WORLD TRADE S/C/N/26
9October 1996
ORGANIZATION(96-4105)
Original: English Council forTrade inServices
JOINT COMMUNICATION FROM THE EUROPEAN COMMUNITIES
AND THEIR MEMBER STATES AND THE CZECH REPUBLIC
Notification pursuant toArticle V.7(a) ofthe
General Agreement onTrade inServices
Thefollowing joint communication hasbeen received from thedelegations oftheEuropean
Communities andtheir Member States andtheCzech Republic. This joint communication constitutes
thenotification oftheEurope Agreement establishing anassociation between theEuropean Communities
andtheir Member States andtheCzech Republic.
_______________
Pursuant toArticle Vparagraph 7(a)oftheGATS, theEuropean Communities andtheir Member
States, ontheonepart, andtheCzech Republic, ontheother part, hereby notify the"economic integration
agreement" asinstituted bytheEurope Agreement concluded between themselves. The formal
notification, made inaccordance with the"Guidelines fornotifications under theGeneral Agreement
onTrade inServices ",asadopted bytheCouncil forTrade inServices, isattached tothecommunication.
Tofacilitate theexamination bytheMembers, therelevant provisions ontrade inservices in
thisagreement have been identified inthenotification. ThefulltextoftheEurope Agreement where
these provisions canbefound, intheir original version, areavailable attheWTO Secretariat. The
Europe Agreement ispublished intheOfficial Journal oftheEuropean Communities (L360,Volume 37,
31December 1994) andintheCollection oftheLaw 7/1995. (Official Journal oftheCzech Republic.)S/C/N/26
Page2
1. Members notifying :
TheEuropean Communities andtheir Member States (15)
Czech Republic
2. Notification under :
Article Vparagraph 7(a).
3. Date ofentry into force :
01.02.95
Duration :
Unlimited period oftime.
4. Agencies responsible forimplementation andenforcement ofmeasures :
Association Council, Parties 'legislative, regulatory andjudicial authorities.
5. Description ofthemeasures :
(a) Provisions intheEurope Agreement which arerelevant tothescope oftheGATS:
- Article 1-Objective;
- Title II-"General principles": Article 7;
- Title IV-Chapter 1:"Movement ofworkers"; Chapter 2"Establishment";
Chapter 3"Supply ofservices between theCommunity andtheCzech Republic"
andChapter 4"General provisions";
- Title V-Chapter 1:"Current payments andmovement ofcapital"; Chapter 2
"Competition and other economic provisions" and Chapter 3
"Approximation oflaws";
- Title VI-"Economic cooperation", inparticular Articles 72and74on
Investment promotion andprotection; Article 82onTransport; Article 83on
Telecommunications; Article 84onBanking insurance, other financial services
andaudit cooperation; Article 89onTourism; Article 90onSmall and
Medium-sized Enterprises;
- Title IX-"Institutional, general andfinal provisions".
(b) These provisions oftheEurope Agreement constitute anagreement liberalising trade
inservices between theEuropean Communities andtheir Member States, ontheone
part, andtheCzech Republic, ontheother part, inthesense ofArticle V,paragraph 1,
given that:
- itprovides foruniversal sectoral coverage ofallservice activities, subject to
agradual coverage ofsome services 'activities (seeArticle 45paragraph 1(i),
paragraph1(iii)),thetemporarilyexemptionunderArticle52(i.e.establishmentS/C/N/26
Page3
inairtransport services, inland-waterways transport services andmaritime
transport services) andtheexceptions under Articles 54and114. These
exclusions arefully consistent withtheexceptions provided forunder theGATS
andmore inparticular with theAnnex onAirTransport Services totheGATS,
Articles I.3(b),XIV andXIVbis;
- itprovides fortheliberalisation oftrade through allmodes ofsupply: "cross
border" trade, "consumption abroad", "commercial presence" (with orwithout
movement ofnatural persons) aswell as"presence ofnatural persons" (seein
particular Articles 38,42,43,45,49,53,56,57and60);
- itprovides fortheabsence orelimination ofsubstantially alldiscrimination
through elimination ofexisting discriminatory measures andprohibition ofnew
ormore discriminatory measures (seeinparticular Articles 38,45,46,56,57
and64);
- thetime-tablefortheprogressiveeliminationofexistingdiscriminatorymeasures
isreasonable: atransition period ofamaximum of10years (seeArticles 7and
45);
- thedegree ofliberalisation oftrade inservices between theCommunity and
itsMember States, ontheonepart, andtheCzech Republic, ontheother part,
goes beyond therequirements anddisciplines oftheGATS inmany respects.
Toachieve full national treatment, additional disciplines and means of
liberalisation areforeseen such as:mutual recognition ofqualifications;
approximation oflaws; behaviour ofmonopolies and exclusive service
providers;restrictivebusinesspractices;payments,transfersandfreemovement
ofcapital.
(c) Consideration should alsobegiven, pursuant toArticle Vparagraph 2ofGATS, to
therelationship ofthisagreement tothewider process ofeconomic integration between
theEuropean Communities andtheir Member States, ontheonepart, andtheCzech
Republic, ontheother part, provided forunder theEurope agreement. Economic
integration isnotonly taking place inthefield ofservices, butalsoinrespect oftrade
ingoods andintheeconomic relations ingeneral. Inaddition, thisAgreement will
helpachieving theobjective oftheCzech Republic becoming aMember oftheEuropean
Community.
6. Members specifically affected, ifany:
None.TheEuropeanCommunitiesandtheirMemberStates,ontheonepart,theCzechRepublic,
ontheother part, have negotiated their Schedule ofSpecific Commitments andlistofMFN
exemptions during theUruguay Round. Theentry intoforce oftheEurope Agreement did
notimply anymodification oramendment inthese lists. TheEurope Agreement aims at
facilitating trade between theParties. Noprovisions oftheEurope Agreement aimatraising
thelevel ofrestrictions oftrade inservices inrespect ofanyother WTO Member.
7. The fulltextoftheagreement isavailable from :
- theWTO Secretariat
- theEuropean Commission
- theCzech Republic.