Amended proposal for a Council Decision concerning the conclusion on behalf of the European Community, as regards matters within its competence, of the results of the World Trade Organisation negotiations on financial services
Date: 1998-11-17
Institutions: European Commission
Subjects: World Trade Organisation, financial legislation, international trade, tariff negotiations, trade policy

COMMISSION OF THE EUROPEAN  COMMUNITIES 

Brussels, 17.11.1998 
COM(1998) 659  final 

98/0317 (ACC) 

Proposal for a 

COUNCIL DECISION 

concerning the conclusion on behalf of the European Community, as regards matters 
within its competence, of the results of the World Trade Organisation negotiations on 
financial  services 

(presented by the Commission) 

EXPLANATORY MEMORANDUM 

At the conclusion  of  a negotiating  period ending  at the end of  July  1995,  29 WTO 
members, the EC and its Member States counting as one, confirmed  that they  would 
maintain their best offers  so far and would sign the Second Protocol to the GATS and 
annex their new lists of commitments  and lists of MFN exemptions to it. The United 
States confirmed that they would apply the downgraded level of commitments and the 
broad  MFN  exemption  they  had  announced  on  29  June  1995.  All  other  WTO 
members would continue to apply their lists submitted in April 1994. 

By  the Decision  on Acceptance  of  the Second and Third Protocol  to the GATS, the 
WTO Members who had accepted the Second Protocol by the agreed date of  1 July 
1996 decided on 30 July  1996 to establish the  1 September  1996 as the date of entry 
into force of the Second Protocol and to extend the deadline for its acceptance by the 
members  which  had  not  ratified  in  time  until  30  November  1996.  For  these,  the 
revised  lists  of  schedules  of  commitments  and MFN exemption  lists  attached to the 
Second  Protocol,  were  applied  from  1  December  1996.  All  schedules  and  MFN 
exemption lists were due to expire on 30 December 1997. 

By  its  Decision  of  25  June  1996,  the  Council  approved  on  behalf  of  the  European 
Community, as regards matters within its competence, the results of the World Trade 
Organization  negotiations  on  financial  services  (and  on  the  movement  of  natural 
persons) that finished in July 1995. 

By  its Decision  on Financial  Services Negotiations  of  29 May  1997, the Council  for 
Trade in Services decided to advance the deadline established in the Second Decision 
on Financial  Services  adopted by the Council  for Trade in Services on 21  July  1995 
and to conclude  a new period during which all WTO members would be  allowed to 
modify  or  withdraw  all  or  part  of  their  Specific  Commitments,  due  to  start  on  1 
November  1997, already on 12 December 1997, and not on 30 December 1997. 

The  Decision  adopting  the  Fifth  Protocol  to  the  General  Agreement  on  trade  in 
Services,  was  adopted  by  the  Committee  on  Trade  in  Financial  Services  on  14 
November  1997. The Fifth Protocol to the GATS provides for the replacement of the 
existing financial  services sections of the Schedules of Specific Commitments and the 
Lists  of  MFN  exemptions  of  the  Members  concerned  by  the  corresponding  lists 
annexed to the Protocol. 

The  Committee  on  Trade  in  Financial  Services  approved  the  final  results  of  the 
successful  negotiations  on financial services  on  12 December  1997,  by  which  the 
WTO members agree to include financial services on a permanent and MFN basis in 
the GATS.  Seventy  countries  \  counting  the European Community  and its Member 

1 Australia, Bahrein, Bolivia,  Brazil,  Bulgaria,  Canada,  Chile,  Colombia,  CostaRica 
Cyprus,  Czech  Republic,  Dominican  Republic,  Ecuador,  Egypt,  El  Salvador, 
European  Communities  and  their  Member  States,  Ghana,  Honduras,  Hong  Kong, 
(China),  Hungary,  Iceland,  India,  Indonesia,  Israel,  Jamaica,  Japan,  Kenya,  Korea, 

1 

States  as  fifteen,  submitted  improved  lists  of  commitments  as  regards  both  market 
access  and national treatment conditions.  On the same date, the Council for Trade in 
Financial  Services  adopted  the  Decision  of  December  1997  on  Commitments  in 
Financial  Services,  which  would  allow  Members  to  amend  or  withdraw  their 
Schedules  of  Commitments  and  MFN  exemption  Lists  in  financial  services  if  for 
some reason the Fifth Protocol does not enter into force. 

If by  30 January  1999  all  members  concerned  have not  accepted the Fifth  Protocol, 
the members which would have done so in time may decide to let it nevertheless enter 
into force, extend the period for acceptance or not let it enter into force. In the latter 
case, negotiations would have to be resumed during a period of sixty days beginning 
on  1 March  1999  to  avoid that financial  services  commitments  do not simply  lapse 
and MFN exemptions are introduced. 

In its conclusions  of  12 December  1997, the Council  approved the final  Schedule of 
Commitments  of  the EC  and its  Member  States  and  authorised  the Commission  to 
submit it to the WTO on behalf of the European Communities and its Member States. 
It further authorised the Commission to agree on behalf of the European Communities 
and  its  Member  States  to  the  final  result  of  the  negotiations  as  contained  in  the 
schedules  and MFN exemption  lists  attached to the Fifth  Protocol  to the GATS, the 
Decision  adopting  the said Protocol  and the Decision  on Commitments  in Financial 
Services. 

Following  a technical  verification  process, the individual  lists of commitments  to be 
annexed to the Fifth Protocol were approved by the Council for Trade in Services of 
the WTO on 26 February 1998. 

The  Fifth  Protocol  is  open  for  acceptance,  by  signature  or otherwise,  by  the WTO 
members concerned, until 29 January  1999. The Fifth Protocol would then enter into 
force on 1  March 1999. 

Through  the  agreement  reached  on  12  December  1997,  financial  services  will  be 
included  on  a permanent  and MFN  basis  in  the  GATS.  All  major trading partners, 
including  the  United  States,  are  part  of  this  agreement:  generally  improved 
commitments  on  market  access  and  national  treatment  have  been  submitted  by 
seventy  countries,  counting  the  European  Community  and  its  Member  states  as 
fifteen.  In  addition,  32  countries  have  maintained  without  changes  their  existing 
schedules  of  commitments,  dating back either to the Uruguay Round or to the  1995 
interim  agreement.  This  is  an important  progress  not  only  in  substance,  but  also  as 
regards  the  total  number  of  countries  that  undertake  commitments  in  financial 
services (102 in comparison to 95 under the  1995 interim agreement). The success of 
the  negotiations  shows  that  an  overwhelming  majority  of  countries  agree  with  the 
principle  that  financial  markets  liberalisation  contributes  to  the  development  of 
efficient  and well-functioning  financial  sectors  and therefore  to the stability  of their 
economies. 

Kuwait,  Macau,  Malaysia,  Malta,  Mauritius,  Mexico,  New  Zealand,  Nicaragua, 
Nigeria,  Norway,  Pakistan, Peru, Philippines,  Poland,  Romania,  Senegal,  Singapore, 
Slovak  Republic,  Slovenia,  South  Africa,  Sri  Lanka, Switzerland,  Thailand, Tunisia, 
Turkey, United States, Uruguay, Venezuela. 

The permanent inclusion of financial  services in the WTO secures a peaceful  trading 
environment.  Conflicts  will  no longer be  sorted  out  through  unilateral  pressure, but 
will be addressed by the impartial WTO dispute settlement mechanism. EU  financial 
services  companies  will  be  able  to  take  advantage  of  the  increased  legal  certainty 
flowing  from  the  the  establishment  of  a  predictable  and  transparent  multilateral 
regime for internationally operating banks, insurance companies, securities firms and 
other financial services companies 

The size  of  the negotiated package is substantial. The new  agreement  will  guarantee 
substantially free market access and national treatment conditions for foreign financial 
institutions  for  an  overwhelming  portion  of  worldwide  financial  services  trade, 
amounting to more than 95  % in all main sub-sectors. The volume  of equity trading 
covered  by  liberalisation  commitments  of  WTO  partners  in  the  securities  sector 
represented  US  $  14.8  trillion  in  1996,  or  96.3  % of  total  equity  trading  in  WTO 
countries. Total  banking assets in WTO countries  offering  a generally  open banking 
market amounted  to US  $ 41.2 trillion in  1995  or 95.9  % of  total  banking  assets of 
WTO countries. Total  insurance premiums for  which  WTO  commitments  will  offer 
open market access amounted to US $ 2.1 trillion in  1995 or 97.1% of WTO countries 
total premiums. 

The European Communities and its Member States have decisively  contributed to the 
success  of  these  negotiations,  which  constitute  a  considerable  contribution  to  the 
continuing  process  of  opening  domestic  banking,  insurance,  securities  and  other 
financial  services on a non-discriminatory basis to foreign financial  service suppliers. 
However,  there is still  significant  scope for progress  in future  negotiating  rounds. In 
particular,  we  still  need  to work  in  order to  secure  rights  to  majority  ownership  in 
financial 
institutions  and  non-discriminatory  rules  for  the  establishment  of  a 
commercial presence in third countries. 

The  Commission  thus  recommends  the  Council  to  adopt  the  annexed  Decision 
concerning the final results of the negotiations on financial services. 

Proposal for a 

COUNCIL DECISION 

concerning the conclusion on behalf of the European Community,  as regards matters 

within its competence, of the results of the World Trade Organisation negotiations on 

financial  services 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community,  and in particular 

Articles  54,  57,  63,  66,  73b  to  73f,  99,100,  100a  and  113,  in  conjunction  with  the 

second  sentence  of  Article  228  (2)  and  the  first  subparagraph  of  Article  228  (3) 

thereof, 

Having regard to the proposal from the Commission, 

Having regard to the opinion of the European Parliament, 

Having regard to the opinion of the Economic and Social Committee, 

Whereas the Marrakesh Agreement establishing the World Trade Organization and its 

related  agreements  as  well  as  the  Ministerial  Decisions  and  Declarations  and  the 

Understanding  on  Commitments  in  Financial  Services  were  approved  by  a Council 

Decision of 22 December 1994; 

Whereas  the  overall  commitments  on  financial  services  negotiated  by  the 

Commission, on behalf of the European Community and its Member States, constitute 

a satisfactory and balanced outcome of the negotiations; 

Whereas on  12 December  1997 the Council  approved, subject to definitive  approval 

after  completion  of  internal  procedures,  the  final  schedule  of  commitments  of  the 

European  Communities  and 

its  Member  States  (GATS/SC/31/Suppl.4),  and 

authorized the Commission to submit that list, on behalf,of the European Community 

and its Member States, to the WTO. 

Whereas  on  the  same  date  the  Council  authorized  the  Commission  to  approve,  on 

behalf  of  the  European  Community  and  its  Member  States,  the  final  result  of  the 

negotiations as set out in the in the Fifth Protocol to the GATS (S/L/45), the Decision 

adopting  that  Protocol  (S/L/44)  and  the  Decision  on  Commitments  in  Financial 

Services (SOJ50). 

Whereas  the  competence  of  the  Community  to  conclude  international  agreements 

derives not only from explicit conferral by the Treaty but may also derive from other 

provisions  of  the  Treaty  and  from  acts  adopted  pursuant  to  those  provisions  by 

Community institutions; 

Whereas, where Community rules have been adopted in order to achieve the aims of 

the  Treaty,  Member  States  may  not,  outside  the  framework  of  the  common 

institutions, enter into commitments liable to affect those rules or alter their scope; 

Whereas  some commitments  on financial services  fall  within the competence  of  the 

Community  under  Article  113  of  the  Treaty;  whereas,  furthermore,  other 

commitments  on financial services  affect  Community  rules  adopted  on  the  basis  of 

Articles  54, 57, 63, 66, 99,  100 and  100a and may therefore only be entered into by 

the Community alone; 

Whereas,  in particular,  the use  of  Article  100 of  the Treaty  as  a legal  base  for  this 

Decision  is justified  to the extent that the aforementioned  commitments  on  financial 

services affect Council Directive 90/434/EEC of 23 July  1990 on the common system 

of  taxation  applicable  to  mergers,  divisions,  transfers  of  assets  and  exchanges  of 

shares  concerning  companies  of  different  Member  States  and  Council  Directive 

90/435/EEC of 23 July  1990 on the common system of taxation applicable in the case 

of parent companies and subsidiaries of different Member States, which are based on 

Article  100 of the Treaty; 

Whereas,  with  regard  to  capital  movement  commitments  contained  in  the  list  of 

specific  commitments of the Community and of the Member States and in the present 

state of  Community  law, there is  a general  competence  of  the Community; whereas 

Member States however remain competent  to  act within the limits laid down by the 

provisions of Article 73c of the Treaty; 

Whereas, by their nature, the Agreement  establishing  the World Trade Organization 

and the Protocols to the General Agreement on Trade in Services, are not likely to be 

directly invoked before Community or Member States' courts, 

HAS DECIDED AS FOLLOWS: 

Sole Article 

1.  The  Fifth  Protocol  to* the  General  Agreement  on  Trade  in  Services  concerning 

financial  services (S/L/45) is hereby approved on behalf of the European Community 

with regard to that portion  of  it  which  falls  within  the competence  of  the European 

Community. 

2. The text of the Fifth Protocol, together with the schedule of specific  commitments 

(GATS/SC/31/Suppl. 4) and the list of the exemptions from Article II of the General 

Agreement on Trade in Services  (GATS/EL/31) of the Community  and the Member 

States  concerning  financial  services  are  attached  to  this  Decision,  as  are  also  the 

following Decisions: 

-  the Decision  of  the  Committee  on  Trade  on  Financial  Services  adopting  the  Fifth 

Protocol to the General Agreement on Trade in Services (S/L/44), 

-  the  Decision  of  the  Council  for  Trade  in  Services  of  December  1997  on 

Commitments in Financial Services (S/L/50), 

3.  The  President  of  the  Council  is  hereby  authorized  to  designate  the  person 

empowered to sign the Fifth Protocol to the General Agreement on Trade in Services 

in order to bind the European Community with regard to that portion of the Protocol 

falling within its competence. 

Done at. 

For the Council 

The President 

WORLD TRADE 

O R G A N I Z A T I ON 

Trade in Services 

S/LW. 

(97-5441) 

FIFTH PROTOCOL TO THE 
GENERAL-AGREEMENT ON TRADE IN SERVICES 

Members  of  the  World  Trade  Organization  (hereinafter  referred  to  as  the "WTO")  whose 
Schedules of Specific Commitments and Lists of Exemptions from Article II of the General Agreement 
on Trade in Services concerning financial  services are annexed to this Protocol (hereinafter referred to 
as "Members concerned"), 

Having carried out negotiations under the terms of the Second Decision  on Financial Services 

adopted by the Council for Trade in Services on 21 July 1995 (S/L/9), 

Agree as follows: 

A  Schedule  of  Specific  Commitments  and  a  List  of  Exemptions  from  Article II  concerning 
1. 
financial  services annexed to this Protocol relating to a Member shall, Upon the entry into force of this 
Protocol  for  that  Member,  replace  the  financial  services  sections  of  the  Schedule  of  Specific 
Commitments and the List of Article II Exemptions of that Member; 

.  This  Protocol  shall  be  open  for  acceptance,  by  signature  or  otherwise,  by  thé  Members 

2. 
concerned until 29 January 1999. 

. * . • '• 

This Protocol shall enter into force on the 30th day following the date of its acceptance by all 
3. 
Members concerned.  If by 30 January  1999 it has not been accepted by all Members concerned, those 
Members which have accepted it before that date may, within a period of 30 days thereafter, decide on 
its entry into force. 

4. 
This Protocol shall be deposited with the Director-General of the WTO.  The Director-General 
of the WTO shall promptly furnish  to each Member of the WTO à certified copy of this Protocol and 
notifications of acceptances thereof pursuant to paragraph 3. 

. 

This Protocol shall be registered in accordance with the provisions of Article  102 of the Charter 

5. 
of the United Nations. 

Done  at Geneva this twenty-seventh  day of  February one thousand nine hundred and ninety-
eight, in a single copy  in English, French and Spanish languages, each text being authentic, except as 
otherwise provided for in respect of the Schedules annexed hereto. 

# 

WORLD  TRADE 
WORLD  TRADE 

ORGANIZATION 
ORGANIZATION 

• 
• 

• 
• 

Trade in Services 
Trade in Services 

GATS/SC/3I/SUPPI.4 
GATS/SC/3I/SUPPI.4 

-  26 February  1998 
-  26 February  1998 

(98-0714) 
(98-0714) 

EUROPEAN  COMMUNITIES  AND THEIR  MEMBER  STATES 
EUROPEAN  COMMUNITIES  AND THEIR  MEMBER  STATES 

Schedule of Specific  r.npmifmpnt<s 
Schedule of Specific  r.npmifmpnt<s 

Supplement 4 
Supplement 4 

v 
v 

.  (This is authentic in English, French and Spanish) 
.  (This is authentic in English, French and Spanish) 

This text replaces the Financial Services section contained in document 
This text replaces the Financial Services section contained in document 

GATS/SC/31/Suppl.l/Rev.l. 
GATS/SC/31/Suppl.l/Rev.l. 

EUROPEAN  COMMUNITIES  AND  TIIEIR  MEMBER  STATES 
SCHEDULE  OF  SPECIFIC  COMMITMENTS 

Modes of  supply: 

1)  Cross-border  supply 

2)  Consumption  abroad 

3)  Commercial  presence 

4) 

Presence of  natural  persons 

Sector  or  Sub-sector 

Limitations  on  Market  Access 

Limitations  on National  Treatment 

Additional 
Commitments 

FINANCIAL  SERVICES  SECTOR' 

1.  The  Communities  and  their  Member  States  undertake  commitments  on  Financial  Services  in  accordance  with  the provisions  of  the  "Understanding  on 

Commitments  in  Financial  Services"  (the  Understanding). 

2.  These commitments  are subject  to  the limitations  on  market  access  and  national  treatment  in  the  "all  sectors"  section  of  this  schedule  and  to  those relating  to 

3. 

the subsectors  listed  below. 
The market  access*commitments in respect  of  modes  (1) and  (2)  apply  only  to  the transactions indicated  in paragraphs  B.3  and  B.4  of  the market  access 
section  of  the Understanding  respectively. 

4.  Notwithstanding  note  1. above,  the market  access  and  national  treatment  commitments  in respect  of  mode  (4) on  financial  services  are  those  in  the  "all 

5. 

sectors"  section of  this schedule,  except  for  Sweden  in which  case commitments  are made in  accordance with  the  Understanding. 
The admission  to the  market  of new  financial  services  or products  may be subject  to  the existence  of,  and consistency  with,  a regulatory  framework  aimed  at 
achieving  the objectives  indicated  in  Article 2(a) of  the  Financial  Services  Annex. 

6.  As a general  rule and  in a non-discriminatory  manner,  financial  institutions  incorporated  in  a Member  State of  the Community  must  adopt  a specific  legal 

form. 

OP  > 
n  H 
to  Ç/5 
GO 
O 

GO 

•a 

1  Unlike foreign  subsidiaries, branches established  directly  in a Member State by a non-Community  financial  institution are not, with certain  limited exceptions, subject  to prudential 

regulations harmonised  at Community  level which enable such subsidiaries to benefit  from  enhanced  facilities  to set up new establishments and to provide cross-border services 
throughout the Community. Therefore,  such branches receive an authorisation to operate in the territory of a Member State under conditions equivalent to those applied  to domestic 
financial  institutions of that Member State, and may be required  to satisfy  a number of specific prudential  requirements such as, in the case of banking and securities, separate 
capitalisation and other solvency  requirements and reporting and publication of accounts requirements or,  in the case of insurance, specific guarantee and deposit requirements, a separate 
capitalisation, and the localisation  in the Member State concerned of the assets representing the technical reserves and at least one third of the solvency margin. Member States may 
apply the restrictions  indicated  in this schedule only with regard  to the direct establishment  from  a third country of a commercial  presence or to the provision of cross-border services 
from  a third country;  consequently, a Member State may not apply these restrictions, including those concerning establishment,  to third-country  subsidiaries established  in other 
Member States of the Community, unless these restrictions can also be applied to companies or nationals of other Member States in conformity  with Community law. 

Modes of supply: 

1)  Cross-border supply 

2)  Consumption abroad 

3)  Commercial presence 

4)  Presence of natural persons 

Additional 
Commitments 

The European 
Communities and their 
Member States undertake 
additional commitments 
as contained in the 
attachment. 

-' 

-

Sector or  Sub-sector 

Limitations on Market  Access 

Limitations on National  Treatment 

A. 

Insurance and 
Insurance-Related Services 

(1)  A:  Promotional activity and 

(1)  A:  Higher premium tax is due for 

insurance contracts (except for contracts 
on reinsurance and retrocession) which 
are written by a subsidiary not established 
in the Community or by a branch not 
established in Austria.  Exception from 
the higher tax can be granted. 

intermediation on behalf of a subsidiary 
not established in the Community or of a 
branch not established in Austria (except 
for reinsurance and retrocession) are 
prohibited. 

A:  Compulsory air  insurance can be 
underwritten only by a subsidiary 
established in the Community or by a 
branch established  in Austria. 

DK:  Compulsory air transport insurance 
can be underwritten only by  firms 
established  in the Community. 

DK:  No persons or companies (including 
insurance companies) may for business 
purposes in Denmark assist in effecting 
direct insurance for persons resident in 
Denmark,  for Danish ships or for 
property in Denmark, other than 
insurance companies licensed by Danish 
law or by Danish competent authorities. 

D:  Compulsory air insurance policies can 
be underwritten only by a subsidiary 
established in the Community or by a 
branch established in Germany. 

OQ  > 

GO 

o 
GO I 

Modes of supply: 

1)  Cross-border supply 

2)  Consumption  abroad 

3)  Commercial  presence 

4)  Presence of  natural persons 

Sector or Sub-sector 

Limitations on Market  Access 

Limitations on National Treatment 

Additional 
Commitments 

D:  If a foreign  insurance company has 
established a branch in Germany,  it may 
conclude  insurance contracts in Germany 
relating to international  transport only 
through the branch established in 
Germany. 

E,  I:  Unbound  for the actuarial 
profession. 

FIN: Only  insurers having  their head 
office  in the European Economic Area or 
having their branch in Finland may offer 
insurance services as referred to in 
sub-paragraph 3  (a) of  the Understanding. 

FIN:  The supply of  insurance broker 
services  is subject to a permanent place of 
business in the European Economic Area. 

F:  Insurance of  risks relating to ground 
transport may be carried out only by 
insurance firms established  in the 
Community. 

' 

• 

i* 

J *.  GO >• 
GO 

» -* 

GO I 

Modes of supply: 

1)  Cross-border supply 

2)  Consumption abroad 

3)  Commercial presence 

4)  Presence of natural persons 

Sector or Sub-sector 

Limitations on Market Access 

Limitations on National Treatment 

Additional 
Commitments 

I:  Insurance of risks relating to c.i.f. 
exports by residents in Italy may be 
underwritten only by insurance firms 
established in the Community. 

I:  Transport insurance of goods, 
insurance of vehicles as such and liability 
insurance regarding risks located in Italy 
may be underwritten only by insurance 
companies established in the Community, 
this reservation does not apply for 
international transport involving imports 
into Italy. 

P:  Air and maritime transport insurance, 
covering goods, aircraft,  hull and liability 
can be underwritten only by firms 
established in the EC; only persons or 
companies established in the EC may act 
as intermediaries for such insurance 
business in Portugal. 

S:  The supply of direct insurance is 
allowed only through an insurance service 
supplier authorised in Sweden, provided 
that the foreign service supplier and the 
Swedish insurance company, belong to the 
same group of companies or have an 
agreement of cooperation between them. 

3>P 

OQ  > 

GO 
Q 
CO 

GO 

Modes of supply: 

1)  Cross-border supply 

2)  Consumption abroad 

3)  Commercial presence 

4)  Presence of natural persons 

Additional 
Commitments 

OQ  > 
O  H 
ON  & 
GO 
O 
io 
GO 

Sector or  Sub-sector 

Limitations on Market  Access 

Limitations on National  Treatment 

(2)  A:  Promotional  activity and 

(2)  A:  Higher premium tax is due for 

insurance contracts (except for contracts > 
on reinsurance and retrocession) which 
are written by a subsidiary not established 
in the Community or by a branch not 
established  in Austria.  Exception from the 
higher tax can be granted. 

intermediation on behalf of a subsidiary 
not established in the Community or of a 
branch not established  in Austria (except 
for reinsurance and retrocession) are 
prohibited. 

A:  Compulsory air  insurance can be 
underwritten only by a subsidiary 
established in the Community or by a 
branch established  in Austria. 

DK:  Compulsory  air transport insurance 
can be underwritten only by  firms 
established in the Community.. 

DK:  No persons or companies (including 
insurance companies) may for business 
purposes in Denmark assist  in effecting 
direct insurance for persons resident in 
Denmark,  for Danish ships or for 
property  in Denmark, other than 
insurance companies licensed by Danish 
law or by Danish competent authorities. 

D:  Compulsory air insurance policies can 
be underwritten only by a subsidiary 
established  in the Community or by a 
branch established  in Germany. 

Modes of supply: 

1)  Cross-border supply 

2)  Consumption abroad 

3)  Commercial presence 

4)  Presence of natural persons 

Sector or Sub-sector 

Limitations on Market Access 

Limitations on National Treatment 

Additional 
Commitments 

D:  If a foreign  insurance company has 
established a branch in Germany, it may 
conclude insurance contracts in Germany 
relating to international transport only 
through the branch established in  -
Germany. 

» 

• 
F:  Insurance of risks relating to ground 
transport may be carried out only by 
insurance firms established in the 
Community. 

I:  Insurance of risks relating to c.i.f. 
exports by residents in Italy may be 
underwritten only by insurance  firms 
established in the Community. 

I:  Transport insurance of goods, 
insurance of vehicles as such and liability 
insurance regarding risks located in Italy 
may be underwritten only by insurance 
companies established in the Community. 
This reservation does not apply for 
international transport involving imports 
into Italy. 

^4  GO 
GO 

S 
5-
I 

3Q 
OQ  > 
co  to 
00 
o 

• —» 

GO 
c 
*o 

Modes of supply: 

1)  Cross-border supply 

2)  Consumption  abroad 

3)  Commercial  presence 

4)  Presence of  natural  persons 

Sector  or  Sub-sector 

Limitations on Market  Access 

Limitations  on National  Treatment 

Additional 
Commitments 

P:  Air and maritime transport insurance, 
covering  goods,  aircraft,  hull  and liability 

.  can be underwritten only  by firms 

established  in the EC; only persons or 
companies established  in the EC may act 
as intermediaries  for such insurance 
business  in Portugal. 

(3)  A:  The licence  for branch offices  of 

foreign  insurers has to be denied  if the 
insurer,  in the home country,  does not 
have a legal  form corresponding or 
comparable to a joint  stock company or a 
mutual  insurance association. 

B:  Any public bid to acquire Belgian 
securities  made by or on behalf of a 
person, company or institution outside the 
jurisdiction of one of  the Member States 
of the European Community  shall be 
submitted  to the authorisation of the 
Minister of  Finance. 

E:  Before establishing  a branch or 
agency  in Spain to provide certain classes 
of  insurance,  a foreign  insurer must have 
been authorised to operate in the same 
classes of  insurance in its country  of 
origin  for at least five years. 

(3)  FIN:  The general agent of the 
foreign  insurance company shall  have his 
place of  residence in Finland,  unless the 
company  has its head office  in the 
European  Economic Area. 

S:  Non-life  insurance undertakings not 
incorporated in Sweden conducting 
business  in Sweden are -  instead of being 
taxed according  to the net result - subject 
to taxation based on the premium income 
from direct  insurance operations. 

S:  A founder of  an insurance company 
shall  be a natural person resident in  the 
European  Economic Area or a legal  entity 
incorporated  in  the European Economic 
Area. 

OS 

Modes of supply: 

1)  Cross-border supply 

2)  Consumption abroad 

3)  Commercial presence 

4)  Presence of natural persons 

Sector  or Sub*-scctor 

Limitations on Market  Access 

Limitations on National  Treatment 

Additional 
Commitments 

E,  GR:  The right of establishment  does 
not cover the creation of  representative 
offices  or other'permaneht presence of 
insurance companies,  except where such 
offices  are established as agencies, 
branches or head  offices. 

FIN:  The managing director,  at least one 
auditor and at least one half of the 
promoters and members of  the board of 
directors and the supervisory board of an 
insurance company shall have their place 
of residence in the European Economic 
Area, unless the Ministry of  Social 
Affairs  and Health has granted an 
exemption. 

FIN; Foreign insurers cannot get a licence 
in Finland as a branch to carry on  . 
statutory social  insurances (statutory 
pension insurance, statutory accident 
insurance). 

V 

s  23. 
\o to 
GO 
S 
S I 

Modes of supply: 

1)  Cross-border supply 

2)  Consumption  abroad 

3 ).  Commercial  presence 

4)  Presence of  natural persons 

'  Additional 
Commitments 

OQ  > 
a  H 
»_  GO 

o 
»-» 
GO 
C 

Sector  or Sub-sector 

Limitations on Market  Access 

Limitations  on National  Treatment 

F:  The establishment of  branches is 
subject  to a special  authorisation  for the 
representative  of the branch. 

I:  Access  to actuarial  profession  through 
natural persons only.  Professional 
associations  (no  incorporation)  among 
natural persons permitted. 

I:  The authorisation of the establishment 
of  branches is ultimately  subject  to the 
evaluation of  supervisory  authorities. 

IRL:  The right of  establishment  does not 
cover the creation of  representative 
offices. 

P:  Foreign companies may carry out 
insurance intermediation  in Portugal only 
through a company  formed  in accordance 
with the law of a Community.Member 
State. 

P:  In order to establish a branch in 
Portugal,  foreign companies  need to 
demonstrate prior operational  experience 
of «it least five years. 

•  • 

X 

Modes of supply: 

1)  Cross-border supply 

2)  Consumption abroad 

3)  Commercial  presence 

4)  Presence of natural persons 

Sector or  Sub-sector 

Limitations oh Market  Access 

Limitations on National  Treatment 

S:  Foreign companies may only establish 
as a subsidiary or through a  resident 
agent. 

S:  Insurance broking undertakings not 
incorporated in Sweden may establish a 
commercial presence only  through a 
branch. 

Additional 
Commitments 

$ 

(4)  Unbound except as indicated in the 
horizontal  section and subject to the 
specific conditions: 

(4)  Unbound except as indicated in the 
horizontal section and subject to the 
following  specific  limitations: 

• 

GR:  A majority of the members of the 
board of directors of a company 
established  in Greece shall be nationals of 
one of  the Member States of the 
Community. 

• 

A:  The management of  a branch  office 
must consist of two natural persons 
resident  in Austria. 

DK:  The general agent of an insurance 
branch will  need to have resided in -
Denmark for the last two years unless 
being a national of one of the Member 
States of the Community.  The Minister of 
Business and Industry may grant 
exemption. 

DK:  Residency  requirement  for managers 
and the members of the board of directors 
of a company.  However,  the Minister of 
Business and Industry may grant 
•  exemption from this requirement. 

Exemption is granted on a 
non-discriminatory basis. 

E,  I:  Residence requirement  for actuarial 
profession. 

j 

• 

_ 

IS 
= 8 
S. 

»-* 

Modes of supply: 

1)  Cross-border supply 

2)  Consumption  abroad 

3)  Commercial  presence 

4)  Presence of natural persons 

a 
i—» 
'to 

O 
u5 

Additional 
Commitments 

The European 
Communities  and their 
Member States undertake 
additional  commitments 
as contained  in the 
attachment. 

Sector  or  Sub-sector 

Limitations on Market  Access 

Limitations on National  Treatment 

B.  Banking and Other Financial 

(I)2 

Services 
(excluding  insurance) 

(1)  None 

B:  Establishment  in Belgium is required 
for the provision of  investment advisory 
services. 

I:  Unbound for  "promotori di  servizi 
finanziari"  (financial  salesmen). 

IRL:  The provision of investment 
services or investment  advice requires 
either (I) authorisation  in Ireland, which 
normally requires that thé entity be 
incorporated or be a partnership or a sole 
trader,  in each case with a head/registered 
office  in Ireland (authorisation may not be 
required  in certain cases, e.g.  where a 
third country service provider has no 
commercial  presence  in Ireland and the 
service is not provided to private 
individuals), or (II) authorisation in 
another Member State in accordance with 
the EC Investment Services Directive. 

(2)3 

(2)  None 

D:  Issues of securities denominated  in 
Deutschmarks can be lead managed only 
by  a credit  institution,  subsidiary or 
branch,  established  in Germany. 

21:  Provision and transfer of financial  information and financial data processing entailing trading of financial  instruments may be prohibited where the protection of investors is 
likely to be seriously prejudiced. Only authorised banks and investment firms must comply with conduct of business rules in providing investment advice concerning financial instruments 
and advice to undertakings on capital stnichire, industrial strategy and related matters, and advice and service relating to mergers and acquisition of undertakings. Advisory activity 
should not include asset management. 

31: Authorised persons enabled to conduct collective asset management arc deemed responsible for any investment activity conducted by their delegated advisers (Collective asset 

management, excluding UC1TS). 

Modes of supply: 

1)  Cross-border supply 

2)  Consumption abroad 

. 3)  Commercial  presence 

4)  Presence of natural persons 

Sector or  Sub-sector 

Limitations on Market  Access 

Limitations on National  Treatment 

Additional 
Commitments 

FIN: Payments, from governmental  entities 
(expenses) shall be transmitted through the 
Finnish Postal  Giro System,  which is 
maintained by the Postipankki Ltd. 
Exemption from this requirement may be 
granted on special reason by the ^Ministry 
of Finance. 

GR: Establishment is required for the 
provision of custodial and depository . 
services involving  the administration of 
interest and principal payments due on 
securities issued  in Greece. 

. UK: Sterling issues,  including privately 
led issues, .can be lead managed only by a 
firm  established  in the European 
Economic Area. 

(3)  All  Member States: 

(3)  F:  In addition to French crédit 

The establishment of a specialised 
management company is required to 
perform the activities of management of 
unit trusts and investment companies 
(Articles 6 and  13 of  UClTS Directive, 
.  :  . 
85/611/EEC). 

Only firms haying their registered office 
in the Community can act as depositories 
of the assets ofinvestment  funds (Articles 
8.1  and 15.1  of the UCITS Directive, 
85/611/EEC). 

institutions,  issues denominated  in French 
francs niay be lead managed only by 
French subsidiaries (under French law) of 
non-French banks which are authorised, 
. 
based on sufficient  means and 
commitments in Paris of  the candidate 
French subsidiary of a non-French bank. 
These conditions apply to lead banks 
running the books. A non-French bank -
may be, without restrictions or 
requirement, to establish, jointly-lead  or 
co-lead manager of  Eurofranc bond issue. 

> '. 

.•;••  ..•QîSr-*' 

- 

•  >. 

•"•••  V-  • 

• 

V*. 

.*•?••' 

-iïy 

Modes of supply: 

1)  Cross-border supply.  2)  Consumption abroad 

3)  Commercial presence 

4)*  Présence of natural persons --

Sector or Sub-sector: 

Limitations on Market Access 

. Limitations on National Treatment 

.'.  Additional/:.]% 
-:* 

Commitments 

• 

/ 

A:  Only members of the Austrian,Stock 
Exchange may engage in securities trading 
at the Stock Exchange.  . 

I:  Representative offices  of  foreign-
intermediaries cannot carry; out activities  : 
aimed at providing investment services. 

A:  For trading in foreign exchange and 
foreign currency authorisation of the 
Austrian National £ank is required. 

A:  Mortgage, bonds and municipal bonds 
may be issued-by banks specialised and 
authorised for this activity. 

S: A founder of a banking company shall 

. be a natural Cpersoh resident hi  the . 

European Economic Area or a foreign 
bank.  A founder of a" savings b^ank shall 
be a natural person resident in;;the; 
European Economic Area.  • 

:. 

•  • 

• 

.

.

.

.. 

• • -

, • ;

.,, 

A:  For carrying' out services of pension 
fund  management a specialised company 
only for this activity and incorporated  as a 
stock company in Austria is required. 

B:  Any public bid to. acquire Belgian 
securities made by or.on behalf of a 
person, company or institution outside the 
jurisdiction of one; of thé Member States 
of the European Community shall be,  ; 
submitted to the authorisation of the. 

,  Ministerof-Finance.  * 

1 

« •. 

'i 

m 

:-v.\.*y& 

•  '• i  i 

•

•

•

•

<* 

' '. 

i  . 

1 

•  •  * 

.'• 

• • - . -. 

- 
••"  ••••' 

'''\'i 
• • ' If 

• 

. • • -* 

• 

• • ' • •' 

î 5." 

••- - • •'1 

•

•

.

.

.. 

-

,. 

Modes of supply: 

1)  Cross-border supply  "  2)  Consumption abroad 

3)  Commercial presence 

4)  Presence of natural persons 

Sector or Sub-sector 

Limitations on Market  Access 

Limitations on National  Treatment 

Additional 
Commitments 

DK:  Financial  institutions may engage in 
securities trading on the Copenhagen 
Stock Exchange only through subsidiaries 
incorporated  in Denmark. 

E:  Financial  institutions may engage in 
securities trading in securities listed on an 
official  stock exchange or in the 
government securities market only through 
securities firms incorporated  in Spain. 

FIN: 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 Economic Area, unless the 
Ministry  of  Finance grants an exemption. 
At least one auditor shall have his place of 
residence in the European Economic Area. 

. 

re 

»-4  00 

Q w 
S3 

•

•

.

*• 

Modes of supply: 

1)  Cross-border supply 

2)  Consumption abroad 

3)  Commercial  presence 

4)  Presence of  natural persons 

Sector  or  Sub-sector 

Limitations on Market  Access 

Limitations on National  Treatment 

Additional 
.  Commitments 

FIN: The broker (individual  person) on 
derivative exchange shall have his place of 
residence in the European Economic Area. 
Exemption  from this requirement may be 
granted under the conditions set by the 
Ministry of Finance. 

FIN: Payments  from governmental  entities 
(expenses) shall be transmitted  through the 
Finnish  Postal Giro System,  which  is 
maintained by the Postipankki Ltd. 
Exemption from this requirement may be 
granted on special  reason by the Ministry 
of Finance. 

GR:  Financial  institutions may engage in 
the trading Of securities listed on the. 
Athens Stock  Exchange only  through stock 
exchange firms incorporated  in Greece. 

. 

< 

»_.  CO 

O 

S3 

Modes of supply: 

. 1)  Cross-border supply 

2)  Consumption abroad 

3)  Commercial  presence 

4)  Presence of natural persons 

Sector  or  Sub-sector 

Limitations on Market  Access 

Limitations on National  Treatment 

Additional 
Commitments 

GR: For the establishment and operations 
of branches a minimum amount of  foreign 
exchange must be imported,  converted 
into drachmas and kept in Greece as long 
as a foreign bank continues to operate in 
Greece: 

-  Up to four (4) branches this minimum.is 
currently equal to half of the minimum 
amount of share capital required for a 
credit institution to be incorporated in 
Greece; 

-  For the operation of additional branches 
the minimum amount of capital must be 
equal to the minimum share capital 
required for a credit institution to be 
incorporated  in Greece. 

I: In providing the activity of  door-to-door 
selling,  intermediaries must utilise 
authorised financial salesmen  resident 
within the territory of a Member State of 
the European Communities. 

J 

28 

OQ  > 
H-  to 

§ 
£5 I 

OQ  > 
a  H 
H-  GO 
oo  £ 
O 

CO c •a 

Modes of supply: 

1)  Cross-border supply 

2)  Consumption abroad 

3)  Commercial presence 

4)  Presence of natural persons 

Sector  or  Sub-sector 

Limitations on Market  Access 

Limitations on National Treatment 

Additional 
Commitments 

I:  Clearing and settlement of securities 
may be conducted only by the  official 
clearing system. A company authorised by 
the Bank of Italy in agreement with 
Consob could be entrusted with the 
activity of clearing, up to the  final 
settlement of securities. 

I:  The public offer  of securities (as 
provided  for under Art.  18 of Law 
216/74) other than shares, debt securities 
(including convertible debt securities) can 
only be made by Italian limited 
companies, foreign companies duly 
authorised, public bodies or companies 
belonging to local authorities whose 
assigned capital is not below Lit 2 billion. 

I:  Centralised deposit, custody and 
administration services can be provided 
only by the Bank of Italy  for Goverment 
securities, or by Monte Titoli SpA for 
shares, securities of a participating nature 
and other bonds traded in a regulated 
market. 

Modes of supply: 

1)  Cross-border supply 

2)  Consumption abroad 

3)  Commercial  presence 

4)  Presence of natural persons 

Sector  or  Sub-sector 

Limitations on Market  Access 

Limitations on National  Treatment 

Additional 
Commitments 

I: In the case of collective  investment 
schemes other than harmonised UCITS 
under the directive 85/611/EEC,  the 
trustee/ depositary  is required to be 
incorporated in Italy or in another 
Member State of the European 
Community,  being established  through a 
branch in Italy.  Only banks,  insurance 
companies,  securities  investment 
companies having their legal head  office 
in the European Community, may carry 
out activity of pension fund  resources 
management.  Management companies 
(closed-end funds and real estate  funds) 
are also required to be incorporated  in 
Italy. 

IRL:  In the case of collective  investment 
schemes constituted as unit trusts and 
variable capital companies (other than 
undertakings for collective investment  in 
transferable securities, UCITS), the 
trustee/depositary  and management 
company  is required to be incorporated in 
Ireland or in another Member State of the 
Community.  In the case of an investment 
limited partnership,  at least one general 
partner must be incorporated  in Ireland. 

>_i  GO 

O 
u> 
•—» 

GO 'I 

Modes of  supply: 

1)  Cross-border supply 

2)  Consumption abroad 

3)  Commercial  presence 

4)  Presence of natural  persons . 

Sector  or  Sub-sector 

Limitations on Market  Access 

Limitations on National  Treatment 

Additional 
Commitments 

' 

2>o 
a  »-3 
to  to 

O 

i— 

GO 

•§ 

• 

' 

• 

• 

IRL:  To become a member of  a stock 
exchange  in Ireland,  an entity  must either 
(I) be authorised  in Ireland, which 
requires that it be incorporated or be a 
partnership, with a head/registered  office 
in Ireland,  or (II) be authorised  in another 
Member State in accordance with  the EC 
Investment  Services  Directive. 

• 

IRL:  The provision of  investment 
services or investment advice requires 
either (I) authorisation  in Ireland, which 
normally requires that the entity be 
incorporated or be a partnership or a sole 
trader,  in each case with a head/registered 
office  in Ireland (the supervisory  authority 
may also authorise branches of third 
country entities), or (II) authorisation in 
another Member State in accordance with 
the EC Investment  Services Directive. 

" 

• 

/- 

• 

' 

' 

• 

• 

. 

• 

• 

P:  The establishment of non-EC banks is 
subject to an authorisation issued, on a 
case-by-case  basis, by the Minister of 
Finance. The establishment has to 
contribute to increase the national banking 
system's efficiency  or has to produce 
significant effects  on the 
internationalisation of  the Portuguese 
economy. 

. 

• 

' 

» 

| 

• 

• 

' 

• 

V 

1 

> 

Modes of supply: 

1)  Cross-border supply 

2)  Consumption abroad 

3)  Commercial presence 

4)  Presence of natural persons 

Sector or Sub-sector 

Limitations on Market  Access 

Limitations on National Treatment 

Additional 
Commitments 

P:  The services of venture capital may 
not be provided by branches of venture 
capital companies having their head  office 
in a non-EC country. Broker-dealer 
services on the Lisbon Stock Exchange 
may be provided by broker and dealer 
companies incorporated in Portugal or by 
branches of investment firms authorised in 
another EC country and authorised in their 
home country to provide those services. 
Broker and dealer services in the Oporto 
Derivatives  Exchange and in the OTC 
market may not be provided by branches 
of non-EC broker/dealer companies. 

Pension fund management  may be 
provided only by companies incorporated 
in Portugal and by insurance companies 
established in Portugal and authorised to 
take up the life insurance business, 

UK:  Inter-dealer brokers, which are a 
category of financial institutions dealing in 
Government debt, are required to be 
established in the European Economic 
Area and separately capitalised. 

S: Undertakings not incorporated in 
Sweden may establish a commercial 
presence only through a branch, and in 
case of banks, also through a 
representative  office. 

to  to 
•|-  CO 

Modes of supply: 

1)  Cross-border supply.  2)  Consumption  abroad 

3)  Commercial  presence 

4)  •  Presence of natural  persons 

Sector  or  Sub-sector 

Limitations on Market  Access 

Limitations on National  Treatment 

Additional 
Commitments 

(4)  Unbound except as indicated  in the 
horizontal section and subject  to the 
specific conditions: 

(4)  Unbound except as indicated in the 
horizontal section and subject  to the 
following  specific limitations: 

OQ  > 
to  to 
«°  GO 
O 
• —. U) 

c 
•a 
T3 

F: Soci£t6s d'investissement a capital fixe: 
condition of nationality  for the president 
of the Board of Directors, the 
Directors-General  and no less than two 
thirds of the administrators, and' also, 
when the securities firm has a Supervisory 
Board or Council, for the members of 
such board or its Director-General,  and no 
less than two thirds of the members of the 
supervisory Council. 

GR: Credit institutions should name at 
least two persons who are responsible  for 
the operations of the institution. Condition 
of residency applies to these persons. 

I:  Condition of residence within the 
territory of a Member State of the 
European Communities for  "promotori di 
servizi finanztari" (financial  salesmen). 

9 

" 

O 

GATS/SC/31/SuppU 
Page 23 

ADDITIONAL COMMITMENTS  BY THE EUROPEAN  COMMUNITIES 
AND THEIR MEMBER  STATES 

INSURANCE 

a)  The European Communities and their Member States note the close co-operation among the insurance 
regulatory and supervisory authorities of the Member States and encourage their efforts  to promote 
improved supervisory standards. 

b)  Member States will make their best endeavours to consider within 6 months complete applications 
for licenses to conduct direct insurance underwriting business, through the establishment in a Member 
State of a subsidiary in accordance with the legislation of that Member State, by an undertaking governed 
by the laws of a third country. In cases where such applications are refused, tie Member State authority 
will make its best endeavours to notify the undertaking in question and give the reasons" for the refusal 
of the application. 

c)  The supervisory authorities of the Member States will make their best endeavours to respond without 
undue delay to requests for information by applicants on the status of complete applications for licences 
to conduct direct  insurance underwriting business, through the establishment  in a Member  State of 
a subsidiary in accordance with the legislation of that Member State by an undertaking governed by 
the laws of a third country. 

d)  The European Communities and their Member States will make their best endeavours to examine 
any questions pertaining to the smooth operation of the internal market in insurance, and consider any 
issues that might have an impact on the internal market  in insurance. 

e)  The European Communities and their Member States note that, as regards motor insurance, under 
EC law as in force on 31 December  1997, and without prejudice to future legislation, premiums may 
be calculated taking several risk factors  into account. 

f)  The European  Communities  and their  Member  States  note that under  EC law,  as  in force  on 
31 December  1997, and without prejudice to future legislation, the prior approval by national supervisory 
authorities of policy conditions and scales of premiums that an insurance undertaking intends to use 
is generally not required. 

g)  The European  Communities  and their  Member  States  note that under  EC law,  as  in force  on 
31 December  1997, and without prejudice to future legislation, the prior approval by national supervisory 
authorities of increases in premium rates in generally not required. 

OTHER  FINANCIAL  SERVICES 

a) 
In application of the relevant EC Directives, Member States will make their best endeavours to 
consider within  12 months complete applications for licenses to conduct banking activities, through 
the establishment in a Member State of a subsidiary in accordance with the legislation of that Member 
State, by an undertaking governed by the laws of a third country.  In cases where such applications 
are refused, the Member State will make its best endeavours to notify the undertaking in question and 
give the reasons for the refusal  of the application. 

?>A 

GATS/SC/31/Suppl.4 
Page 24 

b)  Member States will  make their best endeavours  to respond without undue delay to requests  for 
• information by applicants on the status of complete applications for licenses to conduct banking activities, 
through the establishment in a Member State of a subsidiary in accordance with the legislation of that 
Member  State,  by an undertaking  governed  by the laws of a third country. 

c) 
In application of the relevant EC Directives, Member States will make their best endeavours to 
consider  within  6  months  complete  applications  for  licenses  to conduct  investment  services  in the 
securities field, as defined in the Investment Services Directive, through the establishment in a Member 
State of a subsidiary in accordance with the legislation of that Member State, by an undertaking governed 
by the laws of a third country.  In cases where such applications are refused,  the Member State will 
make its best endeavours to notify the undertaking in question and give the reasons for the refusal  of 
the application. 

d)  Member States will  make their best endeavours to respond without undue delay to requests for 
information  by  applicants  on the status of  complete  applications  for licenses to conduct  investment 
services in the securities area, through the establishment in a Member State of a subsidiary in accordance 
with the legislation of that Member State, by an undertaking governed by the laws of a third country. 

VL 

G E N E R AL A G R E E M E NT 

ON TRADE  IN  SERVICES 

GATS/EU3Ï 
15 April 1994 

(94-1115) 

EUROPEAN COMMUNITIES AND THEIR MEMBER STATES 

Final List of Article II (MFN) Exemptions 

(This is authentic in English only) 

EUROPEAN COMMUNITIES AND THEIR MEMBER STATES (continued) 

Sector or 
subsector 

Direct non-life  . 
insurance 

-C 

Financial services 

Description of measure 
indicating its inconsistency 
with Article II 
Measures based on a 
bilateral agreement between 
the European Communities 
and Switzerland on direct 
insurance other than life 
insurance.  This agreement 
provides on a reciprocal 
basis for freedom of 
establishment and the  right 
to take tip or pursue non-life 
insurance business for 
agencies and branches of 
undertakings whose head 
office is situated in the 
territory of the other 
contracting party. 
Measure granting favourable 
tax treatment (off-shore 
regime), in Italy to service 
suppliers trading with the 
countries to which the 
measure applies. 

| . 

Countries to which the 
measure applies 

Intended duration 

Conditions creating the 
need for the exemption 

Switzerland 

Indefinite 

10 years 

'. 

States in Central, Eastern 
and South-Eastern Europe, 
and all Members of the 
Commonwealth of 
Independent States 

Need to remove obstacles to 
the taking up and pursuit of 
non-life insurance business 
in the framework of an 
agreement between the 
European Communities and 
Switzerland on non-life 
insurance consistent with the 
provisions of paragraph 3 of 
the Annex of Financial 
Services 

"*-

The need to aid the countries 
concerned in their transition 
to a market economy. 

W O R LD  T R A DE 

ORGANIZATION 

. 

. 

• 

Trade in Services 

M/M 
3 December 1997 

(97-5431) 

DECISION ADOPTING THE FIFTH PROTOCOL TO THE 
GENERAL AGREEMENT ON TRADE IN SERVICES 

Adopted bv the Committee on Trade in Financial Services on 14 November 1997 

The Committee on Trade in Financial Services, 

Having regard  to  the  results  of  the  negotiations  conducted  under  the  terms  of  the  Second 

Decision on Financial Services adopted by the Council for Trade in Services on 21 July 1995 (S/I79), 

Decides as follows: 

1. 

To adopt the text of the "Fifth  Protocol to the General Agreement on Trade in Services". 

2. 
Commencing immediately and continuing until the date of entry into, force of the Fifth Protocol 
to  the  General  Agreement  on  Trade  in  Services,  Members  concerned  shall,  to  the  fullest  extent 
consistent  with  their  existing  legislation,  not  take measures  which  would  be  inconsistent  with  their 
undertakings resulting from these negotiations. 

3. 
The Committee shall monitor the acceptance of the Protocol by Members concerned  and shall, 
at  the  request  of  a Member,  examine  any  concerns  raised  regarding  the  application  of  paragraph  2 
above. 

5<r 

WORLD TRADE 

. 

ORGANIZATION 

• 

Trade in Services 

s/u$o 

12 December 1997 

(97-5544) 

DECISION OF DECEMBER  1997 ON COMMITMENTS IN FINANCIAL SERVICES 

Adopted bv the Council for Trade in Services on 12 December 1997 

The Council for  Trade in Services, 

Having regard to the Second Decision on Financial Services adopted by the Council for Trade 

in Services on 21 July 1995 (S/L/9), 

Noting the results of the negotiations carried out under the terms of that Decision, 

Having regard to the Decision adopting the Fifth  Protocol to the General Agreement on Trade 

in Services adopted by the Committee on Trade in Financial Services on 14 November 1997 (S/L/44), 

Decides as follows: 

If the Fifth Protocol to the General Agreement on Trade in Services (GATS) does not enter into 

1. 
force in accordance with paragraph 3 therein: 

(a) 

(b) 

Notwithstanding Article  XXI  of  the GATS,  a Member  may  during a  period  of  sixty 
days beginning on  1 March  1999, modify  or withdraw all or part of  the commitments 
on financial services inscribed in its Schedule. 

Notwithstanding  Article  II  of  the  GATS  and  paragraphs  1  and 2  of  the  Annex  on 
Article II  Exemptions,  a  Member  may,  during  the  same  period  referred  to  in 
paragraph 1(a),  list  in  that  Annex  measures  relating  to  financial  services  which  are 
inconsistent with paragraph 1 of Article II of the GATS. 

The Committee on Trade in Financial Services shall establish any procedures necessary for the 

2. 
implementation of paragraph 1. 

*b6 

ISSN 0254-1475 

COM(98) 659 final 

DOCUMENTS 

EN 

11  02  10  09 

Catalogue number  :  CB-CO-98-662-EN-C 

Office  for Official  Publications of the European  Communities 

L-2985 Luxembourg 

V