CETA and public services : in-depth analysis.
Date: 2017-02-13
Institutions: Directorate-General for External Policies of the Union
Subjects: Canada, European Union, cooperation agreement (EU), cooperation policy, economic cooperation, goods and services, investment, public service, trade agreement, trade agreement (EU)

CETA and
public services

IN-DEPTH ANALYSIS

EPRS | European Parliamentary Research Service
Authors: Laura Puccio, Wilhelm Schöllmann and Giulio Sabbati
Members' Research Service
February 2017 — PE 599.268

EN

EU-Canada negotiations for a Comprehensive Economic and Trade Agreement (CETA) started in May
2009  and  were  declared  concluded  in  September  2014. Subsequently  signed  in  October  2016, the
agreement's  overall  aim  is  to  increase  flows  of  goods,  services  and  investment between  the  two
partners. This in-depth analysis looks at the way and extent to which public services are protected by
the agreement.

PE 599.268
ISBN 978-92-846-0633-7
doi:10.2861/512580
QA-02-17-171-EN-N

Original manuscript, in English, completed in February 2017.

Data creation: EU: Laura Puccio; Canada: Wilhelm Schöllmann, Christopher Gabriel Wastian
Data revision: Laura Puccio and Odile Maisse
Graphs: Giulio Sabbati and Laura Puccio

Disclaimer

This  document  is  prepared  for,  and  addressed  to,  the  Members  and  staff  of  the  European
Parliament as background material to assist them in their parliamentary work. The content of the
document is the sole responsibility of its author(s) and any opinions expressed herein should not
be taken to represent an official position of the Parliament.

Reproduction and translation for non-commercial purposes are authorised, provided the source
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© European Union, 2017.

Photo credits: © tulpahn / Fotolia.

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CETA and public services

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EXECUTIVE SUMMARY

EU-Canada  negotiations  for  a  Comprehensive  Economic  and  Trade  Agreement  (CETA)
started in May 2009 and were declared concluded in September 2014. One of the main
debates surrounding CETA was the protection of public services. Activists, on both sides
of  the  Atlantic,  claimed  that CETA limits  governments' ability  to  create  and  regulate
public services, as well as to renationalise in case of failed liberalisation or privatisation.
Public services have therefore been insulated to some extent from CETA's liberalisation
effects with respect to cross-border trade (CBT) and investment flows (INV).

CETA liberalises CBT and INV, except in cases where reservations have been scheduled
in  the various annexes  to  the  agreement (negative  list  approach). Moreover, some
sectors were completely carved out, i.e. excluded from the scope of the agreement.

CETA has a public sector carve-out, which exempts 'services supplied in the exercise of
governmental authority' from the application of the chapter on trade in services, and
certain elements of the investment chapter. This carve-out is formulated along the lines
of  that in  the  WTO's  General  Agreement  on  Trade  in  Services  (GATS)  and 'is  usually
understood in a narrow sense', meaning that the carve-out is applicable to services under
governmental authority only (including the police and justice-related services, such as
judges, public attorneys, etc.).

The limits (and intrinsic rigidity) of the public sector carve-out have led the EU, along with
individual  Member  States, to introduce additional  reservations  for  specific  public
services so that these are protected even when they are offered in a competitive way
and  do  not fall  under  the  public  sector  carve-out. In  particular, the  EU  has entered a
general  public  utility  reservation  which  allows the  introduction  of monopolies  or
exclusive rights in sectors regarded as 'public utilities' (services d'intérêt général), such
as related scientific and technical consulting services, research and development (R&D)
services  on  social  sciences  and  humanities,  technical  testing  and  analysis  services,
environmental services, health services, transport services and services auxiliary to all
modes  of  transport. This reservation  does  not  apply  to telecommunications or to
computer  and  related  services. Another  reservation, targeting  health,  education  and
social services, is aimed at introducing restrictions to the selling of equity and assets of
an  existing public entity so  as  to  ensure that the  public  sector  in  this  field  cannot  be
bought back by the private sector if the Member State does not wish it. Several other
reservations were introduced, either limiting or allowing for future limitations to cross-
border trade and  investment  flows.  Some  of  these reservations preserve  certain
monopolies  or  exclusive  rights  currently  granted,  others (e.g. those  under CETA's
Annex II) enable  Member States to  further  regulate  these  services in  the  future. Such
reservations have  been  entered  for,  among  other  sectors, health  services,  education
services, social services, and environmental, energy and transport services.

In order to understand how a specific Member State has protected its public services, it
is necessary to look at the combination of reservations introduced by the EU and those
introduced by the Member State itself. As the extent of liberalisation of certain sectors
differs among Member States, some chose to introduce reservations in addition to those
introduced  by  the  EU, whereas another  Member State might  have  regarded a similar
service as falling under the public utilities carve-out (for example the management of
cemeteries). The  annexes  to  this  publication  give  a  detailed  overview of specific
reservations introduced by the EU and individual Member States in the area of public
services.

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TABLE OF CONTENTS

1. Background .................................................................................................................... 3

2. An introduction to trade and investment commitments in CETA................................. 5

3. The public sector and services commitments in CETA .................................................. 7

3.1. The limits of the public sector carve-out in trade agreements.............................. 7

3.2. The introduction of reservations for preserving public services and utilities........ 8

3.3. Detailing the reservations in CETA on major public services sectors................... 13

3.3.1. The EU main reservation public utilities .................................................................... 13

3.3.2. Health, social or education services:.......................................................................... 14

3.3.3. Health services specific reservation:.......................................................................... 15

3.3.4. Education services:..................................................................................................... 17

3.3.5. Social services:............................................................................................................ 18

3.3.6. Research and development services:......................................................................... 19

3.3.7. Environmental services and energy services: ............................................................ 19

3.3.8. Other services............................................................................................................. 21

4. Further rules applicable to public services.................................................................. 23

4.1. Introduction  to  public  monopolies,  the  granting  of  exclusive  rights  and  to  the
obligations connected to expropriation ...................................................................... 23

4.2. Rules on state-owned enterprises........................................................................ 23

5. Main references........................................................................................................... 25

6. Annex ........................................................................................................................... 25

6.1. Legend to the annexes ......................................................................................... 25

6.2. Reservations for the protection of public services or potential restrictions to the
private sectors in CETA Annex I................................................................................... 26

6.3. Reservations for the protection of public services or potential restrictions to the
private sectors in CETA Annex II.................................................................................. 27

introduce 'any  measure' regarding
6.4.  Reservations  preserving  the  right  to 
investment in CETA Annex II........................................................................................ 29

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List of main acronyms used

CBT:

CETA:

GATS:

INV:

NAFTA:

WTO:

Cross border trade in services

Comprehensive Economic and Trade Agreement

General Agreement on Trade in Services

Investments

North American Free Trade Agreement

World Trade Organization

1. Background
EU-Canada negotiations for a Comprehensive Economic and Trade Agreement (CETA)1
began in May 2009 and were concluded in September 2014. The agreement's overall aim
is to increase flows of goods, services and investment to the benefit of both partners.
For the European Union, CETA represents the first comprehensive economic agreement
with a highly industrialised Western economy that shares a similar set of values and a
similar  tradition regarding the  role  of  government  in  the  economy.  For  Canada,  once
ratified, CETA will be the most important agreement in terms of trade and investment
volumes after the  North  American  Free  Trade  Agreement  (NAFTA)2 and  promises  to
lower  its  dependency  on  the  US  business  cycle. CETA  regulates  trade  in  goods  and
services as well as investment relations between the EU and Canada. It further deals with
topics such as rules of origin, sanitary and phytosanitary rules, technical barriers to trade,
customs and trade facilitation, intellectual property rights, regulatory cooperation, trade
and  sustainable development  and  government  procurement.3 CETA  also  establishes  a
number of joint committees to accompany the implementation and further development
of rules initiated by CETA.

The EU and Canada are even more important to each other when it comes to trade in
services than they are for trade in goods. Here, the EU is Canada second major trading
partner (see Figures 1 and 2). In 2015, Canada was the sixth partner for EU exports in
services. In that year, the EU exported almost €16 billion and imported a little more than
€12 billion in trade in services (see Figure 3). Inward investment stocks (the total amount
Canadian companies invested in the EU in the past) amounted to €165.9 billion, while
outward  investment  stocks  (EU  investment  stocks  in  Canada)  reached €274.7  billion
(these figures include investments both in services and in goods).4

1 CETA
2 NAFTA
3 European Commission, CETA – Summary of the final negotiating results; W. Schöllmann, International
Agreements in Progress: Comprehensive Economic and Trade Agreement (CETA) with Canada, EPRS, 20
January 2017
4 Data source: DG Trade

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Figure 1 – Canada's main export and import partners in commercial services (in percentages)

Data source: WTO.

Figure 2 – EU trade in services with Canada (in million euros)

Source: Eurostat.

Several non-governmental organisations and activists have raised concerns regarding the
protection of public  services  from  the  liberalisation  commitments  taken  up by CETA.
Activists, on both sides of the Atlantic, have claimed that CETA limits governments' ability
to  create  and  regulate  public  services,  as  well  as  to  renationalise  in  case  of  failed
liberalisation or privatisation. The objective of this study is to shed some light on how
and to what extent public sector concerns are taken up in CETA.

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2. An introduction to trade and investment commitments in
CETA

To cover all relevant aspects, the General Agreement on Trade in Services (GATS), in force
since  1995,  provides  a  rather  broad  definition  of  what  constitutes  trade  in services.
According to the GATS, there are four ways in which services can be traded, known as
'modes of supply':

 Mode 1: cross-border provision;
 Mode 2: consumption abroad;
 Mode 3: commercial presence abroad;
 Mode 4: temporary movement of natural persons.

Box 1 – GATS modes for trade in services:
 Mode  1 refers  to  pure  cross-border  trade  in  services, in  which  the  producer  and
consumer do not meet in person. It is very similar to trade in goods. Examples are
the downloading of software products, the provision of online-banking or of book-
keeping services delivered via the internet by a foreign provider.

 Under Mode 2 the customer moves to the producer's location in order to consume
the service. Typical examples are tourism and participation in training activities or
healthcare abroad.

 Mode 3 includes a direct investment by a foreign service-provider in the consumer's
country.  Sales  by  that  subsidiary  are  counted  as  exports  by  the  service-provider's
home country to the consumer's country. An example is the establishment of a local
branch by a foreign bank, restaurant chain or business consultancy.
In services trade under Mode 4, the supplier temporarily moves to the consumer's
country in order to provide the service, as with information technology specialists
who  are  sent  temporarily  from  their  home  to  the  consumer's  country  in  order  to
install a new computer network.5



CETA contains separate chapters for cross-border trade in services – Mode 1 (Chapter 9),
investment – Mode  3  (Chapter  8)  and  temporary  stay  of  professionals – Mode  4
(Chapter 10). The agreement also contains special rules for specific services, in particular:
financial  services  (Chapter 13),  international  maritime  transport  services  (Chapter 14)
and telecommunications (Chapter 15).

To liberalise cross-border trade in services and investments, the EU and Canada opted
for the 'negative list' approach.6 This means that unless a reservation is explicitly taken
up,  trade in  services and  investment  are  liberalised so  that Canada  and  the  EU give
market access, national treatment and most-favoured nation (MFN) status to enterprises
and investors from the partner area.

 Market access excludes imposing quantitative measures limiting the number of
foreign enterprises, an investment's value, the quantity of output, the extent of
foreign  capital  participation,  or  the  number  of  employees.  Conceding  market

5 See for instance Schöllmann (2015) for further information on economic concepts surrounding trade in
services.
6 European Commission, Services and investment in EU trade deals: using 'positive' and 'negative' lists,
April 2016

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access  bans  quotas,  monopolies,  exclusive  rights,  and  economic  needs  tests
(where a foreign competitor is only permitted if there is a proven economic need
for  a  new  competitor  entering  the  home  market).  It  also  forbids  prescribing  a
certain legal form for a foreign enterprise.

 National treatment assures that foreign enterprises are treated by governments

no less favourably than domestic ones.

 Most-favoured  nation (MFN)  status stipulates  that  an  enterprise  from  the
partner country is treated no less favourably than an enterprise from any third
country in like situations (i.e. enterprises from the EU and Canada always get the
best available treatment in the partner area).



The parties  also  agree  not  to  impose performance  requirements,  such  as  a
mandatory level of exports or domestic content (Article 8.5) and not to require
that senior management or board of director positions are taken up by people
of any particular nationality (Article 8.8).

The  negative list approach means that  if  the  EU  or  Canada  do not  intend  to open  a
specific  service to  competition from  the  partner  area or  want  to  reserve  the  right  to
introduce specific  regulatory measures  in  violation  of  one  of  the  above-mentioned
principles, such as market access and national treatment, a reservation must be placed
on that specific service, unless the service is completely carved-out from the application
of CETA rules on services and investments.

Box 2 – Carve-outs in CETA

Complete  carve-out  (i.e.  carve-out  from  the  scope of  any  of the trade  in  services  and
investment chapters) is granted to:

services supplied in the exercise of governmental authority (public service carve-out);
audio-visual services for the EU;
cultural industries for Canada;




 public procurement;



subsidies or other government support provided for services and investments;
'air services, related services in support of air services and other services supplied by
means of air transport' (with some exceptions).

Reservations are contained in CETA Annexes I and II.7 Reservations introduced in CETA
Annex  I,  unless  expressly  mentioned  otherwise, are  subject  to  standstill  and  ratchet
effects.  Standstill  means  that  no  restrictions  other  than  those  contained  in  the
reservation can be applied in the future (i.e. the current status of liberalisation is locked
in).  Ratchet  means  that any future  liberalisation  measure  cannot  be  taken  back.
Reservations taken up in CETA Annex II are subject to the standstill, but not to the ratchet
effect, enabling a 'policy space'8 for possible future changes, in liberalisation policy for
instance. Standstill and ratchet provisions are not explicitly mentioned in the annexes (as
is, for example, the standstill for trade in goods in Article 2.7) but are effective on account
of the specific formulations in the chapters on investment (Article 8.15) and cross-border
trade in services (Article 9.7).

7 Annex III contains Canadian reservations for financial services, while the EU covers financial services in
Annexes I and II).
8 Cecilia Malmström, CETA: An Effective and Progressive Deal for Belgium and Europe, 20 September 2016

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3. The public sector and services commitments in CETA

3.1. The limits of the public sector carve-out in trade agreements

There is no separate chapter on public services. CETA introduces a public sector carve-
out (Articles 8.2 and 9.2) that exempts activities or services 'supplied in the exercise of
governmental  authority'  from  the  application  of  the  chapter  on  trade  in  services  and
certain elements of the investment chapter. These are defined as services or activities
'carried out neither on a commercial basis nor in competition with one or more economic
operators' (Articles 8.1 and 9.1).

The wording used for that carve-out is exactly the same as the one found in the GATS,
GATS Article I (3) (b) and (c).9 In order to understand what is meant by 'activities in the
exercise of governmental authority', it is therefore necessary to refer to interpretations
of the GATS provisions.10

In this way, a public service falling under the carve-out must comply with three main
conditions:







It  must  be  supplied  in  the  exercise  of  governmental  authority: The  first
interpretation  problem  is  whether  the  service must  be  exercised directly by
governmental authorities or whether it can imply a looser governmental connection
(delegated  by  governmental  powers).  An  even  broader  interpretation  suggested
focusing on the public function nature of the service.

It should not be delivered on a commercial basis: The main interpretation problem
here is to define whether a service delivered on a non-commercial basis entails any
activity not provided upon the condition of a direct payment (narrow definition) or
includes also activities that are not remunerated on a commercial basis, i.e. in a non-
profit-seeking manner (broader definition).

It should not be in competition with one or more economic operators: On this last
point, what the term 'in competition with' means, is open to discussion; i.e. does it
include firms providing exactly the same product/service (strict likeness definition)
or does it also include firms whose services can be substituted for the those of the
monopoly  holder  (substitutability  definition)?  Some  scholars  have  argued  for  the
latter definition including suppliers of services or of goods that can be substituted for
each other.11 Moreover while scholars have debated the definition of the term 'in
competition with', they have not given attention to the term 'economic operators'.
What is an 'economic operator'? If a non-governmental organisation is providing the
same  service  as  the  public  monopoly, should it  then be  called  an 'economic
operator'?

If  the  narrow  definition  applies for  all  the  above conditions,  then  the  carve-out  is
applicable only to services under governmental authority such as the police or justice-
related services (judges, public attorney). If a broader definition could be applicable, then

9 GATS text
10 There is a lack of WTO practice on this matter. The clause has been cited twice in dispute settlement
cases but without in-depth analysis of its meaning. See: Rüdiger Wolfrum, Peter-Tobias Stoll and Clemens
Feinäugle, WTO Trade in Services, Max Planck Commentary on World Trade Law, 2008.
11 B. Natens and J. Wouters, The scope of GATS and of its Obligations, working paper of the Leuven Centre
for Global Governance Studies, 2013

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a monopoly with exclusive rights, which would sell the services to citizens on a not-for-
profit basis, would be covered.

Table 1 – Differing interpretations of GATS public sector carve-out, formulated by Krajewski

Interpretation approaches Main interpretation features/

instruments/ rules

Interpretation  rules  in  the
Vienna Convention  on  the
Law of Treaties

The in dubio mitius
approach

Restrictive interpretation of
exceptions

'Purposive' or teleological
interpretation

and 

(using 

contextual
Textual 
the
interpretation 
provisions text, the agreement
to
text,
and
subsequent 
preparatory work)

including  annexes,

practices 

In  the  case  of  doubts  the
interpretation  chosen  is  the
one 
less  restrictive  for  the
sovereignty of the state.

In  the  case  of  doubts  the
interpretation  is  the  one  that
adopts  a  narrow  definition  to
the  exception  to  preserve  a
larger  scope  of  commitments
taken under the agreement.

interpretation 

The 
chosen
depends on the main objective
of the agreement.

Conclusions  on 
interpretation

the

carve-out

This  approach  does  not  clarify  the
scope  of  the  public  sector  carve-
out. It can give a narrow or a broad
meaning to Article I:3 (b) and (c) of
GATS, depending  on  how  you
define  a  service  provided  on  a
commercial basis.

This  approach  leads to  a  broad
interpretation  of  the  carve-out,
therefore including any activity that
provides the service at a rate below
costs.

This  approach points to  a  narrow
interpretation  of  the  carve-out,
therefore  including  only  activities
rendered without a direct payment.

If  the  interpretation  of  the  GATS
provisions  gives greater weight  to
the objective of liberalisation, then
the carve-out would be interpreted
narrowly.

the  objective  of  ensuring
is
important
is

If 
regulatory  flexibility 
considered  a  more 
objective  then  the  carve-out 
interpreted broadly.

in  GATS 

Source: M. Krajewski, Public services and the scope of the General Agreement on Trade in Services (GATS),
COIEL, 2001.

3.2. The introduction of reservations for preserving public services and
utilities

Because  of  the  uncertainty  regarding  the  scope  of  the  public  carve-out, the  EU
introduced  additional  reservations  for  specific  public  services in  order  to  be  able  to
further regulate these services even when they are offered in a competitive way (and
thus do not  fall  under the  public  sector  carve-out)  or to provide,  for  the  reservations
placed in CETA Annex II, for the possibility to re-nationalise services at some point in the
future  (see  below). Articles  8.15 provides  for parties to  be  able  to place  reservations

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regarding  their  commitments  on  market  access,  performance  requirements,  national
treatment,  MFN  and  senior  management  and  boards  of  directors  with  respect  to
investment from the partner area. For trade in services, Article 9.7 likewise provides for
possibilities  regarding  commitments  on  national  treatment,  MFN  and  market  access.
Therefore, the reservations  in  the  annexes  contain exceptions  to  the  obligations  the
parties agreed on in the main chapters on trade in services and investment. In particular,
CETA Annex 
liberalisation
I contains  reservations  for  existing  measures  and 
commitments, and CETA Annex II, reservations for future measures.12 The EU introduces
reservations that are applied to the EU as a whole (unless otherwise specified) and each
Member State of the EU was given the possibility to introduce individual reservations to
complement the EU  reservations  or to  cover additional  sectors. Each  entry  in  the
schedule of reservations is specific. It names one or more aspect it is valid for (market
access, national treatment, MFN, performance requirements, senior management and
boards  of  directors).  It  also states if it relates  to  investment,  cross-border  trade  in
services (CBT) or both, and what specific measures or series of measures the EU, Canada
want to have  the  liberty  of  taking,  and  at  what  level  (EU/Canadian  federal level, or
Member State/province/territory level).

Box 3 – Examples of reservations:
Reservations can:


limit the number of enterprises that may carry out a specific economic activity
(infringement of commitments concerning market access);

 demand that an investor achieve a given level of local content (infringement of



commitments concerning performance requirements);
treat investors from the partner area less favourably than domestic enterprises
(infringement of commitments concerning national treatment);

 decide not to accord the best available international treatment in like situations
to enterprises from the partner area (infringement of MFN commitment); or
 demand that members of senior management or the board of directors are of a
particular  nationality  (infringement  of  the  commitment  regarding  senior
management and boards of directors).

Figure 3 below shows the number of reservations introduced at EU and Member State
level in CETA Annex I and in CETA Annex II.

12 Annex II may cover areas where legislation exists and is in violation of the treaty but it also allows for
future  more  restrictive  measures,  whereas Annex  I, with a few exceptions, applies  only  to  current
measures and protects only the current level of restrictiveness in the prescribed sector.

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Figure 3 – Total number of EU and Member State reservations in CETA Annexes I and II

Source: EPRS.

In a dataset established to analyse the various reservations on services in CETA, EPRS
constructed a dummy variable equal to one, every time the reservation introduced in
CETA Annex I or II refers clearly to a public or private concern.13 Figures 4 and 5 below
show the total number of reservations that refer at EU and Member States level to this
public or private concern respectively for CETA Annexes I and 2. Annexes 6.2 and 6.3 of
this study provide a detailed analysis of these reservations, looking at whether they cover
both cross-border trade and investments or only one of the two chapters and whether
they cover national treatment, market access, performance requirements and the senior
and management board rule.14 Beyond these reservations, in CETA Annex II there are a
certain  number  of  reservations  that  allow  for  the  introduction  of 'any regulatory
measures' for specific sectors, thus allowing also for measures with a public or private
aim if necessary. Annex 6.4 of this study covers in detail those reservations that refer to
the right to introduce 'any measures' with respect to foreign investments.

13 By public or private concern, we mean a reservation that reserves the right to introduce any measure
with respect to privately or publicly funded services, specifically protects an existing monopoly or exclusive
rights, or otherwise reserves the right to introduce monopolies or exclusive rights.
14 Some of these reservations also introduced reservations on MFN or on other obligations applicable to
international maritime transport services.

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Figure 4 – Number of public or private EU or Member State reservations in CETA Annex I

Source: EPRS.

Figure 5 – Number of public or private EU or Member State reservations in CETA Annex II

Source: EPRS.

Figures 4 and 5 show that while the EU has introduced a number of reservations directly
targeting public and private issues, a certain number of reservations are also introduced
at Member State level. It is therefore important to look at both levels of protection to
understand the level of protection possible for each Member State regarding its public
services. For the EU and for the Member States most reservations with a public or private
dimension  are  found  in CETA Annex  II,  which  is not  subject  to  the  ratchet  clause and
allows for the introduction of future restrictions. Luxembourg and Latvia do not have any
individual reservations with a public or private dimension beyond those introduced by
the EU.

Most of the public or private reservations concern education, health, and social services
(see Figures 6 and 7), but other public utilities such as energy and environmental services
(soil  management,  services  for  the  collection  and  purification  of  water,  waste

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management, recycling) are also covered by reservations. Some reservations were also
applied  to  preserve  exclusive  rights  in  certain  transport  services  (in  particular  certain
water transportation services). Finally, reservations were introduced to preserve some
areas  where  public  funds  are  provided  (such  as  research  and  development)  or
distribution services that are subject to monopolies in certain Member States because of
public concerns (alcohol or tobacco retailers).

Figure 6 – Total number of EU and Member State reservations in Annex I of CETA by sector
and total number of reservations by sector covering a public or private concern

Source: EPRS.

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Figure 7 – Total EU and Member State reservations in Annex II of CETA by sector and the total
number of reservations by sector covering a public or private concern or granting the right to
introduce 'any measure'

Source: EPRS.

3.3. Detailing CETA reservations applying to major public service sectors

The tables in Annexes 6.2 and 6.3 of this analysis provide for a detailed analysis of those
reservations that refer clearly to a public or private concern, showing which obligations
and chapter they cover (cross-border trade or investment). By public or private concern
is  meant a  reservation  that either  reserves  the  right  to  introduce  any  measure  with
respect  to  privately or  publicly  funded  services, specifically  protects  a  monopoly  or
exclusive rights that have been granted, reserves the right to introduce monopolies or
exclusive rights, reserves the service in question to a governmental agency, or makes it
subject to governmental appointment. The table in Annex 6.4 concerns sectors in which
the EU and its Member States have retained the right to introduce any measure with
respect  at  least to investment flows15 thus also allowing  the introduction of public or
private considerations.

3.3.1. The main public utilities covered by an EU reservation
At the very beginning of CETA Annex II, the EU reserves the right to restrict market access
for investments in 'services considered as public utilities at a national or local level'. This
reservation therefore covers public  utilities  for all  sectors  even  though  it  specifically
mentions: scientific and technical consulting services, research and development (R&D)
services  on  social  sciences  and  humanities,  technical  testing  and  analysis  services,
environmental services, health services, transport services and services auxiliary to all
modes of transport. This list is non-exhaustive. The fact of not giving an exact definition
allows  a  broader  scope for the  exception.  Only  telecommunications,  computer,  and

15 The reservations can also cover cross-border trade.

CETA and public services

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related services are explicitly excluded from the scope of the reservation. The reservation
allows  the  introduction  of  public  monopolies  or  exclusive  rights  granted  to  private
operators. This reservation is applicable only for investment. It does not limit the cross-
border  trade  in  those  services,  for  which  additional  reservations may  have  been
introduced on a sector-specific basis.

3.3.2. Health, social or education services
There are several EU and Member State reservations covering health, social or education
services in CETA Annex I and CETA Annex II as shown in Figures 8 and 9. Many of these
reservations have a public/private dimension has shown by Figures 8 and 9.

Figure 8 – Total EU and Member State reservations for health-related, education and social
services in Annex I of CETA by sector and total number of reservations covering a public or
private concern

Source: EPRS.

CETA and public services

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Figure 9 – Total EU and Member State reservations for health-related, education and social
services in Annex II of CETA and total number of reservations covering a public or private
concern or granting the right to introduce 'any measure'

Source: EPRS.

A first important reservation covers all three sectors: health, social and education. This
first reservation,  contained in CETA Annex  I, allows  the  EU  or  any  Member  State  to
impose limitations on the ownership of equity interests or assets of state enterprises or
an  existing  governmental  entity  providing  health,  social  or  education  services  when
selling  or  disposing  of  equity  interests. Limitations may  also  be  imposed on  the
ownership of such interests or assets, and on the possibility for owners of such interests
and assets to control any resulting enterprise. In other words, this first reservation allows
the state  to  prohibit the privatisation  of  public  institutions  when  opening  the  public
institution to private funding. The importance of this reservation is also highlighted by
the fact that, even though the measure is contained in CETA Annex I, it does allow for
the future introduction of limitations on the selling of ownership of equity assets and
interest in such services, and on the number of suppliers, while also imposing nationality
requirements. Measures adopted in the future will be considered as existing measures.

3.3.3. Specific reservation for health services
There  are  noticeable  EU-level  reservations in CETA Annex  II with  respect  to  health
services and one on human health services and social services.

A reservation with respect to health services allows the introduction of any measure with
regard to the supply of health services receiving public funding and preserves the right
to adopt or maintain any measure with regard to all privately funded health services,

CETA and public services

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other than privately funded hospital, ambulance, and residential health facility services
other  than  hospital  services.  It  also makes  it  possible to  impose  the requirement  of
concessions  to private  participation  in  the  health-related  network and  to  apply  an
economic needs test. The reservation allows any measure with respect to investments,
restricting  commitments  made  for  market  access,  national  treatment,  performance
requirements, senior  management  and  boards of  directors.  It does  not  cover  cross-
border trade in services, which is covered by a separate EU reservation covering human
health and social services. National complementary reservations are found for Austria
(AT), Belgium  (BE), Bulgaria  (BG), Cyprus  (CY), Czech  Republic  (CZ), Finland  (FI),
France (FR), Malta (MT), Poland (PL), Slovenia (SI), Slovakia (SK) and the United Kingdom
(UK). As shown in the table, those reservations are aimed at covering some or all services
excluded from the EU reservation, such as ambulances, residential health services and
hospitals. AT and SI introduce the reservation only for ambulance services; Germany (DE)
introduces  it for  hospitals;  BE  and the  UK  introduce  it  for ambulances  and  residential
services  other  than  hospitals;  MT,  SK,  FI,  UK,  CZ,  CY  and  BG  for  hospital  services,
ambulance  and  residential  services.  SI  further  introduced  a  reservation  under CETA
Annex I to preserve a state monopoly with respect to specific medical services and FR
introduced an additional reservation under CETA Annex II to be able to introduce any
measures with respect to laboratory testing.

In a reservation on human health and social services, the EU restricts market access and
national treatment for cross-border trade in services for human health services. The EU
reserved the right to adopt or maintain any measure requiring the establishment and
physical presence in their territory of suppliers and restricting the cross-border supply of
social  services,  including  services  and  activities  related  to a public  retirement  plan  or
statutory  system  of  social  security.  For health services,  the  EU,  with  the  exception  of
Hungary (HU), (which introduced a separate reservation), reserves the right to adopt or
maintain any measure requiring the establishment or physical presence of suppliers in
their  territory  and  restricting  the  cross-border  supply  of  health  services  from  outside
their  territory.  HU  and  the  UK  introduced  a  national  reservation  for  cross-border
services.

The  two  reservations  above  do  not  cover  health-related  practices  such  as  doctors or
dentists, which are covered by other reservations. The EU (with the exception of BE, FI,
the Netherlands (NL) and Sweden (SE)) has not opened up the cross-border supply of all
health-related  professional  services. These,
including  services  provided  by  medical
doctors,  dentists,  midwives,  nurses,  physiotherapists,  paramedics  and  psychologists,
require  residency.  These  services  may  be  provided only by  natural  persons  physically
present  in  the  territory  of  the  EU. Complementary national reservations have  been
introduced by AT, BE, BG, FI, FR, MT, SK and the UK. While the NL and SE did not introduce
any national reservation on human health-related services, FI did introduce a reservation
allowing it to introduce any measure in the future restricting investments or cross-border
trade of such services. Similarly BE introduced a specific reservations in order to reserve
the  right to  introduce  any  measure  restricting  cross-border trade of  medical  services.
Moreover, those EU Member States for whom the EU reservation applies also introduced
complementary  reservations.  Some  of  these  national  complementary  reservations
extend the EU reservation on investments by adding further restrictions to market access
in investments; this is the case of the AT reservation, which also requires nationality, and
the  UK  reservation, which  makes  establishment  of  doctors  under the National  Health

CETA and public services

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Service subject  to  planning.  FR  and  MT add further  requirements16 and also  impose
restrictions  on  cross-border  movements. The UK, like BE,  introduces  a  reservation
allowing restriction to cross-border movements. SK simply imposes a restriction allowing
cross-border movement only to natural persons (i.e. no firms). Greece (EL) introduces a
similar reservation with respect to dental technicians only. Finally, CZ and BG introduce,
like as FI, a reservation allowing for the adoption of any measure restricting both foreign
investments  and  cross-border  movements of  economic  actors for  health-related
services.

3.3.4. Education services
The EU also reserved the right to introduce any measure with respect to market access
for  investment  and  cross-border  trade  with  regard  to  the  supply  of  all educational
services that  receive  public  funding  or state  support.  This  reservation  further  allows,
where privately funded education has been permitted, private operators to be subject
to the requirement of holding a concession. Furthermore the EU (with the exception of
CZ, NL, SE and SK) reserves the right to adopt any measure with respect to the supply of
privately funded education services other than those classified as primary, secondary,
higher or adult education. Again these national reservations are there to allow further
protection  for those  EU  Member  States  that  wished  for  particular  restrictions  with
respect  to  primary,  secondary  and/or  higher  private  education. Such  complementary
national reservations can be found for AT, BG, CY, CZ, FI, FR, Italy (IT), MT, Romania (RO),
SE, SI and SK. CZ imposes both an establishment obligation for higher education services
(in CETA Annex I) and the requirement that the majority of the executive board be Czech
nationals (CETA Annex  II).  SK  has similar  reservations in CETA Annex  I and II but  also
requires  EEA  residency  for  private  education  providers  other  than  post-secondary
technical and vocational education. Nationality restrictions on board members are also
introduced by EL and SI; SI further retains the right to limit cross-border trade (CBT). MT
introduces a licensing obligation for CBT and further retains any measure with respect to
all education services that are privately owned; CY, FI and RO also retain any measure
with  respect  to  all  education  services  that  are  privately owned,  while  SE  introduces a
similar all-encompassing reservation but only for education services that are privately
owned and which are entitled to public funds. IT requires establishment and retains the
right to limit cross-border trade for primary, secondary and higher education in addition
to introducing  an  economic needs test  for  investment  in  higher  education. Spain  (ES)
requires  an  authorisation  for  investment  in  universities  issuing  recognised  diplomas,
while AT requires an authorisation for CBT and investment flows (INV) only for applied
sciences in higher education and retains the right to introduce any measure for all higher
education and adult education services. FR introduces a reservation under CETA Annex I
introducing a nationality requirement to teach in private funded institutions only.

16 FR introduces a quota for foreign practice of some medical services and imposes a specific certain legal
form for the practice of such services. MT has a requirement both of nationality and of authorisation to
practice.

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Table 2 – Reservations for education services
Private
education
services
Type of flow CB

Primary education

INV

INV

CB

Secondary education

Higher education

Other

CB

INV

CB

INV

EU

Concession

Concession

Concession

Concession

Austria

EU reservation
only

Bulgaria

Any measure

EU reservation
only
Commercial
presence and
cooperation with
Bulgarian
schools

EU reservation only EU reservation only

Commercial
presence and
cooperation with
Bulgarian schools

Any measure

Concession
Any measure and
authorisation
needed for applied
sciences higher
education services

Concession
Any measure and
authorisation
needed for applied
sciences higher
education services

Any measure

Any measure

Cyprus

Any measure

Any measure

Any measure

Any measure

Any measure

Czech
Republic

EU reservation
only

Majority of
board from CZ

EU reservation only

Majority of board
from CZ

EU reservation only

Greece

EU reservation
only

Majority of
board from EU

EU reservation only

Majority of board
from EU

EU reservation only

Any measure

Any measure

EU reservation
only

EU
reservation
only

EU reservation
only

EU
reservation
only

Any measure

Any measure

EU reservation
only

EU reservation
only

EU reservation
only

EU reservation
only

Majority of
board from
CZ

EU
reservation
only

EU
reservation
only
EU
reservation
only
EU
reservation
only

Any measure
Establishment
requirement +
majority of board
from CZ
Only provided by
public law
governmental
entities
Authorisation
required for
universities issuing
recognised
diplomas

Spain

France

EU reservation
only

EU reservation
only

EU reservation only EU reservation only

EU reservation only

Nationality to
teach

EU reservation
only

Nationality to
teach

EU reservation only Nationality to teach EU reservation only

Italy

Any measure

Establishment
requirement

Any measure

Establishment
requirement

Malta

Any measure

Any measure

Any measure

Any measure

Any measure
Licensing
obligation + any
measure

Establishment +
economic test

EU reservation
only

Any measure

Any measure

Any measure

Romania

Any measure

Slovakia

EU reservation
only

Slovenia

Any measure

Any measure
EEA residency +
majority of
board must
Slovak
Nationality
requirement +
right to request
establishment

Any measure

Any measure

Any measure

Any measure

Any measure

Any measure

EU reservation only

Any measure

EEA residency +
majority of board
must Slovak
Right to request
establishment +
majority of board
must be Slovenian

EU reservation only

Any measure

Establishment +
majority of board
must Slovak
Right to request
establishment +
majority of board
must be Slovenian

EU reservation
only

EU
reservation
only

Any measure

Any measure

Finland

Sweden

Any measure

Any measure

Any measure

Any measure

Any measure

Any measure

Any measure

Any measure

Any measure

Any measure

Any measure

Any measure

Any measure

Any measure

Any measure

Any measure

For all other Member States, no national reservations apply on top of the EU reservations.

Source: EPRS.

3.3.5. Social services
The  reservation  on  the investment  dimension  of  social  services in  turn  restricts
commitments made for market access, national treatment, performance requirements
and senior management and boards of directors. Here, the EU reserved the right to adopt
or maintain any measure with regard to social services receiving public funding including
public  retirement  plans  or  statutory  social  security.  The  reservation  allows  the
participation of private operators based on concessions, on a non-discriminatory basis,
for which an economic needs test may apply. The combination of this reservation with
the  one  covering health,  education  and  services (discussed  above  on  page  16) means
that through public concessions private (including foreign) operators can deal with social
security  schemes, but  that physical  presence  and  establishment  can  be  required  and
cross-border trade can be restricted. At the same time, the EU has reserved the right to
introduce any measure with respect to both cross-border trade and investment in social
security and public retirement schemes so that the participation of private operators is
only a possibility not an obligation. Complimentary national reservations are applicable
for BE, CY, CZ, DE, Denmark (DK), EL, ES, FI, FR, HU, Ireland (IE), IT, Lithuania (LT), MT, PL,

CETA and public services

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Portugal (PT), RO, SI, SK, and the UK. CZ, FI, HU, MT, PL, RO, SK and SI retain the right to
adopt  or  maintain  any  measure  with  respect  to  the  supply  of  privately  funded  social
services, while BE, CY, DK, FR, DE, EL, IE, IT, ES and UK retain the right to adopt or maintain
any measure with respect to the supply of privately funded social services other than
services relating to convalescent and rest houses and old people's homes. LT restricts
cross-border trade of social services receiving public funding only. DE also introduced a
reservation to protect its social security system.

3.3.6. Research and development services
CETA Annex I also has a reservation for investment and trade in services in research and
development  services,  protecting  publicly-funded research and  development  (R&D)
services. For publicly funded R&D, services benefitting from funding provided by the EU
at EU level, exclusive rights or authorisations may be granted only to nationals of the
Member  States or to legal persons  of  the  EU  having  their  registered  office,  central
administration or principal place of business in the EU. For publicly funded R&D services
benefitting from funding provided by a Member State, exclusive rights or authorisations
may be granted only to nationals or to legal persons of the Member State concerned.
Legal persons must have their headquarters in that Member State.

3.3.7. Environmental services and energy services:
Several EU countries introduced reservations with respect to the energy sector as shown
in Figures 10 and 11 below. A few cover a public or private dimension, while several allow
for the introduction of any measures with respect to investment flows.

Figure 10 – Total EU and Member State reservations for energy and environmental services in
Annex II of CETA and total number of reservations covering a public or private concern or
granting the right to introduce 'any measure'

Source: EPRS.

CETA and public services

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Figure 11 – Total EU and Member State reservations for environmental and energy services in
Annex I of CETA by sector and total reservations covering a public or private concern

Source: EPRS.





Environmental  services: The  EU  has  included  a  reservation  allowing  the
introduction  of  any  measure  limiting market access  and national treatment
obligations  for  services  relating  to  the  collection  and  purification  of  water
including  purification,  distribution  to  household,  industrial  and  other  users  as
well as the supply of drinking water and water management. DE has introduced
a reservation for two main environmental services: waste management and soil
management.  The  measures  allow  DE  to  introduce  any  measures  prohibiting
cross  border  trade and  measures  allowing  the  introduction  of  monopolies  or
exclusive  supplier's  rights.  SE  also  reserved  the  management  of  waste  and
recycling  allowing  the state  to  introduce a limit on private  suppliers  in  these
sectors. Other reservations that restrict the provision of environmental services
by Canadian providers (through, for example, establishment requirements or the
obligation to use a specific type of legal form) were introduced in CETA Annex I
by CZ, SK and SE.
Energy services: Some  restrictions  target  the  protection  of  certain  national
monopolies This is the case for example of the reservation introduced by MT to
preserve the EneMalta monopoly, and the Dutch reservation preserving public
ownership of electricity and gas pipeline networks. Several Member States have
reservations on the introduction of any measure:17 (i) with respect to electricity
generation and/or processing and/or transportation of nuclear material (BE, BG,
DE, HU, AT, FI, SE); and (ii) with respect to certain services related to electricity
generation  and/or  gas  and/or  oil  (BE,  FR,  HU,  PT,  FI). Most  of  the above-
mentioned reservations involve CBT and INV.18

17 Please also refer to the tables in Annex 6.4.
18 See Annexes for more detail.

CETA and public services

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The  EU  introduced a general  reservation  with  respect  to  electricity  and  gas
transmission systems, as well as oil and gas pipeline transport, in CETA Annex II.
The objective of this EU reservation is not so much to preserve public utilities as
to ensure the security of the EU supply of energy. The reservation envisages that
where  a Member  State allows  foreign  ownership  of  gas  and  electricity
transmission  systems,  the  EU  reserves  the  right  to  adopt  any  measure  with
respect to enterprises controlled by Canada or by a third country that accounts
for more than 5 % of the EU's oil and natural gas or electricity imports.

3.3.8. Other services

 Postal services: CETA Annex I contains a reservation with regard to postal services
that includes  the  possibility  to  subject  to  a  licensing  system  those  services  for
which  general  universal  service  obligations  exist.  Moreover  it  permits  the
restriction  of  market  access  for  investment  and  cross-border  trade  of  services
with  respect  to  the  organisation  of  the  siting  of  letter  boxes,  the  issuing  of
postage stamps and the provision of registered mail services in accordance with
national legislation.



Transport services: There  are  several  reservations  connected  to  transport
services  (requiring  licensing,  economic  tests or  reciprocity  for  market  access),
however very few of these explicitly introduce a private or public dimension (the
right  to  introduce  monopolies  or  exclusive  rights was already preserved  in the
EU's public utility reservation) as shown in Figures 12 and 13. Nevertheless, some
Member  States have  introduced  reservations to  protect  some  already  existing
exclusive rights or monopolies or public service obligations (EL, LT, MT and FI) or
limiting the possibility for foreigners to obtain exclusive rights (AT).

Figure 12 – Total EU and Member State transport-related reservations in Annex I of CETA by
sector and total number of reservations covering a public or private concern

Source: EPRS.

CETA and public services

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Figure 13 – Total EU and Member State transport-related reservations in Annex II of CETA and
total number of reservations covering a public or private concern or granting the right to
introduce 'any measure'

Source: EPRS.

 Distribution  services: Some  distribution  services  were  reserved to preserve  a
Member State monopoly  on  the  distribution  of  certain  products  (tobacco,
alcohol), e.g. SE, ES and FR. Other Member States have retained the possibility to
introduce  any  measure  in  certain  distribution  sectors  (again  for  tobacco,
pharmaceutical or alcoholic beverages), such as SE and FI.

 Other  governmental  services: Finally,  some  other  sectors  were  subject  to
reservations by some Member States in view of their social function. For example,
placement  services  were  reserved  by  the  EU  and  by  several Member  States
preserving the right to introduce 'any measure' (EU, AT, BG, CZ, DE, EE, CY, LT, LV,
MT, PL, PT, RO, SI, SK, FI, IT). DE also retained the right to introduce and maintain
a monopoly over the Federal Labour Agency. FR preserved its state monopoly in
placement services under a reservation in CETA Annex II. Similarly three Member
States (DE, PT and SE) reserved the right to introduce any measure with respect
to  funeral,  cremation  and  undertaking  services. FI  introduced a  reservation
clarifying  that  cremation  services  and the operation  of  cemeteries  can  be
performed only by public bodies, parishes, religious communities or non-profit
organisations. FI introduced that reservation because it felt that, owing to their
specific national context, these services did not fit properly within the definition
of  the EU-wide public  sector  carve-out.  In  other Member  States where  these
services (such as management of cemeteries) are clearly covered by the carve-

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out  as  governmental  services,  there  was  no  need  to  introduce  a  further
reservation.

4. Further rules applicable to public services

4.1. Introduction to public monopolies, the granting of exclusive rights
and to the obligations connected with expropriation

As  seen  above,  the  EU  entered  a  reservation  allowing  the  introduction  of  public
monopolies or the granting of exclusive rights to private operators for the provision of
public services  and  public utilities. Re-introducing  public  monopolies  or  granting
exclusive  rights  can involve expropriating  enterprises,  be  they  domestic  or foreign. In
addition to provisions in national law, CETA provisions on expropriations are valid for the
EU and Canada when dealing with investors from the partner area.19

As expropriation conflicts with the property rights of the individual, CETA provides only
for legal  expropriation,  i.e.  expropriation is  allowed  only  if  it  complies  with  specific
requirements.  Therefore  CETA stipulates,  just like any  other  investment  agreement,20
that parties 'shall not nationalise or expropriate a covered21 investment either directly,
or  indirectly' unless they  respect  the  conditions  specified  in Article  8.12.  These  rules
stipulate  that  expropriation needs  to  be conducted  for  a  public  purpose,  under  due
process  of  law,  in  a  non-discriminatory  manner  and  against  payment  of  prompt,
adequate  and  effective  compensation. The  compensation  is  equal  to  the  fair  market
value of the investment at the time immediately before expropriation. Annex 8-A (p. 331)
further  specifies  the parties' understanding  of  what  direct  and  indirect  expropriation
means and the most common factors that need to be taken into account when assessing
whether a measure constitutes an indirect expropriation.22

4.2. Rules on state-owned enterprises

State-owned enterprises need to respect, among others, the rules contained in Chapter
18 on 'State enterprises, monopolies and enterprises granted special rights or privileges'.
Chapter 18 emphasises that 'nothing in this chapter prevents a party from designating or
maintaining  a  state  enterprise  or a  monopoly  or  from  granting  an  enterprise  special
rights or privileges' (Article 18.3). Nevertheless, the latter should act in a way consistent
with CETA and must treat an investment, a good or a service supplier from the other
party  in  a non-discriminatory  manner  (Article  18.4).  Furthermore,  it  should,  as  a  rule,
follow  commercial  considerations  when  buying  or  selling  goods  and  services
(Article 18.5). There  is  no  reference  anywhere  in Chapter  18  to  public  procurement,
while Articles  18.4  and  18.5 do not apply to 'activities  carried  out  in  the  exercise  of

19 For  Western  democracies, such  as  the  EU  Member  States  and  Canada,  national  provisions as  a  rule
lawful,  non-discriminatory  and subject  to adequate
already provide  for expropriations  to  be 
compensation.
20 See  for  instance L. Puccio,
Investment  Rules  in  trade  agreements,  EPRS,  European  Parliament,
September  2015;  L. Puccio,  CETA:  Investment  and  the right  to  regulate,  EPRS,  European  Parliament,
February 2017.
21 Covered investment means an investment as defined in Article 8.1.
22 Article 8.9 reaffirms the right to regulate and clarifies 'that the mere fact that a party regulates, including
through a modification of its laws, in a manner which negatively affects an investment or interferes with
an  investor's  expectations,  including  its  expectations  of  profit, does  not  amount to  a  breach  of  an
obligation' of CETA's provisions on investment protection.

CETA and public services

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governmental authority, air services and related and audio-visual services.23 Chapter 18
incorporates certain articles from GATS into the agreement in order to underline that a
monopoly supplier should not abuse its monopoly position to deviate from the MFN or
national treatment principles. If a partner wishes to do so,24 a reservation in CETA Annex
I or II is necessary.

23 As set out in Article 8.2.
24 In an area that is not exempted from the application of Chapter 18, see above.

CETA and public services

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5. Main references

Fritz,  T., CETA  and  TTIP:  Potential  impacts  on  health  and  social  services,  Working  paper
commissioned by the European Federation of Public Service Unions (EPSU), April 2016.

Fritz, T., Analysis and Evaluation of the CETA between the EU and Canada, funded by the Hans
Böckler Stiftung, January 2015.

Krajewski,  M., Model  clauses  for  the  exclusion  of  public  services  from  trade  and  investment
agrements, study commissioned by the Chamber of Labour Vienna & the EPSU, February 2016.

Krajewski, M., Public Services and Trade Liberalisation: Mapping the Legal Framework, Journal of
International Economic Law 6(2), 2003.

Natens B. and Wouters J., The scope of GATS and its Obligations, working paper of the Leuven
Centre for Global Governance Studies, 2013.

Puccio, L., Investment Rules in trade agreements, EPRS, European Parliament, September 2015.

Puccio, L, CETA: Investment and the right to regulate, EPRS, European Parliament, February 2017.

Schöllmann,  W.,
January 2017.

International  Agreements  in  Progress:  CETA,  EPRS,  European  Parliament,

Schöllmann,  W., EU-Canada  Comprehensive  Economic  and  Trade  Agreement,  EPRS, European
Parliament, January 2016.

Schöllmann,  W., Economic  Significance  of  Trade  in  Services,  EPRS, European  Parliament,
February 2015.

6. Annex

6.1. Key to the annexes

The  tables below  present  the CETA rules  that  are  limited  by  EU  and Member  State
services' reservations  that  either  protect  the  public  sector directly,  allow  the  private
sector restrictions (Annexes 6.2 and 6.3) or introduce the right to introduce any measure
limiting investment flows at least (Annex 6.4). The following abbreviations are used for
the CETA rules that are restricted by EU and Member State reservations:

NT-INV: national treatment for investment flows; NT-CS: national treatment for cross-
border trade flows; MA - Mode 1: market access for cross-border trade; MA - Mode 3:
market access for investment flows; SMB: senior management and board of directors
obligations; PERF REQ: performance requirements

EU: European  Union; AT: Austria; BE: Belgium; BG: Bulgaria; CY: Cyprus; CZ: Czech
Republic; DE: Germany; DK: Denmark; ES: Spain; EE: Estonia; FI: Finland; FR: France; EL:
Greece; HR: Croatia; HU: Hungary; IE: Ireland; IT: Italy; LV: Latvia; LT: Lithuania; LU:
Luxembourg; MT: Malta; NL: Netherland; PL: Poland; PT: Portugal; RO: Romania; SK:
Slovakia; SI: Slovenia; SE: Sweden; UK: United Kingdom

CETA and public services

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6.2. Reservations for the protection of public services or potential
restrictions to the private sector in CETA Annex I

CETA and public services

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6.3. Reservations for the protection of public services or potential
restrictions to the private sectors in CETA Annex II

CETA and public services

Page 28 of 30

CETA and public services

Page 29 of 30

6.4. Reservations preserving the right to introduce 'any measure'
regarding investment in CETA Annex II25

25 NB A reservation by Italy is missing in this table.

CETA and public services

Page 30 of 30

EU-Canada  negotiations  for  a  Comprehensive  Economic
and  Trade  Agreement  (CETA) began in  May  2009  and
concluded  in  September  2014. Signed  in  October  2016,
the agreement's overall aim is to increase flows of goods,
services and  investment.  This publication analyses  the
extent to which public services are protected in CETA.

Q
A
-
0
2
-
1
7
-
1
7
1
-
E
N
N

-

The trade agreement takes the public sector into account
by  means  of a  (general) public  sector  carve-out  and
specific reservations  introduced  by  the  EU  and  the
Member  States in  the  annexes  to  the  agreement. These
services,
specifically 
reservations
education  services,  social  services, and environmental,
energy and transport services.

to health 

apply 

National reservations introduced by the EU Member States
to  complement  EU-wide  reservations vary  greatly.  To  a
large extent this is the result of the widely varying levels of
liberalisation  of  certain  services among  Member  States,
leading some  of  them to see a  greater need to  protect
particular sectors from foreign competition than others.

This is a publication of the
Members' Research Service

Directorate-General for Parliamentary Research Services, European Parliament

PE 599.268
ISBN 978-92-846-0633-7
doi:10.2861/512580

This document is prepared for, and addressed to, the Members and staff of the European
Parliament as background material to assist them in their parliamentary work. The content
of the document is the sole responsibility of its author(s) and any opinions expressed herein
should not be taken to represent an official position of the Parliament.