No. _______________ WORLD TRADE  
ORGANIZATION  S/SECRET/8/Add.2 
15 August 2006 
 (06-3907) 
Council for Trade in Services Original:   English 
  
 
NOTIFICATION FROM THE EUROPEAN COMMUNITIES 
AND ITS MEMBER STATES PURSUANT TO ARTICLE V OF THE GATS 
 
Accession of the Czech Republic, the Republic of Estonia, the Republic of Cyprus, 
 
the Republic of Latvia, the Republic of Lithuania,  the Republic of Hungary, the Republic of Malta,  
the Republic of Austria, the Republic of Poland,  the Republic of Slovenia, the Slovak Republic,  
the Republic of Finland, the Kingdom of  Sweden to the European Communities  
 
Addendum  
 
 
 The following communication, dated 9 August 2006, from the delegation of the European Communities and its Member States is bei ng circulated to the Members of the Council for 
Trade in Services.
* 
_______________ 
 
I. JOINT LETTER  BETWEEN THE EUROPEAN COMMUNITIES AND ITS 
MEMBER STATES AND HONG KONG, CHINA  
Joint letter from the European Communities and its Member States on the one part, and Hong 
Kong, China, on the other part, pursuant to  paragraph 5 of the Procedures for the 
implementation of Article XXI of the General Agreement on Trade in Services (GATS) (S/L/80 
of 29 October 1999) relating to the modifications proposed in the GATS Schedules of the 
European Communities and its Member States  (hereafter the EC) to take account of the 
accession of the Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, the Republic of Hungary, the Republic of Malta, the Republic of Austria, the Republic of Poland, the Republic of Slovenia, the Slovak Republic, the Republic of Finland, the Kingdom of Sweden to the European Communities 
 1. On 28 May 2004 and on 4 April 2005, the EC submitted two respective Communications 
pursuant to Article V of the GATS (circulated as document S/SECRET/8, date d 11 June 2004, and as 
document S/SECRET/9, dated 12 April 2005), whereby it notified its intention to modify or withdraw 
the specific commitments included in the list attached  to the communications, pursuant to Article V:5 
of the GATS and in accordance with the te rms of Article XXI:1(b) of the GATS.  
2. Following the submission of each Communi cation, Hong Kong, China submitted two 
respective claims of interest pursuant to Article XXI:2(a) of the GATS (S/L/170  with regard to 
S/SECRET/8 and S/L/219 with regard to S/SECRET/ 9). The EC and Hong Kong, China entered into 
negotiations pursuant to Article XXI:2(a) of the GATS with regard to S/SECRET/8 and S/SECRET/9. 
                                                     
 
* As stipulated in paragraph 5 of the Procedures for the Implementation of Article XXI of the GATS 
(S/L/80), the Members concerned signed the original copy of the Joint Letter and initialed the original copy of 
the Report. S/SECRET/8/Add.2 
Page 2  
 
  3. With regard to the procedure initiated by  the notification contained in document 
S/SECRET/8, the initial period for the negotiations , which expired on 26 Oc tober 2004, was extended 
(by mutual agreement) five ti mes (until 26 April 2005, until 27 February 2006, until 1 June 2006, 
until 1 July and until 17 July 2006).  During such  negotiations, the EC a nd Hong Kong, China have 
agreed on compensatory adjustments related to the withdrawals and modifications contained in 
document S/SECRET/8.  
4. With regard to the procedure initiated by  the notification contained in document 
S/SECRET/9, no agreement between the EC and Ho ng Kong, China was reached by the end of the 
period provided for negotiations and no affected Memb er referred the matter to arbitration within the 
applicable deadline pursuant to paragraph 7 of S/L/ 80. Pursuant to Article XXI:3(b) of the GATS and 
subject to completion of the procedures set out in pa ragraphs 20-22 of S/L/80, the EC shall be free to 
implement the modifications and withdr awals proposed in document S/SECRET/9. 
5. The Report on the result of these negotiations, which is attached to this letter, includes (1) the 
proposed modifications in the notifications refe rred to above, (2) the agreed compensatory 
adjustments with regard to the modifications or w ithdrawals notified in S/SECRET/8, and (3) the draft 
consolidated schedule of specific commitments that results from merging existing schedules of 
commitments of the EC and its Member States a nd from inserting therein both the modifications or 
withdrawals of commitments notified by the EC  under documents S/SECRET/8 and S/SECRET/9 and 
the compensatory adjustments agreed betw een the EC and Hong Kong, China.    
6. This letter and Annex I and II of the report att ached to it constitute the Agreement between 
the EC and Hong Kong, China with regard to S/ SECRET/8 for purposes of Article XXI:2(a) of the 
GATS.
†  The Agreement shall not be interpreted to m odify the Lists of Article II Exemptions of the 
EC and its Member States. The Agreement shall not be interpreted to affect the Parties' rights and 
obligations under Article VIII of the GATS.  
7. Pursuant to the procedures referred to in paragr aphs 20 to 22 of S/L/80, the EC will transmit, 
to the Secretariat for circulation, the draft cons olidated schedule for certification by 14 September 
2006, provided that an agreement has been signed w ith all affected Members, or the period foreseen 
in paragraph 7 of S/L/80 has expired, and no ar bitration has been requested. The results of the 
negotiations are to enter into force, after completio n of the certification procedures, on a date to be 
specified by the EC following completion of the EC 's internal approval procedures, which the EC 
endeavours to accelerate as much as possible.  The modifications and withdrawals proposed in documents S/SECRET/8 and S/SECRET/9 shall not enter into force until all of the compensatory 
adjustments indicated in Annex II have entered into force. 
II. REPORT 
Report on the result of the negotiations conduc ted in accordance of Article XXI:2(a) of the 
General Agreement on Trade in Services (GATS) rel ating to the modifications proposed in the 
GATS Schedules of the European Communities and its Member States (hereafter the EC) to 
take account of the accession of the Czech Repu blic, the Republic of Estonia, the Republic of 
Cyprus, the Republic of Latvia, the Republic of  Lithuania, the Republic of Hungary, the 
Republic of Malta, the Republic of Austria, th e Republic of Poland, the Republic of Slovenia, 
the Slovak Republic, the Republic of Finland, the Kingdom of Sweden to the European 
Communities   
                                                     
 
† This Agreement shall not be interpreted to prejudge the outcome of separate discussions within the 
WTO concerning the classification of telecommunication services (basic telecommunications and value-added 
services).    S/SECRET/8/Add.2 
 Page 3 
 
 
  1. Pursuant to paragraph 5 of the Procedures for the implementation of Article XXI of the GATS 
(S/L/80 of 29 October 1999), the EC submits the following report: 
2. On 28 May 2004 and on 4 April 2005, the EC submitted two respective Communications 
pursuant to Article V of the GATS (circulated as document S/SECRET/8, date d 11 June 2004, and as 
document S/SECRET/9, dated 12 April 2005), whereby it notified its intention to modify or withdraw 
the specific commitments included in the list attach ed to the communications (hereafter "the proposed 
modifications"), pursuant to Article V:5 of the GAT S and in accordance with the terms of Article 
XXI:1(b) of the GATS. The proposed modifications are contained in Annex I. 
3. Following the submission of the notification contained in document S/SECRET/8, and 
pursuant to Article XXI:2(a) of the GATS, eight een WTO Members (Argentina, Australia, Brazil, 
Canada, China, Chinese Taipei, Colombia, Cuba, Ec uador, Hong Kong China, India, Japan, Korea, 
New Zealand, the Philippines, Switzerland, Urugua y and the United States) submitted a respective 
claim of interest.  
4. Following the submission of the notification contained in document S/SECRET/9, and 
pursuant to Article XXI:2(a) of the GATS, fourt een WTO Members (Argentina, Australia, Brazil, 
Canada, China, Colombia, Ecuador, Hong Kong China, India, Japan, Korea, New Zealand, Uruguay 
and the United States) submitted a respective claim of interest. 
5. Hong Kong, China submitted two respective claims of  interest pursuant to Article XXI:2(a) of 
the GATS (S/L/170  with regard to S/SECRET/8 and S/L/219 with regard to S/SECRET/9). The EC 
and Hong Kong, China entered into negotiations pursuant to Article XXI:2(a) of the GATS with 
regard to S/SECRET/8 and S/SECRET/9. 
6. With regard to the procedure initiated by  the notification contained in document 
S/SECRET/8, the initial period for the negotiations , which expired on 26 Oc tober 2004, was extended 
(by mutual agreement) five ti mes (until 26 April 2005, until 27 February 2006, until 1 June 2006, 
until 1 July and until 17 July 2006).  
7. During such negotiations, the EC and Hong Kong, China have agreed on compensatory 
adjustments related to the modifications and wit hdrawals contained in document S/SECRET/8. Annex 
I and II of this report, together with the joint le tter to which it is attached, constitute the Agreement 
between the EC and Hong Kong, China with rega rd to S/SECRET/8 for purposes of Article XXI:2(a) 
of the GATS.‡ This Agreement shall not be interpreted to modify the lists of Article II Exemptions of 
the EC and its Member States. This Agreement shall not  be interpreted to affect the Parties' rights and 
obligations under Article VIII of the GATS. 
8. With regard to the procedure initiated by  the notification contained in document 
S/SECRET/9, no agreement between the EC and Ho ng Kong, China was reached by the end of the 
period provided for negotiations and no affected Memb er referred the matter to arbitration within the 
applicable deadline pursuant to paragraph 7 of S/L/ 80. Pursuant to Article XXI:3(b) of the GATS and 
subject to completion of the procedures set out in pa ragraphs 20-22 of S/L/80, the EC shall be free to 
implement the modifications and withdr awals proposed in document S/SECRET/9. 
9. In view of the foregoing, the proposed modifications and the agreed compensatory 
adjustments are incorporated into the EC's draf t GATS consolidated schedule, which results from 
merging existing schedules of commitments of the EC and its Member States and from inserting 
                                                      
‡ This Agreement shall not be interpreted to prejudge the outcome of separate discussions within the 
WTO concerning the classification of telecommunication services (basic telecommunications and value-added 
services).   S/SECRET/8/Add.2 
Page 4  
 
  therein both the modifications or withdrawals of  commitments notified by the EC under documents 
S/SECRET/8 and S/SECRET/9 and the compensatory adjustments agreed between the EC and the 
Hong Kong, China.   
10. Pursuant to the procedures referred to in paragr aphs 20 to 22 of S/L/80, the EC will transmit, 
to the Secretariat for circulation, the draft cons olidated schedule for certification by 14 September 
2006, provided that an agreement has been signed w ith all affected Members, or the period foreseen 
in paragraph 7 of S/L/80 has expired, and no arbitration has been requested.  The results of the negotiations are to enter into force, after completio n of the certification procedures, on a date to be 
specified by the EC following completion of the EC 's internal approval procedures, which the EC 
endeavours to accelerate as much as possible.  The modifications and withdrawals proposed in 
documents S/SECRET/8 and S/SECRET/9 shall not enter into force until all of the compensatory 
adjustments indicated in Annex II have entered into force.  
 
_______________ 
  S/SECRET/8/Add.2 
 Page 5 
 
 
  ANNEX I 
 
 
A. MODIFICATIONS NOTIFIED IN DOCUMENT S/SECRET/8 
1. Horizontal Commitments 
• Market access entry (page 9): “In all EC Member  States services considered as public utilities 
at a national or local level may be subject to pub lic monopolies or to exclusive rights granted to 
private operators”. This entry was not included in the schedule of specific commitments of the 
Czech Republic, Estonia, Cyprus, La tvia, Lithuania, Hungary, Malta,  Austria, Poland, Slovenia, 
Slovakia, Finland and Sweden. This limitation now applies to all Member States. 
 
• National treatment limitations on branches, ag encies and representative offices under mode 3 
(pages 9 and 10). This entry was not included in  the schedule of specific commitments of the 
Czech Republic, Estonia, Cypr us, Latvia, Lithuania, Malta,  Slovenia and Slovakia. This 
limitation now applies to all Member States. 
 
• National treatment limitations on subsidiaries under mode 3 (page 10). This entry was not 
included in the schedule of specific commitments  of the Czech Republic, Estonia, Cyprus, 
Latvia, Lithuania, Hungary, Malta, Poland, Slove nia and Slovakia. This limitation now applies to 
all Member States. 
 
• National treatment limitations on subsidies under mode 3 (page 13). The schedule of specific 
commitments of the Czech Republic, Estonia, Cy prus, Latvia, Lithuani a, Malta, Austria, 
Slovenia, Slovakia, Finland and Sweden included only part of the limitations on subsidies on 
mode 3 inscribed in the schedule of the EC a nd its Member States. These limitations are now 
extended to these Member States. 
 
• National treatment limitation on subsidies under mode 4 (page 13). The schedule of specific 
commitments of the Czech Republic, Estonia, Cy prus, Latvia, Hungary, Malta and Slovakia did 
not include the limitation on subsidies under mode  4 inscribed in the schedule of the EC and its 
Member States. This limitation is now extended to these Member States. 
 
• Cyprus' market access commitments on mode 4. These commitments are withdrawn. 
 
• Market access entry on mode 4 - Intra-compan y transfers (ICT) (page 26). The schedule of 
specific commitments of the Czech Republic, Latv ia, Lithuania, Hungary, Poland and Slovakia 
did not include the limitation that the receiving entity must be effec tively providing like 
services in the territory of the Community Memb er State concerned. This limitation is now 
extended to these Member States.  
 
• Market access entry on mode 4 - Business visitors (BV) – service sellers (page 30). The 
schedule of specific commitments of Poland did not include the limitation that those 
representatives will not be engaged in making direct  sales to the general public. This limitation 
is now extended to this Member State.  
 
• Market access entry on mode 4 - Business visitors (BV) – establishment of commercial 
presence (page 30). The schedule of specific commitments of Lithuania did not include the limitation that those representatives will not be engaged in making direct sales to the general 
public or supplying services. This limitation is now extended to this Member State.  
 S/SECRET/8/Add.2 
Page 6  
 
  • Lithuania’s market access commitments on mode 4 – Business visitors (BV) (page 32). These 
commitments are partially withdrawn. 
 
• Latvia’s market access commitment on mode 4 – contractual services suppliers (CSS) 
(page 33). The schedule of specific commitments of Latvia did not include the limitation that the temporary entry and stay within the Member  State concerned shall be for a period of not 
more than three months in any 12 months peri od. This limitation is now extended to this 
Member State.  
 
2. Sectoral commitments 
• Rental/Leasing services without operators - Relati ng to Aircraft (page 95). The market access 
limitation under mode 2 is extended to Estonia, Lithuania, Hungary, Austria, Slovenia, Finland and Sweden and the market access limitation under mode 3 is extended to Estonia, Hungary and 
Austria. 
 
• Services incidental to manufacturing (pages 109 and 110). The commitments included in the 
schedule of Latvia, Lithuania and Austria are withdrawn. 
 
• Education services (page 156): limitation to “only privately funded services”. This limitation 
was not included in the schedule of Estonia, Latvia, Lithuania, Hungary, Austria, Slovenia (only 
not included with regard to adult education services) and Slovakia. This limitation is now 
extended to these Member States. In the case of Slov enia, such an extension only refers to adult 
education services.  
 
• Banking and other financial ser vices (excluding insurance) (pages 193, 213 and 217). The 
market access limitations indicating that “t he establishment of a specialised management 
company is required to perform the activities of  management of unit trusts and investment 
companies” and that “only firms having their re gistered office in th e Community can act as 
depositories of the assets of investment funds”, both under mode 1 and 3, were not included in the schedule of Czech Republic as regards
 mode 3, Estonia (not included in mode 1 nor in mode 
3), Latvia as  regards  mode 3, Lithuania as regards  mode 1, Hungary as  regards  mode 3 and 
Slovakia as regards  mode 3 . These limitations are now extended to these Member States. 
 
• Space Transport. The commitment included in the schedule of Austria is withdrawn. 
 
• Air Transport - Rental of aircraft with crew (page 246). Two market access limitations (one 
under modes 1 and 2 and another one under mode 3) are introduced for Poland.  
 
• Air Transport - Sales and Marketing (p ages 247 and 248). The schedule of specific 
commitments of Estonia did not include the national treatment limitation on distribution 
through CRS of air transport services provided by CRS parent carrier.  
 
• Air Transport - Computer Reservations Sy stem (page 248). The schedule of specific 
commitments of Hungary did not include the na tional treatment limitation on the obligations of 
parent or participating carriers in respect of a CRS controlled by an air carrier of one or more 
third countries. 
 
• Services auxiliary to all modes of transport - Cargo handling services (page 259). A market 
access limitation under mode 3 has been introduced for Estonia, Latvia and Lithuania. 
 
  S/SECRET/8/Add.2 
 Page 7 
 
 
   
 B. M
ODIFICATIONS NOTIFIED IN DOCUMENT S/SECRET/9:   
1. Horizontal Commitments 
• Cyprus' and Malta's commitments on mode 4 unde r national treatment (pages 25, 29 and 32 of 
S/SECRET/8).  These commitments are withdrawn. 
 
2. Sectoral commitments 
• Computer and Related Services - a)Consultancy Se rvices related to the Installation of Computer 
Hardware (CPC 841) (page 82) - b) Software Implementation Services (CPC 842) (page 83) - 
c) Data Processing Services (CPC 843) (page 85) - d) Data Base Services (CPC 844) (page 86).  
Cyprus' commitments on mode 4 (ICT, BV and C SS) under national treatment are withdrawn.  
 
• Research and Development Services - b) R & D Services on Social Sciences and Humanities 
(CPC 852) (pages 89 and 90).  Cyprus' commitments on mode 4 (ICT, BV and CSS) under national treatment are withdrawn.  
 
• Insurance and Insurance-Related Services - (i) Di rect insurance (including co-insurance): (a) 
life and (b) non-life (pages 211 and 212).  Cyprus' commitments on mode 4 (ICT, BV and CSS) 
under national treatment are withdrawn. 
 
• Banking and Other Financial Services (excluding insurance) – (x) (e) transferable securities 
(page 223).  Cyprus' commitments on mode 4 (IC T, BV and CSS) under national treatment are 
withdrawn.  
 
• Hotels, Restaurants and Catering (CPC 641,642 a nd 643) (page 232).  Malta's commitments on 
mode 4 (ICT, BV and CSS) under na tional treatment are withdrawn. 
 
• Travel Agencies and Tour Operators Services (CPC 7471) (pages 233 and 234).  Malta's 
commitments on mode 4 (ICT, BV and CSS)  under national treatment are withdrawn. 
 
• Maritime transport services - excluding cabotage transport - (a) Passenger transportation (CPC 
7211); (b)Freight transportation (CPC 7212) (p age 242).  Malta's commitments on mode 4 
(ICT, BV and CSS) under national treatment are withdrawn. 
 S/SECRET/8/Add.2 
Page 8  
 
  ANNEX II 
 
Compensation by the EC
  
 
• Mode 3 horizontal limitation on public utilities 
- Footnote on coverage indicating th at this limitation does not apply to 
telecommunication and computer and related services. 
 
• Mode 3 horizontal limitations on investment  
- Removal of the national treatment limitation for AT in Mode 3 on branches of 
 foreign joint stock companies (Ak tiengesellschaften) and limited liability 
 companies (Gesellschaften mit beschränkter Haftung). 
 
• Mode 4  for intra-corporate transferees and business visitors  
- Market Access and National Treatment commitments by CY and MT in the 
 horizontal section and in the sector-speci fic section in the sectors where CY and MT 
 have undertaken Mode 3 commitments. 
• Professional services -  Engineering services  (CPC 8672) 
- Market Access and National Treatment Commitments by CY and MT in Mode 2 
- Market Access commitments by CY, CZ, MT & SK in Mode 3 
- National Treatment commitments by CY and MT in Mode 3 -  Removal of the market access limitation for PT in mode 3  
• Professional services - Integrated Engineering Services  (CPC 8673): 
- Removal of the ENT applied on Mode 4/CSS by the UK - Market Access and National Treatment  commitments by SK in Mode 3   
 
• Professional services - Urban planning and landscape architectural services  (CPC 8674): 
- Market Access and National Treatment commitments by CY, CZ, MT, PL, SI & SK 
in Mode 3.  
- Market Access and National Treatment commitments by HU on Landscape 
Architectural Services in Mode 2.  
 
• Computer and related services  -   
- Addition of a clarificatory footnote. - Market Access and National Treatment co mmitments by HU in  Modes 1, 2 & 3 for 
 CPC 845 and 849 
- Improved conditions for CSS/Mode 4 by SE for computer and related services in  the 
 horizontal section and new commitments by SE for CSS/Mode 4 for CPC 845 and 
 849. 
• Advertising services  (CPC 871): 
- Market Access and National Treat ment commitments by CY, MT & 
  PL in Mode 1 
• Telecommunication services 
- New and improved commitments by the en tire EC as offered in its revised DDA 
offer. 
-  A clarification from FI that its three Mode 3 horizontal limitations on legal entities 
under market access, on subsidiaries, bran ches, agencies and re presentative offices 
under  national treatment, and  on investment under market access do not apply to 
telecommunications services.   S/SECRET/8/Add.2 
 Page 9 
 
 
  - A clarificatory footnote indicating that Sub-sectors 2.C.h) to 2.C.m) of the Services 
Sectoral Classification List contained in MTN,GNS/W/120 (value-added services) and Sub-sectors 2.C.a) to 2.C.g) of that Li st are included here. Sub-sector 2.C.o) of 
that List is also included here to the exte nt that it falls under this definition. For the 
purpose of this schedule, subsector 2C.n of that list (on-line information and/or data 
processing) is reflected in this schedule of Commitments under 1.B (Computer and 
related services).  
 
• Financial services (insurance services): 
- Removal of part of the market access limitations for SK in Mode 3    
• Financial services (banking) 
- FI: change in Mode 3 permanent reside ncy requirements (“At least one of the 
 founders, the members of the board of directors, the supervisory board and  the 
 managing director shall have their permanent residence in the European 
 Community…" instead of  “At least one half of the founders, the members of  the  board of directors, the supervisory board and the delegates, the managing 
 director, the holder of the procuration and the person entitled to sign in the 
 name of the credit institution shall have their place of residence in the  European 
 Community…”). 
 
• Hotels, Restaurants and Catering 
- New (less restrictive) language for IT 's ENT in mode 3 on bars, cafes and 
 restaurants, including a commitment on its non-discriminatory nature. 
 
• Travel Agencies and Tour Operators Services 
-  Removal of the ENT applied on Mode 3 by the CZ  
 
• Hairdressing services 
- Market Access and National Treatment commitments by CZ, FI, HU and SK in 
 Modes 2 & 3  
The following abbreviations are used  to indicate the Member States: 
 
 AT Austria    BE Belgium  CY Cyprus  CZ Czech Republic   DE Germany  DK Denmark  EE Estonia    EL Greece   ES Spain  FI Finland   FR France  HU Hungary   IE Ireland  IT Italy 
 LT Lithuania   LU  Luxembourg  LV Latvia  MT Malta  NL The Netherlands   PL Poland   PT Portugal  SE Sweden  SI Slovenia  SK Slovak Republic  UK United Kingdom 
  
 
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