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Practicum about Multilateral Negotiations on Liberalizing
International Trade in Services


Simulation Exercise
Designed by Anna Lanoszka*

Copyright © 2002 by The Institute for Trade & Commercial Diplomacy


Introduction

This is an interactive exercise designed to simulate two fundamental stages of the services liberalization process: the preparatory stage and the negotiating stage. The negotiation framework is modeled on the WTO General Agreement on Trade in Services (GATS).

The exercise includes the following four hypothetical countries: Republic of Corton, Nordicus, Sumeria, and Thyros. They are Members of the Universal Trade Federation, which is a hypothetical intergovernmental organization. These four countries are assumed to engage in multilateral negotiations aimed at advancing liberalization of international trade in services. All countries are fictitious, and are not intended to resemble real countries.

Each country is represented by a delegation of government officials from different ministries. In addition, the representatives of a number of private sector organizations play a role in the development of national negotiating positions and in assessing the adequacy of negotiating outcomes. These private stakeholders often engage in consultations with the official delegation to ensure national positions reflect underlying national. They can also consult with their counterparts in other countries to gather intelligence and to advance their interests.

  • Professor of International Economic Relations at the University of Windsor in Canada. Previously, in the Accessions Division of the WTO.

TABLE OF CONTENTS

  1. Background on the WTO General Agreement on Trade in Services
  2. Background on Negotiating Techniques with Respect to Services
  3. Goals and Objectives of the Simulation Exercise
    1. Part I – Simulation Scenario
    2. Part II – Simulation Scenario
  4. Supplemental Factual Information and the Services Schedules:
    1. Republic of Corton
    2. Nordicus
    3. Sumeria
    4. Thyros
  5. General Instructions on how to Conduct the Simulation

Note: The participants will receive individual confidential instructions at the beginning of the simulation. It is important to read the materials included here before the commencement of the simulation.


1. Background on the WTO General Agreement on Trade in Services

The General Agreement on Trade in Services (GATS) is one of the key agreements administered by the World Trade Organization. It is designed to “secure progressively higher levels of liberalization of trade in services through successive rounds of negotiations, which should aim at promoting the interests of all Members of the WTO and at achieving an overall balance of rights and obligations” (Article XIX of the GATS).

The articles of the GATS, and a set of Annexes, establish some general rules for government measures that affect trade in services. In addition, national schedules of commitments set out specific commitments by each member country. The schedules are an integral part of the Agreement, as tariff schedules are an integral part of the GATT. While the text of the Agreement applies uniformly to all Members of the WTO the scheduling of commitments is negotiated by each Contracting Party (member countries or customs territories) with every other Contracting Party.

The text of the GATS consists of 6 parts:

  1. Scope and Definition (Article I)
  2. General Obligations (Articles II to XV)
  3. Specific Commitments (Articles XVI to XVIII)
  4. Progressive Liberalization (Articles XIX to XXI)
  5. Institutional Provisions (Articles XXII to XXVI)
  6. Final Provisions (Articles XXVII to XXIX)

The GATS does not define "services" but does define "trade in services". The definition covers not only the cross-border supply of services but also transactions involving the cross-border movement of capital and labor. Paragraph 2 of Article I defines trade in services as the supply of a service through any of four modes of supply:

4 modes of supply:

Cross-border supply
Cross-border supply is the supply of a service from the territory of one Member into the territory of any other Member. This is the type of transaction analogous to trade in goods. For example: international transport and the supply of a service through telecommunication or mail.

Consumption abroad
This happens when the consumer moves to the territory of another country and buys services there. For example, tourism or when a German resident crosses the border to deposit money in a Swiss bank. It may also happen when the property of the consumer is sent abroad for servicing, as in the case of ship repair.

Supply through commercial presence
This involves direct investment in the export market through the establishment of a business there for the purpose of supplying a service. For example, a country allows the establishment of foreign banks or hotels on its territory.

Supply through the presence of natural persons
Supply through the presence of natural persons. This means the temporary entry of an individual for the purpose of supplying a service. This person could be the service supplier himself or an employee of the service supplier. In both cases, the GATS definition covers only the temporary stay of such persons.

Obligations under the GATS
Obligations contained in the GATS may be categorized into two groups: General obligations which apply directly and automatically to all Members, regardless of the existence of sectoral commitments; and specific commitments whose scope is limited to the sectors and activities where a Member has decided to assume market access and national treatment obligations.


(a) General obligations

MFN Treatment: Under Article II, Members are expected to give services and service suppliers from each Member country "treatment no less favorable than that accorded to like services and services suppliers of any other Member country". However, Members were allowed to take a one-time exemption for specific services at the time they entered into the GATS. They could also obtain an exemption through the negotiation of a waiver under Article IX of the WTO Agreement. Any such exemption is subject to review and should in principle not last longer than 10 years.

Transparency: GATS Members are required, inter alia, to publish all measures of general application and establish national enquiry points mandated to respond to other Member's information requests.


(b) Specific Commitments
Market Access: Countries are prohibited from placing any quantitative limitations on services and service suppliers in any sector listed in their national schedule of commitments unless the country lists any nonconforming measure in its schedule. The types of limitations covered by this requirement are enumerated in Article XVI (2). For example, a country is required to list limitations it imposes on the number of services suppliers, service operations or employees in a sector, the value of transactions, the legal form of the service supplier, or the participation of foreign capital.

National Treatment: In any sector included in its Schedule of Specific Commitments, a Member is obliged to grant foreign services and service suppliers national treatment unless it lists the nonconforming measure in its national schedule. National treatment is defined as treatment no less favorable than that extended to its own like services and service suppliers. In this context, countries commitment themselves not to adopt any law or other measure that would give its services or services suppliers a competitive advantage through more favorable treatment.

Schedules of Specific Commitments
Each WTO Member is required to have a Schedule of Specific Commitments in Services. It is a document, which identifies the services sectors and modes of supply subject to Market Access and National Treatment obligations. For each listed sector, and mode of supply within that sector, the schedule either indicates that the country has placed no limitation on its market access or national treatment commitments by entering the word “none”, or that the country is conditioning the commitment by listing conditions or by enumerating nonconforming measures. The schedule also includes horizontal commitments and reservations that apply across all sectors.

The GATS does not impose the obligation to assume market access or national treatment commitments in a particular sector. In scheduling commitments, Members are free to tailor the extent of the commitments they take so as to avoid or modify obligations that they consider too demanding at present.

Article XVI sets out six types of government measures that are covered by a market access commitment, unless the government lists an exception. They are:

  • limitations on the number of service suppliers;
  • limitations on the total value of services transactions or assets;
  • limitations on the total number of service operations or the total quantity of service output;
  • limitations on the number of persons that may be employed in a particular sector or by a particular supplier;
  • measures that restrict or require supply of the service through specific types of legal entity or joint venture;
  • and percentage limitations on the participation of foreign capital, or limitations on the total value of foreign investment.

Article XVII deals with national treatment. It states that in the sectors covered by its schedule, and subject to any conditions and qualifications set out in the schedule, each member shall give foreign services and service suppliers treatment, in measures affecting supply of services, no less favorable than it gives to its own services and suppliers.

Any market access or national treatment obligations inscribed in schedules must be granted unconditionally to all Members, without discrimination. Countries are allowed at the time of accession t list specific exceptions to this requirement. Parties to a Free Trade Agreement are not bound to give Parties that are not signatories of the Free Trade Agreement the same treatment. Also, countries are allowed to negotiate agreements for the mutual recognition of standards, though they have to give the same opportunity to other member countries.

Pursuant to Article XXI, specific commitments may be modified through negotiation after three years.. However, countries that are affected by such modifications can ask the country making the adjustment to make an equivalent commitment in another area.

Services schedules consist of both sectoral and horizontal sections. The "Horizontal Section" contains limitations that apply across all sectors included in the schedule. They often refer to a particular mode of supply, notably commercial presence and the presence of natural persons. The "Sector Specific Section" contains limitations that apply only to the particular sector, sub-sector or activity to which they refer.

What has not, or not yet, been covered in the GATS?
Although the scope of the GATS is very wide, dealing with "all measures affecting trade in services", policy measures in some areas are not covered by the GATS disciplines, provided the measures are not used to circumvent their GATS obligations:

  • immigration rules; provided they do not contravene commitments on temporary entry under mode 4;
  • services supplied under Government Authority;
  • fiscal policy and taxation measures (provided the taxes do not discriminate against foreign services or service suppliers.)
  • import restrictions on equipment necessary for the supply of a service;
  • Restrictions on short term capital movements, or measures that affect property rights (provided they are nondiscriminatory)
  • exchange rate management
  • privatization of state owned property, though there are disciplines for state-owned trading entities and monopolies.

Other types of government measures have been put into the GATS work program, though detailed rules are yet to be negotiated:

  • safeguard measures
  • rules for government procurement
  • disciplines on subsidies
  • disciplines for domestic regulations

2. Background on the Negotiating Techniques with Respect to Services


Skill set required to become an effective negotiator:

  1. Objective - negotiators must be able to transcend rhetoric and emotion of parties at the table in order to analyze proposals with detachment to assess their strengths and weaknesses.
  2. Flexible - negotiators must adapt to new and surprising offers without remained rigid about agendas.
  3. Articulate and effective as a listener - negotiators must be verbally astute to communicate thoughts, perspectives and proposals, as well as hearing and understanding concerns.
  4. Forceful and persuasive - negotiators must be forceful enough to assert their needs and persuasive enough to have them considered.
  5. Imaginative - negotiators must offer fresh ideas and new perspectives.

Persevering and Optimistic - negotiators must continue through difficulties, believing that the end result will be worthwhile.

THE NEGOTIATOR'S ROLE
Effective Negotiator has Power to Influence the Events
Power in Negotiations Comes in the Following Forms:

  1. Constructive Power
    • Your ability to set the agenda, to listen, and to compromise
  2. Obstructive Power
    • Your ability to keep the other party from satisfying her/his needs
  3. Jumping Power
    • Your ability to leave a negotiation
  4. Personal Power
    • Your ability to utilize your experience, confidence, knowledge and skills that will enable you to succeed
  5. The Power of Empathy
    • Your ability to understand and satisfy the interests and
      needs of your opponents
  6. The Power of Creativity
    • Your ability to devise new and surprising Solutions
  7. The Power to Recognize
    • Your ability to give your opponent a special recognition
  8. The Power of Courtesy
    • Your ability to Apologize, When/If Necessary
  9. The Power to Form Alliances
    • Your ability to unify and to unite
  10. The Power of Completing the Task
    • Your ability to complete the assigned goal

Important Points on
International Trade Negotiations in Services
Prof. Geza Feketekuty ?
  • The economic benefits that can flow from the liberalization of business services are likely to be particularly significant because business services constitute an increasing proportion of the cost of producing many manufactured goods and other services, and a reduction of these costs will therefore significantly enhance the productivity of national producers.
  • Negotiators focusing on trade in services lack the kind of detailed quantitative data available to support negotiations on trade in goods. You cannot see a service crossing the border. Governments are therefore not able to measure the flow of services across the border in the same way that they can measure the flow of individual goods across the border.
  • Since detailed data on services trade is generally lacking, and the protective effect of restrictive regulatory measures is difficult to assess, trade negotiators in services must dependent on qualitative assessments provided by potential exporters or importers of the services involved. This makes consultations with the affected industries particularly important with respect to negotiations on trade in services.
  • The first step in preparing for international negotiations on trade in services is to identify and organize the domestic stakeholders. Starting the preparation of negotiations with the identification and organization of stakeholders makes sense because stake holders are likely to be in a position to contribute, and in some cases help collect, basic information about the competitive strengths and weaknesses of national service industries, the problems exporters face in penetrating foreign markets, and the regulatory issues that are likely to arise in the course of the negotiations.
  • Asking domestic stakeholders to participate in the preparation of the negotiations also makes them feel as full participants in the process, making them loyal supporters of the negotiations as long as they can rationalize it as being consistent with their basic interests. At the very least, stakeholders included in the process will achieve a full understanding of the issues and the rationale for the negotiations, give the negotiators credit for including them in the preparatory process and for factoring their interests into the development of national positions.
  • Prof. Feketekuty was one of the main personalities behind the Tokyo and Uruguay Rounds of Multilateral Trade Negotiations. As Chairman of the OECD Trade Committee in the early 1990's he helped to shape the international agenda for future negotiations in the WTO. His book, “International Trade in Services: A Blue Print for Negotiation" played a key role in the negotiation of the General Agreement on Trade in Services.

3. Goals and Objectives of the Simulation Exercise

Part I – Simulation Scenario

The aim of the first part of the exercise: Each country-team has to prepare its strategic negotiating position for the upcoming multilateral negotiations.

To conclude the first part of the exercise:
Each negotiating team should prepare the following documents:

  1. One (1) sector-proposal representing its initial offer.
  2. Three (3) individual sector-requests directed to every remaining member-country in the group.

In order to prepare the above documents each country team is expected to:

  1. Analyze carefully all services schedules as a framework for negotiations
  2. Evaluate its own economic priorities with respect to services sectors
  3. Rank the issues in terms of importance to each team.
  4. Identify starting offers for each sector in the scenario.
  5. Assess the relevant domestic regulations in relation to the proposed offers.
  6. Prepare one proposal and distribute it to every negotiating team in the group.
  7. Prepare 3 individual requests for every trading partner in the group.

Important Note: For the purpose of simplicity, it is assumed that the SERVICES SECTORAL CLASSIFICATION LIST includes only the following 6 services sectors with a limited number of sub-sectors:

  1. Telecommunication Services
    • Basic: Voice telephone services
    • Value-added: Electronic mail
    • Value-added: On-line information and/or data processing1
  2. Construction and Related Engineering Services
    • General construction work for buildings
    • Building completion and finishing work
  3. Distribution Services
    • Retailing Services
  4. Financial Services
    • All Insurance
    • Banking - Acceptance of deposits
    • Banking - Lending of all types, including inter alia, consumer credit,
      mortgage credit, factoring and financing of commercial transactions
  5. Tourism and Travel Related Services
    • Hotels and Restaurants
    • Travel Agencies and Tour Operators
  6. 6. Transport Services
    • Maritime International Transport (freight and passengers)
    • Road Transport Services (freight and passengers)
    • Rail Transport Services (freight and passengers)

Part II – Simulation Scenario

The aim of the second part of the exercise: Each country-team has to engage in negotiations with its trading partners in order to advance the process of multilateral liberalization of services.

To conclude the second part of the exercise: Each negotiating team should prepare the following documents:

  1. A new/revised services schedule for its country.
  2. A brief note - to be presented at the General Council Meeting, which sets out the country’s views on the negotiations. Private stakeholders prepare their own assessments.

In order to prepare the required documents each country team is expected to:

  1. Consult with private stakeholders.
  2. Engage in the negotiation process.
  3. Work as a team but with a designated chairperson.
  4. Conclude the negotiations to the best of its abilities.
  5. Prepare the revised schedule of commitments.
  6. Inform the private stakeholders about the outcome.
  7. Private stakeholders should then prepare a brief note assessing the outcome of the negotiations from their point of interest.
  8. The government team should prepare a brief note to be presented at the final meeting of the General Council of the Universal Trade Federation that will conclude the exercise.

Private stakeholders are expected to consult with the government in an effort to build national consensus on a negotiating position. They can also consult with their counterparts in other countries to gather intelligence and advance their interests.

5. Supplemental Factual Information: Country Descriptions and the Services Schedules

Republic of CORTON

Population: 12 million
Gross Domestic Product (GDP): N$17 billion
GDP Per Head in 2001: N$1416
GDP per Head in 2001 in purchasing power parity: 24 (Nordicus = 100)


Private stakeholders

  • The Corton’s Farmers Union
  • The Equity Labor Union
  • The Young Entrepreneurs Guild

The Economic Outlook:
The Republic of Corton is a transition economy, which declared its independence only in 1994. Since independence, the Republic of Corton has steadily pursued a policy which seeks to transform its centrally planned economy into a market economy. The national currency, introduced in mid 1995, is freely convertible and its foreign exchange value is highly stable. Prices have been liberalized and inflation has been steadily reduced from an annual rate of 1600 % in 1994 to an annual rate of 19 % in 1999 and 14% in 2000.

The vast majority of State owned commercial assets and enterprises have been privatized and the privatization program is to be completed by the end of 2005. The one notable exception is TELECOMA S.A. (originally scheduled to be privatized in 1999). Import/export restrictions have been eliminated for almost all items. However, government subsidies in all areas of the economy have not been eliminated yet. The foreign investment environment is only partially open. After declining steadily since independence, GNP experienced positive growth in the first quarter of 1999.

Since 1999 the government deficit has deteriorated significantly, external deficits have remained unsustainable high, and although inflation decreased, unemployment increased. In 1998, 1999 and 2000 the number of registered unemployed has been consistently high. In August 2001, the number of unemployed stood at 17.2%. As a result of disappointing tax revenues, and of higher expenditures for infrastructure repairs, public sector wages, interest payments, and social security benefits, the government deficit is estimated to have surged from 3.3% of GDP in 1999 to about 7% in 2001.

Corton: Sectoral Developments Including Services
In 1995, the agricultural sector represented 45 per cent of gross domestic product (GDP) and employed over 50 per cent of the population. The primary crops and agricultural commodities are tobacco, grains, potatoes, cotton, meat and wool. Inefficient transport and distribution, however, do not allow farmers to get their products to market without spoilage. It is also impossible to ensure that auto parts reach the plant in time for efficient production.

The government has been subsidizing farmers through the Farmers Insurance/Credit Unions, which offer low-interest loans and bad-weather insurance protection. Due to the serious budgetary deficits, the government is no longer able to maintain the Farmers Insurance/Credit Unions, which for all practical purposes have been bankrupt for some time now.

After agriculture, heavy industry is the next most important sector accounting for about 25 per cent of GDP in 1997. In 1995, heavy industry (including construction) accounted for 60 per cent of all industrial production, but due the inefficient and high costs of production many plants and factories closed causing an increase in a number of the unemployed. Overall, these traditional industries have not been creating a sufficient number of jobs. At the same time, the services sector in general is underdeveloped and inefficient.

The telecommunication sector is particularly underdeveloped, since it is still controlled by a state-monopoly for political reasons. The telecommunication sector is currently closed to foreign competition (state-owned Telecoma S.A.). However, the sector is in a troubled state, lacks modern technology, and needs to be modernized. For example, only a limited number of citizens in the urban areas have access to a telephone line and even if they do, the obsolete infrastructure causes many technical problems that prevent affective communication. Due to the serious budgetary problems, it is becoming clear that the government cannot afford to modernize this sector.

The services sector as a whole has a very low level of productivity. Employment in the services sector has been rising, however, because many workers, who left the agricultural sector and could not find jobs in manufacturing, have obtained jobs in a variety of unskilled services jobs. Many other workers have not been able to find any jobs. On the positive side, Corton has benefited from a growing tourism industry. Corton also has many highly educated university graduates. Unfortunately, many have not been able to find jobs in their fields. The lucky ones are working in lower skilled services jobs.

Corton: Additional Information
The services sector is still seriously underdeveloped because of the legacy of the planned economy that prevailed in the Republic of Corton for the past 70 years. That model favored heavy industrialization and agriculture but neglected the development of the services sector.

The Republic of Corton is desperate to develop a number of its services sectors to ensure the efficiency of the traditional industrial and agricultural sectors of the economy and to create new jobs in value added services.

The Republic of Corton is a transition economy. As part of its transition from a state-run economic system to a free market economy the Republic of Corton is trying to establish an efficient regulatory and administrative framework. The government has recently introduced a number of new laws and the trading partners have demanded to see them.

Here are the most important of them:

  • The Constitution of the Republic of Corton
    New Laws and Resolutions:
  • The Civil Code of the Republic of Corton
  • Bankruptcy Law of 15 October 1998
  • Law No. 1067 XII of 12 December 1995 On Banks and Banking (with amendments No. 1394 XII of 12 January 1998)
  • Law No. 67 of 20 April 1998 On Certification of Goods and Services
  • Resolution of the Government of the Republic of Corton No. 520 of 2 December 1998 On Adoption of the Regulation on the Procedure of Control of the Goods Imported to the Republic of Corton
  • Resolution of the Government No. 676 of 2 April 1996 On Adoption of the List of Goods (Works and Services), Produced On the Territory of the Republic of Corton and Imported to its Territory, Which are Subject to Certification On the Indicators of Safety
  • Law No. 1056 XII of 9 June 1996 On Commodity Exchange and Exchange Trade in the Republic of Corton
  • Law No. 895 XII of 28 May 1995 On Protection of Consumer Rights
  • Law of 6 March 1997 On Concessions and Foreign Concession Enterprises
  • Law of 7 February 1995 On Customs Code
  • Law of 18 April 1995 on implementation of the Custom Code
  • Law No. 683 XII of 20 December 1991 On General Principles of Denationalization, Privatization and Undertakings in the Republic of Corton
  • Law No. 1385 XII of 12 January 1994 On Denationalization and Privatization of State Ownership in the Republic of Corton
  • Law No. 3416 XII of 17 April 1999 On Protection of the Environment
  • Law No. 6 1 of 5 July 1997 On Operations in Foreign Currency
  • Law No. 1076 of 16 December 1992 On Free Economic Zones in Corton
  • Law No. 943 XII of 2 July 1995 On People's Health Protection
  • Law No. 1548 XII of 27 May 1996 On Making, Ratifying, Implementing and Denouncing International Agreements of the Republic of Corton
  • Law No. 1478 XII of 14 April 1994 On the Local Taxes and Fees
  • Law No. 7 of 2 April 1996 On Providing Unity of Measurements
  • Law of 15 December 1996 On Mineral Resources
  • Law On the National Bank
  • Law No. 1481 XII of 14 April 1995 On Non Tax Payments
  • Law No. 34 of 1 July 1996 On Normative Legal Acts of the Republic of Corton
  • Law No. 874 XII of 6 March 1995 On the State Tax Service
  • Law No. 1553 XII of 28 May 1996 On the Basic Principles of the Treasury of the Republic of Corton
  • Law No. 660 XII of 17 December 1997 On Taxes from Companies
  • Law on Procurement of Goods, Works and Services of 13 May 1997
  • Law on Subsurface Resources of 2 July 1997
  • Law on State Regulations of Foreign Economic Activities of 2 July 1997
  • Law on Banks and Banking Activities of 29 July 1997
  • Amendments to the Customs Tariff Law of 30 July 1997
  • Law No. 1515-XII on Measures Concerning Temporary Entry and Stay
  • Civil Code Part II (with section on intellectual property) of 5 January 1999
  • Criminal Code (with section on intellectual property) of 1 January 1999
  • Law on Copyrights and Neighbouring Rights of 14 January 1999
  • Law on Trademarks and Appellation of Places of Origin of 14 January 1999
  • Patent Law of 14 January 1999
  • Law on Integrated Circuits Topology of 30 March 1999
  • Law on Commercial Secrets of 30 March 1999
  • Law on Legal Protection of Software for Computers and Databases of 31 March 1999
  • Presidential Decrees
  • Presidential Decree No. 134 of 5 May 1998 On Regulating Currency Transactions
  • Presidential Decree No. 280 of 23 September 1998 On Changing the Procedure for Licensing Raw Materials
  • Presidential Decree No. 34 On Some Measures for Protection and Development of Private Entrepreneurship of 25 March 1999
  • Presidential Decree No. 42 of 27 February 1999 On Taxation in Agriculture
  • Instruction On Customs Procedures for Transit Cargo (approved by Order No. 147 of the State Customs Inspection on 23 August 1995)
  • Instruction On Application of Personal Examination (approved by Order No. 176 1 of the State Customs Inspection on 17 September 1995)
  • Temporary Regulations On Drawing, Submitting and Considering Applications On Official Registration of Software, Databases and Topographies (Main Department of Intellectual Property of the Ministry of Education and Science of 29 August 1996)

 

 

Republic of CORTON - SCHEDULE OF SPECIFIC COMMITMENTS

Modes of supply:  

(1) Cross-border supply      (2) Consumption supply             (3) Commercial presence   (4) Presence of natural persons

Sector or sub-sector

Limitations on market access

Limitations on national treatment

Additional commitments

I.                    HORIZONTAL COMMITMENTS

ALL SECTORS INCLUDED

IN THIS SCHEDULE

 (4)   Unbound except for measures concerning temporary entry and stay of nationals of another member of UTF who fall into the categories below (According to Law 1515 on Measures Concerning Temporary Entry and Stay) :

Services salespersons ‑ persons not based in the territory of the Corton Republic and receiving no remuneration from a source located within the Corton Republic, who are engaged in activities related to representing a services supplier for the purpose of negotiating for the sale of the services of that supplier where:

(a)                such sales are not directly made to the general public;  and

(b)          the salesperson is not engaged in supplying the service.  Entry for persons named in this section is limited to a ninety‑day period.

 (4) Unbound except for the entry or 

 temporary stay of a natural person who    falls in one of the categories included in  the market access column.

 

Modes of supply:

(1) Cross-border supply             (2) Consumption supply              (3) Commercial presence                       (4) Presence of natural persons  

Sector or sub-sector

Limitations on market access

Limitations on national treatment

Additional commitments

I. HORIZONTAL COMMITMENTS

ALL SECTORS INCLUDED

IN THIS SCHEDULE

Intra‑corporate transferees ‑ managers, executives and specialists, as defined below, who are employees of firms that provide services within the Corton Republic through a branch, subsidiary, or affiliate established in the Corton Republic and who have been in the prior employ of their firm outside the Corton Republic for the period of not less than one year immediately preceding the date of their application for admission and who are one of the following:

(a)          Managers ‑ persons within an organization who primarily direct the organization, or its sub‑division, supervise and control the work of other supervisory, professional or managerial employees, have the authority to hire and fire or recommend hiring, firing, and exercise discretionary authority over day‑to‑day operations. Does not include first‑line supervisors, unless the employees supervised are professionals, nor does it include employees who primarily perform tasks necessary for the provision of the service.

   

Modes of supply:  

(1) Cross-border supply      (2) Consumption supply             (3) Commercial presence   (4) Presence of natural persons

Sector or sub-sector

Limitations on market access

Limitations on national treatment

Additional commitments

I.                    HORIZONTAL COMMITMENTS

ALL SECTORS INCLUDED

IN THIS SCHEDULE

 (b)   Executives ‑   persons within the organization who primarily direct the management of the organization, establish the goals and policies of the organization, exercise wide latitude in decision‑making, and receive only general supervision or direction from higher‑level executives, the board of directors, or stockholders of the business.  Executives would not directly perform tasks related to the actual provision of a service or services of the organization.

   (c)     Specialists ‑  persons within an organization who possess knowledge at an advanced level of continued expertise and who possess proprietary knowledge of the organizationís services, research, techniques, or management. (Specialists may include, but are not limited to, members of licensed professions.)

      Persons responsible for the setting up of a commercial presence.

   

Modes of supply:  

(1) Cross-border supply      (2) Consumption supply             (3) Commercial presence   (4) Presence of natural persons

Sector or sub-sector

Limitations on market access

Limitations on national treatment

Additional commitments

I.                    HORIZONTAL COMMITMENTS

ALL SECTORS INCLUDED

IN THIS SCHEDULE

 Persons as employees of an enterprise     engaged in substantive business in the Corton Republic without having commercial presence in the Corton Republic who provide a service as a professional of a service sector.

Entry for all persons named in this section is limited to a five‑year period that may be extended for up to two additional years for a total term not to exceed ten years.

   

Modes of supply:  

(1) Cross-border supply      (2) Consumption supply             (3) Commercial presence   (4) Presence of natural persons

Sector or sub-sector

Limitations on market access

Limitations on national treatment

Additional commitments

 II.     SECTOR-SPECIFIC COMMITMENTS

2. CONSTRUCTION

General construction work for buildings and highways

 (1)       None

 (2)       None

 (3)       None 

 (4)       Unbound except as indicated under horizontal commitments

 (1)       None

 (2)       None

 (3)       None 

 (4)        Unbound except as indicated under horizontal commitments

 

Modes of supply:  

(1) Cross-border supply      (2) Consumption supply             (3) Commercial presence   (4) Presence of natural persons

Sector or sub-sector

Limitations on market access

Limitations on national treatment

Additional commitments

 II.     SECTOR-SPECIFIC COMMITMENTS

  1.  

DISTRIBUTION SERVICES

Retailing services

 (1)       None

 (2)       None

 (3)       None 

 (4)       Unbound except as indicated under horizontal commitments

 (1)       None

 (2)       None

 (3)       None 

 (4)       Unbound except as indicated under horizontal commitments

 

Modes of supply:  

(1) Cross-border supply      (2) Consumption supply             (3) Commercial presence   (4) Presence of natural persons

Sector or sub-sector

Limitations on market access

Limitations on national treatment

Additional commitments

 II.     SECTOR-SPECIFIC COMMITMENTS

4.     FINANCIAL SERVICES

      All Insurance

(1)    Unbound, except for insurance of cargo transportation

 (2)       None

 (4)       Unbound except as indicated under horizontal commitments

  (1)    None

 (2)    None

 

 (4)       Unbound except as indicated under horizontal commitments

 

Modes of supply:  

(1) Cross-border supply      (2) Consumption supply             (3) Commercial presence   (4) Presence of natural persons

Sector or sub-sector

Limitations on market access

Limitations on national treatment

Additional commitments

II    SECTOR-SPECIFIC COMMITMENTS

5. TOURISM AND TRAVEL RELATED SERVICES

Hotels and Restaurants

 (1)    None

 (2)    None

 (3)    None

 (4)    Unbound, except as indicated in horizontal section.

 (1)   None

 (2)  None

 (3)    None

 (4)    Unbound except as indicated in the horizontal section

 

Modes of supply:  

(1) Cross-border supply      (2) Consumption supply             (3) Commercial presence   (4) Presence of natural persons

Sector or sub-sector

Limitations on market access

Limitations on national treatment

Additional commitments

II    SECTOR-SPECIFIC COMMITMENTS

5. TOURISM AND TRAVEL RELATED SERVICES

Travel Agencies and Tour Operators

 (1)    None

 (2)    None

 (3)    Unbound

 (4)    Unbound except as indicated in the horizontal section

 (1)    None

 (2)  None

 (3)    Unbound

 (4)    Unbound except as indicated in the horizontal section

 

Modes of supply:  

(1) Cross-border supply      (2) Consumption supply             (3) Commercial presence   (4) Presence of natural persons

Sector or sub-sector

Limitations on market access

Limitations on national treatment

Additional commitments

II    SECTOR-SPECIFIC COMMITMENTS

6. TRANSPORT SERVICES

Road Transport Services

Freight Transportation

 (1)    None

 (2)    None

 (3)    None

 (4)    Unbound, except as indicated in horizontal section.

 (1)    None

 (2)  None

 (3)    None

 (4)    Unbound, except as indicated in horizontal section.

 

Modes of supply:  

(1) Cross-border supply      (2) Consumption supply             (3) Commercial presence   (4) Presence of natural persons

Sector or sub-sector

Limitations on market access

Limitations on national treatment

Additional commitments

II    SECTOR-SPECIFIC COMMITMENTS

6. TRANSPORT SERVICES

Road Transport Services

Passengers Transportation

 (1)    None

 (2)    None

 (3)    None

 (4)    Unbound, except as indicated in horizontal section.

 (1)    None

 (2)  None

 (3)    None

(4)        Unbound, except as indicated in horizontal section.

 

Modes of supply:  

(1) Cross-border supply      (2) Consumption supply             (3) Commercial presence   (4) Presence of natural persons

Sector or sub-sector

Limitations on market access

Limitations on national treatment

Additional commitments

II    SECTOR-SPECIFIC COMMITMENTS

6. TRANSPORT SERVICES

Maritime Transport Services

(only rental of vessels with crew)

 (1)    None

 (2)    None

 (3)    None

 (4)    Unbound, except as indicated in horizontal section.

 (1)    None

 (2)    None

 (3)    None

 (4)    Unbound, except as indicated in horizontal section.

 

 


Footnotes
[1] Including transaction processing.


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