parts of 
machinery/apparatus, not specified/included elsewhere in HS chapter 85 other than waste and scrap of primary cells/primary batteries and electric accumulators/ spent 
primary cells/ spent primary batteries and 
spent electric accumulators 0.6 0.0 1    
854390 - parts 0.6 0.0 2    
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 0.6 0.0 1    
852691 -- radio navigational aid apparatus 0.6 0.0 1    
852340 - optical media 0.5 6.7 2 4 4  
 Total of above  43.8  58 15 14 1 
 
Note: Based on HS 2007 nomenclature. 
 
Source:  WTO estimates based on Honduras' categories  in the Agreement and WTO-IDB and UNSD, Comtrade 
database. 
 
6. Table A1.6 and A1.7 shows the market access co nditions in Chinese Taipei for El Salvador's 
and Honduras' top 25 exports respectively. El Salvador's top 25 exports accounted for 57.9% of its 
global exports in 2005-2007 and covered 84 lines of  which 20 lines were already duty-free on an 
MFN basis. 17 out of the 64 dutiable lines beca me duty-free upon the entry into force of the 
Agreement in 2008 while a further four lines became  duty-free in 2012. Of the remaining dutiable 
lines, 19 and 16 are to become duty-free in 2017 and 2022 respectively. Eight tariff lines (cane 
sugar, cereals, and pastries whether or not cont aining cocoa) will remain dutiable among El 
Salvador's top 25 exports after the Agreement is implemented. 
7. Honduras' top 25 exports accounted for 70.8% in 2005-2007, covering 47 tariff lines. Of 
these 17 were already duty free on an MFN basis. Chinese Taipei liberalized 17 lines upon entry 
into force of the Agreement in 2008; whereas four lines are to become duty-free in 2017. 15 tariff 
lines which are to remain dutiable among Honduras's top 25 exports are related to bananas, 
cigars, cane sugar, pineapple, frozen fillets, ci garettes, and pastries whether or not containing 
cocoa. WT/REG283/1/Rev.1 
 
- 55 - 
 
  Table A1.6 Chinese Taipei: Market acce ss opportunities under the agreement for 
El Salvador's top 25 exports 
El Salvador's top export products in 2005-2007  Access Conditions to Chinese Taipei's 
import markets  
MFN (2008)
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 
2008 
2012 
2017 
2022 
610910 T-shirts, singlets and other vests, 
knitted/crocheted, of cotton 16.9 10.5  1   1   
611020 Jerseys, pullovers, cardigans, waist-
coats and similar articles, 
knitted/crocheted, of cotton 4.8 10.5  1   1   
090111 Not decaffeinated 4.8 0.0 1       
220710 Undenatured ethyl alcohol of an alcoholic 
strength by volume of 80% vol or higher  3.2 11.5  2 1  1   
611511 Of synthetic fibres, measuring per single 
yarn less than 67 decitex 2.5 12.0  1   1   
853221 Tantalum 2.0 0.0 1       
271019 Petroleum oils and oils obtained from 
bituminous minerals (other than crude) and preparations not elsewhere specified/included, containing by weight 70 %/more of petroleum oils/of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, othe r than waste oils 
and light oils and preparations 1.9 4.4 3 15 11 4    
170111 Cane sugar 1.9 6.3  1     1 
160414 Tunas, skipjack and bonito (sarda spp.) 1.7 14.5  2 2     
481810 Toilet paper 1.7 0.0 1       
610711 Men's/boys' underpants and briefs, 
knitted/crocheted, of cotton 1.6 10.5  1   1   
300490 Medicaments (excluding goods of 
heading 30.02/30.05/30.06/3004.10-
3004.50) consisting of mixed/unmixed 
products for therapeutic/prophylactic 
uses, put up in measured doses 
(including those in the form of 
transdermal administration systems)/in 
forms/packings for retail sale 1.5 1.5 12 1    1  
610821 Women's/girls' briefs and panties, 
knitted/crocheted, of cotton 1.4 12.0  1   1   
853229 Fixed electrical capacitors, n.e.s. in 
85.32 1.2 0.0 1       
610462 Women's/girls' trousers, bib and brace 
overalls, breeches and shorts (excl. swimwear), knitted/crocheted, of cotton 1.1 11.3  2   2   
610610 Women's/girls' blouses, shirts and shirt-
blouses, knitted/crocheted, of cotton 1.1 10.5  1   1   
610990 Of other textile materials 1.0 12.0  4   4   WT/REG283/1/Rev.1 
 
- 56 - 
 
  El Salvador's top export products in 2005-2007  Access Conditions to Chinese Taipei's 
import markets  
MFN (2008)
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 
2008 
2012 
2017 
2022 
392330 Carboys, bottles, flasks and similar 
articles 1.0 5.0  1 1     
190490 Cereals other than maize (corn) in grain 
form/in the form of flakes/other worked grains (excl. flou r/groats/meal), pre-
cooked/otherwise prepared, n.e.s. 1.0 66.8  2   1  1 
340220 Preparations put up for retail sale 0.9 4.0  1 1     
190590 Bread, pastry, cakes, biscuits & other 
bakers' wares, whether/not containing cocoa; communion wafers, empty cachets of a kind suitable for pharmaceutical use, sealing wafers, rice paper & similar produc ts (excluding of 
1905.10 - 1905.40) 0.9 12.1  8 1  1  6 
220290 Non-alcoholic beverages other than 
waters of 2202.10 (not incl. 
fruit/vegetable juices of 20.09) 0.9 19.4  16   1 15  
721420 Containing indentations, ribs, grooves or 
other deformations pr oduced during the 
rolling process or twisted after rolling 0.9 0.0 1       
621210 Brassières 0.9 12.0  2   2   
610510 Men's/boys' shirts, knitted/crocheted, of 
cotton 0.8 10.5  1   1   
Total of above 57.9  20 64 17 4 19 16 8 
 
Note: Based on HS 2002 nomenclature. 
 Source: WTO estimates based on data provided by  Chinese Taipei and UNSD, Comtrade database. 
 
Table A1.7 Chinese Taipei: Market acce ss opportunities under the agreement for 
Honduras' top 25 exports  
Honduras' top export products in 2005-2007  Access Conditions to Chinese Taipei's import 
markets  
MFN (2008) 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 2008 2017 
090111 Not decaffeinated 21.9 0.0 1     
854430 Ignition wiring sets and other wiring 
sets of a kind used in vehicles, 
aircraft or ships 8.1 3.5  1 1   
080300 Bananas, including plantains, fresh 
or dried. 7.6 100.0  1   1 
030613 Shrimps and prawns 4.0 20.0  1 1   
151110 Crude oil 3.0 0.0 1     
260800 Zinc ores and concentrates. 2.4 0.0 1     
240210 Cigars, cheroots and cigarillos, 
containing tobacco 2.3 20.0  1   1 
710812 Other unwrought forms 2.1 0.0 2     
271112 Propane 2.0 0.0 1     WT/REG283/1/Rev.1 
 
- 57 - 
 
  Honduras' top export products in 2005-2007  Access Conditions to Chinese Taipei's import 
markets  
MFN (2008) 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 2008 2017 
261690 Precious metal ores and concentrates 
(excluding silver ores and 
concentrates)) 2.0 0.0 3     
030611 Rock lobster and other sea crawfish 
(palinurus spp., panulirus spp., jasus  
spp.) 1.9 17.5  2  2  
080719 Melons (excl. watermelons), fresh 1.7 25.0  2 1 1  
340119 Soap and organic surface-active 
products & preparations, in the form of bars, cakes, moulded 
pieces/shapes, and paper, wadding, 
felt and nonwovens, impregnated, coated/covered with soap/detergent(excl. of 3401.11) 1.5 0.0 1     
440710 Coniferous 1.4 0.0 2     
170111 Cane sugar 1.2 6.3  1   1 
080430 Pineapples 1.1 173.0  1   1 
030420 Frozen fillets 0.9 25.0  10 6  4 
151190 Palm oil, other than crude, and 
fractions thereof , whether/not 
refined but not chemically modified 0.9 0.0 1     
240220 Cigarettes containing tobacco 0.8 27.0  1   1 
190590 Bread, pastry, cakes, biscuits & other 
bakers' wares, whether/not 
containing cocoa; communion 
wafers, empty cachets of a kind 
suitable for pharmaceutical use, 
sealing wafers, rice paper & similar 
products (excl. of 1905.10 -  
1905.40) 0.8 12.1  8 1 1 6 
760200 Aluminium waste and scrap. 0.8 0.0 1     
260700 Lead ores and concentrates. 0.7 0.0 1     
261610 Silver ores and concentrates 0.6 0.0 1     
392330 Carboys, bottles, flasks and similar 
articles 0.6 5.0  1 1   
620630 Of cotton 0.6 10.5  1 1   
Total of above 70.8  16 31 12 4 15 
 
Note: Based on HS 2007 nomenclature.  Source: WTO estimates based on data provided by  Chinese Taipei and UNSD, Comtrade database. WT/REG283/1/Rev.1 
 
- 58 - 
 
  ANNEX 2 
TARIFF-RATE QUOTAS UNDER THE AGREEMENT 
Table A1.8 Tariff rate quotas maintained  by Chinese Taipei under the Agreement  
HS Code Product Year Annual quota volume  In quota tariff 
rate (%) Out of quota 
tariff rate (%) 
1701.11.00 
1701.91.10 Raw Sugar 1 35,000 0% 6.25% 
2 50,000 
3 and onwards 60,000 
1701.91.20 Refined 
sugar Annual Up to 5,000 0% 17.50% 
1701.99.10 
1701.99.20 
1701.99.90 
 
Source: Annex 3.04 of the Agreement.  
 WT/REG283/1/Rev.1 
 
- 59 - 
 
 
  ANNEX 3 
ANNUAL MOVEMENTS OF BUSINESS PERSONS UNDER THE FTA 
（El Salvador ：2008.3.1-2012.9.30 ） 
（Honduras ：2008.7.15-2012.9.30 ） 
Table A1.9 Data on the movement of  business persons under the Agreement 
 
 
Source: Chinese Taipei. 
__________  Issue 
 date 
Country 2008  2009  2010  2011 2012.1.1-  
2012.9.30 
Visitor 
visa Resident 
visa Visitor 
visa Resident 
visa Visitor 
visa Resident 
visa Visitor 
visa Resident 
visa Visitor 
visa Resident 
visa 
El Salvador 166 29 151 34  165 38 177 34 124  37 
Honduras 66 7 197 41 196 44 177 52 187 55