RESTRICTEDWORLD TRADE
ORGANIZATIONWT/ACC/VUT/13/Add.2
16 October 2001
(01-5084)
Working Party on the
Accession of Vanuatu
DRAFT REPORT OF THE WORKING PARTY ON
THE ACCESSION OF VANUATU
Addendum
Draft Schedule – Vanuatu
Part II – Draft Schedule of Specific Commitments on Services
Draft List of Article II MFN Exemptions
As indicated in paragraph 125 of the Draft Report of the Working Party on the Accession of
Vanuatu (WT/ACC/VUT/13), the Schedule of Specific Commitments on Services resulting from the
negotiations between Vanuatu and WTO Members will be annexed to the Protocol of Accession of
Vanuatu.  The Draft Schedule is reproduced hereunder.
_______________WT/ACC/VUT/13/Add.2
Page 2 Modes of Supply :  1) Cross-border Supply    2) Consumption abroad    3) Commercial Presence    4) Presence of Natural Persons
Sector Limitations of Market Access Limitations on National Treatment Additional commitments
I HORIZONTAL COMMITMENTS
3) Government approval is required for
all foreign investors under Foreign
Investment Act No. 15 of 19981.
The decision is made on objective
published criteria.3) Subject to limitation on
purchase of real estate.
The Vanuatu Constitution prohibits
freehold ownership of land.Indigenous Ni-Vanuatu alone can
own land under customary law
provisions.  Indigenous citizens and
expatriates can hold land in
leasehold.
4) Unbound except for measures
affecting the entry and temporarystay of natural persons with
managerial and technical skills
which are in short supply in Vanuatu
or fall within the following
categories:i. business managers
ii. intracorporate transferees
(Managers, executives and specialists, who
are employees of firms that provide services
within Vanuatu through a branch, subsidiary
or affiliate established in Vanuatu)
iii. professionals under employment
contract
Vanuatu provides entry in
accordance with Labour Law for
bona fide business visitors andservice sellers
2
                                                     
1 The Government of Vanuatu currently requires foreigners to invest a minimum of US$ 40,000 (VT 5 million) in order to establish  a business in Vanuatu. Vanuatu
reserves the right to raise this minimu m in line with general cost increases.
2 Service sellers are defined for the purpose of this offer as natural persons who are seeking temporary entry for the purpose o f negotiating for the sale of services for that
service supplier, where those representatives will not be engaged in making direct sales to the general public.WT/ACC/VUT/13/Add.2
Page 3Modes of Supply :  1) Cross-border Supply    2) Consumption abroad    3) Commercial Presence    4) Presence of Natural Persons
Sector Limitations of Market Access Limitations on National Treatment Additional commitments
II.  SECTOR SPECIFIC COMMITMENTS
1.  BUSINESS SERVICES
A.  Professional Services
a)  Legal services, home & host
country law, including international
law(CPC861)1) Supply must be through a domestic
law firm
2) None3) Commercial presence must take the
form of sole proprietorship or
partnership.
4) Unbound, except as indicated in the
horizontal section1) None
2) None
3) None
4) Unbound, except as indicated in
the horizontal section
b)  Accounting, auditing and
bookkeeping services
(CPC 862)1) None
2) None
3) None
4) Unbound, except as indicated in the
horizontal section1) None
2) None
3) None
4) Unbound, except as indicated in
the horizontal section
d)  Architectural Services
(CPC 8671)1) None
2) None
3) None
4) Unbound, except as indicated in the
horizontal section1) None
2) None
3) None
4) Unbound, except as indicated in
the horizontal section
e)  Engineering Services
(CPC 8672)1) None
2) None
3) None4) Unbound, except as indicated in the
horizontal section1) None
2) None
3) None4) Unbound, except as indicated in
the horizontal section
i)  Veterinary Services
(CPC 932)1) None
2) None3) None
4) Unbound, except as indicated in the
horizontal section1) None
2) None3) None
4) Unbound, except as indicated in
the horizontal sectionWT/ACC/VUT/13/Add.2
Page 4Modes of Supply :  1) Cross-border Supply    2) Consumption abroad    3) Commercial Presence    4) Presence of Natural Persons
Sector Limitations of Market Access Limitations on National Treatment Additional commitments
F.  Other Business Services
c) Management consulting services
(CPC865)1) None
2) None
3) None
4) Unbound, except as indicated in the
horizontal section1) None
2) None
3) None
4) Unbound, except as indicated in
the horizontal section
f) Services incidental to agriculture,
hunting and forestry
(CPC 88110, 88120)1) None
2) None
3) None4) Unbound, except as indicated in the
horizontal section1) None
2) None
3) None4) Unbound, except as indicated in
the horizontal section
2. COMMUNICATION SERVICES
Commitments are taken consistent with "Notes for Scheduling Basic Telecom Services Commitments" (S/GBT/W/2/Rev.1) and "Market A ccess Limitations on
Spectrum Availability" (S/GBT/W/3).
C. Telecommunication Services 1) 2)3) None, from 1 January 2012
4) Unbound, except as indicated in the
horizontal section1)2)3) None, from 1 January 2012
4) Unbound, except as indicated in
the horizontal sectionVanuatu undertakes the
obligations contained in the
attached Reference Paper at theend of the monopoly period.
a) Voice telephone servicesb) Packet-switched data transmission
services
c) Circuit-switched data transmission
services
d) Telex servicese) Telegraph services
f) Facsimile services
g) Private leased circuit services1) None
2) None
3) Unbound until 31 December 2011 as
provided by a monopoly by Telecom
Vanuatu Limited.  Starting no later
than 1 January 2012:  None
4) Unbound, except as indicated in the
horizontal section1) None
2) None
3) After 1 January 2012:  None
4) Unbound, except as indicated in
the horizontal sectionVanuatu undertakes the
obligations contained in the
attached Reference Paper at the
end of the monopoly period.WT/ACC/VUT/13/Add.2
Page 5Modes of Supply :  1) Cross-border Supply    2) Consumption abroad    3) Commercial Presence    4) Presence of Natural Persons
Sector Limitations of Market Access Limitations on National Treatment Additional commitments
h) Electronic mail
i) Voice mail
j) On-line information and data base
retrieval
k) Electronic data interchange
l) Enhanced/value-added facsimile
services (including store and
forward, store and retrieve)
m) Code and protocol conversion
n) On-line information and/or data
processing (including transaction
processing1) Services provided only over circuits 
leased from Telecom Vanuatu 
Limited.  Starting no later than 1 January 2012:  None
2) None
3) Services provided only over circuits 
leased from Telecom Vanuatu 
Limited.  Starting no later than 1 January 2012:  None
4) Unbound except as indicated in the 
horizontal section1) After 1 January 2012:  None
2) None
3) After 1 January 2012:  None
4) Unbound except as indicated in 
the horizontal section
o) Other
Mobile services
Analogue/Digital cellular 
servicesPCS (Personal 
Communications Services)
Paging services
Mobile data services1) Services provided only over circuits 
leased from Telecom Vanuatu 
Limited.  Starting no later than 1 
January 2012:  None
2) None3) Services provided only over circuits 
leased from Telecom Vanuatu 
Limited.  Starting no later than 1 
January 2012:  None
4) Unbound except as indicated in the 
horizontal section.1) After 1, January 2012:  None
2) None
3) After 1 January 2012:  None.
4) Unbound except as indicated in 
the horizontal section.WT/ACC/VUT/13/Add.2
Page 6Modes of Supply :  1) Cross-border Supply    2) Consumption abroad    3) Commercial Presence    4) Presence of Natural Persons
Sector Limitations of Market Access Limitations on National Treatment Additional commitments
D. Audiovisual
a)  Motion picture and videotape
production and distribution services
(CPC 9611)1) None
2) None
3) None
4) Unbound, except as indicated in
horizontal section1) None
2) None
3) None
4) Unbound, except as indicated in
horizontal section
3. CONSTRUCTION AND RELATED ENGINEERING SERVICES
A.  General construction work for
buildings
(CPC 512)1) Unbound∗
2) None
3) None except brick layers, electrician,
painters and decorators, jobbingplumbers, masons, plumbers,
welders, fitters, turners or other
artisans where the number of full
time employees in the parent
company is less than 7
4) Unbound, except as indicated in the
horizontal section1) None
2) None
3) None
4) Unbound, except as indicated in
the horizontal section
B.  General construction for civil
engineering
(CPC 513)1) Unbound*
2) None
3) None
4) Unbound, except as indicated in the
horizontal section1) None
2) None
3) None
4) Unbound, except as indicated in
the horizontal section
                                                     
∗ Unbound due to lack of technical feasibility.WT/ACC/VUT/13/Add.2
Page 7Modes of Supply :  1) Cross-border Supply    2) Consumption abroad    3) Commercial Presence    4) Presence of Natural Persons
Sector Limitations of Market Access Limitations on National Treatment Additional commitments
4. DISTRIBUTION SERVICES
A. Commission agents' services
(CPC 621)1) None
2) None
3) None, except for licensing 
requirements
4) Unbound, except as indicated in the
horizontal section1) None
2) None
3) Non-citizens and non-resident 
foreign investors must pay an 
additional annual fee of 
VT91,800 and must have received an approval certificate 
from the Vanuatu Investment 
Promotion Authority.
4) Unbound, except as indicated in 
the horizontal sectionIn accordance with the Foreign
Investment Act of 1998, approval
certificates are issued by the
Vanuatu Investment Promotion
Authority in a transparent and
automatic manner
B. Wholesale trade services
(CPC 622)1) None
2) None3) None, except for licensing 
requirements
4) Unbound, except as indicated in the 
horizontal section1) None
2) None3) Non-citizens and non-resident 
foreign investors must pay an 
additional annual fee of 
VT91,800 and must have 
received an approval certificate from the Vanuatu Investment 
Promotion Authority
4) Unbound, except as indicated in 
the horizontal sectionIn accordance with the Foreign
Investment Act of 1998, approvalcertificates are issued by the
Vanuatu Investment Promotion
Authority in a transparent and
automatic manner
C. Retailing services
(CPC 631, 632, 6111, 6113, 6121)1) None
2) None
3) None, except for licensing 
requirements
4) Unbound, except as indicated in the 
horizontal section1) None
2) None
3) Non-citizens and non-resident 
foreign investors must pay an 
additional annual fee of VT91,800 and must have 
received an approval certificate 
from the Vanuatu Investment 
Promotion Authority
4) Unbound, except as indicated in 
the horizontal section In accordance with the Foreig n
Investment Act of 1998, approval
certificates are issued by the
Vanuatu Investment Promotio n
Authority in a transparent an d
automatic manner.WT/ACC/VUT/13/Add.2
Page 8Modes of Supply :  1) Cross-border Supply    2) Consumption abroad    3) Commercial Presence    4) Presence of Natural Persons
Sector Limitations of Market Access Limitations on National Treatment Additional commitments
D. Franchising services
(CPC 8929)1) None
2) None
3) None4) Unbound, except as indicated in the 
horizontal section1) None
2) None
3) None4) Unbound except as indicated in 
the horizontal section
5. EDUCATIONAL SERVICES
(CPC 921-929) 1) None
2) None
3) None except subject to approval by
the Government of Vanuatu to
ensure adequate standards of
qualification of individuals and of
organisations
4) Unbound, except as indicated in the
horizontal section1) None
2) None
3) None
4) Unbound, except as indicated in
the horizontal section
6.  ENVIRONMENTAL SERVICES
940 (CPC 1-3) 1) None
2) None
3) None
4) Unbound, except as indicated in the
horizontal section1) None
2) None
3) None
4) Unbound, except as indicated in
the horizontal section
7. FINANCIAL SERVICES
A. All insurance and related services
(CPC 812)1) None
2) None3) None
4) Unbound, except as indicated in
horizontal section1) None
2) None3) None
4) Unbound, except as indicated in
horizontal section
B. Banking and other related services
(CPC 811-813)1) None
2) None
3) Banks must comply with provisions
of relevant banking legislation and
must have legal status in Vanuatu
4) Unbound, except as indicated in
horizontal section1) None
2) None
3) None
4) Unbound, except as indicated in
horizontal sectionWT/ACC/VUT/13/Add.2
Page 9Modes of Supply :  1) Cross-border Supply    2) Consumption abroad    3) Commercial Presence    4) Presence of Natural Persons
Sector Limitations of Market Access Limitations on National Treatment Additional commitments
8.  HEALTH RELATED AND SOCIAL SERVICES
A. Hospital Services
(CPC 9311)1) None
2) None
3) None
4) Unbound, except as indicated in the
horizontal section1) None
2) None
3) None
4) Unbound, except as indicated in
the horizontal section
C. Social Services
(CPC 933)1) None
2) None
3) None4) Unbound, except as indicated in the
horizontal section1) None
2) None
3) None4) Unbound, except as indicated in
the horizontal section
9. TOURISM AND TRAVEL RELATED SERVICES
A.  Hotels and Restaurants
(CPC 641)1) None
2) None
3) None, except hotels and motels
where the amount invested is less
than VT 10 million in Port Vila and
Luganville and less than VT 5
million in any other place (Vanuatu
reserves the right to raise thisminimum in line with general cost
increases) and except kava bars.
4) Unbound, except as indicated in the
horizontal section1) None
2) None
3) None, except hotels with less
than 10 beds and restaurant with
less than 20 seats.
4) Unbound, except as indicated in
the horizontal section
B. Travel agencies
(excluding tour operating services)1) None
2) None
3) None4) Unbound, except as indicated in the
horizontal section1) None
2) None
3) None4) Unbound, except as indicated in
the horizontal sectionWT/ACC/VUT/13/Add.2
Page 10Modes of Supply :  1) Cross-border Supply    2) Consumption abroad    3) Commercial Presence    4) Presence of Natural Persons
Sector Limitations of Market Access Limitations on National Treatment Additional commitments
11. TRANSPORT SERVICES
C.  Air Transport Services
d) Maintenance and repair of aircraft 1) None
2) None3) None
4) Unbound, except as indicated in the
horizontal section1) None
2) None3) None
4) Unbound, except as indicated in
the horizontal section
e) Selling and marketing of air
transport services.31) None2) None
3) None
4) Unbound, except as indicated in the
horizontal section1) None
2) None
3) None
4) Unbound, except as indicated in
the horizontal section
                                                     
3  As defined in paragraph 6 (b) of the Annex on Air Transport Services.WT/ACC/VUT/13/Add.2
Page 11
REFERENCE PAPER
Scope
The following are definitions and principles on the regulatory framework for the basic
telecommunications services.
Definitions
Users mean service consumers and service suppliers.
Essential facilities mean facilities of a public telecommunications transport network or service that:
(a) are exclusively or predominantly provided by a single or limited number of suppliers;
and
(b) cannot feasibly be economically or technically substituted in order to provide a service.
A major supplier is a supplier which has the ability to materially affect the terms of participation
(having regard to price and supply) in relevant market for basic telecommunications services as a
result of:
(a) control over essential facilities; or
(b) use of its position in the market.
1.  Competitive safeguards
1.1. Prevention of anti-competitive practices in telecommunications
Appropriate measures shall be maintained for the purpose of preventing suppliers who, alone
or together, are a major supplier from engaging in or continuing anti-competitive practices.
1.2.  Safeguards
The anti-competitive practices referred to above shall include in particular:(a) engaging in anti-competitive cross-subsidization;
(b) using information obtained from competitors with anti-competitive results; and
(c) not making available to other services suppliers on timely basis technical information
about essential facilities and commercially relevant information which are necessary forthem to provide services.
2.  Interconnection
2.1.  This section applies to linking with suppliers, providing public telecommunications transport
networks or services in order to allow the users of one supplier to communicate with users of another
supplier and to access services provided by another supplier, where specific commitments are
undertaken.
2.2.  Interconnection to be ensured
Interconnection with a major supplier will be ensured at any technically feasible point in the
network.  Such interconnection is provided:WT/ACC/VUT/13/Add.2
Page 12
(a) under non-discriminatory terms, conditions (incl. technical standards and
specifications) and rates and of a quality no less favourable than that provided for its
own like services or for like services of non-affiliated service suppliers or for its
subsidiaries or other affiliates;
(b) in a timely fashion, on terms, conditions (incl. technical standards and specifications)
and cost-oriented rates that are transparent, reasonable, having regard to economic
feasibility, and sufficiently unbundled so that the supplier need not pay for network
components or facilities that it does not require for the service to be provided; and
(c) upon request, at points in addition to the network termination points offered to the
majority of users, subject to charges that reflect the cost of construction of necessary
additional facilities.
2.3. Public availability of the procedures for interconnection negotiations
The procedures applicable for interconnection to a major supplier will be made publicly
available.
2.4.  Transparency of interconnection arrangements
It is ensured that a major supplier will make publicly available either its interconnection
agreements or a reference interconnection offer.
2.5.  Interconnection: dispute settlement
A service supplier requesting interconnection with a major supplier will have recourse, either:
(a) at any time or
(b) after a reasonable period of time which has been made publicly known to an
independent domestic body, which may be a regulatory body as referred to in
paragraph 5 below, to resolve disputes regarding appropriate terms, conditions and
rates for interconnection within a reasonable period of time, to the extent that these
have not been established previously.
3.  Universal service
Any Member has the right to define the kind of universal service obligation it wishes to
maintain.  Such obligations will not be regarded as anti-competitive per se , provided they are
administered in a transparent, non-discriminatory and competitively neutral manner and are not more
burdensome than necessary for the kind of universal service defined by the Member.
4.  Public availability of licencing criteria
Where a licence is required, the following will be made publicly available:
(a) all the licensing criteria and the period of time normally required to reach a decision
concerning an application for  a licence and
(b) the terms and conditions of individual licences.
The reasons for the denial of a licence will be made known to the applicant upon request.WT/ACC/VUT/13/Add.2
Page 13
5.  Independent regulators
The regulatory body is separate from, and not accountable to, any supplier of basic
telecommunications services.  The decisions of and the procedures used by regulators shall be
impartial with respect to all market participants.
6.  Allocation and use of scarce resources
Any procedures for the allocation and use of scarce resources, including frequencies, numbers
and rights of way, will be carried out in an objective, timely, transparent and non-discriminatory
manner.  The current state of allocated frequency bands will be made publicly available, but detailed
identification of frequencies allocated for specific government uses is not required.WT/ACC/VUT/13/Add.2
Page 14VANUATU - LIST OF ARTICLE II (MFN) EXEMPTIONS
Sector or Sub-Sector Description of measure indicating its
inconsistency with Article IICountries to which the measure
appliesIntended Duration Conditions creating the need for the
exemption
All sectors Citizens and permanent residents of
Melanesian Spearhead GroupCountries may be granted a waiver
from the normal investment and
right of temporary sojourn
obligations of Vanuatu law.Papua New Guinea,
Solomon Islands, Fiji andNew CaledoniaIndefinite To facilitate the regional economic
integration of the Melanesian states.
__________