WT/RE G287/1  
18 January 2018  
(18-0483) Page: 1/45 
Committee on Regional Trade Agreements   
 
 FACTUAL PRESENTATION  
FREE TRADE AGREEMENT BETWEEN  THE ASSOCIATION OF  SOUTHEAST ASIAN NATI ONS (ASEAN) 
AND THE REPUBLIC OF KOREA  
(SERVICES ) 
Report by the Secretariat  
This report, prepared for the consideration of the Free Trade Agreement between the 
Associat ion of Southeast Asian Nations (ASEAN) and the Republic of Korea , 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 official 
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 Transparenc y 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 report may be addressed to 
Mr. Alberto  Osnago (tel: +41 2 2 739 6969) . Any statistical questions arising from this 
report may be addressed to  Ms. Rowena Cabos (tel: +41 22 739 5185) . 
 
 WT/REG287/1  
 
- 2 - 
 
 
  
TABLE O F CONTENTS  
Page 
1   TRADE ENVIRONMENT  ................................ ................................ ................................ . 4 
2   CHARACTERISTIC ELEME NTS OF THE AGREEMENT  ................................ ....................  14 
2.1   Background Information  ................................ ................................ .............................. 14 
2.2   Structure of the agreement  ................................ ................................ .......................... 14 
3   PROVISIONS ON TRADE IN SERVICES  ................................ ................................ ....... 15 
3.1   Scope and Definitions  ................................ ................................ ................................ .15 
3.2   Denial of Benefits  ................................ ................................ ................................ .......16 
3.3   General Provisions on Trade in Services  ................................ ................................ ........ 16 
3.3.1    Market acc ess ................................ ................................ ................................ ......... 16 
3.3.2    National and MFN treatment  ................................ ................................ ...................... 16 
3.3.3    Commercial presence  ................................ ................................ ............................... 16 
3.3.4    Performance requirements  ................................ ................................ ........................ 17 
3.3.5    Senior Managers and Boards of Directors  ................................ ................................ ....17 
3.3.6    Movement of natural p ersons  ................................ ................................ .................... 17 
3.4   Liberalization Commitments  ................................ ................................ ......................... 17 
3.4.1    Korea  ................................ ................................ ................................ ..................... 17 
3.4.1.1    Horizontal commitments  ................................ ................................ ........................ 17 
3.4.1.2    Sector -specific commitments  ................................ ................................ .................. 18 
3.4.2    ASEAN Member States  ................................ ................................ ............................. 19 
3.4.2.1    Brunei Darussalam  ................................ ................................ ................................ 19 
3.4.2.2    Cambodia  ................................ ................................ ................................ ............ 21 
3.4.2.3    Indonesia  ................................ ................................ ................................ ............. 23 
3.4.2.4    Lao PDR  ................................ ................................ ................................ ............... 25 
3.4.2.5    Malaysia  ................................ ................................ ................................ .............. 26 
3.4.2.6    Myanmar  ................................ ................................ ................................ ............. 28 
3.4.2.7    Philippines  ................................ ................................ ................................ ........... 30 
3.4.2.8    Singapore  ................................ ................................ ................................ ............ 32 
3.4.2.9    Thailand  ................................ ................................ ................................ .............. 34 
3.4.2.10    Viet Nam  ................................ ................................ ................................ ............ 36 
3.5   Regulatory Provisions  ................................ ................................ ................................ ..37 
3.5.1    Domes tic regulation  ................................ ................................ ................................ .37 
3.5.2    Recognition  ................................ ................................ ................................ ............. 37 
3.5.3    Subsidies  ................................ ................................ ................................ ................ 37 
3.5.4   Safeguards  ................................ ................................ ................................ ............. 38 
3.5.5    Other  ................................ ................................ ................................ ..................... 38 
3.5.5.1    Monopolies and exclusive service suppliers  ................................ ............................... 38 
3.5.5.2    Investment  ................................ ................................ ................................ .......... 38 WT/REG287/1  
 
- 3 - 
 
 
 3.6   Sector -Specific Provisions  ................................ ................................ ............................ 38 
3.6.1    Financial Services  ................................ ................................ ................................ ....38 
4   GENERAL PROVISIONS O F THE AGREEMENT  ................................ .............................  39 
4.1   Transparency  ................................ ................................ ................................ ............. 39 
4.2   Payments and capital movements  ................................ ................................ ................. 39 
4.3   Exceptions  ................................ ................................ ................................ ................. 40 
4.3.1    General exceptions  ................................ ................................ ................................ ..40 
4.3.2    Security exceptions  ................................ ................................ ................................ ..40 
4.3.3    Taxation  ................................ ................................ ................................ ................. 40 
4.4   Accession  ................................ ................................ ................................ .................. 40 
4.5   Institutional framework  ................................ ................................ ............................... 40 
4.6   Dispute settlement  ................................ ................................ ................................ .....40 
4.7   Relationship with other agreements co ncluded by the Parties  ................................ ........... 43 
4.8   Other  ................................ ................................ ................................ ........................ 45 
 WT/REG287/1  
 
- 4 - 
 
 
  
Key Facts  
 
Parties to the Agreement : ASEAN M ember States and the 
Republic of Korea  
 
Date of Signature : 21 Novembe r 2008  and 
27 February 2009  
 
Date of Entry into Force : 1 May 2009 and 14 October 2010  
 
Date of Notification :  15 June 2010 , 6 July 2010  and 
21 April 2011  
 
Full implementation :  14 October 2010  
 
 
1  TRADE ENVIRONMENT  
1.1.  The Agreement on Trade in Services under  the Framework Agreement on Comprehensive 
Economic Cooperation  between  the Association of Southeast Asian Nations (ASEAN) and the 
Republic of Korea (hereafter "the Agreement")  is one of 19  regional trade agreement s (RTAs) 
notified  by Korea and one of six notified  by ASEAN .1 Of these RTAs, 14 and three cover  trade in 
services  respectively  for Korea and ASEAN .  
1.2.  In commercial services, Korea ranked 9th in 2015 (for a value of US$97 billion) in terms of 
global exports and 7th (US$112 billion)  in terms of global  imports, representing  2% and 2.4% of 
world exports and imports, respectively  (see Table 1.1). Among the ASEAN members, Singapore  
was the 6th largest exporter of services in the world and the 5th largest importer  in 2015 . Its trad e 
in services accounted for 2.9% of world exports and 3.1% of world imports , corresponding to 
US$139 billion and US$143  billion respectively. Thailand and Malaysia were the next largest 
importers and exporters of services  in 2015 . Among the newer ASEAN mem bers (Cambodia, Lao 
PDR, Myanmar and Viet Nam) Viet Nam had the largest share of exports (0.23%) and imports 
(0.33%) of commercial services.  
Table 1.1 Commercial services trade by Korea and ASEAN member states , 2015  
 Exports  Imports  
Value 
(US$ 
million)  Share in 
World 
Total (%)  Rank  Value  
(US$ 
million)  Share in 
World 
Total (%)  Rank  
Korea, Republic of  96,844  2.04 9 112,345  2.44 7 
ASEAN        
Brunei Darussalam  577 0.01 116 1,885  0.04 83 
Cambodia  3,775  0.08 55 1,878  0.04 84 
Indonesia  21,259  0.45 24 30,222  0.66 20 
Lao PDR  790 0.02 111 554 0.01 127 
Malaysia  34,759  0.73 18 39,814  0.86 19 
Myanmara  4,127  0.08 50 2,561  0.05 69 
Philippines  28,153  0.59 21 23,599  0.51 23 
Singapore  139,335  2.93 6 143,268  3.11 5 
Thailand  60,280  1.27 11 50,473  1.09 16 
Viet Nam  11,054  0.23 35 15,292  0.33 31 
a Refers to 2014.  
Note:  Rank excludes intra -EU trade.  
Source:  WTO Statistics Database , Trade Profiles . 
                                                
1 Including the Agreement establishing the ASEAN Free Trade Area.  WT/REG287/1  
 
- 5 - 
 
 
 1.3.  Services  represent a substantial part of the production of manufactured goods. The 
OECD -WTO Trade in Value Added (TiVA) dataset allows us to identify the domestic and foreign 
value added originating from all domestic service industries in total gross exports  including that in  
export s of manufactur ed products . In 2011, services  accounted for more than half of gross exports 
to the world of Singapore and Cambodia, while they accounted for only 11% of gross exports of 
Brunei Darussalam. While the share of total (domestic plus foreign) services value added in gross 
exports remained roughly constant for all countries for which data were available between 2000 
and 2011, Chart 1.1 indicates that countries such as the Philippines and Singapore increased the 
value of domestic services in gross exports vis-à-vis the value of foreign domestic services. This 
suggests that t hese countries increased their specialization in the production of services  for 
exports . On the other hand, the foreign services value added shares of gross exports from Korea 
and, to a lesser exte nt, Thailand and Viet Nam increased suggesting that they rely more on the 
supply of services from other countries in order to produce their exports.  
Chart 1.1 Korea and ASEAN services value added in gross exp orts, 2000 -2011  
01020304050607080
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011PercentKorea
01020304050607080
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011PercentBrunei Darussalam
01020304050607080
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011PercentCambodia
01020304050607080
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011PercentIndonesia
01020304050607080
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011PercentMalaysia
01020304050607080
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011PercentPhilippines
01020304050607080
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011PercentThailand
01020304050607080
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011PercentSingapore
01020304050607080
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011PercentViet Nam
 
Note:  Domestic services value added share of gross exports is the share of value added originating from all 
domestic service industries in total gross exports. Foreign services value added share of gross 
exports is the share of value add ed originating from all foreign service industries in total gross 
exports.  
 Service industries include construction, wholesale and retail, hotels and restaurants, transport and 
communications, finance, real estate and business services as well as public se rvices i.e. ISIC Rev.3 
Divisions 45 to 95.  
Source:  OECD -WTO Trade in Value Added (TiVA) database . WT/REG287/1  
 
- 6 - 
 
 
 1.4.  Chart 1.2 and Chart 1.3 show the breakdown of commercial services trade for Korea in the 
periods 2000-2011 and 2012 -2016.2 Korea has run a deficit in trade in  services  throughout both 
periods . The trend in Korea's trade in services was upward for the first decade of the 2000s with 
the exception of a decline in 2009. After 2011, data suggest a constant level of  imports and a 
slightly downward trend in exports. The largest traded services were transport and other business 
services . The share of transport services in total trade slowly declined over the period (from 
around 33% to 26% for imports and from around 45 % to 35% for exports) while the share of 
other business services remained relatively constant (around 30% of imports and 20% of exports).  
Chart 1.2 Korea total trade in commercial services with world, 200 0-2011 
Transportation services
Travel
Communications services
ConstructionFinancial services
Computer and information services
Royalties and license feesOther business services
Personal, cultural and 
recreational servicesInsurance servicesMaintenance and repair 
services020406080100120
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011A. Korea imports from world
2000 -2011
(US$ Billion)
020406080100120
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011B. Korea exports to world
2000 -2011
(US$ Billion)
 
Note:  Based on BPM5 with the exception of Maintenance and repair services based on BPM6.  
Source:  Korean authorities (2006 -2008) and OECD (2000 -2005; 2009 -2011).  
                                                
2 The time series had to be split into two charts because of the different classifications used (BPM5 and 
BPM6).  WT/REG287/1  
 
- 7 - 
 
 
 Chart 1.3 Korea total trade in com mercial se rvices with world, 2012 -2016  
020406080100120140160
2012 2013 2014 2015 2016A. Korea imports from world
2012 -2016
(US$ Billion)
020406080100120140160
2012 2013 2014 2015 2016B. Korea exports to world
2012 -2016
(US$ Billion)
Manufacturing
Maintenance and 
repair
Transport
TravelInsurance and pension 
services
Financial servicesTelecommunications, computer and 
information services
Other business services
Personal, cultural and recreational servicesConstruction
Charges of the use of intellectual property
 
Note: Based on BPM6.  
Sourc e: OECD.  
 
1.5.  Chart 1.4 shows the sectoral decomposition of imports and exports of Korea from and to 
Indonesia, Malaysia, Philippines, Singapore, Thailand and Viet  Nam.3 In 2011 , transport services 
were the most important Korean exports to the se ASEAN members with the exception of travel 
services in the Philippines. The largest imports by Korea from Indonesia and Viet Nam in 2011 
were other business services while transport servi ces were the largest imports from Malaysia and 
Singapore. The largest share of imports from Thailand was represented by travel services whereas  
the shares of  imports of transport, other businesses and travel services from the Philippines were 
very similar.  
1.6.  Chart 1.5 and Chart 1.6 show the breakdown of commercial services imports and exports of 
the ASEAN member  states from and to the world with different time and sector coverage 
depending on the availabilit y of data . Travel and transport services tended to be important exports 
and imports for most of the ASEAN Members. Other business services were also relatively 
important for Indonesia, the Philippines, Singapore and, to a lesser extent, for Brunei Darussal am, 
Malaysia and Thailand . Singapore also exported a noticeable amount of financial services. Data on 
bilateral trade of ASEAN members with Korea were not available.  
                                                
3 Data for other ASEAN members were not available.  WT/REG287/1  
 
- 8 - 
 
 
 Chart 1.4 Korea total trade in commercial services with selected ASEAN member states, 
2005 -2011  (Indonesia, Malaysia, P hilippines, Singapore, Thailand  and Viet  Nam)  
Exports ImportsUS$ billionIndonesia
Malaysia
US$ billion US$ billion
US$ billion
Philippines
US$ billion
US$ billion
Singapore
Viet Nam
US$ billion
US$ billionUS$ billion
US$ billionThailand0.00.51.01.52.0
2005 2006 2007 2008 2009 2010 20110.00.51.01.52.0
2005 2006 2007 2008 2009 2010 2011
0.00.20.40.60.81.0
2005 2006 2007 2008 2009 2010 20110.00.20.40.60.81.0
2005 2006 2007 2008 2009 2010 2011
0.01.02.03.0
2005 2006 2007 2008 2009 2010 20110.01.02.03.0
2005 2006 2007 2008 2009 2010 2011
0.01.02.03.04.05.0
2005 2006 2007 2008 2009 2010 20110.01.02.03.04.05.0
2005 2006 2007 2008 2009 2010 2011
0.00.51.01.52.0
2005 2006 2007 2008 2009 2010 2011US$ billion
0.00.51.01.52.0
2005 2006 2007 2008 2009 2010 2011US$ billion
0.00.51.01.52.02.5
2005 2006 2007 2008 2009 2010 20110.00.51.01.52.02.5
2005 2006 2007 2008 2009 2010 2011
Transportation services
Travel Insurance services Other business servicesCommunication services Royalties and license fees
 
Note: No trade data for Construction; Financial services; Computer and information services; and Personal, 
cultural and recreationa l services (2005 -2011).   
 Based on BPM5.  
Source:  OECD.  WT/REG287/1  
 
- 9 - 
 
 
 Chart 1.5 ASEAN member states' total trade in commercial services with world, 200 5-
2015 (Brunei Darussalam, Cambodia, Indonesia, Lao PDR and Malaysia)  
Exports ImportsUS$ billionBrunei Darussalam
Cambodia
US$ billion US$ billion
US$ billion
Indonesia
US$ billion
US$ billion
Lao PDR
Malaysia
US$ billion
US$ billionUS$ billion
US$ billion0.00.51.01.52.0
2005 2006 2007 2008 20090.00.51.01.52.0
2005 2006 2007 2008 2009
0.01.02.03.04.0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 20150.01.02.03.04.0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
0.010.020.030.040.0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 20150.010.020.030.040.0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
0.00.10.20.30.40.50.60.70.80.9
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 20150.00.10.20.30.40.50.60.70.8
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
0.010.020.030.040.050.0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 20150.010.020.030.040.050.0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Manufacturing
Maintenance and repair
Transport
TravelInsurance and pension services
Financial servicesTelecommunications, computer and 
information services
Other business services
Personal, cultural and recreational servicesConstruction
Charges of the use of intellectual property
 
Note: Brunei Darussalam: No trade data for Manufacturing services; Maintenance; Construction; and Personal, cultural 
and recreational services (2005 -2009). No export data for Financial services; and Charges for the use of 
intellectual property, n.e.s. (2005 -2009).  
 Cambodia: no trade data on Manufacturing services; and Maintenance and repair services n.i.e. (2005 -2015).  
 Indonesia: no trade data for Manufacturing services (export: 2006 -2010 and import: 2005 -2015).  
 Lao PDR : No trade data for Manufacturing services; Maintenance; Charges for the use of intellectual property 
n.i.e.; Other business services; Personal, cultural, and recreational services (2005 -2015); Financial services (2005 -
2010).  No export data for Construction (2005 -2008).  
 Malaysia: no trade  data for Manufacturing services  (export: 2008 and import: 2005 -2009).  No import data for 
Maintenance and repair services n.i.e. (2005 -2009).  
 Based on BPM6.  
Source:  WTO Statistics Database.  WT/REG287/1  
 
- 10 - 
 
 
 Chart 1.6 ASEAN m ember states' total trade in commercial services  with world, 2005 -
2015 (Myanmar, Philippines, Singapore, Thailand and Viet Nam)  
Exports ImportsUS$ billionMyanmar
Philippines
US$ billion US$ billion
US$ billion
Singapore
US$ billion
US$ billion
Thailand
Viet Nam
US$ billion
US$ billionUS$ billion
US$ billion012345
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015012345
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
05101520253035
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015051015202530
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
050100150200
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015050100150200
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
010203040506070
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015010203040506070
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
051015
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015051015
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Manufacturing
Maintenance and repair
Transport
TravelInsurance and pension services
Financial servicesTelecommunications, computer and 
information services
Other business services
Personal, cultural and recreational servicesConstruction
Charges of the use of intellectual property
 
Note: Myanmar: No trade data for Maintenance and repair services n.i.e.; Financial services; Charges for the use of 
intellectu al property, n.i.e. (2005 -2013).  No trade data for Construction (export:  2005-2010, 2012 -2013 and 
import: 2005 -2013); Insurance and pension services; and Telecommunications, computer and information services 
(2005 -2011).  No export data for Personal, cultur al and recreational services (2005 -2013).  No import data for 
Manufacturing services (2005 -2012).  
 Philippines and Singapore:  no trade data on Manufacturing services (2005 -2015).  
 Thailand : no trade data for Manufacturing services; and  Maintenance and repai r services (2005 -2015).  
 Viet Nam: no trade data for Manufacturing services; Maintenance and repair services; Construction; Charges for 
the use of intellectual property, n.i.e.; Other business services; and Personal, cultural, and recreational services  
(2005-2015).  
 Based on BPM6.  
Source:  WTO Statistics Database.  WT/REG287/1  
 
- 11 - 
 
 
 1.7.  Chart 1.7 shows Korea' foreign direct investment (FDI) stocks and flows  with the world 
between 2005 and 2016. FDI outflows consistently exceeded inflows every year starti ng from 
2006. The stock of FDI outflows increased steadily for the whole period and surpassed the level of 
inward stocks in 2008. The gap between outward and inward stocks of FDI widened regularly 
starting from 2011.  
Chart 1.7 Korea: foreign direct investment with world, 2005 -2016  
05101520253035
05101520253035
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016FDI flow with world
(US$ Billion)
Inward
Outward (right axis)
050100150200250300350400450500
050100150200250300350400450500
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016FDI stock with world
(US$ Billion)
Inward
Outward (right axis)
 
Source:  OECD.  
 
1.8.  Chart 1.8 and Chart 1.9 respectively show ASEAN members' FDI flows and stocks  with the 
world  during 2005 -2015.4 Singapore was the largest recipient and provider of FDI from and to the 
world among the ASEAN members  and inward flows tend ed to be larger than outward flows with 
the exception of 2001 and 2009 . The gap between the stock of inward and outward FDI in 
Singapor e widened after 2007.  Malaysia was the only ASEAN country with an FDI outflow  that was  
consistently larger than the inflow between 2007 and 201 4. As a consequence  of the sustained 
level of investment abroad in recent years , in 2015 Malaysia's  stock of inve stment in the world 
became bigger than the stock of investment received. Inward stocks were larger than outward 
stocks in all other ASEAN countries suggesting that they were destination markets for foreign 
investment.  
                                                
4 UNCTAD recently made available data on bilateral FDI stocks and flows for some ASEAN members. The 
data are scattered across countries and years and it is not yet possible to do a meaningful analysis.  WT/REG287/1  
 
- 12 - 
 
 
 Chart 1.8 ASEAN member states' FDI flow with world, 2000 -2015  
-0.20.00.20.40.60.81.0
-101122334
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015Brunei Darussalam
(US$ Billion)
Inward
Outward (right axis)
01020304050607080
02004006008001,0001,2001,4001,6001,8002,000
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015Cambodia
(US$ Million)
Inward
Outward (right axis)
-10-5051015202530
-10-5051015202530
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015Indonesia 
(US$ Billion)
Inward
Outward (right axis)
-0.20.00.20.40.60.81.01.2
-0.20.00.20.40.60.81.01.2
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015Lao PDR
(US$ Billion)
Inward
Outward (right axis)
02468101214161820
02468101214161820
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015Malaysia
(US$ Billion)
Inward
Outward (right axis)
-101234567
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015Myanmar
(US$ Billion)
Inward
-1012345678
-1012345678
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015Philippines
(US$ Billion)
Inward
Outward (right axis)
01020304050607080
01020304050607080
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015Singapore
(US$ Billion)
Inward
Outward (right axis)
-2024681012141618
-238131823
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015Thailand
(US$ Billion)
Inward
Outward (right axis)
-0.50.00.51.01.52.02.53.0
-0.54.59.514.519.5
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015Viet Nam
(US$ Billion)
Inward
Outward (right axis)No data on FDI outflow
 
Note: No outward data available for Indonesia (2000 -2003), Myanmar (2000 -2015) and Viet Nam 
(2000 -2004).  
Source:  UNCTAD.  WT/REG287/1  
 
- 13 - 
 
 
 Chart 1.9 ASEA N member states' FDI stock  with world, 2000 -2015  
010203040506070
050100150200250
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015Indonesia 
(US$ Billion)
Inward
Outward (right axis)
020406080100120140160180200
01,0002,0003,0004,0005,0006,000
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015Lao PDR
(US$ Million)
Inward
Outward (right axis)0.00.51.01.52.02.53.0
01234567
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015Brunei Darussalam
(US$ Billion)
Inward
Outward (right axis)
0.00.10.20.30.40.50.6
0246810121416
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015Cambodia
(US$ Billion)
Inward
Outward (right axis)
020406080100120140160
020406080100120140160
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015Malaysia 
(US$ Billion)
Inward
Outward (right axis)
0510152025
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015Myanmar
(US$ Billion)
Inward
010203040506070
010203040506070
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015Philippines
(US$ Billion)
Inward
Outward (right axis)
02004006008001,0001,200
02004006008001,0001,200
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015Singapore
(US$ Billion)
Inward
Outward (right axis)
01020304050607080
050100150200250
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015Thailand
(US$ Billion)
Inward
Outward (right axis)
02468101214161820
020406080100120
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015Viet Nam
(US$ Billion)
Inward
Outward (right axis)No data on FDI outward stock
 
Note:  No trade data for Indonesia (2000); no outward data for Indonesia (2000 -2005); Myanmar (2000 -
2015) and Viet Nam (2000 -2004).  
Source:  UNCTAD.  WT/REG287/1  
 
- 14 - 
 
 
 1.9.  The Korean authorities provided information regarding the movement of natural persons to 
and from ASEAN countries in the period 2006 -2008. While more than 2.4 million Koreans moved 
to ASEAN countries in 2008, less than 17 ,000 people moved from the ASEAN region to Korea. Most 
of the people moving to Korea were ser vice sellers or persons responsible for setting up 
commercial presence.5 
2  CHARACTERISTIC ELEME NTS OF THE AGREEMENT  
2.1  Background Information  
2.1.  The Agreement was signed by the ASEAN member states , except Thailand,  and the Republic 
of Korea  (hereafter "Korea")  on 21 November 2008 and entered into force on 1 May 2009. It was 
notified to the WTO by Korea on 15 June 2010 a nd by the ASEAN member states on 6 July 2010 
under GATS Article V:7(a) (respectively S/C/N/559 and S/C/N/560). The ASEAN members and 
Korea (hereafte r "the Parties")  signed a Protocol on the Accession of the Kingdom of Thailand to 
the Agreement on 27 February 2009 . The Agreement  on trade in services entered into force for all 
Parties , including Thailand , on 14  October 2010.6 
2.2.  The Agreement was negotiate d under the Framework Agreement on Comprehensive 
Economic Cooperation between the ASEAN and the Republic of Korea and the Protocol to amend 
the Framework Agreement, signed in 2005. It should also be seen in connection with the 
Agreement on Trade in Goods t hat entered into force on 1 January 2010; the ASEAN -Korea  
Agreement on dispute settlement mechanism (hereafter the "DSM agreement"), which was signed 
in 2005; and the Agreement on Investment  under the Framework Agreement on Comprehensive 
Economic Cooperati on among the Governments  of the Member Countries of the Association of 
Southeast Asian Nations and the Republic of Korea (hereafter the Agreement on Investment ) that 
was signed in 2009. The text of the Agreement is available, together with its Annex es, on the 
following official websites:  
ASEAN:  
http://akfta.asean.org/index.php?page=trade -in-services   
 
Korea:   
http://www.fta.go.kr/pds/fta_korea/asean/20100413_asean.pdf   
 
2.2  Structure of the agreement  
2.3.  The Agreement is composed of four Chapters  and 32 Articles. It also contains an Annex on 
financial services . Each Party's Schedules of specific commitments are attach ed to and form an 
integral part of the Agreeme nt. Moreover, the GATS Annex on telecommunications  shall be 
incorporated into  the Agreeme nt, mutatis mutandis (Article 27 ). 
2.4.  Chapter I of the Agreement provides the scope of its disciplines and definitions. Chapter II 
contains the main obligations and disciplines while Chapter III addresses the Parties' specific 
commitments covering market access and national treatment, as well as additional commitments. 
It refers to the Parties' individual Schedules of specific commitments and addresses the application 
and extension of commitments as well as the procedure applicable to the modification of 
Schedules. Chapter IV contains other and final provisions covering areas such as the incorporation 
of annexes and possible fut ure legal instruments; the review of the implementation ; denial of 
benefits; and entry into force.   
2.5.  The Agreement on Investment provides disciplines for investment by an investor of a Party in 
the territory of another Party.7 It includes, among other s, pro visions on national and MFN 
                                                
5 The o ccupations of people moving from Korea to ASEAN countries were not available.  
6 The entry into force of the Agreement for all Parties was notified by all Parties on 21 April 2011  
(S/C/N/559 /Add.1  and S/C/N/560/Add.1 ). 
7 The investor of a Party is defined a s a natural or juridical person of a Party that is seeking to make, is 
making or has made an investment in the territory of any other Party. Investment is defined as every kind of 
asset that an investor owns or controls and has the characteristics of an in vestment such as the commitment 
of capital, the expectation of gains or profits, or the assumption of risk. Investment shall include but is not 
limited to movable and immovable property and property rights, shares and stocks, intellectual property rights, WT/REG287/1  
 
- 15 - 
 
 
 treatment, transparency, senior management and boards of directors, transfers, and  dispute 
settlement between a Party and an investor of another party (ISDS).  
3  PROVISIONS ON TRADE IN SERVICES  
3.1  Scope and Definitions  
3.1.  The Agreement a pplies to measures of a Party affecting trade in services.8 Trade in services 
is defined as the supply of a service through the four modes of supply defined by the GATS.9 
3.2.  The Agreement does not apply to: a) services supplied in the exercise of governmental  
authority; b) measures affecting air traffic rights or services related to the exercise of air traffic 
rights other than aircraft repair and maintenance, selling and marketing of air transport services 
and computer reservation system services ; c) cabotage  in maritime transport services; d) and 
measures affecting natural persons seeking access to the employment market of a party and 
measures regarding citizenship, residence or employment on a permanent basis  (Article 2).  
3.3.  Article s 19 (market access) , 20 (nat ional treatment)  and 23 (application and extension of 
commitments) shall not apply to laws, regulations or requirements governing the procurement by 
governmental agencies of services purchased for governmental purposes and not with a view to 
commercial res ale or with a view to use in the supply of services for  commercial sale.  
3.4.  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 A greement (preamble of the Agreement). The increas ed participation of these Parties shall be 
facilitated through negotiated specific commitments taking into account, inter alia , their need to 
improve access to technology, access to distribution channels and  information networks, and the 
liberalization of market access in sectors and modes of supply of export interest. Appropriate 
flexibility shall also be accorded to these Parties for limited and progressive liberalization in terms 
of specific commitments un dertaken in line with their respective stage of development (Article 18).   
3.5.  The Agreement on Investment applies to measures adopted or maintained by a Party relating 
to investors of another Party and  to existing investment s of an investor of a nother  Party a s of date 
of entry into force of the Agreement on Investment or established, acquired or expanded 
thereafter in the territory of a nother  Party. 
3.6.  The Agreement on Investment does not apply to government procurement, subsidies or 
grants, taxation measures,10 claims arising out of events which occurred or claims which had been 
raised prior to the entry into force of the Agreement o n Investment, services supplies in the 
exercise of governmental authority, and measures adopted or maintained by a Party to the exten t 
that they are covered by the Agreement on Services.  
3.7.  Under Article 16 of the Agreement on Investment, the newer ASEAN Member States are 
accorded special and differential treatment through, among other things, access to information on 
the investment polici es of other Parties, business information and relevant database, and technical 
assistance.  
 
 
                                                                                                                                                  
business concessions and claim to money or any performance having financial value. Investment does not 
include commercial contracts for the sale of goods or services and the extension of credit in connection with a 
commercial transaction.  
8 The Agreement c overs measures taken by central, regional, or local governments and authorities , as 
well as by non -governmental bodies in the exercise of powers delegated by central, regional or local 
governments or authorities.  
9 In relation to mode 3, under the Agreemen t, "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 t he territory of a Party 
for the purpose of supplying a service . 
10 Transfers (Article 10) and expropriation and compensation (Article 12) exceptionally apply.  WT/REG287/1  
 
- 16 - 
 
 
 3.2  Denial of Benefits  
3.8.  Article 30  on the denial of benefits is based on Article XXVII of the GATS and allows a Party 
to deny the benefits of the Agreement, inter alia , for the supply of a service, if it establishes that 
the service is supplied from or in the territory of a non-party; or if it establishes that a juridical 
person is not a  service supplier of another Party . 
3.9.  Article 17 of the Agreement on Investment allows  a Party to deny the benefit to an investor 
of another Party and its investments if the investor has no substantial business activities in the 
territory of the Party under whose law it is constituted or organized and investors of a non -party, 
or of the den ying Party, control the investor.11 
3.3  General Provisions on Trade in Services  
3.3.1   Market access  
3.10.   The market access provisions  mirror the language of Art icle XVI of the GATS (Article 19 ). 
The Parties' market access commitments refer to their Schedules of specific c ommitments.  
3.3.2   National and MFN treatment  
3.11.   The national treatment provisions mirror the language of Article XVII of the GATS 
(Article  20). The Parties' national treatment commitments refer to their Schedules of specific 
commitments. National treatment applies also to covered investment (Article 3 of the Agreement 
on Investment).  
3.12.   The Agreement does not contain provisions on MFN treatment.   
3.3.3   Commercial presence  
3.13.   No specific provision on commercial presence, per se , is stated by the Agreement.  However, 
Chapter I con tains the definition of commercial presence (Article 1(g)) and  of measures affecting 
trade in services which include measures in respect of commerci al presence (Article 1(s)(iii)). T he 
definition of trade in services includes also the supply of a service t hrough commercial presence 
(Article 1(hh)(iii)).  The limitations on commercial presence in the services sectors in the Parties' 
schedules of commitments are summarized in section 3. 4 below.  
3.14.   The Agreement on Investment contains a provision affecting the sup ply of a service by a 
Party's service supplier through commercial presence in the territory of another Party. The 
Agreement on Investment shall not apply to measures adopted or maintained by a Party to the 
extent that they are covered by the Agreement (Par agraph 2(f) of Article 2 of the Agreement on 
Investment ).12 
                                                
11 In the case of Thailand, benefits relating to the admission, establishment, acquisition and expa nsion 
of investment may be denied to an investor of any other Party and its investments if Thailand establishes that 
the investor is owned (i.e. more than 50% of the equity is owned by persons of a non -party) or controlled (i.e. 
the non -party investor has the power to name a majority of its directors or otherwise to legally direct its 
actions) by natural or juridical persons of a non -party. In the case of the Philippines, benefits may be denied to 
an investor of any other Party and its investment if it esta blishes that such investor has made an investment in 
breach of the provisions of Commonwealth Act No. 108 as amended by Presidential Decree No. 715, otherwise 
known as "the Anti -Dummy Law".  
12 Notwithstanding the non -application of the Agreement on Investme nt to measures adopted or 
maintained by a Party to the extent that they are covered by the Agreement (on services) and regardless of 
whether a service sector is scheduled (in the Agreement on services), several Articles of the Agreement on 
Investment (Arti cles 5 on treatment of investment, 10 on transfers, 12 on expropriation, 13 on compensation 
for losses, 14 on subrogation, and 18 on 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 pursuant to the Agreement (on services), but only to the 
extent that they relate to an investment and an obligation under the Agreement on Investment . WT/REG287/1  
 
- 17 - 
 
 
 3.3.4   Performance requirements  
3.15.   No specific provision on performance requirements, per se , is stated by the Agreement. The 
limitations on performance requirements in the subscribed services sectors in the  Parties' 
schedules of commitments are summarized in section 3.4  below. The Parties' additional 
commitments, including those regarding qualifications, standards or licensing matte rs are included 
in their Schedules of specific commitm ents (Article 21).  
3.3.5   Senior Managers and Boards of Directors  
3.16.   There are n o specific provision s on senior managers and boards of directors, per se , in the 
Agreement.  
3.3.6   Movement of natural persons  
3.17.   Nothing in the Agreement shall prevent a Party from applying measures to regulate the 
entry of natural persons of the other Parties into, or their temporary stay in, its territory, including 
measures necessary to protect the integrity of, and to ensure the orderly movement of , natural 
persons across its borders, provided that they are not app lied in such a manner as to  nullify or 
impair the benefits accruing to the other Parties under the terms of a specific commitment  
(Article  2.4). 
3.4  Liberalization Commitments  
3.18.   Each Party has a single schedule of specific commitments that is applied to all othe r Parties  
(Article 23) . Commitments taken by ASEAN member s apply to Korea a s well as to other ASEAN 
member s. Each schedule shall specify a) terms, limitations and conditions on market access,  b) 
conditions and qualifications on national treatment, c) under takings relating to additional 
commitments, d) the time -frame for implementation of such commitments, and e) the date of 
entry into force of such commitments (Article 22).  The Schedules follow a positive GATS type list 
approach.  
3.19.   The Parties may negotiate a dditional commitments with respect to trade in services, such as 
regarding qualifications, standards or licensing matters, currently not subject to scheduling under 
the Agreement (Article 21). Also, t hey shall enter into successive rounds of negotiations t o 
negotiate further packages of specific commitments to progressively liberalize trade in services 
between the m (Article 24).  
3.20.   A Party may modify or withdraw any commitment in its schedule, at any time after three 
years from the date on which that commitmen t entered into force (Article 25). The modification is 
subject to a notification to the other Parties and the Implementing Committee of a Party's 
intention to modify or withdraw a commitment no later than three months before the intended 
date of implementa tion of the modification or withdrawal, and  to negotiations with any affected 
Party regarding necessary compensatory adjustment.13 If the Parties concerned are unable to 
reach an agreement on the compensatory adjustment, the matter shall be resolved by arbi tration.  
3.4.1   Korea  
3.21.   Korea has a single schedule of specific commitments that is applied to all ASEAN parties.  
3.4.1.1   Horizontal commitments  
3.22.   As in the GATS, Korea's horizontal commitments cover only mode s 3 and 4 but they are 
partly different.  The acquisition by natu ral or juridical persons of another Party of stocks of 
existing Korean companies in the energy and aviation sectors may be restricted. Also, foreign 
investment in newly privatized companies may be restricted. Limitations on national treatment for 
mode 3 ar e the same as in the GATS except that there is no minimum value for the amount of 
                                                
13 The compensation shall be not less favourable to trade than provided for in the schedules prior to 
such negotiations and any compensatory adjustment pursuant to this Article shall be accorded on a 
non-discriminatory basis to all Parties.  WT/REG287/1  
 
- 18 - 
 
 
 FDI. Limitations on market access for mode 4 are the same as in the GATS with the exception of 
lower limitations for contractual service suppliers (which are unbound under the GATS).  
3.4.1.2   Sector -specific commitments  
3.23.   Table 3.1 summarizes Korea's commitments under the GATS and the Agreement. It should 
also be read in conjunction with its Schedule of specific commitments.  
3.24.   In general Korea offers better acces s under the Agreement as compared to the GATS. The 
improvements stem from either the additional partial coverage of  services such as higher and 
adult education services  (with the elimination of all limitations in mode 2), entertainment services  
(for which limitations on mode 1 and on national treatment for mode 3 remain unbound) , and rail 
(for which modes 1 and 3 are unbound) and pipeline transport  (with the elimination of all 
limitations in mode 3 and all limitations on national treatment ), or by improveme nts of limitations  
in the GATS . All limitations on market access and national treatment in some air transport services 
have been eliminated. Also, limitations in other business services such as market research, 
consulting related to agriculture and fishing , and packaging services ha ve been completely 
removed. Commitments on insurance  and banking services  are similar to those in the GATS but 
with the additional limitation o n residence in Korea for top executive personnel (for mode 3).   
Table 3.1 Korea: comparison  between the GATS and Agreement specific commitments in 
trade in services (excluding mode 4)  
Sectors  GATS  As compared to GATS  RTA 
1. Business services     
A. Professional Services  Partial  Improved  Partial 
B. Computer and Related Services  Full Same  Full 
C. Research and Development Services  Partial  Improved  Partial  
D. Real Estate Services  .. New Partial  
E. Rental/Leasing Services without Operators  Partial  Improved  Partial  
F. Other Business Services  Partial Improved  Partial  
2. Communication Services     
A. Postal Services  .. Same  .. 
B. Courier Services  .. New Partial  
C. Telecommunication Services  Partial  Improved  Partial  
D. Audiovisual Services  Partial  Same  Partial  
E. Other  .. Same  .. 
3. Construc tion and Related Engineering Services     
A. General Construction Work for Building  Partial  Improved  Partial  
B. General Construction work for Civil Engineering  Partial  Improved  Partial  
C. Installation and Assembly Work  Partial  Improved  Partial  
D. Buildi ng Completion and Finishing Work  Partial  Improved  Partial  
E. Other  Partial  Improved  Partial  
4. Distribution Services     
A. Commission Agents' Services  Partial  Improved  Partial  
B. Wholesale Trade Services  Partial  Improved  Partial  
C. Retailing Services  Partial  Improved  Partial  
D. Franchising  Partial  Same  Partial  
E. Other  .. Same  .. 
5. Educational Services     
A. Primary Education Services  .. Same  .. 
B. Secondary Education Services  .. Same  .. 
C. Higher Education Services  .. New Partial  
D. Adult Educ ation .. New Partial  
E. Other Education Services  .. Same  .. 
6. Environmental Services     
A. Sewage Services  Partial  Improved  Partial  
B. Refuse Disposal Services  Partial  Improved  Partial  
C. Sanitation and Similar Services  .. Same  .. 
D. Other  Partial  Improved  Partial  
7. Financial Services     
A. All Insurance and Insurance -related Services  Partial  Similar  Partial  
B. Banki ng and Other Financial Services  Partial  Similar  Partial  
C. Other  .. Same  .. 
8. Hea lth Related and Social Services     
A. Hospital Services  .. Same  .. WT/REG287/1  
 
- 19 - 
 
 
 Sectors  GATS  As compared to GATS  RTA 
B. Other Human Health Services  .. Same  .. 
C. Social Services  .. Same  .. 
D. Other  .. Same  .. 
9. Tourism and Travel Related Services     
A. Hotels and Restaurants (including catering)  Partial  Improved  Partial  
B. Travel Agencies and T our Operators Services  Full Same  Full 
C. Tourist Guides Services  Partial  Improved  Full 
D. Other  .. Same  .. 
10. Recreational, Cultural and Sporting Services     
A. Entertainment Services  .. New Partial  
B. News Agency Services  .. Same  .. 
C. Libraries, archives, museums and other cultural services  .. Same  .. 
D. Sporting and Other Recreational Services  .. Same  .. 
E. Other  .. Same  .. 
11. Transport Services     
A. Maritime Transport Services  Partial  Improved  Partial  
B. Internal Waterways Transport  .. Same .. 
C. Air Transport Services  Partial  Improved  Partial  
D. Space Transport  .. Same  .. 
E. Rail Transport Services  .. New Partial  
F. Road Transport Services  Partial  Same  Partial  
G. Pipeline Transport  .. New Partial  
H. Services Auxiliary to All Modes o f Transport  Partial  Similar  Partial  
I. Other Transport Services  Partial  Improved  Partial  
12. Other Services not Included Elsewhere  .. New Partial  
General Note:  MFN and Horizontal limitations, as well as Mode 4 commitments/limitations not considered.  
Partial:  Specific commitments subject to some limitation(s) under market access or national treatment, 
under any of the three modes.  
Full: Specific commitments not subject to limitation(s) under market access or national treatment, under 
any of the three mod es. 
..: No specific commitment.  
Improved: Overall improved commitments under the Agreement.  
Similar:  Similar commitments; though possibly, in individual cases, with limited improvements and/or limited 
additional reservations.  
Same:  Same commitments as und er the GATS.  
New: New commitments under the Agreement; full or partial, with or without limitations, which can, in 
most but not all cases, be seen as "improved".  
Source:  Draft Consolidated GATS Schedule of S pecific Commitments (S/DCS/W/KOR/Rev.1 ), prepared  by the 
Secretariat (in 2003) and Korea 's Schedules annexed to the Agreement.  
3.4.2    ASEAN Member States  
3.25.   The specific commitments of the ASEAN Member States are contained in separate individual 
Schedules. While some Schedules are similar to their GATS specific c ommitments, others have 
improved the coverage and depth of their commitments .  
3.4.2.1   Brunei Darussalam  
3.4.2.1.1   Horizontal commitments  
3.26.   Horizontal commitments under the Agreement are identical to those under the GATS  and 
cover mode s 3 and 4. Mode 3 is unbound under marke t access for measures concerning foreign 
equity. As regards national treatment, half of the board members of a public company and half the 
directors of a private company must be nationals or residents of Brunei, and all companies 
incorporated abroad  but wh ich have establish ed 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  
3.27.   Table 3.2 summarizes the commitments under the Agreement as compared to the 
commitments under the GATS. It should also be read in conjunction with the Schedule of specific WT/REG287/1  
 
- 20 - 
 
 
 commitments.  Brunei's c ommitments under the A greement apply to Korea as well as to other 
ASEAN member states . 
3.28.   The commitment s in business and financial services under the Agreement are the same as 
under the GATS. The coverage of communication services has been improved with the addition of 
telex, tel egraphic and voice mail services  for which modes 1 and 2 tend to remain unbound and 
mode 3 is subject to licensing by the appropriate regulatory authority .14 The Agreement also 
covers construction and related engineering services , some hotel services  and ma ritime transport 
services,  for which Brunei has no GATS commitments .15 The coverage in these sectors is limited to 
a few specific services and limitations include, among others,  a threshold of 50% for foreign equity 
participation and foreign nationals and r egistration obligations  (construction services), joint -
ventures with a minimum of 30% of local equity (budget and resort hotels) or no commitments (in 
mode 1 for construction and mode 3 for maritime transport services) . International passenger and 
freight maritime transport services are covered with no limitations to marke t access and national 
treatment for modes 1 and 2 while mode 3 remains unbound. Rent ing of aircrafts with crew is also 
covered under the Agreement  with the same limitations as in the GATS . Aircraft repair and 
maintenance services are included in the Agreement with no limitations in modes 1 and 2 while 
mode 3 remains unbound.  
Table 3.2 Brunei Darussalam : comparison between the GATS and Agreement  specific 
commitments in trade in services (excluding mode 4)  
Sectors  GATS  As compared to GATS  RTA 
1. Business services  Partial    Partial  
A. Professional Services  Partial  Same  Partial  
B. Computer and Related Services  Partial  Same  Partial  
C. Research and Development Services  .. Same  .. 
D. Real Estate Services  .. Same  .. 
E. Rental/Leasing Services without Operators  Partial  Same  Partial  
F. Other Business Services  .. Same  .. 
2. Communication Services  Partial    Partial  
A. Postal Services  .. Same  .. 
B. Courier Services  .. Same  .. 
C. Telecommunication Services  Partial  Improved  Partial  
D. Audiovisual Services  .. Same  .. 
E. Other  .. Same  .. 
3. Construction and Related Engineering Services  ..   Partial  
A. General Construction Work for Building  .. New Partial  
B. General Construction work for Civil Engineering  .. New Partial  
C. Installation and Assembly Work  .. New Partial  
D. Building Completion and Finishing Work  .. New Partial  
E. Other  .. New Partial  
4. Distribution Services  ..   .. 
A. Commission  Agents' Services  .. Same  .. 
B. Wholesale Trade Services  .. Same  .. 
C. Retailing Services  .. Same  .. 
D. Franchising  .. Same  .. 
E. Other  .. Same  .. 
5. Educational Services  ..   .. 
A. Primary Education Services  .. Same  .. 
B. Secondary Education Servic es .. Same  .. 
C. Higher Education Services  .. Same  .. 
D. Adult Education  .. Same  .. 
E. Other Education Services  .. Same  .. 
6. Environmental Services  ..   .. 
A. Sewage Services  .. Same  .. 
B. Refuse Disposal Services  .. Same  .. 
C. Sanitation and Simil ar Services  .. Same  .. 
D. Other  .. Same  .. 
7. Financial Services  Partial    Partial  
A. All Insurance and Insurance -related Services  Partial  Same  Partial  
B. Banking and Other Financial Services  .. Same  .. 
                                                
14 For voice ma il services, there are no limitations to market access through mode 1 except that service 
providers must use the public telecom network under the control of the Government National Telecom 
Authority.  
15 Construction services related to mining are excluded.  WT/REG287/1  
 
- 21 - 
 
 
 Sectors  GATS  As compared to GATS  RTA 
C. Other  .. Same  .. 
8. Health Related and Socia l Services  ..   .. 
A. Hospital Services  .. Same  .. 
B. Other Human Health Services  .. Same  .. 
C. Social Services  .. Same  .. 
D. Other  ..   .. 
9. Tourism and Travel Related Services  ..   Partial  
A. Hotels and Restaurants (including catering)  .. New Partial 
B. Travel Agencies and Tour Operators Services  .. Same  .. 
C. Tourist Guides Services  .. Same  .. 
D. Other  .. Same  .. 
10. Recreational, Cultural and Sporting Services  ..   .. 
A. Entertainment Services  .. Same  .. 
B. News Agency Services  .. Same  .. 
C. Libraries, archives, museums and other cultural services  .. Same  .. 
D. Sporting and Other Recreational Services  .. Same  .. 
E. Other  ..   .. 
11. Transport Services  Partial    Partial  
A. Maritime Transport Services  .. New Partial  
B. Internal Waterway s Transport  .. Same  .. 
C. Air Transport Services  Partial  Improved  Partial  
D. Space Transport  .. Same  .. 
E. Rail Transport Services  .. Same  .. 
F. Road Transport Services  .. Same  .. 
G. Pipeline Transport  .. Same  .. 
H. Services Auxiliary to All Modes of  Transport  .. Same  .. 
I. Other Transport Services  .. Same  .. 
12. Other Services not Included Elsewhere  .. Same  .. 
General Note:  MFN and Horizontal limitations, as well as Mode 4 commitments/limitations not included . 
Partial:  Specific commitments subjec t to some limitation(s) under market access or national treatment, 
under any of the three modes.  
..: No specific commitment.  
Improved:  Overall improved commitments made under the Agreement.  
Same:  Same commitments as under the GATS.  
New: New commitments un der the Agreement; full or partial, with or without limitations, which can, in 
most but not all cases, be seen as "improved".  
Source:  Draft Consolidated GATS Schedule of Specific Commitments (S/DCS/W/ BRN), prepared by the 
Secretariat (in 2003) and Brunei 's Schedules annexed to the Agreement.  
3.4.2.2   Cambodia   
3.4.2.2.1   Horizontal commitments  
3.29.   Cambodia's services schedule under the Agreement is identical to that under the GATS  and 
it contains horizontal commitment and/or limitations in relation to  subsidies, tax measures, land  
ownership, acquired rights and investment incentives. The horizontal section of the schedule also 
contains mode 4 commitments for intra -corporate transferees (executives, managers, and 
specialists), business visitors, and persons responsible for setting u p a commercial presence.  
3.4.2.2.2   Sector -specific commitments  
3.30.   Cambodia's schedule under the Agreement reproduces its GATS schedule in its entirety for 
each sector and subsector for which Cambodia has partial commitment in the GATS, as 
summarized in Table 3.3.16 The Table should also be read in conjunction with its Schedule of 
specific commitments. Cambodia's c ommitments under the Agreement apply to Korea as well as to 
other ASEAN member states . 
                                                
16 Note that Cambodia does not take any commitment in market access and national treatment for 
international maritime transport services (both freight and passenger) excluding cabotage. However, the 
sectors are partially covered since additional commitments  state that no measures shall be applied which deny 
reasonable and non -discriminatory access to auxiliary services such as towing, emergency repair, etc.  WT/REG287/1  
 
- 22 - 
 
 
 Table 3.3 Cambodia : compar ison between the GATS and Agreement specific 
commitments in trade in services (excluding mode 4)  
Sectors  GATS  As compared to GATS  RTA 
1. Business services  Partial    Partial  
A. Professional Services  Partial  Same  Partial  
B. Computer and Related Services  Full Same  Full 
C. Research and Development Services  .. Same  .. 
D. Real Estate Services  .. Same  .. 
E. Rental/Leasing Services without Operators  Partial  Same  Partial  
F. Other Business Services  Partial  Same  Partial  
2. Communication Services  Partial    Partial 
A. Postal Services  .. Same  .. 
B. Courier Services  full Same  full 
C. Telecommunication Services  Partial  Same  Partial  
D. Audiovisual Services  .. Same  .. 
E. Other  .. Same  .. 
3. Construction and Related Engineering Services  Partial    Partial  
A. Ge neral Construction Work for Building  partial  Same  partial  
B. General Construction work for Civil Engineering  partial  Same  partial  
C. Installation and Assembly Work  partial  Same  partial  
D. Building Completion and Finishing Work  partial  Same  partial  
E. Other partial  Same  partial  
4. Distribution Services  Partial    Partial  
A. Commission Agents' Services  full Same  full 
B. Wholesale Trade Services  partial  Same  partial  
C. Retailing Services  partial  Same  partial  
D. Franchising  full Same  full 
E. Other  partial Same  partial  
5. Educational Services  Partial    Partial  
A. Primary Education Services  .. Same  .. 
B. Secondary Education Services  .. Same  .. 
C. Higher Education Services  full Same  full 
D. Adult Education  full Same  full 
E. Other Education Services  full Same  full 
6. Environmental Services  Full Same  Full 
A. Sewage Services  full   full 
B. Refuse Disposal Services  full Same  full 
C. Sanitation and Similar Services  full Same  full 
D. Other  full Same  full 
7. Financial Services  Partial    Partial  
A. All Insurance and Insurance -related Services  Partial  Same  Partial  
B. Banking and Other Financial Services  Partial  Same  Partial  
C. Other  .. Same  .. 
8. Health Related and Social Services  Partial    Partial  
A. Hospital Services  partial  Same  partial  
B. Other Human Health Services  .. Same  .. 
C. Social Services  .. Same  .. 
D. Other  .. Same  .. 
9. Tourism and Travel Related Services  Partial    Partial  
A. Hotels and Restaurants (including catering)  partial  Same  partial  
B. Travel Agencies and Tour Operators Servi ces partial  Same  partial  
C. Tourist Guides Services  full Same  full 
D. Other  .. Same  .. 
10. Recreational, Cultural and Sporting Services  Partial    Partial  
A. Entertainment Services  partial  Same  partial  
B. News Agency Services  .. Same  .. 
C. Libraries,  archives, museums and other cultural services  .. Same  .. 
D. Sporting and Other Recreational Services  .. Same  .. 
E. Other  .. Same  .. 
11. Transport Services  Partial    Partial  
A. Maritime Transport Services  Partial  Same  Partial  
B. Internal Waterways Tra nsport  .. Same  .. 
C. Air Transport Services  Partial  Same  Partial  
D. Space Transport  .. Same  .. 
E. Rail Transport Services  .. Same  .. 
F. Road Transport Services  Full Same  Full 
G. Pipeline Transport  Partial  Same  Partial  
H. Services Auxiliary to All Mod es of Transport  .. Same  .. WT/REG287/1  
 
- 23 - 
 
 
 Sectors  GATS  As compared to GATS  RTA 
I. Other Transport Services  .. Same  .. 
12. Other Services not Included Elsewhere  .. Same  .. 
General Note:  MFN and Horizontal limitations, as well as Mode 4 commitments/limitations not included . 
Partial:  Specific commitments s ubject to some limitation(s) under market access or national treatment, 
under any of the three modes.  
Full: Specific commitments not subject to limitation(s) under market access or national treatment, under 
any of the three modes.  
..: No specific commitmen t. 
Same:  Same commitments as under the GATS.  
Source:  GATS Schedule of Specific Commitments ( GATS/SC/140 ) and Cambodia 's Schedules annexed to the 
Agreement.  
 
3.4.2.3   Indonesia   
3.4.2.3.1   Horizontal commitments  
3.31.   Indonesia 's horizontal services schedule under the Agreement is identical to that under the 
GATS.   
3.4.2.3.2   Sector -specific commitments  
3.32.   Table 3.4 summarizes the commitments under the Agreement as compared to the 
commitments under the GATS  and it should also be read in conjunction with its Schedule of 
specific commitments.  Indonesia's c ommitments under the Agreement apply to Korea as well as to 
other ASEAN member states . 
3.33.   Improvements in business services are due to increased coverage with the inclusion of, for 
example , legal services, engineering design,  and database services , or elimination of all limitations 
for modes 1 and 2 (e.g. in architectural, engineering and software implementation services). The 
coverage of communication services is the same as under the GATS but limitations on national 
treatmen t (and sometimes on market access) tend to be eliminated for modes 1 and 2. New 
commitments cover e ducational, health  and air transport services. The Agreement eliminates all 
limitations in modes 1 and 2 for some secondary , adult and other  education servic es but 
commercial presence is permitted only through an education institution  which is registered in 
Indonesia and must meet some specific  conditions such as mutual recognition of program mes and 
certifications, partnership with local partners and registrat ion at the Ministry of Education.  The 
Agreement also covers some hospital services with limitations in mode 3 regarding, among others, 
the transfer of knowledge, the nationality of health professionals and approval requirements.  
Regarding air transport ser vices, there are no limitations for aircraft repair and maintenance, 
computer reservation system, and selling and marketing services with the exception of the 
requirement of the establishment of joint ventures with a maximum  limit of 49% of foreign equity .  
Table 3.4 Indonesia : comparison between the GATS and Agreement specific 
commitments in trade in services (excluding mode 4)  
Sectors  GATS  As compared to GATS  RTA 
1. Business services     
A. Professional Se rvices  Partial  Improved  Partial  
B. Computer and Related Services  Partial  Improved  Partial  
C. Research and Development Services  Partial  Improved  Partial  
D. Real Estate Services  .. Same  .. 
E. Rental/Leasing Services without Operators  .. New Partial  
F. Other Business Services  Partial  Improved  Partial  
2. Communication Services     
A. Postal Services  .. Same  .. 
B. Courier Services  .. Same  .. 
C. Telecommunication Services  Partial  Improved  Partial  
D. Audiovisual Services  .. Same  .. 
E. Other  .. Same  .. 
3. Construction and Related Engineering Services     
A. General Construction Work for Building  partial  Improved  partial  WT/REG287/1  
 
- 24 - 
 
 
 Sectors  GATS  As compared to GATS  RTA 
B. General Construction work for Civil Engineering  partial  Improved  partial  
C. Installation and Assembly Work  partial  Improved  partial  
D. Building Completion and Finishing Work  .. New partial  
E. Other  partial  Improved  partial  
4. Distribution Services  ..   .. 
A. Commission Agents' Services  .. Same  .. 
B. Wholesale Trade Services  .. Same  .. 
C. Retailing Services  .. Same  .. 
D. Franchis ing .. Same  .. 
E. Other  .. Same  .. 
5. Educational Services     
A. Primary Education Services  .. Same  .. 
B. Secondary Education Services  .. New partial  
C. Higher Education Services  .. New partial  
D. Adult Education  .. New partial  
E. Other Education Se rvices  .. New partial  
6. Environmental Services     
A. Sewage Services  .. Same  .. 
B. Refuse Disposal Services  .. Same  .. 
C. Sanitation and Similar Services  .. Same  .. 
D. Other  .. Same  .. 
7. Financial Services     
A. All Insurance and Insurance -related  Services  Partial  Same  Partial  
B. Banking and Other Financial Services  Partial  Improved  Partial  
C. Other  .. Same  .. 
8. Health Related and Social Services     
A. Hospital Services  .. New partial  
B. Other Human Health Services  .. Same  .. 
C. Social Servi ces .. Same  .. 
D. Other  .. Same  .. 
9. Tourism and Travel Related Services     
A. Hotels and Restaurants (including catering)  partial  Improved  partial  
B. Travel Agencies and Tour Operators Services  partial  Same  partial  
C. Tourist Guides Services  .. Same  .. 
D. Other  partial  Same  partial  
10. Recreational, Cultural and Sporting Services     
A. Entertainment Services  .. Same  .. 
B. News Agency Services  .. Same  .. 
C. Libraries, archives, museums and other cultural services  .. Same  .. 
D. Sporting and Othe r Recreational Services  partial  Same  partial  
E. Other  .. Same  .. 
11. Transport Services     
A. Maritime Transport Services  Partial  Similar  Partial  
B. Internal Waterways Transport  .. Same  .. 
C. Air Transport Services  .. New Partial  
D. Space Transport  .. Same  .. 
E. Rail Transport Services  .. Same  .. 
F. Road Transport Services  .. Same  .. 
G. Pipeline Transport  .. Same  .. 
H. Services Auxiliary to All Modes of Transport  .. New Partial  
I. Other Transport Services  .. Same  .. 
12. Other Services not Includ ed Elsewhere  .. Same  .. 
General Note:  MFN and Horizontal limitations, as well as Mode 4 commitments/limitations not included . 
Partial:  Specific commitments subject to some limitation(s) under market access or national treatment, 
under any of the three mo des. 
..: No specific commitment.  
Improved: Overall improved commitments under the Agreement compared to the GATS.  
Similar:  Similar commitments as in the GATS; though possibly, in individual cases, with limited 
improvements and/or limited additional reserva tions.  
Same:  Same commitments as under the GATS.  
New: New commitments under the Agreement compared to the GATS; full or partial, with or without 
limitations, which can, in most cases, be seen as "improved".  
Source:  Draft Consolidated GATS Schedule of Specific Commitments (S/DCS/W/I DN), prepared by the 
Secretariat (in 2003) and Indonesia 's Schedules annexed to the Agreement.  WT/REG287/1  
 
- 25 - 
 
 
 3.4.2.4   Lao PDR   
3.4.2.4.1   Horizontal commitments  
3.34.   Under the GATS, Lao PDR's Schedule contains horizontal commitment s and/or limitations 
essentially for land ownership, subsidies and investment incentives, commercial presence and the 
movement of natural persons providing services. These commitments on land ownership , and 
subsidies and investment incentives are reiterated under the Agreement. Limitations on  
commercial presence under the Agreement are similar to those in the GATS but measures related 
to publicly funded services are unbound and NGOs are not covered. Mode 4 commitments are 
similar to those under the GATS but the share of foreign natural persons  of any establishment is 
reduced to 10 % and the temporary stay of services sales persons is subject to a shorter maximum 
duration of 30 days . 
3.4.2.4.2   Sector -specific commitments  
3.35.   Table 3.5 summarizes the commitments under the Agreement as compared to the 
commitments under the GATS. It  should also be read in conjunction with  the Schedule of specific 
commitments.  Lao PDR's commitments under the Agreement apply to Korea as well as to other 
ASEAN member states . 
3.36.   The coverage of business services  in the RTA is lower than in the GATS  since the Agreement 
does not cover  legal, accounting, auditing, taxation consulting and integrated engineering services,  
computer and related services, research and development , and some other business services . The 
commitments for construction services under the Agreement are different from the GATS: 
limitations in mode 1  are unbound  in the  GATS whereas there are  no limitations under the 
Agreement ; limitations to market access in mode 3 require a joint venture (instead  of a foreign 
equity limit of 70%  under the GATS ) and national treatment is unbound while there are no 
limitations  under the GATS . Fewer secondary education services are covered but the limitations 
are less restrictive. The coverage of environmental servic es is lower under the Agreement and 
limitations are added in mode 3. Also the coverage of the banking sector is lower and there are 
differences in terms of limitations. There is a wider coverage of hotels and restaurants but 
limitations on national treatme nt in mode 3 are unbound under the Agreement while there are 
none under the GATS.  
Table 3.5 Lao PDR : comparison between the GATS and Agreement specific commitments 
in trade in services (excluding mode 4)  
Secto rs  GATS  As compared to GATS  RTA 
1. Business services  Partial    Partial  
A. Professional Services  Partial  Less Partial  
B. Computer and Related Services  Full Less .. 
C. Research and Development Services  Partial  Less .. 
D. Real Estate Services  .. Same  .. 
E. Rental/Leasing Services without Operators  .. Same  .. 
F. Other Business Services  Partial  Less Partial  
2. Communication Services  Partial    .. 
A. Postal Services  .. Same  .. 
B. Courier Services  Partial Less .. 
C. Telecommunication Services  Partial  Less .. 
D. Audiovisual Services  .. Same  .. 
E. Other  .. Same  .. 
3. Construction and Related Engineering Services  Partial    Partial  
A. General Construction Work for Building  Partial Different  partial  
B. General Construction work for Civil Engineering  Partial Different  partial  
C. Installation and Assembly Work  Partial Different  partial  
D. Building Completion and Finishing Work  Partial Different  partial  
E. Other  Partial Different  partial  
4. Distribution Services  Partial    .. 
A. Commission Agents' Servi ces .. Same  .. 
B. Wholesale Trade Services  Partial Less .. 
C. Retailing Services  Partial Less .. 
D. Franchising  Partial Less .. 
E. Other  .. Same  .. WT/REG287/1  
 
- 26 - 
 
 
 Secto rs  GATS  As compared to GATS  RTA 
5. Educational Services  Partial    Partial  
A. Primary Education Services  Partial Less .. 
B. Secondary Education Services  Partial Different  partial  
C. Higher Education Services  Partial Improved  partial  
D. Adult Education  Partial Less .. 
E. Other Education Services  Partial Less .. 
6. Environmental Services  Partial    Partial  
A. Sewage Services  Partial Less partial  
B. Refuse Disposal Services  Partial Less partial  
C. Sanitation and Similar Services  Partial Less partial  
D. Other  Partial Less partial  
7. Financial Services  Partial    Partial  
A. All Insurance and Insurance -related Services  Partial  Less .. 
B. Banking and Other Financial Services  Partial  Different  Partial  
C. Other  .. Less .. 
8. Health Related and Social Services  Partial    .. 
A. Hospital Services  Partial Less .. 
B. Other Human Health Services  .. Same  .. 
C. Social Services  .. Same  .. 
D. Other .. Same  .. 
9. Tourism and Travel Related Services  Partial    Partial  
A. Hotels and Restaurants (including catering)  Partial Improved  partial  
B. Travel Agencies and Tour Operators Services  Partial Less .. 
C. Tourist Guides Services  .. Same  .. 
D. Ot her Partial Less .. 
10. Recreational, Cultural and Sporting Services  ..   .. 
A. Entertainment Services  .. Same  .. 
B. News Agency Services  .. Same  .. 
C. Libraries, archives, museums and other cultural services  .. Same  .. 
D. Sporting and Other Recreati onal Services  .. Same  .. 
E. Other  .. Same  .. 
11. Transport Services  Partial    .. 
A. Maritime Transport Services  .. Same  .. 
B. Internal Waterways Transport  .. Same  .. 
C. Air Transport Services  Partial  Less .. 
D. Space Transport  .. Same  .. 
E. Rail Tra nsport Services  .. Same  .. 
F. Road Transport Services  .. Same  .. 
G. Pipeline Transport  .. Same  .. 
H. Services Auxiliary to All Modes of Transport  .. Same  .. 
I. Other Transport Services  .. Same  .. 
12. Other Services not Included Elsewhere  .. Same  .. 
General Note:  MFN and Horizontal limitations, as well as Mode 4 commitments/limitations not included . 
Partial:  Specific commitments subject to some limitation(s) under market access or national treatment, 
under any of the three modes.  
..: No specific commi tment.  
Improved: Overall improved commitments under the Agreement compared to the GATS.  
Same:  Same commitments as in the GATS.  
Different:  Different commitments as in the GATS.  
Less: Lower coverage (compared to the GATS), including exclusion of  a whole sec tor or subsector.  
Source:  Schedule of Specific Commitments ( GATS/SC/150 ) and Lao PDR 's Schedules annexed to the 
Agreement.  
 
3.4.2.5   Malaysia   
3.4.2.5.1   Horizontal commitments  
3.37.   As under the GATS, Malaysia's schedule under the Agreement contains horizontal 
restrictions on comm ercial presence in relation to acquisition, mergers and takeovers (limitations 
on market access)  with an improvement in terms of the value for aggregate foreign interest from 
RM5 million to RM10 million ; on land -property and real estate; and incentives/pre ferences 
(limitations on national treatment). Horizontal commitments under mode 4, identical to those  
under the GATS, cover intra -corporate transferees; and others (including specialists; professionals WT/REG287/1  
 
- 27 - 
 
 
 with academic credentials, professional qualifications , experience and/or expertise; and business 
visitors).  
3.4.2.5.2   Sector -specific commitments  
3.38.   Table 3.6 summarizes and compares Malaysia's commitments under the GATS  and under 
the Agreement. It should also be read in conjunction with its Sch edule of specific commitments.  
Malaysia's c ommitments under the Agreement apply to Korea as well as to other ASEAN member 
states . 
3.39.   In its schedule of specific commitments under the Agreement, Malaysia include s new 
commitments in wholesale and retail service s (no limitations for mode 2; limitations in terms of 
legal entity, equity structure and capital requirements for commercial presence) , education 
(no limitations on market access for mode 2; joint venture with foreign equity below 50% and 
needs test requir ements for mode 3) and transport. The Agreement removes any limitation in 
modes 1 and 2 for transport services such as maritime passenger and freight transportation, 
maritime agency services, selling and marketing of air transport services, computer reserv ation 
system and aircraft repair and maintenance services. Additional improvements in terms  of market 
access or national treatment are taken in research and development services, telecommunication 
and maritime transport.  The improvements of limitations in these services stem from the increase 
in the threshold for foreign equity in joint -ventures.17 The Agreement includes commitments on 
several banking services similar to those under the GATS with some improvements in terms of 
higher shares of shareholding by  foreign -controlled commercial banks (for example for financial 
leasing ) or the removal of limitations on market access for mode 2 (for example for acceptance of 
deposits and all payment and money transmission services).  Full liberalization in consultancy 
services related to the installation of computer, software implementation, data processing and data 
base services is reached under the Agreement . However audiovisual and hospital services are not 
included in the Agreement, even though they are in Malaysia' s GATS Schedule .18 
Table 3.6 Malaysia : comparison between the GATS and Agreement specific commitments 
in trade in services (excluding mode 4)  
Sectors  GATS  As compared to GATS  RTA 
1. Business services  Partial    Partial  
A. Professional Services  Partial  Similar  Partial  
B. Computer and Related Services  Partial  Improved  Partial  
C. Research and Development Services  Partial  Improved  Partial  
D. Real Estate Services  .. Same  .. 
E. Rental/Leasing Services without O perators  Partial  Same  Partial  
F. Other Business Services  Partial  Same  Partial  
2. Communication Services  Partial    Partial  
A. Postal Services  .. Same  .. 
B. Courier Services  .. Same  .. 
C. Telecommunication Services  Partial  Improved  Partial  
D. Audiovisu al Services  Partial  Less .. 
E. Other  .. Same  .. 
3. Construction and Related Engineering Services  Partial    Partial  
A. General Construction Work for Building  partial  Same  partial  
B. General Construction work for Civil Engineering  partial  Same  partial  
C. Installation and Assembly Work  partial  Same  partial  
D. Building Completion and Finishing Work  partial  Same  partial  
E. Other  partial  Same  partial  
4. Distribution Services  ..   Partial  
A. Commission Agents' Services  .. Same  .. 
B. Wholesale Trade Servi ces .. New partial  
C. Retailing Services  .. New partial  
D. Franchising  .. Same  .. 
E. Other  .. Same  .. 
5. Educational Services  ..   Partial  
                                                
17 The threshold for R&D services under the Agreement is 35% compared to 30% under the GATS. The 
thresh olds for both telecommunication and maritime transport services increase from 30% under the GATS to 
49% under the Agreement.  
18 Computer and related services in the table are marked as partial since Malaysia did not take any 
commitment in the "Other" catego ry of services included in the sector (CPC coded 845 and 849).  WT/REG287/1  
 
- 28 - 
 
 
 Sectors  GATS  As compared to GATS  RTA 
A. Primary Education Services  .. Same  .. 
B. Secondary Education Services  .. Same  .. 
C. Higher Education Servic es .. New partial  
D. Adult Education  .. New partial  
E. Other Education Services  .. Same  .. 
6. Environmental Services  ..   .. 
A. Sewage Services  .. Same  .. 
B. Refuse Disposal Services  .. Same  .. 
C. Sanitation and Similar Services  .. Same  .. 
D. Other  .. Same  .. 
7. Financial Services  Partial    Partial  
A. All Insurance and Insurance -related Services  Partial  Similar  Partial  
B. Banking and Other Financial Services  Partial  Improved  Partial  
C. Other  .. Same  .. 
8. Health Related and Social Services  Partial   .. 
A. Hospital Services  partial  Less .. 
B. Other Human Health Services  .. Same  .. 
C. Social Services  .. Same  .. 
D. Other  .. Same  .. 
9. Tourism and Travel Related Services  Partial    Partial  
A. Hotels and Restaurants (including catering)  partial  Similar  partial  
B. Travel Agencies and Tour Operators Services  partial  Similar  partial  
C. Tourist Guides Services  .. Same  .. 
D. Other  .. Same  .. 
10. Recreational, Cultural and Sporting Services  Partial    Partial  
A. Entertainment Services  partial  Similar partial  
B. News Agency Services  .. Same  .. 
C. Libraries, archives, museums and other cultural services  .. Same  .. 
D. Sporting and Other Recreational Services  partial  Same  partial  
E. Other  .. Same  .. 
11. Transport Services  Partial    Partial  
A. Mari time Transport Services  Partial  Improved  Partial  
B. Internal Waterways Transport  .. Same  .. 
C. Air Transport Services  .. New Partial  
D. Space Transport  .. Same  .. 
E. Rail Transport Services  .. Same  .. 
F. Road Transport Services  .. Same  .. 
G. Pipeline  Transport  .. Same  .. 
H. Services Auxiliary to All Modes of Transport  .. New Partial  
I. Other Transport Services  .. Same  .. 
12. Other Services not Included Elsewhere  partial  Same  partial  
General Note:  MFN and Horizontal limitations, as well as Mode 4 c ommitments/limitations not included . 
Partial:  Specific commitments subject to some limitation(s) under market access or national treatment, 
under any of the three modes.  
..: No specific commitment.  
Improved: Overall improved commitments under the Agreemen t compared to the GATS.  
Similar:  Similar commitments as in the  GATS; though possibly, in individual cases, with limited 
improvements and/or limited additional reservations.  
Same:  Same commitments as in the  GATS.  
Less: Lower coverage compared  to the GATS, including exclusion in cases of a whole sector or subsector.  
 
Source:  Draft Consolidated GATS Schedule of Specific Commitments (S/DCS/W/ MYS), prepared by the 
Secretariat (in 2003) and Malaysia 's Schedules annexed to the Agreement.  
 
3.4.2.6   Myanmar   
3.4.2.6.1   Horizontal comm itments  
3.40.   As under the GATS, Myanmar does not have any horizontal commitments though sector 
specific commitments were limited to few subsectors.  WT/REG287/1  
 
- 29 - 
 
 
 3.4.2.6.2   Sector -specific commitments  
3.41.   Table 3.7 summarizes the commitments under the Agreement as  compared to the 
commitments under the GATS . It should also be read in conjunction with its Schedule of specific 
commitments.  Myanmar's c ommitments under the Agreement apply to Korea as well as to other 
ASEAN member states . 
3.42.   Under the GATS, Myanmar only mad e partial commitments in some subsectors under 
tourism and travel related services (hotels, and travel agencies and tour operator services) and 
tourist transport  by road or water . However , only commitments for maritime international 
passenger transport ser vices are reiterated under the Agreement. The coverage of specific 
commitments is expanded under the Agreement, as compared to Myanmar's GATS commitments. 
In particular, partial commitments are made for some professional services (accounting, auditing 
and bookkeeping ser vices and engineering services) and  other business services ( namely 
translation and interpretation services ). Partial commitments, particularly in relation to modes 1 
and 2, are also made for communication services,  financial services , some audiovisual services , 
construction work for civil engineering services and some transport services (certain maritime 
transport services, and  some air transport services). At the same time, there are no commitments 
on internal waterways and road transport s ervices under the Agreement.  
Table 3.7 Myanmar : comparison between the GATS and Agreement specific 
commitments in trade in services (excluding mode 4)  
Sectors  GATS  As compared to GATS  RTA 
1. Business servic es ..   Partial  
A. Professional Services  .. New Partial  
B. Computer and Related Services  .. Same  .. 
C. Research and Development Services  .. Same  .. 
D. Real Estate Services  .. Same  .. 
E. Rental/Leasing Services without Operators  .. Same  .. 
F. Other Bu siness Services  .. New Partial  
2. Communication Services  ..   Partial  
A. Postal Services  .. Same  .. 
B. Courier Services  .. Same  .. 
C. Telecommunication Services  .. New Partial  
D. Audiovisual Services  .. New Partial  
E. Other  .. Same  .. 
3. Constructio n and Related Engineering Services  ..   Partial  
A. General Construction Work for Building  .. Same  .. 
B. General Construction work for Civil Engineering  .. New partial  
C. Installation and Assembly Work  .. Same  .. 
D. Building Completion and Finishing Wor k .. Same  .. 
E. Other  .. Same  .. 
4. Distribution Services  ..   .. 
A. Commission Agents' Services  .. Same  .. 
B. Wholesale Trade Services  .. Same  .. 
C. Retailing Services  .. Same  .. 
D. Franchising  .. Same  .. 
E. Other  .. Same  .. 
5. Educational Service s ..   .. 
A. Primary Education Services  .. Same  .. 
B. Secondary Education Services  .. Same  .. 
C. Higher Education Services  .. Same  .. 
D. Adult Education  .. Same  .. 
E. Other Education Services  .. Same  .. 
6. Environmental Services  ..   .. 
A. Sewage Se rvices  .. Same  .. 
B. Refuse Disposal Services  .. Same  .. 
C. Sanitation and Similar Services  .. Same  .. 
D. Other  .. Same  .. 
7. Financial Services  ..   Partial  
A. All Insurance and Insurance -related Services  .. New Partial  
B. Banking and Other Financia l Services  .. Same  .. 
C. Other  .. New partial  
8. Health Related and Social Services  ..   .. 
A. Hospital Services  .. Same  .. WT/REG287/1  
 
- 30 - 
 
 
 Sectors  GATS  As compared to GATS  RTA 
B. Other Human Health Services  .. Same  .. 
C. Social Services  .. Same  .. 
D. Other  .. Same  .. 
9. Tourism and Travel Related Ser vices  Partial    .. 
A. Hotels and Restaurants (including catering)  partial  Less .. 
B. Travel Agencies and Tour Operators Services  partial  Less .. 
C. Tourist Guides Services  .. Same  .. 
D. Other  .. Same  .. 
10. Recreational, Cultural and Sporting Services   ..   .. 
A. Entertainment Services  .. Same  .. 
B. News Agency Services  .. Same  .. 
C. Libraries, archives, museums and other cultural services  .. Same  .. 
D. Sporting and Other Recreational Services  .. Same  .. 
E. Other  .. Same  .. 
11. Transport Services  Partial    Partial  
A. Maritime Transport Services  Partial  Improved  Partial  
B. Internal Waterways Transport  Partial  Less .. 
C. Air Transport Services  .. New Partial  
D. Space Transport  .. Same  .. 
E. Rail Transport Services  .. Same  .. 
F. Road Transport Services  Partial  Less .. 
G. Pipeline Transport  .. Same  .. 
H. Services Auxiliary to All Modes of Transport  .. New Partial  
I. Other Transport Services  .. Same  .. 
12. Other Services not Included Elsewhere  .. Same  .. 
General Note:  MFN and Horizontal limit ations, as well as Mode 4 commitments/limitations not included . 
Partial:  Specific commitments subject to some limitation(s) under market access or national treatment, 
under any of the three modes.  
..: No specific commitment.  
Improved: Overall improved com mitments under the Agreement compared to the GATS.  
Same:  Same commitments as in the GATS.  
Less: Lower coverage compared to the GATS, including exclusion of a whole sector or subsector.  
New: New commitments under the Agreement compared to the GATS; full or  partial, with or without 
limitations, which can, in most but not all cases, be seen as "improved".  
Source:  GATS Schedule of Specific Commitments ( GATS/SC/59)  and Myanmar 's Schedules annexed to the 
Agreement.  
 
3.4.2.7   Philippines   
3.4.2.7.1   Horizontal commitments  
3.43.   Under the GATS, 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 person in t he Philippines. Under the 
Agreement, the Philippines' horizontal commitments are similar as under the GATS, with the 
specification that all measures taken by local government units  and all measures governing 
permanent residents  are unbound . 
3.4.2.7.2   Sector -specific  commitments  
3.44.   Table 3.8 summarizes the commitments under the Agreement as compared to the 
commitments under the GATS . It should also be read in conjunction with its Schedule of specific 
commitments.  The Philippines's c ommitments under the Agreement apply to Korea as well as to 
other ASEAN member states . 
3.45.   The coverage under the Agreement is extended to some services such as other business 
services related to energy distribution, postal services, construction work for civil engineering , 
sewage services and pipeline transport. Commitments in these services are not full and limitations 
include thresholds for foreign equity participation and licensing requirements. Commitments on 
transport services are the same as in GATS for services cove red both in GATS and the Agreement. 
The Agreement improves the coverage of telecommunication  services with the inclusion of satellite WT/REG287/1  
 
- 31 - 
 
 
 services, data network and electronic message services . The Agreement also improves the 
commitments under the GATS  for insurance  services (e.g. higher threshold for acquisition and 
investment in voting stocks)  and some tourism services  (e.g. removal of all limitations in mode 1 
and of foreign equity limitations for accommodation facilities, and wider coverage of restaurant 
services) . Differences in commitments on banking are due to different limitations on market access 
in terms of establishment of foreign bank branches and the scope of operation.  
Table 3.8 Philippines : comparison  between the GATS and Agreement specific 
commitments in trade in services (excluding mode 4)  
Sectors  GATS  As compared to GATS  RTA 
1. Business services  Partial    Partial  
A. Professional Services  .. Same  .. 
B. Computer and Related Services  .. Same  .. 
C. Research and Development Services  .. Same  .. 
D. Real Estate Services  .. Same  .. 
E. Rental/Leasing Services without Operators  Partial  Same  Partial  
F. Other Business Services  .. New Partial  
2. Communication Services  Partial    Partial  
A. Postal Service s .. New partial  
B. Courier Services  partial  Less partial  
C. Telecommunication Services  Partial  Improved  Partial  
D. Audiovisual Services  .. Same  .. 
E. Other  .. Same  .. 
3. Construction and Related Engineering Services  ..   Partial  
A. General Construct ion Work for Building  .. Same  .. 
B. General Construction work for Civil Engineering  .. New partial  
C. Installation and Assembly Work  .. Same  .. 
D. Building Completion and Finishing Work  .. Same  .. 
E. Other  .. Same  .. 
4. Distribution Services  ..   .. 
A. Commission Agents' Services  .. Same  .. 
B. Wholesale Trade Services  .. Same  .. 
C. Retailing Services  .. Same  .. 
D. Franchising  .. Same  .. 
E. Other  .. Same  .. 
5. Educational Services  ..   .. 
A. Primary Education Services  .. Same  .. 
B. Secondary Edu cation Services  .. Same  .. 
C. Higher Education Services  .. Same  .. 
D. Adult Education  .. Same  .. 
E. Other Education Services  .. Same  .. 
6. Environmental Services  ..   Partial  
A. Sewage Services  .. New partial  
B. Refuse Disposal Services  .. Same  .. 
C. Sanitation and Similar Services  .. Same  .. 
D. Other  .. Same  .. 
7. Financial Services  Partial    Partial  
A. All Insurance and Insurance -related Services  Partial  Improved  Partial  
B. Banking and Other Financial Services  Partial  Similar  Partial  
C. Other  .. Same  .. 
8. Health Related and Social Services  ..   .. 
A. Hospital Services  .. Same  .. 
B. Other Human Health Services  .. Same  .. 
C. Social Services  .. Same  .. 
D. Other  .. Same  .. 
9. Tourism and Travel Related Services  Partial    Partial  
A. Hotels a nd Restaurants (including catering)  partial  Improved  partial  
B. Travel Agencies and Tour Operators Services  partial  Improved  partial  
C. Tourist Guides Services  .. Same  .. 
D. Other  partial  Improved  partial  
10. Recreational, Cultural and Sporting Service s  ..   .. 
A. Entertainment Services  .. Same  .. 
B. News Agency Services  .. Same  .. 
C. Libraries, archives, museums and other cultural services  .. Same  .. 
D. Sporting and Other Recreational Services  .. Same  .. 
E. Other  .. Same  .. WT/REG287/1  
 
- 32 - 
 
 
 Sectors  GATS  As compared to GATS  RTA 
11. Transport Service s Partial    Partial  
A. Maritime Transport Services  Partial  Same  Partial  
B. Internal Waterways Transport  .. Same  .. 
C. Air Transport Services  Partial  Same  Partial  
D. Space Transport  .. Same  .. 
E. Rail Transport Services  Partial  Same  Partial  
F. Road Tr ansport Services  Partial  Same  Partial  
G. Pipeline Transport  .. New Partial  
H. Services Auxiliary to All Modes of Transport  Partial  Same  Partial  
I. Other Transport Services  .. Same  .. 
12. Other Services not Included Elsewhere  .. Same  .. 
General Note:  MFN and Horizontal limitations, as well as Mode 4 commitments/limitations not included . 
Partial:  Specific commitments subject to some limitation(s) under market access or national treatment, 
under any of the three modes.  
..: No specific commitment.  
Improve d: Overall improved commitments under the Agreement compared  to the GATS.  
Same:  Same commitments as in the  GATS.  
Less: Lower coverage compared to the GATS, including exclusion in cases of a whole sector or subsector.  
New: New commitments under the Agreeme nt compared to the GATS; full or partial, with or without 
limitations, which can, in most but not all cases, be seen as "improved".  
Similar:  Similar commitments compared to the GATS; though possibly, in individual cases, with limited 
improvements and/or li mited additional reservations.  
 
Source:  Draft Consolidated GATS Schedule of Specific Commitments (S/DCS/W/PHL ), prepared by the 
Secretariat (in 2003) and Philippines 's Schedules annexed to the Agreement.  
 
3.4.2.8   Singapore   
3.4.2.8.1   Horizontal commitments  
3.46.   Horizontal commit ments under the Agreement, listed with respect to modes 3 and 4, are 
completely in line with Singapore's commitments under the GATS, where mode 4 commitments 
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 for an additional 3 years (compared 
to 3 plus 2 years in the GATS).  Also, the Agreement specifies that specific commitments in market 
access in any sector or subsector, through any mode of deliv ery, shall not override the limitations 
established in the financial services sector.  
3.4.2.8.2   Sector -specific commitments  
3.47.   Table 3.9 summarizes the commitments under the Agreement as compared to the 
commitments under the GATS . It should al so be read in conjunction with its Schedule of specific 
commitments.  Singapore's c ommitments under the Agreement apply to Korea as well as to other 
ASEAN member states . 
3.48.   The commitments under the Agreement cover a wider set of sectors such as real estate an d 
rental/leasing services, some distribution, educational and environmental services, health related 
and social services , and other services not included elsewhere. Also the coverage of professional, 
computer  and some  other business services is extended  through the inclusion of the full 
liberalization of services such as landscaping, software implementation, data processing, database 
services, management consulting services, some technical testing and analysis services, building 
cleaning, and photographic s ervices. The Agreement also adds international maritime passengers 
transport services to its commitments with the only limitation being  the registration of Singapore 
flag ships as specified in the Merchant Ship Act . The Agreement covers the same insurance and 
banking services as in the GATS and limitations are similar.19 The coverage of tourism and travel 
related services is the same as in the GATS but some commitments have been improved through 
the elimination of all limitations for tourist guide services  and of all limitations on market access 
for travel agent and tour operator services .  
                                                
19 The main difference between the Agreement and GATS is that while national treatment tends to have 
no limitations, the Agreement states that the measures on market access are also limitations on national 
treatment.  WT/REG287/1  
 
- 33 - 
 
 
 Table 3.9 Singapore : comparison between the GATS and Agreement specific 
commitments in trade in services (excluding mode 4)  
Sectors  GATS  As compared to GATS  RTA 
1. Business services  Partial    Partial  
A. Professional Services  Partial  Improved  Partial  
B. Computer and Related Services  Partial  Improved  Partial  
C. Research and Development Services  Partial  Improved  Partial  
D. Real Estate Services  .. New Partial  
E. Rental/Leasing Services without Operators  .. New Partial  
F. Other Business Services  Partial  Improved  Partial  
2. Communication Services  Partial    Partial  
A. Postal Services  .. Same  .. 
B. Courier Services  partial  Same partial  
C. Telecommunication Services  Partial  Improved  Partial  
D. Audiovisual Services  Partial  Same  Partial  
E. Other  .. Same  .. 
3. Construction and Related Engineering Services  Full   Full 
A. General Construction Work for Building  full Same  full 
B. General Construction work for Civil Engineering  full Same  full 
C. Installation and Assembly Work  full Same  full 
D. Building Completion and Finishing Work  full Same  full 
E. Other  full Same  full 
4. Distribution Services  ..   Partial  
A. Commission Age nts' Services  .. New partial  
B. Wholesale Trade Services  .. New partial  
C. Retailing Services  .. Same  .. 
D. Franchising  .. New full 
E. Other  .. Same  .. 
5. Educational Services  ..   Partial  
A. Primary Education Services  .. Same  .. 
B. Secondary Educat ion Services  .. Same  .. 
C. Higher Education Services  .. Same  .. 
D. Adult Education  .. New full 
E. Other Education Services  .. Same  .. 
6. Environmental Services  ..   Partial  
A. Sewage Services  .. Same  .. 
B. Refuse Disposal Services  .. Same  .. 
C. Sani tation and Similar Services  .. New partial  
D. Other  .. New partial  
7. Financial Services  Partial    Partial  
A. All Insurance and Insurance -related Services  Partial  Similar  Partial  
B. Banking and Other Financial Services  Partial  Similar  Partial  
C. Other  .. Same  .. 
8. Health Related and Social Services  ..   Partial  
A. Hospital Services  .. Same  .. 
B. Other Human Health Services  .. New partial  
C. Social Services  .. New partial  
D. Other  .. Same  .. 
9. Tourism and Travel Related Services  Partial    Partia l 
A. Hotels and Restaurants (including catering)  partial  Same  partial  
B. Travel Agencies and Tour Operators Services  partial  Improved  partial  
C. Tourist Guides Services  partial  Improved  full 
D. Other  .. Same  .. 
10. Recreational, Cultural and Sporting Services  Partial    Partial  
A. Entertainment Services  .. Same  .. 
B. News Agency Services  .. Same  .. 
C. Libraries, archives, museums and other cultural services  partial  Same  partial  
D. Sporting and Other Recreational Services  .. Same  .. 
E. Other  .. Same .. 
11. Transport Services  Partial    Partial  
A. Maritime Transport Services  Partial  Improved  Partial  
B. Internal Waterways Transport  .. Same  .. 
C. Air Transport Services  .. Same  .. 
D. Space Transport  .. Same  .. 
E. Rail Transport Services  .. Same  .. 
F. Road Transport Services  .. Same  .. 
G. Pipeline Transport  .. Same  .. 
H. Services Auxiliary to All Modes of Transport  .. Same  .. WT/REG287/1  
 
- 34 - 
 
 
 Sectors  GATS  As compared to GATS  RTA 
I. Other Transport Services  .. Same  .. 
12. Other Services not Included Elsewhere  .. New partial  
General Note:  MFN and Ho rizontal limitations, as well as Mode 4 commitments/limitations not included . 
Partial:  Specific commitments subject to some limitation(s) under market access or national treatment, 
under any of the three modes.  
..: No specific commitment.  
Improved: Overal l improved commitments under the Agreement compared to the GATS.  
Same:  Same commitments as in the  GATS.  
New: New commitments in the Agreement compared to the GATS; full or partial, with or without 
limitations, which can, in most but not all cases, be seen  as "improved".  
Similar:  Similar commitments compared  to the GATS; though possibly, in individual cases, with limited 
improvements and/or limited additional reservations.  
Source:  Draft Consolidated GATS Schedule of Specific Commitments (S/DCS/W/ SGP), prepa red by the 
Secretariat (in 2003) and Singapore 's Schedules annexed to the Agreement.  
3.4.2.9   Thailand   
3.4.2.9.1   Horizontal commitments  
3.49.   As in the GATS, Thailand limits foreign equity participation to 49% and  the share of foreign 
shareholders must be less than a half . Under the Agreement, all modes of supply  are unbound  for 
a service supplier of another Party who is a natural person of that Party but is not a national of 
that Party. Horizontal commitments related to the temporary movement  of natural persons in 
Thailand are ta ken for business visitors,  intra-corporate transferees  and contractual service 
suppliers . As under the GATS, Thailand also has horizontal limitation s related to the acquisition 
and usage of land.  
3.4.2.9.2   Sector -specific commitments  
3.50.   Table 3.10 summarizes the commitments under the Agreement as compared to the 
commitments under the GATS . It should also be read in conjunction with its Schedule of specific 
commitments.  Thailand's c ommitments under the Agreement apply to Korea as well as to othe r 
ASEAN member states . 
3.51.   The coverage under the Agreement builds on the GATS schedules covering a similar set of 
sectors with a few addition al sectors  such as  some computer related services,  assembly work, 
building completion and finishing work, other constr uction services, higher and other education , 
and some maritime transport supporting  services.  Cross -border supply of these services remains 
unbound under the Agreement while all limitations on consumption abroad and limitations on 
market access for commerc ial presence tend to be eliminated . Improvements in almost  all covered 
services generally stem from the elimination of the 49 % foreign equity participation limit in mode 
3. Commitments in rail transport services are improved by removing all limitations on market 
access and national treatment for the covered services.  
Table 3.10 Thailand : comparison between the GATS and Agreement specific 
commitments in trade in services (excluding mode 4)  
Sectors  GATS  As com pared to GATS  RTA 
1. Business services  Partial    Partial  
A. Professional Services  Partial  Improved  Partial  
B. Computer and Related Services  Partial  Improved  Partial  
C. Research and Development Services  .. Same  .. 
D. Real Estate Services  .. Same  .. 
E. Rental/Leasing Services without Operators  Partial  Improved  Partial  
F. Other Business Services  Partial  Improved  Partial  
2. Communication Services  Partial    Partial  
A. Postal Services  .. Same  .. 
B. Courier Services  .. Same  .. 
C. Telecommunication Servi ces Partial  Improved  Partial  
D. Audiovisual Services  Partial  Improved  Partial  
E. Other  ..   .. WT/REG287/1  
 
- 35 - 
 
 
 Sectors  GATS  As com pared to GATS  RTA 
3. Construction and Related Engineering Services  Partial    Partial  
A. General Construction Work for Building  partial  Improved  partial  
B. General Constructio n work for Civil Engineering  partial  Improved  partial  
C. Installation and Assembly Work  partial  Improved  partial  
D. Building Completion and Finishing Work  .. New partial  
E. Other  .. New partial  
4. Distribution Services  Partial    Partial  
A. Commission Agents' Services  partial  Improved  partial  
B. Wholesale Trade Services  .. Same  .. 
C. Retailing Services  .. Same  .. 
D. Franchising  .. Same  .. 
E. Other  .. Same  .. 
5. Educational Services  Partial    Partial  
A. Primary Education Services  partial  Improved  partial 
B. Secondary Education Services  partial  Improved  partial  
C. Higher Education Services  .. New partial  
D. Adult Education  partial  Improved  partial  
E. Other Education Services  .. New partial  
6. Environmental Services  Partial    Partial  
A. Sewage S ervices  partial  Improved  partial  
B. Refuse Disposal Services  partial  Improved  partial  
C. Sanitation and Similar Services  partial  Improved  partial  
D. Other  partial  Improved  partial  
7. Financial Services  Partial    Partial  
A. All Insurance and Insurance -related Services  Partial  Same  Partial  
B. Banking and Other Financial Services  Partial  Same  Partial  
C. Other  .. Same  .. 
8. Health Related and Social Services  ..   .. 
A. Hospital Services  .. Same  .. 
B. Other Human Health Services  .. Same  .. 
C. Social S ervices  .. Same  .. 
D. Other  .. Same  .. 
9. Tourism and Travel Related Services  Partial    Partial  
A. Hotels and Restaurants (including catering)  partial  Improved  partial  
B. Travel Agencies and Tour Operators Services  partial  Improved  partial  
C. Tourist Guides Services  .. Same  .. 
D. Other  partial  Improved  partial  
10. Recreational, Cultural and Sporting Services  Partial    Partial  
A. Entertainment Services  .. Same  .. 
B. News Agency Services  .. Same  .. 
C. Libraries, archives, museums and other cultural  services  .. Same  .. 
D. Sporting and Other Recreational Services  partial  Improved  partial  
E. Other  .. Same  .. 
11. Transport Services  Partial    Partial  
A. Maritime Transport Services  Partial  Improved  Partial  
B. Internal Waterways Transport  .. Same  .. 
C. Air Transport Services  Partial  Improved  Partial  
D. Space Transport  .. Same  .. 
E. Rail Transport Services  Partial  Improved  Partial  
F. Road Transport Services  Partial  Improved  Partial  
G. Pipeline Transport  .. Same  .. 
H. Services Auxiliary to All Mode s of Transport  Partial  Improved  Partial  
I. Other Transport Services  .. Same  .. 
12. Other Services not Included Elsewhere  .. Same  .. 
General Note:  MFN and Horizontal limitations, as well as Mode 4 commitments/limitations not included . 
Partial:  Specific commitments subject to some limitation(s) under market access or national treatment, 
under any of the three modes.  
..: No specific commitment s. 
Improved: Overall improved commitments under the Agreement compared to the GATS.  
Same:  Same commitments as unde r the GATS.  
New: New commitments under the Agreement compared to the GATS; full or partial, with or without 
limitations, which can, in most but not all cases, be seen as "improved".  
Source:  Draft Consolidated GATS Schedule of Specific Commitments (S/DCS/W/ THA/Rev.1 ), prepared by the 
Secretariat (in 2003) and Thailand 's Schedules annexed to the Agreement.  WT/REG287/1  
 
- 36 - 
 
 
 3.4.2.10   Viet Nam   
3.4.2.10.1   Horizontal commitments  
3.52.   Vietnam 's services schedule under the Agreement is identical to that under the GATS. 
Among other horizontal limitations,  the establishment of a branch  remains unbound  unless 
otherwise indicated in each specific sector or subsector . The horizontal section of the schedule 
contains mode 4 commitments for intra -corporate transferees, service sales persons, persons 
responsible for  setting up a commercial presence, contractual service suppliers, and other 
personnel.   
3.4.2.10.2   Sector -specific commitments  
3.53.   Table 3.11 summarizes the commitments under the Agreement as compared to the 
commitments under the GATS . It should  also be read in conjunction with its Schedule of specific 
commitments.  Viet Nam's c ommitments under the Agreement apply to Korea as well as to other 
ASEAN member states . 
3.54.   Viet Nam's commitments under the Agreement are almost the same a s under the GATS . 
The only difference is the absence of coverage of storage and  warehouse services (CPC 742) and 
freight transport agency services ( CPC 748) under the Agreement .  
Table 3.11 Viet Nam : comparison between the GATS an d Agreement specific 
commitments in trade in services (excluding mode 4)  
Sectors  GATS  As compared to GATS  RTA 
1. Business services  Partial    Partial  
A. Professional Services  Partial  Same  Partial  
B. Computer and Related Services  Partial  Same  Partial  
C. Research and Development Services  Partial  Same  Partial  
D. Real Estate Services  .. Same  .. 
E. Rental/Leasing Services without Operators  Partial  Same  Partial  
F. Other Business Services  Partial  Same  Partial  
2. Communication Services  Partial    Partial  
A. Postal Services  .. Same  .. 
B. Courier Services  partial  Same  partial  
C. Telecommunication Services  Partial  Same  Partial  
D. Audiovisual Services  Partial  Same  Partial  
E. Other  .. Same  .. 
3. Construction and Related Engineering Services  Partial    Partia l 
A. General Construction Work for Building  partial  Same  partial  
B. General Construction work for Civil Engineering  partial  Same  partial  
C. Installation and Assembly Work  partial  Same  partial  
D. Building Completion and Finishing Work  partial  Same  partial 
E. Other  partial  Same  partial  
4. Distribution Services  Partial    Partial  
A. Commission Agents' Services  partial  Same  partial  
B. Wholesale Trade Services  partial  Same  partial  
C. Retailing Services  partial  Same  partial  
D. Franchising  partial  Same  partial 
E. Other  .. Same  .. 
5. Educational Services  Partial    Partial  
A. Primary Education Services  .. Same  .. 
B. Secondary Education Services  partial  Same  partial  
C. Higher Education Services  partial  Same  partial  
D. Adult Education  partial  Same  partia l 
E. Other Education Services  partial  Same  partial  
6. Environmental Services  Partial    Partial  
A. Sewage Services  partial  Same  partial  
B. Refuse Disposal Services  partial  Same  partial  
C. Sanitation and Similar Services  .. Same  .. 
D. Other  partial  Same partial  
7. Financial Services  Partial    Partial  
A. All Insurance and Insurance -related Services  Partial  Same  Partial  
B. Banking and Other Financial Services  Partial  Same  Partial  
C. Other  .. Same  .. WT/REG287/1  
 
- 37 - 
 
 
 Sectors  GATS  As compared to GATS  RTA 
8. Health Related and Social Services  Partial    Partial 
A. Hospital Services  partial  Same  partial  
B. Other Human Health Services  .. Same  .. 
C. Social Services  .. Same  .. 
D. Other  .. Same  .. 
9. Tourism and Travel Related Services  Partial    Partial  
A. Hotels and Restaurants (including catering)  partial  Same  partial  
B. Travel Agencies and Tour Operators Services  partial  Same  partial  
C. Tourist Guides Services  .. Same  .. 
D. Other  .. Same  .. 
10. Recreational, Cultural and Sporting Services  Partial    Partial  
A. Entertainment Services  partial  Same  partial 
B. News Agency Services  .. Same  .. 
C. Libraries, archives, museums and other cultural services  .. Same  .. 
D. Sporting and Other Recreational Services  partial  Same  partial  
E. Other  .. Same  .. 
11. Transport Services  Partial    Partial  
A. Maritime Tr ansport Services  Partial  Same  Partial  
B. Internal Waterways Transport  Partial  Same  Partial  
C. Air Transport Services  Partial  Same  Partial  
D. Space Transport  .. Same  .. 
E. Rail Transport Services  Partial  Same  Partial  
F. Road Transport Services  Partial  Same  Partial  
G. Pipeline Transport  .. Same  .. 
H. Services Auxiliary to All Modes of Transport  Partial  Less Partial  
I. Other Transport Services  .. Same  .. 
12. Other Services not Included Elsewhere  .. Same  .. 
General Note:  MFN and Horizontal limitations , as well as Mode 4 commitments/limitations not included . 
Partial:  Specific commitments subject to some limitation(s) under market access or national treatment, 
under any of the three modes.  
..: No specific commitment.  
Same:  Same commitments as under the GATS.  
Less: Lower coverage compared to  the GATS), including exclusion of a whole sector or subsector.  
Source:  GATS Schedule of Specific Commitments (GATS/SC/142)  and Viet Nam 's Schedules annexed to the 
Agreement.  
3.5  Regulatory Provisions  
3.5.1   Domestic regulation  
3.55.   Article 6 replicates the disciplines contained in Article VI of the GATS  on domestic 
regulation .  
3.5.2   Recognition  
3.56.   Under Article 7, the Agreement mirrors the provisions in Article VII of the GATS with the 
only difference that paragraph 4 in the Agreement is an endeavour.  
3.5.3   Subsidies  
3.57.   While excluding subsidies or grants by a Party or any conditions attached to the receipt or 
continued receipt of such subsidies or grants from the scope of the Agreement, Article 15 allows a 
Party to request consultations if such subsi dies or grants significantly affect trade in services in 
which commitments were taken under the Agreement. To reach an amicable resolution of the 
matter, the  requested  Parties shall provide information on subsidies related to trade in services in 
which com mitments were made to any requesting Party; and review the subsidies when relevant 
disciplines are developed by the WTO.  WT/REG287/1  
 
- 38 - 
 
 
 3.5.4   Safeguards  
3.58.   Upon the conclusion of the WTO negotiations on GATS Article X (emergency safeguard 
measures), the Parties shall discuss appr opriate amendments to incorporate the results of the 
WTO negotiations into the Agreement (Article 10). The Agreement however foresees exceptional 
circumstances under which a safeguard measure may be taken by a Party in the event that the 
implementation of the Agreement has a  substantial adverse impact on a service sector of another 
Party (before the conclusion of the multilateral negotiations under Article X of the GATS). In such a 
case, the Parties shall however first consult for the purposes of discussing  any such safeguard 
measure. Any measure taken pursuant to paragraph 2 of Article 9 shall be mutually agreed by the 
Parties concerned. The circumstances of the particular case shall be taken into account, and 
sympathetic consideration shall be given to the  Party seeking to take a measure.  
3.59.   Under Article 12, where a Party is in serious balance of payments and external financial 
difficulties or threat thereof, it may adopt or maintain restrictions on trade in services in 
accordance with Article XII of the GATS . Such restrictions or changes therein shall be promptly 
notified to the Implementing Committee.20 
3.5.5   Other  
3.5.5.1   Monopolies and exclusive service suppliers  
3.60.   Article 8 (on monopolies and exclusive service suppliers) essentially reproduces Articles VIII 
of the GATS. For example, if a Party has reason to believe that another Party's monopoly service 
supplier is acting contrary to Article 8 (paragraphs 1 and 2), the Party may request the other Party 
that has established, maintained or authorized such supplier to provide  specific information 
concerning the relevant operation.  
3.61.   Under Article 9, the Parties also recognize that certain business practices of services 
suppliers (other than monopolies and exclusive service suppliers) may restrain competition and 
therefore restri ct trade in services. If requested by a Party, the other Party shall enter into 
consultations with a view to eliminating such practices. With full and sympathetic consideration the 
affecting Party shall cooperate in supplying publicly available information  on the matter.  
3.5.5.2   Investment  
3.62.   The Agreement on Investment contains a provision affecting the supply of a service by a 
Party's service supplier through commercial presence in the territory of another Party. The 
Agreement on Investment shall however not apply t o measures adopted or maintained by a Party 
to the extent that they are covered by the Agreement (on services).  
3.6  Sector -Specific Provisions  
3.6.1    Financial Services  
3.63.   The Agreement includes an annex on financial services.  Financial services are defined as 
any service of a financial nature offered by a financial service supplier of a Party  (Article 5) . 
Financial services include all insurance and insurance -related services, and all banking and other 
financial services.  The annex applies to measures affecting the sup ply of financial services in any 
mode  (Article 1) .21  
                                                
20 The Implementing committee supervises the implementation of the Agreement. See Section 4.5 for 
details on its composition and functions.  
21 Services supplied in the exercise of governmental authority are defined as activities conduc ted by a 
central bank or monetary authority or by any other public entity in pursuit of monetary or exchange rate 
policies, activities forming part of a statutory system of social security or public retirement plans and other 
activities conducted by a publ ic entity for the account or with the guarantee or using the financial resources of 
the government.  WT/REG287/1  
 
- 39 - 
 
 
 3.64.   Article 2 says that notwithstanding any other provisions of the Agreement, a Party shall not 
be prevented from taking measures for prudential reasons,22 to ensure the integrity and stability of 
the financ ial system or to ensure the stability of the exchange rate, including preventing 
speculative capital flows. Where such measures do not conform to the provisions of the 
Agreement, they shall not be used as a means of avoiding the Party’s commitments or obli gations 
under the Agreement. For measures to ensure the stability of the exchange rate including 
preventing  speculative capital flows, they shall be applied on a MFN basis and for no longer  than 
necessary, and phased out within one year or when conditions no longer justify their institution or 
maintenance.  Also, they shall not be adopted or maintained for the purpose of protecting a 
particular sector.  Nothing in the Agreement shall be construed to require a Party to disclose 
information relating to the affa irs and accounts of individual customers or any confidential or 
proprietary information in the possession of public entities.  
3.65.   Article 3 regulates the recognition  of prudential measures of any other country. Such 
recognition, which may be achieved through h armonisation or otherwise, may be based upon an 
agreement or arrangement with the country concerned or may be accorded autonomously.23 
3.66.   Regarding dispute settlement, p anels for disputes on prudential issues and other financial 
matters shall have  the necessar y expertise relevant to the specific financial service under dispute  
(article 4) . 
4  GENERAL PROVISIONS O F THE AGREEMENT  
4.1  Transparency  
4.1.  Article 4 contains general transparency disciplines and it replicates, mutatis mutandis, 
Article  III of the GATS  (transparenc y). Article 5 replicates Article III bis of the GATS (disclosure of 
confidential information).  Article 8 of the Agreement on Investment regulates transparency 
regarding investment.  
4.2  Payments and capital movements  
4.2.  Article  11 prohibits th e Parties from apply ing restrictions on international transfers and 
payments for current transactions relating to their specific commitments. The Parties' reserve their 
rights to apply restrictions to safeguard the balance of payments, as disciplined under Article 1 2. 
The rig hts and obligations of any Party who is a member of the IMF are unaffected, provided that a 
restriction on any capital transaction is not imposed inconsistently with that Party's specific 
commitments.  
4.3.  The Parties commit to allow the movement of capital und er their  market access commitment s 
for the supply of a service through mode 1. Moreover, with respect to a Party's market access 
commitment in relation to the supply of a service through commercial presence  (mode 3) , that 
Party is committed to allow relate d transfers of capital into its territory.  
4.4.  Article 10 of the Agreement on Investment  provides for the free and timely transfers of 
covered investments in any freely usable currency at the prevailing market rate. Transfers include , 
among others , profits div idends, capital gains, royalties and proceeds from the sales or liquidation 
of investments. A party may delay or prevent a transfer according to the equitable, 
non-discriminatory and good faith application of its law and r egulations relating to , inter alia , 
bankruptcy, insolvency, criminal offences and taxation.  
                                                
22 Prudential reasons include the protection of investors, depositors, policy holders or persons to whom 
a fiduciary duty is owed by a financial service supp lier. 
23 A Party that is a party to such an agreement or arrangement shall afford adequate opportunity for 
other interested Parties to negotiate their accession to such agreements or arrangements, or to negotiate 
comparable ones with it, under circumstances  in which there would be equivalent regulation, oversight, 
implementation of such regulation, and, if appropriate, procedures concerning the sharing of information 
between the parties to the agreement or arrangement. Where a Party accords recognition auton omously, it 
shall afford adequate opportunity for any other Party to demonstrate that such circumstances exist.  WT/REG287/1  
 
- 40 - 
 
 
 4.3  Exceptions  
4.5.  Exceptions are contained in Articles 1 3 and 1 4.  
4.3.1   General exceptions  
4.6.  Article XIV of the GATS, including its footnotes, is mirrored in Article 13.   
4.3.2   Security exceptions  
4.7.  Article 1 4 builds on the provisions of Article XIV  bis of the GATS for measures related to 
security. Actions taken so as to protect critical public infrastructure including communication, 
power and water infrastructure from deliberate attempts intended to disable or degrade them are 
covered by the security exception.  
4.3.3   Taxation  
4.8.  Article  22 of the Agreement on Investment states that nothing shall affect the rights and 
obligations of any Party under any tax agreement signed by a Party. Also, in case of inconsistency 
between the Ag reement on Investment and any taxation a greement, the latter  shall prevail to the 
extent of the inconsistency.  
4.4  Accession  
4.9.  The Agreement does not contain any accession  or termination  provisions.  
4.5  Institutional framework  
4.10.   Article 5.3 of the Framework Agreement on Comp rehensive Economic Cooperation a mong 
the Governments of the Member Countries of the Association of Southeast Asian Nations and the 
Republic of Korea establishes the Implementing Committee.  It is composed of the senior economic 
officials of the Parti es or their designees and shall convene annually or as appropriate to discharge 
its functions under the supervision and guidance of the Economic Ministers of the ASEAN Member 
Countries and the Minister for Trade of Korea.   
4.11.   The Implementing Committee coordi nates, supervises and oversees the implementation and 
appropriate application of the provisions of the Framework Agreement and any other agreements 
concluded or to be concluded in accordance with it. It also reviews the implementation of the 
Agreements and  supervises the work of the committees and working groups established under the 
Agreements. Finally, it considers any other matter that may affect the operation of the 
Agreements or that is entrusted to it by the Parties.  Since the entry into force of the Agreement, 
the Implementing Committee has met 16 times and, t o date , it has made  decisions related to the 
agreement covering t rade in goods.  
4.12.   The ASEAN Secretariat and the Ministry of Foreign Affairs of Korea provide the necessary 
secretaria l support and mo nitor and report to the Implementation Committee on the 
implementation of the Agreements (article 5.4).  
4.6  Dispute settlement  
4.13.   Article 29  indicates that unless otherwise provided in the Agreement, any dispute 
concerning the interpretation, implementation or ap plication of the Agreement shall be resolved 
through the procedures and mechanisms as set out in the ASEAN -Korea  Agreement on Dispute 
Settlement Mechanism (DSM Agreement) signed under the Framework Agreement .  WT/REG287/1  
 
- 41 - 
 
 
 4.14.   The DSM Agreement  applies to all disputes aris ing between the Parties under the covered 
agreements unless otherwise provided (Article 2.1).24 To the extent that there is any conflict 
between the rules in the DSM Agreement and any special or additional rules and procedures on 
dispute settlement in these  other agreements, the latter will prevail. In disputes involving rules 
and procedures under more than one of these covered agreements, if there is a conflict between 
special and additional rules and procedures of these covered agreements, the chair of the  arbitral 
panel i n consultation with the parties to the dispute, shall determine the rules and procedures to 
be followed for that dispute within t en days after a request by any P arty to the dispute (Article 
2.2). The scope of the DSM Agreement also extends  to measures affecting the operation of any 
covered agreement taken within a Party by central, regional or local governments or authorities, or 
non-governmental bodies in the exercise of powers delegated by central, regional or local 
govern ments or authori ties (Article 2. 3). Although nothing in the Agreement prejudices the right of 
the Parties to have recourse to dispute settlement procedures available under any other treaty to 
which they are party, once dispute settlement proceedings have been initiated un der either 
agreement, the forum selected by the complaining Party shall be used to the exclusion of any 
other for the dispute (forum selection clause) (Article  2.4 and 2. 5).25 
4.15.   A Party can raise a complaint and request consultations if a measure of another P arty is 
inconsistent with its obligations or if a Party failed to carry out its obligations  under the covered 
Agreements which results in the nullification or impairment of any benefit, or in the impediment of 
the attainment of any objective of the covered  Agreements.26 If a Party is subject to a complaint 
with respect to any matter affecting the interpretation, implementation or application of any 
covered agreement raised by another Party, it shall accord due consideration and consultations 
(Article 3.1). Consultations may be requested in writing under Article 3.2 with respect to any 
dispute arising under the covered agreements. They should include details of the specific measure 
at issue and the factual and legal basis of the complaint. The request should b e sent to the Party 
complained against and the other Parties. The Party complained against shall acknowledge receipt 
to all the Parties and shall accord due consideration and adequate opportunity for consultations if 
so requested. It shall reply to the req uest within seven  days of receipt and enter into consultations 
within no more than 30 days (not more than 10 days for urgent cases including those concerning 
perishable goods) from the receipt of the request with a view to reaching a mutually acceptable 
solution. If it fails to respond to the request or fails to enter into consultations, the complaining 
Party may directly request the establishment of an arbitral panel. Consultations shall be 
confidential and without prejudice to the rights of any Party in a ny further proceedings under the 
DSM Agreement or any other agreement selected by the Parties. The Parties to the dispute will  
inform the other Parties of the outcome of the consultations.  
4.16.   The Parties may request good offices, conciliation or mediation on  a voluntary basis which 
can begin and be terminated at any time by any party to a dispute  (Article 4) .27 All proceedings 
involving good offices, conciliation or mediation, particularly positions taken by the parties to the 
dispute, shall be confidential an d without prejudice to the rights of any Party in any further 
proceedings under the Dispute Settlement Agreement or before any other forum selected by the 
Parties.  
4.17.   If consultations fail to settle a dispute within 60 days (or 20 days in urgent cases) of rec eipt 
of the request, the complaining Party may make a written request to the Party complained against 
with a copy to the other Parties, to establish an arbitral panel  (Article 5) . The arbitral panel will be 
established and perform its functions in accordan ce with the provisions of the DSM Agreement and 
the Annex on the Rules and Procedures for the Arbitral Panel Proceedings. A single arbitral panel, 
where feasible, shall be set up if more than one complaining Party requests establishment of a 
panel related to the same matter.  
                                                
24 The covered agreements are the Framework Agreement , the agreement on trade in goods under the 
Framework Agreement , the DSM agreement and any a greement to be concluded between the Parties pursuant 
to the relevant provis ions of the Framework Agreement.  
25 The complaining Party shall be deemed to have selected a forum when it has requested the 
establishment of, or referred a dispute to, an arbitral panel in accordance with the Dispute Settlement 
Agreement or any other treaty to which the parties to the dispute are party  (Article 2.6) . 
26 Non-violation disputes are not permitted under the DSM Agreement.  
27 Furthermore, if the parties to a dispute agree,  good offices, conciliation or mediation proceedings may 
continue before any person or body as may be agreed by the parties to the dispute, while the dispute proceeds 
for resolution to an arbitral panel.  WT/REG287/1  
 
- 42 - 
 
 
 4.18.   The arbitral panel will consist of three arbitrators, one appointed by each Party within 
30 days of receipt of the request  (Article 6) . If any Party fails to appoint an arbitrator, the 
arbitrator appointed by the other Party will act as  sole arbitrator. The third arbitrator is appointed 
through agreement between the parties within 30 days from the appointment of the second 
arbitrator, and shall act as Chair.28  
4.19.   Third parties who have notified their interest in the dispute in writing to th e parties will have 
an opportunity to make written submissions to the panel which may also be given to the parties to 
the dispute and be reflected in the report of the arbitral panel. If a third party feels that a measure 
that is the subject of an arbitral  panel nullifies or impairs its benefits under the covered 
agreements, it may have recourse to normal dispute settlement proceedings un der the DSM 
Agreement (Article 7 ). 
4.20.   Unless the parties agree otherwise, the arbitral panel shall present its interim repor t within 
90 days of its establishment. The report will include the panel's  findings and reasons . If the panel 
determine s that the measure at issue is inconsistent with the obligations under the covered 
agreement, the interim report will also include recomm endations to bring the measure into 
conformity and the panel's suggestions on how to implement the recommendations. Written 
comments from the parties on the interim report may be submitted within 14 days of its 
presentations (Article 1 1).  
4.21.   The final report  shall be presented within 30 days of the presentation of the interim report 
(120 days from the date of the establishment of the arbitral panel or 90 days in urgent cases) and 
will include a discussion on the comments by the parties to the dispute on the interim report . 
Delays in the presentation of the final report must be communicated to the parties along with the 
reasons for the delay but in any case the final report must be issued within 180 days (or 120 days 
in case of urgency ) of the establishment of the arbitral panel. The final report will be made publicly 
available ten days after it is presented to the pa rties to the dispute (Article 12 ). 
4.22.   The final report is binding and not subject to appeal  (Article 14). If the panel determines in 
its final report that the Party complained against has not conformed with its obligations under the 
relevant covered agreements  or the measure has caused nullification or impairment, the non -
conformity or the nullification or impairment  shall be eliminated . The parties to the dispute shall, 
within 20 days of the presentation of the final report, agree on the means to implement the 
recommendations and the reasonable period of time necessary to implement them. If the parties 
fail to agree, a Party may refer the matter to the original arbitral panel and the Party complained 
against shall propose the means to implement the recommendation within 15 days.  The panel 
determines the consistency of the means proposed and presents its report within 30 days.  
4.23.   Compensation and suspension  of concessions or benefits are temporary measures available 
in the event that the recommendations are not implemented within a reasonable period of time  
(Article 15) . If the Party complained against fails to bring the measure into compliance with the 
recommendation of the panel within the reasonable period of time, it shall enter into negotiations 
with the complaining Party to reach an agreement on any necessary compensatory adjustment. If 
no mutually satisfactory agreement on compensation is reached withi n 20 days, the complaining 
Party may provide a written not ice to the Party complained against and all other Parties that it 
intends to suspend the application of concessions or benefits of equivalent effect 30 days after the 
receipt of the notice.29 Any sus pension is restricted to the concessions or benefits granted to the 
Party complained against under the relevant covered agreement and shall be temporary until the 
measure found to be inconsistent has been removed or the Party complained against implements 
the panel's recommendations or a mutually satisfactory solution is reached. The Party complained 
                                                
28 If the Parties are unable to agree on the chair, t he chair shall be jointly appointed by the other 
members of the panel within a further period of 30 days. If there is no agreement between the members of the 
arbitral panel , the chair will be appointed at the request of the members of the arbitral panel by  the Director -
General of the WTO within a period of 30 days. If the DG is a national of the Parties in the dispute, the Deputy 
DG to the officer next in seniority that is not a national of any party to the dispute shall be requested to 
appoint the chair.  
29 The complaining party should first seek to suspend concessions or benefits in the same sector or 
sectors as those affected by the measure or other matter that the panel has found inconsistent or caused 
nullification or impairment. The complaining party ma y suspend concessions or benefits in other sectors if it 
considers not practicable or effective to suspend concessions or benefits ion the same sector or sectors.  WT/REG287/1  
 
- 43 - 
 
 
 against can request the panel to determine the matter if it considers that the suspension of 
concessions or benefits is manifestly excessive or if it has elimi nated the non -conformity, 
nullification or impairment.  
4.24.   The settlement of investment disputes arising between a Party and an investor of another 
Party is regulated by Article 18 of the Agreement on Investment. Any dispute concerning the 
interpretation, impl ementation or application of the Agreement on Investment shall be resolved 
through the mechanism set out in the DSM Agreement (Article 19  of the Agreement on 
Investment ). 
4.7  Relationship with other agreements concluded by the Parties  
4.25.   Article 27 states that th e Agreement or any action taken under it shall not affect or nullify 
the rights and obligations of a Party under the existing agreements to which it is a party. ASEAN 
Member Countries may enter into individual bilateral arrangements with Korea concerning 
co-production of broadcasting programs pursuant to the Agreement, and such bilateral 
arrangements shall apply to th ose Parties only.  
4.26.   Table 4.1 below shows the Parties' RTAs, notified and non -notified, other than the 
Agreement . 
Table 4.1 ASEAN and the Republic of Korea:  Participation in other RTAs (notified and 
non-notified in force), as of 30 November  2017  
RTA Name  Date of entry 
into force  Coverage  GATT/WTO Notification  
Year WTO Pro vision  
ASEAN Member States - Collectively  
ASEAN - Australia - New Zealand  01-Jan-10 Goods & 
Services  2010 GATT Art. XXIV & GATS Art. V  
ASEAN – Republic of Korea  01-Jan-10 Goods  2010 Enabling Clause* 
ASEAN - China  01-Jan-05 
01-Jul-07 Goods  
Services  2005 
2008 Enabling Clause  
GATS Art. V  
ASEAN - India 01-Jan-10 
01-Jul-15 Goods  
Services  2010 Enabling Clause  
GATS Art. V  
ASEAN - Japan  01-Dec-08 Goods  2009 GATT Art. XXIV  
ASEAN Free Trade Area (AFTA)  01-Jan-93 Goods  1992 Enabling Clause  
ASEAN Framework Agre ement on 
Services (AFAS)  12-Aug-98 Services  Not Notified  
Individual ASEAN Member States  
Eurasian Economic Union (EAEU) 
- Viet Nam  05-Oct-16 Goods & 
Services  2017 GATT Art. XXIV & GATS Art. V  
Republic of Korea  - Viet Nam  20-Dec-15 Goods & 
Services  2016 GATT Art. XXIV & GATS Art. V  
Turkey - Malaysia  01-Aug-15 Goods  2017 GATT Art. XXIV  
Singapore - Chinese Taipei  19-Apr-14 Goods & 
Services  2014 GATT Art. XXIV & GATS Art. V  
Chile - Viet Nam  01-Jan-14 Goods  2015 GATT Art. XXIV  
Gulf Cooperation Council (GCC ) - 
Singapore  01-Sep-13 Goods & 
Services  2015 Enabling Clause & GATS Art. V  
Costa Rica - Singapore  01-Jul-13 Goods & 
Services  2013 GATT Art. XXIV & GATS Art. V  
Malaysia - Australia  01-Jan-13 Goods & 
Services  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  WT/REG287/1  
 
- 44 - 
 
 
 RTA Name  Date of entry 
into force  Coverage  GATT/WTO Notification  
Year WTO Pro vision  
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 & 
Services  2008 Enabling Clause & GA TS 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 
Partnership  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 & 
Services  2006 GATT Art. XX IV & 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 & GAT S Art. V  
India – Thailand  01-Sept-04 Goods  2017 Enabling Clause  
United States - Singapore  01-Jan-04 Goods & 
Services  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 - Singap ore 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)  19-Apr-89 Goods  1989 Enabling Clause  
Asia Pacific Trade Agreement 
(APTA)  17-Jun-76 Goods  1976 Enabling Clause  
Protocol on Trade Negotiations 
(PTN)  11-Feb-73 Goods  1971 Enabling Clause  
Chile - Thailand  05-Nov-15 Goods  Not Notified  
Peru - Thailand  31-Dec-11 Goods  Not Notified  
Pakistan - Indonesia 03-Feb-13 Goods  Not Notified  
Asia Pacific Trade Agreement 
(APTA)  13-Sep-13 Services  Not Notified  
Republic of Korea  
Republic of Korea - Colombia  15-Jul-16 Goods & 
Services  2016 GATT Art. XXIV & GATS Art. V  
Republic of Korea - New Zealand  20-Dec-15 Goods & 
Services  2015 GATT Art. XXIV & GATS Art. V  
China - Republic of Korea  20-Dec-15 Goods & 
Services  2016 GATT Art. XXIV & GATS Art. V  
Republic of Korea - Viet Nam  20-Dec-15 Goods & 
Services  2016 GATT Art. XXIV & GATS Art. V  
Canada - Republic of Kor ea 01-Jan-15 Goods & 
Services  2015 GATT Art. XXIV & GATS Art. V  
Republic of Korea - Australia  12-Dec-14 Goods & 2014 GATT Art. XXIV & GATS Art. V  WT/REG287/1  
 
- 45 - 
 
 
 RTA Name  Date of entry 
into force  Coverage  GATT/WTO Notification  
Year WTO Pro vision  
Services  
Republic of Korea - Turkey  01-May-13 Goods  2013 GATT Art. XXIV  
Republic of Korea - United States  15-Mar-12 Goods & 
Services  2012 GATT Art. XXIV & GATS Art. V  
Peru - Republic of Korea  01-Aug-11 Goods & 
Services  2011 GATT Art. XXIV & GATS Art. V  
EU - Republic of Korea  01-Jul-11 Goods & 
Services  2011 GATT Art. XXIV & GATS Art. V  
ASEAN – Republic of Kor ea 01-Jan-10 Goods  2010 GATT Art. XXIV** 
Republic of Korea - India 01-Jan-10 Goods & 
Services  2010 GATT Art. XXIV** & GATS Art. 
V 
EFTA - Republic of Korea  01-Sep-06 Goods & 
Services  2006 GATT Art. XXIV & GATS Art. V  
Republic of Korea - Singapore  02-Mar-06 Goods & 
Services  2006 GATT Art. XXIV & GATS Art. V  
Republic of Korea - Chile 01-Apr-04 Goods & 
Services  2004 GATT Art. XXIV & GATS Art. V  
Asia Pacific Trade Agreement 
(APTA) - Accession of China  01-Jan-02 Goods  2004 Enabling Clause  
Global System of T rade 
Preferences among Developing 
Countries (GSTP)  19-Apr-89 Goods  1989 Enabling Clause  
Asia Pacific Trade Agreement 
(APTA)  17-Jun-76 Goods  1976 Enabling Clause  
Protocol on Trade Negotiations 
(PTN)  11-Feb-73 Goods  1971 Enabling Clause  
Asia Pacific Trade  Agreement 
(APTA)  13-Sep-13 Services  Not notified  
* As notified by Brunei Darussalam, Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, 
Singapore,  Thailand and Viet Nam; see WT/COMTD/N/33.  
** As notified by the Republic of Korea; see WT/REG286/N/1 & WT/REG287/N/1.  
Source:  WTO Secretariat.  
 
4.8  Other  
4.27.   Article 16 reaffirms the Parties' commitments to abide by the provisions of the WTO 
Agreement as they are relevant and applicable to trade in services . 
4.28.    The Parties shall strengthen cooperation in services s ectors including those which are not 
covered by existing cooperation arrangements  (Article 17) . The Economic Ministers of the ASEAN 
Member Countries and the Minister for Trade of Korea shall meet within a year of the date of entry 
into force of the Agreeme nt and then biennially or otherwise as appropriate to review the 
Agreement for the purpose of considering further measures to liberalise trade in services as well as 
develop disciplines and negotiate agreements on matters referred to in Article 16 or any o ther 
relevant matters as may be agreed (Article 26).   
4.29.   The 8th consultation of the Economic Ministers of the ASEAN Member Countries and the 
Minister for Trade of Korea took place in 2011 and noted that all Parties have ratified the 
ASEAN -Korea Trade in Serv ices and Investment Agreements. The Ministers tasked the 
Implementing Committee to review the Agreement for the purpose of considering further 
measures to liberalise trade in services. The 9th round of consultations was held in 2012 and it 
established the Working Group on Services under the Implementing Committee with the objectives 
of reviewing the implementation of the services agreement and considering further measures to 
liberalise trade in services. The Services Working Group  has met thrice and in 2013  it conducted a 
joint impact study on further liberalization.  
__________