RESTRICTED  WORLD TRADE  
ORGANIZATION  S/C/W/255 
11 February 2005 
 (05-0584) 
Council for Trade in Services Original:   English 
  
 
COMMUNICATION FROM CHINA 
 
The Second Review of MFN Exemptions 
 
Questions on the Movement of Natural Persons  
 
 
 The following communication, dated 9 February  2005, from the delegation of China is being 
circulated to the Members of the Council for Trade in Services.  
 
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1. In the context of the second review of MFN Exemptions, China would like to raise the 
following follow-up questions (sections A and B)  on the basis of the WTO secretariat document 
JOB (04)/114.  These questions are focused on hor izontal mode 4 MFN exemptions.  Meanwhile, 
questions raised by China to the United States in November 2004 are contained in section C. 
A. GENERAL QUESTIONS : 
2. For each Member that has mode 4 MFN exemption(s), please indicate if the exemption has 
expired or will be terminated by the end of a period of 10 years.  If not, please clarify the expiration time. 
B. S
PECIFIC QUESTIONS : 
3. Brunei Darussalam  
Please explain which members are the "traditi onal sources" and what categories of workers 
are included. 
 4. Cyprus
 
(a) Has Cyprus established any criteria unilate rally or agreements with EU Member 
States? 
(b) What kinds of occupations are open to the EU nationals? 
5. Estonia  
With which members has Estonia established reciprocal agreements? S/C/W/255 
Page 2  
 
 6. The European Communities and its Member States
 
(a) Future agreements are also included con cerning waiving of the requirements of work 
permits.  Should future agreements  be listed into MFN exemptions? 
(b) For construction, hotel and catering services, the intended duration for MFN 
exemption is described as "until an economic  integration agreement is concluded or 
completed".  Are there any such agreemen ts with the listed members? Is this a 
deviation of Article 6 of GATS Annex on Article II Exemptions? 
7. Indonesia  
(a) "Low level occupations are reserved for I ndonesian citizens"—this limitation seems 
to be a MA limitation rather than a MFN exemption.  
(b) What kind of low-level occupations are open to the listed members?  
8. Jordan  
What charges are included in "service fees"? 
 
9. Liechtenstein  
The requirement of "The right of presence of natural persons in all sectors is dependent on 
reciprocity for services providers from Liechtenste in" seems to be a MA limitation rather than 
a MFN exemption. 
 10. Malta
 
Will the exemption be terminated with Malta joining the E.U.? 
 
11. Philippines  
Which members have the Philippines concluded treaties on entry rights for traders and 
investors?  What are the expiry dates? 
 
12. Singapore  
(a) Which members are Singapore's traditional sources of foreign service providers? 
(b) Under the intended duration, it says "Singapore will periodically review this in the 
light of domestic and national policy consid erations".  Does it mean that under certain 
circumstances, even workers from the traditional sources are not permitted to provide services in Singapore? If not, what does it mean? 
13. The United States
 
Please specify the members described in sec tion 204 of the Immigration Act of 1990.  S/C/W/255 
 Page 3 
 
 
 C. QUESTIONS TO THE UNITED STATES RAISED IN NOVEMBER 2004 
1. Taxation measures (Page 34) 
14. It is noted that the condition that created the need for the exemption is "to foster efficient 
international taxation policies".  For clarification purposes, please explain the meaning of "efficient international taxation policies ". 
2. Insurance services (Page 90) 
15. It is noted that these MFN exemption measure s are conducted in a circumstance under which 
a Member adopts or applies a measure that compel, or has the effects of compelling a person of the US to reduce its share of ownership in an insurance services provider.  
(a) Please elaborate the circumstances that have the effect of compelling a person of the 
US to reduce its share of ownership.  
(b) Please describe whether the exemption has b een  actually used since its introduction 
and, if so, please provide the relevant information.   
 
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