RESTRICTED  WORLD TRADE  
ORGANIZATION  S/C/W/256 
11 February 2005 
 (05-0586) 
Council for Trade in Services Original:   English 
  
 
COMMUNICATION FROM THE REPUBLIC OF KOREA 
 
Review of Article II (MFN) Exemptions
 
Questionnaire on the List of MFN Exemptions  
 
 
 The following communication, dated 10 Februa ry 2005, from the delegation of the Republic 
of Korea, is being circulated to the Memb ers of the Council for Trade in Services.  
 
_______________ 
 
 1. As in the first review on MFN exemption measures during 2000, Korea attaches greatest 
importance to this exercise, since MFN exemptions should be kept to minimum in order to maintain 
and strengthen the application of the GATS principles.   This second review, if constructively carried 
out, will contribute to the clarification and understa nding of the existing MFN exemption measures by 
the members, and will facilitate the services nego tiation under the DDA for further liberalization. 
2. After the first review in 2000, Hong Kong, China, Japan and Korea have submitted a proposal 
(S/C/173) for further discussion on the MFN exempt ions.  Based on that proposal, Korea would like 
to raise questions on those exemption measures whic h were not adequately addressed or need further 
clarification, in our view, specifically those measure s which may give rise to less favourable treatment 
than stipulated in the specific commitments Me mbers have made.  Korea would appreciate if 
Members would provide their responses in advance, if possible, or orally during the review.   
3. These questions are not, however, exhaustive a nd thus Korea may raise further questions, 
orally and in writing, prior to and during the review session. 
Albania   
Page 5, Road Transport 
4. Regarding "road transport; passenger and freight" services, please confirm if the exemption 
measure only pertains to mode 1 (cross border), for which the entry in the national schedule is 
"unbound". 
Armenia Page 10, Road Transport services 
5. Please confirm if the exemption measures coinci de with the exception clauses in the cross 
border mode of the national treatment column in the specific commitments. S/C/W/256 
Page 2  
 
 6. If they coincide, then please clarify whether fo reign suppliers may be accorded the same 
treatment under your specific commitments, since the exception clauses are for different treatment 
between nationals and foreigne rs, but not among foreigners. 
Austria Pages 15, CRS and sales and marketing of air transport services 
7. Please clarify the obligations of the vendors.  Are they obligations toward the users? 
8. Please confirm if the exemption measures coinci de with the unbound entries in the cross 
border and commercial presence modes of the national treatment column in the specific commitments. 
9. If they coincide, then please clarify whether fo reign suppliers may be accorded the same 
treatment under your specific commitments, since the unbound measures are for different treatment 
between nationals and foreigne rs, but not among foreigners. 
Bulgaria  
Page 2(Corr.1), Sales and Marketing Services for Air Transport, including CRS 10. Regarding "Sales and marketing, including com puter reservation systems" in air transport 
services, please clarify the relationship between the specific commitments, where there are no 
restrictions, and the exemption measure above wh ich requires basically reciprocity.  Are the MFN 
inconsistent measures not related to the market access or national treatment aspects? If so, what are they? 
China 
Page 38, Maritime Transport, Internati onal Transport, Freight and Passengers  
11. Regarding "international transport (freight a nd passengers)" services, please confirm if a 
foreigner can establish an entity without a bilateral agreement as inscribed in the schedule of specific 
commitment (subject to limitations therein), or a fo reigner needs a bilateral agreement as inscribed in 
the above exemption measure. 
Page38, Maritime Transport, Internatio nal Transport, Freight and Passengers 
12. Regarding "international transport (freight an d passengers)" services, please confirm if cargo 
sharing agreements are needed as inscribed in the above exemption measure, or such agreements are 
not needed since cargo sharing is not inscri bed in the schedule of specific commitments.   
Croatia 
Page 48, Road Transport, Passenger and Freight 
13. Regarding "road transport; passenger and freight" services, please confirm if the exemption 
measure only pertains to mode 1 (cross border), for which the entry in the national schedule is 
"unbound"  S/C/W/256 
 Page 3 
 
 
 Estonia 
Page 63, International Road Transport Services 
14. Regarding "road transport; passenger and freight" services, please confirm if the exemption 
measure only pertains to mode 1 (cross border), for which the entry in the national schedule is 
"unbound". 
EC 
Page 65, CRS and sales and marketing of air transport services 15. Please clarify the obligations of the vendors.  Are they obligations toward the users? 
16. Please confirm if the exemption measures coinci de with the unbound entries in the cross 
border and commercial presence modes of the national treatment column in the specific commitments. 
17. If they coincide, then please clarify whether fo reign suppliers may be accorded the same 
treatment under your specific commitments, since the unbound measures are for different treatment 
between nationals and foreigne rs, but not among foreigners. 
Finland 
Page 77, CRS and sales and marketing of air transport services 
18. Please clarify the obligations of the vendors.  Are they obligations toward the users? 
19. Please confirm if the exemption measures coinci de with the unbound entries in the cross 
border and commercial presence modes of the national treatment column in the specific commitments. 
20. If they coincide, then please clarify whether fo reign suppliers may be accorded the same 
treatment under your specific commitments, since the unbound measures are for different treatment 
between nationals and foreigne rs, but not among foreigners. 
Georgia Page 80, Transport services 
21. Regarding "maritime, air, and road transport services and services auxiliary to all modes of 
transport", please clarify the relationship between  the specific commitments, where there are no 
restrictions, and the above exemption measure which requires reciprocity.  Are the MFN inconsistent 
measures not related to the market access or national treatment aspects? If so, what are they? 
Hungary 
Page 85, Financial services 22. Regarding "financial services", please clarify the relationship between the specific 
commitments which are made to all members, re gardless of any reciprocal treatment, and the 
exemption measure which states that commi tments may be subject to reciprocity. S/C/W/256 
Page 4  
 
 Iceland 
Page 88, CRS and sales and marketing of air transport services  
23. Please clarify the obligations of the vendors.  Are they obligations toward the users? 
24. Please confirm if the exemption measures coinci de with the unbound entries in the cross 
border and commercial presence modes of the national treatment column in the specific commitments. 
25. If they coincide, then please clarify whether fo reign suppliers may be accorded the same 
treatment under your specific commitments, since the unbound measures are for different treatment 
between nationals and forei gners, but not among foreigners   
Jamaica 
Page 93, Maritime Transport  
26. Regarding freight transportation services, please clarify the relationship between the specific 
commitments where there are no restrictions (other  than licensing), and the exemption measure where 
UN Code of Conduct on Liner Conferences may restrict market access. 
The Hashemite Kingdom of Jordan  
Page 96, Travel agencies and tour operator services 
27. Regarding "travel agencies and tour operato r services", is licensing provided without 
discretion, as long as certain criteria are met? Ther e are no entries regarding licensing in the national 
schedule. 
Latvia  
Page 100, Road Transport; passenger and freight 
28. Regarding "road transport; passenger and freight" services, please confirm if the exemption 
measure only pertains to mode 1 (cross border), for which the entry in the national schedule is 
"unbound". 
Lithuania 
Page 107, Road Transport, Passenger and Freight  
29. Regarding "road transport; passenger and freight" services, please confirm if the exemption 
measure only pertains to mode 1 (cross border), for which the entry in the national schedule is 
"unbound". 
Moldova 
Page 118, Road Transport, Passenger and Freight 
30. Regarding road transport services, please clarify the relationship between the specific 
commitments, where there are no restrictions, a nd the exemption measure which requires bilateral 
agreements.  Are the MFN inconsistent measure s not related to the market access or national 
treatment aspects? If so, what are they?  S/C/W/256 
 Page 5 
 
 
 Page 119, Selling and marke ting of air transport services 
31. Regarding market access for selling and marketing of air transport services, please clarify the 
relationship between the specific commitments, where there are no restrictions, and the exemption 
measure which requires bilateral agreements.   
Morocco 
Page 120, International road transport 
32. Regarding "road transport; passenger and freight" services, please confirm if the exemption 
measure only pertains to mode 1 (cross border), for which the entry in the national schedule is 
"unbound" 
Norway Page 127, Road Transport, Passenger and Freight  
33. Regarding "road transport; passenger and freight" services, please confirm if the exemption 
measure only pertains to mode 1 (cross border), for which the entry in the national schedule is 
"unbound". 
Page 129, CRS and sales and marke ting of air transport services 
34. Please clarify the obligations of the vendors.  Are they obligations toward the users? 
35. Please confirm if the exemption measures coinci de with the unbound entries in the cross 
border and commercial presence modes of the national treatment column in the specific commitments. 
36. If they coincide, then please clarify whether fo reign suppliers may be accorded the same 
treatment under your specific commitments, since the unbound measures are for different treatment 
between nationals and forei gners, but not among foreigners   
Peru Page 134, Financial services 
37. Regarding "financial services" and foreign investment, please clarify the relationship between 
the specific commitments, where there are no me mber-specific restrictions, and the exemption 
measures which require member-specific reciprocal treatment.  Are the MFN inconsistent measures not related to the market access or national treatment aspects? If so, what are they? 
Romania Page 140, Sales and marketing services for air transport 
38. Regarding "Sales and marketing services for air transport", please clarify the relationship 
between the specific commitments (no restrictions for modes of cross border, consumption abroad, 
and movement of natural person), and the ex emption measure which requires reciprocity. S/C/W/256 
Page 6  
 
 Page 140, Road Transport 
39. Regarding "road transport; passenger and freight" services, please confirm if the exemption 
measure only pertains to mode 1 (cross border), for which the entry in the national schedule is 
"unbound". 
Senegal 
Page 142, Maritime transport 
40. Regarding "supporting services for maritime transport", please clarify the relationship 
between the specific commitments, where there are no restrictions, and the broad exemption measure 
on "existing and future" measures.  Are the MFN in consistent measures not related to the market 
access or national treatment aspects? If so, what are they? 
Slovenia 
Page 154, Computer Reservation System and marketing of Air Transport Services  
41. Please clarify the obligations of the vendors.  Are they obligations toward the users? 
42. Please confirm if the exemption measures coinci de with the unbound entries in the cross 
border and commercial presence modes of the national treatment column in the specific commitments. 
43. If they coincide, then please clarify whether fo reign suppliers may be accorded the same 
treatment under your specific commitments, since the unbound measures are for different treatment 
between nationals and forei gners, but not among foreigners   
South Africa Page 115, Road Transportation 
44. Regarding "road transport; passenger and freight" services, please confirm if the exemption 
measure only pertains to mode 1 (cross border), for which the entry in the national schedule is 
"unbound" 
Sweden Page 160, Road Transport (passenger and freight) 
45. Regarding "road transport; passenger and freight" services, please confirm if the exemption 
measure only pertains to mode 1 (cross border), for which the entry in the national schedule is 
"unbound". 
Page 161, CRS and sales and marketing of air transport services  
46. Please clarify the obligations of the vendors.  Are they obligations toward the users? 
47. Please confirm if the exemption measures coinci de with the unbound entries in the cross 
border and commercial presence modes of the national treatment column in the specific commitments. 
48. If they coincide, then please clarify whether fo reign suppliers may be accorded the same 
treatment under your specific commitments, since the unbound measures are for different treatment 
between nationals and foreigne rs, but not among foreigners.    S/C/W/256 
 Page 7 
 
 
 Thailand 
Page 171, International road transport services 
49. Regarding "Freight transportation only for frozen or refrigerated goods, bu lk liquids or gases 
and containerised freight", "Rental services of p assenger cars with operator", and "Rental services of 
buses and coaches with operator", please clarify the relationship between the specific commitments, 
where there are no member-specific restrictions, a nd the exemption measure which requires reciprocal 
arrangements.  Are the MFN inconsistent measures not related to the market access or national 
treatment aspects? If so, what are they? 
Page 171, Aircraft repair and maintenance services 
50. Regarding "Aircraft repair and maintenance services", please clarify the relationship between 
the specific commitments, where there are no membe r-specific restrictions (unbound for commercial 
presence, however), and the exemption measure which requires reciprocal arrangements.  Are the MFN inconsistent measures not related to the market access or national treatment aspects? If so, what 
are they? 
Turkey 
Page 181, Road Transport Services 
51. Regarding "Road transport services", please clarify the relationship between the specific 
commitments, where there are no member-specific restrictions, and the exemption measure which 
requires member-specific arrangements.  Are the MFN inconsistent measures not related to the market 
access or national treatment aspects? If so, what are they? 
Page181, Financial Services, Banking 
52. Regarding "banking" services, please clarif y the relationship between the specific 
commitments, where there are no member-specific restrictions, and the exemption measure which 
requires reciprocal treatment.  Are the MFN inconsistent measures not related to the market access or national treatment aspects? If so, what are they? 
__________