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Items
Details
Author
Title
Legal guide to GATS / Nellie Munin.
Published
Austin : Wolters Kluwer Law & Business ; Alphen aan den Rijn : Kluwer Law International, [2010]
Distributed
Frederick, MD : Sold and distributed in North, Central and South America by Aspen Publishers, Inc.
Copyright
©2010
Call Number
K3973 .M86 2010
ISBN
9789041128249
9041128247
9041128247
Description
xxxiv, 494 pages ; 25 cm.
System Control No.
(OCoLC)317929408
Bibliography, etc. Note
Includes bibliographical references (pages [461]-482) and index.
Record Appears in
Variant Title
Legal guide to General Agreement on Trade in Services
Table of Contents
List of Abbreviations
xxix
Acknowledgements
xxxi
Introduction
xxxiii
pt. 1
The General Agreement on Trade in Services: History, Structure and Basic Principles
1
ch. 1
The General Agreement on Trade in Services
3
1.1.
International Trade in Services
3
1.1.1.
The International Trade Arena
3
1.1.2.
Barriers to Trade
4
1.1.3.
International Trade in Services
5
1.2.
The Legal Framework and its Historic Evolution
11
1.2.1.
From GATT (1947) to WTO (1994)
11
1.2.2.
GATS History: The Uruguay Round (1986-1994)
14
1.2.3.
Why Services Were Not Included in GATT?
16
1.2.4.
GATS Drafts
16
1.2.5.
The `GATS 2000'
17
1.2.6.
Conclusion
17
ch. 2
The Framework of GATS
19
2.1.
The Framework of GATS
19
2.1.1.
A Structure Typical to International Trade Agreements
19
2.1.2.
The Structure of GATS
19
2.2.
The Preamble
20
2.3.
Rules of Origin
20
2.4.
Part I
21
2.4.1.
The Definition of `Services'
21
2.4.2.
GATS Scope of Application
21
2.4.2.1.
Application to Service Suppliers
21
2.4.2.2.
Application to All Government Levels
21
2.5.
Part II
22
2.5.1.
General Framework
22
2.5.2.
Unconditional Obligations
22
2.5.2.1.
Most Favoured Nation
22
2.5.2.2.
Transparency
23
2.5.2.3.
Recognition
23
2.5.2.4.
Busines Practices
24
2.5.3.
Conditional Obligations
24
2.5.3.1.
Domestic Regulation
24
2.5.3.2.
Monopolies and Exclusive Service Suppliers
24
2.5.3.3.
Payments and Transfers
25
2.5.3.4.
Increased Participation of Developing Countries
25
2.6.
Exceptions to the Agreement's Obligations
25
2.6.1.
Economic Integration Agreements
25
2.6.1.1.
Labour Markets' Integration
26
2.6.2.
Restrictions to Safeguard the Balance of Payments
26
2.6.3.
General and Security Exceptions
26
2.7.
Part III: Specific Commitments
27
2.7.1.
Market Access
27
2.7.2.
Quantitative Restrictions
28
2.7.3.
Qualitative Restrictions
28
2.7.3.1.
National Treatment
28
2.7.3.2.
Non-discrimination: Additional Commitments
28
2.8.
Institutional Provisions
29
2.8.1.
Part V
29
2.8.2.
Part VI
29
2.8.2.1.
Denial of Benefits
29
2.8.2.2.
GATS Sector-Specific Instruments
30
2.9.
Subjects Still Under Negotiation
30
2.10.
Conclusion
31
ch. 3
GATS Interpretation
33
3.1.
Introduction
33
3.2.
The Vienna Convention on the Law of Treaties, 1969
34
3.3.
Interpretation in Good Faith
36
3.4.
`Object and Purpose'
37
3.5.
The Text
38
3.5.1.
The Preamble
39
3.5.2.
Annexes and Additional Instruments
41
3.5.3.
Schedules of Specific Commitments
42
3.5.4.
Footnotes
42
3.5.5.
Interpretation of the Text by the WTO Adjudicating Bodies
43
3.6.
The Context
44
3.6.1.
Any Subsequent Practice
45
3.6.2.
WTO Agreements
46
3.6.2.1.
Alternative Legal Basis
46
3.6.2.2.
Means of Interpretation
48
3.6.2.3.
GATS-GATT Relationship
48
3.6.3.
`Any Relevant Rules of International Law'
50
3.7.
Supplementary Means
50
3.7.1.
Preparatory Work
51
3.8.
Broader Policy Considerations
52
3.8.1.
The International Arena: The Hidden Layer of Interpretative Context
52
3.8.2.
Other International Organizations
53
3.8.2.1.
Inter-organizational Cooperation for the Achievement of Common Goals
53
3.8.2.2.
Other International Organizations as Alternative Frameworks
54
3.8.2.3.
Other International Organizations as Complementary Frameworks
54
3.8.3.
GATS: A WTO Agreement
54
3.8.3.1.
The WTO: A Politically Motivated Organization
55
3.9.
A Dynamic Agreement in a Changing Reality
55
3.10.
Conclusion
56
pt. 2
GATS in Details
57
ch. 4
GATS Scope of Application
59
4.1.
GATS Provision
59
4.1.1.
The Considerations behind Drafting
59
4.2.
GATS Article 1:1 Coverage: Before Any Substantive Assessment
60
4.3.
Legal Analysis
60
4.3.1.
Measures
61
4.3.2.
`Whether in the Form of Law, Regulation, Rule, Procedure, Decision, Administrative Action or Any Other Form'
61
4.3.3.
The Interpretation of `Measure' in Article 3.3 DSU
62
4.3.4.
GATT Experience
63
4.3.5.
Specific Groups of Measures
64
4.3.5.1.
Five Categories Examined by the Sub-Committee for Trade in Services
64
4.3.5.2.
Electronic Commerce
65
4.3.5.3.
Can a Practice Be Considered `A Measure'?
65
4.3.6.
`Measures by Members'
66
4.3.6.1.
GATS Provision
66
4.3.6.2.
Comparison to GATT Provisions
68
4.3.6.2.1.
Application to Non-governmental Bodies
68
4.3.6.2.2.
The Reasonability Standard
68
4.3.6.2.3.
The Conditions for Assuming Central Government Responsibility over Acts of Lower Government Levels
70
4.3.6.2.4.
The Same Standard of Behaviour for All Government Levels
70
4.3.6.2.5.
The Nature of Measures Taken by the Lower Government Levels
71
4.3.6.2.6.
The Legal Consequences of Central Government Responsibility
72
4.3.7.
Measures by Members, Affecting Trade in Services
72
4.3.7.1.
Distinguishing the Source from the Effect of a Measure
72
4.3.7.2.
Examples of `Measures'
73
4.3.7.2.1.
Measures in Respect of the Purchase, Payment of Use of a Service
74
4.3.7.2.2.
Measures in Respect of the Access and Use of Public Ancillary Services
74
4.3.7.2.3.
Measures in Respect of the Presence of Foreign Persons
75
4.3.7.2.4.
The List is Indicative
75
4.3.7.2.4.1.
Only Measures Affecting Services and Service Suppliers
75
4.3.7.2.4.2.
Two Explicit Exceptions
77
4.3.7.3.
`By Members'
77
4.3.7.4.
Affecting
77
4.3.7.4.1.
A Link between Measures and Trade
77
4.3.7.4.2.
The Order of Examination
78
4.3.7.4.3.
Broad Scope of Application
78
4.3.7.4.3.1.
Not Necessarily Aiming Directly at Services
79
4.3.7.4.3.2.
Modification of Competitive Conditions
80
4.3.7.4.4.
GATT Interpretation
80
4.3.7.4.5.
Decision Must Be Based on Facts
80
4.3.7.5.
Services: `Except Services Supplied in the Exercise of Governmental Authority'
81
4.3.7.5.1.
`Supplied....on a Commercial Basis'
82
4.3.7.5.2.
`Competition'
83
4.3.7.5.3.
`Governmental Authority'
84
4.4.
Conclusion
85
ch. 5
GATS Rules of Origin
87
5.1.
Introduction
87
5.1.1.
Rules of Origin and Their Role
87
5.1.2.
Rules of Origin as Barriers to Trade
88
5.1.3.
Rules of Origin for International Trade in Goods
88
5.1.4.
GATT-WTO Rules of Origin
89
5.1.5.
Rules of Origin for Trade in Services
89
5.2.
GATS Rules of Origin
90
5.2.1.
Service of Another Member
90
5.2.1.1.
Five Options
91
5.2.1.2.
Cases of a Mixed Source
92
5.2.1.3.
Persons
92
5.2.2.
Natural Person of Another Member
93
5.2.3.
Juridical Person of Another Member
97
5.2.4.
The Relationship between the Definitions of `Service Supplier' and `Commercial Presence'
101
5.3.
The Criticism on GATS Rules of Origin
102
5.3.1.
Narrow Scope of Application
102
5.3.2.
Unclear, Vague Language
102
5.4.
The Relationship Between GATS Rules of Origin and the Rules of Origin of Members
103
5.5.
Conclusion
104
ch. 6
The Most Favoured Nation Principle
105
6.1.
Introduction
105
6.2.
The Burden of Proof
106
6.3.
Scope of Application
107
6.3.1.
Measures
107
6.3.1.1.
`Affecting'
108
6.4.
`Immediately and Unconditionally'
108
6.4.1.
`Immediately'
109
6.4.2.
`Unconditionally'
109
6.4.3.
No Offset of More Favourable with Less Favourable Treatment
111
6.4.4.
List of Exemptions
111
6.4.4.1.
Aspects of Examination in a Dispute Involving a Claim Concerning an MFN Exemption Listed in the Exemptions List
114
6.4.5.
Exchanges of Services in Frontier Zones
114
6.4.6.
Additional Exceptions to the MFN Principle
114
6.5.
Services and Service Suppliers Entitled to MFN Treatment
115
6.6.
The `No Less Favourable Treatment' Standard
116
6.6.1.
Interpretation of `No Less Favourable Treatment' by WTO Adjudicating Bodies
116
6.6.1.1.
Broad Scope of Application
116
6.6.1.2.
A Similar Standard: Preventing Discrimination De Facto and De Jure
117
6.6.1.3.
The Competitive Opportunities Test
118
6.6.1.3.1.
Vertical Integration, Exclusive Distribution Arrangements and Mutuality Agreements
120
6.6.1.3.2.
The Aim-and-Effect Test
121
6.6.1.4.
Minimum Standard
121
6.6.2.
`Like' Services and Service Suppliers
122
6.7.
Conclusion
124
ch. 7
Schedules of Specific Commitments
125
7.1.
Introduction
125
7.2.
The Relevant GATS Provisions
127
7.2.1.
`Specify' (Article XX:1)
128
7.2.2.
`Terms', `Limitations', `Conditions', `Qualifications'
128
7.2.3.
Broad Interpretation of Article XX:2
128
7.3.
The Binding Version
129
7.4.
Guidelines by the WTO Secretariat
129
7.4.1.
The 1993 and 1997 Guidelines
129
7.4.2.
The 2001 Guidelines
129
7.4.3.
The Legal Status of the Guidelines: Context or Supplementary Means?
130
7.5.
The Structure of Schedules
131
7.6.
Three Categories of Commitments
132
7.7.
The Time-Frame for a Commitment and `Pre-Commitment'
135
7.8.
Measures Inconsistent with Both Articles XVI and XVII
136
7.9.
The Coverage of Commitments by Sector and Mode of Supply
136
7.9.1.
Service Transactions Requiring the Use of More than One Mode of Supply
137
7.10.
Levels of Commitment
137
7.11.
What Should not be Scheduled
138
7.12.
Interpretation of the Specific Commitments: The Difficulties
138
7.12.1.
The Rules of Interpretation
138
7.12.1.1.
Introductory Heading
139
7.12.2.
Classification of Services
140
7.12.3.
New Services
140
7.12.4.
Specific Difficulties of Interpretation: Mode 4 Commitments
143
7.12.5.
Scheduling Mistakes
143
7.13.
Conclusion
144
ch. 8
National Treatment
147
8.1.
Introduction
147
8.2.
The Purpose of Article XVII
148
8.3.
Burden of Proof
149
8.4.
Scope of Application of the National Treatment Obligation
149
8.4.1.
Application to Modes of Supply
149
8.4.2.
Application to Services and Service Suppliers
150
8.4.2.1.
Potential Service Suppliers
150
8.4.3.
Application to Measures
151
8.4.3.1.
`Affecting'
152
8.4.3.1.1.
`Affecting': Actual and Potential Effect
154
8.4.3.2.
`Supply of Services'
155
8.4.3.3.
Three Possibilities to the Potential Domain of National Treatment
156
8.4.3.4.
Inherent Competitive Disadvantages of Foreign Service Suppliers
157
8.5.
The Standard of Treatment: `No Less Favourable'
158
8.5.1.
A General Effect
159
8.5.2.
`Formally Identical' or `Formally Different' Treatment
160
8.5.3.
Modification of Competitive Conditions
162
8.5.3.1.
Definition of Potential Competitors
163
8.5.3.2.
Market Definition
163
8.5.3.3.
Scope of the Test
165
8.5.4.
The Scope of Adverse Effect and the `De Minimis' Standard
165
8.6.
`Likeness'
166
8.6.1.
The Concept of `Likeness'
167
8.6.1.1.
Hypothetical Likeness?
169
8.6.2.
`Like Service Suppliers'
170
8.6.2.1.
Technological Neutrality?
170
8.6.3.
Are `Like Services' and `Like Service Suppliers' Necessarily Linked?
171
8.6.4.
Relevance of Regulatory Purpose for `Likeness' Determination
174
8.6.5.
Does `Likeness' Include Directly Competitive or Substitutable Services/Service Suppliers?
175
8.7.
The Non-Discrimination Standard: Conclusion
176
8.8.
The `Aim and Effect' Test
177
8.9.
The Interpretation of Article XVII of GATS Based on Article III of GATT
179
8.9.1.
Relationships between Article III of GATT and Article XVII of GATS
179
8.10.
The Necessity Test
180
8.11.
Alternative Interpretation of Article XVII
181
8.12.
Conclusion
182
ch. 9
Market Access
183
9.1.
Introduction
183
9.2.
Article XVI
183
9.2.1.
Article XVI:1: `Treatment No Less Favourable'
184
9.2.1.1.
Application to Specific Commitments
185
9.2.1.2.
Application to Measures
185
9.2.1.3.
The Competitive Opportunities Test
185
9.2.1.4.
`Terms, Limitations and Conditions'
186
9.2.1.5.
`Agreed and Specified'
188
9.2.1.6.
Movement of Capital
188
9.2.2.
Article XVI:2
189
9.2.2.1.
The Burden of Proof
189
9.2.2.2.
The Chapeau
190
9.2.2.3.
Six Limitations on Market Access
191
9.2.2.3.1.
Technological Neutrality
191
9.2.2.3.2.
Limitations on the Number of Service Suppliers
192
9.2.2.3.2.1.
Monopolies and Exclusive Service Suppliers
194
9.2.2.3.3.
Limitations on the Total Value of Service Transactions or Assets
195
9.2.2.3.4.
Limitations on the Total Number of Service Operations or on the Total Quantity of Service Output
195
9.2.2.3.4.1.
`Total'
195
9.2.2.3.4.2.
`Services Operations', `Services Output'
196
9.2.2.3.4.3.
The Manner by which the Measures are Expressed
196
9.2.2.3.4.4.
Measures which Limit Input for the Supply of Service are Allowed
197
9.2.2.3.5.
Limitations on the Total Number of Natural Persons
198
9.2.2.3.5.1.
Scope of Coverage: Modes of Supply
198
9.2.2.3.5.2.
`Or'
198
9.2.2.3.5.3.
`Necessary for, and Directly Related to'
198
9.2.2.3.6.
Limitations on the Manner of Incorporation
199
9.2.2.3.7.
Limitations on the Participation of Foreign Capital
199
9.2.3.
The Economic Needs Test
200
9.2.4.
A Measure May be Included in Some of the Groups
200
9.2.5.
Article XVI:2: An Exhaustive List
201
9.2.6.
Interpretation Rules for the List
202
9.2.7.
Relationship between Articles XVI:1 and XVI:2
204
9.2.8.
Does Article XVI Apply to Consumers?
205
9.3.
Quantitative Restrictions in GATT: A Comparison
206
9.4.
Payments and Transfers
208
9.4.1.
Article XI:1
209
9.4.2.
Article XI:2
211
9.5.
Relationship between Market Access (Article XVI) and National Treatment (Article XVII)
211
9.6.
Relationship between Market Access (Article XVI) and Domestic Regulation (Articles XIV and VI)
214
9.7.
Conclusion
216
ch. 10
Economic Integration Agreements
217
10.1.
Introduction
217
10.2.
The Economic Aspect of Economic Integration Agreements
220
10.2.1.
Cost of Economic Integration Agreement
222
10.3.
Article V of GATS
222
10.3.1.
Article V:1
224
10.3.1.1.
Comparison to Article XXIV:1 of GATT
225
10.3.1.1.1.
The Agreements Covered: `Economic Integration Agreements'
225
10.3.1.1.2.
`Substantial Sectoral Coverage'
226
10.3.1.1.3.
`Substantially all Discrimination'
230
10.3.1.1.3.1.
`Substantially'
232
10.3.1.1.3.2.
In the Sense of Article XVII
232
10.3.1.1.3.3.
Elimination of Existing Discriminatory Measures, and/or Prohibition of New or More Discriminatory Measures
233
10.3.1.1.4.
Elimination of Discrimination: When?
233
10.3.1.1.5.
The Exception to the Obligation for Eliminating Discrimination
234
10.3.2.
Article V:2: Wider Process of Economic Integration
235
10.3.3.
Article V:3: Developing Countries
236
10.3.3.1.
Juridical Persons
237
10.3.4.
Article V:4: Additional Conditions
238
10.3.4.1.
Scope of Application
238
10.3.4.1.1.
Members and Non-Members
238
10.3.4.2.
`Shall Not... Raise the Overall Barriers to Trade within the Respective Sectors or Subsectors'
238
10.3.4.2.1.
`Overall'
240
10.3.4.2.2.
Barriers to Trade
241
10.3.4.2.3.
`Overall Level of Trade Barriers'
241
10.3.4.2.4.
`Facilitate Trade between the Parties'
242
10.3.5.
Article V:5: Compensation Due to Modification of Commitments
242
10.3.6.
Article V:6: Rights of Juridical Persons
243
10.3.6.1.
`Juridical Persons'
243
10.3.6.2.
`Substantive Business Operations'
243
10.3.6.3.
`In the Territory of the Parties'
244
10.3.7.
Article V:7: Notification
244
10.4.
Article Vbis: Labour Markets' Integration
245
10.5.
Conclusion
248
ch. 11
GATS and Competition Rules
251
11.1.
Introduction
251
11.2.
GATS and Anti-Competitive Practices
252
11.2.1.
Application of Existing Disciplines
253
11.2.1.1.
Monopolies and Exclusive Service Suppliers: Article VIII
253
11.2.1.1.1.
Monopolies and Exclusive Service Suppliers
254
11.2.1.1.1.1.
`Monopoly Supplier of Services'
254
11.2.1.1.1.2.
Exclusive Service Suppliers
255
11.2.1.1.2.
Manner of Acting
256
11.2.1.1.2.1.
`In the Supply of the Monopoly Service'
257
11.2.1.1.2.2.
`In its Territory'
257
11.2.1.1.2.3.
Application of Disciplines: MFN and Specific Commitments
257
11.2.1.1.3.
Article VIII:2
258
11.2.1.1.3.1.
`Affiliated Company'
259
11.2.1.1.3.2.
Scope of Monopoly Rights
260
11.2.1.1.3.3.
`Abuse of Monopoly Position'
260
11.2.1.1.4.
Article VIII:3
260
11.2.1.1.5.
Article VIII:4
261
11.2.1.2.
Business Practices - Article IX
261
11.2.1.2.1.
`Certain Business Practices of Service Suppliers'
262
11.2.1.2.2.
`May' [Restrain Competition]
263
11.2.1.2.3.
`Anti-competitive Practices'
263
11.2.1.2.4.
`Restrain Competition and Thereby Restrict Trade in Services'
264
11.2.1.2.5.
Practical Implications of Article IX
265
11.2.1.2.5.1.
Consultations
265
11.2.1.2.5.2.
Sanctions
266
11.2.1.2.5.3.
Basis for Further Negotiations
266
11.2.1.3.
The Disadvantages of Existing Disciplines
267
11.2.2.
The Development of New Disciplines in the WTO Context
267
11.3.
Conclusion
268
ch. 12
Administrative Standards and Recognition of Professional Qualifications
269
12.1.
Introduction
269
12.2.
Scope of Application: Article VI:1
272
12.3.
The Legal Obligation
273
12.3.1.
The Subject of Reference: Administration, not Substance
273
12.3.1.1.
Comparison to Article X:3(a) of GATT
273
12.3.2.
The Burden of Proof
274
12.3.3.
Uniform, Impartial, Reasonable
274
12.3.3.1.
Are the three Standards Cumulative or Independent?
277
12.4.
Review of Administrative Decisions: Article VI:2
277
12.4.1.
Administrative Decisions Affecting Trade in Services
278
12.4.2.
The Tribunals
278
12.4.2.1.
The Tribunals' Scope of Authority
279
12.4.2.2.
The Tribunals' Relations with the Administrative Authority: Independence?
280
12.4.2.2.1.
The Agencies Covered
280
12.4.2.3.
Appeal on a Tribunal's Decision
281
12.4.2.4.
The Constitutional Exception
281
12.5.
Administrative Authorization: Article VI:3
281
12.5.1.
Article VI:1,3 in GATS Jurisprudence
282
12.5.2.
The Purpose of Article VI:1-3
283
12.6.
Future Disciplines on Recognition of Professional Qualifications: Article VI:4,5
283
12.6.1.
Article VI:4
283
12.6.1.1.
Scope of Coverage: `Measures Relating'
283
12.6.1.2.
`Qualifications', `Technical Standards', `Licensing', `Requirements', `Procedures'
284
12.6.1.3.
The Criteria to Be Fulfilled by the Disciplines Developed
285
12.6.1.3.1.
Objective and Transparent Criteria
286
12.6.1.3.2.
The Necessity Test
286
12.6.1.4.
Potential Overlap with other GATS Provisions
289
12.6.1.5.
The Doha Round Developments
291
12.6.2.
Nullification or Impairment: Article VI:5
291
12.6.2.1.
Scope of Application
292
12.6.2.2.
Burden of Proof
292
12.7.
Verification of Professional Competence
295
12.7.1.
Scope of Application
295
12.7.2.
Purpose
295
12.7.3.
`Adequate Procedures'
296
12.8.
The Relationship Between Article VI and Articles XVI (Market Access) and XVII (National Treatment)
296
12.9.
Development of Future Disciplines Concerning Recognition of Professional Qualifications
296
12.10.
Conclusion
301
ch. 13
Transparency
303
13.1.
Introduction
303
13.2.
Publication of Relevant Measures: Article III:1
306
13.2.1.
Relevant Measures of General Application
306
13.2.1.1.
`Pertain to or Affect the Operation of this Agreement'
307
13.2.1.2.
Affect the Operation of the Agreement
307
13.2.1.3.
Comparison to GATT Article X
308
13.2.2.
`Prompt' Publication
308
13.2.2.1.
Time of Publication
308
13.2.2.2.
Place of Publication
310
13.3.
Article III:2
310
13.3.1.
`Not Practicable'
310
13.3.2.
`Publicly Available'
311
13.3.3.
Language of Publication
311
13.4.
Article III:3
311
13.4.1.
Scope of Application
312
13.4.2.
`Prompt' Notification
312
13.5.
Article III:4: Enquiry and Contact Points
313
13.6.
Reverse Notification: Article III:5
314
13.7.
Comparison to Article X of GATT
315
13.8.
The Exception to the Transparency Rule
315
13.8.1.
Scope of Application
316
13.8.2.
Circumstances where Article IIIbis may be Invoked
316
13.9.
Conclusion
317
ch. 14
GATS and the Developing Countries
319
14.1.
Introduction
319
14.2.
GATS and Developing Countries
323
14.2.1.
The Preamble
323
14.2.2.
Specific provisions
324
14.2.2.1.
Facilitating Terms
324
14.2.2.1.1.
Article IV:1: Principles Underlying Negotiations
325
14.2.2.1.2.
Article IV:2: Contact Points
326
14.2.2.1.3.
Article IV:3: Least Developed Countries
327
14.2.2.2.
Specific Commitments: Articles XIX and XXV
328
14.2.2.2.1.
Article XIX
328
14.2.2.2.2.
Article XXV
329
14.2.2.3.
Economic Integration Agreements
329
14.2.2.4.
Balance of Payment Difficulties
330
14.2.2.5.
Subsidies
331
14.2.2.6.
Telecommunications Networks
331
14.3.
The Meaning of GATS Provisions for the Developing Countries
333
14.4.
Conclusion
334
ch. 15
The Safety Valves of GATS
337
15.1.
Introduction
337
15.2.
Temporary `Safety Valves'
337
15.2.1.
Waiver: WTO Agreement
337
15.2.2.
The Opt-out Clause: WTO Agreement
338
15.2.3.
General Exceptions: GATS
338
15.2.3.1.
Article XIV: General Structure and Order of Analysis
340
15.2.3.2.
Application of GATS Article XIV to other WTO Agreements
341
15.2.3.3.
Extraterritorial Effect
342
15.2.3.4.
The List of Exceptions Allowed by Article XIV of GATS
343
15.2.3.4.1.
`Measures Necessary ...'
343
15.2.3.4.2.
Measures Necessary to Protect Public Morals or to Maintain Public Order (Article XIV(a))
356
15.2.3.4.2.1.
`Public Morals' and `Public Order'
356
15.2.3.4.2.1.1.
Scope
356
15.2.3.4.2.1.2.
Content - Who Defines It?
358
15.2.3.4.2.1.3.
The Procedure
358
15.2.3.4.3.
Measures Necessary to Protect Human, Animal or Plant Life or Health (Article XIV (b))
359
15.2.3.4.3.1.
Scope
359
15.2.3.4.3.2.
The Procedure
359
15.2.3.4.3.3.
Territorial Scope of Application
359
15.2.3.4.3.4.
Content
360
15.2.3.4.3.5.
Health and Health Concerns
361
15.2.3.4.3.6.
Assessment of Risk (to Human, Animal or Plant Life or Health)
361
15.2.3.4.4.
Measures Necessary to Secure Compliance with Laws or Regulations which are not Inconsistent with the Provisions of This Agreement (Article XIV(c))
363
15.2.3.4.4.1.
Scope and Content
363
15.2.3.4.4.2.
The Procedure
365
15.2.3.4.4.3.
`Laws and Regulations'
366
15.2.3.4.4.4.
`Secure Compliance'
366
15.2.3.4.5.
Measures Inconsistent with Article XVII (National Treatment) (Article XIV(d))
367
15.2.3.4.5.1.
Purpose
367
15.2.3.4.5.2.
The Procedure
368
15.2.3.4.5.3.
`Direct Taxes'
368
15.2.3.4.5.4.
`Measures Aimed at Ensuring the Equitable or Effective Imposition or Collection of Direct Taxes'
368
15.2.3.4.5.5.
Definition of Tax Terms or Concepts - Under Domestic Law
370
15.2.3.4.5.6.
Interpretation Rules for Article XIV(d)
370
15.2.3.4.6.
Measures Inconsistent with Article II (MFN) due to Double Taxation Treaties (Article XIV(e))
371
15.2.3.4.6.1.
Purpose
371
15.2.3.4.7.
Scope of Application: Subparagraphs XIV(d),(e)
371
15.2.3.5.
The Chapeau (Introductory Clause) of Article XIV
372
15.2.3.5.1.
The Burden of Proof: The Chapeau
373
15.2.3.5.2.
`A Means of Arbitrary or Unjustifiable Discrimination between Countries where Like Conditions Prevail'
373
15.2.3.5.3.
A Disguised Restriction on Trade in Services
378
15.2.3.5.3.1.
The Restrictive Effect Is Relevant in More than One Context
379
15.2.4.
The Security Exception: GATS Article XIVbis
379
15.2.4.1.
Burden of Proof - Article XIVbis
381
15.2.4.2.
Disclosure of Information Contrary to Essential Security Interests
381
15.2.4.2.1.
`Essential Security Interest'
382
15.2.4.3.
Action Necessary for the Protection of Essential Security Interests
383
15.2.4.3.1.
Who Defines `Necessity'
383
15.2.4.3.2.
Three Categories of Action
383
15.2.4.3.2.1.
Provisioning a Military Establishment
384
15.2.4.3.2.2.
Fissionable and Fusionable Materials
384
15.2.4.3.2.3.
War or Other Emergency in International Relations
384
15.2.4.3.3.
The Relationship between the Chapeau and Subparagraphs
385
15.2.4.4.
Maintenance of obligations according to the UN Charter
385
15.2.4.5.
Notification Obligations
385
15.2.4.5.1.
Standard of Notification: `To the Fullest Extent Possible'
386
15.2.4.6.
Potential Threat and Extra Territorial Threat
386
15.2.5.
Balance-of-Payments Difficulties
386
15.2.5.1.
Article XII:1
388
15.2.5.1.1.
`Serious Balance-of-Payments and External Financial Difficulties or Threat Thereof'
388
15.2.5.1.2.
The Measures Allowed
389
15.2.5.1.3.
Member in the Process of Economic Development or Economic Transition
390
15.2.5.2.
Article XII:2
391
15.2.5.3.
Article XII:3
392
15.2.5.4.
Article XII:4
392
15.2.5.5.
Article XII:5
393
15.2.5.6.
Article XII:6
394
15.2.6.
Emergency Safeguard Measures and Subsidies
394
15.2.7.
General Interpretative Approach for GATS Exceptions
395
15.3.
Permanent `Safety Valves': Modification of Schedules
395
15.3.1.
The Terms of Modification
397
15.3.2.
The Rules for Modification of Schedules
397
15.3.2.1.
Prior Notification
397
15.3.2.2.
Negotiations
398
15.3.2.3.
The Standard of Compensation
399
15.3.2.4.
The Compensation: Scope of Application
400
15.3.2.5.
Arbitration
400
15.3.2.6.
Compliance with the Decision of the Arbitration
401
15.3.2.7.
Procedures by the Council for Trade in Services
401
15.4.
Conclusion
402
ch. 16
GATS Sector-Specific Instruments
403
16.1.
Introduction
403
16.2.
Movement of Natural Persons Supplying Services Under GATS
404
16.3.
Telecommunications
406
16.3.1.
The Annex on Telecommunications
407
16.3.2.
The Annex on Negotiations on Basic Telecommunications
411
16.3.3.
The Fourth Protocol: The Agreement on Basic Telecommunications
411
16.3.4.
The Reference Paper
412
16.3.5.
Supplementary Documents for the Interpretation of Telecoms Commitments
414
16.4.
Financial Services
414
16.4.1.
The Annex on Financial Services
415
16.4.1.1.
Prudential Carve-out
416
16.4.1.2.
Confidentiality
418
16.4.1.3.
Recognition
418
16.4.1.4.
Dispute Settlement
418
16.4.2.
The Understanding on Financial Services
418
16.4.2.1.
Standstill
419
16.4.2.2.
Market Access
419
16.4.2.2.1.
Monopoly Rights
420
16.4.2.2.2.
Financial Services Purchased by Public Entities
420
16.4.2.2.3.
Cross-Border Trade
420
16.4.2.2.4.
Commercial Presence
421
16.4.2.2.5.
New Financial Services
421
16.4.2.2.6.
Transfer and Processing of Information
421
16.4.2.2.7.
Temporary Entry of Personnel
422
16.4.2.2.8.
Non-discriminatory Measures
422
16.4.2.2.9.
National Treatment
423
16.4.3.
The Fifth Protocol: The Financial Services Agreement (1997)
423
16.5.
Air Transport
424
16.5.1.
The Annex on Air Transport
424
16.5.2.
The Agreement on Trade in Civil Aircraft
425
16.6.
Maritime Transport
426
16.7.
E-Commerce
427
16.8.
Conclusion
428
ch. 17
The Legal Instruments for GATS Enforcement
429
17.1.
Introduction
429
17.2.
Consultations
430
17.2.1.
Bilateral Consultations
430
17.2.2.
Multilateral Consultations
431
17.2.3.
The Exception: Double Taxation Measures
432
17.2.4.
Dispute Settlement
432
17.2.4.1.
Dispute Settlement Causes
433
17.2.4.1.1.
The Violation Cause
434
17.2.4.1.1.1.
Violation: The Burden of Proof
434
17.2.4.1.1.2.
Obligations and Commitments
435
17.2.4.1.1.3.
The Failure to Comply
435
17.2.4.1.1.4.
Comparison to GATT Article XXIII
435
17.2.4.1.1.4.1.
`Directly or Indirectly'
435
17.2.4.1.1.4.2.
The Results' Presumption
435
17.2.4.1.1.4.3.
`Prima Facie' Case and the Role of the Dispute Settlement Tribunals
436
17.2.4.1.1.5.
The Remedies
437
17.2.4.1.1.5.1.
`Circumstances Serious Enough'
437
17.2.4.1.1.5.2.
`Any Member or Members'
438
17.2.4.1.1.5.3.
No Authority for Complete Abolishment of a Measure
439
17.2.4.1.1.5.4.
Cross-Retaliation
439
17.2.4.1.1.6.
Violation Complaints under GATS
439
17.2.4.1.2.
Non-violation
443
17.2.4.1.2.1.
The Burden of Proof for the Non-violation Cause
444
17.2.4.1.2.2.
Benefit and Concession
444
17.2.4.1.2.2.1.
The Source of Benefit or Concession
445
17.2.4.1.2.3.
The Cause of Adverse Effect: `Application of any Measure'
445
17.2.4.1.2.4.
Nullification or Impairment
446
17.2.4.1.2.4.1.
The Causal Link
446
17.2.4.1.2.4.2.
The Comparison between `Like' Foreign and Domestic Suppliers
448
17.2.4.1.2.4.3.
The Proof of Adverse Effect
448
17.2.4.1.2.4.4.
This Result Was Not Reasonably Anticipated at the Time When the Relevant Specific Commitment Was Negotiated
448
17.2.4.1.2.4.5.
Intentions and Expectations
449
17.2.4.1.3.
The Remedies
450
17.2.4.1.4.
Non-violation Complaints under GATS
451
17.3.
The Relations Between the Violation and Non-Violation Causes
452
17.3.1.
Comparison
452
17.3.2.
Non-violation for Cases where no Disciplines Were yet Developed
453
17.3.3.
Violation for Active Behaviour, Non-violation for Passive Behaviour
453
17.3.4.
The Procedural Relationship between Violation and Non-violation
454
17.4.
Conclusion
454
Concluding Remarks
457
Bibliography
461