RESTRICTED  
  
S/CSS/W/118/Add.2  
25 May 2016  
(16-2832)  Page: 1/7  
Council for Trade in Services  
Special Session    
 
  ECONOMIC NEEDS TESTS 
NOTE BY THE SECRETARIAT1 
Addendum 
The Committee on Specific Commitments, at its meeting on 17 March 2016, requested the 
Secretariat to update its previous Notes on economic needs tests (ENTs), contained in documents 
S/CSS/W/118 and S/CSS/W/118/Add.1, dated respectively 30 November 2001 and 16 April 2010.  It was agreed that the update should examine on ly the schedules of those Members that acceded 
to the WTO since the issuance of the last addendum.  This Note has been prepared in response to 
that request as the second addendum to document S/CSS/W/118.  A list of ENTs scheduled by the 
concerned Members is found below. 
I. GENERAL REMARKS 
1.1.  Out of the 11 Members that acceded to the WTO after 16 April 2010, five have inscribed a 
total of 18 ENTs in their schedules as market access  limitations.  Of these entries, 14 are inscribed 
in the sectoral part of the schedule under Mode 3, and four are in the horizontal section under 
Mode 4.  The new entries bring the total number of ENTs inscribed in schedules to 279 (instead of 
261 in 2010) by 99 Members (94 in 2010).  Of the 279 entries, 54 are inscribed in the horizontal 
section (with 43 under Mode 4, 10 under Mode 3 and 1 under Mode 1), while 225 tests are sector-specific with the vast majority (167) scheduled under Mode 3. 
1.2.  As in the previous Notes, this Note in cludes also borderline cases where entries do not 
contain the terms of "economic needs tests", but are "ENT-like". These entries are included for reasons of transparency and to illustrate their ambiguities.  
1.3.  While most new entries provide some indications as to the criteria on which the test is based, 
the elements of the criteria are diverse. Some relate to urban planning, local economic level or development programme; some refer to the availability of local labour or the availability to the 
local population of the services concerned; some others are about the impacts of new entrants (for 
example on employment, infrastructure, or public  convenience). There remain some entries where 
the application criteria have yet to be specified.  
 
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1 This document has been prepared under the Secret ariat's own responsibility and is without prejudice 
to the positions of Members or to thei r rights and obligations under the WTO.  
  S/CSS/W/118/Add.2  
 
- 2 -  
Schedule Mode Sector Economic N eeds Test and criteria mentioned 
 
Lao PDR 4 I.  HORIZONTAL 
COMMITMENTS  
 Movement of natural 
persons providing services 
 Specialists: Natural persons within an organization who possess knowledge at an advanced 
level of continued expertise and who possess pr oprietary knowledge of the organization's 
services, research equipment, techniques, or management and where there are shortages of Lao PDR nationals with requisite skills.  
3 4.  DISTRIBUTION 
SERVICES 
B. Wholesale trade services 
(part of CPC 61111, 
6113, 6121);  
C. Retailing services 
(part of CPC 61112, 6113, 6121);  
D. Franchising 
(part of CPC 8929) 
 Unbound for 7 years after the date of accession. Thereafter, foreign equity participation 
limited to 49%. Subject to meeting economic need tests. The main criteria include the 
number of existing service suppliers in a particular geographical area, the stability of market and geographical scale 
Kazakhstan 4 I.  HORIZONTAL 
COMMITMENTS  
 Entry and temporary 
stay of natural persons horizontal Employment of Intra-corporate transferees (ICTs) as managers and specialists shall meet 
the requirements of economic needs test. Work  permit is issued only after search of 
appropriate candidates in the database of the competent authority and publication of 
vacancy announcement in mass – media is completed.  These procedures shall take no longer than one month.  Permission for intr a-corporate transferee shall be granted after 
these procedures have been completed unless the company has identified a local candidate 
who meets its needs. 
Upon expiration of a 5-year period after Kazakhstan's accession to the WTO, economic needs test shall not be applied. All other requirements, laws and regulations regarding entry, stay 
and work shall continue to apply. 
 
3 1. BUSINESS SERVICES 
A. Professional Services  (e) Engineering Services  
(CPC 8672)  
 (f) Integrated 
Engineering Services  (CPC 8673) 
 Commercial presence is allowed only in the form of a juridical person of Kazakhstan. For 
both domestic and foreign service suppliers, authorisation from local authorities is required, which is issued based on the criteria related to urban planning and protection of historical 
and natural sites.  
  S/CSS/W/118/Add.2  
 
- 3 - Schedule Mode Sector Economic N eeds Test and criteria mentioned 
 
3 4. DISTRIBUTION 
SERVICES   
C. Retailing services 
(CPC 6111, 61112, 6113, 6121, 631, 61300* only in part of 
fuel, lubricating oil and 
grease for auto vehicles, 632* except for 63211 
with respect to 
pharmaceutical, para-pharmaceutical and 
medical goods.   
 Commercial presence is allowed only in the form of a juridical person of Kazakhstan. 
Authorization of local authorities on a national treatment basis is required.  Main criteria: 
population density, geographic spread, urban planning and protection of historical sites and 
natural parks. 
Russian 
Federation  3 1. BUSINESS SERVICES 
A. Professional Services 
(h) Medical and dental 
services  
 (CPC 93121*, 93122*, 
93123*); 
(j) Services provided by 
midwives, nurses, 
physiotherapists and paramedical personnel  (CPC 93191*) 
Except: 
- coercive medical 
treatment of people who 
suffer mental disorders 
and have committed acts endangering public 
safety; 
-  treatment of drug 
addicts; 
- certain types of 
examinations to 
authorise payment of State allowances To provide medical and dental services it is necessary to obtain an authorisation for the 
supply of specified services in a specified territory.  The authorization is issued on non-
discriminatory basis.  The following considerations are taken as criteria for issuance of such an authorisation: 
- uniform and balanced availability to the population of services of particular type,  
including services of medical specialists in specific areas; 
- ensuring equal availability to the population of medical services irrespective of 
the place and conditions of habitation, including hi-tech, specialised and costly 
types of medical aid; 
- ensuring establishment of health care or ganisations, facility standards of which 
include "heavy equipment"; establishment of such medical organisations is based 
on a "substitution" principle aimed at guaranteeing the provision of services by 
such organizations to the population throughout the whole populated territory of the country; 
- adjustment of the number of suppliers of medical and dental services to the 
standards of availability to the populati on of medical and dental services for 
which the costs are compensated with State funds; 
- maintenance of the minimum required level of availability of health care to the 
population to the extent of the types and volumes guaranteed by the State.  
  S/CSS/W/118/Add.2  
 
- 4 - Schedule Mode Sector Economic N eeds Test and criteria mentioned 
 
(autopsy, diagnosis of persistent or temporary 
disability), to establish 
legal liability (forensic pathology, forensic psychiatry, army 
medicine) 
 
3 2. COMMUNICATION 
SERVICES   
D. Audiovisual services  
(b) Motion picture or video 
tape projection services (CPC 96121* and CPC 96122*) by Cinema 
theatre owners only, 
excluding projection services for government 
endorsed film festivals 
and other cultural events; 
 Authorisation from local authorities on a non-discriminatory basis is required, taking into 
account city development planning and programm es of social and economic development in 
their jurisdiction. 
 3 4. DISTRIBUTION 
SERVICES   
C. Retailing services  
 (CPC 631*; CPC 632*, 
including perfumes and 
cosmetics; CPC 6111*; 
CPC 6113*; CPC 6121*; CPC 6130* only with 
respect to automobile 
fuel), except distribution of pharmaceuticals, medical articles. 
(Original footnote 
omitted) 
 Authorization from local authorities is required and shall be issued on a non-discriminatory 
basis taking into account the city-development planning and programmes of social and 
economic development in their jurisdiction.  
  S/CSS/W/118/Add.2  
 
- 5 - Schedule Mode Sector Economic N eeds Test and criteria mentioned 
 
3 4. DISTRIBUTION 
SERVICES   
 Commission agents' 
services, wholesale trade services, retailing services with respect to 
the pharmaceuticals and 
medical articles 
 (CPC 62117*, CPC 
62251, CPC 62252, CPC 
63211) 
 Authorisation is required for supply of services in a particular territory issued on a non-
discriminatory basis with respect to foreign services suppliers.  The following considerations 
are taken as criteria for issuance of such an authorisation:  
-  need for maintenance of the minimu m required level of availability of 
pharmaceuticals and medical articles to the population qualifying for the package provided under the system of State guarantees of free health care for citizens of 
the Russian Federation and being subject to compensation with State funds, and 
maintenance of the respective number of suppliers of wholesale and retail services in pharmaceuticals and medical articles corresponding to the mentioned 
level; 
-  ensuring uniform and balanced availabili ty to the entire  population of medical 
resources providing for out-patient and hospital treatment irrespective of the 
place of habitation and living conditions; 
-  ensuring establishment of wholesale organisations trading in pharmaceuticals and 
medical articles, operating cross-subjects of the Russian Federation; establishment of such medical organisations is based on a "substitution" principle 
aimed at guaranteeing the provision of services by such organizations to the 
population throughout the whole populated territory of the country. 
 
(Original footnote omitted) 
 
 3 5. EDUCATIONAL 
SERVICES 
A. Primary education 
services (CPC 921*); 
B.  Secondary education 
services (CPC 922*) 
 Authorisation may be required with respect to the acquisition of control of a juridical person 
of the Russian Federation related to the cultural heritage of the Russian Federation and/or being a cultural property of the peoples of the Russian Federation.  
(Original footnote omitted) 
3 7. FINANCIAL 
SERVICES 
B. Banking and other 
financial services 
  Banking services 
 For the purposes of control over the quota of foreign participation in the bank system of the 
Russian Federation prior authorisation from the Central Bank is required: 
-  to establish a credit organisation with foreign participation, including subsidiaries 
and dependent companies; 
-  to increase the charter capital of a credit organisation with non-resident (non-
residents) funds; 
-  to alienate shares (interest) of credit organisation in favour of non-residents. 
  
  S/CSS/W/118/Add.2  
 
- 6 - Schedule Mode Sector Economic N eeds Test and criteria mentioned 
 
3 7. FINANCIAL 
SERVICES 
B. Banking and other 
financial services 
  Financial services other 
than banking services For the purposes of control over the quota of total foreign participation in certain segments 
on securities market as well as observance of norms of foreign participation with respect to 
certain types of professional participants of securities market all the actions leading to an 
increase in the share of votes held by non-residents and their affiliates or an increase of the aggregate share of non-residents and their affiliates in the charter capital of a professional participant of the securities market engaged in  keeping registers and depository operations 
under transactions made through a trade arranger as well as in the charter capital of 
specialized depositories require an advance perm ission of the authorized federal body of the 
Russian Federation. 
 
 3 9. TOURISM AND 
TRAVEL RELATED 
SERVICES   
A. Hotels and Restaurants 
(including catering) 
 (CPC 641, CPC 642, CPC 
643) 
 Authorisation from local authorities on a non-discriminatory basis is required, taking into 
account city development planning and progra mmes of social and economic development in 
their jurisdiction. 
Samoa 4 I. HORIZONTAL 
COMMITMENTS 
B.  Intra-Corporate 
Transferees Admission of more than 2 intra-corporate transferees at any one point in time will be 
granted only after consideration of Samoan citizen or permanent resident with the requisite 
skills and experience available for such em ployment. The requirement for considering 
Samoan citizens or permanent residents with the requisite skills and experience may be fulfilled by advertising the position in a ne wspaper of broad circulation (or equivalent 
electronic listing of hiring opportunities commonly consulted in Samoa) for a period of 30 
days.  If after this period no person with the requisite skills and experience is identified by 
the company, the request for admission will be granted.  
4 I. HORIZONTAL 
COMMITMENTS 
D. Horizontal: Independent 
Service Suppliers 
 Admission will be granted after consideration of Samoan citizen or permanent resident with 
requisite technical or professional skills available for such contract. 
 
Seychelles 3 4.  DISTRIBUTION 
SERVICES   
(c) Retailing services  
 (CPC 631 + CPC 632) None, except that it will be subject to Economic Needs Test (ENT). The Economic Needs 
Test will be satisfied if the retail service supplier will: (i) improve the employment of Seychellois, (ii) improve the productive infrastructure of the economy, and (iii) provide a 
new service. 
  
  S/CSS/W/118/Add.2  
 
- 7 - Schedule Mode Sector Economic N eeds Test and criteria mentioned 
 
3 6. ENVIRONMENTAL 
SERVICES   
A. Sewage services  
 (CPC 94010**) - (limited to Sewage 
treatment); None, except that an Economic Needs Test wi ll need to be carried out by the Ministry 
responsible for Environment to:  
(a) Examine the current level of services, 
(b) Determine the effect of new entrants  on public convenience including the 
continuity and quality of the services. 
 
3 6. ENVIRONMENTAL 
SERVICES   
B. Refuse disposal services 
(CPC 94020**) 
-  (limited to disposal 
services by incineration ) 
 None, except that an Economic Needs Test wi ll need to be carried out by the Ministry 
responsible for Environment to:  
(a)  Examine the current level of services, 
(b)  Determine the effect of new entran ts on public convenience including the 
continuity and quality of the services. 
 
 
 
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