GENERAL AGREEMENT ON TRADE IN SERVICES

PART I SCOPE AND DEFINITION

Article I Scope and Definition

PART II GENERAL OBLIGATIONS AND DISCIPLINES

Article II Most-Favoured-Nation Treatment

Article III Transparency

Article III bis Disclosure of Confidential Information

Article IV Increasing Participation of Developing Countries

Article V Economic Integration

Article V bis Labour Markets Integration Agreements

Article VI Domestic Regulation

Article VII Recognition

Article VIII Monopolies and Exclusive Service Suppliers

Article IX Business Practices

Article X Emergency Safeguard Measures

Article XI Payments and Transfers

Article XII Restrictions to Safeguard the Balance of Payments

Article XIII Government Procurement

Article XIV General Exceptions

Article XIV bis Security Exceptions

Article XV Subsidies

PART III SPECIFIC COMMITMENTS

Article XVI Market Access

Article XVII National Treatment

Article XVIII Additional Commitments

PART IV PROGRESSIVE LIBERALIZATION

Article XIX Negotiation of Specific Commitments

Article XX Schedules of Specific Commitments

Article XXI Modification of Schedules

PART V INSTITUTIONAL PROVISIONS

Article XXII Consultation

Article XXIII Dispute Settlement and Enforcement

Article XXIV Council for Trade in Services

Article XXV Technical Cooperation

Article XXVI Relationship with Other International Organizations

PART VI FINAL PROVISIONS

Article XXVII Denial of Benefits

Article XXVIII Definitions

Article XXIX Annexes

Annex on Article II Exemptions

Annex on Movement of Natural Persons Supplying Services under the Agreement

Annex on Air Transport Services

Annex on Financial Services

Second Annex on Financial Services

Annex on Negotiations on Maritime Transport Services

Annex on Telecommunications

Annex on Negotiations on Basic Telecommunications

GENERAL AGREEMENT ON TRADE IN SERVICES

Members,

Recognizing the growing importance of trade in services for the growth and development of the world economy;

Wishing to establish a multilateral framework of principles and rules for trade in services with a view to the expansion of such trade under conditions of transparency and progressive liberalization and as a means of promoting the economic growth of all trading partners and the development of developing countries;

Desiring the early achievement of progressively higher levels of liberalization of trade in services through successive rounds of multilateral negotiations aimed at promoting the interests of all participants on a mutually advantageous basis and at securing an overall balance of rights and obligations, while giving due respect to national policy objectives;

Recognizing the right of Members to regulate, and to introduce new regulations, on the supply of services within their territories in order to meet national policy objectives and, given asymmetries existing with respect to the degree of development of services regulations in different countries, the particular need of developing countries to exercise this right;

Desiring to facilitate the increasing participation of developing countries in trade in services and the expansion of their service exports including, inter alia, through the strengthening of their domestic services capacity and its efficiency and competitiveness;

Taking particular account of the serious difficulty of the least-developed countries in view of their special economic situation and their development, trade and financial needs;

Hereby agree as follows:

PART I

SCOPE AND DEFINITION

Article I

Scope and Definition

1. This Agreement applies to measures by Members affecting trade in services.

2. For the purposes of this Agreement, trade in services is defined as the supply of a service:

(a) from the territory of one Member into the territory of any other Member;

(b) in the territory of one Member to the service consumer of any other Member;

? By a service supplier of one Member, through commercial presence in the territory of any other Member;

(d) by a service supplier of one Member, through presence of natural persons of a Member in the territory of any other Member.

3. For the purposes of this Agreement:

(a) "measures by Members" means measures taken by:

(I) central, regional or local governments and authorities; and

(ii) non-governmental bodies in the exercise of powers delegated by central, regional or local governments or authorities;

In fulfilling its obligations and commitments under the Agreement, each Member shall take such reasonable measures as may be available to it to ensure their observance by regional and local governments and authorities and non-governmental bodies within its territory;

(b) "services" includes any service in any sector except services supplied in the exercise of governmental authority;

? "a service supplied in the exercise of governmental authority" means any service which is supplied neither on a commercial basis, nor in competition with one or more service suppliers.

PART II

GENERAL OBLIGATIONS AND DISCIPLINES

Article II

Most-Favoured-Nation Treatment

1. With respect to any measure covered by this Agreement, each Member shall accord immediately and unconditionally to services and service suppliers of any other Member treatment no less favourable than that it accords to like services and service suppliers of any other country.

2. A Member may maintain a measure inconsistent with paragraph 1 provided that such a measure is listed in, and meets the conditions of, the Annex on Article II Exemptions.

3. The provisions of this Agreement shall not be so construed as to prevent any Member from conferring or according advantages to adjacent countries in order to facilitate exchanges limited to contiguous frontier zones of services that are both locally produced and consumed.