RESTRICTED  WORLD TRADE  
ORGANIZATION  TN/S/O/SLV 
10 December 2004 
 (04-5447) 
Council for Trade in Services  
Special Session  Original:   Spanish 
 
 
 
EL SALVADOR 
 
Initial Offer  
 
 
 The following communication, dated 29 Novemb er 2004, from the delegation of El Salvador 
is being circulated to the members of the Council for Trade in Services.  
_______________ 
 
El Salvador submits its initial offer in the fra mework of the negotiations on trade in services, 
pursuant to the mandate in paragraph 15 of th e Doha Declaration, dated 14 November 2001 
(WT/MIN(01)/DEC/1), and the Decision adopt ed by the General Council on 1 August 2004 
(WT/L/579).  
This initial offer is not a legal text and is su bmitted solely for the purpose of negotiation in the 
context of paragraphs 47 and 49 of the Doha Ministerial Declaration, especially in the light of the 
need to achieve an overall balance in the out come of the World Trade Organization (WTO) 
negotiations.  
This initial offer is conditional and El Salva dor therefore reserves the right to withdraw, 
modify or supplement this offer in whole or in pa rt, at any time, depending on the overall outcome of 
all the WTO negotiations and having due regard to  Articles IV and XIX:2 of the GATS.  It also 
reserves the right to submit technical amendments or corrections at any time.  
The contents of this initial offer should be unders tood as subject to any horizontal disciplines 
agreed upon in the framework of the ongoing negotiations of the Working Party on GATS Rules and the Working Party on Domestic Regulation, and to any other regulatory measures that might be 
agreed in other bodies concerned with  the commitments to be adopted.  
Pursuant to Article VI of the GATS, El Salv ador further reserves the right to establish, 
maintain and fully implement its national legislation in order to achieve legitimate policy objectives in 
areas such as consumer protection, health and the environment. 
This offer has been drawn up in conformity w ith the Guidelines for the Scheduling of Specific 
Commitments under the General Ag reement on Trade in Services (G ATS) contained in document 
S/L/92 and adopted on 23 March 2001.  
El Salvador is submitting this offer as proof of  its commitment to contribute to the gradual 
liberalization of trade in services, so as to ensure the achievement of economic development 
objectives and increased participation in trade in services.
  TN/S/O/SLV 
Page 2  
 
In accordance with the Guidelines and Procedur es for the Negotiations on Trade in Services, 
adopted by the Council for Trade in Services on 28 March 2001 (S/L/93), El Salvador will also 
continue to take part in the ongoing negotiating pro cess through the submission of requests in the 
bilateral, plurilateral a nd/or multilateral spheres.
 
 
   TN/S/O/SLV
 Page 3EL SALVADOR – CONSOLIDATED SCHEDULE OF SPECIFIC COMMITMENTS 
Modes of supply: (1)  Cross-border supply (2)  Consumption abroad (3)  Commercial presence (4)  Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
I. HORIZONTAL COMMITMENTS  
 ALL SECTORS INCLUDED IN 
THIS SCHEDULE 
  3) For a foreign company to be able to engage in 
commercial activities in El  Salvador, it must:  
  - prove that it is legally established in 
accordance with the law of the country in 
which it has been set up;  
 
 - permanently maintain in the cou ntry a 
representative with broad powers to 
perform all the acts that must be carried 
out and must have effect in the country;  
   - accept to be subject to the laws, courts and 
authorities of the country in respect of the 
acts performed or having effect in the 
country.  
 1), 2) 3) and 4)  Any type of income obtained in the 
country, other than dividends, paid to legal 
persons not domiciled in the country is subject to a deduction of 20 per cent.
 
 
Subsidies 
 
1), 2), 3) and 4)  The subsidies granted by El 
Salvador to the services sectors included in this schedule are unbound.  El Salvador 
likewise reserves the right to adopt or 
maintain any measure limiting national treatment for services sectors and providers 
of another Member for the purposes of 
obtaining a subsidy.
 
  
 All foreign investors wishing to be eligible for 
the benefits and guarantees extended to their 
investment must be registered in the foreign 
investment register kept by the Ministry of the 
Economy.  For this purpose, the Ministry shall 
take i nto account the nature, value, origin, 
destination and date of entry of the investment, 
as well as any modification during its presence 
in and exit from the country.1 
   
 Registered investment is subject to the 
following limitations:  
  -
  in the case of i nvestment in commercial 
and services activities, the amount of the 
net profits obtained in each financial year 
that may be remitted abroad is up to 50 per 
cent of the registered investment;    
                                                      
1 With a view to refining El Salvador's services commitments fr om a technical standpoint, it was considered advisable to strike out measures in the Limitations on 
market access column in this schedule that do not constitute specific limitations under GATS Articles XVI and XVII.  These meas ures nevertheless remain in effect.   TN/S/O/SLV 
Page 4 Modes of supply: (1)  Cross-border supply (2)  Consumption abroad (3)  Commercial presence (4)  Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
  - free remittance of payments for rights to 
use foreign trade marks and patents, 
technical assistance and other similar 
services, provided the value does not 
exceed 10 per cent of net sales.  
   
 Small-scale trade, industry and provision of 
services are reserved exclusively for persons who are nationals of El Salvador by birth, and 
the ceilings for the classification of such 
activities are established by law. 
"Also limits national treatment "   
 4) Every employer must employ Salvadorian 
nationals in a proportion of at least 90 per cent 
of the personnel of his enterprise.  In special circumstances the Ministry of Labour and 
Social Security may authorize the employment 
of more foreigners when it is difficult or 
impossible to replace them by nationals, but 
employers remain obliged to train Salvadorian personnel under the supervision and control of 
the Ministry within a period of not more than 
five years.  The amount of wages to Salvadorians may not be less than 85 per cent 
of the total wages paid.  This percentage may 
be changed with the authorization of the above-mentioned Ministry. 
 Foreigners may not hold the positions of 
administrator, director, manager or representative of a small-scale enterprise in the 
trade, industrial or services sector. 
 "Also limits national treatment "  
     TN/S/O/SLV
 Page 5Modes of supply: (1)  Cross-border supply (2)  Consumption abroad (3)  Commercial presence (4)  Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
II.  SECTOR-SPECIFIC COMMITMENTS 
 
Note:  **The two asterisks (**) indicate that the specified service is only part of the full range of activities covered by the headin g corresponding to the CPC.  
   
 
1. BUSINESS SERVICES  
A. Professional services 
 
 
a) Legal services 
  Solely:  Legal advisory and 
 information services 
 (86190**)  
 
   
 
  
 
 1)  None 
2)  None 
3)  None 4) In order to practise as a lawyer, in other words, 
to act as an attorney in  accordance with national 
law, the authorization of the Supreme Court of Justice is required under national legislation .  
If a Salvadorian who has acquired his degree 
outside El Salvador applies to be authorized to 
practise law, he must present his duly 
authenticated degree and show that it is 
recognized by the University of El  Salvador.  A 
foreigner wishing to  practise as a lawyer in El 
Salvador must be a graduate of a Salvadorian 
university.   
 To practise as a notary, Salvadorian citizenship 
is required.  
  
 
  
 
 1) None 
2) None 
3) None 4) Unbound, except as indicated in the horizontal 
section. 
    TN/S/O/SLV 
Page 6 Modes of supply: (1)  Cross-border supply (2)  Consumption abroad (3)  Commercial presence (4)  Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
b) Accounting and auditing 
services 
  Solely:  Financial auditing 
services (86211);  accounting 
review services (86212);  bookkeeping services, except 
tax returns (86220) 
 1) Unbound  
2) Unbound 
3) None 4) Unbound  1) Unbound 
2) Unbound 
3) None 4) Unbound  
c)  Tax advisory services 
 
 Solely:  Business tax 
planning (86301);  business tax return preparation 
(86302) 
 1) Unbound 
2) Unbound 
3) None 
4) Unbound 
 
 
 1) Unbound 
2) Unbound 
3) None 
4) Unbound  
d) Architectural services 
 
 Solely:  Advisory and pre-
design architectural services 
(86711);  architectural design 
services (86712) 
 1) None 
2) None 
3) None 4) Unbound 1) None 
2) None 
3) None 4) Unbound  
e) Engineering services 
  Solely:  Advisory and 
consultative engineering 
services (86721) 
 1) None 
2) None 3) None 
4) Unbound 1) None 
2) None 3) None 
4) Unbound    TN/S/O/SLV
 Page 7Modes of supply: (1)  Cross-border supply (2)  Consumption abroad (3)  Commercial presence (4)  Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
B. Computer and related  
 services     
a) Consultancy services 
related to the installation of computer hardware 
 
Solely:  Consultancy services related to the 
installation of computer 
hardware (84100) 
 1) Unbound 
2) Unbound 3) None 
4) Unbound 
 1) Unbound 
2) Unbound 3) None 
4) Unbound 
  
b) Software implementation 
services 
 
Solely:  Systems and 
software consultancy 
services (84210), systems analysis services (84220), 
systems design services 
(84230), programming 
services, systems 
maintenance services (84250)  
 1) Unbound 
2) Unbound 
3) None 4) Unbound 1) Unbound 
2) Unbound 
3) None 4) Unbound  
c) Data processing services 
  Solely:  Input preparation 
services (84310);  data 
processing services (84320);  time-sharing services 
(84330);  other data 
processing services (84390)
 
 1) None 
2) None 3) None 
4) Unbound, except as indicated in the horizontal 
 section. 
 1) None 
2) None 3) None 
4) Unbound, except as indicated in the horizontal  
 section. 
   TN/S/O/SLV 
Page 8 Modes of supply: (1)  Cross-border supply (2)  Consumption abroad (3)  Commercial presence (4)  Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
C. Research and development 
services    For all of sector 1.C, 
and pursuant to GATS 
Article XIV, El Salvador will 
administer these 
concessions according to the country's plans 
for the protection of 
biodiversity, knowledge and natural 
resources.
 
 
a) R&D services on natural 
sciences and engineering 
 
Solely:  R&D services relating to physical 
sciences (85101)  
 
 
1) Unbound 2) Unbound 
3) None 
4) Unbound   
 
 
1) Unbound 2) Unbound 
3) None 
4) Unbound   
b) R&D services on social 
sciences and humanities 
 
Solely:  R&D services relating to sociology and 
psychology (85201) 
 1) Unbound 
2) Unbound 
3) None 
4) Unbound  1) Unbound 
2) Unbound 
3) None 
4) Unbound   
E. Rental/leasing services  
 without operators  
 c) Rental/leasing services 
relating to other transport 
equipment without operators 
 
 Solely:  Leasing of cars 
(83101**) 
  
 
 1) Unbound 
2) None 
3) None 4) Unbound, except as indicated in the horizontal  
 section.  
 
 1) Unbound 
2) None 
3) None 4) Unbound, except as indicated in the horizontal 
 section.    TN/S/O/SLV
 Page 9Modes of supply: (1)  Cross-border supply (2)  Consumption abroad (3)  Commercial presence (4)  Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
F. Other business services  
    
a) Advertising services 
 
 Solely:  Sale of advertising 
space (87110**);  planning, 
creating and placement 
services of advertising (87120);  other advertising 
services (87190)
 
 1) Unbound   
2) Unbound   
3) None 4) Unbound, except as indicated in the horizontal  
 section. 
 1) Unbound   
2) Unbound 
3) None 4) Unbound, except as indicated in the horizontal  
 section. 
   TN/S/O/SLV 
Page 10 Modes of supply: (1)  Cross-border supply (2)  Consumption abroad (3)  Commercial presence (4)  Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
2. COMMUNICATION 
SERVICES  
 
C. Telecommunications 
services  
 
Services provided at 
domestic and international 
level through public and non-public basic 
telecommunications 
networks using any network technology (e.g. wire-based, 
radio, satellite, cable and 
television);  based on the use of facilities and based on 
resale;  for each of the 
following services:
 
 
a. Mobile and fixed voice  
 telephony services  
 
b. Packet-switched data 
transmission services 
 
c. Circuit-switched data 
transmission services 
 
d. Telex services  
e. Telegraph services
 
 
f. Facsimile services 
 
g. Private-leased circuit   services 
  
 
 1) None 
 
 2) None 
 
3) Application must be made to the SIGET 
(Electricity and Telecommunications 
Supervisory Authority) for a concession or 
licence to use the regulated frequency and allocation of numbers a nd multi-carrier system 
operator selection key. 
  Access to INTELSAT facilities through the 
signatory. 
  As indicated in the horizontal section. 
  
 
 1) None, except as indicated in the horizontal 
 section. 
 2) None 
 
3) None   On the basis of the legal 
framework of the 
Telecommunications Law (Legislative Decree 
807 of 12
 September 
1996 No. 142 of 6 
November 1997 ), 
El Salvador submits the 
attached reference-paper commitments. 
 
Prices and conditions of telecommunications 
services to final users 
will be established by free negotiation except 
in the cases provided for 
in the Telecommunications 
Law. 
   TN/S/O/SLV
 Page 11Modes of supply: (1)  Cross-border supply (2)  Consumption abroad (3)  Commercial presence (4)  Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
o. Other 
 
- Radiocommunication 
frequency 
- Paging 
- Mobile cellular services    
- Leasing of transmission 
media and switching points 
- Public telephones 
 4) None, except as indicated in the horizontal  
 section.  
 4) None, except as indicated in the horizontal  
 section.  
  
 Value-added services 
 
 Solely:  mobile telephone 
services (75213);  Business 
services by private satellite 
networks (75221**, 
75222**);  data transmission services (75231, 75232);  
programme transmission 
services (75241, 75242);   
paging services (75291);   
teleconferencing services 
(75292);  radioelectric link concentration systems 
(75299**);  radio and 
television cable services (75300);  equipment rental 
services (75410);  equipment 
sales services (75420); 
 
 1) Unbound 
2) None 
3) It is necessary to apply to ANTEL for a 
concession or licence to provide these 
services, and the applicant must be domiciled 
in El Salvador  
Application must be made to the SIGET 
(Electricity and Telecommunications 
Supervisory Authority) for a concession or 
licence to use the regulated frequency and allocation of numbers and multi-carrier 
system operator selection key. 
The applicant must be domiciled in El 
Salvador. 
4) Unbound, except as indicated in the horizontal  
 section. 1) Unbound 
2) None 
3) None 
  
 
  
 
  
 
 4) Unbound, except as indicated in the horizontal  
 section.   TN/S/O/SLV 
Page 12 Modes of supply: (1)  Cross-border supply (2)  Consumption abroad (3)  Commercial presence (4)  Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
connection services (75430);  
consulting services (75440);  
communication equipment maintenance services 
(75450)
 
 
D. Audiovisual services  
 
d. Radio and television transmission services  
 
Solely:  television broadcast transmission services 
(75241);  radio broadcast 
transmission services (75242) 
  
 
  
 
 
 
 
1) Unbound 2) None 
3) Concessions and licences for free-reception 
broadcasting services are granted solely to nationals of El Salvador by birth or to 
Salvadorian legal persons.  In the case of 
Salvadorian legal persons, at least 51 per cent of the capital must be in Salvadorian 
hands.  The SIGET must be notified of the 
capital and any changes thereto. 
4) Unbound, except as indicated in the 
horizontal section.  
  
 
  
 
 
 
 
1) Unbound 2) None 
3) None 
  
 
  
 
 4) Unbound, except as indicated in the horizontal 
section.  
  
6. ENVIRONMENTAL 
 SERVICES  
D. Other
 
    
 Solely:  Cleaning services 
of exhaust gases (94040);  
noise abatement services (94050);  nature and 
landscape protection 
services (94060);  other 
environmental protection 
services (94090) 
 1) Unbound 
2) Unbound 
3) Application must be made to the municipal 
authorities for the concession or licence to 
provide refuse disposal services, and the 
applicant must be domiciled in El Salvador. 
4) Unbound 
 1) Unbound 
2) Unbound 
3) Unbound  
 
 
4) Unbound 
    TN/S/O/SLV
 Page 13Modes of supply: (1)  Cross-border supply (2)  Consumption abroad (3)  Commercial presence (4)  Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
7. FINANCIAL SERVICES 
 
B. Banking and other financial 
services  
 
a) Acceptance of deposits and 
other repayable funds from 
the public 
 Solely: 
- Sight deposits in banks and 
branches of foreign banks (81116**); 
 
- time deposits and savings 
accounts (81116**, 
81119**). 
  
 
  
 
1) Unbound 2) Unbound 
3) Unbound, except with respect to measures of 
the type specified in Article XVI.2(f) of the 
General Agreement on Trade in Services, as 
described below: 
  No natural or legal person may, either directly 
or through an intermediary, own shares in a 
bank or finance company representing more than 1 per cent of the capital of the institution, 
without prior authorization by the Supervisory 
Department.  This percentage includes shares owned in shareholding companies which in 
turn own shares in the respective financial 
institutions. 
  
 
  
 
1) Unbound 2) Unbound 
3) Unbound   
   TN/S/O/SLV 
Page 14 Modes of supply: (1)  Cross-border supply (2)  Consumption abroad (3)  Commercial presence (4)  Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
b) Loans of all types, 
including inter alia , 
personal loans, mortgage loans, factoring and 
financing of commercial 
transactions. 
 
 Solely: 
 - Granting of mortgage loans 
(81131); 
 - personal instalment loans 
(81132); 
 - issue and acceptance of 
credit cards and 
documentary credits (81139**). 
  At least 75 per cent (75%) of ownership of 
shares in banks or finance companies set up in 
El Salvador must be maintained for the following persons: 
 
 (a)   Salvadorian or Central American natural 
persons; 
 
 (b)  Salvadorian legal persons whose 
shareholders or majo rity members are the 
natural persons referred to in the preceding 
subparagraph; 
 
 (c)   Central American banks in whose country 
of origin there is supervision in accordance with relevant international practices and 
which meet the legal and regulatory 
provisions in force in their country of origin; 
     TN/S/O/SLV
 Page 15Modes of supply: (1)  Cross-border supply (2)  Consumption abroad (3)  Commercial presence (4)  Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
C. Other financial services that 
may be undertaken by banks 
and finance companies  
 
Solely: 
 - Wholesale deposit services 
(financial institutions are 
excluded from receiving site deposits withdrawable by 
cheque or other means) 
(81115**) 
 
- security custody services 
and financial reporting services for clients 
(81319**); 
 - issue and placing of 
securities, bonds and 
mortgage bonds in local or 
foreign currency (81321**, 
81322**); 
 
- operations with securities of 
other companies, the Central Reserve Bank or the State 
Bank or guaranteed by the 
latter, and operations on the secondary mortgage market 
(81321**);
 
 
  d) Foreign banks and other financial 
institutions in whose country of origin 
there are prudential regulations and supervision in accord ance with relevant 
international practices and which are 
classified as first grade financial institutions by internationally recognized 
risk rating companies; as well as 
companies controlling first grade foreign banks and other financial institutions 
subject to consolidated supervision in 
accordance with relevant international practices.  Subject to  the opinion of the 
Central Bank, the Supervisory 
Department issues guidelines for determining the eligible institutions. 
 
4) Unbound, except as indicated in the horizontal  section. 
  
 
  
 
  
 
  
 
  
 
  
 
4) Unbound    TN/S/O/SLV 
Page 16 Modes of supply: (1)  Cross-border supply (2)  Consumption abroad (3)  Commercial presence (4)  Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
- financial intermediation for 
the placement of resources 
of national or foreign institutions and enterprises 
(81331**); 
 - foreign exchange buying 
and selling operations 
(81333); 
 
- transport of cash and 
securities (81334). 
 
Note on the codes utilized: 
  the classification system 
used is that in 
MTN.GNS/W/120 of the WTO and the 1991 CPC of 
the United Nations.
 
      TN/S/O/SLV
 Page 17Modes of supply: (1)  Cross-border supply (2)  Consumption abroad (3)  Commercial presence (4)  Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
9. TOURISM SERVICES 
 
A. Hotels and restaurants  
 
a) Hotels 
  Hotel lodging services 
(64110);  motel lodging 
services (64120);  children's holiday camp services 
(64191);  
 
1) Unbound
* 
2) None 
3) None 
4) Unbound , except as indicated in the horizontal  
 section.  
 
  
 
1) Unbound* 
2) None 
3) None 
4) Unbound, except as indicated in the horizontal   section.  
 holiday centre and holiday 
home services (64192);  letting services of furnished 
accommodation (64193);  
youth hostel and mountain shelter services (64194);  
camping and caravanning 
site services (64195);  sleeping car services and 
sleeping services in other 
transport media (64196);  
other lodging services n.e.c. 
(64199) 
    
                                                      
*Due to lack of technical feasibility.  
  TN/S/O/SLV 
Page 18 Modes of supply: (1)  Cross-border supply (2)  Consumption abroad (3)  Commercial presence (4)  Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
b) Restaurants 
 
Solely:  Meal serving without self-service 
(64210**-64230** and 
64290**);  meal serving services in self-service 
facilities (64220);  beverage 
serving services without entertainment (64310);  
beverage serving services 
with entertainment (64320)
 
 1) Unbound* 
2) None 
3) None 4) Unbound, except as indicated in the horizontal  
 section. 1) Unbound
* 
2) None 
3) None 4) Unbound, except as indicated in the horizontal  
 section.  
B. Travel agencies and tour 
operators services  
  Solely:  Travel agencies and 
tour operators services 
(74710)   
 
 1) Unbound 
2) Unbound 
3) None 4) Unbound, except as indicated in the horizontal  
 section. 
  
 
 1) Unbound 
2) Unbound 
3) None 4) Unbound, except as indicated in the horizontal  
 section. 
  
 
C. Tourist guides services  
  Tourist guides services 
(74720)  
 1) Unbound 
2) Unbound 
3) None 4) Unbound, except as indicated in the horizontal  
 section. 
  
 1) Unbound 
2) Unbound 
3) None 4) Unbound, except as indicated in the horizontal  
 section. 
  
                                                      
* Due to lack of technical feasibility . 
   TN/S/O/SLV
 Page 19Modes of supply: (1)  Cross-border supply (2)  Consumption abroad (3)  Commercial presence (4)  Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
11. TRANSPORT SERVICES 
 
C. Air transport services  
 
 Solely: 
    
d) Maintenance and repair 
services2 
 1) None 
2) None 
3) Application must be made to the CEPA for the 
concession or licence to provide maintenance and repair services, and the applicant must be 
domiciled in El Salvador. 
4) Unbound, except as indicated in the horizontal   section. 
 1) None 
2) None 
3) None 
  
 
4) Unbound, except as indicated in the horizontal   section.  
 
                                                      
2 As defined in the Annex on Air Transport, paragraph 6(a). TN/S/O/SLV 
Page 20  
 
 
REFERENCE PAPER
 
 Scope
 
 
 The following are definitions and principl es on the regulatory framework for the basic 
telecommunications services.  Definitions
 
 
 Users  mean services consumer s and services suppliers. 
  Essential facilities
 mean facilities of a public telecomm unications transport network or service 
that:  
 (a) Are exclusively or predominantly provided by a single or limited number of suppliers;  
and 
 
(b) cannot feasibly be economically or technica lly substituted in order to provide a service. 
  A major supplier
 means a supplier which has the ability to materially affect the terms of 
participation (having regard to price and supply) in  the relevant market for basic telecommunications 
services as a result of:   (a) Control over essential facilities;  or  
 (b) use of its position in the market. 
  1. Competitive safeguards
 
 1.1 Prevention of anti-competitive practices in telecommunications
 
 
 Appropriate measures will be maintained for the purpose of pr eventing suppliers who, alone or 
together, are a major supplier  from engaging in or continui ng anti-competitive practices. 
 1.2 Safeguards
 
 
 The anti-competitive practices referred to above include in particular:   (a) Engaging in anti-competitive cross-subsidization;   (b) using information obtained from competitors with anti-competitive results;  and 
 
 (c) not making available to other services s uppliers on a timely basis technical information 
about essential faciliti es and commercially relevant info rmation which are necessary for 
them to provide services. 
 
2. Interconnection
 
 2.1  This section applies to linking with s uppliers providing commerc ial telecommunications 
services in order to allow the users of one supplier to communicate with users of another supplier and to 
access services provided by a nother supplier, where specific  commitments are undertaken. 
  TN/S/O/SLV 
 Page 21 
 
 
2.2 Interconnection to be ensured  
  Interconnection with a major supplier will be en sured at any technically feasible point in the 
network.  Such interconn ection will be provided: 
 
(a) Under non-discriminatory terms, cond itions (including tec hnical standards and 
specifications) and rates and be of a quality no less favourable than that provided for its 
own like services or for like services of non-affiliated service suppliers or for its 
subsidiaries or other affiliates; 
 
 (b) at all technically feasible levels and ex changes in order to ensure termination in the 
network of one of the parties of tele communications originating in any other 
commercial network, or tran sfer telecommunications originating in the network of one 
of the parties to any other commercial telecommunications network selected by the end-user implicitly or explicitly; 
 
 (c) in a timely fashion, on terms and co nditions (including technical standards and 
specifications) and at cost-oriented rates that are transparent, reasonable, having regard to economic feasibility, and sufficiently unbundled  so that the supplier need not pay for 
network components or fa cilities that it does not require for the service to be provided;  
and 
 
 (d) upon request, at points in addition to th e network termination points offered to the 
majority of users, subject to charges that reflect the cost of construction of necessary 
additional facilities. 
 
2.3 Public availability of the procedures for interconnection negotiations
 
  The procedures applicable for access to essential facilities for interconnection with a supplier 
will be made publicly available.  2.4 Transparency of interconnection arrangements
 
 
 It is ensured that a supplier will make publicly  available either its inte rconnection agreements or 
a reference interconnection offer.  2.5 Interconnection:  dispute settlement
 
 
 A service supplier requesting in terconnection with a major supplie r will have recourse, either: 
  (a) At any time;  or   (b) after a period of 40 days wh ich has been made publicly known; 
 
to the regulatory body referred to in paragraph 5 below,  to resolve disputes rega rding appropriate terms, 
conditions and rates for interconnection within a reasonable period of time, to the extent that these have 
not been established previously.  
 TN/S/O/SLV 
Page 22  
 
3. Universal service
 
  Any Member has the right to define the kind of universal service obligation it wishes to 
maintain.  Such obligations will not be regarded as anti-competitive per se , provided they are 
administered in a tr ansparent, non-discriminatory and compet itively neutral manner and are not more 
burdensome than necessary for the kind of universal service defined by the Member. 
 4. Public availability of licensing criteria
 
  Where a licence is required, the following will be made publicly available: 
 
 (a) All the licensing criteria  and the period of time norma lly required to reach a decision 
concerning an application for a licence;  and 
  (b) the terms and conditions of individual licences. 
 
 The reasons for the denial of a licence w ill be made known to the applicant upon request. 
 5. Independent regulators
 
  The regulatory body will be separate from,  and not accountable to, any supplier of 
telecommunications services.  The decisions of and the procedures used by regula tors will be impartial 
with respect to all market participants.  6. Allocation and use of scarce resources
 
 
 Any procedures for the allocation and use of scarce resources, including frequencies, numbers 
and rights of way, will be carr ied out in an objective, timely, transparent and non-discriminatory 
manner.  The current state of allocated frequency ba nds will be made publicly available, but detailed 
identification of frequencies allocated for specific government us es is not required. 
 
_______________ 
 
   TN/S/O/SLV
 Page 23EL SALVADOR - FINAL LIST OF ARTICLE II (MFN) EXEMPTIONS 
 
Sector or subsector Descri ption 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  General Treaty of Central American Economic Integration 
 
The signatory countries include a "Central American exemption 
clause" in trade treaties concluded 
with other countries on the basis of MFN treatment 
 El Salvador, Guatemala, 
Honduras, Nicaragua and 
Costa Rica Indefinite To lay the basis for a customs union 
and the progressive economic 
integration of the signatory countries 
Financial services Convention on facilitating the 
financial integration of countries of the Central American Isthmus 
 El Salvador, Honduras and 
Nicaragua Indefinite To facilitate the integration of 
countries of the Central American Isthmus
 
 After 1 January 1995, if the signatory 
countries have reached a satisfactory 
degree of harmonization and 
homogenization of their 
macroeconomic polic ies, resources 
received by subsidiaries in one signatory State may be invested in 
other signatory States. 
    
 
 
 
__________