Source: http://www.intracen.org/BB-2010-02-05-General-Agreement-on-Trade-in-Services---Part-5/
Timestamp: 2017-05-28 18:24:18
Document Index: 24380062

Matched Legal Cases: ['art 5', 'art 5', 'art 1', 'art 2', 'art 3', 'art 4']

BB 2010-02-05 General Agreement on Trade in Services - Part 5
General Agreement on Trade in ServicesPart 5: GATS Commitments
Commitments in a Member’s Schedule set out the levels of liberalisation that have been undertaken in a given sector. A schedule includes two parts: the horizontal section and the sector specific section. Both parts are organised in the same manner. There will always be four columns that list the commitments.
The first column specifies the sector or sub-sector concerned;
the second column sets out any limitations under 4 modes of supply on market access falling within the six types listed under Article XVI:2*;
the third column contains any limitations under 4 modes of supply on national treatment;
and the last column provides the opportunity to undertake additional commitments.
A sample schedule of commitments is annexed.The level of opening granted under market access and/or national treatment, for a given activity and a given mode of supply, may range between a full commitment, indicated by the term ‘none’, and no commitment, indicated by the term ‘unbound’. Any limitations between ‘none’ and ‘unbound’ are entered into the schedule by writing out the limitation.Most schedules consist of two parts: a first part setting out a Member’s horizontal limitations and a second part containing sector-specific commitments.HORIZONTAL SECTION OF A SCHEDULEIn the horizontal section, Members have often listed economy-wide limitations, which apply to all sectors included in the schedule. Cases in point are restrictions on the ability of foreigners to own land or real estate or their non-eligibility for subsidies. The horizontal section of the schedule was designed as a way to avoid repetition of limitations that are applicable to all sectors included in the schedule. These limitations are listed by column (Market Access, National Treatment, and Additional Commitments) and by mode. It is important to note that some may apply to only one mode of supply whereas others may affect more than one or all modes.When examining sector-specific commitments, it is important to read them in conjunction with any limitations listed in the horizontal section. These horizontal limitations apply to all services sectors that follow, unless otherwise specified.SECTOR SPECIFIC COMMITMENTS IN A SCHEDULESector specific commitments set out the levels of liberalisation a Member has undertaken in a given sector or sub-sector. Like the horizontal section, the sectoral section is organised in four columns.
the second column sets out any limitations under 4modes of supply on market access falling within the six types listed under Article XVI:2;
the third column contains any limitations on national treatment;
With regard to the description of the sectors included in the schedule, most Members have used the WTO Services Sectoral Classification list, which is commonly known by its document symbol, W/120. It is based mostly on the United Nations Provisional Central Product Classification list, usually referred to as CPC or UNCPC. Some Members have also made use of ad hoc classifications, such as those found in the Annex on Financial Services.ADDITIONAL COMMITMENTSIn the standard layout of a schedule, Additional Commitments are listed in the third column and set out the undertakings made by the Member. Oftentimes additional commitments relate to qualifications, technical standards, licensing requirements or procedures and/or other domestic regulations.The number and type of possible undertakings is open ended and is scheduled under the Additional Commitments column. They can be unique to a particular Member, or a group of Members can agree to a common set of additional commitments.MARKET ACCESSMarket access under the GATS is a clearly circumscribed obligation that is assumed by inscribing a particular sector in a Member's schedule of commitments. In the absence of qualifying limitations, the concept of market access, as defined in Article XVI, guarantees that there are no restrictions pertaining to:
the number of service suppliers
the value of service transactions or assets
the number of operations or quantity of output
the number of natural persons supplying a service
the type of legal entity or joint venture
the participation of foreign capital
Members wishing to maintain any of these six types of restrictions in a committed sector would need to specify the relevant measures in their schedules. In the standard layout of a schedule market access is listed in the first column and sets out the terms, limitations and commitments.NATIONAL TREATMENTNational treatment under Article XVII of the GATS implies the absence of all discriminatory measures that modify the conditions of competition in favour of domestic services or services suppliers. Again, the concept applies only to sectors listed in a Member’s schedule, and only to the extent that no limitations have been inscribed to cover inconsistent measures.
Different from Article XVI, which deals with market access, Article XVII does not contain a specific list of measures that would be deemed inconsistent with national treatment. Cases in point are discriminatory tax measures or subsidies, as well as residency requirements.In the standard layout of a schedule national treatment is listed in the second column and sets out the conditions and qualifications.SCHEDULE TERMINOLOGYNoneWhen ‘none’ is entered into either the market access or national treatment columns in any mode (i.e. mode 1, mode 2, mode 3 or mode 4), it means that the Member does not maintain any of the relevant limitations.PartialA ‘partial’ commitment is undertaken whenever a Member inscribes one or more limitations under the relevant sectoral entry of its schedule for any given mode.UnboundWhen a Member enters ‘unbound’ into either the market access or national treatment columns in any mode (i.e. mode 1, mode 2, mode 3 or mode 4) it means that the Member retains full discretion to introduce measures inconsistent with either market access or national treatment. Otherwise said, the Member has made no commitment in the particular sector and mode.
- Part 1: Introduction to the General Agreement on Trade in Services - GATS- Part 2: Defining Trade in Services- Part 3: MFN Treatment, Transparency and Domestic Regulations
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