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Provisions on Trade in Services in Trade and Integration Agreements in the Western Hemisphere


Part I: Sub-regional Trade and Integration Agreements
XIII. Safeguards

WTO/GATS
PART II, Article X - Emergency Safeguards Measures
There shall be multilateral negotiations on the question of emergency safeguard measures based on the principle of non-discrimination. The results of such negotiations shall enter into effect on a date not later than three years from the entry into force of the Agreement Establishing the WTO.
Any Member may, notwithstanding the provisions of paragraph 1 of Article XXI (Modification of Schedules), notify the Council on Trade in Services of its intention to modify or withdraw a specific commitment after a period of one year from the date on which the commitment enters into force.

PART II, Article XII - Restrictions to Safeguard the Balance of Payments
In the event of serious balance-of-payments and external financial difficulties or threat thereof, a Member may adopt or maintain restrictions on trade in services on which it has undertaken specific commitments, including on payments or transfers for transactions related to such commitments.
The restrictions referred above:
(a)shall not discriminate among Members;
(b)shall be consistent with the Articles of Agreement of the International Monetary Fund;
(c)shall avoid unnecessary damage to the commercial, economic and financial interests of any other Member;
(d)shall not exceed those necessary to deal with the circumstances described above;
(e)shall be temporary and be phased out progressively as the situation improves.
However, such restrictions shall not be adopted or maintained for the purpose of protecting a particular service sector.

NAFTA
Emergency Safeguards Measures not specified for Services.

PART EIGHT: OTHER PROVISIONS
Chapter Twenty-One
Article 2104: Balance of Payments

Nothing in this Agreement shall be construed to prevent a Party from adopting or maintaining measures that restricts transfers where the Party experiences serious balance of payments difficulties, or the threat there of.

The Article 2104 specifies:

  • General Rules;
  • Restrictions on Transfers Other than Cross- Border Trade in Financial Services;
  • Restrictions on Cross-Border Trade in Financial Services.

Group of Three
Emergency Safeguards Measures not specified in general for Services.

Chapter XII: Financial Services
Article 12-18: Balance of Payments and Safeguard

A Party can suspend benefits contained in this chapter in the event of serious balance-of-payments difficulties.

CACM
Not Applicable.

CARICOM

Andean Community
Emergency Safeguards Measures not specified for Services.

Chapter VII, Article 20: Safeguards for Balance of Payments
A Member Country which has adopted restrictive measures of trade in services with third countries, in order to overcome serious external financial or balance-of-payments difficulties, may extend the aforementioned measures to the intrasubregional trade in services, previous authorization of the General Secretariat.
When the situation contemplated in the paragraph above requests immediate solution, a Member Country may apply the corrective measures considered necessary and shall notify those measures in a period of no more than 5 days to the General Secretariat of the Andean Community.

The corrective measures applied in accordance with the paragraph above:
1. may not discriminate among the Member Countries of the Andean Community;
2. shall be progressively eliminated as the situation improves;
3. shall not exceed those necessary to deal with the national circumstances;
4. may give priority to the provision of those service that are more necessary for the economic development programs, but no restrictions shall be chosen or maintained for the purpose of protecting a particular services sector;
5. shall be compatible with the Articles of Agreement of the International Monetary Fund.

Chapter VII, Article 21
Once the measures adopted pursuant to Article 20 are notified, the General Secretariat of the Andean Community, with the technical assistance of special experts, whose designation and form of participation shall be done pursuant to the regulation of the AC, shall analyze the balance of payments situation of the affected Member Country and, within no more than thirty days, shall pronounce itself.

To pronounce itself, the General Secretariat shall consider:
1. The nature and the reach of the financial difficulties, external and of balance of payments, of the affected Country;
2. The economic environment of the affected Country;
3. The observations of the other Member Countries;
4. Other possible corrective measures that could be used.
When, in virtue of the safeguard for balance of payments regulated by this Chapter, a Member Country adopts measures that restrict the flow of capitals, affecting the other Member Countries of the Andean Community, an affected country can request the pronouncement of the General Secretariat. If, once the General Secretariat has pronounced itself, the country that imposed the measure requests its revision by the Andean Tribunal of Justice, the imposed measure shall be maintained into application until the decision of the Tribunal.

Central America/Dominican Republic
Chapter X, Article 10-09: Restrictions to Protect the Balance of Payments:
In the event of serious balance-of-payments or external financial difficulties or threat thereof, a Member may adopt or maintain restrictions on trade in services on which it has undertaken specific commitments, including on payments or transfers for transactions related to such commitments.

The restrictions referred above:
(a)shall not discriminate among Members;
(b)shall be consistent with the Articles of Agreement of the International Monetary Fund;
(c)shall avoid unnecessary damage to the commercial, economic and financial interests of any other Member;
(d)shall not exceed those necessary to deal with the circumstances described above;
(e)shall be temporary and be phased out progressively as the situation improves. Such restrictions shall not be adopted or maintained for the purpose of protecting a particular service sector.

Chapter X, Article 10-20: Future Tasks:
The Committee of Trade in Services shall determine among others the procedures for the establishments of the necessary disciplines relevant to the measures of urgent safeguard.

Mercosur
Emergency Safeguards Measures not specified for Services.

Bolivia/Mercosur
Not Applicable.

Chile/Mercosur
Not Applicable.

 
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