CELEX: 22019A0328(14)
Language: en
Date: 2019-03-28 00:00:00
Title: Joint letter from the European Communities and its Member States on the one part, and the Philippines, on the other part, pursuant to paragraph 5 of the Procedures for the implementation of Article XXI of the General Agreement on Trade in Services (GATS) (S/L/80 of 29 October 1999) relating to the modifications proposed in the GATS Schedules of the European Communities and its Member States (hereafter the EC) to take account of the accession of the Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, the Republic of Hungary, the Republic of Malta, the Republic of Austria, the Republic of Poland, the Republic of Slovenia, the Slovak Republic, the Republic of Finland, the Kingdom of Sweden to the European Communities

28.3.2019              EN                           Official Journal of the European Union                                          L 87/119
      Joint letter from the European Communities and its Member States on the one part, and the Philippines, on the
      other part, pursuant to paragraph 5 of the Procedures for the implementation of Article XXI of the General
                              Agreement on Trade in Services (GATS) (S/L/80 of 29 October 1999)
                                                                  relating to
      the modifications proposed in the GATS Schedules of the European Communities and its Member States
      (hereafter the EC) to take account of the accession of the Czech Republic, the Republic of Estonia, the
      Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, the Republic of Hungary, the Republic
      of Malta, the Republic of Austria, the Republic of Poland, the Republic of Slovenia, the Slovak Republic, the
                           Republic of Finland, the Kingdom of Sweden to the European Communities
      On 28 May 2004 and on 4 April 2005, the EC submitted two respective Communications pursuant to Article V of the
      GATS (circulated as document S/SECRET/8, dated 11 June 2004, and as document S/SECRET/9, dated 12 April 2005),
      whereby it notified its intention to modify or withdraw the specific commitments included in the list attached to the
      communications, pursuant to Article V:5 of the GATS and in accordance with the terms of Article XXI:1(b) of the GATS.
      Following the submission of the first Communication, the Philippines submitted a claim of interest pursuant to
      Article XXI:2(a) of the GATS (S/L/179) with regard to S/SECRET/8. No claim of interest was submitted with regard to
      S/SECRET/9. The EC and the Philippines entered into negotiations pursuant to Article XXI:2(a) of the GATS with regard
      to S/SECRET/8.
      With regard to the procedure initiated by the notification contained in document S/SECRET/8, the initial period for the
      negotiations, which expired on 26 October 2004, was extended (by mutual agreement) five times (until 26 April 2005,
      until 27 February 2006, until 1 June 2006, until 1 July and until 17 July 2006). During such negotiations, the EC and the
      Philippines have agreed on compensatory adjustments related to the withdrawals and modifications contained in
      document S/SECRET/8.
      The Report on the result of these negotiations, which is attached to this letter, includes (1) the proposed modifications in
      the notifications referred to above, (2) the agreed compensatory adjustments with regard to the modifications or with­
      drawals notified in S/SECRET/8, and (3) the draft consolidated schedule of specific commitments that results from
      merging existing schedules of commitments of the EC and its Member States and from inserting therein both the
      modifications or withdrawals of commitments notified by the EC under documents S/SECRET/8 and S/SECRET/9 and
      the compensatory adjustments agreed between the EC and the Philippines.
      This letter and Annex I and II of the report attached to it constitute the Agreement between the EC and the Philippines
      with regard to S/SECRET/8 for purposes of Article XXI:2(a) of the GATS (1). The Agreement shall not be interpreted to
      modify the Lists of Article II Exemptions of the EC and its Member States. The Agreement shall not be interpreted to
      affect the Parties' rights and obligations under Article VIII of the GATS.
      Pursuant to the procedures referred to in paragraphs 20 to 22 of S/L/80, the EC will transmit, to the Secretariat for
      circulation, the draft consolidated schedule for certification by 14 September 2006, provided that an agreement has been
      signed with all affected Members, or the period foreseen in paragraph 7 of S/L/80 has expired, and no arbitration has
      been requested. The results of the negotiations are to enter into force, after completion of the certification procedures, on
      a date to be specified by the EC following completion of the EC's internal approval procedures, which the EC endeavours
      to accelerate as much as possible. The modifications and withdrawals proposed in documents S/SECRET/8 and
      S/SECRET/9 shall not enter into force until all of the compensatory adjustments indicated in Annex II have entered
      into force.
      (1) This Agreement shall not be interpreted to prejudge the outcome of separate discussions within the WTO concerning the classifi­
          cation of telecommunication services (basic telecommunications and value-added services).
 ---pagebreak--- L 87/120               EN                           Official Journal of the European Union                                         28.3.2019
      Report on the result of the negotiations conducted in accordance of Article XXI:2(a) of the General Agreement
                                                        on Trade in Services (GATS)
                                                                  relating to
      the modifications proposed in the GATS Schedules of the European Communities and its Member States
      (hereafter the EC) to take account of the accession of the Czech Republic, the Republic of Estonia, the
      Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, the Republic of Hungary, the Republic
      of Malta, the Republic of Austria, the Republic of Poland, the Republic of Slovenia, the Slovak Republic, the
                            Republic of Finland, the Kingdom of Sweden to the European Communities
      Pursuant to paragraph 5 of the Procedures for the implementation of Article XXI of the GATS (S/L/80 of 29 October
      1999), the EC submits the following report:
      1. On 28 May 2004 and on 4 April 2005, the EC submitted two respective Communications pursuant to Article V of the
          GATS (circulated as document S/SECRET/8, dated 11 June 2004, and as document S/SECRET/9, dated 12 April 2005),
          whereby it notified its intention to modify or withdraw the specific commitments included in the list attached to the
          communications (hereafter "the proposed modifications"), pursuant to Article V:5 of the GATS and in accordance with
          the terms of Article XXI:1(b) of the GATS. The proposed modifications are contained in Annex I.
      2. Following the submission of the notification contained in document S/SECRET/8, and pursuant to Article XXI:2(a) of
          the GATS, eighteen WTO Members (Argentina, Australia, Brazil, Canada, China, Chinese Taipei, Colombia, Cuba,
          Ecuador, Hong Kong China, India, Japan, Korea, New Zealand, the Philippines, Switzerland, Uruguay and the United
          States) submitted a respective claim of interest.
      3. Following the submission of the notification contained in document S/SECRET/9, and pursuant to Article XXI:2(a) of
          the GATS, fourteen WTO Members (Argentina, Australia, Brazil, Canada, China, Colombia, Ecuador, Hong Kong
          China, India, Japan, Korea, New Zealand, Uruguay and the United States) submitted a respective claim of interest.
      4. The Philippines submitted a claim of interest pursuant to Article XXI:2(a) of the GATS (S/L/179) with regard to
          S/SECRET/8. No claim of interest was submitted with regard to S/SECRET/9. The EC and the Philippines entered into
          negotiations pursuant to Article XXI:2(a) of the GATS with regard to S/SECRET/8.
      5. With regard to the procedure initiated by the notification contained in document S/SECRET/8, the initial period for the
          negotiations, which expired on 26 October 2004, was extended (by mutual agreement) five times (until 26 April
          2005, until 27 February 2006, until 1 June 2006, until 1 July and until 17 July 2006).
      6. During such negotiations, the EC and the Philippines have agreed on compensatory adjustments related to the
          modifications and withdrawals contained in document S/SECRET/8. Annex I and II of this report, together with
          the joint letter to which it is attached, constitute the Agreement between the EC and the Philippines with regard to
          S/SECRET/8 for purposes of Article XXI:2(a) of the GATS (2). This Agreement shall not be interpreted to modify the
          lists of Article II Exemptions of the EC and its Member States. This Agreement shall not be interpreted to affect the
          Parties' rights and obligations under Article VIII of the GATS.
      7. In view of the foregoing, the proposed modifications and the agreed compensatory adjustments are incorporated into
          the EC's draft GATS consolidated schedule, which results from merging existing schedules of commitments of the EC
          and its Member States and from inserting therein both the modifications or withdrawals of commitments notified by
          the EC under documents S/SECRET/8 and S/SECRET/9 and the compensatory adjustments agreed between the EC and
          the Philippines.
      8. Pursuant to the procedures referred to in paragraphs 20 to 22 of S/L/80, the EC will transmit, to the Secretariat for
          circulation, the draft consolidated schedule for certification by 14 September 2006, provided that an agreement has
          been signed with all affected Members, or the period foreseen in paragraph 7 of S/L/80 has expired, and no arbitration
          has been requested. The results of the negotiations are to enter into force, after completion of the certification
          procedures, on a date to be specified by the EC following completion of the EC's internal approval procedures,
          which the EC endeavours to accelerate as much as possible. The modifications and withdrawals proposed in
          documents S/SECRET/8 and S/SECRET/9 shall not enter into force until all of the compensatory adjustments
          indicated in Annex II have entered into force.
      (2) This Agreement shall not be interpreted to prejudge the outcome of separate discussions within the WTO concerning the classifi­
          cation of telecommunication services (basic telecommunications and value-added services).
 ---pagebreak--- 28.3.2019            EN                          Official Journal of the European Union                                         L 87/121
                                                                  ANNEX I
      A) Modifications notified in document S/SECRET/8
      Horizontal Commitments
      • Market access entry (page 9): “In all EC Member States services considered as public utilities at a national or local level
        may be subject to public monopolies or to exclusive rights granted to private operators”. This entry was not included
        in the schedule of specific commitments of the Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta,
        Austria, Poland, Slovenia, Slovakia, Finland and Sweden. This limitation now applies to all Member States.
      • National treatment limitations on branches, agencies and representative offices under mode 3 (pages 9 and 10). This
        entry was not included in the schedule of specific commitments of the Czech Republic, Estonia, Cyprus, Latvia,
        Lithuania, Malta, Slovenia and Slovakia. This limitation now applies to all Member States.
      • National treatment limitations on subsidiaries under mode 3 (page 10). This entry was not included in the schedule of
        specific commitments of the Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Slovenia and
        Slovakia. This limitation now applies to all Member States.
      • National treatment limitations on subsidies under mode 3 (page 13). The schedule of specific commitments of the
        Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Malta, Austria, Slovenia, Slovakia, Finland and Sweden included only
        part of the limitations on subsidies on mode 3 inscribed in the schedule of the EC and its Member States. These
        limitations are now extended to these Member States.
      • National treatment limitation on subsidies under mode 4 (page 13). The schedule of specific commitments of the
        Czech Republic, Estonia, Cyprus, Latvia, Hungary, Malta and Slovakia did not include the limitation on subsidies under
        mode 4 inscribed in the schedule of the EC and its Member States. This limitation is now extended to these Member
        States.
      • Cyprus' market access commitments on mode 4. These commitments are withdrawn.
      • Market access entry on mode 4 - Intra-company transfers (ICT) (page 26). The schedule of specific commitments of the
        Czech Republic, Latvia, Lithuania, Hungary, Poland and Slovakia did not include the limitation that the receiving entity
        must be effectively providing like services in the territory of the Community Member State concerned. This limitation is
        now extended to these Member States.
      • Market access entry on mode 4 - Business visitors (BV) – service sellers (page 30). The schedule of specific
        commitments of Poland did not include the limitation that those representatives will not be engaged in making
        direct sales to the general public. This limitation is now extended to this Member State.
      • Market access entry on mode 4 - Business visitors (BV) – establishment of commercial presence (page 30). The schedule
        of specific commitments of Lithuania did not include the limitation that those representatives will not be engaged in
        making direct sales to the general public or supplying services. This limitation is now extended to this Member State.
      • Lithuania’s market access commitments on mode 4 – Business visitors (BV) (page 32). These commitments are partially
        withdrawn.
      • Latvia’s market access commitment on mode 4 – contractual services suppliers (CSS) (page 33). The schedule of specific
        commitments of Latvia did not include the limitation that the temporary entry and stay within the Member State
        concerned shall be for a period of not more than three months in any 12 months period. This limitation is now
        extended to this Member State.
      Sectoral commitments
      • Rental/Leasing services without operators - Relating to Aircraft (page 95). The market access limitation under mode 2 is
        extended to Estonia, Lithuania, Hungary, Austria, Slovenia, Finland and Sweden and the market access limitation under
        mode 3 is extended to Estonia, Hungary and Austria.
 ---pagebreak--- L 87/122             EN                         Official Journal of the European Union                                        28.3.2019
      • Services incidental to manufacturing (pages 109 and 110). The commitments included in the schedule of Latvia,
        Lithuania and Austria are withdrawn.
      • Education services (page 156): limitation to “only privately funded services”. This limitation was not included in the
        schedule of Estonia, Latvia, Lithuania, Hungary, Austria, Slovenia (only not included with regard to adult education
        services) and Slovakia. This limitation is now extended to these Member States. In the case of Slovenia, such an
        extension only refers to adult education services.
      • Banking and other financial services (excluding insurance) (pages 193, 213 and 217). The market access limitations
        indicating that “the establishment of a specialised management company is required to perform the activities of
        management of unit trusts and investment companies” and that “only firms having their registered office in the
        Community can act as depositories of the assets of investment funds”, both under mode 1 and 3, were not
        included in the schedule of Czech Republic as regards mode 3, Estonia (not included in mode 1 nor in mode 3),
        Latvia as regards mode 3, Lithuania as regards mode 1, Hungary as regards mode 3 and Slovakia as regards mode 3.
        These limitations are now extended to these Member States.
      • Space Transport. The commitment included in the schedule of Austria is withdrawn.
      • Air Transport - Rental of aircraft with crew (page 246). Two market access limitations (one under modes 1 and 2 and
        another one under mode 3) are introduced for Poland.
      • Air Transport - Sales and Marketing (pages 247 and 248). The schedule of specific commitments of Estonia did not
        include the national treatment limitation on distribution through CRS of air transport services provided by CRS parent
        carrier.
      • Air Transport - Computer Reservations System (page 248). The schedule of specific commitments of Hungary did not
        include the national treatment limitation on the obligations of parent or participating carriers in respect of a CRS
        controlled by an air carrier of one or more third countries.
      • Services auxiliary to all modes of transport - Cargo handling services (page 259). A market access limitation under
        mode 3 has been introduced for Estonia, Latvia and Lithuania.
      B) Modifications notified in document S/SECRET/9
      Horizontal Commitments
      • Cyprus' and Malta's commitments on mode 4 under national treatment (pages 25, 29 and 32 of S/SECRET/8). These
        commitments are withdrawn.
      Sectoral commitments
      • Computer and Related Services - a)Consultancy Services related to the Installation of Computer Hardware (CPC 841) (page
        82) - b) Software Implementation Services (CPC 842) (page 83) - c) Data Processing Services (CPC 843) (page 85) - d) Data
        Base Services (CPC 844) (page 86). Cyprus' commitments on mode 4 (ICT, BV and CSS) under national treatment are
        withdrawn.
      • Research and Development Services - b) R & D Services on Social Sciences and Humanities (CPC 852) (pages 89 and
        90). Cyprus' commitments on mode 4 (ICT, BV and CSS) under national treatment are withdrawn.
      • Insurance and Insurance-Related Services - (i) Direct insurance (including co-insurance): (a) life and (b) non-life (pages
        211 and 212). Cyprus' commitments on mode 4 (ICT, BV and CSS) under national treatment are withdrawn.
      • Banking and Other Financial Services (excluding insurance) – (x) (e) transferable securities (page 223). Cyprus'
        commitments on mode 4 (ICT, BV and CSS) under national treatment are withdrawn.
      • Hotels, Restaurants and Catering (CPC 641,642 and 643) (page 232). Malta's commitments on mode 4 (ICT, BV and
        CSS) under national treatment are withdrawn.
      • Travel Agencies and Tour Operators Services (CPC 7471) (pages 233 and 234). Malta's commitments on mode 4 (ICT,
        BV and CSS) under national treatment are withdrawn.
      • Maritime transport services - excluding cabotage transport - (a) Passenger transportation (CPC 7211); (b) Freight
        transportation (CPC 7212) (page 242). Malta's commitments on mode 4 (ICT, BV and CSS) under national
        treatment are withdrawn.
 ---pagebreak--- 28.3.2019            EN                         Official Journal of the European Union                              L 87/123
                                                               ANNEX II
                                                      COMPENSATION BY THE EC
      • Mode 3 horizontal limitation on public utilities
        — Footnote on coverage indicating that this limitation does not apply to telecommunication and computer and
            related services.
      • Mode 3 horizontal limitations on investment
        — Removal of the national treatment limitation for AT in Mode 3 on branches of foreign joint stock companies
            (Aktiengesellschaften) and limited liability companies (Gesellschaften mit beschränkter Haftung).
      • Mode 4 for intra-corporate transferees and business visitors
        — Market Access and National Treatment commitments by CY and MT in the horizontal section and in the sector-
            specific section in the sectors where CY and MT have undertaken Mode 3 commitments.
      • Professional services - Engineering services (CPC 8672)
        — Market Access and National Treatment Commitments by CY and MT in Mode 2
        — Market Access commitments by CY, CZ, MT & SK in Mode 3
        — National Treatment commitments by CY and MT in Mode 3
        — Removal of the market access limitation for PT in mode 3
      • Professional services - Integrated Engineering Services (CPC 8673):
        — Removal of the ENT applied on Mode 4/CSS by the UK
        — Market Access and National Treatment commitments by SK in Mode 3
      • Professional services - Urban planning and landscape architectural services (CPC 8674):
        — Market Access and National Treatment commitments by CY, CZ, MT, PL, SI & SK in Mode 3.
        — Market Access and National Treatment commitments by HU on Landscape Architectural Services in Mode 2.
      • Computer and related services -
        — Addition of a clarificatory footnote.
        — Market Access and National Treatment commitments by HU in Modes 1, 2 & 3 for CPC 845 and 849
        — Improved conditions for CSS/Mode 4 by SE for computer and related services in the horizontal section and new
            commitments by SE for CSS/Mode 4 for CPC 845 and 849.
      • Advertising services (CPC 871):
        — Market Access and National Treatment commitments by CY, MT & PL in Mode 1
 ---pagebreak--- L 87/124            EN                            Official Journal of the European Union                                          28.3.2019
      • Telecommunication services
        — New and improved commitments by the entire EC as offered in its revised DDA offer.
        — A clarification from FI that its three Mode 3 horizontal limitations on legal entities under market access, on
            subsidiaries, branches, agencies and representative offices under national treatment, and on investment under
            market access do not apply to telecommunications services.
        — A clarificatory footnote indicating that Sub-sectors 2.C.h) to 2.C.m) of the Services Sectoral Classification List
            contained in MTN,GNS/W/120 (value-added services) and Sub-sectors 2.C.a) to 2.C.g) of that List are included here.
            Sub-sector 2.C.o) of that List is also included here to the extent that it falls under this definition. For the purpose of
            this schedule, subsector 2C.n of that list (on-line information and/or data processing) is reflected in this schedule of
            Commitments under 1.B (Computer and related services).
      • Financial services (insurance services):
        — Removal of part of the market access limitations for SK in Mode 3
      • Financial services (banking)
        — FI: change in Mode 3 permanent residency requirements (“At least one of the founders, the members of the board
            of directors, the supervisory board and the managing director shall have their permanent residence in the European
            Community…” instead of “At least one half of the founders, the members of the board of directors, the supervisory
            board and the delegates, the managing director, the holder of the procuration and the person entitled to sign in the
            name of the credit institution shall have their place of residence in the European Community…”).
      • Hotels, Restaurants and Catering
        — New (less restrictive) language for IT's ENT in mode 3 on bars, cafes and restaurants, including a commitment on
            its non-discriminatory nature.
      • Travel Agencies and Tour Operators Services
        — Removal of the ENT applied on Mode 3 by the CZ
      • Hairdressing services
        — Market Access and National Treatment commitments by CZ, FI, HU and SK in Modes 2 & 3
      The following abbreviations are used to indicate the Member States:
      AT      Austria
      BE      Belgium
      CY      Cyprus
      CZ      Czech Republic
 ---pagebreak--- 28.3.2019        EN       Official Journal of the European Union L 87/125
      DE  Germany
      DK  Denmark
      EE  Estonia
      EL  Greece
      ES  Spain
      FI  Finland
      FR  France
      HU  Hungary
      IE  Ireland
      IT  Italy
      LT  Lithuania
      LU  Luxembourg
      LV  Latvia
      MT  Malta
      NL  The Netherlands
      PL  Poland
      PT  Portugal
      SE  Sweden
      SI  Slovenia
      SK  Slovak Republic
      UK  United Kingdom