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Schedules of Commitments – some basic suggestions. Structure of a schedule. 2. First Column: How to describe service sectors?. ▪ There is no compulsory system However, according to Scheduling Guidelines (S/L/92), (a) schedules “require the greatest possible degree of clarity”
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First Column: How to describe service sectors? ▪ There is no compulsory system However, according to Scheduling Guidelines (S/L/92), (a) schedules “require the greatest possible degree of clarity” (b) “in general, the classification ... should be based on the Secretariat’s Services Sectoral Classification List” ▪ Reference instruments: - Services Sectoral Classification List (W/120) - UN Central Product Classification List (CPC) 3
Basic Obligation (1): Where commitments are undertaken, each schedule shall specify: limitations on market access and national treatment“ (para 21 NG) Note: Focus is on measures limiting market access rather than on implementation mechanisms (e.g. licensing requirements) or relevant laws and regulations. 4
How policy intentions translate into specific commitments Current restriction in Sector A: Foreign equity ceiling of 49%
Horizontal commitments Apply to trade in services in all scheduled sectors unless otherwise specified; Aims at avoiding repetition Takes the form of a limitation (M1-3) or of a positive undertaking (M4) 7
SCHEDULING PROBLEMS (I) • No clearspecification of sectorcoverage • Mismatchbetweensectorname and CPC number • Inconsistenciesbetweensectoral and horizontal entries • Non-exclusion of public sector segments, where • necessary (e.g. health and education) 10
SCHEDULING PROBLEMS (II) Inscription of • Laws and regulationsratherthanmeasures • Minimum requirementsratherthanceilings (MA) • Unspecifiedlicensing and authorizationrequirements 11
SCHEDULING PROBLEMS (III) Inscription of • Measures falling under Article VI (DOMESTIC REG) • Departures from general obligations (Part II), including • MFN-inconsistent measures (reciprocity etc.) • Foreign exchange restrictions • Measures covered by GENERAL EXEMPTIONS 12
Case A. 13
Case E. 14
Measures/policies not affected by Specific Commitments Non-discriminatorydomestic regulation (standards, licensing requirements, etc.) Government procurement (exempt from MFN, MA & NT) Non-discriminatorysubsidies Non-discriminatory measures promoting or restricting exports Requirement of a visa etc. Barriers not associated with Government measures (e.g. private decisions or natural resource limitations (non-availability of space, etc.)) 19