WT/REG279/1  
13 April 2015  
(15-1983)  Page: 1/34  
Committee on Regional Trade Agreements   
 
 FACTUAL PRESENTATION 
FRAMEWORK AGREEMENT ON COMPREHE NSIVE ECONOMIC CO-OPERATION  
BETWEEN THE ASSOCIATION OF SOUTHEAST  ASIAN NATIONS (ASEAN) AND CHINA 
(SERVICES) 
Report by the Secretariat 
This report, prepared for the consideration of the Framework Agreement on 
Comprehensive Economic Co-operation between China and the Association of 
Southeast Asian Nations (ASEAN), 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 and does not imply offi cial endorsement or acceptance by the 
Secretariat of such terminology. 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) and thus does not imply any value judgement 
by the Secretariat regarding the contents of the Agreement. 
Any technical questions arising from this re port may be addressed to Rohini Acharya 
and Mr. Martin Roy (tel: +41 22 739 5874). Any statistical questions arising from this 
report may be addressed to Ms Rowena Cabos (tel: +41 22 739 5185). 
 
 WT/REG279/1 
 
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 TABLE OF CONTENTS 
Page 
1   TRADE ENVIRONMENT ................................................................................................. 4  
2   CHARACTERISTIC ELEMEN TS OF THE AG REEMENT .................................................... 10  
2.1   Background  Information ............................................................................................ 10 
3   PROVISIONS ON TRADE IN SERVICES ....................................................................... 10  
3.1   Scope and Definitions ................................................................................................ 10 
3.2   Denial of Benefits ..................................................................................................... 11 
3.3   General Provisions on Trade in Services ....................................................................... 11 
3.3.1   Mark et acce ss ....................................................................................................... 11 
3.3.2   National treatment and MFN .................................................................................... 11 
3.3.3   Commercial presence ............................................................................................. 11 
3.3.4   Movement of  natural persons .................................................................................. 11 
3.4   Liberalizat ion Commitments ....................................................................................... 11 
3.4.1   China ................................................................................................................. .. 12 
3.4.1.1   Horizont al commit ments ...................................................................................... 12 
3.4.1.2   Sector-spe cific commitments ................................................................................ 12 
3.4.2   ASEAN member states ............................................................................................ 14 
3.4.2.1   Brun ei Darussalam .............................................................................................. 14 
3.4.2.2   Cambodia .......................................................................................................... 15 
3.4.2.3   Indonesia........................................................................................................... 16 
3.4.2.4   Lao PDR ............................................................................................................ 18 
3.4.2.5   Sector-spe cific commitments ................................................................................ 18 
3.4.2.6   Malaysia ............................................................................................................  18 
3.4.2.7   Myanma r ........................................................................................................... 20 
3.4.2.8   the Philippines .................................................................................................... 22 
3.4.2.9   Singapore .......................................................................................................... 24 
3.4.2.10   Thailand ........................................................................................................... 26 
3.4.2.11   Viet Nam .......................................................................................................... 27 
3.5   Regulatory Provisions ................................................................................................ 29 
3.5.1   Domestic regulation ............................................................................................... 29 
3.5.2   Recognition ........................................................................................................... 29 
3.5.3   Subsidies .............................................................................................................. 29 
3.5.4   Safeguards ........................................................................................................... 29 
3.5.5   Monopolies and excl usive service suppliers ................................................................ 30 
3.6   Sector-Speci fic Provisions .......................................................................................... 30 
4   GENERAL PROVISIONS  OF THE AGREEMENT ............................................................. 30  
4.1.1   Tran sparen cy ........................................................................................................ 30 
4.1.2   Ex ceptions ............................................................................................................  30 
4.1.3   Accession and termin ation....................................................................................... 30 WT/REG279/1 
 
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 4.1.4   Institut ional framework .......................................................................................... 30 
4.1.5   Dispute settlement ................................................................................................. 31 
4.1.6   Relationship with other ag reements concluded by the Parties ....................................... 33 
4.1.7   C ooperat ion .......................................................................................................... 34 
 
 WT/REG279/1 
 
- 4 - 
 
 
  
Key Facts 
 
Parties to the Agreement : ASEAN member States and China 
 
Date of Signature :  14 January 2007 
 
Date of Entry into Force : 1 July 2007 
 
Date of Notification :   26 June 2008 
 
Full implementation :  1 July 2007 
 
 
1  TRADE ENVIRONMENT 
1.1.  The Agreement on Trade in Services of the Framework Agreement on Comprehensive 
Economic Cooperation between China and the Association of Southeast Asian Nations (ASEAN) 
(hereafter "the Agreement") is between Chin a and the 10 Member States of the ASEAN: 
Brunei Darussalam, Cambodia, Indonesia, Lao People's Democratic Republic (hereafter "Lao PDR"), Malaysia, Myanmar, the Philippines, Singapore, Thailand and Viet Nam. This is ASEAN's first regional trade agreement. 
1.2.  In commercial services, China ranked third in terms of both global exports and imports, 
amounting to US$204.7 billion an d US$329.4 billion, respectively. This represents 4.41% and 
7.52% of world exports and imports, respectively. 
1.3.  Among the ASEAN members, Singapore accounts for the largest share of world trade followed 
by Thailand and Malaysia (Table 1.1). Among the newer ASEAN members (Cambodia, Lao PDR, Myanmar and Viet Nam) Viet Nam has the largest share of exports and imports of commercial 
services, while Lao PDR has the smallest share. 
Table 1.1 Commercial services trade by ASEAN member states and China
 
 Exports Imports 
Value 
(US$ 
million) Share in 
World 
Total (%) Rank 
(2013) Value  
(US$ 
million) Share in 
World 
Total (%) Rank 
(2008) 
ASEAN       
Brunei Darussalam 1,209 0.03 94 1,546 0.04 93 
Cambodia 2,700 0.06 66 1,743 0.04 88 
Indonesia 21,733 0.47 22 34,266 0.78 20 
Lao PDR 553 0.01 113 335 0.01 138 
Malaysia 39,834 0.86 18 45,045 1.03 18 
Myanmar 580 0.01 110 1,067 0.03 103 
Philippines 21,671 0.47 23 14,389 0.33 36 
Singapore 122,137 2.63 7 128,430 2.93 5 
Thailand 58,584 1.26 12 55,005 1.26 14 
Viet Nam 10,380 0.22 35 13,015 0.30 37 
China 204,718 4.41 3 329,424 7.52 3 
Note: Rank excludes intra-EU trade. 
 Source: WTO Statistics Database, Trade Profiles (September 2014).  
1.4.  Chart 1.1 shows the breakdown of commercia l services trade for China in 2000-2008. During 
this period, China has run a constant trade deficit in these services. The top three categories for 
both exports and imports were: transportation and travel services, and other business services. In 
its commercial services trade with ASEAN as well, China recorded a constant deficit during the 
period 2007-2009 (Chart 1.2). 
 WT/REG279/1 
 
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 Chart 1.1 China, total commercial services trade, 2001-2013 
050100150200250300350
2001 2003 2005 2007 2009 2011 2013China imports from world
2001-2013
(US$ Billion)China exports to world
2001-2013
(US$ Billion)
050100150200250300350
2001 2003 2005 2007 2009 2011 2013
 
Source: WTO Statistics Database. 
 
Chart 1.2 China's commercial services trade with ASEAN member states, 2007-2009 (US$ billion) 
 
02468101214161820
2007 2008 2009China's commercial services trade with ASEAN  
2007-2009
(US$ billion) 
Import
Export
 
Source: Chinese authorities. 
 
1.5.  Charts 1.3 and 1.4 show the breakdown of commercial services trade for the ASEAN member states during 2001-2013. The top three traders (both for exports and imports) were Singapore, Thailand, and Malaysia. Most ASEAN economies, with some exceptions (Cambodia, Lao PDR and 
the Philippines) have maintained deficits in their balance of trade in services for much of the period 
covered. WT/REG279/1 
 
- 6 - 
 
 
 Chart 1.3 ASEAN member states' total trad e in commercial services with world, 
2001-2013 (Brunei Darussalam, Cambodi a, Indonesia, Lao PDR and Malaysia) 
0.00.51.01.52.0
2001 2003 2005 2007 2009 2011 2013Exports ImportsUS$ billion
0.00.51.01.52.0
2001 2003 2005 2007 2009 2011 2013Brunei Darussalam
0.00.51.01.52.02.53.0
2001 2003 2005 2007 2009 2011 2013Cambodia
0.00.51.01.52.02.53.0
2001 2003 2005 2007 2009 2011 2013US$ billion US$ billion
US$ billion
010203040
2001 2003 2005 2007 2009 2011 2013Indonesia
US$ billion
010203040
2001 2003 2005 2007 2009 2011 2013US$ billion
0100200300400500600
2001 2003 2005 2007 2009 2011 2013Lao PDR
0100200300400500600
2001 2003 2005 2007 2009 2011 2013
01020304050
2001 2003 2005 2007 2009 2011 2013Malaysia
US$ million
US$ millionUS$ billion
01020304050
2001 2003 2005 2007 2009 2011 2013US$ billion
 
Note: No trade data available for Brunei Darussalam (2010-2013) and Lao PDR (2013). Starting from 
2009, data converted from BPM6 to BPM5 methodology for Malaysia. 
Source: WTO Statistics Database. WT/REG279/1 
 
- 7 - 
 
 
 Chart 1.4 ASEAN member states' total trad e in commercial services with world, 
2001-2013 (Myanmar, Philippines, Singap ore, Thailand and Viet Nam) 
0.00.51.01.5
2001 2003 2005 2007 2009 2011 2013Exports ImportsUS$ billion
0.00.51.01.5
2001 2003 2005 2007 2009 2011 2013Myanmar
0510152025
2001 2003 2005 2007 2009 2011 2013Philippines
0510152025
2001 2003 2005 2007 2009 2011 2013US$ billion US$ billion
US$ billion
050100150
2001 2003 2005 2007 2009 2011 2013Singapore
US$ billion
050100150
2001 2003 2005 2007 2009 2011 2013US$ billion
020406080
2001 2003 2005 2007 2009 2011 2013Thailand
020406080
2001 2003 2005 2007 2009 2011 2013
051015
2001 2003 2005 2007 2009 2011 2013Viet Nam
US$ billion
US$ billionUS$ billion
051015
2001 2003 2005 2007 2009 2011 2013US$ billion
 
Note: No trade data available for Myanmar (2012-2013) and Viet Nam (2001-2004). Starting from 2009, 
data converted from BPM6 to BPM5 methodolog y for Philippines, Singapore and Thailand.  
Source: WTO Statistics Database. WT/REG279/1 
 
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 1.6.  Chart 1.5 shows the breakdown of commercial services trade by sectors for the ASEAN 
member states in 2013. The top three categories for exports were: travel, communication and 
transportation services (85% of total exports of commercial services), while imports were dominated by transport, other business services and travel, which accounted for almost 80% of 
ASEAN exports of commercial services. No data on commercial services trade are available for 
Brunei Darussalam, Lao PDR and Myanmar nor for bilateral services trade between ASEAN and China. 
Chart 1.5 ASEAN, total trade in commercia l services with world, by sector, 2013 
37.2 21.4 21.0 
10.0 4.1 
1.8 
1.8 
1.1 
1.0 
0.6 10.4 
38.9 23.2 23.0 
7.2 1.9 
1.9 1.7 
1.1 
0.9 
0.4 7.7 Import Export
Per centPer cent
 
Note: No trade data for Brunei Darussalam; Lao PDR; and Myanmar. 
Source: WTO Statistics Database. 
 
1.7.  China's global investment position is depict ed in Chart 1.6. With stocks of over US$950 billion 
in 2013, China remains an important net recipient of direct investment from the world. Both inward and outward FDI have grown steady during this period, with China's outward stock of FDI 
reaching US$614 billion by 2013. China's FDI to and from ASEAN members is shown in Table 1.2 
below. Singapore is the largest investor in China among the ASEAN members with steady growth from US$2 billion in 2003 to US$4.4 billion in 2008, the latest year for which data were available. 
Total ASEAN FDI in China was US$5.5 billion, compared to China's FDI in ASEAN at US$2.5 billion 
in 2008. 
Chart 1.6 China: Foreign direct in vestment with world, 2001-2013 
02004006008001,0001,200
2001 2003 2005 2007 2009 2011 2013FDI stock with world
(US$ billion) 
Outward Inward
020406080100120140
2001 2003 2005 2007 2009 2011 2013FDI flow with world
(US$ billion) 
Outward Inward
 
Source: UNCTAD. WT/REG279/1 
 
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 Table 1.2 China's inward and outward foreig n direct investment with ASEAN member 
states, by country, 2003-2008 
(US$ billion)  
Originating/Destination Country  2003  2004  2005  2006 2007 2008  
Brunei Darussalam inward  0.00 0.00 0.00 0.00 0.00 0.00 
 outward  0.05 0.1 0.16 0.29 0.38 0.34  
Cambodia inward  0.01 0.02 0.00 0.00 0.01 0.00 
 outward  0.02 0.03 0.01 0.01 0.06 0.2  
Indonesia inward  0.15 0.1 0.09 0.1 0.13 0.17 
 outward  0.03 0.06 0.01 0.06 0.1 0.17  
Lao People's Dem. Rep. inward  0.00 0.00 0.00 0.00 0.00 0.01 
 outward  0.00 0.00 0.02 0.05 0.15 0.09  
Malaysia inward  0.25 0.39 0.36 0.39 0.4 0.25 
 outward  0.00 0.01 0.06 0.01 -0.03 0.03  
Myanmar inward  0.00 0.01 0.00 0.01 0.00 0.00 
 outward  0.00 0.00 0.01 0.01 0.09 0.23  
Philippines inward  0.22 0.23 0.19 0.13 0.2 0.13 
 outward  0.00 0.00 0.00 0.01 0.00 0.03  
Singapore inward  2.06 2.01 2.2 2.26 3.18 4.44 
 outward  0 0.05 0.02 0.13 0.4 1.55  
Thailand inward  0.17 0.18 0.1 0.14 0.09 0.13 
 outward  0.06 0.02 0.00 0.02 0.08 0.05  
Viet Nam inward  0.00 0.00 0.00 0.01 0.00 0.00 
 outward  0.01 0.02 0.02 0.04 0.11 0.12  
ASEAN inward  2.93 3.04 3.11 3.35 4.39 5.46 
 outward  0.12 0.20 0.16 0.34 0.97 2.48  
Source: Ministry of Commerce, China. 
 
1.8.  Table 1.3 shows total foreign direct investment by ASEAN member states during 2001-2013. 
As for its investment in China, among ASEAN members, Singapore has consistently been the 
largest recipient and provider of direct investment from and to the world, respectively. Malaysia and Indonesia have consistently been the second  and third largest providers of FDI during the 
period of survey. Thailand and Malaysia have consistently been next as the second and third 
largest recipients of FDI, respectively, for most  of this period except in 2000-2001 when their 
ranks were reversed, and in 2006 when Indonesia became the third largest recipient of FDI. During the period surveyed, while inward investment increased from US$244 billion in 2001 to 
US$1,138 billion in 2013, ASEAN's outward FDI has increased from US$101 billion in 2001 to 
US$720 billion in 2013. 
Table 1.3 ASEAN, total inward and outward fo reign direct investment stock with world, 
by country, 2001-2013 
(US$ billion) 
  
2001 
2002 
2003 
2004 
2005 
2006 
2007 
2008 
2009 
2010 
2011 
2012 
2013 
Brunei Darussalam Inward 4 5  9 9 9 10 10 10 11 11 12 13  14 
 Outward 1 1 1 1 1 1 1 1 1 1 1 0 0 
Cambodia Inward 2 2  2 2 2 3 4 5 5 6 7 8  9 
 Outward 0 0 0 0 0 0 0 0 0 0 0 0 0 
Indonesia Inward - -  10 16 41 55 80 72 109 161 185 212  230 
 Outward - - - - - 1 3 3 4 7 6 12 16 
Lao People's Dem. Rep. Inward 1 1  1 1 1 1 1 1 2 2 2 2  3 
 Outward 0 0 0 0 0 0 0 0 0 0 0 - - 
Malaysia Inward 34 38  41 43 44 54 76 74 79 102 115 132  145 
 Outward 8 10 12 13 22 36 58 67 80 97 106 120 134 
Myanmar Inward 3 4  4 5 5 5 6 7 8 9 10 12  14 
 Outward - - - - - - - - - - - - - 
Philippines Inward 10 12  11 13 15 17 20 22 23 26 25 29  33 
 Outward 1 1 1 2 2 2 6 6 6 7 8 10 13 
Singapore Inward 139 161  184 216 237 313 421 455 503 623 673 797  838 
 Outward 87 101 121 144 160 211 273 251 300 381 440 494 498 
Thailand Inward 35 40  51 55 63 81 97 97 110 142 159 186  185 
 Outward 4 4 6 6 6 9 9 12 17 24 42 56 59 
Viet Nam Inward 16 17  19 20 22 25 32 41 49 57 64 73  82 
 Outward - - - - - - - - - - - - - 
- no data. 
Source: UNCTAD. WT/REG279/1 
 
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 2  CHARACTERISTIC ELEMENTS OF THE AGREEMENT 
2.1  Background Information 
2.1.  The Agreement on Trade in Services of the Framework Agreement on Comprehensive 
Economic Cooperation between China and the Association of Southeast Asian Nations (ASEAN) 
(hereafter "the Agreement") was signed by China and the ASEAN member states (hereafter "the 
Parties") on 14 January 2007 and entered into forc e on 1 July 2007. The Agreement was notified 
to the WTO by the Parties on 26 June 2008 under GATS Article V:7(a) (S/C/N/463).  
2.2.  The Agreement is the second agreement under the Framework Agreement on Comprehensive 
Economic Cooperation between the Parties after the Agreement on Trade in Goods that entered 
into force on 1 July 2003. The third agreement und er the Framework Agreement is on investment 
and was signed in May 2009. The text of the Agreement is available, together with its Annex, on 
the following official websites: 
China:  http://gjs.mofcom.gov.cn/aarticl e/af/ah/200701/20070104261073.html 
 
ASEAN:  http://www.asean.org/21627.pdf  
 
2.3.  The Agreement is composed of 33 provisions and schedules of specific commitments for each 
Party. 
3  PROVISIONS ON TRADE IN SERVICES 3.1  Scope and Definitions 3.1.  Taking into consideration national policy objectives and the asymmetric degree of 
development in services regulations among the Parties (preamble), the Agreement governs the 
Parties' measures affecting trade in services (Article 2.1) and covers GATS modes of supply 1 (cross-border), 2 (consumption abroad), 3 (commercial presence), and 4 (temporary movement 
of natural persons) (Article 1.(t)). 
3.2.  Commercial presence means any type of business or professional establishment, including 
through: i) the constitution, acquisition or maintenance of a juridical person; or ii) the creation or 
maintenance of a branch or a representative office, within the territory of a Party for the purpose 
of supplying a service (Article 1.(b)). 
3.3.  The definition of 'natural persons of anot her Party' is not harmonized among all 11 Parties. 
Five Parties, China, Indonesia, Lao PDR, Thailand and Viet Nam, recognize natural persons of 
another Party who reside in the territory of that other Party or elsewhere and who under the law of 
that other Party are nationals of that other Pa rty; however, they do not recognize permanent 
residents in their territories as natural persons. On the other hand, the other six Parties, 
Brunei Darussalam, Cambodia, Malaysia, the Philippines, and Singapore recognize both permanent 
residents and nationals of another Party as natural persons. If any of the five Parties enacts a domestic law on the treatment of permanent reside nts of another Party or non-Party, negotiations 
shall be conducted to determine whether to includ e permanent residents as 'natural persons' under 
the Agreement in respect of that Party (footnote 1 of the Agreement).  
3.4.  The Agreement does not apply to: i) services supplied in the exercise of governmental 
authority; ii) regulations or requirements on gove rnment procurement of services in the exercise 
of non-commercial resale and use (Article 2.2); iii) subsidies or grants provided by a Party, or any 
conditions attached to their receipt or continued receipt, whether or not such subsidies or grants are offered exclusively to domestic services, consumers or suppliers (Article 14.1); and iv) 
permanent residents but not citizens of China, Indonesia, Lao PDR, Thailand and Viet Nam (see 
paragraph 3.3). 
3.5.  The newer ASEAN member states, Cambodia (which joined in 1999), Lao PDR (1997), 
Myanmar (1997) and Viet Nam (1995) enjoy special and differential treatment and flexibility under 
the Agreement (preamble of the Agreement). Th e flexibility includes under Article 17.(d) WT/REG279/1 
 
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 liberalization of fewer sectors and transactions with a view to progressively extending market 
access based on their respective development situations. 
3.2  Denial of Benefits 3.6.  Article 31 on denial of benefits is based on Article XXVII of the GATS allowing a Party to deny 
the benefits of the Agreement, inter alia , to the supply of a service, if it establishes that the 
service is supplied from or in the territory of a non-Party. 
3.3  General Provisions on Trade in Services 
3.3.1  Market access 
3.7.  The market access provision reflects the la nguage of Article XVI of the GATS, and provides 
that, where specific market access commitments are undertaken, six types of limitations cannot be maintained or adopted by the Parties, unless othe rwise specified in their schedules (Article 18). 
3.3.2  National treatment and MFN 
3.8.  Under Article 19 each Party will accord to se rvices and service suppliers to the other Parties 
treatment which is no less favourable than it accords, to its own like services and service 
suppliers. The Article mirrors Article XVII of the GATS.  
3.9.  The Agreement does not contain provisions on MFN treatment. 3.3.3  Commercial presence 
3.10.  No specific provision on commercial presence, per se , is stated under the Agreement. The 
limitations on commercial presence in the subscribed services sectors in the Parties' schedules of commitments are summarized in the section on 'liberalization commitments' below. 
3.11.  The Agreement on Investment of the Framework Agreement on Comprehensive Economic 
Cooperation between the Parties contains a provisio n affecting the supply of a service by a Party's 
service supplier through commercial presence in the territory of another Party. In general, the Agreement on Investment shall not apply to measures adopted or maintained by a Party affecting 
trade in services (Article 3). However, regardless of whether or not a service sector is scheduled in 
the Party's services commitments, Articles 7 (treatment of investment), 8 (expropriation), 9 (compensation for losses), 10 (transfers and repatriation of profits), 12 (subrogation) and 
14 (investment disputes between a Party and an investor) shall apply, mutatis mutandis , to any 
measure affecting the supply of the service by a service supplier of a Party through commercial 
presence in the territory of another Party, only to the extent that they relate to an investment and an obligation under the Agreement on Investment.  
3.3.4  Movement of natural persons 
3.12.  There is no specific provision or a separa te Annex on the movement of natural persons in 
the Agreement. The GATS Annex on Movement of Natural Persons Supplying Services shall, 
mutatis mutandis , apply to the Agreement (Article 28.1). 
3.4  Liberalization Commitments 3.13.  Each Party's schedule of commitments is annexed to the Agreement ('first package'). The 
Parties shall endeavour to achieve the commitments in the first package that go beyond their 
GATS commitments (Article 21.1). They will conclu de a 'second package' of specific commitments 
to substantially improve the 'first package' within one year from the date of the entry into force of 
the Agreement (Article 23.2). The Protocol to  implement the Second Package of Specific 
Commitments under the Agreement on Trade in  Services of the Framework Agreement on 
Comprehensive Economic Cooperation has been ratifi ed by all the Parties and entered into force on 
1 January 2012. The Parties have indicated that they will notify it in due course. Successive rounds WT/REG279/1 
 
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 of negotiations to conclude further specific commitments progressively liberalizing trade in services 
among the Parties are foreseen under the review mechanism (Article 23.3). 
3.14.  At any time after three years from the entry into force of the Agreement, a Party may 
modify or withdraw any commitment in its schedule subject to: i) notification of the intention to 
modify or withdraw to the other Parties and the ASEAN Secretariat no later than three months 
before the implementation of such modification  or withdrawal; and ii) negotiations with any 
affected Party to agree to the necessary compensatory adjustment (Article 24.1). If the Parties 
cannot agree on appropriate compensation, the matter shall be resolved by arbitration under the 
Agreement on Dispute Settlement Mechanism of the Framework Agreement (Article 24.4) (see paragraphs 115-121). As arbitration is mandatory if there is no agreement on compensatory adjustment, either the modifying or affected Party can refer the matter to arbitration. The 
modification or withdrawal cannot be implemente d unless there is an agreement for compensatory 
adjustment. 
3.4.1  China 
3.4.1.1  Horizontal commitments 
3.15.  China's horizontal commitments in the Agreement match those under the GATS except for 
the addition of: i) a national treatment limitation on all subsidies to domestic services suppliers in 
any new sectors and sub-sectors scheduled after China's accession to the WTO; and ii) the entry 
and temporary stay of two categories of natural pe rsons, contractual service suppliers (limited to 
nine services sectors)
1, and installers and servicers. In both  the GATS and the Agreement, foreign 
invested enterprises in China are defined as: i) wholly foreign-owned enterprises; and ii) equity 
based or contractual joint ventures. 
3.4.1.2  Sector-specific commitments 3.16.  For business services, China has added a number of new commitments for: i) market 
research services (limited to investigation services designed to secure information on the 
prospects and performance of an organization's products in the market); ii) project management 
services other than for construction; and iii) placement and supply services of personnel in the 
form of majority foreign owned joint ventures and subject to an economic needs test. Additionally, 
in building cleaning services and printing of packaging materials (on a fee or contract basis) services, China has permitted the entry of wholly foreign-owned enterprises. For printing of packaging materials, economic needs tests are also required. For the sub sectors of software 
implementation services, real estate services (o n a fee or contract basis), and translation and 
interpretation services in which China's GATS commitments only guarantee joint ventures with foreign majority ownership, the ASEAN member states enjoy improved mode 3 access under the 
Agreement in that wholly foreign-owned enterpri ses are allowed to enter China. Regarding real 
estate services involving own or leased property, China's GATS schedule does not permit the establishment of wholly foreign-owned enterprises for high standard real estate projects (such as 
apartments and office buildings, excluding luxury hotels), whereas the Agreement does not contain 
such limitations and wholly foreign-owned ente rprises are allowed. There are certain services
2 
under business services for which China has GA TS commitments but which the Agreement does 
not seem to include. According to China the schedules under the Agreement only include 
commitments which go beyond the Parties' GATS commitments. 
3.17.  Commitments in construction and related engineering services match those under the 
GATS. In environmental services (excluding enviro nmental quality monitoring and pollution source 
inspection), under mode 3, China has also permitted wholly foreign-owned enterprises, while it 
only permits joint ventures with foreign majority ownership in its GATS commitments.  
                                               
1 These are i) accounting services, ii) medical an d dental services, iii) architectural services, 
iv) engineering services, v) urban planning services (e xcept general urban planning), vi) computer and related 
engineering services, vii) construction and related engineering services, viii) education services, and ix) tourism services. 
2 These are i) professional services, ii) advertising services, iii) technical testing and analysis services 
and freight inspection covered by ex cluding statutory inspection services  for freight inspection services, 
iv) services incidental to agricultur e, forestry, hunting and fi shing, v) packaging services, and vi) convention 
services. WT/REG279/1 
 
- 13 - 
 
 
 3.18.  For recreational, cultural and sporting services, a sector in which China has no GATS 
commitments, the provision of sports event promotion/organization services and sports facility 
operation services (excluding golf) by wholly foreign-owned enterprises is permitted subject to economic needs tests.  
3.19.  China has made commitments in certain transport services sub-sectors (maintenance and 
repair services of motor vehicles, and passenger transportation) for which it has no commitments in the GATS. Regarding limitations on mode 3 market access, it has permitted wholly 
foreign-owned subsidiaries to provide maintenance and repair services for motor vehicles, whereas 
only joint ventures with maximum foreign equity of up to 49% may provide passenger transportation services, subject to an economic needs tests. Economic needs tests to obtain licenses to establish joint ventures in aircraft repair and maintenance services have been 
abolished. China has relaxed requirements regarding the form of establishment in mode 3 for 
computer reservation system in air transport services in that foreign services suppliers are permitted to establish joint ventures with the Chinese Computer Reservation System in China 
('unbound' in its GATS schedule). 
3.20.  Table 3.1 below summarizes China's specific commitments under the Annex to the 
Agreement and compares them with its GATS schedule, excluding mode 4 commitments. This 
table (as well as Tables 3.2-3.8) is based on the services sectoral classification list.
3 Improvements 
in existing GATS commitments are represented by a relaxation of the form of establishment under 
mode 3 or the addition of sub-sectors in which commitments are made (see paragraphs 27-30 for a detailed description of the changes). Like in the GATS, China took no commitments in sectors 
such as: i) research and development services; ii) rental/leasing services without operators; iii) 
health related and social services; iv) space services; and v) pipeline transport services.  
3.21.  Communication services, distribution services, education services, financial services, 
tourism and travel related services, maritime transp ort services, internal waterways transport, rail 
transport services, in which China has GATS commitments are not scheduled in the Agreement.  
China has clarified that its Schedule under the Agreement only includes commitments that go 
beyond the GATS.  
Table 3.1 China: comparison between the GATS and the Agreement specific 
commitments in trade in services (excluding mode 4)
  
Sectors GATS FTA 
1. BUSINESS SERVICES   
A. Professional services √ Not scheduled 
B. Computer and related services  √ Improved  
C. Research and development - - 
D. Real estate √ Improved 
E. Rental/Leasing serv ices without operators - - 
F. Other √ Improved  
2. COMMUNICATION SERVICES  
Not scheduled A. Postal - 
B. Courier √ 
C. Telecommunication  √ 
D. Audiovisual √ 
E. Other - 
3. CONSTRUCTION AND RELATED ENGINEERING 
SERVICES √ Same 
4. DISTRIBUTION SERVICES √ Not scheduled 
5. EDUCATION SERVICES √ Not scheduled 
6. ENVIRONMENTAL SERVICES √ Improved  
7. FINANCIAL SERVICES  Not scheduled 
A. All insurance and insu rance-related services √ 
B. Banking and other financial services √ 
8. HEALTH RELATED AND SOCIAL SERVICES - - 
9. TOURISM AND TRAVEL RELATED SERVICES  Not scheduled 
A. Hotels an d restaurants √ 
B. Travel agencies and tour operators √ 
C. Tourist guides - 
D. Other - 
                                               
3 MTN.GNS/W/120. WT/REG279/1 
 
- 14 - 
 
 
 Sectors GATS FTA 
10. RECREATIONAL, CULTURAL AND SPORTING 
SERVICES - New 
11. TRANSPORT SERVICES   
A. Maritime √ Not scheduled 
B. Internal waterways √ Not scheduled 
C. Air  √ Improved  
D. Space - - 
E. Rail  √ Not scheduled 
F. Road √ Improved  
G. Pipeline - - 
H. Services auxiliary to all modes of transport √ Same 
I. Other - - 
12. OTHER SERVICES NOT INCLUDED ELSEWHERE - - 
Note: 
√:  Commitments in the GATS schedule. 
-:  No commitments either under the GATS or the Agreement. Improved: Improved commitments made under the Agreement compared to those under the GATS. 
New:  New commitments made under the Agreement. Not scheduled: Commitment in the GATS schedule, but not under the Agreement. 
Same:  Same commitments made under the Agreement as those under the GATS.  Source:  China's Schedule of Specific Commitments under the GATS (S/DCS/W/CHN) and Annex under the 
Agreement. The comparison only concerns market access and national treatment for modes 1-3, and not mode 4. 
 
3.4.2  ASEAN member states 
3.4.2.1  Brunei Darussalam  3.4.2.1.1  Horizontal commitments 3.22.  Brunei's horizontal commitments under the Agreement apply to modes 3 and 4. Mode 3 is 
unbound under market access for measures conc erning foreign equity. As regards national 
treatment, half of the board members of a pub lic company and half the directors of a private 
company must be nationals or residents of Brunei, and all companies incorporated outside but 
which establish a place of business in Brunei must have one or more locally resident agents. 
Mode 4 commitments cover the entry and temporary presence of intra-corporate transferees at the level of managers, executives and specialists. 
3.4.2.1.2  Sector-specific commitments 
3.23.  Brunei Darussalam's services schedule under the Agreement contains commitments in 
tourism – which is not in its GATS schedule – as well as in transport services. Other sectors in which it has GATS commitments, but not under the Agreement, are business, communication, and 
financial services. According to Brunei Darussalam, these services are covered in the Second 
Package of Specific Commitments to the Agreement.  
3.24.  For tourism services, Brunei has made a commitment for hotel lodging services, with 
modes 1 and 2 unbound, and with a joint-venture requirement and a foreign equity limitation of 
70% under mode 3. 
3.25.  In transport services, commitments are limited to the maritime transport of passengers and 
freight, and to the maintenance and repair of ai rcraft. For these sub-sectors, modes 1 and 2 are 
unrestricted, while mode 3 is left unbound. Under the GATS, Brunei's transport commitments are limited to the rental of aircraft with crew, a sub-sector in which it has no commitments under the Agreement. WT/REG279/1 
 
- 15 - 
 
 
 Table 3.2 Brunei Darussalam: comparison betw een the GATS and the Agreement specific 
commitments in trade in services (excluding mode 4) 
Sectors GATS FTA 
1. BUSINESS SERVICES   
A. Professional services √ Not scheduled 
B. Computer and related services  √ Not scheduled 
C. Research and development - - 
D. Real estate - - 
E. Rental/Leasing serv ices without operators √ Not scheduled 
F. Other - - 
2. COMMUNICATION SERVICES   
A. Postal - - 
B. Courier - - 
C. Telecommunication  √ Not scheduled 
D. Audiovisual - - 
E. Other - - 
3. CONSTRUCTION AND RELATED ENGINEERING 
SERVICES - - 
4. DISTRIBUTION SERVICES - - 
5. EDUCATION SERVICES - - 
6. ENVIRONMENTAL SERVICES - -  
7. FINANCIAL SERVICES   
A. All insurance and insu rance-related services √ Not scheduled 
B. Banking and other financial services - - 
8. HEALTH RELATED AND SOCIAL SERVICES - - 
9. TOURISM AND TRAVEL RELATED SERVICES   
A. Hotels an d restaurants - New 
B. Travel agencies and tour operators - - 
C. Tourist guides - - 
D. Other - - 
10. RECREATIONAL, CULTURAL AND SPORTING 
SERVICES - - 
11. TRANSPORT SERVICES   
A. Maritime - New 
B. Internal waterways - - 
C. Air  √ New sub-sectora /One sub-sector 
not scheduledb 
D. Space - - 
E. Rail  - - 
F. Road - - 
G. Pipeline - - 
H. Services auxiliary to all modes of transport - - 
I. Other - - 
12. OTHER SERVICES NOT INCLUDED ELSEWHERE - - 
 
Note: √: Commitments in the GATS schedule. 
-: No commitments either under the GATS or the Agreement. New: New commitments made under the Agreement. Not scheduled: Commitment in the GATS schedule, but not under the Agreement. 
a The Agreement contains commitments in maintenance and repair of aircraft which is not included in 
Brunei's GATS commitments. 
b The GATS commitments relate to rental of aircraft with crew ar e not scheduled in the Agreement. 
 Source:  Brunei Darussalam's Schedule of Specific Commitments under the GATS (S/DCS/W/BRN) and Annex 
under the Agreement. The comparison only conc erns market access and national treatment for 
modes 1-3, and not mode 4. 
 
3.4.2.2  Cambodia 
3.4.2.2.1  Horizontal commitments 3.26.  Cambodia's services schedule under the Agr eement is identical to that under the GATS. The 
horizontal section of the schedule contains mode 4 commitments for intra-corporate transferees 
(executives, managers, specialists), business visi tors, and persons responsible for setting up a 
commercial presence.  WT/REG279/1 
 
- 16 - 
 
 
 3.4.2.2.2  Sector-specific commitments 
3.27.  Cambodia's schedule under the Agreement reproduces its GATS schedule in its entirety. 
Cambodia has made commitments in a number of sub-sectors under business services under the Agreement and the GATS. Commitments on profe ssional services encompass legal services 
(home and host country law); accounting, auditi ng, and bookkeeping; taxation; architecture; 
engineering; and some medical services. The sch edules also contain commitments on the full 
range of computer and related services, as well as on some rental/leasing services, and most 
'other business services'. 
3.28.  For courier services, Cambodia undertook full commitments in modes 1-3, and, as of 
1 January 2009, full commitments in telecommunications services, except for a 51% foreign equity limit in basic telecommunication services. Cambodia also adheres to the Reference Paper on basic 
telecoms. 
3.29.  Cambodia also made full commitments in modes 1-3 for construction services (except 
mode 1, which is unbound due to lack of technical feasibility), environmental services, and health 
services, for private hospital services (subject, however, to a nationality requirement for at least 
one director for technical matters). Commitments on distribution services cover all sub-sectors with no limitations in modes 1-3. Commitments in education services cover higher, adult, and 
other education services.  
3.30.  In financial services, insurance commitments comprise life and non-life insurance, 
reinsurance and retrocession, and auxiliary services. Commitments in banking services are comprehensive but subject to some limitations, such as a requirement that deposits from the 
public received through mode 1 be reinvested in Cambodia. Commitments in other sub-sectors 
(i.e., trading for own account, securities, money broking, asset management, settlement and clearing services, provision of financial information, and advisory, intermediation, and other 
auxiliary services) are unbound for commercial presence, with the provision that this shall be the 
case until Cambodia decides what types of entities can conduct these services and has passed related laws and regulations.  
3.31.  For tourism services, commitments encompass all sub-sectors, and contain limitations for 
hotel services (limited to 3 star hotels and above), restaurant services (subject to an economic needs test under mode 3), and travel agency services, (subject to a foreign equity limit of 51%). Cambodia undertook commitments in cinema th eatre services under recreational services. 
3.32.  Cambodia has made additional commitments to provide reasonable and non-discriminatory 
access to specified maritime services, e.g., towi ng and tug assistance, and custom brokers. As 
concerns air transport, commitments comprise maintenance and repair of aircraft, selling and 
marketing, and computer reservation services. Road transport commitments include freight and 
passenger transportation, as well as maintenance and repair of road transport equipment and other support services. It also made commitments on the pipeline transport of fuels and other 
goods, subject to a concession contract.  
3.4.2.3  Indonesia 3.4.2.3.1  Horizontal commitments 3.33.  Indonesia's schedule under the Agreement contains horizontal restrictions on commercial 
presence in relation to the type of legal entity (joint venture or representative office), tax 
measures (20% withholding tax for non-residents), and a prohibition on landownership, which are identical to those listed in its GATS schedule.  
3.34.  Horizontal commitments under mode 4 cover directors, managers and technical 
experts/advisors for an initial period of two ye ars, as under the GATS schedule. However, the 
extension period is doubled from one to two years as compared to the GATS. Intra-corporate 
transferees are subject to an economic needs test, like under the GATS. Entry for 60 days, 
extendable by 120 days, has been granted to busi ness visitors, which are not covered by the GATS 
schedule. WT/REG279/1 
 
- 17 - 
 
 
 3.4.2.3.2  Sector-specific commitments 
3.35.  In addition to the construction services in which it already has GATS commitments, 
Indonesia has added under the Agreement new sub-se ctors, i.e., work on foundation, gas fitting, 
fire and burglar alarm, and lift and escalator services. These new commitments are also listed in 
Indonesia's GATS revised offer. In addition, the level of foreign ownership allowed in the 
prescribed joint ventures is raised from 49% to 55%. 
3.36.  For tourism, in addition to the services already covered by its GATS schedule (i.e., hotels, 
tourism resorts, travel agent and tour operators), Indonesia has commitments on restaurants (but 
only in some parts of the country) with foreign participation limited to 49%, as well as tourism consultancy services and services of international hotel operators, sub-sectors in which Indonesia has not made commitments under the GATS nor in its GATS revised offer.  
3.37.  Finally, the schedule comprises a range of energy services scheduled according to the 
sectoral proposal made by Indonesia in the GATS . The services included are: core analysis and 
other lab test for isotope analysis, geological and geophysical services for seismic data acquisition 
and coal liquefaction and gasification. 
3.38.  Indonesia's schedule contains no commitments in other sectors, e.g., business, 
communications, financial or transport services. In that regard, various services mentioned in 
Indonesia's GATS commitments do not appear in the schedule under the Agreement, including 
numerous business services, telecommunications, financial services, and maritime transport services.  
Table 3.3 Indonesia: comparison between  the GATS and the Agreement specific 
commitments in trade in services (excluding mode 4)
 
Sectors GATS FTA 
1. BUSINESS SERVICES   
A. Professional services √ Not scheduled  
B. Computer and related services  √ Not scheduled 
C. Research and development √ Not scheduled 
D. Real estate - - 
E. Rental/Leasing serv ices without operators - - 
F. Other √ Not scheduled  
2. COMMUNICATION SERVICES   
A. Postal - - 
B. Courier - - 
C. Telecommunication  √ Not scheduled 
D. Audiovisual - - 
E. Other - - 
3. CONSTRUCTION AND RELATED ENGINEERING 
SERVICES √ Improved 
4. DISTRIBUTION SERVICES - - 
5. EDUCATION SERVICES - - 
6. ENVIRONMENTAL SERVICES - - 
7. FINANCIAL SERVICES   
A. All insurance and insu rance-related services √ Not scheduled 
B. Banking and other financial services √ Not scheduled 
8. HEALTH RELATED AND SOCIAL SERVICES - - 
9. TOURISM AND TRAVEL RELATED SERVICES   
A. Hotels an d restaurants √ New (for restaurants) 
B. Travel agencies and tour operators √ Same 
C. Tourist guides - - 
D. Other - New 
10. RECREATIONAL, CULTURAL AND SPORTING 
SERVICES - - 
11. TRANSPORT SERVICES   
A. Maritime √  Not scheduled 
B. Internal waterways - - 
C. Air  - - 
D. Space - - 
E. Rail  - - 
F. Road - - 
G. Pipeline - - WT/REG279/1 
 
- 18 - 
 
 
 Sectors GATS FTA 
H. Services auxiliary to all modes of transport - - 
I. Other - - 
12. OTHER SERVICES NOT INCLUDED ELSEWHERE - New (energy services) 
Note: 
√:  Commitments in the GATS schedule. 
-:  No commitments either under the GATS or the Agreement. Improved: Improved commitments made under the Agreement compared to those under the GATS. 
New:  New commitments made under the Agreement. 
Not scheduled: Commitment in the GATS schedule, but not under the Agreement. 
Same:  Same commitments made under the Agreement as those under the GATS.  Source:  Indonesia's Schedule of Specific Commit ments under the GATS (S/DCS/W/IDN) and Annex under 
the Agreement. The comparison only concerns market access and national treatment for modes 1-3, and not mode 4. 
 
3.4.2.4  Lao PDR 
3.4.2.4.1  Horizontal commitments 
3.39.  Lao PDR's schedule under the Agreement contains various horizontal limitations in relation 
to all modes of supply. For example, approval by the Central Bank of the Lao PDR is required for 
services delivered through modes 1 and 2. For co mmercial presence of foreign services suppliers, 
the legal form can be: a joint venture with one or more domestic investors (at least 30% of the 
total equity by foreign investors/service suppliers in the joint venture); a wholly foreign-owned enterprise; and a branch or representative office , subject to approval by the authorities. For 
mode 4, foreign services suppliers and investors have an obligation to upgrade the skills of their 
Lao employees through, for example, training in the country or abroad. 
3.4.2.5  Sector-specific commitments 3.40.  Lao PDR has undertaken commitments only on financial services. Financial services 
commitments cover all insurance-related services, with the exception of pension fund, broking, 
and agency services, while those on banking and other financial services are limited to financial leasing, trading for own account, and payment and money transmission services. For the banking 
and other financial sub-sectors, there are no limitations inscribed in modes 1-3, so limitations 
registered in horizontal commitments only apply,  whereas mode 4 is unbound except as indicated 
in the horizontal commitments. 
3.4.2.6  Malaysia 
3.4.2.6.1  Horizontal commitments 3.41.  No horizontal section was found in Malaysia's schedule under the Agreement although it is 
referred to in the sector specific commitments.  
3.4.2.6.2  Sector-specific commitments 
3.42.  Not all of the sub-sectors in which Malaysia has GATS commitments are reflected in its 
commitments, including urban planning and landscape architectural services (CPC 8674), 
landscaping services (CPC 86742) and computer so ftware development services (CPC 842). Within 
business services, commitments are made in architectural, engineering, medical specialty services, and computer and related services. For these sub-sectors, apart from an authentication 
requirement in architectural and engineering servic es, there are no limitations for modes 1 and 2. 
For mode 3, full commitments are taken for computer and related services, whereas limitations on legal form and foreign equity participation are registered in its GATS schedule. Architecture, engineering, and medical specialty services can on ly be supplied by a natural person. In medical 
specialty services, the restriction on mode 4 has been relaxed in that Malaysia allows natural 
persons to practice in private hospitals with at least 70 beds compared to 100 beds in its GATS schedule. In the case of engineering services, fo reign equity participation is limited to 10% and 
foreign directors are not allowed. WT/REG279/1 
 
- 19 - 
 
 
 3.43.  Commitments for basic and value-added telecommunication services are based on the 
provision of network facility services (NFP), network service (NSP) and application services (ASP) 
as defined in the schedule. Full commitments are taken for modes 1 and 2, while in the case of mode 3 the supply of NFP and NSP is only possible through the acquisition of shares in existing 
licensees, and a foreign equity limit of 30% applies. For ASP, the foreign equity limit is 49% and 
management control shall be in the hands of Malaysians. Additional limitations (compared to the GATS) on equity and foreign control apply for Telekom Malaysia.  
3.44.  For construction services, commitments on modes 1 and 2 are the same as in the GATS: in 
the case of mode 3, non-locally incorporated companies which are not inscribed in its GATS schedule, may provide services on a project-by -project basis, but are subject to certain 
requirements on the source of financing and availability of local expertise. 
3.45.  Under education services, a sector in wh ich Malaysia has not made commitments under the 
GATS, a commitment is taken for higher education. The sector is limited to services provided by "privately-funded higher education" (i.e., commitments only for privately funded higher 
education). Modes 1 and 2 are unbound except fo r franchise and twinning arrangements between 
foreign and Malaysian-based educational institutions. Mode 3 is limited to joint ventures with foreign equity up to 49% and subject to an econ omic needs test. An additional economic needs 
test (i.e., type of courses offered, research programmes and share of foreign students) can be 
applied in situations where foreign equity is allowed to exceed 49%. 
3.46.  Commitments are taken in financial services for direct insurance companies and advisory, 
intermediation and other auxiliary financial serv ices. For these sub-sectors, the commitments are 
nearly the same as those in Malaysia's GATS schedule, with a few improvements in relation to 
mode 4. 
3.47.  In health services, the commitments are the same as in Malaysia's GATS schedule, except 
that the foreign equity limit in private hospital  services is increased to 40% from 30%. Under 
tourism services, commitments are taken in mode 3 for convention centres (over 3,000 participants) and theme parks, sub-sectors in which Malaysia has not made commitments 
under the GATS. For convention centres, the commitment is limited to joint ventures with a foreign 
equity of up to 30%. For theme parks, full foreign ownership is permitted; however, the 
commitment foresees that a foreign equity limit of 51% can be imposed five years after entry into force of the Agreement.  
3.48.  GATS plus commitments are taken in transport services for maritime freight forwarding, 
selling and marketing of air transport services, an d computer reservation systems for air transport, 
sub-sector in which Malaysia has not made commitments under the GATS. Full commitments are 
taken for modes 1 and 2, while for mode 3, ma ritime freight forwarding is limited to a 
representative office, regional office or joint venture corporation with Malaysian control. The foreign equity limit is 49%. No mode 3 commitments are taken for the other sub-sectors.  
Table 3.4 Malaysia: comparison between the GATS and the Agreement specific 
commitments in trade in services (excluding mode 4)
 
Sectors GATS FTA 
1. BUSINESS SERVICES   
A. Professional services √ Improved 
Some sub-sectors not scheduled 
B. Computer and related services  √ Improved.  
One sub-sector not scheduled 
C. Research and development √ Not scheduled 
D. Real estate - - 
E. Rental/Leasing serv ices without operators √ Not scheduled 
F. Other √ Not scheduled 
2. COMMUNICATION SERVICES   
A. Postal - - 
B. Courier - - 
C. Telecommunication  √ Same  
D. Audiovisual √ Not scheduled 
E. Other - - WT/REG279/1 
 
- 20 - 
 
 
 Sectors GATS FTA 
3. CONSTRUCTION AND RELATED ENGINEERING 
SERVICES √ Improved 
4. DISTRIBUTION SERVICES - - 
5. EDUCATION SERVICES - New 
6. ENVIRONMENTAL SERVICES - - 
7. FINANCIAL SERVICES   
A. All insurance and insu rance-related services √ Improved. Some sub-sectors not 
scheduled 
B. Banking and other financial services √ Improved. Some sub-sectors not 
scheduled 
8. HEALTH RELATED AND SOCIAL SERVICES √ Improved 
9. TOURISM AND TRAVEL RELATED SERVICES   
A. Hotels an d restaurants √ Not scheduled 
B. Travel agencies and tour operators √ Not scheduled 
C. Tourist guides - - 
D. Other - New 
 
10. RECREATIONAL, CULTURAL AND SPORTING 
SERVICES √ Not scheduled 
11. TRANSPORT SERVICES   
A. Maritime √  New sub-sector (maritime freight 
forwarding services) . Some sub-
sectors not scheduled 
B. Internal waterways - - 
C. Air  - New 
D. Space - - 
E. Rail  - - 
F. Road - - 
G. Pipeline - - 
H. Services auxiliary to all modes of transport - - 
I. Other - - 
12. OTHER SERVICES NOT INCLUDED 
ELSEWHERE √ Not scheduled 
Note: 
√: Commitments in the GATS schedule. 
-: No commitments either under the GATS or the Agreement. Improved:Improved commitments made under the Agreement compared to those under the GATS. 
New: New commitments made under the Agreement. Not scheduled: Commitment in the GATS schedule, but not under the Agreement. 
Same: Same commitments made under the Agreement as those under the GATS. 
Source:  Malaysia's Schedule of Specific Commitments under the GATS (S/DCS/W/MYS) and Annex under the 
Agreement. The comparison only concerns market access and national trea tment for modes 1-3, and 
not mode 4. 
3.4.2.7  Myanmar 
3.4.2.7.1  Horizontal commitments 
3.49.  There is no horizontal section in Myan mar's schedule. However, according to Myanmar, 
there is a horizontal section in its Schedule und er the Second Package of Commitments under the 
Agreement. 
3.4.2.7.2  Sector-specific commitments 
3.50.  Myanmar's schedule under the Agreement contains specific commitments in: business 
services (advertising, printing and publishing); au diovisual services (motion picture and video tape 
production, cinema theatre and motion picture projection); financial services (actuarial); maritime 
transport (international passenger and freight transport excluding cabotage, maritime cargo handling); and air transport (aircraft repair and maintenance, selling and marketing, computer reservation system). While these commitments cover only 11 of 160 sub-sectors identified in the 
Services Sectoral Classification List, they go  beyond Myanmar's commitments under the GATS 
which cover only three sub-sectors. These three sub-sectors (hotels; travel agencies and tour 
operators; and tourist transport operations) are not reproduced in Myanmar's schedule under the 
Agreement; according to Myanmar, these sub-sectors will be considered in the next Package. WT/REG279/1 
 
- 21 - 
 
 
 3.51.  For the two sub-sectors in which Myanmar has made commitments under business services, 
full commitments are made in mode 2, while modes 1, 3 and 4 are unbound for both market 
access and national treatment. With respect to au diovisual services, motion picture and video tape 
production services are unbound under mode 1 and subject to joint venture and minimum foreign 
equity of 35% under mode 3, whereas cinema thea tre and motion picture projection services are 
unbound under modes 1, 3 and 4. 
3.52.  Commitments under financial services are limited to actuarial services, with full 
commitments in modes 1 and 2 for market access and with limitations for national treatment. 
Modes 3 and 4 are unbound for both market access and national treatment.  
3.53.  Myanmar's commitments in maritime transport cover three sub-sectors. International 
passenger transport (excluding cabotage) is unbound in all modes except mode 2. Full 
commitments are made in international freight transport (excluding cabotage), for modes 1 and 2 
and mode 3 is subject to certain foreign invest ment restrictions. As regards commitments in 
maritime cargo handling services, mode 1 is unbound due to lack of technical feasibility, mode 2 is 
unrestricted, and mode 3 is subject to certain restrictions on foreign investment and land 
ownership. 
3.54.  Myanmar has undertaken commitments in the air transport services referred to in GATS 
Annex on Air Transport Services. For aircraft repair and maintenance and selling and marketing 
services, modes 1 and 2 are unrestricted and mode  3 is subject to restrictions on foreign 
investment. For computer reservation systems, supply of the service under mode 1 must use public telecommunication networks, mode 2 is subject to commercial arrangements with licensed 
operators, while modes 3 and 4 are unbound. 
Table 3.5 Myanmar: comparison between the GATS and the Agreement specific 
commitments in trade in services (excluding mode 4)
 
Sectors GATS FTA 
1. BUSINESS SERVICES   
A. Professional services - - 
B. Computer and related services  - - 
C. Research and development - - 
D. Real estate - - 
E. Rental/Leasing serv ices without operators - - 
F. Other - New 
2. COMMUNICATION SERVICES   
A. Postal - - 
B. Courier - - 
C. Telecommunication  - - 
D. Audiovisual - New 
E. Other - - 
3. CONSTRUCTION AND RELATED ENGINEERING 
SERVICES - - 
4. DISTRIBUTION SERVICES - - 
5. EDUCATION SERVICES - - 
6. ENVIRONMENTAL SERVICES - - 
7. FINANCIAL SERVICES   
A. All insurance and insu rance-related services - New 
B. Banking and other financial services - - 
8. HEALTH RELATED AND SOCIAL SERVICES - - 
9. TOURISM AND TRAVEL RELATED SERVICES   
A. Hotels an d restaurants √ Not scheduled 
B. Travel agencies and tour operators √ Not scheduled 
C. Tourist guides - - 
D. Other - - 
10. RECREATIONAL, CULTURAL AND SPORTING 
SERVICES - - 
11. TRANSPORT SERVICES   
A. Maritime -  New 
B. Internal waterways - - 
C. Air  - New 
D. Space - - 
E. Rail  - - 
F. Road - - WT/REG279/1 
 
- 22 - 
 
 
 Sectors GATS FTA 
G. Pipeline - - 
H. Services auxiliary to all modes of transport √ Not scheduled 
I. Other - - 
12. OTHER SERVICES NOT INCLUDED ELSEWHERE - - 
Note: 
√:   Commitments in the GATS schedule. 
-:   No commitments either under the GATS or the Agreement. 
New:   New commitments made under the Agreement. 
Not scheduled:  Commitment in the GATS schedule, but not under the Agreement.  Source:  Myanmar's Schedule of Specific Commitme nts under the GATS (S/DCS/W/MMR) and Annex under 
the Agreement. The comparison only concerns market access and national treatment for modes 1-3, and not mode 4. 
 
3.4.2.8  the Philippines 
3.4.2.8.1  Horizontal commitments 
3.55.  Horizontal limitations for mode 3 relate to activities expressly reserved by law to citizens of 
the Philippines, acquisition of land, and access to domestic credit. Under mode 4, entry requires a determination of the non-availability of a pers on in the Philippines. Overall, the horizontal 
commitments are the same as under GATS, with two additions under national treatment: under 
mode 3, banks are prohibited from extending peso  loans to non-residents, and for modes 1-4 all 
measures taken by local government units are unbound.  
3.4.2.8.2  Sector-specific commitments 
3.56.  The Philippines' commitments under the Agreement encompass sectors not found in the 
GATS schedule, namely business, construction, en vironmental, and energy services. Sectors that 
are also found in the GATS schedule are communication and tourism services. No commitments 
are made in the financial and transport sectors in  the Agreement even if they feature in GATS 
commitments. According to the Philippines commitments were made in financial and transport services in the Second Package of Commitments under the Agreement. 
3.57.  With respect to business services, the Ph ilippines has made commitments regarding services 
incidental to mining: oil and gas exploration and development; geothermal exploration and 
development; and coal exploration and development.  Under services related to energy distribution, 
a commitment was made for energy distribution ne tworks such as pipelines for transmission and 
supply of natural gas, and power transmission and distribution lines. For oil and gas exploration 
and development, full foreign ownership is a llowed, subject to presidential approval. For 
geothermal exploration and development, coal exploration and development, and services related 
to energy distribution, foreign equity of up to 40% is permitted.  
3.58.  For communication services, commitments relate to postal and courier, and 
telecommunication services. Additional commitments on telecommunications have also been 
undertaken in the form of a Reference Paper on Regulatory Principles. Commitments in postal and 
courier services cover domestic and international mail services and money order services. The scope of the services commitments is broader th an under the GATS as commitments in postal 
services are added under the Agreement, but the Agreement contains more limitations e.g., the 
Government to operate private express and/or messengerial delivery services. Under 
telecommunication services, commitments in various services on a facilities basis, for public use, have improved in that satellite services are scheduled as a new sub-sector and mode 2 limitations 
on market access have been derestricted. Among the conditions scheduled for both postal/courier 
and telecommunications services under mode 3 for market access is a 40% foreign equity limitation. Data and message transmission serv ices have been added compared to its GATS 
schedule. Some sub-sectors such as voice mail, on-line information and data base retrieval, 
electronic data exchange, and videotex are no t scheduled in the Agreement; however, the 
Philippines notes that these are covered under th e GATS and therefore applies to the Parties. 
3.59.  In construction services, the Philippines made commitments in construction services for 
large-scale mining development projects covered by financial and technical assistance agreements. WT/REG279/1 
 
- 23 - 
 
 
 Under environmental services, commitments are limited to sewage services, with limitations under 
mode 3.  
3.60.  Regarding tourism services, the schedule contains commitments on hotel lodging services, 
restaurants, travel agencies, and professional co ngress organizers. For these services, limitations 
on mode 3 have been relaxed (for restaurants an d professional congress organizers) or abolished 
(for hotel lodging services and travel agencies).  
3.61.  For energy services, which are schedul ed under the "Others" category, commitments 
comprise the construction and operation of power plants under build-operate-transfer schemes, as 
well as services related to the supply of energy for oil refineries and oil terminals/depots.  
3.62.  The Philippines' schedule also includes  a list of MFN exemptions, even though the 
Agreement contains no MFN obligation. According to the Philippines the MFN exemptions apply to 
the Parties' commitments, as WTO Members, to provide each other MFN treatment. These 
exemptions cover the entry and temporary stay of natural persons supplying services, commercial banking, financing companies, investment houses, and liner cargo trade.  
Table 3.6 Philippines: comparison between  the GATS and the Agreement specific 
commitments in trade in services (excluding mode 4)
 
Sectors GATS FTA 
1. BUSINESS SERVICES   
A. Professional services - - 
B. Computer and related services  - - 
C. Research and development - - 
D. Real estate - - 
E. Rental/Leasing serv ices without operators - - 
F. Other - New 
2. COMMUNICATION SERVICES   
A. Postal - New 
B. Courier √ Different from the GATS 
C. Telecommunication  √ Improved 
Some sub-sectors not scheduled 
D. Audiovisual - - 
E. Other - - 
3. CONSTRUCTION AND RELATED ENGINEERING 
SERVICES - New 
4. DISTRIBUTION SERVICES - - 
5. EDUCATION SERVICES - - 
6. ENVIRONMENTAL SERVICES - New 
7. FINANCIAL SERVICES   
A. All insurance and insu rance-related services √ Not scheduled 
B. Banking and other financial services √ Not scheduled 
8. HEALTH RELATED AND SOCIAL SERVICES - - 
9. TOURISM AND TRAVEL RELATED SERVICES   
A. Hotels an d restaurants √ Improved 
B. Travel agencies and tour operators √ Improved 
C. Tourist guides - - 
D. Other √ Improved 
10. RECREATIONAL, CULTURAL AND SPORTING 
SERVICES - - 
11. TRANSPORT SERVICES   
A. Maritime √ Not scheduled 
B. Internal waterways - - 
C. Air  √ Not scheduled 
D. Space - - 
E. Rail  √ Not scheduled 
F. Road √ Not scheduled 
G. Pipeline - - 
H. Services auxiliary to all modes of transport √ Not scheduled 
I. Other - - 
12. OTHER SERVICES NOT INCLUDED ELSEWHERE - New (energy services) 
Note: 
√:   Commitments in the GATS schedule. 
-:   No commitments either under the GATS or the Agreement. WT/REG279/1 
 
- 24 - 
 
 
 Improved:   Improved commitments made under th e Agreement compared to those under the GATS. 
New:   New commitments made under the Agreement. 
Not scheduled:  Commitment in the GATS schedule, but not under the Agreement. 
Source:   Philippines' Schedule of  Specific Commitments under the GATS (S/DCS/W/PHL) and Annex under 
 the Agreement. The comparison only concerns market access and national treatment for modes  1-3, and not mode 4. 
3.4.2.9  Singapore 
3.4.2.9.1  Horizontal commitments 3.63.  Horizontal commitments, listed with respect to modes 3 and 4, are in line with Singapore's 
commitments under the GATS, where mode 4 commi tments cover intra-corporate transferees. The 
only difference with the GATS schedule is that a maximum period of stay of two years is specified, which can be extended up to eight years (compared to five years in the GATS). 
3.4.2.9.2  Sector-specific commitments 
3.64.  Under the GATS, Singapore currently has commitments in seven of the 11 sector groups. In 
the Agreement, Singapore has undertaken commitments in ten sectors, with no commitments in construction services, a sector in which Singapore has made commitments under the GATS. 
3.65.  For business services, commitments in the Agreement cover professional services (taxation, 
engineering and landscaping services), as well as  an array of research and development, real 
estate, rental and leasing, and other business services. For most of these full commitments are 
made under modes 1 to 3. Some sectors for which there are GATS commitments do not appear in 
Singapore's schedule under the Agreement (e.g., computer services), while other sub-sectors committed in the Agreement were not scheduled under GATS (e.g., advertising).  
3.66.   With respect to communication servic es, the Agreement contains no commitments on 
postal, courier, and audiovisual services. The latter two sectors are included in Singapore's GATS schedule. Commitments on telecommunication services are generally in line with GATS commitments, but include some specific improv ements. In the Agreement, Singapore has not 
committed to the Reference Paper on Basic Telecommunications.  
3.67.  Singapore has undertaken commitments on distribution, education, environmental, and 
health services, four services sectors for which it has no GATS commitments. On distribution, 
Singapore has taken commitments on commission agents' services, wholesale trade, retailing, and 
franchising. The commitment on retailing is limite d to the distribution of pharmaceutical, medical 
and orthopaedic goods. Commitments under educat ion services cover adult education and short 
term training services. Commitments under envi ronmental services, which are unrestricted under 
mode 3, cover sanitation, cleaning services of exhaust gases, and noise abatement services. In the health sector, commitments cover specific activities such as child-day care services, acute care hospitals and nursing homes, or guidance and counselling services related to children.  
3.68.  Commitments on financial services under the Agreement cover all the sub-sectors listed in 
the GATS Annex on Financial Services. The level of treatment bound is along the lines of GATS commitments, although with some variations, including better guarantees for access under mode 3 
with respect to participation in issuance of securities.  
3.69.  For tourism, commitments under the Agreement go further than the GATS through 
improved commitments on travel agent and tour op erator services, and tourist guide services. The 
GATS commitments on hotels and restaurants are not reproduced in the Agreement. Singapore 
also includes GATS plus commitments on recreational services, including through commitments in sub-sectors for which it has no GATS commitments, such as entertainment services.  
3.70.  Commitments on transport services cover maritime (international passenger and freight 
transport, and auxiliary services), air (sales an d marketing), and road transport services. There 
are no GATS commitments for the latter two se ctors. Singapore's maritime commitments under 
the Agreement go further than under the GATS; fo r instance, its GATS commitments do not cover 
transport of passengers, nor such auxiliary servic es as international towage or classification WT/REG279/1 
 
- 25 - 
 
 
 societies. Singapore's GATS commitments on shi pping agencies and shipping brokerage services 
are not reproduced in the Agreement. 
3.71.  Other new services not covered elsewhere are washing, cleaning and dyeing services; 
hairdressing and other beauty services; funeral, cremation and undertaking services except 
maintenance services of cemeteries, care of graves and graveyards, with no limitations under 
modes 2 and 3. 
Table 3.7 Singapore: comparison between the GATS and the Agreement specific 
commitments in trade in services (excluding mode 4)  
Sectors GATS FTA 
1. BUSINESS SERVICES   
A. Professional services √ Improved 
B. Computer and related services  √ Not scheduled 
C. Research and development √ New sub-sector 
D. Real estate - New 
E. Rental/Leasing serv ices without operators - New 
F. Other √ Improved 
2. COMMUNICATION SERVICES   
A. Postal - - 
B. Courier √ Not scheduled 
C. Telecommunication  √ Improved 
D. Audiovisual √ Not scheduled 
E. Other - - 
3. CONSTRUCTION AND RELATED ENGINEERING 
SERVICES √ Not scheduled 
4. DISTRIBUTION SERVICES - New 
5. EDUCATION SERVICES - New 
6. ENVIRONMENTAL SERVICES - New 
7. FINANCIAL SERVICES   
A. All insurance and insu rance-related services √ Improved 
B. Banking and other financial services √ Improved 
8. HEALTH RELATED AND SOCIAL SERVICES - New 
9. TOURISM AND TRAVEL RELATED SERVICES   
A. Hotels an d restaurants √ Not scheduled 
B. Travel agencies and tour operators √ Improved 
C. Tourist guides √ Improved 
D. Other - - 
10. RECREATIONAL, CULTURAL AND SPORTING 
SERVICES   
A. Entertainment -  New 
B. News agency - - 
C. Libraries, archives, museums and other cultural 
services √  
(libraries) Improved (new sub-sectors 
other than libraries; other sub-
sectors not scheduled under the 
Agreement) 
D. Sporting and other recreational services - New 
E. Other 
[Singapore: It seems that there are no other 
recreational, cultural and sporting services 
committed under the GATS. Please confirm.] - - 
11. TRANSPORT SERVICES   
A. Maritime √ Improved 
Some sub-sectors not scheduled 
B. Internal waterways - - 
C. Air  - New 
D. Space - - 
E. Rail  - - 
F. Road - New 
G. Pipeline - - 
H. Services auxiliary to all modes of transport - - 
I. Other - - 
12. OTHER SERVICES NOT INCLUDED ELSEWHERE - New 
Note: 
√: Commitments in the GATS schedule. 
-: No commitments either under the GATS or the Agreement. WT/REG279/1 
 
- 26 - 
 
 
 Improved: Improved commitments made under the Agreement compared to those under the GATS. 
New: New commitments made under the Agreement. 
Not scheduled: Commitment in the GATS schedule, but not under the Agreement. 
Source:  Singapore' Schedule of Specific Commitme nts under the GATS (S/DCS/W/SGP) and Annex under the 
Agreement. The comparison only concerns market access and national trea tment for modes 1-3, and 
not mode 4. 
3.4.2.10  Thailand 
3.4.2.10.1  Horizontal commitments 3.72.  In the horizontal section of the schedule, Th ailand indicates that, for mode 3, suppliers must 
be juridical persons of another Party that are ow ned and controlled by persons of any Party in 
order to benefit from the commitments made. As in the GATS, Thailand limits foreign equity participation to 49%.  
3.73.  Thailand grants mode 4 commitments for th e following categories of persons and durations: 
business visitors (90 days); persons responsible for establishing a commercial presence (one year); and intra-corporate transferees consisting of executives, managers and specialists (one 
year with three possible extensions). By contrast, its GATS commitments do not contain the 
second category and for intra-corporate transferees the duration of stay is one year with only two 
possible extensions.  
3.4.2.10.2  Sector-specific commitments 
3.74.  Thailand made commitments under the Agreement in professional services, education 
services, tourism and travel related services an d maritime transport. In its GATS schedule, 
Thailand has commitments in these sectors, as well as in computer services, telecommunications, 
audiovisual, construction, distribution, environmental, financial services, recreational, cultural and 
sporting services, and a variety of other business and transport services. 
3.75.  With respect to professional services, co mmitments in accounting, auditing and bookkeeping 
contain no limitations. Those on architectural, engineering and landscaping services indicate 
restrictions on the type of legal entity includ ing limited partnership or registered ordinary 
partnership apart from limited liability company which is the sole legal form permitted in its GATS.  
3.76.  Thailand's commitments on education serv ices cover secondary education, technical and 
vocational, and higher education services, and Chinese language tuition services. Commitments in 
the latter two sub-sectors which are not included in Thailand's GATS commitments, are unbound under modes 1 and 3, indicate no limitations under mode 2 and, as in the other sub-sectors, under 
mode 4 allow foreign natural persons to supply education services so long as they are employed 
by an education institution registered in Thailand. In technical and vocational training there are no limitations in modes 1-3, as for secondary educ ation, except that mode 1 is left unbound.  
3.77.  Under tourism services, commitments are made in hotels, restaurants, and hotel 
management services with no limitations in modes 1-3. In the GATS commitments for these 
sub-sectors, mode 1 was unbound. Commitments on catering services and travel agencies and tour operators are similar to those in the GATS in that mode 1 remains unbound.  
3.78.  Under transport services, commitments are limited to maritime cargo handling services. The 
sector is unbound for mode 1, unrestricted under  mode 2, and under mode 3 the supply of the 
service in the area under the jurisdiction of the Po rt Authority of Thailand is subject to Ministerial 
Regulations under the Port Authority Act, but it is not clear what these restrictions are. Thailand's 
GATS schedule does not contain commitments on cargo handling. WT/REG279/1 
 
- 27 - 
 
 
 Table 3.8 Thailand: comparison between the GATS and the Agreement specific 
commitments in trade in services (excluding mode 4)  
Sectors GATS  FTA 
1. BUSINESS SERVICES   
A. Professional services √ Improved. One sub-sector not scheduled 
B. Computer and related services  √ Not scheduled 
C. Research and development - - 
D. Real estate - - 
E. Rental/Leasing serv ices without operators √ Not scheduled 
F. Other √ Not scheduled 
2. COMMUNICATION SERVICES   
A. Postal - - 
B. Courier - - 
C. Telecommunication  √ Not scheduled 
 
D. Audiovisual √ Not scheduled 
E. Other - - 
3. CONSTRUCTION AND RELATED ENGINEERING 
SERVICES √ Not scheduled 
4. DISTRIBUTION SERVICES √ Not scheduled 
5. EDUCATION SERVICES √ Improved. Some sub-sectors not scheduled 
6. ENVIRONMENTAL SERVICES √ Not scheduled 
7. FINANCIAL SERVICES   
A. All insurance and insu rance-related services √ Not scheduled 
B. Banking and other financial services √ Not scheduled 
8. HEALTH RELATED AND SOCIAL SERVICES - - 
9. TOURISM AND TRAVEL RELATED SERVICES   
A. Hotels an d restaurants √ Improved 
B. Travel agencies and tour operators √ Same 
C. Tourist guides - - 
D. Other √ Improved 
10. RECREATIONAL, CULTURAL AND SPORTING 
SERVICES √ Not scheduled 
11. TRANSPORT SERVICES   
A. Maritime √ New sub-sector.  
Some sub-sectors not scheduled. 
B. Internal waterways - - 
C. Air  √ Not scheduled 
D. Space - - 
E. Rail  √ Not scheduled 
F. Road √ Not scheduled 
G. Pipeline - - 
H. Services auxiliary to all modes of transport √ Not scheduled 
I. Other - - 
12. OTHER SERVICES NOT INCLUDED 
ELSEWHERE - - 
Note: 
√: Commitments in the GATS schedule. 
-: No commitments either under the GATS or the Agreement. Improved: Improved commitments made under the Agreement compared to those under the GATS. 
New: New commitments made under the Agreement. Not scheduled: Commitment in the GATS schedule, but not under the Agreement. 
Same: Same commitments made under the Agreement as those under the GATS. 
Source:  Thailand' Schedule of Specific Commitments under the GATS (S/DCS/W/THA/Rev.1) and Annex 
under the Agreement. The comparison only concer ns market access and national treatment for 
modes 1-3, and not mode 4. 
3.4.2.11  Viet Nam 
3.4.2.11.1  Horizontal commitments 
3.79.  In the horizontal section, Viet Nam has inscribed certain restrictions under mode 3, 
including inter alia  unbound for the establishment of a branch. Horizontal commitments under 
mode 4 cover intra-corporate transferees, service sales persons, persons responsible for setting up 
a commercial presence, contractual service suppliers, and other personnel. WT/REG279/1 
 
- 28 - 
 
 
 3.4.2.11.2  Sector-specific commitments 
3.80.  Viet Nam's schedule under the Agreement reproduces its GATS schedule.4 It includes 
specific commitments in the 11 sector groups of the Services Sectoral Classification List, and covers about 100 of the 160 sub-sectors identified in the list. 
3.81.  Under business services, Viet Nam has undertaken commitments in most professional 
services (legal, accounting, auditing and book keeping, taxation, architecture, engineering, 
integrated engineering, urban planning and urban landscape architecture, and veterinary 
services). For these services, modes 1 and 2 are unrestricted (except an authentication 
requirement in mode 1 for national treatment for urban planning and landscape architectural 
services), and mode 3 is in some cases subject to market access limitations that will be phased out 
two years after the entry into force of the Agr eement. Other commitments under business services 
include computer and related services, research and development services, rental/leasing services 
and 'other business services'. 
3.82.  The schedule also includes commitments in courier services, with modes 1 and 2 
unrestricted, and mode 3 to be fully committed after five years. Viet Nam's commitments cover 
both basic and value-added telecommunication services: under modes 1 and 2, services must be offered pursuant to commercial arrangements with an entity established in Viet Nam and licensed 
to provide international telecommunication services; mode 3 is subject to certain restrictions on 
foreign investment (e.g. limitations on legal form and foreign equity participation). As regards audiovisual services, Viet Nam undertook commitments on motion picture production, distribution, projection services for which mode 1 is unbound, mode 2 is unrestricted (except motion picture 
production which is unbound), and mode 3 subject to limitations on legal form and foreign equity 
participation. Viet Nam's commitments also include sound recordings, for which modes 1 and 3 are unbound for both market access and national treatment. 
3.83.  Viet Nam has also made commitments in all sub-sectors under construction and distribution 
services. Mode 2 is unrestricted, while mode 3 provides for phased-in liberalization. Commitments under education services apply to: technical, natural sciences and technology, business 
administration and business studies, economics, accounting, international law and language 
training fields. Commitments in environmental services cover sewage, refuse disposal and other services.  
3.84.  Commitments in financial services cover all the activities identified in the GATS Annex on 
Financial Services. For insurance services, foreign branches providing non-life insurance will be 
allowed to establish five years after the entry into force of the Agreement subject to prudential regulations. For banking services, mode 1 is unbound except for the provision and transfer of 
financial information and advisory, intermediation and other auxiliary financial services; mode 3 is 
subject to a number of market access and national treatment restrictions (e.g. limitations on the legal form of foreign financial institutions, on foreign bank branches' acceptance of deposits in 
Vietnamese currency, on foreign equity, business sc ope of foreign financial institutions, etc.) With 
respect to securities, wholly-owned foreign suppliers, as well as foreign branches (for asset management, settlement and clearing services, provision and transfer of financial information, and advisory, intermediation and other auxiliary services), will be allowed five years after the entry 
into force of the Agreement. 
3.85.  Viet Nam's commitments in health services (hospital, medical and dental services) are 
unrestricted for modes 1 and 2 and subject to limi tations on the legal form and minimum capital 
requirements for foreign service suppliers under mode 3. In tourism services (hotel and 
restaurant, travel agency and tour operator services), Viet Nam has made full commitments in modes 1 and 2 and inscribed a number of limitations on commercial presence. Under recreational 
services, commitments cover entertainment services and electronic games.  
3.86.  Under transport services, Viet Nam's co mmitments cover all modes of transport (except 
space and pipeline transport) and auxiliary servic es, for which mode 2 unrestricted, and mode 3 
                                               
4 Viet Nam acceded to the WTO on 11 January 2007, du ring the same period as the Agreement entered 
into force. WT/REG279/1 
 
- 29 - 
 
 
 subject to a number of market access limitations, in particular as regards legal form and foreign 
equity participation. 
3.87.  Viet Nam's schedule includes a list of exemptions that appears to be similar to its MFN 
exemptions, even though the Agreement contains no MFN obligations. These exemptions relate to 
bilateral investment treaties, audiovisual services, an d maritime transport. A footnote to the list of 
MFN exemptions indicates that the measures "shall be exempted from all obligations and treatment of specific commitments under the Agreement".  
3.5  Regulatory Provisions 
3.5.1  Domestic regulation 3.88.  Article 5 on domestic regulation is generall y based on Article VI of the GATS. It authorizes 
the Parties to ensure to adopt a reasonable, objective and impartial manner in all measures 
affecting trade in services where commitments are undertaken. Compared to Article VI of the 
GATS, the Article further specifies requirements for the Parties' competent authorities to fulfil, such as giving the applicant an opportunity to resubmit an application when the original application is 
terminated or denied (Article 5.3.(c)). The Partie s have committed to jointly review the results of 
the negotiations under Article VI.4 of the GATS and incorporating those results into the Agreement (Article 5.4). 
3.5.2  Recognition 
3.89.  Article 6 on recognition is based on Arti cle VII of the GATS. It authorizes a Party to 
recognize the education or experience obtained, re quirements met, or licenses or certifications 
granted, in another Party. Recognition may be achieved through harmonization or based on an 
agreement or arrangement between the Parties or the relevant competent bodies (there is no 
indication of such relevant competent bodies in  t h e  G A T S ) ,  o r  m a y  b e  a c c o r d e d  a u t o n o m o u s l y  
(Article 6.1). Two or more Parties, or their relevant competent bodies, may negotiate recognition 
of qualification requirements and procedures, licen sing and/or registration procedures for their 
respective standards or criteria for the authorization, licensing or certification of service suppliers (Article 6.2). According to the Parties no recognition agreements have been signed to date.  
3.5.3  Subsidies 
3.90.  While excluding subsidies or grants by a Party, or any conditions attached to the receipt or 
continued receipt of such subsidies or grants fr om the scope of the Agreement (see paragraph 15), 
Article 14 allows a Party to request consultations if such subsidies or grants significantly affect 
trade in services in which commitments were taken under the Agreement. To reach an amicable 
resolution of the matter, the Parties shall provide information on subsidies related to trade in services in which commitments were made to any requesting Party (Article 14.2.(a)); and review 
the subsidies when relevant disciplines are developed by the WTO (Article 14.2.(b)).  
3.5.4  Safeguards 3.91.  Following the conclusion of the WTO negotiations on GATS Article X (emergency safeguard 
measures), the Parties shall discuss appropriate amendments to incorporate the results of the 
WTO negotiations into the Agreement (Article 9.1) . If the implementation of the Agreement causes 
substantial adverse impacts on a service sector of a Party before the conclusion of the WTO negotiations, the affected Party may request consultations with the other Party to discuss 
"any countervailing measure" concerning the affected sector . Any measure adopted shall be 
mutually agreed by the Parties concerned, and th ey shall give sympathetic consideration to the 
Party seeking the measure (Article 9.2). 
3.92.  A Party shall not apply restrictions on international transfers and payments for current 
transactions relating to its specific commitments (Article 10.1). In addition, nothing in the Agreement shall affect the rights and obligations of any Party that is a member of the International 
Monetary Fund under this provision (Article 10.2). However, If a Party has serious balance of 
payments and external financial difficulties or threat thereof, it may adopt or maintain restrictions WT/REG279/1 
 
- 30 - 
 
 
 on trade in services in accordance with GATS Article XII (restrictions to safeguard the balance of 
payments) (Article 11). 
3.5.5  Monopolies and exclusive service suppliers 3.93.  The Agreement has a provision governing monopolies and exclusive service suppliers, which 
essentially reproduces Articles VIII 1-3, and 5 of the GATS (Article 7). For example, if a Party has 
reason to believe that another Party's monopoly service supplier is acting contrary to Article 7, the Party may request the other Party that has established, maintained or authorized such monopolies 
or exclusive service suppliers to provide specific information regarding the operation at issue 
(Article 7.3). No such cases have been reported according to the Parties. 
3.94.  The Parties also recognize that certain busi ness practices of services suppliers may restrain 
competition and therefore restrict trade in services  (Article 8.1). If a service supplier of a Party 
("affecting Party") acts in a manner which restrains competition and restricts trade in services with 
another Party ("affected Party"), then the affected Party can request consultations with the affecting Party. With full and sympathetic consideration the affecting Party shall cooperate in 
supplying publicly available information on the matter (Article 8.2). There have been no such cases 
according to the Parties. 
3.6  Sector-Specific Provisions 
3.95.  No sector-specific provisions, per se , are found under the Agreement. However, to facilitate 
greater participation by the newer ASEAN member states, i.e., Cambodia, Lao PDR, Myanmar, and Viet Nm, the Parties recognize the necessity to improve distribution channels and information 
networks (Article 17.(b)). 
3.96.  The GATS Annexes on Air Transport Services, Financial Services, and Telecommunications 
shall, mutatis mutandis , apply to the Agreement (Article 28.1). 
4  GENERAL PROVISIONS OF THE AGREEMENT 
4.1.1  Transparency 
4.1.  Article III of the GATS is, mutatis mutandis , incorporated into and forms an integral part of 
the Agreement (Article 3). There is no agreed mechanism for the Parties to notify changes in their 
laws under the Agreement. The Parties shall not be required to provide confidential information 
that would impede law enforcement or would prejudice the legitimate commercial interests of particular public or private enterprises, or be contrary to the public interest (Article 4).  
4.1.2  Exceptions 
4.2.  General exceptions under the Agreement are mirrored in Article XIV of the GATS (Article 12). 
In addition, the Parties maintain security exceptions in line with Article XIV bis of the GATS. There 
are new features enabling the Parties to maintain security exceptions relating to trafficking of 
arms, ammunition and implements of war and other goods (Article 13.(b).(ii)); and to protect 
critical communications infrastructure from deliberate attempts to disable or degrade it (Article 13.(b).(iii)). 
4.1.3  Accession and termination 
4.3.  There are no accession or termin ation provisions in the Agreement.  
4.1.4  Institutional framework 4.4.  The Parties shall each designate a contac t point for communications between them on any 
matter covered by the Agreement. Further, they shall identify an office or o fficial for facilitating 
communications upon the request of any Party (Article 26). WT/REG279/1 
 
- 31 - 
 
 
 4.5.  The Parties shall establish a review mechan ism under the Agreement so that their Ministers 
or designated representatives can review the Agreement with a view to further liberalization as 
well as development of disciplines or any other relevant matters, biennially or otherwise as appropriate (Article 27). 
4.6.  Amendments to the Agreement can be made through written agreement and will come into 
force on a date or dates as may be ag reed to by the Parties (Article 29). 
4.1.5  Dispute settlement 
4.7.  The Agreement on Dispute Settlement Mech anism of the Framework Agreement (hereinafter, 
"Dispute Settlement Agreement") applies to the Ag reement (Article 30). It permits the Parties to 
utilize dispute settlement procedures under any other treaty to which the Parties are signatories (Article 2.5 of the Dispute Settlement Agreement) . Once a dispute settlement procedure has been 
initiated, the forum selected by the complaining Party shall be exclusively used for that dispute 
(Article 2.6 of the Dispute Settlement Agreement). However, the forum exclusion clause will not apply where the Parties agree to use more than on e forum in a particular dispute (Article 2.7 of 
the Dispute Settlement Agreement). 
4.8.  A Party may request consultations in writing with the other Party if it considers that any 
benefit accruing to itself directly or indirectly under the Agreement is being nullified or impaired; 
or the attainment of any objective of the Agreement is being impeded, as the other Party has 
failed to carry out its obligations under the Ag reement (Article 4.1 of the Dispute Settlement 
Agreement). The complaining Party's request shall be sent to the Party complained against, as well as to all other Parties (Article 4.2 of the Dispute Settlement Agreement). 
4.9.  If a Party other than the Parties to a dispute considers that it has a substantial interest in the 
consultations, it (hereinafter, "third-Party") may notify the Parties to the dispute of its interest in joining the consultations within ten days from the date of the defendant's receipt of the request by 
the Party complained against . Subject to the agreement of the Party complained against, the 
third-Party shall join in the consultations. If the Party complained against does not agree with the third-Party's involvement in the consultations, the third-Party may request separate consultations 
(Article 4.6 of the Dispute Settlement Agreement).  
4.10.  If the matter is not resolved through consultations, the complaining Party may request in 
writing the appointment of an arbitral tribunal (A rticle 6.1 of the Dispute Settlement Agreement). 
Some provisions are generally based on Arti cle 9 of the WTO Understanding on Rules and 
Procedures Governing the Settlement of Disput es (procedures for multiple complaints). 
4.11.  The panel is composed of three memb ers (Article 7.1 of the Dispute Settlement 
Agreement); two appointed by the Parties to the di spute and one, the chair of the panel, agreed 
by the Parties. If there is no agreement on the se lection of the chair, the Director-General of the 
WTO shall designate the chair. If one of the Parties to the dispute is a WTO non-member, the President of the International Court of Justice sh all appoint the chair (Article 7.3 of the Dispute 
Settlement Agreement). The arbitral tribunal may prop ose to the Parties to the dispute to amicably 
settle the dispute at any stage of the proceedings (Article 11.3 of the Dispute Settlement Agreement). 
4.12.  When the Party complained against fails to comply with the compensation recommendations 
(which are voluntary) of the arbitral tribunal within  the reasonable period of time (Article 13.1 of 
the Dispute Settlement Agreement), it will hold negotiations with the complaining Party to find compensation that is mutually satisfactory (Article 13.2 of the Dispute Settlement Agreement). If 
an agreement cannot be reached, the complaining Party may request the original arbitral tribunal 
to determine the appropriate level of any suspension of concessions or benefits to the Party complained against (Article 13.3 of the Dispute Settlement Agreement). The conditions for 
suspensions listed in Article 13.5 of the Dispute Settlement Agreement are similar to Article 22 of 
the WTO DSU in that the suspension should be first sought in the same sector(s) affected, following which benefits in other sectors may be suspended if the complaining Party considers suspension in the same sector is not practicable or effective. However, compared to Article 
22.3.(b)-(c) of the WTO DSU, th e Dispute Settlement Agreement does not specify whether the 
other sectors may be under the same Agreement or another agreement covered by the Framework WT/REG279/1 
 
- 32 - 
 
 
 Agreement. Compensation or the suspension of co ncessions or benefits are not preferred to full 
implementation of a recommendation by the arbitral tribunal to bring a measure into conformity 
with the Agreement (Article 13.1 of the Dispute Settlement Agreement). 
4.13.  The major steps to be taken in the dispute settlement process are described below. The 
Parties may proceed with conciliation or mediation while an arbitral tribunal is underway if the 
Parties to the dispute so agree (Article 5 of the Dispute Settlement Agreement). 
Chart 4.1 Synopsis of Dispute Settlement Agreement 
20 days or 30 days (Art.7.2) 
10 days (Art.9.9) not more than 30 (10 for urgency) 
days incl. 7 days above 
30 days (max.45) 
(Art.12.2) 
20 days 
(Art.97.2) 20 days 
(Art.8.2) 15 days 
(Art.9.3) 60 days (max.75) 
(Art.12.3) (a)  
within 7 days (Art.4.3) Written request for 
consultations (Art. 4.1) 
Consultations  
(Art.4.3) 
Written request for the 
appointment of arbitral 
tribunal (Art.6.1)  
Appointment of arbitrators 
by each Party/Composition of 
arbitral tribunal (Art.7.2)   
Issuance of arbitral 
tribunal's draft report to the 
Parties (Art.9.7)   
Issuance of arbitral 
tribunal's final report  
(Art 9.8)  Publication of the final arbitral tribunal 
report (Art.9.9)
Agreement on the reasonable 
period of time to solve  
the dispute 
(Art.12.2) 
Failure to agree on the 
reasonable period of time – 
refer to the original arbitral 
tribunal (Art.12.2) 
Negotiations on mutually 
acceptable compensation 
(Art.13.2)
Opportunity for the 
Parties to review the 
draft (Art.9.7) No indication on time limit 
120 days  
(60 days for urgency) 
(max.180) (Art.9.8) Agreement on the 
existence or consistency 
with the measure taken 
with the 
recommendations of the 
arbitral tribunal 
(Art.12.3 )
Failure to agree – refer to 
the original arbitral 
tribunal 
(Art.12.3) 
20 days (Art.13.3) 
No agreement 
(Art.13.3) 
Request by the 
complaining Party to 
the original arbitral 
tribunal to determine 
the appropriate level of 
any suspension of 
concessions or benefits 
to the Party complained 
against 
(Art.13.3 )Issuance of 
arbitral tribunal's 
report 
(Art.13.3) Response to the written 
request (Art.4.3) 
Determination of the 
reasonable period of time 
by the arbitral tribunal 
(Art.12.2) 30 (10 for urgency) days   
Terms of 
reference  
(Art.8.2)   Fix 
timetable 
(Art.9.3)   30 days 
(Art.12.2) 
Determination by the arbitral 
tribunal (Art.12.3) 
30 days 
(max.45) 
(Art.13.3) if inconsistent 
 
 WT/REG279/1 
 
- 33 - 
 
 
 4.1.6  Relationship with other ag reements concluded by the Parties 
4.14.  Under Article 15 the Parties agree and reaffirm their commitments under the WTO 
Agreements that are relevant and applicable to tr ade in services, subject to any future review. In 
addition, the Agreement or any action taken under it shall not affect or nullify the rights and 
obligations of a Party under existing agreements to which it is a party (Article 28.3). 
Table 4.1 ASEAN and China: Participation in other RTAs (notified and non-notified in 
force), as of 26 February 2015 
RTA Name  
 Date of 
entry into 
force Type of 
Agreement GATT/WTO Notification 
Year WTO Legal Cover 
ASEAN Member States - Collectively 
ASEAN - Republic of Korea 01-Jan-10 
01-May-09 Goods 
Services 2010 Enabling Clause, GATT Art. 
XXIV & GATS Art. V 
ASEAN - Australia - New Zealand 01-Jan-10 Goods & Services 2010 GATT Art. XXIV & GATS Art. V 
ASEAN - India 01-Jan-10 Goods 2010 Enabling Clause 
ASEAN - Japan 01-Dec-08 Goods 2009 GATT Art. XXIV 
ASEAN - China 01-Jan-05 Goods 2005 Enabling Clause 
ASEAN Free Trade Area (AFTA) 28-Jan-92 Goods 1992 Enabling Clause 
Individual ASEAN Member States 
Singapore - Chinese Taipei 19-Apr-14 Goods & Se rvices 2014 GATT Art. XXIV & GATS Art. V 
Costa Rica - Singapore 01-Jul-13 Goods & Services 2013 GATT Art. XXIV & GATS Art. V 
Malaysia - Australia 01-Jan-13 Goods & Servic es 2013 GATT Art. XXIV & GATS Art. V 
Chile - Malaysia 25-Feb-12 Goods 2013 GATT Art. XXIV 
India - Malaysia 01-Jul-11 Goods & Services 2011 Enabling Clause & GATS Art. V 
New Zealand - Malaysia 01-Aug-10 Goods & Services 2012 GATT Art. XXIV & GATS Art. V 
Japan - Viet Nam 01-Oct-09 Goods & Services 2009 GATT Art. XXIV & GATS Art. V 
Peru - Singapore 01-Aug-09 Goods & Services 2009 GATT Art. XXIV & GATS Art. V 
China - Singapore 01-Jan-09 Goods & Services 2009 GATT Art. XXIV & GATS Art. V 
Japan - Philippines 11-Dec-08 Goods & Services 2008 GATT Art. XXIV & GATS Art. V 
Brunei Darussalam - Japan 31-Jul-08 Goods & Services 2008 GATT Art. XXIV & GATS Art. V 
Japan - Indonesia 01-Jul-08 Goods & Services 2008 GATT Art. XXIV & GATS Art. V 
Pakistan - Malaysia 01-Jan-08 Goods & Servic es 2008 Enabling Clause & GATS Art. V 
Japan - Thailand 01-Nov-07 Goods & Services 2007 GATT Art. XXIV & GATS Art. V 
Panama - Singapore 24-Jul-06 Goods & Services 2007 GATT Art. XXIV & GATS Art. V 
Japan - Malaysia 13-Jul-06 Goods & Services 2006 GATT Art. XXIV & GATS Art. V 
Trans-Pacific Strategic Economic 
Partnershipa 28-May-06 Goods & Services 2007 GATT Art. XXIV & GATS Art. V 
Republic of Korea - Singapore 02-Mar-06 Goods & Services 2006 GATT Art. XXIV & GATS Art. V 
Jordan - Singapore 22-Aug-05 Goods & Servic es 2006 GATT Art. XXIV & GATS Art. V 
India - Singapore 01-Aug-05 Goods & Services 2007 GATT Art. XXIV & GATS Art. V 
Thailand - New Zealand 01-Jul-05 Goods & Services 2005 GATT Art. XXIV & GATS Art. V 
Thailand - Australia 01-Jan-05 Goods & Services 2004 GATT Art. XXIV & GATS Art. V 
United States - Singapore 01-Jan-04 Goods & Se rvices 2003 GATT Art. XXIV & GATS Art. V 
Singapore - Australia 28-Jul-03 Goods & Services 2003 GATT Art. XXIV & GATS Art. V 
EFTA - Singapore 01-Jan-03 Goods & Services 2003 GATT Art. XXIV & GATS Art. V 
Japan - Singapore 30-Nov-02 Goods & Services 2002 GATT Art. XXIV & GATS Art. V 
Asia Pacific Trade Agreement 
(APTA) - Accession of China 01-Jan-02 Goods 2004 Enabling Clause 
New Zealand - Singapore 01-Jan-01 Goods & Services 2001 GATT Art. XXIV & GATS Art. V 
Lao People's Democratic Republic 
- Thailand 20-Jun-91 Goods 1991 Enabling Clause 
Global System of Trade 
Preferences among Developing 
Countries (GSTP)b 19-Apr-89 Goods 1989 Enabling Clause 
Asia Pacific Trade Agreement 
(APTA)c 17-Jun-76 Goods 1976 Enabling Clause 
Protocol on Trade Negotiations 11-Feb-73 Goods 1971 Enabling Clause WT/REG279/1 
 
- 34 - 
 
 
 RTA Name  
 Date of 
entry into 
force Type of 
Agreement GATT/WTO Notification 
Year WTO Legal Cover 
(PTN)d 
Chile - Viet Nam 01-Feb-14 Goods & Services Not notified 
Singapore – Gulf Cooperation 
Council (GCC) 01-Sep-13 Goods & Services Not notified 
Thailand - Peru  31-Dec-11 Goods Not notified 
India - Thailand Early Harvest  01-Sep-04 Goods Not notified 
CHINA 
Iceland - China 01-Jul-14 Goods & Services 2014 GATT Art. XXIV & GATS Art. V 
Switzerland - China 01-Jul-14 Goods & Servic es 2014 GATT Art. XXIV & GATS Art. V 
China - Costa Rica 01-Aug-11 Goods & Services 2012 GATT Art. XXIV & GATS Art. V 
Peru - China 01-Mar-10 Goods & Services 2010 GATT Art. XXIV & GATS Art. V 
China - Singapore 01-Jan-09 Goods & Services 2009 GATT Art. XXIV & GATS Art. V 
China - New Zealand 01-Oct-08 Goods & Servic es 2009 GATT Art. XXIV & GATS Art. V 
Pakistan - China 01-Jul-07 
10-Oct-09 Goods  
Services 2008 
2010 GATT Art. XXIV 
GATS Art. V 
Chile - China 01-Oct-06 
01-Aug-10 Goods  
Services 2007 
2010 GATT Art. XXIV  
GATS Art. V 
ASEAN - China 01-Jan-05 Goods 1905 Enabling Clause 
China - Macao, China 17-Oct-03 Goods & Servic es 2003 GATT Art. XXIV & GATS Art. V 
China - Hong Kong, China 29-Jun-03 Goods & Services 2003 GATT Art. XXIV & GATS Art. V 
Asia Pacific Trade Agreement 
(APTA) - Accession of China 01-Jan-02 Goods 2004 Enabling Clause 
Asia Pacific Trade Agreement 
(APTA) 17-Jun-76 Goods 1976 Enabling Clause 
The Cross-Straits Economic 
Cooperation Framework Agreement (ECFA) 12-Sep-10 Goods & Services Not notified 
a Members are: Brunei Darussalam, Ch ile, New Zealand and Singapore. 
b ASEAN States which are parties to the GSTP: Indonesia, Malaysia, Myanmar, Philippines, Singapore, 
Thailand, Viet Nam.  
c ASEAN State which is a party to APTA : Lao People's Democratic Republic. 
d  ASEAN State which is a party to the PTN: Philippines. 
Source: WTO Secretariat. 
4.1.7  Cooperation 
4.15.  The Parties shall strengthen cooperation in services sectors including those which are not 
covered by existing cooperation arrangements. According to the Parties this has not occurred to 
date. They shall mutually agree on the sectors for cooperation including the programmes to improve domestic capacities, efficiencies and competitiveness of such sectors (Article 16).  
__________