GENERAL AGREEMENT GATS/EL/31
15April 1994
ONTRADE INSERVICES (94-1115)
EUROPEAN COMMUNITIES AND THEIR MEMBER STATES
Final ListofArticle II(MFN) Exemptions
(This isauthentic inEnglish only)
____________________EUROPEAN COMMUNITIES AND THEIR MEMBER STATES -FINAL LIST OFARTICLE II(MFN) EXEMPTIONS
Sector orsubsector Description ofmeasure
indicating itsinconsistency
with Article IICountries towhich the
measure appliesIntended duration Conditions creating theneed
fortheexemption
Audiovisual services
-Distribution of
audiovisual worksRedressive duties which maybe
imposed inorder torespond to
unfair pricing practices, by
certain third countries
distributors ofaudiovisual
works.AllMembers Indefinite Unfair pricing practices may
cause serious disruption tothe
distribution ofEuropean works
Audiovisual services Measures taken toprevent,
correct orcounterbalance
adverse, unfair orunreasonable
conditions oractions affecting
ECaudiovisual services,
products orservice providers, in
response tocorresponding or
comparable actions taken by
other Members.AllMembers Indefinite
Theneed forexemption will
lapse together with
corresponding exemption from
other MembersNeed toprotect theEuropean
Communities andtheir Member
States from adverse, unfair or
unreasonable unilateral actions
from other Members
Audiovisual Services
-Production and
distribution of
audiovisual works
through broadcasting
orother forms of
transmission tothe
public.Measures which define works of
European origin, insuch away
astoextend national treatment
toaudiovisual works which meet
certain linguistic andorigin
criteria regarding access to
broadcasting orsimilar forms of
transmission.Parties totheCouncil ofEurope
Convention onTransfrontier
Television orother European
countries withwhom an
agreement maybeconcluded.Indefinite.
Exemption needed, forcertain
countries, onlyuntil an
economic integration agreement
isconcluded orcompleted.Themeasures aim, within the
sector, topromote cultural
values bothwithin ECMember
States andwithother countries
inEurope, aswellasachieving
linguistic policy objectives
GATS/EL/31
Page1EUROPEAN COMMUNITIES AND THEIR MEMBER STATES (continued)GATS/EL/31
Page2
Sector orsubsector Description ofmeasure
indicating itsinconsistency
with Article IICountries towhich the
measure appliesIntended duration Conditions creating theneed
fortheexemption
Audiovisual Services
-Production and
distribution of
cinematographic
works andtelevision
programmesMeasures based upon
government-to-government
framework agreements, and
plurilateral agreements, on
coproduction ofaudiovisual
works, which confer National
Treatment toaudiovisual works
covered bythese agreements, in
particular inrelation to
distribution andaccess to
funding.Allcountries withwhom cultural
cooperation maybedesirable
(agreements already exist, orare
being negotiated, withthe
following countries: Algeria,
Angola, Argentina, Australia,
Brazil, Burkina Faso, Canada,
Cape Verde, Chile, Côte
d'Ivoire, Colombia, Cuba,
Egypt, Guinea Bissau, India,
Israel, Mali, Mexico, Morocco,
Mozambique, New Zealand, São
Tomé ePrincipe, Senegal, States
inCentral, Eastern andSouth-
Eastern Europe,
Switzerland,Tunisia, Turkey,
Venezuela).Indefinite Theaimofthese agreements is
topromote cultural links
between thecountries concerned
Audiovisual Services
-Production and
distribution of
television
programmes and
cinematographic
worksMeasures granting thebenefit of
anysupport programmes (such
asAction Plan forAdvanced
Television Services, MEDIA or
EURIMAGES) toaudiovisual
works, andsuppliers ofsuch
works, meeting certain European
origin criteria.European countries Indefinite.
Exemption needed, forcertain
countries, onlyuntil an
economic integration agreement
isconcluded orcompleted.These programmes aimat
preserving andpromoting the
regional identity ofcountries
within Europe which have long-
standing cultural linksEUROPEAN COMMUNITIES AND THEIR MEMBER STATES (continued)
Sector orsubsector Description ofmeasure
indicating itsinconsistency
with Article IICountries towhich the
measure appliesIntended duration Conditions creating theneed
fortheexemption
Audiovisual -
Distribution servicesWaiver oftherequirement in
Spain toobtain licences forthe
distribution ofdubbed films of
non-Community origin, granted
tofilms ofEuropean origin
which areespecially
recommended forchildren 's
audiences.Parties totheCouncil ofEurope Indefinite.
Exemption needed forcertain
countries, until aneconomic
integration agreement is
concluded orcompleted.Themeasure aims atpromoting
European cultural values and
linguistic policy objectives
toward theyouth.
Audiovisual
services: television
andradio
broadcasting servicesForeign participation in
companies inItaly exceeding
49% ofthecapital andvoting
rights, subject toacondition of
reciprocity.Allcountries Indefinite Need toensure effective market
access andequivalent treatment
forItalian service suppliers
Audiovisual
services: production
anddistribution of
cinematographic
works andtelevision
programmes in
Nordic countriesMeasures taken inDenmark that
areadopted forthe
implementation ofbenefits in
conformity withsuch support
programmes astheNORDIC
FILM andTVFUND inorder
toenhance production and
distribution ofaudiovisual works
produced inNordic countries.Finland, Norway, Sweden,
IcelandIndefinite Preservation andpromotion of
theregional identity ofthe
countries concerned
GATS/EL/31
Page3EUROPEAN COMMUNITIES AND THEIR MEMBER STATES (continued)GATS/EL/31
Page4
Sector orsubsector Description ofmeasure
indicating itsinconsistency
with Article IICountries towhich the
measure appliesIntended duration Conditions creating theneed
fortheexemption
Road transport -
passenger andfreightProvisions inexisting orfuture
agreements oninternational road
haulage (including combined
transport -road/rail) and
passenger transport, concluded
between theECortheir Member
States andthird countries,
which:
- reserve orlimit the
provision ofatransport
service between the
contracting parties or
across theterritory ofthe
contracting parties to
vehicles registered ineach
contracting party;
- provide fortaxexemption
forsuch vehicles.Switzerland, States inCentral,
Eastern andSouth-Eastern
Europe andallMembers ofthe
Commonwealth ofIndependent
States, Albania, Turkey,
Lebanon, Israel, Syria, Jordan,
Egypt, Tunisia, Algeria,
Morocco, Cyprus, Malta, Iran,
Afghanistan, Iraq, KuwaitIndefinite Theneed forexemption is
linked totheregional
characteristics ofthecross-
border provision ofroad
transport services
Road transport
services -
Freight
(CPC 7123)Authorization forthe
establishment ofacommercial
presence inSpain maybe
refused toservice suppliers,
whose country oforigin does not
accord effective market access to
Spanish service suppliersAllcountries Indefinite Need toensure effective market
access andequivalent treatment
forSpanish service suppliersEUROPEAN COMMUNITIES AND THEIR MEMBER STATES (continued)
Sector orsubsector Description ofmeasure
indicating itsinconsistency
with Article IICountries towhich the
measure appliesIntended duration Conditions creating theneed
fortheexemption
CRS andsales and
marketing ofair
transport servicesProvision ofArticle 7of
Regulation (EC) No.2299/89,
asamended byRegulation (EC)
No.3089/93, whereby the
obligations ofCRS system
vendors orofparent and
participating aircarriers shall
notapply where equivalent
treatment tothatapplied under
theRegulation isnotaccorded in
thecountry oforigin ofthe
parent carrier orofthesystem
vendor.Allcountries where aCRS
system vendor oraparent air
carrier islocated.Indefinite Theneed fortheexemption
results from theinsufficient
development ofmultilaterally
agreed rules fortheoperation of
CRS.
Internal waterways
transportMeasures based upon existing or
future agreements onaccess to
inland waterways (incl.
agreements following theRhine-
Main-Danube link), which
reserve traffic rights for
operators based inthecountries
concerned andmeeting
nationality criteria regarding
ownership.Switzerland, States inCentral,
Eastern andSouth-Eastern
Europe andallMembers ofthe
Commonwealth ofIndependent
States.Indefinite.
Exemption needed, forcertain
countries, onlyuntil an
economic integration agreement
isconcluded orcompleted.Toregulate transport capacity
oninland waterways taking into
account geographic specificity.
Internal waterways
transportRegulations implementing the
Mannheim Convention onRhine
Shipping.Switzerland Indefinite Toregulate transport capacity
oninland waterways taking into
account geographic specificity.
GATS/EL/31
Page5EUROPEAN COMMUNITIES AND THEIR MEMBER STATES (continued)GATS/EL/31
Page6
Sector orsubsector Description ofmeasure
indicating itsinconsistency
with Article IICountries towhich the
measure appliesIntended duration Conditions creating theneed
fortheexemption
Rental/leasing
services without
operators, relating to
ships
(CPC 83103).
Rental ofvessels
withcrew
(CPC 7213, 7223).Chartering inofforeign ships by
consumers resident inGermany
maybesubject tocondition of
reciprocity.Allcountries Indefinite Need toensure effective market
access andequivalent treatment
forGerman service suppliers.
Publishing
(Part ofCPC 88442)Foreign participation in
companies inItaly exceeding
49% ofthecapital andvoting
rights, subject toacondition of
reciprocity.Allcountries Indefinite Need toensure effective market
access andequivalent treatment
forItalian service suppliers.
Newsagency
Services
(Part ofCPC 962)Foreign participation in
companies inFrance publishing
publications intheFrench
language exceeding 20% ofthe
capital orofvoting rights inthe
company, subject toacondition
ofreciprocity.Allcountries Indefinite Need toensure effective market
access andequivalent treatment
forFrench service suppliers.
Press Agency
Services
(Part ofCPC 962)Market access inFrance.
Subject toacondition of
reciprocity.Allcountries Indefinite Need toensure effective market
access andequivalent treatment
forFrench service suppliers.EUROPEAN COMMUNITIES AND THEIR MEMBER STATES (continued)
Sector orsubsector Description ofmeasure
indicating itsinconsistency
with Article IICountries towhich the
measure appliesIntended duration Conditions creating theneed
fortheexemption
Direct non-life
insuranceMeasures based onabilateral
agreement between theEuropean
Communities andSwitzerland on
direct insurance other thanlife
insurance. Thisagreement
provides onareciprocal basis
forfreedom ofestablishment and
theright totakeuporpursue
non-life insurance business for
agencies andbranches of
undertakings whose head office
issituated intheterritory ofthe
other contracting party.Switzerland Indefinite Need toremove obstacles tothe
taking upandpursuit ofnon-life
insurance business inthe
framework ofanagreement
between theEuropean
Communities andSwitzerland on
non-life insurance consistent
withtheprovisions ofparagraph
3oftheAnnex ofFinancial
Services
Financial services Measure granting favourable tax
treatment (off-shore regime) in
Italy toservice suppliers trading
withthecountries towhich the
measure applies.States inCentral, Eastern and
South-Eastern Europe, andall
Members oftheCommonwealth
ofIndependent States10years Theneed toaidthecountries
concerned intheir transition toa
market economy.
GATS/EL/31
Page7EUROPEAN COMMUNITIES AND THEIR MEMBER STATES (continued)GATS/EL/31
Page8
Sector orsubsector Description ofmeasure
indicating itsinconsistency
with Article IICountries towhich the
measure appliesIntended duration Conditions creating theneed
fortheexemption
Allsectors Measures taken inDenmark
aimed atpromoting Nordic
cooperation, such as:
- financial support toR&D
projects (theNordic
Industrial Fund);
- funding offeasibility
studies forinternational
projects (theNordic Fund
forProject Exports);
- financial assistance to
companies*utilizing
environmental technology
(theNordic Environment
Finance Corporation).Sweden, Finland, Iceland and
NorwayIndefinite Tomaintain anddevelop Nordic
cooperation.
Allsectors Authorization forpurchase of
realestate inItaly byforeign
natural persons andjuridical
persons granted onthebasis of
reciprocity.Allcountries Indefinite Thereciprocity requirement is
putinplace toensure equivalent
treatment forItalians inother
countries.
* Applies toEastEuropean companies, which arecooperating withoneormore Nordic companies.EUROPEAN COMMUNITIES AND THEIR MEMBER STATES (continued)
Sector orsubsector Description ofmeasure
indicating itsinconsistency
with Article IICountries towhich the
measure appliesIntended duration Conditions creating theneed
fortheexemption
Allsectors Waiver ofnationality
requirements fortheexercise, in
Portugal, ofcertain activities
andprofessions bynatural
persons supplying services from
thedesignated countriesCountries ofPortuguese official
language (Angola, Brazil, Cape
Verde, Guinea-Bissau,
Mozambique andSãoTomé &
Principe)Indefinite Thismeasure reflects historical
links between Portugal andthese
countries.
Allsectors Facilitation ofaccess procedures
inFrance fortheexercise of
certain services activities and
professions bynatural andlegal
persons ofcertain third countriesFrancophone African countries,
Algeria, Switzerland and
Romania10years Thismeasure reflects historical
links between France andthese
countries.
Allsectors Forcitizens ofCommonwealth
countries withagrandparent
born intheUK,theUKwaives
therequirement forawork
permit inallservices sectorsCountries members ofthe
British Commonwealth of
NationsIndefinite Thismeasure reflects historical
links between these countries
andtheUK.
Allsectors Measures based onbilateral
agreements between the
European Communities and/or
their Member States and
Switzerland withtheobjective of
providing forthemovement of
allcategories ofnatural persons
supplying servicesSwitzerland Indefinite Theagreements reflect aprocess
ofprogressive trade
liberalisation between theEC
anditsregional trading partner.
GATS/EL/31
Page9EUROPEAN COMMUNITIES AND THEIR MEMBER STATES (continued)GATS/EL/31
Page10
Sector orsubsector Description ofmeasure
indicating itsinconsistency
with Article IICountries towhich the
measure appliesIntended duration Conditions creating theneed
fortheexemption
Allsectors Measures based onexisting or
future bilateral agreements
between theEuropean
Communities andcertain
Member States andthecountries
andprincipalities concerned,
providing for:
a) theright ofestablishment
forjuridical andnatural
persons and;
b) waiving therequirements
ofwork permits fornatural
persons supplying services.SanMarino, Monaco, Andorra,
Vatican CityState.Indefinite Thegeographical situation and
historical, economic andcultural
links between theMember States
oftheEuropean Communities
andthecountries and
principalities concerned.
Allsectors Measures based upon bilateral
agreements between Italy and
third countries guaranteeing
work permits forseasonal
workers.States inCentral Eastern and
South-Eastern Europe andinthe
Mediterranean Basin.Indefinite Seasonal shortages ofworkers
andtoensure theorderly
movement ofseasonal workers.EUROPEAN COMMUNITIES AND THEIR MEMBER STATES (continued)
Sector orsubsector Description ofmeasure
indicating itsinconsistency
with Article IICountries towhich the
measure appliesIntended duration Conditions creating theneed
fortheexemption
Allsectors -
principally
construction and
hotel andcateringMeasures based upon bilateral
agreements between Community
Member States andEuropean
andMediterranean countries
guaranteeing work permits, for
thepurposes oftemporary
contract work, onthebasis of
contracts between anemployer
ofthethird country concerned
andacompany intheMember
State concerned, andwhich
permit limited numbers of
workers from thecountries
concerned tobeemployed in
certain service sectors; the
numbers aresubject tovariation
according tocriteria established
intheagreement.States inCentral, Eastern and
South-Eastern Europe, including
Russia, Ukraine, Belarus and
Georgia, andinthe
Mediterranean Basin.Indefinite.
Exemption needed, forcertain
countries, onlyuntil an
economic integration agreement
isconcluded orcompleted.Theagreements form partofa
broader initiative toassist the
countries concerned intheir
process ofeconomic transition
anddevelopment.
GATS/EL/31
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