WORLD TRADE  
ORGANIZATION  WT/REG170/8/Rev.1 
1 May 2009 
 (09-2114) 
Committee on Regional Trade Agreements  
  
 
  
 
FACTUAL PRESENTATION 
 
Enlargement of the European Union to 
25 Member States 
(Services) 
 
Report by the Secretariat 
 
Revision  
 
 
 
This report, prepared for the considerat ion of the Enlargement of the European 
Union to 25 Member States, has been drawn up by the WTO Secretariat on its 
own responsibility and in full consultation w ith the Parties.  The report has been 
drawn up in accordance with the rules and procedures contained in the Decision for a Transparency Mech anism for Regional Trade Agreements (WT/L/671). 
 
Any technical questions arising from this report may be addressed to 
Mrs. Catherine Hennis-Pierre (tel: + 41 22 739 5640), or Mr. Markus Jelitto 
(tel: +41 22 739 5885).  
  
  WT/REG170/8/Rev.1 
 Page iii 
 
 
  TABLE OF CONTENTS 
Page 
 
I. TRADE ENVIRONMENT 1  
A. M AIN ECONOMIC CHARACTERISTICS OF THE EUROPEAN COMMUNITIES  1 
B. T RADE IN COMMERCIAL SERVICES  3 
1. Overview of NMS10's trad e in commercial services 3  
2. Trade in services between the EC15 and the NMS10 3  
3. External trade in services of the EC15 and the NMS10 4  
C. F OREIGN DIRECT INVESTMENT AND FOREIGN AFFILIATES TRADE  7 
1. Recent trends in foreign di rect investment flows 7  
2. Foreign investment stocks 8  
3. Foreign affiliate statistics 9  
II. CHARACTERISTICS AND EFFECTS OF THE ACT OF ACCESSION 10  
A. B ACKGROUND INFORMATION  10 
B. S COPE AND DEFINITIONS  13 
III. GENERAL PROVISIONS ON TRADE IN SERVICES UNDER THE EC TREATY 15  
A. M ARKET ACCESS , NATIONAL TREATMENT , AND MFN 17 
B. C OMMERCIAL PRESENCE AND MOVEMENT OF NATURAL PERSONS  17 
C. R EGULATORY PROVISIONS  18 
1. Domestic regulation, mutual recognition, and the acquis communautaire  18  
2. Competition policy and State aid 18  
3. Safeguards 19  
D. T RADE IN SERVICES LIBERALIZATION AS A RESULT OF ACCESSION  19 
1. General overview 19  
2. Main EC horizontal provisions 21  
3. Main sectoral changes 23  
IV. GENERAL PROVISIONS OF  THE EU TREATY 28  
A. E XCEPTIONS  28 
B. A CCESSION  28 
C. D ISPUTE SETTLEMENT  29 
ANNEX I 30 
ANNEX II 37 
ANNEX III 39 
 
  WT/REG170/8/Rev.1 
 Page 1 
 
 
 ENLARGEMENT OF THE EUROPEAN UNION TO 
25 MEMBER STATES (SERVICES) 
Factual Presentation by the Secretariat  
  
I. TRADE ENVIRONMENT 
 
A. M
AIN ECONOMIC CHARACTERISTICS OF THE EUROPEAN COMMUNITIES  
  1. On 1 May 2004, the European Communities fo rmed an entity with 25 member States, 
ten members having acceded on that date.
1  The 25 Member States of the European Communities 
(EC25) cover a land area of 3.9 million km2 and have a combined population of 460 million 
(Table I.1).  The 15 "old" member States of the European Communities (EC15) cover a land area of 
3.2 million km2 and have a combined population of 385 million.  With the ten new member States 
(NMS10) – Cyprus, Czech Republic , Estonia, Hungary, Latvia, L ithuania, Malta, Poland, Slovak 
Republic, and Slovenia – the EC population was enlarg ed by close to 20%, its land area by 23.5% and 
its GDP by 5%.  On average, the NMS10's GDP per capita is about one-quarter of the EC15's.  Poland 
contributes almost half of the EC's increase in population and land area, while Cyprus and Slovenia 
have the highest per capita incomes among the NMS10. 
Table I.1 - Selected indicators, 2005 
 GDP  
(€) Share in gross value added (2004)   
(%) 
 Area 
('000 km2) Population 
(million) Total 
(billion) Per 
capita Agriculturea Industryb Services External 
current 
account  
(% of GDP)  
EC (25) 3,894 459.5 10,889 23,501 2.1 26.5 71.5 -0.9 
EC (15) 3,154 385.4 10,326 26,584 2.0 26.2 71.8 0.4 
Austria 84 8.2 245 30,033 1.9 30.3 67.8 -0.5 
Belgium 31 10.4 299 28,545 1.0 24.8 74.3 7.6 
Cyprus 9 0.7 14 17,909 3.1 20.3 76.6 -3.5 
Czech Republic 79 10.2 100 9,629 3.3 37.9 58.8 -6.1 
Denmark 43 5.4 208 38,476 1.9 24.0 74.0 2.7 
Estonia 45 1.3 11 7,825 4.3 28.9 66.9 -13.2 
Finland 305 5.2 157 29,661 3.1 30.2 66.7 4.2 
France 544 60.6 1,718 28,236 2.5 21.3 76.3 0.3 
Germany 357 82.5 2,245 27,241 1.1 29.1 69.8 2.3 
Greece 132 11.1 181 16,351 5.7 21.2 73.1 -6.4 
Hungary 93 10.1 89 8,698 3.9 30.8 65.2 -9.0 
Ireland 70 4.1 162 39,015 2.5 37.5 60.0 -1.4 
Italy 301 58.5 1,423 24,242 2.5 27.3 70.2 -1.4 
Latvia 65 2.3 13 5,545 4.1 22.6 73.3 -8.2 
Lithuania 65 3.4 21 6,010 5.9 32.7 61.5 -6.9 
Luxembourg 3 0.5 30 64,450 0.6 16.8 82.8 8.2 
Malta 0 0.4 5 11,132 2.5 23.7 73.6 -5.7 
Netherlands 34 16.3 509 30,782 2.1 23.9 74.0 3.3 
Poland 313 38.2 244 6,301 5.1 31.0 64.0 -2.0 
Portugal 92 10.5 149 13,985 3.3 25.1 71.7 -5.7 
Slovak Republic  49 5.4 28 6,927 3.9 35.1 60.9 -0.9 
Slovenia 20 2.0 38 13,703 2.5 35.2 62.2 -0.4 
Spain 505 43.0 908 21,012 3.5 29.1 67.3 -2.8 
Sweden 411 9.0 288 31,957 1.8 27.7 70.5 6.4 
United Kingdom 244 60.0 1,805 29,459 1.0 24.1 75.0 -1.7 
a Including  hunting, forestry and fishing.  
b Including Manufacturing, mining and construction. 
Source:  WTO (2007), Trade Policy Review, based on Eurostat (2005) Yearbook .  Viewed at: http://epp.eurostat.cec.eu.int;  
and DG Agriculture (2005), Key:  Agricultural Statistics , Brussels. 
                                                      
1 This section partly draws on the various Tr ade Policy Reviews of the European Communities. WT/REG170/8/Rev.1 
Page 2  
 
  2. In addition to being the world's leading merchandise trader, accounting for 18% of world 
merchandise trade in 2005
2, the EC25 is also the world's leadi ng services trader; in 2004, it accounted 
for 27.8% of global services exports  and 24.5% of imports.  Extr a-EC25 commercial services exports 
were valued at close to €400 billion in 2005, and imported services were worth approximately 
€350 billion, both up by 9% from 2004 (Chart I.1) .  The EC25 runs a services account surplus of 
€48 billion in 2005.  Overall, the EC's current acc ount has turned from a surplus in 2002 (0.1% of 
GDP) to a deficit following enlargement, estimated at  nearly 0.9% of GDP in 2005.  Luxembourg had 
the largest current account surplus in 2005, followe d by the Netherlands, Sweden, and Germany.  The 
largest deficits in the same year were registered in Malta, followed by Latvia, Estonia, and Portugal. 
3. The EC is the world's biggest recipient and s upplier of foreign direct investment (FDI), 
accounting for around half of global FDI stocks (inward a nd outward).  It is also a net investor in the 
rest of the world. 
 
050100150200250300350400450500
Import Export Import Export Import Export Import ExportChart I.1
Extra-EC25 trade in commercial services, 2003-06 
 € million 
Source:European Union 15 NMS 10
Eurostat statistical database.  Viewed at: http://epp.eurostat.ec.europa.eu.2003 2004 2005 2006
 
 
  
                                                     
 
2 WTO Trade Profiles, view ed at:  http://stat.wto.org.  The EC  was the largest merchandise exporter 
and second largest importer, with  extra-EC25 exports and imports of €969 billion and €1,032 billion, 
respectively.  The merchandise trade defic it amounted to €134.4 billion in 2005.    WT/REG170/8/Rev.1 
 Page 3 
 
 
 B. TRADE IN COMMERCIAL SERVICES  
4. Depending on the location of the supplier and the consumer, the General Agreement on Trade 
in Services (GATS) defines four modes of supply fo r trade in commercial services.  In addition to the 
cross-border supply (mode 1), where both the supplie r and the consumer rema in in their respective 
home territories, GATS also covers cases where consumers are outside their home territory to 
consume services (mode 2 – consumption abroad), or cases where service suppliers  are in the territory 
of the consumers to provide their services, whether by establishing affiliates through direct investment 
abroad (mode 3 – commercial presence), or thro ugh the presence of natural persons (mode 4).  
5. The services account of the balance of payments  can be used to derive estimates covering 
trade in commercial services for Modes 1,2 and 4.   This section presents trade in commercial services3 
as recorded by the Statistical Office of the Europ ean Communities (Eurostat) in its International Trade 
in Services database.4  EC25 services exports and imports are measured respectively as credits and 
debits in the current account of the EC25's aggr egate balance of payments with non-EC25 countries. 
The data originates from balance of payments statistics, and does not reflect the sector and modal definitions of the WTO's General Agreement on Trad e in Services (GATS).  Data are presented for 
the 2003-05 period, which constitutes the first series  of three consecutive years for which bilateral 
services' trade data are available for the NMS10. 
1. Overview of NMS10's trade in commercial services 
6. The value of trade in commercial services between and among the EC15, the NMS10 and the 
rest of the world is presented in Chart I.2.  It show s that the value of trade directly concerned by the 
legislative and regulatory changes brought by the enla rgement of 2004 is relatively small.  Indeed, the 
sum of the NMS10's trade in commercial services with  (a) each-other; (b) the EC15; and (c) the rest 
of the world does not exceed €40 b illion on average during 2003-05.  In comparison, intra-EC15 trade 
in 2003-05 was considerably larger, as was the EC 15's trade with the rest of the world except the 
NMS10 (extra-EC25 trade).   
2. Trade in services between the EC15 and the NMS10 
7. As can be seen from Chart I.2, the value of trade between the two groups of countries (the 
EC15 and the NMS10) was in the €21-26 billion range during 2003-05.  A detailed breakdown of 
trade in services between the EC15 and the NMS10 is presented in Annex Table AI.1.  The three 
services categories recording the largest trade act ivity are "travel", "transportation" and "other 
business services".
5  Travel alone accounts for over 40% of total EC15 services imports from the 
NMS10, suggesting that this is an area where the NMS10 enjoy a comparative advantage.  The 
NMS10 are also net exporters of transport services  to the EC15, and net importers of business and 
most other services. 
 
  
                                                     
 
3 i.e. excluding the "Gover nment Services" category. 
4 This data was viewed at the following  website:  http://epp.eurostat.cec.eu.int. 
5 These categories are defined in the fifth (1993) edition of the IMF 
Balance of Payments Manual (see a summary in WTO (2007), International Trade Statistics: 
http://www.wto.org/english/res_e/sta tis_e/its2007_e/its07_metadata_e.pdf. WT/REG170/8/Rev.1 
Page 4  
 
  Chart I.2 
Internal and external commercial services trade of the Parties, average 2003-05
Source :   Eurostat.EC15Intra X = 442.5
Intra M = 428.6NMS10Intra X = 4.0
Intra M = 4.1
Rest of worldM = 12.4
X = 15.6X = 20.9
M =26.3
M=306.3
X = 348.2€ billion
X = Exports    
M = Imports
 
 
3. External trade in services of the EC15 and the NMS10 
8. Total exports of commercial services by the 25 European Union member States (the exports 
of the EC15 plus those of the NMS10) to non-EC25 countries (Extra-EC25 exports), reached on average €360 billion over 2003-05 (Chart I.4).  The EC25 traditionally registers a surplus in its services balance.  The largest categories in terms of  trade (import plus export value) are:  business 
services, transportation, and travel. 
9. As noted, the value of extra-EC25 trade in services by the NMS10 ranged from €12 to 
€16 billion over 2003-05, and is therefore small in relation to both EC15 exports and imports 
(Chart I.2).  When expressed in per capita terms, tr ade in services is also relatively small relative to 
that of the EC15:  exports and imports per capita of the NMS10 over the period under review did not 
exceed respectively €217, and €178, both amountin g to about 20% of the corresponding average 
per capita trade recorded in the EC15. 
10. Among the NMS10, the Czech Republic, Hungary, and Poland account for two-thirds of extra 
EC-25 services trade flows (Chart I.3).  The Czech Republic imports considerably more than it exports.  Cyprus in contrast is a large exporte r relative to its imports, probably reflecting the 
importance of its tourism sector;  Estonia, Latvia, and Lithuania are also net exporters of services. 
 
   WT/REG170/8/Rev.1 
 Page 5 
 
 
 Chart I.3 
NMS10: Extra-EC25 trade in commercial services, by member, 2003-05 (average) 
Imports Exports
 Source:  Eurostat statistical database.  Viewed  at: http://epp.eurostat.ec.europa.eu.Per cent
Total: €13.1 billion Total: €16.5 billionCzech Republic 20.6
Hungary 28.6
Poland 20.1Cyprus 5.9Lithuania 4.3Latvia 3.5Malta 2.3
Slovenia 6.7Slovakia 5.2Estonia 2.7      
Czech Republic 14.8
Hungary 26.0
Poland 19.0Cyprus 12.4
Slovakia 6.2
Slovenia 4.9Lithuania 6.1Estonia 4.2
Latvia 4.6 Malta 3.2
 
 
11. A sectoral breakdown of the NMS10 trade flow s with non-EC25 economies is provided in 
Annex Table AI.2.  In general, Transportatio n Services, Travel and Personal, Cultural and 
Recreational services account for a greater share of  the services trade of the NMS10 than in the 
EC15' services trade, whilst the share of all othe r services categories is smaller, particularly for 
Financial Services and Other Business Services. WT/REG170/8/Rev.1 
Page 6  
 
  050100150200250300350400450
Import Export Import Export Import ExportChart I.4 
25 EC Member States:  Extra-EC25 tr ade in commercial services, 2003-05
 € billion 
Source: Eurostat statistical database.  Viewed at: http://epp.eurostat.ec.europa.euTransportation services
Other Travel services
Other business services 2003 2004 2005
 
 
12. Transport services represent a larger share of se rvices exports in the NMS10 compared to the 
EC15, and a similar share (one qua rter) of imports.  Poland, which has a long tradition of maritime 
shipping, reports the highest value of tran sportation services exports among the NMS10, at 
€1.333 billion.  In the strongly growing Baltic coun tries (Estonia, Latvia, Lithuania), the share of 
transportation in total services exports exceeds 50% , and is declining as these economies become 
more diversified.  In Estonia, reflecting the long tradition of maritime transport, over 56% of services 
exports consisted of transportation services in 2003, but this share has declined to 44% in 2005 (to a 
value of €350 million) and Estonia has switched fr om a surplus to a deficit in its transportation 
services balance.  In Latvia, exports of transpor t services have declined from 61% of total services 
exports (and a value of €430 million) to 55% (€48 0 million).  In the Slovak Republic, the share of 
transportation services in total services exports was th e highest of the NMS10, at 64%, and has also 
declined sizeably, to 40% (€261 million).  In L ithuania, where trucking services are an important 
activity, transport services account for approximately  50% of both services exports and imports.   
13. Exports of travel, which include leisure, study, health-related a nd other expenditures 
(excluding international transportation costs) by non -residents whilst travelling in the host country, 
were valued at €4.7 billion from the NMS10, and imports of €3.4 billion, compared to €66 billion and 
€83 billion respectively in the EC15.  Among the NM S10, Poland, the Czech Republic, and Hungary 
report highest values for travel.  Imports, which cons ist of travel-related expenditure by residents of 
the compiling country, are smaller than exports, whic h expenditure by non-residents in the national 
territory.  While the share of imports of travel ser vices in total services imports is in line with the 
share observed in the EC15 (about 25%), exports make for a relatively larger share of the total in the 
NMS10 relative to the EC15, which may reflect a greater reliance on tourism receipts by these 
economies.    WT/REG170/8/Rev.1 
 Page 7 
 
 
 14. Communication services (telecommunications, posta l and courier services) account for less 
than 4% of the NMS10's external trade, both for  exports (€243 million in 2005) and imports 
(€425 million).  These services also represent a very sm all share of the EC15's external trade.  The 
same observation applies to construction. 
15. The NMS10's external trade in financial ser vices is small (€634 m illion and €742 million in 
2005 for respectively exports and imports), compar ed to €34.3 and 13.3 billion respectively for the 
EC15.  The NMS10 share of extra EC25 trade in  insurance services was also small during the 
2003-05 period, but has not experienced the decreas e observed for extra EU25 exports of insurance 
services by the EC15, mainly on account of falls in exports to the United States.  According to the 
International Trade Statistics report, this fall is due to Hurricane Katrina, and to the way exports of 
insurance services are generally estimated (“prem iums less claims”): When large claims occur 
following catastrophic events this estimate does not re flect the actual value of the insurance services 
that were rendered.6 
16. Finally, Other Business Services account for a relatively large share (22 and 23% for exports 
and imports) of the NMS10's Extra-EC25 trade in co mmercial services, with exports valued at close 
to €4 billion (Annex Table AI.2).  The share in th e EC15 is 25 and 29% for ex ports and imports, with 
total exports valued at €113 billion.  The Czech  Republic and Hungary are the largest exporters, 
whilst Cyprus relies on trade belonging to Other Busi ness Services for 36% of its exports, mainly in 
the areas of legal, accounting, manage ment and public relations services. 
C. FOREIGN DIRECT INVESTMENT AND FOREIGN AFFILIATES TRADE  
17. The Balance of Payments does however not in clude most of the information on the local 
deliveries of services through foreign affiliates that is required to estimate the size of mode 3. A 
framework for collecting these data, the “Foreign Aff iliates Trade in Services (FATS) statistics”, has 
been developed and adopted in 2002 for that purpose.7  Foreign direct investment flows and stocks in 
services activities also constitute an indicator of th e attractiveness of an ec onomy for foreign service 
suppliers through mode 3. 
1. Recent trends in foreign direct investment flows  
18. The EC15' foreign direct investment (FDI) fl ows into the NMS10 were estimated at over 
€32 billion in 2005, representing 12% of the EC15' total FDI outward flows.  A recent Eurostat publication shows that the EC15' FDI outflows in th e NMS10 is growing more rapidly than the total 
extra-EC15 outflows, increasing by 256% and 77% in  2004 and 2005 respectively, compared to 9% 
and 30%.
8  For the third consecutive year, the major destination for EC15 FDI outflows to the new 
Member States in 2005 was Hungary, which recorded a rise from €7.8 billion in 2004 to €15 billion in 
2005.  This country alone attracted one third of the total outflows directed to the NMS10.  FDI flows to the Czech Republic ranked second (14% of the tota l), having recovered after three successive years 
of disinvestment and reaching €4.6 billion in 2005.  Conversely, there was a substantial decrease in 
investment flows to Poland: after a peak of €6.6 billion in 2004 they fell back to €3 billion in 2005.  
EC15 investment flows in Estonia (an increase of €2 billion as compared to 2004), and in Cyprus 
(plus €1.9 billion) also recorded a significant advance.  
                                                     
 
6 See WTO (2007), International Trade Statistics,  viewed at:  http://www.wto.org/english/res_e/ 
statis_e/its2007_e/section3_e/its07_highlights3_e.pdf. 
7 WTO (2007), International Trade Statistics, Gene va, viewed at:  http://www.wto.org/english/res_e/ 
statis_e/its2007_e/its07_metadata_e.pdf 
8 Eurostat (2007), "EU-15 Foreign Direct Invest ment in the New Member States Continues to 
Increase".  Statistics in Focus  – Economy and Finance 106/2007, viewed  at: http://epp.eurostat.ec.europa.eu. WT/REG170/8/Rev.1 
Page 8  
 
  19. In 2005, Spain was the largest investor in the new Member States (€6.6 billion), accounting 
for 20% of total EC15 investment flows into th ese countries.  The Czech Republic and Hungary 
attracted the bulk of Spain's investments in the ne w Member States that year.  In 2006, Germany was 
the largest investor with flows of €15 billion, with the increase of €10 billion over 2004 essentially 
due to a €8.9 billion investment in Malta.  Luxem bourg's consistently large FDI flows to the NMS10 
(€3.8 billion or 12% of the total in 2005, and €3 billi on in 2006) is primarily due to the importance of 
its special purpose entities (mainly financial holding companies); its main investment destinations 
were Cyprus and Malta.  
20. Outward investment flows from the NMS10 are still very low compared to those of the EC15.  
One third of the FDI flows from the new Member States were directed towards the EC15 in 2004, 
with most investment being made in neighbouri ng countries, particularly the Netherlands.  
2. Foreign investment stocks 
21. The stocks of outward EC15 FDI held in the NM S10 have expanded in line with the increased 
investment flows, reaching €201.4 billion at the end of 2005 (Table I.2).  This represented 7.6% of all 
extra-EC15 stocks.  At the end of 2005, Germany was the main holder of FDI stocks in the new 
Member States (with €43.6 billion and 22% of the EC15 total), followed by France (9%) and the 
Netherlands (8%). Poland, Hungary and the Czech Republic were the three economies that attracted 
three quarters of the foreign direct investment from the EC15. The value of FDI stocks held in Poland 
at the end of 2004 was €57.5 billion, in Hungary  € 40.7 billion and in the Czech Republic 
€34.5 billion. 
22. In 2004, there was a marked shift in the distribution of EC15 FDI stocks among the main 
economic activities in the 10 new Member States towards services.
9  Service activities increased their 
share from 50% in 2003 to 73% at the end of 2005 . In absolute terms the growth was even more 
significant, from € 64.2 billion (end-2003) to €146 b illion at end 2005 (Table I.2).  Available data 
shows that the increase was particularly important in France.   
23. According to Eurostat, the growing importance of the services sector in EC15 stocks of FDI 
in the NMS10 was mainly due to growth in the valu e of stocks in financia l intermediation (monetary 
intermediation, other financial intermediation, insurance and pension funding except compulsory 
social security, and auxiliary activities), whic h increased from €21.7 billion at the end of 2003 to 
€61.0 billion at the end of 2004 (Annex Table AI.3 ).  FDI stocks in business services rose from 
€18.0 billion to €25.5 billion. 
 
 
    
 
  
                                                     
 
9 In the Eurostat classification, service activities do not include construction;  they consist of: Trade, 
Hotels and Restaurants, Transport, Telecommunication, Fi nancial intermediation, Business services, Real estate 
services, Other services not elsewhere classified.  WT/REG170/8/Rev.1 
 Page 9 
 
 
 Table I.2 
EC direct investment positions, breakdown by country group and economic activity   
(€ billion) 
 2003 2004 2005 
 EC15 NMS10 Extra-
EC25 EC15 NMS10 Extra-
EC25 EC15 NMS10 Extra-EC25 
All sectors                    
EC25 3,006.9 132.3 2,011.1 3,420.5 170.7 2,212.9 3,675.7 208.6 2,458.0 
EC15 3,004.9 129.3 2,007.3 3,415.9 164.8 2,206.1 3,669.5 201.4 2,446.7 
Of which:          
   Germany   322.2 29.5 231.8 316.6 36.0 231.0 348.2 43.6 279.1 
   France 334.1 15.0 253.8 387.5 22.4 246.8 481.5 19.1 297.5 
   
Netherlands 226.9 13.4 173.9 245.9 13.3 171.9 302.6 16.2 201.3 
NMS10  2.8 2.6 3.3 4.4 5.7 6.9 6.2 7.1 11.4 
Services                    
EC25 2,423.1 65.6 1,407.1 2,724.8 109.1 1,484.4 2,898.0 149.6 1,679.3 
EC15 2,421.6 64.2 1,405.4 2,721.0 106.1 1,480.3 2,893.4 146.2 1,672.7 
Of which:          
   France  267.4 11.8 190.8 300.8 12.8 185.6 381.6 17.0 229.4 
   Germany   272.7 11.6 181.3 272.7 14.8 176.6 304.3 18.9 211.4 
NMS10  2.8 1.7 2.7 3.7 2.9 4.0 4.7 3.4 6.5 
Note:   EC15:  European Communities (15 Member States) 
 EC25:  European Communities (25 Member States) 
Source : Eurostat, viewed at http://epp.eurostat.ec.europa.eu.  
3. Foreign affiliate statistics 
24. The new statistical framework on Foreign Affilia tes Trade in Services (FATS) statistics is 
developed in the Manual on Statisti cs of International Trade in Serv ices. It analyses those foreign 
affiliates for which foreign investors own more th an 50% of the voting power or equity interest. 
Inward FATS consist of activities of foreign-ow ned affiliates in the compiling economy;  outward 
FATS refer to the activities of foreign affiliates of the compiling economy active abroad. Variables 
such as sales, value added, number of employees, etc.  are used to describe the affiliates’ activities. 
These variables are broken down by country of origin or destination of investments and also by type of primary activity.  From a GATS perspective, the size of mode 3 in a given country can be 
approximated through the sales of foreign-owned affiliates. 
25. Little statistical data is available on the ac tivity of EC15 outward FATS in the NMS10.  
Available data suggests that Germany maintain s the most important commercial presence through 
affiliates in the NMS10, with sales of €85.5 billio n in 2003, and 584,000 persons employed.  In 
services, sales by German companies reached €33. 4 billion, with 193,0 00 persons employed.  
However, this rather large amount is recorded mainly in retail and wholesale trade services, and 
therefore includes the values of both the services and the merchandise sold.  After Germany, the 
second largest trading partner in the NMS10 in 2003 was Austria, with sales of €18.7 billion.
10   
                                                      
10 FATS statistics were viewed at the following address: 
http://epp.eurostat.ec.europa.eu/portal/page?_p ageid=1996,45323734&_dad=portal&_schema=PORTA
L&screen=welcomeref&open=/economy/bop/bop_fats&language=en&product=EU_MAIN_TREE&root=EU_
MAIN_TREE&scrollto=0.  There are only 5 EC countries reporting ou tward FATS to NMS10 in 2003: Austria, 
Belgium, Finland, Germany, and Greece. WT/REG170/8/Rev.1 
Page 10  
 
  II. CHARACTERISTICS AND EFFECTS OF THE ACT OF ACCESSION  
A. B
ACKGROUND INFORMATION  
26. At the European Council11 in Copenhagen, in December 2002, European Union accession 
negotiations with the Republic of Cyprus, the Cz ech Republic, the Republic of Estonia, the Republic 
of Hungary, the Republic of Latvia , the Republic of Lithuania, the Republic of Malta, the Republic of 
Poland, the Republic of Slovenia and the Slovak Republic were completed.  Subsequently, on 
16 April 2004 these countries signed the Treaty of Accession, which entered into force on 
1 May 2004.12  Henceforth, the provisions of the original  Treaties, mainly the Treaty establishing the 
European Community ("EC Treaty"), and the Trea ty on European Union ("EU Treaty"), became 
binding on the ten new member States (NMS10).13 
Chart II.1
Trading relations of EC and acceding count ries, and changes resul ting from accession
Source :    WTO Secretariat.Europe
AgreementsNMS-10 EC151
Free trade 
agreements
with third parties
Third parties
in FTAs
with ECNMS-10 must
join EC's FTAs 
with third parties
NMS-10 GATS/FTA 
relations with other 
third parties
EC's GATS relations 
with other third partiesNMS-10 must become
part of EC's GATS relations 
with other third partiesNMS-10's 
FTAs with 
third partiesFTAs among
NMS-10
Other 
third parties64
5 32
 
 
     
                                                     
 
11 The European Council brings toge ther the Heads of State of Govern ment of the Member States and 
the President of the European Commission, and gives political direction to the EC. 
12 This treaty was viewed at the following address:   
http://eur-lex.europa.eu/JOHtml.do ?uri=OJ:L:2003:236:SOM:EN:HTML. 
13 consolidated version of thes e treaties can be viewed at:  
 http://eur-lex.europa.eu/LexUriServ/site/e n/oj/2002/c_325/c_32520021224en00010184.pdf.  WT/REG170/8/Rev.1 
 Page 11 
 
 
 27. The EU accession of May 2004 crowned a process of  gradual structural transformation of the 
ten new Member States (NMS10).  Specifically, the bilateral trading relations between the 
15 EC Members (EC15) on the one hand, and each of the NMS10 on the other (relation 1 on Chart II.1) ceased to be ruled by the provisions of the ten individual Europe Agreements or 
Association Agreements, and became subject to the EC's entire acquis communautaire , including the 
provisions of EC Treaty. These changes have potentia lly affected all companies competing in these 
markets, be they based in the EC25 territory or in third countries.   
28. In services sectors, new market access opportun ities resulting from accession are expected to 
have been sizeable, as services liberalization under Eu rope Agreements had been less comprehensive 
than within the EC15. For third- country suppliers, the NMS10 accession has enlarged the EU internal 
market and the entry points to that internal market.   
29. Changes occurred in the external trading regi me of the NMS10 following their inclusion in 
the EC Customs Union.  First, as already noted the "Europe Agreements" be tween the NMS10 and the 
EC were repealed (see relation 1 in Chart II.1). Also  part of their EC obligations, new Member States 
renounced or amended international agreements with third countries th at were incompatible with the 
EC acquis  (relations 3 and 5 in Chart II.1, see Annex Table AII.1) and will have applied, as from 
1 May 2004, all multilateral, regiona l and bilateral agreements concl uded by the EC (relations 2 and 
6).  The trade-related aspects of all existing ag reements among acceding countries (relation 4) were 
also repealed (Annex Table AII.2).  In total, cl ose to 60 existing agreements were superseded or 
terminated.   
30. None of the free trade agreements entered into  by the NMS10 covered services trade, with the 
exception of certain Europe Agreements with the EC.  The GATS therefore generally provided the 
legal basis for their trade in services with all non-EC WTO Members.
14   
31. The NMS10 have in principle applied, as fro m 1 May 2004, all multilateral, regional and 
bilateral agreements concluded by the EC (rela tions 2 and 6).  The Communities' regional and 
bilateral trade agreements that are cu rrently active are listed in Table II.1. 
 
     
 
  
                                                     
 
14 Their relevant Schedules of Specific Commitments were:  Cyprus (WTO documents GATS/SC/25 of 
15 April 1994, GATS/SC/25/Suppl.1 of 23 February 1998, GATS/SC/25/Suppl.2/Rev.1 of 18 November 1999); the Czech Republic (WTO documents GATS/SC/26 of 15 April 1994, GATS/ SC/26/Suppl.2 of 11 April 1997, 
GATS/SC/26/Suppl.3 of 26 February 1998);  Estonia (WTO document GATS/SC/127 of 5 October 1999); 
Hungary (WTO documents GATS/SC/40 of 15 April 1994, GATS/SC/40/Suppl.2 of 11 April 1997, 
GATS/SC/40/Suppl.3 of 26 February 1998); Latvia (WTO document GATS/SC/126 of 22 April 1999); 
Lithuania (WTO document GATS/SC/133 of 21 Decembe r 2001);  Malta (WTO documents GATS/SC/54 of 
15 April 1994, GATS/SC/54/Suppl.1 of 26 February  1998); Poland (WTO documents GATS/SC/71 of 
15 April 1994, GATS/SC/71/Suppl.2 of 11 April 1997, GATS/SC/71/Suppl.3 of 26 February 1998); 
Slovak Republic (WTO documents GATS/SC/77 of 15 April 1994, GATS/SC/77/Suppl.2 of 11 April 1997, GATS/SC/77/Suppl.3 of 26 February 1998); Slovenia (WTO documents GATS/SC/99 of 30 August 1995, 
GATS/SC/99/Suppl.1 of 26 February 1998). WT/REG170/8/Rev.1 
Page 12  
 
  Table II.1 
European Communities:  Participat ion in trade agreements, January 2008  
GATT/WTO Notification Partner/ 
Agreement Date of 
entry into 
force Type of 
agreement  Year WTO Provision 
EC – Overseas Countries and Territories (OCT) 01.01.71 Goods 1970 GATT Art. XXIV 
EC – Switzerland and Liechtenstein 01.01.73 Goods 1972 GATT Art. XXIV 
EC – Iceland 01.04.73 Goods 1972 GATT Art. XXIV 
EC – Norway 01.07.73 Goods 1973 GATT Art. XXIV 
EC – Syria 01.07.77 Goods 1977 GATT Art. XXIV 
EC – Andorra 01.07.91 Goods 1998 GATT Art. XXIV 
European Economic Area (EEA) 01.01.94 Services 1996 GATS Art. V 
EC – Turkey 01.01.96 Goods 1995 GATT Art. XXIV 
EC – Faroe Islands 01.01.97 Goods 1997 GATT Art. XXIV 
EC – Palestinian Authority 01.07.97 Goods 1997 GATT Art. XXIV 
EC – Tunisia 01.03.98 Goods 1999 GATT Art. XXIV 
EC – South Africa 01.01.00 Goods 2000 GATT Art. XXIV 
EC – Morocco 01.03.00 Goods 2000 GATT Art. XXIV 
EC – Israel 01.06.00 Goods 2000 GATT Art. XXIV 
EC – Mexico 01.07.00 Goods 2000 GATT Art. XXIV 
EC – Mexico 01.10.00 Services 2002 GATS Art. V 
EC – FYROM 01.06.01 Goods 2001 GATT Art. XXIV 
EC – Croatia 01.03.02 Goods 2002 GATT Art. XXIV 
EC – Jordan 01.05.02 Goods 2002 GATT Art. XXIV 
EC - Chile 01.02.03 Goods 2004 GATT Art. XXIV 
EC – Lebanon 01.03.03 Goods 2003 GATT Art. XXIV 
EC – Egypt 01.06.04 Goods 2004 GATT Art. XXIV 
EC – Chile 01.03.05 Services 2005 GATS Art. V 
EC – Algeria 01.09.05 Goods 2006 GATT Art. XXIV 
EC – Albania 01.12.06 Goods 2007 GATT Art. XXIV 
EC –  Montenegro 01.01.08 Goods 2008 GATT Art. XXIV 
EC – San Marino [Please 
provide] Goods Not notified 
Source: WTO Secretariat 
 
32. Trade in services between the EC15 on the one hand and each of the NMS10 was until 
accession ruled by the Europe Agreements with each  of these countries.  The termination of these 
Agreements was notified by the EC to the WTO on 1 October 2004.15 
 
33. The Treaty of Accession was notified to th e WTO's Council for Trade in Services under 
Article V:7 (a) of the General Agreemen t on Trade in Services in April 2004.16  The Council for 
Trade in Services referred the Treaty of Accession  for examination in the CRTA on 24 June 2004 
(S/C/M/73).  The examination of the goods part of the Agreement was conducted in the CRTA;  it 
concluded in October 2006, afte r three rounds of examination.17   
 
                                                      
15 WTO document (WT/REG/GEN/N/3, 5 October 2004. 
16 WTO document S/C/N/303, 28 April 2004. 
17 WTO documents WT/REG170/M/1-3.  WT/REG170/8/Rev.1 
 Page 13 
 
 
 B. SCOPE AND DEFINITIONS  
34. The Treaty of Accession sets out, in the Act of  Accession annexed thereto (Table II.2), the 
conditions of admission of the NMS10 to the EC Treaty, as well as the accompanying adjustments to 
the EC Treaty.  The Act of Accession itself is comp osed of five parts totalling 17 pages; Annex II – 
"List referred to in Article 20 of the Act of A ccession", which contains close to 1000 pages, is 
organised into 22 sections.  The relevant aspects for the liberalization of trade in services are mainly 
contained in Annex II, Sections 1-4 and 8 (Freedom  of movement for persons, freedom to provide 
services, free movement of capital, competition, a nd transport policy), and in the Country Annexes 
(Annexes V-XIV) which lay down the specific co mmitments or reservations of each NMS.  
35. According to Article 5 of the Act of Accession, the new Member States accede to the 
decisions and arrangements previously adopted by th e EU Council of Ministers, and they undertake to 
accede to all other agreements concluded by the present Member States relating to the functioning of the European Union or connected with the activiti es thereof.  Thereby, as of 1 May 2004 the EC’s 
common commercial policy and the internal market  were fully extended to the ten new Member 
States. 
36. No overall implementation period is explicitly stipulated in the Act of Accession.  The 
obligations in the area of trade in services appl y to the NMS10 in principle as from 1 May 2004.  
However, the country annexes contain transition pe riods for certain provisions that are specific to 
each NMS.  Importantly, derogations are containe d for the "NMS8" (i.e. the NMS10 except Cyprus 
and Malta) in relation to the freedom of movement  of workers and the freedom to provide services 
involving temporary movement of workers as define d in Article 1 of Directive 96/71/EC.  These 
derogations allow the EC15 to apply national m easures for a maximum period of 7 years following 
the date of accession, regulating access to their labour  markets by NMS8 nationals.  Furthermore, a 
standstill clause applies, whereby current access cond itions to EC15 labour markets could not become 
more restrictive than at the time of the signature of the Accession Treaty.  EC15 Member States have to give preference to NMS10 nationals over non- EU labour.  Austria and Germany do apply such 
restrictions on the free movement of NMS8 workers, and as long as they do, they may also - and do - 
reserve the right to exclude certain services activ ities for nationals from NMS8 countries, do address 
serious disturbances or the threat thereof (e.g. construction, industrial cleaning).   
 
  
 
    
 
     
 
   WT/REG170/8/Rev.1 
Page 14  
 
  Table II.2 
Act of Accession of the NMS10 to the European Union  
Heading /Sections Pagea Title/description of areas concerning trade in services 
Part One (Articles 1-10) 33 Principles 
Part Two (Articles 11-19)  Adjustments to the Treaties 
Part Three (Articles 20-23)  Permanent Provisions 
Part Four (Articles 24-42)   Temporary  Provisions 
Part Five (Articles 43-62)  Provisions Re lating to the Implementation of this Act 
Annex I  50 List of provisions of the Schengen acquis (referred to in Article 3 of the Act of 
Accession) 
Annex II 53 List referred to in Ar ticle 20 of the Act of Accession   
1. Free movement of goods 53  
2. Freedom of movement for persons 179 A. Social security;  B.  Free movement of workers;   C. Mutual recognition of 
workers;  D. Citizens rights. 
3. Freedom to provide services 335   
4. Company law 338 A.  Company law;  Accounting standards;  Industrial property rights 
5. Competition policy 344  
6. Agriculture 346  
7. Fisheries 444  
8. Transport policy 447 A. Inland transport;  B. Maritime transport;  C. Road transport; D. Transport by 
rail;  E.  Transport by Inland waterway 
9. Taxation 555  
10. Statistics 561  
11. Social policy and employment 584  
12. Energy 586 A. Genera l;  B. Energy labelling 
13. Small and medium-sized 
undertakings 658 
 
14. Education and training 658  
15. Regional Policy a nd coordination of 
structural instruments 658 
 
16. Environment 665  
17. Consumers and health protection 711  
18. Cooperation in the fields of justice and home affairs 711 
 
19. Customs union 762  
20. External relations 773  
21. Common foreign and security policy 789  
22. Institutions 791  
Annex III 792 List referred to in Article 21 of the Act of Accession 
Annex IV 797 List referred to in Article 22 of the Act of Accession 
Annex V: List referred to in Article 24 
of the Act of Accession: Czech 
Republic 803 
Freedom of movement for persons, free movement of capital, agriculture, 
transport policy, taxation, energy, environment. 
Annex VI: Idem , Estonia 812 Freedom of movement for persons, fr eedom to provide services, free movement of 
capital, agriculture, fisherie s, transport policy, taxation, energy, environment. 
Annex VII: idem , Cyprus 819 Freedom of movement for persons, fr eedom to provide services, free movement of 
capital, competition, agriculture, transpor t policy, taxation, energy, environment. 
Annex VIII: idem , Latvia 824 Freedom of movement for persons, fr eedom to provide services, free movement of 
capital, agriculture, fisher ies, transport policy, taxation, social policy and 
employment, energy, environment. 
Annex IX, idem , Lithuania 836 Free movement of goods, freedom of  movement for persons, freedom to provide 
services, free movement of capital, ag riculture, fisheries, transport policy, 
taxation, energy, environment. 
Annex X, idem , Hungary  846 Freedom of movement for persons, free movement of capital, competition, 
agriculture, transport policy, taxation, environment. 
Table II.2 (Cont'd)  WT/REG170/8/Rev.1 
 Page 15 
 
 
 Heading /Sections Pagea Title/description of areas concerning trade in services 
Annex XI, idem , Malta 859 Free movement of goods, freedom of movement for persons, competition, 
agriculture, fisheries, transport policy, taxation, social policy and employment, 
energy, environment, Customs Union. 
Annex XII, idem , Poland 875 Free movement of goods, freedom of movement for persons, freedom to provide 
services, free movement of capital, co mpetition policy, agriculture, fisheries, 
transport policy, taxation, social policy and employment, energy, telecommunications and inform ation technology, environment 
Annex XIII, idem  Slovenia 906 Free movement of goods, freedom of  movement for persons, freedom to provide 
services, free movement of capital, ag riculture, taxation, social policy and 
employment, energy, environment. 
Annex XIV, idem  Slovak Republic 915 Freedom of movement for persons, freedom to provide services, free movement of 
capital, competition, agriculture, transpor t policy, taxation, energy, environment. 
Annex XV  925 Maximum additional appropriations referred to in Article 32(1) of the Act of 
Accession 
Annex XVI 926 List referred to in Article 52(1) of the Act of Accession (committees) 
Annex XVII  929 List referred to in Article  52(2) of the Act of Accession (committees) 
Annex XVIII  930 List referred to in Article 52(3) of the Act of Accession 
PROTOCOLS 931  
 Final Act 
Appendices to Annexes IV, V, VII, 
VIII, IX, X, XI, XII, XIII and XIV of the Act 957 
Conditions of accession of the Czech Republic, Estonia, Cyprus, Latvia, 
Lithuania, Hungary, Malta, Pola nd, Slovenia and Slovak Republic 
a Page of the Official Journal of the European Union , L 236 Volume 46, 23 September 2003, English version. 
Source:  Act concerning the conditions of accession of the Czech  Republic, the Republic of  Estonia, the Republic of 
Cyprus, the Republic of Latvia, the Republic of Lithuani a, the Republic of Hungary, the Republic of Malta, the  
Republic of Poland, the Republic of Slovenia and the Sl ovak Republic and the adjustments to the Treaties on  
which the European Union is founded, Official Journal, L236, Volume 46, 23 September 2003, English edition, 
viewed at:  http://eur-lex.europa.eu/J OHtml.do?uri=OJ:L: 2003:236:SOM:EN:HTML. 
37. With regard to the freedom to provide services,  all acceding countries have implemented the 
acquis  under this chapter as from the date of accession , subject to the specific arrangements set out 
below.  Transitional arrangements are limit ed in time and scope.  For example, Cyprus  has had a 
transitional arrangement until the end of 2007 for full compliance with the acquis relating to the 
taking up and pursuit of the business of credit institutions.  Hungary and Poland  were granted 
transitional arrangements until the end of 2007 for raising minimum capital requirements.  In this 
context, Hungary and Poland must ensure that th e own funds of these undertakings do not fall below 
specified levels.  Slovenia  had been granted transitional arra ngements until the end of 2004 for 
savings and loans undertakings established before 20 February 1999, for full compliance with the 
acquis  relating to the taking-up and pursuit of the business of credit institutions, the annual accounts 
and consolidated accounts of banks and other financial institutions, and the deposit guarantee scheme.  
Estonia, Latvia and Lithuania  had been granted transitional arra ngements until the end of 2007 to 
reach the minimum level of deposit guarantee.  
38. The Act of Accession does not contain definitions of natural or juridical persons of a Member 
State, whereas in the EC Treaty such definitions are part of the scope of application of the provisions 
(see below).  Natural or juridical persons of a Member State are either EC nationals or companies formed in accordance with the law of a Member State and having their registered office, central 
administration or principal place of business within the European Community. 
III. GENERAL PROVISIONS ON TRADE IN SERVICES UNDER THE EC TREATY 
39. Title III of the Treaty establishing the European Community ("EC Treaty"), entitled "Freedom 
of movement of persons, services and capital", provid es the basis for the EC in ternal services market. 
Chapter 2 of Title III ("Right of establishment"), including Article 43 ("Freedom of establishment") enables economic operators (whether a natural person who is a nationa l of a Member State or a legal WT/REG170/8/Rev.1 
Page 16  
 
  person of a Member State) to carry on an economic activity in one or more Member States.  As such 
activity may go beyond the supply of services, it has a broader scope of application than GATS mode 3.  Article 48 extends treatment under the establishment provisions to companies formed in 
accordance with the law of a Member State and havi ng their registered office, central administration 
or principal place of business within the Communi ty.  The nationality of the persons owning or 
controlling a juridical person does not play any role fo r the determination of the origin of a juridical 
person under the EC Treaty.  The EC Commission has indi cated, in this respect, that the definition of 
EC companies in Article 48 of the EC Treaty ensu res the compatibility of the EC Treaty and the Act 
of Accession with GATS Article V (6).
18 
40. The principle of the freedom to supply services, set out in Chapter 3 of Title III (Services), 
and in particular in Article 49 ("Freedom to supply services"), not only establishes the principle of 
non-discrimination for economic operators providing ser vices in one Member State, but also prohibits 
any type of restrictions, including those that r esult from regulatory divergences between the home and 
the host Member State.  It allows  economic operators to offer services on a temporary basis in another 
Member State, without establishment, and can be likened to supply of ser vices through Modes 1, 2 
and 4.19  This also applies to persons who are posted temporarily in another Member State to provide 
services on behalf of their employer, and may c over large segments of the mode 4 category of 
"contractual service suppliers" (CSS).  Temporary workers posted to another Member State are subject to certain of the host-country provisions , namely those regarding that Member State's 
employment conditions, such minimum wage and holiday.
20   
41. In addition to Articles 43 and 48, which are di rectly applicable and provide for absolute 
national treatment, Articles 44, 52, 94 and 95 empower the Community to adopt legislation needed to 
remove other restrictions on the right of establishment or on the temporary provision of services, as well as to approximate the laws, regulations and administrative actions of the Member States for the establishment and functioning of the internal market.  Article 46 permits measur es by Members States 
that provide for special treatment of foreign nati onals from other Member States or third countries on 
grounds of public policy, public security or public health.  Artic le 47 mandates the Council to issue 
directives for the mutual recognition of diplomas, cer tificates, other evidence of formal qualifications, 
and conditions for access for these na tural persons to the professions. 
42. Over the years, a large body of case law by the European Court of Justice has been 
established, which provides guidance on the interpre tation of these provisions, while applying only to 
individual cases.  The Services Directive
21, adopted on 12 December 2006, seeks to consolidate much 
of this case law and turn it into general obligations  for Member States, with the objective of making 
progress towards a genuine internal market for ser vices.  Many aspects of the Services Directive are 
therefore informed by ECJ case law.22 The Services Directive will ha ve to be implemented by all 
Member States by 28 December 2009. 
                                                      
18 See WT/REG39/1, 24 April 1998.  
19 The European Court of Justice (ECJ) has characteriz ed establishment as the pursuit of an economic 
activity through a fixed establishment for an indefinite period (Case C-221/89  Factortame [1991] 
paragraph 20), and the freedom to provide services by the absence of a stable and continuous participation in the 
economic life of the host Me mber State (Case C-131/01 Commission v Italy [2003] , paragraph 23). 
20 Directive 96/71/EC concerning the posting of workers.   The scope of this Directive does not extend 
to self-employed workers. 
21 Directive 2006/123/EC of th e European Parliament and of the European Council of 
12 December 2006 on Services in  the Internal Market, OJ L376  of 27 December 2006, p.36. 
22 See Handbook on Implementation  the Services Di rective, European Commission 2007, viewed at  
http://ec.europa.eu/internal_market/services/ docs/services-dir/guides/handbook_en.pdf.  WT/REG170/8/Rev.1 
 Page 17 
 
 
 A. MARKET ACCESS , NATIONAL TREATMENT , AND MFN 
43. The Europe Agreements  with Cyprus and Malta did not exte nd to trade in services.  The trade 
relations concerning services trade between these  two countries and the EC15 were basically 
governed by the GATS and bilateral investment treaties with individual EC Member States.   For the 
NMS8 (Czech Republic, Estonia, Hungary, Latvia , Lithuania, Poland, Slovenia, and the Slovak 
Republic), the Europe Agreements contained chapte rs on movement of workers, establishment, and 
services.  In particular, those Agreements provided for national treatment but did not include a market 
access provision in the area of services that resembles GATS Article XVI.23  
44. The Act of Accession , and through it the EC Treaty , binds market access in services trade 
between the EC15 and the NMS10:  the EC15 bound full market access and national treatment (albeit 
with transition periods for the liberalization of m ode 4) for all services and service providers of the 
NMS10, and vice versa; and the NMS10 bound the same treatment toward each other.  This therefore 
constituted a major improvement in terms of prefer ential market access and national treatment relative 
to prior commitments. 
45. EC accession thus created a situation of unf ettered competition among the 25 member States 
in Modes 1 and 2, in terms of both market acces s and national treatment, with certain explicitly 
specified exceptions.  In comparison, under the GA TS which applied to most services trade between 
the NMS10 and the EC15 prior to 2004, not all sector s were covered by specific commitments, and in 
many sectors, the entries relating to Modes 1 a nd 2 were scheduled as "unbound" or subject to 
limitations (see below). 
B. COMMERCIAL PRESENCE AND MOVE MENT OF NATURAL PERSONS  
46. Under the Europe Agreements , the NMS8 were required, without phase-in periods, to grant 
no less favourable treatment for the operation of EC15 companies and nationals established in their 
territories.  With regard to new establishment, th e NMS8 were required, w ithin varying timeframes 
for different sectors, to grant companies and nationals of EC15 Member States treatment no less favourable than that accorded to their own nationals  and companies.  The agreements provided for a 
standstill with regard to discrimination during the transition periods.     
47. With regard to the supply of services between the EC15 and the NMS8, the Europe 
Agreements contained a pledge to undertake the n ecessary steps to allow progressively the supply of 
services by companies or nationals who are establishe d in a Party other than that of the person for 
whom the services are intended.  In step with this  process, the temporary movement of natural persons 
supplying the service or employed by the service provider as key personnel was to be allowed.   
48. One of the major forms of liberalization br ought by Accession is the freedom for EC 
companies to establish a commercial presence (mode 3) in any EC Member State.  While the EC Treaty
 does not refer to the concept of commercial presence per se, the notion of "freedom of 
establishment" is one of the fundamental principl es of the internal market.  This principle of 
unrestricted establishment has eliminated, in tr ade between the EC15 and the NMS10, and among the 
NMS10, the restrictions on commercial presence that may still be applied by EC Member States to 
their WTO GATS partners, such as limitations on th e number of branches, limitations on the legal 
type of establishment (e.g. only limited partnershi ps), limitation on composition of the board of 
directors, authorization requirements for investme nt, minimum capital requirements, restrictions on 
companies owned by non-resident legal or natural persons, etc.   
                                                      
23 The EC Treaty does not contain an MFN provision per se  (i.e. an automatic extension to all Member 
States of benefits that may be accorded to third parties).   WT/REG170/8/Rev.1 
Page 18  
 
  49. The largest degree of liberalization brought  about by Accession probably concerns the 
presence of natural persons, with liberalization st emming from the application of the principles of 
freedom of establishment and freedom to supply services described above.  The latter principle, 
contained in Article 49 of the EC Treaty
, liberalizes market access and national treatment for 
economic operators providing services in any EC Member State.  As a result, the restrictions listed in 
the EC's GATS schedule with respect to mode 4 will no longer apply in internal trade, after the expiry 
of certain transition periods.   
C. REGULATORY PROVISIONS  
1. Domestic regulation, mutual recognition, and the acquis communautaire  
50. With accession, the NMS10 have adopted the entire acquis communautaire , subject to certain 
transitional periods mentioned above.  This acquis  embodies the entire EC15 regulation, including 
that covering internal trade in services.  As part of the acquis , the EC principles of recognition of 
qualifications have entered into effect for the NMS10 as of accession.  As a general principle, the 
Member States are permitted to lay down a level of qualification,  but must take account of 
qualifications acquired in another Member State and afford recognition where these correspond to the 
level of qualification that the Member State in question requires.   
51. In 2005, the European Council and the Eur opean Parliament enacted a new Directive 
2005/36/EC on the recognition of  professional qualifications.24 The Directive consolidates and 
modernizes the acquis, and only applies to EU nati onals. In particular, it provides for harmonization 
of minimum training requirements for doctors, den tists, nurses, midwives, pharmacists, veterinarians 
and architects.  On the basis of these requirements , it grants automatic recognition of the diplomas in 
question.  Furthermore, the directive provides fo r general rules applying to all other regulated 
professions.  Under these rules, access to a profession shall be granted to a professional who is fully qualified for the profession in question in another Member State.  However, if the duration or the content of training of a (EC-internal) migrant is di ffering substantially from those required in the host 
Member State, compensatory measures can be imposed on the migrant, i.e. either an adaptation period 
or an aptitude test.  Finally, the new directive facilitates the provision of services and provides for 
closer administrative cooperation between the comp etent authorities of the Member States.  This 
Directive does not, however, affect the operation of existing directives related to lawyers (98/5/EC 
and 77/279/EEC) and to self-employed commercial agents (86/653/EEC). 
2. Competition policy and State aid 
52. The NMS10 take over and implement the EC's acquis in competition policy upon accession.  
The fundamental principles of competition law in the EC are stipulated in Articles 4, 16, 36, 73, and 
81-89 of the EC Treaty
.  Pursuant to Article 4, the activities of  the EC Member States are required to 
support the general economic policies of the Communi ty "in accordance with the principle of an open 
market economy with free competition".   
53. In particular, the granting of government subs idies in the NMS10 has become as a result of 
Accession fully subject to the provisions governing State aid in the EC Treaty  (see Title VI, Chapter 
1, Section 2 "Aids Granted by States").  The Act of Accession  contains transitional provisions 
requiring the phasing-out of EC-incompatible fiscal ai d to small and medium-sized enterprises, and to 
offshore companies; provisions on the conversion of incompatible fiscal aid to  large companies into 
                                                      
24 Directive 2005/36/EC of the European Parliament and of the Council of 7 September 2005 on the 
recognition of professional qualifications , viewed at the following address: 
http://eur-lex.europa.eu/LexUriServ/LexUriSe rv.do?uri=OJ:L:2005:255:0022:0142:EN:PDF.  WT/REG170/8/Rev.1 
 Page 19 
 
 
 regional investment aid; and provisions on Stat e aid for environmental protection and for the 
restructuring of shipbuilding and steel industries. The expiry dates for these transitional arrangements 
ranges from 2005 to 2011.25 
3. Safeguards  
54. Articles 37-38 of the Act of Accession  contain safeguard mechanisms pertaining to trade in 
goods and services.  Under Article 37, if until the end of a period of up to three years after accession, 
difficulties arise which are serious and liable to pe rsist in any sector of th e economy or which could 
bring about serious deterioration in the economic situation of a given area, a new  Member State may 
apply for authorisation to take protective measures in order to rectify the situation and adjust the 
sector concerned to the economy of the common mark et.  In the same circumstances, any present 
Member State may apply for authorisation to take pr otective measures with regard to one or more of 
the new Member State.  The measures shall not entail frontier controls. 
55. Article 38 provides measures to be implemented by the EC Commission up to three years 
after entry into force of the Act of Accession (i.e. 2007) in case of failure by a Member State to implement commitments undertaken in the cont ext of the accession negotiations, if these cause a 
serious breach of the functioning of the internal ma rket.  Measures shall be proportional and priority 
shall be given to measures, which disturb least th e functioning of the internal market and, where 
appropriate, to the application of the EC's existi ng sectoral safeguard mechanisms.  Such safeguard 
measures shall not be invoked as a means of arbitrary discrimination or a disguised restriction on trade between Member States. No such safeguard  measures have been taken during the period.  
No such safeguard measures have been taken. 
D. T
RADE IN SERVICES LIBERALIZATION AS A RESULT OF ACCESSION  
1. General overview  
(a) Internal liberalization 
56. The perspective of full market access and national treatment among all EC service providers 
has led in recent years to major economic adjustme nts and legislative and regulatory reforms in the 
NMS10 and, to a certain extent, EC15. In general,  liberalization efforts have been considerably 
greater in the NMS10, which had to adapt most of their legislation to ensure compatibility with the 
EC's acquis communautaire, than in the EC15 which faced comparatively minor changes.  
57. In parallel, a number of measures were take n to promote improvements in productivity in 
order for the services sectors to withstand greater EC  internal competition.  Relevant measures include 
privatization (e.g., banking and insurance sectors in Hungary), and/or abolition of monopoly or other 
exclusive rights (e.g., Polish railways), as well as of economic needs tests (e.g. Czech banking sector). 
58. These changes have potentially affected all companies competing on these markets, be they 
based in the EC25 territory or in third countries.  In service sectors, new market access opportunities 
are expected to be sizeable, as ser vices liberalization under Europe Agreements had not been as deep 
as within the EC15.  For companies based in thir d countries, the consequences of accession depend on 
a large number of factors, including whether these co mpanies had already operated in the territory of 
the EC25 prior to the enlargement, and whether nationa lity or ownership restrictions remain in place.  
                                                      
25 See inter alia  Annexes II, IV of the Act of Accession, and its Protocols 2 and 8.  WT/REG170/8/Rev.1 
Page 20  
 
  59. The Act of Accession extends the EC internal freedoms to establish and to supply services to 
all sectors of activity unless otherwise specified, a nd thus follows a "negative list" approach to 
liberalization.  Accordingly, the full range of service sectors is liberalized with some limited 
exceptions. 
(b) External legal and regulatory changes 
60. The GATS commitments of the NMS10 and those of the EC15 have been modified following 
a GATS Article XXI procedure launched by the EC at  the time of notifying its enlargement, with a 
view to consolidating the commitments of all 25 Member States into one schedule.  These modifications concerned not only the NMS10 but also the three Member States that had acceded to the EC in its previous enlargement (Austria, Finl and, and Sweden).  The EC Commission has noted 
that while the changes reflect to a certain extent the adoption of the acquis by the 13 Member States 
concerned, the GATS commitments (and the chang es thereto) constitute bindings and must not be 
confused with the regimes actually applied.  
61. For the purpose of consolidating the commitments  of all 25 Member States into one schedule, 
in 2004 the European Commission notified to WTO Members its intention to modify or withdraw 
certain commitments contained in the schedules by the NMS10 as well as certain commitments by 
Austria, Finland, and Sweden.  Eighteen WTO Members submitted claims of interest related to this procedure.
26   
62. As foreseen in GATS Article XXI:2(a) and the Procedures for the Implementation of 
Article XXI (S/L/80), the EC entered into negotia tions with the 18 WTO Members that had made a 
claim of interest, concerning compensatory adjustment s with a view to maintaining a "general level of 
mutually advantageous commitments not less favourable  to trade than provided for in the schedule of 
specific commits prior to such negotiations".  Furt her to the agreement of compensatory adjustments 
with seventeen Members27, the EC completed the certification procedure in accordance with 
paragraph 20 of the Procedures for the Implemen tation of Article XXI (WTO document S/L/80).28  
63. The main changes resulting from the notificati on under the Article XXI procedure concern, 
inter alia , the alignment of new Member States with the EC12 horizontal commitments and 
limitations (in particular as regards public utiliti es, types of establishment, subsidies and Mode 4 
categories), and with the EC12 sectoral commitme nts on rental and leasing of aircraft without 
operators; services incidental to manufacturing; e ducation services; services provided by management 
of unit trusts and investment companies; rental of  aircraft with crew; sales and marketing, computer 
reservation systems for air transport services;  and cargo handling.  Austria also withdrew its 
commitments on space transport.  
64. As compensation offered in that Article XXI procedure, the EC25 countries undertook new 
commitments on telecommunications services and excluded this sector, as well as computer and related services from its horizontal limitati on on public utilities; Some NMS10 undertook new 
commitments for engineering services, integrated engineering services, urban planning and landscape 
architectural services, computer and related services,  advertising services, insurance services, travel 
                                                     
 
26 Argentina;  Australia;  Brazil;  Canada;  China;  Colombia;  Cuba;  Ecuador;  Hong Kong, China;  
India;  Japan;  the Republic of Korea;  New Zealand;   the Philippines;  the Separate Customs Territory of 
Taiwan, Penghu, Kinmen and Matsu;  Switzerland;  the United States and Uruguay. 
27 Uruguay withdrew its claim of interest. 
28 For the purpose of certification of its consolidated schedule, the European Communities submitted its 
draft consolidated schedule (S/C/W/273, 9 October 2006, and Suppl.1) containing the modifications and withdrawals relating to both procedur es, as well as the compensation with regard to the procedure concerning 
S/SECRET/8/Add.1-17.  WT/REG170/8/Rev.1 
 Page 21 
 
 
 agencies and tour operators services, and hairdressing services; and some EC15 Member States 
removed some of their limitations in the EC sch edule:  Austria removed a horizontal limitation on 
investment, Portugal removed a limitation on engi neering services, the United Kingdom took out a 
limitation on integrated engineering services, Finl and deleted limitations on banking and hairdressing 
services, and Italy removed a limitation on hotel, restaurant and catering services.  
Annex Table AIII.1 contains the references to these modifications. 
65. Following the conclusion of the GATS Article  XXI procedure, the certification of the 
Consolidated Schedule was concluded on 18 December  2006.  Accordingly, it will enter into force on 
a date to be specified by the EC and its Member St ates, further to the completion of the EC's internal 
procedures.29  The EC's Consolidated Schedule will then  constitute the main binding of the EC's 
external trade relations with other WTO Member s in the area of services, including the NMS10.  
There are, however, exceptions:  In particular, Chile  and Mexico, whose trade in services with the EC 
is governed by FTAs (listed in Table II.1 - EC Agreements). 
66. The GATS Article II (MFN) exemptions taken by the NMS10 remain in force.30   
2. Main EC horizontal provisions  
67. As a result of the Act of Accession, services and service suppliers of the EC15 and NMS10 
are in principle no longer subject, in each other's ma rkets, to the limitations in markets access or 
national treatment that apply to third country suppl iers, as reflected in the EC's consolidated GATS 
horizontal commitments.  However, as indicated befo re, the latter constitute guaranteed conditions of 
access and must not be confused with the effectiv ely applied regimes, which may be more liberal. 
68. Among the measures concerning commercial presen ce, the Consolidated Schedule stipulates 
that national treatment is accorded to subsidiaries of third-country companies formed in accordance 
with the law of a Member State and having their registered office, central administration or principal place of business within the Communities.  However, this treatment is not extended to branches or 
agencies established in a Member State by a third-country company.  Similarly, less favourable 
treatment may be accorded to subsidiaries of third- country companies formed in accordance with the 
law of a Member State which have only their regist ered office in the territory of the Communities, 
unless it can be shown that they possess an effectiv e and continuous link with the economy of one of 
the Member States.   
69. The Consolidated Schedule contains limitations of the acquisition of real estate in several 
Members States.  Those restrictions pertaining to  citizenship, such as limitations on purchases of 
agricultural estate by foreigners or foreign legal entities, in Austria, Denmark and the Czech Republic, 
have been abolished for EC nationals.    
70. The Consolidated Schedule also contains a "public utilities carve-out" in the form of a 
horizontal limitation on commercial presence which now applies to all Member States.  It stipulates 
that "services considered as public utilities at a na tional or local level may be subject to public 
monopolies or to exclusive rights granted to privat e operators".  According to the Consolidated 
                                                     
 
29 WTO document S/L/286 of 18 December 2006. 
30 List of Article II (MFN) Exemptions of the Czech Republic (documents GATS/EL/26 of 
15 April 1994, GATS/EL/26/Suppl.1 of 28 July 1995); of Estonia (document GATS/EL/127 of 5 October 1999);  of Cyprus (document GATS/EL/25 of 15 April 1994);  of Latvia (document GATS/EL/126 of 
22 April 1999);  of Lithuania (document GATS/EL/133 of 21 December 2001);  of Hungary (document 
GATS/EL/40 of 15 April 1994);  of Malta (document GATS/EL/54 of 15 April 1994);  of Poland (document GATS/EL/71 of 15 April 1994);  of Slovenia (document GATS/EL/99 of 30 August 1995); and of the 
Slovak Republic (documents GATS/EL/77 of 15 April 1994, GATS/EL/77/Suppl.1 of 28 July 1995). WT/REG170/8/Rev.1 
Page 22  
 
  Schedule, public utilities exist in sectors such as re lated scientific and technical consulting services, 
R&D services on social sciences and humanities, technical testing and analysis services, environmental services, health services, transport services and services auxiliary to all modes of 
transport.  Exclusive rights on such services are often granted to private operators, for instance 
operators with concessions from public authorities, s ubject to specific service obligations.  Public 
utilities also exist at the sub-central level.  
71. In its Consolidated Schedule, the EC has excluded telecommunications and computer and 
related services from its horizontal mode 3 limitati on on public utilities.  Further, Finland's mode 3 
horizontal limitations on legal entities under market  access; on subsidiaries, branches, agencies and 
representative offices under national treatment; and on investment under market access are not to 
apply to telecommunication services.  
72. With respect to subsidies, the following hor izontal limitation on national treatment on 
subsidies is contained in the Consolidated Sche dule:  "In all Member States, except Hungary and 
Poland, eligibility for subsidies from the EC or Memb er States may be limited to juridical persons 
established within the territory of a Member State or a particular geographical sub-division thereof.  
This does not cover subsidies for research and deve lopment, which are unbound, or the supply of a 
service, or its subsidisation, within the public sector".  In Hungary and Poland, all forms of subsidies are unbound for mode 3.  In several Member States
31, measures relating to subsidies are unbound for 
branches established in a Member State by a non-Community company.   
73. With respect to the presence of (non-EC) na tural persons (mode 4) , the EC horizontal 
commitments distinguish between intra-corporate transferees (ICT), business visitors (BV), and 
contractual service suppliers (CSS) i.e. juridical persons without a presence in the EC Member State 
to which they send employees to carry out a servi ces contract.  The commitments for ICTs and BVs 
apply to all scheduled sub-sectors, while those fo r CSS apply only to a number of specified sub-
sectors.  It is therefore probably for CSS that the EC internal liberalization effects brought about by accession has been greatest.   
74. Indeed, the Consolidated Schedule specifies a number of sub-sectors in which CSS are 
entitled to supply services.  Among others, these include sub-sectors such as legal services, accounting services, taxation advisory services, computer services, research and development services, advertising services, management consu lting services, translation services, construction 
services/site investigation work, higher educati on services or entertainment services.  The Schedules 
do not, however, include sub-sectors such as auditing services; medical, dental and midwifery 
services; veterinary services; services provide d by nurses, physiotherapists and paramedical 
personnel; market research and opinion polling; advisory and c onsulting services relating to 
agriculture, hunting and forestry; and to fishing; ser vices relating to mining; maintenance and repair 
of equipment; photographic services; convention ser vices; environmental services; adult education 
services; tourist guide services; and news agen cy services.  For these services, all CSS of 
EC companies are now subject to EC internal regulations and are exempt from these limitations. 
75. The application of GATS commitments on CSS to individual sub-sectors is not uniform 
across Member States.  Several EC Members ha ve not undertaken any relevant commitments.
32  Some 
Member States require a university degree, prof essional qualifications and a minimum duration of 
professional experience.  Some countries (such as Belg ium) have scheduled an economic needs test in 
                                                      
31 Belgium, Germany, Denmark, Gr eece, Spain, France, Ireland, Ital y, Luxembourg, the Netherlands, 
Portugal, Slovenia, and the United Kingdom. 
32 The Members States are Cyprus, the Czech Republic , Hungary, Malta, Lithuania, Poland, the Slovak 
Republic, and Slovenia.  WT/REG170/8/Rev.1 
 Page 23 
 
 
 cases in which the annual income of the natural person is below Euro 30,000.  These measures are no 
longer applicable in internal trade, which is now  governed by the provisions of the Directives on 
mutual recognition described above.  EC market access commitments on Mode 4 regarding CSS include the limitation that the temporary entry and st ay within the Member State concerned shall not 
exceed three months in any 12 months period.    
76. Regarding BVs and ICTs, the limitations that no longer apply in internal trade between the 
EC15 and the NMS10, as well as among the NMS10, include measures such as nationality requirements;  a requirement for ICTs to have been  employed for at least one year by the foreign 
juridical person immediately prior to transfer;  econom ic needs tests (ENTs, listed in the Consolidated 
Schedule for Finland, Latvia, and Poland, but no longer  applicable to intra-EC trade);  or limits on the 
duration of stay.  With regard to trade with th ird countries, for ICTs, the Consolidated Schedule 
includes a limitation requiring the receiving entity to be constituted, and provide like services, in the 
territory of the Community Member State concer ned.  Regarding service sellers, which are a sub-
category of business visitors, or business visitors  engaged in the establishment of a commercial 
presence, the Consolidated Schedule specifies that the se persons must not be engaged in direct sales to 
the general public.    
77. A national treatment limitation on subsidies h as also been scheduled under mode 4 in all 
Member States, except Austria and Poland.  To the ex tent that subsidies are made available to natural 
persons, their availability may be limited to nationa ls of a Member State of the Communities.  In 
Austria and Poland, mode 4 is unbound for subsidies.      
3. Main sectoral changes 
(a) Business Services 
78. As in other sectors, the Act of Accession has extended the principles governing the EC 
internal market to trade in business services betwee n the EC15 and the NMS10, and among the latter.  
This constitutes significant liberalization.  Indeed, in ternational trade in business services is typically 
hampered by the need for work and residence pe rmits as well as local qualification and licensing 
requirements (in particular, in the case of professi onal services).  The former (work and residence 
permits) have been eliminated as a result of EC Membership.  The nationals of the NMS10 are now 
treated as nationals concerning compliance with lo cal qualification and licensing requirements, and 
several directives have organised the mutual recogni tion of home country credentials inside the EC 
internal market, on a sectoral basis (e.g. lawyers, doctors, nurses, etc.) or horizontally (e.g. general system of mutual recognition of diplomas).  Changes
33 in the EC's GATS commitments on business 
services as a result of EC25 enlargement are referenced in Annex Table AIII.1. 
(i) Professional services 
79. The Consolidated Schedule contains commitments in all sub-sectors of professional services.  
Cross-border supply of a number of services such as  those provided by nurses, physiotherapists and 
paramedical personnel remains unbound for a large number of Member States.  Frequently, no 
commitments exist as regards commercial presence,  notably in several health-related services.34  With 
regard to mode 4, market access for CSS is unboun d for several sub-sectors (e.g. auditing services; 
medical, dental and midwifery services; veterinary services; and services provided by nurses, 
                                                      
33 Changes can be of three types: deletions (stroked out in document S/C/W/273), additions (bolded in 
document S/C/W/273), or new commitments resulting from the Article XXI procedure (highlighted in grey in document S/C/W/273). 
34 Subsectors h-j. WT/REG170/8/Rev.1 
Page 24  
 
  physiotherapists and paramedical personnel).  Subject to the expiry of transition periods, NMS10 
professional service suppliers have thus gained s ubstantial market access as a result of accession.  
Similarly, the NMS10 had included, prior to accession, most professional services in their individual GATS schedules, albeit with limitations of varying scope that no longer apply to EC25 services or 
services suppliers.    
(ii) Other business services 
80. Trade in computer and related services has la rgely been bound under the GATS for modes 1-3 
without significant restrictions, while the Consolid ated Schedule contains several restrictions under 
mode 4 for both market access and national treatment for intra-corporate transferees (ICTs), business visitors (BVs) and contractual services suppliers (CSS) .  It is therefore under mode 4 that that NMS10 
suppliers have achieved the most improved market a ccess conditions relative to external suppliers.   
81. Other business services, such as rental services without operators or real estate services, also 
remain subject to several limitations in the Cons olidated Schedule, which no longer apply within the 
internal market.  Research and development (R&D) services, in particular, constitute an area where 
significant new possibilities have opened up for NMS 10 researchers, as they became eligible for 
participation in the EU's research programmes.  By the same token, this is a sector where relatively 
few commitments have been made towa rds non-EC suppliers under the GATS.   
(b) Communication services 
82. This sector encompasses sub-sectors that have been fully liberalized across all EC Member 
States, such as most of telecommunications.  Other sub-sectors have been opened to competition by certain Member States only (such as express deliver y services for mail, parcels, and packages, and 
addressed press products) while some others have re mained subject to State monopolies, such as 
letters under 100 grams and other traditional postal ser vices.  The enlarged internal market resulting 
from accession is likely to generate substantial ne w trade opportunities for EC suppliers, regardless of 
their ownership status, particularly in the newl y liberalized sectors where large labour productivity 
gains are still to be made.   
(i) Postal and Courier Services 
83. The Consolidated Schedule does not include pos tal services.  In general, commitments for 
courier services (CPC 7512) are limited:  For mode  1, 20 Member States have no commitments; for 
Modes 2 and 3, 17 Member States have no commitm ents.  For mode 4, 17 Member States have 
remained without commitments for most categories of natural persons.  ICTs and BVs are permitted 
under commitments on modes 1-3, i.e. mainly for express delivery services, for only five Members.  
As many EC Member States have since considerab ly liberalized their postal markets, the Act of 
Accession has locked in the new regimes in terms of  market access and national treatment.   
(ii) Telecommunication Services 
84. As telecommunication services are among the most liberal in terms of the EC's GATS 
commitments on mode 1-3, it is perhaps not in these areas that accession-related internal trade 
liberalization has produced greatest additional gains.   
85. The EC25 GATS telecommunications commitment we re comprehensively redrafted as part of 
the Article XXI process.  In particular, a harmonized classification for all telecommunication services has been introduced.  Consolidated Schedule cont ains commitments on "all services consisting of the 
transmission and reception of signals by any electromagnetic means, excluding broadcasting".  Commitments do not differ between basic and value-added services.  The EC has undertaken the  WT/REG170/8/Rev.1 
 Page 25 
 
 
 obligations contained in the telecommunication re ference paper in eight of the telecommunication 
sub-sectors, including voice telephony, data transmissi on, telex, telegraph and fax.  Changes in the 
EC's GATS commitments in telecommunication services trade as a result of EC25 enlargement are referenced in Annex Table AIII.1. 
86. Certain restrictions on external access, that no longer apply in the enla rged internal market, 
remain.  For example, under the Consolidated Sche dule, Cyprus and Malta have no commitments for 
cross-border supply.  For commercial presence, Poland has scheduled a limitation concerning the participation of foreign capital and voting rights for public cellular mobile telephone services and 
networks.  France maintains a 20% limitation on sh areholding and voting rights for non-EC natural or 
juridical persons in companies that establish and op erate radio-based infrastructure for the provision 
of telecom services to the general public.  Finland maintains a requirement of permanent residence for 
half of the founders, half of the members of the board of directors, and the managing director.  
However, Finland has exempted telecommunicati on services from its horizontal mode 3 market 
access limitations which otherwise limits the ra nge of admitted on legal entities subsidiaries, 
branches, agencies and representative offices.  
(c) Construction and related engineering services 
87. In construction and related engineering services, the Consolidated Schedule contains 
significant limitations on market access and nationa l treatment.  Depending on the applied trade 
regime, there may thus have been significant scope for EC internal liberalization gains as a result of 
accession.  In terms of coverage, the Communitie s' GATS commitments on construction services – 
while not identical across Member St ates – generally encompass CPC 511-518.
35  They have not been 
modified in the course of the consolidation process.  
88. In the Consolidated Schedule, market acces s and national treatment have remained unbound 
for Cyprus, Hungary and Malta in all modes of su pply.  For mode 1, 14 Member States have taken 
full commitments in CPC 5111 (site investigatio n work) and 5114 (earth moving and excavating 
work), which are the only sub-sectors under this category where cross-border supply is deemed 
feasible.  Thirteen Members have fully bound market access under mode 3.  In contrast, the 
Czech Republic and the Slovak Republ ic have no GATS commitments for mode 3.  Mode 4 is also 
either unbound or subject to commercial presence requirements, or to nationality conditions for 
managers of construction companies suppl ying to the public sector (Spain).   
(d) Distribution services 
89. Wholesale and retail trade services have alread y been largely open to external competition 
from WTO Members, as witnessed by relatively ex haustive GATS commitments.  In wholesale trade 
services, all Member States, except Cyprus and Malta, have generally unde rtaken comprehensive 
commitments across all modes (except for CSS).  While all Member States have fully bound commercial presence in retailing services, four Member  States have reserved the right to apply 
economic needs tests for large department stores.  In  the sub-sector of commission agents' services, all 
but six Member States (Cyprus, the Czech Republic , Hungary, Italy, Poland and the Slovak Republic) 
have undertaken full commitments for modes 1-3.    
                                                     
 
35 The relevant services are defined as follows:  CPC 511 – pre-erection work at construction sites; 
CPC 512 – construction work for buildings; CPC 513 – construction work for civil engineering; CPC 514 – 
assembly and erection of pre-fabricated constructions; CPC 515 – special trade construction work; CPC 516 – installation work; CPC 517 – building completion and fini shing work;  CPC 518 – renting services related to 
equipment for construction or demolition of buildings  or civil engineering works, with operator. WT/REG170/8/Rev.1 
Page 26  
 
  (e) Education services 
90. A number of market access limitations, maintained by the EC in the area of education 
services, are no longer applicable to suppliers fro m the NMS10 in the enla rged internal market.  In 
particular, the Consolidated Schedule limits commitmen ts relating to education services to "privately 
funded services".  This limitation covers all Member  States.  A number of nationality requirements 
concerning education services are also listed in the Consolidated Schedule. For example, Italy has 
scheduled a limitation in primary, secondary, an d higher education services in the form of a 
nationality requirement for service suppliers to be authorized to issue State-recognized diplomas;  in primary and secondary education services, Greec e maintains a limitation on commercial presence 
requiring the majority of board members to be Gr eek nationals, as well as a nationality requirement 
for teachers as ICTs and BVs.  Also in higher education services, Denmark maintains a nationality 
requirement for professors as ICTs or BVs.  Cha nges in the EC's GATS commitments in education 
services following enlargement are referenced in Annex Table AIII.3. 
(f) Financial services 
91. Efforts by the EC to achieve an internal ma rket for financial services date from the Single 
Market Programme at the end of the 1980s, and were  renewed in the Financial Services Action Plan 
adopted in 1999, and again in a five-year financia l strategy launched in December 2005.  The aim of 
the strategy is to remove remaining barriers to a fully integrated market for financial services, 
including by allowing all financial institu tions to operate on an EC-wide basis. 
92. Through accession, financial companies based in th e NMS10 have in principle been granted  
full access to this integrated market.  They can not be made subject, for example, to a number of 
restrictions that have been listed in the Consolidat ed Schedule, such as Malta's economic needs test in 
insurance; Spain's requirement for foreign insurers to have been authorized to operate in the same 
classes of insurance in their countries of origin for at least five years before establishing a branch or 
agency; or Germany, France, and the UK's restrictions on the lead  management of securities issues 
denominated in euros.    
93. Among other scheduled market access limitati ons, “the establishment of a specialised 
management company is required to perform th e activities of management of unit trusts and 
investment companies”;  moreover, “only firms ha ving their registered office in the Community can 
act as depositories of the assets of investment fund s”. These limitations no lo nger apply in internal 
trade among the EC25 Member States. 
94. Finland has scheduled a permanent residency re quirement under mode 3 that "at least one of 
the founders, the members of the board of directors,  the supervisory board and the managing director 
shall have their permanent reside nce in the European Community…". 
95. In the consolidated GATS commitments in financial services, 18 Member States
36 are bound 
by the provisions of the "Understanding on Commitmen ts in Financial Services", while the remaining 
seven37 are not.  Changes in GATS commitments r esulting from enlargement are referenced in 
Annex Table AIII.1. 
                                                      
36 Austria, Belgium, Czech Republic, Denmark, Finl and, France, Germany, Gr eece, Hungary, Ireland, 
Italy, Luxemburg, the Netherlands, Portugal, Slovak Republic, Spain, Sweden, and the UK. 
37 Cyprus, Estonia, Latvia, Lithuania, Malta, Poland and Slovenia.  WT/REG170/8/Rev.1 
 Page 27 
 
 
 (g) Transport services 
96. Transport services have traditionally constitute d a "special" sector, as witnessed by the 
specific provisions on transport in the EC Treaty.  It s Title V covers rail, road and inland waterway.  
In addition, as provided by Article 80 (2), the Council of Ministers may, acting by a qualified 
majority, decide whether, to what extent and by what procedure appropriate provisions may be laid 
down for sea and air transport; port services are not mentioned as such.   
97. The prospect of full market access and nati onal treatment among all EC service providers 
implied major structural adjustment s within the transport sector of th e NMS10 and, to a certain extent, 
of the EC15, as these sectors have traditionally been  more protected from foreign competition than 
many others.   
98. As early as 2000, existing laws were amended and new legislation passed to transpose the 
EC's acquis  communautaire into national legislation.  The entr y into force of the Act of Accession 
fully bound these transformations.  This constitutes a major improvement in terms of the binding of 
market access and national treatment relative to the commitments contained in the Consolidated 
Schedule, and in the myriad of prior bilateral agreements among the NMS10 and between the latter 
and the EC15.  
(i) Water transport services 
99. Amendments have been numerous in the legi slation of the NMS10 to transpose the EC acquis 
communautaire  in areas such as inland waterways, maritime transport (including cabotage, internal 
market regulation and external po licy), the investigation of maritime accidents, and the professional 
competence of the crews of sea-going ships.  In prep aration for the internal market, shipping lines in 
the NMS10, most of which were St ate-owned in the past, had to rationalize their services in order to 
operate profitably on major international routes.   
100. As in other sectors, the Act of Accession implies full commitments for all Member States on 
market access and national treatment within the Co mmunity, for maritime transportation of freight 
and passengers, access to use of ports, infrastructure and maritime auxiliary services, and the freedom 
of movement for ship crews.  This represents improvements over commitments made under the 
Europe Agreements and under the GATS, where bindings  in maritime transport are few.  Indeed, for 
maritime transport services, GATS commitments are confined to the ten Member States admitted to 
the EC in 2004, as the EC had withdrawn its offer at  the end of the extended negotiations on maritime 
transport services in 1996.  Changes in the EC's GATS commitments in the maritime transport sector 
as a result of EC25 consolidation are referenced in Annex Table AIII.1. 
(ii) Air and space transport services 
101. International air passenger and cargo services in the NMS10, and also between NMS10 and 
EC15 were until 2000 largely govern ed by bilateral agreements.  Access was based on reciprocity 
arrangements, with priority or exclusive rights granted to the national ope rators, and on bilateral 
capacity and sharing provisions with foreign airlines.  In preparation for the Single Market, applicant 
countries (e.g. Hungary, Poland) negotiated "ope n skies" agreements with the EC15.   
102. Upon accession, the NMS10 air carriers have obt ained free access to the EC market to 
provide services in the EC, including cabotag e within individual Members States.   
 
 WT/REG170/8/Rev.1 
Page 28  
 
  103. Large segments of air transport services, including measures affecting traffic rights, have 
been carved out from the GATS.  For maintenance and repair of aircraft, one of the few air transport 
services expressly covered by the GATS, full commitm ents were made by 23 Member States under 
modes 2 (a commercially significant mode for this service) and 3.  Malta and Cyprus do not have 
GATS commitments.  For selling and marketing of ai r transport services, Mode 1 is unbound for eight 
Member States, Mode 2 for six, and Mode 3 for ei ght.  For computer reservation systems, 17 Member 
States have scheduled commitments under mode 1 a nd mode 3, and 19 Member States have made 
commitments under Mode 2. Changes in the EC's GATS commitments in the air transport sector as a 
result of EC25 consolidation are re ferenced in Annex Table AIII.1. 
(iii) Auxiliary transport services 
104. For storage and warehousing, the EC GATS commitments for mode 3 cover 19 Member 
States, excluding Cyprus, the Czech Republic, Malta, Poland, the Slovak Republic  and Sweden. There 
are few EC GATS commitments on container station and depot services, which are now in principle open to full internal market competition.  Similarl y, cargo handling services constitute an area where 
the EC25 did not assume full commitments under mode 3 (except for Latvia and Estonia);  they are 
fully liberalized internally.   
105. Six Member States (Cyprus, the Czech Re public, Hungary, Malta, Poland, the Slovak 
Republic, and Slovenia) have left freight trans port agency, forwarding and other supporting services 
entirely unbound for all types of transport ser vices (CPC 748); and seven have not bound any 
commitments for pre-shipment inspection servi ces.  These are areas where accession has bound 
considerable internal liberalization. 
IV. GENERAL PROVISIONS OF THE EU TREATY 
A. E
XCEPTIONS  
106. In Chapter 2 of the EC Treaty, which provid es for the right of establishment, Article 45 
states:  "The provisions of this ch apter shall not apply, so far as any given Member State is concerned, 
to activities which in that State are connected, ev en occasionally, with the exercise of official 
authority".  As an exception, this provision has b een interpreted restrictively, requiring that such 
activities are directly and specifically connected  with the exercise of official authority.38 According to 
Article 46 it is possible to derogate from the intr a-EC freedom of establishment on grounds of public 
policy, public security or public health. These excep tions are also applicable to the intra-EC freedom 
to provide services via Article 55 of the EC Treaty. 
B. ACCESSION  
107. The EC Treaty is open to accession by European States (Article 49):  "Any European State 
which respects the principles set out in Article 6(1)  may apply to become a member of the Union. It 
shall address its application to the Council, wh ich shall act unanimously after consulting the 
Commission and after receiving the assent of the Eu ropean Parliament, the latter shall act by an 
absolute majority of its component members".  Arti cle 6 (1) specifies that the Union is founded on the 
principles of liberty, democracy, respect for human rights and fundamental freedoms, and the rule of 
law, principles which are common to the Member States.  
 
                                                      
38 Case 2/74 Reyners [1974] ECR 631, paragraph 45, and Case C-42/92 Thijssen [1993] ECR I-4047, 
paragraph 8.  WT/REG170/8/Rev.1 
 Page 29 
 
 
 C. DISPUTE SETTLEMENT  
108. The Court of Justice and the Court of Firs t Instance of the Eur opean Communities shall 
ensure that in the interpretation and application of  the EC Treaty the law is observed (Article 220 of 
the EC Treaty).  EC member States undertake not to  submit a dispute concerning the interpretation or 
application of the EC Treaty to any method of settle ment other than those provided for in the Treaty 
(Article 292 of the EC Treaty). 
  WT/REG170/8/Rev.1 
Page 30  
 
  ANNEX I 
 
Table AI.1 
EC15' trade in services with NMS10, 2003-05 
(€ billion) 
2003 2004 2005  Partner Post 
Credit  Debit  Credit  Debit  Credit  % Debit % 
NMS10 New Member States (CZ, EE, CY, LV, LT, HU, MT, PL, SI, SK)  
 Commercial services (200-291) 17461.7 22539.7 20646.1 26232.3 24687.6 99.3 30020.0 97.9 
 205  Transportation  3539.3 5569.6 4407.9 6780.7 5029.1 20.2 7714.7 25.2 
 236  Travel  4465.9 10211.4 5331.4 11397.8 6765.9 27.2 12815.3 41.8 
 245  Communications services  411.7 428.1 478.8 497.1 656.5 2.6 610.4 2.0 
 249  Construction services  960.8 904.7 983.6 966.9 968.2 3.9 863.9 2.8 
  253  Insurance services  354.6 185.7 505.2 175.2 476.9 1.9 189.1 0.6 
  260  Financial services  296.7 122.8 513.7 147.4 534.8 2.2 191.0 0.6 
  262  Computer and 
information services  796.6 266.2 972.4 294.8 1101.4 4.4 438.4 1.4 
  266  Royalties and license fees  580.2 559.0 675.2 404.1 964.9 3.9 938.9 3.1 
  268  Other business services  4812.0 3423.9 5455.2 4031.3 7134.4 28.7 4942.6 16.1 
  287  Personal, cultural and 
recreational services  197.3 280.6 219.5 261.7 214.9 0.9 265.4 0.9 
Cyprus           
 Commercial services (200-291) 1372.1 3491.3 2132.2 3618.9 2318.1 9.3 4295.5 14.0 
  205  Transportation  374.7 952.1 665.9 1036.1 516.4 21.7 1208.8 26.8 
  236  Travel  457.5 1640.5 694.8 1720.3 665.1 27.9 1764.3 39.1 
  245  Communications services  50.8 23.1 49.0 24.9 62.4 2.6 24.6 0.5 
  249  Construction services  98.4 49.4 110.0 42.1 385.8 16.2 63.8 1.4 
  253  Insurance services  39.7 24.8 30.1 29.0 38.4 1.6 17.7 0.4 
  260  Financial services  31.1 14.4 59.9 30.3 73.9 3.1 20.5 0.5 
  262  Computer and 
information services  38.0 51.8 38.5 44.5 46.3 1.9 52.0 1.2 
  266  Royalties and license fees  19.9 323.3 16.8 213.3 14.1 0.6 590.3 13.1 
  268  Other business services  237.8 398.9 443.1 457.4 492.2 20.7 532.4 11.8 
  287  Personal, cultural and 
recreational services  18.2 9.8 18.2 16.8 17.5 0.7 17.1 0.4 
Czech Republic  
 Commercial services (200-291) 3437.1 4670.8 3883.8 5416.5 4262.0 17.1 6184.3 20.2 
  205  Transportation  629.9 682.4 828.6 880.8 897.5 21.0 1106.8 17.7 
  236  Travel  866.1 2676.4 970.6 3016.5 1099.5 25.7 3322.9 53.0 
  245  Communications services  72.0 83.5 78.0 102.2 111.8 2.6 137.4 2.2 
  249  Construction services  52.1 79.1 60.9 97.0 112.1 2.6 115.8 1.8 
  253  Insurance services  35.1 39.4 97.7 14.9 127.3 3.0 20.0 0.3 
  260  Financial services  76.0 25.7 149.0 30.4 118.6 2.8 52.9 0.8 
  262  Computer and 
information services  176.2 47.5 225.1 41.0 257.0 6.0 103.5 1.7 
  266  Royalties and license fees  126.6 123.5 147.1 30.6 120.5 2.8 31.9 0.5 
  268  Other business services  1168.4 719.5 1036.2 813.7 1193.3 27.9 982.9 15.7 
  287  Personal, cultural and 
recreational services  16.5 24.5 23.6 30.1 22.4 0.5 17.2 0.3 
Estonia  
 Commercial services (200-291) 421.4 739.1 471.2 823.6 702.0 2.8 981.4 3.2 
  205  Transportation  189.1 227.1 166.4 237.2 266.6 37.6 232.8 23.4 
  236  Travel  78.5 390.6 101.5 418.1 170.4 24.0 526.6 52.8 
  245  Communications services  19.7 24.0 26.2 23.4 43.4 6.1 43.7 4.4 
  249  Construction services  32.8 27.5 30.5 23.6 32.3 4.6 21.6 2.2 
  253  Insurance services  8.4 2.6 4.8 2.7 6.9 1.0 3.1 0.3 
  260  Financial services  1.7 0.1 8.0 2.0 10.2 1.4 2.3 0.2 
  262  Computer and 
information services  13.8 4.6 19.5 4.3 23.7 3.3 11.4 1.1 
  266  Royalties and license fees  3.5 0.3 7.2 9.8 9.9 1.4 8.6 0.9 
Table AI.1 (Cont'd)   WT/REG170/8/Rev.1 
 Page 31 
 
 
 2003 2004 2005  Partner Post 
Credit  Debit  Credit  Debit  Credit  % Debit % 
  268  Other business services  66.2 55.6 93.7 90.2 126.6 17.8 123.0 12.3 
  287  Personal, cultural and 
recreational services  1.9 0.6 3.3 0.9 4.5 0.6 1.0 0.1 
Hungary  
 Commercial services (200-291) 3645.5 3678.5 4306.7 4276.6 5508.4 22.1 4540.4 14.8 
  205  Transportation  648.2 571.8 669.8 667.8 838.4 15.2 805.3 17.5 
  236  Travel  519.9 1670.6 646.2 1713.5 914.7 16.5 1680.0 36.5 
  245  Communications services  63.6 91.7 87.2 89.6 111.0 2.0 112.9 2.5 
  249  Construction services  208.0 88.1 267.7 214.1 200.3 3.6 164.0 3.6 
  253  Insurance services  91.9 22.8 118.6 21.4 84.7 1.5 31.1 0.7 
  260  Financial services  71.1 26.6 82.9 28.0 108.1 2.0 31.8 0.7 
  262  Computer and 
information services  160.3 72.2 168.8 82.7 218.3 3.9 119.3 2.6 
  266  Royalties and license fees  137.8 86.9 237.6 86.2 504.2 9.1 137.1 3.0 
  268  Other business services  1272.8 638.4 1591.6 758.0 2188.6 39.6 915.1 19.9 
  287  Personal, cultural and 
recreational services  54.9 215.5 83.5 186.2 67.8 1.2 184.8 4.0 
Latvia  
 Commercial services (200-291) 340.4 494.0 476.7 575.6 614.3 2.5 615.0 2.0 
  205  Transportation  91.0 177.0 140.7 213.1 173.1 27.9 195.0 31.0 
  236  Travel  87.7 89.9 146.9 167.0 261.9 42.2 223.2 35.5 
  245  Communications services  9.3 11.9 11.8 18.0 17.3 2.8 17.7 2.8 
  249  Construction services  12.3 9.4 12.1 4.6 12.1 1.9 4.5 0.7 
  253  Insurance services  13.8 16.0 16.5 23.9 9.9 1.6 3.6 0.6 
  260  Financial services  4.9 1.3 9.2 0.3 8.3 1.3 1.2 0.2 
  262  Computer and 
information services  25.9 14.6 18.1 11.7 19.3 3.1 8.2 1.3 
  266  Royalties and license fees  4.8 0.4 6.3 0.6 6.8 1.1 2.1 0.3 
  268  Other business services  81.3 167.3 96.5 132.2 94.5 15.2 150.0 23.8 
  287  Personal, cultural and 
recreational services  3.1 1.2 4.7 1.4 3.4 0.6 2.5 0.4 
Lithuania  
 Commercial services (200-291) 328.6 504.3 405.1 503.3 678.5 2.7 707.5 2.3 
  205  Transportation  71.1 188.2 116.6 223.3 145.8 21.2 299.4 41.1 
  236  Travel  141.6 192.5 140.7 126.8 283.9 41.3 232.0 31.8 
  245  Communications services  13.8 13.0 16.9 26.8 19.5 2.8 23.7 3.3 
  249  Construction services  6.8 3.5 5.5 13.4 25.9 3.8 19.2 2.6 
  253  Insurance services  4.9 3.9 3.9 4.9 10.7 1.6 2.1 0.3 
  260  Financial services  1.5 0.4 5.3 5.0 5.0 0.7 3.7 0.5 
  262  Computer and 
information services  10.8 4.4 29.4 4.7 42.3 6.2 3.5 0.5 
  266  Royalties and license fees  2.2 0.1 6.6 3.2 4.1 0.6 0.1 0.0 
  268  Other business services  68.8 94.2 66.5 90.8 120.0 17.5 117.8 16.2 
  287  Personal, cultural and 
recreational services  3.0 3.1 3.5 3.2 7.3 1.1 4.8 0.7 
Malta  
 Commercial services (200-291) 438.8 1161.5 592.4 1345.0 557.6 2.2 1544.5 5.0 
  205  Transportation  196.8 380.5 240.6 500.1 228.8 40.7 554.0 35.4 
  236  Travel  93.0 638.1 115.4 689.0 128.6 22.9 710.2 45.4 
  245  Communications services  5.8 14.2 8.4 17.8 8.6 1.5 18.4 1.2 
  249  Construction services  19.0 40.1 10.6 56.1 13.5 2.4 15.1 1.0 
  253  Insurance services  2.1 29.1 73.0 2.7 11.7 2.1 5.3 0.3 
  260  Financial services  30.1 6.3 41.2 3.6 37.3 6.6 4.4 0.3 
  262  Computer and 
information services  3.6 2.2 3.0 1.1 7.4 1.3 2.4 0.2 
  266  Royalties and license fees  1.5 2.7 1.6 3.0 4.9 0.9 132.9 8.5 
  268  Other business services  81.4 47.3 89.1 64.1 110.4 19.6 99.3 6.3 
  287  Personal, cultural and 
recreational services  2.5 2.1 5.5 1.5 2.5 0.4 3.7 0.2 
Table AI.1 (cont'd) WT/REG170/8/Rev.1 
Page 32  
 
  2003 2004 2005  Partner Post 
Credit  Debit  Credit  Debit  Credit  % Debit % 
Poland  
 Commercial services (200-291) 4793.1 5712.0 5636.1 6859.3 6957.8 28.0 7851.0 25.6 
  205  Transportation  910.6 1856.8 1076.3 2136.9 1355.5 19.4 2312.1 28.9 
  236  Travel  1270.5 2096.0 1801.6 2669.3 2445.2 35.0 3278.8 40.9 
  245  Communications services  127.1 137.4 149.8 138.6 230.6 3.3 170.3 2.1 
  249  Construction services  471.5 514.9 371.3 422.6 115.7 1.7 339.1 4.2 
  253  Insurance services  90.8 25.7 71.9 45.7 104.7 1.5 47.9 0.6 
  260  Financial services  44.4 35.7 95.9 33.9 130.7 1.9 52.8 0.7 
  262  Computer and 
information services  255.1 44.7 339.2 63.2 363.7 5.2 78.8 1.0 
  266  Royalties and license fees  241.7 15.1 205.7 53.0 260.5 3.7 30.7 0.4 
  268  Other business services  1105.7 932.7 1317.2 1194.7 1772.7 25.3 1446.7 18.1 
  287  Personal, cultural and 
recreational services  91.7 13.0 69.1 15.3 76.6 1.1 24.0 0.3 
Slovak Republic  
 Commercial services (200-291) 1062.5 882.0 1261.9 1296.9 1551.4 6.2 1494.0 4.9 
  205  Transportation  185.9 220.8 193.4 410.7 246.3 15.8 391.2 25.7 
  236  Travel  188.4 270.9 297.4 327.9 458.8 29.4 436.0 28.7 
  245  Communications services  15.5 16.0 24.3 30.5 27.9 1.8 29.2 1.9 
  249  Construction services  40.9 64.0 94.1 62.0 49.2 3.2 87.2 5.7 
  253  Insurance services  38.4 11.6 62.6 8.9 50.1 3.2 11.9 0.8 
  260  Financial services  22.3 5.7 37.2 5.0 22.6 1.5 10.1 0.7 
  262  Computer and 
information services  56.7 11.0 70.1 17.2 72.3 4.6 20.4 1.3 
  266  Royalties and license fees  28.8 4.2 31.7 2.4 28.9 1.9 1.0 0.1 
  268  Other business services  374.2 223.4 321.5 276.8 494.0 31.7 373.1 24.5 
  287  Personal, cultural and 
recreational services  2.7 3.2 4.7 1.4 7.6 0.5 6.8 0.4 
Slovenia  
 Commercial services (200-291) 1619.2 1203.8 1480.3 1517.7 1530.4 6.2 1806.6 5.9 
  205  Transportation  239.9 316.8 306.5 473.6 357.9 23.3 608.7 33.3 
  236  Travel  764.7 541.8 417.2 545.4 335.7 21.8 641.6 35.1 
  245  Communications services  29.1 12.2 26.5 21.4 25.0 1.6 31.7 1.7 
  249  Construction services  18.0 24.3 20.2 28.2 19.1 1.2 32.5 1.8 
  253  Insurance services  25.3 7.8 26.5 17.1 30.9 2.0 42.2 2.3 
  260  Financial services  10.7 3.1 22.0 5.6 18.2 1.2 4.3 0.2 
  262  Computer and 
information services  55.1 14.5 56.8 19.4 51.2 3.3 35.7 2.0 
  266  Royalties and license fees  10.6 1.4 12.4 0.1 10.9 0.7 1.0 0.1 
  268  Other business services  353.1 146.5 396.8 148.2 535.2 34.8 200.7 11.0 
  287  Personal, cultural and 
recreational services  2.7 5.4 3.4 3.7 3.4 0.2 2.2 0.1 
Source:  Eurostat.  WT/REG170/8/Rev.1 
 Page 33 
 
 
 Table AI.2  
Extra-EC25 trade in services of the New Member States (NMS10)  
2003 2004 2005   
Credit Debit Credit Debit Credit % Debit % 
NMS10          
 Commercial services (- Govt) 13613 10642 15727 13275 17629 99.0 13984 97.6 
  205 Transportation 3671 2281 5145 3252 5700 32.0 3355 23.4 
  236 Travel 5842 3770 4702 3315 4881 27.4 3443 24.0 
  245 Communications services 168 354 265 466 267 1.5 425 3.0 
  249 Construction services 239 243 296 276 429 2.4 294 2.1 
  253 Insurance services 34 133 66 175 53 0.3 175 1.2 
  260 Financial services 308 480 565 777 634 3.6 742 5.2 
  262 Computer and information services 261 223 437 354 448 2.5 401 2.8 
  266 Royalties and license fees 111 365 476 1023 724 4.1 1067 7.4 
  268 Other business services 2498 2289 3256 2943 3954 22.2 3333 23.3 
  287 Personal, cultural and recreational 
services 575 629 629 821 687 3.9 893 6.2 
Cyprus          
  200 Total services 2143 914 2081 844 1992 100.0 771 100.0 
  205 Transportation 748 465 744 368 710 35.7 341 44.2 
  236 Travel 377 161 260 207 291 14.6 199 25.8 
  245 Communications services 16 20 14 15 10 0.5 19 2.4 
  249 Construction services 34 9 25 2 43 2.1 3 0.3 
  253 Insurance services 10 15 9 20 13 0.6 14 1.8 
  260 Financial services 52 11 72 60 76 3.8 53 6.8 
  262 Computer and information services 60 17 156 8 102 5.1 7 1.0 
  266 Royalties and license fees 11 28 13 36 11 0.5 13 1.7 
  268 Other business services 759 52 767 88 717 36.0 81 10.4 
  287 Personal, cultural and recreational 
services 4 6 7 11 12 0.6 14 1.8 
Czech Republic         
 Commercial services (- Govt) 2227 2647 2730 3373 3164 99.5 3468 99.1 
  205 Transportation 592 487 731 631 847 26.6 655 18.7 
  236 Travel 764 327 816 438 854 26.8 456 13.0 
  245 Communications services 24 180 42 220 32 1.0 138 3.9 
  249 Construction services 58 133 64 131 83 2.6 150 4.3 
  253 Insurance services 1 14 2 21 5 0.2 41 1.2 
  260 Financial services 61 323 220 428 273 8.6 400 11.4 
  262 Computer and information services 33 43 39 61 99 3.1 96 2.7 
  266 Royalties and license fees 30 86 35 78 40 1.3 103 2.9 
  268 Other business services 613 981 714 1285 837 26.3 1337 38.2 
  287 Personal, cultural and recreational 
services 53 2.4 68 80 93 2.9 92 2.6 
Estonia          
 Commercial services (- Govt) 613 300 738 327 783 98.1 434 98.5 
  205 Transportation 354 141 407 169 350 43.9 225 51.1 
  236 Travel 103 72 146 84 174 21.8 114 25.8 
  245 Communications services 7 6 12 9 11 1.4 12 2.7 
  249 Construction services 29 17 15 5 52 6.5 10 2.3 
  253 Insurance services 1 0 2 0 1 0.1 0 0.1 
  260 Financial services 4 4 3 3 4 0.5 6 1.3 
  262 Computer and information services 11 2 9 3 14 1.7 3 0.7 
  266 Royalties and license fees 2 5 2 3 2 0.3 4 0.9 
  268 Other business services 103 52 143 50 176 22.1 60 13.6 
  287 Personal, cultural and recreational 
services 0 0 0 0 0 0.1 1 0.1 
Hungary          
 Commercial services (- Govt) 5400 4604 3512 3322 3958 98.0 3369 97.3 
  205 Transportation 258 450 358 399 445 11.0 342 9.9 
Table AI.2 (cont'd) WT/REG170/8/Rev.1 
Page 34  
 
  2003 2004 2005   
Credit Debit Credit Debit Credit % Debit % 
  236 Travel 3592 2296 1148 818 1140 28.2 741 21.4 
  245 Communications services 43 50 60 88 68 1.7 90 2.6 
  249 Construction services 25 11 42 11 56 1.4 9 0.3 
  253 Insurance services 5 52 7 44 1 0.0 32 0.9 
  260 Financial services 94 90 87 75 50 1.2 54 1.6 
  262 Computer and information services 87 89 73 90 67 1.7 133 3.8 
  266 Royalties and license fees 45 180 385 576 607 15.0 592 17.1 
  268 Other business services 765 807 870 574 1026 25.4 669 19.3 
  287 Personal, cultural and recreational 
services 486 578 483 647 497 12.3 707 20.4 
Latvia          
 Commercial services (- Govt) 688 361 761 440 863 98.2 520 98.9 
  205 Transportation 429 98 430 117 481 54.7 128 24.3 
  236 Travel 76 126 78 131 89 10.1 178 33.9 
  245 Communications services 9 6 11 11 14 1.6 13 2.5 
  249 Construction services 17 9 12 9 3 0.3 0 0.0 
  253 Insurance services 9 44 9 32 9 1.0 22 4.1 
  260 Financial services 81 19 92 21 103 11.8 23 4.4 
  262 Computer and information services 14 11 21 18 24 2.8 32 6.0 
  266 Royalties and license fees 2 3 6 12 9 1.0 11 2.2 
  268 Other business services 48 44 98 84 128 14.5 105 19.9 
  287 Personal, cultural and recreational 
services 2 2 2 6 4 0.5 7 1.4 
Lithuania          
 Commercial services (- Govt) 868 413 982 552 1182 99.4 736 97.5 
  205 Transportation 433 230 519 284 574 48.2 366 48.5 
  236 Travel 334 132 373 200 355 29.8 279 37.0 
  245 Communications services 31 14 18 11 17 1.4 15 2.0 
  249 Construction services 16 5 18 4 15 1.2 4 0.6 
  253 Insurance services 0 -8 2 1 1 0.1 2 0.2 
  260 Financial services 2 1 4 1 5 0.5 1 0.1 
  262 Computer and information services 8 5 8 4 7 0.6 4 0.6 
  266 Royalties and license fees 0 7 0 8 0 0.0 9 1.2 
  268 Other business services 38 27 35 38 205 17.2 55 7.2 
  287 Personal, cultural and recreational 
services 6 0 3 0 4 0.3 1 0.1 
Malta          
 Commercial services (- Govt) 0 0 337 294 332 100.0 271 100.0 
  205 Transportation 0 0 81 73 77 23.3 74 27.2 
  236 Travel 0 0 96 45 86 25.8 45 16.7 
  245 Communications services 0 0 9 4 8 2.4 5 1.8 
  249 Construction services 0 0 0 0 0 0.0 0   
  253 Insurance services 0 0 3 8 2 0.7 9 3.3 
  260 Financial services 0 0 47 78 42 12.6 49 18.1 
  262 Computer and information services 0 0 5 4 5 1.7 4 1.7 
  266 Royalties and license fees 0 0 1 6 0   0   
  268 Other business services 0 0 76 68 82 24.7 74 27.2 
  287 Personal, cultural and recreational 
services 0 0 8 1 14 4.1 1 0.2 
Poland          
 Commercial services (- Govt) 0 0 2839 2526 3396 99.3 2788 96.5 
  205 Transportation 0 0 1049 711 1333 39.0 791 27.4 
  236 Travel 0 0 1194 740 1253 36.6 751 26.0 
  245 Communications services 0 0 42 35 49 1.4 53 1.9 
  249 Construction services 0 0 66 81 106 3.1 69 2.4 
  253 Insurance services 0 0 28 28 15 0.4 41 1.4 
  260 Financial services 0 0 25 84 39 1.1 98 3.4 
  262 Computer and information services 0 0 66 105 55 1.6 62 2.2 
Table AI.2 (cont'd)  WT/REG170/8/Rev.1 
 Page 35 
 
 
 2003 2004 2005   
Credit Debit Credit Debit Credit % Debit % 
  266 Royalties and license fees 0 0 12 249 26 0.7 290 10.0 
  268 Other business services 0 0 335 456 493 14.4 600 20.8 
  287 Personal, cultural and recreational 
services 0 0 22 36 27 0.8 33 1.1 
Slovak Republic         
 Commercial services (- Govt) 1033 693 954 713 1060 99.2 638 97.2 
  205 Transportation 670 271 592 350 626 58.6 261 39.8 
  236 Travel 218 110 165 126 179 16.7 105 16.0 
  245 Communications services 4 21 8 8 5 0.5 11 1.7 
  249 Construction services 5 7 8 5 8 0.7 6 0.9 
  253 Insurance services 5 15 2 19 3 0.3 13 2.0 
  260 Financial services 7 25 10 19 32 3.0 50 7.6 
  262 Computer and information services 19 22 24 26 38 3.6 27 4.1 
  266 Royalties and license fees 16 25 17 19 23 2.2 15 2.3 
  268 Other business services 60 169 94 113 114 10.7 122 18.5 
  287 Personal, cultural and recreational 
services 16 20 26 19 23 2.2 15 2.3 
Slovenia          
 Commercial services (- Govt) 713 814 796 893 907 99.6 1018 99.2 
  205 Transportation 172 114 218 131 232 25.5 158 15.3 
  236 Travel 318 377 332 413 348 38.1 453 44.1 
  245 Communications services 19 37 24 46 29 3.1 54 5.2 
  249 Construction services 42 37 38 20 56 6.1 25 2.4 
  253 Insurance services 2 2 2 2 2 0.3 2 0.2 
  260 Financial services 6 6 6 7 8 0.9 9 0.9 
  262 Computer and information services 30 33 35 34 37 4.1 32 3.2 
  266 Royalties and license fees 4 31 5 35 7 0.8 30 2.9 
  268 Other business services 112 158 125 187 175 19.2 233 22.7 
  287 Personal, cultural and recreational 
services 8 20 11 19 12 1.4 23 2.2 
Memo item:          
EU15 Commercial services (- Govt) 316274 283617 347778 306228 380567 98.0 329009 98.2 
  205 Transportation 56119 67295 87937 75429 97705 25.2 81598 24.4 
  236 Travel 56711 72671 62197 78059 66189 17.0 83129 24.8 
  245 Communications services 5655 6326 6222 6716 6572 1.7 7230 2.2 
  249 Construction services 9639 5230 9427 5747 10820 2.8 6050 1.8 
  253 Insurance services 14871 6123 10864 8430 6279 1.6 7940 2.4 
  260 Financial services 24749 10037 29096 11134 34323 8.8 13335 4.0 
  262 Computer and information services 16250 7148 15926 7755 16435 4.2 8141 2.4 
  266 Royalties and license fees 17267 27444 19797 28318 22514 5.8 30154 9.0 
  268 Other business services 92302 73432 98686 76199 113253 29.2 83886 25.0 
  287 Personal, cultural and recreational 
services 3890 4991 4744 5382 4234 1.1 4991 1.5 
Source:  Eurostat. WT/REG170/8/Rev.1 
Page 36  
 
  Table AI.3  
EC15:  Stock of direct investment in the NMS10, by economic activity 
(€ million)  
 2003 2004 2005 
9999 Total 129,349 164,836 201,409 
4195  Electricity, gas and water  4,949 13,258 3,801 
4500  Construction  1,283 1,277 1,838: 
5095  Total services  64,249 106,115 146,183 
5295  Trade and repairs  13,971 13,925 14,772 
5500  Hotels and restaurants  416 355 477 
6000  Land transport  183 273 432 
6100  Water transport  123 88 115 
6200  Air transport  102 134 2003 
6295  Total land, sea and air transport  408 495 2550 
6420  Telecommunications  4,712 6,500 11,648 
6895  Financial intermediation  21,722 60,706 80,447 
6500  Financial intermediation, exce pt insurance and pension funding  : 56,190 78,100 
6510  Monetary intermediation  11,232 18,391 23,963 
6520  Other financial intermediation  7,437 37,798 54,135 
7395  Real estate and business activities  21,434 22,593 33,087 
7000  Real estate  2,704 4363 3,549 
7100  Renting of machinery and equipment withou t operator and of personal and household 
goods  : : : 
7200  Computer activities  278 492 1,143 
7300  Research and development  117 207 125 
7400  Other business activities  18,034 19,113 27,229 
Source : Eurostat.  WT/REG170/8/Rev.1 
 Page 37 
 
 
 ANNEX II 
 
 
Table AII.1 
NMS10:  Terminated free trade agreements with  third parties as a result of EC accession 
NMS10 Party Type of agreement WTO document 
Czech Republic Central European Free Trade Agreement (CEFTA) FTA-goods only WT/REG11 
 European Free Trade Agreement (EFTA) FTA-goods only WT/REG87 
 Israel FTA-goods only WT/REG56 
 Turkey FTA-goods only WT/REG67 
 Bulgaria FTA-goods only Not notified 
 Romania FTA-goods only Not notified 
Estonia CEFTA FTA-goods only WT/REG11 
 Bulgaria FTA-goods only WT/REG149 
 EFTA FTA-goods only WT/REG28 
 Faroe Islands FTA-goods only WT/REG64 
 Turkey FTA-goods only WT/REG70 
 Ukraine FTA-goods only WT/REG108 
Hungary CEFTA FTA-goods only WT/REG11 
 EFTA FTA-goods only WT/REG13 
 Serbia & Montenegro FTA-goods only Not notified 
 Israel FTA-goods only WT/REG54 
 Turkey FTA-goods only WT/REG58 
Latvia Bulgaria FTA-goods only WT/REG151 
 EFTA FTA-goods only WT/REG29 
 Turkey FTA-goods only WT/REG116 
 Ukraine FTA-goods only Not notified 
Lithuania Bulgaria FTA-goods only WT/REG152 
 Croatia FTA-goods only Not notified 
 EFTA FTA-goods only WT/REG30 
 Ukraine FTA-goods only Not notified 
 Turkey FTA-goods only WT/REG61 
Poland CEFTA FTA-goods only WT/REG11 
 EFTA FTA-goods only WT/REG13 
 Faroe Islands FTA-goods only WT/REG78 
 Israel FTA-goods only WT/REG65 
 Turkey FTA-goods only WT/REG107 
Slovak Republic CEFTA FTA-goods only WT/REG11 
 EFTA FTA-goods only WT/REG88 
 Israel FTA-goods only WT/REG57 
 Turkey FTA-goods only WT/REG68 
Slovenia CEFTA FTA-goods only WT/REG11 
 Bosnia-Herzegovina FTA-goods only WT/REG131 
 EFTA  FTA-goods only WT/REG20 
 Israel FTA-goods only WT/REG66 
 Turkey  FTA-goods only WT/REG135 
Note: CEFTA:   Central Eu ropean Free Trade Agreement 
 EFTA:  European Free Trade Agreement.  
Source:  WTO Secretariat. WT/REG170/8/Rev.1 
Page 38  
 
  Table AII.2 
Terminated free trade agreements amon g NMS10 as a result of EC accession 
Name of agreement Type of agreement C overage Entry into force Date inactive 
CEFTA FTA Article XXIV 01-Mar-93 01-May-04 
Czech Republic – Estonia FTA Article XXIV 12- Feb-98 01-May-04 
Czech Republic - Latvia  FTA Article XXIV 01- Sep-97 01-May-04 
Czech Republic - Lithuania  FT A Article XXIV 01- Jul-97 01-May-04 
Czech Republic - Slovak Republic CU  Article XXIV 01- Jan-93 01-May-04 
Czech Republic - Slovenia FTA Article XXIV 01- Jan-94 25-Nov-95 
Hungary - Estonia FTA Article XXIV 01-Mar-01 01-May-04 
Hungary - Latvia FTA Article XXIV 01-Jan-00 01-May-04 
Hungary - Lithuania FTA Article XXIV 01-Mar-00 01-May-04 
Hungary - Slovenia  FTA Article XXIV 01-Jan-95 25-Nov-95 
Poland - Latvia FTA Article XXIV 01-Jun-99 01-May-04 
Poland - Lithuania  FTA Article XXIV 30-Dec-97 01-May-04 
Slovak Republic - Estonia FTA Article XXIV 13-Mar-98 01-May-04 
Slovak Republic - Latvia  FTA Article XXIV 01-Jul-97 01-May-04 
Slovak Republic - Lithuania  FTA Article XXIV 14-Nov-97 01-May-04 
Slovak Republic - Slovenia  FTA Article XXIV 01-Jan-94 25-Nov-95 
Slovenia - Estonia  FTA Article XXIV 01-Jan-97 01-May-04 
Slovenia - Latvia  FTA Article XXIV 01-Aug-96 01-May-04 
Slovenia - Lithuania  FTA Article XXIV 01-Mar-97 01-May-04 
Source:  WTO Secretariat.  WT/REG170/8/Rev.1 
 Page 39 
 
 
 ANNEX III 
 
 
Table AIII.1  
Modifications of GATS Schedules as a result of EC enlargement 
Sectors Modes 
concerned Change in 
Commitment EU Member State concerned Page 
number* 
Horizontal measures:     
Public utilities (except telecommunications 
and computer and related services) 3 MA NMS10, Austria, Finland, Sweden 8 
Legal entities (telecommunications)  3 MA, NT Finland 8, 12 
Legal entities 3 NT Czech Re public, Estonia, Cyprus, 
Latvia, Lithuania, Malta, Slovenia, Slovak Republic  8, 10 
Subsidies 3 NT Austria, Czech Republic, Estonia, 
Cyprus, Latvia, Lithuania, Malta, Sweden, Slovenia, Slovak Republic 15,16 
 4 NT Czech Republic, Estonia, Cyprus, 
Latvia, Hungary, Malta, Slovak Republic  16 
Investments 4 NT Austria 17 
Investments (telecom) 3 MA Finland 20 
Categories of natural persons covered under 
Mode 4 4 MA/NT Cyprus and Malta 31 
Horizontal measures 4 (ICT)  Cyprus and Malta 31 
Sectoral measures:     
Accounting services (CPC 86212) 4 (ICT, BV) MA/NT Cyprus 49-50 
Auditing services 86211 and 86212 other 
than accounting services) 4 (ICT, BV) MA/NT Cyprus 55-56 
Bookkeeping services (CPC 86220) 4 (ICT, BV) MA/NT Cyprus 58-59 
Taxation advisory services (CPC 863) 4 (ICT, BV) MA/NT Cyprus 61-62 
Engineering services (CPC 8672) 1 NT Austria, Slovenia 66 
 2 MA/NT Cyprus and Malta 66-67 
 3 MA/NT Cyprus, Czech Rep., Malta, Portugal, 
Slovak. Rep. 67 
Integrated engineering services (CPC 8672) 1 NT Austria, Slovenia 70 
 3 MA/NT Slovakia 70 
 4 (CSS) MA United Kingdom 72 
Urban planning   1 NT Austria 73 
 2 MA/NT Hungary 73-4 
 3 MA/NT Cyprus, Czech Rep., Malta, Poland, 
Slovenia, Slovakia 74-75 
Computer and related services (CPC841) All MA/NT All 90 
  4 (ICT, BV) MA/NT Cyprus 91 
  4 (CSS) NT Cyprus 91 
Software Implementation (CPC 842) 4 (ICT, BV) MA/NT Cyprus 92 
 4 (CSS) NT Cyprus 93 
Data Processing Services (CPC 843) 4 (ICT, BV) MA/NT Cyprus 94 
 4  (CSS) NT Cyprus 95 
Data Base Services (CPC 844) 4 (ICT, BV) MA/NT Cyprus 95 
 4 (CSS) NT Cyprus 96 
Maintenance and Repair (CPC 845) 1,2,3 MA/NT Hungary 96 
 4 (CSS) MA/NT Sweden 97 
Other Computer Services (CPC 849) 1,2,3 MA/NT Hungary 98 
 4 (CSS) MA/NT Sweden 99 
4 (ICT, BV) MA/NT Cyprus 100-101 R & D on Social Sciences and  Humanities 
(CPC 852) 4 (CSS) NT Cyprus 101 
Rental/Leasing of aircra ft without Operators 
(CPC 83104)  2 MA Austria, Estonia, Finland, Hungary, 
Lithuania, Sweden, Slovenia 108 
 3 MA Austria, Estonia, Hungary 108-09 
Other business services (CPC 871)  1 MA/NT Cyprus, Malta, Poland 116 
Services incidental to manufacturing A ll MA/NT Austria, Latvia, Lithuania 126 
Telecommunication services (all) 1, 2, 3, 4 
(ICT, BV, 
CSS) MA/NT and 
Additional 
Commit-ments All 150-1 
Privately funded education services   
 All MA/NT Austria, Estonia, Latvia, Lithuania, 
Hungary, Sweden 161 
Banking and Other Financial Services 
(excluding insurance) 3 MA Czech Republic, Hungary, Slovakia 196 
Table AIII.1 (Cont'd)  WT/REG170/8/Rev.1 
Page 40  
 
  Sectors Modes 
concerned Change in 
Commitment EU Member State concerned Page 
number* 
Insurance services  4 (ICT, BV) MA/NT Cyprus 212 
  4(CSS) NT Cyprus 213 
Banking services 1 MA Estonia, Lithuania 215 
 3 MA Estonia  218 
 4 (ICT, BV) MA/NT Cyprus 223 
 4 (CSS) MA/NT Cyprus 224 
3 MA Italy 234 Hotels, Restaurants  and Catering (CPC 
641-3) 4 (ICT, BV, 
CSS) NT Malta 235 
3 MA Czech Republic 235 
4 (ICT, BV) MA/NT Malta 236 Travel Agencies and Tour Operators Services  
(CPC 7471) 
4 (CSS) NT Malta 237 
Maritime transport 4 (ICT, BV) MA/NT Malta 248 
 4 (CSS) NT Malta 249 
Rental of aircraft with crew (CPC 734) 1,2,3 MA/NT Poland 258 
Sales and marketing services, distribution through computer reservation systems of services provided by CRS parent carriers 1 NT Estonia 260 
CRS 1 NT Hungary 261 
Space transport 1-4 MA/NT Austria 263 
Cargo handling services  3 MA Es tonia, Latvia and Lithuania 275 
Hairdressing services (CPC 97021) 2,3 MA/NT C zech Rep., Finland, Hungary, Slovak 
Rep. 285 
Insurance services (addit. commitments) All All NMS10 289 
Other financial services 3 All NMS10 289 
 
Note: BV: Business visitors; 
 CPC: Central Product Classification number; 
 CSS: Contractual service suppliers;  ICT: Intra-corporate transferees.  
*  Page in document S/C/W/273, 9 October 2006.   Changes can be of three types:  dele tions (struck out in document S/C/W/273), a dditions 
(bolded in document S/C/W/273), or new comm itments resulting from the Article XXI pro cedure (highlighted in grey in document 
S/C/W/273). 
Source  WTO Secretariat. 
__________