RESTRICTED  
  
S/C/W/381  
 
3 December 2018 
(18-7642) Page: 1/20 
Council for Trade in Services  Original: English  
 
COMMUNICATION FROM T HE UNITED KINGDOM OF  GREAT BRITAIN  
AND NORTHERN IRELAND  
CERTIFICATION OF LIS T OF ARTICLE II (MFN ) EXEMPTIONS  
The following communication has been submitted to the WTO Secretariat by the United Kingdom of 
Great Britain and Northern Ireland (hereafter the ‘UK’) with a request to initiate the certification 
procedure regarding the UK List of Article II (MFN) Exemptions under the GATS pursuant to the 
"Procedures for the Certification of Terminations, Reductions and Rectifications to Arti cle II (MFN) 
Exemptions" (S/L/106). Accordingly, if no objections1 are communicated to the Secretariat within 
45 days from the date of this communication, the certification procedure shall be concluded and the 
enclosed UK List shall be certified.  
 
 
_______ ________  
 
 
The enclosed UK List of Article II (MFN) Exemptions (hereafter ‘the UK List’) has been submitted to 
the WTO Secretariat by the United Kingdom of Great Britain and Northern Ireland (hereafter ‘the 
UK’) with a request to initiate its certification  in accordance with paragraph 3 of the Procedures for 
the Certification of Terminations, Reductions and Rectifications of Article II (MFN) Exemptions 
(S/L/106 of 11 June 2002).  
 
This communication consists of four parts:  
 
• Part I: Note requesting the initi ation of the certification procedure and the legal basis of 
the certification procedure  
 
• Part II: Explanatory note on the changes of a purely technical character reflected in the UK 
List (pursuant to paragraph 3 of S/L/106)  
 
• Part III: UK List indicating the technical changes2  
 
• Part IV: Clean version of the UK List3 
 
 
_______________  
 
 
                                                
1 In accordance with paragraph 4 of S/L/106, any Member wishing to object to the certification shall 
submit a notification to that effect to the Secretariat for circulation to all Members, to the extent possible 
identifying the specific elements of the modi fications which gave rise to that objection.  
2 In English only.  
3 In English only.  S/C/W/381  
 
- 2 - 
 
   
PART I  
NOTE REQUESTING THE INITIATION OF THE CE RTIFICATION PROCEDUR E AND  
THE LEGAL BASIS OF T HE CERTIFICATION PRO CEDURE  
1  The UK triggered Article 50 of the Treaty on the Functioning of the European Union on 29 March 
2017. As a result, the UK now seeks to separate  its MFN exemptions from those of the EU and its 
Member States. This is the purpose of initiating this certification procedure.  
 
2  As laid out in the  joint letter of 11 October 2017 from the Permanent Representative of the United 
Kingdom and the Permanent Re presentative of the European Union to the Permanent 
Representatives of the WTO, this UK List replicates the concessions and commitments applicable to 
the United Kingdom included in the  List of Article  II (MFN) Exemptions of the European Communities 
and The ir Member States (the ‘EU List’)1.  
 
3  Pursuant to paragraph 3 of S/L/106, an explanatory note on the changes of a purely technical 
character that do not alter the substance of the existing exemptions is annexed.  
 
4  The UK is prepared, upon request, to enter i nto consultations with any WTO Member that makes 
an objection under paragraph 4 of S/L/106. With a view to ensuring effective consultations, the UK 
would ask that any such objecting member identifies, to the extent possible, the specific elements 
which giv e rise to their objection.  
 
5  If no objections are communicated to the Secretariat within 45 days from the date of circulation 
of the UK List, this certification procedure shall be considered as concluded, and the UK List shall 
enter into force on a date to be specified by the UK2. 
 
 
_______________  
 
 
                                                
1 GATS/EL/31 of 15 April 1994.  
2 The date of application to be specified will not be earlier than the date of expiry of any transition 
period agreed between the European Union and the United Kingdom pursuant to Article 50 of the Treaty on the 
Functioning of the European Union, or in the a bsence of such period , 30 March 2019.  S/C/W/381  
 
- 3 - 
 
  PART II  
EXPLANATORY NOTE ON CHANGES OF A PURELY TECHNICAL CHARACTER  
(PURSUANT TO PARAGRA PH 3 OF S/L/106)  
1  The authentic text reflecting the UK’s current MFN exemptions is f ound in the EU List. Therefore, 
this is the document that has been used as a starting point for preparing the UK List. The principle 
underlying the preparation of the UK List is that the UK benefits from the exemptions that apply to 
it pursuant to the EU L ist. Therefore, this is a technical exercise, and the appropriate procedure to 
use is that set down in S/L/106.  
 
2  Pursuant to paragraph 3 of S/L/106, the present note aims at indicating, for the UK List, the 
changes which are of a purely technical character  (hereafter “the technical changes”), which do not 
alter the substance of the existing exemptions.  
 
3  To facilitate examination, the present note describes in a systematic manner the technical changes 
which have been undertaken to separate the UK’s MFN exemp tions from those of the EU and its 
Member States.  
 
4  The present note will describe successively: (I) technical changes of a general character; and (II) 
specific technical changes to particular exemptions. In order to ensure transparency, whenever 
possible, page references to the EU List are provided in the footnotes to this note. When page 
reference s to the UK List are provided , these  are to the UK List indicating the technical changes.  
 
5  The present note is not an annex to the UK List and does not prejudice the position of the UK with 
regard to the legal interpretation of GATS.  
 
1  GENERAL TECHNICAL CH ANGES  
1.1  DELETION OR REPLACEMENT OF INAPPROPRIATE REFERENCES  
1.1.  Once the UK leaves the EU, it will  no longer be appropriate for the UK List to make reference 
to the EU, the EU Treaties, EU legislation made under those Treaties, or to purport to provide 
exemptions for EU Member States. This is because the UK will no longer be a party to the EU Treaties 
or a Member of the EU, and will, therefore, be able to list exemptions only with respect to treatment 
accorded within its own territory.  
1.2.  As a result : 
• references to the “EC” or to “Member States” have been deleted, or replaced with references 
to the “UK” (a s appropriate);  
• references to EU legislation have been deleted and replaced with a description of the UK 
measures concerned; and  
• references to “third countries” have been replaced with references to “other WTO Members”, 
as the former term is used in the EU  List to draw a distinction between EU Member States 
and other countries.  
 
1.3.  The UK List indicating the changes clearly shows each instance where such amendments have 
been made and what text has been used to replace it.  S/C/W/381  
 
- 4 - 
 
  1.2  DELETION OF EXEMPTIONS WHICH ONLY CONC ERN OTHER EU MEMBER STATES  
1.4.  Some  of the exemptions in the EU List do not apply to the UK. Therefore, they have been 
deleted. These include the following:  
Sector or Sub -Sector  Description of measure  
Audiovisual services – distribution services  Waiver of requirement in Spain to obtain 
licences for the distribution of dubbed films of 
non-Community origin, granted to films of 
European origin which are especially 
recommended for children’s audiences.1 
Audiovisual services – television and radio 
broadcasting services  Foreign participation in companies in Italy 
exceeding 49% of the capital and voting rights, 
subject to a condition of reciprocity.2 
Audiovisual services – production and 
distribution of cinematographic works and 
television programmes in Nordic co untries  Measures taken in Denmark that are adopted 
for the implementation of benefits in conformity 
with such support programmes as the NORDIC 
FILM and TV FUND in order to enhance 
production and distribution of audiovisual works 
produced in Nordic countrie s.3 
Road transport services – freight (CPC 7123)  Authorization for the establishment of a 
commercial presence in Spain may be refused 
to service suppliers, whose country of origin 
does not accord effective market access to 
Spanish service suppliers.4 
Transport services – internal waterways  Measures based upon existing or future 
agreements on access to inland waterways 
(including agreements following the Rhine -
Main-Danube link), which reserve traffic rights 
for operators based in the countries concerned  
and meeting nationality criteria regarding 
ownership.5 
Transport services – internal waterways  Regulations implementing the Mannheim 
Convention on Rhine shipping.6 
Rental/leasing services without operators, 
relating to ships (CPC 83103). Rental of vesse ls 
with crew (CPC 7213, 7223).  Chartering in of foreign ships by consumers 
resident in Germany may be subject to 
condition of reciprocity.7 
Publishing services (part of CPC 88442)  Foreign participation in companies in Italy 
exceeding 49% of the capital an d voting rights, 
subject to condition of reciprocity.8 
Newsagency services (part of CPC 962)  Foreign participation in companies in France 
publishing publications in the French language 
exceeding 20% of the capital or of voting rights 
in the company, subje ct to a condition of 
reciprocity.9 
Press agency services (part of CPC 962)  Market access in France. Subject to condition of 
reciprocity.10 
                                                
1 See page 3 of doc. GATS/EL/31 of 15 April 1994.  
2 Ibid. 
3 Ibid. 
4 See page 4 of doc. GATS/EL/31 of 15 April 1994.  
5 See page 5 of doc. GATS/EL/31 of 15 April 1994.  
6 See page 5 of doc. GATS/EL/31 of 15 April 1994.  
7 See page 6 of doc. GATS/EL/31 of 15 April 1994.  
8 Ibid. 
9 Ibid. 
10 Ibid. 
 S/C/W/381  
 
- 5 - 
 
  Sector or Sub -Sector  Description of measure  
Financial services  Measure granting favourable tax treatment 
(off-shore regime) in Italy to service suppliers 
trading with the countries to which the measure 
applies.11 
All sectors  Measures taken in Denmark aimed at 
promoting Nordic cooperation, such as:  
- financial support to R&D projects (the Nordic 
Industrial Fund);  
- funding of feasibility studies for internat ional 
projects (the Nordic Fund for Project Exports);  
- financial assistance to companies utilizing 
environmental technology (the Nordic 
Environment Finance Corporation).12 
All sectors  Authorization for purchase of real estate in Italy 
by foreign natural p ersons and juridical persons 
granted on the basis of reciprocity.13 
All sectors  Waiver of nationality requirements for the 
exercise, in Portugal, of certain activities and 
professions by natural persons supplying 
services from the designated countries.14 
All sectors  Facilitation of access procedures in France for 
the exercise of certain services activities and 
professions by natural and legal persons of 
certain third countries.15 
All sectors  Measures based upon bilateral agreements 
between Italy and third c ountries guaranteeing 
work permits for seasonal workers.16 
 
2  TECHNICAL CHANGES TO  SPECIFIC EXEMPTIONS  
2.1.  Under  the exemption relating to Audiovisual Services – production and distribution of 
cinematographic works and television programmes17 (page  7), the illustrative list of countries 
with which the EU had agreed, or was negotiating, agreements on coproduction of audiovisual works, 
has been deleted. The scope of this exemption is determined by the words “All countries with whom 
cultural cooperation may  be desirable”, with the list of countries provided in parentheses for the 
purposes of transparency. The illustrative list of countries has therefore been deleted to ensure that 
the UK List is not misleading once the UK leaves the EU.  
 
2.2.  Under  the exemption relating to CRS and sales and marketing of air transport service s18 
(page 9), the reference to “Regulation (EC) No. 2299/89, as amended by Regulation (EC) No. 
3089/93” has been deleted, as the UK will no longer be a party to the EU Treaties. This reference 
has been replaced by a reference to UK CRS rule.  
 
 
_______________  
                                                
11 See page 7 of doc. GATS/EL/31 of 15 April 1994.  
12 See page 8 of doc. GATS/EL/31 of 15 April 1994.  
13 Ibid. 
14 See page 9 of doc. GATS/EL/31 of 15 April 1994.  
15 Ibid. 
16 See page 10 of doc. GATS/EL/31 of 15 April 1994.  
17 See page 2 of doc. GATS/EL/31 of 15 April 1994.  
18 See page 5 of doc. GATS/EL/31 of 15 April 1994.   
  S/C/W/381  
 
- 6 - PART III  
UK LIST OF ARTICLE I I (MFN) EXEMPTIONS I NDICATING THE TECHNI CAL CHANGES  
 
UNITED KINGDOM OF GR EAT BRITAIN AND NORT HERN IRELAND – LIST OF ARTICLE II (MFN) EXEMPTIO NS 
 
Sector or subsector  Description of measure 
indicating its inconsistency 
with Article  II Countries to which the 
measure applies  Intended duration  Conditions creating the need 
for the exemption  
Audiovisual services - 
Distribution of 
audiovisual works  Redressive duties which may be 
imposed in order to respond to 
unfair pricing practices, by certain 
third countries other WTO Members  
distributors of audiovisual works.  All Members  Indefinite  Unfair pricing practices may cause 
serious disruption to the 
distribution of European works  
Audiovisual services  Measures taken to prevent, 
correct or counterbalance 
adverse, unfair or unreasonable 
conditions or actions affecting 
ECUK audiovisual services, 
products or service providers, in 
response to corresponding or 
comparable actions taken by other 
Members.  All Members  Indefinite  
The need for exemption will lapse 
together with corresponding 
exemption from other Members  Need to protect the European 
Communities and their Member 
States UK from adverse, unfair or 
unreasonable unilateral actions 
from other Members  
Audiovisual Services - 
production and 
distribution of 
audiovisual works 
through broadcasting 
or other forms of 
transmission to the 
public.  Measures which define works of 
European origin, in such a way as 
to extend national treatment to 
audiovisual works which meet 
certain linguistic and origin criteria 
regarding access to broadcasting 
or similar forms of transmission.  Parties to the Council o f Europe 
Convention on Transfrontier 
Television or other European 
countries with whom an 
agreement may be concluded.  Indefinite.  
Exemption needed, for certain 
countries, only until an economic 
integration agreement is 
concluded or completed.  The measures aim, within the 
sector, to promote cultural values 
both within EC Member States and  
with other countries in Europe, as 
well as achieving linguistic policy 
objectives    
  S/C/W/381  
 
- 7 - Sector or subsector  Description of measure 
indicating its inconsistency 
with Article  II Countries to which the 
measure applies  Intended duration  Conditions creating the need 
for the exemption  
Audiovisual  Services - 
Production and 
distribution of 
cinematographic 
works and television 
programmes  Measures based upon 
government -to-government 
framework agreements, and 
plurilateral agreements, on 
coproduction of audiovisual works, 
which confer National Treatment  
to audiovisual works covered by 
these agreements, in particular in 
relation to distribution and access 
to funding.  All countries with whom cultural 
cooperation may be desirable 
(agreements already exist, or are 
being negotiated, with the 
following countri es:  Algeria, 
Angola, Argentina, Australia, 
Brazil, Burkina Faso, Canada, 
Cape Verde, Chile, Côte d'Ivoire, 
Colombia, Cuba, Egypt, Guinea 
Bissau, India, Israel, Mali, Mexico, 
Morocco, Mozambique, New 
Zealand, São Tomé e Principe, 
Senegal, States in Central , 
Eastern and South -Eastern 
Europe, Switzerland,Tunisia, 
Turkey, Venezuela) . Indefinite  The aim of these agreements is to 
promote cultural links between the 
countries concerned  
Audiovisual  Services - 
Production and 
distribution of 
television 
programmes and 
cinematographic 
works  Measures granting the benefit of 
any support programmes (such as 
Action Plan for Advanced 
Television Services , MEDIA  or 
EURIMAGES ) to audiovisual 
works, and supplier s of such 
works, meeting certain European 
origin criteria.  European countries  Indefinite.  
Exemption needed, for certain 
countries, only until an economic 
integration agreement is 
concluded or completed.  These programmes aim at 
preserving and promoting the 
regional identity of countries 
within Europe which have long -
standing cultural links  
Audiovisual -
Distribution services  Waiver of the requirement in Spain 
to obtain licences for the 
distribution of dubbed films of 
non-Community origin, granted to 
films of  European origin which are 
especially recommended for 
children's audiences.  Parties to the Council of Europe  Indefinite.  
Exemption needed for certain 
countries, until an economic 
integration agreement is 
concluded or completed.  The measure aims at promoting 
European cultural values and 
linguistic policy objectives toward 
the youth.   
  S/C/W/381  
 
- 8 - Sector or subsector  Description of measure 
indicating its inconsistency 
with Article  II Countries to which the 
measure applies  Intended duration  Conditions creating the need 
for the exemption  
Audiovisual services:  
television and radio 
broadcasting services  Foreign participation in companies 
in Italy exceeding 49% of the 
capital and voting rights, subject 
to a condition of reciprocity.  All countries  Indefinite  Need to ensure effective market 
access and equivalent treatment 
for Italian service suppliers  
Audiovisual  services:  
production and 
distribution of 
cinematographic 
works and television 
programmes in Nordic 
countries  Measures taken in Denmark that 
are adopted for the 
implementation of benefits in 
conformity with such support 
programmes as the NORDIC FILM 
and T V FUND in order to enhance 
production and distribution of 
audiovisual works produced in 
Nordic countries.  Finland, Norway, Sweden, Iceland  Indefinite  Preservation and promotion of the 
regional identity of the countries 
concerned  
Road transport - 
passenger  and freight  Provisions in existing or future 
agreements on international road 
haulage (including combined 
transport - road/rail) and 
passenger transport, concluded 
between the EC or their Member 
States UK and third countries other 
WTO Members , which:  
 
-reserve or limit the provision of a 
transport service between 
the contracting parties or 
across the territory of the 
contracting parties to 
vehicles registered in each 
contracting party;  
 
-provide for tax exemption for 
such vehicles.  Switzerland, States in Central, 
Eastern and South -Eastern Europe 
and all Members of the 
Commonwealth o f Independent 
States, Albania, Turkey, Lebanon, 
Israel, Syria, Jordan, Egypt, 
Tunisia, Algeria, Morocco, Cyprus, 
Malta, Iran, Afghanistan, Iraq, 
Kuwait  Indefinite  The need fo r exemption is linked 
to the regional characteristics of 
the cross -border provision of road 
transport services   
  S/C/W/381  
 
- 9 - Sector or subsector  Description of measure 
indicating its inconsistency 
with Article  II Countries to which the 
measure applies  Intended duration  Conditions creating the need 
for the exemption  
Road transport 
services - 
Freight  
(CPC 7123)  Authorization for the 
establishment of a commercial 
presence in Spain may be refused 
to service suppliers, whose 
country of origin does not accord 
effective market access to Spanish 
service suppliers  All countries  Indefinite  Need to ensure effective market 
access and equivalent treatment 
for Spanish service suppliers  
CRS and sales and 
marketing of air 
transport services  Provision of Article 7 of Regulation 
(EC) No. 2299/89, as amended by 
Regulation (EC) No. 3089/93, 
whereby t The obligations of CRS 
system vendors or of parent and 
participating air carriers shall not 
apply where equivalent treatment 
to that applied under the 
Regulation UK CRS rules  is not 
accorded in the country of origin of 
the parent carrier or of the system 
vendor.  All countries where a CRS system 
vendor or a parent air carrier is 
located.  Indefinite  The need for the exemption results 
from the insufficient development 
of multilaterally agreed rules for 
the operation of CRS.  
Internal waterways 
transport  Measures based upon existing or 
future agreements on access to 
inland waterways (incl. 
agreements following the Rhine -
Main-Danube link), which reserve 
traffic rights for operators based in 
the countries concerned and 
meeting nationality criteria 
regarding ownership.  Switzerland, States in Central, 
Eastern and South -Eastern Europe 
and all Members of the 
Commonwealth of Independent 
States.  Indefinite.  
Exemption needed, for certain 
countries, only until an economic 
integration agreement is 
concluded or completed.  To regulate transport capacity on 
inland waterways taking into 
account geographic specificity.  
Internal waterways 
transport  Regulations implementing the 
Mannheim Convention on Rhine 
Shipping.  Switzerland  Indefinite  To regulate transport capacity on 
inland waterways taking into 
account geographic specificity.   
  S/C/W/381  
 
- 10 - Sector or subsector  Description of measure 
indicating its inconsistency 
with Article  II Countries to which the 
measure applies  Intended duration  Conditions creating the need 
for the exemption  
Rental/leasing 
services without 
operators, relating to 
ships 
(CPC 83103).  
Rental of vessels with 
crew  
(CPC 7213, 7223).  Chartering in of foreign ships by 
consumers resident in Germany 
may be subject to condition of 
reciprocity.  All countries  Indefinite  Need to ensure effective market 
access and equivalent treatment 
for German service suppliers.  
Publishing  
(Part of CPC 88442)  Foreign participation in companies 
in Italy exceeding 49% of the 
capital and voting rights, subject 
to a condition of reciprocity.  All countries  Indefinite  Need to ensure effective market 
access and equivalent treatment 
for Italian service suppliers.  
Newsagency Services  
(Part of CPC 962)  Foreign participation in companies 
in France publishing publications 
in the French language exceeding 
20% of the capital or of voting 
rights in the company, subject to 
a condition of reciprocity.  All countries  Indefinite  Need to ensure effective market 
access and equivalent treatment 
for French service suppliers.  
Press Agency Services  
(Part of CPC 962)  Market access in France.  Subject 
to a condition of reciprocity.  All countries  Indefinite  Need to ensure effective market 
access and equivalent treatment 
for French service suppliers.   
  S/C/W/381  
 
- 11 - Sector or subsector  Description of measure 
indicating its inconsistency 
with Article  II Countries to which the 
measure applies  Intended duration  Conditions creating the need 
for the exemption  
Direct non -life 
insurance  Measures based on a bilateral 
agreement between the European 
Communities UK and Switzerland 
on direct insurance other than life 
insurance.  This agreement 
provides on a reciprocal basis for 
freedom of establishment and the 
right to take up or pursue non -life 
insurance business for agencies 
and branches of undertakings 
whose head office is situated in the 
territory of the other contracting 
party.  Switzerland  Indefinite  Need to remove obstacles to the 
taking up and pursuit of non -life 
insurance business in the 
framework of an agreement 
between the European 
Communities UK and Switzerl and 
on non -life insurance consistent 
with the provisions of paragraph 3 
of the Annex of Financial Services  
Financial services  Measure granting favourable tax 
treatment (off -shore regime) in 
Italy to service suppliers trading 
with the countries to which the 
measure applies.  States in Central, Eastern and 
South -Eastern Europe, and all 
Members of the Commonwealth of 
Independent States  10 years  The need to aid the countries 
concerned in their transition to a 
market economy.   
  S/C/W/381  
 
- 12 - Sector or subsector  Description of measure 
indicating its inconsistency 
with Article  II Countries to which the 
measure applies  Intended duration  Conditions creating the need 
for the exemption  
All sectors  Measures taken in Denmark aimed 
at promoting Nordic cooperation, 
such as:  
 
-financial support to R&D projects 
(the Nordic Industrial Fund);  
 
-funding of feasibility studies for 
international projects (the 
Nordic Fund for Project 
Exports);  
 
-financial assistance to 
companies* utilizing 
environmental technology 
(the Nordic Environment 
Finance Corporation).  Sweden, Finland, Iceland and 
Norway  Indefinite  To maintain and develop Nordic 
cooperation.  
All sectors  Authorization for purchase of real 
estate in Italy by foreign natural 
persons and juridical persons 
granted on the basis of reciprocity.  All countries  Indefinite  The reciprocity requirement is put 
in place to ensure equivalent 
treatment for Italians in oth er 
countries.  
All sectors  Waiver of nationality requirements 
for the exercise, in Portugal, of 
certain activities and professions 
by natural persons supplying 
services from the designated 
countries  Countries of Portuguese official 
language (Angola, Brazil , Cape 
Verde, Guinea -Bissau, 
Mozambique and São Tomé & 
Principe)  Indefinite  This measure reflects historical 
links between Portugal and these 
countries.  
                                                
*     Applies to East European companies, which are cooperating with one or more Nordic companies.   
  S/C/W/381  
 
- 13 - Sector or subsector  Description of measure 
indicating its inconsistency 
with Article  II Countries to which the 
measure applies  Intended duration  Conditions creating the need 
for the exemption  
All sectors  Facilitation of access procedures in 
France for the exercise of certain 
services activities and professions 
by natural and legal persons of 
certain third countries  Francophone African countries, 
Algeria, Switzerland and Romania  10 years  This measure reflects historical 
links between France and these 
countries.  
All sectors  For citizens  of Commonwealth 
countries with a grandparent born 
in the UK, the UK waives the 
requirement for a work permit in 
all services sectors  Countries members of the British  
Commonwealth of Nations  Indefinite  This measure reflects historical 
links between these c ountries and 
the UK.  
All sectors  Measures based on bilateral 
agreements between the 
European Communities and/or 
their Member States UK and 
Switzerland with the objective of 
providing for the movement of all 
categories of natural persons 
supplying services  Switzerland  Indefinite  The agreements reflect a process 
of progressive trade liberalisation 
between the EC UK and its 
regional trading partner.   
  S/C/W/381  
 
- 14 - Sector or subsector  Description of measure 
indicating its inconsistency 
with Article  II Countries to which the 
measure applies  Intended duration  Conditions creating the need 
for the exemption  
All sectors  Measures based on existing or 
future bilateral agreements 
between the European 
Communities and certain Member 
States  UK and the countries and 
principalities concerned, providing 
for: 
 
a)the right of establishment for 
juridical and natural persons 
and; 
 
b)waiving the requirements of 
work permits for natural 
persons supplying services.  San Marino, Monaco, Andorra, 
Vatican City State.  Indefinite  The geographical situation and  
historical, economic and cultural 
links between the Member States 
of the European Communities UK 
and the countries and 
principalities concerned.  
All sectors  Measures based upon bilateral 
agreements between Italy and 
third countries guaranteeing work 
permits for seasonal workers.  States in Central Eastern and 
South -Eastern Europe and in the 
Mediterranean Basin.  Indefinite  Seasonal shortages of workers 
and to ensure the orderly 
movement of seasonal workers.   
  S/C/W/381  
 
- 15 - Sector or subsector  Description of measure 
indicating its inconsistency 
with Article  II Countries to which the 
measure applies  Intended duration  Conditions creating the need 
for the exemption  
All sectors - 
principally 
construction and hotel 
and catering  Measures based upon bilateral 
agreements between Community 
Member States the UK  and 
European and Mediterranean 
countries guaranteeing work 
permits, for the purposes of 
temporary contract work, on the 
basis of contracts between an 
employer of the third country 
concerned and a UK company in 
the Member State concerned , and 
which permit limited numbers of 
workers from the countries 
concerned to be employed in 
certain service sectors;  the 
numbers are subject to variation 
according to criteria established in 
the agreement.  States in Central, Eastern and 
South -Eastern Europe, including 
Russia, Ukraine, Belarus and 
Georgia, and in the Mediterranean 
Basin.  Indefinite.  
Exemption needed, for certain 
countries, only until an economic 
integration agreement is 
concluded or completed.  The agreements form part of a 
broader initiative to assist the 
countries concerned in their 
process of economic transition and 
development.   
 
 
 
_______________  
 
 
  
  S/C/W/381  
 
- 16 - PART IV  
CLEAN VERSION OF THE  UK LIST UK LIST OF ARTICLE II (MFN) EXE MPTIONS  
 
UNITED KINGDOM OF GR EAT BRITAIN AND NORT HERN IRELAND – LIST OF ARTICLE II (MFN) EXEMPTIONS  
 
Sector or subsector  Description of measure 
indicating its inconsistency 
with Article  II Countries to which the 
measure applies  Intended duration  Conditions creating  the need 
for the exemption  
Audiovisual services - 
Distribution of 
audiovisual works  Redressive duties which may be 
imposed in order to respond to 
unfair pricing practices, by other 
WTO Members distributors of 
audiovisual works.  All Members  Indefinite  Unfair pricing practices may cause 
serious disruption to the 
distribution of European works  
Audiovisual services  Measures taken to prevent, 
correct or counterbalance 
adverse, unfair or unreasonable 
conditions or actions affecting UK 
audiovisual services, products or 
service providers, in response to 
corresponding or comparable 
actions taken by other Members.  All Members  Indefinite  
The need for exemption will lapse 
together with corresponding 
exemption from other Members  Need to protect the UK from 
adverse,  unfair or unreasonable 
unilateral actions from other 
Members  
Audiovisual Services - 
production and 
distribution of 
audiovisual works 
through broadcasting 
or other forms of 
transmission to the 
public.  Measures which define works of 
European origin, in such a way as 
to extend national treatment to 
audiovisual works which meet 
certain linguistic and origin criteria 
regarding access to broadcasting 
or similar forms of transmission.  Parties to the Council o f Europe 
Convention on Transfrontier 
Television or other European 
countries with whom an 
agreement may be concluded.  Indefinite.  
Exemption needed, for certain 
countries, only until an economic 
integration agreement is 
concluded or completed.  The measures aim, within the 
sector, to promote cultural values 
with other countries in Europe, as 
well as achieving linguistic policy 
objectives    
  S/C/W/381  
 
- 17 - Sector or subsector  Description of measure 
indicating its inconsistency 
with Article  II Countries to which the 
measure applies  Intended duration  Conditions creating  the need 
for the exemption  
Audiovisual Services - 
Production and 
distribution of 
cinematographic 
works and television 
programmes  Measu res based upon 
government -to-government 
framework agreements, and 
plurilateral agreements, on 
coproduction of audiovisual works, 
which confer National Treatment 
to audiovisual works covered by 
these agreements, in particular in 
relation to distribution and  access 
to funding.  All countries with whom cultural 
cooperation may be desirable.  Indefinite  The aim of these agreements is to 
promote cultural links between the 
countries concerned  
Audiovisual  Services - 
Production and 
distribution of 
television 
programmes and 
cinematographic 
works  Measures granting the benefit of 
any support programmes (such as 
Action Plan for Advanced 
Television Services , MEDIA  or 
EURIMAGES ) to audiovisual 
works, and supplier s of such 
works, meeting certain European 
origin criteria.  European countries  Indefinite.  
Exemption needed, for certain 
countries, only until an economic 
integration agreement is 
concluded or completed.  These programmes aim at 
preserving and promoting the 
regional identity of countries 
within Europe which have long -
standing cultural links   
  S/C/W/381  
 
- 18 - Sector or subsector  Description of measure 
indicating its inconsistency 
with Article  II Countries to which the 
measure applies  Intended duration  Conditions creating  the need 
for the exemption  
Road transport - 
passenger and freight  Provisions in existing or future 
agreements on international road 
haulage (including combined 
transport - road/rail) and 
passenger transport, concluded 
between the UK and other WTO 
Members, which:  
 
-reserve or limit the provision of a 
transport service between 
the contracting parties or 
across the territory of the 
contracting parties to 
vehicles registered in each 
contracting party;  
 
-provide for tax exemption for 
such vehicles.  Switzerland, States in Central, 
Eastern and South -Eastern Europe 
and all Members of the 
Commonwealth of Independent 
States, Albania, Turkey, Lebanon, 
Israel, Syria, Jordan, Egypt, 
Tunisia, Algeria, Morocco, Cyp rus, 
Malta, Iran, Afghanistan, Iraq, 
Kuwait  Indefinite  The need for exemption is linked 
to the regional characteristics of 
the cross -border provision of road 
transport services  
CRS and sales and 
marketing of air 
transport services  The obligations of CRS system 
vendors or of parent and 
participating air carriers shall not 
apply where equivalent treatment 
to that applied under UK CRS rules 
is not accorded in the country of 
origin of the parent carrier or of 
the system vendor.  All countries where a CRS syste m 
vendor or a parent air carrier is 
located.  Indefinite  The need for the exemption results 
from the insufficient development 
of multilaterally agreed rules for 
the operation of CRS.   
  S/C/W/381  
 
- 19 - Sector or subsector  Description of measure 
indicating its inconsistency 
with Article  II Countries to which the 
measure applies  Intended duration  Conditions creating  the need 
for the exemption  
Direct non -life 
insurance  Measures based on a bilateral 
agreement between the UK and 
Switzerland on direct insurance 
other than life insurance.  This 
agreement provides on a 
reciprocal basis for freedom of 
establishment and the right to 
take up or pursue non -life 
insurance business for agencies 
and branches of undertakin gs 
whose head office is situated in the 
territory of the other contracting 
party.  Switzerland  Indefinite  Need to remove obstacles to the 
taking up and pursuit of non -life 
insurance business in the 
framework of an agreement 
between the UK and Switzerland 
on non-life insurance consistent 
with the provisions of paragraph 3 
of the Annex of Financial Services  
All sectors  For citizens of Commonwealth 
countries with a grandparent born 
in the UK, the UK waives the 
requirement for a work permit in 
all services sectors  Countries members of the 
Commonwealth of Nations  Indefinite  This measure reflects historical 
links between these countries and 
the UK.  
All sectors  Measures based on bilateral 
agreements between the UK and 
Switzerland with the objective of 
providin g for the movement of all 
categories of natural persons 
supplying services  Switzerland  Indefinite  The agreements reflect a process 
of progressive trade liberalisation 
between the UK and its regional 
trading partner.   
  S/C/W/381  
 
- 20 - Sector or subsector  Description of measure 
indicating its inconsistency 
with Article  II Countries to which the 
measure applies  Intended duration  Conditions creating  the need 
for the exemption  
All sectors  Measures based on existing or 
future bilateral agreements 
between the UK and the countries 
and principalities concerned, 
providing for:  
 
a) the right of establishment for 
juridical and natural persons 
and; 
 
b) waiving the requirements of 
work permits for natural 
persons supplying services.  San Marino, Monaco, Andorra, 
Vatican City State.  Indefinite  The historical, economic and 
cultural links between the UK and 
the countries and principalities 
concerned.  
All sectors - 
principally 
construction and hotel 
and catering  Measures based upon bilateral 
agreements between the UK and 
European and Mediterranean 
countries guaranteeing work 
permits, for the purposes of 
temporary contract work, on the 
basis of contracts between an 
employer of the country 
concerned and a UK company , and 
which permit limited numbers of 
workers from the countries 
concerned to be employed in 
certain service sectors; the 
numbers are subject to variation 
according to criteria established in 
the agreement.  States in Central, Eastern and 
South -Eastern Euro pe, including 
Russia, Ukraine, Belarus and 
Georgia, and in the Mediterranean 
Basin.  Indefinite.  
Exemption needed, for certain 
countries, only until an economic 
integration agreement is 
concluded or completed.  The agreements form part of a 
broader initiative to assist the 
countries concerned in their 
process of economic transition and 
development.   
 
 
__________