GENERAL AGREEMENT GATS/EL/90
15April 1994
ONTRADE INSERVICES (94-1153)
UNITED STATES OFAMERICA
Final ListofArticle II(MFN) Exemptions
(This isauthentic inEnglish only)
____________________UNITED STATES OFAMERICA -FINAL LIST OFARTICLE II(MFN) EXEMPTIONS
Sector orsubsector Description ofmeasure
indicating itsinconsistency
with Article IICountries towhich the
measure appliesIntended duration Conditions creating theneed
fortheexemption
Movement of
personsGovernment issuance oftreaty
trader ortreaty investor
non-immigrant visas thatextend
aspecial visacategory to
nationals oftreaty partners in
executive andother personnel
categories engagedCountries withwhom theUnited
States hasaFriendship,
Commerce andNavigation
Treaty (FCN), aBilateral
Investment Treaty (BIT), or
certain countries asdescribed in
Section 204oftheImmigration
Actof1990Indefinite Tofacilitate trade under FCNs
andBITs
solely tocarry on
substantial trade,
including trade in
services ortrade in
technology, principally
between theUSandthe
foreign state ofwhich a
natural person isa
national, or
solely todevelop and
direct theoperations of
anenterprise inwhich a
natural person has
invested orisactively
intheprocess of
investing asubstantial
amount ofcapital
GATS/EL/90
Page1UNITED STATES OFAMERICA (continued)GATS/EL/90
Page2
Sector orsubsector Description ofmeasure
indicating itsinconsistency
with Article IICountries towhich the
measure appliesIntended duration Conditions creating theneed
fortheexemption
Restrictions onperformance of
longshore work when making
USportcalls bycrews of
foreign vessels owned and
flagged incountries that
similarly restrict UScrews on
US-flag vessels from longshore
workCountries thatprohibit longshore
work bycrew members aboard
USvesselsIndefinite Reciprocal restrictions on
countries thatprohibit longshore
work bycrew members aboard
USvessels
AllSectors:
Taxation MeasuresDifferential treatment under
direct taxmeasures atthefederal
levelAll Indefinite
Such measures are:
measures under theUS
Internal Revenue Code
(IRC) permitting the
residents ofcountries
contiguous totheUnited
States toreceive moreVolume ofmovements across
USborders between Canada and
theUnited States andbetween
Mexico andtheUnited States;
efficient administration oftax
system.UNITED STATES OFAMERICA (continued)
Sector orsubsector Description ofmeasure
indicating itsinconsistency
with Article IICountries towhich the
measure appliesIntended duration Conditions creating theneed
fortheexemption
favorable treatment and
permitting certain US
taxpayers toreceive
more favorable
treatment astotheir
contiguous country
operations, and
providing anyother
benefits withrespect to
contiguous countries;
benefits available under
theUSIRCwith
respect toUS
possessions;Coordination oftheUnited
States andUSpossession income
taxes; fiscal arrangements for
USpossessions; andfacilitation
ofeconomic development inUS
possessions
benefits available under
theUSIRCwith
respect toCaribbean
Basin Initiative (CBI)
beneficiary countries;Facilitation ofeconomic
development incertain
developing countries
GATS/EL/90
Page3UNITED STATES OFAMERICA (continued)GATS/EL/90
Page4
Sector orsubsector Description ofmeasure
indicating itsinconsistency
with Article IICountries towhich the
measure appliesIntended duration Conditions creating theneed
fortheexemption
regarding activities
covered bythescope of
theGeneral Agreement
onTrade inServices,
reciprocal reduction of
taxation onincome
derived from the
international operation
ofaircraft oroftaxation
ofcertain earnings
derived from theuseof
railroad rolling stock;Prevention ofdouble taxation
andproper taxadministrationUNITED STATES OFAMERICA (continued)
Sector orsubsector Description ofmeasure
indicating itsinconsistency
with Article IICountries towhich the
measure appliesIntended duration Conditions creating theneed
fortheexemption
taxexemption for
earnings derived from
theownership or
operation ofa
communications satellite
system byaforeign
entity designated bya
foreign government to
participate insuch
ownership iftheUnited
States, through its
designated entity,
participates insuch
system pursuant tothe
Communications
Satellite Actof1962;Facilitation ofsatellite
communications andproper tax
administration
GATS/EL/90
Page5UNITED STATES OFAMERICA (continued)GATS/EL/90
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Sector orsubsector Description ofmeasure
indicating itsinconsistency
with Article IICountries towhich the
measure appliesIntended duration Conditions creating theneed
fortheexemption
denial ofstatutory
reduction ofdouble
taxation ordeferral of
UStaxonincome
earned through
controlled foreign
corporations, because
thecountry participates
inorcooperates withan
international boycott, or
forsimilar foreign
policy reasons;Foreign policy considerations
measures permitting less
favorable taxation for
citizens, corporations or
products ofaforeign
country based on
discriminatory or
extraterritorial taxes,
more burdensome
taxation, orother
discriminatory conduct;Tofoster efficient international
taxation policiesUNITED STATES OFAMERICA (continued)
Sector orsubsector Description ofmeasure
indicating itsinconsistency
with Article IICountries towhich the
measure appliesIntended duration Conditions creating theneed
fortheexemption
allow thededuction for
expenses ofan
advertisement carried
byaforeign broadcast
undertaking and
directed primarily toa
USmarket onlywhere
thebroadcast
undertaking islocated in
aforeign country that
allows asimilar
deduction foran
advertisement placed
withaUSbroadcast
undertaking;Toencourage theallowance of
advertising expenses
internationally
GATS/EL/90
Page7UNITED STATES OFAMERICA (continued)GATS/EL/90
Page8
Sector orsubsector Description ofmeasure
indicating itsinconsistency
with Article IICountries towhich the
measure appliesIntended duration Conditions creating theneed
fortheexemption
inconnection withthe
exclusion of,or
deduction relating to,
certain foreign earned
income from thegross
income ofindividuals,
thebenefit ofawaiver
oftherequired period
ofstayinaforeign
country asdetermined
bytheSecretary ofthe
Treasury. The
Secretary isempowered
todetermine that
individuals were
required toleave a
foreign country because
ofwar, civil unrest or
similar adverse
conditions insuch
foreign country which
precluded thenormal
conduct ofbusiness by
such individuals; andTotakeintoaccount problems
created byadverse conditions
within particular countriesUNITED STATES OFAMERICA (continued)
Sector orsubsector Description ofmeasure
indicating itsinconsistency
with Article IICountries towhich the
measure appliesIntended duration Conditions creating theneed
fortheexemption
Sub-federal taxmeasures
affording differential treatment
toservice suppliers orto
services when thedifferential
treatment isbased ononeofthe
following criteria:All Indefinite Toimplement fiscal policies of
sub-central governments
areperformed,
consumed, orlocated
within different
sub-federal entities;
differ based onthesize
orincome oftheservice
supplier oronthescale
ormethods (including
environmental and
health andsafety
measures) of
performance;
differ intheextent of
ownership or
participation by
minority orother
disadvantaged groups;
GATS/EL/90
Page9UNITED STATES OFAMERICA (continued)GATS/EL/90
Page10
Sector orsubsector Description ofmeasure
indicating itsinconsistency
with Article IICountries towhich the
measure appliesIntended duration Conditions creating theneed
fortheexemption
differ astothe
eligibility fornon-profit
status forpension,
profit-sharing orother
employee-benefit
regimes;
differ based onfederal
immunity totaxation,
forexample, exemption
from sub-federal taxon
USgovernment
obligations orcontracts;
differ based onfederal
immunity totaxation,
forexample, exemption
from sub-federal taxon
USgovernment
obligations orcontracts;
areperformed or
located incountries
contiguous totheUnited
States; orUNITED STATES OFAMERICA (continued)
Sector orsubsector Description ofmeasure
indicating itsinconsistency
with Article IICountries towhich the
measure appliesIntended duration Conditions creating theneed
fortheexemption
areperformed or
located injurisdictions
withwhich sub-federal
entities have
arrangements fortax
cooperation and
assistance
Sub-federal measures
substantively incorporating
provisions offederal lawsubject
toanMFN exemption under this
agreementAll Indefinite Toimplement fiscal policies of
sub-central governments
AllSectors:
Land UseNon-US citizens inWyoming
maynotacquire orinherit land
unless thecountry ofwhich they
areacitizen extends areciprocal
right toUScitizensAll Indefinite Lack ofreciprocity
AllSectors Canadian small businesses, but
notsmall businesses ofother
countries, mayusesimplified
registration andperiodic
reporting forms withrespect to
their securitiesCanada Indefinite Maintenance ofestablished
preference
GATS/EL/90
Page11UNITED STATES OFAMERICA (continued)GATS/EL/90
Page12
Sector orsubsector Description ofmeasure
indicating itsinconsistency
with Article IICountries towhich the
measure appliesIntended duration Conditions creating theneed
fortheexemption
Banking andOther
Financial Services
(excluding
Insurance)Differential treatment of
countries duetoapplication of
reciprocity measures orthrough
international agreements
guaranteeing market access or
national treatmentTobedetermined before the
expiry ofsixmonths from the
entry inotforce oftheWTO
AgreementPursuant totheMinisterial
Decision onFinancial Services,
themeasures described inthis
exemption willbesuspended
from theentry intoforce ofthe
WTO Agreement until theend
ofaperiod sixmonths after
entry intoforce. Noother
measures aresubject tothis
suspensionNeed toprotect existing
activities ofUSservice suppliers
abroad andtoensure
substantially fullmarket access
andnational treatment in
international financial markets
Abroker-dealer registered under
USlawthathasitsprincipal
place ofbusiness inCanada may
maintain itsrequired reserves in
abank inCanada subject tothe
supervision ofCanadaCanada Indefinite Maintenance ofestablished
preference
Banking andOther
Financial Services
(excluding
Insurance)Permission toestablish
state-licensed branches or
agencies, ortoowncommercial
bank subsidiaries, isbased ona
reciprocity testinthefollowing
states: California, Connecticut,
Florida, Georgia, Hawaii,
Illinois, Kentucky, Louisiana,
Massachusetts, Michigan,
Oregon, Pennsylvania, Texas,
Washington.All Indefinite Need toprotect existing
activities ofUSservice suppliers
abroad andtoensure
substantially market access and
national treatment in
international financial marketsUNITED STATES OFAMERICA (continued)
Sector orsubsector Description ofmeasure
indicating itsinconsistency
with Article IICountries towhich the
measure appliesIntended duration Conditions creating theneed
fortheexemption
Authority toactasasoletrustee
ofanindenture forabond
offering intheUnited States is
subject toareciprocity testAll Indefinite Need toensure USfinancial
service suppliers arepermitted
toprovide trustee services in
foreign markets
Designation asaprimary dealer
inUSgovernment debtsecurities
isconditioned onreciprocityAll Indefinite Need toensure USfinancial
service suppliers areafforded
national treatment inforeign
government debtmarkets
Transport Services:
AirTransport
ServicesMeasures which pertain to
selling andmarketing ofair
transport services (including
sales, other thanbyairlines, of
passenger charters and
forwarding ofairfreight other
thanbyairlines) andtooperation
andregulation ofcomputer
reservation system (CRS)
services, asdescribed inthe
Annex onAirTransport
Services. (Fortransparency
purposes, these measures
include, butarenotlimited to,
bilateral andmultilateral civil
aviation agreements,
understandings andAllpartners withwhich the
United States hasactive aviation
relations (approximately
100countries) covered by
bilateral orother airservices
agreements andcomity and
reciprocity regimes. Also
concerned aretheco-signatories
oftheChicago Convention and
various other international
aviation agreements,
undertakings, andunderstandings
towhich theUnited States isa
party.Indefinite Thecommon policy andpractice
ofexchanging rights, settling
disputes, andapplying laws and
other measures pertaining tothe
operation ofcivil aircraft andair
transportation differentially,
withrespect totheactivities
referred toabove, onthebasis
ofmutual agreement and
balanced exchanges ofrights and
responsibilities.
GATS/EL/90
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Page14
Sector orsubsector Description ofmeasure
indicating itsinconsistency
with Article IICountries towhich the
measure appliesIntended duration Conditions creating theneed
fortheexemption
undertakings andinformal
comity andreciprocity aviation
regimes towhich theUnited
States isaparty; USlaws and
regulations, including the
International AirTransportation
FairCompetitive Practices Act
of1974, asamended, the
Federal Aviation Actof1958, as
amended, theInternational Air
Transportation Competition Act
of1979, theInternational
Aviation Facilities Act,as
amended, andTitle 14,
Parts 1-399, oftheCode of
Federal Regulations; and
measures ofUSstates and
territories andtheDistrict of
Columbia, andoftheir agencies
andsubdivisions).UNITED STATES OFAMERICA (continued)
Sector orsubsector Description ofmeasure
indicating itsinconsistency
with Article IICountries towhich the
measure appliesIntended duration Conditions creating theneed
fortheexemption
Transport Services:
Road TransportTheUSgovernment has
discretion tolimit theissuance
oftrucking licenses topersons
from contiguous countries onthe
basis ofreciprocity. TheBus
Regulatory Reform Actof1982
permits thePresident toremove
ormodify inwhole orinpart
themoratorium onafinding that
such removal ormodification is
inthenational interest.
Domestic andcross-border
trucking operations arepermitted
within designated Interstate
Commerce Commission
commercial zones. The
moratorium waslifted for
Canada inOctober 1982.Mexico, Canada Indefinite Need tohave authority to
impose amoratorium onthe
issuance ofnewlicenses for
domestic operations within and
cross-border operations intothe
United States onthebasis of
reciprocity
Transport Services:
Pipeline TransportPursuant totheMineral Lands
Leasing Actof1920, aliens and
foreign corporations maynot
acquire rights-of-way foroilor
gaspipelines, orpipelines
carrying products refined from
oilandgas,across on-shore
federal lands oracquire leases or
interests incertain minerals on
on-shore federal lands, such as
coaloroil.All Indefinite Lack ofreciprocity
GATS/EL/90
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Page16
Sector orsubsector Description ofmeasure
indicating itsinconsistency
with Article IICountries towhich the
measure appliesIntended duration Conditions creating theneed
fortheexemption
Non-US citizens mayowna
100percentinterest ina
domestic corporation that
acquires aright-of-way foroilor
gaspipelines across on-shore
federal lands, orthatacquires a
lease todevelop mineral
resources onon-shore federal
lands, unless theforeign
investors 'home country denies
similar orlikeprivileges forthe
mineral oraccess inquestion to
UScitizens orcorporations, as
compared withtheprivileges it
accords toitsowncitizens or
corporations ortothecitizens or
corporations ofother countries.
Nationalization isnotconsidered
tobedenial ofsimilar orlike
privileges. Foreign citizens, or
corporations controlled bythem,
arerestricted from obtaining
access tofederal leases onNaval
Petroleum Reserves ifthelaws,
customs orregulations oftheir
country deny theprivilege of
leasing public lands toUS
citizens orcorporations.UNITED STATES OFAMERICA (continued)
Sector orsubsector Description ofmeasure
indicating itsinconsistency
with Article IICountries towhich the
measure appliesIntended duration Conditions creating theneed
fortheexemption
Transport Services:
Space TransportationQuantitative restrictions and
price disciplines incertain
bilateral agreements onthe
launch ofsatellites inthe
international commercial space
launch marketAll Indefinite Need toprevent disruption of
competition intheinternational
space launch market
GATS/EL/90
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