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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
XX. Future Liberalization: A. Specific Comments*/Areas of Negotiations**
Annex I, I-M-18 and 19: Reservations for existing measures and Liberalization Commitments
Telecommunications (Enhanced or Value-Added Services):
Article 12.07 Quantitative restrictions
Article 1208: Liberalization of Non-Discriminatory Measures
Article 1209: Procedures
Article 1210.3: Licensing and Certification
Where a Party does not comply with this obligation with respect to a particular sector, any other Party may, in the same sector and for such period as the noncomplying Party maintains its requirement, solely have recourse to maintaining an equivalent requirement set out in its Schedule to Annex I or reinstating:
The Parties shall consult periodically with a view to determining the feasibility of removing any remaining citizenship or permanent residency requirement for the licensing or certification of each other's service providers.
Group of Three*
Article 10.08 Quantitative restrictions
Article 10-10: Liberalization of Non-Discriminatory Measures
Article 10-11 Reciprocity and global equilibrium
Article 10-14.3: Licensing and Certification
Article 11-12: Schedule of Liberalization for Value-Added Services
Beginning July 1, 1995 all the limitations to the liberalization of value-added services will be eliminated.
Where a Party does not comply with this obligation with respect to a particular sector, any other Party will have to, in the same sector and for such period as the noncomplying Party maintains its requirement, solely have recourse the right to:
Second: In order to comply with what is set out in Article 14 of the present Decision, the Member Countries shall initiate an exchange of information on the measures foreseen in their legislation, that restrict the application of the principles contained in articles 6 and 8. The General secretariat of the Andean Community shall coordinate the process of exchange of information, of elaboration of inventory and of preparation of the drafted Decision.
Chapter V, Article 15 and 16: Process of Liberalization
Chapter VIII, Article 22, Special treatment in favour of Bolivia and Ecuador
The process of progressive liberalization shall be directed in every round through negotiations for the increase in the level of specific commitments assumed by the Parties in the Lists of specific commitments.
Differences in the level of commitments undertaken by the Parties are admissible in the development of the Program of Liberalization, in line with the specificities of various sectors and taking into consideration the objectives noted in the next paragraph.
The process of liberalization shall respect the right of each Party to regulate and to introduce new regulations into the territories to reach national political related to the service sectors. Such regulations may regulate, among others, the national treatment and the access to markets as long as they do not cancel or impair the obligations of the Protocol and of the specific commitments.
Article 40.b: The Executive Commission will define the modalities and deadlines for the negotiations over the objectives of this Agreement, and for such purpose working groups may be constituted.
Article 40.c: The Executive Commission will evaluate periodically the accomplishments of the liberalization program and the general functioning of the present Agreement.
Chapter XIX: Administration and Evaluation of the Agreement Article 46: The administration and evaluation of the present Agreement will be carried out by an Executive Commission, constituted by the MERCOSUR's Common Market Group and Chile's Ministry of Foreign Relations.
Article 47.b: The Executive Commission will define the modalities and deadlines for the negotiations over the objectives of this Agreement, and for such purpose working groups may be constituted.
Article 47.c: The Executive Commission will evaluate periodically the accomplishments of the liberalization program and the general functioning of the present Agreement.
Mercosur Resolution 31/98
HAVING SEEN: The Treaty of Asuncion, the Ouro Preto Protocol, Decision Nš 13/97 of the Council of the Common Market (CCM), Resolutions Nš 20/95 and 67/97 of the Common Market Group and Recommendation Nš 2/98 of the Ad Hoc Group on Services.
WHEREAS: The Montevideo Protocol stipulates that the State Parties shall enter into annual rounds of negotiations with a view to completing the Program of Liberalization of Trade in Services of MERCOSUR in a period of no more than ten years from the entry into force of this Protocol.
The Montevideo Protocol has granted the Common Market Group the authority to negotiate services in MERCOSUR.
THE COMMON MARKET GROUP RESOLVES:
Art. 1 To create the Group on Services as an auxiliary organ of the Common Market Group in the area of Services.
Art. 2 That the Group on Services shall carry out all the tasks that, in the area of services, are entrusted to it by the Common Market Group.
Art. 3 That the Group on Services shall organize the convening of annual rounds of negotiations on the specific undertakings and it shall be, in its function as an auxiliary organ of the Common Market Group, responsible for conducting same. The Group on Services may convene, when it deems necessary, the Coordinators and Delegates of the State Parties in the competent organs of MERCOSUR, in relation to specific service sectors. The Group on Services will inform the Common Market Group periodically on the evolution of the negotiations on services.
Art. 4 To instruct the Group on Services to submit to the Common Market Group a proposal on the criteria and instruments to be used in conducting the negotiations on specific undertakings.
Art. 5 That the Group on Services shall submit to the Common Market Group a proposal on its composition and modalities of operation.
Art. 6 That the proposals mentioned in articles 4 and 5 shall be submitted to the Common Market Group within 90 days after the date of this Resolution, bearing in mind, inter alia, the methodology used during the negotiation on the Initial Specific Commitments.
Art. 7 To consider the activities of the Ad Hoc Group on Services to be completed.
XXX CMG - Buenos Aires, 22/VII/98
Mercosur Resolution 73/98
HAVING SEEN: The Treaty of Asuncion, the Ouro Preto Protocol, Decisions Nš 13/97 and 12/98 of the Council of the Common Market (CCM) and Resolution Nš 31/98 of the Common Market Group.
THE COMMON MARKET GROUP RESOLVES:
Art. 1 The Group on Services shall be made up only of government representatives of the State Parties, applying, wherever appropriate, the provisions of Decision 4/91 of the CCM and complementary decisions, as to its composition, operation and aspects not specifically regulated by this Resolution.
Art. 2 The Group on Services shall develop all the activities entrusted to it by the Common Market Group, and it shall submit for approval all those activities that it deems pertinent. The MERCOSUR Group on Services shall have the following activities, inter alia:
a) Through a call to meeting previously issued by the Common Market Group, and in its capacity as an auxiliary organ of the Common Market Group, it shall organize the call and conduct the annual rounds of negotiations on specific commitments, the results of which must be submitted to the Common Market Group annually;
Art. 4 The Group on Services will be able to submit draft recommendations to the Common Market Group, which shall progressively incorporate different negotiating criteria and instruments, according to its needs. The Group on Services shall prepare, if necessary, a technical manual on the negotiation of commitments.
Art. 5 The criteria and instruments for negotiating specific commitments are included as an Annex and form part of this Resolution.
Art. 6 This Resolution is approved in the Spanish and Portuguese versions.
XV CCM - Rio de Janeiro, 8/XII/98
ANNEX: CRITERIA AND INSTRUMENTS TO CONDUCT NEGOTIATIONS ON SPECIFIC COMMITMENTS
1) In order to facilitate the negotiation of commitments, each State Party shall make efforts to achieve transparency. Upon request of specific information, it shall provide and explain the regulations that affect international trade in services.
2) Further commitments will be carried out through the incorporation of new sectors or, in the case of sectors that are already included in the lists, through the progressive elimination of existing limitations.
3) In consolidating new sectors on the Lists of Commitments, the State Parties shall, to the extent possible, record them in such a way that they reflect the existing normative framework.
4) Sectoral coverage shall be as broad as possible. Negotiations shall aim at the global strengthening of the commitments taken on by each State Party in the WTO and they shall have broad sectoral coverage and modes of supply.
5) The negotiation of commitments shall be based on the criteria of the WTO nomenclature. Commitments shall be negotiated using a harmonized nomenclature and at the level of four or fewer digits of the Central Product Classification (CPC). A State Party can make offers to be consigned at a higher level of desegregation.
6) Upon previous consultation of the appropriate MERCOSUR sectoral organ, the Group on Services shall identify in the normative framework currently in force in the countries of MERCOSUR (bilateral or multilateral agreements), what commitments can be placed on the lists and how.
7) The commitments must be included on a single, easily accessible instrument. To this purpose, the commitments shall be placed on Lists on loose-leaf pages or on the appropriate electronic means. Each year, after the approbation of the improvements in the List of commitments, the improvements shall be added to the List in which the previous commitments have been consolidated. Efforts will also be made to identify those commitments that reflect a higher level of liberalization than what exists at the WTO level. The Administrative Secretariat of MERCOSUR (known by its Spanish acronym SAM) shall be responsible for preparing and updating this instrument.
8) The modality of negotiation shall be based on the presentation of lists of requests and offers from the State Parties. The requests shall be submitted within a reasonable time (3 weeks) prior to the meetings of the Group on Services.
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