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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
VII. Non-Conforming Measures

WTO/GATS
Annex on Article II - Exemptions
Scope: this Annex specifies the conditions under which a Member, at the entry into force of this Agreement, is exempted from its obligations under paragraph 1 of Article II. Review: the Council for Trade in Services shall review all exemptions granted for a period of more than 5 years.
Termination: the exemption of a Member from its obligations under paragraph 1 of Article II of the Agreement with respect to a particular measure terminates on the date provided for in the exemption. In principle, such exemptions should not exceed the period of 10 years.

PART II, Article V - Economic Integration
This Agreement shall not prevent any of its Members from being a party to or entering into an agreement liberalizing trade in services between or among the parties to such an agreement, provided that such an agreement:
(a) has substantial sectoral coverage (no mode of supply should be excluded), and
(b) provides for the absence or elimination of substantially all discrimination, in the sense of Article XVII (National Treatment), between or among the parties, through:
(i) elimination of existing discriminatory measures, and/or
(ii) prohibition of new or more discriminatory measures.
Where developing countries are parties to an agreement of the type referred to in paragraph 1, flexibility shall be provided for regarding the conditions set out in paragraph 1.
Any agreement referred to in paragraph 1 shall be designed to facilitate trade between the parties to the agreement and shall not in respect of any Member outside the agreement raise the overall level of barriers to trade in services within the respective sectors or sub-sectors compared to the level applicable prior to such an agreement.

NAFTA
Chapter Twelve, Article 1206: Reservations
Articles 1202 (National Treatment), 1203 (MFN Treatment) and 1205 (Local Presence) do not apply to:

(a) any existing non-conforming measure that is maintained by
(i) a Party at the federal level, as set out in its Schedule to Annex I,
(ii) a state or province, for two years after the date of entry into force of this Agreement, and thereafter as set out by a Party in its Schedule to Annex I in accordance with paragraph 2, or
(iii) a local government;

(b) the continuation or prompt renewal of any non-conforming measure referred to in (a); or

(c) an amendment to any non-conforming measure referred to in (a) to the extent that the amendment does not decrease the conformity of the measure, as it existed immediately before the amendment, with Articles 1202, 1203 and 1205.

Each Party may set out in its Schedule to Annex I, within two years of the date of entry into force of this Agreement, any existing non-conforming measure maintained by a state or province, not including a local government.

Articles 1202, 1203 and 1205 do not apply to any measure that a Party adopts or maintains with respect to sectors, subsectors or activities, as set out in its Schedule to Annex II.

Group of Three
Chapter X, Article 10-07: Non-conforming Measures
No Party will increase the degree of non-conformity of its existing measures with respect to Articles 10-04 to 10-06 (National Treatment, MFN Treatment and Mandatory Local Presence). Any reform of those measures will not decrease their conformity, as it previously existed.

In the eight months following the signature of the Treaty, the Parties will subscribe to a Protocol containing two lists with agreements resulting from the negotiations between the Parties that have taken place in those eight months.

List 1 will include the sectors and sub-sectors that each Party will exclude from the obligations established in the first paragraph above.

List 2 will include the non-conforming federal and central measures with Articles 10-04 to 10-06, that each Party will decide to maintain. In the next two years after the signature of the Treaty, the Parties will subscribe to a Protocol in which any non-conforming measure with articles 10-04 to 10-06 maintained by a state or a province will be listed. The Parties will have no obligation to list measures at the municipal level.

CACM
Not Specified.

CARICOM
Not Specified.

Andean Community
Chapter IV, Article 10
No Member Countries commit to establish new measures that increase the degree of non-conformity or that enforce the commitments referred in Articles 6 and 8 of the General Framework, from the entry into the force of this Framework. This commitments shall entail all the measures adopted by Membre States affecting trade in services, stemming from the public (central, regional or local) sector but also from entities that would have been delegated for that purpose.

Chapter VIII Article 26: Special Treatment in favour of Bolivia and Ecuador
During the negotiations carried out in the context of the current General Framework, Ecuador and Bolivia shall be accorded preferential treatment with respect to deadlines and temporary exemptions in the execution of their obligations, in accordance with the provisions of the Cartagena Agreement..

Central America/Dominican Republic
Chapter X, Article 10-13: Consolidation of the Measures
Neither Party will increase the degree of non-conforming measures existing in the Articles 10-04 (MFN), 10-10 (Local Presence), and 10-12 (National treatment). Whatever reform of any of these measures will not change the status of their conformity prior to reform.

At the latest 6 months after the date of entry into force of this Treaty, the Parties will exchange a list of non-conforming measures with respect to Articles 10-04, 10-10, and 10-12.

Mercosur
Part II, Article VII: Specific Commitment Lists
Articles IV (Market Access) and V (National Treatment) do not apply to:
a. the sectors, sub-sectors, activities, or measures that are not specified in the specific commitments list;
b. the measures specified in the specific commitments list that are non-conforming with those Articles IV or V.

Those measures that do not conform simultaneously to Articles IV (Market Access) and V (National Treatment) should be listed in the column related to Article IV. In this case, the inscription shall be also considered as a condition or restriction to Article V. The list of specific commitments will be annexed to the present Protocol and will be part of it entirely.

Bolivia/Mercosur
Not Specified.

Chile/Mercosur
Not Specified.

 
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